Consumer Buying Behavior

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A Project Report on CONSUMER BUYING BEHAVIOUR TOWARDS VIJAYA DAIRY MILKSubmitted to JNT University, Hyderabad for the partial fulfillment of the requirements for the award of Degree of


Submitted by SUNIL KUMAR .R(H.T.NO.07C31E0032)

Under the Guidance of Mr. R. RAMESH

Department of Business Management




K.Sharath BabuB.Tech, MBA, M.Phil (Ph.D)

Head of the Department Department of Business Management


CERTIFICATEThis is to certify that the project report entitled A STUDY ON CONSUMER BUYING BEHAVIOR TOWARDS VIJAYA DAIRY MILK was carried out by Mr. SUNIL KUMAR R, H.T.No 07C31E0032. Under my guidance. He has completed his project work as per the rules prescribed and submitted to the JNT University, Hyderabad for the partial fulfillment for the award of degree of Master of Business Administration. It is a bonafide work done by him and has not been submitted else where either in part or in full for any degree or diploma of any university earlier.





I, SUNIL KUMAR R, H.T.NO. 07C31EOO32 studying MBA at BALAJI INSTITUTE OF TECHNOLOGICAL AND SCIENCES of here by declare that the project report entitled CONSUMER BUYING BEHAVIOUR TOWARDS VIJAYA DAIRY MILK submitted in partial fulfillment for the award of degree of Master of Business Administration is an original work done by me and not submitted for the award of any degree, diploma, fellowship or other similar titles or prizes.




I would like to thank Mr.CH. SATYANARAYANA, Manager, Vijaya Dairy, Warangal, for giving me an opportunity to do project and helping me in carrying out my project. I would like to thank our Principal Dr. P. NAGESWARA REDDY for permitting me to do the project. I am highly indebted to my Head, Department of Business Management Mr. K. SHARATH BABU for his immense support in completing the project. I am highly thankful to Mr. R. RAMESH, Asst. Professor for his valuable guidance throughout my project work. I also thank my parents, friends and all those who directly or indirectly extended their support in completion of my project.




Everyday we are coming across with television advertisements, newspaper commercial direct mails and sales calls. Someone is always trying to sell something.

Anything that can be offered to a market for attention, acquisition use or consumption that might satisfy want or a need it includes physical object, services and persons places, organization and ideas.

To satisfy their needs and wants of the people who are depending on market where transaction take place.

People are participating in marketing by satisfying their needs and wants through exchange. Exchange is an act obtaining a desired object from someone by offering and something in returns.

Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating and exchanging products and values with others. Activities such as product development research. Communication, distribution, pricing and services are Core Marketing activities


If a market do good job of understanding consumer needs, develop products.That provide superior values and prices, distribution and promotes them effectively, these products will sell very easily.

Peter F Drucker: A Leading Management thinker put them in this way, Aim of marketing is to make selling superfluous. The aim is to know and understand the customer so well that the product or service fits and sells itself. Outstanding Marketing companies stay close to customer.

Duddy &Rerzon: Marketing is the economic process by mean of which goods and services are exchanged and their values determined in terms of money prices.

American Marketing Association : Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods , services to create exchanges that satisfy individual and organizational goals


INTRODUCTION TO CONSUMER BUYING BEHAVIORAn important part of the marketing process is to understand why a customer or buyer makes a purchase. Without such an understanding, businesses find it hard to respond to the customers needs and wants. Marketing theory traditionally splits analysis of buyer or customer behaviour into two broad groups for analysis Consumer Buyers and Industrial Buyers Consumer buyers are those who purchase items for their personal consumption Industrial buyers are those who purchase items on behalf of their business or organization. Businesses now spend considerable sums trying to learn about what makes customers tick. The questions they try to understand are:


Who buys? How do they buy? When do they buy? Where do they buy? Why do they buy? For a marketing manager, the challenge is to understand how customers might respond to the different elements of the marketing mix that are presented to them. If management can understand these customer responses better than the competition, then it is a potentially significant source of competitive advantage.

Definition of Buying BehaviorBuying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand: Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society. A firm needs to analyze Purchase behavior for: Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies.


Stages of the Consumer Buying ProcessSix Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity. The 6 stages are: 1. Problem Recognition(awareness of need) Difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.

2. Information searcho Internal search, memory.


o External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. o A successful information search leaves a buyer with possible alternatives, the evoked set. o Hungry, want to go out and eat, evoked set is o Chinese food o Indian food

3. Evaluation of AlternativesNeed to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives.

4. Purchase decisionChoose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase May differ from decision, time lapse between 4 & 5, product availability.

6. Post-Purchase Evaluation


Outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead.

Types of Consumer Buying BehaviorTypes of consumer buying behavior are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. The four types of consumer buying behavior are:

Routine Response/Programmed BehaviorBuying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making


Buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand. Extensive Decision Making/Complex high involvement Unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process.

Impulse buying, no conscious planning. The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out