Content

Page
Chapter 1
1.1 Introduction 3
1.2 Industry Profile 19
Chapter 2
2.1 Importance 25
2.2 Objectives of Study
2.2.1 Primary 26
2.2.2 Secondary 2
2.3 Scope of t!e Study 2"
Chapter- 3
3.1 #ompany Profile 3$
3.1.1 %rands 31
3.1.2 Product Profile 31
3.1.3 Or&ani'ation Structure 39
Chapter -4
(. )evie* of +iterature (1
Chapter -5
5.1 )esearc! ,et!odolo&y
5.1.1-ype of Study (
5.1.2 .ata #ollection Procedure (
5.1.3 Sample .esi&n (
5.1.( Sample Si'e (
5.1.5 Sample /nit (
5.2 +imitation of t!e Study ("
5.3 #onclusion ("
Chapter-6
6.1. .ata 0nalysis and Interpretation 51
Chapter-7
.1. 1indin&s 65
.2. Su&&estion 65
.3. #onclusion 66
1
CHAPTER 1
2
INTRODUCTION
Consumer buying behaviour
-!e study of !o* and *!y people purc!ase Products is termed consumer buyin&
be!avior. -!e term covers t!e decision2ma3in& processes from t!ose t!at precede t!e
purc!ase of &oods or services to t!e final e4perience of usin& t!e product or service.
,odels of consumer buyin& be!avior dra* to&et!er t!e various influences on5 and t!e
process of5 t!e buyin& decision. -!ey attempt to understand t!e proverbial 6blac3 bo46
of *!at !appens *it!in t!e consumer bet*een !is or !er e4posure to mar3etin&
stimuli and t!e actual decision to purc!ase.
-!e essence of t!e model is t!at it su&&ests consumers *ill respond in particular
*ays to different stimuli after t!ey !ave 6processed6 t!ose stimuli in t!eir minds. In
more detail5 t!e model su&&ests t!at factors e4ternal to t!e consumer *ill act as a
stimulus for be!avior5 but t!at t!e consumer6s personal c!aracteristics and decision2
ma3in& process *ill interact *it! t!e stimulus before a particular be!avioral response
is &enerated.
It is called t!e 6blac3 bo46 model because *e still 3no* so little about !o* t!e !uman
mind *or3s. 7e cannot see *!at &oes on in t!e mind and *e don6t really 3no* muc!
about *!at &oes on in t!ere5 so it6s li3e a blac3 bo4. 0s far as consumer be!avior
&oes5 *e 3no* enou&! to be able to identify major internal influences and t!e major
steps in t!e decision2ma3in& process *!ic! consumers use5 but *e don6t really 3no*
!o* consumers transform all t!ese data5 to&et!er *it! t!e stimuli5 to &enerate
particular responses.
-urn no* to t!e follo*in& readin& to be&in loo3in& at your te4t6s introduction to
buyer be!avior.
Possibly t!e most c!allen&in& concept in mar3etin& deals *it! understandin& *!y
buyers do *!at t!ey do 8or don9t do:
%ut suc! 3no*led&e is critical for mar3eters since !avin& a stron& understandin& of
buyer be!avior *ill !elp s!ed li&!t on *!at is important to t!e customer and also
su&&est t!e important influences on customer decision2ma3in&. /sin& t!is
information5 mar3eters can create mar3etin& pro&rams t!at t!ey believe *ill be of
interest to customers.
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0s you mi&!t &uess5 factors affectin& !o* customers ma3e decisions are e4tremely
comple4. %uyer be!avior is deeply rooted in psyc!olo&y *it! das!es of sociolo&y
t!ro*n in just to ma3e t!in&s more interestin&. Since every person in t!e *orld is
different5 it is impossible to !ave simple rules t!at e4plain !o* buyin& decisions are
made. %ut t!ose *!o !ave spent many years analy'in& customer activity !ave
presented us *it! useful ;&uidelines< in !o* someone decides *!et!er or not to ma3e
a purc!ase.
In fact5 pic3 up any te4tboo3 t!at e4amines customer be!avior and eac! seems to
approac! it from a different an&le. -!e perspective *e ta3e is to touc! on just t!e
basic concepts t!at appear to be commonly accepted as influencin& customer
be!avior. 7e *ill devote t*o sections of t!e Principles of ,ar3etin& -utorials to
customer be!avior. In t!is section *e *ill e4amine t!e buyin& be!avior of consumers
8i.e.5 *!en people buy for personal reasons: *!ile in t!e %usiness %uyin& %e!avior
-utorial *e *ill e4amine factors t!at influence buyer9s decisions in t!e business
mar3et.
Types of Consumer Purchase Decisions
#onsumers are faced *it! purc!ase decisions nearly every day. %ut not all decisions
are treated t!e same. Some decisions are more comple4 t!an ot!ers and t!us re=uire
more effort by t!e consumer. Ot!er decisions are fairly routine and re=uire little
effort. In &eneral5 consumers face four types of purc!ase decisions>
? ,inor @e* Purc!ase A t!ese purc!ases represent somet!in& ne* to a consumer
but in t!e customer9s mind is not a very important purc!ase in terms of need5 money
or ot!er reason 8e.&.5 status *it!in a &roup:.
? ,inor )e2Purc!ase A t!ese are t!e most routine of all purc!ases and often t!e
consumer returns to purc!ase t!e same product *it!out &ivin& muc! t!ou&!t to ot!er
product options 8i.e.5 consumer is brand loyalty:.
? ,ajor @e* Purc!ase A t!ese purc!ases are t!e most difficult of all purc!ases
because t!e product bein& purc!ased is important to t!e consumer but t!e consumer
!as little or no previous e4perience ma3in& t!ese decisions. -!e consumer9s lac3 of
confidence in ma3in& t!is type of decision often 8but not al*ays: re=uires t!e
consumer to en&a&e in an e4tensive decision2ma3in& process.

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? ,ajor )e2Purc!ase 2 t!ese purc!ase decisions are also important to t!e consumer
but t!e consumer feels confident in ma3in& t!ese decisions since t!ey !ave previous
e4perience purc!asin& t!e product.
1or mar3eters it is important to understand !o* consumers treat t!e purc!ase
decisions t!ey face. If a company is tar&etin& customers *!o feel a purc!ase decision
is difficult 8i.e.5 ,ajor @e* Purc!ase:5 t!eir mar3etin& strate&y may vary &reatly from
a company tar&etin& customers *!o vie* t!e purc!ase decision as routine. In fact5
t!e same company may face bot! situations at t!e same timeB for some t!e product is
ne*5 *!ile ot!er customers see t!e purc!ase as routine. -!e implication of buyin&
be!avior for mar3eters is t!at different buyin& situations re=uire different mar3etin&
efforts.
Why Consumers Buy
-utorial5 customers ma3e purc!ases in order to satisfy needs. Some of t!ese needs are
basic and must be filled by everyone on t!e planet 8e.&.5 food5 s!elter: *!ile ot!ers are
not re=uired for basic survival and vary dependin& on t!e person. It probably ma3es
more sense to classify needs t!at are not a necessity as *ants or desires. In fact5 in
many countries *!ere t!e standard of livin& is very !i&!5 a lar&e portion of t!e
population9s income is spent on *ants and desires rat!er t!an on basic needs.
In t!is tutorial *!en *e mention t!e consumer *e are referrin& to t!e actual buyer5
t!e person spendin& t!e money. %ut is s!ould also be pointed out t!at t!e one *!o
does t!e buyin& is not necessarily t!e user of *!at is bou&!t and t!at ot!ers may be
involved in t!e buyin& decision in addition to t!e actual buyer. 7!ile t!e purc!asin&
process in t!e consumer mar3et is not as comple4 as t!e business mar3et5 !avin&
multiple people involved in a purc!ase decision is not unusual. 1or e4ample5 in
plannin& for a family vacation t!e mot!er may ma3e t!e !otel reservations but ot!ers
in t!e family may !ave input on t!e !otel c!oice. Similarly5 a fat!er may purc!ase
snac3s at t!e &rocery store but !is youn& c!ild may be t!e one *!o selected it from
t!e store s!elf.
So understandin& consumer purc!ase be!avior involves not only understandin& !o*
decisions are made but also understandin& t!e dynamics t!at influence purc!ases.
What Influences Purchasing
5
0s *e discussed t!e decision2ma3in& process for consumers is anyt!in& but strai&!t
for*ard. -!ere are many factors t!at can affect t!is process as a person *or3s
t!rou&! t!e purc!ase decision. -!e number of potential influences on consumer
be!avior is limitless. Co*ever5 mar3eters are *ell served to understand t!e DEF
influences. %y doin& so t!ey may be in a position to tailor t!eir mar3etin& efforts to
ta3e advanta&e of t!ese influences in a *ay t!at *ill satisfy t!e consumer and t!e
mar3eter 8remember t!is is a 3ey part of t!e definition of mar3etin&:.
1or t!e purposes of t!is tutorial *e *ill brea3 t!ese influences do*n into t!ree main
cate&ories> Internal5 E4ternal and ,ar3etin&. Co*ever5 t!ose interested in learnin&
more about customer buyin& activity may *ant to consult one or more consumer
be!avior boo3s *!ere t!ey *ill find additional met!ods for e4plainin& consumer
buyin& be!avior.
1or t!e most part t!e influences are not mutually e4clusive. Instead5 t!ey are all
interconnected and5 as *e *ill see5 *or3 to&et!er to form *!o *e are and !o* *e
be!ave.
1or eac! of t!e influences t!at are discussed *e *ill provide a basic description and
also su&&est its implication to mar3eters. %ear in mind *e only provide a fe*
mar3etin& implications for eac! influenceB clearly t!ere are many more.
Knowledge
Dno*led&e is t!e sum of all information 3no*n by a person. It is t!e facts of t!e
*orld as !eGs!e 3no*s it and t!e dept! of 3no*led&e is a function of t!e breadt! of
*orldly e4periences and t!e stren&t! of an individual9s lon&2term memory.
Obviously *!at e4ists as 3no*led&e to an individual depends on !o* an individual9s
perceptual filter ma3es sense of t!e information it is e4posed to.
Marketing Implications:
,ar3eters may conduct researc! t!at *ill &au&e consumers9 level of 3no*led&e
re&ardin& t!eir product. 0s *e *ill see belo*5 it is li3ely t!at ot!er factors
influencin& consumer be!avior are in lar&e part s!aped by *!at is 3no*n about a
product. -!us5 developin& met!ods 8e.&.5 incentives: to encoura&e consumers to
accept more information 8or correct information: may affect ot!er influencin& factors.
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Attitude
In simple terms attitude refers to *!at a person feels or believes about somet!in&.
0dditionally5 attitude may be reflected in !o* an individual acts based on !is or !er
beliefs. Once formed5 attitudes can be very difficult to c!an&e. -!us5 if a consumer
!as a ne&ative attitude to*ard a particular issue it *ill ta3e considerable effort to
c!an&e *!at t!ey believe to be true.
Marketing Implications:
,ar3eters facin& consumers *!o !ave a ne&ative attitude to*ard t!eir product must
*or3 to identify t!e 3ey issues s!apin& a consumer9s attitude t!en adjust mar3etin&
decisions 8e.&.5 advertisin&: in an effort to c!an&e t!e attitude. 1or companies
competin& a&ainst stron& rivals to *!om loyal consumers e4!ibit a positive attitude5
an important strate&y is to *or3 to see *!y consumers feel positive to*ard t!e
competitor and t!en try to meet or beat t!e competitor on t!ese issues. 0lternatively5
a company can try to locate customers *!o feel ne&atively to*ard t!e competitor and
t!en increase a*areness amon& t!is &roup.
Personality
0n individual9s personality relates to perceived personal c!aracteristics t!at are
consistently e4!ibited5 especially *!en one acts in t!e presence of ot!ers. In most5
but not all5 cases t!e be!aviors one projects in a situation is similar to t!e be!aviors a
person e4!ibits in anot!er situation. In t!is *ay personality is t!e sum of sensory
e4periences ot!ers &et from e4periencin& a person 8i.e.5 !o* one tal3s5 reacts:. 7!ile
one9s personality is often interpreted by t!ose *e interact *it!5 t!e person !as t!eir
o*n vision of t!eir personality5 called Self #oncept5 *!ic! may or may not be t!e
same !as !o* ot!ers vie* us.
Marketing Implications:
1or mar3eters it is important to 3no* t!at consumers ma3e purc!ase decisions to
support t!eir self concept. /sin& researc! tec!ni=ues to identify !o* customers vie*
t!emselves may &ive mar3eters insi&!t into products and promotion options t!at are
not readily apparent. 1or e4ample5 *!en e4aminin& consumers a mar3eter may
initially build mar3etin& strate&y around more obvious clues to consumption
be!avior5 suc! as consumer9s demo&rap!ic indicators 8e.&.5 a&e5 occupation5 income:.
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Co*ever5 in2dept! researc! may yield information t!at s!o*s consumers are
purc!asin& products to fulfill self2concept objectives t!at !ave little to do *it! t!e
demo&rap!ic cate&ory t!ey fall into 8e.&.5 senior citi'en may be ma3in& purc!ases t!at
ma3e t!em feel youn&er:. 0ppealin& to t!e consumer9s self concept needs could
e4pand t!e mar3et to *!ic! t!e product is tar&eted.
Lifestyle
-!is influencin& factor relates to t!e *ay *e live t!rou&! t!e activities *e en&a&e in
and interests *e e4press. In simple terms it is *!at *e value out of life. +ifestyle is
often determined by !o* *e spend our time and money.
Marketing Implications:
Products and services are purc!ased to support consumers9 lifestyles. ,ar3eters !ave
*or3ed !ard researc!in& !o* consumers in t!eir tar&et mar3ets live t!eir lives since
t!is information is 3ey to developin& products5 su&&estin& promotional strate&ies and
even determinin& !o* best to distribute products. -!e fact t!at lifestyle is so directly
tied to mar3etin& activity *ill be furt!er e4amined as *e discuss developin& tar&et
mar3et strate&ies 8See -ar&etin& ,ar3ets -utorial:.
Roles
)oles represent t!e position *e feel *e !old or ot!ers feel *e s!ould !old *!en
dealin& in a &roup environment. -!ese positions carry certain responsibilities yet it is
important to understand t!at some of t!ese responsibilities may5 in fact5 be perceived
and not spelled out or even accepted by ot!ers. In support of t!eir roles5 consumers
*ill ma3e product c!oices t!at may vary dependin& on *!ic! role t!ey are assumin&.
0s illustration5 a person *!o is responsible for selectin& snac3 food for an office party
!is boss *ill attend may c!oose !i&!er =uality products t!an !e *ould c!oose *!en
selectin& snac3s for !is family.
Marketing Implications:
0dvertisers often s!o* !o* t!e benefits of t!eir products aid consumers as t!ey
perform certain roles. -ypically t!e underlyin& messa&e of t!is promotional approac!
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is to su&&est t!at usin& t!e advertiser9s product *ill !elp raise one9s status in t!e eyes
of ot!ers *!ile usin& a competitor9s product may !ave a ne&ative effect on status.
Motivation
,otivation relates to our desire to ac!ieve a certain outcome. ,any internal factors
*e !ave already discussed can affect a customer9s desire to ac!ieve a certain outcome
but t!ere are ot!ers. 1or instance5 *!en it comes to ma3in& purc!ase decisions
customers9 motivation could be affected by suc! issues as financial position 8e.&.5 #an
I afford t!e purc!aseH:5 time constraints 8e.&.5 .o I need to ma3e t!e purc!ase
=uic3lyH:5 overall value 8e.&.5 0m I &ettin& my money9s *ort!H:5 and perceived ris3
8e.&.5 7!at !appens if I ma3e a bad decisionH:.
Marketing Implications:
,otivation is also closely tied to t!e concept of Involvement5 *!ic! relates to !o*
muc! effort t!e consumer *ill e4ert in ma3in& a decision. Ci&!ly motivated
consumers *ill *ant to &et mentally and p!ysically involved in t!e purc!ase process.
@ot all products !ave a !i&! percenta&e of !i&!ly involved customers 8e.&.5 mil3: but
mar3eters *!o mar3et products and services t!at may lead to !i&! level of consumer
involvement s!ould prepare options t!at *ill be attractive to t!is &roup. 1or instance5
mar3eters s!ould ma3e it easy for consumers to learn about t!eir product 8e.&.5
information on *ebsite5 free video previe*: and5 for some products5 allo* customers
to e4perience t!e product 8e.&.5 free trial: before committin& to t!e purc!ase.
EXTERNAL INFLUENCES
#onsumer purc!asin& decisions are often affected by factors t!at are outside of t!eir
control but !ave direct or indirect impact on !o* *e live and *!at *e consume.
Culture
#ulture represents t!e be!avior5 beliefs and5 in many cases5 t!e *ay *e act learned by
interactin& or observin& ot!er members of society. In t!is *ay muc! of *!at *e do is
s!ared be!avior5 passed alon& from one member of society to anot!er. Fet culture is
a broad concept t!at5 *!ile of interest to mar3eters5 is not nearly as important as
understandin& *!at occurs *it!in smaller &roups or Sub2#ultures to *!ic! *e may
also belon&. Sub2cultures also !ave s!ared values but t!is occurs *it!in smaller
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&roups. 1or instance5 sub2cultures e4ist *!ere &roups s!are similar values in terms of
et!nicity5 reli&ious beliefs5 &eo&rap!ic location5 special interests and many ot!ers.
Marketing Implications:
0s part of t!eir efforts to convince customers to purc!ase t!eir products5 mar3eters
often use cultural representations5 especially in promotional appeals. -!e objective is
to connect to consumers usin& cultural references t!at are easily understood and often
embraced by t!e consumer. %y doin& so t!e mar3eter !opes t!e consumer feels more
comfortable *it! or can relate better to t!e product since it corresponds *it! t!eir
cultural values. 0dditionally5 smart mar3eters use stron& researc! efforts in an
attempt to identify differences in !o* sub2culture be!aves. -!ese efforts !elp pave
t!e *ay for spottin& trends *it!in a sub2culture5 *!ic! t!e mar3eter can capitali'e on
t!rou&! ne* mar3etin& tactics 8e.&.5 ne* products5 ne* sales c!annels5 added value5
etc.:.
Other Group Membership
In addition to cultural influences5 consumers belon& to many ot!er &roups *it! *!ic!
t!ey s!are certain c!aracteristics and *!ic! may influence purc!ase decisions. Often
t!ese &roups contain Opinion +eaders or ot!ers *!o !ave major influence on *!at t!e
customer purc!ases. Some of t!e basic &roups *e may belon& to include>
? Social #lass A represents t!e social standin& one !as *it!in a society based on
suc! factors as income level5 education5 occupation
? 1amily A one9s family situation can !ave a stron& effect on !o* purc!ase
decisions are made
? )eference &roups A most consumers simultaneously belon& to many ot!er &roups
*it! *!ic! t!ey associate or5 in some cases5 feel t!e need to disassociate
Marketing Implications:
Identifyin& and understandin& t!e &roup9s consumers belon& to is a 3ey strate&y for
mar3eters. .oin& so !elps identify tar&et mar3ets5 develop ne* products5 and create
appealin& mar3etin& promotions to *!ic! consumers can relate. In particular5
mar3eters see3 to locate &roup leaders and ot!ers to *!om members of t!e &roup loo3
for advice or direction. -!ese opinion leaders5 if *ell respected by t!e &roup5 can be
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used to &ain insi&!t into &roup be!avior and if t!ese opinion leaders accept
promotional opportunities could act as effective spo3espeople for t!e mar3eter9s
products.
Purchase Situation
0 purc!ase decision can be stron&ly affected by t!e situation in *!ic! people find
t!emselves. In &eneral5 a situation is t!e circumstances a person faces *!en ma3in& a
purc!ase decision5 suc! as t!e nature of t!eir p!ysical environment5 t!eir emotional
state5 or time constraints. @ot all situations are controllable5 in *!ic! case a
consumer may not follo* t!eir normal process for ma3in& a purc!ase decision. 1or
instance5 if a person needs a product =uic3ly and a store does not carry t!e brand t!ey
normally purc!ase5 t!e customer may c!oose a competitor9s product.
Marketing Implications:
,ar3eters can ta3e advanta&e of decisions made in uncontrollable situations in at least
t*o *ays. 1irst5 mar3eters can use promotional met!ods to reinforce a specific
selection of products *!en t!e consumer is confronted *it! a particular situation. 1or
e4ample5 automotive services can be purc!ased t!at promise to service ve!icles if t!e
user runs into problems any*!ere and at anytime. Second5 mar3eters can use
mar3etin& met!ods t!at attempt to convince consumers t!at a situation is less li3ely to
occur if t!e mar3eter9s product is used. -!is can also be seen *it! auto products5
*!ere mar3eters e4plain t!at usin& t!eir product *ill prevent une4pected dama&e to
t!eir ve!icles.
How Consumers Buy
So no* t!at *e !ave discussed t!e factors influencin& a consumer9s decision to
purc!ase5 let9s e4amine t!e process itself. -!is process is presented in a se=uence of
5 steps as s!o*n belo*.
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Co*ever5 *!et!er a consumer *ill actually carryout eac! step depends on t!e type of
purc!ase decision t!at is faced. 1or instance5 for minor re2purc!ases t!e consumer
may be =uite loyal to t!e same brand5 t!us t!e decision is a routine one 8i.e.5 buy t!e
same product: and little effort is involved in ma3in& a purc!ase decision. In cases of
routine5 brand loyal purc!ases consumers may s3ip several steps in t!e purc!asin&
process since t!ey 3no* e4actly *!at t!ey *ant allo*in& t!e consumer to move
=uic3ly t!rou&! t!e steps. %ut for more comple4 decisions5 suc! as ,ajor @e*
Purc!ases5 t!e purc!asin& process can e4tend for days5 *ee3s5 mont!s or lon&er. So
in presentin& t!ese steps mar3eters s!ould reali'e t!at5 dependin& on t!e
circumstances surroundin& t!e purc!ase5 t!e importance of eac! step may vary.
1. Need/Want/Desire is recognized
In t!e first step t!e consumer !as determined t!at for some reason !eGs!e is not
satisfied 8i.e.5 consumer9s perceived actual condition: and *ants to improve !isG!er
situation 8i.e.5 consumer9s perceived desired condition:. 1or instance5 internal
tri&&ers5 suc! as !un&er or t!irst5 may tell t!e consumer t!at food or drin3 is needed.
E4ternal factors can also tri&&er consumer9s needs. ,ar3eters are particularly &ood at
t!is t!rou&! advertisin&B in2store displays and even t!e intentional use of scent 8e.&.5
perfume counters:. 0t t!is sta&e t!e decision2ma3in& process may stall if t!e
consumer is not motivated to continue 8see ,otivation above:. Co*ever5 if t!e
consumer does !ave t!e internal drive to satisfy t!e need t!ey *ill continue to t!e
ne4t step.
2. Search for Information
0ssumin& consumers are motivated to satisfy !is or !er need5 t!ey *ill ne4t underta3e
a searc! for information on possible s. -!e sources used to ac=uire t!is information
may be as simple as rememberin& information from past e4perience 8i.e.5
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memory: or t!e consumer may e4pend considerable effort to locate information from
outside sources 8e.&.5 Internet searc!5 tal3 *it! ot!ers5 etc.:. Co* muc! effort t!e
consumer directs to*ard searc!in& depends on suc! factors as> t!e importance of
satisfyin& t!e need5 familiarity *it! available s5 and t!e amount of time available to
searc!. -o appeal to consumers *!o are at t!e searc! sta&e5 mar3eters s!ould ma3e
efforts to ensure consumers can locate information related to t!eir product. 1or
e4ample5 for mar3eters *!ose customers rely on t!e Internet for information
&at!erin&5 attainin& !i&! ran3in&s in searc! en&ines !as become a critical mar3etin&
objective.
3. Evaluate Options
#onsumers9 searc! efforts may result in a set of options from *!ic! a c!oice can be
made. It s!ould be noted t!at t!ere may be t*o levels to t!is sta&e. 0t level one t!e
consumer may create a set of possible s to t!eir needs 8i.e.5 product types: *!ile at
level t*o t!e consumer may be evaluatin& particular products 8i.e.5 brands: *it!in
eac! . 1or e4ample5 a consumer *!o needs to replace a television !as multiple s to
c!oose from suc! as plasma5 +#. and #)- televisions. 7it!in eac! type *ill be
multiple brands from *!ic! to c!oose. ,ar3eters need to understand !o* consumers
evaluate product options and *!y some products are included *!ile ot!ers are not.
,ost importantly5 mar3eters must determine *!ic! criteria consumers are usin& in
t!eir selection of possible options and !o* eac! criterion is evaluated. )eturnin& to
t!e television e4ample5 mar3etin& tactics *ill be most effective *!en t!e mar3eter
can tailor t!eir efforts by 3no*in& *!at benefits are most important to consumers
*!en selectin& options 8e.&.5 picture =uality5 brand name5 screen si'e5 etc.: and t!en
determine t!e order of importance of eac! benefit.
4. Purchase
In many cases t!e c!osen by t!e consumer is t!e same as t!e product *!ose
evaluation is t!e !i&!est. Co*ever5 t!is may c!an&e *!en it is actually time to ma3e
t!e purc!ase. -!e ;intended< purc!ase may be altered at t!e time of purc!ase for
many reasons suc! as> t!e product is out2of2stoc35 a competitor offers an incentive at
t!e point2of2purc!ase 8e.&.5 store salesperson mentions a competitor9s offer:5 t!e
customer lac3s t!e necessary funds 8e.&.5 credit card not *or3in&:5 or members of t!e
consumer9s reference &roup ta3e a ne&ative vie* of t!e purc!ase 8e.&.5 friend is
13
critical of purc!ase:. ,ar3eters *!ose product is most desirable to t!e consumer
must ma3e sure t!at t!e transaction &oes smoot!ly. 1or e4ample5 Internet retailers
!ave *or3ed !ard to prevent consumers from abandonin& online purc!ase 8i.e.5 online
s!oppin& carts: by streamlinin& t!e c!ec3out process. 1or mar3eters *!ose product is
not t!e consumer9s selected product5 last c!ance mar3etin& efforts may be *ort!
e4plorin&5 suc! as offerin& incentives to store personnel to ;tal3 up< t!eir product at
t!e c!ec3out line.
5. After-Purchase Evaluation
Once t!e consumer !as made t!e purc!ase t!ey are faced *it! an evaluation of t!e
decision. If t!e product performs belo* t!e consumer9s e4pectation t!en !eGs!e *ill
re2evaluate satisfaction *it! t!e decision5 *!ic! at its e4treme may result in t!e
consumer returnin& t!e product *!ile in less e4treme situations t!e consumer *ill
retain t!e purc!ased item but may ta3e a ne&ative vie* of t!e product. Suc!
evaluations are more li3ely to occur in cases of e4pensive or !i&!ly important
purc!ases. -o !elp ease t!e concerns consumers !ave *it! t!eir purc!ase evaluation5
mar3eters need to be receptive and even encoura&e consumer contact. #ustomer
service centers and follo*2up mar3et researc! are useful tools in !elpin& to address
purc!asers9 concerns.
0s *e9ve seen5 consumer purc!asin& is =uite comple4. In our ne4t tutorial5 %usiness
%uyin& %e!avior5 *e *ill see t!at mar3eters must also !ave a t!orou&! understandin&
of !o* business purc!ase decisions are made.
1. CONSUMER PROBLEM-SOLVING PROCESSES
Routenized
I used *!en buyin& fre=uently purc!ased5 lo* cost items
I used *!en little searc!Gdecision effort is needed
I e.&.5 buyin& a =uart of oran&e juice once per *ee3
Limited problem solving
I used *!en products are occasionally purc!ased
14
I used *!en information is needed about an unfamiliar product in a familiar
product cate&ory
Extended problem solving
I used *!en product is unfamiliar5 e4pensive5 or infre=uently purc!ased
I e.&.5 buyin& a ne* car once every five years
/nder *!at sorts of conditions t!e assistance of a salesperson *ould be neededH
@ot neededH
2. POST-PURCHASE CONSUMER BEHAVIOR
Satisfaction
0fter t!e sale5 t!e buyer *ill li3ely feel eit!er satisfied or dissatisfied. If t!e buyer
believes t!at sG!e received more in t!e e4c!an&e t!an *!at *as paid5 sG!e mi&!t
feel satisfied. If sG!e believes t!at sG!e received less in t!e e4c!an&e t!an *!at
*as paid5 t!en sG!e mi&!t feel dissatisfied. .issatisfied buyers are not li3ely to
return as customers and are not li3ely to send friends5 relatives5 and ac=uaintances.
-!ey are also more li3ely to be un!appy or even abusive *!en t!e product
re=uires post2sale servicin&5 as *!en an automobile needs *arranty maintenance.
-!e above idea can be modeled as Cumans6 basic e4c!an&e e=uation>
Profit J )e*ards A #osts
/nfortunately5 even a buyer *!o K&ot a &ood dealK *it! respect to price and ot!er
terms of t!e sale mi&!t feel dissatisfied under t!e perception t!at t!e salesperson
made out even better
-!is idea is called e=uity t!eory5 *!ere *e are concerned *it!>
Outcomes of 0
Inputs of 0
Ls.
Outcomes of %
Inputs of %
15
#onsider5 for e4ample5 t!at you !ave purc!ased a used car for M1(5$$$ after
findin& t!at t!e N=uoteB blue boo3K value is listed at M165$$$. Fou are probably
deli&!ted *it! t!e purc!ase until you accidentally meet t!e prior o*ner *!o !ad
received a trade2in of M1$5$$$ on t!e car just a fe* days before. -!at t!e dealer
appears to !ave received substantially &reater benefit t!an you could lead to
e4treme dissatisfaction5 even t!ou&! you received &ood value for t!e money
spent.
8@ote t!at t!e sellin& dealer mi&!t actually !ave paid M125$$$ for t!e car at a
state*ide dealer6s auction5 and t!en mi&!t !ave incurred anot!er M15$$$ in
e4penses associated *it! transportin& t!e car and preparin& it for sale.
,ana&ement of buyer perceptions is very importantO:
0n issue related to t!is is attribution t!eory.
0ccordin& to attribution t!eory5 people tend to assi&n cause to t!e be!avior of
ot!ers. ,ary6s life insurance a&ent advises !er to purc!ase a *!ole life policy5
*!ile !er accountant advises !er5 Kbuy term insurance and invest t!e difference.K.
-!e reason5 e4plains t!e accountant5 Kis t!at insurance a&ents receive substantially
!i&!er commission payments on sales of *!ole life policies.K
If ,ary believes t!at t!e insurance a&ent is recommendin& a product merely
because !e receives a !i&!er commission5 s!e *ill li3ely be displeased *it! t!e
relations!ip and *ill not ta3e !is recommendation. If t!e a&ent is able to s!o*
,ary t!at t!e recommended product is t!e best for !er situation5 t!en s!e *ill
li3ely attribute !is recommendation to !avin& !er best interests in mind and *ill
not be concerned about !o* it is t!at !e is compensated for !is services.
Cognitive dissonance
Cas to do *it! t!e doubt t!at a person !as about t!e *isdom of a recent purc!ase
It is very common for people to e4perience some an4iety after t!e purc!ase of a
product t!at is very e4pensive or t!at *ill re=uire a lon& term commitment. Pane
and 1red5 for e4ample5 si&ned a one year lease on an apartment5 committin&
t!emselves to payments of M15$$ per mont!. 0 *ee3 later5 t!ey are *onderin& if
t!ey s!ould !ave instead leased a smaller M9$$ apartment in a more rou&! part of
to*nB t!ey are not sure if t!ey really can afford t!is muc! of a mont!ly obli&ation.
16
.ic3 and Sally5 on t!e ot!er !and5 ultimately rented t!e M9$$ apartment5 and no*
are *onderin& if t!e savin&s in rent *ill be offset by noisy and sometimes unsafe
conditions in t!is nei&!bor!ood.
Per!aps neit!er couple *ould be e4periencin& t!is an4iety if t!eir landlords !ad
&iven t!em just t!e smallest of assurances t!at t!ey !ad made a &ood decision.
0fter a close on products t!at are e4pensive or t!at re=uire a lon& term
commitment5 t!e salesperson s!ould provide t!e prospect *it! some reasons to be
!appy *it! t!e decision. 0llo* t!e car buyer to reinforce !er o*n positive
feelin&s by callin& !er a *ee3 after t!e purc!ase to as3 !o* t!in&s are &oin&. #all
t!e ne* life insurance policy !older after t*o mont!s to see if t!ere are any
=uestionsB a lac3 of =uestions can only !elp t!e buyer to convince !imself t!at !e
did t!e ri&!t t!in&.
,0S2#ommonD0.S 8I&lesias et al. 199"a: is a &eneral purpose multi2a&ent analysis
and desi&n met!odolo&y5 it e4tends t!e #ommonD0.S 8Sc!reiber et al. 1999: desi&n
met!od by combinin& tec!ni=ues from object2 oriented met!odolo&ies and protocol
en&ineerin&.
-!e met!odolo&y is centered on seven models t!at cover t!e main aspects of t!e
development of multi2a&ent systems>
I -!e a&ent model specifies a&ent9s c!aracteristics suc! as reasonin& capabilities5
sensorGeffectors5 services5 a&ent &roups and !ierarc!ies.
I -!e tas3 model describes t!e tas3s t!at t!e a&ents can carry out5 suc! as &oals5
decomposition5 problem2solvin& met!ods5 etc.
I -!e e4pertise model defines t!e 3no*led&e needed by t!e a&ents to ac!ieve t!eir
&oals.
I -!e or&ani'ation model describes t!e social or&ani'ation of t!e a&ent society.
I -!e coordination model illustrates t!e conversation bet*een a&ents.
I -!e communication model details t!e !uman2 soft*are a&ent interactions.
17
I -!e desi&n model includes5 in addition to t!e typical action of t!e desi&n p!ase
8Pressman 2$$1:5 t!e desi&n of relevant aspects of t!e a&ent net*or35 selectin& t!e
most suitable a&ent arc!itecture and t!e a&ent development platform.
-!e application of t!e met!odolo&y consists in developin& t!e different models. It !as
been successfully applied to systems for optimi'ation of roll2 mill applications
8I&lesias et al. 199"b: and automation of travel assistants 80renas and %arrera2
Sanabria 2$$2: amon& ot!ers.
18
INDUSTRY PROFILE
Soft*are remains one of t!e most innovative and fastest &ro*in& sectors of t!e
&lobal economy5 &eneratin& revenues of more t!an M15$ billion every year. 0bout
!alf of t!ose sales come from soft*are applications5 *it! t!e remainder split bet*een
development tools and infrastructure soft*are 8operatin& systems5 net*or3
mana&ement5 middle*are5 and security soft*are:. ,icrosoft claims a !ealt!y c!un3
of all t!ree se&ments 22 a continuin& point of contention *it! t!e /S Pustice
.epartment.
-!e Internet !as vastly altered t!e dynamics of t!e soft*are industry over t!e past
decade. 1ormerly restricted to a cycle of len&t!y )N. concentrated in one &eo&rap!ic
area 22 follo*ed by an arduous process of distribution t!rou&! a *orld*ide net*or3
of resellers5 systems inte&rators5 and ot!er independent vendors 22 t!e soft*are
industry !as found ne* efficiencies on t!e 7eb. #ompanies suc! as Sun
,icrosystems and Oracle !ave employed t!e 7eb to anc!or t!eir products5 in muc!
t!e same *ays t!at ,icrosoft used t!e des3top P# and I%, used t!e mainframe to
corner t!eir respective mar3ets.
In t!e past five years5 t!e formerly e4plosive mar3et for enterprise resource plannin&
8E)P: soft*are 22 *!ic! !elps companies save money by inte&ratin& bac32office
operations suc! as accountin&5 distribution5 and !uman resources 22 !as &iven *ay to
soft*are t!at !elps companies ma3e money5 includin& customer relations!ip
mana&ement 8#),: and supply c!ain mana&ement soft*are.
-!e standardi'ation of Internet tec!nolo&ies suc! as Pava and Q,+ 8e4tensible
mar3up lan&ua&e: 22 *!ic! in tandem enable end users on t!e 7eb to interact *it!
data stored on servers for confi&urin& orders or personali'in& services 22 is speedin&
up t!e industry*ide conversion to 7eb2enabled applications. 0 %usiness Soft*are
0lliance survey of #EOs from soft*are companies suc! as 0utodes35 Intuit5 and
Symantec confirmed t!at trend5 predictin& t!at by 2$$55 t*o2t!irds of all soft*are *ill
be distributed over t!e Internet 8compared to just 12R in 2$$1:.
19
#ompanies includin& ,icrosoft5 0O+ -ime 7arner5 and Sun are all joc3eyin& to
pus! 7eb2based soft*are to t!e ne4t level5 developin& a ne* class of applications
loosely referred to as 7eb services. .esi&ned from standardi'ed buildin& bloc3
components5 7eb services can t!eoretically be assembled in a variety of *ays5
allo*in& companies to develop business applications t!at function across a variety of
soft*are and !ard*are platforms.
7!ile lar&e on !ype 8mostly centered around ,icrosofts .@E- initiative:5 t!e current
real2*orld applications for 7eb services !ave been limited primarily to simple
inte&ration tas3s5 suc! as mana&in& online travel reservations and trac3in& s!ippin&.
If successful5 !o*ever5 t!e s!ift to 7eb services could be a dramatic one5 *it!
pac3a&ed soft*are lar&ely disappearin& and companies instead purc!asin&5
assemblin&5 and modifyin& components as needed to create specific business
applications.
It6s t!e tec!nolo&ical revolution t!at at times brin&s surprisin& opportunities for some
nations. India5 t!ou&! not amon& t!e front runners in terms of economic &ro*t!5 !as
successfully utili'ed suc! opportunities in t!e revolution to become an I- !otspot. 1or
t!e past several years5 India !as been an increasin&ly favored destination for
customi'ed soft*are development. 0s a result5 a number of soft*are companies in
India !ave come up. @ot only t!e number of players !as increased in t!e Indian I-
mar3et5 but at t!e same time5 Indian soft*are companies !ave done considerably *ell
in t!e &lobal mar3et. Suc! !u&e success of soft*are companies in India !as &iven
birt! to a ne* speculation A *!et!er ot!er developin& countries s!ould imitate Indian
e4ample and *!et!er t!e success of India *ould constitute a competitive c!allen&e to
t!e soft*are industry of t!e developed *orld or not.
The Software Industry in India
7it! t!e !u&e success of t!e soft*are companies in India5 t!e Indian soft*are
industry in turn !as become successful in ma3in& a mar3 in t!e &lobal arena. -!is
industry !as been instrumental in drivin& t!e economy of t!e nation on to a rapid
&ro*t! curve. 0s per t!e study of @0SS#O,2.eloitte5 t!e contribution of I-GI-ES
industry to t!e S.P of t!e country !as soared up to a s!are of 5R in 2$$ from a
mere 1.2R in 199". %esides5 t!is industry !as also recorded revenue of /SM 6( billion
*it! a &ro*t! rate of 33R in t!e fiscal year ended in 2$$".
20
-!e e4port of soft*are !as also &ro*n up5 *!ic! !as been instrumental in t!e
!u&e success of t!e Indian soft*are companies as *ell as t!e industry. In fact5
soft*are e4port from India accounts for more t!an 65R of t!e total soft*are revenue.
-!e domestic soft*are mar3et lar&ely depends upon sale of soft*are pac3a&es and
products5 *!ic! constitute major part of revenues. Products account for almost ($R
of t!e domestic mar3et. On t!e ot!er !and5 more t!an "$R of revenue from soft*are
e4ports comes from soft*are services li3e custom soft*are development and
consultancy services etc.
Reasons behind Success of Indian software companies
-!ere are a number of reasons *!y t!e soft*are companies in India !ave been so
successful. %esides t!e Indian soft*are companies5 a number of multinational &iants
!ave also plun&ed into t!e India I- mar3et.
India is t!e !ub of c!eap and s3illed soft*are professionals5 *!ic! are available in
abundance. It !elps t!e soft*are companies to develop cost2effective business s for
t!eir clients. 0s a result5 Indian soft*are companies can place t!eir products and
services in t!e &lobal mar3et in t!e most competitive rate. -!is is t!e reason *!y
India !as been a favorite destination for outsourcin& as *ell. ,any multinational I-
&iants also !ave t!eir offs!ore development centers in India.
,ost of t!e soft*are companies in India are into varied types of business. -!ere can
be several types of business in t!e I- sectors>
Infrastructure Soft*are> -!ese include OS5 middle*are and databases.
Enterprise Soft*are> -!ese automate business process in diverse verticals li3e
finance5 sales and mar3etin&5 production and lo&istics.
Security Soft*are
Industry2specific Soft*are
#ontract Pro&rammin&
21
0 bac3&round in computer science5 includin& facility in *ritin& and interpretin&
pro&rammin& code5 is almost al*ays t!e fundamental re=uirement for t!is field. 0s
computer tec!nolo&y bot! becomes more pervasive in 1inancial Services and c!an&es
rapidly5 s3illed I- professionals are increasin&ly more valuable.
0ccordin& to an article in t!e 12G5G$9 issue of -!e Economist 8KSilo but deadlyK:5 t!e
financial services industry *as on trac3 to spend over M5$$ billion *orld*ide on
information tec!nolo&y in 2$$9. -!is is &reater t!an any ot!er industry5 and also
e4ceeds t!e a&&re&ate spendin& by all &overnments on I-.
In-House Information Technology Staff> One attraction of pursuin& a career in
information tec!nolo&y is t!at I- departments are amon& t!e most pro&ressive in
allo*in& staff to *or3 from !ome 8t!at is5 to telecommute:5 bein& muc! furt!er alon&
t!is curve t!an most ot!er &roups in most companies.
More Than Writing Code> -o advance in an in2!ouse information tec!nolo&y
department5 or to 3eep open t!e option of a potential s*itc! to t!e mana&ement side
of t!e company5 you !ave to be more t!an someone *!o ta3es directions and *rites
code. )at!er5 you s!ould learn all you can about t!e or&ani'ations t!at act as your
internal clients5 anticipate t!eir needs and su&&est s. -!is *ay you become a valued
strate&ic partner rat!er t!an a mere mec!anic.
Managing Expectations> -!e best information tec!nolo&y people do an e4cellent job
of mana&in& t!eir business partners9 e4pectations. ,a3in& accurate5 realistic
estimates of *!at you can accomplis!5 and in *!at time frame5 is a 3ey factor in
establis!in& credibility. Pust as failin& to deliver *!at you promise is unacceptable5 so
is &rossly overestimatin& t!e time and resources t!at you need to finis! t!e job ri&!t.
Systems Liaison> 7!ile t!e core of systems consultin& includes people *it! e4pertise
in pro&rammin& and ot!er tec!nical fields5 t!ere also are jobs for people to serve as
liaisons bet*een t!e Kbusiness sideK and t!e Ktec!nical side.K -!ese liaison people are
able to understand t!e business re=uirements for a &iven systems project5 and to
communicate t!em co&ently and lo&ically to t!e tec!nical staff. +i3e*ise5 t!e liaison
people must 3no* enou&! about pro&rammin&5 systems desi&n and systems
implementation to advise t!e business side on t!eir options and to mana&e t!eir
e4pectations realistically.
22
-!is liaison role is also very important *it!in companies t!at !ave t!eir o*n tec!nical
staffs5 but rarely &ets assi&ned as a full time job. Instead5 it fre=uently ends up bein&
an unofficial side job for people *!o ac=uire an aptitude for it. In 1inancial Services5
t!e systems liaison role re&ularly falls to people in t!e financial or&ani'ation5
especially departmental controllers.
23
CHAPTER 2
24
IMPORTANCE
-!e different types of mar3ets and t!e process of dividin& t!ose mar3ets into small9s
portions called mar3et se&ments. In t!is c!apter *e e4amine a fe* basic concepts
related to buyin& be!avior. 7e use t!e term Ta fe*;because in mar3etin&5 more !as
been *ritten about buyin& be!avior t!an in any ot!er area. 7!y do you suppose t!is it
trueH Of course5 you already 3no* t!e ans*er> ,ar3eters believe t!e T#ustomer
)ules;t!us *e 3no* our primary responsibility to t!e or&ani'ation is to &ain an
intimate 3no*led&e of our customers> *!at satisfies t!em and ma3es t!em !appy and
*!at benefits t!ey are see3in& in t!e mar3etplace.
)esearc!ers in mar3etin& !ave studied most areas of consumer be!avior includin& t!e
impact of everyt!in& from music to li&!tin& on !o* people be!ave and !o* t!ey
consume products. -!is is not surprisin& considerin& t!e fact t!at *e live in a
consumption2driven culture. 7e *ill focus on t!e basic constructs accepted today in
t!e study of buyin& be!avior.
Consumer Decision-Making
,ost studies of t!e decision2ma3in& process in mar3etin& !ave used an adaptation of
t!e scientific met!od. -!is decision2ma3in& process is as follo*s>
a. Problem recognition
-!e consumer reco&ni'es a problem. 1or e4ample5 !er car !as !ad major mec!anical
problems for t!e last t*o mont!s.
b. Information search o internal and external.
-!e consumer t!in3s about options s!e may !ave to remedy !er situation 8internal
searc!:. 0nd t!en s!e see3s e4ternal sources of information suc! as friends5
ne*spapers5 -L5 and t!e internet.
c. Alternative identification and evaluation
S!e !as some ideas about *!at alternatives s!e !as and !o* to approac! t!em. S!e
no* must compare and contrast t!e options s!e !as.
d. Choice and purchase
25
%ased on t!is process of consideration t!e consumer no* purc!ases t!e most
attractive option s!e !as identified.
e. Post purchase evaluation
-!e consumer e4periences !er c!oice and determines if s!e is !appy *it! it.
f. Feedback learning for future consumption behavior
-!e consumer remembers !o* s!e feels about !er purc!ase and ma3es note of it for
future reference 8internal searc!:.
OB1ECTIVE OF STUDY
PRIMARY
1. -!e need for an understandin& of t!e or&ani'ational buyin& process !as &ro*n in
recent years due to t!e many competitive c!allen&es presented in business2to2business
mar3ets. Since 19"$ t!ere !ave been a number of 3ey c!an&es in t!is area5 includin&
t!e &ro*t! of outsourcin&5 t!e increasin& po*er enjoyed by purc!asin& departments
and t!e importance &iven to developin& partners!ips *it! suppliers.
2. -!e or&ani'ational buyin& be!avior process is *ell documented *it! many models
depictin& t!e various p!ases5 t!e members involved5 and t!e decisions made in eac!
p!ase. -!e basic five p!ase model can be e4tended to ei&!tB purc!ase initiationB
evaluations criteria formationB information searc!B supplier definition for )1UB
evaluation of =uotationsB ne&otiationsB supplier9s c!oiceB and c!oice implementation
8,atbuy5 19"6:.
3. -!e buyin& centre consists of t!ose people in t!e or&ani'ational t!at are involved
directly or indirectly in t!e buyin& process5 i.e. t!e user5 buyer influencer5 decider and
&ate3eeper to *!o t!e role of Vinitiator9 !as also been added. -!e buyers in t!e
process are subject to a *ide variety and comple4ity of buyin& motives and rules of
selection. -!e ,atbuy model encoura&es mar3eters to focus t!eir efforts on *!o is
ma3in& *!at decisions based on *!ic! criteria.
SECONDARY
26
1. )is3 and uncertainty 2 t!e drivin& forces of or&ani'ational buyin& be!avior is
concerned *it! t!e role of ris3 or uncertainty on buyin& be!avior. -!e level of ris3
depends upon t!e c!aracteristics of t!e buyin& situation faced. -!e supplier can
influence t!e de&ree of perceived uncertainty by t!e buyer and cause certain desired
be!avioral reactions by t!e use of information and t!e implementation of certain
actions. -!e ris3s perceived by t!e customer can result from a combination of t!e
c!aracteristics of various factors> t!e transaction involved5 t!e relations!ip *it! t!e
supplier5 and !is position vis2W2vis t!e supply mar3et.
2. -!ree 3ey factors are s!o*n to influence or&ani'ational buyin& be!avior5 t!ese are5
types of buyin& situations and situational factors5 &eo&rap!ical and cultural factors
and time factors.
3. Purc!asin& Strate&y. -!e purc!asin& function is of &reat importance because its
actions *ill impact directly on t!e or&ani'ation9s profitability. Purc!asin& strate&y
aims to evaluate and classify t!e various items purc!ased in order to be able to c!oose
and mana&e suppliers accordin&ly. #lassification is alon& t*o dimensions> importance
of items purc!ased and c!aracteristics of t!e supply mar3et. 0ctions can be ta3en to
influence t!e supply mar3et. %ased on t!e type of items purc!ased and on its position
in t!e buyin& matri45 a company *ill develop different relations!ips *it! suppliers
dependin& upon t!e number of suppliers5 t!e supplier9s s!are5 c!aracteristics of
selected suppliers5 and t!e nature of customer2supplier relations!ips. -!e de&ree of
centrali'ation of buyin& activities and t!e missions and status of t!e buyin& function
can !elp support purc!asin& strate&y. -!e company *ill adapt its procedures to t!e
type of item purc!ased *!ic! in turn *ill influence relations!ips *it! suppliers.
(. -!e future. -*o activities *!ic! *ill be crucial to t!e future development of
or&ani'ational buyin& be!avior *ill be information tec!nolo&y and production
tec!nolo&ies.
SCOPE OF THE STUDY
27
#onsumer e4pectation5 attitudes and perception about or&anic foods !ave or are
currently bein& studied. -!e E/2project O,Ia). project !as produced t!e most
compre!ensive statistics so far on t!e scope and dimensions of t!e or&anic mar3et in
Europe and *ill s!ortly provide more detailed insi&!ts from focus &roup and
ladderin& intervie*s *it! re&ular and occasional consumers. .ata sets are or *ill be
soon available from survey based studies in several E/ countries. Co*ever5 it is
currently difficult to compare consumer surveys from different E/2countries because
a ran&e of different =uestionnairesGsurvey approac!es is used.
28
CHAPTER 3
COMPANY PROFILE
29
CHAPTER 4
30
REVIEW OF LITERATURE
Definition of Cellular/Mobile phone
8commonly Kmobile p!oneK or Kcell p!oneK or K!andp!oneK: is a lon&2ran&e5
portable electronic device used for mobile communication. In addition to t!e standard
voice function of a telep!one5 current mobile p!ones can support many additional
services suc! as S,S for te4t messa&in&5 email5 pac3et s*itc!in& for access to t!e
Internet5 and ,,S for sendin& and receivin& p!otos and video. ,ost current mobile
p!ones connect to a cellular net*or3 of base stations 8cell sites:5 *!ic! is in turn
interconnected to t!e public s*itc!ed telep!one net*or3 8PS-@: 8t!e e4ception is
satellite p!ones.#ellular telep!one is also define as a type of s!ort2*ave analo& or
di&ital telecommunication in *!ic! a subscriber !as a *ireless connection from a
mobile telep!one to a relatively nearby transmitter. -!e transmitter6s span of covera&e
is called a cell. Senerally5 cellular telep!one service is available in urban areas and
alon& major !i&!*ays. 0s t!e cellular telep!one user moves from one cell or area of
covera&e to anot!er5 t!e telep!one is effectively passed on to t!e local cell transmitter.
0 cellular telep!one is not to be confused *it! a cordless telep!one 8*!ic! is simply
a p!one *it! a very s!ort *ireless connection to a local p!one outlet:. 0 ne*er
service similar to cellular is personal communications services 8P#S:.
Brand preferences and advertisement
Students leant about cellular p!one from many sources5 mainly from friends
and families5 t!rou&! advertisement and from t!eir o*n e4perience. 7!et!er a
promotion and advertisin& !urt or !elp a brand is under2researc!ed 8,ela5 Supta N
+e!man5 199:. In t!e lon&2run5 advertisement !elp brands by ma3in& consumer less
price sensitive and more loyal. E4posure of an ad is crucial to be effective in c!an&in&
consumer 3no*led&e5 attitude and be!aviour 8Evans5,outin!o N Lan )aaj5 1996:.
0nd for t!e ad to be seen5 it must &rab t!e attention of its tar&et audience. V0ds
ori&inality9 as defined from Pietes5 7arlop and 7edel5 82$$2: *ere easier for
customer to remember t!an ordinary ads by increasin& attention to it. -!is t!us
increased attention to t!e brand bein& advertised.Co*ever5 re&ardless of t!e content5
ads for brand leaders are more successful due to t!e influence of t!e brand 8Simon5
19$:. 0ds for less popular brands may be less successful even t!ou&! t!e content
may be &ood.+i3in& to*ards t!e brand itself can influence li3in& for t!e brand
31
8Ca*3ins5 %est N #oney5 1992:. Co*ever accordin& to study by %ie!al5 Step!ens and
#urlo 81992: *!et!er consumers li3e or disli3e an ad does not necessarily lead to
brand acceptance or rejection. So5 even t!ou&! consumers may li3e t!e ad t!at t!ey
see5 it does not necessarily mean t!at t!ey *ill &o out and buy t!e brand
advertised./sually t!e consumer uses t!eir attitude to*ards t!e ad 80ad: in brand
c!oice e=ualed t!at of attitude to*ards t!e brands 80%:.
0dvertisers must remember t!at advertisin& messa&es are interpretend
differently bet*een different &enders 8,aldonando5 -ansu!aj N ,ue!lin&5 2$$3B
Co&& N Sarro*5 2$$3B Putrevu5 2$$1:.Prevoius study !ave proven t!at females *ere
more li3ely to en&a&ae in elaboration t!an men 8,aldonado N ,ue!lin&5 2$$3:.
Co&& and Sarro* 82$$3: found t!at *omen paid more intention about t!e details of
t!e c!aracters of an ad *!en as3ed to analy'e advertisin& messa&es. -!ey said t!at
t!is may be e4plained by t!e fact t!at females !ave a &reater tendency t!an men to
consider e4ternal information and information related to ot!ers. 7omen are
Vcompre!ensive processors9 *!o try to &at!er all available information about t!e
product.In buildin& brand preferences5 0lrec3 and Settle 81999: proposed si4
strate&ies>1:@eed association2 t!e productGbrand lin3ed to need t!rou&! repeated
messa&es.2:,ood associations2 brands s!ould be associated *it! &ood feelin&s
t!rou&! slo&ans5son&s.3:Subconscious motivation2use of symbol to e4cite consumers9
subconscious motives.(:%e!aviour modification2consumers are conditioned to buy
t!e brand by controllin& cues and re*ards.5:#o&nitif processin&2penetratin&
perceptual and co&nitive barriers to create favourable attitudes to*ards t!e
brandGproduct.6:,odel emulation2 portrayin& ideali'ed lifestyles for consumers to
imitate.
Co*ever5 t!is study focused only on t!e symbolic or tan&ible elements in
influencin& brand preference. It did not discuss tan&ible aspects 8i.e product
c!aracteristics: of influencin& brand preference. 0dvertisement can c!an&e
consumer9s perception of a product in terms of attributes content and proportion and
also influence consumer9s taste for attributes 8 S*in N S*in5 2$$3:
Brand preference and product attribute
0ttributes are t!e c!aracteristic or features t!at an object may or may not !ave
and includes bot! intrinsic and e4trinsic 8,o*en N ,inor5 199": .%enefits is t!e
32
positive outcomes t!at come from t!e attributes. People see3 products t!at !ave
attributes t!at *ill solve t!eir problems and fulfils t!eir needs 8,o*en N ,inor5
199":. /nderstandin& *!y a consumer c!oose a product based upon its attributes
!elps mar3eters to understand *!y some consumers !ave preferences for certain
brands 8S*in N S*in5 2$$3:. In t!e study by S*in and S*in 82$$3:5 t!e +ancaster
model of consumer demand 819665 199:5 also reffered to as t!e product attributes
model5*as used to evaluate brand positionin&.-!is model assumes t!at consumer
c!oice is based on t!e c!aracteristics 8or attributes: of a brand.Eac! product is
abundle of attributes and t!at c!oice is based on ma4imi'in& utilityGsatisfaction from
t!e attritubes subject to bud&et constraints. Co*ever t!ere *ere t*o limitataions of
t!e model> 81: t!e model is static and deterministic and 82: t!e model does not e4plain
!o* t!e preferences for attributes *ere formed.-!is article also also didi not mention
if e4perience *it! t!e product played a part in influencin& attributes preferences.
%ot! tan&ible nad intan&ible attributes of a product are e=ually important in
c!oosin& a product or brand 8,yers5 2$$3:. -!ere is no evidence t!at certain
attributes are more related to customer loyalty t!an ot!ers 8)omariu3 N S!arp5 2$$3:.
It *as5 found t!ou&!5 t!at t!e more attributes 8non2ne&ative: associated *it! a brand5
t!e more loyal t!e customer 8)omariu3 N S!arp52$$3:.)omariu3 and S!arp 82$$3:
su&&ested t!at mar3eters s!ould focus more on !o* many attributes t!e brand s!ould
be associated *it! and not *!at attributes. Co*ever5 t!is study did not specify *!at
sort of attributes mar3eters s!ould associate t!e brand *it!B i.e. *!et!er t!ey s!ould
be relevant or irrelevant attributes5 tan&ible or intan&ible etc.-!is is because it is
important t!at consumer accurately lean about product attribute performances since it
*ould influence t!eir interpretations of product performance by causin& memory
encode and retrieval bias./nfounded product attribute relations!ip beliefs can mislead
t!em into e4pectin& somet!in& t!at is not t!ere.8,ason N %e=uette5 199":. Cence if
products fall s!ort of customer e4pectataions5t!en dissactisfaction *ould
result.@evert!eless5 it *as found t!att!rou&! irrelevant5 some attributes may still be
important in influencin& consumer c!oice.Persistent preferences for product attribute
soccurs *!en t!ere is lo* ambi&uity in t!e initial potential c!oice for salient attributes
coupled *it! e4perience5alt!ou&! t!ose attributes maybe irrelevant 8i.e. an attributes
usually not associated *it! favourable brand outcomes 8,ut!u3ris!nan N Dardes5
2$$1:. #onse=uently5 ,ason and %e=uette 8199": also said t!at perceptions on
product performance based on salient attributes are more important in influencin& t!e
33
consumer purc!ase be!aviour t!an actual product attribute performances. Similarly5
,yers 82$$3: concluded t!at brand e=uity may be more influenced by attribute
3no*led&e more t!an consumer preference.1or lo*2involvement products5 consumers
!ave more objective vie* of t!e nature of t!e attrinutes 8e&. food5 cosmetics: because
t!ey are constantly bein& advertised and promoted.Similarly )ioo5 Las=ue' and
I&lesias 82$$1: su&&&eated t!at consumer evaluation of a product can be bro3en do*n
into evaluation related to product 8tan&ible or p!ysical attributes: and brand name
8intan&ible attributes5 or ima&es added to t!e product due to its brand names:. In !is
study on t!e relations!ip bet*een !uman values and consumer purc!ases5 0llen
82$$1: found t!ere *as a si&nificant association bet*een !uman values 8e&.
!edonistic5 ac!ievement5 self2direction5 conformity5 security etc.:5 product preference
and tan&ible attribute importance *it! !o* consumers perceive t!e product 8i.e
tan&ible attributes: and !o* t!ey evaluate t!e product 8i.e symbolic
meanin&5tan&ibleGintan&ible attribute importance:. Cuman values influence t!e
importance of t!e product9s tan&ible attribute importances t!at are already important
to consumers.Co*ever perception of product performance on t!e salient attributes are
more important t!an actual performance 8,ason N %e=uette5 199":.,o*en and
,inor 8199": su&&ested t!at mar3etin& mana&ers s!ould 3no* t!e attributes t!at
consumers e4pect in a product and !o* positively or ne&atively t!ey rate t!ese
attributes to !elp develop and promote a successful product.)etailers need to be
3no*led&eable of t!e product attributes perceived as t!e most important by eac!
individual consumer &roup in order to build and maintain mar3et s!are 87arrin&ton N
S!im5 2$$$:. It is t!e consumer *!o determines *!ic! attributes matter to t!em.
.ifferent consumer &roups place different importance ondifferent attributes
87arrin&ton N S!im52$$$:.It *as found t!at consumers cate&orie' as +PGS% 8lo*
product involvementGstron& brand commitment: placed &reater importance on product
attributes and product orientataions t!an +PG7% 8*ea3 brand commitment:
consumers5 *!ic! placed t!e most importance on price.,ar3erters s!ould consider
usin& advertisement5 *!ic! may play a role in ma3in& attributee important to
consumers t!at mi&!t not !ave been considered before 8S*in N S*in5
2$$3:5)omariu3 N S!arp 82$$3: su&&ested t*o objectives of s!ort2term and lon&2
term brand buildin&. In t!e s!ort term5 mana&ers need to identify a specific attributes
to be communicated to t!e mar3et5based on *!ic! messa&e &ave t!e best
e4ecution.-!e 3ey aim is to develop li3eable advertisement.In t!e lon&2run5mana&ers
34
need to build up a Vban39 of consumer perception about t!e brand to ma3e it t!e one
most often t!ou&!t of and ma3e it difficult for competitors to !ave access to t!e minds
of consumers 8)omariu3 N S!arp5 2$$3:.-!e brand name of t!e product itself is an
important attribute. %rands !ave bot! functional 8product2related: and symbolic
dimensions 8del )io5Las=ue' N I&lesia'5 2$$1:5 On t!e product related benefit side5
consumer evaluate product performance based on its capabilities5 usa&e effectiveness5
value for money and reliability. -!e purc!ase and consumption of products is
increasin& re&arded by consumers as an indirect *ay of communication to improve
t!eir self ima&e and deliver certain impressions to ot!er people in t!eir environment
8del )io5Las=ue' N I&lesia'5 2$$1:5 -!erefore t!e brand name benefits perceived by
consumers is !i&!ly interrelated to t!e product2based benefits. %i& brand means a
better ima&e and a better product 8del )io5Las=ue' N I&lesia'5 2$$1:5 Co*ever5 as
mention earlier5 ,ason and %e=uette 8199": su&&ested t!at Similarly ,yers 82$$3:
concluded t!at brand e=uity mi&!t be influenced by attribute 3no*led&e more t!an
consumer preference. -!is may be due to consumer biasness and prejudice5
#onsumers9 product evaluations are influenced by memory. -!e biasness can be
reduced by !avin& current information5 e4perience and 3no*led&e 8,ason and
%e=uette 5199":. -!erefore5 it9s not surprisin& t!at brands t!at consumers believe
offer superior value are most preferred brands c!osen often 8,yers5 2$$3:. %rands
*it! !i&!er e=uity resulted in &reater preferences and !i&! mar3et s!ares. Price is
anot!er form of attribute used by consumers to evaluate a product. Price can
sometimes be an indicator of =ualityB *it! a !i&!er price indicatin& !i&!er =uality
8,o*en N ,inor5 199"B Siu N 7on&5 2$$2:. #onsumers perceive t!at a !i&!er price
can be attributed to t!e !i&!er cost of =uality control 8Siu N 7on&5 2$$2:. Some
consumers are !i&!ly price sensitive 8elastic demand:5*!ereby a !i&! prices may s!ift
consumers to competitive brands 8,o*en N ,inor5 199":. -!erefore price can !ave a
positive or ne&ative influence on customers.
35
CHAPTER 5
RESEARCH METHODOLOGY
Research Problem
-o ma3e a compre!ensive study of Live3s N 3no* t!e %uyin& be!aviour N of
Live3s customers .
A) TYPE OF RESEARCH
36
.escriptive type researc! !as used to complete t!e project. -!is researc! is base
on fact findin& en=uires and t!e variables are totally independent and uncontrollable.
B) DATA COLLECTION:
Primary Data
Primary data of researc! are collected from direct resources 8customer of Live3s:
t!rou&! =uestionnaire.
Secondary Data
Secondary .ata *!ic! are used for researc! to 3no* t!e !istory scope of )etail
industry are collected from already available resources li3e net and ot!er sources
Universe
/niverse of t!is researc! is Live3s customer of .el!i.
C) SAMPLING DESIGN
)andom samplin& is used for researc! project. I !ave &iven e=ual *ei&!t a&es to my
all respondent and c!ose t!em randomly *it!out any biased li3e &ender5 a&e5 income
culture.
D) SAMPLE SIZE
(25 respondents !as selected as sample si'e for researc!.
DATA REPRESENTATION TECHNIQUE AND TOOLS
#olumns c!art N Pie c!art !as used for representation
LIMITATION OF THE STUDY
-!e project !as some limitations because it is totally based on efforts of
individuals. Peoples may be careless and may not &ive correct ans*er to t!e
=uestions5 because of so many reasons.
It is totally based on personal efforts of individuals.
Some of t!e consumers are unable to understand t!e =uestionnaire.
37
+an&ua&e is one of t!e *orst problem5 some of t!e consumers are unable
to understand En&lis!.
Some consumers are not interested in fillin& =uestionnaire.
CONCLUSION
Inventive applications for 0rtificial +ife are bein& proposed from a variety of sources.
%ruce Dlem'5 *!ose *or3 definitively establis!es t!e advanta&es of neural net*or3
models as a preferable c!oice to re&ression based mar3etin& mi4 modellin&5 uses
evolvin&G&ro*in& strate&ies for pricin& decisions. 7it! a&&re&ate sales data Dlem'
8199": estimates timin& rules for t!e coffee mar3et. 0 set of assumptions for price
c!an&es amon& brands leads to a best set of rules for lo*erin&5 !oldin&5 or increasin&
prices to ma4imi'e s!are. Simulations evolve in a *orld *!ere eac! &eneration of
c!an&es are &ro*n from t!ose t!at best increase mar3et s!are.
0 novel model is used by ,ar3s et al 8199": to create a synt!etic set of brand
mana&ers and monitor t!eir decisions. )esults of t!eir modellin& ;provide mus!
insi&!t into t!e !istoric patternsXin a mar3et5 as *ell as revellin& !o* brand
mana&ers mi&!t learn to improve t!eir profitability and competitiveness by
consideration of t!e patterns and strate&ies learnt by t!e artificial brand mana&ers X<
7!at 0life creates is t!e ve!icle for innovation. )esearc!ers are no lon&er restrained
by tec!ni=ues t!at do not naturally symboli'e t!e be!aviour of t!e mar3etplace.
0rtificial +ife simulations directly c!aracteri'e t!e environment in *!ic! *e d*ell.
)esults in t!is line of study *ill demonstratively increase our ability to provide
innovation.
1. -o understand consumers9 level of involvement *it! a product and t!e types
of consumer problem2solvin& processes
2. -o reco&ni'e t!e sta&es of t!e consumer buyin& decision process
3. -o e4plore !o* situational influences may affect t!e consumer buyin&
decision process
(. -o understand t!e psyc!olo&ical influences t!at may affect t!e consumer
buyin& decision process
38
5. -o e4amine t!e social influences t!at affect t!e consumer buyin& decision
process
I +evel of Involvement and #onsumer Problem2Solvin& Processes
I #onsumer %uyin& .ecision Process
I Situational Influences on t!e %uyin& .ecision Process
I Psyc!olo&ical Influences on t!e %uyin& .ecision Process
I Social Influences on t!e %uyin& .ecision Process
I %uyin& %e!aviour
-!e decision processes and acts of people involved in buyin& and usin&
products
I #onsumer %uyin& %e!aviour
%uyin& be!aviour of people *!o purc!ase products for personal use and
not for business purposes
39
CHAPTER 6
Model of Buying Behaviour
Marketin
g Other Buyer`s Buyer`s Buyer`s
40
Stimuli Stimuli
Characterist
ics Decision Decision
Process

Product Economic #ultural
Problem
reco&nition Product c!oice
Price
-ec!nolo&ica
l Social
Information
Searc! %rand c!oice
Place Political Personal Evaluation .ealer c!oice
Promotion #ultural
Psyc!olo&ica
l .ecision Purc!ase timin&
Post purc!ase Purc!ase amount
%e!aviour

7!en I !ave analysed t!e model of buyin& %e!aviour findin& t!at people of .E+CI
are influenced by t!e mar3etin& stimuli 8( P9s: people are focused on price rat!er t!an
product5 place and promotion5 ot!er factor *!ic! influenced people is t!e
tec!nolo&ical advancement.
Cultural Social
Personal
culture
)eference
Sroups Psychological
#ycle Sta&e ,otivation
Subculture 1amily Economic Perception
#ircumstances +earnin&
+ife Style %eliefs and 0ttitudes
%/FE)
)oles and
Statuses Personality and
Social #lass Self #oncept
41
)eference &roups can !ave potent influence on be!aviour in &eneral5 and t!ey may
also be very influential on consumer be!aviour5 considerin& t!e V#onsumer Soods
Se&ment9. 1amily and friends in specific are considered before ma3in& a decision
about purc!asin& a product. %ut t!eir purc!ase decision depends completely on self2
opinion.
7!ere reference &roups9 influence is operative5 t!e advertiser s!ould stress not only
t!e people *!o buy t!e product but also t!ose *!o influenced t!e purc!asin&
decision.
-!e process may be vie*ed as startin& *!en t!e consumer en&a&es in problem
reco&nition. Problem reco&nition occurs *!en t!e consumer is activated by a*areness
of a sufficient difference bet*een !is G !er concept of ideal situation. -!e action
occurs only *!en t!e consumer perceives a sufficiently lar&e discrepancy bet*een t!e
actual and ideal states.
Siven t!at t!e consumer is aroused to action5 t!e ne4t state is internal searc! for a
=uic3 and lar&ely unconscious revie* of memory for stored information and of an
e4perience re&ardin& t!e problem. -!is information in t!e form of beliefs and attitude
influence t!e consumer9s preference to*ards band. If an internal searc! does not
provide sufficient information about
Products5 or !o* to evaluate t!em5 t!e consumer continues *it! a more involved
e4ternal searc! for information.
0ny information stimuli are t!en subjected to information processin& activities. -!is
process involves allocatin& attention to available stimuli5 derivin& meanin& from t!ese
stimuli. -!e alternatin& evaluation p!ase involves comparin& t!e information &ained
in t!e searc! process for alternative product and brands to t!e product jud&in& criteria
on standards t!e consumer !as developed. 7!en suc! a comparison leads to
favourable evaluations5 t!e consumer is li3ely to develop a purc!ase intention to*ards
t!at alternative t!at received t!e most favourable evaluation.
0 purc!ase process follo*s stron& purc!asin& intentions. -!is involves a series of
selection5 includin& t!e type of retail outlet as *ell t!e specific brand on service to
use. -!e consumer9s purc!ase t!en leads to various outcomes. One suc! outcome is
satisfaction as a result of direct e4perience in usin& t!e brands. Satisfaction *ill affect
t!e consumer9s belief about t!e brand. Ot!er outcome is dissatisfaction and post sale
doubt.
42
,any ad a&encies conducted an in2dept! study of consumer buyin& be!aviour and
found t!at t!ey all crave for peer acceptance and parental non2influence. %eyond t!is
t!ey are an eni&ma

Gender of the consumer
43

Data Collected-
.ata collected for t!is =uestionnaire to 3no* t!e &ender of
customer of Live3s.
ANALYSIS
.ata collected for project from (25 responded in *!ic! 25 are
female *!ic! are 6(.R and 15$ are male *!ic! are 35.29R of total respondent
Interpretation-
In total respondent *e analyses t!at most of t!e customer in
t!is store is female and t!eir demand al*ays consider at t!e time of ta3in& t!e
decision. #ompany s!ould try to attract ne* male customer by provide ne* sc!eme
on t!eir customer
,ale N 1emale
15$ 25
44
Age of customer
1$22$ 2125$ 51N above
123 23$ 2
Data Collected-
.ata collected for t!is =uestionnaire to 3no* t!e a&e of
customer of Live3s.
ANALYSIS
.ata collected for project from (25 responded in *!ic! 123 are t!e
a&e bet*een 1$22$ *!ic! are2".9R and23$are bet*een a&e of 2125$ *!ic!
are5(.29Rand 2 are bet*een a&e of 51 N above *!ic! are 16.9 R of total
respondent
Interpretation-
In total respondent *e analyses t!at most of t!e customer are
yout! .In my observation I found t!at most ne* people believe in convenience
s!oppin& It !elp t!e company to 3eep mana&ement suc! type *!ic! understand t!e
problem of customer easily and rectify t!e problem effectively
45
How offer do you market
.aily 8 : *ee3 8 : fortni&!tly 8 : once in mont! 8 :
Data Collected-
.ata collected for t!is =uestionnaire to 3no* t!e s!oppin& be!aviour
of customer of Live3s.
ANALYSIS
.ata collected for project from (25 responded in *!ic! 22 are li3e
to purc!ase year end *!ic! are5.1R and22( are li3e to purc!ase *ee3ly *!ic!
are52.2Rand "9 are li3ely to purc!ase fortni&!tly *!ic! are 2$.9R5 9$ li3ely to
purc!ase once in a mont! *!ic! are21.1R of total respondent
Interpretation-
.aily 7ee3 1ortni&!tly Once in mont!
22 22( "9 9$
46
In total respondent *e analyses t!at most of t!e customer are
li3ely to purc!ase on year end .in my observation I found t!at more sc!eme s!ould
be provided on *ee3end.
Preference of shopping?
Uuality 8 : %rand 8 : Price 8 : one stop s!op
Quality brand Price One stop shop
1$2 13( 59 13$

Data Collected-
.ata collected from t!is =uestionnaire to 3no* t!e
preference t!e s!oppin&
ANALYSIS
.ata collected for project from (25 responded in *!ic! 13(
customer are believe in reliance brand *!ic! are31.5$R and13$ are li3e to purc!ase
in one stop s!op *!ic! are 3$.5(Rand 1$2 are li3e to purc!ase =uality product *!ic!
are 2(.$$R5 only 59 respondent consider price *!ic! are 13.$".R.
Interpretation
In total respondent *e analyses t!at most of t!e customer are
believe in reliance brand li3e to purc!ase =ualitative product in stop s!op. Cere I
observed t!at people *ant to purc!ase fres! and ori&inal product and *ant better
service.
47
which store do you kept in preference for purchasing
Live3s 8 : %i& apple 8 : ot!er 8 : +ocal mar3et
Local market Viveks Apple tech Other
2(( "3 "$ 1"
0
50
100
150
200
250
Viveks Big apple Local market other
Data Collected-
.ata collected from t!is =uestionnaire to 3no* t!e
preference of t!e purc!asin& 8comparison of store to ot!er:.
ANALYSIS-
.ata collected for project from (25 responded in *!ic! 2((
customer are li3e to purc!ase from local mar3et *!ic! are5.(R and "3 are li3e to
purc!ase from Live3s *!ic! are19.51Rand "3 are li3ely to purc!ase from apple tec!
*!ic! are 1"."2.R5 1" li3ely to purc!ase ot!er *!ic! are(.2R of total respondent
Interpretation
48
In my observation I found till today or&anised retail sector
didn9t penetrate t!e mar3et. #ompany s!ould try to open ne* convenience store and
provide more sc!eme and &ood service to customer to penetrate t!e mar3et. Initial it
may be costlier5 but it *ill &ive lon& term benefit.
Do advertisement and promotion influence your shopping decision?
Fes 8 : @o 8 :
Yes No
39$ 35
Data Collected2
.ata collected from t!is =uestionnaire to 3no* t!e effect of
promotion sc!eme on purc!asin&.
ANALYSIS
.ata collected for project from (25 responded in *!ic! 39$
customer are li3e promotion sc!eme *!ic! are91.6R and 35 are t!ose people *!ic!
say promotion sc!eme doesn9t effect on purc!asin&.
Interpretation
In my observation I found promotion sc!eme is must to sustain customer attract
customer N influence t!e purc!asin&.
49
Are Promotion scheme easy to understand
Fes 8 : @O 8 : some time 8 :
Yes no Some time
21" "9 11"
Data Collected-
.ata collected from t!is =uestionnaire to 3no* display of
promotion sc!eme..
ANALYSIS-
.ata collected for project from (25 responded in *!ic! 21"
customer say yes *!ic! are51.29R and "9 are t!ose *!ic! say no *!ic! are 2$.9(
and 11" say some time.
Interpretation-
#ompany s!ould try ma3in& promotion sc!eme easy understandable5 promotion
sc!eme s!ould be in bot! in En&lis! N Cindi
50
How likely are you to recommend Viveks to a friend or relative? Would you say
the chances areH
E4cellent 8 : Sood 8 : 1air 8 : Poor 8 :
Excellent Good Fair Poor
29 19" 19$ "
Data Collected
.ata collected from t!is =uestionnaire to 3no* t!e
satisfaction level of customer.
ANALYSIS
.ata collected for project from (25 responded in *!ic! 29
customer say e4cellent *!ic! are6."R and19 " say &ood *!ic! are (6.6R5 19$ say
fair *!ic! are ((.R and " customer are t!ose say poor
Interpretation
51
In my observation I found t!at only (6.6R customer are fully satisfied
from t!e store company s!ould try satisfy t!e customer by providin& better service
and rectify t!eir problem immediately.
Which form of advertisement do you think is most effective?
Print 8 : -L 8 : )adio 8 : telep!one 8 :
Print TV Radio Telephone
( 119 56 16
Data Collected-
.ata collected from t!is =uestionnaire to 3no* t!e better
advertisement mode of promotion.
ANALYSIS-
.ata collected for project from (25 responded in *!ic! 119
customer say -L *!ic! are2"R and ( say print *!ic! are 1.(R5 56 say )adio
*!ic! are 13.1R and 16 customer are say telep!one.
Interpretation -
0ccordin& responded result company can c!oose telep!one as best
for advertisement and call indusial for attractin& t!e customer
52
Did you get help from CSA when asked?
Fes 8 : @o 8 : some time 8 : @ever 8 :
Yes NO Some time Never
192 95 12( 1(
Data Collected
.ata collected from t!is =uestionnaire to 3no* about #S0
performance.
ANALYSIS
.ata collected for project from (25 responded in *!ic! 192
customer say yes *!ic! are (5.1R and 95 say no *!ic! are 22.35R5 12( say some
time *!ic! are 29.1R and 1(customer are say never *!ic! are 3.25R.
Interpretation
0ccordin& respondent customers are not fully satisfied company
s!ould recruit ne* s3illed employee for better performance
53
CHAPTER 7
54
FINDINGS
1. ,ajority of customers !ere is female.
2. ,ajority of customers are youn&.
3. ,ajority customers li3e to purc!ase all &oods from .i&ital -rac3 .
(. #ustomers li3e one stops s!oppin&.
5. +ocal mar3et till today is t!e first c!oice of customer.
6. 0dvertisement is t!e bi&&est *ay to attractin& t!e customer.
. Promotion sc!eme not so easy to under stand for customer.
". ,ost of customer is not fully satisfied *it! store.
9. -ele p!one is t!e best *ay for attractin& t!e customer.
1$. S!orta&es of s3illed *or3ers.
SUGGESTIONS
,ore promotion sc!eme s!ould be used to penetrate t!e mar3et.
S3illed employees s!ould be !i&!er because mostly customers are youn&.
Promotion sc!eme s!ould in suc! *ay t!at customer can understand
easily.
Service of store s!ould be providin& in suc! *ay *!ic! full t!e need of t!e customer
55
CONCLUSIONS
-!e study of !o* and *!y people purc!ase &oods and services is termed consumer
buyin& be!aviour. -!e term covers t!e decision2ma3in& processes from t!ose t!at
precede t!e purc!ase of &oods or services to t!e final e4perience of usin& t!e product
or service. ,odels of consumer buyin& be!aviour dra* to&et!er t!e various
influences on5 and t!e process of5 t!e buyin& decision. -!ey attempt to understand t!e
proverbial 6blac3 bo46 of *!at !appens *it!in t!e consumer bet*een !is or !er
e4posure to mar3etin& stimuli and t!e actual decision to purc!ase.
.ue to t!e potential benefits arisin& from ensurin& customer satisfaction5 service firms
need to be ever vi&ilant about deliverin& services *!ic! bot! satisfy t!e customer and
are cost effective for t!e or&anisation. 0s you !ave no* discovered5 merely satisfyin&
customers may not be sufficient to retain t!em5 *e must deli&!t t!em.
0 point t!at is easily for&otten is t!at it is t!e customer *!o determines customer
satisfaction5 not t!e or&anisation. -!e or&anisation can only !ope to measure as
accurately as possible customer perceptions.
7e !ave found in t!is c!apter t!at *!ile t!ere is no universally accepted definition of
service =uality5 some definitions are of use to us. 7e !ave differentiated service
=uality from customer satisfaction and !ave e4amined in dept! t!e five &aps in
service =uality model.
56
Questionnaire
)espondent .etails
@ame >
0&e >
Sender >
0ddress >
,obile >
U1 *!ic! product do you prefer in our concernH YYYYYYYYYYYYYY
U2 Co* lon& a&o did you purc!ase in our concernH
0: +ess t!an t!ree mont! a&o
%: 326 mont! a&o
#: 212 mont! a&o
.: 7it!in past 2 years
E: ,ore t!an 2 years a&o
U3 7!ic! of t!e follo*in& statement is best c!oice for you *!en purc!asin& a
productsH
0: Style
%: Infotainment
#: ,ultimedia
.: %usiness
E: #onnected
U( 7!ic! one of t!e follo*in& option you c!oose *!en purc!asin& a productH
0: #alls
%: S,S
#: %ro*se t!e internet
.: -a3e P!otos
E: #!ec3 emails
1: )ecord video
57
S: ,usic
C: ,obile -L
U5 1or *!at reason you c!oose t!e productH
0: #onvenience Candset
%: #ost control
#: Lalue added Service
.: .iscounts
U6 7!ic! factors influenced you in purc!asin& t!e product brand you are
currently usin&H
0: PriceGOffers
%: %rand name
#: 0vailability in store
.: .ifferent si'e
E: ,obile battery
U Select follo*in& option is in store mar3etin& materials t!at may impact
s!opper9s purc!ase decision for productsH
0: In store -L
%: %roac!ers
#: .an&ler
.: 1loor standee
E: Poster
1: +eaflet
U" Fou consider o*in& a mobile !andset as a
0: @ecessity
%: Status
#: +u4ury
U9 7!ic! one of t!e follo*in& best describes your current employment statusH
0: Employed full time
%: Employed part time
#: Self employed
.: 1ull time !ome ma3er
E: 1ull time student
U1$ *!ic! is t!e follo*in& best describe t!e !i&!est level of education you !ave
completedH
58
0: Elementary sc!ool &raduate
%: ,iddle sc!ool &raduate
#: Ci&! sc!ool &raduate
.: /niversity de&ree
E: Post &raduate
U11 7!at is your mont!ly incomeH
0: 1$5$$$2115999
%: 125$$$21$5999
#: 2$5$$$22(5999
.: 255$$$2295999
E: 3$5$$$23(5999
1: 355$$$ and above
U12 7!ic! one of t!e follo*in& features you c!oose *!en purc!asin& productsH
0ttributes
0: .esi&n 22222
%: %rand 222222
#: .urability 222222
U13 0s a consumer *!at are your e4pectations from t!e product re&ardin&
different brandsH
0: #elebrities icon
%: %y mail
#: %rand store
.: ,a&a'ine ads
E: -L ads
1: Posters
S: 1rom relatives
C: @e*spaper ads
U.1( Co* li3ely are you to recommend Live3s to a friend or relativeH 7ould
you say t!e c!ances areH
E4cellent 8 : Sood 8 : 1air 8 : Poor 8 :
U. 15 0re t!e Price of Live3s is lo*er t!an t!e ot!er competitor
Fes 8 : @o 8 : E=ual 8 : no idea 8 :
59
U. 16 7!ic! form of advertisement do you t!in3 is most effectiveH
Print 8 : -L 8 : )adio 8 :
U. 1 .id you &et !elp from #S0 *!en as3edH
Fes 8 : @o 8 : some time 8 : @ever 8 :
60