“A COMPARATIVE STUDY ON BUYING BEHAVIOR OF CONSUMER FOR INDIGENOUS FOOD, COSMETIC AND CLOTH PRODUCT VIS-À-VIS INTERNATIONAL PRODUCTS”
Annexure IV
Chapter Plan
| S.No | Chapter |
| 1 | 1.Introduction to Subject (Theoretical Foundation, Evolution of subject and its Dimensions) 1.1 1.2 1.2.1 |
| 2. | Review of literature , |
| 3 | Need, Objective, Scope & Methodology |
| 4 | One or two chapter based on analysis of data but title of chapter should be based on the problem/issue studied and should not be titled as data analysis. |
| 5 | Summary, Conclusion, Limitations & Recommendations |
| 6 | References |
| 7 | Appendix (Questionnaire, Glossary of Terms, Abbreviations, Documents, Performa, Financial statements etc.) |
Executive Summary
The most challenging concept in the marketing is to deal with understanding the buyer behavior. Consumer Buying Behavior refers to the buying behavior of the final customers, and households who buy products for personal consumption. Where the decision to purchase by a consumer is of emotional significance. Consumers vary tremendously in age, income, education level and tastes and they buy an incredible variety of products. Today market place has become very competitive. So to attract the customers, the company that really understand how consumers will respond to different product features, its brand image, price and advertising appeal has a great advantage over its competitors. Consumer behaviour is affected by many uncontrollable factors and their purchases are strongly influenced by cultural, social, personal and psychological factors. These factors cannot be control by marketers but must be taken into account before launching product or advertising the product. India's consumer market is riding the crest of the country's economic boom. A young population with access to disposable income seems to have facilitated a growth, as global companies make India their favoured destination. Further competition is heating up in the sector with a host of new players coming in. The big players of food include Mcdonald, Kfc, Dominos etc.In cosmetic products the big players are Garnier, Revlon, L’oreal and in cloths there are Lee, levi’s,reid & tailar, Allen solly. One factor that could help the companies in the marketing of their product is by knowing and creating correct promotional schemes through advertisements for the target audience. The objective of the research is to understand the effectiveness of concepts of advertisements and to understand how the advertisements are being perceived on the aspects like likeability, differentiation, relevance and comprehension. The study will analyze the applicability of existing research concepts, and tools for evaluating consumer satisfaction. From the analyzed data, major take outs would be drawn with respect to different top breaks in the data. Graphs and charts would be used to correctly display the crux of the difference in the different sectors and top breaks. Also, interpretations will be taken out on the basis of these graphs to answer the basic research objective and fulfil the same.
A product has many associations which combine to form its total impression. Few would argue that consumers form impressions of brands, and that these impressions later exert a major influence on consumer choice decisions and shopping behaviors.
CHAPTER ( I )
Introduction to the subject
SECTION (A)
Theoretical Foundation
Nothing can be taken for granted for a product. A strong or a weak marketer can succeed if they manage to create a difference. If they don't, failure is the only outcome unless lack of product differentiation is made up through significant price differentiation. It is better to act proactively, thinking of the worst. Else, when things start going the other way, enough time and even money may not be available to differentiate. It is essential that a product has a reason for being purchased which is different from other available products. The days of just being a good product is over. Among a range of good products one with a difference will survive. At the market place it is the survival of the differentiated. On the other hand manufacturers eventually learn market power lies with building their own brands. Japanese and South Korean companies spent liberally to build up brand names such as Sony, Toyota, Gold star, and Samsung. Even when these companies can no linger afford to manufacturer their products in their homelands, the brand manes continue to command customer loyalty
As a consumer we are all unique and this uniqueness is reflected in the consumption pattern and process purchase. The study of consumer behavior provides us with reasons why consumer differ from one another in buying using products and services. We receive stimuli from the environment and the specifics of the marketing strategies of different products and services, and respond to these stimuli in term of either buying or not buying products. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision.
Consumer is the king and it is the consumer determines what a business is, therefore a sound marketing programme start with a careful analysis of the habits, attitudes, motives and needs of consumers. In particular a marketer should find answer to the following questions:
1.What are the products they buy?
2.Why they buy them?
3.How they buy them?
4.When they buy them ?
5.Where they buy them?
6.How often they buy them?
WHAT IS BUYER BEHAVIOUR?
The wealth of products and services produced in a country make our economy strong. Almost all the products, which are available to buyers, have a number of alternative suppliers: substitute products are available to consumers, who make decision to buy products. Therefore a seller most of his time, seeks buyers and tries to please them. In order to be successful, a seller is concerned with.
· Who is the customer?
· What do consumers buy?
· When do consumers buy?
· How do consumers buy?
· From where do consumers buy?
· Why do consumers buy?
A buyer makes a purchase of a particular product or a particular brand and this can be termed product buying motives” and the reason behind the purchase from a particular seller is “patronage motives”
When a person gets his pay packet, and if he is educated, sits down along with his wife and prepares a family budget, by appropriating the amount to different needs. It may happen that after a trip to the market, they might have purchased some items, which are not in the budget, and thus there arises a deviation from the budgeted items and expenditure. all the behaviour of human beings during the purchase may be termed as “buyer behaviour”.
The importance of understanding consumer behavior
“Consumer behavior is the dynamic interaction of affect and cognition, behavior and environmental events by which human beings conduct the exchange aspects of their lives.” Companies are interested in consumer behavior because they can develop marketing strategies to influence consumers to purchase their products based on consumer analysis. The success of a company’s marketing strategy will depend on how buyers react to it. To find out what satisfied customers, marketers must examine the main influences on what, where, when and how customers buy goods and services. By understanding these factors better, marketers are better able to predict how consumers will respond to marketing strategies. Ultimately, this information helps companies compete more effectively in the marketplace and leads to more satisfied customers.
Ø Dimensions:-
Stages of the Consumer Buying Process:
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next.
The 6 stages are:
1.Problem Recognition-difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat.Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.
2.Information search-- Internal search, memory. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. A successful information search leaves a buyer with possible alternatives, the evoked set.Hungry, want to go out and eat, evoked set is
· Chinese food
· Indian food
· burger king
3.Evaluation of Alternative--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choices then return to the search phase. Can you think of another restaurant? Look in theyellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives.
4.Purchase decision-Choose buying alternative, includes product, package, store, method of purchase etc.
5.Purchase-May differ from decision, time lapse between 4 & 5, product availability.
6.Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.
Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc.After eating an Indian meal, may think that really you wanted a Chinese meal instead.
Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
•Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation.
•Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk:
•Personal risk
•Social risk
•Economic risk
The four type of consumer buying behavior are:
· Routine Response/Programmed Behavior--Buying low involvement frequently purchased low cost items; need very very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.
· Limited Decision Making--Buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand.
· Extensive Decision Making:-Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding.Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process.
· Impulse buying:- no conscious planning.The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next.For example:Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.
Factors Effecting the Consumer Buying Decision Process
A consumer, making a purchase decision will be affected by the following three factors:
1.Cultural and sub culture Factor
2.Social Factor
3.Personal Factor
Culture and Sub-culture--
Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation.Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health, education, individualism and freedom. In American culture time scarcity is a growing problem that is change in meals. Big impact on international marketing.Culture can be divided into subcultures:
geographic regions :Human characteristics such as age and ethnic background. West Coast, teenage and Asian American.Culture affects what people buy, how they buy and when they buy.Understanding Consumer Buying Behavior offers consumers greater satisfaction (Utility). We must assume that the company has adopted the Marketing Concept and are consumer oriented.
Social Factors:
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture.
•Roles and Family Influences—
Role...things you should do based on the expectations of you from your position within a group. People have many roles. Husband, father, employer, employee. Individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand:
· that many family decisions are made by the family unit consumer behavior starts in the family unit
· family roles and preferences are the model for children's future family (can reject/alter/etc)
· family buying decisions are a mixture of family interactions and individual decision making
· Family acts an interpreter of social and cultural values for the individual. The Family life cycle: families go through stages; each stage creates different consumer demands:
· Reference Groups--
Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members.Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a persons attitude and behavior.
· Membership groups (belong to)Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit Cards etc.!!
· Aspiration groups
· Disassociate groups
(do not want to belong to). The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group.
· Social group
An open group of individuals who have similar social rank. US is not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions.Social class influences many aspects of our lives. i.e; upper middle class Americans prefer luxury cars Mercedes.
1. Upper-upper class, .3%, inherited wealth, aristocratic names.
2. Lower-upper class, 1.2%, newer social elite, from current professionals and corporate elite
3. Upper-middle class, 12.5%, college graduates, managers and professionals
4. Middle class, 32%, average pay white collar workers and blue collar friends
5. Working class, 38%, average pay blue collar workers
6. Lower class, 9%, working, not on welfare
7. Lower-lower class, 7%, on welfare Social class determines to some extent, the types, quality, and quantity of products that a person buys or uses.Lower class people tend to stay close to home when shopping; do not engage in much pre-purchase information gathering.Stores project definite class images.Family, reference groups and social classes are all socialinfluences on consumer behavior. All operate within a larger culture.
· Personal Factor
Unique to a particular person. Demographic Factors, Sex, Race, Age etc. Who in the family is responsible for the decision making? Young people purchase things for different reasons than older people
.Psychological factors Psychological factors include:
•Motives A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix
.MASLOW hierarchy of needs!!
Physiological
Ø Safety
Ø Love and Belonging
Ø Esteem
Self Actualization Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. The product was not selling well, and was almost terminated. Upon extensive research it was determined that the productdid sell well in inner-city convenience stores. It was determined that the consumers for the product were actually drug addicts who couldn't digest a regular meal. They would purchase Nutriment as a substitute for a meal. Their motivation to purchase was completely different to the motivation that B-MS had originally thought. These consumers were at the
Phychological
Perception— Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. IE we chose what info we pay attention to, organize it and interpret it.Information inputs are the sensations received through sight, taste, hearing, smell and touch..
Selective Exposure
Select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop).
Selective Distortion
-Changing/twisting current received information, inconsistent with beliefs.Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor.
Selective Retention
-Remember inputs that support beliefs, forgets those that don't.Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per day. Can't beexpected to be aware of all these inputs, and certainly will not retain many.Interpreting information is based on what is already familiar, on knowledge that is stored in the memory.
Ability and Knowledge--
Need to understand individual’s capacity to learn. Learning, changes in a person's behavior caused by information and experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free sample etc.When making buying decisions, buyers must process information.
Knowledge
It is the familiarity with the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product.Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality.
Learning
It is the process through which a relatively permanent change in behavior results from the consequences of past behavior.
Attitudes--
Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non living.....Drive perceptionsIndividual learns attitudes through experience and interactionwith other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy.
Personality--
all the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include:
· Work holism
· Compulsiveness
· Self confidence
· Friendliness
· Adaptability
· Ambitiousness
· Dogmatism
· Authoritarianism
· Introversion
· Extroversion
· Aggressiveness
· Competitiveness.
Traits affect the way people behave. Marketers try to match the store image to the perceived image of their customers.There is a weak association between personality and Buying Behavior; this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self concept.
Lifestyles--
Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle.Lifestyles are the consistent patterns people follow in their lives.The marketer must be aware of these factors in order to develop an appropriate MM for its target market.
Industry Overview
FOOD INDUSTRY-
CHAPTER II
LITRATURE REVIEW
Rajagopal, (2007) has analyzed that many multinational companies have entered the market of organic cosmetics and toiletries in the global marketplace. It emphasized the impact of economic and relational variables on customer and brand values in reference to OCT products in Mexico through empirical investigation in selected department stores that attract high profile customers. One of the prominent features emerged is that customer perception is largely governed by marketing communications. The strategic product positioning and effective retailing augment the customer perceptions and help building the long-run customer values towards the non-conventional products owning unfamiliar brands.
Beyer,(2008) has examined that the differences between women who have shunned the natural/organic beauty buying trend and those who embrace it are intriguing both demographically and psychologically. The natural beauty buyer's attitudes toward personal wellness mirror her consumer behavior. The four pillars of non-natural beauty use (complacency, expense, ignorance and skepticism) are often swept away by simple curiosity -- the desire to try what's new and popular. Natural and organic beauty products are in their infancy. Many women consider them a natural extension of the holistic lifestyle they are already living or want to lead.
Dawson.J et al. (2008) has find that Access to healthy food and its marketing have been asserted as limitations on changing behavior to improve diet. A retailer survey in Scotland is reported that considered availability and affordability of a basket of indicator healthy food items. Availability of healthy food items was generally seen to be adequate but there were notable variations in availability for specific items. There were large variations in price for the items across the stores and the survey areas. Accessibility to a range of healthy food depends more on the presence of medium and large stores than being in a deprived or affluent area.
Bhattacharya, P,(2009) has analyzed that Indian consumers' love of natural-positioned beauty products has proven to be a boon for a number of Asian, European and Indian companies enduring the current economic climate. While consumers may be reluctant to buy expensive clothes, accessories or even makeup, skin care and personal care products are showing steady growth in India. In addition, consumer awareness and usage patterns have changed drastically over the last two years. Consumers' current reluctance to spend on big vacations is translating into good business for the Indian industry. According to her consumers may curtail their buying decisions for luxury goods, big ticket items and vacations, but personal grooming and wellness still remain important for them.
Aertsens,J.et al.( 2009 )Has examined that it seeks to focus on the importance of affective attitude, emotions, personal norm, involvement and uncertainty related to organic food consumption. Organic food consumption decisions can be explained by relating attributes of organic food with more abstract values such as security, hedonism, universalism, benevolence, stimulation, self-direction and conformity. Appealing to these values can positively influence attitudes towards organic food consumption. Besides attitude, subjective and personal norm and (perceived) behavioral control influence consumption of organic food. This research is stated that the role of uncertainty (reduction) during the process of buying organic food is recommended. The research has examined the affective component of attitude and emotions in relation to organic food consumption, while these may play an important role as drivers of involvement and thus help to jolt food purchasers out of their routine of buying conventional food and set a first step to adopt organic food.
Thilmany, D, Bond,A & Bond K( 2009 )has analyzed that the apparent growth in demand for local foods, there has been a paucity of research results regarding the motivation of consumers to seek out and pay a premium for local produce offerings, the role of direct markets in consumer shopping choices, and buying profiles of consumers who frequent direct channels. In addition, the article presents a newly developed analysis of willingness to pay for the "local" attribute, which suggests heterogeneity in the interpretations of the public good dimension of the attribute across consumers who shop at direct markets with differing frequencies.
W. Martin,T, Adamy.J(2009)has studied that"Every packaged food has a nutritional-facts panel on it, so there's nutritional information for making choices on all of the products," Robert Earl, vice president of science policy, nutrition and health for the Grocery Manufacturers Association, based in Washington, D.C. But some manufacturers' labeling programs have come under criticism because they do not publish the exact criteria they look at when judging a food.
Khan,F.& Prior,T.C ( 2010) has found in this study that consumer perceptions and trends regarding purchasing locally produced food. The objectives focuses on urban attitudes and perceptions of local food within the Greater Birmingham conurbation in the West Midlands region of the UK. Consumers were questioned on their locally produced food-buying habits and attitudes in order to determine any differences in urban perceptions and buying attitudes compared with rural counterparts, and also to identify any new and potential opportunities for local food producers. The results indicate that urban consumers are generally confused about what the term 'local'food means. The reasons for purchasing local food, while generally consistent with national patterns, differed in that supporting the local producers was not regarded as important. Barriers to purchase were largely unsurprising for an urban area, as the top choices were "too expensive" followed by "not readily available' and "no time to find it". Understanding, information, availability and access to local food emerge as the biggest challenges to urban consumers in buying local food.
Ali,J.Kapoor,S & Moorthy,J(2010) has analyzed that the preferences of the consumers clearly indicate their priority for cleanliness/freshness of food products followed by price, quality, variety, packaging, and non-seasonal availability. The consumers' preference of marketplace largely depends on the convenience in purchasing at the marketplace along with the availability of additional services, attraction for children, basic amenities and affordability. It also suggest that most of the food items are purchased in loose form the nearby outlets. Fruits and vegetables are mostly purchased daily or twice a week due to their perishable nature. These consumers are in a relatively advantageous position in terms of purchasing power and awareness of health and nutrition.
Srivastava,R(2010)has found in the study that whether a global advertisement will be effective and how it is perceived; is it affected by consumers' age, education, religion besides collectivism, and individualistic behavior. It found that culture does affect the perception of global advertisement. Religion, age, and education do play a role in perception of global advertisement - they play an important role in buying intention.
CHAPTER III
Ø NEED OF THE STUDY
There are different national and multinational products present in India. So to identify the customer and their buying behavior have been the focus of a number of International and National products. The result of these study have been useful to the provide solution to various marketing problem.
Understanding buying behavior pattern is not enough without understanding the composition and origin of the customer. Today most of the Indian customers are attracted by the imported goods because of their high quality. So that most of the Indian company product looses their credibility and loyalty in domestic customers.
So the need for the study are :-
1-How can we stand out in a highly competitive market where consumers have so many choices?
2-How we can provide best loyalty to our customer while earning a fair profit?
3-How can we grow our business while retaining a core of the loyal customer?
BACK GROUND
: A major area of concern in marketer-consumer relation is the growing influence and utilization of the credit market, an outcome of compulsive buying, which has negatively affected the consumers, leading them to unmanageable debt levels. A study to find whether there is any association of the following variables on compulsive buying viz, big five Personality traits, materialism, demographics and credit card usage. The research design is a conclusive design which is single cross sectional descriptive in nature. The primary data was collected using non probability sampling technique. A quota sample of 120credit card holders (using credit card/s above one year) was chosen.
The respondents in aggregate ‘neither agree nor disagree’ to materialism and have ‘rarely’compulsive buying. The respondents ‘moderately agree’ that they are high enhanced credit card spenders, but at the same time they ‘rarely’ indicate compulsive buying, which is a positive outcome. They ‘disagree’ to high credit card financing behavior, which again exposes to the fact that they ‘spent and finance their spending’ cautiously. The emergence of relationship in some cases is as supported by literature from previous studies at the same time poses a challenge before the researcher to take up complicated models (like structural equation modeling) to possibly explore a new direction to the nature of relationships
Ø OBJECTIVE OF STUDY
The systematic and objective identification, collection, analysis and use information for the purpose of assisting management of company in decision making related to the identification and solution of problem and opportunities in marketing.
When an industry comes in the competitive market then the main problem comes in front of him is, how can survive in the market. For this purpose they have to know about their production process, employment process, distribution process, and consumer need and consumer behavior. The main purpose of the industry is to satisfy the consumer needs.
When we do the study on the consumer behavior we should know the entire factor which affects the consumer buying behavior. Social environment, education, culture, and traditions, income, society, are the factors which affects the buying behavior of the consumer. We can also decide it into geographic, demographic, psychological factors.
The main objective of this study are-
· To find out the factors that influences the consumer buying behavior.
· To find out preference of consumer for Indigenous & International product.(Cosmetic Food & cloth)
· To find out the satisfaction level of consumer in Indigenous & International Products.
Ø SCOPE OF STUDY
The scope of study will be the area of Jalandhar .As it is the nearest area where we can find the objective of our study. The population of this area is well educated and the income level is also very high. This area is considered as the area of luxurious lifestyle and people, who have a good income, spend money in shopping. There are also too many shopping malls where we can see a lot of crowed at weekend as well as normal days. Companies like National and International are penetrating into this area. So we are hoping that these areas will provides us enough scope for our objective of study.
RESEARCH METHODOLOGY
Research Design: - Descriptive research method has been applied to find out the consumer buying behavior. As this data will be primary data so a survey will be conducted.
Sampling design:- Population is large so census method can not be possible so sampling method is to be applied. In sampling method, convenience sampling is applied in this study because it will reduce time and money in data collection. The customer who is going for shopping will be eligible for research.
Data collection method:- The primary data are first hand data which is generated specially for the pursueing research project. Collecting of primary data is to be done by preparing questionnaire for the research project. ‘Pilot study’ is to be conducted for testing the questionnaire. The pilot survey helps in making certain changes in the final questionnaire so that it can be more effective. A structured questionnaire has been prepared for the respondents in order to collect the data.
Scaling technique:- In formulating the questionnaire Likert scale, semantic scale has been used.
.Sampling unit:- It refers to the individuals who has been surveyed in the study and it is the customer who has bought products are surveyed. The consumers who are going for shopping in Jalandhar, (Punjab) are be surveyed.
SAMPLE SIZE:- It refers to the number of people surveyed for this topic, in the study 100 people are surveyed and responses drawn.
Secondary data :( Exploratory research):-
The secondary data can be defined as data collected by someone else for purposes other than solving problem being investigation and previously meant for another purpose. In this the, journals, paper and internet has been used for the collection of data. It helps to better determine our problem and formulate an appropriate research design
Hypothesis testing
Ho-There is no difference in the satisfaction level of consumer for indigenous and international products.( Cosmetic, Cloth & Food )
H1-There is a significant difference between the satisfaction level of consumer for indigenous and international products. ( Cosmetic, Cloth & Food )
Analysis And Data Interpretation:-
Question1
Factor Analysis
We have to find out important attribute of customer, so we are applying data reduction technique so that we can find out important attribute.
| | Factor1 | factor2 | factor3 | Factor 4 | Factor 5 |
| Culture | | 0.885941 | | | |
| Social Class | | | | 0.94.15 | |
| Reference group | | | | 0.9415 | |
| Family | | .831951 | | | |
| Brand | 876618 | | | | |
| Price | .0836847 | | | | |
| Celebrity influence | | | | | |
| Sub culture | | | .95193 | | |
| Personality | | | | .94015 | |
| Motives | | .885941 | | | |
| Age | | | .95193 | | |
| Perception | | .885941 | | | |
| Learning | .876618 | | | | |
| Emotions | .836847 | | | | |
As we have got no any attributes in factor 5 and there is also less than 3 attributes in factor 3, it has negligible respondent and in scree plot graph we can see that the slope of graph is high for 3 factor sand after that the slope moderate so its guiding us for restricting our factor up to 3 so we are restricting our factor upto 3.Again we are conducting factor analysis and then by clicking extraction and then extract and check number of factor put there3.Factor analysis with 3 limited factor only.
Here we have got kaiser-meyer-olkin measure of sampling adequacy more than 0.5 that is 0.627
As, we have got in component 2 no attribute is there and in component 4 and 5 has 2 attribute and it has negligible respondent and in scree plot graph we can see that the slope of graph is high for three factors and after that the slope moderate so its guiding us for restricting our factor upto three so we are restricting our factor up to 3. Again we are conducting factor analysis and then by clicking extraction and then extract and check number of factor put there 3. Factor analysis with factor limited to 3 factors only.
KMO and Bartlett's Test
| Kaiser-Meyer-Olkin Measure of Sampling Adequacy. | .627 | |
| Bartlett's Test of Sphericity | Approx. Chi-Square | 333.355 |
| Df | 91 | |
| Sig. | .000 | |
Here we have got kaiser-meyer-olkin measure of sampling adequacy more than 0.5 that is 0.627
Rotated Component Matrix
Here we have got the three factors and the value that they now poses have large loadings.
Factor Analysis
| | Factor1 | factor2 | factor3 |
| Culture | | | 0.624 |
| Social Class | | 0.952782 | |
| Reference group | | | 0.916 |
| Family | 0.651801 | | |
| Brand | 0.750281 | | |
| Price | 0.748659 | | |
| Celebrity influence | 0.633085 | | |
| Sub culture | | 0.952782 | . |
| Personality | | | 0.916 |
| Motives | | | 0.624 |
| Age | | 0.952782 | |
| Perception | | | 0.624 |
| Learning | 0.750281 | | |
| Emotions | 0.748659 | | |
Factor1= Family, Brand, Price, Celebrity influence, Learning, Emotion
Factor2= Social class, sub culture, Age,
Factor3= Culture, reference Group, Personality, Motives, perception.
Here factor1 shows the influence of internal factor of the customer. It is the important factor of the consumer and its affect the buying behavior of the consumer because consumer has always searched these options before purchasing. Factor 2 shows the influence of the social class, sub culture and age on the consumer which the consumer has find and it’s effect the consumer buying behavior positively. Factor3 shows the influence of psychological factor with respect to their buying behavior and its effect the consumer these all factor changes the consumer buying attitude with respect to the products.
DATA INTERPRETATION
Q.NO.4-FOR COSMETIC
| | Quality | Price | Availability | Range | Offer | Packaging | Stock |
| Indigenous | 1.87 | 2.37 | 3.21 | 3.29 | 4.87 | 5.46 | 4.87 |
| International | 3.43 | 3.16 | 3.17 | 3.42 | 4.27 | 5 | 5.31 |
This graph shows that quality of cosmetic of international product is higher than indigenous product. By the graph we can know that there are more respondents who like the quality of cosmetic of international product than indigenous products. For the PRICE , range and stock the result is the same.In the case of availability, offer and packaging the result shows that these features of indigenous product are most liked by the respondents.
Q.NO.4 FOR CLOTHS
| | quality | price | Availability | Range | offer | packaging | Stock |
| Indigenous | 3.55 | 3.02 | 3.25 | 4.12 | 4.48 | 4.98 | 3.7 |
| International | 3.61 | 3.67 | 3.64 | 4.24 | 4.28 | 4.59 | 4.81 |
With the help of this graph we can say that there is no significant difference between the quality, range and offers of the cloth of indigenous and international products, while there is quite difference in the price, availability, packaging and stock of the indigenous and international product of cloth. Respondents have a bit similar preference for quality, range and promotional offer while the level of preference for price, availability, and stock is very high.
Q.4 FOR FOOD
| | Quality | Price | Availability | Range | Offer | packaging | Stock |
| Indigenous | 2.62 | 3.86 | 3.55 | 4.36 | 4.18 | 5.21 | 5.12 |
| International | 3.71 | 4.28 | 3.73 | 3.98 | 4.34 | 4.08 | 3.91 |
With the help of this graph we can easily find out that the level of preference for food products of indigenous are higher in the range, packaging, and stock while international products have more preference for the attributes of quality, price and a bit much higher preference for availability of the food products. Overall international products have more preference in comparison with indigenous products
Hypothesis Testing:-
QUESTION NO-5.
With the graph given below we can find out that the significance level of satisfaction for indigenous cloths, foods and for international cosmetic products are higher than the .5. It means that the level of satisfaction for these products are less than the other products. Respondents are more satisfied with the indigenous cosmetic and international ‘s cloth and food products.
| One Sample test | | |||||||
| | Test value=0 | | ||||||
| | T | df | Sig.2-taild | Mean Diff. | 95% confidence interval of the diff | | ||
| | Lower | upper | Lower | upper | Lower | upper | | |
| Sat.IND Cos | 29.3034 | 99 | 1.38E-50 | 1.22 | 0.02739 | 0.040261 | | |
| Sat.IND CLOTH | 28.19131 | 99 | 4.23E-49 | 1.36 | 1.264278 | 1.455722 | | |
| Sat.IND FOOD | 28.22613 | 99 | 3.8E-49 | 1.3 | 0.208614 | 0.521386 | | |
| Satis INT COS | 28.88862 | 99 | 4.89E-50 | 1.24 | 1.154831 | 1.325169 | | |
| Satis INT CLOTH | 30.99131 | 99 | 9.25E-53 | 1.17 | 0.015091 | 0.024491 | | |
| Satis.INT FOOD | 32.16598 | 99 | 3.23E-54 | 1.59 | 0.039192 | 0.048082 | | |
LIMITATIONS OF THE STUDY:-
Total coverage of the study is limited to the few customers for buying products at Jalandhar.
1. Sample size of the study is restricted to 100 customers only.
2. Most of the respondents hesitate to give information but how ever an attempt is made to collect the data systematically.
3. Time is the one constraint of the survey.
4. Money constraint is also there.
So many biasness during taking the respondent response.
Recommendation:-
Indian products should come with more wide range of product with attractive packaging because these factor changes the consumer perception with respect to that organization and consumer goes to buy that organization product.
Indian companies should maintain their variety of product and affordable price in future prospective so that they can give more benefit and service to their customer with respect to their competitors.
Indian companies should maintain their promotional offer better in future so that its helps to attract more consumer perception better with respect to their competitors.
Indian companies should improve their pricing strategy with more promotional offer and create better environment in future prospective so that it helps to increase more loyal customer for the products and also help to stand better in the market with respect to their competitors.
Both the companies should focus their market segment for high profile customer.
Indian and international companies should focus on the middle age group segment and old age group segment also so that they can capture the whole age group of the market.
Both the Indian and international companies should apply more marketing strategy for those consumer segments who are not satisfied from Easy day product.
To satisfy the all consumer Indian companies should improve their product bundling with respect to their competitors.
For attracting more customer Indian companies should come with more discount offer with respect to their all retail outlet competitors.
References
Book:-
Malhotra.N. (2007), Marketing Research, 5th edition, New Delhi: Pearson publishers ltd.pp106-130
Sniffman.L & Kanuk.L,Consumer Behavior,9th edition, New Delhi; Pearson Publishers ltd.pp 330-363
Journal:-
Rajagopal, (2007) International Journal of Emerging Markets. Bradford: Vol. 2, Is. 3; pg. 236.
Alisa Marie Beyer (2008) Global Cosmetic Industry. New York: Vol. 176,. 3; pg. S4
Dawson.J et al. (2008) Journal of Marketing Management. Helensburg: .Vol. 24, Iss. 9; pg. 8
Bhattacharya, P (2009)Global Cosmetic Industry. New York: . Vol. 177,. 5; pg. 36
Joris Aertsens, J. Verbeke,W, Mondelaers, K,& Huylenbroeck.,V(2009)British Food Journal. Bradford: . Vol. 111, Iss. 10; pg. 114
Martin,T, Adamy.J. (2009). Wall Street Journal. (Eastern edition). New York, N.Y.: Jan 15, pg. D.1
Khan, K, Prior,K (2010)International Journal of Consumer Studies. Oxford:. Vol. 34, Iss. 2; pg. 161
Ali,J, Kapoor,S,&Moorthy.J (2010) British Food Journal. Bradford: Vol. 112, Iss. 2; pg. 109.
Srivastava.R, (2010) International Journal of Emerging Markets. Bradford: . Vol. 5, Iss. 1; pg. 102
Web References
http://proquest.umi.com/pqdweb?did=1740431041&sid=1&Fmt=2&clientId=129893&RQT=309&VName=PQD
http://proquest.umi.com/pqdweb?index=4&did=1952755671&SrchMode=1&sid=1&Fmt=2&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1272649371&clientId=129893
http://proquest.umi.com/pqdweb?index=5&did=1945893131&SrchMode=1&sid=1&Fmt=2&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1272649371&clientId=129893
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