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Possible factors affecting consumer buying behaviour

Consumer Buying Behavior is the behavior that a consumer display while buying the product or a service. Each and every consumer has his/her own buying behavior that he displays it during purchase of different products. This behavior displayed by the consumer is the result of a number of influences which he/she receives from the environment. These influences can be categorized into four factors viz. Cultural factors, Social factors, Personal factors and Psychological factors.

Cultural Factors: - culture, subculture and social classes are particularly important in buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. Each culture consists of smaller subcultures that provide more specific identification and socialization of its members. Subculture includes nationalities, religions, racial groups and geographic regions.

Social Factors: - In addition to cultural factors a consumer’s behavior is influenced by such social factors as reference groups, family and social roles and statuses. A person’s reference group consists of all the groups that have a direct (face to face) or indirect influence on the person’s attitudes or behavior. Groups that have direct influence on a person is called as membership groups. Some membership groups are also called as primary groups, such as family, friends, neighbors and coworkers with whom the person interacts fairly continuously and informally. People also belong to secondary groups such as religious, professional and trade union groups which tend to be more formal and require less continuous interaction. Aspirational groups are those a person hopes to join; dissociative groups are those whose values and behavior an individual rejects. The family is the most important consumer buying organization in society, and family members constitute the most influential primary reference group. A person participates in many groups-families, clubs, organizations. The persons position in each group can be defined in terms of role and status. A role consists of the activities a person is expected to perform. Each role carries a status.

Personal Factors: - A buyer’s decisions are also influenced by personal characteristics. These include the buyer’s age in the life cycle, occupation, economic circumstances, lifestyle and personality and self concept.

People buy different goods and services over a lifetime. They eat baby food in the early years, most foods in the growing matured years and special diet in the later years.

Occupation also influences consumption patterns. A blue collar worker may buy work clothes, work shoes and lunch boxes. A company president may buy expensive suits, air travel and country club membership.

People from same subculture, social classes and occupation may lead quite different lifestyles. A lifestyle is a person’s pattern of living in the world expressed in activities, interest and opinions.

Psychological Factors: - A person’s buying choices are influenced by four major factors viz. motivation, perception, learning, believes and attitudes.

In the light of growing competition in the Indian retail industry each and every company is trying its best to attract new customers as well as at the same time retain the existing customers. Hence this can be done by keeping a track on the buying behavior of the customers. Therefore my topic on buying behavior of consumer shows the different factors which influence the consumer buying behavior while shopping.

The Retail Industry: - India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Driven by changing lifestyles, strong income growth and favourable demographic patterns, Indian retail is expected to grow 25 per cent annually.

Modern retail in India could be worth US$ 175-200 billion by 2016. With the economy booming, competition in the marketplace is fierce. According to 'Retail in India Getting Organised to Drive Growth', a report by AT Kearney and the Confederation of Indian Industry, retail is one of India's fastest growing industries with a 5 per cent compounded annual growth rate and expected revenues of US$ 320 billion in 2007. Rising incomes, increasing consumerism in urban areas and an upswing in rural consumption will fuel this growth to around 7-8 per cent.

KSA-Technopak, a retail consulting and research agency, predicts that by 2010, organised retailing in India will cross the US$ 21.5-billion mark from the current size of US$ 7.5 billion.

Retail space

Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a huge demand for real estate. Their preferred means of expansion is to increase the number of their outlets in a city, and also expand to other regions, revealed the Jones Lang LaSalle third annual Retailer Sentiment Survey-Asia.

Deutsche Bank's research report on 'Building up India' says India's burgeoning middle class will drive up nominal retail sales through 2010 by 10 per cent per annum. The country may have 600 new shopping centres by 2010.

Food retail

Food dominates the shopping basket in India. The US$ 6.1 billion Indian foods industry, which forms 44 per cent of the entire FMCG sales, is growing at 9 per cent and has set the growth agenda for modern trade formats. Since nearly 60 per cent of the average Indian grocery basket comprises non-branded items, the branded food industry is homing in on converting Indian consumers to branded food.

The mobile revolution

The retail market for mobile phones -- handset, airtime and accessories -- is already a US$ 16.7 billion business, growing at over 20 per cent per year. In comparison, the consumer electronics and appliance market is worth US$ 5.6 billion, with a growth rate that is half of the mobile market.

Kids retail

When it comes to Indian children, retailers are busy bonding--and branding:

Monalisa, the Versace of kids is coming to India.

Global lifestyle brand Nautica is bringing Nautica Kids.

International brand Zapp tied up with Raymond to foray into kids' apparel.

Disney launched exclusive chains which stock character-based stationery.

Pantaloon's joint venture with Gini & Jony will set up a retail chain to market kids' apparel.

Swiss kidswear brand Milou is collaborating with Tirupur-based Sreeja Hosieries.

Turner International India Pvt Ltd. will launch Cartoon Network Townsville and Planet POGO--two theme parks designed around its channels--in the National Capital Region.

Sahara One Television has also signed a Memorandum of Understanding to source content from Spacetoon Media Group, Middle East's largest kids' entertainment brand for animation and live action content.

Leading the kids' retail revolution is the apparel business, which accounts for almost 80 per cent of the revenue, with kids' clothing in India following international fashion trends. According to research firm KSA Technopak, the branded segment comprises US$ 701.7 million of the total kids' apparel market-size of over US$ 3 billion.

Industry experts say kids' retailing will touch annual growth of 30-35 per cent. Toys, stationary, sportswear, outerwear, tailored clothing, eyewear, watches, fragrance, footwear, theme parks, TV channels… the segment is growing rapidly at 10 per cent per annum. Margins are in the range of 20-25 per cent (for dealers and distributors), while companies enjoy an average gross margin of about 10 per cent.

Agricultural retail

Agriculture across India is heralding the country's second Green Revolution. 14 states, including Maharashtra, Punjab, Andhra Pradesh and Rajasthan amended the Agricultural Produce Marketing Committee (APMC) act this year, along the lines of the Model APMC Act, '02, which allows farmers to sell their produce directly to buyers offering them the best price. Agricultural sectors such as horticulture, floriculture, development of seeds, animal husbandry, pisciculture, aqua culture, cultivation of vegetables, mushroom under cultivated conditions and services related to agro and allied sectors are open to 100 per cent FDI through the automatic route.

For its e-Choupal scheme, ITC built internet kiosks in rural villages so farmers can access latest information on weather, current market prices, foods-in-demand, etc.

With a US$ 5.6 billion, multi-year investment in agriculture and retail, Reliance Retail will establish links with farms on several thousand acres in Punjab, West Bengal and Maharashtra.

FieldFresh, planning to become India's first large-scale exporter of produce, will annually pay farmers over US$ 30,000 to lease land for vegetables, to hire tractors and to pay their workers.

Besides a five-year program with the Punjab government to provide several hundred farmers with four million sweet-orange trees for its Tropicana juices by 2008, PepsiCo--with agriculture exports worth US$ 40 million--also introduced farmers to high-yielding basmati rice, mangoes, potatoes, chilies, peanuts, and barley for its Frito-Lay snacks.

Export potential and a rapidly growing domestic demand for reliable produce from new supermarket chains is driving change. With 77 per cent of India's population relying on agriculture for a living, improved efficiency and new markets can benefit a large number of people.

International retailers

The Australian government's National Food Industry Strategy and Austrade initiated a test marketing food retail in India wherein 12 major Australian food producers have tied up with India-based distributor AB Mauri to sell their products directly at retail outlets.

The largest-ever 150-member British business delegation in India committed investments in the areas of food processing, agri retail and manufacturing. It is also likely to press for the liberalisation of sectors like financial & legal services and retail.

US-based home delivery and logistics company, Specialised Transportation Inc, will enter the Indian market through a strategic alliance with Patel Retail, a subsidiary of Patel Integrated Logistics.

Among other big international players, Wal-Mart has announced its plans for India in partnership with Bharti, Tesco is sure to try again, and Carrefour too might finally find the right partner.

Retail reform

The Government regulations allow 100 per cent FDI in cash and carry through automatic route and 51 per cent in single brand. Besides, the franchise route is available for big operators. Now, the Government also proposes further liberalisation in the retail sector allowing 51 per cent FDI in consumer electronics and sports goods.

The retail road ahead

The Indian retail market is estimated at US$ 350 billion. But organised retail is estimated at only US$ 8 billion. However, the opportunity is huge--by 2010, organised retail is expected to grow to US$ 22 billion. With the growth of organised retailing estimated at 40 per cent (CAGR) over the next few years, Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon.

Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential growth, the road ahead is full of challenges.

What is retailing?

The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.

SCENARIO OF RETAILING IN INDIA

Retailing is the most active and attractive sector of last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution.

Indian retailing today is at an interesting crossroads. The retail sales are at the highest point in history and new technologies are improving retail productivity. though there are many opportunities to start a  new retail business, retailers are facing numerous challenges.

KEY CHALLENGES:

1) LOCATION:

"Right Place, Right choice"

Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan:

* Investigate alternative trading areas.

* Determine the type of desirable store location

* Evaluate alternative specific store sites

2) MERCHANDISE:

The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store.

3) PRICING:

Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change.

4) TARGET AUDIENCE:

"Consumer the prime mover"

"Consumer Pull", however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom.

5)  SCALE OF OPERATIONS:

Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India.

PRESENT INDIAN SCENARIO

* Unorganized market: Rs. 583,000 crores

* Organized market: Rs.5, 000 crores

* 5X growth in organized retailing between 2000-2005

* Over 4,000 new modern Outlets in the last 3 years

* Over 5,000,000 sq. ft. of mall space under development

* The top 3 modern retailers control over 750,000 sq. ft. of retail space

* Over 400,000 shoppers walk through their doors every week

* Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06

Major players

- Food and grocery

- Fashion

- Others

- Food world

- Shoppers' Stop

- Vivek's

- Subhiksha

- Westside

- Planet M

- Nilgris

- Lifestyle

- Music World

- Adani- Rajiv's

- Pyramid

- Crossword

- Nirma-Radhey

- Globus

- Life spring

TRADITIONAL RETAIL SCENE IN INDIA

India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F agents to Distributors & Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-users.  The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing & that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based & truly very low range was available at any given single place.  Almost all the purchases / (buying) by mass population was need oriented & next turn may be on festivals, Marriages, Birthdays & some specific occasions.

Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks. However electronic & electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge.

INDIAN RETAIL IS MOVING INTO SECOND GEAR

1) FIRST GEAR:

(Create awareness)

* New retailers driving awareness

* High degree of fragmentation

* Real estate groups starting retail chains

* Consumer expecting 'value for money' as core value

2) SECOND GEAR:

(Meet customer expectations)

* Consumer-driven

* Emergence of pure retailers

* Retailers getting multi-locational and multi-format

* Global retailers evincing interest in India

3) THIRD GEAR:

(Back end management)

* Category management

* Vendor partnership

* Stock turns

* Channel synchronization

* Consumer acquisition

* Customer relation's management

4) FOURTH GEAR:

(Consolidation)

* Aggressive rollout

* Organized retail acquitting significant share

* Beginning of cross-border movement

* Mergers and acquisitions

CHAPTER 2

RESEARCH DESIGN: Research design is a frame work or blueprint for conducting the market research project. It details the procedure necessary for obtaining the information needed to structure or solve marketing research problem.

Statement of the problem: -

To determine the buying behavior of the consumer with respect to ladies ethnic section.

Significance of the study: -

The study done on the above topic will give an idea of how the shopping behavior of the customers’ changes and what behavior they display while shopping. The project will be help full in finding out what strategies to make in order to fulfill the needs and wants of customers and create a competitive advantage in the retail market.

Objectives:-

To determine the customer profile.

To determine the shopping behavior/buying behavior of the customers.

To determine the brand preferences and reasons thereof.

Operational concept:-

Descriptive study- A type of conclusive research which has it’s major objective the description of something – usually market characteristics or functions.

Population -The aggregate of all the elements, sharing some common set of characteristics, comprising the universe for the purpose of the marketing research problem.

Sample – A subgroup of the elements of the population selected for participation in the study.

Primary data – Information that is collected on field in the form of surveys, interviews and observation.

Secondary data – Information that is collected through journals, magazines, company brochures, previous reports and government publishing.

Questionnaire – Questionnaire is a part of survey where in questions are framed in a structured manner in order to draw information from the respondents regarding the topic.

Scaling and Measurement – The assignment of numbers or other symbols to characteristics of objects according to certain prespecified rules is called measurement. The generation of a continuum on which measured objects are located.

Hypothesis:-

Ho: the proportion of sample who ranked Shoppers Stop 1st is 50%.

H1: the proportion of sample who ranked Shoppers Stop 1st is more then 50%.

Scope of the study:-

The population was limited to only those customers who came to ladies ethnic section only.

Methodology:-

The type of study used is Descriptive Study

Population – all those customers who came to shoppers stop in a month (April 2007).

Sample size – 180

Sampling technique – Convenience Sampling

Primary data – primary data was collected using a structured questionnaire.

Secondary data – secondary data was collected from the company website and brochure, marketing text books.

Tools and Techniques of data collection:-

The technique used to collect the primary data was a Survey. A well structured questionnaire was prepared and given to the respondents to be filled.

The information obtained from the questionnaire was edited, cross tabulated and an appropriate test was applied to get the result.

The test used was Z test.

Limitations:-

Limited time was given for data collection.

Some of the customers were not cooperative.

Responses from the customers were different during weekdays and weekends.

The findings were based on the information given by the customers and can be biased.

CHAPTER 3

COMPANY PROFILE:-

History - The foundation of Shoppers' Stop was laid on October 27, 1991 by the K. Raheja Corp. group of companies. Being amongst India's biggest hospitality and real estate players, the Group crossed yet another milestone with its lifestyle venture - Shoppers' Stop.

From its inception, Shoppers' Stop has progressed from being a single brand shop to becoming a Fashion & Lifestyle store for the family. Today, Shoppers' Stop is a household name, known for its superior quality products, services and above all, for providing a complete shopping experience.

With an immense amount of expertise and credibility, Shoppers’ Stop has become the highest benchmark for the Indian retail industry. In fact, the company’s continuing expansion plans aim to help Shoppers’ Stop meet the challenges of the retail industry in an even better manner than it does today.

Nature – Shoppers Stop is a retail store which sells multiple branded products.

Products and Services – Shoppers Stop deals with

Apparels (Men, Women and Children)

-Ladies western wear, Ladies ethnic wear, Men’s formal, Men’s semiformal, Casual wear, Sports wear and Kids wear.

Accessories (men and women)

-Cosmetics, Perfumes, Goggles, Watches, Handbags, Footwear, Fashion Jewellary.

Gifts and Toys.

Organizational Structure -

MANAGING DIRECTOR

CHIEF EXECUTIVE OFFICER

CHIEF FINANCE OFFICER

General

manager

General

manager

General

manager

General

manager

General

manager

ROM

ROM

DM

DM

CSE

CSE

Competitors – The major competitors of Shoppers Stop are:-

Westside.

Central.

Lifestyle.

Some of the other competitors are:-

Pantaloons.

Globus.

Big Bazar.

Number of branches – Currently Shoppers Stop has twenty branches across India and they are:-

Delhi- Ansal Plaza.

Ghaziabad – Indirapuram.

Gurgaon - Metropolitian Mall.

Jaipur - Malviya Nagar.

Lucknow - Gomti Nagar.

Bangalore - Bannerghatta Road.

Bangalore - Bannerghatta Road.

Chennai – Chetpet.

Mumbai – Andheri.

Mumbai – Bandra.

Mumbai – Chembur.

Mumbai – Juhu.

Mumbai – Malad.

Mumbai – Mulund.

Pune - Shivaji Nagar.

Pune – Camp.

Kolkata - Forum Mall.

Kolkata - Salt Lake City.

CHAPTER 4

ANALYSIS AND INTERPRETATION

In this chapter analysis carried out on the research is reported

AGE, GENDER AND OCCUPATION

SELF EMPLOYED

SALARIED

STUDENTS

Males

Females

Males

Females

Males

Females

<20 YEARS

-

-

-

0.6%

3.2%

13%

21-30 YEARS

2%

2%

12%

44%

1.2%

14%

31-40 YEARS

-

2%

3%

2%

-

0.6%

41> YEARS

0.6%

-

0.6%

-

-

-

Table no: 1

80% of the customers who come to shoppers stop are females and 20% are males.

75% among them fall under the age category of 21-30 years.

62% of the customers are salaried.

-44% are females and 12% are males.

31% of the customers are students.

-27% are females and 4% are males.

6% are self employed.

13% are housewives.

INCOME, OCCUPATION AND GENDER

SELF EMPLOYED

SALARIED

Males

Females

Males

Females

5000-15000

1%

1%

1%

9%

15000-25000

2%

2%

10%

36%

25000-35000

1%

1%

4%

10%

35000-45000

-

-

2%

8%

45000>

1%

1%

6%

5%

Table no:2

Among the salaried customers 36% are females and 10% are males both have a monthly income of Rs 15000-25000.

It is seen that females accounts to the majority salary earner when compare to males who contribute to only 10% among total salaried customers.

FREQUENCY OF SHOPPING AND OCCUPATION

SELF EPMLOYED

SALARIED

STUDENTS

HOUSEWIVES

ONCE A WEEK

1%

16%

10%

7%

ONCE IN TWO WEEKS

2%

9%

5%

1%

ONCE IN THREE WEEKS

-

6%

2%

0.5%

ONCE A MONTH

3%

23%

11%

3%

Table no: 3

40% of the customers shop at least once a month.

-23% are salaried and 11% are students.

34% of the customers shop once a week.

-16% are salaried and 10% are students.

Referring from the previous slide salaried customers had monthly income of Rs 15000-25000 and belonged to the age category of 21-30 years.

Graph no: 1

FREQUENCY OF SHOPPING, OCCUPATION AND TIME

(Self Employed and Salaried)

SELF EMPLOYED

SALARIED

10am-1pm

1pm-5pm

5pm-10pm

10am-1pm

1pm-5pm

5pm-10pm

ONCE IN A WEEK

-

2%

-

-

9%

18%

ONCE IN TWOWEEKS

-

1%

2%

2%

3%

12%

ONCE IN THREE WEEKS

-

-

-

-

4%

5%

ONCE A MONTH

-

1%

3%

5%

9%

23%

Table no: 4

63% of the shoppers prefer shopping between 5pm-9pm among whom 92% are salaried.

29% prefer shopping between 1pm-5pm among whom 86% are salaried.

Graph no: 2

FREQUENCY OF SHOPPING, OCCUPATION AND TIME

(Students and Housewives)

STUDENTS

HOUSEWIVES

10am-1pm

1pm-5pm

5pm-10pm

10am-1pm

1pm-5pm

5pm-10pm

ONCE IN A WEEK

-

12%

13%

-

9%

9%

ONCE IN TWOWEEKS

-

4%

7%

-

3%

-

ONCE IN THREE WEEKS

-

1%

3%

-

1%

-

ONCE A MONTH

3%

12%

13%

-

4%

4%

Table no: 5

49% of the shoppers prefer shopping between 5pm-9pm, among them 73% are students.

46% of the shoppers like to shop between 1pm-5pm, among whom 63% are students.

Graph no: 3

FREQUENCY OF SHOPPING OF EACH SALARY GROUP

ONCE A WEEK

ONCE IN TWO WEEKS

ONCE IN THREE WEEKS

ONCE A MONTH

5000-15000

2%

5%

1%

5%

15000-25000

15%

7%

4%

21%

25000-35000

4%

2%

3%

9%

35000-45000

4%

1%

1%

4%

45000>

5%

4%

2%

2%

Table no: 6

63% prefer shopping in malls among whom 33% are salaried and 20% students.

33% like shopping in both stores and malls among whom 19% are salaried and 8% are students.

OCCUPATION AND PREFERED PLACE OF SHOPPING

SELF EMPLOYED

SALARIED

STUDENTS

HOUSEWIVES

STORE

0.5%

2%

-

0.5%

MALLS

3%

33%

20%

7%

BOTH

1.5%

19%

8%

4.5%

Table no: 7

63% prefer shopping in malls among whom 33% are salaried and 20% students.

33% like shopping in both stores and malls among whom 19% are salaried and 8% are students.

Graph no:4

SHOPPING PLACE AND TIME FOR SHOPPING

STORE

MALLS

BOTH

10am-1pm

0.6%

3.5%

0.6%

1pm-5pm

1.5%

24%

10.5%

5pm-9pm

1%

38%

20%

Table no: 8

Among those customers who preferred shopping in malls 40% of them like shopping between 5pm-9pm and 26% shop between 1pm-5pm.

Among those customers who preferred both stores and malls 20% of them like to shop between 5pm-9pm and 11% preferred shopping between 1pm-5pm.

Graph no: 5

COMPANIONS FOR SHOPPING AND OCCUPATION

Graph no: 6

39% of the customers prefer shopping with friends.

-27% are salaried and 12% are students.

12% prefer shopping with both parents and friends

6% are salaried and 6% are students.

OCCUPATION AND MONTHLY SHOPPING EXPENSES

SELF EMPLOYED

SALARIED

STUDENTS

HOUSEWIVES

<1000

1%

1.5%

2%

1%

1000-3000

3%

31%

18%

3%

3000-5000

1%

14%

9%

4%

5000-10000

-

6%

1.5%

3%

10000>

1.5%

-

-

1.5%

Table no: 9

49% of the customers have a monthly shopping expense of at least Rs 1000-3000.

-31% among them are salaried with an average monthly income of

Rs 15000-25000.

-18% are students.

23% of the customers have a monthly shopping expense of Rs 3000-5000.

-14% are salaried with a monthly income of Rs 25000-35000.

-9% are students.

OCCUPATION, INCOME AND SHOPPING EXPENSES

SALARIED

5000-15000

15000-25000

25000-35000

35000-45000

45000>

<1000

-

1%

-

1%

-

1000-3000

12%

25%

12%

7%

3%

3000-5000

1%

12%

5%

3%

4%

5000-10000

-

7%

-

1%

4%

10000>

-

-

-

-

-

Table no: 10

37% of the salaried customers have a monthly shopping expense between 1000-5000 and from the previous interpretation these customers had an average monthly income of Rs 15000-35000 with an average age of 21-30 years.

RANKING THE IMPORTANT SHOPPING PARAMETERS -OCCUPATION WISE

SELF EMPLOYED

SALARIED

STUDENTS

HOUSEWIVES

VARIETY

9

4

4

7

DISCOUNTS

5

6

5

4

LOCATION

6

8

8

6

BRANDS

1

2

6

2

PRICE

4

5

3

3

STYLE

2

3

1

5

QUALITY

3

1

2

1

FABRIC

7

7

7

8

AMBIENCE

8

9

9

9

Table no: 11

Self employed-The first three parameters ranked are Brands, Style and Quality.

Salaried- The first three parameters ranked are Quality, Brands and Style.

Students- The first three parameters ranked are Style, Quality and Price

Housewives- The first three parameters ranked are Quality, Brands and Price.

Graph no: 7

RANKING THE IMPORTANT SHOPPING PARAMETERS -INCOME WISE

5000-15000

15000-25000

25000-35000

35000-45000

45000>

VARIETY

5

4

6

5

3

DISCOUNTS

6

6

5

6

4

LOCATION

7

7

8

7

8

BRANDS

2

3

2

4

1

PRICE

3

2

4

3

5

STYLE

4

5

3

2

7

QUALITY

1

1

1

1

2

FABRIC

9

8

7

9

9

AMBIENCE

8

9

9

8

6

Table no: 12

5000-15000- The first three parameters ranked are Quality, Brands and Price.

15000-25000- The first three parameters ranked are Quality, Price and Brands.

25000-35000- The first three parameters ranked are Quality, Brands and Style.

35000-45000- The first three parameters ranked are Quality, Style and Price.

45000>- The first three parameters ranked are Brands, Quality and Variety.

Graph no: 8

OVERALL RANKING OF THE PARAMETERS BASED ON PREVIOUS RANKINGS

Graph no: 9

From the graph it is clear that Quality, Brands and Style are ranked higher.

The least ranked parameters are Ambience, Location and Fabric.

FAVOURITE SHOPPING STORE

(BASED ON OCCUPATION)

SHOPPERS

STOP

WESTSIDE

CENTRAL

LIFESTYLE

OTHERS

SELF

EMPLOYED

2%

2%

0.6%

0.6%

-

SALARIED

24%

15%

7%

1%

5.5%

STUDENTS

14%

6.5%

2%

2%

3%

HOUSEWIVES

5%

4%

-

2%

0.6%

Table no: 13

45% the respondents’ favorite shopping store is Shoppers Stop.

-24% are salaried, 14% students and 7% self employed and

housewives.

28% of the respondents prefer going to Westside.

-15% are salaried and 6.5% are students.

Graph no: 10

FREQUENCY OF SHOPPING IN SHOPPER STOP AND OCCUPATION

ONCE A WEEK

ONCE IN TWO WEEKS

ONCE IN THREE WEEKS

ONCE A MONTH

SELF

EMPLOYED

1%

0.6%

1%

2%

SALARIED

6.5%

10%

4%

32%

STUDENTS

6.5%

6.5%

2%

13%

HOUSEWIVES

2%

2%

1%

8%

Table no: 14

55% of the respondents come to Shoppers Stop once a month.

-32% are salaried and 13% are students.

19% come once in two weeks.

-10% are salaried and 6.5 % are students.

16% come once a week and 8% of them come to Shoppers Stop once in three weeks.

Graph no: 11

FREQUENCY OF SHOPPING IN SHOPPER STOP AND INCOME

ONCE A WEEK

ONCE IN TWO WEEKS

ONCE IN THREE WEEKS

ONCE A MONTH

5000-15000

-

3%

1%

8%

15000-25000

9%

8%

2%

30%

25000-35000

2%

-

3%

9%

35000-45000

-

4%

-

6%

45000>

2%

3%

3%

5%

Table no: 15

58% of the respondents shop in Shoppers Stop once in a month.

-30% of them have an income of Rs 15000-25000.

-9% have an income of Rs 25000-35000.

18% shop once in two weeks.

-8% have an income of Rs 15000-25000.

13% shop once in a week and 9% of them shop once in three weeks respectively.

Graph no: 12

FAVORITE BRANDS AND INCOME

INCOME

BRANDS

5000-15000

Lee, Levis, Westside, Weekender and Stop.

15000-25000

Levis, Reebok, Allen Solly, UCB, Scullers, Wills, Stop, Kashish, Westside and UMM.

25000-35000

Lee, Levis, Allen Solly, Westside, Biba, Fab India, Bossini, Wlls and Van Heusen.

35000-45000

Levis, Westside, Stop, Allen Solly and Wills.

45000>

Addidas, Wills, Biba, Allen Solly, Nike, Kashish and Van Heusen.

Table no: 16

5000-15000- Customers falling under this category are price conscious and had ranked quality as first. Hence they like Lee, Levis, Westside Weekender and Stop.

15000-25000- Customers falling under this category look for variety apart from quality and price. Hence they prefer Levis, Reebok, Allen Solly, UCB, Scullers, Westside, Stop, Kashish and UMM.

25000-35000- Customers in this category like style and fashion apart from quality and brands and therefore their preferences are Levis, Lee, Allen Solly, Nike, Westside, Biba, Fab India, Bosssini, Van Heusen and Wills.

35000-45000-These customers too like style and quality but are not brand conscious. Their preferences are Levis, Stop, Westside, Allen Solly and Wills.

45000>- Here customers are highly brand conscious and deem quality and variety as important factors. Therefore they like Addidas, Allen Solly, Wills, Nike, Biba, Kashish, Van Heusen.

RANKING SHOPPERS STOP WITH OTHER STORES

SHOPPERS

STOP

WESTSIDE

CENTRAL

LIFESTYLE

OTHERS

VARIETY

1.4

1.9

1.8

1.9

1.9

DISCOUNTS

1.8

1.6

1.8

1.7

1.9

BRANDS

1.2

1.9

1.8

1.9

2.0

PRICE

1.6

1.5

1.9

1.9

1.9

DISPLAY

1.2

1.9

1.8

1.9

1.9

QUALITY

1.4

1.7

1.9

1.9

1.9

DESIGN

1.3

1.7

1.9

1.9

1.9

AMBIENCE

1.2

1.8

1.8

1.9

1.9

FASHION

1.3

1.8

1.9

1.9

1.9

FABRIC

1.4

1.7

1.8

1.9

1.9

OVERALL

1.3

1.7

1.9

1.9

1.9

Table no: 17

From the table it is clear that except discount and price customers ranked Shoppers Stop higher on all other parameters.

Customers ranked Westside higher for discounts and prices.

HYPOTHESIS TESTING

Ho: the proportion of sample who ranked Shoppers Stop 1st as overall is 50%.

H1: the proportion of sample who ranked Shoppers Stop 1st as overall is more then 5o%

Ho; Po=50%

H1; P1>50%

Therefore; Z=P-Po

√Po.Qo/n

Hence the value of Zcal=3.6

Zά=1.96

Zcal>Zά, Reject Ho

Therefore the proportion of sample who rank Shoppers Stop 1st (overall) is more then 50%.

CHAPTER 5

The study on buying behavior of consumer has brought out the following findings and recommendations.

FINDINGS AND INTERPRETATION

Summary: -

The primary customers who come to the ladies ethnic section of Shoppers Stop are females.

Among these 62%% of them are salaried with an average monthly income of Rs 15000-25000.

The next 31% of customers belong to the students’ category having an average age of 20 years.

The rest of the population constitute of self employed and housewives.

Majority of the customers shop once a month between 5pm-9pm and are salaried with a monthly salary of Rs 15000-25000 per month and fall under the age category of 21-30 Years.

The second major customers who shop once a month are students with an average age of 20 years.

63% of the customers like shopping in malls and the preferred time for shopping is between 5pm-9pm.

39% of the customers preferred shopping with friends and 12% preferred shopping with both friends and parents.

Among those who preferred shopping with both parents and friends are majority students.

Those customers who have a monthly income of Rs 15000-25000 spend at least Rs 1000-3000 per month on shopping.

Customers ranked Quality, Brand, Style and Price as 1st, 2nd, 3rd and 4th. Variety, Discount, Fabric, Location and Ambience are ranked as 5th, 6th, 7th, 8th and 9th respectively.

Majority of the customers prefer shopping in Shoppers Stop followed by Westside, Central and Lifestyle.

Majority of those who prefer shopping in Shoppers Stop are salaried with an income of Rs 15000-25000 per month and are aged between 21-30 years. This class of customers spends at least Rs 1000-3000 per month on shopping in Shoppers Stop.

Customers preferred brands like Lee. Levis, Stop, Biba, Allen Solly, Wills, Westside, Kashish and Van Heusen.

Shoppers Stop was ranked as the highest on overall parameters except discounts and prices.

RECOMMENDATIONS

Shoppers Stop should target the salaried and students class as they account for the majority visitors to their store.

More branded wears should be kept as the salaried class preferred going for brands and are brand conscious.

The merchandise should be stylish and fashionable as it appeals to the student class who are more of style conscious.

As ladies spend more time shopping in the same section seating arrangements should be made so that their companions (Friends, Husbands, Parents and Children) can sit till they finish shopping.

In house brands account for less preferred once and hence stylish, fashionable and designer wears should be brought out in order to increase the sales.

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