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PROJECT REPORT
ON

Consumer segmentation

Submitted to
Ms.G.swapna
LECTURER

Submitted by
rajesh meka
(099321)
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TABLE OF CONTENTS

Sr. No Particulars PageNo

1 Introduction 3
2 Objective 3
3 Methodology 4
4 Sample Size 4
5 Data Collection 5
6 Data Analysis 8
7 Data Interpretation 8
8 Implications for The marketer 10
9 Advantages 12
10 Limitations 12
11 Suggestions 12
12 Field Findings 12
13 Conclusion 13
14 Bibliography 14
15 Questionnaire 15-20
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1.INTRODUCTION

Buying Behavior is the decision processes and acts of people involved in buying and using
products. Buying behavior is more often referred as consumer behavior in marketing which is
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defined as the behavior 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.

2.OBJECTIVE

The objective of this project is to study the implication of typical buying behaviour of full nest I
(married, child less than 6 yrs of age or with no children) 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 analyze differences/similarities, individual/ autonomous/ joint
decision making of various aspects of behavioral 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.

3.METHODOLOGY

There are different methodologies in a research study. These are the following steps we will
follow-
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1)Target population:
The target population for the study of “Consumers segmentation, of full nest I (married, child
less than 6 yrs of age) from different economical & demographical background.

2) Geographical coverage:

a) Warangal
b) Hanamkonda
c) Kazipeta

3) Sampling:

• Sample plan:

The selection of the samples is done following the two sampling techniques, which are:
- Simple random sampling

• 4.Sample size: -
Information is collected from a sample size of 100 customers (From warangal) respondents
which included couples

4) Demographics of Sample

• Gender
In the total sample size of 100 we will consider 62 coupes .

5) Age
Age(, educational background and annual income

6) Contact method:

a) Structured questionnaire separate for each respondent.

b) Personal interviews

5.DATA COLLECTION

STAGES OF CONSUMER BUYING PROCESS

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Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase. All
consumer decisions do not always include all 6 stages, determined by the degree of complexity.

The 6 stages are:

1. Problem Recognition (awareness of need)—it is the difference between the desired state
and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger
stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know you were
deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that
you need a new pair of shoes.
2. Information search--
o Internal search, memory.
o External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc.
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer
wants or does not want. Rank/weight alternatives or resume search. May decide that you
want to eat something spicy, Indian gets highest rank 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.

FULL NEST I CATEGORY

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The household one category basically consists of people who are married, having children or
with no children(less than six years)... Both adults will typically have jobs, so they are very busy
They also have money to spend on dinning out, expensive vacations, second house, luxuary cars
and time saving services. They are 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.

1. Age - Respondent surveyed was in the age range of 30-35 and above.

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.

3. Frequency of purchase – In case of grocery purchase the frequency of the respondent was
weekly. Here the dependence of purchase lies on the consumption pattern only. It was
observed that empty nest have plenty of spare time which they allocate in buying their
products. They spend their time in purchasing major items and entertainment.

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.

5. Decision maker – Respondents joint decision making in the category of grocery purchase
was observed .Last major purchase decision was taken by the husband in the family.
Entertainment decision was a joint decision taken by the couple.

6. Need based or impulsive purchase – Grocery purchase decision of the respondent was
need based though the entertainment decision was an impulsive one. Last major purchase
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decision of the respondent was an impulsive decision based on the facilities of lifestyle
improvement.

7. Brand considerations – Regular grocery purchase decision of the respondent was found to
be in the category of brand loyal. .They considered to buy regular commodities like rice,
floor, sugar, etc in loose packages from the supermarket. Major purchase items bought by
the respondent was based on various determinants like brand , its after sales service, its
reputation in the market, word of mouth, variety etc.

8. Effects of external sources like advertisement/word of mouth etc. – Here the respondents
are sensitive towards external sources like word of mouth , advertisements, etc.They are
social and want to remain as members of the class they belong.They are highly confident
of their decisions taken and want to buy the best available brand .

9. Pattern of buying – Pattern depends upon the type of purchase of the respondent.

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

6.DATA ANALYSIS
Responses of purchases
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Observation Regular grocery Last weekend Last major

purchase purchase purchase
Entertainment
decision
Product General items like Air Conditioner Travelling and
commodities, daily religious prayers.
house hold items
etc
Frequency Weekly Improving living Monthly
standard.
Source Super market Nearest Dealer -
Decision maker Joint Male Joint
Determinants After sales service After sales service After sales service
conscious conscious conscious
External effects Much Much Much

7.DATA INTERPRETATION:
Regular grocery purchase

Number Percentage
Always 33 53.22
Sometime 23 37.09
Never 6 9.67
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Last weekend purchase Entertainment decision

Number Percentage
Always 39 62.9
Sometime 15 24.19
Never 8 12.9
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Always = joint decision(both wife and husband)

Sometimes = less frequent joint decision
Never = no involvement of wife in decision making

8.IMPLICATIONS FOR THE MARKETER

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.
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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 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
a particular product and to be run advertising campaigns according to the feeling associated with
the product.
Each customer will have a certain price acceptability window and different customers have
different limits in their perceptions of what price is within their range. For the marketing
professional the trick is to figure out how customers determine what "price" means. Price
Sensitivity Measurement method may be used. This method asks survey respondents to define a
possible range of prices noted in a scale called a price ladder. In order for the survey to be valid
and not become a self fulfilling prophecy, the prices represented must be positioned on the upper
or lower ends of the scale and not in the middle. Survey respondents are asking to pick two
different price points on the price scale: The point where the product is beginning to appear
"expensive" or a poor value for the money, and the point where they perceive the product to be a
"good buy".
Implications for the marketer in the category of full nest I lie on their behaviour, a well settled
lifestyle and a good financial base to support. They have free time which they enjoy in dinning
out, in vacations spend on new houses, luxury cars, time saving services etc.They are prime
markets for financial services. The marketer must realize various channels of promotion to these
individuals and the values which can be added to ensure complete satisfaction.
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9.ADVANTAGES:

 Helps marketer to categorize market segment.

 Helps marketer in understanding taste and preferences
 Indentify the company’s position.

10.LIMITATIONS OF THE STUDY

 The research is confined to the sample of 100 respondents, which certainly does not
represent the whole population of Warangal
 Respondents might be biased at times.
 Time limitations were there.

11.SUGGESTIONS:
 Companies should aggressively advertise coupled with effective sales promotions for improving
customer recall and brand image.
 Marketting manager must analyse the house hold decision process separately for each
product category within each target market
 A marketer should identify the feeling related for a particular product and to be run
advertising campaigns according to the feeling associated with the product.
 Concentrating on segments like married couples the marketer should study the pattern
and behaviour of this class

12.FIELD FINDINGS:
 Most of the people aren’t interested in filling the questionnaire.

 Especially housewives showed little interest because they misunderstood us as

salesperson
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 couples usually don’t prefer giving their contact no.

13.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.
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14. References:
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15.QUESTIONAIR FOR LAST WEEKAND GROCERY

PURCHASE
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.

Q2. Please mark your age slot to which you belong?

a) Average couple age less than 25.
b) Average couple age between 25 to 30.
c) Average couple age between 30 to 35.
d) Average couple age 35 and above.

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. Please indicate the frequency of your grocery purchases?

a) Daily.
b) Weekly
c) Biweekly
d) Once in fortnight
e) Monthly

Q5. Where do you generally purchase grocery products?

a) Supermarkets
b) Wholesalers
c) Nearby kirana stores
d) Internet purchase
e) Others

Q6. Your latest grocery purchase if any?

a) Food products
b) Health products
c) Lifestyle products
d) Cosmetics
e) Others
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Q7. Was the product a necessity or it was an impulse purchase?

a) A necessity
b) Impulse purchase
c) Both the above

Q8. Who all participates in grocery buying decision in your family?

a) Husband only
b) Wife only
c) Both husband and wife
d) Others

Q9. Do you consider asking others responses in decision making?

a) Yes
b) No

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 ( )

Q13. What is your preferred mode of payment?

a) Credit
b) Cash
c) Both
d) Other
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QUESTIONAIR FOR LAST MAJOR PURCHASE

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

Q2. Please mark your age slot to which you belong?

a) Average couple age less than 25.
b) Average couple age between 25 to 30.
c) Average couple age between 30 to 35.
d) Average couple age 35 and above.

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……………………………………………………

Q5. Was the purchase really required?

a) Yes it was.
b) No, it was not badly needed.
c) I had planned it earlier.
d) No it was a spontaneous purchase.
e) Just for a change.

Q6. Did you go for a particular brand?

a) Yes
b) No

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
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Q8. Was it your first purchase of the product or you was buying for the second time?
a) Yes it was my first purchase
b) No I had that product earlier.

Q9. Were you unhappy with your last brand?

a) Yes
b) No

Q10. Where did you come to know about the product?

a) Media advertisements.
b) Magazines
c) Friends and relatives.
d) Internet
e) Sales persons
f) Others

Q11. Before purchasing did you surveyed the retailers/shops?

a) Yes
b) No (Please do not mark the next question)

Q12. What were you prime factors in the survey?

a) Price
b) Serviceability
c) Discounts
d) Mode of payment
e) Variety in product.
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QUESTIONAIR FOR LAST WEEKAND ENTERTAINMENT

DECISION

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.

Q2. Please mark your age slot to which you belong?

a) Average couple age less than 25.
b) Average couple age between 25 to 30.
c) Average couple age between 30 to 35.
d) Average couple age 35 and above.

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. Your entertainment decision?

a) A movie in a hall.
b) Shopping and outdoor purchase.
c) A visit to Historical place.
d) Outstation visit.
e) Visit to a restaurant.
f) Others.

Q5. Was your decision planned?

a) Yes
b) No
c) Spontaneous.

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.
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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.