ACKNOWLEDGEMENT

I am indebted to xxxxxxxxxx, division, xxxxxxxxxx. for giving me an opportunity to work as a summer project trainee in this esteemed organization. His knowledge and experience was a great motivating factor. This effort would not have been possible without his able, efficient, valuable and timely advice, insights and thoughts. I am very much thankful to sir for his valuable guidance and support.

I take this opportunity to express my heartfelt gratitude to my faculty guide Prof. Kailash ch. nayak, Faculty of Marketing, Niis Institute Of Business Administration, Biju Patnaik University Of Technology(BPUT). I am thankful to sir for his valuable support and guidance throughout the project.

I am also thankful to Mr.Pradeep Das, Direct sales, Godrej Appliance for his assistance and support, I am equally grateful to each and every member of Godrej & Boyce Mfg. Co. Ltd. ,Bhubaneswar for their whole-hearted co-operation in completing this project in stipulated time.

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I extend my sincere thanks to all Distributors, Wholesalers who helped me for my project.

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

DECLARATION

I, xxxxxxxxx of 1st Year xxxxx, xxxxxxxxx, Biju Patnaik University Of Technology(BPUT) , hereby declare that the project titled “Buying Behivabour of flats people of Varanasi” was done by me under the guidance of xxxxxxx, Faculty of Marketing, Biju Patnaik University, Mr. Niladri S. Chatterjee, Dy.Manager, Direct sales, Appliance Division, Godrej & Boyce Mfg. Co. Ltd, Bhubaneswar, during 27th June, 2009 to 14th August, 2009.

I also declare that this project has not been submitted for the award of any other degree, diploma, literature or recognition earlier.

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Place: Bhubaneswar Date: (Regn: 0806995043)

TABLE OF CONTENT

1.Executive Summary2.Introduction to project3.Introduction to the Project4.Buying an Appartment5.6.Consumer Buying Behaviour7.Data analysis & interpretation8.Findings9.Recommendation1o.Questionnaries

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11.References

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Executive Summary

(A) Project Title“Consumer Buying Behaviour of Appartments”.

(B) Project LocationReai Estate sites in Varanasi (C) Objectives

1.To know the reach of the Real Estate Managers in different organizations, institution, govt., homes etc and who is their competitor, who is the market leader etc.2. Describe the level of involvement and types of consumer problem-solving processes. 3.Recognize the stages of the consumer buying decision process.4. Explain how situational influences may affectthe consumer buying decision process.5. Understand the psychological influences that may affect the consumer buying decisionprocess.6. Be familiar with the social influences that affectthe consumer buying decision.

(D) Research Methodology

The research was mainly of primary research consisting of descriptive research and exploratory research. The secondary research consisted of literature search and Internet search.

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Introduction to Project

i. Scope of Project

The very purpose which the Developetr has laid down has given us enough guidelines to design the scope of the project. The project would discuss:

The market impression of Real Estate in different sectors, to find out the competitor and market leader in this category.

Which factor influence the selling, what consumer looks before they purchase the Appartment.

How Developer can increase the market share .

ii. Limitations

Retailers never had the luxury of time to offer, therefore our conversation was brief. It would be unfair if we fail to mention that, some retailers were very helpful and Cooperative.

The institution survey sometimes experienced reduced seriousness.

The no. of Real Estate Companies Apartment Developer and the ingredients they were using sometimes were given in approximation by the person answered as he/she was not the concerned authority.

The no. of sites surveyed might not be the correct representation of the market.

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iii. METHODOLOGY

I did my project in two phases one was exploratory survey and other was descriptive survey.

Exploratory Research

Exploratory Research was done before I started my descriptive research in order to get the detailed idea about the consumer appliances industry. This was also necessary for finding about the data related to the other brands in appliance. Some of the main objectives for doing Exploratory Research are mentioned below:

Study of literature published on consumer appliance industry.

Identifying competitors and their details.

Research on innovations of other brands in appliance segment.

Observation of display of merchandise and in-store promotions of other brands.

In depth interview of retailers and the company representative.

Descriptive Research

Descriptive research was done in Bhubaneswar over one month. This was done using the structured questionnaire.

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INTRODUCTIONTO

BUSINESS

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Buying a house is one of the most important decisions of life for most of the people…this is so because most of

the people in our country who buy a house does so only once or twice in their life time…house is one product which consumes a

large portion of of one’s lifetime income.

 Inspite of it being such an important decision, the consumer

buying behavior in case of a housing property is not that much

evolved…the consumer buying behavior is more evolved in case

of buying a TV / Music system than in case of buying a house…

Most of the home buyers, while buying the house focus on only 4 aspects – 1. BUDGET…2.

LOCATION….3. NUMBER OF ROOMS / SIZE OF THE HOUSE…4. TYPE OF HOUSE…lets have a look

at these ‘very obvious’ aspects that people look at, while buying a house.

Buying an Apartment

Apartments enjoy a prestigious reputation synonymous with vibrant city living, stylish

open-plan space and great views. But choosing and buying an apartment can be an

arduous task, and there are plenty of things you need to think about at each and every

stage of the investment process. The issues you need to consider when buying an

apartment are often fundamental to the unique apartment experience, so it's a good idea to

really get to grips with your chosen property type before hitting the streets in search of

your perfect pad. This guide will help to highlight those key points you need to be

thinking of at each and every stage of your quest for the perfect apartment.

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Before you Begin

Spend some time thinking about the kind of apartment you're looking for. This will help

you narrow down your options and enable you to determine some 'must haves' in your

apartment choices. Why not designate a file or specific notepad for relevant ideas, lists,

notes and criteria to help you organise your ideas? This could really help you keep on top

of your thoughts during the planning, hunting, viewing and buying process. You might

want to keep the following in mind when narrowing down your apartment choices:

Location, Location, Location! - Narrow down the areas that you are most

interested in living in, and make a list of these locations. Similarly, make a note of

all the areas you definitely don't want to live. This way, any agents you approach

will know straightaway which properties to offer and which to discard. This

process will help narrow down your search area and save you time when both

searching and viewing.

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

budget – narrowing down your search field in this way will ensure that you only

view properties you can afford! Don't forget to bear in mind your income and

outgoings – factoring in bills and general living expenses will help you be more

realistic about your options.

Space - How much space will you need in your apartment? How many

bedrooms? How big a kitchen? Do you need an office? Set yourself some rough

criteria for potential properties, so you can present your checklist to estate agents

and help them to search for properties more effectively.

Style - Estate agents use certain design terms with which you need to be familiar

when searching for your apartment: Studio apartments merge all your living space

into one area, while open-plan design means that your kitchen, dining area and

living room will be contained in one open space. Consider your thoughts on these

styles of apartment – do you want separate rooms within the apartment? Would

studio living be too cramped for you?

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Specifics - Are there certain criteria on which you are unwilling to compromise?

Do you want wooden floors? High ceilings? An open-plan design? Designated

parking spaces?

Finding your apartment

So, you've narrowed down your options: location, budget, apartment size and must-haves

– now it's time to start searching! More and more properties are being listed on the

internet, so why not get online and start searching? Here is where those decisions about

your specific requirements will come into their own and really help you search quickly

and effectively. Search engines within estate agency websites will allow you to input the

number of bedrooms you're looking for, your maximum budget, and even the specific

location you're interested in. Searching in this way is quicker and more efficient than

pounding the streets from agency to agency, and many sites will have photographs

included in the property profile, allowing you to narrow down those properties that you

like the look of.

When you find an apartment you're interested in, simply contact the agency to book a

viewing. Time is of the essence! Apartments are increasingly popular and the property

market can move very quickly. Arrange viewings at your earliest convenience while

keeping an eye on the property listings for new additions.

Viewings

Viewing those apartments you're interested in can be both an exciting and a laborious

task. If you're experiencing the former, that's great, but finding your new home should be

fun, but don't let your enthusiasm blind you to important decisions and issues when

viewing potential properties. If you're suffering from the latter: don't give up! If you're

struggling to find your ideal property, consider revising your original criteria slightly,

offering you more apartment options. A top tip when you're viewing lots of apartments in

different areas is to take a notebook, tape measure and even a digital camera. This way

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you can look over your 'potentials' when you get home without confusing properties,

forgetting important details or risking those rose tinted spectacles! Notes and photos will

really help jog your memory, and remind you of those points you were concerned or

ecstatic about during your viewing. Here are some more top considerations to bear in

mind when viewing your potential apartment:

Location - On your route to the apartment, take in your surroundings. Are there

shops and amenities nearby? How do you feel about the neighbourhood? How

convenient are the transport links?

Security - Consider your surroundings long before you step through your

potential apartment's front door. How easy is it to gain access to the main

building? Is there an intercom system? Is it working? Is the area well lit? Consider

your first impressions carefully – do you feel safe? If you have a car, will it be

secure?

Communal Space - Apartments must be considered in light of the space you will

be sharing with others in the building. How clean is the communal space

(stairways, lifts, garden space)? Does the building look cared for?

Inside the Apartment - Imagine yourself in the apartment space. Can you see yourself

living in the space available? If you have furniture, will it fit? (Here's where your tape

measure comes in!) How easy will it be to move your furniture into the apartment? Are

you overlooked by adjacent buildings?

Things to Look Out For

While the above points are vital for a successful property viewing, there are a few further

points you need to be aware of when viewing an apartment. Apartment living can come

hand in hand with unique property issues that can work both for and against you. Try to

bear in mind the following apartment-specific considerations as you view properties.

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

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

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

those living above and below as well as next-door to your property. A week into

your new apartment-life is not the time to discover a neighbour's penchant for

heavy metal or playing the drums!

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

those who will be visiting you at home – are there people for whom access could

be a problem? Is there a functional lift for older visitors or family? Simple

considerations such as shopping trips may help you to better envisage the

practicalities of apartment life.

Outside Space One of the major sacrifices of apartment living can be the loss of

outdoor space. Consider this sacrifice carefully, and if you find the loss too

daunting, ask your agent about apartments with balconies, roof terraces or even

shared gardens. Alternatively, check the surrounding areas for public parks or

footpaths.

Pets If you have pets, consider them in your property search. This can be a major

consideration for those wishing to move into an apartment, as you must be fair to

both your pets and your neighbours. Is your dog's barking likely to irritate

neighbours? Will you be able to give the pet adequate fresh air and exercise?

When you've found an apartment you're really interested in, you may want to have a

survey carried out on the property to ensure there are no hidden problems which may

affect your interest. These surveys offer you peace of mind should you finally decide to

put in an offer, and can help you to avoid making an unsound investment. Once you're

satisfied that the property is up to standard, you're free to make an offer.

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ATTITUDE OF CUSTOMERS

The attitude of Indian consumers has undergone a major transformation over the last few

years. The Indian consumer today wants to lead a life full of luxury and comfort. He

wants to live in present and does not believe in savings for the future. The people of

metro are open to the idea of consumption and a better lifestyle. The Indian middle class

has provided a big boost to the consumer culture during the recent past and it is hoped

that their buying behaviour will continue to change in the coming future. The factor that

has led to the growth of the middle class is an increase in their income level due to high

rate of industrialization, growth of services sector and better employment opportunities.

The size of the middle class is growing rapidly and today it stands at 30% of the total

population as per the statistics provided by the National Council of Applied Economic

Research (NCAER). Due to fast growth of the services sector per capita income of people

of India is also increasing. The number of middle class is increasing due to another fact

that people are fast shifting from agriculture to the services and industry sector where

growth prospects are reasonably high as compared to the agriculture sector which is

showing slow growth these days.

The consumption pattern of a country depends on liberalization of economic policies,

buying habits of the younger generation, financial independence at a young age, increase

in number of nuclear families and increase in media exposure of the people. The tastes

and preferences of the current generation are changing rapidly. The current generation

does not mind paying extra for better facilities and ambience. Another major factor that

has led to increased consumerism is the growth of credit culture in India. The Indian

consumer does not feel shy to purchase products on credit and pay tomorrow for what

they use or buy today. This tendency has led to a tremendous increase in purchase of

homes, cars, two-wheelers and consumer goods. The market for luxury products in India

is also climbing at an astonishing rate as compared to a decade ago when it was almost

negligible. The increasing number of luxury cars and imported cars is a clear indication

of the rise in this trend. 20 years back diamonds were confined to the royal households

only, but today diamond is easily in the reach of the middle class. The reason behind this

is that the purchasing power of people of India is rising very steeply.

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The Indian consumer today is highly aware about the product, price, quality and the

options available with him. The purchasing is done by keeping all these factors in mind.

Today, price is not the only consideration as it was a few years back when prices played a

major role in purchasing.

Uniqueness of the consumers

The Indian consumers of today are unique in the following respects:

1) Indian consumers have become value sensitive and are not much price sensitive as was

the case earlier. If they feel that a particular product offers them more value and its price

is high, even then they are willing to buy the product.

2) The Indian consumers strictly follow their culture, tradition and values, as a result of

which foreign companies were forced to give an Indian touch to them in order to succeed

in India. McDonalds, MTV, Pepsi, Star TV, Coca Cola India and many more had to

Indianise themselves to flourish in India. Karva Chauth is celebrated with more zeal and

enthusiasm than the Valentine Day.

3) The Indian consumer of today gives preference to features of a product rather than its

brand name. The trend that higher segment consumers only buy the top brands has also

come to an end.

4) Even after liberalization Indian companies and brands are doing very well. It is clearly

evident from the fact that despite many foreign brands being sold in India, Raymond is

still India’s largest textile company and Haldiram is doing well despite the presence of

McDonalds and Pizza Hut.

5) The consumers today are not confined to a single brand and prefer change rather than

sticking to the same brand. Not often do we see any home with cars of the same brand or

household products of the same brand.

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6) The use of credit card for shopping is a new emerging trend in India. Also consumers

are availing credit or loan from banks and other financial institutions to fulfill their needs

and wants.

7) The Indian consumers are spending thick and fast on premium and luxury products.

8) The Indian consumers have shown another major change in their buying behaviour.

They just don’t want availability of products, they also want better experience, services

and ambience. This has led to the growth of shopping malls where shopping,

entertainment and better facilities are all available under one roof.

9) The rural Indian consumers are also showing signs of change. They have all the

modern amenities at their home and their standard of living is fast improving. The rural

households have earned huge money due to price rise in real estate. They are also shifting

towards industrial and services sector, hence their purchasing power is increasing. It is

reflected in their living standard and possession of all electronic gadgets and luxury cars.

10) There is a stiff competition in the Indian market today and it has become a buyer’s

market from seller’s market. Customers are the ultimate beneficiary of the fierce

competition in the market. Competition has reduced prices to a great extent and has

forced the manufacturer to maintain product quality to sustain in the highly competitive

market.

MARKET STRATEGIES

Change in marketing strategies of companies with change in consumer buying behaviour

With change in consumer buying behaviour the companies also made necessary changes

in their marketing strategies. The changes include:

1) Launching of premium products by companies to fulfill requirements of high class

consumers.

2) Since purchasing power of rural India has increased, the companies have started

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shifting their focus towards rural India to capture untapped rural market. This has reaped

huge benefits for companies like in cases of PepsiCo, Coca Cola India and other FMCG

companies.

3) Companies not only aim to sell their products but also aim to provide better after sales

services to its consumers. For example companies have provisions to send their

technicians to repair the cars struck at highways or other outer locations due to technical

failure or in case of a mishap. This improves the company’s credibility and helps to build

its customer base.

4) Companies design their products on the basis of market segmentation so that they have

products to suit every pocket and requirement.

5) Due to sharp growth in the communication sector, companies are providing many

schemes and plans to attract customers. For example mobile service providers provide

lifetime option and free calls to other mobile users under a specific plan of the company.

6) Due to fierce competition in the electronics market and people’s willingness to

purchase hi-tech products the rates of LCD and plasma TVs have been slashed by 25%-

30%. Through this strategy electronic companies received very good response from the

consumers in the recent past and were able to build a considerable market for their

products.

7) Indian consumers have developed a liking for foreign tours and holidays. This has led

to development of many travel agencies that provide a planned foreign tour at a

reasonable price. What is even more interesting is that the customer does not have to pay

the amount in lumpsum, instead, he has the facility to make the payment in monthly

installments according to his convenience.

8) Consumers of India have developed a tendency to save travel time. For such

consumers low fare or low cost carriers are available that provide air travel facility at a

very affordable price.

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9) Consumers of India want better housing facilities. The construction companies are

fulfilling this requirement of consumers by providing them luxurious houses, exquisite

interiors, round the clock water and electricity supply, full time security, club house,

gymnasium, etc. within the premises.

10) Indian consumers are increasingly becoming aware of the importance of health and

hygiene. Hence companies are making products to suit their health like low calorie, low

fat food. As far as hygiene is concerned companies have fully mechanized their plants to

maintain hygiene and pack the food in such a way that it remains fresh for longer period

of time and does not lose its nutritive value before consumption.

11) The need for internet is fast growing. To fulfill this need of consumers, mobile

manufacturing companies are providing internet access facility on mobile phones. This

has revolutionized the communication sector and provided a means of communication

that was never ever in anybody’s dreams till a few years back.

12) Indian consumer’s liking for credit is also increasing rapidly. Hence many financial

institutions have come into existence in India and are flourishing. Banks have also

become liberal in their loan and credit policies.

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Values of the DEVELOPER

Commitment to Quality Customer Orientation

Dedication & Commitment Discipline

Honesty & Integrity Learning Organisation

Openness & Transparency Respect/Care & Concern for People

TeamworkTrust

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Consumer Buying Behaviour

Possibly the most challenging concept in marketing deals with understanding why buyers do what they do (or don’t do). But such knowledge is critical for marketers since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decision-making. Using this information, marketers can create marketing programs that they believe will be of interest to customers.

As you might guess, factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make things more interesting. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made. But those who have spent many years analyzing customer activity have presented us with useful “guidelines” in how someone decides whether or not to make a purchase.

In fact, pick up any textbook that examines customer behavior and each seems to approach it from a different angle. The perspective we take is to touch on just the basic concepts that appear to be commonly accepted as influencing customer behavior. We will devote two sections of the Principles of Marketing tutorial to customer behavior. In this section we will examine the buying behavior of consumers (i.e., when people buy for personal reasons) while in section 4 we will examine factors that influence buyer’s decisions in the business market.

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This tutorial includes the following topics:

1. Consumer Buying Behavior

2. Types of Purchase Decisions

3. Why Consumers Buy

4. What Influences Purchasing

5. Internal: Perceptual Filter

6. Internal: Knowledge and Attitude

7. Internal: Personality and Lifestyle

8. Internal: Roles and Motivation

9. External: Culture and Groups

10. External: Situation

11. How Consumers Buy

12. Purchase Decision Steps 1 and 2

13. Purchase Decision Steps 3, 4 and 5

Types of Consumer Purchase DecisionsConsumers are faced with purchase decisions nearly every day. But not all decisions are treated the same. Some decisions are more complex than others and thus require more effort by the consumer. Other decisions are failry routine and require little effort. In general, consumers face four types of purchase decisions:

• Minor New Purchases – these purchases represent something new to a consumer but in the customer’s mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group).

• Minor Re-Purchases – these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty).

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• Major New Purchases – these purchases are the most difficult of all purchases because these are important to the consumer but the consumer has little or no previous experience making the purchase . This type of decision often (but not always) requires the consumer to engage in an extensive decision-making process.

• Major Re-Purchase - these purchase decisions are also important to the customer but the customer feels more confident in making the decision since they have experienced purchasing the product in the past.

For marketers it is important to understand how consumers treat the purchase decisions they face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company targeting customers who view the purchase decision as routine. In fact, the same company may face both situations at the same time; for some the product is new, while other customers see the purchase as routine. The implication of buying behavior for marketers is that different buying situations require different marketing efforts.

Why Consumers BuyAs we discussed in Part 1: What is Marketing?, customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet (e.g., food, shelter) while others are not required for basic survival and vary depending on the person. It probably makes more sense to classify needs that are not a necessity as wants or desires. In fact, in many countries where the standard of living is very high, a large portion of the population’s income is spent on wants and desires rather than on basic needs.

In this tutorial when we mention the consumer we are referring to the actual buyer, the person spending the money. But is should also

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be pointed out that the one who does the buying is not necessarily the user of what is bought and that others may be involved in the buying decision in addition to the actual buyer. While the purchasing process in the consumer market is not as complex as the business market, having multiple people involved in a purchase decision is not unusual. For example, in planning for a family vacation the mother may make the hotel reservations but others in the family may have input on the hotel choice. Similarly, a father may purchase snacks at the grocery store but his young child may be the one who selected it from the store shelf.

So understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases.

What Influences Purchasing

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

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For the purposes of this tutorial we will break these influences down into three main categories: Internal, External and Marketing. However, those interested in learning more about customer buying activity may want to consult one or more consumer behavior books where they will find additional methods for explaining consumer

buying behavior.

For the most part the influences are not mutually exclusive. Instead, they are all interconnected and, as we will see, work

together to form who we are and how we behave.

For each of the influences that are discussed we will provide a basic description and also suggest its implication to marketers. Bear in mind we only provide a few marketing implications for

each influence; clearly there are many more.

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INTERNAL INFLUENCESWe start our examination of the influences on consumer purchase decisions by first looking inside ourselves to see which are the most important internal factors that affect how we make choices.

Perceptual FilterPerception is how we see ourselves and the world we live in. However, what ends up being stored inside us doesn’t always get there in a direct manner. Often our mental makeup results from information that has been consciously or unconsciously filtered as we experience it, a process we refer to as a perceptual filter. To us this is our reality, though it does not mean it is an accurate reflection on what is real. Thus, perception is the way we filter stimuli (e.g., someone talking to us, reading a newspaper story) and then make sense out of it.

Perception has several steps.

• Exposure – sensing a stimuli (e.g. seeing an ad)

• Attention – an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)

• Awareness – assigning meaning to a stimuli (e.g., humorous ad for particular product)

• Retention – adding the meaning to one’s internal makeup (i.e., product has fun ads)

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

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

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

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

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

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

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Personality

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

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

Lifestyle29

This influencing factor relates to the way we live through the activities we engage in and interests we express. In simple terms it is what we value out of life. Lifestyle is often determined by how we spend our time and money.

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

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

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

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

Marketing Implication:Motivation is also closely tied to the concept of involvement, which relates to how much effort the consumer will exert in

making a decision. Highly motivated consumers will want to get mentally and physically involved in the purchase process. Not all

products have a high percentage of highly involved customers (e.g., milk) but marketers who market products and services that may lead to high level of consumer involvement should prepare

options that will be attractive to this group. For instance, marketers should make it easy for consumers to learn about their product

(e.g., information on website, free video preview) and, for some products, allow customers to experience the product (e.g., free

trial) before committing to the purchase.

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EXTERNAL INFLUENCESConsumer purchasing decisions are often affected by factors that are outside of their control but have direct or indirect impact on how we live and what we consume.

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

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

Other Group Membership32

In addition to cultural influences, consumers belong to many other groups with which they share certain characteristics and which may influence purchase decisions. Often these groups contain opinion leaders or others who have major influence on what the customer purchases. Some of the basic groups we may belong to include:

• Social Class – represents the social standing one has within a society based on such factors as income level, education, occupation

• Family – one’s family situation can have a strong effect on how purchase decisions are made

• Reference groups – most consumers simultaneously belong to many other groups with which they associate or, in some cases, feel the need to disassociate.

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

SituationA purchase decision can be strongly affected by the situation in which people find themselves. Not all situations are controllable, in which case a consumer may not follow their normal process for making a purchase decision. For instance, if a person needs a

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product quickly and a store does not carry the brand they normally purchase, the customer may choose a competitor’s product.

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

How Consumers BuySo now that we have discussed the factors influencing a consumer’s decision to purchase, let’s examine the process itself. This process is presented in a sequence of 5 steps as shown below.

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

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1. Need/Want/Desire is RecognizedIn the first step the consumer has determined that for some reason he/she is not satisfied (i.e., consumer’s perceived actual condition) and wants to improve his/her situation (i.e., consumer’s perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the consumer that food or drink is needed. External factors can also trigger consumer’s needs. Marketers are particularly good at this through advertising, in-store displays and even the intentional use of scent (e.g., perfume counters). At this stage the decision-making process may stall if the consumer is not motivated to continue (see Motivation above). However, if the consumer does have the internal drive to satisfy the need they will continue to the next step.

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

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3. Evaluate OptionsConsumers’ search efforts may result in a set of options from which a choice can be made. It should be noted that there may be two levels to this stage. At level one the consumer may create a set of possible solutions to their needs (i.e., product types) while at level two the consumer may be evaluating particular products (i.e., brands) within each solution. For example, a consumer who needs to replace a television has multiple solutions to choose from such as plasma, LCD and CRT televisions. Within each solution type will be multiple brands from which to choose. Marketers need to understand how consumers evaluate product options and why some products are included while others are not. Most importantly, marketers must determine which criteria consumers are using in their selection of possible options and how each criterion is evaluated. Returning to the television example, marketing tactics will be most effective when the marketer can tailor their efforts by knowing what benefits are most important to consumers when selecting options (e.g., picture quality, brand name, screen size, etc.) and then determine the order of importance of each benefit.

4. PurchaseIn many cases the solution chosen by the consumer is the same as the product whose evaluation is the highest. However, this may change when it is actually time to make the purchase. The “intended” purchase may be altered at the time of purchase for many reasons such as: the product is out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store salesperson mentions a competitor’s offer), the customer lacks the necessary funds (e.g., credit card not working), or members of the consumer’s reference group take a negative view of the purchase (e.g., friend is critical of purchase). Marketers whose product is most desirable to the consumer must make sure that the transaction goes smoothly. For example, Internet retailers have worked hard to prevent consumers from abandoning online purchase (i.e., online

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shopping carts) by streamlining the checkout process. For marketers whose product is not the consumer’s selected product, last chance marketing efforts may be worth exploring, such as offering incentives to store personnel to “talk up” their product at the checkout line.

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

As we’ve seen, consumer purchasing is quite complex.

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FUTURE TRENDS OF CONSUMER BEHAVIOUR

Some emerging future trends of buying behaviour of Indian consumers are:

1) The new generation will prefer brands that are launched during their growing up years.

They will not prefer brands that are very old in the market. This will make it easier for

new brands to cement their place in the market and run successfully.

2) The new generation will possess more risk taking capability and their previous

generations. They will be willing to try out new careers, new ideas and new ways of

doing things.

3) Indian consumers will be more logical in their thinking and foreign brands will not

only be considered as the standard of quality. Each brand, be it Indian or foreign, will be

judged on its merit.

4) The middle and lower class consumers’ buying behaviour will change and they may

behave as if they are rich.

5) The contribution of women in decision making will increase with growing number of

nuclear families, educated women and working women. The number of middle class

working women will rise sharply. This will lead to introduction of women oriented

products that may range from insurance products to vocational education.

6) Tomorrow’s consumer will focus more on technology and credit purchase.

7) Number of nuclear families will increase.

8) Health care will become very important in the coming years.

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Conclusion

From above analysis it is very clear that Indian consumers’ buying behavior and their

attitude have changed drastically in the recent past. One thing is for sure that the pace of

change in the needs, desires and wants of the Indian consumers will be even steeper and

will further change drastically in the near future.

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DATA ANLYSIS OF CONSUMER SURVEY

Q1. Are you going to purchase an Appartment ?

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

Customer Yes No

58% 42%

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Q2. Hoe many bedrooms you require?

Videocon LG Samsung Sony Goderj

Customer preference

b

Two Three Four Duplex

16% 35% 22% 27%

From the above diagramTHREE bedroom is most preferable..

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Q3. Which factors influence you to purchase a product? Price, Service,

Brand image, Features,Influence by other,

Reason for purchasing a product

Price Service

Brand image

Features

Influence by

others28 18 22 20 12

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

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FINDING

After completing the survey and analyzing the responses of the persons , we came across the following facts: -

A large number of consumers are preferring the three bedroom flats.

Majority of the respondents in the survey were found reluctant about giving details to us.

Existing customers of Apartments are satisfied with the services, with few exceptions.

Customer think that Developer name of can influence their purchase decision.

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RECOMMENDATIONS

Based on our descriptive research on retailers and institution in the Bhubaneswar market we have some recommendations for Company. Also through whole project duration we did some observational study and literature review and we found that there are some factors which can help the company to build a brand in national market.

Some of the recommendations are as follows:-1) Company should organize free checkup camp for big institution

like educational institution, hotels and hospitals, so that it will increase the loyalty of the institution.

2) Company should give Quotation for different slabs of different quantity at the best possible price for consolidated quantity.

3) Competitors are giving the appliance in credit, which is one of the main factors which determine the purchase. Developers take post dated cheque from the customers. .

4) Palm plate should be distributed with business newspaper and other popular newspaper.

5) The company should position itself as a life style Brand through advertisement in leading newspaper.

6) Company gives more emphasis on heavy advertising.

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Questions for the survey

INSTITUTION NAME: LOCATION:

Dear Sir/madam, I am a MBA student from xxxxxxxxxxxxxxxxxxxxxxxx, Varanasi and doing a project on Consumer Buying Behaviour of Flats. Your response is highly valuable. I would be grateful if you could help me by filling it up honestly and legitimately. I assure that any information provided will be solely used for academic purpose and will be kept confidential. No answers are right or wrong; give the answers which you feel are the best.

Consumer buying behavior / need analysis on appliances

We would be thankful if you share some of your valuable opinion regarding the following questionnaire.

NAME: CONTACT NO:

AGE: ADDRESS:

OCCUPATION:

1. Family size

Less than 4 members ( ) 4-6 members ( )

More than 6 members ( )

2.Which bedroom type apartment will you prefer?

Three four two duplex

3. Do you know about apartments Act

Yes No

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

Brocker ( ) Direct marketing ( ) Developer( )

5. Which factor influences you to purchase appartments?

Company brand name ( ) promotional activities ( )

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Product feature ( ) price ( )

Service ( ) influence by other ( )

6. Satisfaction level with your apartment service?

Extremely unsatisfied ( ) somehow unsatisfied ( )

Satisfied ( ) somehow satisfied ( )

Extremely satisfied ( )

7. Which location do you like the bestt?

Lanks ( ) Sigra ( ) Gauriganj ( )

Bhelupur ( ) OTHER ( )

8. View about Apartments?

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REFERENCES

1. Kotler, Philip and Keller, K.L. (2007), “Marketing management2.Electronic Reference: Official website of GODREJ

www.godrej.comwww.godrejappliances.com

www.godrejdirect.com3. Electronic Reference:

http://.wikipedia.org/wiki/Bhubaneswar4. Electronic Reference:http://www.google.com

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