Summer Training Project Report on

MASTER OF BUSINESS ADMINISTRATION Submitted By K.KALYANI 723011631085 Under the Supervision and Guidance of Ms.NANDHINI

SRI VENKATESWARA INSTITUTE OF INFORMATION TECHNOLOGY AND MANAGEMENT

DECLARATION

I KALYANI.K, the undersigned hereby declare that this summer project work entitled CONSUMER BUYING BEHAVIOUR and submitted in partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION, ANNA UNIVERSITY, CHENNAI.

Internal guide

Director

Date: Place: College Seal

Acknowledgement

A successful project can never be prepared by the single effort or the person to whom project is assigned , but it also demand the help and guardianship of some conversant person who helps in the undersigned actively or passively in the completion of successful project. With great pleasure I express my gratitude to our director Mrs. Rheeta Margery and project guide Prof. Nandhini without their help this would not have been completed. They have given their precious suggestions and constructive guidance has been indispensable in the completion of this project work.

I would also like to thank the staff of Sri Venkateswara Institute Of Information Technology And Management They have supported me in this endeavor, and appreciated me in my efforts during my project.

Last but not the least I would also like to thank my friends and all the responded. Who directly and indirectly supported to me during my project work, without the help of whom this project would not have been possible.

Kalyani.K

Index
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Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 Executive Summary Objective and scope of the study Company Profile Theoretical Background Research Methodology Data analysis and Interpretation Findings Limitations Conclusion Recommendations Bibliography Annexure

Title

Page No.

EXECUTIVE SUMMARY

Project Title Consumer buying behavior while Shopping The study of any subject is made by examining it in an organized fashion. There are three classes of variables involved in understanding consumer behavior; STIMULUS, RESPONSE and INTERVENING variables. Stimulus variables, such as advertisements, products exist in both the individuals external environment. These generate a sensory input to consumers. Response variables are the resulting mental / or physical reactions of individuals who are influenced by stimulus variables. For e.g.: - purchasing a product or forming attitudes about it could be viewed as response variables. Many of the variables affecting consumers (such as personality, learning, and perceptions are external situations, motives, and so forth) cannot be directly observed. The project Consumer buying behavior while shopping. Is carried out under supervision and guidance of LIFESTYLE STORE. The project was about studying the consumer buying behavior. A questionnaire was prepared by us in order to conduct market survey. The questionnaire was based on different parameters to judge and understand the consumer behaviors and determine the best possible strategies which could be used to attract customers. The research carried out in this project was descriptive in nature. The study was aimed at knowing the various eating habits of a consumer.

This project helped in understanding what exactly a customer looks in an eating joint before entering it. It gave an idea about the essential factors that are required now a day for an eating joint to attract customers in this competitive world.

We were also given a task to understand the customer eating habits, what a consumer wants while eating in a restaurant what all a consumer look for and what are their expectations, how can a mall owner satisfy the needs and wants of a consumer so that the consumer may come back and the retailer can retain its consumer. This project helped us to figure out the different consumer eating behavior and to understand the overall customer perception of eating in a restaurant as well as their demand for mall. The trend today has been to combine shopping with various offering. For e.g. apart from shopping there are food courts, cinema theaters and even in some an amusement centre for children.
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Shopping has made people spend not just on their requirements of goods to be bought but to look on the totally of experience have a quick bite at McDonalds in the mall or let the kids play fun game while one is busy shopping or even taking the family out for movie and having a dinner all under one roof. The benefits of this totally offering are that many vendors get to have peoples patronize their offerings, while the Shopping experience i.e. being enhanced, more business got by the stores at the venue. Shopping is no longer a onetime agenda for people. Various options are opening up.

OBJECTIVES & SCOPE OF THE STUDY

Objective:-

To analyze consumer behavior towards consumption of Clothes and apparels.

Scope of the project:-

The market survey has done in Lifestyle; this project is useful for the better understanding of the consumer behavior. The project encompasses the various behavior of customer, their pre and post behavior when they purchase. There is also overview of the consumers attraction towards Lifestyle, mostly consumer perceptions are changing and most of the consumer now prefers to buy more apparels. The project work involves specific guidelines for the Lifestyle and helps it to understand the consumer behavior.

Company profile

Lifestyle, one among the most admired fashion retail destinations, needs no introduction. Lifestyle entered India in 1999 and in less than a decades time it has expanded its footprint across the major cities of the country. Being a colourful, trendy and a vibrant store, it offers its customers an enjoyable shopping experience.

Each Lifestyle store brings together five concepts under one roof- Apparel, Footwear, Health & Beauty, Kids wear & toys and Household & Furniture, offering convinient one-stop shopping and a choice of over 250 national & multinational brand. Home Centre by Lifestyle is a one stop destination for affordable furniture, home decor and soft furnishing that represents style, comfort and individuality.

In keeping with the Groups tradition of making every shopping experience more rewarding and memorable, The Inner Circle, Landmark Groups loyalty programme allows members to enjoy exclusive benefits and privileges such as reward points and exciting offers. The Inner Circle is today recognized amongst the leading Loyalty Program in the country with an ever increasing base of customers.

IndustryProfile

Retailing is the most active and attractive sector selling goods or services directly to final of the last decade. While the retailing industry consumers for personal, non business use itself has been present through history in our country, it is in the recent past it has witnessed so mush dynamism
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Retailing one of the largest sectors in the global economy is going through a transition phase not only in India but the world over.

The study of any subject is made easier by examining it in an organized fashion. There are three classes of variables involved in understanding consumer behavior, stimulus, response and intervening variables. Stimulus variables, such as advertisement, products and hunger pangs exist in both the individuals external and internal environment. These generate sensory inputs to consumers. Responses variables are the resulting mental and/or physical reactions of individual who are influenced by stimulus variables. For ex: - purchasing a product or forming attitudes about it could be viewed as responses variables.

Many of the variables affecting consumer (such as personality, learning, and perceptions of external situations, motives, and so forth) cannot be directly observed therefore, those who want to learn about the variables affecting consumer must often make inference to determine the extent to which a given variable is having an influnce

The study of consumer behavior can also be quite complex, because of the many variables involved and their throw the variables, tendency to interact with and influence each other. Models of consumer behavior have been developed as a means of dealing. With this complexity. Models can help organize out thinking about consumers into a coherent into a coherent whole by identifying relevant variables, describing their basic characteristics, and specifying how the variables relate to each other.

Consumer decisions Process

This process consists of the decision process regarding products and services. The major steps in this process are shown as problem recognition, information search and evaluation, purchasing processes, and post purchase behavior. Problem recognition occurs when the consumer is activated by awareness of sufficient difference her actual affairs and her concept of the ideal situation. This can occurs through activation of a motive such as hunger, by confronting some external stimulus
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such as an advertisement, or by being effected by additional variables such as social or situational influences.

Internal search a quick and largely unconscious review of memory for stored information and experiences regarding the problem. The information is in the form of belief and attitudes that have influenced the consumers preference towards bands. Often such a review results in recognizing a strong brand preference, and a routine purchase occurs. However if an internal search does not provide sufficient information about products, or how to evaluate them, the consumer continues with a more involved external search for information. This result exposure to numerous informational inputs called stimuli, which can arise from a variety of sources, including advertisement, printed products reviews, and comments from friends.

Any informational stimuli are subjected to information-processing activities, which the consumer uses to derive meaning from stimuli. The process Involves allocating attention to available stimuli deriving meaning form these stimuli and holding this meaning in what is termed in what is termed short term memory where it can be retained briefly to allow further processing.

Indian retail market scenario

The financial year 2005-06 saw India ride high on the waves of a booming economy. The BSE sensex scaled new heights by crossing the 1200 points mark early that year. The GDP growth for 2005-06 was about 8.4 % while foreign reserves had crossed the US$ 165 billion mark. India had shed its tag of a third world country and is being hailed as one of the most rapidly emerging markets and a popular investment destination.
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Between the affluent and the middle class has reduced dramatically. The Indian middle class is expected to grow from its current share of 22 % to 32 % of the total population by 2010 over the last few years retail has become one of the fastest growing sector in the Indian economy. Retail in India is currently estimated to be a $230 billion industry of which organized retail 3 % or roughly $ 7 billion. At keamey has identified India as the leading retail destination in their annual list of most attractive countries for international retail expansion (Global retail development index 2006). Organized retail is expected to grow at the rate of 25-30% per annum and is projected to attain a size of $23 billion by 2010. The booming services sector in India has fueled the growth of a new class of consumer the single urban youth whose expenses are typically independent of family compulsion. As observed globally the steady climb in lifestyle and leisure goods is essentially due to disposable income of this class of consumers. Over the last one year salaries have increased by approximately 15-20%. The divide The government has allowed foreign direct investment in real estate since early 2005. This has led to increased foreign interest and has encouraged joint ventures between Indian and foreign developer. Considering the vast potential in the retail business 51% FDI in single brand retailing has also been allowed recently. This move is anticipated to attract foreign investment technology global best practices and cater to the demand for high quality branded goods in India.

Corollary to the real estate growth retail boom too has percolated to the tier-2 and tier-3 cities of India of the total 361 mail projects currently underway in India 227 are in the top 7 cities while the rest 134 are distributed over various tier-2 tier3 cities. These statistics reveal the far reaching effect of positive macro trends In changing the consumer preferences and shifting mindsets towards organized retail experience besides new malls close to 35 hypermarket 325 large department stores and over 10000 new outlets are also under development. Growth in rural population and increase in agricultural incomes also offers considerable scope for innovative retail formats.

Indias vast middle class and its virtually untapped retail industry are key attraction for global retail giants wanting to enter new markets. As India continues to get strongly integrated with global policies the retail sector is bound to grow manifold in the years to come. The depth of the Indian market and the variations of the consumer profile portend a bright future for the sustained growth of the Indian retail sector.

Centre locations
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The locations where retail developers have flourished traditionally are the high streets of M .G Road F C road and J. M. road in the central part of the city these markets have a unique mix of local brands along with national and international retailers both are known to generate substantial revenues along with heavy footfalls.

However the development of malls in the neighboring locations is anticipated to affect the footfalls of these traditional high streets. A case in point is the presence of magnum mall (175000 sq. ft.) In the camp area which has created a pull effect on the consumer stronghold of M. G. road.nucleus mall (200000 sq ft ) in camp which became operational in 2005 had shoppers stop take up space for its second outlet in the city. Another large scale project Pune central a mall by pantaloon retail on bund garden road has food bazaar as its anchor tenant and caters to the domestic needs of the bulk of the resident population of central Pune.

These retail market in the central location of the city currently house approximately 1.78 mn.sq.ft of retail stock a new mall fun n travel (100000 sq ft) has been planned in the bund garden region while two malls ascent (93654 sq ft) And one centre port (1240000 sq ft) are coming up on the university road. These developments are slated to enter the market sometime in 2007.

Suburban and peripheral location

While the retail markets in camp an bund garden road continue to mature retail sector activity is increasingly shifting to suburban and peripheral locations of Aundh, Hadpsar karve road kondhwa and yerwada note wothy mall development sudev axis (350000) will also be operational in 2007 this micro market is expected to witness a number of large scale mall developments amounting to approximately 2.3 mn sq ft of new retail space by 2008.

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RESEARCH METHODOLOGY

Research Methodology ill common parlance refers to a search for knowledge. One can also define also research as a scientific and systematic research for pertinent information a specific topic. Research is an art of systematic investigation. Some people consider research as a movement, a movement to the known to the unknown.

According to Clifford Woody: 13

Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions mil reaching conclusion, and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis.

Marketing research is defined as a systematic gathering and analysis of the data concern with an objective. The whole activity is divided into various parts and after compilation of that we reach at certain findings, which enable us to marketing decision. It involves the diagnosis of information needed and the selection of the relevant and inter-related variables.

Research Plan: Research Approach: SURVEY METHOD Primary Source Primary data consists of original information gathered for specific purpose. The primary data is collected through questionnaire. The questionnaire is through common instrument collecting primary collection. I collected the data through questionnaire from different small eating joints.

Research Instrument The research instruments used for collecting the primary data were the questionnaire.

Questionnaire

The questionnaire was carefully developed tested and debugged before they were administered on a large scale. Each questions contributed to the research objective here questionnaire is structured types means there are concrete, definite and predetermined questions.

The questions are presented are exactly same wording and in the same an order to all respondents. The questionnaire had a mix type of open ended, closed ended and multiple choice questions. The questions were limited in numbers simple direct and unbiased technology was adopted.
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Data Source: Primary:

The data was collected through questionnaire comprising of 17 questions.

Secondary:

The data was collected through: Data Collection Instrument:

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Questionnaire Sampling Procedure: 1. Sample Unit

2. Sample Size

: : :

Consumer visited Small Eating Joints 50 Respondents Random Sampling Method

3. Sampling Method

DATA ANALYSIS

Question No. 1 Do you Visit Lifestyle often? Do you visit No. of Respondents (%) No. of Respondents (in no.) Yes 100% 50 No 0% 0

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Do you visit
120% 100% 80% 60% 40% 20% 0% Yes No No. of Respondents (%)

Interpretation All the candidates interviewed visited mall.

Question No. 2 With whom you prefer to visit Lifestyle? Prefer malls to visit Friend Spouse 20% Colleagues 4% Alone 16%

No. of 60% Respondents (%) No. of 30 Respondents (in no.)

10

17

Prefer to visit malls

16% 4% Friend Spouse Colleagues 20% 60% Alone

Interpretation Out of 50 respondents: 60% preferred to visit Lifestyle with Friends. 20% preferred to visit Lifestyle with their spouse.

Question No. 3 How much time you spend in a Lifestyle ? Time spent on Hour visiting malls 1-2 hrs 50% 25 More than 3 hours 30% 15

No. of Respondents 20% (%) No. of Respondents 10 (in no.)

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Time spent on visiting Lifestyle

30%

20% Hour 1-2 hrs More than 3 hours 50%

Interpretation
Out of 50 respondents 25 respondents spend approx.1-2 hrs Lifestyle Out of 50 respondents 15 respondents spend approx.more than 3 hrs Lifestyle Out of 50 respondents 10 respondents spend approx. less than 1hrs Lifestyle

Does the person with whom you visit mall influence you? Person who influence No. of Respondents (%) No. of Respondents (in no.) Yes 40% 20 No 60% 30

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Person who influence

Person who influence

60%

70% 60% 50% 40% 30% 20% 10% 0% Yes 40%

No. of Respondents (%)

No

Interpretation Humans are social being, different person has different perception and attitude, so they purchase according to their own need like.

Question No. 5 Do you visit the Lifestyle, by advertising influence? Advertisement influence Yes No 24% Sometime yes 16% Cant say 20%

No. of 40% Respondents (%) No. of 20 Respondents (in no.)

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10

20

Advertisement influence

20% 40% Yes No 16% 24% Sometome yes Cant say

Interpretation Out 50 respondents: 20 respondents responded that they come to know things through advertisement. 12 respondents responded that they are not affected by advertisement. 08 respondents responded that sometime yes and sometime they dont know.

Question No. 6 Why do you choose Lifestyle for shopping? Choosing malls shopping Less for time Economical Brands Variety Quality All under one roof 6% Convenient

No. of 14% Respondents (%)

24%

26%

8%

14%

8%

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No. of 7 Respondents (in no.)

12

13

3 4

Choosing malls for shopping

Less time Economical Brands Variety Quality All under one roof Convenien

Interpretation 7 respondents said less time, 12 respondents said its economical, 13 respondents said they get brands.

Question No. 7 Do you go for unplanned (spot Purchases) shopping / Purchases?

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Unplanned purchases or purchases

Yes spot

No

Cant say

No. of Respondents 54% (%) No. of Respondents 27 (in numbers)

32% 16

14% 7

Unplanned purchases or spot purchases

14% Yes No 32% 54% Cant say

Interpretation Out of 50 respondents

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 54% respondents made unplanned purchases. 32% respondents said they dont make unplanned purchases. 14% respondents said that they were not sure

Question No. 8 Which of the following media you find the ads of Lifestyle? Mode of Newspaper advertisement No. of 30% Respondents (%) No. of 15 Respondents (in numbers) T.V 50% Radio 10% Hoardings 8% Others 2%

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Mode of advertisement

8% 10%

2% 30% Newspaper T.V Radio Hoardings Others

50%

Interpretation Out of 50 respondents 30% respondents get aware through Newspaper. 25% respondents get aware of the ads through T.V.
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 10% respondents get aware through Radio channels. 8% respondents get aware through hoardings.

FINDINGS AND OBSERVATIONS

1. Almost every person contacted or interviewed said that he/she has visited Lifestyle.

Maximum number of respondents said they are aware of Lifestyle.

2. From analysis we found out that most of the people were affected and attracted with offers and schemes.

3. It has been found out that most of the people in Bangalore city visit Lifestyle for variety

brands .

4. Consumers choose Lifestyle to stop because they all want variety and brands and shopping

at malls according to the consumers is economic as compared to shopping at other places.

5. Most of the people who were interviewed by me responded that brand loyal and most of

them stack to the brand they like.

6. Advertising plays a very crucial part in the consumer decision making process.

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7. Most of the respondents take on the spot decision of buying different

products because of the various attractive product displays and pretty combination which the store tries on the mannequins is mostly dependent by the customers, show that most of the consumers are attracted towards different fancy displays. 8. For most of the respondents quality plays a very important role because most of the respondents said that they want quality products and thats also one reason for most of the respondents sticking to particular brands. 9. We can also say that location, variety convenience and economical products are not the only things which attract the customer but there are some other factors which play a major role in attracting the customers as mentioned.

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LIMITATIONS

Time constraint

The allotted time to conduct the survey was 15 days. Therefore it became a bit difficult to cover the entire city of Bangalore. However, the key areas were aptly covered.

Availability of data: Non-willingness of the respondents to answer the questionnaire was also a hurdle.

Reliability of data:-

Reliability of data always remains a prime concern when humans are surveyed. Mon-interest, poor understanding, unclear questions, inability to think instantly and customer biases creeps in apprehensiveness in the minds of the researcher while tabulating and analyzing the data.

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CONCLUSION

Consumers behavior is often studied because certain decisions are significantly affected by their behavior or expected actions. For this reason consumer behavior is said to be applied discipline. 1. In a general sense, the most important reason for studying consumer behavior is the significant role it plays in our lives. Much of our time is spent directly in the market place, eating or engaging in other activities. A large amount of additional time is spent thinking about products and services, talking to friends about them, and seeing or hearing advertisements about them. In addition, the goods people eat and the manner in which they use them significantly influence how they live their daily lives. These general concerns alone are enough to justify our study of consumer behavior. However, many seek to understand the behavior of consumers for what are thought to be more immediate and tangible reasons.

2. The main reason behind this project was to find out the behavior of the consumer buying

behavior while shopping at mall because most of the population surveyed preferred to shop at malls and how day by day the consumers demands are increasing and through this project I came to know that what are the various behavior of a typical customer who shops at Lifestyle.

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RECOMMENDATIONS

Customers are becoming price conscious they are having many options in the market considering the consumer buying behavior the Lifestyle should take certain definite steps like retaining customers by giving those schemes discounts and better service.

The trend today has been to combine shopping with various offerings for ex in a mall apart from shopping a customer enjoys food courts and many others services which todays modem malls provide.

Customer expect ALL UNDER ONE ROOF

The benefits of this totality offering are that many vendors get to have people patronized their offerings while the shopping experience i.e. being enhanced more business is got by the stores at the venue. Shopping is no longer a onetime agenda for people. Various options are opening up.

Bibliography

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Books and magazines:

Consumer Behavior - Fourth edition by David L. London & Albert J. Delia Bitta. Research methodology (Methods & Technology)

Revised Second edition by C.R.Kothari

Through net surfing:

www.google.com www.wikipedia.com www.answers.com

Annexure Questionnaire on Consumer shopping behavior in BIG BAZAAR

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Hi..!! Please spare some time to fill in this survey. The survey is voluntary and will help us to gather more information to make our project.

1. Do you visit mall? a. Yes b. No

2. With whom you prefer to visit malls? a. Friends b. spouse c. Colleague d. Alone

3. How much time do you usually spend in a mall?

a. Hour

b.

1-2 hours

c.

More than 3 hours

4. Does the person with whom you visit mall influence you? a. Yes b. No

5. Do you visit the mall, by advertisement influence? a. Yes b. No c. Sometimes yesd. Cant say

6. Why do you choose mall for shopping?

a. Less time

b.

Economic

c.

Brands d. Convenience

Variety

e.

Qualityf.

All under one g.

7. Which of the following media you find the ads of any shopping mall? a. News b. T.V. c. Radio d. Hoardings

8. How frequently do you visit mall?

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a. Weekly

b.

Monthly

c.

Occasionally

9. Do you stick to a particular brand? a. Yes b. No c. Cant say

10. Why you opt for a particular mall?

a. Quality

b.

Services

c.

Brand name

d.

word of mouth

11. Do you go for unplanned (spot) shopping / purchases? a. Yes b. No c. Cant say

12. What are the things you would like to list under planned purchases?

a. Apparels b. d. g. Jewwellary Utensils

Food products c. e. h. Cosmetics Grocery

Appliances f. i. Health & oral care Toy & Gifts

13. Feed back / Suggestions:-

.. .. ..

Name.. Occupation

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