An investigation on consumer behavior and preferences

towards apparel, purchase by Indian consumers age 19 – 25

Submitted by:: Harish Vasdev

CUHP13MBA29

MASTER DEGREE OF BUSINESS ADMINISTRATION

CENTRAL UNIVERSITY OF HIMACHAL PRADESH

DHARAMSHALA DISTT. - KANGRA (H.P)

ii Consumer behavior| April 2014

An investigation on consumer behavior and preferences towards apparel,

Purchase by Indian consumers age 19 – 25

Bona fide record of work done by Harish Vasdev CUHP13MBA29

Report Submitted to Dr. Sarvesh Kumar (Assistant professor)

Deptt- Marketing and Supply Chain

April 2014

iii Consumer behavior| April 2014

Table of Contents

Executive summery……………………………………………………………………………………….v

Indian scenario on apparel retailing…………………………………………………………………….v

Apparel fashion……………………………………………………………………………………………v

Problem focus…………………………………………………………………………………………… vi

Objectives of the study…………………………………………………………………………………. vi

Limitations of the study………………………………………………………………………………… vii

Research methodology………………………………………………………………………………… vii

1Selection of the study area……………………………………………………………………………vii

2 Sampling design……………………………………………………………………………………….vii

3 Types of data collected……………………………………………………………………………….vii

4 Method of data collection…………………………………………………………………………… viii

Review of literature…………………………………………………………………………………….. ix

Consumer………………………………………………………………………………………………... ix

Consumer behavior………………………………………………………………………………………ix

Cultural factors…………………………………………………………………………………………… x

Social factors………………………………………………………………………………………………x

Psychological factors……………………………………………………………………………………..x

Personal factors…………………………………………………………………………………………..x

Customer satisfaction…………………………………………………………………………………… x

Top retailers in India……………………………………………………………………………………..xi

Results and discussion…………………………………………………………………………………. xi

Interpretation…………………………………………………………………………………………… xiii

Interpretation…………………………………………………………………………………………… xiv

Conclusion………………………………………………………………………………………………xvii

Appendix……………………………………………………………………………………………….. .xix

List of source…………………………………………………………………………………………… xxi

iv Consumer behavior| April 2014

List of tables 1 Table……………………………………………………………………………………………………xiii

2 Table……………………………………………………………………………………………………xiii

3 Table…………………………………………………………………………………………………...xiv

4 Table……………………………………………………………………………………………………xv

5 Table………………………………………………………………………………………………….xviii

List of Figures

1 figure……………………………………………………………………………………………………..x

2 figure…………………………………………………………………………………………………….xi

3 figure……………………………………………………………………………………………………xii

4 figure……………………………………………………………………………………………………xiii

v Consumer behavior| April 2014

Executive Summary

The Indian economy has grown over the last 10 years with new jobs created in the ITES sector,

Biomedical, Automotive engineering, Apparel manufacturing and Civil engineering. The growth

is strongly led by Information Technology Enabled Services (ITES); this is supported by the

Education sector with increase in the number of students enrolling for higher education and

Large numbers of students graduating every year thus creating a large pool of technical and

Managerial manpower. The working class people segment has grown since the economic

Growth and it has benefited middle class and upper middle class people. Due to the increase in

The number of working people and substantial raise in income, spending power has increased

Over the years, and particularly the young Indians in the age of 19 – 25 like to shop more.

The increase in food, energy and real estate costs makes people‘s lives more difficult at this

time. Are we going to follow the western countries and repeat the same mistake leading to a

standstill? As resources are getting to near exhaustion, now is the time to think and ask

ourselves question of what we are doing and justify ensuring that we buy only for our needs.

This study focuses on the consumer behavior of young Indians in the age of 19 – 25 to

understand and know their perception towards spending and to show a new path for the society

and the industry for a sustainable environment.

vi Consumer behavior| April 2014

Indian Scenario on Apparel Retailing

The apparel market has seen considerable churning with respect to dressing pattern, style,

Usage of branded items, and choice of fibers and awareness of latest trends. The Indian textile

Industry is a sector which has generated employment in large scale and it stands next only to

Agriculture by providing employment to about 15 million people across rural as well as urban

Areas (Retail). It further says that in India, apparel is the second largest retail category,

representing 10 percent of the US$ 37 billion global retail market. It is expected to grow 12-15

percent per year. Apparel, along with food and grocery, will lead the organized retailing in India

(Retail).

Apparel Fashion

The apparel fashion plays a paramount role in shaping apparel consumerism. As lifestyles

change, fashion in India is becoming more diversified, as in the Western countries. Technology,

Ideas and lifestyles are moving concurrently and quickly. Companies and brands that offered

Monotonous and mundane products for years, have now multiplied their product ranges and

New appealing styles, shapes and forms are being launched each season by them.

vii Consumer behavior| April 2014

Problem Focus

While the fastest growth and development of retailing environment, understanding the psyche of

customer is critical for today‘s business and environment. Aggregate or macro level information

May mislead, so understanding at individual customer level is desirable. It is generally observed

That customers have a wide range of choices for purchasing apparels and they have no clear

Vision to what they buy. Today‘s consumption in young Indian consumer has no limits - they

Work hard and spend money for more non-essential products and it is been a driving factor and

evolution in the Indian Apparel Retail sector.

Objectives of the Study

Fashion changes rapidly from time to time. The consumer demand varies from demographic,

geographic and social cues. The aim is to understand consumer behavior of Indian consumers

in the age of 19 – 25. It is divided into two sub groups, male and

the second one is female. This study brings the difference between the two groups of

consumers and to understand their preference. The study also aims to determine the consumer

behavior towards apparels. The aims of this study are:

To understand some of the driving factors of consumerism in India.

To understand the buying decision by individual in the groups.

To study the attributes or sensory feelings of consumers towards Indian and western apparel.

To know whether and how some demographic variable of the respondents have influence in

buying brand or non-branded apparel products.

To know the role of family members, friends and peers in information search about the

apparels.

To understand the lifestyle and consumption pattern of Indian consumers and what the future

might look like.

viii Consumer behavior| April 2014

Limitations of the Study

The present study was confined to study the behavior and awareness towards ethical fashion

Among young Indian generation; hence extrapolation of the results may not be possible since

there is a wide difference in customer preference, behavior, and the factors like socioeconomic,

demographic and psychographic across regions. The study is limited to only Himachal Pradesh

state only; it is suggested to carry out research in a larger scale to find out results across

regions. The study was completely consumer oriented and data collection was done by personal

interview method. However, serious attempts have been made to minimize the error at every

face of the study right from defining the problem and incorporation of exact words in the

interview schedule to final expression in questioning the consumers. The study is limited to the

people who have completed graduation.

Research Methodology

A study can be initiated with a proper design and methodology to bring out the suitable findings

Which are reliable and applicable to solve the problems and useful to carry out further research

of interest. It needs a careful analysis of the consumer through which the results for the present

study can be crystallized for framing suitable solutions. A brief description of the

research methodology adopted in selection of the area, sampling of customers, method of data

collection and the tools used for data analysis are presented.

1.Selection of the Study Area

This study was conducted in Kangra distt. The Economy of Kangra District consists mostly of

agriculture and farming. Tea cultivation plays a vital in the economy. "Kangra Tea" is famous

worldwide for its rich aroma, colour and taste. A few other industries that have been established

in the region, including water packaging, construction materials, and potato chips.

2.Sampling Design

The sample population was the consumers, in the age of 19 – 25. The sampling was adapted to

Cover a sample size of 35 in each segment (21 male and 14female). The survey was done

Through schedule. The sample was heterogeneous to some extent as it includes male, Female,

and people from different distances and income group of regular and occasional buyers and

homogenous in context of education.

ix Consumer behavior| April 2014

3.Types of Data Collected

The type of data is Primary data which is collected through the questionnaire.

4.Method of Data Collection

Well-structured questionnaire was framed and used for collection of data (Appendix). The

Consumers were contacted through Whatsapp and in person. They were given a brief

introduction about the purpose and importance of the study. Enough time was given to them to

think over the answers for the questions to have reliability of response. Details regarding

demographic, economic, social, physiographic and behavioral characteristics of the consumer,

consumer‘s awareness, buying behavior and preferences for buying apparels were taken as

part of the survey.

x Consumer behavior| April 2014

Review of Literature Consumer Consumers are individuals and households who buy goods and services for personal

consumption. (Kotler)

Consumer Behaviour

The official definition of consumer behaviour is given by the American Marketing Association as:

the dynamic interaction of the affect and cognition, the behaviour and environment through

which people carry out transactions in their life. (Bennett 1995, page 59).

Five-Stage Model of the buying process:

Figure 1

(Kotler 1993, p. 182)

Figure 2

(Prof. Dr. Maggie Geuens, Consumer Behaviour, 1999)

Those questions find answers through the study of the factors that influences consumer’s

behaviour. Those factors are separated in four categories: social, cultural, demographical and

psychological. Those factors and its categories are the following:

xi Consumer behavior| April 2014

1. CULTURAL FACTORS

Culture: Culture (or civilization) is the highest entity of personal identification with the society.

These entities were in the past the nations and could be in the future the civilizations (Western,

Muslim, Hindi, Chinese).

2. SOCIAL FACTORS:

Social class: “Social classes are relatively homogeneous and enduring divisions in a

society, which are hierarchically ordered and whose members share similar values

interests and behaviour” Social classes show distinct product and brand preferences in

such areas as clothing, home furnishing, leisure activities, automobiles, and food and

beverages. (KOTLER, 2000, p. 161)

3. PSYCHOLOGICAL FACTORS:

Perception

Learning

Attitude

Personality

4. PERSONAL FACTORS

Age

Occupation

Life style

Customer satisfaction has three stages:

1. The pre-sales stage where there are the expectations for the product, the profits, the price

and the availability of product.

2. The sales stage when customer trays the environment, the product, the type of service, the

delivery, the quality and the redress from the market.

3. The after-sales stage when customer expects the support or the advices, the replacement of

product or the return of sum, repairs and processes of charges. (Churchill and Suprenant,

1982).

xii Consumer behavior| April 2014

Top retailers in India

Pantaloon retail,K Raheja group,Tata group, RPG group ,Landmark group, Bharathi-Wal-

Mart,Reliance,A V Birla groups,Metro,Viveks Ltd

Results and Discussion

The data collected from 35 respondents were analyzed in accordance with objectives of the

Report. The results are presented and discussed in this. For the effective presentation of

Results, different sections were framed as furnished hereunder-:

General data

Figure 3

xiii Consumer behavior| April 2014

GENDER OF RESPONDENT

Frequency Percent Valid

Percent Cumulative

Percent

Valid MALE 21 60.0 60.0 60.0

FEMALE 14 40.0 40.0 100.0

Total 35 100.0 100.0

Table 1

Table 2

Figure 4

AGE OF RESPONDENT

Frequency Percent

Valid Percent

Cumulative Percent

Valid UPTP 19

7 20.0 20.0 20.0

20-23 10 28.6 28.6 48.6

23-25 14 40.0 40.0 88.6

ABOVE 25

4 11.4 11.4 100.0

Total 35 100.0 100.0

xiv Consumer behavior| April 2014

i) Interpretation –This data is interpreted by the help of SPSS. All options of schedule are

numbered (Gender basis) and on that basis means of all schedule is calculated. If the mean is

less than one then option one is general consumer behavior and it is 2 then general behaviors

towards option two and goes on.

Group Statistics

GENDER OF RESPONDENT N Mean Std.

Deviation

Std. Error Mean

CONSIDER BRANDS MALE 21 1.67 .856 .187

FEMALE 14 1.43 .646 .173

FACTORS INFLUENCED YOU MOST

MALE 21 2.38 .973 .212

FEMALE 14 1.79 .975 .261

IMPACT OF ADVERSTISEMENT MALE 21 1.71 .902 .197

FEMALE 14 1.79 .893 .239

ROLE OF DISCOUNTS MALE 21 1.29 .717 .156

FEMALE 14 1.71 .994 .266

EXPERIENCE OF APPAREL MALE 21 3.10 1.375 .300

FEMALE 14 2.71 1.069 .286

CLOTHING STYLE MALE 21 1.86 .727 .159

FEMALE 14 1.64 .633 .169

AVERAGE SPENDING/PER YEAR MALE 21 3.05 .973 .212

FEMALE 14 2.79 1.051 .281

WINDOW SHOPPING MALE 21 2.00 .894 .195

FEMALE 14 1.57 .646 .173

CLOTHES IN YOUR WARDROBE MALE 21 2.86 .910 .199

FEMALE 14 3.29 .994 .266

PURCHASE ACCESSORIES FROM SAME STORE

MALE 21 2.14 .964 .210

FEMALE 14 1.71 .914 .244

WHERE YOU SHOP MALE 21 2.43 1.568 .342

FEMALE 14 2.14 1.231 .329

HOW LONG YOU WANT REPLACEMENT PERIOD

MALE 21 1.62 .921 .201

FEMALE 14 2.14 .949 .254

WHICH GROUP INFLUENCE YOU MOST

MALE 21 2.14 1.108 .242

FEMALE 14 1.79 .893 .239

YOUR PURCHACHING DEPENDS UPON

MALE 21 2.14 .964 .210

FEMALE 14 1.93 .997 .267

SATISFIED WITH LAST PURCHASE MALE 21 1.24 .625 .136

FEMALE 14 1.64 .842 .225

xv Consumer behavior| April 2014

Table 3

ii) Interpretation- All options of schedule are numbered (Age basis) and on that basis means

of schedule is calculated. If the mean is less than one then option one is general C.B and it is 2

then general behavior towards option two and goes on.

Descriptive

N Mean

CONSIDER BRANDS UPTP 19

7 2.29

20-23 10 3.00

23-25 14 3.00

ABOVE 25

4 3.75

Total 35 2.94

FACTORS INFLUENCED YOU MOST UPTP 19

7 1.57

20-23 10 1.90

23-25 14 1.93

ABOVE 25

4 1.75

Total 35 1.83

IMPACT OF ADVERSTISEMENT UPTP 19

7 3.00

20-23 10 3.40

23-25 14 2.57

ABOVE 25

4 3.75

Total 35 3.03

ROLE OF DISCOUNTS UPTP 19

7 1.86

20-23 10 2.20

23-25 14 2.00

ABOVE 25

4 1.50

Total 7 2.00

EXPERIENCE OF APPAREL UPTP 19

10 1.10

HOW OFTEN DO YOU SHOP MALE 21 1.43 .507 .111

FEMALE 14 1.64 .745 .199

WITH WHOM DO YOU BUY MALE 21 2.24 .995 .217

FEMALE 14 2.14 .770 .206

WHEN BUYING APPAREL MALE 21 1.52 .512 .112

FEMALE 14 1.36 .497 .133

xvi Consumer behavior| April 2014

20-23 14 1.71

23-25 4 1.50

ABOVE 25

35 1.57

Total 7 1.86

CLOTHING STYLE UPTP 19

10 2.50

20-23 14 2.14

23-25 4 1.75

ABOVE 25

35 2.14

Total 7 1.71

AVERAGE SPENDING/PER YEAR UPTP 19

10 1.90

20-23 14 1.71

23-25 4 1.50

ABOVE 25

35 1.74

Total 7 1.00

WINDOW SHOPPING UPTP 19

10 1.60

20-23 14 1.29

23-25 4 2.50

ABOVE 25

35 1.46

Total 7 3.29

CLOTHES IN YOUR WARDROBE UPTP 19

10 2.60

20-23 14 2.86

23-25 4 3.50

ABOVE 25

35 2.94

Total 7 2.29

PURCHASE ACCESSORIES FROM SAME STORE UPTP 19

10 1.60

20-23 14 1.79

23-25 4 1.25

ABOVE 25

35 1.77

Total 35 1.97

WHERE YOU SHOP UPTP 19

7 3.14

20-23 10 1.80

23-25 14 2.07

ABOVE 25

4 3.00

Total 35 2.31

HOW LONG YOU WANT REPLACEMENT PERIOD UPTP 19

7 2.29

20-23 10 1.70

23-25 14 1.64

xvii Consumer behavior| April 2014

ABOVE 25

4 2.00

Total 35 1.83

WHICH GROUP INFLUENCE YOU MOST UPTP 19

7 1.86

20-23 10 1.70

23-25 14 2.14

ABOVE 25

4 2.50

Total 35 2.00

YOUR PURCHACHING DEPENDS UPON UPTP 19

7 2.29

20-23 10 2.00

23-25 14 2.00

ABOVE 25

4 2.00

Total 35 2.06

SATISFIED WITH LAST PURCHASE UPTP 19

7 1.86

20-23 10 1.10

23-25 14 1.36

ABOVE 25

4 1.50

Total 35 1.40

HOW OFTEN DO YOU SHOP UPTP 19

7 1.57

20-23 10 1.40

23-25 14 1.64

ABOVE 25

4 1.25

Total 35 1.51

WITH WHOM DO YOU BUY UPTP 19

7 1.71

20-23 10 2.80

23-25 14 1.93

ABOVE 25

4 2.50

Total 35 2.20

WHEN BUYING APPAREL UPTP 19

7 1.29

20-23 10 1.60

23-25 14 1.29

ABOVE 25

4 2.00

Total 35 1.46

Table 4

xviii Consumer behavior| April 2014

Simple Average

Total 1 2 3 4 5

Sex 35 60% 40% 0% 0% 0%

Age 35 20% 29% 40% 11% 0%

BRAND 35 60% 23% 17% 0% 0%

FACTOR 35 34% 26% 31% 9% 0%

ADV 35 54% 17% 29% 0% 0%

OFFS 35 77% 0% 23% 0% 0% EXPERIE

NCE 35 11% 31% 23% 20% 14%

STYLE 35 37% 49% 14% 0% 0%

SPEND 35 6% 34% 20% 40% 0%

W.S 35 43% 31% 26% 0% 0%

WARD 35 6% 26% 29% 40% 0%

ACCESS 35 46% 11% 43% 0% 0%

WHERE 35 46% 6% 34% 0% 14%

REPLACE 35 49% 26% 20% 6% 0% INFLUEN

CE 35 46% 14% 34% 6% 0%

CHOICE 35 43% 9% 49% 0% 0% SATISFIE

D 35 74% 11% 14% 0% 0%

OFTEN 35 54% 40% 6% 0% 0%

WHOM 35 17% 60% 9% 14% 0%

WHEN 35 54% 46% 0% 0% 0%

Table 5

xix Consumer behavior| April 2014

Conclusion Growing economy has made Indian consumers more prosperous. An indication of this is clearly

Given by the investigation on consumer behavior of young Indian consumers in the age of 19-

25. This study has focused on how the buying behavior varies between the age group of 19-

25.Based on the investigations the following conclusions can be drawn on the consumer

behavior for this particular group.

Based on the investigations the following conclusions can be drawn on the consumer behavior

For this particular group

1. Consider brands: In average 35% sample consider brands 23% not And Remaining

17% consider sometimes. In this area social cultural factor dominates to buying

behavior.

2. Factor influenced most: 34% sample is influenced by cultural factors 26% by social

factor 31% by personal factors and only 9% psychological factors.

3. Impact Of advertisement/offs: 54% sample likes adv. and influenced 17% have not

and 29 % sometimes.

4. Effect of discounts and offs: 77% yes likes, 29% sometimes.

5. Experience which attracts: 11% likes trend,31% quality,23% brands, 20% Fitting ,14%

price

6. Style : 37% formal ,49% casual, 14% traditional

7. Average spending/year(INR): Up to 2000 6%, 2 to 3000 34%, 3 to 4000 20% ,and

above 40 %(All respondents are students)

8. Window Shopping : 43% yes , 31% No, 26% Sometimes

9. Clothes in wardrobe : up to 6 6%, 6-10 26%, 10-15 29%,above 40%

10. Purchase accessories from same store: yes 46%, no 11%, 43% sometimes if price is

reasonable

11. Where you shop: 46% store visit, 6% online, 34% malls, No one from boutique, 14%

budget store ( No one likes customize shopping)

12. Replacement period : 49% wants 7days , 26% 15 days,20% 30 days,6 % 45 days (due

to unorganized retailing )

13. Group influencer : 46% by family and friends, 14% opinion leader,34%peer group, 6%

aspirational

14. Purchasing depends upon: 43% own choice, 9% other choice, 49% combine choice

15. Satisfied by last purchase : 74% yes, 11% no,14% don’t know

16. Often do you shop: 54% once in month or less, 40% 2-3 times a month, 6%more than

3 in a month

17. With whom do you buy: 17% with parents, 60% friends, 9 siblings,14% alone

18. When buying: 54% go directly in a particular shop, 46% go around in various shops.

xx Consumer behavior| April 2014

Appendix

Customer/consumer behavior towards Apparels Purchasing

I) Introductory Information

1. Name:

3. Gender: Male (1) Female (2)

4. Age: upto19 (1) 20 to23 (2) 23 to 25(3) 25 & above (4)

5. Education: Graduate (1)

II) About Consumer Behavior for Apparels

1. Do you consider brands in purchase time?

Yes (1) No (2) Sometimes (3)

2. Which Factor influenced you most?

Cultural (1) Social (2) Personal (3) Psychological (4)

3. Is any impact of advertisements/promotions on your Behavior?

Yes (1) No (2) Sometimes (3)

4. Is discounts/Offs speeds ups your purchases

Yes (1) No (2) Sometimes (3)

5. Which Experience of apparel attracts you?

On trend (1) Product quality (2) Brand (3) Fitting (4) Price (5)

6. Which style of clothing you likes the most?

Formal (1) Casual (2) Traditional (3)

7. On average, how much do you spend on clothing per year?

xxi Consumer behavior| April 2014

Up to 2000(1) 2000 to 3000(2) 3000 to 4000(3) Above (4)

8. Do you like window shopping?

Yes (1) No (2) Sometimes (3)

9. How many clothes in your wardrobe

Up to 6 (1) 6-10(2) 10-15 (3) Above (4)

10. Do you purchase accessories from same store if available?

Yes (1) No (2) Sometimes if price is reasonable (3)

11. Where you shop for apparels

Store visit (1) Online purchase (2) Malls (3) Boutique (4) Budget store (5)

12. How long you wants replacement period

7 Days (1) 15 days (2) 30 days (3) 45days (4)

13. Which group influenced you most?

Family & Friends (1) Opinion Leader (2) Peer group (3) Aspirational (4)

14. Your Purchasing depends upon

Yours Choice (1) others choice (2) combine choice (3)

15. Do you satisfied with your last purchase

Yes (1) No (2) Don’t know (3)

16. How often do you shop for apparel?

Once in month or less (1) 2-3 times a month (2) more than 3 in a month (3)

17. With whom do you buy your Apparel?

Parents (1) Friends (2) Siblings (3) Alone (4)

18. When buying apparel, you:

Go directly in a particular shop (1) go around in various shops (2)

xxii Consumer behavior| April 2014

List of Sources

1. Sachdeva JK (2009), Business Research Methodology, Himalyan Publishing House Pvt

Ltd, New Delhi.

2. Cooper, Donald R & Schindler, Pamela S (2010), Business Research Methods, 9th

Edition, McGraw-Hill Companies, New Delhi

3. Philip, Kotler. Principles of Marketing. New Delhi: Prentice Hall of India Ltd, 2000.

4. Pandey, Rajni. Indian retailer.

5. http://retail.franchiseindia.com/articles/Retail-Trends/Retail-Industry/Top-Retailers-in-

India-404/

6. CNBC. Money control.

2011http://www.moneycontrol.com/news/cnbctv18comments/why-global-retailers-strive-

to-find-right-indian-partner_541214.html

7. Business dictionary .

http://www.businessdictionary.com/definition/consumer-awareness.html.

8. Thanks to Emeryevalution.com for excel assistance

9. Mr. Chaman Lal assistant professor deptt. Of marketing and supply chain.

10. Consumer Behaviour-Ramanuj Majumdar

11. [Michael_Solomon]_Consumer_Behaviour

12. www.dollardays.com

13.

xxiii Consumer behavior| April 2014