A

SUMMER TRAINING PROJECT REPORT

ON

CONSUMER BEHAVIOR

FOR THE PARTIAL FULFILMENT OF BACHELOR OF

BUSINESS ADMINISTRATION (2010-2012)
submitted by:submitted to :-

GURU NANAK INSTITUTE OF MANAGEMENT

(MULLANA

DECLARATION

I here by declare that the project report CONSUMER BEHAVIOR carried out
by me for the partial fulfillment of the course requirement of Bachelor of
Business Administration from KURUKSHETRA UNIVERSITY. It is the original
work done by me and the information provided in the study authenticated to
the best of my knowledge.

Acknowledgement

Any work of this magnitude requires the inputs efforts and encouragement of
people from all sides. In this project report I have been fortunate in having
got the active cooperation of many people, whom I would like to thank.

It gives me pleasure to express my heartfelt gratitude Mr. for guiding me

through his efforts at each and every step. I humbly submit that without his
efforts this project would have not been conceptualized nor materialized

I would like to thank Mr. for me an opportunity to work and enlightening my

ways whenever I need in completion of this project. Their able guidance and
support helped me a lot.

Preface

BBA Student of Kurukshetra University are required to undergo training as

an integral part of curriculum to accomplish this project as CONSUMER
BEHAVIOR process of Bosch there is need to become familiar with this
project.

It can be possible through theoretical inputs as well as practical exposure in

which my practical knowledge is helped acquired at the college as well as
practicing those concepts in Bosch.

I have also done a survey from various respondents to know there views
about company projects. By which collected information will be helpful to
solve as well as to predicted company image in future.

EXECUTIVE SUMMARY

The purpose of this study is to know about the awareness of products in D.S.

TRADER AMBALA CITY.The study examined the responses of 45 employees of

the organization. . I have collected the data through the survey method. I have
conducted a survey on consumer behaviour and its benefits for the consumer
through questionnaire and my sampling technique is random sampling. I got the
response through Likert Scale (on 5 points). This study also examines the
characteristics of the consumer,. This study also explains that how by opting the
knowledge of products can perform well as compared to those who lack this
knowledge. It is observed that as compared to other of a personel plays 80% more
important role in a job. Those who well understand themselves and also to others
are well satisfied on their work as compared to those who are not aware about per
product.

CONTENTS

1. INTRODUCTION TO THE STUDY

2. OBJECTIVE OF STUDY
3. RESEARCH METHODOLOGY
Research Design
Sampling and Sample Design
Statistical Tool
Data Collection
Hypothesis Study

 Limitations of Study
4. DATA ANALYSIS&INTERPRETATION
5. FINDINGS
6. SUGGESTIONS
7. CONCLUSION
8. BIBLIOGRAPHY
9. ANNEXURE

COMPANY PROFILE

Type

GmbH (Private company)

Industry

Engineering
Electronics

Founded

15 November 1886 (adopted

current name in 1937)

Founder(s) Robert Bosch

Headquart
Gerlingen, Germany
ers
Area
served

Worldwide

Key

Volkmar Denner (Chairman)

people
Products
Revenue

Automotive parts, Power tools,

Security systems, Home
appliance,
51.4 billion (2011)

Employees 303,000 (2011)

Website

www.bosch.com

Robert Bosch GmbH (commonly known as Bosch) is a German multinational engineering and
electronics company headquartered in Gerlingen, near Stuttgart. It is the world's largest supplier
of automotive components. The company was founded by Robert Bosch in Stuttgart in 1886.
Bosch's core products are automotive components (including brakes, controls, electrical drives,
electronics, fuel systems, generators, starter motors and steering systems), industrial products
(including drives and controls, packaging technology and solar panels) and consumer goods and

building products (including household appliances, power tools, security systems and
thermotechnology).
Bosch has more than 350 subsidiaries across over 60 countries and its products are sold in
around 150 countries. Bosch employs around 303,000 people and had revenues of approximately
51.4 billion in 2011. In 2010 it invested around 3.8 billion in research and development and
applied for over 3,800 patents worldwide. In 2009 Bosch was the leader in terms of numbers of
patents at the German Patent and Trade Mark Office (GPTO) with 3,213 patents.
Robert Bosch GmbH is privately owned, and 92% of its share capital is held by Robert Bosch
Stiftung GmbH, a charitable foundation The majority of voting rights are held by Robert Bosch
Industrietreuhand KG, an industrial trust. The remaining shares are held by the Bosch family and
by Robert Bosch GmbH. The Bosch logo represents a simple magneto armature and casing, one
of the company's first products.
"Brother Bosch", an Airman's Escape from Germany", was a free e-book I downloaded on a
whim. My knowledge of WWI is shallow, so shallow in fact that I did not realize that the
reference to "Bosch" in the title was a derogatory term used by the British to describe the
Germans. "Bosch" or, alternately, "Boche", is a slang word from the French. Loosely translated it
means "head" or "cabbage", and so came to be associated with the idea of pig-headedness or
stubbornness. Thus, when the Brits desired to put the "kibosh" on the enemy, it meant they
desired to stop or squelch them.
I love learning history via first-person accounts, and Gerald Featherstone Knight has an exciting
story to tell. He is winsome in the telling, somehow managing to make the adventure a huge
romp rather than a grim war story. By turns, he is both humble and proud. Humble, when
recounting his own feats relating to his escape from a German prison camp, but proud when
speaking of his English heritage. He has a very obvious sense of superiority over the Germans,
often expressed humorously:
"..we reached Hanover and were marched off through some of the main streets to an unknown
destination. The town is all right; it is the people that spoil it."
"The Germans put an illuminated Christmas tree in the dining hall, but unfortunately
counteracted their display of good feeling by decorating the large portraits of the Kaiser and
Hindenburg, who stared down at us from the walls and quite spoilt our already nasty food."
As you might ascertain from those quotes, the humour is typically British: subtle sarcasm that
"jabs" the enemy. I am quite sure that Mr. Knight's humour just might have been his saving
grace, being one of the weapons in his arsenal to keep despair at bay and ultimately deliver him
mentally unscathed in spite of harrowing circumstances.
The author's prison camp escape required a long journey, mostly traveling by night and hiding in
the daylight. He swam canals, took refuge in hay stacks, endured the elements, and suffered

privation. Here he gives the recipe for eating the last of his rations:
"I sat down and dissolved my last Oxo cube in a mug of cold, greenish canal water. The meal is
prepared as follows: First suck your middle finger until it tastes clean, then stir the Oxo until it is
dissolved (this usually takes about half an hour). Before drinking the concoction it is necessary to
remove any dead fishes that may be floating on the surface, and also make certain that none of
the Oxo is wasted by remaining underneath the finger nails."
Ultimately, his surreptitious journey and its accompanying miseries ended when he crossed
safely into Holland. In the final account, he gives a nod to God's role in his escape, but even God
does not escape his humour:
"Of all my escapes this was the most inexplicable. To what was it due? Certainly not to my own
initiative alone. Man's extremity is indeed God's opportunity. Supreme in the world of red tape,
far above the ken of misguided mortals, lives an omnipotent being--the Censor. In imagination,
he sits in a huge armchair, wreathed in tobacco smoke, casually sorting, from piles of
manuscript, the sheep from the goats. The former are destined to be smothered in official stamps
and coloured inks, while the latter are cast ignominiously into the gigantic waste-paper basket.
Though this little sheep, in particular, may have a little of its wool shorn off, I trust that it may
eventually avoid the rubbish heap."
I suspect the sensibilities of some modern readers might be offended by Knight's racial
superiority, but if you can forgive that fault you are in for a interesting read. This is a short
memoir, less than 100 pages. It is a human adventure story that merits the time it takes to read it.

STRENGTHS OF THE COMPANY

Our national presence in the Human Resource Industry is a direct

consequence of our intense and unrelenting focus on Quality of Service.
Very Strong and Diverse Database.
Team: Experienced, Diverse Backgrounds. National & International
Experience.
Sourcing Techniques : Very strong headhunting and passive sourcing
techniques
Infrastructure & Network: State of the Art Infrastructure & Pan India
Presence.

 Value Add: We listen to you. Understand your requirements. Impact your

business goals/systems by aligning our services to compliment your
requirements.
We excel in Customer Relations and high degree of Customer satisfaction.
Excellent & Customer Centric Service Delivery Mindset

INTRODUCTION
TO
CONSUMER
SATISFACTION

Introduction:
It is very significant for retailer to identify, understand and appeal to its consumers. If he does
not do so, it may lose out to its competitors. Therefore, every successful retailing strategy must
attempt to spotlight on the applied retailing theories by understanding the consumer
demographics, their life style changes and finally their needs and desires. Needs and desires in
reality persuade the attitude of the consumers.
Retail marketing research has bear out that approximately 60 70% of what consumers in
developed countries buy is open and more than two third of their purchases are usually without
any planning. Additionally, the bases for purchasing by an average consumer keep on shifting
over the day, week, month or the year. It is not possible that all the times consumer requirements
are going to be meet.
Consumer Behavior:
Identify Consumer Behavior is the important phase of retail business. A consumer may describe
his requirements and yet may act otherwise. He arrives to the store to purchase a particular item
but finally alter his mind and buys something else. He may modify his mind at any point of
buying procedure. Therefore, it becomes necessary for a retailer to understand consumers
buying behavior. Different Greek Philosophers/ scholars/ authors and practitioners have defined
consumer buying behavior variedly.

In the words of Professor C.G, Walter and G.W. Paul: it is the process where individuals decide
Whether, What, When, Where, How and from whom to purchase goods and services. The above
stated definition can be analyzed in the following ways:

Consumer behaviour is a decision process adopted by the consumer.

What types of products and services to be bought
When the products and services are to be obtained.
From where the products and services are to be obtained.
From whom the products and services are to be obtained.

NATURE OF CONSUMER BEHAVIOUR

Consumer behaviour can be defined as:
"The decision process and physical activity engaged in when evaluating, acquiring, using or
disposing of goods and services."
This definition raises a few queries in our minds-what or who are consumers? What is the
decision process that they engage in? Answers to these questions help define the broad nature of
consumer behaviour.
WHO IS CONSUMER?
A "consumer" is anyone who typically engages in any one or all of the activities described in our
definition. Traditionally consumers have been defined very strictly in terms of economic goods
and services, i.e. goods and services wherein a monetary transaction is involved. However, over
time this concept has been widened to include goods and services where a monetary exchange is
not involved. Thus, the services of voluntary organizations have also been included in this
definition, and users of the services of these organizations are also viewed as consumers. The
logic behind this approach is that consumers of free service also engage in the same kind of
decision process and physical activity as consumers of economic goods and services. A
"customer" is one who actually purchases a product or service from a particular organization or
shop. A customer is always defined in terms of a specific product or company.
However, the term consumer is a far wider term encompassing not only the actual buyer or
customer but also all its users, i.e. consumers. There are two situations when this distinction

between consumers and customers may occur, I) when the service or product is provided free,
and ii) when the customer is not the actual user of the product or is only one of the many users.
The second situation needs greater elaboration as it is of critical significance for us.
Very often, the actual customer making a purchase may not be doing so for himself or herself.
For instance, in case of a father buying a box of crayons for his four-year old daughter, the
customer is the father but the actual user of consumer is his daughter. Another case may be where
a father is buying a TV for the family members. The father is the customer but all the family
members are the consumers. The two vital elements to remember in all consumer situations are
a) the influence on purchase from other people and b) the roles taken on by different people in
consumer behavior situations.
In the instance of the father buying crayons for his daughter, the latter may not have had
influence at all on the purchase; the father is the decision maker and buyer and the daughter is
the user. In case of the father buying a TV for his family, it is quite likely that the wife and
children may have exerted considerable influence on the decision. The father is simply, the
buyer, while other family members may be influencers and all including the father, are users.
Table 1, 1 presents one way of classifying the roles that people can take on in the context of
consumer behavior.
Some Consumer Behavior Roles
Role Description

Initiator The person who determines that some need or want is not being met.
Influencer The person who intentionally/unintentionally influences the decision to buy

the actual purchase and/or use of product or service.

Buyer The person who actually makes the purchase.
User The person who actually uses or consumes the product or service.

You will read more about the different buying roles and their influence on family decision
making in Unit 9 of this course. These buying roles may vary in different buying situations.
While studying consumer behavior we have to keep in mind all the various consumer roles that
can possibly be taken on. But in practical terms it may be very difficult to study all these roles.
Therefore, the emphasis of study is on one role that of the buyer. The reason for this is that this is
the only part of the behavior which is overt and visible.
SCOPE OF CONSUMER BEHAVIOUR

The scope of a subject refers to everything that is studied as part of that subject. When we set out
to explain the scope of consumer behavior we need to refer to all that which forms part of
consumer behavior.
The scope of consumer behavior has been briefly touched upon in the previous section wherein it
was explained that how consumer behavior includes not only the actual buyer and his act of
buying but also the various roles played by different individuals and the influence they exert on
the final purchase decision. In this section we shall define and explain the scope of study of
consumer behavior.
To define the scope of a subject it is important to set parameters or a framework within which it
shall be studied. Figure 1.1 presents one such framework for studying consumer behavior. This
framework is made up of three main sections-the decision process as represented by the innermost circle, the individual determinants on the middle Circle and the external environment which
is represented by the outer circle. The study of all these three sections constitutes the scope of
consumer behavior. Here, we shall dwell on these constituents of the framework only briefly as
they are explained in detail in the following units.

CONSUMER BUYING BEHAVIOUR

PURCHASE PROCESS
Introduction
What influences consumers to purchase products or services? The consumer buying process is a
complex matter as many internal and external factors have an impact on the buying decisions of
consumers. Consumers do not spend much time thinking about the purchase of low value
products which are bought on impulse. Manufacturers of such products will need to implement
strategies that encourage consumers to buy on impulse from them instead of their
competitors.When consumers purchase high value products or non impulse products, they often
go through a set process. This process is discussed below. On the next page there is a discussion
of what influences consumer buying behaviour and the different types of buying behaviour.

Problem or Need Recognition

How do you decide which particular product or service to purchase? It could be that your BluRay DVD player stops working and you now have to look for a new one; otherwise you will not
be able to play your Blu-Ray films so you have a problem or a new need. This is the first step in
the consumer buying process.

Information search
So we have a problem, our Blu-Ray player no longer works and we need to buy a new one. What
is the solution? Yes go out and purchase a new one, but which brand? Shall we buy the same
brand as the one that blew up? Or stay clear of that just in case the new player experiences the
same problems as the old one? Consumer often go on an information search to help them choose
their product. Sources of information include family, friends, retail staff and in this digital age
the internet. The internet contains information about products (specifications), product reviews
and online product forums. Information search may involve a visit to a retail store to view
products that the consumer is interested in purchasing. In our example the consumer is on an
information search to solve an immediate problem; they intend to make a purchase at the end of
the process. Consumers also acquire and store information for future purchases. Firms will take
such consumers into account when designing their marketing strategies, in the hope that when

such a consumer is ready to buy they will use the "stored" information about their product into
account and buy their products.
Evaluation of different purchase options
So what Blu-Ray DVD player do we purchase? Will it be a Sony, Toshiba or Samsung player?
Consumers often create a point system in their minds where products are scored based on how
many of their features appeal to them. So for one customer, brand may be more important then
price and for another customer product appearance may be important. In the case of a DVD
player consumers may be reviewing sound and picture quality. An evaluation system is
particularly useful when there is a large number of options. Marketing strategies will try and
influence this stage of the process by highlighting product features that they think will appeal to
consumers. Appealing product features will be emphasized on product packaging, promotional
materials and the manufacturer's websites.
Purchase decision
After the evaluation process consumers will select the product they would like to purchase. Once
product may be a clear winner or the consumer may have to reprioritize their criteria to help
them select a product. The job of the seller is to ensure that the purchase process is simple and
effective. Even at this stage the purchaser could change their mind and select a competitor
product or cancel the purchase altogether. A long queue, impolite sales staff or complicated sales
process can all dissuade consumers from buying. Even if a consumer buys on this occassion a
negative buying experience could stop them buying in the future. Therefore sellers need to make
the buying process as simple and enjoyable as possible to safeguard this and future purchases.
Post Purchase Behaviour
Ever have doubts about the product after you purchased it? Research shows that this feeling is a
common post purchase behaviour. Manufacturers of products clearly want purchasers to feel
proud of their purchase, so that they will purchase from them again and recommend them to
family and friends. It is therefore just as important for manufacturer's promotions to reassure
purchasers, as it is for them to attract new customers. Promotions should make purchasers feel

that they have bought their product from a strong and reputable organisation with "good"
products.

FACTORS INFLUENCING THE BEHAVIOUR OF BUYERS

Introduction
Consumer behaviour is affected by many uncontrollable factors. Just think, what influences you
before you buy a product or service? Your friends, your upbringing, your culture, the media, a
role model or influences from certain groups?
Status and Culture
Culture is one factor that influences behaviour. Simply culture is defined as our attitudes and
beliefs. But how are these attitudes and beliefs developed? As an individual growing up, a child
is influenced by their parents, brothers, sister and other family member who may teach them
what is wrong or right. They learn about their religion and culture, which helps them develop
these opinions, attitudes and beliefs (AIO) . These factors will influence their purchase behaviour
however other factors like groups of friends, or people they look up to may influence their
choices of purchasing a particular product or service. Reference groups are particular groups of
people some people may look up towards to that have an impact on consumer behaviour. So they
can be a singer like the Lady Gaga or your immediate family members. Opinion leaders are those
people that you look up to because your respect their views and judgments and these views may
influence consumer decisions. So it maybe a friend who works with the IT trade who may
influence your decision on what computer to buy. The economical environment also has an
impact on consumer behaviour; do consumers have a secure job and a regular income to spend
on goods? Marketing and advertising obviously influence consumers in trying to evoke them to
purchase a particular product or service.
People's social status will also impact their behaviour. Clearly being parents affects your buying
habits depending on the age of the children, the type of job may mean you need to purchase
formal clothes, the income which is earned has an impact. The lifestyle of someone who earns
250000 would clearly be different from someone who earns 25000. Also characters have an

influence on buying decision. Whether the person is extrovert (out going and spends on
entertainment) or introvert (keeps to themselves and purchases via online or mail order) again
has an impact on the types of purchases made.

Maslows Hierarchy of Needs

Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in life
to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to meet
basic psychological needs of hunger and thirst. When this has been met they then move up to the
next stage of the hierarchy, safety needs, where the priority is with job security and knowing that
you have a regular income. Social needs come in the next level of the hierarchy, the need to
belong or be loved is a natural human desire and people strive for this belonging. Esteem need is
the need for status and recognition within society, status sometimes drives people, the need to
have a good job title and be recognised or the need to wear branded clothes as a symbol of status.
Self-actualisation the realisation that an individual has reached their potential in life. The point of
self-actualisation is down to the individual, when do you know you have reached your point of
self-fulfilment?
But how does this concept help an organisation trying to market a product or service?
Well as we have established earlier within this website, marketing is about meeting needs and
providing benefits, Maslows concept suggests that needs change as we go along our path of
striving for self-actualisation. Supermarket firms develop value brands to meet the psychological
needs of hunger and thirst. Harrods develops products and services for those who want have met
their esteem needs. So Maslows concept is useful for marketers as it can help them understand
consumer needs and wants.

Types of buyingbehaviour.
There are four typical types of buying behaviour based on the type of products that intends to be
purchased.

1. Complex buying behaviour is where the individual purchases a high value brand and
seeks a lot of information before the purchase is made.
2. Habitual buying behaviouris where the individual buys a product out of habit e.g. a
daily newspaper, sugar or salt.
3. Variety seeking buying behaviour is where the individual likes to shop around and
experiment with different products. So an individual may shop around for different
breakfast cereals because he/she wants variety in the mornings!
4. Dissonance reducing buying behaviour is when buyers are highly involved with the
purchase of the product, because the purchase is expensive or infrequent. There is little
difference between existing brands an example would be buying a diamond ring, there is
perceived little difference between existing diamond brand manufacturers.

Factors Affecting Consumer Behavior:

There are various other factors influencing the purchases of consumer such as social, cultural,
personal and psychological. The explanation of these factors is given below.
Cultural Factors:
Consumer behavior is deeply influenced by cultural factors such as: buyer culture,
subculture, and social class.
Culture: Basically, culture is the part of every society and is the important cause of
person wants and behavior. The influence of culture on buying behavior varies from
country to country therefore retailers have to be very careful in analyzing the culture of
different groups, regions or even countries.

Subculture: Each culture contains different subcultures such as religions, nationalities,

geographic regions, racial groups etc. Retailers can use these groups by segmenting the
market into various small portions. For example retailers can design products according
to the needs of a particular geographic group.
Social Class: Every society possesses some form of social class which is important to the
retailers because the buying behavior of people in a given social class is similar. In this
way marketing activities could be tailored according to different social classes. Here we
should note that social class is not only determined by income but there are various other
factors as well such as: wealth, education, occupation etc.
Social Factors:
Social factors also impact the buying behavior of consumers. The important social factors
are: reference groups, family, role and status.
Reference Groups: Reference groups have potential in forming a person attitude or
behavior. The impact of reference groups varies across products and brands. For example
if the product is visible such as dress, shoes, car etc then the influence of reference groups
will be high. Reference groups also include opinion leader (a person who influences other
because of his special skill, knowledge or other characteristics).
Family: Buyer behavior is strongly influenced by the member of a family. Therefore
retailers are trying to find the roles and influence of the husband, wife and children. If the
buying decision of a particular product is influenced by wife then the retailers will try to
target the women in their advertisement. Here we should note that buying roles change
with change in consumer lifestyles.
Roles and Status: Each person possesses different roles and status in the society
depending upon the groups, clubs, family, organization etc. to which he belongs. For
example a woman is working in an organization as finance manager. Now she is playing
two roles, one of finance manager and other of mother. Therefore her buying decisions
will be influenced by her role and status.

Personal Factors:
Personal factors can also affect the consumer behavior. Some of the important personal
factors that influence the buying behavior are: lifestyle, economic situation, occupation,
age, personality and self concept.
Age: Age and life-cycle have potential impact on the consumer buying behavior. It is
obvious that the consumers change the purchase of goods and services with the passage
of time. Family life-cycle consists of different stages such young singles, married
couples, unmarried couples etc which help retailers to develop appropriate products for
each stage.
Occupation: The occupation of a person has significant impact on his buying behavior.
For example a marketing manager of an organization will try to purchase business suits,
whereas a low level worker in the same organization will purchase rugged work clothes.
Economic Situation: Consumer economic situation has great influence on his buying
behavior. If the income and savings of a customer is high then he will purchase more
expensive products. On the other hand, a person with low income and savings will
purchase inexpensive products.
Lifestyle: Lifestyle of customers is another import factor affecting the consumer buying
behavior. Lifestyle refers to the way a person lives in a society and is expressed by the
things in his/her surroundings. It is determined by customer interests, opinions, activities
etc and shapes his whole pattern of acting and interacting in the world.
Personality: Personality changes from person to person, time to time and place to place.
Therefore it can greatly influence the buying behavior of customers. Actually, Personality
is not what one wears; rather it is the totality of behavior of a man in different
circumstances. It has different characteristics such as: dominance, aggressiveness, self-

confidence etc which can be useful to determine the consumer behavior for particular
product or service.
Psychological Factors:
There are four important psychological factors affecting the consumer buying behavior.
These are: perception, motivation, learning, beliefs and attitudes.
Motivation: The level of motivation also affects the buying behavior of customers. Every
person has different needs such as physiological needs, biological needs, social needs etc.
The nature of the needs is that, some of them are most pressing while others are least
pressing. Therefore a need becomes a motive when it is more pressing to direct the
person to seek satisfaction.
Perception: Selecting, organizing and interpreting information in a way to produce a
meaningful experience of the world is called perception. There are three different
perceptual processes which are selective attention, selective distortion and selective
retention. In case of selective attention, retailers try to attract the customer attention.
Whereas, in case of selective distortion, customers try to interpret the information in a
way that will support what the customers already believe. Similarly, in case of selective
retention, retailers try to retain information that supports their beliefs.
Beliefs and Attitudes: Customer possesses specific belief and attitude towards various
products. Since such beliefs and attitudes make up brand image and affect consumer
buying behavior therefore retailers are interested in them. Retailers can change the beliefs
and attitudes of customers by launching special campaigns in this regard.

Theory of Consumer Behavior

Basics

The Theory of Consumer Behavior, like the Law of Demand, can be explained by the
Law of Diminishing Marginal Utility.

Consumer Behavior is how consumers allocate their money incomes among goods and
services.

Consumer Choice and Budget Constraint:

Rational behavior:
o The consumer is a rational person, who tries to use his or her money income to
derive the greatest amount of satisfaction, or utility, from it. Consumers want to
get "the most for their money" or, to maximize their total utility. Rational
behavior also "requires" that a consumer not spend too much money irrationally
by buying tons of items and stock piling them for the future, or starve themselves
by buying no food at all. Consumers (we assume) all engage in rational behavior.

Preferences:
o Each consumer has preferences for certain of the goods and services that are
available in the market. Buyers also have a good idea of how much marginal
utility they will get from successive units of the various products they might
purchase. However, the amount of marginal & total utility that the people will get
will be different for every individuals in the group because all individuals have
different taste and preferenes.

Budget Constraint:
o The consumer has a fixed, limited amount of money income. Because each
consumer supplies a finite amount of human and property resources to society, he
or she earns only limited income.

o Every consumer faces a budget constraint

o There is infinite demand, but limited income

Prices:
o Goods are scarce because of the demand for them. Each consumers purchase is a
part of the total demand in a market. However, since consumers have a limited
income, they must choose the most satisfying combination of goods based
partially on prices. For producers, a lower price is needed in order to induce a
consumer to buy more of their product.

Utility Maximizing Rule:

To maximize satisfaction, a consumer should allocate his or her money so that the last
dollar spent on each product, yields the same amount of marginal (extra) utility.

When marginal utility are equivalent, consumer is in a equilibrium.

Marginal Utility per dollar:

Rational consumers should compare extra utility from each product with its added price.

Although spending all of one's income yields the greatest total utility, saving can be
regarded as "commodity", that yields utility.

MU/$ is found by taking the Marginal utility per good over the price of each good.
o This can be used to determine a buying pattern, and to help figure out what goods
will be bought when.

Consumer Behavior and Marketing Strategy

A sound understanding of consumer behavior is essential to the long-run success of any

marketing program. In fact, it is seen as a cornerstone of the marketing concept, an important

orientation or philosophy of many marketing managers.
The following descriptions explore the role of consumer behavior in designing and deploying
three major marketing activities.
Market-Opportunity Analysis
This activity involves examining trends and conditions in the marketplace to identify consumers'
needs and wants that are not being fully satisfied. The analysis begins with a study of general
market trends, such as consumers' lifestyles and income levels, which may suggest unsatisfied
wants and needs. More specific examination involves assessing any unique abilities the company
might have in satisfying identified consumer desires.
A variety of recent trends have resulted in many new product offerings for consumer satisfaction.
For example, companies attuned to the fitness interests of Americans have been quick to offer
such new products as exercise bicycles, weight training books, and clothing. In the health care
field, companies sensing consumers' unmet medical needs have offered coin-operated blood
pressure testing machines at shopping centers and other convenient locations.
Target-Market Selection
The process of reviewing market opportunities often results in identifying distinct groupings of
consumers who have unique wants and needs. This can result in a decision to approach each
market segment with a unique marketing offering. Consider the soft drink market. Here, major
segments of ultimate consumers are distinguished by the type of purchase situation: (1) the food
store segment, (2) the "cold bottle" or vending machine segment, and (3) the fountain market,
which includes fast-food outlets. Unique packaging arrangements (container type and size), point
of purchase promotions, and other variations are made for each segment.
In other cases, the marketer may decide to concentrate company efforts on serving only one or a
few of the identified target markets. An excellent example of this occurred in the bath soap
market. By segmenting consumers according to their lifestyle patterns and personalities, the
Colgate-Palmolive company was able to identify a unique group of consumers in need of a
certain type of deodorant soap. Development of Irish Spring for this target group led to the

capturing of 15 percent of the deodorant soap market within three years of introduction.
Marketing-Mix Determination
This stage involves developing and implementing a strategy for delivering an effective
combination of want-satisfying features to consumers within target markets. A series of decisions
are made on four major ingredients frequently referred to as the marketing mix-variables:
product, price, place, and promotion.

MODALS OF CONSUMER BEHAVIOUR

Source: Nicosia, (1976).
The Nicosia model is divided into four major fields:
Field 1: The consumer attitude based on the firms messages.
The first field is divided into two subfields.
The first subfield deals with the firms marketing environment and communication efforts
that affect consumer attitudes, the competitive environment, and characteristics of target
market. Subfield two specifies the consumer characteristics e.g., experience, personality,
and how he perceives the promotional idea toward the product in this stage the consumer
forms his attitude toward the firms product based on his interpretation of the message.
Field 2: search and evaluation
The consumer will start to search for other firms brand and evaluate the firms brand in
comparison with alternate brands. In this case the firm motivates the consumer to purchase
its brands.
Field 3: The act of the purchase
The result of motivation will arise by convincing the consumer to purchase the firm

products from a specific retailer.

Field 4: Feed back
This model analyses the feedback of both the firm and the consumer after purchasing the
product. The firm will benefit from its sales data as a feedback, and the consumer will use
his experience with the product affects the individuals attitude and predispositions
concerning future messages from the firm.

The Nicosia model offers no detail explanation of the internal factors, which may affect
the personality of the consumer, and how the consumer develops his attitude toward the
product. For example, the consumer may find the firms message very interesting, but
virtually he cannot buy the firms brand because it contains something prohibited
according to his beliefs. Apparently it is very essential to include such factors in the
model, which give more interpretation about the attributes affecting the decision process.

HOWARD-SHETH MODEL
This model suggests three levels of decision making:
1. The first level describes the extensive problem solving. At this level the consumer does
not have any basic information or knowledge about the brand and he does not have any
preferences for any product. In this situation, the consumer will seek information about all
the different brands in the market before purchasing.
2. The second level is limited problem solving. This situation exists for consumers who
have little knowledge about the market, or partial knowledge about what they want to
purchase. In order to arrive at a brand preference some comparative brand information is
sought.
3. The third level is a habitual response behavior. In this level the consumer knows very

well about the different brands and he can differentiate between the different
characteristics of each product, and he already decides to purchase a particular product.
According to the Howard-Sheth model there are four major sets of variables; namely:

a) Perceptual and Learning Constructs,

The central part of the model deals with the psychological variables involved when the
consumer is contemplating a decision. Some of the variables are perceptual in nature, and
are concerned with how the consumer receives and understands the information from the
input stimuli and other parts of the model. For example, stimulus ambiguity happened
when the consumer does not understand the message from the environment. Perceptual
bias occurs if the consumer distorts the information received so that it fits his or her
established needs or experience. Learning constructs category, consumers goals,
information about brands, criteria for evaluation alternatives, preferences and buying
intentions are all included. The proposed interaction In between the different variables in
the perceptual and learning constructs and other sets give the model its distinctive
advantage.
b) Outputs
The outputs are the results of the perceptual and learning variables and how the consumers
will response to these variables (attention, brand comprehension, attitudes, and intention).
c) Exogenous(External) variables
Exogenous variables are not directly part of the decision-making process. However, some
relevant exogenous variables include the importance of the purchase, consumer
personality traits, religion, and time pressure.
The decision-making process, which Howard-Sheth Model tries to explain, takes place at
three Inputs stages: Significance, Symbolic and Social stimuli. In both significative and
symbolic stimuli, the model emphasizes on material aspects such as price and quality.
These stimuli are not applicable in every society. While in social stimuli the model does
not mention the basis of decision-making in this stimulus, such as what influence the

family decision? This may differ from one society to another.

Finally, no direct relation was drawn on the role of religion in influencing the consumers
decision-making processes. Religion was considered as external factor with no real
influence on consumer, which give the model obvious weakness in anticipation the
consumer decision.

Bettmans Information Processing Model of Consumer Choice

Bettman (1979) in his model describes the consumer as possessing a limited capacity for
processing information. He implicate that the consumers rarely analyze the complex
alternatives in decision making and apply very simple strategy.
In this model there are seven major stages.
Stage No. 1: Processing capacity
In this step he assumes that the consumer has limited capacity for processing information,
consumers are not interested in complex computations and extensive information
processing. To deal with this problem, consumers are likely to select choice strategies that
make product selection an easy process.
Stage No. 2: Motivation
Motivation is located in the center of Bettman model, which influence both the direction
and the intensity of consumer choice for more information in deciding
Between the alternatives Motivation is provided with hierarchy of goals mechanism that
provides a series of different sub-goals to simplify the choice selection. This mechanism
suggests that the consumers own experience in a specific area of market and he doesnt
need to go through the same hierarchy every time to arrive at a decision, which make this
mechanism serves as an organizer for consumer efforts in making a choice. No concern

was given on religious motives, and how religion may motivate the consumer in his
decision. Most of the general theories of motivation such as Maslows hierarchy of needs
(1970) emphasizes self-achievement, the need for power, and the need for affiliation.
Stage No. 3: Attention and perceptual encoding.

The component of this step is quite related to the consumer's goal hierarchy. There are two
types of attention; the first type is voluntary attention, which is a conscious allocation of
processing capacity to current goals. The second is involuntary attention, which is
automatic response to disruptive events (e.g., newly acquired complex information). Both
different types of attention influence how individuals proceed in reaching goals and
making choices. The perceptual encoding accounts for the different steps that the
consumer needs to perceive the stimuli and whether he needs more information.
Stage No. 4: Information acquisition and evaluation
If the consumer feels that the present information is inadequate, he will start to look for
more information from external sources. Newly acquired information is evaluated and its
suitability or usefulness is assessed. The consumer continues to acquire additional
information until all relevant information has been secured, or until he finds that acquiring
additional information is more costly in terms of time and money.
Stage No. 5: Memory
In this component the consumer keeps all the information he collects, and it will be the
first place to search when he need to make a choice. If this informations is not sufficient,
no doubt he will start looking again for external sources.
Stage No. 6: Decision Process
This step in Bettmans model indicates that different types of choices are normally made
associated with other factors, which may occur during the decision process. Specifically,
this component deals with the application of heuristics or rules of thumb, which are
applied in the selection and evaluation of specific brand. These specific heuristics a
consumer uses are influenced by both individual factors (e.g., personality differences) and

situational factors (e.g., urgency of the decision); thus it is unlikely that the same decision
by the same consumer will apply in different situation or other consumer in the same
situation.

Stage No. 7: Consumption and Learning Process

In this stage, the model discusses the future results after the purchase is done. The
consumer in this step will gain experience after evaluating the alternative. This experience
provides the consumer with information to be applied to future choice situation. Bettman
in his model emphasize on the information processing and the capacity of the consumer to
analyze this information for decision making, but no explanation was given about the
criteria by which the consumer accepts or refuses to process some specific information.

Solomon Model of comparison process

Some of the issues that are addressed during each stage of the consumption process. The
exchange, in which two or more organizations or people give and receive something of value,
is an integral part of marketing. He also suggested that consumer behavior involves many
ferment actors. The purchaser and user of a product might not be the same person. People may
also act as influences on the buying processes. Organizations can also be involved in the buying
process. Much of marketing activity, they suggest, concentrates on adapting product offerings to
particular circumstances of target segment needs and wants. It is also common to stimulate an
already existing want through advertising and sales promotion, rather than creating wants. The
definitions and models, which have been presented so far, have been from general marketing
theory. Tourism is, by its very nature, a service rather than a product, which may have a
considerable effect on consumer behavior.
Stimulus-Response Model of Buyer Behavior
Middleton (1994) presented an adapted model of consumer behavior tourism, which was termed
the model separates out motivators and determinants in consumer buying behavior
and also emphasizes the important effects that an organization can have on the
consumer buying process by the use of communication channels. Schmoll (1977)

quoted in Cooper et al. (1993), developed a model which hypothesized that

consumer decisions were a result of four elements as follows:

travel stimuli, including guide books, reports from other travelers and advertising and
promotion

personal and social determinants of travel behaviour including motivators, desires and
expectations

external variables, including destination images, confidence in travel trade intermediaries and
constraints such as cost and time

Characteristics and features of the service destination such as the perceived link between cost
and value and the range of attractions and amenities offered.

Model of Consumer Decision-Making Framework

Gilbert (1991) suggested a model for consumer decision-making in which is shown in Figure
2.10 This model suggests that there are two levels of factors that have an effect on the consumer.
The first level of influences is close to the person and includes psychological influence such as
perception and learning. The second level of influences includes those, which have been
developed during the socialization process and include reference groups and family influences.
All these models that have been adapted for tourism offer some into the consumer behavior
process involved during the purchase post-purchase decision stages.

Socioeconomic influences

Cultural influences

Motivation or energizers

Perception

Consumer or
Decision-maker
Personality/ attitude

Reference group influences

Learning

Family influences

Consumer Decision-Making Framework

RESEARCH METHODOLOGY4,-- Research in

common parlance refers to search for knowledge. It can also be
defined as a scientific and systematic search for information on
a specific topic. A research design is the arrangement of
conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with
economy in procedure. Decisions regarding what, where, when,
how much, by what means concerning a research study
constitute a research design. Sampling can be defined as the
Selection of some part of an aggregate or totality on the basis of
which a judgment or inference about the aggregate or totality is
made
Cooper Donald R.,Schindler Pamela S5---Broadly the sources of data are: Primary Sources
Secondary sources.
Primary data are those which are collected for the first time and
thus happen to be original in character.

Primary data is collected through: Questionnaires

Observation Method
Schedules

The secondary data are those which have already been collected by someone else & which
have already passed through the statistical process.
Secondary data has been collected through: Magazines, Journals, Pamphlets, Websites of the selected car companies
Gupta S.P6--- Correlation is a statistical technique which helps in analyzing the
relationship between two or more variables. It is used in measuring the closeness of
relationship between variables.
Gupta S C,Kapoor V K7--- Correlation is a statistical technique which helps in analyzing
the relationship between two or more variables. It is used in measuring the closeness of
relationship between variables. The study of correlation is of immense significance in
statistical analysis and practical life:
Tull Donald S,Hawkings Del I8--- Questionnaires are considered
as the heart of survey operations and therefore should be very carefully constructed. It
consists of a number of questions printed or typed in a definite order which is filled by
the respondents on their own.
A good questionnaire should be comparatively short and simple and the sequence shall be
from easy the difficult ones.
Advantages of questionnaires are:
They are economical.
They are free from the biasness of the interviewers.

 Respondents have adequate time to give well thought to their answers.

Respondents can be reached conveniently.
Large samples can be used and therefore the results are more dependable.
Schiffman Leon G, Kanuk Leslie Lazar9---- Study of the customer behavior is the study
of how individuals make decisions to spend their available resources (Time, Money and
Efforts) on consumption related items. It includes the study what they buy, whey they buy
it, when they buy it, where they buy it, how often they buy it and how often they use it.
The primary purpose for the study consumer behavior as apart of marketing curriculum is
to understand how and how customers make their purchase decisions. There insights
enable marketers to design more effective marketing strategies.
Nair Suja R10---The success of the firm will be determined by how effective it has been in
meeting the diverse customer needs and wants by treating each customer as unique and
offering products and services to suit his/her needs

CHAPTER 2

OBJECTIVES OF STUDY

To study the consumer behavior regarding GAGAN UDYOG PVT. LTD. products.
To know the perception of the consumers regarding GAGAN UDYOG PVT. LTD.

products.
To study the satisfaction of customers regarding GAGAN UDYOG PVT. LTD. products.

CHAPTER 3

RESEARCH
METHODOLOGY

Research Methodology
For the purpose of this study, I take research tool questioner to find out the relevant primary data
pertaining to Buying Behavior of Retail Customer

The data was collected based on information provided by:

The primary data collected with the help of research tools questioner. After the study a sample of
40 was taken from customer and the collected data was analysis by every graph .
DATA COLLECTION
The data required for the study were collected from both from primary and secondary sources.
The primary data were collected from the fifty selected respondents using a +questionnaire. The
views of the respondents regarding level of satisfaction on indicated variables were collected on
a three-point scale.
The secondary data were collected from published reports, books, journals, administrative report
of the company and websites.
Sample size

As mentioned above the study has been conducted by selecting fifty non managerial employees
(random selection) from among a total of hundred employees in BIRLA SUNLIFE
INSURENCE. a detailed view of the selection is given below:

Details of population and sample

Population

Sample

79

40

GYNOLOGISTS DOCTORS 21

10

Total

50

PHYSIANS DOCTORS

100

Data Analysis Observations & Discussion:

The primary data collected from the respondents were analyzed grouping the respondents based
on sex. Results are reported primarily using percentage. Graphical representations in the form of
charts and graphs are also given for improved understanding

Q2. Which medical equipments are used by you right now

and of which company/brand?

SAMPLE SIZE
TOTAL DOCTORS
50

RESPONSES /
OPTIONS
YES
38%

NO
12%

40%
35%
30%
25%
20%
15%
10%
5%
0%

Analysis:-Fig. A shows the behavior of doctors towards the brand. 38% doctors say that they are
using Phillips medical equipments. only 12% doctors say that they are using BPL company.

If any discount is given to you then you are ready to buy the product?
SAMPLE SIZE
TOTAL CONSUMER
50

RESPONSES /
OPTIONS
YES
40%

NO
10%

40%
35%
30%
25%
20%
15%
10%
5%
0%

Analysis: - Fig. B shows the behavior of consumer towards the discount on product. 40% of
customer says that if discount is give to the product than they will purchase the product but 10%
of respondents says that their buying decision will not effected by giving the discount on
product.

Does reference group effect on your buying decision?

SAMPLE SIZE
TOTAL BUYERS
50

RESPONSES /
OPTIONS
YES
45%

NO
5%

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Analysis:-Fig. C show that 45% respondents says that reference group effect on their buying
decision but 5% respondents says that reference group does effect on buying behavior.

Do you give first preference to needed goods?

SAMPLE SIZE
TOTAL BUYERS
50

RESPONSES /
OPTIONS
YES
48%

NO
2%

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Analysis:-Fig. D shows that 48% of respondents says that they will give first preference to buy
those products that are needed, but 2% respondent says that they will not give first preference to
needed products.

Does advertisement effect on your buying decision?

SAMPLE SIZE
TOTAL BUYERS

RESPONSES /
OPTIONS
YES

NO

50

30%

20%

30%
25%
20%
15%
10%
5%
0%

Analysis:- Fig. E shows that 30% customer says advertising very effect on their buying decision
because an advertisement show good image of the product in our mind so change our buying
behavior and only 20% customer says no effect on buying behavior.

Do you purchase those goods which show your high status?

SAMPLE SIZE

RESPONSES /
OPTIONS

TOTAL BUYERS
50

YES
20%

NO
30%

30%
25%
20%
15%
10%
5%
0%

Analysis: - Fig .F shows that the rich customer buys those products which show their high status
and some respondents do not want to buy those products because their income is not high. Both
20% customers are belongs to rich family so these customers buy high quality product at a high
rate and only 30% customers are not buy high quality product.

Does the shopkeeper advice change your buying decision?

SAMPLE SIZE
TOTAL BUYERS
50

RESPONSES /
OPTIONS
YES
25%

NO
25%

25%
20%
15%
10%
5%
0%

Analysis: - Fig. G shows that only 25% customer says a shopkeeper use different types of
motivational techniques for attract his customer and his advice effect on his buying decision and
25% customer says shopkeeper advice not effect on their buying behavior because they thought
shopkeeper only tried to sale their sale product and he is not giving the right advice to customer.

LIMITATIONS
FINDINGS
AND
CONCLUSION

LIMITATIONS OF THE STUDY

The study is subjected to certain limitations. Even though care has been taken in collection,
classification and analysis of data, the following limitations were noticed:(i)
(ii)

There is small sample size of the study due to organizational constraints.

Many of the respondents had not given response that makes the data collection vague
to certain extent.

(iii)

Generally the respondents were busy in their work and were not interested in

(iv)

responding rightly.
Respondents were reluctant to disclose complete and correct information about

(v)
(vi)

themselves and the organization.

Due to lack of awareness it was difficult to get proper data from the employees.
The last but the most important point is that the survey was carried through
Questionnaire and the Questions were based on perception.

FINIDING
(i)
(ii)
(iii)
(iv)
(v)
(vi)

Most of people say brand name effect on their buying behavior

More people say they purchase more on discount
The buying behaviour of many people effect by reference group
Mostly people give first preference to needed goods
Advertisement also effect buying decision
Few people purchase those goods which shows their high status

CONCLUSION
This Unit attempts to introduce you to the subject of consumer behaviour and all that which is
studied as part of this. Consumer behaviour comprises the entire spectrum of activities and
processes which individuals engage in when buying, using, acquiring or disposing of goods and
services. The purchase is only one part of this range of activities. The focus of study in consumer
behaviour is the individual making the purchase, but sometimes he may be purchasing on behalf
of somebody else. To get a complete picture it is necessary to include both the buyer and user in
the realm of consumer behaviour. The study of consumer behaviour is concerned with the
decision process involved in a purchase. This process may comprise physical and mental
activities preceding and following the purchase event.
During this decision process, the consumer is influenced, by a variety of factors. These
influencing variables can be broadly divided into two categories, namely, individual

determinants and external variables. These were briefly touched upon in this Unit and shall be
explained in greater detail in later units.
An understanding of consumer behaviour is of critical importance to all persons engaged in any
form of marketing activity, its importance stems from the fact that i) behaviour of consumers can
be understood, ii) the behaviour can be influenced, and iii) the marketer can manipulate these
influencing variables to his advantage.
Consumer behaviour is also applicable in case of non-commercial, non-profit marketing. "Run
for your country" and other such runs organized on special occasions such as India completing
40 years of Independence, used various types of appeals in order to motivate the maximum
participation. Organizations such as Red Cross, Blood Banks, Heart Foundation, Indian Cancer
Society, UNICEF, etc. all use an understanding of consumer behaviour to market their services,
sell their products (greeting cards in case of UNICEF), and to motivate people to donate, get
regular.

APPENDICES

Appendices:
QUESTIONNAIRE

Personal data
Name :
Age

Sex

Male/ Female

Q.1 Does brand name effect on your buying behavior?

Yes

No

Q.2 if any discount is given to you then you is ready to buy the product?
Yes

No

Q.3 Does reference group effect on your buying decision?

Yes

No

Q.4 Does quality, quantity and price effect on your buying decision?
Yes

No

Q.6 Does advertisement effect on your buying decision?

Yes

No

Q.7 Do you purchase those goods which show your high status?
Yes

No

Q.8 Does low price effect on your buying decision?

Yes

No

Q. 9 Do you purchase the goods according to new fashion, new trend?

Yes

No

Q.10 Does the shopkeeper advice change your buying decision?

Yes

No

Q. 11 Any Suggestions
______________________________________________________________________________
______________________________________________________________________________

Bibliography

Bibliography
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