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Consumer Behavior
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ACKNOWLEDGEMENT
TABLE OF CONTENTS
S. No Content
1. Objective
2. Introduction
8. Conclusion
9. Questionnaires
OBJECTIVE
The objective of this project is to study the implication of typical buying behaviour
of two different classes of people especially Young married category and Empty nest
I category in three different types of purchases which are as follows.
1. Regular grocery purchase
2. Last weekend entertainment decision
3. Last major purchase.
The study has been designed to analyse differences/similarities, individual/
autonomous/ joint decision making of various aspects of behavioural decision making
of consumers. It also implicates the opportunities for a marketer based on the
response given by individual class and categories of the purchases.
INTRODUCTION
Buying Behaviour is the decision processes and acts of people involved in buying
and using products. Buying behaviour is more often referred as consumer behaviour
in marketing which is defined as the behaviour that's consumer display in searching
for purchasing, using, evaluating and disposing of product and services that they think
will satisfy their needs. It is important to know how individuals make decisions to
spend their available resources like time, money etc .
In this aspect we have to know that individuals we are focusing on what they buy,
why they buy, from where they buy, how often they buy, how often they use it, what
are their spending limits etc.
If not satisfied with your choice then returns to the search phase. Can you
think of another restaurant? Look in the yellow pages etc. Information from
different sources may be treated differently. Marketers try to influence by
"framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package,
store, method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product
availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive
Dissonance, have you made the right decision. This can be reduced by
warranties, after sales communication etc.
After eating an Indian meal, may think that really you wanted a Chinese meal
instead
PART 1
House hold life cycle is a traditional array of events through which an individual
moves into a variety of relatively distinct and well defined categories over time.
There are a variety of routes in most of the categories and the movement of categories
into another frequently occurs. Each category in the house hold life cycle poses a set
of problems that house hold decision makers must solve. The solution to these
problems ultimately to the maintenance of lifestyle and thus to consumption.
Single I
Young Married
Full Nest I
Single parent I
Middle Aged
Single II
Full Nest II
Single Parent II
Empty Nest I
Older(>64)
Empty Nest II
Single III
The decision to marry, or to live together, brings about a new stage in the house hold
life cycle. The lifestyles of married couples are greatly altered as they develop a
shared lifestyle. Joint decisions and shared roles in house hold responsibilities are
major attributes in this class of House hold life cycle. Savings, house hold furnishing,
major appliances, and more comprehensive insurance coverage are among the new
areas of decision making. Most house hold in this stage has dual income and is thus
relatively affluent.
A study conducted in this project analyses the various aspects related to decision
making of couples in the young married category and their implications on the
marketer. In this paper I also follow the approach of classifying families into different
categories according to a combination of variables that I consider to be
Indicators of a particular stage of life; however, I also allow for life-cycle effects on
the covariance structure of all the observable variables, and in particular on the way
that income and family size affect expenditures. The study is organised to deal with
three different types of buying by the people in this particular class especially
a) Regular grocery purchase
b) Last major purchase.
c) Last weekend entertainment decision.( Any two)
The study asks the families to share their responses through a Questionnaire which
has been designed to relate the important parameters in the buying behaviour of
various segments of needs.
Results
The following sub paragraphs highlights the results of responses of the study carried
out in this class of House hold life cycle.
1. Age - Respondent surveyed was in the age range of 25-30.Age plays an
important role in decision making. Proper age positioning is essential for any
products. Age carries with it culturally behavioural and attitudinal norms. Age
has a lot influence in the consumption of products.
2. Income – House hold income of the respondent studied was between 3 - 4.5
lakhs. The house hold was dual income with an estimated SDI of more than
one lakh.
4. Source – Source of general grocery purchase of the respondent was the nearby
super market. Source selection may be an important parameter for a marketer
to select the distribution channel for a particular product. Daily grocery
products require intensive distribution so that it can be easily available in
market. For very small and urgent purchases the respondent opted the nearby
kirana store to fulfil needs like milk, bread, egg, etc.Other perishable and non
perishable products were bought by the respondent on weekly bases and the
purchase was need based and planned. Last major purchase source of the
respondent was dependent on various factors like nearby showroom of the
brand, freebees given by the retailer to the respondent, services and modes of
payment. Source of the entertainment decision was newspaper and word of
mouth.
10. Determinants – Determinants like Price, quality, services etc do not have
much impact on regular grocery purchase but they play an important role in
major buying decisions. Respondents in this category rated price as their
major determinant followed by quality and then services.
Responses of purchases
Observation Regular grocery Last weekend Entertainment
purchase purchase decision
Product General items like Television Movie and
commodities, Dinning out.
daily house hold
items etc
Frequency Weekly Need based Bimonthly
Source Super market Nearest Dealer Nearby hall
Decision maker Joint Male Joint
Determinants Price conscious Price conscious Price conscious
External effects Not much Much Much
PART II
EMPTY NEST I CATEGORY
The empty nest one category basically consists of people who are married long ago,
having children who are not living with their parents. This category also includes
people with second marriage in which children from first marriage are not living
together. Both adults will typically have jobs ,so they are very busy.However,the
absences of children and their responsibilities creates more time for
intertainment.They also have money to spend on dinning out, expensive vacations,
second house,luxuary cars and time saving services.Theyare prime markets for
financial services.
Similar study as done above has been done here to study the various aspects of
buying behaviour in this class of house hold life cycle. Respondents were asked to
indicate their responses through a questionnaire based model approach attached at the
end of the project. Results of their responses and the analyses of the implications of
important factors have been highlighted below.
2. Income – House hold income of the respondent studied was between 4.5 lakhs
and above. The house hold was single income with an estimated SDI of more
than two lakh.
4. Source – Source of general grocery purchase of the respondent was the nearby
super market. For major purchases the respondents experienced options were
they get easy after sales services and the nearness of the market from their
house.
class they belong. They percolate values and ethics of the cultures they
belong. They are highly confident of their decisions taken and want to buy the
best available brand .
10. Determinants – Determinants like Price, quality, services etc do not have
much impact on regular grocery purchase but they play an important role in
major buying decisions. Respondents in this category rated price as their
major determinant followed by quality and then services
Responses of purchases
Item purchased Household kitchen items, basic Household kitchen items, basic
utilitarian like toilet soap, utilitarian like soap, washing
washing powder,shampoo,etc powder,shampoo,toothpaste etc
Frequency Weekly Monthly
Need Basic need plus few items Basic need plus few items influenced by
influenced by promotion offer on impulsive movement due to special
Price This category is more price This category is less price sensitive
Sensitiveness sensitive towards items either it’s for all items.
a grocery items or a heavy
purchase, more often they are
willing to respond to change or
differences in price.
Brand Loyalty Young married are not a brand Empty nest I consumer are a complete
loyal consumer, they are brand brand loyal, they do not switches their
switchers, more often they switch brand occasionally, they are in the
their brand towards price and phase where taste of a specific brand
amount or any special deal. This is developed fully.
is the time when their taste for a
specific brand is under
development.
Group impact Have slight group impact Do not have group impact
The purchase and consumption of many products are driven by the HLC.The reason
for this is that each stage poses unique problem or opportunity to house hold members
and the resolution requires the consumption of products and services.Marketting
manager must analyse the house hold decision process separately for each product
category within each target market. House hold member participation in the decision
process varies by involvement with the specific product, role specialization, personal
characteristics and one’s culture and sub culture. Participation also varies with stage
in the decision process. Most decisions are reached by consensus.
Purchase of each of products and brands is caused by a different motive, each require
a distinct marketing and advertising program. Concentrating on segments like Young
married couples the marketer should study the pattern and behaviour of this class. The
category consists of young respondents who are generally price sensitive and their
purchase is need based. Consumer of this class does not buy products; instead, they
buy motive satisfaction or problem solution. Managers must discover the motives that
their products and brands can satisfy and develop marketing mixes around these
motives. People make such purchases for a variety of motives, including rewarding
themselves for an accomplishment. A marketer should identify the feeling related for
CONCLUSION
The house hold is the basic purchasing and consuming unit and is therefore a great
importance to marketing managers. Family house holds also are the primary
mechanism where by culture and social class values and behaviour patterns are
passed on to the next generation. The house hold life cycle is a useful way to develop
the marketing strategy. One axis is the stage in the HLC, which determines the
problem the house hold will likely to encounter, the other is a set of social strata
,which provides a range of acceptable solutions. Each cell represents a market
segment.
Family decision making involves consideration of questions such as who buys, who
decides, and who uses. It is complex and involves emotions and interpersonal
relationship as well as product evaluation and acquisition.
Marketing managers must analyse the house hold decision process separately for each
product category within each target market. House hold member participation in the
decision process varies by involvement with the specific product, role specialization
personal characteristics, and ones culture and sub culture. Participation also varies by
stage in decision process.
Q3. Mark your annual family income from the options given?
a) Less than 2 Lakhs.
b) Between 2 -3 Lakhs
c) Between 3- 4.5 Lakhs.
d) Above 4.5 Lakhs
a) A necessity
b) Impulse purchase
c) Both the above
Q10. While buying regular grocery products are u brand specific or not?
a) Yes
b) No
c) Can be either of the two.
Q11. What is the normal pattern of buying grocery that you generally follow?
a) Necessity first and then other purchases
b) Other purchases first and then necessity
c) Can be anything
Q12. Rate factors according to your preferences? (Indicate 1 as first preference and
follow the sequence)?
a) Quality of the product. ( )
b) Cost of the item. ( )
c) Brand Name ( )
d) Place of buying ( )
e) Responses of others ( )
When you fill in this questionnaire please use a pen and mark (√) on the best
response.
Q1. Indicate the category you belong to?
a) Young Married (Married in a span of one year)
b) Married with no children.
c) Single
d) None of these
Q3. Mark your annual family income from the options given?
a) Less than 2 Lakhs.
b) Between 2 -3 Lakhs
c) Between 3- 4.5 Lakhs.
d) Above 4.5 Lakhs
Q4. What major purchase you have made in the last six months?
Indicate……………………………………………………
Q7. Why did you select that brand? Mark the best alternative?
a) Good Quality
b) Flamboyant Looks
c) Price
d) Aesthetics
e) After sales service
f) Payment options
g) Special discounts
Q8. Was it your first purchase of the product or you was buying for the second time?
Q3. Mark your annual family income from the options given?
a) Less than 2 Lakhs.
b) Between 2 -3 Lakhs
c) Between 3- 4.5 Lakhs.
d) Above 4.5 Lakhs
Q6. Did you look for any other option before deciding to go for the one you
preferred?
a) Yes
b) No
Q7. How frequently you go for a decision like the one you took above?
a) Twice a year.
b) Once a year.
c) Frequently.
d) Once in a month.
e) Once in a week.
f) Fortnightly.
Q8. Who all in you family are involved in taking such decisions?
a) Husband only.
b) Wife only.
c) Both wife and husband.
d) Influenced by family members.
e) Others.
Q9. Before making an entertainment decision what is the first factor that comes to
your mind?
a) Price.
b) Quality of entertainment.
c) Time Constraint
d) Others.