Consumer Purchasing Behaviour

A Summer Internship Project Report

Submitted in partial fulfillment of
The Master of Business Administration
Degree under Biju Patnaik University of Technology, Rourkela.

By
SIBASANKAR SAHU
Roll No. # MBA 200810707 Regd. No. # 0806202044

September - 2009

Under the guidance of

Mr. Suresh Ch. Pattnaik

NATIONAL INSTITUTE OF SCIENCE & TECHNOLOGY

Palur Hills, Berhampur- 761008, Orissa, India
ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to my project guide, Mr. Suresh

Pattnaik, Faculty, NIST for his valuable guidance and useful suggestions, which
helped me in completing the project work.

I also would like to thank Mr. Ratnakar Mishra, project coordinator MBA, NIST for
being supportive and for being a helping hand from the beginning till to the end of the
completion of the project.

I take immense pleasure in thanking Mr. Shom Prasad Das, Course Coordinator
MBA, for having permitted me to carry out this project work.

The boosting from our honorable director, Prof. Sangram Mudali, once in a while is
really worth mentioning.

Words are inadequate in offering my thanks to the Project Trainees and Project
Assistants of Vishal Mega Mart for their encouragement and cooperation in carrying
out the project work.

Finally, yet importantly, I would like to express my heartfelt thanks to my beloved

parents for their blessings, my friends/classmates for their help and wishes for the
successful completion of this project.

Sibasankar Sahu

i
LIST OF TABLES

Table 1.1 Top Major Retail Players ..........................................................................4

Table 1.2 Floor Wise Product Details.......................................................................18

ii
LIST OF FIGURES

Figure 1.1 Fastest Growing Formats in India...........................................................3

Figure 2.1 Model of Consumer Buyer Behavior.....................................................20

Figure 2.2 Consumer Decision-Making Process......................................................22

Figure 4.1 Awareness of Retail Shop .......................................................................30

Figure 4.2 Preferation of Departmental Store.........................................................31

Figure 4.3 Reason for Choosing Vishal....................................................................32

Figure 4.4 Major Influencer .....................................................................................32

Figure 4.5 Own Brand Vs. Other Brand..................................................................33

Figure 4.6 Preferable Item to Purchase ..................................................................33

Figure 4.7 Effect of Display Strategy........................................................................34

Figure 4.8 Decision Maker .......................................................................................34

Figure 4.9 Factor Effecting Buying Process............................................................35

Figure 4.10 Preferred Buying Situation ..................................................................35

Figure 4.11 Overall Ranking of Vishal.....................................................................36

iii
TABLE OF CONTENTS

ACKNOWLEDGEMENT............................................................................................i

LIST OF TABLES.......................................................................................................ii

LIST OF FIGURES....................................................................................................iii

TABLE OF CONTENTS............................................................................................iv

1. INTRODUCTION ...................................................................................................1

1.1 General Overview ..............................................................................1

1.1.1 Introduction of Retail Industry......................................................1

1.1.2 Retail Formats..............................................................................2

1.1.3 Top Major Retail Players...............................................................4

1.1.4 SWOT Analysis.............................................................................5

1.2 Objective of the Study........................................................................7

1.2.1 Primary Objective.........................................................................7

1.2.2 Secondary Objective....................................................................7

1.3 Scope of the Study.............................................................................7

1.4 Company Profile.................................................................................7

1.4.1 Promoters and Group Companies.................................................8

1.4.2 Major Events..............................................................................11

1.4.3 Their Competitive Strengths......................................................11

6. Private Labels..................................................................................13

7. Information Technology Systems....................................................13

8. Experienced and Skilled Management Team...................................14

1.4.4 Their Strategy............................................................................14

1.4.5 Corporate Mission ................................................................16

1.4.6 Corporate Manifesto...................................................................16

1.4.7 Core Value..................................................................................16

1.4.8 Company Vision.........................................................................17

iv
 1.5 Vishal Mega Mart (Berhampur).........................................................17

2. REVIEW OF LITERATURE...............................................................................18

2.1 Consumer.........................................................................................19

2.2 Consumer Behavior .........................................................................19

2.3 How and Why Consumer Buy...........................................................20

2.4 Characteristics Affecting Consumer Behavior..................................20

2.4.1 Cultural Factor............................................................................20

2.4.2 Social Factor...............................................................................21

2.4.2 Personal Factor:.........................................................................21

2.5 Types of Buying Behavior.................................................................21

2.6 Roles in the Buying Process..............................................................21

2.6.1 Problem Recognition..................................................................22

2.6.2 Information Search.....................................................................23

2.6.3 Alternatives Evaluation..............................................................23

2.6.4 Purchase Action..........................................................................23

2.6.5 Post-Purchase Actions................................................................24

3. METHODOLOGY.................................................................................................25

3.2 Data Collection.................................................................................25

3.3 Sampling Plan...................................................................................25

3.4 On the Job Training...........................................................................25

3.4.1 Work Schedule...........................................................................26

.............................................................................................................. 26

3.4.2 Schedule for Project Work in Vishal Mega Mart..........................26

3.5 Limitations of the Study...................................................................26

4. DATA ANALYSIS & INTERPRETATION ......................................................27

5. CONCLUSION & SUGGESTIONS.....................................................................37

5.1 Conclusion........................................................................................37

5.2 Suggestions .....................................................................................37

v
ANNEXURE .............................................................................................................38

vi
 CONSUMER PURCHASING BEHAVIOUR

1. INTRODUCTION

1.1 General Overview

1.1.1 Introduction of Retail Industry

The retail industry is divided into organized and unorganized sectors. Organized
retailing (Vishal Mega Mart) refers to trading activities undertaken by licensed
retailers, that is, those who are registered for sales tax, income tax, etc. These include
the corporate-backed hypermarkets and retail chains, and also the privately owned
large retail businesses. The unorganized retailing refers to trading activities done by
local retailers which are not registered like kirana shops, fruits and vegetable vendors
etc.

The term "Retailing" refers to any activity that involves a sale to an individual
customer. In India, the unorganized retailing sector comprises of 96.5% while that of
organized sector just 3.5% that is mainly in major metropolitan and urban areas.
Indian retailing traditionally dominated by a small family run "Kirana" store.
Retailing in India is the second largest untapped market after China. Professional
management and strong customer focus characterize organized retailing. Despite the
huge size of the industry, only 8% of the country's population is engaged in retailing
while that in United States of America it is 20%. The positive factor such as increased
purchasing power, rise in number of double income families and demanding
customers, due to change in life style and paucity of time, customers are increasingly
looking for convenience. To woo the customers to the store retailers are providing a
wide product range, quality and value for money, apart from creating a memorable
shopping experience.

If economy continues to register a growth of 7- 8 %of the GDP annually, estimated by

2010, retailers will comprises of $300bn industry .retailing is the last stage of
distribution process. Retailing is one of the fundamental building block of the Indian
economy. Indian retail market has undergone an immense transformation in the post
liberalization & witnessing tremendous growth. Indian retail growing at the rate of
30% per annum and provides the highest employment after agriculture in India. The
1
 CONSUMER PURCHASING BEHAVIOUR

growing sophistication in retailing like A.T Kearney & Kurt Salmon Associates have
become active in India. Industrial houses take to Retailing and set up retail chains like
R.P. Goenkas, Nandas, K Rahejas, Tata, Birlas, Piramals, ITC, Ambanis, find a place
in the list. Many others have worked out their plans and are likely to enter the line in
the next couple of months

1.1.2 Retail Formats

Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the
modern Indian shopper.
Merchandise: food grocery to clothing to spots goods to books to stationery.
Space occupied: 50000 Sq .ft. and above.
Example: Pantaloon retail’s Big Bazaar, RPG’s Spencers (Giant).

Supermarket: A subdued version of a hypermarket.

Merchandise: Almost similar to that of a hypermarket but in relatively smaller
proposition.
Space occupied: 5000 Sq. ft. or more.
Example: Nilgiris, Apna Bazaar, Trinethra.

Convenience store: A sub dude version of a supermarket.

Merchandise: Groceries are predominantly sold.
Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.
Example: stores located at the corners of the streets, Reliance Retail’s Fresh and
Select.

Department store: A retail establishment which specializes in selling a wide range of

products without a single prominent merchandise line and is usually a part of a retail
chain.
Merchandise: Apparel, household accessories, cosmetics, gifts etc.
Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft.
Example: Landmark Group’s LifeStyle, Trent India Ltd.’s Westside.

2
 CONSUMER PURCHASING BEHAVIOUR

Figure 1.1 Fastest Growing Formats in India

Discount store: Standard merchandise sold at lower prices with lower margins and
higher volumes.
Merchandise: A variety of perishable/ non perishable goods.
Multi Brand outlets, also known as Category Killers. These usually do well in busy
market places and Metros.
Merchandise: Offers several brads across a single product category.
Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.

Specialty store: It consists of a narrow product line with deep assortment.

Merchandise: Depends on the stores
Example: Bata store deals only with footwear, RPG’s Music World, Crossword.
Kirana stores: The smallest retail formats which are the highest in number (15
million approx.) in India.
Merchandise: Mostly food and groceries.
Space occupied: 50 sq ft and even smaller ones exist.

3
 CONSUMER PURCHASING BEHAVIOUR

Malls: The largest form of organized retailing today. Located mainly in metro cities,
in proximity to urban outskirts.
Merchandise: They lend an ideal shopping experience with an amalgamation of
product, service and entertainment, all under a common roof.
Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.
Example: Pantaloon Retail’s Central, Mumbai’s Iorbit.

1.1.3 Top Major Retail Players

Table 1.1 Top Major Retail Players

Total Retail
No.of
Retailer Existing formats Brand Names Space
Stores
(‘000 sq ft)
Department store Pantaloon 13 1,948
Pantaloon
Retail Indian Hypermarket Big Bazaar 450 5000
Ltd
Seamless Malls Central 12 1200

Hyper markets Spencer’s 400 6000

RPG Retail Music Stores Music world 225 230

books Stores Books and Beyonds

Department stores Shopper’s Stop 20 1000

Shopper’s Stop
Books & Music Stores Crosswords 33 N/A
Ltd.
Home furnishing Home Stop N/A N/A
Landmark
Group (Based Department Stores Lifestyle 8 370
in Dubai)
Department Stores West side 19 350

Trent India Ltd Hypermarkets Star India Bazaar 1 N/A

Books & Music Stores Land Mark 4 N/A

Vishal Group Hyper markets Vishal Mega Mart 183 13,45

4
 CONSUMER PURCHASING BEHAVIOUR

1.1.4 SWOT Analysis

A SWOT analysis of the Indian organized retail industry is presented below:

1. Strength:
• Retailing is a "Technology-intensive" industry. It is technology that will help
the organized retailers to score over the unorganized retailers. Successful
organized retailers today work closely with their vendors to predict consumer
demand, shorten lead times, reduce inventory holding and ultimately save
cost. Example: Wal-Mart pioneered the concept of building competitive
advantage through distribution & information systems in the retailing
industry. They introduced two innovative logistics techniques – cross-docking
and EDI (electronic data interchange)
• On an average a super market stocks up to 5000 SKU's against a few hundreds
stocked with an average unorganized retailer. This will provide variety in
products(required breadth & depth for consumers)
• As a consequence of high volumes, procurement will be direct from the
Manufacturer. Hence, merchandise can be offered at lower costs.

2. Weakness :
• Less Conversion level: Despite high footfalls, the conversion ratio has been
very low in the retail outlets in a mall as compared to the standalone counter
parts. It is seen that actual conversions of footfall into sales for a mall outlet is
approximately 20-25%. On the other hand, a high street store of retail chain
has an average conversion of about 50-60%. As a result, a stand-alone store
has a ROI (return on investment) of 25-30%; in contrast the retail majors are
experiencing a ROI of 8-10%
• Customer Loyalty: Retail chains are yet to settle down with the proper
merchandise mix for the mall outlets. Since the stand-alone outlets were
established long time back, so they have stabilized in terms of footfalls &
merchandise mix and thus have a higher customer loyalty base.

3. Opportunity:
• The Indian middle class is already 30 Crore & is projected to grow to over 60
Crore by 2010 making India one of the largest consumer markets of the world.
The IMAGES-KSA projections indicate that by 2015, India will have over 55
5
 CONSUMER PURCHASING BEHAVIOUR

Crore people under the age of 20 - reflecting the enormous opportunities

possible in the kids and teens retailing segment.
• Organized retail is only 3% of the total retailing market in India. It is
estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by
2010.
• Percolating down: In India it has been found out that the top 6 cities
contribute for 66% of total organized retailing. While the metros have already
been exploited, the focus has now been shifted towards the tier-II cities. The
'retail boom', 85% of which has so far been concentrated in the metros is
beginning to percolate down to these smaller cities and towns. The
contribution of these tier-II cities to total organized retailing sales is expected
to grow to 20-25%.
• Rural Retailing: India's huge rural population has caught the eye of the
retailers looking for new areas of growth. ITC launched India's first rural mall
"Chaupal Saga" offering a diverse range of products from FMCG to electronic
goods to automobiles, attempting to provide farmers a one-stop destination for
all their needs." Hariyali Bazar" is started by DCM Sriram group which
provides farm related inputs & services. The Godrej group has launched the
concept of 'agri-stores' named "Adhaar" which offers agricultural products
such as fertilizers & animal feed along with the required knowledge for
effective use of the same to the farmers. Pepsi on the other hand is
experimenting with the farmers of Punjab for growing the right quality of
tomato for its tomato purees & pastes.\

4. Threat:
• If the unorganized retailers are put together, they are parallel to a large
supermarket with no or little overheads, high degree of flexibility in
merchandise, display, prices and turnover.
• Shopping Culture: Shopping culture has not developed in India as yet. Even
now malls are just a place to hang around with family and friends and largely
confined to window-shopping.
• Cultural Variation leads to variation in merchandise in India at different
geographical locations

6
 CONSUMER PURCHASING BEHAVIOUR

1.2 Objective of the Study

1.2.1 Primary Objective

The primary objective of study is enhance the sale of vishal mega mart.

1.2.2 Secondary Objective

• To know the consumer preference & choices.

• To study consumer behavior & increase market share.
• To know the customer flow & revenue generated by the stock from the each
department.

1.3 Scope of the Study

The scope of my study restricts itself to analyze the consumer purchasing behavior on
the basis of Garments, Gifts, Cards and Music Department where as in the recent
trend its seen that the key players in this Industry are more emphasizing on the
Garments, Personal Grooming, Home furnishings, Life style and Footwear
Departments in their Store

1.4 Company Profile

VISHAL MEGAMART is a retail house in India. As of April 30, 2007, it operates

50 retail stores, including two stores which are operated by their franchisees. These 50
stores are spread over about 1,282,000square feet and are located in 18 states across
India. In its efforts to strengthen their supply chain, it has set up seven regional
distributions centres and an apparel manufacturing plant.

It started as a retailer of ready-made apparels in Kolkata in 2001. At the time of

incorporation, the registered office of their Company was situated at 4, R. N.
Mukherjee Road, Kolkata 700 001. In 2003, it acquired the manufacturing facilities
from Vishal Fashions Private Limited and M/s Vishal Apparels. Subsequently, with
evolution of retail industry in India and change in consumer aspirations, it diversified
their portfolio of offerings to include other retail goods. Currently, it sell ready-made

7
 CONSUMER PURCHASING BEHAVIOUR

apparels and a wide range of household merchandise and other consumer goods such
as foot tar, toys, watches, toiletries, grocery items, sports items, crockery, gift and
novelties.

It follows the concept of value retail in India. In other words, their business approach
is to sell quality goods at reasonable prices by either manufacturing themself or
directly procuring from manufacturers (primarily from small and medium size
vendors and manufacturers). It endeavtheir to facilitate one-stop-shop convenience for
their customers and to cater to the needs of the entire family. It believes this concept
has helped them grow to their current size within a short time frame of their years.
Mr. Ram Chandra Agarwal has been ranked as the 28th most pitiful person in the
Indian retail industry.

In order to reduce costs and take advantage of economies of scale it has embarked on
backward integration of their products. Their apparel manufacturing plant is located at
Gurgaon, Haryana. For ensuring efficiency in supply chain, it has set up seven
regional distribution centres located around Kolkata, Thane (Maharashtra), Jaipur
(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and
Delhi. Further, it has focussed on developing a cost and time efficient distribution and
logistics network, which currently comprises seven distribution centers and a fleet of
trucks for transportation. It achieved total sales of Rs. 6,026.53 million for fiscal
2007, as opposed to a turnover of Rs. 2,884.43 million for fiscal 2006 and Rs.
1,463.12 million for fiscal 2005. During the same period their profit after tax was Rs.
249.83 million, Rs. 124.74 million and Rs. 30.20 million, respectively. As a result,
their sales increased batten fiscal 2004 and fiscal 2007 at a CAGR of 89.83% and
their profit after tax increased batten fiscal 2004 and fiscal 2007 at a CAGR of
302.89%.

1.4.1 Promoters and Group Companies

Promoters
The following individuals are the Promoters of our Company:
a). Mr. Ram Chandra Agarwal;
b). Mrs. Uma Agarwal; and
c). Mr. Surendra Kumar Agarwal.

8
 CONSUMER PURCHASING BEHAVIOUR

The following companies are the Promoters of our Company:

a). Unicon Marketing Private Limited;
b). Ricon Commodities Private Limited; and
c). Vishal Water World Private Limited.

In addition, the following HUFs are the Promoters of our Company:

a). Mr. Ram Chandra Agarwal (HUF)
The details of our Promoters who are individuals, are as follows:

Mr. Ram Chandra Agarwal, a resident Indian national aged 42 years, the pioneer of
budget stores in India, holds a bachelor’s degree in commerce. He has about two
decades of experience exclusively in readymade garments including manufacturing,
retailing and marketing. He was brought up in Kolkata and started the business under
the name of “Vishal Garment” with a small store at 9, Lal Bazaar Street, Kolkata. Mr.
Agarwal has been ranked as the 28th most powerful person in the Indian retail
industry. He is the Chairman and Managing Director of our company and has been on
the board of our Company since its inception.

Mrs. Uma Agarwal, a resident Indian national, W/o Mr. Ram Chandra Agarwal,
aged 32 years, holds a bachelor’s degree in arts. Mrs. Agarwal has more than five
years of experience in the retail industry. She has been on the board of our Company
since its inception. She started the business under the name “The Vishal Garments” in
1998 and the above concern was taken over by the Vishal Retail Private Limited in
2001 with all assets and liabilities. She has been associated with accounts department
of our Company and is currently overseeing our marketing
strategies.

Mr. Surendra Kumar Agarwal, a resident Indian national, aged 44 years, is a

commerce graduate. He has been on the board of our Company since its inception. He
was brought up in Calcutta and is engaged in the business with Mr. Ram Chandra
Agarwal and actively looking after the entire purchasing activities of the company. He
has two decades of experience in the 119 garments industry.

9
 CONSUMER PURCHASING BEHAVIOUR

For other details relating to Mr. Ram Chandra Agarwal, Mrs. Uma Agarwal and
Mr. Surendra Kumar Agarwal, including addresses, terms of appointment as
our Directors and other directorships, see the section titled “Our Management”
beginning on page 109. The details of our Promoter companies are as below:

Vishal Water World Private Limited (“Vishal Water World”)

Vishal Water World was incorporated on May 7, 1999 as a private limited company
under the Companies Act. Its registered office is situated at Mouza-Kuchpukur, P.S.
Bhangore, 24 Parganas (South) West Bengal, Kolkata. Vishal Water World is
presently engaged in the business of operating an amusement centre and sports
complex. Mentioned below are certain details of Vishal Water World:

S. No. Particulars Details

1. Registration No: 21-89342 of 1999
2. PAN AABCB1188J
3. Bank account no. 116010200003148

Promoters of Vishal Water World

The promoters of Vishal Water World are Mr. Ram Chandra Agarwal and Mrs. Uma
Agarwal.

Shareholding pattern
The equity shares of Vishal Water World are not listed on any stock exchange. The
shareholding pattern of Vishal Water World as of April 30, 2007, is as follows:

S. No. Name of Shareholder Number of Shares % of shareholding

1. Unicon Marketing Private Limited 315,000 49.53
2. Ricon Commodities Private Limited 300,000 47.17
3. Mr. Ram Chandra Agarwal 12,010 1.89
4. Mrs. Uma Agarwal 9,010 1.42
Total 636,020 100.00

10
 CONSUMER PURCHASING BEHAVIOUR

Board of Directors
As of April 30, 2007, the board of directors of Vishal Water World comprises Mr.
Ram Chandra Agarwal
and Mrs. Uma Agarwal.

1.4.2 Major Events

A chronology of some key events in the history of the Company is setforth below:

Year---- Milestone
2001-- Incorporated as Vishal Retail Private Limited acquired the proprietorship firm
Vishal Garments & the Vishal Garments opened firststore outside Kolkata.
2002-- Opened first Store in Delhi
2003 --Acquired Vishal Apparels, a manufacturing unit. Set up a manufacturing unit
in Gurgaon.
2004--Started their largest store of at Mathura Road, New Delhi having an area of
80,000 square feet nominated for the Images Retail Awards’2004
2006--Their Company was converted into a public limited company103
implementation of production and retail module of SAP Broadband
connectivity with each and every location Increased their presence to an
aggregate of 17 States.
2007-- Increase in number of stores to 50 spread across in 18 States.
2008- Increase the number of store up to 183 in 89 cities.

1.4.3 Their Competitive Strengths

It believes that the following are their principal competitive strengths which have
contributed to their current position in the retail sector in India.

1. Understanding of the ‘value retail’ segment

Their business plan involves implementation of the concept of the ‘value retailing’,
targeting the middle and loiter middle income groups, which constitute majority of the
population in India. It intend to provide quality products at competitive prices. It sells
a vast range of merchandise across apparels and accessories, FMCG(frequently

11
 CONSUMER PURCHASING BEHAVIOUR

marketed consumer goods) products, food products and consumer durables with over
74,000 SKUs. Their emphasis has been to maximize the value that the customers
derive in spending on goods bought in their stores. It endear their to continuously
reduce their costs through a variety of measures, such as, in-house production of
apparels, procurement of goods directly from the small and medium size vendors and
manufacturers, efficient logistics and distribution systems along with customized
product mix at their stores depending on the regional customer behave their and
preferences. Central to their value retail strategy is to pass on the benefits of cost
reduction measures to their customers.

2. Supply Chain Management

Their supply chain management involves planning, merchandizing sheering,
standardization, vendor management, production, logistics, quality control,
‘pilferage’ control replacement and replenishment. Their supply chain management
provides us flexibility to adapt to changing patterns in consumer behave their and
their ability to add value at various steps/levels. In particular, their supply chain
management gains strength from their ability to undertake in-house manufacture,
design and development of apparels.

3. Logistics and Distribution Network

Their distribution and logistics network comprises seven distribution centers. Besides,
It hastier own fleet of 41 trucks, which helps us to transport and deliver their products
in a cost and time efficient manner. It believe that their distribution and logistics set
up is It'll networked and allows us to fulfill the store requisition within short time
period of generation and receipt of order, which has helped us to optimize in-store
availability of merchandise and minimize transportation costs. Their strong
distribution and logistics network has enabled us to dispense with the requirement of a
dedicated storage space at every store, which is an industry practice, and instead
undertake periodical replenishment of depleted stock. Due to adoption of an efficient
racking system, it is able to benefit from optimum utilization of the space allocated
for display in their stores. This provides us assistance in maintaining a low working
capital requirement and less carrying cost.

12
 CONSUMER PURCHASING BEHAVIOUR

4. Geographical Spread
Their stores and distribution centers are spread in various parts and regions of the
country. This has not only enabled us to build their brand value but also facilitated us
to explore cost-effective stheircing from different locations, identify potential markets
and efficiently establish new stores in different locations. An aggregate of 43 of 50 of
their existing stores are located in Tier II & Tier III cities, which, It believe, enables
us to capture market share in locations where a majority of their target customers are
located.

5. Identifying New Locations

It believe that It possess the ability to identify locations with potential for growth, in
particular in Tier II and Tier III cities. It has an exclusive site identification and
assessment team, which undertakes systematic analysis of the business prospects,
taking into account factors such as population, literacy levels, nature of occupation,
income levels, accessibility, basic infrastructure and establishment and running costs.
Further, it has a dedicated warehouse for the purposes of storing the materials
essential for setting up of new stores.

6. Private Labels
It has a number of private labels for apparels (i.e. apparels manufactured by us- such
as Zeppelin, Paranoia, Chlorine, Katina Studio, Famine, Fltheirier Women and
Roseau. In fiscal 2007, their Income from their Private labels was Rs. 583.60 million,
which accounts for 9.68% of their total sales for fiscal 2007. It believes that their
focus on their private labels and their recognition in their customer segment enables
us to differentiate themselves from their competitors.

7. Information Technology Systems

It believes that efficient information technology systems, processes and business
applications are essential to handle retail chain of their magnitude. Their office
processes are computerized which support procurement, supply chain logistics,
distribution centers management & store operations including inventory management
and billing. It is in process of implementing SAP. All their stores & distribution
centers are connected through a company-wide virtual network connection which
helps to efficiently manage their network of outlets throughout the country.
13
 CONSUMER PURCHASING BEHAVIOUR

8. Experienced and Skilled Management Team

It has an experienced management team which is complemented by a committed
workforce. Their management team comprises of talented professionals who are
skilled in the retail sector. This has assisted us in management of their stores. It
believes it has created the right balance of performance bonuses and other incentives
for their employees.

1.4.4 Their Strategy

It intends to pursue the following strategies in order to consolidate their position

as an operator in the ‘value Retail’ segment in India. Their growth strategy is
based on:
It intends to increase their penetration in the country by setting up new stores in cities
where it already have Presence, as also entering into new areas in the country. In
particular, it intends to focus on expansion in TierII and Tier III cities. It believe that
their existing infrastructure have been designed for a higher scale of operations than
their current size, and can help us grow without the need to significantly increase
costs. Moreover, their continuous effort to improve systems and processes leads us to
believe that it can deal with higher scale of operations without any hindrance. Higher
business volumes will also improve their negotiating pouters and help us get further
economies of scale in their buying.

1. Emphasis on Backward Integration

It believes that through backward integration It will continue to substantially control
the cost of production, resulting in such cost benefits being passed on to their
customers. It intends to increase the in house manufacture, design and development of
their products and realizes economies of scale. It intends to manufacture at least 25%
of their requirement for apparels and may require expansion of their existing
manufacturing facilities. This will also enable us to reduce their reliance on external
agencies for supply of their products and will result in loiter turn-around time. In
addition, their focus would be to undertake in-house such functions of the
manufacturing processes, which, in their view, would add maximum value and would
enable us to reduce their procurement costs.

14
 CONSUMER PURCHASING BEHAVIOUR

2. Expansion of FMCG
Historically, it has derived significant portion of their revenue from sale of apparels.
In pursuance of their business plan to diversify their portfolio of offerings, FMCG
products play a key role. FMCG products are usually meant to fulfill the daily needs
of consumers and therefore, It believe retailing of FMCG products will bring
customers to their stores on a frequent basis and this may in-turn lead to consumption
of their apparels. It believe retailing of FMCG products would help us to eliminate the
impact of seasonality of the apparels market in India, which depends on factors such
as change in tether conditions and festival celebrations. In furtherance of their
endeavtheirs to reduce costs, It intend to procure FMCG products directly from the
manufacturers. For this purpose, It has entered into and will continue to explore the
possibilities of entering into certain arrangements with domestic FMCG majors on
such terms and conditions, which are suitable to their business model.

3. Procurement from low-cost production centres outside India

In addition to their strategy to continue procurement of goods from small and medium
size vendors and manufacturers which leads to cost efficiencies, It intend to procure
FMCG and apparels from low-cost production centers located outside India. Towards
this objective, It propose to increase their procurement of finished and semi-finished
goods from China and there by realize economies of scale and pass on the benefits so
accrued to their customers.

4. Increasing customer satisfaction and their base of loyal customers

It believes that understanding the needs of their customers is of prime importance for
the continuous growth of their business. In order to continuously provide customer
satisfaction, their customer management team assimilates customer feedback and it
endeavtheir to take necessary steps to address the requirements of their customers. In
addition, It has introduced, in association with SBI Cards & Payment Services Private
Limited, a co-branded credit card. It proposes to continuously undertake such
initiatives to increase the satisfaction of their customers.

5. Continue to upgrade information technology systems and processes

It believe that any retail business requires efficient information technology systems
for control over the functioning of various stores including stock management, pricing
and promotion, replenishment, sales, quality control and financial accounting. It are
15
 CONSUMER PURCHASING BEHAVIOUR

currently in the process of upgrading their information technology set up and have
entered into arrangements with leading vendors of information technology services
for implementation of more advanced ERP applications such as SAP. It intends to
periodically upgrade their information technology systems and processes.

6. Continue to train employees & seek entrepreneurship from employees

It believes a key to their success will be their ability to continue to maintain and grow
a pool of strong and experienced professionals. It has-been successful in building a
team of talented professionals and intend to continue placing special emphasis on
managing attrition and attracting and retaining their employees. It intend to continue
their employees to be enterprising and expect them to ‘learn on the job’ and contribute
constructively to their business, either through ideas, personal networks or effective
knowledge management. It also intend to continuously re-engineer their management
and organizational structure to allow us to respond effectively to changes in the
business environment and enhance their overall profitability.

1.4.5 Corporate Mission

"We share the vision and belief that by improving our performance through
innovative spirit and dedication, we shall serve our customers and stakeholders
satisfactorily.”

1.4.6 Corporate Manifesto

Knowledge is the only weapon at our disposal. Everything else is temporary, transient
and misleading. Our quest for knowledge will be focused, systematic and unwavering.
But, it will never be at expense of our values or our beliefs.

1.4.7 Core Value

• Indian-ness – confidence in ourselves

• Dedication – to customer satisfaction
• Leadership – to be a leader both in thought and business
• Self Development – by continuous hard work
• Respect – for every individual
• Introspection – leading to purposeful thinking

16
 CONSUMER PURCHASING BEHAVIOUR

1.4.8 Company Vision

• Products that offer real value for money

• Caters to the entire household
• Customer assistance par excellence
• Providing service of customized suits within 48 hours
• No question asked exchange policy
• Building long term relationships

1.5 Vishal Mega Mart (Berhampur)

There is a boom going on in the retailing sector in the present world. The business
environment in India as well as in other countries like China, South Korea, Germany,
France, UK, Japan, Thailand, Hong Kong, Indonesia etc is becoming very complex
and opportunistic with respect to various sectors as of now “Customer is the
KING”. Vishal mega mart has been trying to differentiate itself from other local
stores like Lohiya Brothers, Sri Durga Cloth Stores, other franchisee outlets, local
kirana stores so that more number of existing as well as new customers will enter and
be converted into regular loyal customers. From time to time it is providing discounts,
offers, schemes, better ambience, wide assortment of goods with innovative visual
merchandising, competitive pricing, better customer value, better service through
employees etc. it has been very difficult for the management of the store for making
the customers loyal towards the store because of the complexities of the consumers
and competitors.

17
 CONSUMER PURCHASING BEHAVIOUR

Table 1.2 Floor Wise Product Details

Floors Categories Products
Grounds Men’s wear • T-shirts,
• Shirts,
• Serwani, Jean Pants, trousers
FMCG • Edible Oils, Pulses, Juices, Spices, Milk
Products, Groceries, Frozen Foods, Beverages,
Rice, Ready to Cook items
Life style • Personalcareproducts (Body spray Perfume,
Powder, Nail polish, Soaps, Face Creams etc.)
• Gift Items(Birthday Gifts, Cards, Flower
Base),
1st Floor Home linen • Single Bed sheets, Double Bed sheets, Pillow
Section Covers, Sari Covers, Blouse Covers, Bags,
Blankets, Bed Covers
Electronics • Light and sound (television, audio system,
home theatre, dvd/mp3 player)
• My thing (iron, inverters. shavers, , fans, hair
dryers)
• Cook and serve(microwaves, cooking ranges,
mixers & grinders)
Kid’s wear • girls wear,
• boys wear(Seasonal Wear, Party wear,
Bottom wear)
• Infant wear(Infant utility, Essential and wear)
Lady’s wear • Ladies Ethnics,
• Western Wear(capris, jeans, Trousers, cargos,
Half Sleeves, Full sleeves),
• Ladies Fabrics ,Accessories and Saree
Section(South Cotton, Smooth, Bandhini,
Kotta Cotton, Lizibizi, Batik Print, Lucknow
Stitch, Boby Print, Khadi, Tossar

2. REVIEW OF LITERATURE

18
 CONSUMER PURCHASING BEHAVIOUR

The aim of marketing is to meet & justify target customer’s need & want. The field of
consumer behavior studies how individuals, groups, and organizations select, buy,
use, and dispose of goods, services, ideas, or experiences to satisfy their need and
desires. Understanding consumer behavior is never simple, because customer may say
one thing but do another. They may not be in touch with their deeper motivation, and
they may respond to influences and change their minds at the last minute.

2.1 Consumer

A Consumer is anyone who engages himself/her self in physical activities of

assessing, attaining, using or disposing of good and services for which he/she pays the
money for its usage. If a person buys the product but is consumed by his/her family
then in that case that family member will be actual ‘CONSUMER’ and the person
who has paid the money will be termed as ‘CUSTOMER’.

2.2 Consumer Behavior

Consumer behavior refers to the mental emotional process and the observable
behavior of consumers during searching, purchasing, and post consumption of product
and service.

Consumer behavior involves the study of how people buy, what they buy, when they
buy, and why they buy. it blends the element from psychology, socio psychology,
anthropology and economics. It also tries to assess the influence on the customer
from group such as family, friend, reference groups and society in general.

Buyer behavior has two aspects: the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of
complex variables not visible to anyone.

19
 CONSUMER PURCHASING BEHAVIOUR

2.3 How and Why Consumer Buy

The starting point for understanding consumer buying behavior is the stimulus
response model shown in the figure . as the model shows both marketing and
environmental stimuli enter the buyer consciousness. In turn, the buyer characteristics
and decision process lead to certain purchase decisions. The marketer’s task is to
understand what happens in buyer consciousness between the arrival of outside
stimuli and buyer’s purchase decisions.

As this model indicates, a consumer’s buying behavior is influenced by cultural,

social, personal and psychological factor

Figure 2.1 Model of Consumer Buyer Behavior

2.4 Characteristics Affecting Consumer Behavior

2.4.1 Cultural Factor

CULTURE: Set of basic values, perceptions, wants & behavior learn by a

member Society from family and other institution
SUBCULTURE Group of people with shared value system based on common life
experience & expectation.
SOCIAL Measured by occupation, income, education & wealth.
CLASS

20
 CONSUMER PURCHASING BEHAVIOUR

2.4.2 Social Factor

REFERENCE Formal or in formal group to which a person belong

GROUP
FAMILY Key group in terms of attitudes, briefs & learned behavior.
PERSONAL Personal characteristic such as age, occupation, family life style

2.4.2 Personal Factor:

AGE & LIFE Tastes in food, cloth, furniture, recreation change with age.
CYCLE
OCCUPATION Eg. Purchase of rugged cloth by a labourer.
ECONOMIC More or less income affect the person’s buying behavior.
SITUATION

2.5 Types of Buying Behavior

• ROUITINE OR PROGAMMED: HABITUAL PURCHASE- It applies to

low involvement product such as salt. consumers keep buying same brand out of
habit, not due to strong brand loyalty, because they are passive receiptent of
information conveyed by advertising. Ad reception creates a ‘brand familiarity’ rather
than ‘brand conviction’.
• DISSONANCE-REDUCING BUYER BEHAVIOR - It applies to high
involvement product such as car. Car is a expensive & self expressive. Yet the
buyer may consider most brand in given price range to be same. After buying,
the consumer might experience dissonance after noticing certain disquieting
feature. marketer should there fore supply belief & evaluation that help
consumer feel good about their brand choice.
• VARIETY-SEEKING BUYING BEHAVIOR - It applies to low
involvement products such as cookies .in this category, consumer switch brand
often because they want more variety. The market leader will there fore try to
encourage habitual buying behavior by keeping shelves stocked and running
frequent reminder ad.

2.6 Roles in the Buying Process

21
 CONSUMER PURCHASING BEHAVIOUR

• INITIATER: The person who suggest for think of the idea of buying a particular or
service.
• INFLUENCER: a person whose views or advice carry weight in making the final
buying decision.
• DECIDER: The person who ultimately makes the final buying decision or any part
of it.
• BUYER: The person who makes the actual purchase.
• USER: The person who consume the product or service.

Figure 2.2 Consumer Decision-Making Process

2.6.1 Problem Recognition

Purchase decision making process begins when a buyer becomes aware of an

unsatisfiedneed or problem. This is the vital stage in buying decision process, because
without recognizing the need or want, an individual would not seek to buy goods or
service. There are several situations that can cause problem recognition, these include:
• Depletion of stock
• Dissatisfaction with goods in stock
• Environmental Changes
• Change in Financial Situation
• Marketer Initiated Activities

22
 CONSUMER PURCHASING BEHAVIOUR

2.6.2 Information Search

After the consumer has recognized the need, he / she will trying to find the means to
solve that need. First he will recall how he used to solve such kind of a problem in the
past, this is called nominal decision making. Secondly, a consumer will try to solve
the problem by asking a friend or goes to the market to seek advice for which product
will best serve his need, this is called limited decision making.

Sources of information include:

• Personal sources
• Commercial Sources
• Public sources
• Personal experience

2.6.3 Alternatives Evaluation

Consumers’ evaluates criteria refer to various dimension; features, characteristics and

benefits that a consumer desires to solve a certain problem. Product features and its
benefit is what influence consumer to prefer that particular product. The consumer
will decide which product to buy from a set of alternative products depending on each
unique feature that the product offers and the benefit he / she can get out of that
feature.

2.6.4 Purchase Action

This stage involves selection of brand and the retail outlet to purchase such a product.
Retail outlet image and its location are important. Consumer usually prefers a nearby
retail outlet for minor shopping and they can willingly go to a far away store when
they purchase items which are of higher values and which involve higher sensitive
purchase decision. After selecting where to buy and what to buy, the consumer
completes the final step of transaction by either cash or credit.

23
 CONSUMER PURCHASING BEHAVIOUR

2.6.5 Post-Purchase Actions

Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with

the purchase is basically a function of the initial performance level expectation and
perceived performance relative to those expectations. Consumer tends to evaluate
their wisdom on the purchase of that particular product. This can result to consumer
experiencing post purchase dissatisfaction. If the consumer’s perceived performance
level is below expectation and fail to meet satisfaction this will eventually cause
dissatisfaction, and so the brand and/ or the outlet will not be considered by the
consumer in the future purchases. This might cause the consumer to initiate complaint
behavior and spread negative word-of-mouth concerning that particular product.

24
 CONSUMER PURCHASING BEHAVIOUR

3. METHODOLOGY

Research methodology is a systematic way to solve the research problems, It refers

for knowledge, a scientific and systematic search for information Marketing research
is the systematic design, collection, analysis and reporting of data and finding relevant
to a specific marketing design, collection, analysis and reporting of data and finding
relevant to a specific marketing situation facing the company.

3.2 Data Collection

Data collection means collections of information, facts or figures for the problem.
Primary data collection- Primary data is the first hand information obtained by
investigator. Primary source is one itself collects the data. Primary data can be
collected by observation, by interviews, by face to face questioning, by using
questionnaire, when the needed data do not exist or are dated, inaccurate, incomplete,
or unreliable.

Secondary Data Collection – Secondary data is collected by others already and there
searcher is using that information for his own research purpose. Secondary data can
be collected from published reports, newspaper, websites, journals, publications of
national and international organization.

3.3 Sampling Plan

Sampling unit - Walk-in customers in retail outlet.

Sample size - 50
Sampling Instruments- Questionnaire, face to face interview

3.4 On the Job Training

On the job training (OJT) gives a practical exposure and helps acquiring knowledge
about Vishal Mega Mart.

25
 CONSUMER PURCHASING BEHAVIOUR

3.4.1 Work Schedule

In 1st & 2nd week I did my project at electronics and FMCG item. I collected the data
about the products and took feedbacks and suggestions of costumers.

In 4th & 5th week I stayed at Male’s wear, ladies wear & kids wear section. I got the
basic product knowledge and interacted with the costumers and took their
suggestions.

3.4.2 Schedule for Project Work in Vishal Mega Mart

I used to report at 11:00am in the morning session .I used o start my job at 11:00a.m
and used to finish my job at 7:00p.m onwards.

3.5 Limitations of the Study

In attempt to make this project authentic and reliable, every possible aspect of the
topic was kept in mind. Nevertheless, despite of fact constraints were at play during
the formulation of this project. The main limitations are as follow.
• The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are
less.
• Concern person from the organised retail stores were hesitant to disclose the
true facts as the data related to strategic secrets.
• The chance of biased response can’t be eliminated though all necessary steps
were taken to avoid the same.

26
 CONSUMER PURCHASING BEHAVIOUR

4. DATA ANALYSIS & INTERPRETATION

By analyzing the questionnaire the following data obtained.

Responden Occupa Permanen Purpose Attrced Expectati Influe Decisi Servic
t tion t To come towards ons nce on e
name Address & product Towards by make qualit
phone no. Products rs y
Rakesh Student Courtpeta, Furniture Price After sales News Parent Excelle
Nayak Berhampur item Service paper s nt
993738667
1
Jagganath Doctor Berhampur Electronic Design Quality Media Wife Excell-
Sathpathy s item Guarantee ent
Som Student berhampur FMCG Price Quality Media Parent Very
Achari item s good
Olempia Govt. Kolkotta FMCG Price Quality Media Own Good
Chaterjee employe item
e
Chitrita MBA Pune, Furniture Price Quality News Own Good
Prusty 993794050 gaurante paper
Sasmita Bank Pune, Fmcg Price Quality Media Parent Very
Nayak employe 986114769 item s good
e 9
Deba Ranjan Contract BBSR, Garments Quality After sales Friends Wife Very
Parida or 986115532 Service good
3
Ganesh ISDO BBSR Garments Design After sales Others Wife Excelle
mishra ONIDA Service nt
Santosh Employe Berhampur Garments Brand Quality Friends Wife Excelle
Majhi e name guarantee nt
Rashmita House Kommapali, Food item Home Quality News Husba Good
Dehuri wife Berhampur Require guarantee paper nd
ment
Debashis Student, R.I.T. Hostel Electronic Brand After sales Friends Parent Very
Majhi R.I.T. s item name Service s good
Gopal Employe Gatebazaar Garments Quality Quality Media Wife Very
Mukherjee e , guarantee good
Berhampur
Ashis Employe Old bus Electronic Brand After sales Friends Own good
Panda e stand, s item name Service
Berhampur
Amit Kumar Student Berhampur Electronic Quality Quality News Own good
s item guarantee paper

27
 CONSUMER PURCHASING BEHAVIOUR

Rajesh Engineer BBSR Food item Home After sales Friends Own Excelle
Parida Require Service nt
ment
Sonam Admini- Berhampur Garments price After sales News Own Excelle
Yougal strator Service paper nt
Snigdha PR BBSR Food item Home After sales Friends Own Very
consulta Require Service good
nt ment
D.Swarna Student Berhampur garments design Quality Friends Own Poor
Kumar guarantee
Madhabi House Berhampur Garments Price Quality Media childre Good
wife guarantee n
Sasmita House New bus Fmcg Home After sales Friends Husba Good
Mahapatro wife stand, item Require Service nd
Berhampur ment
Sushil Business New bus Fmcg Price Quality Media Own Good
Mehta man, stand, item guarantee
9853409 Berhampur
63
Sugiura House Old bus Fmcg Price After sales Friends Husba Excelle
Wife stand, item service nd nt
Berhampur
Ranjan Student Old bus Electronic Design After sales Media Friend Excelle
Pradhan stand, s service s nt
Berhampur item
Sidhart Student Rourkela garments Brand Quality Friends Own Good
Mishra name guarantee
Pratyush Business Rourkela garments Price After sales Media Wife Very
Mihsra service good
Kishor student Mahavir Others Price Quality Friends Own Excelle
sahu college, guarantee nt
BBSR
Subhalaxmi House Tata benz, Price After sales Newsp childre Very
Achary Wife Berhampur Fmcg service aper n good
item
Debasish Employe Bangalore Others Brand Quality Newsp Parent Excelle
Mishra e Ericson name guarantee aper s nt
Monoj Teacher Berhampur Garment Quality Quality Own Own good
Pattnaik guarantee
Chandra RCM BBSR Others Quality Quality Own Own good
Sekhar guarantee
Sethy

28
 CONSUMER PURCHASING BEHAVIOUR

Ashis Student, Gunupur Others Price After sales News- Own Excelle
Panigrahy employe service paper nt
e,
satyam
Guptesh Employe Berhampur Garments design After sales Media Parent Very
Mishra e , India service s good
Bulls
B.C Mishra City BBSR Electronic Quality Quality Own Parent Good
Finance s guarantee s
item
T.Sanjeev Student, Jamsedhpur garments design After sales Media Own Excelle
BCA service nt
Jyotshna Lecturer V.Udayagiri Fmcg Price After sales Own Husba
Padhi IRPM item service nd

Adyasha Student Mahavir Garments design Quality Friends Own Very

Menon college guarantee good
Suman Student BRM,BBSR Electronic Price After sales Own Excelle
Kumari s item service Others nt

Prasana Engineer Rourkela Others Quality Quality Media Wife Excelle

Rath ,RSP guarantee nt
Padma BM,KCC Rayagada Others Brand After sales News Childr Very
Nabha Bank name service papers en good
Mahapatro
Gyani Rao Business Vishakapat Food Price After sales Media Own Excelle
man nam Bazaar service nt
Asha Rao House Berhampur Others design Quality Own Childr good
Wife guarantee en
Reema House Cuttack Others Price After sales News Husba good
Debnath Wife service papers nd
Charchita Student Rayagada garments quality Quality Own Parent Excelle
Mahapatro guarantee s nt
V.Avilash Employe Hyderabad Others design After sales Media Own Excelle
Rao e,studen service nt
t
Radha Employe Goa Electronic Price After sales Media Parent good
madhav e,CIPLA, s service s
Sathpathy Goa Items
Deba Prasad Teacher Koraput garments price Quality News Very
Pattnaik guarantee papers Wife good

29
 CONSUMER PURCHASING BEHAVIOUR

Keshab Teacher Cuttack Furniture Brand After sales Friends Husba good
TIwari items Name service nd

Jinita House Cuttack Fmcg Brand After sales Own Own good
tripathy wife item Name service

Chandan Employe Bangalore Electronic Home Quality Media Parent Very

Dash e, IBM s item requirem guarantee s good
ent
Rekha Student Berhampur Fmcg Design After sales News 0wn Poor
Priyadarsha items service paper
n

INTERPRETATION:

(1) ARE YOU AWARE ABOUT THE RETAIL SHOP?

Figure 4.1 Awareness of Retail Shop

From the above pie chart shows that maximum number of customers know about
retail shop i.e. 85%.

(2) WHICH DEPARTMENTAL STORE YOU PREFER MOST?

30
 CONSUMER PURCHASING BEHAVIOUR

Figure 4.2 Preferation of Departmental Store

Most of the customers are prefer Vishal i.e. 67% where as Murali Departmental store
is below i.e 3%.

31
 CONSUMER PURCHASING BEHAVIOUR

(3) WHY YOU PREFER VISHAL MEGA MART TO PURCHASE?

Figure 4.3 Reason for Choosing Vishal

Most of the customer prefer vishal for it’s low price.i.e.40%.even some of them prefer
it’s service quality.i.e.25%.it’s product quality & product variety adopted by 15% &
20% of customer respectively in survey.

(4) FROM WHICH MEDIUM YOU ARE INFLUENCED FOR PURCHASE?

Figure 4.4 Major Influencer

Most of the customer influenced by newspaper i.e. 35%. 20% customer influenced
by media.25% customer are influenced ownly.20% customer are influenced by
friends.

32
 CONSUMER PURCHASING BEHAVIOUR

(5) WHICH BRAND PRODUCT YOU PREFER TO PURCHASE FROM

VISHAL?

Figure 4.5 Own Brand Vs. Other Brand

Most of the product in Vishal are their own brand product. Customer are also prefer
it’s own brand product i.e. up to 60%.other brand product are preferred up to 40%.

(6) WHICH ITEM YOU USUALLY PREFER TO PURCHASE?

Figure 4.6 Preferable Item to Purchase

Home needs items are prefered mostly i.e. up to 40%.20% customer are preferd Foot
wear.30% & 10% customer prefer to purchase dresess % electronic goods.

33
 CONSUMER PURCHASING BEHAVIOUR

(7) WHICH DISPLAY STRATEGY EFFECTS ON YOU TO PURCHASE

FROM VISHAL?

Figure 4.7 Effect of Display Strategy

Display with touch make more effect on consumer behavior.i.e. 50%. Display with
smell make less effect in comparison to display with light & sound.

(8) WHO IS THE DECISION MAKER FOR PURCASING THE PRODUCT?

Figure 4.8 Decision Maker

In buying process decision are mostly taken by parents i.e.40%.husband/wife make

decision for purchse i.e. 20%.30% customer are make decision ownly.

34
 CONSUMER PURCHASING BEHAVIOUR

(9) WHICH FACTOR INFLUENCE THE CONSUMER BUYING PROCESS?

Figure 4.9 Factor Effecting Buying Process

Income level of customer affecting buing behavior in 40% case.25% customer Buying
process affected by store location & size.education level make less effect
On consumer buying process.

(10) IN WHICH BUYING SITUATION CUSTOMR PREFER TO

PURCHASE?

Figure 4.10 Preferred Buying Situation

45% of customer prefer to straight rebuy they are preferig habitual uing process. 20%
of customer are prefer to take new task.

35
 CONSUMER PURCHASING BEHAVIOUR

(11) OVERALL YOU MARK VISHAL AS?

Figure 4.11 Overall Ranking of Vishal

40% of customer ranked vishal as excellent.30% of customer ranked vishal as

Good. 5% of them ranked it not good.

36
 CONSUMER PURCHASING BEHAVIOUR

5. CONCLUSION & SUGGESTIONS

5.1 Conclusion

The customers’ needs are straight and specific. The customer should not be forced to
change despite his reluctance to accept change. It is essential that bank understand and
accept the fact that the marketplace is made up of individual customers. The mantra
should be to create and deliver value in such a way that it always stays one step ahead
of its customers. The first step towards this is entry-level satisfaction, which helps in
fine-tuning the customer mind. This must be followed by the identification of the
specific problems, which arise from time to time, and resolving the same. Deep and
insightful knowledge of the customer will be the key asset for staying competitive in
the millennium.

5.2 Suggestions

• The company should measure customer satisfaction regularly.

• Company can increase the sales when it considering more on stock of the material,
their suggestions or complaints about service or product so that necessary action can
be taken.
• Review meeting should be often held so that the working pattern of the executives can
be checked and improved if needed.
• Since customers are value maximizes and their expectation to this brand is high, as
the brand image shows their quality is supervene so the company should also take
feed back at time to time. By this can make their brand level.
• Company should try to maintain manpower.
• Sales people and delivery persons should properly monitor the market whether stocks
are available and are properly utilized in the store or not.
• Display material should be provided to the retail store on more regular basis to
increase the sales level.

37
 CONSUMER PURCHASING BEHAVIOUR

ANNEXURE

Respondent Name:
Permanent Address:
Occupation:
Gender:
Age:
Phone No:

1. Are you aware about retail market?

A. YES
B. NO
2. Which is the best retail store to purchase?
A. BIG BAZAR
B. BAZAR KOLKATA
C. THE WORLD
D. VISHAL MEGA MART
3. Why you prefer Vishal mega mart to purchase?
A. GOOD QUALITY PRODUCT
B. PRODUCT PRICE IS LOW
C. QUALITY SERVICE
D. VARITY OF PRODUCT AVAILABLE IN STORE
4. From which medium you are influence for purchase?
A. NEWS PAPER
B. FRIENDS
C. MEDIA
D. OWN
5. Which brand product you prefer to purchase from Vishal?
A. OWN BRAND
B. OTHER BRAND

38
 CONSUMER PURCHASING BEHAVIOUR

6. Why you prefer Vishal’s own brand product?

A. PRODUCT PRICE IS LOW
B. PRODUCT QUALITY IS GOOD
C. GUARANTY & WARANTY SERVICE
D. DEFECTIVE PRODUCTS EXCHANGED
7. Which item you usually prefer to purchase?
A. HOME NEEDS
B. FOOTWEARS
C. DRESSES
D. ELECTRONIC GOODS
8. Is the display strategy effect the customer purchasing behavior?
A. YES
B. NO
9. Which display strategy effect on you to purchase from Vishals?
A. DISPLAY WITH LIGHTING
B. DISPLAY WITH SOUND
C. DISPLAY WITH SMELL
D. DISPLAY WITH TOUCH
10. Is the discount given by Vishal attract the customer attention for the product?
A. YES
B. NO
11. Who is the decision maker for purchasing the product?
A. PARENTS
B. OWN
C. HUSBAND /WIFE
D. CHILDREN
12. Which factor effect the consumer buying process?
A. STORE LOCATION, SIZE, FACILITIES
B. INCOME LEVEL
C. EDUCATION LEVEL
D. TASTE & PREFERENCE

39
 CONSUMER PURCHASING BEHAVIOUR

13. In which buying situation the customer prefer to purchase?

A. STRAIGHT REBUY
B. MODIFIED REBUY
C. NEW TASK
13. Overall you mark Vishal as?
A. EXCELLENT
B. GOOD
C. OKAY
D. NOT GOOD
14. Any suggestion
A. (--------------------------------------------------)
B. (--------------------------------------------------)
C. (--------------------------------------------------)

40