A STUDY ON CONSUMER BUYING BEHAVIOURAL PATTERN

TOWARDS CONSUMER PRODUCTS WITH REFERANCE TO RELIANCE

FRESH LTD., IN HYDERBAD CITY

BY
SANTANU SAHOO
(ROLL NO - 3081)
Of

VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT

A PROJECT REPORT

Submitted to the

FACULTY OF RESEARCH MANAGEMENT

In partial fulfillment of the requirements

For the award of the degree

Of

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

IN

MARKETING

MAY- 2008

[1]
 CERTIFICATE

This is to certify that this research was carried out

byMr.SANTANU SAHOO of P.G.D.B.M section – II bearing

the roll number 3081 as a part of academic curriculum under

the guidance of Mr. Madana Mohan in the duration of

academic year 2007-2008 of P.G.D.B.M course in VISHWA

VISHWANI INSTITUTE OF

SYSTEMS & MANAGEMENT.

Name of the Guide: -

Signature of the Guide:-

[2]
 Acknowledgement

AS A MATTER OF ETERNAL COMPLIANCE, I WOULD LIKE TO THANK

FROM DEPTH OF MY HEART THAT ALMIGHTY GOD WHO BLESSED ME,
UP TO END FROM STARTING OF THIS ENDEAVOR.
ALTHOUGH I HAVE VERY LESS COMMAND ON PEN TO
TRANSLATE MY FEELINGS IN THE FORM OF WORDS, YET AT THE
BOTTOM OF MY HEART THERE ARE SPECIAL FEELINGS OF GRATITUDE
TO MR. MADANA MOHAN , THE PERSON WHOSE ADVISE AND
GUIDANCE MADE ME ABLE TO COMPLETE THIS PRESENTATION.
I OWE MY SPECIAL THANKS TO DR. ASHWANI KUMAR, THE DEAN OF
THIS INSTITUTION AND MR.MOHAN.S.RAO, THE DIRECTOR OF
ACADEMICS FOR THEIR EXTREME HELP IN CREATING A SOUND
LEARNING ENVIRONMENT.
I WOULD LIKE TO PAY MY SPECIAL THANKS TO MR. MADAN MOHAN
WHO HELPED ME BY PROVIDING THE BASIC KNOWLEDGE OF
RESEARCH METHODOLOGY.
I TAKE THIS OPPORTUNITY TO CONVEY MY THANKS TO MY BATCH
MATES AND FRIENDS WHOSE CHASTEN MADE ME TO ESCAPE FROM
PERFORMING LOTS OF SILLY MISTAKES.
I ALSO CONVEY MY THANKS TO SENIORS WHOSE MORAL SUPPORT
WAS EXTREMELY VALUABLE TO ME IN COMPLETING THIS VENTURE.
I WOULD LIKE TO EXPRESS MY HEARTFELT SENSE OF GRATITUDE TO
ONE AND ALL.

PLACE: HYDERABAD SANTANU SAHOO

[3]
DATE: 27-04-2008

LIST OF CONTENTS

CHAPTER NO CONTENTS PAGE NO

ABSTRACT
List of Symbols and Abbreviations 5

1 INTRODUCTION 6
1.1 General
1.2 Need for the study 8
1.3 Scope of the study
1.4 Industry Profile 9
1.5 Company Profile
2 RESEARCH METHODOLOGY 10
2.1 Type of Research
2.2 Statement of Objectives
2.3 Research Instrument 11
2.4 Questionnaire Design
2.5 Data Collection
2.6 Sampling Procedure 12
2.7 Sample Size
2.8 Period of Study
2.9 Pilot Survey

3 DATA ANALYSIS AND INFERENCE 13

3.1 Data Analysis
3.2 Statistical Analysis 15

4 SUMMARY OF FINDINGS 17
4.1 General Findings

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 4.2 Statistical Findings

5 SUGGESTIONS AND
RECOMMENDATIONS

6 CONCLUSION

APPENDICES(QUESTIONNNAIRE) P1-P2

REFERENCE 20

LIST OF SYMBOLS AND ABBREVIATIONS

S.NO. ABBREVIATION EXPANSION

1 F Frequency
2 E Expected Frequency
3 O Observed Frequency
4 C.E.F Cumulative Expected

Frequency
5 CF Cumulative Frequency
6 HO Null Hypothesis
7 H1 Alternative Hypothesis

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 CHAPTER – 1

INTRODUCTION

1.1 GENERAL INTRODUCTION:

In present day economy, Marketing is defined as social & managerial
process by which individuals & groups obtain what they need & want through
creating & exchanging value with other.
The basis for marketing is information. Marketing information is needed to
project, compare and evaluate the dealers and consumers preferences.
After duly recognizing the importance of marketing, this topic has been
chosen as the focus of project. It analyze the various facts like price, promotional
aspects and availability etc.,

Marketing has become a complicated job with the increase in the number of
product trades and with the changing life style of people, never a producer directs
approaches the consumers for his products and services in a same way consumer
will never directly knock the door of produces for his need and his wants in this or a
specified wings has to play to keep the role between there two parties to construct a
harmonious relationship.

PROVIDING WHAT IS KNOWN AS CONSUMER VALUE

Moving ahead we first define the term consumer value as: Consumer value is
defined as the ratio between the customer’s perceived benefits (economic, functional
and psychological and the resources (monetary, time effort, psychological ) used to
obtain those benefits.

UNDERSTANDING THE CUSTOMER EXPECTATION :

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 How do buyers form their expectations? Based on a general study conducted in this
field of analyzing the buying pattern it is understood that Customers expectations
finds its evolution from the past buying experience, friends’ and associates’ advice,
and marketers’ and competitors information and promises. If marketers create a high
degree of expectancy, the buyer is likely to be disappointed. Conversely, if the
company sets expectations too low, it fails to attract enough buyers (although it
might satisfy those who do buy).
Today some of the most successful companies are raising the expectations
associated with their product or service and therein are striving to deliver their
performances to match these expectations. These companies are aiming for what is
known as – Total Customer Satisfaction ( TCS).

UNDERSTANDING THE CONSUMER BASED ON VARIOUS

PERSONALITY TYPE :

Marketers are interested in understanding how a difference in personality influences

consumption behavior because such knowledge enables them to understand
consumer and to segment and target those consumers who are likely to respond
positively to their product or service communications.

ATTRACTING CUSTOMERS

Today’s customers are becoming harder to please. They are smarter, more price
conscious, more demanding, less forgiving and they are approached by many more
competitors with equal or better offers..
Companies seeking to expand their profits and sales have to spend considerable time
and resources searching for new customers. To generate leads, the company
develops ads and places them in media that will reach new prospects; it sends direct
mails and makes phone calls to possible new prospects; its sales person participate
in trade choice where they might find new leads; and so on. All this activity
products a list of suspect. The next task is to identify which suspects are really good
prospects.

CUSTOMER RETENTION :

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The over objective of providing value to customers continuously and more
effectively is because the competitors also to try to acquire highly satisfied ( Even
delighted) customers ; the organization’s strategy of customer retention makes in the
best interest of customer
to stay with the company rather than switch to another firm. In almost all business
situations it is more expensive to win new customers than to keep the existing ones.
Studies have shown that small reductions in customer defections produce significant
in profits because of the following reasons.
1 Loyal customers buy more products
2 Loyal customer are less price sensitive and pay less attention to competitors
advertising
3 Servicing existing customers, who are familiar with the firms offering and
processes, is cheaper.
4 Loyal customers spread positive word or mouth and refer other customer.

RELEVANCE OF POST PURCHASE BEHAVIOR

After purchasing the product, the consumer will experience some level of
satisfaction or dissatisfaction. The marketer’s job does not once the produce is sole.
Marketers need to constantly monitory post purchase satisfaction, post purchase
actins an post purchase produce uses.

Need of the study

What is the market size and scope of the Organized Retail in India?
What and where are the growth prospects and issues related to the industry?
What are the factors driving growth in this sector?
Size of organized market segment wise and its growth prospects.
Who are the major players in Indian Retail Industry, their presence and strategies
being used by them and their market positioning?
What are the opportunities & challenges in front of the retailers in India and
emerging

Scope of the study

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 .Market is immense for this sector is poised for the highest growth in the
next 5 years. The India retail industry contributes 10% of the countries GDP and
its current growth rate is 8.5%. In the Indian retail market the scope for growth can
be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from
US$ 394 billion in 2005.

The organized retailing sector in India is only 3% and is expected to rise to 25-
30% by the year 2010. There are under construction at present around 325
departmental stores, 300 new malls, and 1500 supermarkets. This proves that there
is a tremendous scope for growth in the Indian retail market.

INDUSTRY PROFILE

THE HISTORY OF RETAIL IN INDIA

India has been operating within her own unique concept of retiling. Retailing in its
initial period was witnessed at the weekly gathering in a market place where
vendors put on display their goods. Of course, this practices still prevalent in many
towns & cities in India. Then the market saw the emergence of the local baniya &
his neighborhood kirana shop . these were the common local mummy-daddy stores,
located in residential areas. Such shops stocked goods with multipurpose utility &
were built with the vision of providing convenience at the doorstep of the consumer.

However, the post liberalization era, saw retail industry undergoing a revolutionary
changes. The changes in the organized retail industry are visible in the form of new
retailing formats, modern techniques , exclusive retail outlets , etc. Acceptance of
customer of innovative retailing trenda can be attributed to :

• The rapidly going middle class consumers.

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 • Increase per capita spending by consumers.
• Growth in the number of double income households.

RELIANCE FRESH

Company Profile

Reliance Fresh is the retail chain division of Reliance Industries of India which is
headed by Mukesh Ambani. Reliance has entered into this segment by opening new
retail stores into almost every metropolitan and regional area of India. Reliance
plans to invest Rs 25000 crores in the next 4 years in their retail division and plans
to begin retail stores in 784 cities across the country. The Reliance Fresh
supermarket chain is RIL’s Rs 25,000 crore venture and it plans to add more stores
across different g, and

eventually have a pan-India footprint by year 2011. The super marts will sell fresh
fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also
will sport a separate enclosure and supply-chain for non-vegetarian products.
Besides, the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people, according to the company

CHAPTER – 2
RESEARCH METHODoLOGY
‘Research’ means a scientific and systematic search for pertinent information on a
specific topic. Research is a careful investigation or inquiry especially through
search for new facts in any branch of knowledge. Research comprises defining and
redefining problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deductions and reaching conclusions; and at
last carefully testing the conclusions to determine whether they fit the formulating
hypothesis.

‘Methodology’ is defined as “the study of methods by which we gain

knowledge, it deals with cognitive processes imposed on research by the problems
rising from the nature of its subject matter”

2.1 TYPE OF RESEARCH

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 Descriptive type of research has been used in this study ; it involves surveys
and fact findings enquire of different kinds the major purpose of descriptive research
is the description of the state of affairs, as it exists at present. The main
characteristics of this method are that the researcher has no control over the variable;
he can only report what has happened or what is happening. The methods of
research utilized in descriptive research are survey methods of all kinds, including
comparative and correlation methods.

2.2 STATEMENT OF OBJECTIVES

 To find out the awareness level of consumer goods among the key
players in the market.
 To find out the brand used by the customers and the quantity the
owns
 To find out the reasons for using Pantaloon for shoping.
 To find out the satisfaction level of Pantaloon Retail & Other.
 To find out the price level of Consumer products in Pantaloon retail.
 To find out the various promotional offers which intend to for a
particular brand of tiles
 To find the effective media for sales promotion

2.3 RESEARCH INSTRUMENT

The research instrument used in this study is “structured questionnaire”.

Structured questionnaire are those questionnaire in which there are predetermined
question relating to the aspect, for which the researcher collects data. The questions
are presented with exactly the same wording and in the same order to all the
respondents.

2.4 QUESTIONNAIRE DESIGN

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 The structured questionnaire for consumers and dealers was framed with the
following types of questionnaires open ended, closed ended, multiple choice, Rating
and Ranking types of questions.

2.5 DATA COLLECTION

Data refers to information or facts. It includes numerical figures, non-

numerical figures, descriptive facts, and qualitative and quantitative information.
The task of data collection begins after a research problem has been defined and
research plan has been decided.
The nature of the data is both Primary and Secondary data.

Primary data

The primary data are those that are collected through questionnaire and
direct personal interview. The questionnaire was framed in such a manner to obtain
correct information, graded suitably for the study. All the questionnaires were
collected through personal contact from the respondents.

Secondary data

Secondary data has been collected through oral communication. Secondary

data about the company profile and other details were collected from the company
website.

2.6 SAMPLING PROCEDURE

Convenience sampling has been used in this study. Convenience sampling is

used for selection of homogeneous sample for the study. It refers to selecting a
sample of study objects on convenience. It is a non-probability sampling. Thus

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 research study may include study objects, which are conveniently located. Research
findings based on convenient sampling however, cannot be generalized.

2.7SAMPLING SIZE

Due to time and resource constraint the sample size has been taken as 150
for customer. In consultation with the company guide and the project guide.

2.8 PERIOD OF STUDY

During the period the following steps were taken:

 Objectives were set and questionnaire was finalized.
 Data were collected and recorded
 Data were analyzed and interpreted
 Reports were finalized

2.9 PILOT SURVEY

A pilot survey with 25 samples from customers was conducted for testing the
validity of the questions. It was found that there was no need for changes in the
questionnaire and hence the same questionnaire was used for final survey also.

CHAPTER – 3

DATA ANALYSIS AND INTERPRETATION

3.1 DATA ANALYSIS

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 The data after collection has to be processed and analyzed in accordance
with the outline laid down for the purpose at the time of developing the research
plan. This is essential for a scientific study and for ensuring that we have all the
relevant data. Processing implies editing, coding, classification and tabulation of
collected data so that they acquiescent to analysis.

The term analysis refers to the computation of certain measure along with
searching for patterns of relationships that exists among data-groups. Thus “in the
process of analysis, relationships of differences supporting or conflicting with
original or new hypothesis should be subjected to statistical tests of significance to
determine with what validity data can be said to indicate any conclusions”.

Analysis of data in a general way involves a number of closely related

operations that are performed with the purpose of summarizing the collected data
and organizing them in such a manner that answer the research questions.

Table: 3.1.1

OCCUPTION OF RESPONDENTS

S. No Occupation No. of Respondents Percentage %

1. Employee
2. Professional
3. Business
Total

INFERENCE:

Table: 3.1.13

MOST EFFECTIVE
MEDIA FOR ADVERTISING RELIANCE FRESH

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 S. No. Factors No. of Respondents Percentage %
1. Newspaper & Magazines
2. Television
3. Internet
4. Banners & hoarding
5. At the point purchasing
posters
Total

INFERENCE:

Table: 3.1.14

EXPECTION OF PROMOTIONAL ACTIVITY

S. No. Promotional activities No. of Respondents Percentage %

1. Gifts
2. Discount
3. Extra quailty
4. Credit facility
5. Other specify
Total

INFERENCE:

3.2 STATISTICAL ANALYSIS:

3.2.1 CHI-SQUARE TEST:

Introduction:
The chi-square test also knows as non-parametric test or a distribution free
test is used when it is impossible to make any assumption about population. The

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main advantage of using the non-parametric test that, the researcher can analyze
qualitative data.
The name chi-square is generally denoted by the symbol(x2)
Properties:
1. Chi-square cannot be negative in value; it is 0 or a positive value.
2. Chi-square is not symmetrical; it is skewed to the right.
3. There is different chi-square distribution for every number of degrees of
freedom
4. For degrees of freedom exceeding 30, the chi-square distribution
approximated
by the normal distribution.
Formula:
The chi-square test is given by the formula,
Chi-square = Σ (O-E) 2 / E
Where, O - Observed frequency
E - Expected frequency
Steps in the Chi Square:
Step 1: Setting hypothesis – Null hypothesis Ho and alternative hypothesis
H1. In
Ho there is no significance difference between the given variable. In
H1,
here is significant difference between the given variable.

Step: 2 finding the calculated value from the chi square value using the
formula.
Step: 3 finding the tabulated value from chi square table for the level of
significance 3% of freedom (N – 1)

Step: 4 Decision is calculated value is less tan table, Ho is accepted, is

calculate
value is greater than the table value Ho is rejected.
Degrees of Freedom:
Degrees of freedom = (r-1) (c-1)
Where, r = the number of rows in the table
C = the number of columns in the table

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3.2.2 WEIGHTED AVERAGE:
Where the relative importance of the different items is not the same,
weighted arithmetic mean is computed. The term “weighted stands for the relative
importance of the different items. The formula for calculation is,
 Multiply the weights attached to the variable and obtain the total WX
 Divide the total by some of the weights. That is W incase of frequency
distribution is f1, f2, f3,………………. In are weighted given by the
formula.
Σ WX
XW =
ΣW

Where, XW = the weighted arithmetic mean.

X = the variable values.
W = the weights.

3.2.3 KOLMOGORV SMIRNOV TEST:

This test used for comparing the distribution on an ordinal scales. The test is
concerned with degree of agreement between the distribution and some specified
theoretical distribution. It determines whether the scores in the sample can be
reasonably thought to have come from a population having theoretical distribution.

FORMULA:
Dmax = | fo(x) – fe(x) |
Where, fo(x) = Observed cumulative frequency.
Fe(x) = Expected cumulative frequency.
For a sample (n) at 5% level of significance, the critical value of D can be given
by,
1.36 / √ n
Decision arrived from the test is based on calculated value. Comparing with
the critical value (table value); if the calculated value is higher we accept the
alternative hypothesis. Similarly if the calculated value is less than the critical value
we accept null hypothesis.

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 CHAPTER – 4

SUMMARY OF FINDINGS

4.1 GENERAL FINDINGS:

4.2 STATISTICAL FINDINGS:

SUGGESTION AND RECOMMENDATIONS

CONCLUSION

QUESTIONNAIRE

CUSTOMER SURVEY:
1. Which retailer you know?
Pantaloon Big Bazaar India bulls
retail mart
Reliance fresh ITC fresh

RPG Spencer

2. Where you go first for shoping?

Pantaloon Big Bazaar India bulls
retail mart
Reliance fresh ITC fresh

RPG Spencer

3. Which retailer you like most?

__________________________________

4. Why did you purchase product?

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 Brand image Recommended by
friends and
Relatives
Advertisement Brand Reputation

5. What factors that influenced you to purchase from Reliance Fresh?

Price Availability
Quality Aesthetics

6. Have you ever seen the advertisement of Reliance Fresh?

Yes No

7. If yes, in which of the following media?

News paper Radio
TV Hoardings
Others, please specify
________________________________________

P1

8. How is the service of Reliance Fresh?

Excellent Very Good
Good Average
Poor

9. Rank the following factors that influenced you to purchase product from
Reliance Fresh?

RANKS
FACTORS 1 2 3 4 5
Price
Quality
Performance
Availability
Reliability
Service
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 Technology

10. What is your opinion about the awareness of the Brand Reliance Fresh?
Very high High
Medium Low

P2

11. What is your key association when you hear the Brand Name Reliance
Fresh?
Good service Good features
Good quality Implementation of
New Technology
Reasonable price others please specify
_____________________
12. Whether you will switch over to other brands if more benefits are given?
Yes No

13. Whether Reliance Fresh satisfied your expected and perceived quality?
Strongly agree Agree
Neither Agree nor Disagree Disagree
Strongly Disagree

14. Which brand advertisement you have seen most?

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 Pantaloon Big Bazaar India bulls retail
mart
Reliance fresh ITC fresh

RPG Spencer

Your suggestion for the improvement of Reliance Fresh.

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RESPONDENT’S PROFILE:

Name / Company :
Age :
Sex : Male / Female
Address :

Occupation : Private / Public / Self employed

Income Level : Below 10,000/- 10,001/- to
20,000/-
20,001/- to 50,000/- Above
50,000/-

References;

P3

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