Study of Consumer Behavior

GROUP – 11K.P.Veena (105)

Sheetanshu Mani Tripathi (107) Akansha Sharma (109)

Abhay Thakur (110) Harsh Sharma (111)

Flow of Presentation

• Consumer behavior concept • Concept from various other discipline• Importance of Consumer behavior • Dominant forces shaping Consumer Research• Environmental factors that affect the marketing

challenge• Variables involved in understanding consumer behavior• Overall Model of Consumer Behavior• Marketing survey research and findings• Conclusions

Consumer Behavior concept

Those activities directly involved in Obtaining consuming and disposing of products and services, including the decision processes that precede and follow these actions

Concept from various other discipline

• Psychology• Sociology• Anthropology• Economics• Marketing

Importance of Consumer Behavior

• Out of 11000 products launched by 77 companies, only 56% are present five years later – Kuczmaski & Associates

• Only 8% of new product concepts offered by 112 leading companies reached the market. Out of this 83% failed to reach marketing objectives – Group EFO Ltd., Marketing News, Feb 1, 1993, Pg 2

• Understanding and adapting to consumer motivation and behaviour is not an option – it becomes a necessity for competitive survival

Dominant forces shaping Consumer Research

• Factors that move an economy from Production-driven to Market-driven

• Level of sophistication with which human behavior is understood in psychology and other behavioral sciences

Environmental factors that affect the marketing challenge

• Extent to which the supply of valid products and services exceed consumer demand

• Ability to communicate with customers quickly and accurately

• Existence of multiple avenues of distribution quickly and economically

• Extent to which marketers can influence to induce distributors to comply with overall marketing strategy

• Economic growth, both nationally and globally

Variables involved in understanding consumer behavior

• Stimulus – ads, products, hungerpangs• Response – physical/mental reaction to the

stimulus• Intervening variables – mood, knowledge,

attitude, values, situations, etc.

Overall Model of Consumer Behavior

Self-Concept&

Learning

Decision ProcessesExternal Influences

Internal Influences

CultureSubculture

DemographicsSocial status

Reference groupsFamily

Marketing Activities

PerceptionLearningMemory

MotivesPersonalityEmotions

Attitudes

Problem Recognition

Information Search

Alt Eval & Selection

Outlet select & Purchase

Postpurchase Processes

Market Survey Objective

• To gain insights into Indian consumers’ shopping behaviors

• What is their level of brand awareness and brand consciousness?

• What type of products do they purchase? From what kinds of markets

• What are the factors determining the choice of market & frequency of shopping for particular products?

• To draw useful implications for retailers and policymakers

Group Contribution

• Market Survey of one hundred high and middle-income, educated consumers’ shopping behavior across, different regions of NCR .

Presentation Organization

• Description of the primary survey • Sample profile• Summary results of Indian shopper behavior• Findings for retailers and policymakers• Scope of further study

Description of the primary survey

• A general survey was conducted based on the questionnaire through interviews with consumers in shopping malls & different markets .

• Focused on the consumers’ level of brand consciousness, where they purchase such brands from, and what factors determine their purchase decisions.

Product CategoriesClothing and Fashion Accessories

Footwear and Leather Goods

Gems and Jewellery

Food and Grocery

Home Furnishing and Home Appliances

Sports Goods

Health and Wellness Products

Gifts and Stationery Items

SAMPLE PROFILE

61.67%

38.33%

Gender Distribution

Males

Females

18

22

10

age distribution of sample

15-25 25-35 35 &above

schooling undergraduate graduate post graduate0

2

4

6

8

10

12

14

16

18

Educational breakup

sample breakup

Sample distribution across location

Location Sample size

Noida 18

Rajauri garden 20

dwraka sec 6 12

Importance of Various Factors in Consumers’ Choice of market

1. Pric

e of th

e Pro

duct are

reaso

nable

2. Quali

ty of th

e pro

ducts ar

e good

3. Differe

nt bran

d avail

abilit

y

4. past

experi

ence

with sh

opping fro

m this m

arket

is good

5. fam

ily/fr

iends/p

eer's

opinion.

6. Sale

s pro

motion/adve

rtisem

ent a

ctiviti

es.

7. Pack

aging o

f pro

ducts ar

e exce

llent .

8. reli

abilit

y of p

roducts

are g

ood0

10

20

30

40

50

60

70

80

90

100

7466

78

88

5347

37

54

percentage openion

percentage openion

Note: Scale of 1 to 5, higher is better. Percentage calculated on the basis of “high (4)” and “very high (5)” on factor importance ratings. This is a multiple choice question

consumer perception of modern market: Top 5 and bottom 5

* 1=very bad, 5=very good

Factors Mean Evaluations

Infrastructure 4.49

Store Operators 4.47

Availability of products 4.36

Shop Operating Time 4.30

Availability of public transport and toilets

4.26

Ability to Bargain 1.59

Parking facility 3.54

Ease getting things exchanged/returned

3.56

Prices of products 3.64

Distance and required travel time 3.73

factors influencing Indian consumers’ shopping in different markets

* 1=very low importance, 5=very high importance

Factor Mean Importance*

Product Quality 4.64

Product Selection and Newness

4.47

Customer Service 4.29

Store Ambience and Convenience

4.27

Price 3.71

Findings from Consumer Survey

• Brand consciousness is increasing but varies across different product categories

• Indian consumers are price sensitive – right product pricing

• Different product availability in same place is more attractive than quality of products

• Add some more in it .