A STUDY ON CONSUMER BUYING BEHAVIOR NICROME LEATHER PROCESSING

INDUSTRY AT COIMBATORE

INTRODUCTION:

Marketing is the moving and exciting activity in everybody activities. The sellers,
distributors, advertising agencies, consultants, transporters, financers, store agencies and every
one as a counter are part of the marketing system. Any exchange process be it consumer, goods,
intermediary goods, services of ideas, comes under the preview of marketing. It is very often
regarded that the development of markets and marketing is synonymous with the economic
development of account. Through marketing is an action discipline. In the ever-growing
corporate world, marketing is being regarded as a crucial element for the success of an
Enterprise.

The marketing discipline is undergoing fresh re appraisal in the light of the vast global,
technological, economic and social challenges facing today’s companies and countries. Marketing
at its best is about value creation and raising the world’s living standards. Today’s winning
companies are those who succeed most in satisfying, indeed delighting their target customers.

As quoted by P.P.Drucker “Marketing is so basic that it cannot be considered a separate

function. It is whole business seen from the point of view of its final result, that is, from the
customer’s point of view. Business success is not determined by the producer but by the
customer”.

Philip Kotler has therefore defined marketing as “it is a social and managerial process by
which individuals and groups obtain what they need and want through creating, offering and
exchanging products of values with others”. Many Indian companies espouse a satisfied
customer philosophy and describe marketing as customer-satisfaction engineering. Since the
economy in this country has changed from a primary condition of scarcity to gradual and steady
stage of affluence, largely giving consumers the opportunity to choose among many varied
alternatives, satisfaction has become a major concern of business.
INTRODUTION TO CONSUMER BEHAVIOR:

One thing that we have in common is that we all are consumers. In fact
everybody in this world is a consumer. Every day of our life we are buying and
consuming an incredible variety of goods and services. However, we all have
different tastes, likes, dislikes, and adopt different behavior patterns while making
purchase decisions.

The term consumer behavior refers to the behavior that consumers display in
searching for purchasing using evaluation and disposing in searching for
purchasing using evaluating and disposing of products and services that they exact
will satisfy o how individuals make decisions to send their available resources
(time, money and effort) on consumption related items. It includes the study of
“What they buy”, ”Why they buy”, “When they buy it”, “Where they buy it”, “how
often they buy it” and “how often they use.

DEFINITIONS:

Consumer Behavior (or Buyer Behavior) is broadly defined by various

scholars & researchers as:

1. It’s the behavior displayed by the consumers during the acquisition,

consumption and disposition of products, services, time and ideas by
decision making units.
2. It is the body of knowledge which studies various aspects of purchase and
consumption of products and services by individuals with various social and
psychological variables at play.
 3. The behavior that the consumers display in searching for, purchasing, using,
evaluating and disposing of products and services that they expect will
satisfy their needs.
4. The process and activities people engage in when searching for, selecting,
purchasing, using, evaluating, and disposing of products and services so as
to satisfy their needs and desires.
5. The activities directly involved in obtaining, consuming, and disposing of
products and services, including the decision processes that precede and
follow these actions.
6. The American Marketing Association (AMA) defines consumer behavior as
“The dynamic interaction of cognition, behavior & environmental events by
which human beings conduct the exchange aspect of their lives.

Consumer behavior is helpful in understanding the purchase Behavior and

preferences of different consumers. As consumers, we differ in terms of sex age,
education, occupation, income, Family setup, religion, nationality and social
status. Because of this different background factors, have different needs and we
have only buy those products and services, which we think, will satisfy our needs.

A MODEL OF CONSUMER BEHAVIOUR:

A consumer decisions to purchase a particular product of service is the result

of complex interplay of a number of variables. The starting point of the decision
process is provided by the company’s marketing stimuli in the shape of product,
promotion, price and distribution strategy. Consumer often purchases new products
that are associated with a favorable viewed brand name.

The term consumer behavior refers to the behavior that consumer display in
searching for purchasing, using, evaluating and disposing of products and services
that they expect will satisfy these needs. The study of consumer behavior in the
study of how individuals make decisions to spend their available resources (time,
money, effort) on consumption related items. It includes the study of “what they
buy”, “why they buy”, “when they buy”, “where they buy”, “how often they buy”
and “how they use”.

MODEL OF CONSUMER
Consumer
Marketing Other stimuli BEHAVIOUR
Decisions
stimuli

Product
Choice
Product Economic
Brand
Price Technological
Choice
Place Political
Dealer
Promotion cultural Consumer Consumer
choice
Characteristics Decision
Purchasing
Process
Timing
Cultural Problem
Purchasing
recognition
Amount
Social Information
Personal Search
Psychological Evaluation
Decision
post
Purchase
Behavior.
 DETAILED MODEL OF

FACTORS INFLUENCING CONSUMER BEHAVIOR

Cultural
Factors

Social
Factors
Culture
Reference Personal
groups Factors
Sub
Age and Life Psychological
Culture
Cycle
Family Factors
Occupation
Economic Motivation
Social
Circumstances
Class Perception
Lifestyle
Roles & Personality Learning Buyers
Status and Self
Beliefs and
Concept
Attitudes

CULTURAL FACTORS:

Culture: Culture is the most fundamental determinant of a persons wants and

behavior like set of values, perceptions, preferences and behaviors through his or
her family member.
Subculture: social classes are relatively homogeneous and enduring divisions in a
society which are hierarchically ordered and whose members shares similar
Values, interest and behavior and social classes includes upper class, middle class
and lower class.

SOCIAL FACTORS:

References Groups: A persons reference groups consist of all the groups that have
a direct (face to face) are indirect influence on the persons altitude or behavior.
This group to which the person, belongs and interacts.

Personal Factors: A consumer decision also influenced by personal characteristics

notably the buyers age & life cycle stage, occupation, economic circumstances,
life style and personality and self concept.

PSYCHOLOGICAL FACTORS:

Motivation: A person has many needs at any given time. Some needs are biogenic.
They arise from psychological states of tension such as hunger, tryst and
discomfort.

Perception: Perception is defined ass “the process by which an individual selects,

organizes, intercepts, information, inputs to create a meaningful picture of the
world.
FACTORS INFLUENCING THE BEHAVIOR OF BUYERS.
Consumer behavior is affected by many uncontrollable factors. Just think, what
influences you before you buy a product or service? Your friends, your upbringing, your culture,
the media, a role model or influences from certain groups?
Culture is one factor that influences behavior. Simply culture is defined as our attitudes
and beliefs. But how are these attitudes and beliefs developed? As an individual growing up, a
child is influenced by their parents, brothers, sister and other family member who may teach
them what is wrong or right. They learn about their religion and culture, which helps them
develop these opinions, attitudes and beliefs (AIO) . These factors will influence their purchase
behavior however other factors like groups of friends, or people they look up to may influence
their choices of purchasing a particular product or service. Reference groups are particular
groups of people some people may look up towards to that have an impact on consumer
behavior. So they can be simply a band like the Spice Girls or your immediate family members.
Opinion leaders are those people that you look up to because your respect their views and
judgments and these views may influence consumer decisions. So it maybe a friend who works
with the IT trade who may influence your decision on what computer to buy. The economical
environment also has an impact on consumer behavior; do consumers have a secure job and a
regular income to spend on goods? Marketing and advertising obviously influence consumers in
trying to evoke them to purchase a particular product or service.
People’s social status will also impact their behavior. What is their role within society?
Are they Actors? Doctors? Office worker? And mothers and fathers also? Clearly being parents
affects your buying habits depending on the age of the children, the type of job may mean you
need to purchase formal clothes; the income which is earned has an impact. The lifestyle of
someone who earns £250000 would clearly be different from someone who earns £25000. Also
characters have an influence on buying decision. Whether the person is extrovert (out going and
spends on entertainment) or introvert (keeps to themselves and purchases via online or mail
order) again has an impact on the types of purchases made.
NEED OF THE STUDY
 For academic purpose, as it is a part of the curriculum, in partial fulfillment of Master
degree in Business Administration,
 In this era of high competition and rapid changes, the Consumer buying behavior are
known to be one of the main factors to contribute for a successful performance and to
attain competitive advantage.
 The main purpose of the study is to gain practically knowledge on the role of Consumers
buying behavior in an organization.
 The purpose of the project is to study the importance of the Consumers buying behavior
in the organization.
 To study and analyze the various Consumers buying behavior in the organization.

SCOPE OF THE STUDY

 The area of the study has been confined to its topic – Consumers buying behavior.
 The study was made in the organization.
 The main scope of the study is limited to NICROME LEATHER PROCESSING
INDUSTRY AT CHENNAI.
 It also analysis the benefits accruing to the company as a result of those service.
 This study has been made to find the level of satisfaction the customer has regarding the
service provider by shoe industry .
 The study has sole reference from the customers of NICROME LEATHER
PROCESSING INDUSTRY AT CHENNAI
OBJECTIVES OF THE STUDY

 To study the consumers satisfaction towards NICROME LEATHER PROCESSING

INDUSTRY AT CHENNAI
 To study the importance of the Consumers buying behavior in the organization.
 To study and to analyze the various Consumer buying behavior in the organization.
 To identify if the Consumers buying behavior are appropriate to the organization and to
the employees.
 To study and analyze if the Consumer buying behavior are mutually benefited to both,
the organization and as well as to the employees.
 To know market position of NICROME LEATHER PROCESSING INDUSTRY AT
CHENNAI in the market.
 To know consumer behavior for purchase of shoe.
 To study the consumers satisfaction towards price of shoe
 To study the consumers opinion of NICROME LEATHER PROCESSING
INDUSTRY AT CHENNAI
 To analyze if Consumers buying behavior are reviewed and modified on timely basis.
 CHAPTER III

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

The survey technique is intended to secure one or more items of information from a
sample of respondents who are representatives of a larger group. The information is recorded on
a form known as questionnaire. As data are gathered by asking questions from persons who are
believed to have desired information, the method is known as questionnaire technique.

REASONS FOR WIDE USE OF THIS METHOD:

 It can secure both quantitative and qualitative information directly from the respondents.
 It is the only method of directly measuring attitudes and motivations.
 It is quite flexible in terms of the types of data to be assembled, the method of collection
or the timing of research.

MEANING OF RESEARCH

According to D. Slessinger and M. Stephenson in the Encyclopedia of social sciences

define research as “the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction
of theory or in the practice of an art”.

TYPES OF RESEARCH

 Exploratory Research,
 Descriptive Research.

EXPLORATORY RESEARCH:

Exploratory research studies are also termed as formulate research studies. The main
purpose of such studies in that of formulating a problem for more precise investigation or of
developing the working hypothesis forms an operational point of view.
DESCRIPTIVE RESEARCH:

Diagnostic Research studies determine the frequency with something occurs or its
association with something else.

In this project, information pertaining to customer needs satisfaction and their

demographic profile was collected; hence Research Methodology

SOURCES OF DATA:

DATA COLLECTION INSTRUMENTS:

PRIMARRY METHOD:

Primary data are those, which are collected fresh and for the first time and this happen to be
original in character. In this study primary data was collected by interview schedule method.

SECONDARY METHOD:

Secondary data are those, which are collected from existing data. Secondary data for this study
include appropriate material from newspaper, Magazines, Broachers, Company Reports,
Standard Text Books, and information from Internet has also been acquired wherever necessary.

FIELD WORK:

The project involved a fieldwork of around 1 month 15 days where in the survey was carried out.

 The survey was conducted in different areas of Nicrome Leather Processing Industry
At Chennai

METHODOLOGICAL ASSUMPTIONS:

 The primary data has been collected by an interview schedule.

 The sample for the study was selected on a convenience basis
 All primary data collected is true and reflects the actual actions of the Respondents.
 The data collected has been coded, tabulated and analyzed into logical
 Statement using simple statistical methods, pie charts, etc.
DESCRIPTION OF THE RESEARCH DESIGN:

A research design is a logical and systematic plan prepared for directing a research study it
specifies the methodology and technique to be adopted for achieving the objectives. It constitutes
the blueprint for the collection, measurement and analysis of data.

The main aim of the study is to evaluate the brand image of Hero Honda. The study is
descriptive in nature. Surveys are best-suited method for descriptive research. So survey method
is used for the study.

The preparation of a research plan for a study aids in establishing direction to the study and
knowing exactly what has to be done and how and when it has to be done at every stage.

A research plan describes the boundaries of research activities and enables the research to
channel his energies in the right work. With clear research objectives, in view the research can
proceed systematically towards his achievements.

SAMPLING PROCEDURES:

Sampling is a systematic approach for selecting a few elements from an entire collection of units
(population) in order to make some inference about the total population it is a small specimen or
a segment of the whole population representing its general qualities as for as possible. The study
was undertaken by convenience sampling

SAMPLE SIZE:

The study is conducted on a sample of 100 respondents.

SAMPLING FRAME:

 The population for the study consists NICROME LEATHER PROCESSING

INDUSTRY AT CHENNAI

RESEARCH APPROACH:
The survey method was adopted for collected the primary data. Survey research is systematic
gathering of data from respondent through questionnaire.

RESEARCH INSTRUMENT:

The data for this research study was collected by survey technical using interview method
guided by questionnaire.

COLLECTION OF DATA:

Questionnaire and personal interviews are the methods that I have used for collecting the
data.

LIMITATIONS OF THE STUDY:

 The time period of project is 45 days.

 Though the customers wanted to give information they could not give as it wastes their
business time.
 The accuracy of the answers depends upon the mode of interest of respondents.
 The opinions of the sample may or may not depict the exact opinions of the total
population.