A

Pioject Repoit
0n
~BUYING BEHAVIOUR OF CONSUMER FOR INDIGENOUS PRODUCT
AND INTERNATIONAL PRODUCT
aTtteu To
Paital falfllent of the ieqaieent of the Begiee
0f
NRLN (NATER 0F RETAILINu ANB L0uITIC NANAuENENT)


Under Cuidance: Submitted By:
BR. .C. BAWAR Aai_h Bajaj
(LECT0RER 0F C0NNERCE BEPT.) NRLN (F)
Roll No. 8


DEPARTMENT UF CUMMERCE
KURUKSHETRA UNIVERSITY KURUSHETRA

INDEX


CHAPTER 1- INTRODUCTION

CHAPTER 2- RESEARCH METHODOLOGY

CHAPTER 3- DATA ANALYSIS AND INTERPRETATION

CHAPTER 4- CCnCLuSlCn SuCCSLS1lCn


8l8LlCC8AP?

AnnLxu8L


DECLARATION

I am the student oI MRLM 4
th
semester oI Department oI Commerce, Kurukshetra
University Kurukshetra, hereby declare that the Project titled 'A COMPARATIVE
STUDY ON BUYING BEHAVIOUR OF CONSUMER FOR INDIGENOUS
PRODUCT vis-a-vis INTERNATIONAL PRODUCT is the outcome oI our own
work and the same has not been submitted by any student Ior the award oI degree
or ProIessional diploma.

Aarish Bajaj

ABSTRACT
The Iirst and most objective oI our study is comparative study oI consumers
buying behavior regarding indigenous and imported products. The study oI
consumer behavior is the most important Iactor Ior marketing oI any goods and
services. The consumer behavior suggest how individual, groups and organization
select, buy, use and dispose oI goods, services, ideas or experience to satisIy there
needs and wants. It also clues Ior improving or introducing products or services,
setting price, devising channels etc.
Since liberalization 100 FDI is allowed in India. This has attracted Ioreign
companies to penetrate the Indian market. The marketers always look Ior emergent
trends that suggest new marketing opportunities and here in India a lot oI
opportunities are available.




ACkNCWLLDGLMLN1

Every study requires a guidance oI someone who is working in that Iield.

Firstly we would like to thank Chairman Dr.Shashi Anand Ior providing an
opportunity oI preparing a Grand Project Report and allowing us to use the
resources oI the institution during this project.
We are extremely thankIul to our Project Guide, Dr. S.C.Dawar Ior their
precious guidance regarding the preparation oI the Project Report. Their guidance
has proved to be useIul and without them, the preparation oI this report might not
have been possible.
We are also thankIul to the other Iaculty members oI Department oI
commerce Ior extending their valuable support Ior this project.
We also extend our sincere thanks to the Respondents, who helped us during
the course oI our project and Ior their gracious attitude.
We would like to take this opportunity to extend our warm thoughts to those
who helped me in making this project a wonderIul experience.

Last but not the least, we would also like to thank our Iamily Ior their
support and encouragement.










CHAPTER 1














INTRODUCTION
As a consumer we are all unique and this uniqueness is reIlected in the
consumption pattern and process purchase. The study oI consumer behavior
provides us with reasons why consumers diIIer Irom one another in buying using
products and services. We receive stimuli Irom the environment and the speciIics
oI the marketing strategies oI diIIerent products and services, and responds to these
stimuli in terms oI either buying or not buying product. In between the stage oI
receiving the stimuli and responding to it, the consumer goes through the process
oI making his decision.
Definition of Consumer Buying Behavior
According to 'Philip Kolter remarks that consumers are neither so simple that
they do not require to be studied, nor so complex that their study not possible.
According to 'C.G.Walter and G.W. Paul consumer behaviour is the process
whereby individuals decide whether, what, when, where and how and Irom whom
to purchase goods and services.
From the above deIinition it is clear that:
(1). consumer behaviour is related to personal and social processes.
(2) Consumer behaviour is a study oI social nature.
(3) Consumer behaviour is related to both, the behaviour oI consumer and
industrial users.
(4) Consumer behaviour includes within it the study oI communication system,
the purchase and the consumption.
(5) Consumer behaviour explains the satisIaction availed Irom the stage oI buying
to the stage when product is bought.
Types of consumer
Consumer is an individual or an organization who consume goods and service.
Primarily there are three types oI consumers:
1.Household Consumers: The buyer who buys the products and services Ior the
satisIaction oI their personal or Iamily needs are called household consumers.
2. Industrial Consumers: there are buyers who buy the products and services in
order to manuIacturer other products. The quantum oI their purchase depends on
the demand oI the product to be produced.
3. Reseller: these are the wholesalers and retailers. They buy the product and
services with the motive oI reselling at proIit.

Types of consumer according to buying behaviour
The consumer can also be classiIied on the basis oI their buying behaviour:
1. Habit determined group: It s that class oI buyers who habitually buy any
product oI speciIic brand because he is Iully satisIied with the utility oI product or
brand.
2. Cognitive group: It is that class oI buyers who are inIluenced by the conscious
claims and their buying behaviour is based on those claims.
3. Emotional sector group: It is that class oI buyers who are much aIIected by the
image and Ieatures oI the products.
4. New group: It is a group oI those persons who still have not made psychological
decision.
5. Impulsive group: It is that class oI buyers who buy the products on the basis oI
their physical attributes. Brand has no eIIect on them.
Importance of Studying of Consumer Behaviour
A numbers oI reasons make the study oI consumer behaviour relevant Ior eIIective
marketing management. These are as Iollows:
1. Determining the production policies: For determining the production
policies, the study oI consumer behaviour is a necessity.
2. Determining the price policies: The buyers oI some products purchase the
particular products only because they are cheaper than the competitive
products available in the market.
3. Market diIIerences: Several diIIerences exist in the modern markets.
ThereIore, uniIorm marketing programme cannot IulIill the needs oI these
markets.
4. Determining the channels oI distribution: The goods and services which are
sold and purchased solely on the basis oI low price must have cheap and
economical distribution channels.
5. Determining the sales promotion activities: A study oI consumer behaviour
is also important in making decisions regarding sales promotion.
. Meeting the competition: In a competitive market, every manuIacturer want
to sell his products. This has resulted into acute competition.
7. Rapid technological advancement: Rapid introduction oI new products with
technological advancement has made the job oI studying consumer
behaviour more imperative.

Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage oI the process. Not all decision processes lead
to a purchase. All consumer decisions do not always include all stages, we
determine the stages oI consumer buying behaviour.
The stages are:-
1. Problem Recognition Problem recognition is the diIIerence between the
desired state and the actual condition. DeIicit in assortment oI products. Hunger-
Food is the best example oI it. Hunger stimulates your need to eat. Can be
stimulated by the marketer through product inIormation-did not know you were
deIicient?

2. Information search-
O Internal search, memory.
O External search iI you need more inIormation. Friends and relatives (word oI
mouth). Marketer dominated sources; comparison shopping; public sources
etc.
A successIul inIormation search leaves a buyer with possible alternatives, the
evoked set.





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

O Chinese Iood
O Indian Iood
O burger king

. Evaluation of AlternativesNow need to establish criteria Ior Evaluation,
Ieatures the buyer wants or does not want.. May decide that you want to eat
something spicy, Indian gets highest rank etc. II not satisIied with your choices
then return to the search phase. Can you think oI another restaurant? Look in the
yellow pages etc. InIormation Irom diIIerent sources may be treated diIIerently.
Marketers try to inIluence by "Iraming" alternatives Ior the consumer.

4. Purchase decision- In the purchase decision consumer Choose buying
alternative in which includes product, package, store, method oI purchase etc.

5. Purchase- It may diIIer Irom decision, time lapse between 4 & 5, product
availability. It is take time Ior the purchasing oI the product.

6. Post-Purchase Evaluation- Post-Purchase Evaluation is outcome, SatisIaction
or DissatisIaction. Cognitive Dissonance, have you made the right decision. This
can be reduced by warranties, aIter sales communication etc. At the last stage oI
consumer buying process consumer realize that aIter eating an Indian meal, may
think that really you wanted a Chinese meal instead.


O The purchase oI the same product does not always elicit the same Buying
Behavior. Product can shiIt Irom one category to the next or to the other
category.

O For example: Going out Ior dinner Ior one person may be extensive
decision making (Ior someone that does not go out oIten at all), but limited
decision making Ior someone else. The reason Ior the dinner, whether it is an
anniversary celebration, or a meal with a couple oI Iriends will also
determine the extent oI the decision making.
Factors Effecting the Consumer Buying Decision Process

A consumer, making a purchase decision will be aIIected by the Iollowing
three Iactors. Now we discussed the all three Iactor which aIIect the
consumer buying decision.

1. Cultural and sub culture Factor
2. Social Factor
3. Personal Factor
4. Physiological Factor


1. Culture and Sub-culture-

In simple culture is a word but is the set oI values, ideas, and attitudes that are
accepted by a homogenous group oI people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture
determines what people wear, eat, reside and travel. Cultural values in the US are
good health, education, individualism and Ireedom. In American culture time
scarcity is a growing problem that is change in meals. Big impact on international
marketing.
Culture can be divided into subcultures which includes
O Geographic Region
O Human characteristics in which includes age and ethnic background.
.


Culture aIIects the consumer with in the buying behaviour oI the consumer in
which includes what people buy, how they buy and when they buy. The product
which is able to satisIy the need oI consumer. Understanding Consumer Buying
Behavior oIIers consumers greater satisIaction. We must assume that the company
has adopted the Marketing Concept and are consumer oriented.

Social Factors

Consumer wants, learning, motives etc. are inIluenced by opinion leaders, person's
Iamily, reIerence groups, social class and culture.

O Roles and Family Influences:-
Role...things you should do based on the expectations oI you Irom your
position within a group. People have many roles. Husband, Iather, employer,
employee. Individuals role are continuing to change thereIore marketers must
continue to update inIormation. Family is the most basic group a person belongs to.
Marketers must understand:-
O That many Iamily decisions are made by the Iamily unit consumer behavior
starts in the Iamily unit.
O Family roles and preIerences are the model Ior children's Iuture Iamily (can
reject/alter/etc).
O Family buying decisions are a mixture oI Iamily interactions and individual
decision making.
O Family acts an interpreter oI social and cultural values Ior the individual.


The Family liIe cycle: Iamilies go through stages; each stage creates diIIerent
consumer demands: -



O Reference Groups:-
Individual identiIies with the group to the extent that he takes on many oI
the values, attitudes or behaviors oI the group members.
Families, Iriends, sororities, civic and proIessional organizations. Any group
that has a positive or negative inIluence on a person`s attitude and behavior.
Membership groups (belong to) AIIinity marketing is Iocused on the desires oI
consumers that belong to reIerence groups. Marketers get the groups to approve the
product and communicate that approval to its members. Credit Cards etc.!!

Aspiration groups (want to belong to), Disassociate groups (do not want to belong
to) Honda tries to disassociate Irom the "biker" group. The degree to which a
reIerence group will aIIect a purchase decision depends on an individual`s
susceptibility to reIerence group inIluence and the strength oI his/her involvement
with the group.


O Social Class:-
An open group oI individuals who have similar social rank. US is not a
classless society. US criteria; occupation, education, income, wealth, race, ethnic
groups and possessions.
Social class inIluences many aspects oI our lives. i.e; upper middle class mericans
preIer luxury cars Mercedes.
O Upper-upper class, .3, inherited wealth, aristocratic names.
O Lower-upper class, 1.2, newer social elite, Irom current proIessionals and
corporate elite.
O Upper-middle class, 12.5, college graduates, managers and proIessionals.
O Middle class, 32, average pay white collar workers and blue collar Iriends.
O Working class, 38, average pay blue collar workers.
O Lower class, 9, working, not on welIare.
O Lower-lower class, 7, on welIare.

Social class determines to some extent, the types, quality, and quantity oI products
that a person buys or uses.
Lower class people tend to stay close to home when shopping; do not engage in
much pre-purchase inIormation gathering.
Stores project deIinite class images.
Family, reIerence groups and social classes are all social inIluences on consumer
behavior. All operate within a larger culture.

Personal Factor
Unique to a particular person. Demographic Factors, Sex, Race, Age etc.
Who in the Iamily is responsible Ior the decision making? Young people purchase
things Ior diIIerent reasons than older people.

Psychological factors

Psychological Iactors include: -

O Motives-

A motive is an internal energizing Iorce that orients a person's activities toward
satisIying a need or achieving a goal. Actions are eIIected by a set oI motives, not
just one. II marketers can identiIy motives then they can better develop a
marketing mix.
MASLOW hierarchy of needs!!
O Physiological
O SaIety
O Love and Belonging
O Esteem
O SelI Actualization
Need to determine what level oI the hierarchy the consumers are at to determine
what motivates their purchases. The product was not selling well, and was almost
terminated. Upon extensive research it was determined that the product did sell
well in inner-city convenience stores. It was determined that the consumers Ior the
product were actually drug addicts who couldn't digest a regular meal. They would
purchase Nutriment as a substitute Ior a meal. Their motivation to purchase was
completely diIIerent to the motivation that B-MS had originally thought. These
consumers were at the Physio logical level oI the hierarchy. BM-S thereIore had to
redesign its MM to better meet the needs oI this target market. Motives oIten
operate at a subconscious level thereIore are diIIicult to measure.
O Perception-
Perception is the process oI selecting, organizing and interpreting
inIormation inputs to produce meaning. IE we chose what inIo we pay attention to,
organize it and interpret it. InIormation inputs are the sensations received through
sight, taste, hearing, smell and touch.

Selective Exposure-select inputs to be exposed to our awareness. More likely iI it
is linked to an event, satisIies current needs, intensity oI input changes (sharp price
drop).

Selective Distortion-Changing/twisting current received inIormation, inconsistent
with belieIs.
Advertisers that use comparative advertisements (pitching one product against
another), have to be very careIul that consumers do not distort the Iacts and
perceive that the advertisement was Ior the competitor. A current example...MCI
and AT&T...do you ever get conIused?
Selective Retention-Remember inputs that support belieIs, Iorgets those that don't.
Average supermarket shopper is exposed to 17,000 products in a shopping visit
lasting 30 minutes-0 oI purchases are unplanned. Exposed to 1,500
advertisements per day. Can't be expected to be aware oI all these inputs, and
certainly will not retain many.

Interpreting inIormation is based on what is already Iamiliar, on knowledge that is
stored in the memory.

Ability and Knowledge--
Need to understand individual`s capacity to learn. Learning, changes in a person's
behavior caused by inIormation and experience. ThereIore to change consumers'
behavior about your product, need to give them new inIormation re: product...Iree
sample etc.
When making buying decisions, buyers must process inIormation. Knowledge is
the Iamiliarity with the product and expertise.
Inexperience buyers oIten use prices as an indicator oI quality more than those who
have knowledge oI a product. Non-alcoholic Beer example: consumers chose the
most expensive six-pack, because they assume that the greater price indicates
greater quality.
Learning is the process through which a relatively permanent change in behavior
results Irom the consequences oI past behavior.


Attitudes--
Knowledge and positive and negative Ieelings about an object or activity-maybe
tangible or intangible, living or non living.....Drive perceptions
Individual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a Iirm and its products greatly inIluence the success or
Iailure oI the Iirm's marketing strategy.
Honda "You meet the nicest people on a Honda", dispel the unsavory image oI a
motorbike rider, late 1950s. Changing market oI the 1990s, baby boomers aging,
Hondas market returning to hard core. To change this they have a new slogan
"Come ride with us".


Attitudes and attitude change are inIluenced by consumer`s personality and
liIestyle.
Consumers screen inIormation that conIlicts with their attitudes. Distort
inIormation to make it consistent and selectively retain inIormation that reinIorces
our attitudes. IE brand loyalty.
There is a diIIerence between attitude and intention to buy (ability to buy)


O Personality--
all the internal traits and behaviors that make a person unique, uniqueness arrives
Irom a person's heredity and personal experience. Examples include: -
O Work holism
O Compulsiveness
O SelI conIidence
O Friendliness
O Adaptability
O Ambitiousness
O Dogmatism
O Authoritarianism
O Introversion
O Extroversion
O Aggressiveness
O Competitiveness.

Traits aIIect the way people behave. Marketers try to match the store image to the
perceived image oI their customers.
There is a weak association between personality and Buying Behavior; this may be
due to unreliable measures. Nike ads. Consumers buy products that are consistent
with their selI concept.
O Lifestyles--
Recent US trends in liIestyles are a shiIt towards personal independence and
individualism and a preIerence Ior a healthy, natural liIestyle.
LiIestyles are the consistent patterns people Iollow in their lives.
The marketer must be aware oI these Iactors in order to develop an appropriate
MM Ior its target market.

1.1 What is marketing?
Marketing on the one hand is a business philosophy and on the other an action
oriented process. The philosophy - also termed as marketing concept - has its roots
in market economy. There are Iour critical ideas that Iorm the Ioundation oI such
an economy:
Individuals pursue their selI-interest to seek rewarding experience.
Their choices determine as to what would constitute such experience,
the choices themselves being shaped by personal (taste) and external
(cultural) inIluences.
'buyers and sellers. Marketing in turn is based on these Iour principles.
Thus Marketing can be deIined as a
Process that aims at satisfying individual and organizational needs by
creating, offering and exchanging competitively made products that provide
value to the buyers`
Today our Iocus is on customer. Objectives liken revenue, proIit, market share, etc.
Re important, but they will Ilow only by acquiring customer competence. In our
country particularly the customer, even as late as in 1980s, was bereIt oI
alternatives; he would uncomplainingly buy whatever the seller dished out. Not
any more. Today`s choice empowered customer, supported by a competitive
environment, global quality, and new economic realities, decides the Iate oI the
marketer.
So let`s deIine Marketing once more: 'It is a total business philosophy aimed at
identiIying the needs oI each customer group, then designing and producing
product / service package so as to serve the groups more eIIectively than the
competitors.

This definition reveals three key dimensions of marketing: -

It seeks to identify customer needs: Many manuIacturers would know all there is
to know about relevant production technology, but nothing about their customers`
wants. They may design products with Iancy Ieatures without considering the
perceived value oI such Ieatures to their buyers. Then they wonder why their sales
staII Iails to push the product in the market.

Marketing attempts to select customer groups for which it can develop a
competitive edge: Companies taking a shotgun approach - meaning all things to
all people - inevitably end up with sackIul oI unsold product inventories.

What is Consumer Buying Behavior?
DeIinition oI Buying Behavior: Buying Behavior is the decision processes and acts
oI people involved in buying and using products.
Need to understand:

Why consumers make the purchases that they make?
What Iactors inIluence consumer purchases?
Changing Iactors in our society.


Consumer Buying Behavior reIers to the buying behavior oI the ultimate
consumer. A Iirm needs to analyze buying behavior Ior: -

Buyer`s reactions to a Iirms marketing strategy has a great impact on the
Iirm`s success.
The marketing concept stresses that a Iirm should create a Marketing Mix
(MM) that satisIies (gives utility to) customers, thereIore need to analyze the
what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.



NEED OF THE STUDY -
There are diIIerent national & international products present in India. So to identiIy
the customer & their buying behavior have been the Iocus oI a number oI
international and national product. The result oI these studies have been useIul to
the provide solution to various marketing problem.
Understanding buying behavior pattern per se is not enough without understanding
the composition and origin oI the customer. Today most oI the Indian customers
are attracted by the imported goods because oI their high quality. So that most oI
the Indian company product looses their credibility and loyalty in domestic
customers.
So the objectives oI the study are
1. How can we stand out in a highly competitive market where consumers have so
many choice?
2. How we can provide best loyalty to our customer while earning a Iair proIit?
3. How can we grow our business while retaining a core oI the loyal customer?



BACK GROUND: A major area oI concern in marketer-consumer relation is the
growing inIluence and utilization oI the credit market, an outcome oI compulsive
buying, which has negatively aIIected the consumers, leading them to
unmanageable debt levels. A study to Iind whether there is any association oI the
Iollowing variables on compulsive buying viz, big Iive Personality traits,
materialism, demographics and credit card usage. The research design is a
conclusive design which is single cross sectional descriptive in nature. The primary
data was collected using non probability sampling technique. A quota sample oI
120credit card holders (using credit card/s above one year) was chosen.














CHAPTER 2

















LSLACn ML1nCDCLCG


C8!LC1lvL Cl 1PL S1uu?
1he sysLemaLlc and ob[ecLlve ldenLlflcaLlon collecLlon analysls dlssemlnaLlon
and use lnformaLlon for Lhe purpose of asslsLlng managemenL ln declslon maklng
relaLed Lo Lhe ldenLlflcaLlon and soluLlon of problem and opporLunlLles ln
markeLlng
When an lndusLry comes ln Lhe compeLlLlve markeL Lhen Lhe maln problem comes
ln fronL of hlm ls how can survlve ln Lhe markeL lor Lhls purpose Lhey have Lo
know abouL Lhelr producLlon process employmenL process dlsLrlbuLlon process
consumer needs and consumer behavlor 1he maln purpose of Lhe lndusLry ls Lo
saLlsfy Lhe consumer needs 1helr all funcLlon rounds around Lhe cusLomer Lhey
Lry Lo know Lhe behavlor of Lhe cusLomer and fulflll Lhelr goal and Lo know abouL
Lhe cusLomer's behavlor Lhey do markeLlng research ln Lhls era Lhe markeLlng
research ls Lhe baslc parL of Lhe lndusLry MarkeLlng research lnclude Lhe
evaluaLlon of Lhe organlzaLlon's all funcLlons llke Lhelr producLlon manufacLurlng
dlsLrlbuLlon markeLlng flnanclal and human resources
We can say it is the internal research oI an industry. There are some external Iactor
which aIIects the growth oI the organization like customer behavior and the
political, technological, economical, and legal environment. And the most
important Iactor is consumer buying behavior because this Iactor is responsible Ior
the utilization oI the product and ultimately sells oI the product.
So industry also needs the research on the consumer buying behavior.
When we do the research on the consumer behavior we should know the entire
Iactor which aIIects the consumer buying behavior. Social environment, education,
culture and traditions, income, society are the Iactors which aIIect the buying
behavior oI the consumer. We can also divide it into geographic, demographic,
psychological Iactor. The main objective oI this study are
To understand why customer buy a particular product.
To know the marketing opportunities.
To know about customer acceptance oI the product.
To analyse the customer expectation Irom the manuIacturer.
To help the company to know what consumer want in the product.
Why Consumer preIers imported goods instead oI indigenous goods.
In the Marketing Research we Iirstly design our research. Our research can be
descriptive, explorative and casual research design.
Casual research design is based on survey and observation. In this research process
we are selected descriptive research design.

Research Methodology

Research Problems: - To study buying behavior oI consumer Ior indigenous and
imported products.
Data Source : - Primary data and Secondary data.
Research Approach : - Survey Approach.
Research Methodology : - Exploratory Method.
Research Instruments : - Questionnaire.
Sampling Plan
Population Definition : - Sample: - Malls, Super Markets
Extent: Kurukshetra.
Sample Methods : - Random Simple Sampling.

Sample size : - 100.

Primary data : - Questionnaire.

SAMPLE
While deciding about the sample oI research, it is required Irom the
researcher`s point to pay attention to these under mentioned points:
a) Sample Units: A decision has to be taken concerning a sampling unit
beIore selecting a sample, sampling unit may be a geographical one such
as state, district, village Etc. so in this research sampling unit is
kurukshetras.

b) Source list: It is also called sampling Irame Irom which sample is to be
drawn, it caters name oI all the items oI a universe (in case oI Iinite
universe only).Researcher has to prepare it.

c) Sampling size: This reIers to the no. oI items to be selected Irom the
universe to constitute a sample. This is a major problem beIore the
researcher. The size oI sample should neither be excessively large not too
small, it should be optimum. This size oI population must be kept in view
Ior this also limits the sample size .Sample size in this research is 100
customers.

d) Sampling procedure: Finally the researcher must decide the type oI
sample he must be .That is he musL declde abouL Lhe Lechnlque Lo be used
ln selecLlng lLems for Lhe sample ln facL Lhls Lechnlque or procedure
sLands for Lhe sample deslgn lLself ln Lhls we used Lhe random sampllng
on Lhe basls of flrsL survey resulLs whlch ls from 100 respondenLs





INSTRUMENTS USED
We collected primary data through sample survey or census surveys Irom
the selected elements in malls and super markets. So Ior this purpose we
have used the most popular tool oI primary data collection through direct
communication with respondents. The tools we used are questionnaires.
Source oI data: Data required Ior the study was collected through primary
sources i.e. Market Survey.

METHOD OF DATA COLLECTION
Actually data is oI two kinds so researchers should keep in mind both types
oI data.
a) Primary Data: Primary data are those, which are collected aIresh and Ior
the Iirst time and this happen to be original in character.

b) Secondary Data: Secondary data are those data which have already been
collected by someone else and which have already been used as per
required.

There are basically two sources to collect secondary data
a) Internally: Provided by the company/organization

b) Externally: Various publication oI central, state and local Government.
Books, magazines, newspapers
Internet
AIter only keeping in mind one can think about what type oI data has to
be collected during research as our research is concerned we have to gather
primary data Ior Customer behavior

"UESTIONNAIRE
This method is more popular .The questionnaire is sent to the person
concerned to answer the questions Iormatted and return the same soon.
A Questionnaire consists oI a number oI questions printed or typed in
deIinite order on a Iorm or set oI Iorms. The Questionnaire is sent to the
respondents. In order to achieve the research objective it is necessary to
collect accurate and relevant data, secondary data are already published
data collected Ior purposed other than the speciIic research needs at hand.
Primary data that are collected speciIically Ior the research situation at
hand, were collected by surveys ,using respondents surveys is one oI the
ways oI collecting primary data namely observations, experiments and
surveys .

Limitation

Every project Iaces some limitation; because oI this limitation is required
and necessary data to complete the project may not gather in proper
manner. The limitations which we observe were as Iollows:
With respect to actual population the sample size was too small. This
might be eIIect the Iinal result.
Since the responses were only Irom some part oI Kurukshetra, the
report cannot be generalized Ior whole Kurukshetra.
Respondents may have given bias inIormation.
The time limit Ior the research was one week that was small time to
collect adequate inIormation Ior inIerence Ior the consumer buying
behavior.





Discussion
As our project title is to Iind the market behavior oI the customer buying a
Indigenous and International product. Accomplish this project and to make
report .we survey all type oI customer behavior in the market. We gather
data and aIter data analysis, we conclude that the market behavior oI the
customer bases on the buying Indian and International product. At a present
time mostly customer like a style and social status and brand conscious in
the society.









CHAPTER 3








Descriptive Study


Descriptive Study
Indian market is one oI the Iast booming markets in the world. It attract most oI the
Indian and international company towards them. Due to the globalization most oI
international branded company inter in the Indian market and increase the
competition between them. There are diIIerent international competitors which are
present in the Indian market like Lee, Cotton Country, Cantabile, Mc Donald,
Dominos, Elle etc. These companies try to attract most oI Indian customer. Most oI
the Indian people preIer imported garment because they think imported company
provided better look and they charge lower prices but in the case oI Iood and
cosmetic they preIer indigenous Iood and cosmetic.
Food and Grocery-
In a country where there is a grocery shops at every street corner and a
vegetable and Iruits vender near each bus stop. How can organized retail oI Iood
become Ieasible? A successIul retailer seem to have just one option, oIIer attractive
price to the consumer. A successIul retailer wining edge will thereIore come Irom
souring how best it can leverage its scale to drive merchandise costs down increase
stack turn and get better credit terms Irom its vendors. There are obvious and
hidden areas where costs are pruned and the beneIit oI this lower costs oI retailing
can be passed on to customers as lower prices which is turn should Iuel demand.
The Iood supply chain in India is Iuel in eIIiciencies a result oI inadequate
inIrastructure, too many middlemen, complicate, lows and an indiIIerent attitude.
There is little doubt that Iood retailing has immense potential. During the course oI
these researches EITG spoke to several players, national and international in the
Iood retail business.

There are diIIerent types oI Iood retail store are available in india market.
They serve diIIerent types oI indigenous and international Iood to their customer.
DiIIerent types oI indigenous Iood retail store are
Food Bazaar
Haldi Ram
Bikaner

And the international retail stores are
Mc Donald`s
Dominos
Barista
Pizza hut
NescaIe

These are main player in the Iood market. These Iood retail stores have captured
most oI the Indian market but still more Indian customers like to eat indigenous
Iood. They want to have local Iood, that`s a main reason that most oI the Iood
retail store emphasize on local market and they serve according to their taste. For
example Mc Donald`s Iranchisees say they think the new coIIee drinks will be
particularly helpIul in drawing young consumer who will preIer them to drip
coIIee.
India`s largest publicly traded retailer, Pantaloon Retail Ltd. will make its
Iormal entry into the gourmet Iood business with its Gourmet Iood Bazaar
targeting those Indian with a global palate and a wallet to match. Pantaloon will
open the Iirst 4,500 sq. It store in select city walk mall, an upscale new shopping
mall in south Delhi very soon. Pantallon is going to enter this in category with
store in New Delhi, Banglore and Mumbai. 'We believe in Iood. Also there is the
customer that is ready Ior more liIestyle shopping, more branded item and more
international cuisine said Damoder Mall, who heads the company`s ventures into
new businesses. The company operates in various Iormats including department
stores and hypermarkets and runs a supermarket chain called Food Bazaar that
sells discount Iood items Irom potato to pasta. Mall decline to say how many
gourmet stores the company plans to open.
A recent report by consultant Ernst and Young says Food and Grocery
constitute almost 54 or $ 152 billion oI India`s total annual retail business but
modern retailers account Ior just 1 oI market. A growing number oI organized
retailers in India have plans to target the Iood market and are opening thousands oI
grocery stores though out the country in coming years.
Mumbai based hyper city Retail Pvt. Ltd. Is also planning to launch
Gourmet city next year. Hypermarket which runs a hypermarket in Mumbai`s
western suburb oI Malad, has a counter Ior imported cheeses, handmade
chocolates, cold, cuts, marinated meats, a bakery and stocks gourmet Iood Iorm
British supermarket Cahin , whitrose.
Godrej Agrovet Ltd also recently relaunched some oI the stores in its Nature`s
Basket supermarket chain to stoke a range oI imported Iood products include wine,
organic pasta, wasabi, hagenDaz ice cream etc.
Gourmet Iood Bazaar plans to stock Indian as well as imported Iood products
in the store. 'There will be live bakers, lots oI cheese, sandwiches, there will be a
salad bar and many imported Ioreign brands will be there Mall said.
The Iuture Group, Pantaloon`s parent, also recently took a stake in sula
wines, a domestic wine company and now stocks Sula wine at some oI its Food
Bazaar store.
So iI we summaries whole thing we can say Indian retail market is
most booming industries in the country. Most oI the Indian company is interested
in Iood industry. But according to our survey most oI the Indian people are like
indigenous Iood. Indian Iood has become too much popular in the United Kingdom
over the past decade and a large number oI Britons now preIer to eat out at Asian
restaurants, according to a study.
Sales oI not only Indian but also other Asian dishes like Chinese and Thai have
increased 3 per cent between 2001 and 200. Overall the Iast Iood industry has
increased its sales by 73 per cent between 1995 and 2005, the study says.
"Food is now a key part oI our leisure time and we are eating out more oIten. It is
no longer unIashionable to cook but this trend can be at odds with desires Ior
convenience or intentions to make ethical or healthy choices.
"The popularity oI convenience Iood snacking and eating out has led to concerns
about the demise oI the Iamily meal as well as a decline in knowledge and skills
about Iood (but) the majority oI Iamily meals are still eaten together.
"Even in single person households, eating remains a social activity with young
single people tending to invite people to dinner more oIten than their married
counterparts," 'The Guardian' quoted the government study oI British eating habits
as saying.
However, it has played down reports that Britain is not only becoming a nation oI
scoIIers but also getting dangerously dependent on Iood Irom abroad.
According to the study, Britain now imports 40 per cent oI the country's Iood,
signiIicantly more than 10 years ago when the European Common Agricultural
Policy (CAP) rewarded Iarmers Ior production.
"But we used to import Iar more between 1870 and 1939. The very high selI-
suIIiciency oI the 1980s and 1990s was unusual -- an artiIact oI the CAP. Europe is
expected to provide most oI our Iuture imports Ior the Ioreseeable Iuture," the
study says.






Garment-
The end oI trade restrictions should generate unprecedented business Ior
developing countries - including, Bangladesh, China, Hong Kong, India, Indonesia,
Korea, Pakistan, Philippines, Sri Lanka and Thailand. In practice, China is likely to
run away with the gold and silver prizes, leaving the other countries to Iight over
the bronze.
The key will be volume-driven eIIiciencies combined with design capabilities and
Ilexibility in manuIacturing. These are the Iactors that have catapulted China into
the biggest clothier oI the world.
Not only did the quota regime protect high-wage Western companies, the way in
which it was administered in India, it also cocooned many low-wage Indian
producers who were assured oI business without being really competitive. It
worked like this: a
In the post-quota regime, competition Irom China, Hong Kong, and other low-cost
countries with huge capacities, will Iorce Indian manuIacturers to compete on
productivity, quality and cost, which require not just skill but scale and technology.
To survive the competitive onslaught, size will be a key determinant. The industry
will have to transIorm its unorganized, small-scale character to become large,
organized and capable oI high-cost investments in modern, high-speed equipment.
The garment industry being a small scale industry, not surprisingly, when India's
overall quota was distributed among exporters, the allotments were skewed in
Iavour oI small units. Until the late 1990s, with 80 per cent oI garment production
coming Irom small- scale units and 70 per cent oI the quota being distributed on
the basis oI 'past perIormance entitlement' (PPE) manuIacturers had no reason to
expand their operations or invest in expensive equipment. Those who did grow did
so by more small-scale units, usually making a separate garment category.
Another 15 per cent oI the quota was reserved Ior allotment on a 'Iirst-come, Iirst-
serve entitlement' (FSFSE) Ior manuIacturers with a turnover limit oI Rs5 cr.. This
again blocked large manuIacturers Irom quota entitlements. With the quota system
being scrapped Irom 1 January 2005, leading garment manuIacturers can now
begin consolidating and expanding their capacities. Even the larger oI the existing
small-scale export manuIacturers, Ireed oI the compulsion to create small satellite
units to acquire a larger share oI the prized quota, are now expanding capacities to
achieve economies oI scale.
The Government's own eIIorts are now aimed at undoing some oI the earlier
policies to encourage size and competitiveness. Recognizing the threats oI global
survival post-MFA, it has embarked on the role oI an industry-Iriendly Iacilitator,
with policy measures that would help exporters.
Garments have been removed Irom the list oI industries reserved Ior the
small-scale sector.
Machinery import duty has been reduced to a nominal 5 per cent.
Excise duty has been reduced sharply.
A textile up gradation Iund scheme (TUFS) has been introduced to provide
a reimbursement oI 5 per cent interest on loans or Iinance charged by the
lending agency on a bankable project oI technology up gradation.
The central value added tax (CENVAT) network has been extended to all
players in the handloom, power loom and organized sectors.
The small-scale industry excise duty exemption up to Rs1 cr. has been
removed.
In the meanwhile, another issue that requires resolution is the state oI poor
inIrastructure in India. Overseas buyers and domestic suppliers all have their own
horror tales oI delayed shipments due to the deplorable congestion at Indian ports,
the sordid condition oI roads Irom the manuIacturing centers to the shipment
points leading to consignments stranded in broken-down vehicles, traIIic choke-up
at the numerous octroi collection centres none oI which seem as acute in
countries with whom India will compete post quotas.
India also has an advantage oI being the third largest cotton producer, which lends
itselI to lower Ireight cost and shorter lead times. Since the country also produces a
variety oI cottons, it provides greater Ilexibility, to meet varied requirements and
arbitrage opportunities.
The per-unit cost in India is currently higher than in China but India has the ability
to counter the Chinese cost dragon through:

Amalgamation oI manuIacturing units and high technology equipment to
ensure economies oI scale and lower unit prices.
Mark-ups oI 20 per cent to 25 per cent oI the FOB prices, arising out oI the
odious 'premium cost' to acquire quotas Irom those who had them, which
disappears with the abolition oI quotas.
ReIorms to reduce the 'hidden costs' - import licence, inland Ireight
movement, octroi malpractices, etc. Labour cost, as a percentage oI
manuIacturing cost in India is already lower than in China and all India
needs is to achieve higher manpower productivity. That, oI course, is easier
said than done.
Major Indian companies are already expanding their capacities in order to avail oI
economies oI scale. Gokaldas Exports, India's top garments exporter, has added
eight Iactories in the past two years - larger and more modern in terms oI
technology and inIrastructure. Gokaldas now has 41 Iactories with a workIorce oI
31,000 - up 30 per cent. Orient CraIt, with 18,000 people on its rolls, is also adding
30 per cent capacity, with three new Iactories this year and two in 2005.In India,
95 per cent oI garments makers have annual sales oI less than Rs50 cr.; and oI the
1,000 export manuIacturers, only around 100 companies are able to cross the
Rs100-crore sales level per annum.
The value oI Indian garment exports was Rs28,000 cr. ($5.4 billion) in the last
Iiscal. To achieve exports oI $25 billion by 2010, India would have to expand its
manuIacturing capacity Iive-Iold; expansion oI 30 per cent by top players will just
not suIIice.
Parmlnder Sahnl assoclaLe dlrecLor kSA 1echnopak however ls qulLe opLlmlsLlc
Chlna ls no doubL a very large player buL mosL of Lhe cusLomers feel over
boughL ln Chlna and hence are very keen on havlng a second source of supply So
lL ls more llke Chlna and lndla ln mosL cases Also uS buyers are domlnanL ln
Chlna so Lu buyers are keener on belng domlnanL ln Lhe lndlan subconLlnenL
Anyway lndla wlLh lLs closer proxlmlLy Lo Lurope has LradlLlonally en[oyed a
larger exporL share Lo Lhe Lu counLrles


The world market share
In spite oI the Chinese dominance, India has a Iair opportunity to grab a substantial
stake in the projected garment market share. According to PHD Chamber oI
Commerce and Industry (PHDCCI), post-MFA, India's market share in the US is
expected to go up to 15 per cent Irom the present 4 per cent. In the EU, the market
share increase is expected to be 50 per cent - Irom the current per cent to 9 per
cent.
In the more competitive and experienced world Iashion markets, buyers well
understand the need Ior geographical de-risking - the SARS breakout in China
early this year aIIected the apparel industry severely, sending buyers to build
linkages with India, Hong Kong and others. Besides, there have been incidents oI
terrorist attacks, hurricanes and earthquakes, which can disrupt supply
management and hence the 'need' Ior better geographical diversiIication.
For most buyers China may be the Iirst choice Ior many, but India comes a close
second. MK Panthaki, director, Clothing ManuIacturing Association oI India, says,
"Whether these countries will oblige China in the post-quota regime is a moot
question.
lndla falls Lo saLlsfy Lhe requlremenL of Lhe fall / auLumnwlnLer season when Lhe
demand for coLLon fabrlc dlps 1he wool ouLpuL from Lhe counLry ls of low quallLy
as Lhe shearlng and breedlng of sheeps and goaLs ls noL sclenLlflc 1hough
8ellance lndusLrles ls Lhe worlds blggesL polyesLer maker synLheLlcs accounL for
[usL 14 per cenL of lndlas exporLs 1o balance lLs exporLs beLween lLs peak sprlng
summer peak demand perlods lndla needs Lo dlverslfy lnLo synLheLlcs and wool
CarmenL manufacLurers requlre more Lhan producLlon efflclencles Lo survlve ln
Lhe years ahead 1hey need professlonallsm Lo underLake hardcore markeLlng
focused and conslsLenL poslLlonlng and mosL of all a keen undersLandlng of
fashlons and Lrends Lo cash ln on Lhe advanLage of compeLlng ln a world wlLhouL
quoLas
Accordlng Lo our survey mosL of Lhe lndlan people prefer lmporLed
garmenL because Lhey Lhlnk lmporLed garmenLs provlded beLLer look aL a cheaper
raLe ln lndla Lhere are dlfferenL lmporLed brand are avallable llke LLL
CAn1A8AlL CC11Cn CCun18? CCun1? LCnuCn eLc 1hls ls lmporLanL Whlle
Lhe poLenLlal Lo grow ls lmmense companles have Lo reallse LhaL consumers are
knowledgeable and a fancy name alone ls noL enough unLll Lhe markeL
percepLlon of Lhe LexLlle lndusLry changes or Lhe companles promoLe a dlfferenL
lmage reLurns wlll noL maLerlallse from an lnvesLmenL perspecLlve regardless of
Lhe markeLs poLenLlal Lo grow

Hindustan Uni Liver
Shehnaz Husain
Ayur



And international brands are
GARNIA
RELLE
Indian people are spending most oI the money on the Indian cosmetic brand. In
India there are many beauty parlor oI women and men and they charge a very high
prices. But most oI the Indian people think international brand are most costly and
most oI the international brand are shutted to Indian people that`s a main reason
mostly Indian people preIer Indian cosmetic product.
Indian market is one oI the Iast booming markets in the world. It attract most oI the
Indian and international company towards them. Due to the globalization most oI
international branded company inter in the Indian market and increase the
competition between them. There are diIIerent international competitors which are
present in the Indian market like Lee, Cotton Country, Cantabile, Mc Donald,
Dominos, and Elle etc. These companies try to attract most oI Indian customer.
Most oI the Indian people preIer imported garment and cosmetics because they
think that imported company provided better look and they charge lower prices.








CHAPTER 4

uaLa Analysls
1 Where do you llke Lo go for shopplng?


Category No. oI Respondent Percentage oI
Respondent
Super Market 24 24
Mall 43 43
Traditional.
Shop
1 1
E-Shopping 17 17
Total 100 100

lnLerrelaLlon AL a recenL Llme mosLly cusLomer llke wenL Lo mall 43 and
cusLomer second reference a super markeL 24 and Lhlrd equally LradlLlonal shop
16 and eshopplng 17

2 no of vlslL

Category No. oI Respondent Percentage oI
Respondent
During Weekend 3 3
Monthly 30 30
15-20 Days 18 18
Rarely 1 1
Total 100 100


lnLerpreLaLlon CusLomer behavlor wenL Lo for Lhe shopplng ln Lhe mall
Lshopplng only 36 cusLomer wanL Lo go Lo Lhe durlngly and 30 monLhly
and 18 ln 1320 days and 16 rarely go for shopplng
3 Are you naLlonal brand consclous or noL?

Category No. oI Respondent Percentage oI
Respondent
Yes 7 7
No 33 33
Total 100 100



lnLerpreLaLlon 67 cusLomer sald LhaL we are a naLlonal brand consclous and
only 33 cusLomer noL llke a brand means LhaL he ls noL demanded on naLlonal
branded producL

4 SaLlsfled wlLh Lhe lndlan brand avallable ln Lhe markeL or noL?

Category No. oI Respondent Percentage oI
Respondent
Yes 8 8
No 14 14
Total 100 100






lnLerpreLaLlon ln Lhe markeL 86 cusLomer sald LhaL lndlan branded
producL easy avallable ln Lhe markeL and 14 cusLomer sald LhaL noL easy
avallable ln Lhe recenL markeL

5. 5. II yes you preIer National and International brand?

Category No oI Respondent Percentage oI
respondent
National 74 74
International 2 2
Total 100 100





lnLerpreLaLlon CusLomer buylng behavlor for Lhe lnLernaLlonal readymade
garmenLs and naLlonal readymade garmenLs mosLly llke buylng a naLlonal
readymade garmenLs as 74 and only 26 cusLomer llke buylng lnLernaLlonal
garmenLs

6 lavours ln llberallzaLlon for easy avallablllLy of naLlonal branded readymade
garmenLs?

Category No oI Respondent Percentage oI
respondent
Yes 9 9
No 31 31
Total 100 100



lnLerpreLaLlon 69 cusLomer sald LhaL ln Lhe markeL easy avallablllLy of
lmporLed producL

7 arameLer effecL buylng declslon?
Category No oI Respondent Percentage oI
respondent
Quality 50 50
Price 22 22
Easy Availability 27 27
National & State 1 1
Total 100 100



lnLerpreLaLlon ln Lhe markeL cusLomer behavlor on Lhe basls of Lhe buylng
producL mosLly people prefer a quallLy as 31 and oLher 49 people buylng on
Lhe basls of easy avallablllLy and prlce only 1 people llke a naLlonal and sLaLe
producL
8 Which type oI garments you preIer?

Category No oI Respondent Percentage oI
respondent
Indigenous 9 9
Imported 31 31
Total 100 100




lnLerpreLaLlon 69 cusLomer sald LhaL ln Lhe markeL easy avallablllLy of
lndlan producL So consumer prefer lndlan producL
9 Which type oI Food you preIer?

Category No oI Respondent Percentage oI
respondent
Indigenous 59 59
Imported 41 41
Total 100 100



lnLerpreLaLlon 39 consumer prefers Lhe lndlgenous food as compare Lo
lmporLed food Cnly 41 consumer prefers Lhe lmporLed food

10. Which type oI cosmetic you preIer?

Category No oI Respondent Percentage oI
respondent
Indigenous 0 0
Imported 40 40
Total 100 100







lnLerpreLaLlon 60 consumers prefer Lhe lndlgenous cosmeLlcs compare Lo
lmporLed food Cnly 40 consumer prefers Lhe lmporLed cosmeLlcs





CCNCLUSICN SUGGSLS1ICN

According to my survey changing market trend and customer view and preIerence
shown that customer are now quality sensitive. They want quality products, good
services, easy availability oI product and better perIormance by the products.

These days number oI customer buying Irom malls has been increased also the
Irequency to visit the malls has been increased substantially. People are more Indian
brands conscious and they want to purchase the Indian products because people are
more aware about the Indian product or their national product.
l CusLomer's behavlor always looks for some exLra beneflL wlLh purchaslng
1hey demand for affordable prlce for producL and glfLs wlLh purchaslng
ll lnLernaLlonal Company should make sLraLegy Lo caLer every lncome group
cusLomers ln clLy upper lncome group are affordable Lo purchase buL
lower lncome group ls noL So lnLernaLlonal Company should make pollcles
Lo send Lhelr producL and every home
lll 1he lndlan company should glve more emphasls on adverLlslng Lo creaLe
markeL awareness and Lo make a brand lmage ln Lhe mlnds of lnvesLors
lv 1he lnLernaLlonal Company should do more publlclLy Lhrough road shows
newspaper and adverLlsemenL As Lhls wlll creaLe awareness abouL he fund
and schemes LhaL are aL presenL managed by Lhe lnLernaLlonal Company
v 1hey should keep a close eye on compeLlLor sLraLegy
vl So lndlan and lnLernaLlonal Company should provlde laLesL and rellable
servlce Lo Lhelr cusLomers




8lbllography

8CCkS hlllp koLler MarkeLlng ManagemenL
C8koLharl 8esearch MeLhodology meLhods
Lechnlques

news paper 1he Lconomlc 1lmes
8uslness SLandard
!ournals 8uslness World 8uslness 1oday

WebslLe wwwwlklpedlacom
wwwrblcom



"uestionnaire on Customer survey

Topic:-Buying behaviors consumer International & Indian product.
Name:
Age/sex:
ProIession:
1. Where do you like to go Ior shopping?

a) Super market
b) Mall
c) Traditional shop
d) e- shopping.

2. How many time you like to visit this place?
a) During weekends
b) Monthly
c) 15-20 days
d) Rarely

3. Are you branding conscious?
a) Yes
b) No

4. Are you satisIied with the variety oI brand availability in the market?
a) Yes
b) No


5. II yes you preIer?
a) National brand
b) International brand



. Are you in Iavors oI liberalization Ior easy availability oI imported goods?
a) Yes
b) No

7. Which parameter/s eIIect you`re buying decisions?
a) Quality
b) Price
c) Easy availability
d) national/ state

8. Which type oI garments you preIer?
a) Indigenous
b) Imported

9. Which type oI Iood you preIer?
a) Indigenous
b) Imported

10. Which type oI cosmetic you preIer?
a) Indigenous
b) Imported

11. II you preIer Indigenous product/brand what else can be done to make them
comparison with International brands?
........................
.........................

12. II you preIer indigenous goods what Iascinates towards them.
..........................
..........................