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An Assignment

On

“Practical Application With Reference to Marketing Management”

“Factors influencing customer behaviour at Parul Campus Canteen”

Faculty Guide: Submitted By:

Prof. Priyanka tailor Dimpal Parmar Roll No : 35

Enrolment No-117920592046

Milind Joshi Roll No : 36

Enrolment No117920592047

Group No. 18 Section: F

M.B.A – I, SEMESTER - II

Dr. J. K. Patel Institute of Management – Vadodara

Parul Group of Institutes

Affiliated to

Gujarat Technological University

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Consumer Behaviour

All of us are consumers. We consume things of daily use, we also consume and buy these products according to our needs, preferences and buying power. These can be consumable goods, durable goods, speciality goods or, industrial goods. What we buy, how we buy, where and when we buy, in how much quantity we buy depends on our perception, self concept, social and cultural background and our age and family cycle, our attitudes, beliefs values, motivation, personality, social class and many other factors that are both internal and external to us. While buying, we also consider whether to buy or not to buy and, from which source or seller to buy. In some societies there is a lot of affluence and, these societies can afford to buy in greater quantities and at shorter intervals. In poor societies, the consumer can barely meet his barest needs.

The marketers therefore tries to understand the needs of different consumers and having understood his different behaviours which require an in-depth study of their internal and external environment, they formulate their plans for marketing. Management is the youngest of sciences and oldest of arts and consumer behaviour in management is a very young discipline. Various scholars and academicians concentrated on it at a much later stage. It was during the 1950s, that marketing concept developed, and thus the need to study the behaviour of consumers was recognised. Marketing starts with the needs of the customer and ends with his satisfaction.

When everything revolves round the customer, then the study of consumer behaviour becomes a necessity. It starts with the buying of goods. Goods can be bought individually, or in groups. Goods can be bought under stress (to satisfy an immediate need), for comfort and luxury in small quantities or in bulk. For all this, exchange is required. This exchange is usually between the seller and the buyer. It can also be between consumers. Consumer behaviour can be defined as the decision-making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services. This definition clearly brings out that it is not just the buying of goods/services that receives attention in consumer behaviour but, the process starts much before the goods have been acquired or bought. A process of buying starts in the minds of the consumer, which leads to the finding of alternatives between products that can be acquired with their relative advantages and disadvantages. This leads to internal and external research. Then follows a process of decision-making for purchase and using the goods, and then the post purchase behaviour which is also very important, because it gives a clue to the marketers whether his product has been a success or not.

To understand the likes and dislikes of the consumer, extensive consumer research studies are being conducted. These researches try to find out:

What the consumer thinks of the company’s products and those of its competitors?

How can the product be improved in their opinion?

How the customers use the product?

What is the customers attitude towards the product and its advertising?

What is the role of the customer in his family?

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The following key questions should be answered for consumer research. A market comes into existence because it fulfils the needs of the consumer. In this connection, a marketer has to know the 70’s framework for consumer research. Taking from an example of soap.

Who constitutes the market? Parent, Child, Male, Female OccupantsWhat does the market buy? Soap, Regular, Medicated, Objects

with Glycerine, Herbal what Brand, what size

Who participates in buying? Parent, Child, Male, Female OrganisationsHow does the market buy? Cash, Credit, Mail-order etc. OperationsWhen does the market buy? Monthly, Weekly etc. Occasions

Prescribed by Doctor (Medicinal)

Consumer behaviour is the study of when, why, how, and where people do or do not buy a product.

It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behavior is difficult to predict, even for experts in the field. [1] Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer

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Black box model

ENVIRONMENTAL FACTORS BUYER'S BLACK BOX

BUYER'S RESPONSE

Marketing Stimuli

Environmental Stimuli

Buyer Characteristics

Decision Process

ProductPricePlacePromotion

EconomicTechnologicalPoliticalCulturalDemographicNatural

AttitudesMotivationPerceptionsPersonalityLifestyleKnowledge

Problem recognitionInformation searchAlternative evaluationPurchase decisionPost-purchase behaviour

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli(between people) or intrapersonal stimuli (within people).[3] The black box model is related to the black box theory of behaviourism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response.

The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer

Types of buying behaviour

There are four typical types of buying behaviour based on the type of products that intends to be purchased.

1. Complex buying behaviour is where the individual purchases a high value brand and seeks a lot of information before the purchase is made.

2. Habitual buying behaviour is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt.

3. Variety seeking buying behaviour is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings!

4. Dissonance reducing buying behaviour is when buyers are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is

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little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers.

Culture has an impact on the company and the way products are developed. Marketers should take into account Maslow’s hierarchy of needs when putting together their product idea

Consumer behaviour is an attempt to understand & predict human actions in the buying role. It has assumed growing importance under market-oriented or customer oriented marketing planning & management. Consumer behaviour is defined as “all psychological, social & physical behaviour of potential customers as they become aware of, evaluate, purchase, consume, & tell others about product & services”.

Each element in this definition is important.

Consumer behaviour involves both individual (psychological) processes & group

(social processes).

Consumer behavior is reflected from awareness right through post-purchase

evaluation indicating satisfaction or non-satisfaction, from purchases

Consumer behaviour includes communication, purchasing & consumption

behaviour

Consumer behaviour is basically social in nature. Hence social environment plays

an important role in shaping buyer behaviour.

Consumer behaviour includes both consumer & business buyer behaviour

Introduction of Parul College

Parul, established as registered Trust in 1990 by Dr. Jayeshbhai K. Patel, a man of great vision and acumen has gone much ahead in achieving its goals. The Trust strives to ensure the rights to “education, health and employment” to the most underprivileged strata of society.

The Trust is registered as a charitable Trust with committed persons as the Trustees. The members of the Trust have a firsthand experience in the pains and banes of society in terms of health, education and economy. They have strived individually and met with success in alleviating the pains of society. After having worked independently, they finally decided to come together on one platform. Their foresight assured these visionaries that such concerted efforts will make them more competent to understand the social problems and to relieve society from its ills. Hence all of them joined and started the Trust as a charitable organization running several programmes such as educational institutes and charitable hospitals. Providing education and employment to the downtrodden and the needy people was the noble aim which kindled the spirits of trustees.

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The insight that ‘knowledge is the most solid means of empowerment’ motivates the Trust in all its endeavors. As to the major educational activities by the promoting body, there are many. The Trust has three Homoeopathic Medical Colleges, one Engineering College, two Polytechnics and one Institute of Hotel Management & Catering Technology in various districts of Gujarat. Along with the above, the Trust also has two Pharmacy Colleges, MCA and MBA programmes and an Institute of Post Graduate Diploma in Management.

Analysis and Findings

After doing surveys on Parul campus canteen I found some analysis and findings about consumer behaviour. This is survey of 50 students/staff of parul college. Following questions were asked to the respondents and their answer are as follow :

Q-1 Do you eat from your college canteen ?

Ans. College canteen

Yes NoRespondents 24 16

60%

40%

CanteenYes NO

Observations :

We can see in about chart that 60 % people use the college canteen and 40 % people don’t use canteen.

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Q-2 What would make you use the canteen ?

Ans.

RespondentsValue for your money 14Ambience of canteen 18Better service 13Variety of food 15

23%

30%22%

25%

Canteen

Value for your moneyAmbience of canteenBetter serviceVariety of food

Observations :

We can see in above chart that people come in to canteen because of ambience of canteen. 25 % people come for value for their money, 30 % people come because of ambience of the canteen is well, 22 % people come for better service and 25 % persons come because of variety of food.

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Q-3 The canteen food is healthy.

Ans.

RespondentsAgree 14Disagree 36

28%

72%

canteen

AgreeDisagree

Observations :

In above chart, 72 % people agrees that the canteen food is not healthy and only 28 % persons agrees that the canteen food is healthy. Its depend on quality of the food.

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Q-4 Why don’t you use the canteen services ?

Ans.

RespondentsIt’s too expensive 25Service is very bad 10Food is unhealthy 12Other reason 3

52%

21%

25%

2%

canteen

It's too expensiveservice is very badfood is unhealthyother reason

Observations :

As per the above chart, people don’t want to use canteen because the food is too expensive, 52 % persons don’t use canteen because of that and 21% people don’t use because the service is very bad, 25 % persons don’t use because of the food is unhealthy and 2 % people have their own reasons.

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Q-5 How often do you use the canteen ?

Ans.

RespondentsDaily 17Once in a two days 13Once in a week 9Once in a month 11

34%

26%

18%

22%

canteen

Daily Once in a two daysOnce in a weekOnce in a month

Observations :

As per the survey of canteen of parul campus, 34 % people use canteen in daily basis, 26% persons use canteen once in a two days, 18 % people use canteen in a once in a week and 22 % use once in a month.

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Q-6 Please place in order of preference what is important in the running of a canteen ?

Ans.

RespondentsGood hygiene standards 27Value for money 12Good service 13Ambience 8

45%

20%

22%

13%

Canteen

Good hygiene standardsValue for moneyGood serviceAmbience

Observations :

People want good hygiene standards in the canteen foods. 45 % people want good hygiene standards in canteen food. 20 % people want value for money, 22 % persons want good service in canteen, and 13 % persons want ambience in canteen.

Q-7 How would you rate the food overall for nutrition ?

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Ans.

RespondentsHealthy 12Not healthy 23Don’t know 10Don’t care 5

24%

46%

20%

10%

canteen

HealthyNot healthyDon’t knowDon’t care

Observations :

From about chart, we can say the people thinks that 46% respondents says the canteen food is not healthy, 24% says its healthy, 20% and 10% says don’t know and don’t care about the canteen food.

Q-8 How do you rate the value of the meals for the price ?

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Ans.

RespondentsExcellent No oneGood 7Fair 28Poor 15

Q-9 Would you like to have wi-fi connection at the canteen ?

Ans.

90%

10%

canteen

YesNo

Q-10 What should be there in canteen ?

RespondentsYes 45No 5

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RespondentsReadymade snacks 12Fast food 11Lunch 23Other 4

24%

22%

46%

8%

canteen

readymade snacksfast foodlunchother

Conclusion

According to the response of students & staff, it is very clear that canteen is requirement of both and it should be outside the college building. All of them need refreshment drinks. Because survey done in summer so that demand of cold drink is more. According to survey in canteen they need combination i.e. all of them need variety. Fast food and lunch is preferred by many of them but with good quality.

1 Survey showed that 60% of the respondents used the canteen and rest 40% do not use the canteen.

2 Survey showed that 63% of the respondents would like to have Chinese cuisine and rest 37% would like to have the Indian cuisine.

3 Survey showed that 24% of the respondents found the canteen food is healthy and rest 67% do not found the same.

4 Survey showed that 30% feels that home cooked food is better than canteen food.5 Survey showed that 23% respondents think that food is not value for money, 22% think

that the services is not good and remaining 25% think that food provided is not healthy.6 Survey showed that the availability of food in the canteen was pretty even split, where

49% of the users felt the was not readily available and the 51% thought the food was readily available

7 Survey showed that during rush hour students usually go to near by market.8 Survey also show that students prefer going out market in long hour break because of hot

served food and taste and quality of food is better than canteen food.

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9 Survey showed that 79% of respondent feel canteen do not over charge for food items.

Some suggestions for improvement of canteen :

More people to serve food. Staff in canteen should wear gloves and hair nets Food description – on what they contain : red amber and green lights More water machine in the canteen area More seating area Display menus, prices clearer, canteen temperature to be cooler, ventilation More social space required Healthier food, better portions

After this survey, we can know that something should be done to improve the condition of our college canteen, we have found some problems. The canteen does exsit some shortcomings. Some measures should be taken to improve our canteen’s quality. I hope you will adopt this proposal and I strongly hope that the next days will promise a brighter prospect for the canteen.

Questionnaires

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NAME :- _______________________________________________________________

COURSE/STAFF :- ________________________________________________________

1. Do you eat from your college canteen ?

YES NO

2. If YES What would make you use the canteen ?

Value for your money Ambience of the canteen

Better service Variety of food

3. The canteen food is healthy.

Agree Disagree

4. Canteen food is better than home cooked food.

Agree Disagree

5. Why don’t you use the canteen services ?

It’s too expensive Service is very bad

Food is unhealthy

Other (Please explain) ____________________________

6. How often do you use the canteen ?

Daily Once in two days

Once a week Once in a month

7. Please place in order of preference what is important in the running of a canteen ?

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Good hygiene standards Value for money

Good quality service Ambience

8. Do they over charge for the food items ?

Yes No

9. Is the food you want is always available ?

Yes No

10. How would you rate the food overall for nutrition ?

Healthy Not healthy

Don’t know Don’t care

11. How do you rate the value of the meals for the price ?

Excellent Good Fair Poor

12. Would you like to have wi-fi connection at the canteen ?

Yes No

13. What should be there in canteen ?

Readymade snacks Fast food

Lunch Other ______________________

14. According to you Where the canteen should be located ?

Inside the college building Outside the college

15. Specify any items that you would like to have in the canteen menu.

a.

b.

c.