1

A

PROJECT REPORT

ON

“A STUDY ON CONSUMER BUYING BEHAVIOUR

TOWARDS RESIDENTIAL PROPERTIES IN PUNE CITY”

FOR

“KUMAR BUILDERS”

BY

GUNDYAL GOPAL NAGESH

(Batch 2006-08)

UNDER THE GUIDENCE OF

PROF. MAHESH GADEKAR

SUBMITTED TO

“UNIVERSITY OF PUNE”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF THE DEGREE OF MASTERS OF BUSINESS

ADMINISTRATION (MBA)

THROUGH

VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE-48.

2

A

PROJECT REPORT

ON

“A STUDY ON CONSUMER BUYING BEHAVIOUR

TOWARDS RESIDENTIAL PROPERTIES IN PUNE CITY”

FOR

“KUMAR BUILDERS”

BY

GUNDYAL GOPAL NAGESH

(Batch 2006-08)

UNDER THE GUIDENCE OF

PROF. MAHESH GADEKAR

SUBMITTED TO

“UNIVERSITY OF PUNE”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF THE DEGREE OF MASTERS OF BUSINESS

ADMINISTRATION (MBA)

THROUGH

VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE-48.

3

Acknowledgement

Before we get into the thick of the things I would like to add a few heartfelt

words for the people who were the part of this project in numerous ways people

who gave unending support right from the stage the basic idea was conceived.

This dissertation from a part of my two year M.B.A programme and is in

partial fulfillment of the requirement of their in reference.

I acknowledge with sense of reverence my gratitude towards the

management of Kumar Builders. For providing me an opportunity to work as a

summer trainee in their esteem organization.

I want to give special the HR Manager and other staff of the company who

helped me to complete the project. I also thank my Director Dr. Sharad L. Joshi

and my internal guide Prof. Mahesh Gadekar for guiding me from time to time.

4

CONTENTS

Sr.No. Topic Page. No.

1 Executive Summary of Project 01-02

2 Objective Of The Study 03-06

2.1 Objectives 03

2.2 Scope Of The Study 04

2.3 Limitations 05

2.4 Need & Significance Of The Study 06

3 Company Profile 07-18

3.1 Introduction To Company 07

3.2 Branches & Offices 12

3.3 Achievements & Awards 13

3.4 Products Range & Variety 14

3.5 Organisation Staff & Designation 16

3.6 List of Competitors 18

4 Theoretical Background 19-32

5 Research Methodology 33-35

6 Data Analysis and Interpretation 36-44

7 Findings 45-46

8 Conclusion 47

9 Recommendations 48

Annexure

Bibliography

49-51

52

5

Chapter 1

Executive Summary

6

Chapter 2

Objectives of the Study

7

Chapter 3

Company Profile

8

Chapter 4

Theoretical Background

9

Chapter 5

Research Methodology

10

Chapter 6

Data Analysis and

Interpretation

11

Chapter 7

Findings

12

Chapter 8

Conclusion

13

Chapter 9

Recommendations

14

Annexure

15

Bibliography

16

1. Executive Summary

This study is related to construction industry in India. Heightened realization

on the part of all stakeholders that infrastructure would play a key role towards

pushing India’s GDP to the desirable 8 percent mark has come as a boon for India’s

construction industry.

The industry is riding a growth wave, which is evident from the financial

results posted by some of the leading contractors. However, the industry is faced with

certain challenges. The need to be price competitive, adherence to safety, quality

consciousness, adapting to technological changes, developing and using new

construction materials and having an adequately trained manpower are issues that

industry must look into and address.

"The construction sector, therefore, has to gear up fully to take on the ever-

increasing challenge."

This study was basically concern with consumer buying behaviour towards

residential properties in Pune city with reference to Kumar Builders Constructions.

The basic objective behind carrying this study was to study the property purchasing

behaviour i.e. (Residential) of different types of customer in different area in Pune

city, to study the various factors affecting the customer-buying pattern especially in

case of residential properties and to search out new prospects for Kumar Builders

Construction.

After completing this study it was found that maximum respondents are

having the resident on rental, it was also found that price & location is major factor

which are consider by the customer at the time of purchasing the residential property.

The ‘quality’ & ‘facilities’ are most considerable parameters at the time of selecting

17

residential property. It was also found that demand of the 2 & 3 BHK flats were more

to comparing other types of residential properties.

After going through this study I would recommend Kumar Builders that they

should try to decrease Five star amenities with a view to cut down the property prices

and there by attracting the middle class, and also actively participate and organize

property exhibition, trade shows, hoardings, etc. to create awareness in the market.

They should reduce the maintenance charges and should concentrate on CRM

activities, such as loyalty to create strong good will and gain new customer.

18

2.1 OBJECTIVES

� To study the property purchasing behaviour i.e. (Residential) of different types

of customer in different area in Pune city.

� To study the various factors affecting the customer-buying pattern especially

in case of Residential properties.

� To find the expectations & needs of customers from Kumar Builders

Constructions.

� To find the opinion of the customers with regard to various schemes available

or schemes offered by Kumar Builders constructions.

� To find out the near competitors for Kumar Builders Constructions.

� To find out the period in which the customers are more willing to purchase

Residential properties.

� To search out new prospects for Kumar Builders Construction.

19

2.2 SCOPE

This study will be beneficial to Kumar Builders Constructions to know about

customers buying behaviour towards Residential properties in Pune city. The

company can come to know various factors affecting the customers’ properties buying

behaviour.

Company comes to know about customers expectations & need for future

properties purchases. The sample size taken for this project is 100 Respondents.

Hence, this market study will provide information to Company, and

Customers.

20

2.3 LIMITATIONS

1) The survey was restricted to selected areas in Pune City only.

2) The time duration of this survey was 50 days only.

3) Rainy season was main hurdle for this survey.

4) The response from the respondents was fair enough but not up to the mark or

good enough.

5) This project was only restricted to the residential properties of KBC & not

commercials & others.

6) The survey area were too far as the city is big enough which caused many

transportation problem.

21

2.4 NEED & SIGNIFICANCE

The study conducted is Pune city reflects the market position of Kumar

Builders Residential Properties. It gives us the details of various factors of buying

behavior of customers. The study enables the company to prepare marketing strategy

and plan accordingly, so as to capture a greater market share& the services provided

by the company. It foresight the future requirement of the market and thus helps the

manufacturer to face the future completion in a fully prepared way.

Thus it helps the company to have a good brand image and stepping toward

success.

22

3.1 INTRODUCTION TO COMPANY

"Kumar Group" established on 15th August, 1966 by the Late Shri. K. H.

Oswal, a first generation entrepreneur, with a vision to enter into a core sector

business, housing construction, which had an immense potential was the obvious

choice at that time.

In more than last 40 years, the Organization has grown from strength to

strength striving hard to transform that vision into reality. Today the company's name

has become synonymous with the quality Construction business in Pune.

An ISO 9001 : 2000 & 14001:2004 Company DET NORSKE VERITAS

QUALITY SYSTEM CERTIFICATE (DNV) has awarded an ISO 9001: 2000

Certificate for Quality Management System Standards maintained by the company for

23

design, development, construction & marketing of Residential and Commercial

complexes.

Kumar Builders has become synonymous with quality construction in Pune.

The company is known for maintaining international quality construction standards

and also for its ethics, transparency, reliability, professionalism and reflexivity.

The Kumar Builders Institution boasts of a concrete record of more than 100

completed projects, over 100 Lakhs Sq.Ft. completed construction and 13,000

satisfied customers. The 30 ongoing residential and commercial projects and

successful diversification into corporate ventures bear testimony to the success story

of Kumar Builders.

Quality Policy:

Kumar Builders are committed to design, develop, construct and market

Residential, Commercial complexes and all such types of shelters, which shall meet

customer need consistently. We shall further strive to enhance the interest of our

partners, employees, suppliers & society.

Quality Objectives:

1. Demonstrate commitment and compliance to the Quality Management

System.

2. Improve the competence of employees by continuous training in the areas in

which they work.

3. To be a market leader by enhancing the customer satisfaction.

4. To create a customer focused organization.

Aims:

"Quality is primary" to Kumar Builders. All systems and procedures are

formulated to achieve the "Quality Objective". Total quality principles are adopted in

24

selection of the material, implementation of the project, and even after the project is

handed over. The Group is in the process of implementing 'Total Quality

Management' in all the aspects of its business.

Values:

� Honor and respect those who are experts in their fields, those who are wise,

knowledgeable and insightful. Project the eminent & nurture the learned.

� Be humble and grateful for any gesture, however small

� With plentiful resources, guard against mismanagement and waste.

� Do not use the force but work through. Conciliation, appreciation and

inspiration.

� Maintain your position through growth and expansion, which requires effort.

� Practice five strategies of action: Alliance, Patience, Optimum Utilization of

Resources, Nurturing of human assets and Aggressiveness.

� Plan for the acquisition of wealth with the eyes of crane, employ a variety of

postures like peacock, strike with the ferocity of a boar and display the velour

of a lion.

� Offer your gratitude to God.

Human Resources:

Kumar Builders is professionally managed and a significant force in an

intensely competitive market. This is because we treat our employees with respect and

dignity. We believe the growth of the Group is dependant on the growth of our

people. They find an independence to chart their own course, an openness to new

ideas, efficiency in implementation and an enormous professional satisfaction. We

have men of mission who can face challenging opportunities with finesse and

25

purpose. The open door policy and informal and vibrant atmosphere is an

achievement in itself.

Technology:

In the context of technological advances, the Kumar Builders is in the

forefront in implementing State-Of-The-Art Technology with the latest systems /

Networking techniques. These assists management to access information and establish

proper checks and controls over the business transactions. Continuous technological

up gradation helps the Group keep up with time.

Social Obligation:

The group believes in repaying its debt to society and does so in many

different ways. After realizing the grave need for shelter it has initiated the task of

development of slums. Various projects for beautification, Water Fountains, Schools,

and Developments of Gardens, large roadside plantations, drinking water and public

toilets facilities have been taken up. On a more macro level, the group has contributed

its mite towards promoting sports development, besides lending a helping hand to

many charitable institutions.

� Slum development

� Drinking Water program

� Helping in building better public toilet facility

� Environment cleanliness and beautification

� Creating gardens

� Sports

� Schools and Hospitals

� Tree Plantations.

26

After Sales:

Kumar Builders strive hard and are committed to provide all such type of

services related to pre & post booking activities in order to enhance customer

satisfaction.

We assist all the esteemed customers to avail loan, help them in all type of

correspondences required an ensure them to handover timely possession.

It is our endeavor to sort out all the complaints / queries before and after sales

to achieve maximum customer satisfaction.

Financial Assistance:

• ICICI Bank

• Standard Charted Bank

27

3.2 BRANCHES & OFFICES

Pune Head Office:

Kumar Capital, 2nd Floor,

2413,East Street, Camp,

Pune, India - 411 001.

Tel. : +91 (020) 40006000 /1/2/3, 26350065.

Fax : +91 (020) 26330584.

E-mail : sales@kumarbuilders.com

Mumbai Branch Office:

Office No. 7, 1st Floor,

Ali Chambers, Nagindas Master Road

Fort, Mumbai - 400 023

Tel. : +91 (022) 66378480, 66378481.

Fax : +91 (022) 66378482.

E-mail : kumartech@vsnl.net

Bangalaru Branch Office:

10/12, Palace Road,

13th Main, Vasant Nagar

Bangalaru - 560 052

Tel. : +91 (080) 2235 6822.

Telefax : +91 (080) 2235 6855.

E-mail : salesblre@kumarbuilders.com

28

3.3 Achievements & Awards

• Kumar Builders receives srishti green cube award from commerce minister

Kamal Nath in Delhi.The Srishti Green Cube Awards was instituted for “Good

Green Governance (G3)”.

• Kumar Builders were the first Construction Company in India to obtain an

ISO 14001:2004 Environment Certification.

• Kumar Builders bagged the award on the basis of the social activities and their

concern for preservation of the environment, which is seen through the

implementation of extensive programmes in the following major areas,

namely:

� Solid Waste Management

� Rainwater Harvesting

� Solar Energy

� Reduction of Dust, Noise And Water Pollution And

� Expanding the Green Belt.

29

3.4 PRODUCTS RANGE & VARIETY

Residential Projects

Commercial Projects

Multiplex / Retail Projects

IT / BTS Projects

Investment Opportunities

Future Projects

Completed Projects

30

Kumars Residential Projects

Kumar Meadows Kumar Kruti Buena Vista

Windsor Park Kumar Puram Sophronia

Kumar City Laxmi Vilas Hillscape

The Orion Residency Kumar Surkasha Kumar Dhruv

Kumar Sahawas Kubera Sankul Kumar Shantiniketan

Kubera Vihar Kumar Sansar i-Life

31

3.5 ORGANISATION STAFF & DESIGNATION

No. Name Designation Department

Lalitkumar Jain Chairman & MD Kruti Jain Executive Director

1 Sameer Palshikar Media Manager Advertising

2 Yogesh Bhave H.O.D. - Accounts

& Finance Accounts &

Finance

3 Girish Mande H.O.D. Banking Banking & Payments

4 B.R. Gulati H.O.D. –

Administration Administration

5 Reena Manjrekar H.O.D. - C.R.O. C.R.O.

6 Surender Khunekari Sr. Executive - EDP E.D.P.

7 Sheetal Joshi Company Secretory

C.S.

8 K.B. Shivankhede Chief Technical

Coordinator Construction /

Technical

9 S. Premnath GM - Technical Construction /

Technical

10 Anil Nemavarkar Project Co-ordinator Construction /

Technical

11 Ritesh Oswal H.O.D. –

Corporate Marketing Corporate Sales &

Mkt.

12 Vinay Nimbalkar H.O.D.

Electrical Electrical

13 D.V. Godbole H.O.D. -

Horticulture Horticulture /

Landscape

14 Chandrahas Bollabattin Sr. Executive - HR H.R.

15 RAHUL BOKIL Management

Representative I.S.O.

16 Viresh Parekh Coordinator Land / Legal

17 B.H. Tingre H.O.D. - Legal Legal

18 Neelima Gohad H.O.D. - Legal Legal

19 Brig. Ramesh Hasija H.O.D. -

Maintenance Maintenance

20 Vijay Oswal G.M. - Operations Operations

32

21 Anil Suratwala G.M. –

Township Developments

Project Planning & Township

Developments

22 D.S. Thorat H.O.D. –

Public Relations Public Relations

23 Rupam Singh Sr. Manager –

Public Relations Public Relations

24 Abhay Deshpande H.O.D. - Purchase Purchase

25 Niranjan Bhatkulkar H.O.D. –

Quantity Analysis Quantity Analysis

26 Ravindra D. Patil H.O.D. –

Quality Assurance Qyality Assurance

27 Rajendra Bhagat Sales Manager Sales & Mkt.

28 Anil Deshpande Security Incharge Security

29 Mohan Tak C.E.O. - CLUB Symphony /

Conniseur Club

30 Rajashree Swami System &

Procedure Manager Systems & Procedure

33

3.6 LIST OF COMPETITORS

Mantri Builders

Fergusson College Road

(Mantri House) Shop # 929,

Deccan Gymkhana,

Pune 411004Phone: (20) 25661040

Bramha Builders

205/251, M.G. Road

Parvati,

Pune 411009

Phone: (20) 26330052

Panchshil Real Estate Consultant

Bund Garden Road

(Konar Estate)

Pune H.O.,

Pune 411001Phone: (20) 26127366

Rohan Builders (I) Private Limited

813, Bhandarkar Road

(Pradeep Chambers)

Deccan Gymkhana,

Pune 411004Phone: (20) 25674413

Paranjape Schemes Constructions

Anand Colony, Erandwane

(PSC House)

Deccan Gymkhana,

Pune 411004Phone: (20) 30223344

Nyati Builders Private Limited

Kalyani Nagar

(Nyati Commerce House)

Yerwada,

Pune 411006Phone: (20) 26686123

D.S. Kulkarni Developers Limited

1187/60, Jangali Maharaj Road

(DSK House)

Shivajinagar H.O.,

Pune 411005Phone: (20) 56047100

K Raheja Private Ltd.,

Survey No. 144 & 145,

Samrat Ashok Path, Off. Airport Road,

Yerwada, Pune – 411 006

Tel: +91 020 26112859

34

4. THEORETICAL BACKGROUND OF BUYING BEHAVIORS

� Definition of Buying Behaviour:

Buying Behavior is the decision processes and acts of people involved in

buying and using products.

The dynamic interaction of affect and cognition, behaviour, and the

environment by which human beings conduct the exchange aspects of their lives

� Meaning of Consumer Behaviour:

Consumer behaviour can be looked upon as a study of how individuals make

decisions on how to spend their available resources like time, money and effort on

various consumption-related items.

Human beings are greatly influenced in their buying actions by various factors

like opinions of others, marketing stimuli like product, advertising, packaging and

product appearance

� Scope of Consumer Buying Behaviour

• Why do consumers buy a particular product/service brand?

• How do they buy them?

• Where do they buy these products?

• How often do they buy them?

• When do they buy them?

• What factors influence the decision making process of the consumers?

• The buying process involves the user, influencer, decider, and the buyer

• The process is greatly affected by selective information received by a

consumer

35

• It is very important to understand what and how much information is

required by the consumer to help him evaluate the products and services

• As such understanding why a consumer finally buys a product is very

complex

� Importance Of Consumer Behaviour

• Ever increasing intensity of competition

• More aggressive competitors emerging with greater frequency

• Changing bases of competition

• Geographic sources of competition are becoming wider

• Niche attacks are becoming frequent

• Pace of innovation is rapid

• Price competition becoming more aggressive

• Product differentiation is declining

� Why Focus On Consumer Behaviour

• Profit making through customer satisfaction

• Dramatic increase in the quality of consumer and marketing research

• Development of consumer behaviour research

• Shifting from the mass marketing concept to individual marketing concept.

� Characteristics Of Consumer Behaviour

Consumer behaviour is dynamic:

• The feelings, thinking, perceptions, and actions of the consumers and the

society at large keep changing frequently.

• Strategies that work today may not work tomorrow.

• The product life cycles are becoming shorter.

� Benefits of Consumer Behaviour

36

• Stay loyal for a long time

• Buy new products and upgrade existing ones

• Talk favourably about the firm and its products

• Pay less attention to competing brands

• Offer product/service ideas to the firm

• Are cost effective

� Approaches To Consumer Behaviour

Managerial:

• Micro and cognitive in nature

• Emphasizes on attitudes, perceptions, lifestyle and demographic

characteristics

• Environmental effects-reference groups, family and culture

• Risk of this approach is overemphasis on rationality of a consumer and

overlooks

• the dynamics of environmental factors independent of the individual

• Tends to focus more on purchase than on consumption

Holistic:

• More macro in approach

• Tends to focus more on consumption experience than on purchasing

process

• Stresses the broader, culturally derived context of consumption

• Emphasizes on environmental context of the consumer’s actions

• This approach may not be actionable and all decisions are not rational.

� Need To Understand Consumer Buying Behaviour:

• Why consumers make the purchases that they make?

37

• What factors influence consumer purchases?

• The changing factors in our society.

• Consumer Buying Behavior refers to the buying behavior of the ultimate

consumer. A firm needs to analyze buying behavior for:

� Buyers reactions to a firms marketing strategy has a great impact

on the firms success.

� The marketing concept stresses that a firm should create a

Marketing Mix (MM) that satisfies (gives utility to) customers,

therefore need to analyze the what, where, when and how

consumers buy.

� Marketers can better predict how consumers will respond to

marketing strategies.

� 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)--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--

38

� Internal search, memory.

� External search if you need more information. Friends and relatives

(word of mouth). Marketer dominated sources; comparison

shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the

evoked set. Hungry, want to go out and eat, evoked set is

� Chinese food

� Indian food

� Burger king

� Klondike Kates 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.

If not satisfied with your choice then return 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.

39

After eating an indian meal, may think that really you wanted a chinese meal

instead.

� Types Of Consumer Buying Behaviour:

Types of consumer buying behavior are determined by:

• Level of Involvement in purchase decision. Importance and intensity of

interest in a product in a particular situation.

• Buyers level of involvement determines why he/she is motivated to seek

information about a certain products and brands but virtually ignores

others.

High involvement purchases--Honda Motorbike, high priced goods, products visible

to others, and the higher the risk the higher the involvement. Types of risk:

• Personal risk

• Social risk

• Economic risk

The four type of consumer buying behavior are:

� Routine Response/Programmed Behavior--buying low involvement

frequently purchased low cost items; need very little search and decision

effort; purchased almost automatically. Examples include soft drinks,

snack foods, milk etc.

� Limited Decision Making--buying product occasionally. When you need

to obtain information about unfamiliar brand in a familiar product

category, perhaps. Requires a moderate amount of time for information

gathering. Examples include Clothes--know product class but not the

brand.

40

� Extensive Decision Making/Complex high involvement, unfamiliar,

expensive and/or infrequently bought products. High degree of

economic/performance/psychological risk. Examples include cars, homes,

computers, education. Spend a lot of time seeking information and

deciding.

Information from the companies MM; friends and relatives, store

personnel etc. Go through all six stages of the buying process.

� Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behavior.

Product can shift from one category to the next.

For example:

Going out for dinner for one person may be extensive decision making (for someone

that does not go out often at all), but limited decision making for someone else. The

reason for the dinner, whether it is an anniversary celebration, or a meal with a couple

of friends will also determine the extent of the decision making.

� Categories That Effect The Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following

three factors:

1. Personal

2. Psychological

3. Social

The marketer must be aware of these factors in order to develop an appropriate MM

for its target market.

1. Personal

41

Unique to a particular person. Demographic Factors. Sex, Race, Age etc.

Who in the family is responsible for the decision making. Young people purchase

things for different reasons than older people.

2. Psychological factors

Psychological factors include:

• Motives--

A motive is an internal energizing force that orients a person's

activities toward satisfying a need or achieving a goal.

Actions are effected by a set of motives, not just one. If marketers can identify

motives then they can better develop a marketing mix.

MASLOW hierarchy of needs!!

o Physiological

o Safety

o Love and Belonging

o Esteem

o Self Actualization

Need to determine what level of the hierarchy the consumers are at to

determine what motivates their purchases.

• Perception--

What do you see? Perception is the process of selecting, organizing

and interpreting information inputs to produce meaning. IE we chose what

info we pay attention to, organize it and interpret it.

Information inputs are the sensations received through sight, taste, hearing,

smell and touch.

42

Selective Exposure-select inputs to be exposed to our awareness. More likely

if it is linked to an event, satisfies current needs, intensity of input changes.

Selective Distortion-Changing/twisting current received information,

inconsistent with beliefs.

Advertisers that use comparative advertisements, have to be very careful that

consumers do not distort the facts and perceive that the advertisement was for

the competitor.

Selective Retention-Remember inputs that support beliefs, forgets those that

don't.

• Ability and Knowledge--

Need to understand individual’s capacity to learn. Learning, changes in

a person's behavior caused by information and experience. Therefore to

change consumers' behavior about your product, need to give them new

information re: product...free sample etc.

Knowledge is the familiarity with the product and expertise.

Inexperience buyers often use prices as an indicator of quality more than those

who have knowledge of a product.

Learning is the process through which a relatively permanent change in

behavior results from the consequences of past behavior.

• Attitudes--

Knowledge and positive and negative feelings about an object or

activity-maybe tangible or intangible, living or non- living.....Drive

perceptions Individual learns attitudes through experience and interaction with

other people.

43

Consumer attitudes toward a firm and its products greatly influence the

success or failure of the firm's marketing strategy.

Attitudes and attitude change are influenced by consumers personality

and lifestyle.

Consumers screen information that conflicts with their attitudes.

Distort information to make it consistent and selectively retain information

that reinforces our attitudes. IE brand loyalty.

There is a difference between attitude and intention to buy (ability to

buy).

• Personality--

All the internal traits and behaviors that make a person unique,

uniqueness arrives from a person's heredity and personal experience.

Examples include:

� Work holism

� Compulsiveness

� Self confidence

� Friendliness

� Adaptability

� Ambitiousness

� Dogmatism

� Authoritarianism

� Introversion

� Extroversion

� Aggressiveness

� Competitiveness.

44

Traits effect the way people behave. Marketers try to match the store image to

the perceived image of their customers.

There is a weak association between personality and Buying Behavior; this

may be due to unreliable measures.

• Lifestyles--

Recent US trends in lifestyles are a shift towards personal

independence and individualism and a preference for a healthy, natural

lifestyle. Lifestyles are the consistent patterns people follow in their lives.

3. Social Factors

Consumer wants, learning, motives etc. are influenced by opinion leaders,

person's family, reference groups, social class and culture.

• Opinion leaders--

Spokespeople etc. Marketers try to attract opinion leaders...they actually use (p

y) spokespeople to market their products. Michael Jordon (Nike, McDonalds,

Gatorade etc.) Can be risky...Michael Jackson...OJ Simpson...Chevy Chase

• Roles and Family Influences--

Role...things you should do based on the expectations of you from your

position within a group.

People have many roles. Husband, father, employer/ee. Individuals

role are continuing to change therefore marketers must continue to update

information.

Family is the most basic group a person belongs to. Marketers must

understand:

� that many family decisions are made by the family unit

45

� consumer behavior starts in the family unit

� family roles and preferences are the model for children's future family

(can reject/alter/etc)

� family buying decisions are a mixture of family interactions and

individual decision making

� Family acts an interpreter of social and cultural values for the

individual.

The Family life cycle: families go through stages; each stage creates different

consumer demands:

� Bachelor stage.

� newly married, young, no children...me

� full nest I, youngest child under 6

� full nest II, youngest child 6 or over

� full nest III, older married couples with dependant children

� empty nest I, older married couples with no children living with them,

head in labor force

� empty nest II, older married couples, no children living at home, head

retired

� solitary survivor, in labor force

� solitary survivor, retired

� Modernized life cycle includes divorced and no children.

• Reference Groups--

Individual identifies with the group to the extent that he takes on many

of the values, attitudes or behaviors of the group members.

46

Families, friends, sororities, civic and professional organizations. Any group

that has a positive or negative influence on a persons attitude and behavior.

Membership groups (belong to)

Affinity marketing is focused on the desires of consumers that belong to

reference groups. Marketers get the groups to approve the product and

communicate that approval to its members. Credit Cards etc.

Aspiration groups (want to belong to)

Disassociate groups (do not want to belong to)

• Social Class—

An open group of individuals who have similar social rank. US is not a

classless society. US criteria; occupation, education, income, wealth, race,

ethnic groups and possessions.

Social class influences many aspects of our lives. IE upper middle class

Americans prefer luxury cars Mercedes.

� Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic

names.

� Lower-upper class, 1.2%, newer social elite, from current professionals

and corporate elite

� Upper-middle class, 12.5%, college graduates, managers and

professionals

� Middle Americans-middle class, 32%, average pay white collar

workers and blue collar friends

� Working class, 38%, average pay blue collar workers

� Lower Americans-lower class, 9%, working, not on welfare

� Lower-lower class, 7%, on welfare

47

Social class determines to some extent, the types, quality, quantity of products that a

person buys or uses. Lower class people tend to stay close to home when shopping, do

not engage in much pre-purchase information gathering. Stores project definite class

images. Family, reference groups and social classes are all social influences on

consumer behavior. All operate within a larger culture.

• Culture and Sub-culture--

Culture refers to the set of values, ideas, and attitudes that are accepted

by a homogenous group of people and transmitted to the next generation.

Culture also determines what is acceptable with product advertising. Culture

determines what people wear, eat, reside and travel. Cultural values in the US

are good health, education, individualism and freedom. In american culture

time scarcity is a growing problem. IE change in meals. Big impact on

international marketing.

48

5. RESEARCH METHODOLOGY

What is Research?

The following eight characteristics of research will serve us well in defining meaning

of research.

Eight characteristics of research:

1. Research originates with a question or a problem.

2. Research requires a clear articulation of a goal.

3. Research follows a specific plan of procedure.

4. Research usually divides the principal problem into more manageable sub-

problems.

5. Research is guided by the specific research problem, question, or hypothesis.

6. Research accepts certain critical assumptions. These assumptions are

underlying theories or ideas about how the world works.

7. Research requires the collection and interpretation of data in attempting to

resolve the problem that initiated the research.

8. Research is, by its nature, cyclical; or more exactly, spiral or helical.

� This project is concern with Survey Research:

Survey research is one of the most important areas of measurement in applied

social research. The broad area of survey research encompasses any measurement

procedures that involve asking questions of respondents. A "survey" can be anything

form a short paper-and-pencil feedback form to an intensive one-on-one in-depth

interview.

49

� Survey Method: -

Survey research method is technique of investigation by direct

observation/respondent or by systematic gathering of data from population.

Advantages of Survey Method:-

1) Inferences based on facts.

2) Personal Contracts with respondents.

3) Instrument of social development.

4) Greater objectivity.

5) More reliability of the data.

� Questionnaire: -

Questionnaire is used to collect information from respondent. In this study

questionnaire content both close ended & open-ended questionnaire.

Sample size is100 respondents which are further calculated in percentage and

shown graphically in various charts.

Respondents as sample unit.

� Non-Random Judgment Sampling

Non-probability sampling is that procedure which does not afford any basis

for estimating the probability that each item in the population has of being included in

the sample.

50

� For this project Primary as well as Secondary data is use.

� Primary Data:

Information collected for first time is called as Primary Data & is in the

original character. Primary data collected either through observation or through direct

communication with respondents in one form or another or through personal

interviews.

Primary data is collected through the survey method with help of

questionnaire.

� Secondary Data:

Secondary data means data which already been collected and analyzed by someone

else. Secondary data collected from books, Internet & magazines.

• Research Design:-

Research design is the guideline, which help the researcher to get the required

information from the respondents within the specific time limit,

51

6. DATA ANALYSIS

1) Table showing present type of Residential Ownership.

Type No. of Respondents % of Respondents

Ownership 36 36%

On Rental 49 49%

Others 15 15%

Total 100 100%

Residential Ownership

36%

49%

15%

Ownership

On Rental

Others

The above table shows that, maximum no. of respondents stays on rental basis

i.e.49%, 36% of the respondents have their ownership on residence and 15% of

respondents are in others category, which include residence on lease or staying at

relative.

52

2) Table showing areas preferred to purchase residential properties.

Area No. of Respondents % of Respondents

Peth Area 11 11%

Kalyani Nagar 19 !9 %

Hadapsar 23 23%

Kondwa 26 26%

Katraj 07 07%

Baner 05 05%

Pashan 09 09%

Total 100 100%

Preffered area for Property Purchase

11%

19%

23%26%

7%5% 9% Peth Area

Kalyani Nagar

Hadapsar

Kondwa

Katraj

Baner

Pashan

The above table shows that maximum no. of respondents i..e.26% prefer Kondwa

area, whereas 23% of respondents preferred Hadapsar area, while 19% of respondents

prefer Kalyani Nagar area, whereas 09% of respondents preferred Pashan area while

07% of respondents preferred Katraj area and 05% of respondents preferred Baner

area for purchasing residential properties.

53

3) Table Showing Factors taken into consideration while purchasing Residential

properties.

Factors No. of Respondents % of Respondents

Location 28 28%

Price 39 39%

Transportation Facility 16 16%

Accessibility to Market 07 07%

Others 10 10%

Total 100 100%

Factors while Purchasing Resendential Properties

28%

39%

16%

7%10%

Location Price

Transportation Facility Accessibility to Market

Others

The above table shows that maximum no. of respondents i.e. 39% consider Price,

whereas 28% consider location while 16% consider transportation facility whereas

10% consider other factors like Vastushastra, Water availability etc. and 07% of

respondents consider accessibility to market as important factor for purchasing

residential properties.

54

4) Table showing Parameters considers while selecting residential properties.

Parameters No. of Respondents

Brand Name 53

Quality 62

Space (Sq. ft.) 49

Facilities 73

Interior 30

Schemes 57

Parameters considers while selecting residential properties

5362

49

73

30

57

01020304050607080

Brand

Nam

e

Quality

Space

(Sq.

ft.)

Facilit

ies

Inte

rior

Schem

es

Parameters

No

. of

Res

po

nd

ents

Brand NameQualitySpace (Sq. ft.) FacilitiesInteriorSchemes

The above table shows that maximum no. of respondents i.e. 73 consider Facilities as

parameter while 62 respondents consider Quality, whereas 57 of respondents consider

Schemes whereas 53 respondents consider Brand name while 49 respondents consider

Space (Sq. ft.) and 30 respondents consider Interiors as the parameters while selecting

residential properties.

55

5) Table showing sources of Information for respondents while Property

Purchasing.

Sources No. of Respondents % of Respondents

Hoardings 13 13%

Newspapers 17 17%

Agents/Consultants 33 33%

Relatives/Friends 28 28%

Others 09 09%

Total 100 100%

Various Sources of Information for Property Purchasing

13%

17%

33%

9%28%

HoardingsNewspapersAgents/ConsultantsRelatives/FriendsOthers

Above table shows that 33% of respondents get their information from Agents

/Consultants, where as 28% of respondents get information from Relatives/ Friends

while 17% of respondents get information from Newspapers whereas 13% of

respondents get information from Hoardings and 09% of respondents get their

information through Other Sources like Local News Channel,Radio,Internet etc. for

Purchasing Residential Properties.

56

6) Table showing awareness in respondents about various schemes offered by

KBC.

Awareness No. of Respondents % of Respondents

Yes 67 67%

No 33 33%

Total 100 100%

Awareness of Respondents to Various Schemes

67%

33%

Yes

No

The above table shows that maximum no. of respondents i.e. 67% were aware about

the various schemes offered by KBC whereas 33% of respondents were not aware

about various schemes offered by KBC.

57

7) Table showing duration of the year when normally respondents like to

purchases residential properties.

Month No. of Respondents % of Respondents

Jan to Apr 35 35%

May to Aug 13 13%

Sept to Dec 52 52%

Total 100 100%

Duration of Purchasing Resendential Properties

13%

35%

52%

Jan to Apr

May to Aug

Sept to Dec

Above table shows that maximum no. of respondents i.e. 52% would prefer Sept to

Dec as the duration where as 35% respondents would prefer Jan to Apr while 13% of

respondents prefer May to Aug as the duration of the year where they would like to

purchase residential properties.

58

8) Table showing type of Residential property respondents would like Purchase.

Type No. of Respondents % of Respondents

1 BHK Flat 18 18%

2 BHK Flat 48 48%

3 BHK Flat 24 24%

Bungalow/Row house 04 04%

Others 06 06%

Total 100 100 %

Type of Resedential Property

18%

48%

4% 6%24%

1 BHK Flat

2 BHK Flat

3 BHK Flat

Bungalow/RowhouseOthers

Above table shows that maximum no. of respondents that is 48% would like to

purchase 2 BHK Flat, whereas 24% respondents prefer 3 BHK Flat, while 18%

respondents prefer 1BHK Flat whereas 4% of respondents prefer Bungalow/Row

house and 06% respondents prefer others which include Duplex, Terrace Flat,

Attached Flat etc. for purchases of residential property.

59

9) Table showing mode of purchases of residential property preferred by

respondents.

Mode No. of Respondents % of Respondents

Home Loans 57 57%

Lum-sum 06 06%

Installments 33 33%

Others 04 04%

Total 100 100%

Mode of Purchase

6%

33%

4%

57%

Home Loans

Lum-sum

Installments

Others

Above table shows that maximum no. of respondents i.e.57% would prefer Home

Loans whereas 33% of respondents would prefer Installments while 06% of

respondents would prefer Lum-sum and 04% of respondents prefer Others.

60

7. FINDINGS

1) During the time of survey, it was found that 49% respondents are having the

resident on rental, 36% respondents are having own property & 15% respondents

are having other sources such as lease, relatives & friends etc.

2) It was found that 26% of respondents were preferred to purchase residential

property in Kondwa area, 23% of respondents in Hadapsar & 19%, 11%, 9%, 7%

people in Kalyani Nagar, Peth area, Pashan Nagar, Katraj area respectively, only

5% respondents were preferred in Baner area.

3) It was found that the price & location is major factor which consider by the

customer at the time of purchasing the residential property. Here 39%

respondents are considering the price, 28% respondents are consider location &

16% & 7% respondents are considering transportation & market facility.

4) It was found that the ‘quality’ & ‘facilities’ are most considerable parameters at

the time of selecting residential property. Brand Name & schemes are also

consider the consumer at the time of purchasing the residential property.

5) It was found that the source of information for consumers the real estate

consultant play very vital role. 33% respondents go through the consultants, 28%

respondents prefer relatives & friends, 17% go through newspapers & 22%

respondents prefer through hoarding & others sources.

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6) It was found 67% respondents were aware of various schemes offered by KBC &

33% respondents were not aware. Here the most of the respondent’s opinions

about schemes of KBC’s are good.

7) In the duration of September to December the most of the respondents were like

to purchase the residential property because most of the festival are in this

duration. Here 52% respondents preferred in September to December, 35%

respondents preferred in January to April & 13% respondents preferred in May &

August.

8) It was found that demand of the 2 & 3 BHK flats were more as comparing to

other types. 48% respondents prefer 2 BHK flat, 24% respondents prefer 3 BHK

& 18% & 4% respondents choose the 1 BHK & Bungalow respectively. Here

6% respondents go through the other type such as Duplex flat, Gallery or Terries

& 1 HK flat.

9) In the mode of payments 57% respondents go through home loans of various

banks & private financial institutes, 33% respondents go through installments,

6% respondents through lum sum amount & 4% respondents choose other mode

of payments.

10) It was found that the close competition of KBC were Vascon, Bramha Builders &

Nyati Builders which were mostly known by the respondents.

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8. CONCLUSION

• It can be seen that Kumar Builders is most popular brand.

• Quality is considering lot while purchasing residential property.

• The Kumar Builders stands first among three top companies in Pune city.

• The Buyers consider Quality and price while purchasing the residential

property.

• The customer may change the Brand if the Particular brand is not available

and also because of close substitute.

• Price hike is also one of the reasons for change in brand.

• Adverting and other sales promotion tools have a great effect on sales of the

residential property.

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9. RECOMMENDATIONS

1. KBC should try to tap other market potentials, such as Nasik, Kholapur, Surat

Ahmedabad and 2nd tire cities.

2. KBC should try to decrease Five star amenities with a view to cut down the

property prices and there by attracting the middle class.

3. KBC should actively participate and organize property exhibition, trade shows,

hoardings, etc. to create awareness in the market.

4. KBC should organize annual customer meet to appreciate those customer who

have been with them and awarded them.

5. KBC should take mass media such as television more precisely cable media to

target local customers.

6. KBC should also concentrate more on interior decoration to compete with other

competitors.

7. KBC should reduce the maintenance charges.

8. KBC should also concentrate on CRM activities, such as loyalty to create strong

good will and gain new customer.

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ANNEXURE

Questionnaire

“A STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS

RESIDENTINAL PROPERTIES IN PUNE CITY”

WITH SPECIAL REFERENCE TO KUMAR BUILDERSS

Personal Details

NAME:-

OCCUPATION :-

GENDER:-

FAMILY SIZE :-

CONTACT :

E-MAIL:-

NO. OF EARNING MEMBERS:-

ANNUAL INCOME:

1. Do you have any plan to purchase residential property in Pune?

� Yes � No

2. What is your present type of property?

� Ownership �On rental � Others

3. In which area would you prefer to purchase residential properties? Why?

� Peth area � Hadapsar � Pashan � Baner

� Kalyani nagar �Katraj � Kondwa

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4. Which factor do you take in to consideration while purchasing residential

properties? (Choose any one)

� Location � Price

� Transportation facility � Accessibility to market

� Others ___________________________________________

5. Which parameters do you take in to consideration while selecting a residential

property? (Allow to multiple choice)

� Brand Name � Quality

� Space (sq. ft) � Facilities

� Interiors � Schemes

6. Which other construction company / industry are you aware of other than KBC?

(Open ended)

____________________________________________

____________________________________________

7. Plz. Indicate the source of information that you consider for property purchasing?

(choose any one)

� Hoarding � Newspapers

� Agent � Relatives

� Others

8. Are you aware of various schemes offered by KBC?

� Yes � No

If yes what is your opinion,

66

� Very Good � Good � Average

9. During which duration of the year normally would you like to purchase residential

properties?

� Jan. to Apr. � May to Aug. � Sep. to Dec.

10. What type of residential property you would like to purchases?

� 1BHK Flat �2BHK Flat

� 3BHK Flat � Bungalows/Row House

� Others

11. What will be your mode of purchase of residential property?

� Home Loans � Lum sum

� Installments � Others

__________

Signature

67

BIBLIOGRAPHY

Books referred

Title : - Marketing Management

Name of the Author : - Philip Kotler

Title : - Marketing Research

Name of the Author : - Thomas C Kinnear

Title : - Consumer Buying Behavior

Name of the Author : - J. Paul Peter

Title : - Research Methodology

Name of the Author : - Dr. S. Shajahan

Other sources:-

1) News Paper

2) Magazines

3) Internet websites

Webliography Referred :

a) www.google.com

b) www.marketingprofessors.com

c) www.indiatimes.com

d) www.kumarbuilders.com