i SOAPS - AN EXPLORATIVE STUDY ON CONSUMER BEHAVIOUR IN BANGALORE CITY THESIS Submitted by H.S. ADITHYA For the award of the degree Of DOCTOR OF PHILOSOPHY DEPARTMENT OF MANAGEMENT STUDIES Dr. M.G.R EDUCATIONAL AND RESEARCH INSTITUTE UNIVERSITY (Declared U/S 3 of the UGC Act, 1956) CHENNAI 600 095 AUGUST 2011
DEDICATED TO MY BELOVED PARENTS ii
iii DECLARATION I declare that the Thesis entitled SOAPS - AN EXPLORATIVE STUDY ON CONSUMER BEHAVIOUR IN BANGALORE CITY submitted by me for the Degree of Doctor of Philosophy is the record of work carried out by me during the period from August 2006 to August 2011 under the guidance of Dr. S Ramalingam, Head Department of Management Studies, Dr. MGR University, Chennai and has not formed the basis for the award of any degree, diploma, associate-ship, fellowship, titles in this or any other university or other similar institution of higher learning.
iv BONAFIDE CERTIFICATE Certified that this Thesis Titled SOAPS - AN EXPLORATIVE STUDY ON CONSUMER BEHAVIOUR IN BANGALORE CITY is the bonafide work of H.S ADITHYA who carried out the Research under my Supervision. Certified further, that to the best of my Knowledge the work reported herein does not form part of any other Thesis or Dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
v ABSTRACT India is a vast country with abundance of natural resources. It is having a population of 1,030 million. There are large number of consumers with different kinds of needs, tastes, preferences, attitude, behaviour, character, conduct, nature, likes and dislikes which must be taken into consideration while going for segmenting, targeting and positioning of the products in the minds of the consumers. In recent times, India has witnessed a wave of change. With media exposure and increasing literacy levels, people in India are now demanding a better lifestyle. The Indian market is a place where life has revolved around deep rooted community values, joint families and social customs. Indian consumers think of a purchase in terms of how it serves their needs and how well it suits the family, rather than the individual. It is felt by marketers that the traditional routes of market entry and brand building are often not feasible. While the intrinsic value with regard to functionality is created by the marketer through the offering, consumer psyche plays a vital role with regard to short and long term effects of brand associations. Huge amount of money is being spent by marketers to develop and understand the behaviour of consumers with a conviction that this understanding will create differentiation. Cultural dimensions play an important role with regard to how the consumer s mind adapts to the development of a product. Direct media promotions have helped to build knowledge of product categories and change long-entrenched living habits. There are diversified consumers, marketers, customs, traditions and behaviorial aspects of consumers but still there are many similarities. The study of consumer behaviour enables the marketers to understand and predict consumer behaviour in the marketplace which also promotes understanding the role of
vi consumption which plays in the lives of the individuals and also to understand the important sources to create awareness of the products. It helps in evolving better promotion strategies which will help to enhance the level of awareness of the consumers and creating a need for their products. Consumer satisfaction is the most important goal of a business enterprise. The key to ensure consumer satisfaction lies in understanding the consumer likes and dislikes and in nutshell the consumer behaviour. Knowledge of the consumer behaviour helps a firm to seek a better and more effective sales and advertising strategies and to plan its marketing program in a more effective manner. Consumers have different views and levels regarding the decision making process. Their decision to purchase or not to purchase a product is an important moment for the marketers. Consumer research is used to better understand consumption behaviour. Depending upon the consumers and available resources an appropriate method is used which is most effective in measuring consumer behaviour. Bangalore City is a cosmopolitan city where there are different kinds of people with different cultures. The Indian government policies and programs has made the consumer market scenario to undergo a rapid change. Each consumer has different kinds of needs, tastes, preferences, attitudes, behaviour, character, conduct, nature, likes & dislikes, lifestyle, literacy level, consumption expenditure and communication. The present study is undertaken particularly to understand the consumers, their attitudes, characteristics, tastes, preferences and also to understand the importance of retailers. It will brief the behaviour of the consumers with respect to toilet soaps in the present market scenario with specific reference to Bangalore City.
vii The basic idea of the research is to survey the behaviour of the consumers while consuming the toilet soaps in the market and how they utilize the marketing skills and applications in making sound consumption decisions. This research study helps to put into practice the theoretical aspects of the study. The present study would definitely help to learn about the sources of information s for the customers during different stages of buying toilet soaps and hence enhances their level of awareness and brand preference for toilet soaps. It is essential for the marketers to understand the important sources to create awareness of their products. The present study helps them to evolve better promotion strategies which will help to enhance the level of awareness of the consumers and creating a need for their products. Key Words: Consumer Behaviour, Consumer Research, Toilet Soaps, Consumer Satisfaction, Consumer Awareness.
8 ACKNOWLEDGEMENTS I am highly indebted to Dr. S Ramalingam, Head Department of Management Studies, Dr. M.G.R University, Chennai for having been my Research Supervisor. I wish to express my deep sense of gratitude for his valuable guidance, encouragement and thought provoking interactions. I would like to appreciate his nature of providing freedom and appreciation to students, having confidence in students and utmost patience, by which I am benefited to a maximum extent. I wish to express my thanks to Dean (Research) and Dr. P. Kaliaperumal, Dean (Purchase and MBA), Dr M.G.R University, Chennai, for their valuable suggestions during the research work. I am highly grateful to his holiness Jagadguru, Sri Sri Bharathi Teertha Mahaswamiji, of Sri Sringeri Mutt, Sringeri for his blessings. I am also grateful to Dr. Manjunath, Principal, B.T.L Institute of Technology & Management, Bommasandra, Bangalore for his valuable suggestions, affection and encouragement to carry out my Research work. I wish to express my deep sense of gratitude and dedication to my parents H.K. Suryanarayana and H.S. Jayanthi for supporting me in my Research work.
9 Finally, I am Thankful to all those who have helped me directly or indirectly during the course of my Research work. Bangalore August 2011 H.S. Adithya TABLE OF CONTENTS CHAPTER NO. 1 INTRODUCTION TITLE PAGE NO. What constitutes Behaviour? What are the Tools? Consumer Behaviour Surveys Consumer Research Scope of the Research 1-23 Rationale behind the Study 2 LITERATURE SURVEY 24-47 3 OBJECTIVE OF THE PRESENT WORK 48 4 EXPERIMENTAL WORK Research Methodology 49-54
10 Research Components Need for the Present Study Data Base ( Primary and Secondary ) Hypothesis Selection of Sample Limitations of the Research 5 DATA ANALYSIS AND INTERPRETATION 55-126 6 RESULTS AND DISCUSSION 127-134 7 CONCLUSIONS AND SCOPE FOR FUTURE WORK 135-140 8 REFERENCES 141-151 ANNEXURES 152-161 LIST OF PUBLICATIONS 162-165 CURRICULUM VITAE 166
11 LIST OF TABLES AND FIGURES TABLE/ FIGURE NO. TITLE PAGE NO. 1.1 Frequency of Gender 55 1.2 Frequency of Occupation 56 1.3 Frequency of Income 57 1.4 Frequency of the following measures laid down by the Government by Consumer Goods 58 Manufacturers 1.5 Brands that come to the mind about Toilet Soaps 59 1.6 Frequency of what the respondents like about the Brand 60 1.7 Frequency of the respondents for the preferred Brand 61 1.8 Factors Influencing Purchase of Toilet Soap 62 1.9 Frequency of what the Toilet Soap gives 63 1.10 Frequency of basis for Selection of Brand 64 1.12 Frequency of part of Bangalore City belonging to 65 1.13 Frequency of Type of Consumer Goods Purchased 66
12 1.14 Frequency of Price Sensitivity 67 1.15 Frequency of Second Opinion 68 1.16 Purchase of same and different Brands 69 1.17 Reasons for looking for a Different Brand 70 1.18 Frequency of Shopping Behaviour 71 1.19 Reasons for Shopping Behaviour 72 1.20 Factors Influencing on Purchase Decision 73 1.21 Impact of Discounts/Free Gifts on Purchase Decision 1.22 Trend Setters in Toilet Soaps 75 1.28 Source of Knowledge 76 1.29 Look up to Cues and Style 77 1.30 Behaviour of Respondents 78 1.40 Reasons for Choosing a Celebrity 79 1.41 Political Inclination 80 1.42 Reasons for Changing Toilet Soap 81 1.43 Whether the Customer buy their own Soap 82 1.44 Place of Purchase 83 1.45 Duration of Usage 84 1.46 Elements of Advertisements Recalled 85 1.47 Importance of Range of Colours 86 1.48 Importance of Price 87 1.49 Importance of Attractive Packaging 88 1.50 Free Offers on Toilet Soap 89 1.51 Overall Attractiveness of Toilet Soap 90 1.52 Influence of Shop Owner on Purchase 91 1.53 Shop Owner s Assistance 92 74
13 1.54 Whether they know other products with same Brand 93 1.55 Whether they buy other products with same Brand 94 1.56 What respondent will do in the future 95 1.57 Current brand effective than previous brand 96 1.58 Trusting Current brand than previous brand 97 1.59 Is the Current Brand name well known 98
14 INTRODUCTION The Indian Toilet Soaps Market is worth Rs.4, 265 crore, a consumption of close to 48,000 tones of soap. It s hardly surprising that the competition in the market is fierce. There are 68 companies throwing 205 brands at the consumer. The soap market can be broadly segmented on the basis of price into four major categories. The Super Premium Segment which includes soaps like Dove The Premium Segment like Lux International, Palmolive Extracare etc. The Popular Segment with soaps like Lux, Cinthol Lime etc The Sub-Popular Segment like Lifebuoy, Hamam etc. Of these segments the popular segment has the largest share of the soap market with 39%. The next biggest segment is the Sub-Popular Segment, which includes the Carbolic Soap segment with 28% of the market share. The price of the premium segment products is twice that of sub-popular segment products. The popular and sub-popular segments are 4/5 of the entire soaps market. The penetration level of toilet soaps is 88.6%. However, the per capita consumption of soap in India is at 460 grams per annum. India is a vast country with a population of 1,030 million. Household penetration of soaps is 98%. People belonging to different income levels use different brands, which fall under different segments, but all income level use soaps making it the second largest category in India. Rural consumers in India constitute 70% of the population. Rural demand is
15 growing with more and more soap brands being launched in the discount segment targeting the lower socio-economic strata of consumers. Soap manufacturers originally targeted their products to the lowest income strata in urban as well as rural areas, positioning their brands as a way to remove dirt and clean the body. For some brands, that positioning persists even today with a focus on removal of body odor and keeping the user healthy. However, soap positioning is moving towards skin care as a value-added benefit. Toilet soaps are always used in the bar form, there is no other form in the Indian market and they are used in the bath. Showers are a distant dream for 70% of India s population, who live in the villages where there is not a even a regular supply of drinking water. In the urban areas, people bathe by using a bucket of water, mug and a bar of soap. In villages, they usually bathe by the river bank or village ponds. Although most of the urban houses have a shower facility, they are seldom used because of scarcity of water. Following are the soaps which are generally available in the Bangalore City: (Dove, Lux, Lifebuoy, Cinthol, Hamam, Palmolive, Pears, Mysore Sandal, Camay, Dettol, Nirma, Medimix, Liril, Rexona, Ponds, and Modi etc.) Consumer preferences are varied and regionally specific. divided into four regions: North, East, West and South. India is Consumers in the North prefer pink coloured soaps which have floral profiles. Hence the fragrance preference is far more sophisticated profiles reflecting their lifestyles. Freshness soaps with lime and citrus notes are also popular preferences which are seen to be refreshing which
16 is more suitable for the hot climate in the North India. Consumers in the East have no particular preference skews. Consumers in the West exhibit preferences for strong and impact fragrances when compared to the North. They prefer pink soaps with floral fragrances primarily rose which are positioned on the beauty platform. Consumers in the South are specific towards soap segments like the Herbal and Ayurvedic profiles and also the Sandal profiles. Consumers do not exhibit high brand loyalty and are ready to experiment and try out new brands. In India, soaps are available in 5 million retail stores, out of which 3.75 million retail stores are in the rural areas. Therefore, availability of these products is not an issue. 70% of India s population resides in the rural areas hence around 50% of the soaps are sold in the rural markets. With increase in disposable incomes, growth in rural demand is expected to increase because consumers are moving up towards premium products. However, in the recent past there has not been much change in the volume of premium soaps in proportion to economy soaps, because there is increase in prices which has made some consumers to look for cheaper substitutes. The major players in personal wash soap market are HLL, Nirma and P&G. Colgate Palmolive has a good presence in the premium soap segment with its flagship brand, Palmolive Extracare owning 6% of the market share. The project was designed to study the popular end of the soap market in which Palmolive Naturals has been positioned. The big players in this segment include Lux, Rexona, Jai Lime, Nirma and others. The leader in this segment is Lux with Rexona also having a
17 large share. Lux has a strong equity in this segment, which has been built over the years with strong advertising support from its legendary Beauty soap for the filmstars advertising campaign. Palmolive Naturals was introduced with three variants, Olive Oil, Sandalwood and Almond but the Olive Oil variant has recently been dropped from its product offering. Natural now comes in 75gm and 100 gm versions. The popular end of the market has high price elasticity and price is perhaps the biggest influence in an otherwise low involvement purchase decision. Understanding the purchase habits of end consumers and the factors, which influence their purchase, habits provinces the field of study. In recent times, India has witnessed a wave of change. With media exposure and increasing literacy levels, people in India are now demanding a better lifestyle. The Indian market is a place where life has revolved around deep rooted community values, joint families and social customs. Indian consumers think of a purchase in terms of how it serves their needs and how well it suits the family, rather than the individual. It is felt by marketers that the traditional routes of market entry and brand building are often not feasible. While the intrinsic value with regard to functionality is created by the marketer through the offering, consumer psyche plays a vital role with regard to short and long term effects of brand associations. Huge amount of money is being spent by marketers to develop to understand the behaviour of consumers with a conviction that this understanding will create differentiation. Cultural dimensions play an important role with regard to how the consumer s mind adapts to the development of a product. Direct media promotions have helped build knowledge of product categories and change long-entrenched living habits.
18 Our society is a unity in diversity. We see diversity among consumers, among marketers, among customs, among nations, even among consumer behaviour theoretical perspectives. However, despite prevailing diversity in our society, there also are many similarities. Segmenting target audiences on the basis of such similarities makes it possible for marketers to design marketing strategies with which consumers will identify. The study of consumer behaviour enables marketers to understand and predict consumer behaviour in the marketplace; it also promotes understanding of the role that consumption play in the lives of the individuals. Consumer Behaviour is defined as the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products, services, and ideas that they expect will satisfy their needs. The study of consumer behaviour is concerned not only with what consumers buy, but also with why they buy it, when and where and how they buy it and how often they buy it. It is concerned with learning the specific meanings that products hold for consumers. Consumer research takes place at every phase of the consumption process: before the purchase, during the purchase and after the purchase. Consumer behaviour is interdisciplinary; that is, it is based on concepts and theories about people that have been developed by scientists in such diverse disciplines as psychology, sociology, social psychology, cultural anthropology and economics. Consumer research is the methodology used to study consumer behaviour. Consumer research designed to predict consumer behaviour is called positivism; research designed to understand consumption behaviour is called interpretivism which helps in making strategic marketing decisions.
19 Consumer behaviour has become an integral part of strategic marketing planning. The belief that ethics and social responsibility should also be integral components of every marketing decision is embodied in a revised marketing concept the societal marketing concept which calls on marketers to fulfill the needs of their target markets in ways that improve society as a whole. What constitutes Behaviour? It consists of consumer satisfaction and dissatisfaction. If the consumer requirements are fully met then there will be consumer satisfaction and falling short will create dissatisfaction and the consumers behave accordingly. Major attributes of consumer satisfaction can be summarized as follows: - a. Product Quality b. Price c. Delivery Commitments d. Advertising Media e. Resolving Consumer Complaints f. Product Packaging g. Overall Communication, Accessibility and Attitude It may be easier to track retailer s performance against stated requirements of quality and timeliness because there is documentary evidence. Some indication of whether a supplier is meeting the requirements or not can also be obtained from data on scrap rates, complaints database, sales improvements, repeat orders, customer audit reports etc. It is more difficult to measure the level of performance and
20 satisfaction when it comes to the intangible expectations. There is no point in asking irrelevant questions on consume behaviour. The basic purpose is to find out what we are doing right or wrong and where is the scope for improvement. Survey forms should be easy to fill out with minimum amount of time and efforts on consumer s part. They should be designed to actively encourage the customer to complete the questions. Yet they must provide accurate data to monitor improvements in the supplier s performance. The data should also be sufficiently reliable for management decisionmaking. For repeated surveys, we can provide the rating that was previously accorded by the consumer. This works like a reference point for the customer. Space should always be provided for the customer s own opinions. This enables them to state any additional requirements or report any shortcomings that are not covered by the objective questions. Surveying a number of respondents for each consumer gives a complete perspective of consumer satisfaction. It may be necessary to device a different questionnaire for each of them. Respondents must be provided a way to express the importance they attach to various survey parameters. This gives better indication of relative importance of each parameter towards overall consumer behaviour. What are the Tools? Consumer Behaviour can be identified using various methods such as: Observation Periodic Contract Reviews Market Research Telephonic Interviews
21 Projective Techniques Personal Visits Warranty Records Informal Discussions Satisfaction Surveys Depending upon the customers and available resources we can choose a method that is most affective in measuring consumer behaviour. Consumer Behaviour Surveys Formal survey has emerged as by far the best method of periodically assessing the customer satisfaction. The surveys are not marketing tools but an information-gaining tool. Enough homework needs to be done before embarking on the actual survey. This includes the following: a) Defining Objectives of the Survey b) Design Survey Approach c) Develop Questionnaires and Forms d) Administer Survey e) Method of compiling data and analysing the findings f) Format of the Report to present the findings The basic purpose is to find out what we are doing right or wrong, where is the scope for improvement, where do we stand and how can we serve the consumers better. A consumer behaviour survey should identify atleast the following objectives:
22 a) Importance of Consumers b) Consumers Perception c) Consumer Priorities d) Priorities for Improvement e) Culture of the Consumers Surveying a number of respondents should be in such a way that the respondents must be provided a way to express the importance they attach to various survey parameters. Respondents should be asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance of each parameter towards overall consumer satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the Performance Rating (Scores) with Importance Rating (Weighting). The questions are grouped together in a common parameter such as Product Quality, Delivery Performance or Field Sales Performance. Consumer Research The marketing concept is built on the premise that marketers first identify consumer needs and then develop products and services to satisfy those needs. Consumer research offers a set of diverse methods to identify such needs. Consumer research also is used to better understand consumption behaviour. It is used to identify and locate appropriate target markets and to learn the targets media habits. It is used to identify both felt and unfelt needs, to learn how consumers perceive products and brands and stores, what their attitudes are before and after promotional campaigns, and how and why they make their consumption decisions. Many of these applications of consumer research are managerial in perspective; they are designed to help a
23 marketer make specific marketing decisions concerning product, price, promotion and distribution. The major steps in the consumer research process include the following: 1. Defining the Objectives of the Research 2. Collecting and Evaluating Secondary Data 3. Designing a Primary Research Study 4. Collecting Primary Data 5. Analysing the Data 6. Preparing a report on the findings. 1. Defining and Developing the Objectives of the Research The first step in the consumer research process is to define carefully the objectives of the study. It is important for the researcher to agree at the outset on the purposes and objectives of the study to ensure that the research design is appropriate. A carefully thought out statement of objectives helps to define the type and level of information needed. If the purpose of the study is to come up with new ideas for products or promotional campaigns, then qualitative study is usually undertaken in which the respondents spend a significant amount of time faceto-face with a highly trained professional moderator who also does the analysis. If the purpose of the study is to find out how many people in the population use certain products and how frequently they use them then a quantitative research study that can be computer analyzed which is undertaken. 2. Collecting and Evaluating Secondary Data A search for secondary information generally follows the statement of objectives. It is the data originally generated for some purpose
24 other than the present research objectives. It includes findings based on research done by outside organisations as well as data generated in-house for earlier studies or even customer information collected by the firm s sales or credit departments. Locating secondary data is called Secondary Research. Original research performed by individual researchers to meet specific objectives is called Primary Research. Secondary research sometimes provides sufficient insight into the problem at hand to eliminate the need for primary research. It provides clues and direction for the design of primary research. 3. Designing a Primary Research Study The design of a research study is based on the purposes of the study: if descriptive information is needed, then a quantitative study is likely to be undertaken; if the purpose is to get new ideas like for repositioning a product then a qualitative study may be in order. Because the approach for each type of research differs in terms of method of data collection, sample design and type of data collection instrument used. A) Qualitative Research Designs: In selecting the appropriate research format for a qualitative study, the researcher takes into consideration the purpose of the study and the type of data needed. The choice of data collection techniques for qualitative studies includes depth interviews, focus groups and projective techniques. These research methods may differ in composition, they all have roots in psychoanalytic and clinical aspects of psychology and they stress open-ended and free response type of questions to stimulate respondents to reveal their innermost thoughts and beliefs. These techniques are regularly used in the early stages of attitude research
25 to pinpoint relevant product-related beliefs or attributes and to develop an initial picture of consumer attitudes especially the beliefs and attributes that they associate with particular products and services. a) Depth Interviews A depth interview is a lengthy nonstructured interview between a respondent and a highly trained interviewer, who minimizes his or her own participation in the discussion after establishing the general subject to be discussed. Respondents are encouraged to talk freely about their activities, attitudes and interests, in addition to the product category or brand under study. Transcripts, videotapes or audiotape recordings of interviews are then carefully studied together with reports of respondent s moods and any gestures or body language that they might have been used to convey attitudes or motives. Such studies provide marketers with valuable ideas about product design or redesign and provide insights for positioning or repositioning the product. New techniques for probing consumers and new methods of interpretation are always being tried to improve the results of qualitative research. b) Focus Groups A focus group consists of eight to ten respondents who meet with a moderator/analyst for a group discussion focused on a particular product or product category. Respondents are encouraged to discuss their interests, attitudes, reactions, motives, lifestyles, feelings about the product or product category, usage experience and so forth. Focus group sessions are
26 invariably taped and sometimes videotaped to assist in the analysis. Some marketers prefer focus groups because it takes them less time overall to complete the study and they feel that the free-wheeling group discussions and group dynamics tend to yield a greater numbers of new ideas and insights. c) Projective Techniques A projective technique is designed to tap the underlying motives of individuals despite their unconscious rationalizations or efforts at conscious concealment. They consist of a variety of disguised tests that contain ambiguous stimuli such as incomplete sentences, untitled pictures or cartoons, word association tests and other person characterizations. The respondent is asked to complete, describe or explain the meaning of various stimuli. The theory behind projective tests is that respondent s inner feelings influence how they perceive ambiguous stimuli. The stories they tell or the sentences they complete are actually projections of their inner thoughts, even though subjects may attribute their responses to something or someone else. Thus, their responses are likely to reveal their underlying needs, wants, fears, aspirations and motives, whether or not the respondents are fully aware of them. B) Quantitative Research Designs: The design of a quantitative research study include the method for collecting the data, the sample design and construction of the data collection instrument.
27 a.) Data Collection Methods There are three basic ways to collect primary data in quantitative research: by observing behaviour, by experimentation or by survey. Observational Research It is an important method of consumer research, because marketers recognize that the best way to gain an in-depth understanding of the relationship between people and products is by watching them in the process of buying and using products. It provides for a better understanding of what a product symbolizes to a consumer and greater insight into the bond between people and products that is the essence of brand loyalty. Observational research also provides valuable input into product advertising. It is widely used by interpretive researchers to understand the buying and consumption process. Experimentation It is a process of testing the relative sales appeal of different types of variables such as package, designs, prices, promotional offers or copy themes through experiments designed to identify cause and effect. In such experiments only one variable is manipulated at a time (independent variable) while all other elements are kept constant. A controlled experiment of this type ensures that any difference in results (the dependent variable) is due to different treatments of the variable under study and not to extraneous factors. Surveys The survey is made by the researcher by asking consumers about their purchase preferences through person, by mail or by telephone. Personal Interview surveys most often take place in the home or in retail shopping areas. The latter, referred to as mall intercepts, have become much
28 more frequent of late because of the high incidence of notat-home working women and among those who do not work, because of fears of allowing a stranger into the home. Telephone surveys are often used to collect consumer data although the high incidence of working women has limited their use. Mail surveys are conducted by sending questionnaires directly to individuals at their home. A number of commercial research firms that specialize in consumer surveys have set up panels of consumers who for a token fee agree to complete the research company s mail questionnaires on a regular basis. Data Collection Instruments For quantitative research, the primary data collection instrument is the questionnaire, which can be sent through the mail to selected respondents for self-administration or can be administered by a trained interviewer in person or by telephone. Questionnaires must be interesting, objective, unambiguous, easy to complete and generally not burdensome to motivate respondents to answer truthfully and completely. It can be open-ended questions which require answers in the respondent s own words. It can also be closed-ended wherein the respondent merely checks the appropriate answer from a list of options. Open-ended questions yield more insightful information but are more difficult to code and analyze. Closed-ended questions are relatively simple to tabulate and analyze, but the answers are limited to the alternative responses provided.
29 Likert scale is the most popular form of attitude scale for researchers to prepare and to interpret and simple for consumers to answer. It is very helpful for the researchers as it gives the option of considering the responses to each statement separately or of combining the responses to produce an overall summated score. It is also called as summated scale. Semantic Differential Scale is relatively easy to construct and administer. It consists of series of bipolar adjectives that are anchored at the ends of an odd numbered continuum. Respondents are asked to evaluate a concept on the basis of each attribute by checking the point on the continuum that best reflects their feelings or beliefs. An even numbered scale is used to eliminate the option of a neutral answer. An important feature of this scale is that it can be used to develop graphic consumer profiles of the concept understudy. Rank Order Scales are those wherein the items are ranked in order of preference in terms of some criterion such as overall quality or value for the money. These provide important competitive information and enable marketers to identify needed areas of improvement in product design or product positioning. Sampling An integral component of a research design is the sampling plan. It addresses three questions: whom to survey (the sampling unit), how many to survey (the sample size) and how to select them (the sampling procedure).
30 Deciding whom to survey requires that the universe or boundaries of the market from which data is sought be defined so that an appropriate sample can be selected. Interviewing the correct target market or potential target market is basic to the validity of the study. The size of the sample is dependent both on the size of the budget and the degree of confidence that the marketer wants to place in the findings. The larger the sample, the more likely the responses will reflect the total universe under study. It is interesting to note that a small sample can often provide highly reliable findings, depending on the sampling procedure adopted. 4. Collecting Primary Data Qualitative studies usually require highly trained social scientists to collect data. A Quantitative study generally uses a field staff that is either recruited and trained directly by the researcher or contracted from a company that specializes in conducting field interviews. It is necessary to verify whether the interviews have taken place. This is sometimes done by a postcard mailing to respondents asking them to verify that they participated in an interview on the date recorded on the questionnaire form. Completed questionnaires are reviewed on a regular basis as the research study progresses to ensure that the recorded responses are clear, complete and legible. 5. Analysing the Data In qualitative research, the moderator or test administrator usually analyzes the responses received. In quantitative research, the researcher supervises the analysis. Open-ended responses are first coded and quantified that is
31 converted into numerical scores then all of the responses are tabulated and analyzed. 6. Preparing a Report on the Findings In both qualitative and quantitative research, the research report includes a brief executive summary of the findings. The research report may or may not include recommendations for marketing action. The body of the report includes a full description of the methodology used and, for quantitative research, also includes tables and graphics to support the findings. A sample of the questionnaire is usually included in the appendix to enable management to evaluate the objectivity of the findings.
32 Scope of the Research This research study helps to put into practice the theoretical aspects of the study. It helps in the formulation based upon which fellow researcher can plan their studies. It helps in understanding the attitudes and behaviour of the consumers and retailers and is very useful for the manufacturers in producing the toilet soaps according to the consumer tastes and preferences. Consumers preferences are changing and becoming highly diversified. Although having some similarity, consumers are not all alike. To better understand and meet the needs for specific group of consumers on lightened marketers should adopt a policy of market segmentation, which calls for the division of their potential market into smaller homogeneous segments. The collection and analysis of information about consumption habits provinces the field of consumer behaviour. Successful marketer is the one who effectively develops and produce brands that are of value to consumers and who effectively present these products and brands to consumers in an appealing and persuasive way. The essential reason for studying consumer behaviour is to enable managers to make better marketing decision while reducing the incidence of product failures. Marketing efforts are directed towards satisfying customer needs. Satisfaction of needs provides the rational for existence. Knowledge of the consumer behaviour helps a firm to seek better and more effective sales and advertising strategies and to plan its marketing program in a more effective manner. In nutshell, marketing starts with consumers and ends with the consumers. Consumer satisfaction thus becomes the most important goal of a business enterprise. The key to ensure customer satisfaction lies in understanding the consumer likes and dislikes his motivation and in nutshell the consumer behaviour. Also what affects his purchase choice or decision that is the decision maker and how his perceptions work on product
33 evaluation make it important to the study of consumer behaviour. Purchase behaviour is a sound basis of identifying the consumer needs. Therefore, the study of it for only product is of vital importance to marketers in shaping fortunes of organizations. Also it is significant for regulating consumption of goods and thereby maintaining economic stability. It is hopefully believed that the present study would definitely help to learn about the sources of information s for the customers during different stages of buying sanitary goods and hence, enhances their level of awareness and brand preference for durable sanitary goods. It is essential for the marketers to understand what are the important sources to create awareness of their products. The present study helps them to evolve better promotion strategies which will help to enhance the level of awareness of the consumers and creating a need for their products. Rationale behind the Study The rationale behind the study has been operationally defined as below: The Consumer process is concerned with how consumers make decisions. In this study the purchase process has been defined according to a stage mode of buying process the consumer passes through five stages: problem recognition, information search, evaluation of alternatives, purchase decision and post purchase behaviour. Clearly, the buying process starts long before the actual purchase and has consequence long after the purchase. In the preparation of questionnaire it was attempted that information is collected regarding different stages. Questions regarding these five stages were put to the interviewees.
34 Problem recognition results when a consumer recognizes a difference of sufficient magnitude between what is perceived as the desired state of affairs and what is the actual state of affairs, enough to arouse and activate the decision process. The situation leading the problem recognition may be depleted stock of goods, discontentment with the stock of goods, changing environmental and financial circumstances or marketing activities. The term search refers to mental as well as physical information-seeking and processing activities which one engages in to facilitate decision making regarding some goal-object in the market place consequently, search may be undertaken in order to find out about products, prices, stores and so on related to the product. Internal search is a mental process of recalling and reviewing information stored in memory that may relate to purchase situation. The marketers are interested in knowing how consumers process the information gathered during the search process on their evoked set of brands. There are two broad approaches: brand processing or attribute processing. In brand processing the buyer assesses one brand at a time. Thus, the consumers may decide to look at a particular brand, examine several attributes, and then assess several attributes for a second and third brand. In attribute processing, the consumer examines a specific attribute and then compares several brands on that attribute. The next stage is the purchase division. It involves selecting a course of action based on the preceding evaluation process. It involves activities such as choosing a store. In store purchasing behaviour and purchasing patterns development of repeat purchasing patterns and the extent to which purchases are unplanned. Paying for the purchase is a part of this decision process. It may be either on cash or on credit.
35 The last stage is post-purchase behaviour. It refers to those behaviours exhibited after the purchase decision. It involves consumer expectations, satisfaction, post purchase dissonance and the feedback mechanism. Cognitive dissonance occurs as a result of a discrepancy between a consumer s decision and his prior evaluation. It is not just making a purchase decision or the act of purchasing; it also includes the full range of experiences associated with using or consuming products and services. It also includes the sense of pleasure and satisfaction derived from possessing or collecting things. The outputs of consumption are changes in feelings, moods, or attitudes; reinforcement of lifestyles; an enhanced sense of self; satisfaction of a consumer related need; belonging to groups; expressing and entertaining oneself. The consumer s decision to purchase or not to purchase a product is an important moment for most marketers. It can signify whether a marketing strategy has been wise, insightful and effective or whether it was poorly planned and missed the mark. Therefore, marketers are particularly interested in the consumer s decision making process. For a consumer to make a decision, more than one alternative must be available. Consumers have different views and levels regarding the decision making process. It has three sets of variables: input variables, process variables and output variables. Input variables include commercial marketing efforts and non-commercial influences from the consumer s sociocultural environment. The decision process variables are influenced by the consumer s psychological field, including the evoked set that is the brands in a particular product category considered in making a product
36 choice. The psychological field like motivation, perception, learning, personality and attitudes influences the consumer s recognition of a need, pre-purchase search for information and evaluation of alternatives. The output variables include the actual purchase that is either trial or repeat purchase and post-purchase evaluation. Both pre-purchase and postpurchase evaluation feedback in the form of experience serves as an influence in future decision processing.
37 LITERATURE SURVEY This chapter presents a brief review of the literature of various researches conducted and articles relating to understanding of the consumer market. Thus, the consumer market is very complicated bundle of contradictory values, attitudes and behaviours, as shown by the study on Indian Consumers by MARG, the Genie Study by O & M, articles in the press and experiences of consumer markets. Foxman (1989) stated that recent changes in demographic and household structure have increased consumers impact on their decisions and their general involvement in family decision-making. It was found that consumers tended to have more said in the purchase of products that are less expensive and for their own use. It was found that they perceived themselves to have greater influence in the purchase power. Moschis (1989) dealt with an important type of inter personal communication Family communication. They are found to play an important role in the consumer socialization of their offspring and are instrumental in teaching them the national aspects of consumption. The family can affect consumer learning indirectly by influencing the youngster s interaction with other sources of consumer influence. Family communication leads to rather different interaction. Patterns with other sources of consumer learning. The evidence also indicates that the family mediates the effect of other socialization agents. Orbany (1989) suggested that traditionally, one reason buyers search for information prior to purchase is to reduce their uncertainty about the decision to lower levels. Two general types of uncertainty was found-knowledge uncertainty, i.e., uncertainty regarding information about alternatives and
38 choice uncertainty, i.e., uncertainty about which alternative to choose. Choice uncertainty appeared to increase search but knowledge uncertainty had a weaker, negative effect on search. Hoyer and Brown (1990) revealed the subtle difference between awareness and recognition. Awareness represents a state of knowledge possessed by the consumer, whereas recognition is a cognitive process which results from awareness. In this study the effects of brand awareness on choice, brand sampling and the frequency with which the highest quality brand is selected after a series of trials are examined. It was found that brand awareness is a prevalent choice among inexperienced consumers who are faced with a new decision task. Consumers who were aware of a particular brand in a choice set sampled fewer brands across a series of product trials. Consumers who were aware of one brand in a choice set tended to choose the known brand even if it was lower in quality than other brand sampled by them. Herr (1991) made observations regarding effects of word-of-mouth communications and specific attribute information on product evaluations. It was found that word-of-mouth communications have a strong impact on product judgements, relative to less vivid printed communications. Favourable brand attitudes are formed when a single, favourable word-of-mouth communication is presented, even when extensive attribute information is available. Thus the manner in which information is presented can produce strong judgmental effects when the information flow is controlled. Although a strong word-of-mouth effect was found, this effect was reduced or eliminated when a prior impression of the target brand was available from memory or when extremely negative attribute information was presented. Childers and Rao (1992) pointed out that from consumer behaviour prospective; it appears that their reference groups can influence products and
39 brands that individuals select. In nuclear families, the degree to which an individual is influenced by peers appears to be significantly higher for public than for private products and brands, while this is not the case in extended families. This likely occurs because in nuclear families the number of immediate family members and their importance to the individual is limited, while in extended families there are numerous important family members available to exercise an influence on individual s decision making. In traditional family structures, the brand purchased by ones parents exerts a strong influence. The influence of peers is likely to be somewhat higher for luxuries whereas the influence of the family is likely to be higher for necessities. Grover and Srinivasan (1992) determined the multiple effects of retail promotions on brand loyal and brand switching segments of consumers. They found that the market can be characterized by brand loyal segments each of which buys mostly their favourite brand and switching segments each of which switches mainly among different brands of the same type. Promotional schemes have significant effects on market shares, the effect being across different segments store share is related significantly to promotional attractiveness of a store. The overall promotional attractiveness of the product category has significant current and lagged effects on category volume and the lagged effects resulting from consumer purchase acceleration and stock up last longer for brand loyal segments that for switching segments. Shergill and Kaur (1993) found that socio-economic background of consumers influences their buying behaviour. The high income group respondents are more quality conscious, although for most of the consumer s price is the main consideration. A major role in preventing brand switching is played by the loyalty of the consumer towards a particular brand. Moreover, the buying decisions are influenced by the media particularly TV advertising.