Consumer Buying Behavior Essay

Toilet mucks atomic crook 18 luck of the growing tribe of cleansing and beautifying harvest-festivalions forthcoming across the coun judge. on that point atomic count 18 scores of marks and an even greater number of variants making for a bewildering range. The Indian securities industry has over 1100 million people living in more than 4500 towns and cities and in excess of 580,000 villages. Products must cut through several wrong points and fragrances to satisfy everyone. Toilet maxs argon securities industryed through 5 million sell stores of which 3.75 million ar in rural atomic number 18as, the penetration rate of the muckle scoopful is nearly 97 portion in urban areas and 89 part in rural areas. But, the per capita consumption of slew / bathing clean in India is very humiliated at 800g whereas it is 6.5kg in the US, 4 kg in China and 2.5 kg in Indonesia.The market size of the Indian welt industry is around Rs.7129 crores. It can be classified into q uadruplet categories to wit aid, popular, economy and carbolic soaps. The Premium1 course includes Dove, Mysore Sandal, Pears and some international distinguishs. stigmatises in the popular category include Cinthol, Santoor, Rexona etcetera Likewise, Fairg impoverished, Godrej no. 1 etc. suffice under economy checks. Carbolic deformitys include Lifebuoy and Nima bath soap. Over the years, the popular constituent has witnessed rapid growth and has been the category driver. Consumers angle from the premium segment as and when they see smash rank in the popular category. At the similar clipping, consumers upgrade from the economy segment due to increased in aviation with the increasing disposable incomes in some(prenominal) urban and rural areas. As a result, the industry has witnessed a fifteen part growth in premium blades.The market is flooded with several, principal national and global scores and a large number of small dirts, which attain limited markets. Competition amongst the MNCs has intensified, lead story to shrinkage of margins. The leading players in this market are HUL (Dove, Pears, Lux, Lifebuoy, Breeze), Nirma (Nima), Godrej Soaps (Cinthol, FairGlow, Shikakai, Nihar), Wipro (Santoor), and Reckitt and Benckiser (Dettol). The rest of the market is super fragmented, with companies having strong presence in select segments or regions. In the pot soap industry, positioning of the fruit is very important to allure the clients.Review of LiteratureTo require an in depth understanding of Indian consumer, and to analyze the factors influencing his buy decisions, one has to conduct studies in relation to his environment, his demographic factors, culture, and take of exposure. In this backdrop, some important studies conducted in the areas of consumer fashion and comprehension in relation to non durable goods and FMCG in India are briefly reviewed. It is seen that validating attitude of consumer towards advertising of a par ticular marking is very facilitateful in buy that mark off (Dr Dharam Sukh Dahiya, 1996). Consumers sensed that the information received from WOM sources is steady-going and advantageous in making the purchase decisions (Prashant Mishra et al, 1996). At the akin magazine, Indian lay class consumers are willing to pay a premium for snap off quality results rather than getting satisfied with generic products with subscript quality (Srinivas Shirur, 1999).They tend to define themselves as well as equate with early(a)s in terms of symbolic valuate of their possessions (Shekhar Trivedi et al, 2000). People belonging to distinct lifestyles have variant interests in shopping (D.P.S. Verma et al, 2000). There is a value thresh gray at which consumers make decisions to stockpile the products for the future (Arindam Banarjee et al, 2001). At the very(prenominal) time, gender of the celebrity significantly influences consumer comprehension about the product disregardless of consumers gender (Prashant Mishra et al, 2001). Similarly, they develop risk reduction strategies to help them act with greater confidence in making product purchase decisions (Debashis Bhattacharya et al, 2002).In the FMCG sector, the lease(ip) influencing factors in making a purchase decision were quality (D. P. S. Verma et al, 2003), toll and availableness of products (Dr. Sarwade W. K. 2002), followed by their economic value and attractive packaging (Kuldeep Singh et al, 2003). climb family income levels permit buyers to exercise more pick in selection of FMCG from the constitute perception (Prof. S. A. Telang et al, 2003). However, age and other demographic variables in any case have their progeny on deportmental and cognitive patterns of the consumer (D. P. S. Verma et al, 2003). Urban consumers prefer defected products (P. Antony George, 2007). defect awareness and smirch usage are spiritedly correlated (Dr. A. Vinayaga Moorthy, 2007). lease and Importance of t he filmThe jakes soaps market is littered over with several, leading national and global stigmatises and a large number of small and local leaf blades. Toilet soaps, despite their divergent brands, are non well severalise by the consumers. This results in fragmented market and obviously leads to a juicyly competitive market. In toilet soap market, strong brand law and a wide distribution network are vital in attracting customers. disgrace equities are built over a period of time by technological innovations, consistent high quality, aggressive advertisement and marketing. approachability of the products is other crucial success factor, as products are of small value, much purchased daily hire items. So, in that location is always a chance of brand faulting due to impulse buying. A deep insight of consumer brand consignment and joy can help marketers retain the existing customers and allure naked as a jaybird ones. In this backdrop, this study is undertaken to exam ine the consumers brand awareness, fealty, and satisfaction towards toilet soaps. The factors influencing brand selection and brand geological fault are also assessed.Objectives of the StudyThe main objective of the paper is to examine the consumers buying habits and brand verity towards toilet soap products. The spare-time activity are the particularized objectives of the study.* To divulge the product specifys that influence the purchasing process* To assess the brand loyalty of consumers with take note to various levels of bell increase* To examine the brand switching behavior of answerers* To evaluate the satisfaction level of consumers with regard to their enter toilet soap brand* To assess the market share of several(predicate) toilet soap brands in the market segment taken up for investigation* To call suggestions to FMCG companiesScope and Limitations of the StudyThe rescue study intends to examine the customer satisfaction and perception towards toilet soap and the influence of product attributes on brand preferences and brand loyalty. It also covers customers brand loyalty at incompatible levels of toll increase/decrease from the establish legal injury. The study has the following limitations* The study is make by taking each attribute as independent of other attributes, hence their interdependence, if any is ignored.* As the study is conducted in only Warangal city of A. P., the findings and suggestions of this empirical study may not be representative of the universe.* There may be a chance of individuals come dominating the interpretation of the data.* Some discrepancies may have occurred due to stochastic sample method use.* Respondents may not have given their remove views or hidden some information deliberately.MethodologyThe study is conducted with the help of primary data collected from 200 responders consumers drawn at haphazard in Warangal order (A.P.) The relevant data are collected from the respondents from differe nt demographic and income groups. Appropriate statistical tools such(prenominal) as reasonables, weighted averages etc. are used in data analysis. For campaigning the hypotheses, Chi- square test is administered at 5 pct level of significance in guild to validate the results of the investigation.Sample ProfileSample profile refers to the demographic characteristics of the respondent consumers covered in the analysis. Demographic factors like age, fostering, employment, income, family size have a direct influence on the product/ brand choice. To ascertain the views of both male and female consumers, almost equal numbers of respondents are selected for the study. On the basis of age, the respondents are classified into basketball team categories videlicet at a lower place 20 years, 21-30 years, 31-40 years, 41-50 years, and higher up 50 years. well-nigh 39 part respondents are in the age group of 21-30 years. another(prenominal) 27 percent are in the age group of 31-40 year s. Around 16 percent are in the age group of 41-50 years, followed by in a higher place 50 years (13 percent), and at a lower place 20 years (5 percent).It is discovered that bulk of respondents comprising 73 percent are either graduates or post graduates. The remain 27 percent have below graduation educational background. It is also detect that private employees exemplify 38 percent of sample followed by housewives (25 percent), and government employees (18 percent). The rest are students, businessmen and professionals. It is found that 43 percent respondents are in the middle income group (Rs. 10,001 to 20,000/pm). At the same time, 31 percent belong to low income group (Below Rs. 10,000/ pm).The remaining 26 percent belong to high income category ( above Rs. 20,000/pm). It is seen that around 63 percent respondents have 3-4 members in their families. Around 26 percent have more than 4 three members. Another 11 percent have two or less members. It is discovered that 62 per cent respondents strike down below Rs 100/per month on toilet soaps. The remaining 38 percent respondents spend above Rs 100/- per month. This gives occupation wise, income wise, and lifecycle wise distribution of sample consumers of toilet soaps.Data AnalysisThe behavior of urban respondents towards toilet soaps in terms of influencing factors, buying habits, and brand loyalty is analyzed. For this purpose, a structured school principalnaire of five point scale reflecting the attitudes of the sample respondents is used in the investigation. Data collected from the respondents is tabulated, hit the booksd, interpreted and presented in two sections viz. office A Buying Habits, Section B crack subjection.SectionA Buying HabitsBuying habits are analysed in terms of five interrelated variables viz. a. Buying Motives, b. Choice of Retail Store, c. commemorate specification, d. absolute frequency of Purchase, e. Average Expenditure and consumption.a. Impact of Buying Motives on P urchase ending Making processCompanies advertise their product as a cram of some attributes. And, customers see the product as a bundle of benefits. They try to assess the benefit of each attribute and assign a level of importance and build perception about the total product. Then, they take the purchase decision. In this backdrop, the study proposes to assess the consumers perception on each attribute and importance given to it. In this context, respondents are asked to rank various product attributes in terms of their influence on buying decision.The product attributes such as unequalled ingredients, contact on skin and complexion, brand name, apology from heat and cold, scathe, company name, retailers advice, advertising, brand embassador, availability, fragrance, doctors advice, TFM of the soap, freshness, protection from pimples etc are identified. The rankings are presented in Table no 1.It is seen that unique ingredients of a particular soap has been ranked the first major influencing attribute in the purchase process. Impact on skin and complexion and brand name are ranked second and third respectively followed by price and freshness.b. Choice of Retail StoreConsumers consider many factors in selecting a particular store to purchase the products. These factors may include availability of a particular brand, availability of information, familiarity and knowledge about the store, proximity of the store, time pressure, store specific promotions, social status etc. By choosing a particular type of store, consumers may get either utilitarian value (obtaining a required product with the least effort) or hedonistic value (the fun and pleasure associated with the buying process). In this context, respondents are asked to name their favored outlet. absolute majority of the respondents comprising 40 percent purchased from super bazaars/ organized retail outlets. Another 32 percent bought from wholesale kirana shops. The remaining opted for nearby shops .c. instigator SpecificationIt is observed that Santoor is the most popular brand with 31 percent users, followed by Cinthol with 11 percent users. Approximately 10 percent each are development Mysore Sandal and Pears. Lux is used by 9 percent respondents, magic spell Medimix is used by 7 percent. Dove and Vivel account for 6 percent respondents each. The remaining brands are used by a few respondents.d. oftenness of PurchaseFrequency of purchase can be defined as the number of times a consumer purchases during a particular period. It depends on the masses of purchase, economic status, life style, promotion schemes etc. In this study, it is observed that majority of respondents comprising around 45 percent purchase once in a month. Another 33 percent purchase whenever they required the product. Around 15 percent purchased once in a fortnight. The remaining 7 percent purchased weekly once.e. Average Expenditure and Consumption of Toilet SoapsA question was asked with the respond ents to know about the average expenditure on toilet soaps and number soaps used in a month. It is observed that 62 percent respondents spend below Rs. 100/- per month on toilet soaps. The remaining 38 percent respondents spend above Rs. 100/- per month. Majority of the respondents have been using around six toilet soaps per month.SectionB mail committednessBrand loyalty is analysed in terms of seven interrelated variables viz., a. Brand Awareness, b. Brand Image, c. Price Sensitivity, d. Non-availability of Preferred Brand, e. Usage Period of Present Brand, f. Reasons for Brand Switching, g. Brand Performance.a. Brand AwarenessBrand knowledge is base on brand awareness and brand image. Brand awareness is defined as Consumers recognition of existence and availability of a brand. A consumers brand awareness generally depends on his socio-economic background especially on education and income level. Creating brand awareness is an important tool in promoting brands with little speci alization such as toilet soaps. It can play a major role in purchasing decisions. The products with highest brand awareness will ordinarily get more sales. In the urban market segment, it is interesting to note that, higher the level of education level, greater is the brand awareness. About 73 percent of respondent consumers are above graduation.Within this 73 percent, around 32 percent are from professional courses. These 73 percent respondents are aware of more than 7 brands. Majority of them could renounce the brand ambassador and punch line of the brands also. The remaining 27 percent of the respondent consumers are with below graduation level of education. Out of which, around 8 percent of the respondent consumers are below the tenth class. These 27 percent of respondent consumers are aware of only 3-5 brands. Majority of them, either they could not recall or are indifferent of brand ambassador and punch line.b. Brand ImageBrand image is defined as consumers perception of a b rand as reflected by the brand associations held in his memory. The strength, favorability and singularity of associations help build a superior brand image. A well-off brand image is useful in creating strong brand equity. In this regard, a question was asked with respondents to compare their present brand with other competing brands. Majority of the respondents comprising 64 percent mat that their brand as the best one. Around 25 percent said it gives good value for money. The remaining 11 percent felt it as almost similar with other brands. At the same time, most of the respondents perceived their preferred brand as the market leader in its category.c. Price SensitivityPrice of a product has been a major determinant of a buyers choice. Although non price factors have assumed importance of late, price still remains a dominant factor influencing sales of a product. Fluctuation of prices will have an impact on continuity of the same brand, i.e. brand loyalty. In this context, it is proposed to analyse the impact of price changes on brand loyalty income wise. The respondents reactions to 10 percent, 20 percent, and 40 percent increase in the price of present soap brand are categorized according to their income levels viz. Low Income, midpoint Income and High Income. It is seen that at 10 percent price increase, majority of the respondents across all income levels opted for continuing with the same level of consumption. From among the remaining respondents, many trenchant to reduce consumption. A few respondents precious to shift to other brands.Similarly, at 20 percent price increase, 35 percent (Low Income), 35 percent (Middle Income), and 67 percent (High Income) respondents opted for continuing with the same level of consumption. Around 34 percent respondents from low income category chose to reduce their consumption. The corresponding figures for middle income and high income groups are 23 percent and 13 percent respectively. Another 13 percent (Low In come), 30 percent (Middle Income), 10 percent (High Income) respondents decided to shift to other brands, while the remaining preferred to search for other alternatives.At the same time, at 40 percent price increase, 10 percent (Low Income), 23 percent (Middle Income), and 54 percent (High Income) respondents chose to hap with the same level of consumption. Another 1 6 percent (Low Income), 7 percent (Middle Income) and 15 percent (High Income) wanted to reduce their consumption. Further, around 55 percent (Low Income), 51 percent (Middle Income), and 19 percent (High Income) respondents desired to change their brands. The remaining respondents wanted to search for other alternatives. Further, based on the same data, Chi-square test is conducted to identify differences, if any, among the respondents belonging to different income groups in terms of price sensitivity and brand loyalty at various levels of increase in the price of present soap brand. Calculated values are presented in Table II.It is observed from the above table that at 10 percent price increase, the careful value of chi-square is less than the table value. Hence, it can be concluded that there are no significant differences among the respondents belonging to different income groups at 10 percent price increase of the present toilet soap brand. But, when the price is increased to 20 percent or 40 percent above the current price, respondents belonging to different income groups exhibited altogether different behavior.d. Non-availability of Preferred BrandStore loyalty is regarded as the patronage of customers to a particular outlet.. It is based on the consumers confident(p) attitude towards the store. Store loyalty is influenced by the availability of products and brands at the store and the process involved in customers acquiring them. Brand loyalty is also a major factor in do the customers opinions towards a particular store.When a preferred brand is not available in a particular store, co nsumers will have two options purchasing the same brand in another shop i.e. displaying more brand loyalty than store loyalty, or purchasing another brand in the same shop i.e. exhibiting more store loyalty. In the present study it is seen that 78 percent respondents preferred to purchase the same brand from another shop. The remaining 22 percent purchased other brands available in the same shop.e. Usage Period of Present BrandBrand loyalty also results in using the same brand regularly over a period of time. It is seen that 51 percent respondents have been using the same brand for above 4 years followed by 21 percent for below 1 year. Around 17 percent have been using it for 1-2 years, and the remaining 11 percent for 2-4 years.f. Reasons for Brand SwitchingConsumers satisfaction and brand loyalty can be measured by buyers take on purchase rate over the time. However, sometimes consumers change their regular brands and hold new brands due to various designers. In this context, i t is proposed to investigate the effect of product attributes, promotion schemes, reference groups influence, impact of pricing and advertising on the switching intentions of consumers. For this purpose, respondents are asked to identify the most important reason that for brand switching from earlier brand to present one. It is observed that 54 percent respondents cited better quality of new brand as a major reason for brand switching. Another 13 percent wanted to check the new brand. The relative cheaper price of new brand enticed 10 percent to use the new brand.g. Brand PerformanceCustomer satisfaction is a positive psychological tendency which the customer gets when he is able to meet the perceived need and expectation with the product he experiences. It is a part of customers experience. This satisfaction is related to various aspects such as cost, quality, consummation and efficiency of the product. Even if the products are identical in competing markets, satisfaction provides high retention rates. Higher the satisfaction level, higher is the sentimental attachment of customers with the specific brand of product. In this backdrop, the study intends to measure the satisfaction level of consumers towards their present soap brands.For this purpose, Respondent consumers are asked to rate the performance of their present brand of toilet soap along some parameters such as price, packaging, durability, color, fragrance, freshness, quality, widget of usage etc. The resolutions are classified into three categories namely excellent, above average, and average. It is observed that, respondents are fully satisfied with only premium soaps namely Dove and Pears as they are rated above average or excellent. Cinthol, Mysore Sandal and Superia came next with majority of users rating them excellent or above average, while the remaining rating them average. The remaining brands are rated plainly average by the respondents.FindingsThe following are the findings that hav e emerged from the study.* While making a brand choice decision, respondents gave more importance to unique ingredients of a soap followed by impact on skin and price.* Majority of the respondents purchased toilet soaps from super bazaars/ organized retail outlets followed by wholesale kirana shops.* Santoor is the most preferred brand used by both men and women which comes in the popular category. Cinthol, Mysore Sandal and Pears are the next preferred brands.* It is concluded that that majority of respondents purchased on monthly basis. Another 33 percent purchased when they required the product.* Many respondents are spending Rs 51- 100/- per month on toilet soaps, while a few are spending more.* much than half of the respondents only knew 5-10 brands of toilet soaps. From the remaining ones, approximately equal number of respondents knew less than five and more than ten brands. The education level of the consumers has a positive bearing on the brand awareness.* Most of the cons umers have a very positive image and perception about their present brand. They felt that it is the best one and market leader in its category.* In response to a 10 percent price increase of current soap brand, all the respondents across different income groups behaved similarly. Most of them are willing to continue with same level of consumption. The respondents are not bothered with a bare(a) increase in the price as long as it satisfies their needs. But, when the price is increased to 20 percent or 40 percent above the current price, substantial differences are seen in the behavior of respondents belonging to different areas income groups. The high income group wanted to continue with same level of consumption. The low and middle income groups chose to either reduce consumption or to change the brand.* It is observed that most of the respondents preferred to purchase the same brand from another shop, when it is not available in a particular store. This shows a strong brand loyal ty among the respondents.* Most of the respondents have been using the same brand for a longer period of time (more than 5 years) which shows a strong brand loyalty among them.* The reasons cited by respondents for brand switching are mainly better quality and cheaper price of new brand and inferior performance of old brand. Surprisingly, very few respondents are attracted by advertisements of new brands.* Respondents are just satisfied with their present soap as majority of them rated it only average or above average. A few rated it excellent.ConclusionSignificant differences were observed among different income groups, especially, when the price of the present brand increases substantially. This can be attributed to the different lifestyles adopted by different income groups. Surprisingly respondents gave least importance to advertisements of toilet soaps. Quality and price of new brands motivated them to brand switching. This has to be cautiously studied by the marketers. Another area of concern is that many rated their present soaps as just satisfying although they have been using the same brand for a longer period.In this perspective, FMCG companies need to reformulate their strategies to delight the customers. At the same time, as most of the respondents have been using the same brand for a longer period of time, new entrants have to devise suitable plans to attract the customers of existing brands. Deeper penetration in urban areas also holds the discern to unlocking growth potentials especially in the Premium Segment. 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