A PROJECT REPORT ON

“A STUDY ON BUYING DECISION MAKING STYLE OF INDIAN SHOPPERS IN INDORE SHOPPING MALLS”

SWAMI VIVEKANAND COLLEGE OF ENGINEERING

SCHOOL OF MANAGEMENT

Submitted for partial fulfillment of requirement

for the award of Degree Of

Master of Business Administration

Session 2008-10

Guided by: Submitted by:

Prof. Shilpi Mehta Manali Mandloi

M.B.A. – IV Semester

ACKNOWLEDGEMENT

I would like to thank my project guide Prof. Shilpi Mehta for guiding me through my research project. Her encouragement, time and effort are greatly appreciated

.

I would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible.

I would like to thank all the respondents who offered their opinions and suggestions through the survey that was conducted by me in Indore shopping malls.

Last but not the least; I would like to thank my college Director Mr. Allok Mittal, and all those who supported me directly or indirectly in completing my Major research project.

Manali Mandloi

M.B.A (IVth Semester

DECLARATION

I Manali Mandloi hereby declare that the following documented Project Report titled “A STUDY ON BUYING DECISION MAKING STYLE OF INDIAN SHOPPERS IN INDORE SHOPPING MALLS” is an authentic work done by me.

The Study was undertaken as a part of the course curriculum of MBA Full Time Program of Swami Vivekanand College of Engineering, Indore (M. P.).

MANALI MANDLOI

MBA (IVth Semester)

CERTIFICATE OF GUIDE

CERTIFICATE

This is to certify that the Project Report entitled A STUDY ON BUYING DECISION

MAKING STYLE OF INDIAN SHOPPERS IN INDORE SHOPPING MALLS” In

Indore, which is being submitted herewith for the award of the degree of Master of

Business Administration of DEVI AHILYA VISHWAVIDHYALAYA

INDORE,INDORE, is the result of the original research work completed by Ms Manali

Mandloi under my supervision and guidance and to the best of my knowledge and belief

The work embodied in this Project Report has not formed earlier the basis for the award

of any degree or similar title of this or any other University or examining body. 

Signature of Guide   Signature of student  

Date:   

Place: Indore      

ABSTRACT

The economy of India is on a growth spree since the last two decades. This growth has increased the shopping options available to the consumers. The present study has tried to ascertain the buying decision-making styles of Indian shoppers in Indore shopping malls, so as to provide information to marketers interested in the decision-making profile of Indian consumers and thus enabling them to build their marketing efforts accordingly. The Consumers buying decision making styles were studied by a structure questionnaire and captured in different sections: demographic, consumer characteristics and affecting factors on a sample of 100 active Indian mall shoppers. Analysis of result is done by using appropriate statistical tool and after than effective interpretation is done through the given results.

Table of Contents

I 1. Introduction

1.1 Conceptual framework

1.3 Review of literature

II 2.Research Methodology

2.1 Rationale of the study

2.2 Objectives of the study

2.3 Type of research study

2.4 Sample Unit

2.5 Sample Size

2.6 Sample Technique

2.7Tools for data collection

2.8 Tools for data analysis

III 3. Finding

VI 4. Discussion & Interpretation of Results

V 5. Conclusion and Suggestion

VI 6. Implication of the study

6.1 Limitation of study

6.2 Expected contribution from research

6.3 Direction of Future research

VII 7.Annexure

Bibliography

Appendix

Chapter –I

Introduction

Conceptual framework

INTRODUCTION:

Over the last few years, retail has become one of the fastest growing sectors in the Indian economy. Though the country has highest retail outlet density in the world, Indian retail sector is highly fragmented and organized retail in the country is at very nascent stage. The organized retail industry in India is expected to grow 25-30 % annually. Retailing is gradually inching its way towards becoming the next boom industry.

India’s vast middle-class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets and India provides for the ideal locations. Since, Delhi and its suburbs have so far seen the growth of 100 bigger and smaller malls, roughly 600 new malls are coming up in other metropolis and large townships in which less than 35% of retail business is going to be transacted. It is seen that over 1000 malls are in the pipelines for smaller townships in which the retail sector is projected to grow at over 60% because of ample availability of land and increased purchasing power of the folks living in those areas because of increased economic activities. Naturally, the large players will prefer to go there and put up their shops by sourcing their supplies from the places convenient to them. 7

Though the country has highest retail outlet density in the world, Indian retail sector is highly fragmented and organized retail in the country is at very nascent stage. Organized retailing accounts for less than 5% of the retailing industry in India. Therefore, there is no real retail revolution in India since the industry is still in the stage of infancy. The organized retail industry in India is expected to grow 25-30 % annually and is projected to attain USD 23 billion by 2010(FCCI, 2005).Retailing is gradually inching its way towards becoming the next boom industry. Consumers are the major beneficiaries of the retail boom.

The Indian consumer is changing rapidly. They now have a choice of wide range of products, quality and prices. Organized retailing is changing the whole concept of shopping in terms of consumer buying behavior. In such a scenario, consumer decision making is of great interest for consumer educators and marketers interested in serving the consumer (Canabal, 2002).

Therefore, there is clearly a need for research on this issue in India. In this study, we have tried to identify the consumer decision making styles in different shopping malls (Pantaloons, Big bazaar) of INDORE

DEFINITION AND MEANING

Retailing consists of those business activities involved in the sale of goods and services to consumers for their personal, family, or household use.

Retailing consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery.

In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain.

The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.

The process of bringing the ultimate user to the main producer, through a series of stages, where retailing is the last one. It is not limited to quantities, but limited to the exact requirement of the ultimate user. Therefore, bringing about operational efficiency at this last stage, and creating an environment so compelling that he looks nowhere else, is "Retail Management"(RM).

RM- is an art, and necessitates employing several tools of logistics management for a complete end user satisfaction. RM - is getting to know the final user on behalf of the producer. RM - is a process of facilitation.

What is retailing?

Retailing involves selling products and services to consumers for their personal or family use. Department stores, like Burdines and Macy's, discount stores like Wal-Mart and K-Mart, and specialty stores like The Gap, Zales Jewellers are all examples of retail stores. Service providers, like dentists, hotels and hair salons, and on-line stores, like Amazon.com, is also retailers.

CONCEPT OF RETAILING

The distribution of consumer products begins with the producer and ends at the ultimate consumer. Between the producer and the consumer there is a middleman-the retailer, who links the producers and the ultimate consumers. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. The word ‘retail’ is derived from the French work retailer, meaning ‘to cut a piece off’ or ‘to break bulk’.

Manufacturer - Wholesalers - Retailers – Consumer

A retailer is a person, agent, agency, company, or organisation which is instrumental in reaching the goods, merchandise, or services to the ultimate consumer. Retailers perform specific activities such as anticipating customer’s wants, developing assortments of products, acquiring market information, and financing. A common assumption is that retailing involves only the sale of products in stores. However, it also includes the sale of services like those offered at a restaurant, parlour, or by a car rental agencies. The selling need not necessarily take place through a store. Retailing encompasses selling through the mail internet, door-to-door visit s—any channel that could be used to approach the consumer. Retailing has become such an intrinsic part of our day today lives that it is often taken for granted. Why has retailing become such a popular method of conducting business? The answer lies in the benefits a vibrant retailing sector

has to offer-an easier access to a variety of products, freedom of choice and higher levels of customer service. As we all know, the ease of entry into retail business results in fierce competition and better value for customer. To enter retailing, is easy and to fail is even easier. Therefore, in order to survive in retailing, a firm do a satisfactory job in its primary role i.e., catering to customer.

Countdown to India's retail revolution :The economy is growing by 8% a year, its stock market rose by nearly 40% in 2005 and foreign investors are flooding in. There are about nine million small grocery shops in IndiaWhichever way you measure it, business in India is booming. And as the economy grows, so does India's middle class. It is estimated that 70 million Indians in a population of about 1 billion now earn a salary of $18,000 a year, a figure that is set to rise to 140 million by 2011. Many of these people are looking for more choice in where to spend their new-found wealth.

India’s Background:

Prior to 1992, India was a protected economy with minimal growth. High tariffs and other forms of protection created immense barriers to trade and access was restricted to Western imported consumer goods. Most retail stores were family owned and smaller in size. With the exception of a few (small) super bazaars, consumers were not allowed to walk freely inside the stores to examine and compare labels of different brands before making their selection. Instead, consumers approached shops with a predetermined list of items to purchase. There were some regional shopping chains that carried tailored clothes or uncut fabric in different designs and fashions. Indian consumers, on average, did not have as much disposable income as those in Western countries which clearly impacted their decision making. As a result, shopping for clothes was generally done during the Indian festival and wedding seasons, but not throughout the year. Moreover, in clothing stores the shopper specified the range of prices he/she was interested in spending and the salesperson brought the selection of clothing to the customer. Browsing for merchandise could not be done so easily as a result. In sum, consumer shopping experiences were determined by various economic and market factors.

The situation, however, changed momentously in 1991 when a new government mandated radical changes in how the Indian economy would operate. This new government set in motion forces that permitted India to grow its economy at a faster pace and allowed consumers greater choice in products and services. A liberalized economy allowed multinational companies to enter India; these companies adapted their products to fit Indian tastes and preferences. India entered into a new reality as it became a part of the globalization movement affecting most countries on the planet. Organized retail formats such as malls have also contributed to the spending spree among Indian consumers. The Indian consumer now enjoys a level of choice that

was unavailable two decades ago. Of critical importance, the transformation of India into a consumer marketplace represents a change that is unprecedented in the history of India. Consumer markets in India appear to have a promising future, as the Indian economy has the momentum for robust growth for years to come with a corresponding rise in consumer spending. In sum, the description above of the historical India (pre-1992) is in noteworthy contrast to the India of today where the retail environment has become much like a developed country. We hypothesize that these dramatic changes have also changed the mindset of Indians in the way they make decisions in the retail environment.

INDIAN RETAIL SECTOR OUTLOOK:

According to this year’s Global Retail Development Index India is positioned as the leading destination for retail investment. This followed from the saturation in western retail markets and we find big western retailers like Wall-mart and Tesco entering into Indian market. India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010. There are about 300 new malls, 1,500 supermarkets and 325 departmental stores being built in the cities very soon.

A shopping revolution is ushering in India where, a large population between 20-34 age groups in the urban regions is boosting demand by 11.1 percent in 2004-05 to an Rs 23,308 purchasing power. This has resulted in huge international retail investment and a more liberal FDI.

This market research report “The Indian Retail Sector – An Outlook (2005-2010)” analyzes the greatly divided Indian retail market and the trends in its business. Issues such as foreign investment restrictions, modern merchandizing in India, logistics and payment terms for distribution, role of channel members and growth trends in different regions are discussed. The market research report further analyzes the sustainability of the Indian retail sector and on the basis of 25 domestic and international companies the report has given a suitable business model.

- Competitive analysis of Indian retail sector vis-à-vis global retail industry. - Supportive policies and regulations of government for the retail sector. - Issues and implications related to the current foreign direct investment in the retail sector. - Market size and growth of Indian retail sector segmented by sectors, retail formats, and regional segmentations. - Increasing employment opportunities with stepping up of international retail brands in India. - Opportunities for big western retailers like Wal-mart and Tesco. - Market forecast till 2010. - Behavioral pattern, preferences and expenditure capacity of Indian consumers. - Increasing acceptance of e-retailing among Indian consumers. - Evolution of franchise businesses in Indian retail sector.

Key Points of Indian Organized Retail Industry

1. Potential to be the third largest economy in terms of GDP in next few years

2. It ranks high amongst the top 10 FDI destinations of the world

3. Fastest growing tourist market in Asia.

4. World bank states, India to be worlds second largest economy after ChinaBy the year 2050.

5. Stable and investor friendly Central Government at the helm of affairs.

6. Introduction of Value Added Tax or VAT and tax reforms.

7. High degree of professionalism and corporate ethics.

8. Excellent Investment opportunities in Indian retail sector and in alliedSectors; sure and high returns on investments.

9. To invest US $130 billion for the development of infrastructure, by year2010.

10. Bullish stock markets.

11.Hordes of foreign investors are thronging in to invest in Indian retailmarkets. 12. Highly educated English speaking young workforce.

12.. Huge opportunity exists, especially in semi-rural and rural areas.

13.. Till date the second largest employer after agriculture sector, for thehuge semi-skilled Indian population.

14.. Offers highest shop density in the whole world.

15.. Having almost 1,20,000 shops, across the length and breadth of Country

Formats in Indian Organized Retail Sector:

Supermarkets:A supermarket, also called a grocery store is a self- service store offering a wide variety of food and household merchandise, organized into departments. It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a hypermarket or superstore.

Hypermarkets: A hypermarket is a superstore which combines a supermarket and a department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine weekly shopping needs in one trip.

Department Stores: A department store is a retail establishment which specializes in satisfying a wide range of the consumer's personal and residential durable goods product needs; and at the same time of offering the consumer a choice multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, appliances, electronics, and addition all select other lines of products such as paint, hardware, toiletries, cosmetics,photographic equipment, jewelery, toys, and sporting goods. Certain department stores are further classified as discount department stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countries.

Shopping malls:A shopping mall or shopping centre is a building or set of buildings which containretail units, with interconnecting walkways enabling visitors to easily walk from unit to unit.

Specialty Chains:

A Specialty Chains is numbers stores which are specialized in a specific range of merchandise and related items. Most stores have an extensive width and depth of stock in the item that they specify in and provide high levels of service and expertise. They differ from department stores and supermarkets which carry awide range of merchandise.

Entertainment Seekers

A shopping centre caters to a diversity of shopper segments including the convenience shopper and the entertainment shopper (see Sit, Merrilees and Grace, 2003). However, some shopper segments are not enthusiastic about entertainment consumption, for example the convenience shopper. Indeed, entertainment targeted at ‘anti-entertainment’ shopper segments is at best redundant, and at worst counterproductive. However, this proposed study focuses primarily on understanding the satisfaction formation of ‘pro-entertainment’ shopper segments, such as the entertainment shopper (see Sit, Merrilees and Grace, 2003).

Shopping centre entertainment can be classified into three categories, namely special event entertainment, specialty entertainment and food entertainment.The key distinction between these entertainment categories is their length of operation. For example, special event entertainment is offered on an occasional, temporary and discrete basis and includes events such as fashion shows and celebrity signing. Conversely, specialty entertainment and food entertainment contribute to the more permanent tenant mix of a shopping centre Specialty entertainment involves movie theatres and video arcades, while food entertainment includes a range of eateries, cafés or restaurants. Shopping centre entertainment is emerging a major element of shopping centre innovation worldwide .The popularity of shopping centre entertainment is evident in Australia. For example, the recent redevelopment of Westfield Bondi Junction (Sydney) now offers an authentic food court offering a wide variety of eateries, ranging from an oyster bar to a seafood restaurant to a patisserie .While, entertainment consumption is commonly found in the shopping centre environment, very limited academic research has examined shopper satisfaction with this activity. To address this gap in the literature, this proposed study focuses on understanding the satisfaction formation of entertainment seekers.

Consumers’ Motivations to shop in Shopping Malls

Over the last few years, retail has become one of the fastest growing sectors in the Indian economy. Traditionally, Indian retail sector has been characterized by the presence of large number of small-unorganized retailers. However, over the last half decade, the Indian consumer market has seen a significant growth of various retail formats such as supermarkets, department stores, discount stores, hyper markets, etc. Though the organized retailing accounts for only two

percent of the retailing industry in India, the organized retail industry is expected to grow 25-30 per cent annually and is projected to attain USD 23 billion by 2010 (FCCI, 2005). Retailing is gradually inching its way towards becoming the next boom industry. Consumers are the major beneficiaries of the retail boom. The Indian consumer is changing rapidly. They now have a choice of wide range of products, quality and prices. Organized retailing is changing the whole concept of shopping in terms of consumer buying behavior. Shopping today is much more than just buying- it is an experience itself. Shopping has become a pleasurable experience itself. Consumers now value convenience and choice on a par with getting value for their hard-earned money. Consumers are now showing preferences for shopping malls, which enable them to shop a variety of products under one roof and offer shopping experience in terms of ambience and entertainment. However, in the Indian context, no research has been carried out to investigate various motivations that people go shopping in malls. Therefore, there is clearly a need for research on this issue in India. In this study, an attempt was made to study the motivations that people go shopping in mall.

THEORY ASPECT OF CONSUMER BUYING DECISION PROCESS

Need Recognition

The buying process starts with need recognition – the buyer recognizes a problem or need. The buyer senses a difference between his or her actual state and some desired state.

Information Search

The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search.

Alternative Evaluation

The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.

Purchase Decision

The stage of the buyer decision process in which the consumer actually buys the product.

Post purchase Behavior

The stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction.

Consumer Decision-Making Styles

Prior to the original study by Sproles and Kendall (1986) on types of consumer decisionmaking styles, no other studies were found that investigated these specific styles. The Sproles and Kendall study focused on findings from empirical research and suggested that consumers generally enter the marketplace with a variety of decision-making styles that influence purchase decisions. The study identified eight decision-making styles: perfectionist, brand conscious, novelty-fashion conscious, recreational shopping/conscious, price-value conscious, impulsive, confused by overchoice, and habitual brand-loyal.

(Characteristics of Eight Consumer Decision-Making Styles)

1.Perfectionist/high quality-conscious consumer: Decision style of consumers who systematically search for the best quality products possible. Consumers have high standards and expectations for consumer goods, and are concerned with the function and quality of products.

2. Brand consciousness: decision style of consumers concerned with getting the most expensive, well-known brands. They feel that price is an indicator of quality.

3. Novelty and fashion conscious: decision style of consumers who like new and innovative products and who gain excitement from seeking out new things. They are conscious of the new fashions and fads.

4. Recreational and shopping conscious: decision style of consumers who take pleasure in shopping and who shop just for the fun of it.5. Price conscious: decision style of consumers who are concerned with getting lower prices. They are likely to becomparisonshoppers.6.Impulsiveness/careless: decision style of consumers who never plan their shopping and tend to buy spontaneously. They are not concerned about how much money they spend.

7. Confused by over choice: decision style of consumers who feel they have too many brands and stores to choose from and who likely experience information overload in the market. Consumers find the marketplace confusing, view brands as alike, and seek help from friends.

8. Habitual/brand loyal: decision style of consumers who are apt to have favorite brands and stores. They shop at the same stores and tend to buy the same brands each time.

What is Consumer Buying Behavior?

Buying Behavior is the decision processes and acts of people involved in buying and using products.

Need to understand:

why consumers make the purchases that they make? 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 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.

Types of Consumer Buying BehaviorTypes 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.

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 alot 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.

Percentage of Organized Retail

USA - 85%

Taiwan - 81%

Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%

India-3%

Current Scenario

A glimpse of the International Retail

One of the world's largest industries exceeding US$ 9 trillion

47 global fortune companies & 25 of Asia's top 200 companies are retailers

Dominated by developed countries

US, EU & Japan constitute 80% of world retail sales.

Biggest player in India is Pantaloon Retail India Limited

Key Trends

The existing players like Big Bazaar, Shoppers' Stop, Piramyd are expanding to smaller towns and cities. Many other business houses are planning to enter the retail sector either on their own or through partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are going to enter the market soon. Even rural areas will provide a huge opportunity to be explored.

Profile of some leading Indian retailers:

Pantaloon Retail India Limited (PRIL)

Headed by Kishore Biyani (Biyani), Pantaloon Retail India Limited (PRIL) is one of the leading retail outlets in India. The retail chains which are a part of PRIL include Pantaloons, Big Bazaar, Food Bazaar, Gold Bazaar and the Central Mall.

PRIL was incorporated in October 1987 as Manz Wear Private Limited. It became a public limited company in September 1991. The company sold products under the Bare, Pantaloons and John Miller brand names. The first menswear Pantaloons Shoppe outlet was set up in 1993.

RPG Group

The Rama Prasad Goenka or RPG Group registered a turnover of Rs. 84 billion in the fiscal 2004-05. The group has more than 20 companies in seven different industries - Power, Tyres, Retail, Transmission, Entertainment, Technology and the Specialties sectors (Refer Exhibit XIII for contribution of business sectors to RPG Group's turnover).

Tata Group

The Tata group is one of India's largest business houses. In 2005, the group owned 93 companies in seven business sectors, namely information systems and communications; engineering; materials; services; energy; consumer products; and chemicals, and employs nearly 220,000 people.

In 1997, the Tata's sold their Lakme business to Hindustan Lever Limited (HLL) . The group

started its retail business in 1998 with the purchase of the Littlewoods retail stores, originally owned by a UK-based firm, in Bangalore.

Raheja Group:

The K. Raheja group of companies is among India's largest real estate players. They launched Shopper's Stop way back in October 1991. This was the first mega apparel retail outlet to be established in India. Shoppers' Stop is projected as a Fashion & Lifestyle store for the family. From a single store in 1991, Shopper's Stop has today grown into a 16 store retail chain in major metropolitan cities across India...

Others Leading Indian Retailers: Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Shoppers Stop, Subhiksha, Titan Industries, Trent and the new entrants penetrating the market soon will include Reliance Retail Ltd, Wal-Mart Stores, Carrefour, Tesco, Boots Group, etc.

Review of Literature

Handa Meenakshi , Khare Arpita : Need for uniqueness and consumption behaviour for luxury brands amongst Indian youth,:International Journal of Indian Culture and Business Management: Volume 3, Number 5/2010

Examined that the Indian youth's need for uniqueness (NFU) and their attitudes towards luxury brand as an expression of individuality. A primary research was conducted amongst Indian University students to ascertain their NFU and perception of luxury brands. It was apparent that while the NFU is not very high amongst the Indian youth, luxury brands do symbolize status and individuality to them and serve a value-expressive function. As the Indian social system is witnessing a transition from traditional family driven values to more of western and individual-centric values, NFU and expression of self-identity amongst Indian youth may also become more marked. While marketing global luxury brands in India, advertising may be focused towards conveying a new identity to the consumers yet maintaining balance with traditional norms and value systems.

Ghosh piyali, Tripathi vibhut: International Journal of Services, Economics and Management, Volume 2, Number 2 / 2010   Pages:  121 – 136

Retail industry in India is acknowledged as a sunshine sector, and is driven by factors like strong income growth, changing lifestyles and favourable demographic patterns. Having cemented its presence in metros and Tier I cities, retailers are allured by opportunities in Tier II and III cities like low-cost real estate and shifting consumption patterns of consumers who are graduating to affluence and lifestyle purchases. This study is an attempt to explore shopping and purchase behaviour patterns of consumers within organised retail outlets of Allahabad, a Tier II city in india. Variables identified for shopping orientation were treated with Factor Analysis; motivating factors for store selection and purchase patterns on each shopping trip have also been analysed.

Hemalatha .M, Sivakumar V.J , Jayakumar G.S. David Sam: Volume 3, Number 6/2009, International Journal of Business Innovation and Research

Different groups of consumers believe that different store attributes are important. Therefore, store attributes appears to be a promising market segmentation criterion. In this sense, the present work focuses on store attributes as a possible criterion to segment the shoppers.

Harold J. Lagroue III ,International Journal of Information and Decision Sciences, Volume 1, Number 2/2008 .

This study examines the effectiveness of virtual facilitation (system-directed multi-modal user support) for supporting structured group decision-making. A multi-modal application for automating the facilitation process for a group decision

Wang H, An empirical study on using decision support systems to solve very large choice decision problems, International Journal of Management and Enterprise Development,Volume 1, Number 4/2004

Choice problems as a class of decision problems have attracted great attention for the last couple of decades. As problem size increases, a decision process may be detoured and the decision outcome may be different. The impact of problem size on three important aspects of the computer-aided decision process – strategy selection, decision time/effort, and decision quality – has been investigated by Wang and Chu. This paper investigates the way a decision support system (DSS) is used to solve very large choice problems (VLCP) as well as its implications for small to medium-sized enterprises (SMEs).

Reynolds, Ganesh and Luckett 2002; Dennis, Marsland and Cockett 2001;Frasquet, Gil and Molla 2001; Wong, Lu and Yuan 2001; Bell 1999).

A review of the retailing literature manifests the ‘big four’ dominating shopping centre image studies, namely merchandise mix; accessibility; services and atmospherics (In the shopping centre literature, merchandise mix is commonly measured by merchandise range, quality, pricing and styling or fashion. Accessibility concerns the ingress and egress of a shopping centre, particularly the ease of navigation within the centre. Services of shopping centers are conceptualized by employees’ attitudes, ambulances (such as escalators and direction signage) and amenities (such as parent rooms and restrooms). Atmospherics refer to the ambience, décor and layout of a shopping centre .The dominance of these ‘big four’ attributes indicates the negligence of entertainment that is also essential to the shopping centre image. Thus, this demonstrates the need for further research on entertainment consumption at shopping centres

Dr.C.V.Ranjani,Retailer Mortality–Reasons and Remedial Meas :Volume 4 2 (Management) Published: 2009

Retailers and marketers often seek to learn how and why people shop. The consumer decision making process is a complex phenomenon. The purchase of goods or services includes a number of factors that could affect each decision. Decision making is more complex and even more important for consumers today than in the past. Consumers are besieged by advertising, news articles, and direct mailings that provide an abundance of information, much of it with mixed messages. In addition, increases in the number and variety of goods, stores, and shopping malls, and the availability of multicomponent products and electronic purchasingCapabilities have broadened the sphere for consumer choice and have complicated decision making (Hafstrom et al., 1992). Sproles and Kendall86) define a consumer decision making (CDM) style as “a mental orientation characterizing a consumer's approach to making choices.” Broadly speaking, there are three types of approaches in studying consumer decision-making styles: the psychographic/lifestyle approach, which identifies hundreds of characteristics related to consumer behaviour; the consumer typology approach, which classifies consumers into several types; and the consumer characteristics approach, which focuses on different cognitive dimensions of consumer decision making (cf. Fan et al., 1998). In the extant consumer behaviour literature, most studies assume that all consumers approach shopping with certain decision-making traits that combine to form a consumer's decision-making styles. Academicians and researchers have long been interested in identifying these underlying decision styles of shoppers. For example, consumers are identified as economic shoppers, personalizing shoppers, ethical shoppers, apathetic shoppers, store loyal shoppers, recreational shoppers, convenience shoppers, price-oriented shoppers, brand loyal shoppers, name-conscious shoppers,

problem-solving shoppers, quality shoppers, fashion shoppers, brand conscious shoppers and impulse shoppers. (Bellenger andKorgaonkar 1980; Darden and Reynolds 1971; Stone 1954, Williams, Painter, and Nicholas 1978, Moschis 1976;Stephenson and Willett 1969, Gehrt and

Das Neel, Burman Bidisha, Biswas Abhijit: Effect of discounts on search and shopping intentions: the moderating role of shopping environment :International Journal of Electronic Marketing and Retailing :Volume 1, Number 2/2006 .

This article examines consumers' perceptions of search and shopping intentions, at different levels of discounts across two different shopping environments – traditional 'brick and mortar' and the internet. An experiment was conducted to examine the proposed hypotheses and the results indicate that while search intention is not different in the two environments, shopping intention of the consumers differ at varying discount levels.

Chapter- II

Research Methodology

Rationale of the study

Objectives of the study

Type of research study

Sample Unit

Sample Size

Sample Technique

Tools for data collection

Tools for data analysis

Rationale behind the study

This study will help the managers of shopping malls to understand the underlying decision making styles of the shoppers in the malls and help them to craft their marketing strategies. Profiling consumers by their buying decision-making styles provide more meaningful ways to identify and understand various consumer segments and to target each segment with more focused marketing strategies.These decision making styles were perfectionist/high quality conscious consumer, brand conscious, novelty and fashion conscious, recreational and shopping conscious, price conscious, impulsive /careless, confused by overchoice,habitual/brand loyal.

.

This study can play a major role for organizations while planning its marketing activities, & decide on the promotions for the same.

Moreover, the study is going to provide meaningful insights to students, who will be doing similar study in future.

Objective of the Study

To study decision making style of Indian shoppers in Indore shopping mall.

To study variations in the consumer decision making styles across different demographic variables.

To study the characteristics based on consumer style inventory which influences the consume decisions.

To study the effect of quality and brand of a product on Indian shoppers.

To suggest an appropriate measure to improve the buying decision making of Indian shoppers.

Type of research study: This study used mall intercept survey method which is able to reach a large segment of the population. A mall-intercept personal interview is a survey whereby respondents are intercepted in shopping in malls.So, according to mall intercept survey Data were collected from shopping malls located in Indore (Madhya Pradesh). The target population for this study consisted of active mall shoppers.

Sample Unit: The shopping malls of Indore.

Sample size: The target population for this study consisted of active mall shoppers and sample size was 100.

Sample Technique: Probability sampling technique had been adopted in the form of random

selection, with the help of Probability sampling technique we had choose the sample from

various Malls of different areas of Indore randomly, so that we can cover the sample respondents

who do shopping from malls.

The tools used for data collection: .

PRIMARY DATA: A structured questionnaire was developed to measure the buying decision making styles of Indian shoppers in the shopping malls. The questionnaire consisted of questions concerning customer decision making styles and demographic information of respondents. For this study some items were adapted from Consumer Style Inventory (CSI) developed by Sproles and Kendall .CSI items were adopted from various available articles. Some of these questions were five point Likert-type scales in which respondents were asked to indicate their level of agreement (1 = strongly disagree to 5 = strongly agree) and some questions were in nominal scale where respondents had to answer ( yes or no.). Lastly, the questionnaire also consisted questions to solicit demographic information of the respondents such as gender, age, household income and marital status. Questionnaire was hand carried and personally explained to respondents by us. The respondents were asked to fill Questionnaire completely.

Secondary Data – Detailed review of literature from secondary sources wouldProvide the base for identifying the domain, selection, designing and inclusion ofVarious measuring variables in the questionnaire for the study. We have also used various tools of secondary data which include below operations -

Management Book General Magazine

Management magazine National Journal International journals Internet

The tools used for data analysis: The Data has analyzed by ms-office software in which the ms-excel used for the different charts types and for tabulation of the data with the help of percentage analysis.

Chapter- III

Results & Interpretation

Is shopping from mall help to conserve your energy and time?

(1)YES (2) NO

60

40

yes no

Interpretation of above data:

According to the survey, 60% of Indian shoppers of particular Indore region was agreed that shopping from mall help to conserve your energy and time and 40% respondents of Indore was not agree that shopping from mall help to conserve your energy and time.

Which mall do you visit frequently in Indore for your shopping needs?

(1)TI (3) Central Mall

(2)Mangal city (4) C21 Mall

6020

10

10

TIMANGAL CITYCENTRALL MALLC21 Mall

Interpretation of above data:

According to the survey Indian shoppers have different choices of malls for shopping/visiting in particular Indore region, Above data of chart shows 60% of Indories like to go TI mall frequently for satisfying shopping needs,20% Mangal city,10% people like to go c21 and central mall.

Is shopping from malls more convenient as comparison to do shopping from local market?

(1)YES (2) NO

65

35

yesno

Interpretation of above data:

The respondents was asked to gave the answer of above question on nominal scale and 65% of respondents answered yes that that shopping from malls is more convenient as comparison to do shopping from local market. Butt 35% of respondents was not agree that shopping from malls is convenient.

How likely are you to make a decision to do shopping from malls?

1. Very likely 2. Quite likely 3. Neutral

4. Quite unlikely 5. Very unlikely

very likely quite likely

neutralquite unlikely

very unlikely

0

5

10

15

20

25

30

35

Interpretation of above data:

The respondent was asked the above question on likert scale by our instructions and than the result was 10% respondents was agree that they very much like to do shopping from malls,30% was agree that they quite likely to do shopping from malls and there was a big score in neutral option ,it was 35% of respondents which was not sure that from where they actually like to do shopping, whereas again 10% of respondents was agree on quite unlikely option and in last 15 %was not very much unlikely to do shopping from malls due to various reason.

Is shopping from malls give you pricing benefits with Quality and Brand?

(1)YES (2) NO

45

55

yesno

Interpretation of above data:

When the above question was asked to respondents than 55% of respondents was not agree that shopping from malls gives pricing benefits with quality and brand ,according to them retail shops of malls take more price as comparison to local market but on other side they were agreed that the retail shops of shopping mall provide brands and quality of products .On the other side 45% of respondents was agree that shopping from malls gives pricing benefits with quality and brand.

Do you always purchase a product from malls where number of variety is available?

1. Strongly agree 2. Strongly disagree 3. Neither agree nor disagree

4. Agree 5. Disagree

strongly agree stongly disagree

neither agree nor disagree

agree disagree0

5

10

15

20

25

Interpretation of above data:

In the above question one factor was used that is availability of variety of products and the result of this questions can help to managers of retail shops to attract the customers and the result is 15% respondent were strongly agree that they went malls for purchasing because in shopping malls there is an availability of number of varieties of products and brands, on the other side 20% of respondents were strongly disagree that only shopping malls have varieties of number is avalaible,but the overall result is that there were many respondents who was agree on that they always purchase products from shopping malls where number of variety is available.

Are you fascinated by the promotional activity done by different shopping mall?

1. Strongly agree 2. Strongly disagree 3. Neither agree nor disagree

4. Agree 5. Disagree

strongly agree stongly disagree

neither agree nor disagree

agree disagree0

5

10

15

20

25

Interpretation of above data:

Promotional activity plays a vital role to attract the potential customer and existing customer as well. So the above question is based on promotional activity and the result is 25% was strongly agreed that they fascinated by promotional activity done by malls and 10% was strongly disagreed.20% respondents was neither agree nor disagree that they are fascinated by promotional activity by different shopping malls. On the basis of scale 25% was agreed and 20% was disagree that they attracted towards the promotional activity.

What are the prime factors which affect the buying decision making style of yours from shopping mall?

1. Variety in product 2. Serviceability

3. Discount 4. Mode of payment

variety in products

serviceability discount mode of payment0

5

10

15

20

25

30

35

Interpretation of above data:

The above question was asked to respondents to score their prime factors which affect the buying decision making style of them ant the result is 35% respondent was agreed on prime factor of variety of products,20% was choose serviceability of shopping malls,15% of respondents had choose discount option and 30% was agreed on that mode of payment is most affecting factor but overall result of this question is obtained that variety in products plays a vital role in affecting decision making style of Indian shoppers.

What factors influence your buying decision making from malls?

1. Availability of range 2. Reasonable price

3. Customer service 4. Brand name

availability of range

reasonable price customer service brand name0

5

10

15

20

25

30

35

40

45

Interpretation of above data:

The respondent was asked to gave the scores on above option of given questions than 25% of respondents were agreed that they got influenced by the factor of availability of resources and 10% of respondents were agreed on reasonable price, 25% respondents get influence by customer services and a big score is obtained from brand name option and that is 40%.

Which kinds of products are more convenient to buy from shopping mall?

1. Foods and vegetables 2. Healthy &beauty products

3. Clothing & footwear 4. Home apparels & furniture

foods and vegetable healthy and

beauty products clothing and footwear home appliances

& furniture

0

5

10

15

20

25

30

35

Interpretation of above data:

According to survey the result is obtained of above question is that 10% of respondents were agreed that foods and vegetable is more convenient to buy from shopping malls. Whereas 30% respondents specially female was scoring high in health and beauty products as there are more conscious about healthy skin.25% respondents were agreed that clothing and footwear is convenient to purchase and 15% respondents was agreed on home appliances & furniture category.

What characteristics of yours influence you most to make buying decision from malls?

1.High quality conscious 2.Fashion conscious

3. Brand conscious 4. Shopping conscious.

high quality conscious fashion conscious

brand conciousshopping conscious

05

10152025303540

Interpretation of above data:

The above question related to the characteristics of respondents which influence most to make buying decision from malls was asked to them and the result is 30% of respondents were agreed that high quality conscious characteristics of them is most influencing, whereas 20% respondents were agreed on that they are fashion conscious, brand consciousness characteristic of respondent got the highest scores of 40% and in last 10% respondent was agreed that they are shopping conscious .

Does the buying decision making style of Indian shoppers is influence by age?

(1)YES (2) NO

55

45

yesno

Interpretation of above data:

Some question based on demographic variable were also asked by respondents for getting effective results and the above question is also related to one of those variable that is age and the result is 55% of respondent were agreed that buying decision making style influence by age and on other side 45% of respondents were not agreed that age factor is influence to make a buying decision from shopping malls.

Does the buying decision making style of Indian shoppers is influence by Gender factors?

(1)YES (2) NO

yes no0

10

20

30

40

50

60

70

80

Interpretation of above data:

The result of above question is 70% f respondents were agreed that buying decision making style of Indian shoppers is influence by age factor and on other side 30% was not agreed that age factor is actually influence the buying decision making. The overall result of this question is that there are many respondents who agreed that male and female have different taste and different choices.

Chapter- IV

Discussion & Interpretation of Results

Discussion & Interpretation of Results:

A structured questionnaire was developed to measure the buying decision making styles of Indian shoppers in Indore shopping malls. During survey we had choose different shopping malls of Indore and we randomly selected respondents in 100 sample size .The questionnaire consisted of questions concerning customer decision making styles, characteristics and demographic information of respondents. We gave instructions for completing the questionnaire and waited while respondent filled out the questionnaire.

Through the questionnaire we got an effective result in the form of some data and the overall result of this research report is that their is 55% of respondents who were agreed on that shopping from malls help to conserve energy and time because in shopping malls we can get variety of products and brands, you do not need to go from one place to another. Their were 45% of respondents who agreed that they do not get pricing benefits if they purchase from shopping malls but at the same time they get good quality and branded products. The main influencing factor and characteristics is obtained which influence and affect to the respondents more to make buying decision from shopping malls is brand consciousness. Normally respondents like to purchase cloths, apparels, healthy beauty products from shopping malls. Demographic variables like age and gender is also influence the customer choices and buying decision making style of Indian shoppers 70% of respondents were agreed on that gender factors influence buying decision making.

Chapter-V

Conclusion and Suggestions

CONCLUSION: The results clearly illustrate that Indian consumers have evolved since 1994 when the country was just beginning its policies of openness to trade and imports. Indian consumers are now more modern in their decision making in that they are more brand conscious and shop for novelty or recreation. The results demonstrate that globalization, indeed, does have a big impact on consumer decision making.

Hence, marketers and advertisers must realize that the mindset of the Indian consumer has changed in the last 15 years, and this change is likely to continue. Some demographic variables, consumer characteristics and different factors of CSI scale inventory also demonstrated their impact on consumer decision making. For example, the finding that consumers who are high quality conscious, brand conscious, fashion conscious & shopping conscious which is their own characteristics gives clues as to the forces that influence these shoppers.

So, I would to conclude this project, this certain demographic variables and characteristics of consumers will allow marketers to make a distinction of their offerings, both at the stores in malls as well as product level. Knowing how these different variables and characteristics can help marketers either influence them or use them to influence others. If some of the decision making groups are more susceptible to interpersonal influence, marketers can focus on this quality in how they persuade them to buy certain products or brands from shopping malls.

SUGGESTIONS: I would like to suggest that there are many more demographic variables like social, cultural, economical variables which need to be study and analysis for more appropriate and effective result. In future research sample size must be improved it could be more than 100 sample size which provides more effective data for analysis. In this research we only went at Indore shopping malls, in further research shopping malls of different city can be taken from different geographical areas of India to study on decision making styles of Indian shoppers.

Chapter VI

Implementation of study

Limitation of The Study:

There are several limitations that warrant future research. The study has been conducted inIndore city of Madhya Pradesh, India. The results of the same, if conducted in other part of the Country or other city of India may vary. It is because a country like India has geographically, economically, socially and culturally very different areas. This difference is too significant to be ignored. The sample consisted of only 100 active mall shoppers, In future research researcher can use big sample size. The small sample size is also error-prone.

Many respondents were mildly interested in the survey & were not eager to give me more time for the answer the questions.

Expected Contribution From Research:

Marketers and advertisers must realize that the mindset of the Indian consumer has changed in the last 15 years, and this change is likely to continue. Some demographic variables, consumer characteristics and different factors of CSI scale inventory also demonstrated their impact on consumer decision making style in Indore shopping malls. This study is come out with the prime factors and characteristics which influence the buying decision making of customers. Marketers and Managers of retail shops of different shopping malls can use these factors and characteristics for making effective strategies to grab the attention of potential customers as well as existing

customers.

Directions for Future Research: This study has been an attempt at examining various demographics variables, different characteristics & factors and their impact on buying decision making style of Indian shoppers in Indore shopping malls. In future research researcher can use big sample size and they can go for different malls of different cities. They can also do study on the people from urban area and rural area differ in their decision making styles inShopping malls and people from different geographical areas of India differ in their decisionMaking styles in shopping malls.

Chapter – VI

Annexure

Bibliography

Appendix

Bibliography

Handa Meenakshi , Khare Arpita : Need for uniqueness and consumption behaviour for luxury brands amongst Indian youth,:International Journal of Indian Culture and Business Management: Volume 3, Number 5/2010.

Ghosh piyali, Tripathi vibhut: International Journal of Services, Economics and Management, Volume 2, Number 2 / 2010   Pages:  121 – 136.

Hemalatha .M, Sivakumar V.J , Jayakumar G.S. David Sam: Volume 3, Number 6/2009, International Journal of Business Innovation and Research

Harold J. Lagroue III ,International Journal of Information and Decision Sciences, Volume 1, Number 2/2008 .

Wang H, An empirical study on using decision support systems to solve very large choice decision problems, International Journal of Management and Enterprise Development,Volume 1, Number 4/2004

Reynolds, Ganesh and Luckett 2002; Dennis, Marsland and Cockett 2001;Frasquet, Gil and Molla 2001; Wong, Lu and Yuan 2001; Bell 1999).

Das Neel, Burman Bidisha, Biswas Abhijit: Effect of discounts on search and shopping intentions: the moderating role of shopping environment :International Journal of Electronic Marketing and Retailing :Volume 1, Number 2/2006 .

Webliography

www.google.com

www.wikipedia.com

www.answer.com

www.eurojournals.com

www.emeraldinsight.com