consumer buying behaviour-1
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1.
INTRODUCTION
Research Methodology
Research methodology is the master plan for conducting the research
study. It should be noted that a research methodology is unique to
research design. As the project undertaken by me primarily operations
of Reliance Fresh Store emphasizes on the store. Descriptive research
involves the description of the characteristics of the variable,
description of the extent of association between variables and it allows
the researcher to inter about the variables. Like in this case, the
variables were analyzing and it allows the researcher to inter about the
variables. The variables were analyzing foot-fall, catchment area and
the average ticket size of the customers. Another reason was that I
worked on the data provided by the store i.e. it was secondary data
(total foot-fall, total sales, total no. of customers etc) for a month and I
knew which parameters to work upon. Also I interviewed the customer
and observed their behaviour towards store.
I gathered data of one month from the Reliance store i.e. from 1 st
September to 31st September as the sample size. It included total
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foot-fall, total customer, total sales, Average sales per customers No. of
items sold and conversion ratio. For the questionnaire filling I took a
sample of 15 people from the nearby locations. I also interviewed those
who visited the store regarding store ambiance, assortments of products
and service provided.
The type of sampling procedure which I have chosen is convenience
sampling is a generic term that covers wide variety of As-hoe
procedures for selecting respondents.
Since sampling units were accessible, convenient, easy to measure,
co-operative and articulate, I used convenience sampling. I interviewed
the customers and analyzed the given data through my own
convenience and expertise.
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2.
CONCLUSION
It can be concluded that behaviour pattern of the customer is influence
by the product and service quality price and brand, consumer buying
pattern is influenced by the store layout, ambiance, behaviour of sales
personnel, and after sales service of Reliance Fresh. Most of the
customers are ready to buy some product from another retail outlet, if
they are not finding good quality of products there in Reliance Fresh.
Means customer want up gradation of the product at Reliance Fresh. So
that Reliance Fresh can face a tuff competition with the other retail
outlet.
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3.
CONSUMER BUYING BEHAVIOUR
Understanding consumer buying behaviour begins by understanding
the general steps consumers go through before, during and after the
purchase. By understanding each step, marketers can conduct
marketing efforts to encourage customers to gravitate towards a
purchase, and once a purchase has been made, find a satisfaction with
their choices.
Stages of the Consumer Buying Pattern:
Problem Recognition (awareness of need),
Information search, Evaluation of Alternatives, Purchase decision,
Purchase, Post-Purchase Evaluation.
CONSUMER
Buying behaviour will be a primary force in determining how this
transition will evolve. Getting closer to the customer in todays highly
competitive landscapes essential for the entire industry and is no longer
just a retail issue.
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It requires all organizations across the supply chain to work as a single
enterprise, sensing and responding rapidly to consumer demand in a
co-ordinate manner. Detailed analysis of the changing pattern of
consumer demand, shopping trends etc,
TYPES OF BUYING BEHAVIOUR
Complex buying behaviour is where the individual purchases a high
value brand and seeks a lot of information before the purchase is made.
Habitual buying behaviour is where the individual buys a product out
of habit.
Variety seeking buying behaviour is where the individual likes to shop
around and experiment with different products.
Dissonance reducing buying behaviour is when buyer is highly
involved with the purchase of the product, because the purchase is
expensive or infrequent
PROBLEM STATEMENT
Make a comprehensive study of Reliance fresh & know the buying
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pattern of FMCG product at Reliance Fresh. Consumer buying pattern
of FMCG product will be a primary force in determining how this
transition will evolve. Getting closer to the consumer in todays highly
competitive landscape is essential for the entire industry and is no
longer just a retail issue. It requires all organizations across the supply
chain to work as a single enterprise, sensing and responding rapidly to
consumer demand in a co-ordinate manner. Detailed study of the
changing patterns of consumer demand, satisfaction and shopping
trends can be analyzed through a FMCG retail players & can
strategized for reliance FMCG.
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4.
RESEARCH OBJECTIVES
Research is one of the most vital parts of the survey and is related to
collection of information and knowledge. Marketing research is
defined as the systematic design, collection, and analysis reporting of
data and findings relevant to a specific marketing situation facing the
company.
My objection behind this study as a whole was to understand the exact
operations of the Reliance Fresh Stores.
My main research objectives were as follows:
1.
Building knowledge base on customer, competitors and
marketing for Reliance store and transferring that knowledge
between strategic business unit and among key managers.
2.
Conducting primary market research for reliance fresh to ensure
that projects meet there objectives are cost effective and avoid
duplication of other work.
3.
To measure the no. of customers visiting Reliance fresh and their
conversion ration.
4.
To calculate the average amount of purchasing day of the
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customers.
5.
To understand the consumer response and their preferences.
6.
To anticipate prospective consumers for the store.
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5.
RESEARCH METHODOLOGY
It is the specification of the methods and procedures used for acquiring
the information needed. In short, it is the master plan for conducting the
research study. It should be noted that a research methodology is
unique to a research design
It includes:
Re-Type
Sample size
Sampling procedures
Data collection techniques
Time of collection
Limitation of research
Methodology:
The methodology of research study was descriptive research.
Descriptive research includes surveys and fact finding investigation.
The major purpose of descriptive research is, description of state of
affairs as it exists at present
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Type of Research
Descriptive type research has used to complete the project. This
research is based on fact finding enquires and the variables are totally
independent and uncontrollable.
Data collection:
Primary Data
Primary data of research are collected from direct resources (customer
of Reliance fresh) through questionnaire.
Secondary Data
Secondary Data which are used for research to know the history scope
of Retail industry are collected from already available resources like
net and other sources.
Sampling Technique
Simple Random sampling is used
A sample size of 70 respondents has been taken
Data Collection: Primary data for research are collected from direct
resources i.e. customer of Reliance fresh who visit retail outlet through
questionnaire.
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Sample size
70 respondents has selected as sample size for research
Data representation technique and tools
Columns chart & Pie chart has used for representation.
Time of collection
Tine of collection of my research study was 1 month of analysis the
catchment area, Footfall and average Ticket size of the customers. In
one month time I was able to understand the trend of the store and also
how various store related activities like dumping, indenting,
markdown, assortments of the product were done.
Limitation of the study:
The study was limited to few Reliance Fresh outlets which is located
Mumbai There can be response bias from the respondents, which limits
the validity of findings.
Authenticity of the response of the customer cannot be
ascertained.
Most of the consumer prefer to go for local market
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There was limited consumer base
Advertising strategy is not good
Lack of expertise
Finally the time constraint.
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6.
HYPOTHESIS OF RESEARCH
A research hypothesis is a specific, clear, and testable proposition or
predictive statement about the possible outcome of a scientific research
study based on a particular property of a population, such as presumed
differences between groups on a particular variable or relationships
between variables. Specifying the research hypotheses is one of the
most important steps in planning a scientific quantitative research
study. A quantitative researcher usually states and a priori expectation
about the results of the study in one or more research hypotheses before
conducting the study, because the design of the research study and the
planned research design often is determined by the stated hypotheses.
Thus, one of the advantages of stating a research hypothesis is that it
requires the researcher to fully think through what the research question
implies, what measurements and variables are involved, and what
statistical methods should be used to analyze the data.
Testing of Hypothesis:
Sales
Weekdays Average = 62,708.23
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Weekends Average = 95,086.73
H0 (Average sales of weekdays = Average sales of weekend)
H1 (Average sales of weekdays Average sales of weekends)
H0: There is a significance difference between expectation and
satisfaction level of sales
H1: There is no significance difference between expectation and
satisfaction level of sales
At 5% level of significance H0 is accepted
Customers
Weekdays Average = 380.10
Weekends Average = 482.8
H0 (Average sales of weekdays = Average sales of weekend)
H1 (Average sales of weekdays Average sales of weekends)
H0: There is a significance difference between expectation and
satisfaction level of customers.
H1: There is no significance difference between expectation and
satisfaction level of customers.
At 5% level of significance H0 is accepted
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7.
ANALYSIS
UNDERSTANDING THE BUYING BEHAVIOUR OF
RELIANCE FRESH CONSUMERS
DEFINITION
Purchase decision making pattern that is a complex amalgam of needs
and desires, and is influenced by factors such as the consumer's
(1) Societal role (parent, spouse, worker, etc.),
(2) Social and cultural environment and norms, and
(3) Aspirations and inhibitions.
Buying Behaviour is in the Advertising, Marketing, & Sales and
Purchasing & Procurement subjects.
Buying Behaviourappears in the definitions of the following terms:
marketing research, advertisement (ad), ACORN, economic
environment, activities, interests, opinions (AIO) and consumer
research.
Buying Behaviourappears in these other term: consumer buying
behaviour.
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8. INTERPRETATION
(1). Gender of the consumer
'Arithmetic Mean'
A mathematical representation of the typical value of a series of
numbers, computed as the sum of all the numbers in the series divided
by the count of all numbers in the series.
Arithmetic mean is commonly referred to as "average" or simply as
"mean".The most commonly used type ofaverage.To find the arithmetic mean
of aset of nnumbers, add the numbers in the set and divide the sum
by n.
Arithmetic Mean = X/n
WhereX = Individual value
n = Total number of values
Male Female
15 27
Male
Female
http://www.mathwords.com/a/average.htmhttp://www.mathwords.com/s/set.htmhttp://www.mathwords.com/s/set.htmhttp://www.mathwords.com/a/average.htm -
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Question X/n Mean
Male 15/70 0.22
Female 27/70 0.39
Analysis -
Data collected for project from 30 responded in which 27 are female
and 15 are male of total respondent.
Interpretation -
Intotal respondent we analyses that most of the customer in this store is
female and their demand always consider at the time of taking the
decision. Company should try to attract new male customer by provide
new scheme on their customer.
(2). Age of customer
10-20 21-50
51 &
above
15 23 12
0
50
100
150
200
250
10-20 21-50 51 & above
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Age of customer X/n mean
10-20 15/70 0.22
21-50 23/70 0.3351&above 12/70 0.18
Analysis -
Data collected for project from 30 responded in which 15 the ages
between 10 - 2O are 23 are between age of 21 - 5O which are and 12 are
between age of 51 & above of total respondent.
Interpretation -
In total respondent we analyses that most of the customer are youth. In
my observation l found that most new people believe in convenience
shopping it help the company to keep management such type which
understand the problem of customer easily and rectify the problem
effectively
(3). How offer do you shop
Daily ( ) Week ( ) Fortnightly ( ) Once in month ( )
Daily Week Fortnightly
Once
in
month
8 26 9 12
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How offer do you shop X/n Mean
Daily 8/70 0.12
Week 26/70 0.38
Fortnightly 9/70 0.13
Once in month 12/70 0.18
Analysis -
Data collected for project from 30 responded in which 8 are like to
purchase daily and 26 are like to purchase weekly and 9 are likely to
purchase fortnightly, 12 likely to purchase once in a month of total
respondent
Interpretation -
In total respondent we analyses that most of the customer are likely to
purchase on weekend .in my observation I found that more scheme
should be provided on weekend.
(4). what do you mostly shop for at mentioned store?
Vegetables ( ) Grocery ( ) cosmetic product ( ) all product ( )
0
50
100
150
200
250
Daily Week Fortnightly Once in
month
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Vegetable GroceryCosmetic
product
All
Product
15 16 9 20
Mostly shopping
done
X/n Mean
Vegetable 15/70 0.22
Grocery 16/70 0.23Cosmetic product 9/70 0.13
All Product 20/70 0.29
Analysis -Data collected for project from 30 responded in which 20
customer are like to purchase all product and 15 are like to purchase
vegetables and 16 are likely to purchase grocery, 9 likely to purchase
cosmetic product of total respondent.
Interpretation -In total respondent we analyses that most of the
customer are like to purchase all product in the store. Company should
try to retain the customer and should increase the variety of cosmetic
product& grocery
(5). Preference of shopping
Quality ( ) Brand ( ) Price ( ) one stop shop
Quality Brand Price
One
stop
shop
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Preference of
shopping
X/n Mean
Quality 12/70 0.18
Brand 20/70 0.29
Price 9/70 0.13
One stop shop 13/70 0.19
Analysis -Data collected for project from 30 responded in which 20
customer are believe in reliance brand and l3 are like to purchase in one
stop shop and 12 are like to purchase quality product, only 9 respondent
consider price.
Interpretation -In total respondent we analyses that most of the
customer are believe in reliance brand like to purchase qualitative
product in stop shop Here I observed that people want to purchase fresh
and original product and want better service.
(6). which store do you kept in preference for purchasing
Quality
Brand
Price
One stop shop
12 20 9 13
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Reliance Fresh ( ) Big apple ( ) other ( ) Local market
Localmarket
Reliancefresh
Bigapple
Other
24 18 17 10
preference for
purchasing
X/n Mean
Local market 24/70 0.35Reliance fresh 18/70 0.26
Big apple 17/70 0.25
Other 10/70 0.15
Analysis -Data collected for project from 30 responded in which 24
customer are like to purchase from local market and 18 are like to
purchase from reliance fresh and 17 are likely to purchase from Big
apple, 10 likely to purchase other of total respondent.
Interpretation --In my observation l found till today organised retail
0
50
100
150
200
250
300
Local market Releince
fresh
Big apple Other
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sector didn't penetrate the market. Company should try to open new
convenience store and provide more scheme and good service to
customer to penetrate the market Initial it may be costlier, but it will
give long term benefit.
(7). Do advertisement and promotion influence your shopping
decision?
Yes ( ) No ( )
Yes No32 17
Influence in shopping
decision
X/n Mean
Yes 32/70 0.46
17 17/70 0.25
Analysis -Data collectedfor project from 30 responded in which 32customer are like promotion scheme and 17 are those people which say
promotion scheme doesn't effect on purchasing
0
100
200
300
400
500
Yes No
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Interpretation-In my observation I found promotion scheme is must
to sustain customer attract customer & influence the purchasing.
(8). Are Promotion scheme easy to understand
Yes ( ) No ( ) some time ( )
Yes NoSome
time
15 12 11
Promotion scheme X/n Mean
Yes 15/70 0.22
No 12/70 0.18
Sometime 11/70 0.16
Analysis -Data collected for project from 30 responded in which 15
customer say - yes and 12 are those which say -no and 11 say
some-time.
Yes
No
Some time
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Interpretation-Company should try making promotion scheme easy
understandable, promotion scheme should be in both in English &
Hindi.
(9). How likely are you to recommend Reliance Fresh to a friend or
relative? Would you say the chances are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
Excellent Good Fair Poor12 22 19 8
Recommend Reliance
Fresh
X/n Mean
Excellent 12/70 0.18Good 22/70 0.32
Fair 19/70 0.28
0
50
100
150
200
250
Excellent Good Fair Poor
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poor 8/70 0.12
Analysis -Data collected for project from 30 responded in which 12 customer say
excellent and 22 say good, 19 say fair and 8 customers are those say poor.
Interpretation -In my observation I found that only 466% customer are fully satisfied
from the store company should try satisfy the customer by providing better service and
rectify their problem immediately.
(10). which form of advertisement do you think is most effective?
Print ( ) TV ( ) Radio ( ) telephone ( )
Print TV Radio Telephone
15 20 10 25
Advertisement effect X/n Mean
Print 15/70 0.22
TV 20/70 0.29
Radio 10/70 0.15
Telephone 25/70 0.36
0
20
40
60
80
100120
140
160
180
200
Print TV Radio Telephone
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Analysis -Data collected for project from 30 responded in which 20 customer say TV
and 15 say print, 10 say Radio and 25 customers are say telephone.
Interpretation -According responded result company can choose telephone as best for
advertisement and call industrial for attracting the customer.
(11) Did you get help from CSA when asked?
Yes ( ) No ( ) sometime ( ) Never ( )
Yes NoSome
timeNever
19 15 18 10
Help from customersupport assistance
X/n mean
Yes 19/70 0.28
No 15/70 0.22
Sometime 18/70 0.26
Never 10/70 0.15
Analysis -Data collected for project from 30 responded in which 19 customer say yesand 15 say no which 18 say are some time and 10customer are say never.
Interpretation -According respondent customers are not fully satisfied should recruit
new skilled employee for better performance.
0
50
100
150
200
250
Yes No Some time Never
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9. FINDING
1. Majority of customers here is female
2. Majority of customers are young
3. Majority customers like to purchase all goods from Reliance fresh.
4. Customers like one stops shopping.
5. Local market till today is the first choice of customer
6.
Advertisement is the biggest way to attracting the customer.
7. Promotion scheme not so easy to understand for customer.
8. Most of customer is not fully satisfied with store.
9. Tele phone is the best way for attracting the customer
10.Shortages of skilled workers
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10.LIMITATIONS
The project has some limitations because it is totally based on efforts of individuals.
Peoples may be careless and may not give correct answer to the questions, because of so
many reasons.
It is totally based on personal efforts of individuals.
Some of the consumers are unable to understand the questionnaire.
Language is one of the worst problem, some of the consumers are unable to
understand English.
Some consumers are not interested in filling questionnaire.
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11.
SUGGESTION
1.
More promotion scheme should be used to penetrate the market
2.
Skilled employees should be higher because mostly customers are young
3.
Promotion scheme should in such way that customer can understand easily.
4. Service of store should be providing in such way which full the need of the
customer.
CONCLUSION
With the growing retail concept Reliance Fresh is really a fresh air in the arena of
vegetable and fruit market. But due to some political and local problems all Reliance
stores are not allowed to keep vegetables and fruits according to their goal.
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12.APPENDIX
RELIANCE FRESH
QUESTIONNAIRE
NAME-
GENDER-
AGE -
1- How offer do you shop
Daily ( ) week ( ) fortnightly ( ) once in month ( )
2- What do you mostly shop for at mentioned store?
Vegetables ( ) Grocery ( ) cosmetic product ( )
3- Which store do you shop?
Reliance Fresh ( ) Big apple ( ) other ( ) Local market
4- Preference of shopping
Quality ( ) Brand { ) Price ( ) one stop shop
5- Do advertisement and promotion influence your shopping decision?
Yes () No ( )
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6- Are Promotion scheme easy to understand
Yes ( ) NO ( ) sometime ( )
7- How 'likely are you to recommend Reliance Fresh to a friend or relative?
Would you say the chances are?
Excellent ( ) Good ( ) Fair ( ) Poor ( )
8- Are the Price of Reliance fresh is lower than the other competitor
Yes ( ) No ( ) Equal ( ) no idea ( )
9- Which form of advertisement do you think is most effective?
Print ( ) TV ( ) Radio ( )
10- Did you get help from CSA when asked?
Yes ( ) No ( ) some time ( ) Never ( )
11- Do you think branded products are better than unbranded products?
Yes ( ) No ( ) some time ( ) Never ( )
12. Will you like to switch your brand preference if you get some promotional scheme
with another brand?
Yes ( ) No ( ) some time ( ) Never ( )
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13.Influence of Advertisement on Purchase Decision
Agree Disagree
Strongly Agree Strongly disagree
14- Influence of Peer group on Purchase Decision
Agree Disagree
Strongly Agree Strongly disagree
15- Influence of Family members on Purchase Decision
Agree Disagree
Strongly Agree Strongly disagree
16- Influence of Product features on Purchase Decision
Agree Disagree
Strongly Agree Strongly disagree
17- Influence of Price on Purchase Decision
Agree Disagree
Strongly Agree Strongly disagree
18- Influence of Quality on Purchase Decision
Agree Disagree
Strongly Agree Strongly disagree
19- Influence of Brand name on purchasing decision
Agree Disagree
Strongly Agree Strongly disagree
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20- What was the reason for the delay between the purchase decision and the actual
purchase?
1. Financial constraints
2. Waiting for more innovative product
3. Waiting for market response
21- What influenced you to buy the above stated brand(s) ?
1.
Advertising 2. Shop Display
3.Word of mouth 4. Family/Friend/Relatives
5. Attractive packaging 6. Any Other
7. Dealer
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BIBLOGRAPHY
Referred Books-
R. Panneer selvam, Research Methodology, Published by: Ashok K Ghosh, PHI
learning private ltd. Haryana, on April 2012.
C.R. Kothari, Research MethodologyMethods & Techniques (second revised
edition) Published by: New age international (p) limited, New Delhi on 2004.
Referred Site
http://en.wikipedia.org/wiki/Reliance_Industries on 25th Aug 2014
http://books.google.co.in/books/about/Phenomenological_Research_Methods on
20th Aug 2014.
http://www.ril.com/html/business/business_retail.html on 24th Aug 2014.
http://en.wikipedia.org/wiki/Reliance_Industries%20on%2025th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://www.ril.com/html/business/business_retail.htmlhttp://www.ril.com/html/business/business_retail.htmlhttp://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://en.wikipedia.org/wiki/Reliance_Industries%20on%2025th%20Aug%202013
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