Consumer Behaviour

INTERNATIONAL MANAGEMENT INSTITUTE
A Study Of Buying Behaviour Of Two Different Classes Of Household Life

Cycle.
Consumer Behavior
Executive PGDM – 2008-2009
Individual Project-1 (A)
A Study of Buying Behaviour of Two Different Classes

of Household Life Cycle
Submitted By-
Modak Priy (08XPGDM31)
Roll No: 08XPGDM59 1

Cycle.
ACKNOWLEDGEMENT
I am sincerely thankful to Prof. Neena Sondhi, International

Management Institute for her kind guidance and support during
the development of this report.
I am also thankful to my friends and the respondents for their

generous support in formulation of this report.

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TABLE OF CONTENTS
S. No Content
1. Objective
2. Introduction
3. Stages of consumer buying process
4. PART I ( Young married couple )
5. PART II ( Empty nest I )
6. Comparison/Differences of the two categories
7. Implications to the marketer
8. Conclusion
9. Questionnaires
OBJECTIVE

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The objective of this project is to study the implication of typical buying behaviour
of two different classes of people especially Young married category and Empty nest
I category in three different types of purchases which are as follows.
1. Regular grocery purchase
2. Last weekend entertainment decision
3. Last major purchase.
The study has been designed to analyse differences/similarities, individual/
autonomous/ joint decision making of various aspects of behavioural decision making
of consumers. It also implicates the opportunities for a marketer based on the
response given by individual class and categories of the purchases.
INTRODUCTION
Buying Behaviour is the decision processes and acts of people involved in buying
and using products. Buying behaviour is more often referred as consumer behaviour
in marketing which is defined as the behaviour that's consumer display in searching
for purchasing, using, evaluating and disposing of product and services that they think
will satisfy their needs. It is important to know how individuals make decisions to
spend their available resources like time, money etc .
In this aspect we have to know that individuals we are focusing on what they buy,
why they buy, from where they buy, how often they buy, how often they use it, what
are their spending limits etc.
STAGES OF CONSUMER BUYING PROCESS

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a
purchase. All consumer decisions do not always include all 6 stages, determined by
the degree of complexity.
The 6 stages are:
1. Problem Recognition (awareness of need)—it is the difference between the

desired state and the actual condition. Deficit in assortment of products.
Hunger--Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know
you were deficient? I.E., see a commercial for a new pair of shoes, stimulates
your recognition that you need a new pair of shoes.
2. Information search--
o Internal search, memory.
o External search if you need more information. Friends and relatives
(word of mouth). Marketer dominated sources; comparison shopping;
public sources etc.
3. Evaluation of Alternatives--need to establish criteria for evaluation, features
the buyer wants or does not want. Rank/weight alternatives or resume search.
May decide that you want to eat something spicy, Indian gets highest rank etc.

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If not satisfied with your choice then returns to the search phase. Can you
think of another restaurant? Look in the yellow pages etc. Information from
different sources may be treated differently. Marketers try to influence by
"framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package,
store, method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product
availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive
Dissonance, have you made the right decision. This can be reduced by
warranties, after sales communication etc.
After eating an Indian meal, may think that really you wanted a Chinese meal
instead
PART 1
STAGES OF HOUSE HOLD LIFE STYLE
House hold life cycle is a traditional array of events through which an individual
moves into a variety of relatively distinct and well defined categories over time.
There are a variety of routes in most of the categories and the movement of categories
into another frequently occurs. Each category in the house hold life cycle poses a set
of problems that house hold decision makers must solve. The solution to these
problems ultimately to the maintenance of lifestyle and thus to consumption.
Stages Marital status Children at home
Single Married None <6 >6

years years
Younger(<35)
Single I
Young Married
Full Nest I
Single parent I
Middle Aged
Single II
Delayed Full NestII

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Full Nest II
Single Parent II
Empty Nest I
Older(>64)
Empty Nest II
Single III
YOUNG MARRIED COUPLE
The decision to marry, or to live together, brings about a new stage in the house hold
life cycle. The lifestyles of married couples are greatly altered as they develop a
shared lifestyle. Joint decisions and shared roles in house hold responsibilities are
major attributes in this class of House hold life cycle. Savings, house hold furnishing,
major appliances, and more comprehensive insurance coverage are among the new
areas of decision making. Most house hold in this stage has dual income and is thus
relatively affluent.
A study conducted in this project analyses the various aspects related to decision
making of couples in the young married category and their implications on the
marketer. In this paper I also follow the approach of classifying families into different
categories according to a combination of variables that I consider to be
Indicators of a particular stage of life; however, I also allow for life-cycle effects on
the covariance structure of all the observable variables, and in particular on the way
that income and family size affect expenditures. The study is organised to deal with
three different types of buying by the people in this particular class especially
a) Regular grocery purchase
b) Last major purchase.
c) Last weekend entertainment decision.( Any two)
The study asks the families to share their responses through a Questionnaire which
has been designed to relate the important parameters in the buying behaviour of
various segments of needs.
Results
The following sub paragraphs highlights the results of responses of the study carried
out in this class of House hold life cycle.
1. Age - Respondent surveyed was in the age range of 25-30.Age plays an
important role in decision making. Proper age positioning is essential for any
products. Age carries with it culturally behavioural and attitudinal norms. Age
has a lot influence in the consumption of products.

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2. Income – House hold income of the respondent studied was between 3 - 4.5
lakhs. The house hold was dual income with an estimated SDI of more than
one lakh.
3. Frequency of purchase – In case of grocery purchase the frequency of the

respondent was weekly. The dependence of purchase lies on the consumption
pattern and time allocated by the respondent to this type of purchase. It was
observed that young married couple are time cautious and are unable to spare
substantial amount of time to such purchases. Frequency of entertainment
decisions of the respondent was bimonthly. It was observed that in this
category respondents do not have too much of spare time which they can
enjoy so they try to hunt for better options once they get time. However since
the respondent was a dual income house hold it was difficult for both
members in the house hold to spare time more frequently on entertainment .In
case of major last purchase, the respondent frequency was once in a month
which implies that major purchase decisions are not taken frequently in this
category. Reason can be lack of excess SDI of the hose hold.
4. Source – Source of general grocery purchase of the respondent was the nearby
super market. Source selection may be an important parameter for a marketer
to select the distribution channel for a particular product. Daily grocery
products require intensive distribution so that it can be easily available in
market. For very small and urgent purchases the respondent opted the nearby
kirana store to fulfil needs like milk, bread, egg, etc.Other perishable and non
perishable products were bought by the respondent on weekly bases and the
purchase was need based and planned. Last major purchase source of the
respondent was dependent on various factors like nearby showroom of the
brand, freebees given by the retailer to the respondent, services and modes of
payment. Source of the entertainment decision was newspaper and word of
mouth.
5. Decision maker – Respondents joint decision making in the category of

grocery purchase was observed but there was a slight inclination found
towards the wife .Last major purchase decision was taken by the husband in
the family. Entertainment decision was a joint decision taken by the couple.
6. Need based or impulsive purchase – Grocery purchase decision of the

respondent was need based though the entertainment decision was an
impulsive one. Last major purchase decision of the respondent was again a
need based decision.
7. Brand considerations – Regular grocery purchase decision of the respondent

was found to be in the category of brand switchers .Their buying behaviour
was found to be erratic towards big brands .They considered to buy regular
commodities like rice ,floor, sugar, etc in loose packages from the

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supermarket because of the price sensitiveness. Inclination towards a

particular brand was seen in the category of last major purchase where the
purchase was entirely need based. Respondents were cautious about the brand
name though they were willing to spend extra for a particular product.
8. Effects of external sources like advertisement/word of mouth etc. – External

sources play an important role in the decision making process in all
categories. The buying behaviour is inclined towards various lifestyles,
categories of classes and sub classes, culture, subcultures and the influence of
factors like advertising and word of mouth. Though grocery purchase product
do not have large impact on external factors in this category but external
factors play an important role in the major purchase of products and
entertainment decisions.
9. Pattern of buying – Pattern depends upon the type of purchase of the

respondent.
10. Determinants – Determinants like Price, quality, services etc do not have
much impact on regular grocery purchase but they play an important role in
major buying decisions. Respondents in this category rated price as their
major determinant followed by quality and then services.
Responses of purchases
Observation Regular grocery Last weekend Entertainment
purchase purchase decision
Product General items like Television Movie and
commodities, Dinning out.
daily house hold
items etc
Frequency Weekly Need based Bimonthly
Source Super market Nearest Dealer Nearby hall
Decision maker Joint Male Joint
Determinants Price conscious Price conscious Price conscious
External effects Not much Much Much
PART II
EMPTY NEST I CATEGORY
The empty nest one category basically consists of people who are married long ago,
having children who are not living with their parents. This category also includes
people with second marriage in which children from first marriage are not living
together. Both adults will typically have jobs ,so they are very busy.However,the
absences of children and their responsibilities creates more time for
intertainment.They also have money to spend on dinning out, expensive vacations,

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second house,luxuary cars and time saving services.Theyare prime markets for
financial services.
Similar study as done above has been done here to study the various aspects of
buying behaviour in this class of house hold life cycle. Respondents were asked to
indicate their responses through a questionnaire based model approach attached at the
end of the project. Results of their responses and the analyses of the implications of
important factors have been highlighted below.
1. Age - Respondent surveyed was in the age range of 35 and above.
2. Income – House hold income of the respondent studied was between 4.5 lakhs
and above. The house hold was single income with an estimated SDI of more
than two lakh.
3. Frequency of purchase – In case of grocery purchase the frequency of the

respondent was weekly. Here the dependence of purchase lies on the
consumption pattern only. It was observed that empty nest have plenty of
spare time which they allocate in buying their products. They spend their time
in purchasing major items and entertainment.
4. Source – Source of general grocery purchase of the respondent was the nearby
super market. For major purchases the respondents experienced options were
they get easy after sales services and the nearness of the market from their
house.
5. Decision maker – Respondents joint decision making in the category of

grocery purchase was observed .Last major purchase decision was taken by
the husband in the family. Entertainment decision was a joint decision taken
by the couple.
6. Need based or impulsive purchase – Grocery purchase decision of the

respondent was need based though the entertainment decision was an
impulsive one. Last major purchase decision of the respondent was an
impulsive decision based on the facilities of lifestyle improvement.
7. Brand considerations – Regular grocery purchase decision of the respondent

was found to be in the category of brand loyal. .They considered to buy
regular commodities like rice, floor, sugar, etc in loose packages from the
supermarket. Major purchase items bought by the respondent was based on
various determinants like brand , its after sales service, its reputation in the
market, word of mouth, variety etc.
8. Effects of external sources like advertisement/word of mouth etc. – Here the

respondents are sensitive towards external sources like word of mouth ,
advertisements, etc.They are social and want to remain as members of the

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class they belong. They percolate values and ethics of the cultures they
belong. They are highly confident of their decisions taken and want to buy the
best available brand .
9. Pattern of buying – Pattern depends upon the type of purchase of the

respondent.
10. Determinants – Determinants like Price, quality, services etc do not have
much impact on regular grocery purchase but they play an important role in
major buying decisions. Respondents in this category rated price as their
major determinant followed by quality and then services
Responses of purchases
Observation Regular grocery Last weekend Entertainment

purchase purchase decision
Product General items like Air Conditioner Travelling and
commodities, religious prayers.
daily house hold
items etc
Frequency Weekly Improving living Monthly
standard.
Source Super market Nearest Dealer -
Decision maker Joint Male Joint
Determinants After sales service After sales service After sales service
conscious conscious conscious
External effects Much Much Much
COMPARISON OF BUYING BEHAVIOURS OF THE TWO CLASSES
Observation for Regular Grocery Item Purchased
Observation Young Married Empty Nest I
Item purchased Household kitchen items, basic Household kitchen items, basic
utilitarian like toilet soap, utilitarian like soap, washing
washing powder,shampoo,etc powder,shampoo,toothpaste etc
Frequency Weekly Monthly
Need Basic need plus few items Basic need plus few items influenced by
influenced by promotion offer on impulsive movement due to special

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some products attribute of the product
Selection Joint selection Individual selection
Decision Joint decision Individual decision but admitted by

both.
Price More price sensitive, less brand Less price sensitive, more brand loyal,
sensitive/Brand loyal, brand switchers. not brand switchers
loyality
Observation for Last weekend entertainment decision
Item purchased Movie , Dinning out Travelling and religious prayer
Frequency Weekly Weekly
Need Need Based Entertainment based
Selection Joint selection Joint selection
Decision Joint decision Joint decision
Price Price sensitive Not price sensitive
Observation for Last major purchase
Item purchased TV Air Conditioner
Need Entertainment Luxury based
Selection Individual Individual
Decision Joint Joint
Effect on Media affected Media affected

purchase
Price Price sensitive, could change the Strictly Brand loyal
Sensitive/Brand brand for a good offer or discount
Loyal available.

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Differences of purchase decision between two category
Factors Young Married Empty Nest I
Price This category is more price This category is less price sensitive
Sensitiveness sensitive towards items either it’s for all items.
a grocery items or a heavy
purchase, more often they are
willing to respond to change or
differences in price.
Brand Loyalty Young married are not a brand Empty nest I consumer are a complete
loyal consumer, they are brand brand loyal, they do not switches their
switchers, more often they switch brand occasionally, they are in the
their brand towards price and phase where taste of a specific brand
amount or any special deal. This is developed fully.
is the time when their taste for a
specific brand is under
development.
Group impact Have slight group impact Do not have group impact
Materialism Instrumental materialism Terminal materialism
IMPLICATIONS FOR THE MARKETER
The purchase and consumption of many products are driven by the HLC.The reason
for this is that each stage poses unique problem or opportunity to house hold members
and the resolution requires the consumption of products and services.Marketting
manager must analyse the house hold decision process separately for each product
category within each target market. House hold member participation in the decision
process varies by involvement with the specific product, role specialization, personal
characteristics and one’s culture and sub culture. Participation also varies with stage
in the decision process. Most decisions are reached by consensus.
Purchase of each of products and brands is caused by a different motive, each require
a distinct marketing and advertising program. Concentrating on segments like Young
married couples the marketer should study the pattern and behaviour of this class. The
category consists of young respondents who are generally price sensitive and their
purchase is need based. Consumer of this class does not buy products; instead, they
buy motive satisfaction or problem solution. Managers must discover the motives that
their products and brands can satisfy and develop marketing mixes around these
motives. People make such purchases for a variety of motives, including rewarding
themselves for an accomplishment. A marketer should identify the feeling related for

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a particular product and to be run advertising campaigns according to the feeling

associated with the product.
Each customer will have a certain price acceptability window and different customers
have different limits in their perceptions of what price is within their range. For the
marketing professional the trick is to figure out how customers determine what
"price" means. Price Sensitivity Measurement method may be used. This method asks
survey respondents to define a possible range of prices noted in a scale called a price
ladder. In order for the survey to be valid and not become a self fulfilling prophecy,
the prices represented must be positioned on the upper or lower ends of the scale and
not in the middle. Survey respondents are asking to pick two different price points on
the price scale: The point where the product is beginning to appear "expensive" or a
poor value for the money, and the point where they perceive the product to be a "good
buy".
Implications for the marketer in the category of empty nest I lie on their behaviour
which indicates that this class of people have the absence of responsibilities of
children, a well settled lifestyle and a good financial base to support. They have free
time which they enjoy in dinning out, in vacations spend on new houses, luxury cars ,
time saving services etc.They are prime markets for financial services. The marketer
must realise various channels of promotion to these individuals and the values which
can be added to ensure complete satisfaction.
CONCLUSION
The house hold is the basic purchasing and consuming unit and is therefore a great
importance to marketing managers. Family house holds also are the primary
mechanism where by culture and social class values and behaviour patterns are
passed on to the next generation. The house hold life cycle is a useful way to develop
the marketing strategy. One axis is the stage in the HLC, which determines the
problem the house hold will likely to encounter, the other is a set of social strata
,which provides a range of acceptable solutions. Each cell represents a market
segment.
Family decision making involves consideration of questions such as who buys, who
decides, and who uses. It is complex and involves emotions and interpersonal
relationship as well as product evaluation and acquisition.
Marketing managers must analyse the house hold decision process separately for each
product category within each target market. House hold member participation in the
decision process varies by involvement with the specific product, role specialization
personal characteristics, and ones culture and sub culture. Participation also varies by
stage in decision process.

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QUESTIONAIR FOR LAST WEEKAND GROCERY

PURCHASE
When you fill in this questionnaire please use a pen and mark (√) on the best
response.
Q1. Indicate the category you belong to?

a) Young Married ( Married in a span of one year)
b) Married with no children.
c) Single
d) None of these.
Q2. Please mark your age slot to which you belong?

a) Average couple age less than 25.
b) Average couple age between 25 to 30.
c) Average couple age between 30 to 35.
d) Average couple age 35 and above.
Q3. Mark your annual family income from the options given?
a) Less than 2 Lakhs.
b) Between 2 -3 Lakhs
c) Between 3- 4.5 Lakhs.
d) Above 4.5 Lakhs
Q4. Please indicate the frequency of your grocery purchases?

a) Daily.
b) Weekly
c) Biweekly
d) Once in fortnight
e) Monthly
Q5. Where do you generally purchase grocery products?

a) Supermarkets
b) Wholesalers
c) Nearby kirana stores
d) Internet purchase
e) Others
Q6. Your latest grocery purchase if any?

a) Food products
b) Health products
c) Lifestyle products
d) Cosmetics
e) Others
Q7. Was the product a necessity or it was an impulse purchase?

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a) A necessity
b) Impulse purchase
c) Both the above
Q8. Who all participates in grocery buying decision in your family?

a) Husband only
b) Wife only
c) Both husband and wife
d) Others
Q9. Do you consider asking others responses in decision making?

a) Yes
b) No
Q10. While buying regular grocery products are u brand specific or not?
a) Yes
b) No
c) Can be either of the two.
Q11. What is the normal pattern of buying grocery that you generally follow?
a) Necessity first and then other purchases
b) Other purchases first and then necessity
c) Can be anything
Q12. Rate factors according to your preferences? (Indicate 1 as first preference and
follow the sequence)?
a) Quality of the product. ( )
b) Cost of the item. ( )
c) Brand Name ( )
d) Place of buying ( )
e) Responses of others ( )
Q13. What is your preferred mode of payment?

a) Credit
b) Cash
c) Both
d) Other

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QUESTIONAIR FOR LAST MAJOR PURCHASE
When you fill in this questionnaire please use a pen and mark (√) on the best
response.
a) Young Married (Married in a span of one year)
c) Single
d) None of these

d) Above 4.5 Lakhs
Q4. What major purchase you have made in the last six months?
Indicate……………………………………………………
Q5. Was the purchase really required?

a) Yes it was.
b) No, it was not badly needed.
c) I had planned it earlier.
d) No it was a spontaneous purchase.
e) Just for a change.
Q6. Did you go for a particular brand?

a) Yes
b) No
Q7. Why did you select that brand? Mark the best alternative?
a) Good Quality
b) Flamboyant Looks
c) Price
d) Aesthetics
e) After sales service
f) Payment options
g) Special discounts
Q8. Was it your first purchase of the product or you was buying for the second time?

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a) Yes it was my first purchase

b) No I had that product earlier.
Q9. Were you unhappy with your last brand?

a) Yes
b) No
Q10. Where did you come to know about the product?

a) Media advertisements.
b) Magazines
c) Friends and relatives.
d) Internet
e) Sales persons
f) Others
Q11. Before purchasing did you surveyed the retailers/shops?

a) Yes
b) No (Please do not mark the next question)
Q12. What were you prime factors in the survey?

a) Price
b) Serviceability
c) Discounts
d) Mode of payment
e) Variety in product.

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QUESTIONAIR FOR LAST WEEKAND

ENTERTAINMENT DECISION

a) Young Married ( Married in a span of one year)
c) Single
d) None of these.

d) Above 4.5 Lakhs
Q4. Your entertainment decision?

a) A movie in a hall.
b) Shopping and outdoor purchase.
c) A visit to Historical place.
d) Outstation visit.
e) Visit to a restaurant.
f) Others.
Q5. Was your decision planned?

a) Yes
b) No
c) Spontaneous.
Q6. Did you look for any other option before deciding to go for the one you
preferred?
a) Yes
b) No
Q7. How frequently you go for a decision like the one you took above?
a) Twice a year.
b) Once a year.
c) Frequently.
d) Once in a month.
e) Once in a week.

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f) Fortnightly.
Q8. Who all in you family are involved in taking such decisions?
a) Husband only.
b) Wife only.
c) Both wife and husband.
d) Influenced by family members.
e) Others.
Q9. Before making an entertainment decision what is the first factor that comes to
your mind?
a) Price.
b) Quality of entertainment.
c) Time Constraint
d) Others.

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INTERNATIONAL MANAGEMENT INSTITUTE

A Study Of Buying Behaviour Of Two Different Classes Of Household Life

Executive PGDM – 2008-2009

Individual Project-1 (A)

A Study of Buying Behaviour of Two Different Classes

Modak Priy (08XPGDM31)

Roll No: 08XPGDM59 1

I am sincerely thankful to Prof. Neena Sondhi, International

I am also thankful to my friends and the respondents for their

Roll No: 08XPGDM59 2

3. Stages of consumer buying process

4. PART I ( Young married couple )

5. PART II ( Empty nest I )

6. Comparison/Differences of the two categories

7. Implications to the marketer

Roll No: 08XPGDM59 3

STAGES OF CONSUMER BUYING PROCESS

The 6 stages are:

1. Problem Recognition (awareness of need)—it is the difference between the

Roll No: 08XPGDM59 4

STAGES OF HOUSE HOLD LIFE STYLE

Stages Marital status Children at home

Single Married None <6 >6

Delayed Full NestII

Roll No: 08XPGDM59 5

YOUNG MARRIED COUPLE

Roll No: 08XPGDM59 6

3. Frequency of purchase – In case of grocery purchase the frequency of the

5. Decision maker – Respondents joint decision making in the category of

6. Need based or impulsive purchase – Grocery purchase decision of the

7. Brand considerations – Regular grocery purchase decision of the respondent

Roll No: 08XPGDM59 7

supermarket because of the price sensitiveness. Inclination towards a

8. Effects of external sources like advertisement/word of mouth etc. – External

9. Pattern of buying – Pattern depends upon the type of purchase of the

Roll No: 08XPGDM59 8

1. Age - Respondent surveyed was in the age range of 35 and above.

3. Frequency of purchase – In case of grocery purchase the frequency of the

5. Decision maker – Respondents joint decision making in the category of

6. Need based or impulsive purchase – Grocery purchase decision of the

7. Brand considerations – Regular grocery purchase decision of the respondent

8. Effects of external sources like advertisement/word of mouth etc. – Here the

Roll No: 08XPGDM59 9

9. Pattern of buying – Pattern depends upon the type of purchase of the

Observation Regular grocery Last weekend Entertainment

COMPARISON OF BUYING BEHAVIOURS OF THE TWO CLASSES

Observation for Regular Grocery Item Purchased

Observation Young Married Empty Nest I

Roll No: 08XPGDM59 10

some products attribute of the product

Selection Joint selection Individual selection

Decision Joint decision Individual decision but admitted by

Observation for Last weekend entertainment decision

Observation Young Married Empty Nest I

Item purchased Movie , Dinning out Travelling and religious prayer

Frequency Weekly Weekly

Need Need Based Entertainment based

Selection Joint selection Joint selection

Decision Joint decision Joint decision

Price Price sensitive Not price sensitive

Observation for Last major purchase

Observation Young Married Empty Nest I

Item purchased TV Air Conditioner