Consumer Behaviour Research

Index

 Introduction Factors Affecting Consumer Behaviour Buying Decision Process Model of Buying Decision Process An Introduction to Marketing Research Statement of Problem Objective Of Study
Research Methodology and Design Research Instrument

Data Collection and Sources Sample design Field work Limitations Of Research Questioner Ending Conclusion Bibliography Poem By President A.P.J. Abdul Kalam

Introduction

The aim of marketing is to meet and satisfy target customers needs and wants. The field of consumer behavior studies how individuals, groups, and organizations select, buy, and dispose of goods, services, ideas, or experience to satisfy their needs and desires. Understanding consumer behavior and knowing customers is never simple. Customers may say one thing and do another thing. They may not be in touch with their deeper motivations. They may respond to influences that change their minds at last minute. Small companies, such as a corner grocery store, and huge corporations, such as RELIENCE, TATA etc.., stand to profit from understanding how and why their customers buy. Buyer Behavior is a systematic process in which buying decisions are made. Consumer behavior is the process whereby individuals decide whether what, when, where, how and from whom to purchase goods and services.

Factors Affecting Consumer Behavior

Different theories and models are developed to know how an individual behaves as a buyer. Buyer behavior is the result of a large no. of distinct factors. The main factor affecting buyers behavior is as follows: a. Economic factors b. Psychological factors c. Social factors d. Cultural factors e. Personal factors

Economic Factors Disposable Income

Size and income of family Expectation of Income Credit Facility Condition of Liquidity 1. Disposable income: The basis of purchase by the buyer depends on disposable income of buyer. By disposable income means the income left with the buyer after payment of tax from his gross income. A part of disposable income is saved and the rest is spent. 2. Size and income of the family: The size and income of the family determine the amount of expenditure. The large the size and income of a family, the greater will be its expenditure. Consequently, the smaller the size and income of a family, the smaller will be its consumption expenditure.

3. Expectation of income: If buyers expect their income to increase, they will spend more out of their current income. They will induce to purchase comforts of life such as furniture, scooter, TV,

etc. In short expectation of income decrease or increase in future directly affects the current purchase. 4. Credit facility: If goods can be purchased on credit, consumption expenditure tends to rise. The commercial banks also offer loan to the consumers for the purchase of refrigerator, tv, flats, etc. The consumer credit in the form of installment payments has played an important role in expanding the market. 5. Condition of Liquidity: The assets which can be easily converted into cash are known as liquid assets. The greater the amount of liquid assets a person has, the greater will be his consumption expenditure. The examples are bank deposits, shares, etc.

Psychological Factors Basic Necessity Learning Occupation

Lifestyle Attitude 1. Basic Necessity: The basic necessities such as food, shelter, clothing, etc. are the needs which are most important. People try to satisfy these needs by any means. Majority of the people spend most of their time in meeting these necessities of life. 2. Learning: Buyers decide to behave in a particular way in a particular situation on the basis of their past experience. This is called learning. Learning is the name given to the changes in an individual behavior arising from experience. E.g. if a person buys a product that fulfills his desires satisfactory, he will repeat his behavior of purchasing it again. 3. Occupation: An individual purchases his goods according to his occupation. E.g. the mechanic prefers dark colored clothes, executive people go for a better quality cloth.

4. Life style: The life style differs from individual to individual. The lifestyle of a rich person is different from that of a middle class person. Sometimes, individuals belonging to some group have different lifestyle. E.g. the advertisement of Raymonds and demand can impress the rich class persons only. 5. Attitude: An attitude describes a persons feeling or tendency towards some products. E.g. some people were of the opinion that gas cylinders were risky and hence their attitude towards this product was negative. Thus attitude creates likes or dislikes among consumers.

Social Factors Reference group Contribution of Family Social Groups A. Upper Class B. Middle Class

C. Poor Class 1. Reference group: Reference groups are those social groups which directly or indirectly influence the behavior of individuals. Groups have a direct influence on a person are called primary groups. Such as family, close friend, neighbors and co-workers. Groups such as religious organizations, professional association and trade unions are secondary groups. All these groups influence a persons behavior and determine the product that he will purchase. E.g. when a new product is introduced, the primary group, i.e. wife and children are affected more than other groups.

2. Contribution of the family: The family members contribution in the purchase of a product is very important. Generally, a husband makes purchases for the family. The wife is the main purchasing agent for the family especially in the field of food, cloth, soap, powder, etc. in the case of furniture, house, entertainment appliances, etc. husband and wife will

jointly take decision. The chocolate, biscuit, toy and book purchases are according to the choice of the children. 3. Social groups: The society is made up of different groups of people. The classification of people into different groups on the basis of social class can be done as follows: A. upper class: - this is a small class of the extremely rich person who are economically most powerful, interested in expensive jewellery, modern furniture, etc. B. middle class: - it includes those who want to live a comfortable life, interested in good home, best furniture, fine cloths, etc. C. poor class: - they are the persons whose income is uncertain and inadequate to make both ends meet. Cultural Factors Comfortable Life Occupation Economic Circumstances Lifestyle Attitude 1. Comfortable life: The goods and services they buy. In their early

years they eat baby food, in their maturity years they eat spicy food and in their later years they are on a special diet. People taste in cloth also change according to their age. Marketers should identify their target markets according to their life cycle and develop appropriate products and marketing plans. 2. Occupation: A persons occupation effects his purchasing decision. E.g. workers will buy work clothes, work shoes, lunch box, etc. marketers should identify such occupational groups and specialize in making products required by a given occupational group. 3. Economic Circumstances: Persons consumption pattern is influenced by his economic circumstances. Persons economic circumstances consists of his spend able income, saving, assets, borrowing power, etc. 4. Life Style: Every persons life style would be different. Life style of rich person will be different from that of middle class people while preparing marketing strategy the

producers will search for relationships between their products and life style group.

Buying Decision Process

The stages in the buying decision process are as follows: 1. Need reorganization 2. information research 3. evaluation of alternatives 4. purchase decision 5. post purchase decision 1. Need Recognition: Necessity is the mother of all purchases. The purchase process begins when the buyers recognize his needs. E.g. in the summer, a person fills that he cant do with the air conditioner. This is the starting point of the buying process. 2. Information search: The buyer tries to collect information about the commodity during the time interval between the emergence of need and purchasing of the commodity to satisfy that need. E.g. he tries to know which commodity is capable to satisfy his needs, what are the

different prices of those brands, what are the opinions about that commodity. 3. Evaluation of alternative: On the basis of the information a buyer has, he will choose a particular brand. But before he makes choice, he has to evaluate different brands. The choice set includes 3 or 4 brands. The buyer has to choose any one of these brands. He will have to find out through a comparative evolution which brands will give him maximum satisfaction. 4. Purchase decision: In the third stage of buying decision process, the buyer decides to buy a particular brand belonging to the choice set on the basis of evaluation process. This is the intention of the buyers. 5. Post purchase behavior: The job or the producer or dealers does not end once his product is sold to the buyer. He must know whether the buyer feels satisfied with the product. How does he react after purchasing the product?

Model of Buying Decision Process

Problem Recognition

Information Search Evaluation Of alternatives

Purchase Decision

Post purchase Behavior

Introduction to Market Research

According to American Marketing Association Marketing research is the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services. Management in any organization needs

information in large quantity about potential markets and environmental forces in order to develop successful strategic marketing plans, and to respond to such changes in the market place. A mass of data is available both from external sources and within the firm. This forms a solid platform for a research to take place. Marketing Research includes all the activities that enable an organization, to obtain the information it needs to make decisions about its environment, its marketing mix and its present or potential customers and consumers. More specifically, Market Research is the development, interpretation and communication of decision oriented information to be used in the strategic marketing process. Marketing Research is the systematic design, collection, interpretation and reporting of information for

help marketers solve specific marketing problem or to take advantage of marketing opportunities. It is a process of gathering information not currently available to decision makers. Marketing Research is conducted on a special-project basis, with the research methods, adopted to the problems being studies and to changes in the environment. The Market Research society defines Marketing Research as the collection and analysis of data from a sample of individuals or organizations relating to their characteristics, behavior, attitudes opinions or possessions. It includes all forms of marketing and social research such as consumer and industrials surveys psychological investigations, observational and panel studies.

Statement of Problems
In idea we had undertaken research on two topics given by the company, there are outlet promotion mix and consumer behaviour research on the people aged between 15 30 years. The survey of outlet development was carried out by the team of 3 members consisting 3 people from various places. This help company to development outlets which would increase their market share. And others survey of consumers behaviour is undertake by me. It would help to know about thoughts, advice, problems, market share, etc

Objectives of Study
To know the behaviour of young generation To know the demand pattern of teen age To know market share Consumer Satisfaction Problems of consumer Consumer Awareness Brand Equity Outlet Preferences

Research Methodology and Research Design

This is basically an exploratory research and would be studied by following steps. The primary data will contain the survey through Secondary data is the data collected earlier for a questionnaire. purpose other than currently pursued. In this study no secondary data is used.

Research Instrument
Questionnaire is the instrument of collecting the data. Primary data is collected from the mobile users and it was a direct approach.

Data Collection and Sources

The opinion gathered from the mobile user by using a questionnaire method.

Sample Design

The sample design for primary research can be termed as stratified random sampling. Form the overall population of consumer a random sample size of 100 where selected. Research method was undertaken for soliciting information form the respondents by personal interview to know the attitude of respondents regarding the availability price etc

Field Work

Primary data was collected through survey. In the case of survey any one of the following methods can collect data: By observation Personal Interview Telephone Interview By mailing of questionnaire In this study, survey was done through personal interview. The investigator follows a rigid procedure and seeks answer to set off preconceived questions in personal interview. The method of collecting data is usually carried out in a structural way, for this study printed format of questions included in the questionnaire with a view of gathering accurate information.

Limitation of Research
Reliability of Respondent Many of the respondents do not give 100 % true information which may be due to ignorance of the information being personal. They have to be prompted or coaxed so as to get much of the true information as possible. This is one of the barriers of the study. Time bound This study is time bound and the results of the study may not be applicable with the passage of time.

Questioner
Consumer Behavior research on preferences of Idea Cellular Ltd. Prepared By Roll No. College Herma Jaypal 10 Christ College - RAJKOT

Dear Respondet, I, Herma Jaypal .B a student of Christ college or conducting a project report or preference of consumers of Idea Cellular Ltd as a part of our syllabus. I request you to furnish me the below asked detail. The data will be used for academic purpose only.

Instruction:
1] Fill the relevant details. 2] Tick marks the appropriate box. Personal Information: (your identity will be kept secret) 1] Name : 2] Address :

3] Mobile No.

4] Gender : Male 5] Age : 15-17 18-20 21-25 25 -30 Female

6] Occupation : Business Student Professional Other Service

7] What is your monthly income? Less than Rs. 5000 Rs. 10000 to 15000 Rs. 5000 to 10000 Rs. 15000 & Above

8] Are you a prepaid user or post-paid user ? Prepaid Postpaid

9] Which of the following service providers you prefer the most? Idea Tata Hutch BSNL Airtel Other

10] If you are a prepaid user please answer the following? How many recharge coupon you purchase per month? Which scheme you use presently? Use Rs 3000 out of 3300 Use Rs 1850 out of 2008 Use agivan at Rs 999 Use Rs 1822 out of 2007

Do you use Value Added Services? Please Specify. GPRS Dialer Tones Std,Isd Picture sms Ring Tones Cricket sms

11] What is your ranking from below parameters? Reasonability Brand Number Cost 12] How many calls you make daily ? Less Than 5 5 10 Schemes Advertising Coverage

10 -15 15 above 13] Are you satisfied with your current service provider?

Yes

No

If No, Please Specify,

14] If you get better services by other service providers, will You switch over to other service provider? Yes No

15] What is the purpose behind having mobile? Emergency Regular Use Status Symbol Any other

16] What is your opinion? Mobile ban in campus Good Bad

17] Give your suggestions to improve the service quality

(1) Gender
S r. 1. 2. Male & female Male Female Total No. of Respondent s 75 25 100 Percent age 75% 25% 100%

Gender

80 70 60 50 40 30 20 10 0
Percentage

male

female

Interpretation
The survey shows that gender is follow. 1st male in survey is75 and in 75% 2nd Female in survey is 25 in 25%

(2) AGE
Sr . 1. 2. 3. 4. Age Group 15-17 18-20 21-25 26-30 Total No. of Respondents 10 15 45 30 50 Percenta ge 10% 15% 45% 30% 100%

Age
50 40 30 20 10 0 15-17 18-20 21-25 26-30 Age Group Percentage

Interpretation
In survey of consumer research on Idea cellular Ltd is include age 1st 15-17 giving 10%.2nd comes age group 18-20 giving 15%. 3rd of it 21-25 as 45% and group of 25-30 as 30%.

(3) Occupation
Sr . 1. 2. 3. 4. 5. Occupatio n Business Profession Service Student Other Total No. of Respondents 20 5 27 40 8 100 Percenta ge 20% 5% 27% 40% 8% 100%

Occupation
40 35 30 25 20 15 10 5 0

Percentage

Business

Professional

Service Occupation

Student

Other

Interpretation
On research 20% people doing business,5% people are Profession,45% are working as service,40% as a student,30% are do other type of work.

(4) prepaid user or post-paid user

S r. 1. 2.

Prepaid or postpaid user Prepaid Post-paid Total

No. of Respondent s 68 32 100

Percent age 68% 32% 100%

Users

70 60 50 40 30 20 10 0

On survey most of people use prepaid card, because in this type of card recharge amount any time so 68% people use this and 32% people use post - paid card.

Percentage

Prepaid

Pospaid
Users

Interpretation

(5) Service Providers

Sr . 1. 2. 3. 4. 5. 6.

Service Providers Idea Hutch Airtel Tata Bsnl Other Total

No. of Respondents 24 32 18 8 12 6 100

Percenta ge 24% 32% 18% 8% 12% 6% 100%

Service Provider 35 30 25 20 15 10 5 0

People use card of service providers in % as under. Idea as 24%,Hutch as 32%,Airtel as 18%, Tata as 8%,Bsnal as 12% and other as 6%.

Percentage

Idea

Hutch Airtel TATA BSNL Other

Service Provider

Interpretation

(6) Scheme

Sr . 1. 2. 3. 4.

Scheme Use rs 300 out of 3300 Use agivan as Rs 999 Use Rs 1850 out of 2008 Use Rs 1822 out of 2007 Total

No. of Responde nts 22 35 19 24 100

Percenta ge 22% 35% 19% 24% 100%

Scheme
35 30 25 20 15 10 5 0

In consumer research most of people use new scheme as 1st scheme as 22%,2nd scheme as 35%,3rd scheme use by consumer 19%,4th as in 24%,

Percentage

1st

2ed

3rd

4th

Scheme

Interpretation

(7) Value Added Services

Sr . 1. 2. 3. 4. 5. 6. Value Added Services GPRS Picture sms Dialer Tones Ring Tones Std, Isd Cricket sms Total No. of Respondents 17 11 35 9 6 22 100 Percenta ge 17% 11% 35% 9% 6% 22% 100%

Value Added Services 35 30 25 20 15 10 5 0

GPRS Picture sms Dialer tones Ring tones Std,Isd Cricket sms

Value Added services means people use it in extra pay amount. As on research People use it Gprs as 17%,Picture sms as 11%,Dialer tones as 35%,Ring tones as 9%,Std&isd as 6%, cricket sms as 22%,

Percentage

Value Added Services

Interpretation

(8) Ranking

Sr Ranking . 1. Reasonabili ty 2. Schemes 3. Brand 4. Advertising 5. Number 6. Coverage

No. of Respondents 38 13 9 15 4 14

Percenta ge 38% 13% 9% 15% 4% 14%

7.

Cost Total
Ranking

7 100

7% 100%

40 35 30 25 20 15 10 5 0 Percentage

Reasonability

Schem es

Brand

Advertising

Num ber

Coverage

Cost

Ranking

As on parameters consumers on which basis purchase mobile card as Reasonability as 38%,Scheme as 13%Brand as 9%,on Advertising as 15%,Number as 4%,Coverage 14%, Cost as 7%,

Interpretation

(9) Satisfaction with current service provider

S r. 1. 2.

Satisfacti on Yes No Total

No. of Respondent s 71 29 100

Percent age 71% 29% 100%

Satisfaction
80 70 60 50 40 30 20 10 0

Main goal behind research is satisfaction of consumer with their service providers. as on research most of people satisfied with their service providers as 71%, but some are no satisfied as 29%.

Percentage

Yes

No Satisfaction

Interpretation

(10) switch

S r. 1. 2.

switch Yes No Total

No. of Respondent s 83 17 100

Percent age 83% 17% 100%

Better Services
90 80 70 60 50 40 30 20 10 0

If consumer gets batter services by other providers, they will switch more of them as YES as 83%.NO as 17%.

Percentage

Yes

No

Better Services

Interpretation

(11) The purpose behind having mobile

Sr . 1. 2. 3. 4. Scheme Emergency Regular use Status Symbol Any Other Total No. of Responde nts 49 8 28 15 100 Percenta ge 49% 8% 28% 15% 100%

Purpose

50 40
Percentage

30 20 10 0
Emergency Status Symbol Reguler Use Any Other

Purpose

Interpretation
Many purpose behind having mobile some of out of it considered as under. Emergency as 49%,Status Symbol as 8%, Regular Use as 28%,Any other as 15%,

(12) opinion
S r. 1. 2. Opinion Good Bad Total No. of Respondent s 68 32 100 Percent age 68% 32% 100%

Opinion
70 60 50 40 30 20 10 0

Consumers opinion most of good as 68%, but some opinion is also bad as in 32%.

Percentage

Good

Bad Opinion

Interpretation

T he Ending Conclusion

Conclusion

Conclusion

After my visit in Idea Cellular Ltd. Rajkot I came to learn many things which will helpful to me in future.

In addition to our report we had an opportunity to go with the companys team in the market, fro the purpose of retailer development. It was a very good experience. The team was co operative and helpful. We visited new counters and explained the schemes of the company. In my project also they were co operative and guiding. Form the survey it can be seen that customers are very satisfied with coverage, schemes, services etc By this it is clear that companys future seems to be bright. Good wishes for future.

Bibliography
Following is the list of sources which I have referred during my preparation of report.

Books
Marketing Management By Philip Kotler Market Research By William Stanton

Websites
i. www.google.com ii. www.ideacellular.com iii. www.yahoo.com iv. www.mytutor.com v. www.wikipedia.com vi. www.agencyfaq.com