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͞DIFFERENT BEHAVIOR OF CONSUMERS ON PRODUCT

SHOE IN DIFFERENT MARKETS͟

A Project report submitted on subject Consumer Behavior.

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e thank Prof. Ranjan Paul in particular for assigning us this topic and
encouraging us to write in first place.

 
     
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˜he study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how

ё ˜he psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);
ё ˜he the psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
ё ˜he behavior of consumers while shopping or making other marketing decisions;
ё uimitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
ё ëow consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer; and
ё ëow marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "˜he study of individuals, groups, or

organizations and the processes they use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer
and society." Although it is not necessary to memorize this definition, it brings up some useful
points:

ё ÷ehavior occurs either for the individual, or in the context of a group (e.g., friends
influence what kinds of clothes a person wears) or an organization (people on the job
make decisions as to which products the firm should use).
ё „onsumer behavior involves the use and disposal of products as well as the study of how
they are purchased. Product use is often of great interest to the marketer, because this
may influence how a product is best positioned or how we can encourage increased
consumption. Since many environmental problems result from product disposal (e.g.,
motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at
landfills) this is also an area of interest.
ё „onsumer behavior involves services and ideas as well as tangible products.

ё ˜he impact of consumer behavior on society is also of relevance. For example,

aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have
serious repercussions for the national health and economy.

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ё ˜he most obvious is for p
 

²i.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule snack advertisements late in the
afternoon. ÷y understanding that new products are usually initially adopted by a few
consumers and only spread later, and then only gradually, to the rest of the population,
we learn that (1) companies that introduce new products must be well financed so that
they can stay afloat until their products become a commercial success and (2) it is
important to please initial customers, since they will in turn influence many subsequent
customers¶ brand choices.
ё A second application is ¢
¢
. In the 1980s, Accutane, a near miracle cure for
acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by
pregnant women. Although physicians were instructed to warn their female patients of
this, a number still became pregnant while taking the drug. ˜o get consumers¶ attention,
the Federal Drug Administration (FDA) took the step of requiring that very graphic
pictures of deformed babies be shown on the medicine containers.
ё  p
 involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work for the
„enters for Disease „ontrol trying to reduce the incidence of transmission of diseases
through illegal drug use. ˜he best solution, obviously, would be if we could get illegal
drug users to stop. ˜his, however, was deemed to be infeasible. It was also determined
that the practice of sharing needles was too ingrained in the drug culture to be stopped.
As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that
encouraged the cleaning of needles in bleach before sharing them, a goal that was
believed to be more realistic.
ё As a final benefit, studying consumer behavior should make us better consumers.
„ommon sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry
detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In
practice, however, you often pay a size ¢
p p by buying the larger quantity. In other
words, in this case, knowing this fact will sensitize you to the need to check the unit cost
labels to determine if you are
 
getting a bargain.

˜here are several units in the market that can be analyzed. Our main thrust in this course is the
consumer. ëowever, we will also need to analyze our own firm¶s strengths and weaknesses and
those of competing firms. Suppose, for example, that we make a product aimed at older
consumers, a growing segment. A competing firm that targets babies, a shrinking market, is
likely to consider repositioning toward our market. ˜o assess a competing firm¶s potential threat,
we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its
brands) against pressures it faces from the market. Finally, we need to assess conditions (the
marketing environment). For example, although we may have developed a product that offers
great appeal for consumers, a recession may cut demand dramatically.

 
     
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˜he ³Running´ „ulture.

˜he Americans & „anadians are ³runners´ by culture.

Exposed to activities, youthfulness and outdoors as child grows up the ³÷arefoot´ „ulture.

Industry experts observed some countries had ³÷arefoot´ preference.

Nike jumped on the barefoot bandwagon with its line of ³Nike Free shoes´, which the company
claims is the closest thing to running barefoot.

 
     
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ڑ Research found that the pressure from the friends for the students ("÷oy-and-girlfriend´
most influencing) and peers in case of the professionals had the most important influence
in the decision process
ڑ ueast pursuing factor is family which was seen in case of the respondents belonging to
age group 35 years and above
ڑ ÷ecause athletic shoes are a product with potential social significance to college students
(use of a particular brand of shoes may be considered to affect their image), and they
want to have the same image as their peers, college students are more likely to turn to
peer groups than to parents for athletic shoe information (ëeath & Scott, 1998)
ڑ Opinion leaders(‘Spokespeople Sports marketers try to attract opinion leaders...they
actually use (pay) spokespeople to market their products. E.g. Michael Jordon (used by
nike)

Some time people would like to buy a product because it is being endorsed by their favorite
celebrity.

NikePlus.com ± Using Reference Group for marketing

 ‘ Nike has created a website that allows runners to connect to other runners around the
world called NikePlus.com
 ‘ ˜o make this online group work, Nike created a Sport Kit sensor, that when synched with
an iPod calculates a runners speed, mileage and calories burned. ˜he runner can then
upload this information to NikePlus.com
 ‘ Runners have used the web site to create groups where members challenge each other to
improve their times and distances. After this kit came out, Nike accounted for 48% of all
running show sales in the U.S. and by 2008 its share in the market was up by 61%
 ‘ ˜hus, nike tries to decipher consumer psychology of turning to a reference group to buy
sports shoes.
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Among the various factors like social, psychological, personal and cultural factors, it was
observed that the consumer give more than 50% preference to his personal choice and
psychological factors for deciding a pair of sports shoes.

 
     
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X‘ ˜hose who participated "less than 5 hours per week" in sports activities spent more
money purchasing sports shoes than those who participated "over 5 hours" per week in
sports activities (So nike is no longer only for the sports people««)

X‘ ˜hose in the income level of "$402 to $863 U.S." spent more on Sports shoes

X‘ ^oung adults and ³unmarried" persons spent more than those who were "married" or
elderly

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Reebok with ³Sincerity´ ± Rahul Dravid( ˜he all),

Punch uine ± ³I am what I am´

Nike with ³„ompetence´- ÷est of competent players (÷est in business)

˜iger woods, Micheal Jordan, Roger Federer

 
     
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%$+"(‘From childhood, running games, hunting and often a nomadic lifestyle accustomed
Native Americans to covering long distances on foot. So, athletic footwear has become a sort of
commodity seeking comfort fitting their lifestyle

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ڑ Athletic shoes are a product closely related to current fashion trends. In a sale at shoe
shop, it was found that college students are influenced by sales agents with similar
attitudes, thoughts, feelings, values, and interests (Austin, 1993)

ڑ ÷rand uoyalty/trust (along with comfort & aesthetics) is the primary reason behind the
purchases made by the respondents & is also the primary driving force behind a repeat
purchase

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ڑ Nike is an excellent example of a company that continues to build brand loyalty to their
already loyal and new customers

ڑ It occurs because the consumer perceives that Nike offers the right product features,
image, and level of quality at the right price

ڑ Since consumer behavior is habitual, Nike constantly reinforces those habits by

reminding consumers of the value of their purchase, coming up with new innovations and
encouraging consumers to buy their product, thus retaining old & encouraging new
customers.

 
     
 

Consumer Buying Decision Process

#Problem INFORMA˜ION EVAuU˜ION OF

Recognitions RESERA„ë Au˜ERNA˜IVES

POST PURCHASE
PURCHASE DECISION
EVALUTION

 
     
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ڑ Footwear is no longer viewed as a commodity that just offers protection for feet. hat
was hitherto considered a µant' is today a basic µNeed¶

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ڑ A study in US revealed that the most common source of information regarding athletic
footwear was : ˜he internet (49%) followed by information sought from salespeople
(46%) and from friends (32%)

ڑ Most frequently mentioned information source by college students for athletic shoes
purchases in a study in „hina : 37.3% students stated that peers were the greatest
information sources followed by salespeople (29.9%), mass media (24.4%), and family
(8.4%).

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ڑ Nike was ranked 31st and Adidas was ranked 71st in the top 100 global brands. ˜he
ranking is based on brand value. It helps consumer to evaluate various options
(Interbrand& ÷usiness eek Survey 2006)

ڑ Major Factors Affecting Sports Shoe Purchasing: "Quality," "style," and "price"

ڑ Another Survey revealed that the product/brand attribute considered to be highly

important by most respondents was : „omfort (97%) followed by Aesthetics/looks (82%)
and durability (77%). ˜he only brand considered to provide all three of them was ³Nike´

Successive Sets Involved in „onsumer Decision Making for Sports Shoes

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÷ata,uiberty, oodland, Puma, „onverse, Nike, Adidas,Reeebok, Jimmy „hoo, Red ˜ape, uee
„ooper, D & G Gucci, Prada.

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÷ata,uiberty,oodland,Puma,Nike,Adidas,Reeebok,uee „ooper.

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PumaNikeAdidasReeebok.

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Nike,Reebok.

 
     
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Visual Merchandising

Art of displaying merchandise in a manner that is appealing to the eyes of the customer.
Includes window displays, signs, interior displays, cosmetic promotions and any other special
sales promotions taking place .

„omponents of Visual Merchandising

Signage,StoreInterior,Marquees-change in season, sale, a special event,promotion ÷anners Store

Exterior Displays.

˜ypes of market taken in consideration for shoes

1.Shopping mall

2.Existing traditional markets

3.weekly market

4.uocal retail shop

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It has wide range and variety of products. It was found that in shopping malls have two behaviors
firstly some of the people goes there only for window shopping like how much range of shoes
price is there and secondly people visits normally and purchase it as they like on their own.e
just went to Saket select city,DuF and ME˜ROPOuI˜IN to get such kind of response.People
normally prefer to buy sports and party shoes they don¶t buy daily using rough shoes.Its is
opened all over week.

Merchandising

˜he action of buying and selling both was amazing at shopping malls.Some of the shops give
product to smaller shops too while some of them never even think to do it due to their selling.

Product display

It was found that product display play important role affecting behavior of customers.Some of
the shops have mirror images ,plastic cases and glass cases to create a centre of attraction in
crowd.

 
     
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Product range

Shopping malls was full of product range ,there were varieties of shoe product we cannot count it
on fingers but it differs from brand to brand.

Pricing Analysis and logical reason

˜he range of price was quite high for small earning people. ÷ut it also act as a best place for
classy people and rich too who often have habit of wearing new shoes.ell pricing also depends
on brand like NIKE was often after Rs.1500,REEbok also feel the same. ÷ata pricing was quite
low for medium class people, some of brand like RA^MONDS ,uEVI¶S did not focus on
pricing because they are having other option for selling of garments .

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For traditional markets we just went chandni chowk for finding behavior of consumers. ell in
this type of market there were mixed reponse because we found all type of crowds.÷ut the
problem was with brands of shoes, we did not found any RED˜APE,uA„OS˜E,uEE
„OPPER.˜here were mainly REE÷OK,÷A˜A,OODuAND,ADIDAS,PUMA and more. It
was found that these shops attracts all type of consumers whether they are using daily wearing
shoes and party as well as sports.Some of shops were giving the goods to smaller shops and
some of them were acting like a retailers. Now at this place behavior wasamazing. ˜he shop
owner has to do lot to attract people but mostly people people were attracted towards retail shops
giving same shoes at low price but there was lagging of varieties due to which some percent of
people were also moving towards near to malls.It generally closed on Saturday.

Merchandising

 
     
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˜he action of buying and selling was superb. ˜here were both smaller shop owners which we
found near by our home and consumers of all classes.

Product display

ell the display was not good as much that we found in shopping malls.Shop owner were using
wooden tables and glass cases only.

Product range

hile the product range was all here but there was a fall in sports type of shoes.˜he mostly
shops were of leather one and ladies footwear.

Pricing Analysis and logical reason

˜he pricing was rapidly changing from one corner to other due to which consumers were also
moving one to other to fulfill there needs at low price.It was competition among all shop owners
ranging Rs.200 to more than 2500.It was the choice of consumers made to do it like that. Its a
kind of transformation was there from traditional to shopping malls.

Picture of Existing ˜raditional Market at „handni „howk

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For this we just went to hauzkhas and Delhi haat.it was the place where we found the higher
version of traditional markets.˜he Delhi ëaat is indeed a window to the world of rich cultural
vibrance. Delhi ëaat brings the distant ends of the traditional threads closer.˜he handicraft stalls
are allotted on a rotational basis to craftsmen from all corners of the vast and varied land of
India, usually for fifteen days ˜hus ensuring that different crafts are available to visitors at each
visit, and also enabling them to buy authentic wares at prices that have not been inflated by high

 
     
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maintenance costs. Shows promoting handicrafts and handlooms are held at the exhibition hall in
the complex.owever, while the village ëaat is a mobile, flexible arrangement, at Dilliëaat, a
permanent ëaat, it is the shops who are mobile and ever - changing thereby offering a
kaleidoscopic view of the richness and diversity of Indian handicrafts and artifacts.It is closed on
˜uesday itself.

Merchandising

„olourful, crowded weekly bazaars are a regular feature of most localities in Delhi. ÷ehind the
obvious popularity of these bazaars, however, lie several hardships and insecurities - issues the
sellers must contend with regularly.˜he Friday bazaarhas been running only for the past 4
years.Most vendors are apparently satisfied with the present system of allotment of space ²
which involves no documentation and is secured by a ten-rupee note every week to the µmen on
beat¶. "˜here are about 400 vendors here; that means the police and M„D-wallahs (from the
Municipal „orporation of Delhi) rake in Rs.4000 every week. ÷ut they do not collect the money
themselves. Instead they send a local  to do this for them. ëe siphons off most of the
money, and very little reaches the beat officers and others at the police station. ÷ut as long as we
pay Rs.10 each every week, nobody bothers us. In South Extension or Greater Kailash, the profit
margins.

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 )# all customers at a large ¢
 
 in which each product is hand-picked to meet
the most
Movers.It was varing from all brands .It includes all indoor and outdoor product
of shoes like sports,leather,steelfibre,boots,light weight ,football ,ladies,boxing,football,and
regular shoes.

Pricing Analysis and logical reason

Prices ranging from Rs 100 to 400, a highly upgraded and sophisticated version of a rural
weekly market called ëaat. It was all due to its village and traditional look up not much
furnished and people often visit there for indoor shoe only.

 
     
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Picture of Dilli ëaat.

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e just move around malviyanagar and south extension area to know the response of consumers
towards shoe behavior.It was not too much complicated.˜he consumers look up for only indoor
and children footwears only.

Merchandising

In local area retail shops were not quite available 5 out of 2 were retails shops and rest of them
were normal selling shops.˜hese shops take all their products from traditional andweekly
markets due to which a lot of bargain was found. ˜he brand was not too much available with
limited number of varities.It generally closed on ˜uesday .

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Product range

It was including only sports ,indoors,leather shoes only.

Pricing Analysis and logical reason

 
     
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˜he price range was not too much high because most of the people moves towards outside for
shoe shopping and reason of bargain is also there.It varies from Rs.500 to 3500. ˜he consumers
mostly buy in case of urgency.

Study revealed that««..

ё ^oungsters are the prime customer of shoes.

ё „ustomers are attracted by signage (reduced price, sales promotion etc.)

ё „ustomers are more concerned about brand image and price (value for money)
when buying from Reebok

ё In terms of gender response, it was found that women were more influenced by
signages as compared to men in making their purchase decisions

ё ˜he degree of attractiveness of different elements in decreasing order is

Display > Store Front> uighting > Interior Design>„olor .

Post Purchase ÷ehavior

ڑ Satisfaction of purchase was very high in Nike and moderate with Reebok.

ڑ Performance = Expectations.

Picture of eekly market