2011

Business Statistics Project

Title: A comparative study of buying behavior of males and females
Submitted to: Mr. Puran Singh

Submitted by: Aparna Bhardwaj Himanshi Birla Manish Grover Sunil Kapoor

10/7/2011

Business Statistics Project

List of contents Title
Introduction Review of literature Need of study Research methodology Data Analysis and Interpretation Conclusion References Annexures

Page number
2 4 6 8 15 19 20 21

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Business Statistics Project INTRODUCTION

A brand can take many forms, including a name, sign, symbol, colour combination or slogan. The word branding began simply as a way to tell one person's cattle from another by means of a hot iron stamp. The word brand has continued to evolve to encompass identity affects the personality of a product, company or service. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service or the companies providing People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation. Careful brand management seeks to make the product or services relevant to the target audience. Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. For example, disney has been successful at branding with their particular script font which it used in the logo for go.com. Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristic. From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding, people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner. Indian consumer perception about brand: The Indian consumer behaves rationally as we all are price conscious. Earlier the concept of brand doesnt exist in India due to less income and awareness among the consumers. In todays era, income and awareness increases side by side among the consumers, results in increase of more branded products among consumers so we can say income directly affect the brands.
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With the increasing demand of brands the competition among the producers increases. They started targeting consumers. In India some consumers never compare cost and benefit of product. But they are very less in numbers. Most of the Indian consumers are belongs to middle class family they have very limited amount in their pocket to spent on products so they always compare cost and benefit of the product. In this study, we are studying the brand consciousness among two broad groups-males and females, and drawing a comparison between their brand perceptions. For this, we are working on the following determinants of brand consciousness. 1. 2. 3. 4. 5. 6. Product brand Product price Quality of the product Income of the consumer Status consciousness Services offered along with the product

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Business Statistics Project REVIEW OF LITERATURE

Research paper 1 Gender differences in German consumer decision-making styles

Vincent-Wayne Mitchell and Gianfranco Walsh(July 2006): Males and females want different products and they are likely to have different ways of thinking about obtaining these. This study furthers an understanding of how gender affects consumers' approaches to decision making. The research used Sproles and Kendall's (1986) consumer styles inventory (CSI) on a sample of 358 German males and females. Although all seven German decisionmaking characteristics found in a previous German study could be confirmed for females, only four could be confirmed for males, raising the question of whether the CSI is equally valid for both genders. Tentative support was found for five new male factors, namely satisfying, enjoyment-variety seeking, fashion-sale seeking, time restricted and economy seeking. The results imply that the CSI has construct validity for females, but appears to be less valid for males. Copyright 2004 Henry Stewart Publications. Title: Research paper 2 An expanded price/brand effect model - a demonstration of heterogeneity in global consumption Sarah maxwell, (2001) In this study, the homogeneity versus heterogeneity of global consumption is tested in a cross-cultural price/brand effect model. Middle-class consumers in two countries are compared: the usa, an established consumer society, and India, a recently developing consumer society. Focus groups demonstrate the tremendous importance of brands in India, but survey data suggest that, compared to americans, Indians actually have a lower perception of brand quality. They need to be convinced of standardized quality. Indians are, in addition, more positive than americans about economizing. This implies that they feel guilty about consumption. These differences between americans and Indians influence how price and brand affect their different purchase decisions: the Indian is a much tougher consumer to whom to sell. The results suggest that consumption, while it is becoming global, is still heterogeneous. It is being interpreted and implemented differently in different cultures. Research paper 3

Consumer decision-making styles: comparison between United States and Korean young consumers.

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Jeanne L. Hafstrom , Jun Soo Chae , Youn Soo Chung: The purpose is to identify decision-making styles of young consumersin Korea and to find if these styles are similar to those of U.S. young consumers. An instrument, based on previous research in the United States, was administered to 310 college students in Korea. Dataare factor analyzed and alpha coefficients are computed for scale reliability. Findings indicate the generality of some consumer decision-making styles. Similarities and differences between cultures are discussed and implications are provided. Research paper 4

Title: The effect of consumer price consciousness on branded purchase Abstract Indrajit Sinha, Rajeev Batra(1999):Several reasons have been advanced to explain the remarkable success and growth of private label brands (plbs) in western europe and north america. One important factor that has not been adequately highlighted is the role of consumer price consciousness and consequent consumer resistance to the prices of national brands. We develop a framework for understanding consumer price consciousness, why it varies across product categories, and how it may result in plb purchase, and calibrate the model on category-level field data. Our findings establish that perceived category risk and perceived price unfairness of national brands in that category are significant antecedents of consumer price consciousness, and that variations in such price consciousness across categories is a significant reason why consumers buy plbs more in some categories than in others. Additionally, we show that perceived pricequality association has a significant effect on private label purchase in risky

Research paper 5

Title: Double heterogeneity in brand consciousness

Andreas Strebinger and Thomas Otter(1998): Cognitive brand consciousness (CBC), i.e. The belief that generally well-known brands regularly offer a higher expectancy value of quality than those which are not extensively advertised or widely known, is often considered to be a one-dimensional construct, both in theory and in practice. Also, it is often investigated with regard to just a single product area. By applying structural equation models to 2 student samples, and a finite mixture of structural equation models to one broad consumer sample, this paper represents a differentiated view of the construct of brand consciousness. The data confirm the assumption that only the minority of consumers have a general, i.e. Onedimensional cbc, whereas the majority think in a more situational way.

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Business Statistics Project NEED FOR STUDY

An introduction to our study
People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. Brand equity is the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. Fact of the well-known brand name is that, the company can sometimes charge premium prices from the consumer. This brand equity is determined to a large extent by the consumer perceptions towards one or more brands. These brand perceptions are determined by the amount of brand consciousness of one or more individuals. Our study deals with determination of this brand consciousness on the basis of the following parameters that we have assumed. 1. 2. 3. 4. 5. 6. Product brand Product price Quality of the product Income of the consumer Status consciousness Services offered along with the product

Objective of our study

Our study aims at studying the brand consciousness among two broad groups-males and females, and drawing a comparison between their brand perceptions. Following are the sub-objectives obtained. Studying quality conscious of individuals Studying brand consciousness of individuals Studying price consciousness of individuals Studying status consciousness of individuals Studying service consciousness of individuals Studying income consciousness of individuals

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Business Statistics Project

Merits of our study

This study will help the producers understand what exactly the todays consumer demands of the market. It will help the marketers to devise new strategies of marketing their product, keeping in mind the todays consumer. It will also make the consumers taking the survey clear of their wants and demands and can help them in enhancing their buying power. It will help the producers build a powerful brand and a positive perception of their brand in the minds of consumers. It will also help the producers to know where they stand in the market.

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Business Statistics Project

RESEARCH METHODOLOGY
Research Design
Research can be classified in one of three categories:

Exploratory research Descriptive research Causal research

These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories.

Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables. Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is characterized by its flexibility.

Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun. There are two basic types of descriptive research: longitudinal studies and crosssectional studies. Longitudinal studies are time series analyses that make repeated measurements of the same individuals, thus allowing one to monitor behavior such as brand-switching. However, longitudinal studies are not necessarily representative since many people may refuse to participate because of the commitment required.
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Cross-sectional studies sample the population to make measurements at a specific point in time. A special type of cross-sectional analysis is a cohort analysis, which tracks an aggregate of individuals who experience the same event within the same time interval over time. Cohort analyses are useful for long-term forecasting of product demand.

Causal research seeks to find cause and effect relationships between variables. It accomplishes this goal through laboratory and field experiments. If the objective is to determine which variable might be causing certain behavior, i.e. whether there is a cause and effect relationship between variables, causal research must be undertaken. In order to determine causality, it is important to hold the variable that is assumed to cause the change in the other variable(s) constant and then measure the changes in the other variable(s). This type of research is very complex and the researcher can never be completely certain that there are not other factors influencing the causal relationship, especially when dealing with peoples attitudes and motivations. There are often much deeper psychological considerations that even the respondent may not be aware of.

The study of buying behaviour of two groups of people and their comparison: Requires surveying people to gain an insight about the culture of their organisation, No forecasts are required Neither does it include finding any cause effect relationship,

Thus, this research qualifies as an EXPLORATORY RESEARCH.

Data collection procedure

Secondary Data Before going through the time and expense of collecting primary data, one should check for secondary data that previously may have been collected for other purposes but that can be used in the immediate study. Secondary data may be internal to the firm, such as sales invoices and warranty cards, or may be external to the firm such as published data or commercially available data. The government census is a valuable source of secondary data. Secondary data has the advantage of saving time and reducing data gathering costs. The disadvantages are that the data may not fit the problem perfectly and that the accuracy may be more difficult to verify for secondary data than for primary data. Some secondary data is republished by organizations other than the original source. Because errors can occur and important explanations may be missing in republished data, one should
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obtain secondary data directly from its source. One also should consider who the source is and whether the results may be biased. There are several criteria that one should use to evaluate secondary data.

Whether the data is useful in the research study. How current the data is and whether it applies to time period of interest. Errors and accuracy - whether the data is dependable and can be verified. Presence of bias in the data. Specifications and methodologies used, including data collection method, response rate, quality and analysis of the data, sample size and sampling technique, and questionnaire design. Objective of the original data collection. Nature of the data, including definition of variables, units of measure, categories used, and relationships examined.

The nature of the study does not quite require any extensive usage of secondary sources of data. But few journals were referred which introduce and elaborate the buying behaviour concept, for analysing the primary data collected. Primary Data Often, secondary data must be supplemented by primary data originated specifically for the study at hand. Some common types of primary data are:

demographic and socioeconomic characteristics psychological and lifestyle characteristics attitudes and opinions awareness and knowledge - for example, brand awareness intentions - for example, purchase intentions. While useful, intentions are not a reliable indication of actual future behavior. motivation - a person's motives are more stable than his/her behavior, so motive is a better predictor of future behavior than is past behavior. behaviour

Primary data can be obtained by communication or by observation. Communication involves questioning respondents either verbally or in writing. This method is versatile, since one need only to ask for the information; however, the response may not be accurate. Communication usually is quicker and cheaper than observation. Observation involves the recording of actions and is performed by either a person or some mechanical or electronic device. Observation is less versatile than communication since some attributes of a person may not be readily observable, such as attitudes, awareness, knowledge, intentions, and motivation. Observation also might take longer since observers may have to wait for appropriate events to occur, though observation using scanner data might be quicker and more cost effective. Observation typically is more accurate than communication.
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Business Statistics Project

Personal interviews have an interviewer bias that mail-in questionnaires do not have. For example, in a personal interview the respondent's perception of the interviewer may affect the responses. For the analysis of the buying behaviour of both the groups, separate questionnaires, consisting of 25 questions in all measuring the different aspects of buying behaviour, were used for both of them. Few feedbacks were also registered by taking personal interviews.

Data collection tools

Questionnaire

Online Forms

Written Feedbacks

Data Collection Tools

Sampling procedure
The aim of the present investigation is to study the buying pattern in of both the genders. In order to collect data, a questionnaire was distributed to many people of different ages. Out of 100 questionnaires, only 66 returned. Of these, 60 have been used in the present study, constituting 30 males and 30 females.

Tools used in the study

MS EXCEL Microsoft Excel provides a set of data analysis tools called the Analysis ToolPak that you can use to save steps when you develop complex statistical or engineering analyses. You provide the data and parameters for each analysis; the tool uses the appropriate statistical or engineering macro functions and then displays the results in an output table. Some tools generate charts in addition to output tables.

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Related worksheet functions Excel provides many other statistical, financial, and engineering worksheet functions. Some of the statistical functions are built-in and others become available when you install the Analysis ToolPak. Accessing the data analysis tools The Analysis ToolPak includes the tools described below. To access these tools, click Data Analysis on the Tools menu. If the Data Analysis command is not available, you need to load the Analysis ToolPak add-in program.

T-Test The Two-Sample t-Test analysis tools test for equality of the population means underlying each sample. The three tools employ different assumptions: that the population variances are equal, that the population variances are not equal, and that the two samples represent before treatment and after treatment observations on the same subjects. For all three tools below, a t-Statistic value, t, is computed and shown as t Stat in the output tables. Depending on the data, this value, t, can be negative or non-negative. Under the assumption of equal underlying population means, if t < 0, P(T <= t) one-tail gives the probability that a value of the t-Statistic would be observed that is more negative than t. If t >=0, P(T <= t) one-tail gives the probability that a value of the t-Statistic would be observed that is more positive than t. t Critical one-tail gives the cutoff value so that the probability of observing a value of the t-Statistic greater than or equal to t Critical one-tail is Alpha. P(T <= t) two-tail gives the probability that a value ot the t-Statistic would be observed that is larger in absolute value than t. P Critical two-tail gives the cutoff value so that the probability of an observed t-Statistic larger in absolute value than P Critical two-tail is Alpha.

t-Test:
Two-Sample Assuming Unequal Variances This analysis tool performs a two-sample student's t-test. This t-test form assumes that the two data sets came from distributions with unequal variances. It is referred to as a heteroscedastic t-test. As with the Equal Variances case above, you can use this t-test to determine whether the two samples are likely to have come from distributions with equal population means. Use this test when the there are distinct subjects in the two samples. Use the Paired test, described below,when there is a single set of subjects and the two samples represent measurements for each subject before and after a treatment. The following formula is used to determine the statistic value t.

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The following formula is used to calculate the degrees of freedom, df. Because the result of the calculation is usually not an integer, the value of df is rounded to the nearest integer to obtain a critical value from the t table. The Excel worksheet function, TTEST, uses the calculated df value without rounding since it is possible to compute a value for TTEST with a non-integer df. Because of these different approaches to determining degrees of freedom, results of TTEST and this t-Test tool will differ in the Unequal Variances case.

We have used t-Test: Two-Sample Assuming Unequal Variances in our study.

Hypothesis Null hypothesis H0: There isnt any change in the buying behavior of males and females. Alternate hypothesis Ha: There is a significant change in the buying behavior of males and females. Variables: 1. 2. 3. 4. 5. 6. Product brand Product price Quality of the product Income of the consumer Status consciousness Services offered along with the product

Type of research design: Quantitative research (a research concerned with the measurement of attitudes, behaviours and perceptions and includes interviewing methods such as telephone, intercept and door-to-door interviews as well as self-completion methods such as mail outs and online surveys. Data collection:
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Primary collection: In the form of questionnaire and survey. Secondary collection: mainly gathered by studying journals, research papers and other articles related to branding. Data collection tools: It consists mainly of questionnaire designed to meet a set of objectives which further helped in reaching the main conclusion

Source of data: Data has been collected a batch of 60 people taking up the yes+ course. Sampling procedure: Size of sample: We have taken a sample of 30 males and 30 females. Sampling technique: Convenience sampling method has been used. Administration: Respondents are mostly young people. Questionnaires are used randomly to collect data. Statistical tool: We have applied the paired t-test (two sample assuming unequal variances) on the data.

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Business Statistics Project DATA ANALYSIS AND INTERPRETATION

We apply paired T-test on the samples and analyzed those using MS excel. Following are the screenshots and results. Step 1 Preparation of questionnaire

We prepared an online questionnaire on google docs and posted it to various people via emails. When we received their responses, we made their tabular summary with the use of MS excel. Following are the screenshots.

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Then we calculated the mean of all the variables for both males and females and recorded the data together in excel. Following is the creenshot.

Male Price Consciousness Quality Consciousness Status Consciousness Income Consciousness Brand Consciousness Service Consciousness 22.76666667 19.93333333 8.366666667 10.03333333 12.96666667 8.033333333

Females 22.8 19.86666667 8.666666667 10.26666667 13.16666667 7.866666667

Then we applied T-test (samples assuming unequal variances) on this data. Following is the screenshot.

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t-Test: Two-Sample Assuming Unequal Variances Variable 1 Variable 2 13.68333333 13.77222 39.119 38.44819 6 6 0 10 -0.024722028 0.49038153 1.812461123 0.980763059 2.228138852

Mean Variance Observations Hypothesized Mean Difference df t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail

Since |t stat| < t critical(two tail), we obtain the result that our results obtained dont lie in the significant region. So the null hypothesis is accepted.

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Business Statistics Project CONCLUSION

By analysing the results of the questionnaire and studying them, we obtain the result that, there isnt a significant difference in the perceptions and buying behaviour of males and females.

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Business Statistics Project REFERENCES

http://scholar.google.co.in http://www.jstor.org/ http://www.wu.ac.at http://www.bizresearchpapers.com

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ANNEXURES
Questionnaire to study buying behaviour and pattern of males and females

Occupation *I am A Student Self employed A Serviceman A Businessman Other:

Age *My age is 10-20 years 20-30 years 30-40 years 40-50 years 50+ years TO STUDY PRICE CONSCIOUSNESS 1. I am a price sensitive customer (I tend to think a lot when it is a matter of buying a heavily priced product). * 1 2 3 4 5 Strongly Disagree Strongly Agree

2. I prefer buying high-priced products when they are available at discounted prices rather than normal times. * 1 2 3 4 5 Strongly Disagree Strongly Agree

3. I think that paying more for something when I can get the same quality at a lower price is foolishness. Id rather go for a low-priced product. * 1 2 3 4 5

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Strongly Disagree Strongly Agree

4. Which of the following, according to you, help build a good brand image? *Please mark one or more options. Quality Communication strategies Competitive prices Good value added services Free trials and discounts Other: 5. I will stick to the same product if their price is increased (I am a loyal customer to the product)? *PLEASE NOTE THAT THIS QUESTION FOLLOWS A REVERSE SCALE. 1 2 3 4 5 Strongly Agree Strongly Disagree

6. I feel that theres no use buying a branded product if their first copy is available at a lower price in the market. * 1 2 3 4 5 Strongly Disagree Strongly Agree

7. I believe that, in a particular sector of products, the better-branded products are always higher priced (or higher priced products always offer superior quality. * 1 2 3 4 5 Strongly Disagree Strongly Agree

TO STUDY QUALITY CONSCIOUSNESS 1. I like buying high-priced products because I believe they are more authentic and of better quality than the ones that are low-priced. * 1 2 3 4 5

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Strongly Disagree Strongly Agree

2. Which of the following, according to you, help build a good brand image? *Please mark one or more options. Quality Communication strategies Competitive prices Good value added services Free trials and discounts Other: 3. I believe that, in a particular sector of products, the better-branded products are always higher priced (or higher priced products always offer superior quality. * 1 2 3 4 5 Strongly Disagree Strongly Agree

4. I believe that luxury brands are long-lasting. * 1 2 3 4 5 Strongly Disagree Strongly Agree

5. I believe that luxury brands have superior quality as compared to the non-brands. * 1 2 3 4 5 Strongly Disagree Strongly Agree

TO STUDY STATUS CONSCIOUSNESS

1. I tend to buy high-priced products only when Im out for shopping with friends because I feel that they help me build up a high status. * 1 2 3 4 5 Strongly disagree Strongly disagree

2. I use branded products because they are uncommon among masses. * 1 2 3 4 5

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Strongly Disagree Strongly Agree

3. I believe that luxury brands look really impressive. * 1 2 3 4 5 Strongly Disagree Strongly Agree

TO STUDY INCOME CONSCIOUSNESS 1. I tend to buy high-priced products in the month in which I get a salary increment or bonus because my pocket doesnt allow me otherwise. * 1 2 3 4 5 Strongly Disagree Strongly Agree

2. I think with increase in income, people become more brand conscious. * 1 2 3 4 5 Strongly Disagree Strongly Agree

3. If my income increases, I will opt for a higher-priced brand even if Im satisfied with the brand Im currently using. * 1 2 3 4 5 Strongly Disagree Strongly Agree

TO STUDY BRAND CONSCIOUSNESS 1. I buy only branded products. * 1 2 3 Strongly Disagree

5 Strongly Agree

2. I am a loyal customer for the products I buy. * 1 2 3 4 5 Strongly Disagree Strongly Agree

3. I believe that association of a product with a particular group of company leads to preference for branded products. * 1 2 3 4 5
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Strongly Disagree Strongly Agree

4. I feel that ranking of branded products as portrayed by magazines, newspapers etc. are fake, biased and influenced. *PLEASE NOTE THAT THIS QUESTION FOLLOWS A REVERSE SCALE. 1 2 3 4 5 Strongly Agree Strongly Disagree

TO STUDY SERVICE CONSCIOUSNESS 1. I believe that luxury brands have good after sales service. * 1 2 3 4 5 Strongly Disagree Strongly Agree

2. I get really irritated when I get calls from sales persons trying to promote their brands. *PLEASE NOTE THAT THIS QUESTION FOLLOWS A REVERSE SCALE. 1 2 3 4 5 Strongly Agree Strongly Disagree

3. Which of the following, according to you, help build a good brand image? *Please mark one or more options. Quality Communication strategies Competitive prices Good value added services Free trials and discounts Other:

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NAME *My name is LOCATION: *My native state/city is

Thank you for your participation. Your opinion / suggestions would be highly valuable for us.

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