A STUDY ON CONSUMER DECISION MAKING IN SREE LAKSHIMI ORGANIC

COTTON INDUSTRY AT KARUR

CHAPTER I

INTRODUCTION

INTRODUCTION

Sree lakshimi organic cotton industry is one of the largest industries in the cotton industry of
global market. Being the leader in product and process technologies in the manufacturing
sector, it has been recognized as one of the drivers of economic growth. During the last few
decades, well directed efforts have been made to provide a new look to the automobile policy
for realizing the sector's full potential for the economy. The liberalization policies have led to
continuous increase in competition which has ultimately resulted in modernization in line
with the global standards as well as in substantial cut in prices. Aggressive marketing by the
auto finance companies have also played a significant role in boosting textiles demand,
especially from the population in the middle income group..These aggressive marketing
strategies have resulted in making the consumer the major key for success in the industry.
Each product offering is now designed to meet and exceed the expectations of the consumer.
But understanding consumer behaviour and knowing consumers is never simple. And it is
more difficult that to understand what a consumer perceives about the product. Customers
may say one thing but do another. They may not be in touch with their deeper motivations.
They may respond to influences that change their minds at the last moment

MARKET.

The term market may be considered as a convenient meeting place where buyers and sellers
gather together for the exchange of goods and services. Market means a group of people
having unmet wants, purchasing power to make their demand effective and the will to spend
Their income to those wants. Today a market is equated with the total demand. The
American marketing association defines a market, as the aggregate demand of potential
buyers for a product or service. Under, a marketer wants to create or capture and retain the
marketwise. Customer demand through an appropriate marketing mix offered to a target
market. The market offering i.e. supply must meet customer demand, which are unmet needs
and desires.
Marketing
Marketing is a comprehensive term and it includes all resources and set of activities
necessary to direct and facilitate the flow of goods and services form the producer to the
consumer through the process of distribution. Businessmen regards marketing as
a management function to plan promote and deliver products to the clients or customers.
Human efforts, finance and management constitute the primary resources in marketing. We
have twin activities, which are most significant in marketing:
Matching the product with demand i.e. customer needs and desires or the target
market.
The transfer of ownership and possession at every stage in the flow of goods from the
primary producer to the ultimate consumer.
The American marketing association defines marketing as the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and organizational objectives.
MARKETING MANAGEMENT
Marketing management represents an important functional area of business management
efforts for the flow of goods and services from the producer to the consumers. It looks after
the marketing system of. It has to plan and develop the product on the basis of known
customer demand
Marketing management may be defined as, a process of management of marketing programs
for accomplishing organizational goals and objectives. Marketing management has to build
up appropriate marketing plan or marketing mix to fulfill the set goals of the business. It has
to formulate sound marketing policies and programs. It looks after their implementation and
control. It has to implement marketing strategies, programs and campaigns. It must evaluate
the effectiveness of each part of marketing mix and introduce necessary modifications to
remove discrepancies in the actual execution of plans, policies, strategies, procedures and
programs.
Marketing Mix
Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in
the target market. There are four elements or variables that make a marketing mix, they are:
1. Decisions on product or service
2. Decisions on promotion
 3. Decisions on price4. Decisions on distribution.
4. The four ingredients are closely interrelated. Under the systems approach the decision
in on area affects action in the other.
5. Marketing mix decisions constitute a large part of marketing management.
6. According to Philip Kotler the term marketing mix is, the set of controllable
variables that the firm can use to influence the buyers response.
7. In then simplest manner, the basic marketing mix is the blending of four inputs or sub
mixes, which form the core of the marketing system.
Product mix
Decision refers to decisions on product variety, quality, design, features, brand image,
packaging, sizes, services, warranties and returns.
Price mix
decision refers to decisions on the product list price, discounts, allowances, and payment
period and credit terms available.
Place mix
decision refers to decisions on the channels, coverage, assortments, locations ,inventory and
transport of the market offering.
Promotion mix
decisions refer to decisions on the products advertising ,sales promotion, sales force,
public relations and direct marketing .Together they form the four Ps of marketing.
Marketing Planning
A marketing plan lies down in writing the marketing objectives, programs and policies to be
adopted to achieve the set marketing objectives. Even before an integrated marketing plan is
prepared the company shall prepare functional plan for each component of marketing mix. To
have a sound marketing plan, every operation is to be examined and the problems are to be
identified. The overall marketing plan should be linked to the distribution channel of the
company to have effective marketing operations. The marketing planning covers the
preparation of functional plans, integration of this plan and the preparation of master
marketing plan to serve the objective of the organization Marketing planning is bound to get
a better hold of environmental factor.
Marketing Research
Marketing research is the systematic gathering, recording and analyzing of the data about
problems connected to the marketing of goods and services i.e. problems relating to product
,price, promotion and distribution of the 4ps of the marketing mix. Marketing research is
concerned with all those factors, which have a direct impact upon the marketing of products
and services. Marketing research has grown along with the expanded role of marketing as the
focus for the business decision-making.
NEED OF MARKETING RESEARCH
Marketing research is conducted for different purposes. They are:
To estimate the potential market for a new product
To know the reactions of consumers to a product already existing inthe market.
To find out the general marketing condition and tendencies
To know the types of consumer buying and their buying motives
To know the reactions of failure of a product already in the market.
To assess the strength and weakness of competitors.
Consumer
A person who purchase or has the capacity to purchase the goods of service often for sale by
the marketing firm in order to satisfy personal need and desires.
Perception
Perception is the sensing of stimuli external to the individual organism the act or process
of comprehending the world in which the individual exists. Perception has been defined by
social psychologists as the Complex process by which people select organize and interpret
sensory stimulation in to a meaning ful and coherent Picture of the work.
Attitude
Social psychologist defined attitude as an emotionalized predis position to respond positively
or negatively to an object. Predisposition can be thought of as categories of meaning stored in
the memory of a person and are based on previous experience. Predisposing the person
tohave in specific manner towards a certain objects in the environment.
Brand
A brand is a name, term, symbol, design or a combination of them which is intended to
identify the goods or services of one seller or group of sellers and to differentiate them from
those of competitors.
Consumer Behavior
The term consumer behavior can be defined, as, the behaviour that the consumer display in
searching for, purchasing, using and evaluating products, services and ideas, which they
expect, will satisfy their needs .The study of consumer behavior enables marketers to
understand and predict consumer behavior in the market place; it also promotes
understanding of the role that consumption plays in the lives of individuals. Consumer
behavior refers to all psychological social and physical behavior of potential consumers as
they become aware of, evaluate, purchase and consume and tell others about products and
services. It is the pattern of response of buyers to marketing offer of a firm. It refers to the
process as how consumers make their purchase decisions. It is concerned with what, why,
how much, when and from whom buyers make their purchases of goods and services.
Model of consumer behavior
The starting point of understanding consumer behavior is the stimulus-response model.
Marketing and environmental stimuli enter the buyers consciousness. The buyers
characteristics and decision process lead to certain purchase decisions. The marketers task is
to understand what happens in the buyers consciousness between the arrival of outside
stimuli and the buyers purchase decisions.
7Os of Consumer Behavior
Occupants . Are the one who are the creator of the market than an industry to its
vertical growth through their marketing efforts and creative marketing strategy by generating
need in consumers mind. Objects . Can be defined as goods or services offered to the market
which can be accepted in the market and sold. Objectives . Why does the market buy, its
creating and generating need in customers mind by analyzing consumer behavior and
influences or the driving force to buy. Organizations . Is the one which participates In the
market to satisfy consumers needs and wants by producing goods and services .Operations .
How does the market buy a particular goods and services that consists marketing mix and
strategies to serve the market. Occasions . Is one of the important factor in influencing
consumers purchasing behavior as there are some products which are bought occasionally

OBJECTIVE OF THE STUDY

To identify the various factor influencing the purchase decision of consumer when
buying a motorcycle and to determine the relative importance of these factors.
To find out the most effective media influencing the purchase behaviour of cotton
buyers.
To study the post purchase behavior of the owner of cotton industry
To determine the popularity of various brands available in the market

RESEARCH METHODOLOGY
This project is prepared with the help of theoretical knowledge as well as practical knowledge
of a crumb of advises suggestions from the concerned professors. As far
as practical is concerned, all the information about the companies information available onint
ernet. The theoretical pert taken from the various books magazines available on this subject.
And other recent happing in marketing is taken from magazines news paper. Overall this
mission has been completed with the combination of all those things it had been with the best
of my facts information

Research methodology refers to search for knowledge. Redman and 1ory define research as a
"systematized effort to gain new knowledge. research is an academic activity and such the
term should be used in technical sense. According to lifford &oody, research comprises
defining and redefining problem, formulating hypothesis or suggested solutions collecting,
organizing and evaluating data making deductions and research conclusions and at last
carefully testing the conclusions to determine whether they fit the formulating hypothesis.
Research is thus an original contribution to the existing stock of knowledge making for its
advertisement. 0t is pursuit of truth with the help of study, observation, comparison and
experiment. 0n short the search for knowledge through ob7ective and systematic method of
finding solution to problem is research

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the Research purpose with economy in
procedure.0n fact the Research design is the conceptual structure within which Research is
conducted it constitutes the blueprint for the collection measurement and analysis of data.0t
must be able to define clearly what they want to measure and must find adequate methods for
measuring it along with a clear cut definition of population wants to study. since the aim is to
obtain complete and accurate information in these studies, the procedure to be used must be
carefully planned. The research design must make enough provision for protection against
bias and must maximize reliability with due concern for the economical completion of the
search study descriptive research is adopted for this study. 0t includes surveys and fact
finding enquires of different kinds. The May or purpose of descriptive research is description
of the state affairs as it exists at present. The main characteristic of this method is that the
researcher has no control over the variables. (e can only report what has happened or what
happened .
SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from the sampling frame, it refers to
the technique or procedure the researcher would adopt in selecting some sampling
unitsfrom which interferences about the population is drawn. sampling type used is simple
Random sampling technique.

POPULATION AND SAMPLE SIZE

A decision has to be taken concerning sampling unit before selecting sample. The population
for this study includes the employees from) SREE LAKSHIMI ORGANIC COTTON
INDUSTRY AT KARUR. But employees were undertaken for the study

DATA COLLECTION

For achieving the specific objectives of this study, data were gathered from both primary and
secondary sources.'

PRIMARY SOURCES:

1. Direct conversation with the employees.

2. Employees opinion towards recruitment and selection procedure of the company.

SECONDARY SOURCES:

Various records of the company.

Different Types of system information.
DIFFERENT newsletters

QUESTIONNARIE DESIGN:

Structured Undisguised questionnaire was used in the study for the purpose of data collection
.Both close-end and open-end questions are used in this questionnaire because the statement
of alternatives in the close end questions allows the respondent in recalling and formulating
the answer and in the open end questions the respondents has got the freedom to express his
views in his own words pertaining to any aspect of the issue raise
LIMITATIONS:

The results could not be applied widely without making appropriate changes for
cultural and regional expectations since the study was conducted in limited area.
The period within which the study was completed is also very small .The accuracy of
the results is limited because of very small sample size.
The money and other resources at the disposal of the researcher were limited and a
detailed study was not possible.

SCOPE OF THE STUDY

The study could be used in designing the motorcycles to the expectations of

consumers.
The study could throw a light on the success of present day advertisements for cotton
industry.
The study could help to know how much money the consumers could spend for their
cotton industry.

QUESTIONNAIRES

PERSONAL DETAILS

1. Name

2. Age of the respondent

a) 20-30 years
b) 30-35 years
c) 35-40 years
d) Above 40 years

3. Gender of the respondent

a) Male
b) Female

4. Marital status of the respondent

a) Married
b) Unmarried
5. Educational qualification of the respondent

a) SSLC
b) HSC
c) Graduate
d) Post graduate

6. Monthly income of the respondent

a) Below 20000
b) 20000-30000
c) 30000-40000
d) Above 40000

7. Experience of the respondent

a) Below 2 years
b) 2-3 years
c) 3-4 years
d) Above 5 years

OPINION ABOUT THE BUYING THE PRODUCT IN CONSUMER

8. Are you a brand loyal customer?

a) Yes
b) No

9. Which attributes did attract you to purchase branded products?

a) Rank these attributes

b) in order of their importance to you
c) Brand Name
d) Transparent Price
e) Cleanliness
f) Easy Availability
g) Others

10. What was the reason for the delay between the purchase decision and the actual purchase?

a) Financial constraints
b) Waiting for more innovative product
c) Waiting for market response

11. What influenced you to buy the above stated brand(s)

a) Advertising
 b) Shop Display
c) Word of mouth
d) Family
e) Friend
f) Relatives
g) Attractive packaging
h) Any Other

SATISFACTION OF SELECTED BRAND

12. Dealer Influence of Brand name on purchasing decision

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

13.. Influence of Quality on Purchase Decision

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

14. Influence of Price on Purchase Decision

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

15.Influence of Product features on Purchase Decision

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

16.Influence of Family members on Purchase Decision

a) Strongly Agree
b) Agree
 c) Neutral
d) Disagree
e) Strongly disagree

17.Influence of Peer group on Purchase Decision

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

18. Influence of Advertisement on Purchase Decision

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

19. Will you like to switch your brand preference if you get some promotional scheme with
another brand?

a) Yes
b) No

20. Do you think branded products are better than unbranded products

a) Yes
b) No