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A Project Report.
Submitted To: Dr.Anurupa Singh.
Submitted By: Abhishek Gautam, Harsh Kr.Kesarwani, Mohd. Rizwan, Nishant Pal, Priya Singh, P.Suraj.
Table of Contents
Acknowledgement……………………………………………….3 Certificate of Oroginality…………………………………………5 Objective…………………………………………………………..7 Whos’ a Consumer?........................................................................8 Introduction……………………………………………………..10 Indian consumer market landscape……………………………...11 Emergence of new consumer…………………………………….14 Consumer Buying behavior……………………………………….19 Leadership Condorium……………………………………………21 Consumer purchasing process…………………………………….23 A last word……………………………………………………….28 Methodology…………………………………………………….29 Findings and analysis…………………………………………….30 Conclusion………………………………………………………..39 Bibliography……………………………………………………..40
We owe our great thanks to great many people who helped us and supported us for this project. Our deepest thanks to Lecturer, Dr.Anurupa Singh the Guide of the project for guiding and correcting various documents of ours with attention and care. She took the pain to go through the project and make necessary correction as and when needed. Our deep sense of gratitude to Mr. Himanshu (Head of Department PGD-IB), IILM-GSM Gr.Noida for his support and guidance. We also extend our heartfelt thanks to our family members and well wishers.
Certificate of Originality.
This is to certify that the project report entitled Changing consumer behavior in branded apparel to IILM-GSM in partial fulfillment, is original work (to the best of my knowledge) carried out by Harsh Kumar Kesarwani, Abhishek Gautam, Priya Singh, P.Suraj, Nishant, Mohd.Rizwan. This report or similar topic has not been submitted for any other examination and does not form part of any other course undergone by the candidates. Project Guide: Dr. Anurupa Singh, IILM-GSM, Gr.Noida.
Changing Consumer Behaviour in Branded Apparels. 5 .
6 . and to know the various reasons for the changing consumer behavior in preferring the apparels they are buying. To know the factors which affect the consumers’ buying behavior.Objective To get to know the preference of people for Branded apparels over the NonBrande ones.
The consumer drives the economy by purchasing goods and services from vendors. In economics and marketing: Typically when business people and economists talk of consumers they are talking about person as consumer. so that the usage and significance of the term may vary. In law and politics The law primarily uses the notion of "consumer" in relation to consumer protection laws.Who is a Consumer? Consumer is a broad label for any individuals or households that use goods and services generated within the economy. an aggregated commodity item with little individuality other than that expressed in the buy/not-buy decision. The concept of a consumer occurs in different contexts. and the 7 . The consumer is the backbone of the American Retail Sales System.
In intelligence studies Within intelligence studies. 8 . such as inequalities of bargaining power between a consumer and a business.e. the concept of "consumer" refers to the political staff consuming and requesting intelligence. As of all potential voters are also consumers. not corporations or businesses) and excludes commercial users. consumer protection takes on a clear political significance. A typical legal rationale for protecting the consumer is based on the notion of policing market failures and inefficiencies.definition of consumer is often restricted to living persons (i.
. India is set to grow into the fifth largest consumer market in the world by 2025. towns and even rural areas. Higher disposable incomes.Introduction. the development of modern urban lifestyles and an increase in consumer awareness have affected buyer behaviour — in cities. Buying power has also expanded to new consumer segments — be it the youth or the urban woman. 9 . The vast rural hinterland of India is beckoning and the sheer numbers make it impossible to ignore. According to a 2007 report by McKinsey & Co. The Indian consumer market has never had it better.
expansion in the availability of products and services and easy availability of credit — all of this has given rise to new consumer segments and a rising acceptability of debt. people clearly seem to be spending more. Whether it is apparels. credit cards organized retail. what is certain today is that there has been a genuine uptake in consumption. a growing economy. mobile phones.The Indian consumer market landscape. whether it be the large metros. Rising incomes in the hands of a young population. While consumerism has seen a gradual build-up. The Indian consumer story is one that has caught the attention of the rest of the world. for the first time some patterns 10 . the emerging new cities. What has emerged in this consumer story is the fact that there is much more homogeneity in the market than ever before. the small towns and even rural India. particularly on discretionary items. And the consumer seems to be everywhere.
11 . ICICI Banking Corporation. The first comprises the top end with the mindset: ―I pay more to get more‖. Today. They now need to craft strategies that address the subtle differences but satisfy each group equally. More important. Chairman. is the large block at the bottom which says: ―I pay less and I get less‖ and is totally satisfied with that. however. The second is the mid-level which thinks: ―I get good value at a reasonable price‖.” Narayanan Vaghul.have begun to emerge in consumer behaviour. We cannot make any excuses but need to gear up our systems to provide that level of service. where the purchase is driven by the emotional surplus that the consumer experiences. So what is the Indian consumer market today? It is a market with three segments. every city has its premium consumers and its middle class consumers and this has put companies into a fix. “There is so much choice today and people do not accept poor service.
There is a growing realisation today that it is easier to compete in the smaller towns because many of the big brands and their marketing managers and sales teams don’t make the effort to travel there. market share is easy to achieve because even though the overall pie is smaller. pointed out: ―I think we are increasingly going to see a reverse shift happening. Hence. Diageo. As Asif Adil. Another shift has been the changing dynamics of rural migration to urban centres. where people are not going to come to the urban areas in the same kind of numbers that they were migrating before — essentially because quality of life and opportunities are improving in smaller towns. if one does go there.This is probably a segment that many marketers tend to overlook since they feel that there is no existing demand there.‖ 12 . there is less competition.
” — Rajat Jain. In the older age group. kids have changed their role to becoming influencers. Understanding the Indian consumer market means understanding its individual segments. Pertinent questions facing Indian marketers today include: ―Who are the new consumers? What are they spending their money on?‖ “From pester power. Mobile2Win Three major emerging segments were identified: Kids. the Youth (including the young working singles) and the Urban Indian Woman. whom parents turn to for advice during the decision-making process.Emergence of the new consumer. These segments have shown a tremendous increase in influencing and driving purchase decisions and hence are huge drivers of change in the consumer market. they have actually become consultants. 13 .
which has its own unique characteristics. kids have changed their role to becoming influencers. but to satisfy individual needs. whom parents turn to for advice during the decisionmaking process. kids have actually become consultants. traditionally.‖ One aspect that has contributed to this change is the fact that kids seem to be 14 . Kids: Getting older younger There are 300 million children aged between 4–14 years in India — a vast market by any standards. Mobile2Win described: ―From pester power.More interestingly. which were. with kids pointing out the pros and cons of purchase decisions to their parents. decisions taken by parents. A highpotential emerging market is also the vast rural hinterland.‖ And this is not only in product categories like confectionary and toys. but in larger long-term-use categories such as cars. The role that children play in purchase decisions has changed dramatically in the past 4–5 years. ―In fact. Today the roles are reversed. in the older age group. As Rajat Jain. electronics and even consumer durables like refrigerators and air conditioners. purchases are being driven not by necessity.
UTV 15 . as Shantonu Aditya. Youth: Charting their own path With the majority of its population below the age of 25 years. they are clearer about what they want. UTV explained. The trend towards homogeneity is also apparent here.‖ The aspirations of the youth are the same. E there is no difference in the mindset of the younger demographic. “The younger demographic is equally comfortable at home with family and out with friends.growing older younger — a 12-year-old’s state of mind today is similar to what a 14-year old’s would have been 10 years ago. B.” — Shantonu Aditya. which is very interesting because this means that the marketers can address both these needs differently. Due to a higher degree of exposure to the outside world. India’s young consumer market is the primary target of every consumer goods company. their awareness levels are rising and as a result. ―In terms of aspiration between SEC A. C. D. driven primarily by the fact that they are all Internet savvy and this has given them equal access to information.
As Shantonu Aditya said: ―They are equally comfortable in both situations. they are on the whole sensible. A larger number of younger people now have cash in hand and this combined with increasing brand awareness has resulted in a lot of spending on leisure and personal gratification. Life is about visiting religious centres with their parents and then spending the evening with friends at the local club or a similar social venue. The young generation lives for today. very clear about what they want to achieve in their lives and not easily carried away by hype and show. As a segment. Along with the love for brands and gadgets. which is very interesting because this means that marketers can address both these needs differently. not in the classical. they are equally comfortable with Indian values and Indian culture.‖ Indian youth are also very patriotic.They are also a unique market. The outsourcing phenomenon in India has been the main driver of this consumer segment. the concept of saving for a rainy day is alien to most of them — especially 16 . preindependence sense but in a modern sense which reflects their pride in being Indian in today’s world.
They seem to want to do five things at the same time!‖. a mall or a cyber café. 17 . hanging out with friends is a clear preference.since the majority of them have not experienced shortages in their lives. while chatting with friends. whether they are at a multiplex. So. And as Ishan Raina observes: ―They practice extreme multitasking— using a mobile and an iPod as well as surfing the Internet. This is also a segment constantly on the move — mentally and physically. The young do not want to be at home and are spending twice the amount of time outside the house than they would have done a couple of years ago.
year on year. As Nitin Gupta. Thus. 90 per cent have never been used to purchase anything. even if it means taking credit.‖ Total spends on cards in India are of the order of USD 15 billion. rather than save and buy something tomorrow. he saved up until he could afford to buy it. with different consumer segments exhibiting varied buying behaviour. Paradoxically. which sounds like a reasonable number but is actually only 18 . As Jacob Kurian explained: ―We have always had consumers across all social and economic categories and across all towns.‖ Today. if he aspired to something. pointed out: ―We are talking about growth in spends of 100 per cent plus. The difference is that in the past the lower SEC consumers did not have the same confidence about the future and therefore. of the 100 million credit and debit cards in India. there has been a decreasing fear of debt and credit cards have become the new currency. the consumer would rather buy something immediately. Mastercard.Consumer buying behaviour India has always been a diverse market.
Mastercard What is important for marketers to understand are the dynamics of this change. of the 100 million credit and debit cards in India. But where will they make the trade-offs and what will they spend on? Health or education. Paradoxically. In other developed markets this number is around 30 per cent. especially since it is finite and definitely lower than the income of their developed country counterparts? A large part of consumption is currently being driven by emotional discretionary income. education and shelter. 90 per cent have never been used to purchase anything.3 per cent of family consumption expenditure. The interesting point. What is it that makes Indian consumers spend their money.” — Nitin Gupta. 19 . “We are talking about growth in spends of 100 per cent plus. is that this very paradox is actually a huge opportunity and it remains to be seen how consumer companies will take advantage of it. however. year on year. enabling people to spend on things beyond basic necessities such as food. fashion or technology? These are the questions that are keeping Indian marketers awake at night.
Foremost is the question of leadership. Mastercard 20 . we need the ability to manage diversity. Is this healthy. As Anjali Bansal put it: ―What kind of talent will companies need now that they are selling to a new consumer. As the consumer market in India grows. I feel we need diversity. Urban professionals are hypothesising about rural India and making decisions that affect the lives of the middle class in the small towns. But at a strategic level. an emerging consumer that is not well understood? More importantly. what kind of leadership will be required to manage growth effectively?‖ These questions gain special importance given that companies are increasingly being led by individuals very unlike the majority of their consumers. niches are developing.The leadership conundrum. or should companies be concerned? “At the operational level. raising new challenges for consumer companies. which includes ambiguity.” — Nitin Gupta.
But at a strategic level.‖ In today’s fast-paced world. So.‖ Common questions that have to be tackled in this dynamic environment are: How does one create more empathy for the woman consumer? For companies. which includes ambiguity.―I think many companies are re-evaluating their talent model.‖ said Subbu Narayanswamy. how do they cultivate empathy for ambiguity in their employees? Nitin Gupta captured the point when he said. ―I think the kind of challenges surrounding talent at the corporate level are different from the challenges for talent at the strategic level. ―as they realise that there are very big implications in the kind of talent that one brings into one’s company. 21 . at the operational level I feel we need diversity. opportunities are emerging everywhere and therefore a leader needs to deal with and manage diversity. which includes diversity of ideas. diversity of businesses and diversity of talent — all of which requires flexibility and the ability to shift and turn with every opportunity. we need the ability to manage diversity.
Problem Recognition: Percieving a need Perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. Five stages of Consumer Purchasing Behaviour. 3. 22 . Can be as simple as noticing an empty milk carton or it can be activated by marketing efforts. information search. alternative evaluation. post-purchase behavior. and 5. 2. 4. Behind the visible act of making a purchase lies a decision process that must be investigated. The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.Consumer Purchasing Process. 1. problem recognition. A. purchase decision.
3. Marketer-dominated sources. Often sufficient for frequently purchased products. Public sources. Personal sources. 2.B. Information Search: Seeking Value The information search stage clarifies the options open to the consumer and may involve Internal search Scanning one’s memory to recall previous experiences with products or brands. When past experience or knowledge is insufficient The risk of making a wrong purchase decision is high The cost of gathering information is low. External search The primary sources of external information are: 1. such as friends and family. such 23 . including various product-rating organizations such as Consumer Reports.
(2) Yielding brand names that might meet the criteria.as advertising. Alternative Evaluation The information search clarifies the problem for the consumer by (1) Suggesting criteria to use for the purchase. (3) Developing consumer value perception. and salespeople C. A consumer's evaluative criteria represent both o the objective attributes of a brand (such as the cloth and designs of the apparel brand) o the subjective factors (such as prestige). These criteria establish a consumer's evoked set o the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. company websites. 24 .
Purchase Decision: Buying Value From whom to buy which depends on such considerations o Terms of sale o Past experience buying from the seller o Return policy. the consumer compares it with expectations and is either satisfied or dissatisfied. Post Purchase Behaviour: Value in Consumption or Use After buying a product. which can be influenced by o store atmosphere o time pressure o a sale o pleasantness of the shopping experience. Satisfaction or dissatisfaction affects o consumer value perceptions o consumer communications o repeat-purchase behavior. Three possibilities When to buy Do not buy E.D. Many firms work to produce positive postpurchase communications among consumers 25 .
and contribute to relationship building between sellers and buyers. Cognitive Dissonance. The feelings of postpurchase psychological tension or anxiety a consumer often experiences Firms often use ads or follow-up calls from salespeople in this postpurchase stage to try to convince buyers that they made the right decision. 26 .
new consumer segments and an ever increasing range of products and services. companies need to create internal processes and structures that encourage an entrepreneurial spirit. the sector seems to have it all. With double-digit growth rates. Tomorrow’s leaders not only need to understand leadership concepts. There is a great deal of optimism surrounding the Indian consumer market.A last word. It is only when the individual and the organisation approach this together. while giving individuals the time and space to think beyond their immediate action areas. that the talent gap will be met and the commercial opportunity will be fully realised. consumer marketers accept that the industry is faced with a talent crunch and if companies fail to tackle this issue in the present. But is the future as buoyant as many people think? While all trends indicate that it is. but they also need the ability to understand current trends while identifying future opportunities. At the same time. there will be a huge gap in effective leadership in the future. 27 .
Magazines and Editorials. 28 .Methodology. with an intention to be neutrally balanced for everyone. The Questions: The questions in the questionnaire were both open ended and close ended both. Primary data: The primary data of the survey are the opinions of the common people and their awareness. Newspapers. the aim is just to have an analysis on the data for its variance in the responses by the different diversified states of mind which influence the purchasing behavior of the consumer. Sample Size: 100 people at average. Secondary data: The secondary data comprises of the data from different sources like:Internet.
I. Branded Apparel Puchased. Clothing Footwear Acessories Never Around 63% people prefer Branded Purchasing. Have you ever Purchased a Branded Apparel? Clothing Footwear Acessories Never.Findings and Analysis. 29 .
II. online(28%) On-Site(66%) Time Availability(6%) 30 . Depends on the Availability of time. Charactics of buying . Which of these statements describe how you are purchasing for clothing? I always purchase Online. I prefer purchasing onsite.
Footwear Buying. Which of these statements describe how you purchase for Footwear? I always purchase online.III. I prefer purchasing on-site. Don’t Know. Online(8%) On-site(86%) Don’t Know(6%) 31 .
IV. Motivation factor during purchase Funky Look Sober Color Combos Designs 32 . Designs. Sophisticated sober designs. Color combinations. Which of these factors motivate you during the purchase of branded apparels? Funky Look.
Comparision between online and offline purchase. Online satisfation level(36%) On-site satisfaction level(64%) 33 . If you Purchase online for the apparels or footwer how much satisfaction do you get in comparision with on-site purchase? Online purchase is satisfactory enough.V. Onsite purchase is more satisfactory.
(67%) Depends(20%) 34 .VI. How good do you feel wearing any branded apparel? Branded Apparel is an identity in its own. I feel I look good in branded apparels. Branded Apparels Satisfaction Brand has an Identity(82%) Non-branded pereferred(32%) Feels good in Branded ones. Depend on the society level. Non-branded is also preferred by me.
Once in 2-3 months.VII. I am a shopping maniac. Six months(64%) 2-3 Months(34%) Shopping maniac(20%) never(3%) 35 . How often do you Purchase Branded Apparels? Once in six months. Never. Frequency of branded purchasing.
Joint Family(48%) Nuclear family(52%) 36 . Do you live in joint family or a nuclear family? Joint Family. Types of family. Nuclear family.VIII.
Can’t say.IX. Joint family Prefence. Non-branded(43%) Branded(34%) Cant say(23%) 37 . Being in joint family how much do you prefer Branded Apparels purchase? Non-branded. Branded only.
There was a varied response in the frequency of the purchase behaviour of the the people. The Shopping behavior shows that 66% people prefer onsite shopping. People have started considerations of brand before any purchase decisions being made by them. About 63% people prefer Branded Apparel purchase. Joint-Families had an average response for both branded and non-branded apparels. The satisfaction level of the purchase being done onsite is much more than the online shopping because of the mind-set of the people to feel the product and try it before shopping. while 44% of shoppers also indicated purchasing online.CONCLUSION The most important factor that motivates online consumers to purchase clothing or footwear is discounted prices (31%). 38 . while nuclear families prefer branded apparel over the non-branded ones.
Inc). www. A. Times of India Crest Edition.com 39 .com G. The Economic Times.wikipedia.com H. E. Vivisimo search engine. Google Corporate Information(Google. Business Today Magazine.vivisimo.Bibliography. C. D. B. F.google. www. www.
Annexure 40 .
Questionnaire Name :.__________ E-mail ID:-____________ Gender:-______________ Have you ever Purchased a Branded Apparel? Clothing Footwear Acessories Never. Which of these statements describe how you are purchasing for clothing? I always purchase Online. Depends on the Availability of time.__________ Age:. I prefer purchasing onsite. 41 ._____________ Contact No:._________ Occupation :.
42 . Onsite purchase is more satisfactory. Designs. I prefer purchasing on-site.Which of these statements describe how you purchase for Footwear? I always purchase online. Sophisticated sober designs. Which of these factors motivate you during the purchase of branded apparels? Funky Look. Color combinations. If you Purchase online for the apparels or footwer how much satisfaction do you get in comparision with on-site purchase? Online purchase is satisfactory enough. Don’t Know.
43 . I am a shopping maniac. Branded only.How good do you feel wearing any branded apparel? Branded Apparel is an identity in its own. How often do you Purchase Branded Apparels? Once in six months. I feel I look good in branded apparels. Never Do you live in joint family or a nuclear family? Joint Family. Depend on the society level. Nuclear family. Non-branded is also preferred by me. Can’t say. Being in joint family how much do you prefer Branded Apparels purchase? Non-branded. Once in 2-3 months.
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