Honey Project Work

A PROJECT REPORT ON

CONSUMER PREFERENCES TOWARDS

DIGITAL SHOPPY (A CASE STUDY ON PRATYANKARA ELECTRONICS)

PROJECT REPORT Submitted in partial fulfillment for the award of the degree

BACHELOR OF BUSINESS MANAGEMENT

KAKATIYA UNIVERSITY Warangal

BY

M. LAKSHMI NARAYANA H.T. No. : 07605 - 1816

Under the Guidance of

V. USHA RANI, M.B.A.

DEPARTMENT OF COMMERCE AND BUSINESS MANAGEMENT KAVITHA MEMORIAL DEGREE COLLEGE KHAMMAM

V. USHA RANI, M.B.A. Lecturer in Commerce & Business Management

Department of Commerce & Business Management Kavitha Memorial Degree College Khammam - 507 002.

CERTIFICATE

This is to certify that the project report entitled “CONSUMER PREFERENCES TOWARDS DIGITAL SHOPPY” has been prepared by M. LAKSHMI NARAYANA under my supervision.

He has completed this project work as per the rules prescribed for practical work done by his and has not been submitted either in full or part for any degree or diploma or any University earlier.

(V. USHA RANI) Project Guide

V. Devender, M.Com., M.Phil. Lecturer in Commerce & Business Management

Head of the Department Department of Commerce & Business Management Kavitha Memorial Degree College Khammam - 507 002.

CERTIFICATE

This is to certify that the project report entitled

“CONSUMER

PREFERENCES TOWARDS DIGITAL

SHOPPY” has been prepared by M. LAKSHMI NARAYANA

He has completed this project work as per the rules prescribed for practical work done by his and has not been submitted either in full or part for any degree or diploma or any University earlier.

(V. DEVENDER) HEAD OF THE DEPARTMENT

DECLARATION

I hereby declare that this project report entitled “CONSUMER PREFERENCES TOWARDS DIGITAL SHOPPY”

has prepared by me during the year

2006-2007, under the guidance of V. USHA RANI.

I also declare that this project is the result of my own efforts and it has not been submitted to another university for the award of any Degree or Diploma.

(M. LAKSHMI NARAYANA )

DATE : PLACE : KHAMMAM.

ACKNOWLEDGEMENT

I acknowledge my sincere thanks to Mr. M. Satyanarayana, Principal of Kavitha Memorial Degree College, for his co-operation in an excellent manner to prepare this project work.

My humble thanks to Mr. V. Devender,M.Com., M.Phil. Head of the Department (H.O.D) for his valuable advises.

I express my heartful gratitude to my project guide V. USHA RANI, Kavitha Memorial Degree College, Khammam, whose supervision, valuable guidance and help enabled me to complete this work.

My sincere thanks to our faculty members Ms. V. Usha Rani, Ms. E. Mamtha, Mrs. Surya Laxmi for the unenviable job of giving instructions and keeping project rolling and on track.

(M. LAKSHMI NARAYANA )

ACKNOWLEDGEMENT

I express my deep sense of gratitude to Mr. Sandeep, Manager of the Digital Shoppy, Khammam and his staff members for providing the opportunity to take up this project.

I am grateful to Mr. Sandeep for his co-operation.

I am highly indebted to Mr. Sandeep, Manager, Digital Shoppy for his co-operation and valuable suggestion which made me to gain self confidence and to complete my project work successfully.

Finally I am happy to thank My friend Vamshi, Naresh and Mani, Phani for encouraging me continuously to achieve my academic endeavor.

(M. LAKSHMI NARAYANA )

CONTENTS I. INTRODUCTION

01-12

[ Market Positioning Stratergy [ Major Steps involved in buying process [ Need and important of study [ Limitations of study [ Methodology

II. ORGANIZATION PROFILE

13-30

[ Digital Shoppy Profile [ Website Address [ Company Profile [ Product Profile [ Objectives of Organization

III. THEORITICAL FRAME WORK

31-48

[ Theories of consumer behaviour [ Consumer behaviour is an indisciplinary Science [ Importants of consumer behaviour for marketers [ Consumer decision making [ The buying decision process

IV. DATA ANALYSIS & INTERPRETATION 49-74 [ Market position [ Rate of performance [ Responce from customers [ Market position

V. CONCLUSIONS & SUGGESTIONS

75-77

[ QUESTIONNAIRE

78-79

[ BIBLIOGRAPHY

80

CERTIFICATE This

is

NARAYANA,

to certify

that Mr. M. LAKSHMI

S/o. M. SATYANARAYANA bearing

Roll No. 07605-1816 a student of our college, studying BACHELOR OF BUSINESS MANAGEMENT (B.B.M), Final has successfully completed his project work entitled CONSUMER PREFERENCES TOWARDS reference

DIGITAL to

SHOPPY

DIGITAL SHOPPY.

with

special

This project is

submitted in partial fulfillment for the award of Bachelor's Degree in Business Management.

PRINCIPAL

CHAPTER - I

INTRODUCTION

INTRODUCTION Marketing is indeed an ancient art; it has been practiced in the one form or other since the days of Adam and Eve. Marketing is a comprehensive term and it includes all resources and set of activities necessary to direct and facilitate the flow of goods and services from producers to consumer in the process of distribution. Its emergence as a management discipline, however it is relatively recent origin. The preindustrial revolution world was characterized by agriculture cum Handicraft economy. Practically every village community produced its own Food, clothing, shelter and household equipment. Agriculturist and crafts-Men were the main producers of this era. The agriculturists, whether he Produced corn or cotton, meat or butter disposed of the surplus after Meeting his own requirement,

in his immediate

neighbourhood. In other Words, marketing under those conditions meant a task of producing the Basic necessities of life and hanging them with known consumer groups in the immediate neighborhood. This represented stage of barter in the evaluation meeting. The evaluation of marketing was that of money economy. For reaching stages in the industrial new products, new systems of manufacturer,

new

models of transportation and communication. After Second World War, the size and character of marketers changed enormously. Marketing comprises all activities involved in the determination and satisfaction of consumer needs at a profit.

Segmentation is taking place with regard to all products multiple channels of distribution are replacing single channels. The good products are being passed through various intermediate before they are finally reaching the consumer. Marketing intermediateries are playing vital role in the smooth distribution of goods from manufacturer to the consumer. Advertising has become compulsory. Through they have become costly. Markets are not restricted to as peack market are exist through out the country even in foreign countries also. All these has made the companies to change their attitudes and way of operation. Finally the companies which are best satisfy their customers will be the winners. It is the prime reasonability of the markets finance the requirements of the markets place and to help their companies translated them into solution that with in customer approval. They are ware much in long term, mutually satisfying customers relations through providing quality product service.

DEFINITION OF MARKETING ACCORDING TO THE AMERICAN MARKETING ASSOCIATION :Marketing as the performance of business activities that direct the flow of goods and services from producer to consumer or user PHILIP KOTLER DEFINES :“Marketing as the set of human activities directed at facilitating and consummating exchange the essence of marketing is exchange of Products and the transaction is to satisfy human needs and wants”. PAUL MAZUR DEFINES :“Marketing as the creation and delivery of standard of living to society”. Marketing is an out going process of discovering and translating consumer needs and desires into products and services. Serving the consumer demand with the help of marketing channels and then, in turn, expanding the market in the face of keen competition. TYPES OF MARKETS :1.

On the basis of selling area, we have local, National and International markets.

2.

On the basis of nature of exchange dealings, we have spot or cash markets and futures or forward markets.

3.

On the basis of nature of goods sold, we have consumer goods market and industrial goods market.

4.

On the basis of period we gave short-term and long-term markets.

5.

On the basis of nature and magnitude of selling, we have wholesale and retail markets.

MARKET POSITIONING STRATERGY A market consist of all potential customers sharing a particular need or want who might be willing and able to engage to satisfy that need or want. Thus the size of the market depends up on the number of persons who exhibit the need have resources that interest others and are willing to offer these resources in exchange for what they want. Originally the term market stood for the place where buyers and sellers gathered to exchange their goods, such as village square. In other sense market refers to the aggregate demand of the potential

buyers for a product or service “we generally have

different markets that is markets for capital goods, markets of consumer goods, markets for automobiles etc. again in each category cost are producing different products to satisfying the needs of different class of customers. Not all buyers will notice to be interested in all the ways in brand differs from another. No even it is useful for a company to describe exhaustively to each prospect every detail of difference.

Each firm will want to promote those few differences that will appeal most strongly to its target market. The firm will want to develop to used positioning, “Positioning is an act of designing the companies offer so that it occupies a distinct and valued place in the target customers minds”. Positioning calls for the companies to decide how many differences and which differences to promote to the target customers. 1. UNDER POSITIONING :Some companies discover that buyers have only a vague idea of the brand. Buyers don’t really know anything special about it. 2. CONFUSED POSITIONING :Buyers could have a image of the brand. This confusion might result from making too any claims or changing the brands positioning too frequently. 3. DOUBTFUL POSITIONING :Buyers may find it hard to believe the brand claims in views of the product features price or manufacturer. There are many other variables had been focused on their positioning. But the question is how far has the positioning done by the company has been perceived by the company. How the customers perceiving “Digital Shoppy” a different product a compared to other in the same class there and many other questions can be answered by market positioning study what I have taken.

The company’s positioning must be routed in any understand of hoe the target market defines value and makes choices among vendors. The positioning task consists

of three steps. First the

company has to identify the possible product, services, personal and images

differences

that

might be established in relation to

competition. Second the company has to apply criteria to select the most important differences. Third the company has to effectively signal to the target market how it differs from its compentetion. The company’s product positioning strategy will then enable it to take the next step namely. Plan its competitive marketing strategies.

MAJOR STEPS INVOLVED IN BUYING PROCESS The steps involved in buying process are described below. First, we have to contact a group of customers and ask them to describe when they got the desire to purchase that product, how they gathered information regarding that product, how they made their final choice and how they felt after purchasing that product. There are five important phase in consumer decision making process.

CONSUMER DECISION MAKING PROCESS Problem Identification

l Search for information

l Evaluating the alternatives

l Product choice

l Out come

NEED AND IMPORTANCE OF STUDY :The study of consumer behaviour holds great and keen interest for us as a consumer, as a student and as a marketer. As a consumer we benefit from insights into own consumptions related decisions and trends. Such as what we purchase, when we purchase, where we purchase and how we purchase. The study of consumer behaviour makes us to be aware of the suitable influences, how they perceived to make the product of service choice as we do. As a student of human behaviour, it is important for us to understand interest and external influences, that implies consumers to act in certain consumptions related decisions. Buyer behaviour simply a subset of the larger human behaviour.

As a marketer and future marketer, it is important for us to understand why and how individual make their consumption decision, so that we make better marketing strategies without any confusion marketers who know the consumer behaviour will be success in the market.

OBJECTIVES OF THE STUDY :The following are the objectives of the study :-

*

To make an analysis of the consumer profile relation to income category, family size etc., in order to identify the brand features of Digital Shoppy consumers.

*

To make a clear analysis into the brand possessions of Digital Shoppy consumers, in order to highlight the brand preference among Digital Shoppy consumers and identify the factors influencing and brand preference.

*

To make an in depth analysis of major factor baring influences and purchase decisions and in order to get clear perceptions in to the interplay of different forces on consumer behaviour for Digital Shoppy

*

To identify the problems of customer in final purchase.

*

To provide suggestions based on the factors analyzed in the study and trace the decision - making process involved in purchase decision.

*

To give right suggestions and suitable measures to the dealer for regarding better service to customer and to avoid the difficulties of the dealer in changing a potential customer into a prospector customer.

*

To identify the availability of spare parts and after sales service.

*

To identify the intension of the consumer in the purchase of Digital Shoppy

LIMITATIONS OF THE STUDY :u

The study is based on the sample chosen from almost all category people.

u

The sample may not be representative to all the customers.

u

The study is limited to khammam and its surrounding areas only.

u

Data presented in this study is based on the opinions of the Limited respondents.

u

The secondary data is based on the information from

u

News Papers, Magazines and Library literature only.

SCOPE : The present study covers only consumer’s preferences towards Digital Shoppy in Khammam city market. This is done based on the data collected from selected respondents of the same market.

METHODOLOGY In this present study, the information and data collected by using well prepared questionnaire consists of 18 questions are open ended and others are close ended questions. After collecting the questionnaires from respondents the statistical tools and inferences are used for tabulation and analyzing the data with sample average and percentages.

Methodology of the Study : 1. Defining the Problem :It involves developing and understanding of the problem. The research need not be undertaken only for a problem but also for an opportunity. In this study an attempt has been made to understand the consumer behaviour in purchasing, using and evaluation with regard to Digital Shoppy. 2. Framing the Objectives :For the present study precise objectives the formulated. The objectives provide the base for research work. The objectives answer to questions like ‘why’ of the study, what is expected from the study etc., In this study the objectives are clearly defined and presented.

3. Developing the Plant :It calls for decision on the data sources, study approaches, instruments available, contact methods etc. the data sources used for collection of information are both primary and secondary survey approaches is followed for the study and questionnaires has been used for collection of primary data. 4. Data Collection and Processing :The data should be collected by the method predetermined. The Primary data has been collected through well designed questionnaires and personal interviews with dealer and consumers. Secondary data is collected through various books and catalogues viz., advertising and marketing business India. The information so collected is tabulated, analyzed and interpretation has been made by appropriate statistical techniques viz., Percentages, tabulation and graphs. 5. Presentation of Findings :The end results of all the above analysis are presented as findings in the project. To collecting the data there are two sources are used that is Primary and Secondary data.

PRIMARY DATA :This data is collected from the owners of Digital Shoppe through questionnaire. SECONDARY DATA :This data is collected from the records of the dealer, News papers, magazines, information provided by dealer, journals and Digital Shoppy websites.

DESIGN OF STUDY :The present study designed arranged and reported in the following manner.

CHAPTER - II

ORGANIZATION PROFILE

ORGANIZATION PROFILE ABOUT PRATYANKARA ELECTRONICS

“Digital Shoppy” is a retail chain of stores for consumer electronics and home appliances in the most happening states of India- Andhra Pradesh and Karnataka. The retail chain is promoted by Mr A Mahesh Raju, M.Tech (IIT) under Pratyankara Electronics Private Limited. The first Digital Shoppy had commenced its operations in May 2000 at Raj Bhavan Road, Hyderabad as a beginning. With the excellence in operations, the company expanded its chain of stores in Hyderabad and Bangalore by March 2005 and evolved as a renowned power retail chain. The company had increased its presence in all potential centers like Visakhaptnam, Vijayawada, Guntur and other places of Andhra Pradesh. The company is currently having 16 outlets in process in Andhra Pradesh and Karnataka. The company is now implementing its expansion plan by setting up its show rooms in all potential centers of Andhra Pradesh, Karnataka and Maharashtra by 2006-07 as a part of its mission to become ultimately as a national player in Electronics and Homes Appliances Retail Trade.

The highlights of the business of the company are:

• • • • • • • •

Brand Equity Customer satisfaction and loyalty Best Practices in operations and processes Promoters and Management commitment Commitment to customers Wide array of offering and novel promotional campaigns Low Overhead – corporate and operational expenditure Continuous Profit making company The estimated sales of the company for the year 2005-06

will be Rs 104 cr as against the sale of Rs 51 cr in the year 20004-05. The company is expanding its chain to 100 by 2006-07 with a capital outlay of Rs 17.50 cr and the resources are being proposed from equity participation from strategic partners/investors. With this expansion, the company will be reporting a sale of Rs 500 cr + by the year 2007-08

GROWTH STRATEGY : The company having established 20 show rooms by Feb 06 with adequate infrastructure to handle higher number of show rooms, is now in process of establishing 10 more by end of March 2006. The company is now having strengths in the following areas to build and operate larger size of the retail chain.

• • • • • •

Management Team Sourcing Distribution and Logistics Project Team- to identify and build infrastructure show rooms Procedures and Processes Customer base During the last 5 years, the company had incurred huge

advertising and promotional expenditure to build the brand equity and the company is now being leveraging the same to scale up the operations. The future expenditure on advertising and promotions will becomes lower in view of the increase in the network and targeted customer base.

THE STRATEGY TO INCREASE THE RETAIL NETWORK NATIONWIDE IN STAGES :

•

Hyderabad and Bangalore – already made its presence and only scaling up the number of outlets

•

Andhra Pradesh- already established outlets in potential places like Visakhapatnam, Vijayawada, Guntur, Khammam, Nellore, Hanumakonda etc and the expansion is to be done in other dis trict head quarters/ potential centers.

•

Karnataka - proposing to establish its presence in all the potential centers

•

Kerala- proposing to establish its presence in all the potential centers

•

Tamilnadu- proposing to establish its presence in all the poten tial centers

•

Maharashtra – proposing to extend the operations to Maharashtra once the potential markets intapped in Andhra Pradesh and Karnataka

•

Establish the retail network in all Metros and then to the rest of the potential places across the country.

•

The retail network will reach 800 showrooms by 2010 with a $ 1 Billion Turnover. Leveraging the existing infrastructure and brand equity

for scaling up of show rooms and to achieve higher turnovers- is the marketing strategy of the company. In the phase I of expansion, the company is proposing to set up 150 show rooms across Andhra Pradesh, Karnataka, Kerala,Tamilnadu and Maharastra by 2007-08.

VISION : To become a No 1 retail chain in India to satisfy the customer needs in electronics goods and home appliances market with global standards.

WEBSITE ADDRESS : Website of "DIGITAL SHOPPY" is "WWW. DIGITALSHOPPY.COM" The webpage is

CHAPTER - II

COMPANY PROFILE

DIGITAL SHOPPY COMPANY PROFILE It is located at the prime business center of Hydrabad, Andhra Pradesh - India, is the biggest centrally air-conditioned show room for Electronic Products never before has any other showroom in India, displayed such wide range of all electronic products. More than 300 models are on display at our showrooms. Our branch’s in Andhra Pradesh are at Raj Bhavan road, Ranigunj, Malakpet, Bigbazar - Abids, Music world - Banjara Hills In Hyderabad

And

Koramangala

In

Banglore.

Ask

for a Live

Demonstration facility at our showroom. See, feel and experience before you become a proud owner of any electronic products. If you are far off, we are on the net at your service. We have home delivery facility and sending gifts to your dear ones. Home Delivery we reach out to the remotest customer at their doorstep, thanks to the excellent infrastructure backup we have. Gift your dear ones want to send a gift to your loved ones? Order now, and our messengers worldwide, will send your gift on time. Know what’s new we reach out to millions of customers through mail, door to door campaign and advertisement. Visit our site often to get updated on the latest information about all Electronic Products. Be our customer today, we make you our partner forever. Note : for local customers, we are open even on Sundays, just for you.

LOCATION OF THE ORGANISATION Digital Shoppy is situated at Wyra road in Khammam. It is half kilometer away from bus stand. It is a business center in the town. It is easy to meet the customer needs and good transportation facilities are available.

STRUCTURE OF THE ORGANISATION GENERAL MANAGER

l

l CASHIER/COMPUTER Operator

l OFFICE BOY

l

l OFFICE BOY

l SUPERVISOR

l l l l AUDIO

TV

REFRIGE

SECTION SECTION SECTION

l l l

SALES

SALES

SALES

MAN

MAN

MAN

CHAPTER - II

PRODUCT PROFILE

PRODUCT PROFILE Products

are

invented

mainly for the purpose of

entertainment. Now in the present competitive world many companies are manufacturing different types of products.

DIFFERENT BRANDS AVAILABLE IN MARKET : L.G

VIDEOCON

BPL

ONIDA

PHILIPS

SAMSUNG

SONY

AKAI

TOSHIBA

NOKIA

WHIRL POOL

KELEN

IFB

VGUARD

USHA

EUREKA

ULTRA

GODREJ

PANASONIC

HCL

PRODUCTS IN DIGITAL SHOPPY : TELEVISIONS

REFRIGARATORS

WASHINGMACHINS

MUSIC SYSTEM

DVD PLAYER

MICRO OVEN

FANS

MIXES

HANDYCAM

WALKMAN CD

LAPTOP

AIRCONDITION

RICE COOKERS

GRINDERS

HEATERS

CELLPHONES

PLASMA TV

LCD

WATER HEAT

WATER DISPENSER FILTER STABILIZER

IRONBOX

VACCUMCLEANER

OVEN KIT

These products available in KHAMMAM.

OBJECTIVES OF THE ORGANISATION The basic objective of every business organization is to earn maximum profit. It has the following aims.

P

To earn maximum profit.

P

Providing best service to customers.

P

To promote good will among the potential buyer in argumented.

P

Products like after sales service & free installations etc.

P

To give maximum benefit and satisfaction to customers of possible low costs.

P

To converts every able buyer into prospectus customer.

Duties of Manager : j

Day to day adminstration of business.

j

Overall inspection of business

j

To place over for new products.

j

Company correspondence

Duties of Supervisor : j

Maintainance of register for products.

j

Maintainance of service register for products.

j

Supervision of his subordinates.

Duties of Cashier / Computer Operator : j

To gather and collect the information

j

To keep the data in the system

j

To maintain different files in the system

j

To maintain cash book

j

To receive cash

j

To pay cash

j

Maintainance of the cash and daily activities

j

Maintainance of the prepare records for cash activites.

CHAPTER - III

THEORITICAL ASPECTS

THEORATICAL ASPECTS (CONSUMER BEHAVIOUR) DEFINATION OF THE CONSUMER BEHAVIOUR :The behaviour that consumer display in searching for purchasing using evaluating and disposing of products services and ideas which they expect will satisfy their needs. -Skiffman The study of consumer behaviour deals with how the individual makes decisions to spend their available resource viz. Money time and effort etc., on consumption related items. It includes

THEORIES OF CONSUMER BEHAVIOUR :Marginal utility theory : This theory is developed by classical economists, according to them a consumer will contain to by such products that will deliver him the most utility or maximum satisfaction at relative prices. Income and Savings Theory :This theory is based on the fact that purchasing power is the real dominant of buying purchasing power on the other hand purchasing power is depended on disposal income.

PSYCHOLOGICAL THEORIES : a. Stimulus response theory : Pavlov skinner and kotles developed this theory this theory on these basis of experiment they did on analysis Acc., to them learning occurs as a person response to some stimuli and is rewarded with need satisfaction for a connect response. They proved that most recent and frequent stimulates are remembered and responded this approach is the basis repeated advertisement. b. Cognitive theory : This theory was proposed by festigner mainly to explain post buying behaviour. Acc., to his stimulation what is condition by customer knowledge and his perception believer and attitude perception is the some total of physical stimulus and personal factor. c. Gestact and field theory : According to this theory learning and consequence behaviour is not independent but it is a total process they argue that human behaviour must be use as individual by pattern totalities. Behaviour should be explained in terms of all the factors that are in appointing whenever event happens. Thus buying is not motivated by a single element. That is the same total of many elements.

CONSUMER BEHAVIOUR IS AN INDISCIPLINARY SCIENCE :Consumer behaviour is a relatively new field of study with no history or body of research of its own the new disciplined borrowed is other scientific disciplines such as psychology, sociology, social psychology cultural anthropology and economics. 1. Physiology : Physiology is the study of the individual. It includes the study of motivation attitude, personality and learning patterns. All this factors

are

integral to an understanding of consumer behaviour.

They enable us to understand the various consumptions needs of individuals, their actions and reactions in response to different, products and

products

messages and

the way

personality

characteristics and revile experience effect their product choices. 2. Sociology : Sociology is the study of groups the actions of individuals in groups often differ from the action of individuals operations alone. The actions of individual in groups often differ from the action of individual operations. The influences of group member ships.

3. Psycho - analytical theory : This theory is developed from the thoughts of segments board. He explained that the personality has free basic determinations i.e., I.D. Ego, Super Ego. 4. Social Culture theories : The credit for formulating this theory goes Beblem (18891899). And this theory is some times known as Beblenior model he explain that man is primarily a social animal and his wants and behaviour are largely influenced by the group which he is a member. It means effect of work group, friendship group, family group, different groups indicates the position or particular group of person is society man essentially social being a intent with other individual a variety of group. In spite of personal differences people may be forced to accept decision of society family structure and social class on consumer behaviour are relevant to the study of consumer segments in the market place. 5. Social Psychology : Social psychology if an amalgam of sociology it is the study how an individual operates in a group. The study of consumer behaviour is not only the study of how groups operate in how individuals are influenced in their personal consumption behaviour.

6. Cultural anthropology : The study of human beings in society is the study of cultural anthropology, in traces the development of the care beliefs, values and customs that are passed down to individuals from their parents and grand parents and influences their purchase and consumption behaviour. It also include subculture i.e., sub-groups within the large society. WHEN TO STUDY CONSUMER BEHAVIOUR :The study of consumer behaviour is concerned with not only how consumer behaviour but with they behave as they do. As consumers, it is important for us to study consumer behaviour, so we many gain greater insight into our own consumer related decisions what we buy why we buy and how we buy, the study enables us to analyze our own consumption decisions and make us aware of the suitable influences that persuades us to make the product choices we do. IMPORTANCE OF CONSUMER BEHAVIOUR FOR MARKETERS :Consumer behaviour is helpful in understanding the purchase behaviour and preference of different consumers. As consumer, we differ in terms of our sex, age, education, occupation, income, family setup, religion, nationality and social status. Because of these different

background factors we have different needs and we only buy those Brands and services, which we think will satisfy our needs. In today's work of rapidly changing technology-changing firm has to be constantly innovating and understand he latest consumers trends and tastes consumer behaviour provides invaluable clues and guidelines to marketers on new technological frontiers, which they should explore. A consumer decision to purchase a particular Brand to services is the results is the result of complex interplay of a consumer of variables. The starting point for the company provides the decision process marketing stimuli in the shape of Brands, promotion, price, and distribution strategy. The potential consumer along with the other stimuli already existing receives the marketing stimuli in the environment. These stimuli may be social, economic, cultural, technological and political in nature. At the point of receiving the marketing stimuli, the consumer already has a certain mental, emotional and psychological frame of mind developed over the years by his cultural, religious, social, family and psychological background. A MODEL OF CONSUMER BEHAVIOUR The hoarding provided the initial stimulus for this purchase and consumption. This was further backed up by other stimuli such as brand display in the shop, watching other consumer buys a particular

brand, any point of purchase promotional material, earlier satisfaction, with given brands etc., your response to this stimuli results in a purchase of particular brand, In between the process of receiving this stimuli responding to them you went through a decision making process. The stimuli, process of decision making and response constitutes a simple method of consumer behaviour.

EXTERNAL FACTORS INPUT

MARKETING STIMULI

OTHER STIMULI

Brand

Economic

Price

Technological

Promotion

Political

Channel of distribution

Social

CONSUMER DECISION MAKING PROCESS

BUYER CHARACTERISTICS Psychological Personal and Cultural characteristics

BUYER DECISION Process

There are 4 major factors which influences the buying behaviour of consumers. 1.

Cultural factors

2.

Social factors.

3.

Personal factors.

4.

Psychological factors.

1. CULTURAL FACTORS : Cultural factors exert the broadest and deepest influence on consumer behaviour. Culture : Culture represents an over all social heritage, a distinctive from of environments adoption by a whole society of people. It includes a set of learned beliefs, values, attitudes, morals, customers, habits and forms of behaviour that are shaped by a society and transmitted to the generations with in that society. The child growing up in a society learns a basic set of values, perceptions, preferences and behaviour through a process of socialization invoicing the family and other key institutions.

Sub-Culture : Each culture consists of smaller sub culture that provide more specific identification and socialization for its, sub culture includes nationalities, religious, social groups and geographical regions. Many sub cultures make's important market segments and marketers often design brands and marketing programs tailored to their needs. Cross-Culture : To determine whether and how to enter a foreign market, marketers a need to conduct some form of cross cultural consumers analysis. Cross culture is defined as the effort to determine to what extent the consumers of two or more nations are similar or different.

2. SOCIAL FACTORS : Consumer behaviour is also influenced by such social factors as reference groups, family and social, roles & status. Reference groups : A person has behaviour is strongly influenced by many groups. As person's references groups are those groups that have a direct (face-to-face) or indirect influence on the persons attitudes or behaviour. Group having a direct influencing on a person are called membership groups. These are groups to which there is fairly

continuous interaction such as family, friends and neighbours and secondary groups which tend to be more formal and where there is less continuous interaction. They include religious organizations, professional associations and trade unions. FAMILY : We can distinguish between two families in the buyers life the family orientations consists of ones parents. From parents a person acquires an orientation towards religion, polities and economies and sense of personal ambition, self worth and love. The marketer needs to determine which member normally with the product on service, whether the husband is more dominant or the wife or they have equal influence. Roles & Status : A person participation in many groups through out his life, family clubs, organization etc, the person position in each group can be defined in the terms of role status. Marketers are aware of the potential of products to become status symbol. 3. PERSONAL FACTORS : Buyers

decisions

are

also

influenced

by

personal

characteristics the buyers age, and life stage cycles, occupation, economic circumstances, life style and personality and self concept.

4. PSYCHOLOGICAL FACTORS : Motivation : Motivation can be described as the driving force with in individuals that impels them to action. This driving force is produced by a state of tension, which exists as the result of an unfulfilled need. Perception : Is defined as the process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world. Learning : In the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behaviour.

CONSUMER DECISIONS AND ACTIONS OUTPUT

Brand choice Dealer choice Purchase timing

THE BUYING DECISION PROCESS Marketers have to go beyond the various influences on buyers and develop an understanding of how consumers actually make their buying decision. Marketers must identify who makes buying decisions and step in the buying process. BUYING ROLES For many brands, it is to identify the buyer. Other brands involve a decision making unit consisting of more than one person. This may happen due take of technical knowledge or experience or unaware of brands in the markets. Thus we can distinguish five roles peoples might play in buying decisions. INITIATOR A person who first suggests the idea of buying the particular brand or service. DECIDER A person who decides on a component of a buying decision, whether to buy, what to buy, how to buy or where to buy. BUYER The person who makes the actual purchase. USERS The person who consume or use the brand.

TYPES OF BUYING BEHAVIOUR Consumer decision making varies with the type of buying decision. There are great difference between buying tooth paste, a tennis rocket, a personal computer and a new tractor. Complex and expensive purchases are likely to involve more buyer deliberation and more participants. As sale distinguished four types of consumer buying behaviour based on the degree of buyer involvement and the degree of difference among brands. COMPLEX BUYING DECISION Consumer goes through complex buying behaviour when they are highly involved in a purchase and aware of significant differences among brands. Consumers are highly self expensive. Typically the consumer doesn't know much about the brand category and has much to learn. DISSONANCE REDUCING BUYING BEHAVIOUR Some times the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is based on the fact that the purchase inexpensive, infrequent and risky. In this case buyer will shop around to learn what is available but will buy fairly quickly perhaps responding primarily to a good price to purchase convenience. The consumer will be alert to information that justifies his or her decision.

Habitual Buying Behaviour : Many Brands are brought under conditions of low consumer involvement and the absence of significant brand differences. Consider broom, consumer has little involvement in the brand category. They go to the store and reach of the brand. If they keep reaching for the same brand, it is out of habit but not strong brand loyalty. If they keep reaching for the same brand, it is out of habit but not strong brand loyalty. There is good evidence that consumers have low involvement with most low cost frequently purchased brands. With low involvement of brands, consumer behaviour does not pass through the normal belief attitude behaviour sequence. Consumers do not search extensively for information about brands evaluate their characteristics and make weighty decision on which brand to buy. Instead they are passive recipients of information as they watch television or see prints advertisement. Advertisement repetitions create brand familiarity rather than brand conviction. Consumer don't for a strong attitude towards a brand rather they select it because they are nor highly involved with the brand. Thus for low involvement brands the buying process begins with brand beliefs formed by passive learning and is followed by purchase behaviour which may be followed by evaluation.

VARIETY SEEKING BUYING BEHAVIOUR : Some buying situation is characterized by low consumer involvement but significant brand differences. Here consumers after do a lot of brand switching. Brand switching occurs for the sake of variety rather than dissatisfaction.

IMPORTANCE OF STUDY OF CONSUMER BEHAVIOUR : The concept of modern marketing is customer - oriented therefore, there is and hence need to supply the behaviour of the consumers of account of the following benefits.

1. PRODUCTION POLICIES :The study of consumer behaviour gives an insight in to the various factors which incline the consumer to buy the product. The various factors which influence the consumer decision may be packing of the product, quality of the product, size of the product pucker color of the product etc., understanding the consumer behaviour with regard to this aspects with enable the company to formulate the production policies suitable to the requirement of consumer. 2. PRICE POLICIES :Consumer behaviour to purchase articles is very much

influence by the price of the product. The buyer of some products only because particular brand, brand is cheaper than the comparative brands available in the market. Thus a consumer behaviour and reactions with regard to the price of various commodities will help the marketing manager for improving sales probability. 3. SALES PROMOTIONAL POLICIES :Sales promotional policies enables the managers to know what motive prompts the buyers to makes purchasers and the marketing department would be able to decide what advertising media should be followed to stimulate the desire the purchase. The marketing manager takes the decisions regarding brand, packaging discussant, commissions, fights, free samples etc. on the basis of consumer behaviour only. Thus for promotion sales of the company products the study of consumer behaviour is inevitable. 4. PUBLIC POLICY CONSERTS :With the increasing of the consumer protection movement, policy marks at the national state and district level become aware of their responsibility to protection the consumer interest and well-being of their constituents. Therefore a national commissions, state commission, district formals have been created to protect the interest of the consumers all of which by products of equipments and service in order to come their organization whether for profits non profits.

WHY TO STUDY CONSUMER BEHAVIOUR :The study of consumer behaviour is concerned with not only how consumer behaves but they behave as they do. As consumers it is important for us to study consumer behaviour, so that we may gain greater insight into out own consumer related decisions, what we buy, why we buy, how we buy, they study enables us to analyze our own consumption decisions and makes us aware of suitable influence that persuade us to make the product choice. CONSUMER DECISION PROCESS :Problem Identification

l Search for information

l Evaluating the alternatives

l Product choice

l Out come

l Post Purchase Behaviour

1.

It is the first stage of problem identification. It means consumer decides in advance to satisfy needs and desire.

2.

Wherever problems identifications is over immediate the consumer will try to collect the information about goods services available in the market to satisfy his needs and desires.

3.

Wherever the search for information is over the consumer evaluated of analyze what are the alternatives available in the market.

4.

After the evaluation of alternatives the consumers decided which type of goods and services are available in the market to satisfy his needs and desires.

5.

At this stage only the consumer will purchase particular type.

6.

Consumer ma get purchase behaviour only after consumption of the goods and services it may be either negative or positive.

CHAPTER - IV

DATA ANALYSIS & INTERPRETATION

TABLE - I

ANALYSIS BASED ON AGE OF THE PEOPLE :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

BELOW 20 YEARS

8

8%

2

21 - 30 YEARS

28

28%

3

31 - 40 YEARS

24

24%

4

41 - 50 YEARS

36

36%

5

ABOVE 50 YEARS

4

4%

TOTAL

100

100%

INTERPRETATION : My study has covered different group of people having different ages. 8% respondents are below 20 years, 28% respondents are 21 - 30 years, 24% respondents are 31 - 40 years, 36% respondents are 41 -50 years and remaining 4% respondents are above 50 years

No of Respondents

8%

28% 24%

36%

4%

ANALYSIS BASED ON AGE OF THE PEOPLE

ABOVE 50 YEARS

41 - 50 YEARS

31 - 40 YEARS

21 - 30 YEARS

BELOW 20 YEARS

TABLE - II

ANALYSIS BASED ON MONTHLY INCOME OF THE PEOPLE :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

BELOW 5,000

10

10%

2

5,000 - 10,000

65

65%

3

10,000 - 20,000

25

25%

TOTAL

100

100%

INTERPRETATION : My study has covered different group of people having different incomes. 10% respondents are below Rs. 5000/-, 65% respondents are Rs. 5000 - 10,000/-, 25% respondents are Rs 10,000 - 20,000/-.

ANALYSIS BASED ON MONTHLY INCOME OF THE PEOPLE

10% 25%

65%

BELOW Rs. 5000/Rs. 5000 - 10,000/Rs. 10,000 - 20,000/-

TABLE - III

ANALYSIS BASED ON KNOWNING ABOUT DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

FRIENDS

44

44%

2

ADVERTISEMENT

32

32%

3

OWN DECISION

12

12%

4

RELATIVES

12

12

TOTAL

100

100%

INTERPRETATION : After obtaining the information of influencing by 44% customers were influenced by friends, 32% of customers were influenced through advertisement, 12% of customers were influenced by there own decision, 12% of customers were influenced by relatives.

No of Respondents

44%

32%

12%

12%

RELATIVES

OWN DECISION

ADVERTISEMENT

FRIENDS

ANALYSIS BASED ON KNOWNING ABOUT DIGITAL SHOPPY

TABLE - IV

ANALYSIS BASED ON FACTORS INFLUENCED TO PURCHASE PRODUCT IN DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

PRICE

41.6

41.6%

2

QUALITY

36.2

36.2%

3

SERVICE

11.1

11.1%

4

RECIEVING

11.1

11.1%

TOTAL

100

100%

INTERPRETATION : After obtaining the information of influencing by 41.6% customers were influenced by Price, 36.2% of customers were influenced by quality, 11.1% of customers were influenced by service, 11.1% of customers were influenced by recieving.

No of Respondents

41.6% 36.2%

11.1%

11.1%

RECIEVING

SERVICE

QUALITY

PRICE

ANALYSIS BASED ON FACTORS INFLUENCED TO PURCHASE PRODUCT IN DIGITAL SHOPPY

TABLE - V

ANALYSIS BASED ON PRODUCT PURCHASED IN DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS PERCENTAGE

1

TELEVISIONS

55.5

55.5%

2

REFRIGIRATORS

18.5

18.5%

3

WASHING MACHINES

3.7

3.7%

4

OTHERS

22.3

22.3%

TOTAL

100

100%

INTERPRETATION : Out of 100 respondents 55.5% of respondents were purchased Televisions, 18.5% of respondents were purchased Refrigirators, 3.7% of respondents were purchased Washing Machines and remaining 22.2% of respondents were purchased other products.

ANALYSIS BASED ON PRODUCT PURCHASED IN DIGITAL SHOPPY

22.3%

3.7% 55.5%

18.5%

TELEVISIONS REFRIGIRATORS WASHINING MACHINES OTHERS

TABLE - VI

ANALYSIS BASED ON BRAND PREFERED IN DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS PERCENTAGE

1

SONY

42.3

42.3%

2

LG

15.3

15.3%

3

SAMSUNG

3.8

3.8%

4

ONIDA

3.8

3.8%

5

OTHERS

34.8

34.8%

TOTAL

100

100%

INTERPRETATION : The above table show out of 100 respondents 42.3% of respondents are using Sony, 15.3% of respondents are using LG, 3.8% of respondents are using Samsung 3.8% of respondents are using Onida and remaining 34.8% of respondents are using Other brands.

No of Respondents

42.3%

15.3%

3.8%

3.8%

34.8%

OTHER

ONIDA

SAMSUNG

LG

SONY

ANALYSIS BASED ON BRAND PREFERED IN DIGITAL SHOPPY

TABLE - VII

ANALYSIS BASED ON SATISFACTION IN DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

EXCELLENT

20

20%

2

GOOD

68

68%

3

AVERAGE

12

12%

TOTAL

100

100%

INTERPRETATION : Above table interpretes that the satisfaction with digital shoppy, 20% of respondents opting that excellent, 68% of respondents opting that good, and remaining 12% of respondents opting that average.

ANALYSIS BASED ON SATISFACTION IN DIGITAL SHOPPY

12%

20%

68%

EXCELLENT GOOD AVERAGE

TABLE - VIII

ANALYSIS BASED ON OPINION ABOUT PRICE IN DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

REASONABLE

92

92%

2

HIGH

8

8%

TOTAL

100

100%

INTERPRETATION : Price is influecing factor for any product majority of its respondents opinion that the digital shoppy products value is reasonable. only 8% feel that price is high.

8%

No of Respondents

92%

HIGH

REASONABLE

ANALYSIS BASED ON OPINION ABOUT PRICE IN DIGITAL SHOPPY

TABLE - IX

ANALYSIS BASED ON MODE OF PURCHASING IN DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS PERCENTAGE

1

IMMEDIATE CASH PAYMENT

64

64%

2

INSTALMENT

20

20%

3

BANK FINANCE

16

16%

TOTAL

100

100%

INTERPRETATION : Customers are being punching the digital shoppy through immediate cash payment are 64% and through instalment 20% and those who are taking the bank finance are 16%.

No of Respondents

64%

20% 16%

BANK FINANCE

INSTALMENT

IMMEDIATE CASH PAYMENT

ANALYSIS BASED ON MODE OF PURCHASING IN DIGITAL SHOPPY

TABLE - X

ANALYSIS BASED ON PERFORMANCE OF DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

EXCELLENT

12

12%

2

SATSIFIED

68

68%

3

AVERAGE

20

20%

TOTAL

100

100%

INTERPRETATION : The above table reveals that the majority of the customers that is 12% of respondents were liking its performances, 68% of respondents were satsified and remaining 20% of respondents were average about its preformance.

ANALYSIS BASED ON PERFORMANCE OF DIGITAL SHOPPY

12% 20%

68%

EXCELLENT SATISFIED AVERAGE

TABLE - XI

ANALYSIS BASED ON CHANGES :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

EXCELLENT

37.9

37.9%

2

SATSIFIED

41.3

41.3%

3

AVERAGE

20.8

20.8%

TOTAL

100

100%

INTERPRETATION : The above table reveals that the majority of the customers that is 12% of respondents were liking its performances, 68% of respondents were satsified and remaining 20% of respondents were average about its preformance.

No of Respondents

37.9%

41.3%

20.8%

ANALYSIS BASED ON CHANGES

ADVERTISEMENT

SERVICE

PRICE

TABLE - XII

ANALYSIS BASED ON MARKET POSITION :

S.No.

OPTIONS

No. OF RESPONDENTS PERCENTAGE

1

1 ST

55

55%

2

2 ND

40

40%

3

3 RD

5

5%

TOTAL

100

100%

INTERPRETATION : Out my survey regarding the digital shoppy in which position it has to be placed. The majority of the respondents i.e. 55% of respondents said that it has to be placed in the 1st position, 40% of respondents said that it has to be placed in the 2nd position and remaining respondents said that it has to be placed in 3rd position

No of Respondents

55%

40%

5%

ANALYSIS BASED ON MARKET POSITION

3 RD

2 ND

1 ST

TABLE - XIII

ANALYSIS BASED ON OPINION ABOUT DIGITAL SHOPPY :

S.No.

OPTIONS

No. OF RESPONDENTS

PERCENTAGE

1

GOOD

88

88%

2

POOR

12

12%

TOTAL

100

100%

INTERPRETATION : Above table shows out of 100 respondents 88% of respondents opinion on digital shoppy is good and remaining 12% of respondents opinion on digital shoppy is poor.

ANALYSIS BASED ON OPINION ABOUT DIGITAL SHOPPY

12%

88%

GOOD POOR

CHAPTER - V

CONCLUSIONS & SUGGESTIONS

CONCLUSION ] It is concluded that there is a priority to specific income group to purchase products in digital shoppy. General income group people can purchase products.

] Out of 100 respondents all are known about digital shoppy. It shows popularity of the digital shoppy.

] Maximum number of respondents were influenced by advertisement and their family members.

] Majority of the respondents feel that the price of product is reasonable. ] The product users are considering quality and considering price in purchase of products in digital shoppy. Some people considering both.

] Televisions are acting as an important media in acknowledgement of and followed by magazines.

] Maximum respondents felt the rate of performance of digital shoppy products. Among the counter products is moderate some people felt the rate performance is maximum.

] Maximum respondents opinion is that Telengana Agencies is coming in competition with digital shoppy.

] Maximum respondents feeling that digital shoppy is satisfactory. ] Maximum respondents are satisfied with after sale services. ] The most of the respondents of the study is from the income group of Rs. 5,000 to 20,000 followed by below 5,000 and 20,000.

SUGGESTIONS C

Maximum respondents come to know about digital shoppy through advertisement hence try to make the advertisements more affective.

C

It suggested that the manager need to provide prompt service when ever customer required.

C

Telangana agencies is coming in competition with digital shoppy hence bring more new models in digital shoppy as compared to Telangana Agencies.

C

It is suggested to manager when ever he provides fair services to customer it influence to develop sales and brand image.

C

In developing towns like Khammam most of the people of middle class so it is advised to the manager to provide many schemes like finance facilities, coupons, gift offers, etc.

C

Sales people should maintain cardial friendly relation with the customer

C

It is time to digital shoppy concentrate more on the market as the competition are so active in the local market now.

CONSUMER PREFERENCES TOWARDS

DIGITAL SHOPPY QUESTIONNAIRE 1.

Name

:

2.

Age

:

3.

Gender

:

4.

Occupation :

5.

Monthly Income

6.

B) 5,000 - 10,000

C) 10,000 - 20,000

D) Above 20,000

How do you know about Digital shoppy ?

9.

B) Advertisement

C) Own Decision

[

]

[

]

D) Relatives

What factors influenced you to purchase product in Digital shoppy ?

A) Price 8.

Female

A) Below 5,000

A) Friends 7.

Male

B) Quality

C) Service

A) Television (TV)

B) Refrigirators

C) Washing Machines

D) Other

Which brand do you preferer in Digital shoppy ? B) LG

C) SAMSUNG

D) ONIDA

B) Good

[

]

[

]

[

]

E) Other

10. Are you satisfied in Digital shoppy ? A) Excellent

]

D) Recieving

Which product you have purchased in Digital shoppy ?

A) SONY

[

C) Average

11. What is your opinion about the price in Digital shoppy ? A) Low

B) Reasonable

C) High

A) Immediate Cash Payment

B) Instalment

C) Bank Finance

D) Other

13. Your opinion about Digital shoppy performance ? B) Satisfied

C) Average

14. Do you want any changes regarding ? A) Price

B) Service

[

]

[

]

D) Poor [

C) Advertisement

B) 2nd

C) 3rd

]

D) 4th

16. Your opinion about Digital shoppy A) Good

]

D) Models

15. Digital shoppy to be placed which position inthe market ? [ A) 1st

]

D) Very High

12. What is the mode of purchasing in Digital shoppy ?

A) Excellent

[

[

]

B) Poor

If Good give reason _______________________________________ 17. Why Digital shoppy crowned so popularily ? _________________________________________________________ 18. How do you rate the performance of Digital shoppy among other shops ? _________________________________________________________ 19. Do you offer any suggestions to capture lion-share in the market ? Suggestion :................................................................................................. .....................................................................................................................

BIBLIOGRAPHY u

J.C. GANDHI

Marketing Management, Tata McGraw Hill Publications Ltd., New Delhi, 1997.

u

PHILIP KOTLER

Marketing Management, Prentice Hall of India Pvt. Ltd., New Delhi, 2000.

u

SHIFFMAN & KANUK

Consumer Behaviour, Prentice Hall of India Pvt. Ltd., New Delhi, 1995

u

S.A. CHUNA WALLA

Consumer Behaviour, Himalaya Publishing House, Mumbai, 2000.

u

V.S. RAMA SWAMY &

Marketing Management,

S. NAMA KUMARI

MacMillan India Ltd., New Delhi, 2000.

u

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