Deepika Shampoo

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SCHOLARSWORLD-IRMJCR Online: ISSN 2320-3145, Print: ISSN 2319-5789

www.scholarsworld.net [email protected] Volume. I, Issue.III, November 2013 [121]

STUDY OF BUYING BEHAVIOR OF INDIAN

CONSUMERS IN THE HAIR CARE PRODUCT MARKET

MS. RASHMI ,

Assistant Professor,

Department of Business Management,

College of Vocational Studies, University of Delhi.Delhi-India

ABSTRACT

Hair care products are fast moving consumer goods that have seen a surge in their sales in thepast few decades. In India also, more and more people are opening up to the idea ofexperimenting and trying out newer hair care products. In this growing market, HindustanUnilever Limited and P&G are two major marketers. This study attempts to uncover the various

factors that influence the buying decision of shoppers and consumers who plan to purchase and/oruse the hair care products sold by these two companies.

Keywords:Buying behavior, FMCG, quality, Advertisements, Promotion


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INTRODUCTION:

Fast moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quicklyand at relatively low price. Though the absolute profit made on FMCG products is relatively small, theygenerally sell in large quantities; the cumulative profit on such product can be substantial. FMCG have a shortshelf life, either as a result of high consumer demand or because the product deteriorate rapidly. Consumer keep

limited inventory of these products and prefer to purchase them frequently, as and when required. Consumersspend little time on the purchase decision. Rarely do they look for technical specification, in contrast toindustrial goods. Brand loyalty or recommendations of reliably retailer or dealer drive purchase decision. Trial

of a new product i.e. brand switching is often induced by heavy advertisements, recommendations of theretailers, neighbors or friends. Hair care products are examples of FMCG.Indian market for hair care products: Hindustan Unilever Limited (HUL) and Proctor and Gamble (P&G) aretwo of the leading players in the Indian hair care market. The Hair care market consists of the retail sale ofconditioner, hair colorants, salon products, shampoo and styling agents. The market is valued according toretail selling price (RSP).Hair care, once an occasion based activity, has now become an integral part of Indian consumer daily beauty

regime. With growing disposable income and increasing western influence, Indian consumer are not shyingaway from experimenting with newer or pricier products. This has created new opportunity for the companies

in this sector. As a result, products which once were non-existent in the Indian market are increasingly findingplace in the Indian consumer shopping basket.Due to increasing competition, manufacturers of hair care products in India have realized the pressing needs todifferentiate their offerings from other competing brands. This has resulted in greatest segmentation in the haircare market. Increasing awareness among consumers has made manufacturers realized that a one size fits all

approach is no longer enough to attract customers. The demand for customized offerings has resulted in theemergence of niche segments in the Indian Hair Care Market.

OBJECTIVES OF THE RESEARCH:

1. To study Indian consumers buying behavior on hair care products of HUL and P&G.2. To evaluate the factors influencing hair care consumers buying behavior of HUL and P&G products in

the Indian Market.

LITERATURE REVIEW:

Saxena (2008) has explored the facts that Hindustan Unilever (HUL) has increased its share in the shampoomarket even as rivals Procter & Gamble (P&G) and CavinKare have suffered erosion.P. Guru Ragavendran(2009) surveyed the consumer perception on brand awareness and position of product in the market. It wasobserved that consumers expectations were Quality, benefits offered and packaging of shampoos. Sharma and Mehta (2012) reported that frequency of shampoo use in males is very less as compared to femalesand the consumers use it only for the purpose of cleaning, not for making their hair healthier or stronger. Maleconsumers useshampoo on special occasions such as weddings. The majority of respondents prefers TV foradvertisement and is not satisfied with the quality of the shampoo and the free gifts distributed with them.Sachet is more preferred as compared to bottles for the purpose of packaging of shampoo.

A consumers behavior is affected by three different factors: cultural, social and personal (Kotler and Keller,2009). The Indian culture is a collectivist culture, where more importance is placed on achieving goals of thegroup, in contrast to individualistic cultures where the emphasis is on attaining personal goals (Solomon, 2006).This has been taken into account in this study also.A reference group is a group that has direct or indirect influence on a persons attitude or behavior (Kotler andKeller, 2009). Noel (2009) states that reference groups serve as a way of comparing oneself to others.Noel alsonotes that recommendations for products and services made by friends or relatives have a higher value to a

consumer than recommendations made by sales staff.

RESEARCH METHODOLOGY:

Survey Questionnaire: The survey questionnaire was focused on the factors influencing the Indian customers

buying behavior related to hair care products of HUL and P&G. The structured questionnaire, which had close-ended questions, also collected information on customers backgrounds. (Appendix 1)


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Data Collection: Primary data was collected from hair care product consumers and shoppers. T-test was used asthe main method for testing the hypotheses at 5% level of significance. One-sample T-tests at 95% confidenceintervals were performed and the null hypotheses were tested for rejection in each case.Sample Selection: A probability sample of 190 respondents, located in Delhi, India, was used.

HYPOTHESES:

Hypothesis 1:

H0: There is no significant relationship between brand name and buying decision for hair care products.H1: There is a significant relationship between brand name and buying decision for hair care products.

Hypothesis 2:

H0: There is no significant relationship between personal experience and buying decision for hair care products.H1: There is a significant relationship between personal experience and buying decision for hair care products.

Hypothesis 3:

H0: There is no significant relationship between packaging and buying decision for hair care products.H1: There is a significant relationship between packaging and buying decision for hair care products.

Hypothesis 4:H0: There is no significant relationship between newness of the product and buying decision for hair care products.H1: There is a significant relationship between newness of the product and buying decision for hair care products.

Hypothesis 5:

H0: There is no significant relationship between quality and buying decision for hair care products.H1: There is a significant relationship between quality and buying decision for hair care products.

Hypothesis 6:

H0: There is no significant relationship between texture (color, smell etc.) and buying decision for hair care products.H1: There is a significant relationship between texture (color, smell etc.) and buying decision for hair care products.

Hypothesis 7:

H0: There is no significant relationship between previous usage experience and buying decision for hair care products.H1: There is a significant relationship between previous usage experience and buying decision for hair care products.

Hypothesis 8:

H0: There is no significant relationship between product claim of being natural/herbal and buying decision forhair care products.H1: There is a significant relationship between product claim of being natural/herbal and buying decision for

hair care products.

Hypothesis 9:

H0: There is no significant relationship between claims by experts and buying decision for hair care products.H1: There is a significant relationship between claims by experts and buying decision for hair care products.

Hypothesis 10:

H0: There is no significant relationship between product characteristics and buying decision for hair care products.

H1: There is a significant relationship between product characteristics and buying decision for hair care products.

Hypothesis 11:

H0: There is no significant relationship between price and buying decision for hair care products.H1: There is a significant relationship between price and buying decision for hair care products.

Hypothesis 12:

H0: There is no significant relationship between sales promotion and buying decision for hair care products.

H1: There is a significant relationship between sales promotion and buying decision for hair care products.

Hypothesis 13:

H0: There is no significant relationship between personal selling and buying decision for hair care products.H1: There is a significant relationship between personal selling and buying decision for hair care products.


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Hypothesis 14:

H0: There is no significant relationship between advertisements and buying decision for hair care products.H1: There is a significant relationship between advertisements and buying decision for hair care products.

Hypothesis 15:

H0: There is no significant relationship between store ambience and buying decision for hair care products.H1: There is a significant relationship between store ambience and buying decision for hair care products.

Hypothesis 16:

H0: There is no significant relationship between product safety and buying decision for hair care products.H1: There is a significant relationship between product safety and buying decision for hair care products.

Hypothesis 17:

H0: There is no significant relationship between product trustworthiness and buying decision for hair care products.

H1: There is a significant relationship between product trustworthiness and buying decision for hair care products.

Hypothesis 18:

H0: There is no significant relationship between brand loyalty and buying decision for hair care products.H1: There is a significant relationship between brand loyalty and buying decision for hair care products.

DATA ANALYSIS:

Of the 190 respondents surveyed, approximately 70% were females and 30% were males. The age groups variedfrom below-20 to more-than-40 years. The majority of the respondents were between 26 and 30 years of age.When surveyed about the factors influencing them during their purchase of hair care products, approximately41% respondents reported that their friends were the most influential factor in their decision. The rest (22%)were influenced by their family, by social media (15%) and very few by celebrities.Although hair care products were available everywhere, store location was found to be a factor of influence duringpurchase. Approximately 27% respondents were interested in buying hair care products from cosmetic stores, while

23% preferred retail stores in proximity. Few respondents were found willing to buy them from chemist shops.

HYPOTHESIS TESTING:

Below are the parameters obtained from the hypotheses formulated in the previous section:

Importance of brand name in buying decision for hair care products. Importance of personal experience in buying decision for hair care products. Importance of packaging in buying decision for hair care products. Importance of newness/launch of product in buying decision for hair care products. Importance of quality in buying decision for hair care products. Importance of texture in buying decision for hair care products. Importance of previous usage experience in buying decision for hair care products. Importance of product claims of being natural/herbal in buying decision for hair care products. Importance of expert claims in buying decision for hair care products. Importance of product characteristics in buying decision for hair care products. Importance of price in buying decision for hair care products. Importance of sales promotion in buying decision for hair care products. Importance of personal selling in buying decision for hair care products. Importance of advertisements in buying decision for hair care products. Importance of ambience in buying decision for hair care products. Importance of product safety in buying decision for hair care products. Importance of product trustworthiness in buying decision for hair care products. Importance of brand loyalty in buying decision for hair care products.

We have tested the following hypothesis for each of these parameters:

H0: Mean is greater than 4 (somewhat important)H1: Mean is not greater than 4 (somewhat important)


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TABLE 1: PARAMETERS INFLUENCING CONSUMER BUYING DECISION

One-Sample Statistics

Parameters N Mean Std. Deviation Std. Error of Mean

Brand Name 190 3.79 1.110 .081

Personal Experience 190 4.35 1.047 .076

Packaging 190 2.93 1.206 .088

Newness of product 190 2.85 1.195 .087

Quality 190 4.43 1.030 .075

Product texture (color, smell,etc.) 190 3.71 1.063 .077

Previous usage experience 190 4.24 .988 .072

Natural/Herbal claim 190 3.94 1.042 .076

Experts' claims 190 3.68 1.184 .086

Product characteristics 190 2.65 1.189 .086

Price 190 3.62 1.133 .082

Sales promotion 190 3.45 1.134 .082

personal selling 190 2.45 1.266 .092

Advertisement 190 2.99 1.217 .088Store ambience 190 3.01 1.226 .089

Product safety 190 4.41 .987 .072

Product trustworthiness 190 4.29 1.012 .073

Brand loyalty 190 3.94 1.271 .092

TABLE 2: RESULTS OF T-TESTS

One-Sample Test

Parameters

Test Value = 0

T dfSig. (2-tailed)

MeanDifference

95% Confidence

Interval of the

DifferenceLower Upper

Brand Name 47.110 189 .000 3.79 3.64 3.95

Personal Experience 57.249 189 .000 4.35 4.20 4.50

Packaging 33.442 189 .000 2.93 2.75 3.10

Newness of product 32.743 189 .000 2.85 2.68 3.02

Quality 59.291 189 .000 4.43 4.28 4.58

Product texture (color, smell,etc.) 48.054 189 .000 3.71 3.55 3.86

Previous usage experience 59.134 189 .000 4.24 4.10 4.38

Natural/Herbal claim 52.074 189 .000 3.94 3.79 4.09

Experts' claims 42.883 189 .000 3.68 3.51 3.85

Product characteristics 30.759 189 .000 2.65 2.48 2.82Price 44.045 189 .000 3.62 3.46 3.78

Sales promotion 41.910 189 .000 3.45 3.29 3.61

personal selling 26.697 189 .000 2.45 2.27 2.63

Advertisement 33.856 189 .000 2.99 2.82 3.16

Store ambience 33.854 189 .000 3.01 2.84 3.19

Product safety 61.619 189 .000 4.41 4.27 4.55

Product trustworthiness 58.507 189 .000 4.29 4.15 4.44

Brand loyalty 42.701 189 .000 3.94 3.75 4.12

As observed from the result of the t-tests, the value of probability in the sig. 2-tailed columns (.000) is less than

the value of .05 which was the level of significance. Thus, the alternative hypothesis for all the parameters canbe accepted. It can be concluded that the variability in each of the parameters is statistically significant. Indian

customers would be influenced to buy hair care products by all the above parameters, especially the parameters


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that had higher value of mean such as personal experience, quality, usage experience, product trustworthinessand product safety.

TABLE 3: T-TEST ANALYSIS

Parameters

Sig. (2-

tailed)

Result

(Sig


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4. Noel, H. 2009. Consumer Behaviour. AVA Publishing SA. Lausanne.APPENDIX 1

Survey Questionnaire:

1. Gendera. Maleb. Female

2. Agea. Below 20 yearsb. 20-25 yearsc. 25-30 yearsd. 30-35 yearse. 35-40 yearsf. More than 40 years

3. Marital Statusa. Marriedb. Unmarried

4. Occupationa. Studentb. Self-employedc. Salaried

5. Educationa. College graduateb. Post graduate

6. Monthly Incomea. Less than Rs. 5000b. Rs. 5000-10,000c. Rs. 10,000-15,000d. Rs. 15,000-20,000e. Above Rs.20,000

7. I normally use the following hair products (Multiple answers are possible)a. Shampoob. Conditionerc. Hair Sprayd. Hair oile. Hair gel

8. How long have you used the same brand of hair care products?a. Under 1 yearb. 1-3 yearsc. 3-6 yearsd. More than 6 years

9. How much are you willing to spend for a hair care product?a. Less than Rs.100b. Rs. 100-500c. Rs. 500-1000d. Rs. 1000-1500e. Above Rs.1500

10. I am interested to buy hair care products advertised on:a. TVb. Radioc. Newspaper/Magazined. Posters/Banners

11.My buying decision is influenced by:a. Family


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b. Celebritiesc. Friendsd. Communitiese. Social media

12. I usually buy hair care products from:a. Convenience storeb. Cosmetic storec. Chemistd. Supermarkete. Neighborhood retail store

13.How often do you read reviews of hair care products before purchase?a. Very oftenb. Oftenc. Sometimesd. Rarelye. Never

14.The reason for changing my brands, if any:a. Trying out a new brandb. Cannot buy the same brandc. Price discounts of other offersd. Lower pricee. Not satisfied with the same brand

15.Please rate the importance of the following parameters while buying hair care products:

Parameters UnimportantSomewhatunimportant Neutral

Somewhatimportant

Veryimportant

Brand Name 1 2 3 4 5

Personal Experience 1 2 3 4 5

Packaging 1 2 3 4 5Newness of product 1 2 3 4 5

Quality 1 2 3 4 5

Product texture (color,smell,etc.) 1 2 3 4 5

Previous usage experience 1 2 3 4 5

Natural/Herbal claim 1 2 3 4 5

Experts' claims 1 2 3 4 5

Product characteristics 1 2 3 4 5

Price 1 2 3 4 5

Sales promotion 1 2 3 4 5personal selling 1 2 3 4 5

Advertisement 1 2 3 4 5

Store ambience 1 2 3 4 5

Product safety 1 2 3 4 5

Product trustworthiness 1 2 3 4 5

Brand loyalty 1 2 3 4 5

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