NATIONAL INSTITUTE OF FASHION TECHNOLOGY

DEPARTMENT OF FASHION MANAGEMENT STUDIES

ASSIGNMENT

ON

CONSUMER BEHAVIOUR

SUBMITTED BY,

ABHIMANYU CHAUHAN

DEETI CHAVDA

MFM II
 ABSTRACT
This paper is an attempt to find the various factors which affects customer buying behavior in
apparel category market in India esp. In regard to tommy Hilfiger and its instoreand brand
communication. The impact of various buying factors like sales and promotions, placement
of products, window merchandising, effective price strategy etc on customer buying behavior
have been analyzed. Kotler‟s black box model has been used as the basis of the current study
to understand the consumer buying behavior in Apparel Industry. The study is based on the
primary data collected from various regions with the help of structured questionnaire.

Keywords: consumer buying behavior, apparel retail, visual merchandising

1 . INDUSTRY STRUCTURE

1.1 Overview
The textile and apparel industry is one of the leading segments of the Indian economy and the
largest source of foreign exchange earnings for India. This industry accounts for 4 percent of
the gross domestic product (GDP), 20 percent of industrial output, and slightly more than 30
percent of export earnings (According to the data published by the Central Statistical
Organization of Government of India). The textile and apparel industry employs about 38
million people, making it the largest source of industrial employment in India. India, with a
population of 1.1 billion people, has a huge middle class people base. India‟s middle class is
projected to expand considerably in the coming future. Based on purchasing power parity,
India is the fourth-largest economy in the world. As the Apparel industry will increase at a
CAGR of 14.86% during the two-year period from 2008 to 2011. There is thus a huge
opportunity present for the industry players in apparel industry. So it becomes imperative to
the marketers to study various factors that affect consumer-buying behavior in the
apparel industry.

1.2 Competitive Position of India’s Textile and Apparel Industry

India has the second-largest yarn-spinning capacity in the world (after China), accounting for
roughly 20 percent of the world‟s spindle capacity. India‟s spinning segment is fairly
modernized. India has the largest number of looms in place to weave fabrics, accounting for
64 percent of the worlds installed looms. However, 98 percent of the looms are accounted for
by India‟s power loom and A Study on Factors Affecting Consumer Buying Behavior in
handloom sectors. India has a large fiber base, and ranks as the world‟s thirdleading
producer of cotton, accounting for 15 percent of the world‟s cotton crop. India produces a
wide variety of cotton, providing operational flexibility for domestic textile producers. In the
manmade fiber sector, India is the world‟s fifth-largest producer of polyester fibers and
filament yarns and the third-largest producer of cellulose fibers and filament yarns. India is
the world‟s second largest textile producer (after China), and is diversified and capable of
producing a wide variety of textiles. The spinning segment is fairly modernized and
competitive, accounting for about 20 percent of world cotton yarn exports. India‟s textile and
apparel industry benefits from a large pool of skilled workers and competent technical and
managerial personnel. India‟s labor is inexpensive; hourly labor costs in the textile and
apparel industry average less than 5 percent of those in the U.S. textile and apparel industry.

1.3 Growth Opportunities

India, with a population of 1.1 billion people, has a huge domestic market. India‟s middle
class is projected to expand considerably in the coming future. Based on purchasing power
parity, India is the fourth-largest economy in the world, has the third-largest GDP in the
continent of Asia, and is the second largest economy among emerging nations. India is also
one of the fastest growing economies of the world. India‟s huge domestic market offers the
prospect of significant growth opportunities in domestic textiles and apparel consumption,
which is expected to result in increased trade and foreign investment, especially in certain
product sectors. India supplies 8 percent of the global demand for denim fabric. Per-capita
denim consumption in India is about one-fifth of the global average. Domestic demand is
expected to increase with the accelerated growth in the Indian economy and increased
consumer spending on clothing.
2 . LITERATURE REVIEW
The need to understand consumer-buying behavior was identified in the marketing literature
over fifty years ago (Clover 1950). Ever since, many researchers from different areas of
research, such as economics, marketing, and psychology, have shown interest in studying this
interesting and complex behavior in a traditional commerce context. These researchers have
made significant contributions to our understanding of consumer behavior. A review
of this body of knowledge indicates that research on consumer behavior in a traditional
setting can be categorized in three general trends: definition, explanation, and extension. At
first, researchers were primarily interested in defining the phenomenon. Second, various
models were proposed to explain the consumer buying phenomenon. Finally, the focus has
been to extend consumer buying behavior research by identifying the various factors that
increase or decrease consumer buying. Belch and Belch defined consumer behavior as “the
process and activities people engage in when searching for, selecting, purchasing, using,
evaluating, and disposing of products and services so as to satisfy their needs and desires”.
Belch and Belch (2007) explained that the consumers undertake both internal (memory) and
an external search.

According to the Merriam-Webster online dictionary, a consumer buying behavior is very

much influenced by the stimulus to purchase. A stimulus is “something that rouses or incites
to activity” or “an agent (as an environmental change) that directly influences the activity of a
living organism or one of its parts” (Merriam-Webster Online). Thus, the stimulus can be
considered as the catalyst, which makes the consumer be impulsive. The 16 stimuli can be a
piece of clothing, jewelry, or candy. Store atmospherics, which can be considered as an
important factor in predicting consumer-buying behavior, allows the marketer to position
products in an enticing way to increase sales (Dholakia 2000). Finally, the consumer
experiences emotional and/or cognitive reactions, which can include guilt or disregard for
future consequences. Weinberg and Gottwald (1982) have combined various characteristics
into three important determinants of the consumer buying process, which include the reactive
component, the affective component, and cognitive component. One of the characteristics of
the consumer buying process is the exposure to the stimulus. Therefore, buying is a reactive
behavior, in that the consumer shows certain responses when exposed to the stimulus in the
purchase situation. Another important characteristic is the immediate nature of the behavior.
When exposed to the stimulus, the consumer feels an irresistible urge to buy the product of
interest (Rook 1987). At this point, emotional forces drive him or her, such that the impulsive
behavior is considered as being highly affective. Finally, because this behavior is reactive and
highly affective, the consumer has very low intellectual control over the buying decision. The
consumer does not act consciously, but rather reacts to the presence of the stimulus, such that
cognitive processes are kept to a minimum. Dittmer and colleagues (1995) proposed a
model of consumer buying behavior to address the limitation of the previous model. Drawing
from the social constructionist perspective and the psychology of material possessions. The
main assumption of this model is that consumers no A Study on Factors Affecting Consumer
Buying Behavior in ... Shukre et al. 105 longer buy products only for their functional
benefits, but also for their symbolic meanings. Products are consumed for their symbolic
meaning in that theygivean indication of the social standing, wealth, and social status of an
individual. Puri (1996) proposed a two-factor cost-benefit accessibility framework, which
addresses the limitations of previous models. The model draws from research on
impulsiveness, self-control, and time-inconsistent preferences and builds on a hedonic
framework, according to which an individual feels an irresistible urge to buy a product when
he or she is exposed to it. According to the concept of time inconsistent preferences, when the
consumer is exposed to the stimulus, the benefits of immediate gratification outweigh any
future considerations, such as monetary issues. The basic premise of this model is that
impulsivity depends on the degree to which the situation emphasizes the negative costs of
impulsiveness, the benefits of acquiring the product or both, and the propensity of an
individual to be impulsive. In situations in which the benefits outweigh the costs, the
temptation to succumb to the felt urge is high and is the compelling force of impulsiveness.
In contrast, when the costs of impulsiveness are more salient than the benefits, the individual
resists the urge, which decreases the likelihood of any impulsive behavior. Building on the
findings in the previous study, Koufaris (2002) proposed a theoretical model of consumer
behavior, which draws from research in information systems, marketing, and psychology.
The dependent variables studied were unplanned purchases and intention to return. The
independent variables were product involvement, value-added search mechanisms, and
challenges. The author also studied the effect of different mediating variables, namely
perceived control, shopping enjoyment, and concentration. He tested the relationship between
perceived usefulness or perceived ease of use and the intention to return but the author did
not find support for all the hypotheses. Product involvement was found to have
an effect on both shopping enjoyment and concentration. Both perceived web skills and
challenges were found to influence shopping enjoyment and concentration, but both did not
affect perceived control. Value-added search mechanism used was found to only influence
shopping enjoyment. Adelaar and colleagues (2003) used the environmental psychology
approach to study the effects of three different media formats of web pages on consumer
buying intentions for music CDs. Three distinct media formats were studied, namely the
text of the song lyrics, still images from the song‟s music video, and the music video itself,
while simultaneously playing the soundtrack. The emotional responses studied included
pleasure, arousal and dominance. The authors use an experiment to test this model and three
distinct web pages were created based on the dependent variables. The authors found support
for few of their hypotheses. Media format was found to have an influence on consumer
buying intentions. More specifically, the media format that generated the highest buying
intention was the lyrics of the song text in combination with playing the song. The display of
a video was not found to generate positive feeling. A subject‟s emotional responses were
found to have a significant effect on his or her buying intention. These responses were also
found to have a mediating effecton the relationship between media format and the
consumer‟s buying intentions.This study has serious implications for marketers, since the
most simple mediaformat led to more buying, which means that textual format should be
usedinstead of the more sophisticated options. The EKB model was further developedby Rice
(1993) which suggested there should be a feedback loop, Foxall (2005) further suggests the
importance of the post purchase evaluation and that the postpurchase evaluation is key due to
its influences on the future purchase patters.From their tests of consumer commerce,
researchers from the usabilityconsultancy UIE have discovered that the buying process acts
as a sieve, wherecustomers are inadvertently filtered out at each stage of their decision-
makingprocess. UIE's studies show that out of 100% of purchase-ready customerscompletely
intent on buying; only 34% will actually make the purchase.

Studies show that buying process acts as a sieve, where customers are inadvertently filter out
at each stage of their decision-making process. At the information search stage, 9% weren't
able to find the products they were looking for because they couldn't identify the right
product category or find product options. 8% of the shoppers who succeeded in finding
products gave up because the product lists didn't provide enough information to identify
purchase options, or because they were confused by going back and forth between
product lists and product description pages in order to decide if the products would fit their
needs. UIE's researchers found that the major problems occur when customers want to
evaluate alternatives.

Only 25% of the shoppers whoreached this stage proceeded to the next. Some stopped
because they realizednone of the products would fit their needs, but most because the
productinformation was so inadequate that they couldn't tell if the products they were
interested in satisfied their needs. At the purchase stage, 13% dropped outA Study on Factors
Affecting Consumer Buying Behavior in ... Shukre et al. 107because they didn't want to go
through the required registration process orbecause they where disappointed by poor shipping
charge policies. UIE alsofound a surprisingly high amount of problems in the purchase
evaluation stage.11% percent of the shoppers were so unhappy with a product that they
returnedit. Some of the shoppers told UIE that they returned a product because it wasn't what
they expected, which suggest a failure in setting up the right expectationsin the product
evaluation stage. So the marketer should also understand theconsumer buying decision
process to clearly mapping the consumer buyingbehavior.

3. RESEARCH METHODOLOGY

3.1 Objective of The Research

To find out various factors affecting consumer buying behavior in apparelcategory In regard
to tommy Hilfiger and its instore and brand communication and retail stores.

3.2 Limitations
The geographical area for the study is not only limited to one region. Thequestionnaire is not
fully calibrated. There may be partial responses of therespondents. There is a possibility in
sampling errors as convenience sampling isused. There are many factors, which affect
consumer‟s buying behavior inapparel segment, but we are only analyzing marketer‟s driven
factors.

3.3 Theoretical Model Used For The Study

For the current study the Kotler‟s Black Box Model of consumer buying behavior has been
used, as it was the basic model, which was given, by him and other model are the
modifications of the inferences of his model. Moreover it also takes into consideration the
marketer driven factors, which are the focus of my study. Apart from that it also takes into
consideration the various stimuli like marketing mix, demographic factors etc, internal
influences & their responses accordingly on the consumer buying behavior as shown in the
figure: -
3.4 Research Design
In this project cross-sectional descriptive research is used. . The primary datawas collected
with the help of a structured questionnaire from the residents of various Regions of, India.
The sampling technique used isConvenience sampling. The Sampling unit consisted of
customers (100 innumber) or potential customers who have visited Tommy Hilfiger retail
outlets.
3.5 ANALYSIS

Have you visited the Tommy Hilfiger store ?

Yes 75 83%

No 13 14%
Does the outer appearance of the store encourage you to shop in that
store?

Strongly agree 2 2%

Agree 55 61%

No affect 18 20%

Disagree 0 0%

Strongly disagree 0 0%
How would you rate the outer appearance of a Tommy Hilfiger store based on a
scale of 1 to 5?

(1- Being least and 5- Most favorable)

1 0 0%

2 4 4%

3 29 32%

4 47 52%

5 8 9%
Does Eye catching Window Display of a store influence your decision to shop in a
store?

Strongly agree 7 8%

Agree 51 57%

No affect 16 18%

Disagree 3 3%

Strongly disagree 0 0%
Rate Tommy Hilfiger’s window display on a scale of 1 to 5?

(1- Being least and 5- Most favorable)

1 0 0%

2 9 10%

3 35 39%

4 35 39%

5 9 10%
Does store's In - store environment has an influence on your decision to shop there?

Strongly agree 7 8%

Agree 46 51%

No affect 15 17%

Disagree 0 0%

Strongly disagree 0 0%
Rate, If the Tommy Hilfiger store is spacious enough to move around on scale
of 1 to 5.

(1- Being least and 5- Most favorable)

1 1 1%

2 3 3%

3 25 28%

4 41 46%

5 18 20%
Rate the cleanliness of a Tommy Hilfiger store on scale of 1 to 5.

(1- Being least and 5- Most favorable)

1 2 2%

2 6 7%

3 6 7%

4 26 29%

5 48 53%
Does lighting in the store attract you to shop in the store?

Strongly agree 5 6%

Agree 36 40%

No affect 27 30%

Disagree 5 6%

Strongly disagree 0 0%
Do you like to shop in a store, which has attractive display of clothes?

Strongly agree 9 10%

Agree 37 41%

No affect 14 16%

Disagree 2 2%

Strongly disagree 0 0%
Rate the music in a tommy Hilfiger store on scale of 1 to 5.

(1- Being least and 5- Most favorable)

1 3 3%

2 7 8%

3 46 51%

4 23 26%

5 9 10%
Does promotional or sale sign in a store motivate you to shop in the store?

Strongly agree 7 8%

Agree 40 44%

No affect 14 16%

Disagree 2 2%

Strongly Disagree 1 1%
 GENDER

Male 51 57%

Female 36 40%

INCOME

Below 25000 18 20%

Between 25000 to 50000 14 16%

Above 50000 50 56%

 CONCLUSION

The store ambience and music pays an important role in the favorable image and
performance of a retail store. It helps satisfying the customers and to create a warm
welcoming feeling which will certainly enhance a customer‟s mood and improve the chances
of turning a single sale into a longterm relationship. It is incredible to make a sale but it is so
much more profitable to keep the customer satisfied thus making developing customer
loyalty. Store ambience also assists in enhancing the brand value of the various products. It
helps to increase consumer footfalls and provokes them for repeated purchases. It is possible
to attract the customers using the right mix of elements of store ambience. It is very simple- a
poor product. A good ambience is also required to facilitate the browsing process for
products, which need to be touched & felt before being chosen like clothes. Store ambience
acts as a promotion tool used to communicate the store‟s image. An attractive store ambience
is just like „an icing with cherries on the cake‟. A striking store ambience draws the attention
of the customer & enables him to take purchase decision within shortest possible time, and
thus enhancing the selling process. The shoppers which comprise mostly of the youth desire a
comfortable store, so that they can stay for longer on each visit. Shoppers would tend to buy
at a leisurely pace in such stores. In many cases, these stores are also utilized for spending
waiting or spare time or meeting up with friends. The store ambience is responsible to create
a difference between a forgetful transaction and a memorable retail experience. Tommy
Hilfiger as a brand and retailer is mindful of these facts and is serious about delivering this
experience to the customer and from the research we can see it is successful in doing just that.