Professional Documents
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PROJECT REPORT ON
EFFECTS OF BRANDING ON CONSUMER PURCHASE
DECISION IN CHANDIGARH
SUBMITTED TO
IN PARTIAL FULFILLMENT FOR
AWARD DEGREE OF A BACHELOR
OF BUSINESS ADMINISTRATION
I hereby declare that this project report entitled " EFFECTS OF BRANDING
ON CONSUMER PURCHASE DECISION IN CHANDIGARH " is a bonafide
work done by me and submitted to PGGC 11 for the award of the degree of
bachelor
. of business administration . the results embodied in this project
have not been submitted to any other university or institution for the award
any Degree/Diploma certificate or published any time before.
DEEPAK MAHAJAN
BBA 6 SEMESTER
LIST OF CONTENTS
S.NO PARTICULARS
CERTIFICATE
DECLARATION
ACKNOWLEDGEMENT
LIST OF CONTENTS
LIST OF TABLES AND FIGURES
INTRODUCTION
WHAT IS BRAND
BRANDING CONCEPTS
BRAND MANAGEMENT
BRAND ENERGY
PROJECT AIM & OBJECTIVE
2 LITERATURE REVIEW
UNDERSTANDING BRANDING
HISTARY OF BRANDING
BRANDING IN TODAY MARKETING
IMPROTACE OF BRANDING
THE COMPETITIVE ADVANTAGE OF BRAND LOYALTY
UNDERDING CONSUMER BUYING BEHAVIOUR
FACTOR AFFECTING CONSUMER BUYING BEHAVIOUR
3 RESEARCH METHODOLOGY
RESEARCH APPROCH
RESEARCH DESIGN
DATA ANALYSIS METHOED
DATA COLLECTION
SAMPLE DESIGN
SAMPLE SIGE
ANALYSIS AND INTERPRETATION
4 SUMMARY
RESEARCH FINDING
REFERENCES
QUESTIONNAIRE
INTRODUCTION
What is a Brand?
Brand recognition and reactions are created by the use of the product or services and
through the Influence of adverting, design, and media commentary. A brand is a
symbolic embodiment of all the information connected to the product and serves to
create association and expectation around it. A brand often includes a logo, fonts,
color schemes, symbols, and sound, which may be developed to represent implicit
values, ideas, and even personality.
Branding Concepts
Marketers engaged in branding seek to develop or align the expectation behind the
brand experience, creating the impression that a brand associated with a product or
service has certain qualities or characteristics that make it special or unique. As brand
image may be developed by attributing a “personality” to or associating an “image”
with a product or service, whereby the personality or image is “branded “ into the
consciousness of consumers.
Brand Management
A brand is therefore one of the most valuable elements in an advertising theme. The
art of creating and maintaining a brand is called brand management. A brand which is
widely known in the marketplace acquires brand recognition. When brand recognition
builds up to a point where a brand enjoys a critical mass of positive sentiment in the
marketplace, it is said to have achieved brand franchise. One goal in brand
recognition is the identification of a brand without the name of the company present.
For example, Disney has branding with their particular script font (originally created
for Walt Disney “signature” logo) which it used in the logo for go.com. “DNA”
refers to the unique attributes, essence, purpose, or profile of a brand and, therefore, a
company. The term is borrowed from the biological DNA, the molecular “blueprint”
or genetic profile of an organism which determines its unique characteristics. Been
successful at
Brand Energy
Brand energy is a concept that links together the ideas that the brand is experiential;
that it is not just about the experiences of customers/potential customers but all
stakeholders; and that businesses are essentially more about creating value through
creating meaningful experiences than generating profit. Economic value comes from
business’ transactions between people whether they are customers, employees,
suppliers or other stakeholders. For such value to be created people first have to have
positive associations with the business and/or its product and services and be
energised to behave positively toward them — hence brand energy. It has been defined
as “the energy that flows throughout the system that links businesses and all their
stakeholders and which is manifested in the way stakeholders think, feel and behave
towards the business and its product or services.” Attitude branding is the choice to
represent a feeling, which is not necessarily connected with the product or
consumption of the product at all. Marketing labelled as attitude branding includes
that of Nike, Starbucks, the body shop, Safeway, and apple Inc.
“A great brand raises the bar it adds a greater sense of purpose to the
experience, whether it is the challenge to do your best in sports and
fitness , or the affirmation that the cup of coffee you are drinking really
matters ."
The act of associating product or service with a brand has become part of pop culture.
Most product have some kind of brand identify, from common table salt to designer
clothes. In non- commercial context, the marketing of entities which supply ideas or
promise rather than product and services (e.g. political parties or religious
organizations) may also be known as “branding”.
Project Aim and Objective
Importance of understanding branding and its impact on modern day markets is vital
to the health and growth of most industries. The aim of this report is to put into
perspective the function values of branding as well as assess its role in the consumer
purchase decision- making process.
Understanding Branding
BRAND
The word “Brand” owes its origin to the Norwegian word “Brand” which means to
burn. Farmers used to put some identification mark on the body of the livestock to
distinguish their possession. Products are what companies make, but customers buy
brands. Therefore marketers resorted to branding in order to distinguish their offerings
from similar products and services provided by their competitors. Additionally, it
carries an inherent assurance to the customers that the quality of a purchase will be
similar to earlier purchases of the same brand.
BRANDING
Branding is a process, a tool, a strategy and an orientation.
• Branding is the process by which a marketer tries to build long term relationship with
the customers by learning their needs and wants so that the offering (brand) could
satisfy their mutual aspirations.
• Branding can be used as a differentiation strategy when the product cannot be easily
distinguished in terms of tangible features (which invariably happen in case of many
services, Durable etc.) or in product which are perceived as a commodity (e.g.
cement, fertilizers, salt, potato chips etc.).
User The brand, in some cases, can emulate the end user
From the consumers’ perspective, brand names are as fundamental as the product itself in the
sense that they simplify the purchasing process, guarantee quality and at times, from as a
basis of self-expression. Hence, should a company market a brand name as nothing more than
“just a name”; it would be missing the entire purpose of product branding. The challenge lies
in developing a deep set of meanings for the brand. Once a target market segment can
visualize all six dimensions of the brand, it will have established a strong rapport within the
consumers’ purchase decision-making process.
History of Branding
Brands in the field of marketing, originated in the 19" century with the advent of packaged
goods. Industrialization moved the production of many household items, such as soap, from
local communities to centralized factories. These factories, generating mass-product goods,
needed to sell their products in a wider market, to a customer base familiar only with local
goods. It quickly becomes apparent that a generic package of soap had difficulty competing
with familiar, local products. The packaged goods manufacturers needed to convince the
market that the public could place just as much trust in the non-local product.
Many brands of that era, such as Uncle Ben’s ice and Kellogg’s breakfast cereal furnish
illustrations of the problem. The manufactures wanted their products to appear and feel as
familiar as the local farmers’ produce. From there, with the help of advertising,
manufacturers quickly learned to associate other kinds of brand values, such as youthfulness,
fun or luxury, with their products. This kick started the practice we now know as “branding”.
We tend to think of branding as a modern day phenomenon. Certainly, during the late 1990s
and the early 2000s, branding emerged as a significant area of emphasis not only for
companies and their product, but also for municipalities, universities, other non-profit
organizations and even individuals. Branding became ubiquitous. Many of us also known that
proctor & gamble and other consumer product companies began branding their products in
earnest in the mid-to-late 1800s. But more interesting to m is how far back in time branding
goes. For instance, companies that sold patented medicines and tobacco began branding their
products as early 1800s. Around the same time, some fraternities rites as a from of
identification and bonding, a practice that has long since been identified as hazing and
therefore abandoned.
Between the 1600s and 1800s, criminals were branded (again literally) as a from of
punishment and identification. For instance, in England, they branded an S on a person’s
cheek, while in France; they branded fleur de leis on the shoulder. As repugnant as it may be
to us today, slaves were also branded roughly during the same time period to connote
ownership. In the 1200s, England required bread makers, goldsmiths and silversmiths to put
their marks on goods, primarily to insure honesty in measurement. In the medieval times,
printers also used marks as did paper markers (watermarks) and various other craft guilds.
But branding goes back even further. As far back as l300BC, potter’s mark was used on
pottery and porcelain in china, Greece, Rome, and India. Branding of cattle and livestock go
back as far as 2000 BC. And archaeologists have found evidence of advertising among
Babylonians dating back to 3000BC. So, how for back does branding go? At least 5000 years.
What is more interesting to me are underlying needs from which branding originated: to
insure honesty, provide quality assurance, identify source or ownership, hold producers
responsible, differentiate, as a form of identification and to create emotional bonding.
One must acknowledge however, that frequent purchasing of a brand cannot always be linked
to pervious experiences, but can alternatively be formed by embedded perceptions.
Consumers might strongly favour a brand with no prior purchasing experience. This type of
consumer behaviour is based on stimulus provided by direct exposure to advertising
campaigns, a company’s PR efforts or even a high concentration of local distribution in an
area that is in close proximity to a consumer.
In terms of companies’ view on branding, it can induce the natural differentiation of their
offerings, which ultimately, will produce a state of competitive advantage. Differentiation can
only allow for competitive advantage if the cost of differentiation can only allow for
competitive advantage if the cost of differentiating is significantly lower than the revenue
earned by the sales. Differential advantage allows companies to showcase their offer in
respects to other competitors in the same marketplace.
Importance of Branding
Principle of branding — A set related products that are manufactured by a company and are
sold as a family of products under the marquee or banner of a brand have a certain
recognition and a place of respect with that very market. Branding the product thus, is a mean
of creation of identification and recognition in the market. It is not just a process of getting a
trademark and logo, but it is process of evolving as a well reputed name on the market and
field. A very well known brand that has become the identity of the market itself is a
company’s name; the act of photocopying is termed as ‘Xeroxing’.
Often you might see some new product carry the tag that says ‘from the makers of ... brand’,
well this is another advantage of branding. When a business who owns an already famous
brand wants to launch a new brand in the market, they can use the pre-earned goodwill and
reputation for the new launch. Teh advantage is that, people are bound to purchase the new
product out of curiosity.
In short, the importance of branding can be summed up in simple words ‘successful branding
is a process that generates revenue that cannot be counted, it creates a reputation that is felt
not seen, and it is an asset that one cannot show on a balance sheet.
Using the financial perspective, one measures brand equity by determining how more
consumers are willing to pay in direct relation to the brand name. This gives marketers
essential insight into the financial value of the brand. When viewing brand equity from this
perspective, one must naturally consider overhead, such as costs of advertising.
Using the consumers- brand perspective entails considering how the attitude strength of
consumers is directly influenced by the brand name.
This perspective operates under the assumption that the consumers have had extensive
experience with the product in question.
The consideration and development of brand equity is vital as its benefits are wide reaching.
One can consider brand equity is vital as its it can increase cash flow via the widening of
company’s market share and the allowance of higher pricing policies.
The Competitive Advantage of Brand Loyalty
There is a palpable correlation between the efficient branding of a product or service, and the
display of brand loyalty in consumer purchasing patterns. In this instance, loyalty is defined
as a “ deeply held commitment to re-buy or re-patronise a preferred product7service
consistently in the future, thereby causing repetitive same- brand or same brand- set
purchasing, despite situational influences and marketing efforts having the potential to
cause switching behaviour”
Brand loyalty is a direct consequence of the ability to better satisfy the desires of a customer
that main competitors do. It now becomes clear that a modern day marketer’s principal
objective is to build sustainable forms of loyalty between a company and its consumers,
instead of focusing solely on the individual sale of product.
The image surrounding a company’s brand is the principal source of its competitive
advantage and is therefore a valuable strategic asset. Unfortunately, many companies are not
adept at disseminating a strong, clear message that not only distinguishes their brand from the
competitors’, but distinguishes it in a memorable and positive manner. The challenge for all
brand is to avoid the pitfalls of portraying a muddled or negative image, and instead, create a
broad brand vision or identity that recognizes a brand as something greater than a set of
attributes that can be imitated or surpassed. In fact, a company should view its brand to be not
just a product or service, but as an overall brand image that defines a company’s
philosophies. A brand needs more than identity; it needs a personality. Just like a person
without attention- grabbing characteristics, a brand with no personality can easily be passed
right over. A strong symbol or company logo can also help to generate brand loyalty by
making it quickly identifiable.
Understanding Consumer Buying Behaviour
Definition
Consumer behaviour refers to the mental and emotional process and the observable behaviour
of consumers during searching, purchasing and post consumption of a product or service
Consumer behaviour involves study of how people buy, what they buy, when they buy and
why they buy. It blends the elements from psychology, sociology, socio psychology,
anthropology and economics. It also tries to assess the influence on the consumer from
groups and society in general.
Buyer behaviour has two aspects: the final purchase activity visible to any observer and the
detailed or short decision process that may involve the interplay of a number of complex
variable not visible to anyone.
1. Social Factors
2. Psychological Factors
3. Personal Factors
1. Social Factors
Social factors refer to forces that other people exert and which affect consumers’ purchase
behaviour. These social factors can include culture and subculture, roles and family, social
class and reference groups.
2. Psvchological Factors
These are internal to an individual and generate forces within that influence her/his purchase
behaviour. The major forces include motives, perception, learning, attitude and personality.
3. Personal Factors
These include those aspects that are unique to a person and influence purchase behaviour.
These factors include demographic factors, lifestyle, and situational factors.
RESEARCH METHODOLOGY
Research methodology is the way in which research problem are solved systematically. It is a
science of studying how research is conducted scientifically.
The research is also used to describe an entire collection of information about a particular
subject. Research is defined as human activity based on intellectual application in the
investigation of manner.
RESEARCH APPROACH:
The purpose of this study is to analyze the “Affects of branding on consumer purchase
decision .
RESEARCH DESIGN:
The research design is the blueprint for the fulfilment of objective and answering questions. It
is a master plan specifying the methods and collection and analyzing needed information.
The respondent are the users of consumer purchase decision and the data interpreted in the
form of (pie graph, bar graph) who are interested to give there valuable feedback. To collect
the data the-in-depth survey with help of questionnaire is used.
PRIMARY DATA
Questionnaire for in-depth discussions with various respondents to be surveyed during
primary survey were designed during this phase. List of contacts were also prepared during
this phase. This involved in depth structured questionnaire with various respondents.
SECONDARY DATA
This data has been taken form Google. The literature review data has been taken by the help
of Internet.
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a give population. It refers to
the technique or the researcher would adopt in selecting items for the sample design may as
well lay down the number of items to be included in the sample i.e.; the size of sample.
Sample design is determined before data are collected.
The process of selecting the right individuals, objects for the study is known as sampling.
SAMPLE SIZE:
This refers to the number of items to be selected from the universe to constitute a sample. In
this study the sample size is consist the 25 respondents.
SAMPLE UNIT:
In this, the . Once the surveying unit is determined surveying frame has to be prepared so that
everyone in the target population has an equal chance of being surveyed.
DATA ANALYSIS
The data analysis is done with the help of bar graphs and pie charts.
RESEARCH SCOPE AND LIMITATIONS
RESEARCH SCOPE
1. This data is helpful for the organizations.
RESEARCH LIMITATIONS
1. The sample size is too small and it is based on convenient sampling so the conclusion
cannot be generalized to the entire population.
2. People did not know how to use the link to fill form generated.
Table No 4.1
2 FEMALE 48 48%
GENDER
Figure 4.1
From the above table it is cleared that majority of the resondents 52% male where as only
48% respondent are female. Thus it can be concluded that there is preponderance of married
respondent over the unmerried.
An attempt has been made of classify the respondent on the basis their
education qualification
Table.4.2
EDUCATION
■ Matric ■ Senior Secondary Graduuation ■ Post Graduation
Figure 4.2
Interpretation
From the above figure it is clear that majority of the respondent i.e 48% where minority of
the respondent’s is senior secondary 12%. And other respondent’s is post graduation i.e.40%
henec it is concluded that majority of respondent is in institution is graduation i.e.48%.
An attempt has been made of classifies the respondent on the
basis of age factor:
Table 4.3
Classification of the resondent according to their age
S.NO AGE No of respondents Percentage
1 Below- 25 40 40
2 25-35 44 44
3 35-45 12 12
4 Above45 4 4
Total 100 100
Source: Data collected through Questionnaire method
AGE
4%
■ Below -25
■ 25-35
35-45
■ Above
Figure 4.3
Interpretation:
From the above figure it is clear that majority of the respondent’s age is between 25 to 35 i.e.
44% where minority of the respondent’s age is below-25 i.e. 40% and no of the respondents
age between35 to 45 is 12%. Hence it is concluded that majority of respondent working in
institution has age between 25 to 35.
: An attempt has been made of classify the respondents on the basis of
their salary:
Table 4.4
SALARY
4% 4%
■ 5000 to 15000
■ 15000 to 25000
25000 to 35000
■ Above 35000
Figure 4.4
Interpretation:
From the above figure it is clear that majority of the respondents’ present salary 15000 to
25000 i.e. 12% were minority of the respondent’s present salary 5000 to 15000 i.e. 80% and
no of the other respondents persent salary is 25000 to 35000 is 4% and above i.e. 4%
Table 4.5
■ Yes
■ No
Other
Cleanliness
Transparent
■ percentage%
Easy availability
Price
Brand name
0 10 20 30 40 50 60 70
Figure No.4.6
The above bar graph shows the response of the consumer about which attribute they keep in
mind while purchasing branded products and their response has been categorized into six
different categary. After observing the above graph most of the consumers are attracted
through the brand name.
what was the reason for the delay between the purchse decision and the
actual purchase?
Table No.4.7
Classification of the respondents according to their purchase decision and
the actual purchase.
Standards Percentage
Financial constraints 39.2%
Waiting for more innovative product 45.1%
Waiting for market response 15.7%
Source: Data collected through questionnaire method
Classification of the respondents according to their purchase decision and
the actual purchase.
ACTUALPURCHASE
■ Financial constraints
Waiting for more innovative
product
waiting for market response
Others 17.60%
Family/friend/relatives 33.30%
Dealer 3.90%
Advertising 31.40%
■ PERCENTAGE(%)
Standards Percentage
Strongly disagree N/A
Disagree 2%
Neutral 25.5%
Agree 39.2%
Strongly agree 33.3%
Source: Data collected through questionnaire method
PURCHASE DECISION
2%
■ Strongly disagree
■ Disagree
Neutral
■ Agree
Strongly agree
Standards Percentage
Strongly disagree N/A
Disagree 3.9%
Neutral 43..1%
Agree 41.2%
Strongly agree 11.8%
Source: Data collection though questionnaire method
■ Strongly disagree
■ Disagree
Neutral
■ Agree
Strongly agree
As per our survey, I found that 11.8% of people are strongly agree, 41.2% of people are
Agree 43.1% of people have no effect of price at all while some of them would disagree but
no people strongly disagree means there is somewhere in minds of price while making
purchase decision.
Influence of price on purchase decision
Standards Percentage
Strongly disagree N/A
Disagree 3.9%
Neutral 43.1%
Agree 41.2%
Strongly agree 11.8%
Source: Data collected through questionnaire method
■ Strongly diagree
■ Disagree
Neutral
■ Agree
Stronly agree
Figure No.4.11
Since in the above chart most of the people either get influenced or consider price before
purchase of an item so price can be a key factor in our product sale.
As per our survey, I found that 11.8% of people are strongly agree, 41.2% of people are
agree, 43.1% of people have no effect of price at all while some of them would disagree but
no people strongly disagree means there is somewhere in minds of price while making
purchase decision.
Standards Percentage
Strongly disagree 2.6%
Disagree 5.2%
Neutral 25.5%
Agree 45.1%
Strongly agree 21.6%
Source: Data collected through questionnaire method
■ Strongly disagree
■ Disagree
Neutral
■ Agree
Strongly agree
As per our survey, I found that more than 45% of people are agree that features of product
matters while making purchase decision and 21.6% of people are strongly agree whereas
25.5% of people have no effect of features at all while some of features at all while some of
them would disagree and some are strongly disagree
Table No 4.13
Standards Percentage
Strongly disagree 2%
Disagree 11.8%
Neutral 45.1%
Agree 33.3%
Strongly agree 7.8%
Source: Data collection through questionnaire method
Classification of the respondents of family members on purchase decision
■ Stongly disagree
■ Disagree
Neutral
■ Agree
Strogly agree
Table No .4.14
Standards Percentage
Strongly agree 2%
Disagree 9.8%
Neutral 51%
Agree 29.4%
Strongly agree 7.8%
Source: Data collected through questionnaire methods
■ Strogly disagree
■ Disagree
Neutral
■ Agreee
Strongly agree
Figure No 4.14
Above graph depicts that views of peer group does not usually affect the purchase decision
of an individual.
As per our survey, I found that more than half ration of people have no peer group at all
whereas 29.4% of people are agree and 7.8% of people are strongly agree that peer groups
matters while making purchase decision but in this case3 found that 9.8% of people disagree
and some are strongly disagree with the given statement.
Table No.4.15
Standards Percentage
Strongly disagree 2.45%
Disagree 7.35%
Neutral 47.1%
Agree 33.3%
Strongly agree 9.8%
Source: Data collected through questioners methods
■ Strogly disagree
■ Dicision
Neutral
■ Agree
Strongly agree
Figure No.4.15
Yes, according to the chart most of the advertisements do influence a person’s purchase
decision.
As per our survey , I found that around 47% of people have no as such effect of
advertisement at all whereas 33.3% of people are agree and 9.8% of people are strongly agree
that advertisements matters while making purchase decision but in this case we found that
around 10% of people disagree and some are strongly with the given statement.
Will you like to switch your brand preference if you get some
promotional scheme with another brand?
Standards Percentage
Yes 25.5%
No 23.5%
May be 51%
Source: Data collected through questionnaire method
■ YES
■ NO
MAY BE
Figure No.4.16
Yes, according to the graph most people can shift toward other brand if they are getting a
better deal.
As per our survey, I found that around 51% of people may or may not switch, they decide as
per the schemes but we also found that the people mostly would like to switch if they get best
schemes with another brand. Also, 23.5% of people will not going to compromise with there
brands weather they got an promotional schemes from any other brand.
Standards Percentage
Yes 60.8%
No 17.6%
May be 21.6%
Source: Data collected though questionnaire method
UNBRANDED PRODUCT
■ YES
■ NO
MAY BE
Figure No.4.17
According to the graph most of the people are agreeing with the point that brand ones are
better than unbranded ones.
As per our survey, I found that around 61% of people think that the branded products are
much better than unbranded once but we also found that 17.6% of people don’t agree with the
statement. Also, 21.6% of people have no this statement.
SUMMARY
The present study entitled as “Effects of branding on consumer purchase decision in
chandigarh” divided in five chapters namely introduction, literature review, research
methodology, data analysis, findings, summary, conclusion, references and questionnaire.
Fourth chapter covers, analysis and interpretation. Fifth chapter recover summary,
In fourth chapter, after the analysis and interpretation of data following finding were
emerged.
RESARECH FINDING
1. The survey showed that the majority of the respondents are loyal toward their brand.
2. Brand name is the major attribute which attract the respondents to purchase branded
product.
3 . According to the respondents the reason for the delay between the purchase decision
and actual purchase is ‘they wait for the more innovation product’.
4. The survey showed that the respondents are mostly influenced by their family/ friends
or relative to buy brands.
5. The respondents agree that the quality is a major factor in their purchase decision.
6. According to the survey most of the respondents are neutral when it comes to the
price constraints in their purchase decision.
7. 45.1% respondent believe that products feature influence them to buy that product.
8. Most of the respondents in the survey are neutral about the influence of family
member in purchase decision.
9. About 50% respondents are neutral about the influence of peer group on purchase
decision.
10. The respondents are neutral about the advertisement on purchase decision.
11. Most of the respondents in the survey are not sure that if they get some promotional
scheme with another brand, will they switch their brand preference or not.
12. Nearly 60.8% respondents believe that branded products are better than non-branded
products.
BIBLIOGRAPHY
WEBSITE / LINKS
www.google.com
www.slideshare.com
www.googlescholar.com
Dear Respondents,
Section A: the following questions are about your personal information. Please tick the
answer best represents you.
Q.1.Name: ...................
Q.2.Gender:
a. Male ( ) b. Female ( )
Q.3.Qualification:
a. Matric ( ) b. Senior Secondary ( ) c. Graduation ( ) d. Post Graduation ( )
Q.4.Age:
a. Below25 b. 25-35 c. 35-45 d. Above 45
Q.5.Salary:
a.5000 to15000 b.15000 to 25000 c.25000 to35000 d. Above 35000
Dealer
Agree Disagree
Agree Disagree
Q.18 Do you think branded Product is better are better than unbranded
products?
Yes |No
ADDRESS:
EDUCATION QUALITICATION:
OCCUPATION:
AGE:
MONTHLY INCOME: