ACKNOWLEDGEMENT

I am indebted to xxxxxxxxxx, division,

xxxxxxxxxx. for giving me an opportunity to
work as a summer project trainee in this
esteemed organization. His knowledge and
experience was a great motivating factor. This
effort would not have been possible without his
able, efficient, valuable and timely advice,
insights and thoughts. I am very much thankful
to sir for his valuable guidance and support.
I take this opportunity to express my heartfelt
gratitude to my faculty guide Prof. Kailash
ch. nayak, Faculty of Marketing, Niis Institute
Of Business Administration, Biju Patnaik
University Of Technology(BPUT). I am thankful
to sir for his valuable support and guidance
throughout the project.
I am also thankful to Mr.Pradeep Das, Direct
sales, Godrej Appliance for his assistance and
support, I am equally grateful to each and
every member of Godrej & Boyce Mfg. Co.
Ltd. ,Bhubaneswar for their whole-hearted cooperation in completing this project in
stipulated time.
1

I extend my sincere thanks to all Distributors,

Wholesalers who helped me for my project.
Last but not the least, I would like to thank my
family members and friends whose unbounded
support facilitated the successful completion of
the project.

DECLARATION
I, xxxxxxxxx of 1st Year xxxxx, xxxxxxxxx,
Biju Patnaik University Of Technology(BPUT) ,
hereby declare that the project titled Buying
Behivabour of flats people of Varanasi
was done by me under the guidance of
xxxxxxx, Faculty of Marketing, Biju Patnaik
University, Mr. Niladri S. Chatterjee,
Dy.Manager, Direct sales, Appliance Division,
Godrej & Boyce Mfg. Co. Ltd, Bhubaneswar,
during 27th June, 2009 to 14th August, 2009.
I also declare that this project has not been
submitted for the award of any other degree,
diploma, literature or recognition earlier.

Place: Bhubaneswar
Date:
(Regn: 0806995043)

TABLE OF CONTENT
1.Executive Summary
2.Introduction to project
3.Introduction to the Project
4.Buying an Appartment
5.
6.Consumer Buying Behaviour
7.Data analysis & interpretation
8.Findings
9.Recommendation
1o.Questionnaries
11.References
3

Executive Summary
(A) Project Title
Consumer Buying Behaviour of Appartments.
(B) Project Location
Reai Estate sites in Varanasi
(C) Objectives
1.To know the reach of the Real Estate Managers in different
organizations, institution, govt., homes etc and who is their
competitor, who is the market leader etc.
2. Describe the level of involvement and types of consumer
problemsolvingprocesses.
3.Recognizethestagesoftheconsumerbuyingdecisionprocess.
4.Explainhowsituationalinfluencesmayaffect
theconsumerbuyingdecisionprocess.
5. Understand the psychological influences that may affect the
consumerbuyingdecision
process.
6.Befamiliarwiththesocialinfluencesthataffect
theconsumerbuyingdecision.
(D) Research Methodology
The research was mainly of primary research consisting of
descriptive research and exploratory research. The secondary
research consisted of literature search and Internet search.

Introduction to Project
i. Scope of Project
The very purpose which the Developetr has laid down has
given us enough guidelines to design the scope of the project.
The project would discuss:
The market impression of Real Estate in different sectors, to
find out the competitor and market leader in this category.
Which factor influence the selling, what consumer looks
before they purchase the Appartment.
How Developer can increase the market share .
ii. Limitations
Retailers never had the luxury of time to offer, therefore our
conversation was brief. It would be unfair if we fail to
mention that, some retailers were very helpful and
Cooperative.
The institution survey sometimes experienced reduced
seriousness.
The no. of Real Estate Companies Apartment Developer and
the ingredients they were using sometimes were given in
approximation by the person answered as he/she was not the
concerned authority.
The no. of sites surveyed might not be the correct
representation of the market.

iii. METHODOLOGY
I did my project in two phases one was exploratory survey and
other was descriptive survey.
Exploratory Research
Exploratory Research was done before I started my descriptive
research in order to get the detailed idea about the consumer
appliances industry. This was also necessary for finding about the
data related to the other brands in appliance. Some of the main
objectives for doing Exploratory Research are mentioned below:
Study of literature published on consumer appliance industry.
Identifying competitors and their details.
Research on innovations of other brands in appliance
segment.
Observation of display of merchandise and in-store
promotions of other brands.
In depth interview of retailers and the company
representative.
Descriptive Research
Descriptive research was done in Bhubaneswar over one month.
This was done using the structured questionnaire.

INTRODUCTION
TO
BUSINESS

Buying a house is one of the most important

decisions of life for most of the peoplethis is so because most of
the people in our country who buy a house does so only once or
twice in their life timehouse is one product which consumes a
large portion of of ones lifetime income.
Inspite of it being such an important decision, the consumer
buying behavior in case of a housing property is not that much
evolvedthe consumer buying behavior is more evolved in case
of buying a TV / Music system than in case of buying a house
Most of the home buyers, while buying the house focus on only 4 aspects 1.
BUDGET2. LOCATION.3. NUMBER OF ROOMS / SIZE OF THE HOUSE4.
TYPE OF HOUSElets have a look at these very obvious aspects that people
look at, while buying a house.

Buying an Apartment
Apartments enjoy a prestigious reputation synonymous with vibrant city living, stylish
open-plan space and great views. But choosing and buying an apartment can be an
arduous task, and there are plenty of things you need to think about at each and every
stage of the investment process. The issues you need to consider when buying an
apartment are often fundamental to the unique apartment experience, so it's a good idea to
really get to grips with your chosen property type before hitting the streets in search of
your perfect pad. This guide will help to highlight those key points you need to be
thinking of at each and every stage of your quest for the perfect apartment.

Before you Begin

Spend some time thinking about the kind of apartment you're looking for. This will help
you narrow down your options and enable you to determine some 'must haves' in your
apartment choices. Why not designate a file or specific notepad for relevant ideas, lists,
notes and criteria to help you organise your ideas? This could really help you keep on top
of your thoughts during the planning, hunting, viewing and buying process. You might
want to keep the following in mind when narrowing down your apartment choices:

Location, Location, Location! - Narrow down the areas that you are most
interested in living in, and make a list of these locations. Similarly, make a note of
all the areas you definitely don't want to live. This way, any agents you approach
will know straightaway which properties to offer and which to discard. This
process will help narrow down your search area and save you time when both
searching and viewing.

Money Matters - Consider your finances carefully and decide on a maximum

budget narrowing down your search field in this way will ensure that you only
view properties you can afford! Don't forget to bear in mind your income and
outgoings factoring in bills and general living expenses will help you be more
realistic about your options.

Space - How much space will you need in your apartment? How many
bedrooms? How big a kitchen? Do you need an office? Set yourself some rough
criteria for potential properties, so you can present your checklist to estate agents
and help them to search for properties more effectively.

Style - Estate agents use certain design terms with which you need to be familiar
when searching for your apartment: Studio apartments merge all your living space
into one area, while open-plan design means that your kitchen, dining area and
living room will be contained in one open space. Consider your thoughts on these
styles of apartment do you want separate rooms within the apartment? Would
studio living be too cramped for you?
10

Specifics - Are there certain criteria on which you are unwilling to compromise?
Do you want wooden floors? High ceilings? An open-plan design? Designated
parking spaces?

Finding your apartment

So, you've narrowed down your options: location, budget, apartment size and must-haves
now it's time to start searching! More and more properties are being listed on the
internet, so why not get online and start searching? Here is where those decisions about
your specific requirements will come into their own and really help you search quickly
and effectively. Search engines within estate agency websites will allow you to input the
number of bedrooms you're looking for, your maximum budget, and even the specific
location you're interested in. Searching in this way is quicker and more efficient than
pounding the streets from agency to agency, and many sites will have photographs
included in the property profile, allowing you to narrow down those properties that you
like the look of.
When you find an apartment you're interested in, simply contact the agency to book a
viewing. Time is of the essence! Apartments are increasingly popular and the property
market can move very quickly. Arrange viewings at your earliest convenience while
keeping an eye on the property listings for new additions.

Viewings
Viewing those apartments you're interested in can be both an exciting and a laborious
task. If you're experiencing the former, that's great, but finding your new home should be
fun, but don't let your enthusiasm blind you to important decisions and issues when
viewing potential properties. If you're suffering from the latter: don't give up! If you're
struggling to find your ideal property, consider revising your original criteria slightly,
offering you more apartment options. A top tip when you're viewing lots of apartments in
different areas is to take a notebook, tape measure and even a digital camera. This way
you can look over your 'potentials' when you get home without confusing properties,
11

forgetting important details or risking those rose tinted spectacles! Notes and photos will
really help jog your memory, and remind you of those points you were concerned or
ecstatic about during your viewing. Here are some more top considerations to bear in
mind when viewing your potential apartment:

Location - On your route to the apartment, take in your surroundings. Are there
shops and amenities nearby? How do you feel about the neighbourhood? How
convenient are the transport links?

Security - Consider your surroundings long before you step through your
potential apartment's front door. How easy is it to gain access to the main
building? Is there an intercom system? Is it working? Is the area well lit? Consider
your first impressions carefully do you feel safe? If you have a car, will it be
secure?

Communal Space - Apartments must be considered in light of the space you will
be sharing with others in the building. How clean is the communal space
(stairways, lifts, garden space)? Does the building look cared for?

Inside the Apartment - Imagine yourself in the apartment space. Can you see yourself
living in the space available? If you have furniture, will it fit? (Here's where your tape
measure comes in!) How easy will it be to move your furniture into the apartment? Are
you overlooked by adjacent buildings?

Things to Look Out For

While the above points are vital for a successful property viewing, there are a few further
points you need to be aware of when viewing an apartment. Apartment living can come
hand in hand with unique property issues that can work both for and against you. Try to
bear in mind the following apartment-specific considerations as you view properties.

Noise is a key consideration when investing in an apartment. Wooden floors may

look chic and stylish, but they can also make for noisy neighbours! If you're
12

seriously thinking of investing in a particular apartment, take the time to research

those living above and below as well as next-door to your property. A week into
your new apartment-life is not the time to discover a neighbour's penchant for
heavy metal or playing the drums!

Accessibility can be an issue in an apartment block. Take a minute to think of

those who will be visiting you at home are there people for whom access could
be a problem? Is there a functional lift for older visitors or family? Simple
considerations such as shopping trips may help you to better envisage the
practicalities of apartment life.

Outside Space One of the major sacrifices of apartment living can be the loss of
outdoor space. Consider this sacrifice carefully, and if you find the loss too
daunting, ask your agent about apartments with balconies, roof terraces or even
shared gardens. Alternatively, check the surrounding areas for public parks or
footpaths.

Pets If you have pets, consider them in your property search. This can be a major
consideration for those wishing to move into an apartment, as you must be fair to
both your pets and your neighbours. Is your dog's barking likely to irritate
neighbours? Will you be able to give the pet adequate fresh air and exercise?

When you've found an apartment you're really interested in, you may want to have a
survey carried out on the property to ensure there are no hidden problems which may
affect your interest. These surveys offer you peace of mind should you finally decide to
put in an offer, and can help you to avoid making an unsound investment. Once you're
satisfied that the property is up to standard, you're free to make an offer.

13

ATTITUDE OF CUSTOMERS
The attitude of Indian consumers has undergone a major transformation over the last few
years. The Indian consumer today wants to lead a life full of luxury and comfort. He
wants to live in present and does not believe in savings for the future. The people of
metro are open to the idea of consumption and a better lifestyle. The Indian middle class
has provided a big boost to the consumer culture during the recent past and it is hoped
that their buying behaviour will continue to change in the coming future. The factor that
has led to the growth of the middle class is an increase in their income level due to high
rate of industrialization, growth of services sector and better employment opportunities.
The size of the middle class is growing rapidly and today it stands at 30% of the total
population as per the statistics provided by the National Council of Applied Economic
Research (NCAER). Due to fast growth of the services sector per capita income of people
of India is also increasing. The number of middle class is increasing due to another fact
that people are fast shifting from agriculture to the services and industry sector where
growth prospects are reasonably high as compared to the agriculture sector which is
showing slow growth these days.
The consumption pattern of a country depends on liberalization of economic policies,
buying habits of the younger generation, financial independence at a young age, increase
in number of nuclear families and increase in media exposure of the people. The tastes
and preferences of the current generation are changing rapidly. The current generation
does not mind paying extra for better facilities and ambience. Another major factor that
has led to increased consumerism is the growth of credit culture in India. The Indian
consumer does not feel shy to purchase products on credit and pay tomorrow for what
they use or buy today. This tendency has led to a tremendous increase in purchase of
homes, cars, two-wheelers and consumer goods. The market for luxury products in India
is also climbing at an astonishing rate as compared to a decade ago when it was almost
negligible. The increasing number of luxury cars and imported cars is a clear indication
of the rise in this trend. 20 years back diamonds were confined to the royal households
only, but today diamond is easily in the reach of the middle class. The reason behind this
is that the purchasing power of people of India is rising very steeply.

14

The Indian consumer today is highly aware about the product, price, quality and the
options available with him. The purchasing is done by keeping all these factors in mind.
Today, price is not the only consideration as it was a few years back when prices played a
major role in purchasing.

Uniqueness of the consumers

The Indian consumers of today are unique in the following respects:
1) Indian consumers have become value sensitive and are not much price sensitive as was
the case earlier. If they feel that a particular product offers them more value and its price
is high, even then they are willing to buy the product.
2) The Indian consumers strictly follow their culture, tradition and values, as a result of
which foreign companies were forced to give an Indian touch to them in order to succeed
in India. McDonalds, MTV, Pepsi, Star TV, Coca Cola India and many more had to
Indianise themselves to flourish in India. Karva Chauth is celebrated with more zeal and
enthusiasm than the Valentine Day.
3) The Indian consumer of today gives preference to features of a product rather than its
brand name. The trend that higher segment consumers only buy the top brands has also
come to an end.
4) Even after liberalization Indian companies and brands are doing very well. It is clearly
evident from the fact that despite many foreign brands being sold in India, Raymond is
still Indias largest textile company and Haldiram is doing well despite the presence of
McDonalds and Pizza Hut.
5) The consumers today are not confined to a single brand and prefer change rather than
sticking to the same brand. Not often do we see any home with cars of the same brand or
household products of the same brand.

15

6) The use of credit card for shopping is a new emerging trend in India. Also consumers
are availing credit or loan from banks and other financial institutions to fulfill their needs
and wants.
7) The Indian consumers are spending thick and fast on premium and luxury products.
8) The Indian consumers have shown another major change in their buying behaviour.
They just dont want availability of products, they also want better experience, services
and ambience. This has led to the growth of shopping malls where shopping,
entertainment and better facilities are all available under one roof.
9) The rural Indian consumers are also showing signs of change. They have all the
modern amenities at their home and their standard of living is fast improving. The rural
households have earned huge money due to price rise in real estate. They are also shifting
towards industrial and services sector, hence their purchasing power is increasing. It is
reflected in their living standard and possession of all electronic gadgets and luxury cars.
10) There is a stiff competition in the Indian market today and it has become a buyers
market from sellers market. Customers are the ultimate beneficiary of the fierce
competition in the market. Competition has reduced prices to a great extent and has
forced the manufacturer to maintain product quality to sustain in the highly competitive
market.
MARKET STRATEGIES
Change in marketing strategies of companies with change in consumer buying behaviour
With change in consumer buying behaviour the companies also made necessary changes
in their marketing strategies. The changes include:
1) Launching of premium products by companies to fulfill requirements of high class
consumers.
2) Since purchasing power of rural India has increased, the companies have started
shifting their focus towards rural India to capture untapped rural market. This has reaped
16

huge benefits for companies like in cases of PepsiCo, Coca Cola India and other FMCG
companies.
3) Companies not only aim to sell their products but also aim to provide better after sales
services to its consumers. For example companies have provisions to send their
technicians to repair the cars struck at highways or other outer locations due to technical
failure or in case of a mishap. This improves the companys credibility and helps to build
its customer base.
4) Companies design their products on the basis of market segmentation so that they have
products to suit every pocket and requirement.
5) Due to sharp growth in the communication sector, companies are providing many
schemes and plans to attract customers. For example mobile service providers provide
lifetime option and free calls to other mobile users under a specific plan of the company.
6) Due to fierce competition in the electronics market and peoples willingness to
purchase hi-tech products the rates of LCD and plasma TVs have been slashed by 25%30%. Through this strategy electronic companies received very good response from the
consumers in the recent past and were able to build a considerable market for their
products.
7) Indian consumers have developed a liking for foreign tours and holidays. This has led
to development of many travel agencies that provide a planned foreign tour at a
reasonable price. What is even more interesting is that the customer does not have to pay
the amount in lumpsum, instead, he has the facility to make the payment in monthly
installments according to his convenience.
8) Consumers of India have developed a tendency to save travel time. For such
consumers low fare or low cost carriers are available that provide air travel facility at a
very affordable price.
9) Consumers of India want better housing facilities. The construction companies are
fulfilling this requirement of consumers by providing them luxurious houses, exquisite
17

interiors, round the clock water and electricity supply, full time security, club house,
gymnasium, etc. within the premises.
10) Indian consumers are increasingly becoming aware of the importance of health and
hygiene. Hence companies are making products to suit their health like low calorie, low
fat food. As far as hygiene is concerned companies have fully mechanized their plants to
maintain hygiene and pack the food in such a way that it remains fresh for longer period
of time and does not lose its nutritive value before consumption.
11) The need for internet is fast growing. To fulfill this need of consumers, mobile
manufacturing companies are providing internet access facility on mobile phones. This
has revolutionized the communication sector and provided a means of communication
that was never ever in anybodys dreams till a few years back.
12) Indian consumers liking for credit is also increasing rapidly. Hence many financial
institutions have come into existence in India and are flourishing. Banks have also
become liberal in their loan and credit policies.

Values of the DEVELOPER

18

 Commitment to Quality
Customer Orientation
Dedication & Commitment
Discipline
Honesty & Integrity
Learning Organisation
Openness & Transparency
Respect/Care & Concern for People
TeamworkTrust

19

Consumer Buying Behaviour

Possibly the most challenging concept in marketing deals with
understanding why buyers do what they do (or dont do). But such
knowledge is critical for marketers since having a strong
understanding of buyer behavior will help shed light on what is
important to the customer and also suggest the important
influences on customer decision-making. Using this information,
marketers can create marketing programs that they believe will be
of interest to customers.
As you might guess, factors affecting how customers make
decisions are extremely complex. Buyer behavior is deeply rooted
in psychology with dashes of sociology thrown in just to make
things more interesting. Since every person in the world is
different, it is impossible to have simple rules that explain how
buying decisions are made. But those who have spent many years
analyzing customer activity have presented us with useful
guidelines in how someone decides whether or not to make a
purchase.
In fact, pick up any textbook that examines customer behavior and
each seems to approach it from a different angle. The perspective
we take is to touch on just the basic concepts that appear to be
commonly accepted as influencing customer behavior. We will
devote two sections of the Principles of Marketing tutorial to
customer behavior. In this section we will examine the buying
behavior of consumers (i.e., when people buy for personal reasons)
while in section 4 we will examine factors that influence buyers
decisions in the business market.

20

This tutorial includes the following topics:

1. Consumer Buying Behavior
2. Types of Purchase Decisions
3. Why Consumers Buy
4. What Influences Purchasing
5. Internal: Perceptual Filter
6. Internal: Knowledge and Attitude
7. Internal: Personality and Lifestyle
8. Internal: Roles and Motivation
9. External: Culture and Groups
10. External: Situation
11. How Consumers Buy
12. Purchase Decision Steps 1 and 2
13. Purchase Decision Steps 3, 4 and 5

Types of Consumer Purchase Decisions

Consumers are faced with purchase decisions nearly every day. But
not all decisions are treated the same. Some decisions are more
complex than others and thus require more effort by the consumer.
Other decisions are failry routine and require little effort. In
general, consumers face four types of purchase decisions:
Minor New Purchases these purchases represent something new
to a consumer but in the customers mind is not a very important
purchase in terms of need, money or other reason (e.g., status
within a group).
Minor Re-Purchases these are the most routine of all purchases
and often the consumer returns to purchase the same product
without giving much thought to other product options (i.e.,
consumer is brand loyalty).
21

 Major New Purchases these purchases are the most difficult of

all purchases because these are important to the consumer but
the consumer has little or no previous experience making the
purchase . This type of decision often (but not always) requires
the consumer to engage in an extensive decision-making
process.
Major Re-Purchase - these purchase decisions are also important
to the customer but the customer feels more confident in making
the decision since they have experienced purchasing the product
in the past.
For marketers it is important to understand how consumers treat
the purchase decisions they face. If a company is targeting
customers who feel a purchase decision is difficult (i.e., Major
New Purchase), their marketing strategy may vary greatly from a
company targeting customers who view the purchase decision as
routine. In fact, the same company may face both situations at the
same time; for some the product is new, while other customers see
the purchase as routine. The implication of buying behavior for
marketers is that different buying situations require different
marketing efforts.

Why Consumers Buy

As we discussed in Part 1: What is Marketing?, customers make
purchases in order to satisfy needs. Some of these needs are basic
and must be filled by everyone on the planet (e.g., food, shelter)
while others are not required for basic survival and vary depending
on the person. It probably makes more sense to classify needs that
are not a necessity as wants or desires. In fact, in many countries
where the standard of living is very high, a large portion of the
populations income is spent on wants and desires rather than on
basic needs.
In this tutorial when we mention the consumer we are referring to
the actual buyer, the person spending the money. But is should also
be pointed out that the one who does the buying is not necessarily
22

the user of what is bought and that others may be involved in the
buying decision in addition to the actual buyer. While the
purchasing process in the consumer market is not as complex as
the business market, having multiple people involved in a purchase
decision is not unusual. For example, in planning for a family
vacation the mother may make the hotel reservations but others in
the family may have input on the hotel choice. Similarly, a father
may purchase snacks at the grocery store but his young child may
be the one who selected it from the store shelf.
So understanding consumer purchase behavior involves not only
understanding how decisions are made but also understanding the
dynamics that influence purchases.

What Influences Purchasing

As we discussed the decision-making process for consumers is
anything but straight forward. There are many factors that can
affect this process as a person works through the purchase
decision. The number of potential influences on consumer behavior
is limitless. However, marketers are well served to understand the
KEY influences. By doing so they may be in a position to tailor
their marketing efforts to take advantages of these influences in a
way that will satisfy the consumer and the marketer (remember this
is a key part of the definition of marketing).

23

For the purposes of this tutorial we will break these influences

down into three main categories: Internal, External and Marketing.
However, those interested in learning more about customer buying
activity may want to consult one or more consumer behavior books
where they will find additional methods for explaining consumer
buying behavior.
For the most part the influences are not mutually exclusive.
Instead, they are all interconnected and, as we will see, work
together to form who we are and how we behave.
For each of the influences that are discussed we will provide a
basic description and also suggest its implication to marketers.
Bear in mind we only provide a few marketing implications for
each influence; clearly there are many more.

INTERNAL INFLUENCES
24

We start our examination of the influences on consumer purchase

decisions by first looking inside ourselves to see which are the
most important internal factors that affect how we make choices.

Perceptual Filter
Perception is how we see ourselves and the world we live in.
However, what ends up being stored inside us doesnt always get
there in a direct manner. Often our mental makeup results from
information that has been consciously or unconsciously filtered as
we experience it, a process we refer to as a perceptual filter. To us
this is our reality, though it does not mean it is an accurate
reflection on what is real. Thus, perception is the way we filter
stimuli (e.g., someone talking to us, reading a newspaper story)
and then make sense out of it.
Perception has several steps.
Exposure sensing a stimuli (e.g. seeing an ad)
Attention an effort to recognize the nature of a stimuli (e.g.
recognizing it is an ad)
Awareness assigning meaning to a stimuli (e.g., humorous ad
for particular product)
Retention adding the meaning to ones internal makeup (i.e.,
product has fun ads)

25

How these steps are eventually carried out depends on a persons

approach to learning. By learning we mean how someone changes
what they know, which in turn may affect how they act. There are
many theories of learning, a discussion of which is beyond the
scope of this tutorial, however, suffice to say that people are likely
to learn in different ways. For instance, one person may be able to
focus very strongly on a certain advertisement and be able to retain
the information after being exposed only one time while another
person may need to be exposed to the same advertisement many
times before he/she even recognizes what it is. Consumers are also
more likely to retain information if a person has a strong interest in
the stimuli. If a person is in need of new car they are more likely to
pay attention to a new advertisement for a car while someone who
does not need a car may need to see the advertisement many times
before they recognize the brand of automobile.

26

Marketing Implication:
Marketers spend large sums of money in an attempt to get
customers to have a positive impression of their products. But
clearly the existence of a perceptual filter suggests that getting to
this stage is not easy. Exposing consumers to a product can be very
challenging considering the amount of competing product
messages (ads) that are also trying to accomplish the same
objective (i.e., advertising clutter). So marketers must be creative
and use various means to deliver their message Once the message
reaches consumer it must be interesting enough to capture the their
attention (e.g., talk about the products benefits). But attending to
the message is not enough. For marketers the most critical step is
the one that occurs with awareness. Here marketers must
continually monitor and respond if their message becomes
distorted in ways that will negatively shape its meaning. This can
often happen due in part to competitive activity (e.g., comparison
advertisements). Finally, getting the consumer to give positive
meaning to the message they have retained requires the marketer
make sure that consumers accurately interpret the facts about the
product.

Knowledge
Knowledge is the sum of all information known by a person. It is
the facts of the world as he/she knows it and the depth of
knowledge is a function of the breadth of worldly experiences and
the strength of an individuals long-term memory. Obviously what
exists as knowledge to an individual depends on how an
individuals perceptual filter makes sense of the information it is
exposed to.

27

Marketing Implications:
Marketers may conduct research that will gauge consumers level
of knowledge regarding their product. As we will see below, it is
likely that other factors influencing consumer behavior are in large
part shaped by what is known about a product. Thus, developing
methods (e.g., incentives) to encourage consumers to accept more
information (or correct information) may affect other influencing
factors.

Attitude
In simple terms attitude refers to what a person feels or believes
about something. Additionally, attitude may be reflected in how an
individual acts based on his or her beliefs. Once formed, attitudes
can be very difficult to change. Thus, if a consumer has a negative
attitude toward a particular issue it will take considerable effort to
change what they believe to be true.

Marketing Implication:
Marketers facing consumers who have a negative attitude toward
their product must work to identify the key issues shaping a
consumers attitude then adjust marketing decisions (e.g.,
advertising) in an effort to change the attitude. For companies
competing against strong rivals to whom loyal consumers exhibit a
positive attitude, an important strategy is to work to see why
consumers feel positive toward the competitor and then try to meet
or beat the competitor on these issues. Alternatively, a company
can try to locate customers who feel negatively toward the
competitor and then increase awareness among this group.

28

Personality
An individuals personality relates to perceived personal
characteristics that are consistently exhibited, especially when one
acts in the presence of others. In most, but not all, cases the
behaviors one projects in a situation is similar to the behaviors a
person exhibits in another situation. In this waypersonality is the
sum of sensory experiences others get from experiencing a person
(i.e., how one talks, reacts). While ones personality is often
interpreted by those we interact with, the person has their own
vision of their personality, called self concept, which may or may
not be the same has how others view us.

Marketing Implication:
For marketers it is important to know that consumers make
purchase decisions to support their self concept. Using research
techniques to identify how customers view themselves may give
marketers insight into products and promotion options that are not
readily apparent. For example, when examining consumers a
marketer may initially build marketing strategy around more
obvious clues to consumption behavior, such as consumers
demographic indicators (e.g., age, occupation, income). However,
in-depth research may yield information that shows consumers are
purchasing products to fulfill self-concept objectives that have
little to do with the demographic category they fall into (e.g.,
senior citizen may be making purchases that make them feel
younger). Appealing to the consumers self concept needs could
expand the market to which the product is targeted.

Lifestyle
29

This influencing factor relates to the way we live through the

activities we engage in and interests we express. In simple terms it
is what we value out of life. Lifestyle is often determined by how
we spend our time and money.

Marketing Implication:
Products and services are purchased to support consumers
lifestyles. Marketers have worked hard researching how consumers
in their target markets live their lives since this information is key
to developing products, suggesting promotional strategies and even
determining how best to distribute products. The fact that lifestyle
is so directly tied to marketing activity will be further examined as
we discuss developing target market strategies (See Part 5
Targeting Markets).

Roles
Roles represent the position we feel we hold or others feel we
should hold when dealing in a group environment. These positions
carry certain responsibilities yet it is important to understand that
some of these responsibilities may, in fact, be perceived and not
spelled out or even accepted by others. In support of their roles,
consumers will make product choices that may vary depending on
which role they are assuming. As illustration, a person who is
responsible for selecting snack food for an office party his boss
will attend may choose higher quality products than he would
choose when selecting snacks for his family.

Marketing Implication:
Advertisers often show how the benefits of their products aid
consumers as they perform certain roles. Typically the underlying
message of this promotional approach is to suggest that using the
advertisers product will help raise ones status in the eyes of
others while using a competitors product may have a negative
effect on status.
30

Motivation
Motivation relates to our desire to achieve a certain outcome.
Many internal factors we have already discussed can affect a
customers desire to achieve a certain outcome but there are others.
For instance, when it comes to making purchase decisions
customers motivation could be affected by such issues as financial
position (e.g., can I afford the purchase?), time constraints (e.g., do
I need to make the purchase quickly?), overall value (e.g., am I
getting my moneys worth?), and perceived risk (e.g., what
happens if I make a bad decision).

Marketing Implication:
Motivation is also closely tied to the concept of involvement,
which relates to how much effort the consumer will exert in
making a decision. Highly motivated consumers will want to get
mentally and physically involved in the purchase process. Not all
products have a high percentage of highly involved customers
(e.g., milk) but marketers who market products and services that
may lead to high level of consumer involvement should prepare
options that will be attractive to this group. For instance, marketers
should make it easy for consumers to learn about their product
(e.g., information on website, free video preview) and, for some
products, allow customers to experience the product (e.g., free
trial) before committing to the purchase.

EXTERNAL INFLUENCES
31

Consumer purchasing decisions are often affected by factors that

are outside of their control but have direct or indirect impact on
how we live and what we consume.

Culture
Culture represents the behavior, beliefs and, in many cases, the
way we act learned by interacting or observing other members of
society. In this way much of what we do is shared behavior, passed
along from one member of society to another. Yet culture is a broad
concept that, while of interest to marketers, is not nearly as
important as understanding what occurs within smaller groups or
sub-cultures to which we may also belong. Sub-cultures also have
shared values but this occurs within a smaller groups. For instance,
sub-cultures exist where groups share similar values in terms of
ethnicity, religious beliefs, geographic location, special interests
and many others.

Marketing Implication:
As part of their efforts to convince customers to purchase their
products, marketers often use cultural representations, especially in
promotional appeals. The objective is to connect to consumers
using cultural references that are easily understood and often
embraced by the consumer. By doing so the marketer hopes the
consumer feels more comfortable with or can relate better to the
product since it corresponds with their cultural values.
Additionally, smart marketers use strong research efforts in an
attempt to identify differences in how sub-culture behaves. These
efforts help pave the way for spotting trends within a sub-culture,
which the marketer can capitalize on through new marketing
tactics (e.g., new products, new sales channels, added value, etc.).

Other Group Membership

In addition to cultural influences, consumers belong to many other
groups with which they share certain characteristics and which
may influence purchase decisions. Often these groups contain
32

opinion leaders or others who have major influence on what the

customer purchases. Some of the basic groups we may belong to
include:
Social Class represents the social standing one has within a
society based on such factors as income level, education,
occupation
Family ones family situation can have a strong effect on
how purchase decisions are made
Reference groups most consumers simultaneously belong to
many other groups with which they associate or, in some cases,
feel the need to disassociate.

MarketingImplications:
Identifying and understanding the groups consumers belong to is a
key strategy for marketers. Doing so helps identify target markets,
develop new products, and create appealing marketing promotions
to which consumers can relate. In particular, marketers seek to
locate group leaders and others to whom members of the group
look for advice or direction. These opinion leaders, if well
respected by the group, can be used to gain insight into group
behavior and if these opinion leaders accept promotional
opportunities could act as effective spokespeople for the
marketers products.

Situation
A purchase decision can be strongly affected by the situation in
which people find themselves. Not all situations are controllable,
in which case a consumer may not follow their normal process for
making a purchase decision. For instance, if a person needs a
product quickly and a store does not carry the brand they normally
purchase, the customer may choose a competitors product.

Marketing Implications:
33

Marketers can take advantage of decisions made in uncontrollable

situations in at least two ways. First, the marketers can use
promotional methods to reinforce a specific selection of products
when the consumer is confronted with a particular situation. For
example, automotive services can bepurchased that promise to
service vehicles if the user runs into problems anywhere and at
anytime. Second, marketers can use marketing methods that
attempt to convince consumers that a situation is less likely to
occur if the marketers product is used. This can also be seen with
auto products, where marketers explain that using their product
will prevent unexpected damage to their vehicles.

How Consumers Buy

So now that we have discussed the factors influencing a
consumers decision to purchase, lets examine the process itself.
This process is presented in a sequence of 5 steps as shown below.
However, whether a consumer will actually carryout each step
depends on the type of purchase decision that is faced. For
instance, for minor re-purchases the consumer may be quite loyal
to the same brand, thus the decision is a routine one (i.e., buy the
same product) and little effort is involved in making a purchase
decision. In cases of routine, brand loyal purchases consumers may
skip several steps in the purchasing process since they know
exactly what they want allowing the consumer to move quickly
through the steps. But for more complex decisions, such as Major
New Purchases, the purchasing process can extend for days,
weeks, months or longer. So in presenting these steps marketers
should realize that, depending on the circumstances surrounding
the purchase, the importance of each step may vary.

1. Need/Want/Desire is Recognized
In the first step the consumer has determined that for some reason
he/she is not satisfied (i.e., consumers perceived actual condition)
and wants to improve his/her situation (i.e., consumers perceived
desired condition). For instance, internal triggers, such as hunger
34

or thirst, may tell the consumer that food or drink is needed.

External factors can also trigger consumers needs. Marketers are
particularly good at this through advertising, in-store displays and
even the intentional use of scent (e.g., perfume counters). At this
stage the decision-making process may stall if the consumer is not
motivated to continue (see Motivation above). However, if the
consumer does have the internal drive to satisfy the need they will
continue to the next step.

2. Search for Information

Assuming consumers are motivated to satisfy his or her need, they
will next undertake a search for information on possible solutions.
The sources used to acquire this information may be as simple as
remembering information from past experience (i.e., memory) or
the consumer may expend considerable effort to locate information
from outside sources (e.g., Internet search, talk with others, etc.).
How much effort the consumer directs toward searching depends
on such factors as: the importance of satisfying the need,
familiarity with available solutions, and the amount of time
available to search. To appeal to consumers who are at the search
stage, marketers should make efforts to ensure consumers can
locate information related to their product. For example, for
marketers whose customers rely on the Internet for information
gathering, attaining high rankings in search engines has become a
critical marketing objective.

3. Evaluate Options
Consumers search efforts may result in a set of options from
which a choice can be made. It should be noted that there may be
two levels to this stage. At level one the consumer may create a set
of possible solutions to their needs (i.e., product types) while at
level two the consumer may be evaluating particular products (i.e.,
35

brands) within each solution. For example, a consumer who needs

to replace a television has multiple solutions to choose from such
as plasma, LCD and CRT televisions. Within each solution type
will be multiple brands from which to choose. Marketers need to
understand how consumers evaluate product options and why some
products are included while others are not. Most importantly,
marketers must determine which criteria consumers are using in
their selection of possible options and how each criterion is
evaluated. Returning to the television example, marketing tactics
will be most effective when the marketer can tailor their efforts by
knowing what benefits are most important to consumers when
selecting options (e.g., picture quality, brand name, screen size,
etc.) and then determine the order of importance of each benefit.

4. Purchase
In many cases the solution chosen by the consumer is the same as
the product whose evaluation is the highest. However, this may
change when it is actually time to make the purchase. The
intended purchase may be altered at the time of purchase for
many reasons such as: the product is out-of-stock, a competitor
offers an incentive at the point-of-purchase (e.g., store salesperson
mentions a competitors offer), the customer lacks the necessary
funds (e.g., credit card not working), or members of the
consumers reference group take a negative view of the purchase
(e.g., friend is critical of purchase). Marketers whose product is
most desirable to the consumer must make sure that the transaction
goes smoothly. For example, Internet retailers have worked hard to
prevent consumers from abandoning online purchase (i.e., online
shopping carts) by streamlining the checkout process. For
marketers whose product is not the consumers selected product,
last chance marketing efforts may be worth exploring, such as
offering incentives to store personnel to talk up their product at
the checkout line.

5. After-Purchase Evaluation
36

Once the consumer has made the purchase they are faced with an
evaluation of the decision. If the product performs below the
consumers expectation then he/she will re-evaluate satisfaction
with the decision, which at its extreme may result in the consumer
returning the product while in less extreme situations the consumer
will retain the purchased item but may take a negative view of the
product. Such evaluations are more likely to occur in cases of
expensive or highly important purchases. To help ease the concerns
consumers have with their purchase evaluation, marketers need to
be receptive and even encourage consumer contact. Customer
service centers and follow-up market research are useful tools in
helping to address purchasers concerns.
As weve seen, consumer purchasing is quite complex.

37

FUTURE TRENDS OF CONSUMER

BEHAVIOUR
Some emerging future trends of buying behaviour of Indian consumers are:
1) The new generation will prefer brands that are launched during their growing up years.
They will not prefer brands that are very old in the market. This will make it easier for
new

brands

to

cement

their

place

in

the

market

and

run

successfully.

2) The new generation will possess more risk taking capability and their previous
generations. They will be willing to try out new careers, new ideas and new ways of
doing

things.

3) Indian consumers will be more logical in their thinking and foreign brands will not
only be considered as the standard of quality. Each brand, be it Indian or foreign, will be
judged on its merit.
4) The middle and lower class consumers buying behaviour will change and they may
behave as if they are rich.
5) The contribution of women in decision making will increase with growing number of
nuclear families, educated women and working women. The number of middle class
working women will rise sharply. This will lead to introduction of women oriented
products that may range from insurance products to vocational education.
6) Tomorrows consumer will focus more on technology and credit purchase.
7) Number of nuclear families will increase.
8)

Health

care

will

become

very

important

in

the

coming

years.

38

Conclusion

From above analysis it is very clear that Indian consumers buying behavior and their
attitude have changed drastically in the recent past. One thing is for sure that the pace of
change in the needs, desires and wants of the Indian consumers will be even steeper and
will further change drastically in the near future.

39

DATA ANLYSIS OF CONSUMER SURVEY

Q1. Are you going to purchase an Appartment ?

Customer

Yes

No

58%

42%

As per our
market survey
most of the
58%customer
said that they
are going to
buy apartment.

Q2. Hoe many bedrooms you require?

Videocon

LG

Samsung

Sony

Goderj
40

Customer

Two

Three

Four

Duplex

16%

35%

22%

27%

preference b

From the above diagramTHREE bedroom is most preferable..

41

Q3. Which factors influence you to purchase a product?

Price,

Service,

Brand image,

Features,

Influence by other,
Reason for

Price

purchasing
a product

28

Servic

Brand

Features Influence

image

by others

18

22

20

12

From the above diagram, We come across that the Price is the main
factor which influence the consumer buying process. After that it
is followed by Brand image,features,service of the company.At last
purchase decision of consumer get more influence by the others.

42

FINDING
After completing the survey and analyzing the responses of the
persons , we came across the following facts: A large number of consumers are preferring the three
bedroom flats.
Majority of the respondents in the survey were found
reluctant about giving details to us.
Existing customers of Apartments are satisfied with the
services, with few exceptions.
Customer think that Developer name of can influence their
purchase decision.

43

RECOMMENDATIONS
Based on our descriptive research on retailers and institution in the
Bhubaneswar market we have some recommendations for
Company. Also through whole project duration we did some
observational study and literature review and we found that there
are some factors which can help the company to build a brand in
national market.
Some of the recommendations are as follows:1) Company should organize free checkup camp for big institution
like educational institution, hotels and hospitals, so that it will
increase the loyalty of the institution.
2) Company should give Quotation for different slabs of different
quantity at the best possible price for consolidated quantity.
3) Competitors are giving the appliance in credit, which is one of
the main factors which determine the purchase. Developers take
post dated cheque from the customers. .
4) Palm plate should be distributed with business newspaper and
other popular newspaper.
5) The company should position itself as a life style Brand through
advertisement in leading newspaper.
6) Company gives more emphasis on heavy advertising.

44

Questions for the survey

INSTITUTION NAME:
LOCATION:

Dear Sir/madam, I am a MBA student from xxxxxxxxxxxxxxxxxxxxxxxx,

Varanasi and doing a project on Consumer Buying Behaviour of Flats. Your response is
highly valuable. I would be grateful if you could help me by filling it up honestly and
legitimately. I assure that any information provided will be solely used for academic
purpose and will be kept confidential. No answers are right or wrong; give the answers
which you feel are the best.
Consumer buying behavior / need analysis on appliances
We would be thankful if you share some of your valuable opinion regarding the
following questionnaire.
NAME:

CONTACT NO:

AGE:

ADDRESS:

OCCUPATION:
1. Family size
Less than 4 members ( )

4-6 members ( )

More than 6 members ( )

2.Which bedroom type apartment will you prefer?
Three four

two

duplex

3. Do you know about apartments Act

Yes

No

4. By the help of whom would you like to buy the Appartment

Brocker ( )
( )

Direct marketing ( )

Developer

5. Which factor influences you to purchase appartments?

Company brand name ( ) promotional activities ( )
45

Product feature

( )

price

Service

( ) influence by other

( )
( )

6. Satisfaction level with your apartment service?

Extremely unsatisfied ( )
Satisfied

somehow unsatisfied ( )
( )

somehow satisfied

Extremely satisfied

( )

( )

7. Which location do you like the bestt?

Lanks ( )
Bhelupur ( )

Sigra

( )

Gauriganj ( )

OTHER ( )

8. View about Apartments?

REFERENCES
46

1. Kotler, Philip and Keller, K.L. (2007), Marketing

management
2.Electronic Reference: Official website of GODREJ
www.godrej.com
www.godrejappliances.com
www.godrejdirect.com
3. Electronic Reference:
http://.wikipedia.org/wiki/Bhubaneswar
4. Electronic Reference:
http://www.google.com

47