A REPORT ON Childrens role in family purchasing behavior for FMCG and consumer durable goods (Quantitative techniques and

Research Methodology)

A Research project submitted in partial fulfillment of the requirements For the award of the degree of MASTERS OF BUSINESS ADMINISTRATION Submitted By: Harshal Kohadkar -32 (MBA: MKT-I, SEM-III) Under the Guidance of Prof. Vaishali Kamerkar IndSearch Institute Bavdhan Campus PUNE 411021 2010-2012

ACKNOWLEDGEMENT

We take great pleasure on completing Research on Childrens role in family purchasing behavior for FMCG and consumer durable goods (Quantitative techniques and Research Methodology). This project has taken us into the deep sea of Knowledge and experience and learning. This being a Group project we had a great chance to have interaction with people at different stages during the activity and by enabling us to develop effective communication skills. This project work has been the most practical and exciting part of our learning experience, which would be an asset for us for our future career. No system is created entirely by an individual. Many people have helped to create this system and each of their contribution has been valuable. Proper organization of concept and analysis of the system is due to keen interest and helping hand of my teachers and colleagues. At this stage we would like to thank all the people who have helped us in taking up and completing this project. We would first like to thank DR. ASHOK JOSHI {DIRECTOR, INDSEARCH} to provide us with opportunity to undertake a dissertation report like this and thus for giving us PRACTICAL EXPERIENCE. We would also like to thank our project guide Prof. Vaishali Kamerkar and who have been a great support in mentoring us throughout the project. And lastly but not the least we thank our team members without whom this project would not have been completed.

INDEX: TABLE OF CONTENTS SR.N O. 1 CONTENTS INTRODUCTION PAGE NO. 1

Literature Review

Research Plan

Questionnaire analysis for children Graphical analysis of questionnaire

6 7

Questionnaire for parents Graphical analysis of questionnaire

11 12 16 17 18

6 7 8

CONCLUSION BIBLIOGRAPHY Questionnaires

INTRODUCTION
Every product you buy, kids have their own opinion and choice. They are not only involved in buying their products but are also involved in the purchase of household items. They are well aware about the products in the market and what new products being launched in the market. Nearly all of the advertisements of products right from the small tooth paste to plasma TV, cars etc kids are involved .Hence, these advertisements attract children and in return they create demand for those products. They want to eat, drink, wear dresses, accessories, and play with toys which are e advertised. So, when they visit departmental stores, malls with their parents, its the kids who first pick up the products as per their fondness.

If we ask them they have the logic and justification for choosing that particular product. This is because they are very much influenced by the advertisements they watch on TVs. They can tell you the benefits of the products too. Because they go on face value of the advertisements. They do not understand the notion of the advertisements is to sell. Children enjoy watching TV especially advertisements. The colors, the jingles and everything related to advertisements attract them. So, the companies too have realized this fact and have started making advertisements keepings kids as their targets. Even for adult products they tie up kids in the advertisements to attract them.

With the concept of small nuclear families and both working parents kids role in decision making has increased all the more. The parents try to fulfill all the demands of their kids in order to keep them happy. Its also a fact that advertisements which involve kids are viewed more by children and

hence the demand for those products tends to raise high and concurrently the sales. So, the companies have started-cashing this fact and targeting kids. Hence, we have conducted a research to know about the taste of the kids and the role they play in their family buying decision. For this, we have conducted a research in the Pune city, and asked some questions personally to some kids and also to some parents regarding their part in purchasing decision especially for FMCG products and consumer durables.

LITERATURE REVIEW
India has a great population of children. Compared with the children in other countries, Indian children have considerable economic power and unique influence in urban areas. Now a days one child for one Couple concept is followed by families in metro cities in India. As the only child in the family, children receive most of the love and attention of both parents as well as from their grandparents. Children of this generation have more flexible income to spend and therefore exert a greater influence on the spending. The purpose of the paper is to report an empirical study of influence of Childers on buying behavior of consumer. A basic component of childrens learning about the marketplace is knowledge of sources of information about products. Parents as the primary socialization agent Parents are considered as the primary socialization agents for children and most aspects of parental influence continue well into adulthood. Consumer socialization is defined as processes by which young people acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace (Ward, 1974). Previous research into the acquisition of cognitive and behavioral patterns that constitute consumer socialization was based mainly on two theoretical frameworks, the cognitive developmental model and the social learning model (Moschis and Churchill, 1978).

The influencing Role of the child in family decision making: By:Lewis A.Berey&Richard.W.Pollay

According to them, there are main reasons why attention to the role of the child in the market is warranted: 1) The size of the child market is rapidly growing. 2) Obviously, children influence the family decision making. 3) Adult consumer behavior is the direct antecedent of child consumer behavior. Mc Neal. 4) Discuss childrens responses to different kinds of television programming and advertising appeals, both Wells & Losciuto. Stage theory of social development, John (1999) proposes a model of consumer Socialization in which children learning to be consumers are theorized to undergo a developmental process in three stages: from the perceptual stage through to the analytical stage, followed by the reflective stage as they mature into adult consumers. Survey Among all the social entities from which children might learn, parents appear to be the most instrumental in teaching their children consumer behavior. Parents play the most important role in providing children with information about schoolrelated products; while parents and TV play an almost equal role in childrens learning about personal care products. In terms of the relative importance of different information sources, television, parents, store visits and friends were ranked as the most important sources of information by urban children. Compared to other people, parents tend to be perceived as the most rational and trustworthy information source by children. Peers as socialization agent like parents, peers can affect child consumer socialization directly or indirectly. Peers appear to be an important socialization agent, contributing to the learning of the expressive elements of consumption. Mass media as socialization agent A huge amount of scholarly research has been published which focuses mainly on two dimensions of media influencing upon children, namely, advertising and editorial/programming content, which specifically intend to inform young people about products and encourage them to purchase (OGuinn and Shrum, 1997). Studies determines new product information sources for children shows that television is considered the most important information source for learning about new products; and the perceived importance of television as an information source of new products increases significantly with the age of children. Retailer and brand as socialization agent Retailers can be logically expected to be significant consumer Socialization agents due to the regular and frequent store visits by children and the interactions between the two parties. Brands are another potentially strong influence on

childrens marketplace behavior. Its not only advertisements but also other marketing strategy like packaging too influences kids buying behavior. Like colorful packaging, attractive shapes like heart shapes packaging or packaging with cartoon characters, kids logo attracts them and forms the part of their buying behavior and point of purchase( POP).

RESEARCH PLAN
Objectives of Research: 1) Is Children s role, in family purchasing is more important now days? 2) How much does the children, of the age group of 10 -13 contributes, in their family purchasing decision? 3) Which sector gets more advantage, in terms of increase in sales, among FMCG and consumer durables due to childrens? DATA SOURCES: Primary data sources: 1) 2) Survey in the shopping malls. Personal interview with parents and childrens of 10-13 of ages.

SECONDARY DATA SOURCE: 1) Research journals:

consumer behavior 2) Internet:

Bibliography: globianz.appspot.com/vol2_i2/Paper_22.pdf www.scribd.com/doc/36632325/pester-power-research-pager-cachedResearch Type: Descriptive RESEARCH INSTRUMENTS: Questionnaires for Parents and Children.

SAMPLING PLAN: SAMPLING TYPE: (Demographic) survey done on the children of the age group of 10-13 and parents from middle class family. SAMPLING SIZE: 50 questionnaires (25 for parents and 25 for children) a) SAMPLING PROCESS: Probability: Simple random technique.

CONTACT METHOD: Personal.

HYPOTHESIS: Children role in family purchasing behavior is more in FMCG than in consumer durable products.

Questionnaire analysis for Children:

Graphical analysis:

Questionnaire analysis for Parents:

Graphical analysis:

CONCLUSION

From the question number 10 and 11 of the questionnaire of children we can say that 85% of children believes that sometimes their parents buy the product on their demand and 90% children believes that they need to ask to their parents only two times for any product they demand to their parents, which supports our 1st objective i.e. now a days childrens role in family purchasing behavior is more important. 2) We were having our sample size of 50 questionnaire, in which 25 question were asked to children and 25 questions were asked to parents, we have interacted to 10 to 15 of age group of children, among which, we came to an conclusion that, the age group of 1013 contributes more in their family purchasing decision. 3) From the question numbers 3, 5, 7&9 of the questionnaire for children and question number 4&5. This says that, between FMCG and consumer durables sector, FMCG sector gets more advantage in terms of increase in sales, due to children. Hence, our hypothesis is been proved, HYPOTHESIS: Children role in family purchasing behavior is more in FMCG than in consumer durable products.
1)

BIBLIOGRAPHY

a. Research Methodology- C.R. Kothari b. Statistical and quantitative methods- Ranjeet Chitale c. www.scribd.com/doc/36632325/pester-power-researchpager-cachedd. www.globianz.appspot.com/vol2_i2/Paper_22.pdf

Questionnaire for Children: NAME: ________________________________________ AGE: ______ GENDER:

BOY GIRL

1. If your go for shopping with your parents, where will you go to buy food?
Vishal Mega m art Reliance Retial BigBazaar

Any Other

2. Who make this choice?

Father Mother Me & siblings

3. Given the food products that you see when you visit to any retail outlet with your parents which products would you prefer or you wish to buy first always?
Food Any other Clothes Toys Books

4. How did you learn about the products you brought? (From where)
T.V advertisem ent Display in stores Parents Friends

5. Do you have favorite brands for certain kinds of products? If yes, then for which category?
food products cosm etics

stationary

none

6. What is your favorite commercial ad on the television? _____________________________________________________________ ________________

7. U would like to go for shopping..? When Mamma goes to buy...

food clothes T.V Other

8. You like the ad including yours favorite,

cartoon characters sports person m ovie star

9. Which product ad makes more impact on your purchasing decision? Ad for FMCG products (food stuffs, daily need products etc.) Ad for consumer durable products (washing machine, T.V, computer/Laptops, cell phones) Never noticed 10. Do your parents buy the product you demand for?
always som etim es

never

11. How often do you need to ask to your parents for the product?

once
More than thrice

twice no idea

thrice

Questionnaire for Parents: Questionnaire Name: _____________________________________________________________ Occupation: _______________ _______________

No. of children in the family: 1 m th n3 ore a Ages of children: 1st ____yr 2nd ____yr 3rd ____yr 4th ____yr. 2 3

1. Which retail outlet do you often visit with your child the most?
B ba a ig za r Vis l m am rt ha eg a S pencers Other

2. How often do you go for shopping with your child?

Once inaw eek once inm onth

q terly ua

never

3. Do you think children become adamant on purchase of a product or service after watching the ad on TV or product in the store?
s etim om es m t of thetim os es

a ys lwa

never noticed

4. Do you buy everything that your child demands for, after seeing it in the market? If yes then what type of products?
F GP MC roduc ts c u erd b ons m ura les

both

none of these

5. Is there anything that you have purchased for your child, recently, after seeing it on television ad or by seeing it in the market? Is it a..
F Gp MC rodu t c C NS O UME P O R R D

both

none of these

6. What do you think attracts a child most towards a product or service?

T av he d ertis ent em

W of m ord outh

friends

O er th

7. What does your child watch most of the time on TV?

C rtoons a Movies S ls eria O thers

8. Is your child brand conscious?

s etim om es m t of the tim os es

always

no idea 9. When there is last minute change in plans, is the child more often Perfectly fine with it A bit unsettled by the change Dont know 10. is your child, Always wish or force you to buy the product which his/her friends parents brought for them Wish about the product as per his/her requirements Dont know

11. Which consumer durable product you have purchased recently, as per his/her wishes?
T .V C puter om w shingm c a a hine other F e ridg

12. Which FMCG product your kids ask you to buy most of the times? food products toys stationary others

13. How often your children wish to buy these products? everyday more than thric once in a week twice in a week thrice in a week

Singnature: