A PROJECT REPORT ON CONSUMER PREFERENCES TOWARDS DIGITAL SHOPPY (A CASE STUDY ON PRATYANKARA ELECTRONICS) PROJECT REPORT Submitted in partial

fulfillment for the award of the degree BACHELOR OF BUSINESS MANAGEMENT KAKATIYA UNIVERSITY Warangal BY M. LAKSHMI NARAYANA H.T. No. : 07605 - 1816 Under the Guidance of V. USHA RANI, M.B.A. DEPARTMENT OF COMMERCE AND BUSINESS MANAGEMENT KAVITHA MEMORIAL DEGREE COLLEGE K HAMMAM

V. USHA RANI, M.B.A. Lecturer in Commerce & Business Management Department of Commerce & Business Management Kavitha Memorial Degree College Kha mmam - 507 002. CERTIFICATE This is to certify that the project report entitled CONSUMER PREFERENCES TOWARDS DIGITAL SHOPPY has been prepared by M. LAKSHMI NARAYANA under my supervision. He has completed this project work as per the rules prescribed for practical wor k done by his and has not been submitted either in full or part for any degree o r diploma or any University earlier. (V. USHA RANI) Project Guide

V. Devender, M.Com., M.Phil. Lecturer in Commerce & Business Management Head of the Department Department of Commerce & Business Management Kavitha Memo rial Degree College Khammam - 507 002. CERTIFICATE This is to certify that the project report entitled CONSUMER PREFERENCES TOWARDS DIGITAL SHOPPY has been prepared by M. LAKSHMI NARAYANA He has completed this project work as per the rules prescribed for practical wor k done by his and has not been submitted either in full or part for any degree o r diploma or any University earlier. (V. DEVENDER) HEAD OF THE DEPARTMENT

DECLARATION I hereby declare that this project report entitled CONSUMER PREFERENCES TOWARDS DIGITAL SHOPPY has prepared by me during the year 2006-2007, under the guidance of V. USHA RANI. I also declare that this project is the result of my own efforts and it has not been submitted to another university for the award of any Degree or Diploma. (M. LAKSHMI NARAYANA ) DATE : PLACE : KHAMMAM.

ACKNOWLEDGEMENT I acknowledge my sincere thanks to Mr. M. Satyanarayana, Principal of Kavitha Me morial Degree College, for his co-operation in an excellent manner to prepare th is project work. My humble thanks to Mr. V. Devender,M.Com., M.Phil. Head of the Department (H.O. D) for his valuable advises. I express my heartful gratitude to my project guide V. USHA RANI, Kavitha Memori al Degree College, Khammam, whose supervision, valuable guidance and help enable d me to complete this work. My sincere thanks to our faculty members Ms. V. Usha Rani, Ms. E. Mamtha, Mrs. S urya Laxmi for the unenviable job of giving instructions and keeping project rol ling and on track. (M. LAKSHMI NARAYANA )

ACKNOWLEDGEMENT I express my deep sense of gratitude to Mr. Sandeep, Manager of the Digital Shop py, Khammam and his staff members for providing the opportunity to take up this project. I am grateful to Mr. Sandeep for his co-operation. I am highly indebted to Mr. Sandeep, Manager, Digital Shoppy for his co-operatio n and valuable suggestion which made me to gain self confidence and to complete my project work successfully. Finally I am happy to thank My friend Vamshi, Naresh and Mani, Phani for encoura ging me continuously to achieve my academic endeavor. (M. LAKSHMI NARAYANA )

CONTENTS I. INTRODUCTION [ Market Positioning Stratergy [ Major Steps involved in buying process [ Need a nd important of study [ Limitations of study [ Methodology 01-12 II. ORGANIZATION PROFILE [ Digital Shoppy Profile [ Website Address [ Company Profile [ Product Profile [ Objectives of Organization 13-30 III. THEORITICAL FRAME WORK [ Theories of consumer behaviour 31-48 [ Consumer behaviour is an indisciplinary Science [ Importants of consumer behav iour for marketers [ Consumer decision making [ The buying decision process

IV. DATA ANALYSIS & INTERPRETATION 49-74 [ Market position [ Rate of performance [ Responce from customers [ Market posit ion V. CONCLUSIONS & SUGGESTIONS [ QUESTIONNAIRE [ BIBLIOGRAPHY 75-77 78-79 80

CERTIFICATE This NARAYANA, is to certify that Mr. M. LAKSHMI S/o. M. SATYANARAYANA bearing Roll No. 07605-1816 a student of our college, studying BACHELOR OF BUSINESS MANA GEMENT (B.B.M), Final has successfully completed his project work entitled CONSU MER PREFERENCES TOWARDS reference to DIGITAL SHOPPY with special DIGITAL SHOPPY. This project is submitted in partial fulfillment for the award of Bachelor's Degree in Business Management. PRINCIPAL

CHAPTER - I INTRODUCTION

INTRODUCTION Marketing is indeed an ancient art; it has been practiced in the one form or oth er since the days of Adam and Eve. Marketing is a comprehensive term and it incl udes all resources and set of activities necessary to direct and facilitate the flow of goods and services from producers to consumer in the process of distribu tion. Its emergence as a management discipline, however it is relatively recent origin. The preindustrial revolution world was characterized by agriculture cum Handicraft economy. Practically every village community produced its own Food, c lothing, shelter and household equipment. Agriculturist and crafts-Men were the main producers of this era. The agriculturists, whether he Produced corn or cott on, meat or butter disposed of the surplus after Meeting his own requirement, in his immediate neighbourhood. In other Words, marketing under those conditions meant a task of producing the Basic necessities of life and hanging them with known consumer gro ups in the immediate neighborhood. This represented stage of barter in the evalu ation meeting. The evaluation of marketing was that of money economy. For reachi ng stages in the industrial new products, new systems of manufacturer, new models of transportation and communication. After Second World War, the size and character of marketers changed enormously. Marketing comprises all activities i nvolved in the determination and satisfaction of consumer needs at a profit.

Segmentation is taking place with regard to all products multiple channels of di stribution are replacing single channels. The good products are being passed thr ough various intermediate before they are finally reaching the consumer. Marketi ng intermediateries are playing vital role in the smooth distribution of goods f rom manufacturer to the consumer. Advertising has become compulsory. Through the y have become costly. Markets are not restricted to as peack market are exist th rough out the country even in foreign countries also. All these has made the com panies to change their attitudes and way of operation. Finally the companies whi ch are best satisfy their customers will be the winners. It is the prime reasona bility of the markets finance the requirements of the markets place and to help their companies translated them into solution that with in customer approval. Th ey are ware much in long term, mutually satisfying customers relations through p roviding quality product service.

DEFINITION OF MARKETING ACCORDING TO THE AMERICAN MARKETING ASSOCIATION :Marketing as the performance of business activities that direct the flow of goods and services from producer to consumer or user PHILIP KOTLER DEFINES :Marketing as the set of human activities directed at facilitating and consummating exchange the essence of marketing is exchange of Products and the transaction is to satisfy human needs and wants. PAU L MAZUR DEFINES :Marketing as the creation and delivery of standard of living to society. Marketing is an out going process of discovering and translating consume r needs and desires into products and services. Serving the consumer demand with the help of marketing channels and then, in turn, expanding the market in the f ace of keen competition. TYPES OF MARKETS :1. On the basis of selling area, we h ave local, National and International markets. 2. On the basis of nature of exch ange dealings, we have spot or cash markets and futures or forward markets.

3. On the basis of nature of goods sold, we have consumer goods market and industri al goods market. 4. On the basis of period we gave short-term and long-term markets. 5. On the basis of nature and magnitude of selling, we have wholesale and retail ma rkets. MARKET POSITIONING STRATERGY A market consist of all potential customers sharing a particular need or want wh o might be willing and able to engage to satisfy that need or want. Thus the siz e of the market depends up on the number of persons who exhibit the need have re sources that interest others and are willing to offer these resources in exchang e for what they want. Originally the term market stood for the place where buyer s and sellers gathered to exchange their goods, such as village square. In other sense market refers to the aggregate demand of the potential buyers for a produ ct or service we generally have different markets that is markets for capital goods, markets of consumer goods, markets for automobiles etc. again in each category cost are producing different products to satisfying the needs of different class of customers. Not all buyer s will notice to be interested in all the ways in brand differs from another. No even it is useful for a company to describe exhaustively to each prospect every detail of difference.

Each firm will want to promote those few differences that will appeal most stron gly to its target market. The firm will want to develop to used positioning, Posi tioning is an act of designing the companies offer so that it occupies a distinc t and valued place in the target customers minds. Positioning calls for the compa nies to decide how many differences and which differences to promote to the targ et customers. 1. UNDER POSITIONING :Some companies discover that buyers have onl y a vague idea of the brand. Buyers dont really know anything special about it. 2 . CONFUSED POSITIONING :Buyers could have a image of the brand. This confusion m ight result from making too any claims or changing the brands positioning too fr equently. 3. DOUBTFUL POSITIONING :Buyers may find it hard to believe the brand claims in views of the product features price or manufacturer. There are many ot her variables had been focused on their positioning. But the question is how far has the positioning done by the company has been perceived by the company. How the customers perceiving Digital Shoppy a different product a compared to other in the same class there and many other questions can be answered by market positio ning study what I have taken.

The companys positioning must be routed in any understand of hoe the target marke t defines value and makes choices among vendors. The positioning task consists o f three steps. First the company has to identify the possible product, services, personal and images diff erences that might be established in relation to competition. Second the company has to apply criteria to select the most importa nt differences. Third the company has to effectively signal to the target market how it differs from its compentetion. The companys product positioning strategy will then enable it to take the next step namely. Plan its competitive marketing strategies. MAJOR STEPS INVOLVED IN BUYING PROCESS The steps involved in buying process are described below. First, we have to cont act a group of customers and ask them to describe when they got the desire to pu rchase that product, how they gathered information regarding that product, how t hey made their final choice and how they felt after purchasing that product. The re are five important phase in consumer decision making process.

CONSUMER DECISION MAKING PROCESS Problem Identification l Search for information l Evaluating the alternatives l Product choice l Out come NEED AND IMPORTANCE OF STUDY :The study of consumer behaviour holds great and ke en interest for us as a consumer, as a student and as a marketer. As a consumer we benefit from insights into own consumptions related decisions and trends. Suc h as what we purchase, when we purchase, where we purchase and how we purchase. The study of consumer behaviour makes us to be aware of the suitable influences, how they perceived to make the product of service choice as we do. As a student of human behaviour, it is important for us to understand interest and external influences, that implies consumers to act in certain consumptions related decisi ons. Buyer behaviour simply a subset of the larger human behaviour.

As a marketer and future marketer, it is important for us to understand why and how individual make their consumption decision, so that we make better marketing strategies without any confusion marketers who know the consumer behaviour will be success in the market. OBJECTIVES OF THE STUDY :The following are the objectives of the study :* To make an analysis of the consumer profile relation to income category, family size etc., in order to identify the brand features of Digital Shoppy consumers. * To make a clear analysis into the brand possessions of Digital Shoppy consumers, in order to highlight the brand preference among Digital Shoppy consumers and i dentify the factors influencing and brand preference. * To make an in depth analysis of major factor baring influences and purchase deci sions and in order to get clear perceptions in to the interplay of different for ces on consumer behaviour for Digital Shoppy * * To identify the problems of customer in final purchase. To provide suggestions b ased on the factors analyzed in the study and trace the decision - making proces s involved in purchase decision.

* To give right suggestions and suitable measures to the dealer for regarding bett er service to customer and to avoid the difficulties of the dealer in changing a potential customer into a prospector customer. * * To identify the availability of spare parts and after sales service. To identify the intension of the consumer in the purchase of Digital Shoppy LIMITATIONS OF THE STUDY :u The study is based on the sample chosen from almost all category people. u u u The sample may not be representative to all the custo mers. The study is limited to khammam and its surrounding areas only. Data prese nted in this study is based on the opinions of the Limited respondents. u u The secondary data is based on the information from News Papers, Magazines and Libra ry literature only. SCOPE : The present study covers only consumers preferences towards Digital Shoppy in Kha mmam city market. This is done based on the data collected from selected respond ents of the same market.

METHODOLOGY In this present study, the information and data collected by using well prepared questionnaire consists of 18 questions are open ended and others are close ende d questions. After collecting the questionnaires from respondents the statistica l tools and inferences are used for tabulation and analyzing the data with sampl e average and percentages. Methodology of the Study : 1. Defining the Problem :It involves developing and understanding of the problem . The research need not be undertaken only for a problem but also for an opportu nity. In this study an attempt has been made to understand the consumer behaviou r in purchasing, using and evaluation with regard to Digital Shoppy. 2. Framing the Objectives :For the present study precise objectives the formulated. The obj ectives provide the base for research work. The objectives answer to questions l ike why of the study, what is expected from the study etc., In this study the obje ctives are clearly defined and presented.

3. Developing the Plant :It calls for decision on the data sources, study approa ches, instruments available, contact methods etc. the data sources used for coll ection of information are both primary and secondary survey approaches is follow ed for the study and questionnaires has been used for collection of primary data . 4. Data Collection and Processing :The data should be collected by the method predetermined. The Primary data has been collected through well designed questio nnaires and personal interviews with dealer and consumers. Secondary data is col lected through various books and catalogues viz., advertising and marketing busi ness India. The information so collected is tabulated, analyzed and interpretati on has been made by appropriate statistical techniques viz., Percentages, tabula tion and graphs. 5. Presentation of Findings :The end results of all the above a nalysis are presented as findings in the project. To collecting the data there a re two sources are used that is Primary and Secondary data.

PRIMARY DATA :This data is collected from the owners of Digital Shoppe through q uestionnaire. SECONDARY DATA :This data is collected from the records of the dea ler, News papers, magazines, information provided by dealer, journals and Digita l Shoppy websites. DESIGN OF STUDY :The present study designed arranged and reported in the followi ng manner.

CHAPTER - II ORGANIZATION PROFILE

ORGANIZATION PROFILE ABOUT PRATYANKARA ELECTRONICS Digital Shoppy is a retail chain of stores for consumer electronics and home appli ances in the most happening states of India- Andhra Pradesh and Karnataka. The r etail chain is promoted by Mr A Mahesh Raju, M.Tech (IIT) under Pratyankara Elec tronics Private Limited. The first Digital Shoppy had commenced its operations i n May 2000 at Raj Bhavan Road, Hyderabad as a beginning. With the excellence in operations, the company expanded its chain of stores in Hyderabad and Bangalore by March 2005 and evolved as a renowned power retail chain. The company had incr eased its presence in all potential centers like Visakhaptnam, Vijayawada, Guntu r and other places of Andhra Pradesh. The company is currently having 16 outlets in process in Andhra Pradesh and Karnataka. The company is now implementing its expansion plan by setting up its show rooms in all potential centers of Andhra Pradesh, Karnataka and Maharashtra by 2006-07 as a part of its mission to become ultimately as a national player in Electronics and Homes Appliances Retail Trad e.

The highlights of the business of the company are: Brand Equity Customer satisfaction and loyalty Best Practices in operations and processes Promoters and Management commitment Commitment to customers Wide array of offering and novel promotional campaigns Low Overhead corporate and operatio nal expenditure Continuous Profit making company The estimated sales of the comp any for the year 2005-06 will be Rs 104 cr as against the sale of Rs 51 cr in the year 20004-05. The comp any is expanding its chain to 100 by 2006-07 with a capital outlay of Rs 17.50 c r and the resources are being proposed from equity participation from strategic partners/investors. With this expansion, the company will be reporting a sale of Rs 500 cr + by the year 2007-08 GROWTH STRATEGY : The company having established 20 show rooms by Feb 06 with adequate infrastruct ure to handle higher number of show rooms, is now in process of establishing 10 more by end of March 2006. The company is now having strengths in the following areas to build and operate larger size of the retail chain.

 Management Team Sourcing Distribution and Logistics Project Team- to identify an d build infrastructure show rooms Procedures and Processes Customer base During the last 5 years, the company had incurred huge advertising and promotional expenditure to build the brand equity and the compan y is now being leveraging the same to scale up the operations. The future expend iture on advertising and promotions will becomes lower in view of the increase i n the network and targeted customer base. THE STRATEGY TO INCREASE THE RETAIL NETWORK NATIONWIDE IN STAGES : Hyderabad and Bangalore already made its presence and only scaling up the number of outlets Andhra Pradesh- already established outlets in potential places like Visakhapatnam, Vijayawada, Guntur, Khammam, Nellore, Hanumakonda etc and the ex pansion is to be done in other dis trict head quarters/ potential centers. Karnataka - proposing to establish its presence in all the potential centers

 Kerala- proposing to establish its presence in all the potential centers Tamilna du- proposing to establish its presence in all the poten tial centers Maharashtr a proposing to extend the operations to Maharashtra once the potential markets i ntapped in Andhra Pradesh and Karnataka Establish the retail network in all Metros and then to the rest of the potential places across the country. The retail network will reach 800 showrooms by 2010 with a $ 1 Billion Turnover. Leveraging the existing infrastructure and brand eq uity for scaling up of show rooms and to achieve higher turnovers- is the marketing s trategy of the company. In the phase I of expansion, the company is proposing to set up 150 show rooms across Andhra Pradesh, Karnataka, Kerala,Tamilnadu and Ma harastra by 2007-08. VISION : To become a No 1 retail chain in India to satisfy the customer needs in electronics goods and home appliances market with global standards.

WEBSITE ADDRESS : Website of "DIGITAL SHOPPY" is "WWW. DIGITALSHOPPY.COM" The we bpage is

CHAPTER - II COMPANY PROFILE

DIGITAL SHOPPY COMPANY PROFILE It is located at the prime business center of Hydrabad, Andhra Pradesh - India, is the biggest centrally air-conditioned show room for Electronic Products never before has any other showroom in India, displayed such wide range of all electr onic products. More than 300 models are on display at our showrooms. Our branchs in Andhra Pradesh are at Raj Bhavan road, Ranigunj, Malakpet, Bigbazar - Abids, Music world - Banjara Hills In Hyderabad And Koramangala In Banglore. Ask for a Live Demonstration facility at our showroom. See, feel and experience before you beco me a proud owner of any electronic products. If you are far off, we are on the n et at your service. We have home delivery facility and sending gifts to your dea r ones. Home Delivery we reach out to the remotest customer at their doorstep, t hanks to the excellent infrastructure backup we have. Gift your dear ones want t o send a gift to your loved ones? Order now, and our messengers worldwide, will send your gift on time. Know whats new we reach out to millions of customers thro ugh mail, door to door campaign and advertisement. Visit our site often to get u pdated on the latest information about all Electronic Products. Be our customer today, we make you our partner forever. Note : for local customers, we are open even on Sundays, just for you.

LOCATION OF THE ORGANISATION Digital Shoppy is situated at Wyra road in Khammam. It is half kilometer away fr om bus stand. It is a business center in the town. It is easy to meet the custom er needs and good transportation facilities are available. STRUCTURE OF THE ORGANISATION GENERAL MANAGER l CASHIER/COMPUTER Operator l l SUPERVISOR l OFFICE BOY l l OFFICE BOY l l ll AUDIO TV REFRIGE SECTION SECTION SECTION lll SALES MAN SALES MAN SALES MAN

CHAPTER - II PRODUCT PROFILE

PRODUCT PROFILE Products are invented mainly for the purpose of entertainment. Now in the presen t competitive world many companies are manufacturing different types of products . DIFFERENT BRANDS AVAILABLE IN MARKET : L.G ONIDA SONY NOKIA IFB EUREKA PANASONIC VIDEOCON PHILIPS AKAI WHIRL POOL VGUAR D ULTRA HCL BPL SAMSUNG TOSHIBA KELEN USHA GODREJ PRODUCTS IN DIGITAL SHOPPY : TELEVISIONS MUSIC SYSTEM FANS WALKMAN CD RICE COOKERS CELLPHONES WATER HEAT IRON BOX REFRIGARATORS DVD PLAYER MIXES LAPTOP GRINDERS PLASMA TV WASHINGMACHINS MICR O OVEN HANDYCAM AIRCONDITION HEATERS LCD WATER DISPENSER FILTER STABILIZER VACCUMCLEANER OVEN KIT These products available in KHAMMAM.

OBJECTIVES OF THE ORGANISATION The basic objective of every business organization is to earn maximum profit. It has the following aims. P P P P P P To earn maximum profit. Providing best service to customers. To promote good wil l among the potential buyer in argumented. Products like after sales service & f ree installations etc. To give maximum benefit and satisfaction to customers of possible low costs. To converts every able buyer into prospectus customer. Duties of Manager : j j j j Day to day adminstration of business. Overall inspection of business To place ov er for new products. Company correspondence Duties of Supervisor : j j j Maintainance of register for products. Maintainance of service register for prod ucts. Supervision of his subordinates.

Duties of Cashier / Computer Operator : j j j j j j j j To gather and collect the information To keep the data in the system To maintain different files in the system To maintain cash book To receive cash To pay cash Maintainance of the cash and daily activities Maintainance of the prepare recor ds for cash activites.

CHAPTER - III THEORITICAL ASPECTS

THEORATICAL ASPECTS (CONSUMER BEHAVIOUR) DEFINATION OF THE CONSUMER BEHAVIOUR :The behaviour that consumer display in sea rching for purchasing using evaluating and disposing of products services and id eas which they expect will satisfy their needs. -Skiffman The study of consumer behaviour deals with how the individual makes decisions to spend their available resource viz. Money time and effort etc., on consumption related items. It incl udes THEORIES OF CONSUMER BEHAVIOUR :Marginal utility theory : This theory is develop ed by classical economists, according to them a consumer will contain to by such products that will deliver him the most utility or maximum satisfaction at rela tive prices. Income and Savings Theory :This theory is based on the fact that pu rchasing power is the real dominant of buying purchasing power on the other hand purchasing power is depended on disposal income.

PSYCHOLOGICAL THEORIES : a. Stimulus response theory : Pavlov skinner and kotles developed this theory th is theory on these basis of experiment they did on analysis Acc., to them learni ng occurs as a person response to some stimuli and is rewarded with need satisfa ction for a connect response. They proved that most recent and frequent stimulat es are remembered and responded this approach is the basis repeated advertisemen t. b. Cognitive theory : This theory was proposed by festigner mainly to explain post buying behaviour. Acc., to his stimulation what is condition by customer k nowledge and his perception believer and attitude perception is the some total o f physical stimulus and personal factor. c. Gestact and field theory : According to this theory learning and consequence behaviour is not independent but it is a total process they argue that human behaviour must be use as individual by pat tern totalities. Behaviour should be explained in terms of all the factors that are in appointing whenever event happens. Thus buying is not motivated by a sing le element. That is the same total of many elements.

CONSUMER BEHAVIOUR IS AN INDISCIPLINARY SCIENCE :Consumer behaviour is a relativ ely new field of study with no history or body of research of its own the new di sciplined borrowed is other scientific disciplines such as psychology, sociology , social psychology cultural anthropology and economics. 1. Physiology : Physiol ogy is the study of the individual. It includes the study of motivation attitude , personality and learning patterns. All this factors are integral to an underst anding of consumer behaviour. They enable us to understand the various consumptions needs of individuals, thei r actions and reactions in response to different, products and products messages and the way personality characteristics and revile experience effect their product choices. 2. Sociology : Sociology is the study of groups the actions of individuals in groups often d iffer from the action of individuals operations alone. The actions of individual in groups often differ from the action of individual operations. The influences of group member ships.

3. Psycho - analytical theory : This theory is developed from the thoughts of se gments board. He explained that the personality has free basic determinations i. e., I.D. Ego, Super Ego. 4. Social Culture theories : The credit for formulating this theory goes Beblem (18891899). And this theory is some times known as Bebl enior model he explain that man is primarily a social animal and his wants and b ehaviour are largely influenced by the group which he is a member. It means effe ct of work group, friendship group, family group, different groups indicates the position or particular group of person is society man essentially social being a intent with other individual a variety of group. In spite of personal differen ces people may be forced to accept decision of society family structure and soci al class on consumer behaviour are relevant to the study of consumer segments in the market place. 5. Social Psychology : Social psychology if an amalgam of soc iology it is the study how an individual operates in a group. The study of consu mer behaviour is not only the study of how groups operate in how individuals are influenced in their personal consumption behaviour.

6. Cultural anthropology : The study of human beings in society is the study of cultural anthropology, in traces the development of the care beliefs, values and customs that are passed down to individuals from their parents and grand parent s and influences their purchase and consumption behaviour. It also include subcu lture i.e., sub-groups within the large society. WHEN TO STUDY CONSUMER BEHAVIOU R :The study of consumer behaviour is concerned with not only how consumer behav iour but with they behave as they do. As consumers, it is important for us to st udy consumer behaviour, so we many gain greater insight into our own consumer re lated decisions what we buy why we buy and how we buy, the study enables us to a nalyze our own consumption decisions and make us aware of the suitable influence s that persuades us to make the product choices we do. IMPORTANCE OF CONSUMER BE HAVIOUR FOR MARKETERS :Consumer behaviour is helpful in understanding the purcha se behaviour and preference of different consumers. As consumer, we differ in te rms of our sex, age, education, occupation, income, family setup, religion, nati onality and social status. Because of these different

background factors we have different needs and we only buy those Brands and serv ices, which we think will satisfy our needs. In today's work of rapidly changing technology-changing firm has to be constantly innovating and understand he late st consumers trends and tastes consumer behaviour provides invaluable clues and guidelines to marketers on new technological frontiers, which they should explor e. A consumer decision to purchase a particular Brand to services is the results is the result of complex interplay of a consumer of variables. The starting poi nt for the company provides the decision process marketing stimuli in the shape of Brands, promotion, price, and distribution strategy. The potential consumer a long with the other stimuli already existing receives the marketing stimuli in t he environment. These stimuli may be social, economic, cultural, technological a nd political in nature. At the point of receiving the marketing stimuli, the con sumer already has a certain mental, emotional and psychological frame of mind de veloped over the years by his cultural, religious, social, family and psychologi cal background. A MODEL OF CONSUMER BEHAVIOUR The hoarding provided the initial stimulus for this purchase and consumption. This was further backed up by other stimuli such as brand display in the shop, watching other consumer buys a partic ular

brand, any point of purchase promotional material, earlier satisfaction, with gi ven brands etc., your response to this stimuli results in a purchase of particul ar brand, In between the process of receiving this stimuli responding to them yo u went through a decision making process. The stimuli, process of decision makin g and response constitutes a simple method of consumer behaviour. EXTERNAL FACTORS INPUT MARKETING STIMULI Brand Price Promotion Channel of distri bution OTHER STIMULI Economic Technological Political Social CONSUMER DECISION MAKING PROCESS BUYER CHARACTERISTICS Psychological Personal an d Cultural characteristics BUYER DECISION Process

There are 4 major factors which influences the buying behaviour of consumers. 1. 2. 3. 4. Cultural factors Social factors. Personal factors. Psychological facto rs. 1. CULTURAL FACTORS : Cultural factors exert the broadest and deepest influence on consumer behaviour. Culture : Culture represents an over all social heritage, a distinctive from of environments adoption by a whole society of people. It in cludes a set of learned beliefs, values, attitudes, morals, customers, habits an d forms of behaviour that are shaped by a society and transmitted to the generat ions with in that society. The child growing up in a society learns a basic set of values, perceptions, preferences and behaviour through a process of socializa tion invoicing the family and other key institutions.

Sub-Culture : Each culture consists of smaller sub culture that provide more spe cific identification and socialization for its, sub culture includes nationaliti es, religious, social groups and geographical regions. Many sub cultures make's important market segments and marketers often design brands and marketing progra ms tailored to their needs. Cross-Culture : To determine whether and how to ente r a foreign market, marketers a need to conduct some form of cross cultural cons umers analysis. Cross culture is defined as the effort to determine to what exte nt the consumers of two or more nations are similar or different. 2. SOCIAL FACTORS : Consumer behaviour is also influenced by such social factors as reference groups, family and social, roles & status. Reference groups : A pe rson has behaviour is strongly influenced by many groups. As person's references groups are those groups that have a direct (face-to-face) or indirect influence on the persons attitudes or behaviour. Group having a direct influencing on a p erson are called membership groups. These are groups to which there is fairly

continuous interaction such as family, friends and neighbours and secondary grou ps which tend to be more formal and where there is less continuous interaction. They include religious organizations, professional associations and trade unions . FAMILY : We can distinguish between two families in the buyers life the family orientations consists of ones parents. From parents a person acquires an orient ation towards religion, polities and economies and sense of personal ambition, s elf worth and love. The marketer needs to determine which member normally with t he product on service, whether the husband is more dominant or the wife or they have equal influence. Roles & Status : A person participation in many groups thr ough out his life, family clubs, organization etc, the person position in each g roup can be defined in the terms of role status. Marketers are aware of the pote ntial of products to become status symbol. 3. PERSONAL FACTORS : Buyers decision s are also influenced by personal characteristics the buyers age, and life stage cycles, occupation, economic circ umstances, life style and personality and self concept.

4. PSYCHOLOGICAL FACTORS : Motivation : Motivation can be described as the drivi ng force with in individuals that impels them to action. This driving force is p roduced by a state of tension, which exists as the result of an unfulfilled need . Perception : Is defined as the process by which an individual selects, organiz es and interprets stimuli into a meaningful and coherent picture of the world. L earning : In the process by which individuals acquire the purchase and consumpti on knowledge and experience they apply to future related behaviour. CONSUMER DECISIONS AND ACTIONS OUTPUT Brand choice Dealer choice Purchase timing

THE BUYING DECISION PROCESS Marketers have to go beyond the various influences o n buyers and develop an understanding of how consumers actually make their buyin g decision. Marketers must identify who makes buying decisions and step in the b uying process. BUYING ROLES For many brands, it is to identify the buyer. Other brands involve a decision making unit consisting of more than one person. This m ay happen due take of technical knowledge or experience or unaware of brands in the markets. Thus we can distinguish five roles peoples might play in buying dec isions. INITIATOR A person who first suggests the idea of buying the particular brand or service. DECIDER A person who decides on a component of a buying decisi on, whether to buy, what to buy, how to buy or where to buy. BUYER The person wh o makes the actual purchase. USERS The person who consume or use the brand.

TYPES OF BUYING BEHAVIOUR Consumer decision making varies with the type of buying decision. There are grea t difference between buying tooth paste, a tennis rocket, a personal computer an d a new tractor. Complex and expensive purchases are likely to involve more buye r deliberation and more participants. As sale distinguished four types of consum er buying behaviour based on the degree of buyer involvement and the degree of d ifference among brands. COMPLEX BUYING DECISION Consumer goes through complex bu ying behaviour when they are highly involved in a purchase and aware of signific ant differences among brands. Consumers are highly self expensive. Typically the consumer doesn't know much about the brand category and has much to learn. DISS ONANCE REDUCING BUYING BEHAVIOUR Some times the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is base d on the fact that the purchase inexpensive, infrequent and risky. In this case buyer will shop around to learn what is available but will buy fairly quickly pe rhaps responding primarily to a good price to purchase convenience. The consumer will be alert to information that justifies his or her decision.

Habitual Buying Behaviour : Many Brands are brought under conditions of low consumer involvement and the abs ence of significant brand differences. Consider broom, consumer has little invol vement in the brand category. They go to the store and reach of the brand. If th ey keep reaching for the same brand, it is out of habit but not strong brand loy alty. If they keep reaching for the same brand, it is out of habit but not stron g brand loyalty. There is good evidence that consumers have low involvement with most low cost frequently purchased brands. With low involvement of brands, cons umer behaviour does not pass through the normal belief attitude behaviour sequen ce. Consumers do not search extensively for information about brands evaluate th eir characteristics and make weighty decision on which brand to buy. Instead the y are passive recipients of information as they watch television or see prints a dvertisement. Advertisement repetitions create brand familiarity rather than bra nd conviction. Consumer don't for a strong attitude towards a brand rather they select it because they are nor highly involved with the brand. Thus for low invo lvement brands the buying process begins with brand beliefs formed by passive le arning and is followed by purchase behaviour which may be followed by evaluation .

VARIETY SEEKING BUYING BEHAVIOUR : Some buying situation is characterized by low consumer involvement but significant brand differences. Here consumers after do a lot of brand switching. Brand switching occurs for the sake of variety rather than dissatisfaction. IMPORTANCE OF STUDY OF CONSUMER BEHAVIOUR : The concept of modern marketing is customer - oriented therefore, there is and h ence need to supply the behaviour of the consumers of account of the following b enefits. 1. PRODUCTION POLICIES :The study of consumer behaviour gives an insight in to t he various factors which incline the consumer to buy the product. The various fa ctors which influence the consumer decision may be packing of the product, quali ty of the product, size of the product pucker color of the product etc., underst anding the consumer behaviour with regard to this aspects with enable the compan y to formulate the production policies suitable to the requirement of consumer. 2. PRICE POLICIES :Consumer behaviour to purchase articles is very much

influence by the price of the product. The buyer of some products only because p articular brand, brand is cheaper than the comparative brands available in the m arket. Thus a consumer behaviour and reactions with regard to the price of vario us commodities will help the marketing manager for improving sales probability. 3. SALES PROMOTIONAL POLICIES :Sales promotional policies enables the managers t o know what motive prompts the buyers to makes purchasers and the marketing depa rtment would be able to decide what advertising media should be followed to stim ulate the desire the purchase. The marketing manager takes the decisions regardi ng brand, packaging discussant, commissions, fights, free samples etc. on the ba sis of consumer behaviour only. Thus for promotion sales of the company products the study of consumer behaviour is inevitable. 4. PUBLIC POLICY CONSERTS :With the increasing of the consumer protection movement, policy marks at the national state and district level become aware of their responsibility to protection the consumer interest and well-being of their constituents. Therefore a national co mmissions, state commission, district formals have been created to protect the i nterest of the consumers all of which by products of equipments and service in o rder to come their organization whether for profits non profits.

WHY TO STUDY CONSUMER BEHAVIOUR :The study of consumer behaviour is concerned wi th not only how consumer behaves but they behave as they do. As consumers it is important for us to study consumer behaviour, so that we may gain greater insigh t into out own consumer related decisions, what we buy, why we buy, how we buy, they study enables us to analyze our own consumption decisions and makes us awar e of suitable influence that persuade us to make the product choice. CONSUMER DE CISION PROCESS :Problem Identification l Search for information l Evaluating the alternatives l Product choice l Out come l Post Purchase Behaviour

1. It is the first stage of problem identification. It means consumer decides in ad vance to satisfy needs and desire. 2. Wherever problems identifications is over immediate the consumer will try to col lect the information about goods services available in the market to satisfy his needs and desires. 3. Wherever the search for information is over the consumer evaluated of analyze wh at are the alternatives available in the market. 4. After the evaluation of alternatives the consumers decided which type of goods a nd services are available in the market to satisfy his needs and desires. 5. 6. At this stage only the consumer will purchase particular type. Consumer ma get p urchase behaviour only after consumption of the goods and services it may be eit her negative or positive.

CHAPTER - IV DATA ANALYSIS & INTERPRETATION

TABLE - I ANALYSIS BASED ON AGE OF THE PEOPLE : S.No. 1 2 3 4 5 OPTIONS BELOW 20 YEARS 21 - 30 YEARS 31 - 40 YEARS 41 - 50 YEARS ABOVE 50 YEARS TOTAL No. OF RESPONDENTS 8 28 24 36 4 100 PERCENTAGE 8% 28% 24% 36% 4% 100% INTERPRETATION : My study has covered different group of people having different ages. 8% respond ents are below 20 years, 28% respondents are 21 - 30 years, 24% respondents are 31 - 40 years, 36% respondents are 41 -50 years and remaining 4% respondents are above 50 years

ANALYSIS BASED ON AGE OF THE PEOPLE 36% 28% 24% BELOW 20 YEARS 21 - 30 YEARS 31 - 40 YEARS 41 - 50 YEARS ABOVE 50 YEARS No of Respondents 4% 8%

TABLE - II ANALYSIS BASED ON MONTHLY INCOME OF THE PEOPLE : S.No. 1 2 3 OPTIONS BELOW 5,000 5,000 - 10,000 10,000 - 20,000 TOTAL No. OF RESPONDENTS 10 65 25 100 PERCENTAGE 10% 65% 25% 100% INTERPRETATION : My study has covered different group of people having different incomes. 10% res pondents are below Rs. 5000/-, 65% respondents are Rs. 5000 - 10,000/-, 25% resp ondents are Rs 10,000 - 20,000/-.

ANALYSIS BASED ON MONTHLY INCOME OF THE PEOPLE 10% 25% 65% BELOW Rs. 5000/Rs. 5000 - 10,000/Rs. 10,000 - 20,000/-

TABLE - III ANALYSIS BASED ON KNOWNING ABOUT DIGITAL SHOPPY : S.No. 1 2 3 4 OPTIONS FRIENDS ADVERTISEMENT OWN DECISION RELATIVES TOTAL No. OF RESPONDENTS 44 32 12 12 100 PERCENTAGE 44% 32% 12% 12 100% INTERPRETATION : After obtaining the information of influencing by 44% customers were influenced by friends, 32% of customers were influenced through advertisem ent, 12% of customers were influenced by there own decision, 12% of customers we re influenced by relatives.

ANALYSIS BASED ON KNOWNING ABOUT DIGITAL SHOPPY 44% 32% FRIENDS ADVERTISEMENT OWN DECISION RELATIVES 12% 12% No of Respondents

TABLE - IV ANALYSIS BASED ON FACTORS INFLUENCED TO PURCHASE PRODUCT IN DIGITAL SHOPPY : S.No. 1 2 3 4 OPTIONS PRICE QUALITY SERVICE RECIEVING TOTAL No. OF RESPONDENTS 41.6 36.2 11.1 11.1 100 PERCENTAGE 41.6% 36.2% 11.1% 11.1% 100% INTERPRETATION : After obtaining the information of influencing by 41.6% custome rs were influenced by Price, 36.2% of customers were influenced by quality, 11.1 % of customers were influenced by service, 11.1% of customers were influenced by recieving.

ANALYSIS BASED ON FACTORS INFLUENCED TO PURCHASE PRODUCT IN DIGITAL SHOPPY 41.6% 36.2% PRICE QUALITY SERVICE RECIEVING 11.1% 11.1% No of Respondents

TABLE - V ANALYSIS BASED ON PRODUCT PURCHASED IN DIGITAL SHOPPY : S.No. 1 2 3 4 OPTIONS TELEVISIONS REFRIGIRATORS WASHING MACHINES OTHERS TOTAL No. OF RESPONDENTS PERCENTAGE 55.5 18.5 3.7 22.3 100 55.5% 18.5% 3.7% 22.3% 100% INTERPRETATION : Out of 100 respondents 55.5% of respondents were purchased Tele visions, 18.5% of respondents were purchased Refrigirators, 3.7% of respondents were purchased Washing Machines and remaining 22.2% of respondents were purchase d other products.

ANALYSIS BASED ON PRODUCT PURCHASED IN DIGITAL SHOPPY 22.3% 3.7% 55.5% 18.5% TELEVISIONS REFRIGIRATORS WASHINING MACHINES OTHERS

TABLE - VI ANALYSIS BASED ON BRAND PREFERED IN DIGITAL SHOPPY : S.No. 1 2 3 4 5 OPTIONS SONY LG SAMSUNG ONIDA OTHERS TOTAL No. OF RESPONDENTS PERCENTAGE 42.3 15.3 3.8 3.8 34.8 100 42.3% 15.3% 3.8% 3.8% 3 4.8% 100% INTERPRETATION : The above table show out of 100 respondents 42.3% of respondent s are using Sony, 15.3% of respondents are using LG, 3.8% of respondents are usi ng Samsung 3.8% of respondents are using Onida and remaining 34.8% of respondent s are using Other brands.

ANALYSIS BASED ON BRAND PREFERED IN DIGITAL SHOPPY 42.3% 34.8% SONY LG SAMSUNG 15.3% ONIDA OTHER 3.8% 3.8% No of Respondents

TABLE - VII ANALYSIS BASED ON SATISFACTION IN DIGITAL SHOPPY : S.No. 1 2 3 OPTIONS EXCELLENT GOOD AVERAGE TOTAL No. OF RESPONDENTS 20 68 12 100 PERCENTAGE 20% 68% 12% 100% INTERPRETATION : Above table interpretes that the satisfaction with digital shop py, 20% of respondents opting that excellent, 68% of respondents opting that goo d, and remaining 12% of respondents opting that average.

ANALYSIS BASED ON SATISFACTION IN DIGITAL SHOPPY 12% 20% 68% EXCELLENT GOOD AVERAGE

TABLE - VIII ANALYSIS BASED ON OPINION ABOUT PRICE IN DIGITAL SHOPPY : S.No. 1 2 OPTIONS REASONABLE HIGH TOTAL No. OF RESPONDENTS 92 8 100 PERCENTAGE 92% 8% 100% INTERPRETATION : Price is influecing factor for any product majority of its resp ondents opinion that the digital shoppy products value is reasonable. only 8% fe el that price is high.

ANALYSIS BASED ON OPINION ABOUT PRICE IN DIGITAL SHOPPY 8% REASONABLE HIGH 92% No of Respondents

TABLE - IX ANALYSIS BASED ON MODE OF PURCHASING IN DIGITAL SHOPPY : S.No. 1 2 3 OPTIONS IMMEDIATE CASH PAYMENT No. OF RESPONDENTS PERCENTAGE 64 20 16 100 64% 20% 16% 100% INSTALMENT BANK FINANCE TOTAL INTERPRETATION : Customers are being punching the digital shoppy through immedia te cash payment are 64% and through instalment 20% and those who are taking the bank finance are 16%.

ANALYSIS BASED ON MODE OF PURCHASING IN DIGITAL SHOPPY 64% IMMEDIATE CASH PAYMENT INSTALMENT BANK FINANCE No of Respondents 20% 16%

TABLE - X ANALYSIS BASED ON PERFORMANCE OF DIGITAL SHOPPY : S.No. 1 2 3 OPTIONS EXCELLENT SATSIFIED AVERAGE TOTAL No. OF RESPONDENTS 12 68 20 100 PERCENTAGE 12% 68% 20% 100% INTERPRETATION : The above table reveals that the majority of the customers that is 12% of respon dents were liking its performances, 68% of respondents were satsified and remain ing 20% of respondents were average about its preformance.

ANALYSIS BASED ON PERFORMANCE OF DIGITAL SHOPPY 12% 20% 68% EXCELLENT SATISFIED AVERAGE

TABLE - XI ANALYSIS BASED ON CHANGES : S.No. 1 2 3 OPTIONS EXCELLENT SATSIFIED AVERAGE TOTAL No. OF RESPONDENTS 37.9 41.3 20.8 100 PERCENTAGE 37.9% 41.3% 20.8% 100% INTERPRETATION : The above table reveals that the majority of the customers that is 12% of respon dents were liking its performances, 68% of respondents were satsified and remain ing 20% of respondents were average about its preformance.

ANALYSIS BASED ON CHANGES 41.3% 37.9% PRICE SERVICE 20.8% ADVERTISEMENT No of Respondents

TABLE - XII ANALYSIS BASED ON MARKET POSITION : S.No. 1 2 3 OPTIONS 1 ST 2 ND 3 RD TOTAL No. OF RESPONDENTS PERCENTAGE 55 40 5 100 55% 40% 5% 100% INTERPRETATION : Out my survey regarding the digital shoppy in which position it has to be placed . The majority of the respondents i.e. 55% of respondents said that it has to be placed in the 1st position, 40% of respondents said that it has to be placed in the 2nd position and remaining respondents said that it has to be placed in 3rd position

ANALYSIS BASED ON MARKET POSITION 55% 40% 1 ST 2 ND 3 RD No of Respondents 5%

TABLE - XIII ANALYSIS BASED ON OPINION ABOUT DIGITAL SHOPPY : S.No. 1 2 OPTIONS GOOD POOR TOTAL No. OF RESPONDENTS 88 12 100 PERCENTAGE 88% 12% 100% INTERPRETATION : Above table shows out of 100 respondents 88% of respondents opi nion on digital shoppy is good and remaining 12% of respondents opinion on digit al shoppy is poor.

ANALYSIS BASED ON OPINION ABOUT DIGITAL SHOPPY 12% 88% GOOD POOR

CHAPTER - V CONCLUSIONS & SUGGESTIONS

CONCLUSION ] It is concluded that there is a priority to specific income group to purchase products in digital shoppy. General income group people can purchase products. ] Out of 100 respondents all are known about digital shoppy. It shows popularity of the digital shoppy. ] Maximum number of respondents were influenced by advertisement and their family members. ] Majority of the respondents feel that the price of product is reasonable. ] Th e product users are considering quality and considering price in purchase of products in digital shoppy. Some people considering both. ] Televisions are acting as an important media in acknowledgement of and followed by magazines. ] Maximum respondents felt the rate of performance of digital shoppy products. Among the counter products is moderate some people felt the rate perfo rmance is maximum.

] Maximum respondents opinion is that Telengana Agencies is coming in competition with digital shoppy. ] Maximum respondents feeling that digital shoppy is satisfactory. ] Maximum res pondents are satisfied with after sale services. ] The most of the respondents o f the study is from the income group of Rs. 5,000 to 20,000 followed by below 5,000 and 20,000.

SUGGESTIONS C Maximum respondents come to know about digital shoppy through advertisement henc e try to make the advertisements more affective. C It suggested that the manager need to provide prompt service when ever customer required. C Telangana agencies is coming in competition with digital shoppy hence bring more new models in digital shoppy as compared to Telangana Agencies. C It is suggested to manager when ever he provides fair services to customer it in fluence to develop sales and brand image. C In developing towns like Khammam most of the people of middle class so it is adv ised to the manager to provide many schemes like finance facilities, coupons, gi ft offers, etc. C C Sales people should maintain cardial friendly relation with the customer It is time to digital shoppy concentrate more on the market as the competition a re so active in the local market now.

CONSUMER PREFERENCES TOWARDS DIGITAL SHOPPY QUESTIONNAIRE 1. 2. 3. 4. 5. Name Age Gender : : : Male Female Occupation : Monthly Income A) Below 5,000 C) 10,000 - 20,000 B) 5,000 - 10,000 D) Above 20,000 [ D) Relatives ] [ ] 6. How do you know about Digital shoppy ? A) Friends B) Advertisement C) Own Decisi on 7. What factors influenced you to purchase product in Digital shoppy ? [ A) Price B ) Quality C) Service D) Recieving [ ] ] 8. Which product you have purchased in Digital shoppy ? A) Television (TV) C) Washi ng Machines B) Refrigirators D) Other 9. Which brand do you preferer in Digital shoppy ? A) SONY C) SAMSUNG B) LG D) ONID A E) Other [ ] 10. Are you satisfied in Digital shoppy ? A) Excellent B) Good C) Average [ ]

11. What is your opinion about the price in Digital shoppy ? A) Low B) Reasonabl e C) High [ ] D) Very High [ ] 12. What is the mode of purchasing in Digital shoppy ? A) Immediate Cash Payment C) Bank Finance B) Instalment D) Other 13. Your opinion about Digital shoppy performance ? A) Excellent B) Satisfied C) Average [ D) Poor [ ] 14. Do you want any changes regarding ? A) Price B) Service C) Advertisement ] D) Models ] 15. Digital shoppy to be placed which position inthe market ? [ A) 1st B) 2nd C) 3rd D) 4th [ 16. Your opinion about Digital shoppy A) Good B) Poor ] If Good give reason _______________________________________ 17. Why Digital shop py crowned so popularily ? _____________________________________________________ ____ 18. How do you rate the performance of Digital shoppy among other shops ? _ ________________________________________________________ 19. Do you offer any su ggestions to capture lion-share in the market ? Suggestion :.................... ............................................................................. .. ................................................................................ ...................................

BIBLIOGRAPHY u J.C. GANDHI Marketing Management, Tata McGraw Hill Publications Ltd., New Delhi, 1997. u PHILIP KOTLER Marketing Management, Prentice Hall of India Pvt. Ltd., New Delhi, 2000. u SHIFFMAN & KANUK Consumer Behaviour, Prentice Hall of India Pvt. Ltd., New Delhi, 1995 u S.A. CHUNA WALLA Consumer Behaviour, Himalaya Publishing House, Mumbai, 2000. u V.S. RAMA SWAMY & S. NAMA KUMARI Marketing Management, MacMillan India Ltd., New Delhi, 2000. u NEWS PAPERS 2 Deccan Cronical The Hindu u MAGAZINES Business Economy 4 P's Business India Business Today