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AT
By
SMRUTI RANJAN BEHERA
(ROLL NO: DSBSPGDMA1327)
Under the Guidance of
Mr. Chetan K.B
CEO
ENZIO the Bath Studio.
Dr.Prof. Saiganesh
Associate Professor
DayanandaSagar Business School
DayanandaSagarBusinessSchool
ShavigeMalleswara Hills, Kumaraswamy Layout
Bangalore 560078.
May-July, 2014
GUIDE CERTIFICATE
This is to certify that the report titled STUDY ON CONSUMER BUYING BEHAVIOR
has been prepared under my guidance and supervision. The report is submitted in
partial fulfillment of the requirement for the award of Post Graduate Diploma in
Management (Approved by AICTE) by SMRUTI RANJAN BEHERA Reg.No.DSBSPGDMA1327 and this report / study has not formed a basis for the award of
any degree or diploma in any university / institution.
------------------------------------Place: Bangalore
Date: prof, DSBS
(Prof. Saiganesh)
STUDENT DECLARATION
I hereby declare that the project report entitled STUDY ON CONSUMER BUYING
BEHAVIOR is my original work and is prepared under the guidance of DR.PROF.
SAIGANESH. This report is submitted in partial fulfillment of the requirement for
the award of Post Graduates Diploma in Management (AICTE) in DayanandaSagar
Business School. This work is not submitted for the award of any other
degree/diploma in any other university / institution.
Place:
Date:
ACKNOWLEDGEMENT
I take this as an opportunity to thank with bottom of my heart all those without
whom the journey of doing my project would not have been as pleasant as it has
been to me. Working on my project was a constant learning experience with all
sweat and tear which was its due but not without being richly stimulating
experience of life time.
Date:
PREFACE
This research is prepared for the purpose of gaining a better understanding on the factors influencing
the consumers buying behaviour. The Tile market is chosen as the field of study on the consumers
buying behaviour because everyone needs tiles to decorate their Bathroom so anyone could be the
respondents of my survey. The age of the respondents in this survey ranges from 18 years and above.
The questionnaire constructed is based on the factors influencing the buying behaviour which are the
social factors, the personal factors and the psychological factors. The social factors referred to reference
groups and family whereas, the personal factors referred to age, occupation and lifestyle. Lastly,
psychological factors referred to motivation, perception and beliefs and attitudes.
This survey is carried out around JP NAGAR which includes housing estates, shopping malls and coffee
shops within the period of two weeks. This survey targeted 100 respondents and was given selfadministrated survey questionnaires to be filled up. The respondents can either be male or female in the
JP NAGAR. During the period of the survey, it was not easy to get respondents as many of them were
not willing to reveal their personal information. There were also respondents that are helpful and
responsive in making this survey a success.
The approximation of systematic sampling method is used in this research. All the data was collected at
different times and the time frame to gather all the data is within the period of 2 weeks.
The tabulation of the data was done using Microsoft Excel. Besides that, illustration of the information
in the form of pie charts and bar charts using Microsoft Excel enables readers to have a better
understanding of the report instead of reading the whole report in forms of words and figures.
Table of Contents
Acknowledgement ........................................................................................................................................... 4
Preface .. .......................................................................................................................................... 5
Table of Contents ............................................................................................................................................. 6
1. Introduction ............................................................................................................................................ 7
1.1. Review Literature......................................................................................................................................... 8
1.2 Objective of the Study................................................................................................. 9
1.3 Importance of the study .............................................................................................................................. 10
1.4 Sources of Data Collection....11
1.5 Limitations ..12
2. Company Profile.......................................................................................... 13
2.1. About Enzio ......................................................................................................................... 14
2.2. Mission ..................................................................................................................... 14
2.3. Products and Product Description.. .................................................. 15
2.4. Sourcing and Marketing............................................................................................................ 16
2.5. Industry Analysis16
2.6. Strategies 17
3. Research Methodology ............................................................................................................................... 21
3.1 Sample Design................................................................................................................................. 23
3.2. Methods of Data Collection ...................................................................................................................... 24
3.3. Tools and techniques Used ....................................................................................................................... 24
4. Data Analysis and Interpretation ............................................................... 25
5. Conclusion36
6. Bibliography37
INTRODUCTION
1. Introduction
1.1
Review of Literature
In Present Marketing Scenario, the Study of Consumer Behavior has become essential. Consumers
are the kings of markets. Without consumers no business organization can run. All the activities of
the business concerns end with consumers and consumer satisfaction. Customer behavior study is
based on consumer buying behavior, with the customer playing the three distinct roles of user,
payer and buyer. Consumer buying behavior has become an integral part of strategic market
planning. In order to develop a framework for the study consumer behavior it is helpful to begin by
considering the evolution of the field of consumer research and the different paradigms of thought
that have influenced the discipline. As described in this article, a set of dimensions can be identified
in the literature, which can be used to characterize and differentiate, the various perspectives on
consumer research. It is argued that consumer behavior itself emerged as a distinct field of study
during the 1960s; and is characterized by two broad paradigms, the positivist and the non-positivist.
The positivist paradigm encompasses the economic, behavioral, cognitive, motivational / trait /
attitudinal, and situational perspectives; these perspectives are referred to as the traditional
perspectives as they pre-date the development of the non-positivist paradigm. The positivist
paradigm, which is still the dominant paradigm, emphasizes the supremacy of human reason and
that there is a single, objective truth that can be discovered by science. The opposing, non-positivist
paradigm, envelops the interpretive and postmodern perspectives, which have emerged more
recently during the period post-1980 to date. The rational view and the ideology of a homogenous
social culture and thereby deny the complex social and cultural world in which consumers live. The
traditional, positivist perspective takes a very utilitarian approach to the benefits from
consumption. While the non-positivist perspectives place much greater emphasis on the symbolic
dimensions of choice. The objective of non-positivist research endeavor is to achieve a better
understanding of consumer behavior with no specific intent to influence consumer processes. This
article aims to identify different streams of thought that could guide future consumer research.
1.To gain an understanding of the theories and concepts of Buyer Behavior, to find the agegroup,
educational back ground, occupation / profession and income and income level of therespondents.
2. To know whether the customer is interested to purchase sanitary product in ENZIO or not.
3. To find respondents reason for purchasing the sanitary products
inENZIO The Bath Studio
4. To know the important reason the respondents give to each factor for purchasing sanitary product in
ENZIO The Bath Studio
5. To know the customer service satisfaction from the respondents
.6. To know the awareness of the brand ENZIO The Bath Studio
This study will help companies realize the effectiveness of consumer buying behavior.
Through this study managers will understand the significance of bridging the gap
between business and customers.
This study will analyze the different strategies ofconsumer buying behavior.
We will look into Interactive Marketing, where marketers can link their Facebook page
to their Twitter account, YouTube account, and their own personal blog. These links
help create an interactive marketing campaign.
Analyze and understand how advertisement works and the customer reach it can
attain.
This study will help understand why businesses use advertisement to promote their
products.
Primary Data
Primary data was collected by conducting polls and questionnaires online.
Consumer buying behavior is a psychological process that is important to businesses and marketing
professionals. Consumer buying behavior relates to the identification of consistent stages of decision
making used in every purchase situation. The process begins with need recognition, followed by
information gathering, a purchase and finally, post-purchase evaluation. Marketers rely on an
understanding of buyer behavior to effectively position products and services. However, consumer
buying behavior does have limitations.
One of the biggest drawbacks of relying too heavily on consumer buying behavior is that consumers
rarely apply the same steps in the same way for every product and service purchase. This makes it more
difficult for marketers trying to stimulate a need or to offer messages that enhance the likelihood of a
purchase for their brand. Thus, most companies have to perform more research into their particular
market segments and how they approach their brand
Another primary limitation for marketers using the consumer buying behavior model is that consumers
sometimes are much less involved in a purchase decision. For instance, someone buying laundry
detergent is generally less involved in the purchase than someone buying a car or washer and dryer.
Thus, the ability of marketers to affect consumers by analyzing buyer behavior is limited. Consumers
that are less involved spend less time seeking or viewing information about the purchase.
COMPANY PROFILE
enabling customers to place orders online or enhances the image of the business. Market research
indicates a specific and growing need in and beyond the local area for the products and services.
Enzio- the Bath Studio offers in the local retail market it serves and there are indications that Web
sales will play an increasing role in connecting customers with sellers. The online marketing
objective is to actively support continued growth and profitability of Enzio-. The Bath Studio through
effective implementation of the strategy. The online marketing and sales strategy will be based on a
cost effective approach to reach additional customers over the Web through the use of a website to
generate attention and revenue for the business.
2.2 Mission
Enzio- the Bath Studio is a store for discerning, quality-conscious buyers of sanitary fittings, tiles and
complementary home accessories. The store celebrates the home through the color and texture of
tiles. The experience informs, inspires, and shows people how to transform their home into a unique
and personalized expression of themselves. Enzio- the Bath Studio seeks to encourage people to
imagine what can be, and help make this vision a reality.
2.3 Products
Enzio- the Bath Studio focuses on selling sanitary fittings, c.p fitting, tiles and complimentary
accessories to be used in the house as well as in commercial spaces. It is available through the
purchase of in-stock fittings and through a special order arrangement. Other complementary products
include mirrors, counters with storages along with many others.
Product Description
Our primary points of differentiation offer these qualities:
The most extensive access to in-stock, first quality fittings, at affordable prices, within
100 miles of our primary geographic market.
The largest selection of special-order tiles, with arrangements to have most of those products
shipped to the store within 15 days of placing the order.
Personal assistance from a design-oriented staff that is qualified and capable of meeting the
needs of discerning customers with high expectations.
Complementary product offerings, including mirrors and storage solutions that are designed,
selected, and displayed in a way to emphasize the use of these accessories in bathroom
design.
2.4 Sourcing
Tiles
A majority of the tiles is purchased through 5 major distributors. Reps visit regularly, they are
available by phone.
Sanitary Fittings and Accessories
There are three major sources of sanitary ware providers to name:
Gessi
Kohler
Kajaria
Piccolo
Future Products
Future products may include:
Expansion in terms of increase in the number of brands of sanitary fittings to be stocked by the
company
Accessories in the form of statue.
Marketing
Market Needs
Enzio- the Bath Studio is providing its customers the opportunity to create a home environment to
express who they are. They have the choice to select their sanitary ware, tiles and other
complimentary accessories and go whatever direction they choose--to fix it themselves or have it
done for them. They have the opportunity to actively participate in the design, look, and feel of their
home. They desire their home to be personal, unique, and tasteful as well as communicate a message
about what is important to them.
We seek to fulfill the following benefits that we know are important to our customers.
Selection - A wide choice of current and tasteful sanitary ware, tiles and complimentary
accessories.
Accessibility - Buyers can either place an order online or walk into our store which is centrally
located at their convenience during the business hours.
Customer Design Services - Employees have a design background to make them resource for the
customer. This enables customers to benefit from suggestions regarding the selection of products in a
manner to complement their design choice.
Competitive Pricing - All products will be competitively priced in comparison to stores in the
Indian market (best price comparison) and other channels of distribution, such as catalog sales.
Industry Analysis
The industry continues to be competitive with a "commodity" concern from both manufacturers and
distributors. Based on Porter's Five Forces Model, the industry has these attributes:
Potential Competitors - There are many, both on the Web and through other channels including
other retail stores and catalog sales. Loyalty on the Web does not exist and the barriers to entry are
very low. Percent of business failures are high--estimated to be over
70% in the first three years of operation.
Power of Suppliers - Moderately high in that there are recognized leaders in the industry,
including Kokler, Hansgrohe and Style Box.
Power of Buyers - Very low as buyers work with the financial terms and product availability
offered through the suppliers that specify the terms and conditions.
Substitute Products - High in the area of tiles as flooring and cladding solutions have become
available and increasingly affordable.
Rivalry - Moderately low with the "territorial" structure that the industry experiences and
moderately low exit barriers. People get out when it is not working.
With the slow, but steady, growth of the past few years, the industry is now experiencing a cautious
optimism" regarding the future. The growth and expansion activities for most areas of the home and
commercial spaces appear to be carefully considered as marketing continues to decide what to do as
the economy experiences a slowdown and increased uncertainty from the more economically
confident 90's.
Promotion Strategy
The most successful advertising and promotional activities have been the following:
Newspaper Advertisements
Television Advertisements
Hoardings
Website
Distribution Strategy
The primary source of distribution is through traditional retail channel. On a secondary basis, we will
be building revenue generation through our home website.
Pricing Strategy
Product pricing is based on offering high value to our customers compared with most price points in
the market. Value is based on the best quality available, convenience, and timeliness in acquiring the
product. We will consistently be below price points offered through interior designers and
consistently above prices offered through the warehouse/seconds retail stores.
Enzio-The Bath Studio will also provide better quality and selection than the latter.
Sales Strategy
Our wide array of products enables customers to gather ideas and options, and accomplish their
decorating goals. The assistance of the staff in person, on the phone, and through email will
complement all aspects of this experience. The customer will have all of the resources, support and
guidance they need to create a look that is truly unique to their bathroom and home at large.
They will not be able to do this in the same way through any other resource.
Value Proposition
Enzio- The Bath Studio offers the highest quality sanitary fittings, tiles and accessories for the home
conveniently available for immediate purchase or on a special order basis. Enzio- The Bath
Studio is unique in that it offers customers the chance to be creative and customize the interior of
their home, or they have the option of working with experienced professionals who will guide them
through the process. Either way they get everything they need to create their perfect home.
Competitive Edge
Enzio- The Bath Studios website will be recognized due to its quality products and excellent support.
This competitive edge leverages the same proven factors that have resulted in the success of the
storefront experience. These same characteristics will be evident on the website.
E-commerce sales will be routed by direct links from our home website to our store.
Management Summary
Mr. Chethan K.B &RinkuAhuja will oversee all store operations. This includes buying, financial
dealings, merchandising.
RESEARCH METHODOLOGY
Introduction
The objectives of this research are twofold first to find out the components and variables involved
in decision making process; second to identify the changes that consumer buying behavior has
brought to the decision making process, in which, essentially by elaborating the difference between
marketing via consumer buying behavior and via traditional ones.
This research strives to provide a clearer, and perhaps a better, understanding to both consumers
and companies of why, when, and how consumer buying behavior has impacted on decision
making process. It may also offer possible insights for companies to identify the pitfalls and
opportunities in the new marketing era.
In essence, the dominant approach of this research involves the development of a theory that is
subjected to a rigorous test, where the theoretical framework provides the basis of explanation,
permit the anticipation of phenomena, predict their occurrence and therefore allow them to be
controlled. (Hussey and Hussey 1997, 52.) Secondary data theoretical framework serves as the
foundation for this research, and primary data aims to answer the objectives stated in the research
and to provide evidence in supporting the secondary data. The primary data of this research were
collected through polls from individuals in Bangalore.
Theoretical part regarding steps and components constituting the consumer decision making
process has demonstrated a systematic approach in buying of the stages individuals would engage
in a potential market transaction before, during, and after the purchase. On the other hand, it has
also identified the essence of consumer buying behavior in which has illustrated a clarification on
the change of the nature in todays marketing approach, and its effects on purchasing decision.
The empirical part focuses on finding out how individuals in Bangalore process information on
before a purchase, the actions carried out after a consumption, as well as what are their
perspectives regarding the new marketing era, in particular with consumer buying behavior . By
getting a general perspective on the current buying behavior in Bangalore , this research also aims
to provide new insights regarding the study of consumer behavior on different demographics (age
and gender) in the decision making process.
Methodology refers to a body of methods which assist of which investigation is carried on, for
the reach at the final conclusion of the study. Here a scientific method has been adopted for the
data collection.
So far as method of data collection is concerned, the data collection is done online
Report Presentation
Analysis and evaluation of data transform the raw data collected during the
field survey into management information. This has communicated in
attractive and effective information. Report is planned and also relevant to
the information needed. It is clearly represented, effectively illustrated with
tables, diagrams etc. Printing and binding is done with special care.
Research Process
awareness
35
30
25
20
awareness
15
10
5
0
yes
no
23 people are aware of the brand and 37 are unaware of the brand
enzio, most of the consumers are unaware of the brand enzio because
of the low promotional activity of the brand. The brand must give more
promotional activity, advertise, take part in more exhibitions to build
the brand awareness.
Preference
40
35
30
25
20
15
10
5
0
Preference
yes
no
21 consumers are ready to use the product again while 39 are not interested
to use it again. Enzios brand loyalty is low, so they must try to increase the
brand loyalty by various methods like increasing the quality of service,
behavior towards consumers, after sale service, a toll free consumer assistance
etc.
Reason
service
popularity
quality
Major reason People like to use Enzio because of the good quality, wide
popularity and quality service given by the organization. Most people
think its a value for money product because of the above reasons.
interest
35
30
25
intrest
20
15
10
5
0
yes
no
Brands
ENZIO
CERA
HINDWARE
ROCA
EROS
More users are loyal to other major brands like hindware, this
can be overcome by promoting the brand and increasing the
brand loyalty.
45
40
35
30
25
Value for money
20
15
10
5
0
Yes
No
42 people think the brand is value for money and 18 thinks its
not, the quality, service and low price strategy helps the brand
making it more vale for money compared to competitors.
Product Range
Excellent
Good
Average
Poor
Cant be accepted
Excellent ()
B- Good ()
C- Average ()
D- Poor ()
E- Can't be accepted ()
10
5
0
Print
Friends and
Family
TV / Radio Brouchure /
Poster
Other
Yes
No
Decision maker
25
20
15
Decision maker
10
5
0
Father
Mother
Self
Other
11. If you get better promotional offer from other brands will
you switch your brand preference?
Promotional offer
Yes
No
Findinds
Enzio can use marketing to create a wider audience
consequently increase sales
Advertising
Enziosproducts
The
Suggestions
Enzio should move towards investing more on in its brand and
advertising. Another great opportunity lies with advertising
people will get to know about the product more and more, it is
still a very effective way of reaching potential customers.
Conclusion
Through this report, we have been closely analyzing the consumer buying
behavior domain, detailing the main business benefits and defining the different
types of channel and their role. Indeed, whether a business is developing its
consumer behavior presence on every channel or only on a couple of them, the
business benefits can vary in terms of value and volume.
However, the main benefits encountered usually are increased brand exposure
and reputation management, increased targeted traffic and Search Engine
Optimization, word-of-mouth and leads generation, market insights related to
target audience and competition, public relations facilities and recruiting.
In addition, while consumer buying behavior is also an extremely cost-effective
solution, it mostly depends on which type of channels is used. And can all be
significantly beneficial for businesses in their own way.
Furthermore, Mobile Marketing is starting to change the future of Social Media
Marketing.In the India alone there are already 904 million mobile subscribers,
90% of text messages are read within three minutes of being delivered.
Also, now that internet is available on all the smartphones, people can access
their emails anytime, anywhere. And that is the reason why people actually get to
open more of their emails than before, and with the new SSL secure applications
people are more comfortable purchasing products using their smartphones
because it is more convenient and also because they can make the purchase from
anywhere they want as long as they have internet connectivity.
Bibliography
websites
www.google.com
www.twitter.com
www.facebook.com
www.youtube.com
www.wikipedia.com
www.enzio.in
www.linkedin.com
magazines
Business World