Chapter – 1Introduction

-

Introduction to Consumer Behaviour:

The field of consumer behaviour is enormous and the importance of the customer

behaviour is very important for every organization. Each consumer is unique with

different needs, wants, taste and buying choices with various habits, choice that are in

turn tempered by psychological and social drivers that affect purchase decision

processes. It is a complex multi-dimensional variable.

It is a widely accepted principle of business that to be more profitable and survive an

organisation must understand the consumer’s perception regarding products and

services consumers are seeking to purchase. The understanding of the theory of

consumer behaviour and its application to business and marketing is a vital element of

a business education. The understanding of factors influencing consumer behaviour

which can be used in the development of more effective marketing strategies in the

future.

The study that focuses on how, when, what and why people buy. It is a study that

blends elements from sociology, psychology, anthropology, marketing and

economics. It helps to understand the consumer‘s decision making process, both

individually and in groups based on social and economic division. It gives the

knowledge about the characteristics of individual consumers such as demographics,

psychographics, and behavioural variables in an attempt to understand people's wants.

Consumer behaviour will also influences by the groups such as family, friends, peer,

reference groups, and society Importance of studying consumer behaviour is the most

challenging concept in marketing deals with understanding why consumers do what

they do (or don‘t do). The reason for studying consumer behaviour is to understand

the consumers ‘mind-set and the factors that influence on it.

Meaning of Consumer Behaviour:

Consumer behaviour is the study of how individual customers, groups, select, buy,

use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to

the actions of the consumers in the marketplace and the underlying motives for those

actions. It is critical to understand the consumer behaviour to know how potential

customers will respond to a new product or service. It also helps companies identify

opportunities that are not currently met.

Definition:

According to Engel, Blackwell, and Mansard,

‘Consumer behaviour is the actions and decision processes of people who purchase

goods and services for personal consumption’.

According to Louden and Bitta,

‘Consumer behaviour is the decision process and physical activity, which individuals

engage in when evaluating, acquiring, using or disposing of goods and services’.

Nature of Consumer Behaviour:

Influenced by various factors:

The various factors that influence the consumer behaviour are as follows:

a) Marketing factors such as product design, price, promotion, packaging,

positioning and distribution.

b) Personal factors such as age, gender, education and income level.

c) Psychological factors such as buying motives, perception of the product and

attitudes towards the product.

d) Situational factors such as physical surroundings at the time of purchase, social

surroundings and time factor.

e) Social factors such as social status, reference groups and family.

f) Cultural factors, such as religion, social class—caste and sub-castes.bgfbh

Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time

depending on the nature of products. For example, kids prefer colourful and fancy

footwear, but as they grow up as teenagers and young adults, they prefer trendy

footwear, and as middle-aged and senior citizens they prefer more sober footwear.

The change in buying behaviour may take place due to several other factors such as

increase in income level, education level and marketing factors.

Varies from consumer to consumer:

All consumers do not behave in the same manner. Different consumers behave

differently. The differences in consumer behaviour are due to individual factors such

as the nature of the consumers, lifestyle and culture. For example, some consumers

are technoholics. They go on a shopping and spend beyond their means.

They borrow money from friends, relatives, banks, and at times even adopt unethical

means to spend on shopping of advance technologies. But there are other consumers

who, despite having surplus money, do not go even for the regular purchases and

avoid use and purchase of advance technologies.

Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example, the

behaviour of the urban consumers is different from that of the rural consumers. A

good number of rural consumers are conservative in their buying behaviours.

The rich rural consumers may think twice to spend on luxuries despite having

sufficient funds, whereas the urban consumers may even take bank loans to buy

luxury items such as cars and household appliances. The consumer behaviour may

also varies across the states, regions and countries. It may differ depending on the

upbringing, lifestyles and level of development.

Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They need to

study the various factors that influence the consumer behaviour of their target

customers.

The knowledge of consumer behaviour enables them to take appropriate marketing

decisions in respect of the following factors:

a. Product design/model

b. Pricing of the product

c. Promotion of the product

d. Packaging

e. Positioning

f. Place of distribution

Leads to purchase decision:

A positive consumer behaviour leads to a purchase decision. A consumer may take

the decision of buying a product on the basis of different buying motives. The

purchase decision leads to higher demand, and the sales of the marketers increase.

Therefore, marketers need to influence consumer behaviour to increase their

purchases.

Varies from product to product:

Consumer behaviour is different for different products. There are some consumers

who may buy more quantity of certain items and very low or no quantity of other

items. For example, teenagers may spend heavily on products such as cell phones and

branded wears for snob appeal, but may not spend on general and academic reading.

A middle- aged person may spend less on clothing, but may invest money in savings,

insurance schemes, pension schemes, and so on.

Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living. The

more a person buys the goods and services, the higher is the standard of living. But if

a person spends less on goods and services, despite having a good income, they

deprives themselves of higher standard of living.

Reflects status:

The consumer behaviour is not only influenced by the status of a consumer, but it also

reflects it. The consumers who own luxury cars, watches and other items are

considered belonging to a higher status. The luxury items also give a sense of pride to

the owners.

Importance of consumer behaviour

a) Achievement of Goals:

The key to a company’s survival, profitability, and growth in a highly competitive

marketing environment is its ability to identify and satisfy unfulfilled consumer needs

better and sooner than the competitors. Thus, consumer behaviour helps in achieving

marketing goals.

b) Useful for Dealers and Salesmen:

The study of consumer behaviour is not useful for the company alone. Knowledge of

consumer behaviour is equally useful for middlemen and salesmen to perform their

tasks effectively in meeting consumers’ needs and wants successfully. Consumer

behaviour, thus, improves performance of the entire distribution system.

c) More Relevant Marketing Programme:

Marketing programme, consisting of product, price, promotion, and distribution

decisions, can be prepared more objectively. The programme can be more relevant if

it is based on the study of consumer behaviour. Meaningful marketing programme is

instrumental in realizing marketing goals.

d) Adjusting Marketing Programme over Time:

Consumer behaviour studies the consumer response pattern on a continuous basis. So,

a marketer can easily come to know the changes taking place in the market. Based on

the current market trend, the marketer can make necessary changes in marketing

programme to adjust with the market.

e) Predicting Market Trend:

Consumer behaviour can also aid in projecting the future market trends. Marketer

finds enough time to prepare for exploiting the emerging opportunities, and/or facing

challenges and threats.

f) Consumer Differentiation:

Market exhibits considerable differentiations. Each segment needs and wants different

products. For every segment, a separate marketing programme is needed. Knowledge

of consumer differentiation is a key to fit marking offers with different groups of

buyers. Consumer behaviour study supplies the details about consumer

differentiations.

g) Creation and Retention of Consumers:

Marketers who base their offerings on a recognition of consumer needs find a ready

market for their products. Company finds it easy to sell its products. In the same way,

the company, due to continuous study of consumer behaviour and attempts to meet

changing expectations of the buyers, can retain its consumers for a long period.

h) Competition:

Consumer behaviour study assists in facing competition, too. Based on consumers’

expectations, more competitive advantages can be offered. It is useful in improving

competitive strengths of the company.

i) Developing New Products:

New product is developed in respect of needs and wants of the target market. In order

to develop the best-fit product, a marketer must know adequately about the market.

Thus, the study of consumer behaviour is the base for developing a new product

successfully.

j) Dynamic Nature of Market:

Consumer behaviour focuses on dynamic nature of the market. It helps the manager to

be dynamic, alert, and active in satisfying consumers better and sooner than

competitors. Consumer behaviour is indispensable to watch movements of the

markets.

k) Effective Use of Productive Resources:

The study of consumer behaviour assists the manager to make the organisational

efforts consumer-oriented. It ensures an exact use of resources for achieving

maximum efficiency. Each unit of resources can contribute maximum to objectives.

It is to be mentioned that the study of consumer behaviour is not only important for

the current sales, but also helps in capturing the future market. Consumer behaviour

assumes: Take care of consumer needs, the consumers, in return, will take care of

your needs.

Scope of Consumer behaviour:

‘What’ the consumers buy: goods and services

‘Why’ they buy it: need and want

‘When’ do they buy it: time: day, week, month, year, occasions etc.

‘Where’ they buy it: place

‘How often they buy’ it: time interval

‘How often they use’ it: frequency of use

Need to Study the Consumer behaviour:

To survive in the market, a firm has to be constantly innovating and understand the

latest consumer needs and tastes. It will be extremely useful in exploiting marketing

opportunities and in meeting the challenges that the Indian market offers.

It is important for the marketers to understand the consumer behaviour due to the

following reasons.

The study of consumer behaviour for any product is of vital importance to

marketers in shaping the fortunes of their organizations.

It is significant for regulating consumption of goods and thereby maintaining

economic stability.

It is useful in developing ways for the more efficient utilization of resources of

marketing. It also helps in solving marketing management problems in more

effective manner.

Today consumers give more importance on environment friendly products. They

are concerned about health, hygiene and fitness. They prefer natural products.

Hence detailed study on upcoming groups of consumers is essential for any

firm.

The growth of consumer protection movement has created an urgent need to

understand how consumers make their consumption and buying decision.

Consumers’ tastes and preferences are ever changing. Study of consumer

behaviour gives information regarding colour, design, size etc. which consumers

want. In short, consumer behaviour helps in formulating of production policy.

For effective market segmentation and target marketing, it is essential to have an

understanding of consumers and their behaviour.

Consumer buying roles

Initiator: - A Person who first suggest the idea of buying.

Influencer: - A Person who influence the buying decision.

Decider: - A Person who takes decisions regarding buying

Buyer: - A Person who actually buys the products.

User: - A Person who is the user of the product.

Types of consumer buying behaviour

It has divided into four types: -

1. Complex Buying Behaviour:

When the consumer are highly involved in the purchase and aware of significant

differences among brands.

2. Dissonance Reducing Buying Behaviour:

When the consumer are highly involved in the purchase but sees little differences

among brands.

3. Habitual Buying Behaviour:

When the consumer are low involved in the purchase but sees absence of aware of

differences among brands.

4. Variety Seeking Buying Behaviour:

When the consumer are low involved in the purchase but sees significant of

differences among brands.

Consumer Buying Decision Process

There are following five stages in consumer buying decision process.

1. Problem identification:-

The buying process starts when the buyer recognizes a problem or need. The need can

be triggered by internal or external stimuli.

2. Information Search:-

The consumer tries to collect information regarding various products/service. Through

gathering information, the consumer learns about completing brands and their

features.

Information may be collected form magazines, catalogues, retailers, friends, family

members, business association, commercial, chamber of commerce, telephone

directory, trade fair etc.

3. Evaluation of alternative:-

There is no single process used by all consumers by one consumer in all buying

situations. There is several First, the consumer processes, some basic concepts are:

First, the consumer is trying to satisfy need.

Second, the consumer is looking for certain benefits from the product solutions.

The marketer must know which criteria the consumer will use in the purchase

decision.

4. Choice of purchasing decision:-

From among the purchase of alternatives the consumer makes the solution. It may be

to buy or not to buy. If the decision is to buy

5. Post Purchase Behaviour:-

After purchase the product, the consumer will experience the same level of product.

The Marketer’s job not end when the product is buying must monitor post-purchase

satisfaction, post purchase action, post-purchase use and disposal

Post Purchase Satisfaction:-

The buyer, S satisfaction is a function of closeness between the buyer, S expectation

and the products Perceiver performance.

The larger the gap between expectation and performance the greater the consumer

dissatisfaction.

Advantages of Consumer behaviour

Saves from Disaster

It helps in formulating right marketing strategy

Helps in development of new products

Helps in product orientation

It gives better idea in Packaging

It gives the knowledge of consumer behaviour

CHAPTER-2

REVIEW OF LITERATURE

AND

REASERCH DESIGN

Review of literature:

Geetha Anand U. Alekya in 2015 study titled A study on consumer behaviour in

the footwear industry he tells the footwear industry in India is spurt growth in past

few years. The study tells that there is huge competition in the footwear industry

every company should know the customers preferences. The customers are becoming

more fashion conscious and buying process pattern has also seen a shift in terms of

various parameters.

Alena Pospisilova study titled Analysis of consumer behaviour in the UK

footwear market in his study issues about consumer concentrates on a different

aspect of a product the consumer will attractive on quality, colour , design . He tells

that consumer final choice reflects person’s desires and the inner feelings and

highlights how an individual express himself in a public.

Ram Mohan in 2014 study titled Influence of Product and Place factors on

consumer buying behaviour in Formal foot wear explains that consumer will seek

more place while buying the behaviour they will be more conscious about the price,

place the will be more looking to discounts, offers, influence of the sales person based

on these consumer behaviour will varies accordingly.

Chakravathi Narasimhan in 2014 in his study titled A model of Retail formats

based on consumers’ Economizing on shopping time he states that how the

consumer will thing about the retail shops if shop is well maintained with good

infrastructure it will be costly or else it is vice versa. For his survey he took some

Grocery shops, Super market, kiran store buyers.

Soumya Saha in 2010 in his study titled Factors affecting Consumer buying

behaviour of shoes in Kolkata issues states about that consumer behaviour

understanding is needed for every organization it helps them to make the innovation

strategies to satisfy the customer with better sales and profit to the organization.

Marsha L. Richins Scott Dawson study titled A Consumer Values Orientation for

Materialism and its Measurement: Scale Development and Validation looks into

the how the people are different in there consumption pattern the people will buy the

goods based on their selected purchasing groups like friends, family, colleagues Etc.

The consumer behaviour will changes accordingly.

Mu-Chen Chen, Ai-Lun Chiu in 2005 study titled Mining changes in customer

behaviour in retail marketing explains customer relationship is important for the

organization where it helps to know the consumer preference regarding the products

the marketing manager should maintain a good relationship with consumers. The

marketing managers have the ability to maintain a good relationship with customers.

Yun Wang in 2014 study titled Consumers’ Purchase Intentions of Shoes issue

sates about how consumer are look into the shoes while purchasing they first look into

the price of the shoe then its quality , durability, colour , comfort Etc. The consumer

will match all this with price and then he decide to whether buy or not the shoe.

R. Alexander. A.K. Subramani study titled Customer Buying Behaviour towards

branded Casual Shoes, Ayanavaram, Chennai issues states that consumer are

educated nowadays they will get the information and knowledge about the products

easily they will compare the products with one another and select the best one. So the

organization has to understand the customer perception regarding footwear’s.

P. Kishore Kumar, Byram Anand in 2013 study titled A study on consumer

Purchase Intention towards Biodegradable footwear explains that consumers are

know more conscious about environment nowadays they started using biodegradable

footwear’s which are Eco friendly . Hence it can conclude that organization can start

manufacturing Eco friendly footwear’s.

Statement of the Problem:

The customers are called the King. In the light of the globalization, competition has

increased for all the footwear products. To with stand the competition it is important

for the company to understand the customer’s behaviour towards the Bata foot wear.

With this background the study is taken up to explores the needs, preference, buying

behaviour, attitudes and expectations of the customers towards Bata.

Scope of the study:-

The study aims to understand the consumer behaviour towards Bata products. It helps

to get knowledge of the consumer perception of Bata. It is aimed at enlightening the

company about different steps to taken up to increase the sales. To implement the new

marketing strategies to boost the sales for the company. The study helps to provide a

better product and service to the customers. The scope of the study is limited to

Bangalore city of 150 respondents.

Objective of the study:-

To know the buying pattern of customers towards Bata foot wear.

To understand the various factors influencing the customers to buy Bata

footwear.

To know satisfaction level of the customers towards Bata footwear.

To understand customer loyalty towards Bata foot wear.

To give suitable suggestion to the organization.

Sampling:-

Sampling is a process of selecting certain number units from large population so that

by studying these sample we may generalize our results back to the population from

which they were chosen. The sampling is a process used in statistical analysis in

which the predetermined numbers of observation are taken from large number of

population.

Sampling design includes:-

Sampling Technique:-

Convenient sampling method is adopted for selecting the sample.

Sampling Size: - The sample size is 150 respondents.

Sampling unit:-

Sampling unit for the study will be the customers who visits the Bata Showrooms to

purchase the footwear in Bangalore.

Tools used for data collection:-

Data collection is the process of gathering and measuring information on targeted

variables in an established systematic fashion, which then enables one to answer

relevant questions and evaluate outcomes. The goal for all data collection is to capture

quality evidence that then translates to rich data analysis and allows the building of a

convincing and credible answer to questions that have been posed.

Questionnaire:-

The questionnaire is a list of questions asked to respondents to obtain specific

information. It contains a list of specific questions to be answered from the selected

respondents.

Interview:-

An interview is a conversation where questions are asked and answers are given. The

interview refers to a one to one conversion through face to face or through phone to

get the information.

The other tools used in collection of data is books, observation, internet and journals

etc.

Data analysis:

The data collected is analysed and shown in form of

Tables

Charts

Graphs

Comparative diagrams

Figures

On the basis information collected by the questionnaire the charts and the tables will

be prepared. The tabulated data and will be analysed with the help of percentages. The

result thus obtained will be depicted through charts and graphs. Inferences will be

drawn and suitable suggestions will be given.

Pie chart and Bar graph are used to analyse the data.

Limitations of the study

The time provided for the study was limited.

It was not possible to study in depth.

Due to shortage of time only important information is collected.

A sample consisted is limited Consumers.

Most of the respondents are not willing to fill the questionnaire.