A Study on Consumer Behaviour Towards Big Bazaar, Chennai, Dr.V.Antony Joe Raja, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com)
A STUDY ON CONSUMER BEHAVIOUR TOWARDS BIG BAZAAR, CHENNAI *Dr.V.Antony Joe Raja
Volume 6, Issue 7, July (2015), pp. 01-09 Article ID: 10120150607001 International Journal of Management (IJM) IAEME: http://www.iaeme.com/IJM.asp ISSN 0976-6502 (Print) ISSN 0976-6510 (Online)
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*HOD, Department of Management, Sri Muthukumaran Institute of Technology, Near Mangadu, Kunrathur Rd, Chikkarayapuram, Chennai, Tamil Nadu 600069
ABSTRACT Consumer behaviour helps to identify the behaviour of the consumer upon that product and also for the market. The main objective of the study is to find the overall consumer behaviour. Data from the customers visiting big bazaar were collected as population study. The primary data was obtained through questionnaire and secondary data from the company records and through internet. The purpose of the survey process is to analyze the consumer behaviour of big bazaar. In order to achieve a competitive position in the market. The research work will propose a true idea that identifies key factors which are of great importance to customers. From the analysis it was found that the big bazaar satisfying consumer needs and wants. Keywords: Consumer, Consumer Behaviour, Importance to Customer. 1. INTRODUCTION In the words of Philip Kotler, a leading Marketing Guru; “The term consumer behaviour is defined as the behaviour that consumer display in searching for, purchasing using, evaluating and disposing of products and services that they expect will satisfy their needs”. Consumer behaviour is the study of when, why, how, and where people do or do not buy products, It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. 2. REVIEW OF LITERATURE The researcher made an attempt to collect information from the prior researches and relevant studies conducted in the area of life insurance and consumer behaviour so that the important www.iaeme.com/ijm.asp
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A Study on Consumer Behaviour Towards Big Bazaar, Chennai, Dr.V.Antony Joe Raja, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com)
variables for the study could be identified and analyzed. The review of literature has been presented in a summarised and precise manner. Osbourne, Magz. , Retail shopper behaviour - Retailers adapt to local ways of buying. ISSN: 22183280, Source: Campaign Asia-Pacific. Nov2010, p24-1NULL. 1p. The article presents suggestions on how retailers entering in India and China can compete with established brands by developing an understanding of vastly different consumer behavior. Tesco Corp. has discovered that Asia's shoppers present a unique set of buying behaviors that challenge their traditional in-store plans. A study reveals that 74 percent of supermarket customers in emerging markets look for advice or demos as compared to 34 percent in developed regions. Joung, Hyun-Mee. Materialism and clothing post-purchase behaviors Journal of Consumer Marketing. 2013, Vol. 30 Issue 6, p530-537. 8p. DOI: 10.1108/JCM-08-20130666.issn: 0736-3761 Purpose – The purpose of this paper is to investigate materialistic consumers' apparel purchase, compulsive buying, environmental attitudes, and post purchase behaviors regarding hoarding, disposing, and participation in recycling. Design/methodology/approach – Clothing is used to express the self. Materialistic consumers tend to be young and highly involved with clothing, and purchase compulsively and more than needed. They are more interested in getting possessions than disposing of them. This study was designed to uncover materialistic consumers' post-purchase behaviors. A survey questionnaire was developed and a total of 333 college students completed it in a classroom setting. Findings – Results of a k-mean cluster analysis suggested two groups (materialistic consumers and non-materialistic consumers). Findings of independent t-tests indicated that materialistic consumers had significantly higher scores for apparel purchase, compulsive buying, value-oriented hoarding, and disposing, but lower scores for environmental attitudes than did non-materialistic consumers. No difference was found in participation in recycling between the two groups. Research limitations/implications – This study suggests that marketing media should address benefits and ways to recycle and educate consumers in sustainable consumption behaviors. Originality/value – Due to the nature of fashion, clothing is easily adopted and quickly becomes obsolete. Consumers easily dispose of clothing, which contributes to the increasing volume of textile waste. Although consumers are encouraged to participate in recycling to protect the environment, little research has focused on clothing post-purchase behaviors. Materialistic consumers' post-purchase behaviors regarding apparel hoarding, disposing, and participation in recycling is a new research area. Sangvikar, B. V.; Katole, Hemant J. A study of consumer purchase behavior in organized retail outlets Journal of Business & Retail Management Research. Oct2012, Vol. 7 Issue 1, p39-47. In this research paper researchers basically focused on behaviour of consumer mainly on purchasing pattern in various store formats and store preference on the basis of product availability, spending pattern, consumers preferred store, sales man services, and store layout. Researchers observed that the customers prefer retail outlets because of price discount, followed by variety of products in the store and convenience to the customer.. Researchers have also observed that departmental stores are most popular amongst consumers. Customers purchase behavior varies with price and availability of products and customers spending pattern shrinks due to poor quality of products. Shen, Bin; Wang, Yulan; Lo, Chris K.Y.; Shum, Momoko. The impact of ethical fashion on consumer purchase behavior. Journal of Fashion Marketing & Management. 2012, Vol. 16 Issue 2, p234-245. 12p. DOI: 10.1108/13612021211222842. Purpose – The purpose of this paper is to examine the relationship between ethical fashion and consumer purchase behavior (their willingness to pay a premium for ethical fashion), with the focus on consumers' concerns and beliefs about, and knowledge of, ethical fashion. Design/methodology/approach – A self-completion questionnaire was administered to 109 www.iaeme.com/ijm.asp
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respondents. Factor analysis and other statistical analyses were applied to test hypotheses. Findings – The findings suggest that consumer beliefs about ethical fashion, which are based on their perceptions of a company in terms of its reputation in the fashion industry, influence their support for what they perceive as socially and environmentally responsible businesses. Research limitations/implications – The sample size, which is relatively small, is a limitation for this research. The data were collected in Hong Kong, limiting findings to that geographic region. Practical implications – An important implication is that consumer education is essential to mitigate the prevailing throwaway culture and raise consumer awareness of ethical issues facing the fashion industry. Thus, retailers should take initiatives to educate consumers so as to ensure the success of their newly-launched ethical fashion products. Originality/value – The paper proposes an approach to clearly understand the impacts of ethical fashion on consumer purchase behavior 3. CONCEPTUAL FRAMEWORK OF THE STUDY Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Problem recognition 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. Type of problem recognition: • Routine problem • Emergency problem • Planning problem Information search Once the consumer has recognized a problem, they search for information on products and services that can solve that problem. Sources of information include: • Personal sources • Commercial sources • Public sources • Personal experience The relevant internal psychological process that is associated with information search is perception. Perception is defined as 'the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world' Information evaluation At this time the consumer compares the brands and products that are in their evoked set. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits www.iaeme.com/ijm.asp
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A Study on Consumer Behaviour Towards Big Bazaar, Chennai, Dr.V.Antony Joe Raja, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com)
consumers are seeking and therefore which attributes are most important in terms of making a decision. Purchase decision Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The organization can use variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration. Once the integration is achieved, the organization can influence the purchase decisions much more easily. Post purchase evaluation It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.it is not effected by advertisement. Internal influences Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer behaviour concern with consumer need consumer actions in the direction of satisfying needs leads to his behaviour of every individual depend on thinking process External influences Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors. Consumer behaviour theory prior to the Second World War was based on accepted economic theory of the "rational man" model of decision making. The central idea of economics is that people make decisions by weighing costs and benefits in a rational manner. The consumer's objective is therefore to select a set of product quantities that maximize satisfaction (or utility), subject to available income. Utility in this context means the ability of a product to meet functional needs. The consumer then expends their income (budget) and selects specific amounts of the two products. Product prices and income are predetermined and, consequently only the quantities of the two products purchased are varied to maximize utility. Rational therefore means the "explainable" processes of consumer behaviour. Current approaches suggest that behavioral underpinnings in consumer decision processes are beyond pure rational dimensions and stem from both innate and acquired needs that involve a complex combination of conscious and unconscious processes as well as rational and emotional factors.
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4. METHODOLOGY The research was based on a study of a sample, sized 110, using simple random sample selected from the existing database of retail industry. The research included collection of data from the primary sources using the research tool (questionnaire). Final stage was to analyze, interpret and draw conclusions from the data collected 5. RESULTS AND DISCUSSION The data collected from the consumer of big bazaar was analyzed using statistical package software SPSS. The result are present in detail. 5.1 Demographic Details of The Customers Table no: 1 Age of respondent S.NO 1 2 3 4 Total
AGE OF RESPONDENT Below 20 20-30 30-40 Above 40
NO OF RESPONDENTS 13 37 25 35 110
PERCENTAGE 12 33 23 32 100
From the above table that is inferred that 33% of the respondents are from the age group of 20-30, 32% are above 40, 23% from 30-40 and the rest of the 12% from below 20. Table no: 2 Gender of the respondent S.NO 1 2
Gender Male Female
No of respondents 66 44 110
Percentage 60 40 100
From the above table that is inferred that 60% of the respondents are male, the rest of the 40% are female. Table no: 3 marital status S.no 1 2
Marital status Married Single
No of respondents 71 39 110
Percentage 65 35 100
From the above table that is inferred that 71% of the respondents are married, the rest of the 39% are single.
S.NO 1 2 3 4 Total www.iaeme.com/ijm.asp
Table no: 4 Income status Income No of respondent Below 10000 15 10001-20000 32 20001-30000 25 Above 30000 38 110 5
Percentage 14 29 23 34 100
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A Study on Consumer Behaviour Towards Big Bazaar, Chennai, Dr.V.Antony Joe Raja, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com)
From the above table that is inferred that 34% of the respondents are earning above 30000, 29% are earning 10001-20000, 23% of the respondents are earning 20001-30000 and rest of the 14% of the respondents are earning below 10000. Table no: 5 Occupations S.NO 1 2 3 4 5 Total
Occupation House wife Private Government Business Student
No of respondent 18 32 17 30 13 110
Percentage 16 29 16 27 12 100
From the above table that is inferred that 29% of the respondents are private employees, 27% are doing business, and 16% of the respondents are government employees and house wife, and rest of the 12% of the respondents are students. 5.2 Reliability of Measurements The reliability of the survey instrument was measured using reliability coefficient Cronbach alpha. The Cronbach alpha value of the proposed scale were found to comfortably well above the prescribed limit of the alpha score value of 0.6.
s.no 1
Table no: 6 reliability and validity Questionnaire No. of items No. of cases Cronbach’s alpha score Consumer behaviour 45 10 0.710
5.3 Chi-Square Test Chi square test is a useful measure of comparing experimentally obtained result with those expected theatrically and based on the hypothesis. Table no: 8 chi-square test Chi-Square Tests
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association
Value
Df
Asymp. Sig. sided)
5.329a 6.314 1.104
9 9 1
.805 .708 .293
(2-
N of Valid Cases 110 a. 7 cells (43.8%) have expected count less than 5. The minimum expected count is .95. Since the significant value is 0.805 which is greater than the level of significance 0.05 the null hypothesis is accepted. Thus there is no relationship between the family income earning by the customer and mode of payment.
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A Study on Consumer Behaviour Towards Big Bazaar, Chennai, Dr.V.Antony Joe Raja, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com)
5.4 Rank correlation The Spearman rank-order correlation coefficient (Spearman’s correlation, for short), is a nonparametric measure of the strength and direction of association that exists between two variables measured on at least an ordinal scale. Table no:8 Correlation
Spearman's Price rho
Quality
Variety
branded products
exchange facility
staff knowledge
employee behaviour
price
branded Quality variety products
exchange facility
staff employee knowledge behaviour
Correlation Coefficient
1.000
.669** .690** .389**
.549**
.248**
.255**
Sig. (2-tailed)
.
.000
.000
.000
.009
.007
N
110
110
110
Correlation Coefficient
.669
Sig. (2-tailed)
.000
N
110
Correlation Coefficient
.690
Sig. (2-tailed)
.000
N
110
Correlation Coefficient
.389
Sig. (2-tailed)
.000
N
110
**
.611
.
.000
.000
110
110
.611
**
.000 110 **
.682
110
110
Correlation Coefficient
.549
Sig. (2-tailed)
.000
.000
.000
N
110
110
110
**
.449
.000
.474
.000
.000
110
110
*
110 **
.273**
.
.000
.004
110
110
110
110
1.000
.776** .000
.541
**
.000
.015
.000
.000
.
110
110
110
110
110
110
.479
**
.336
**
.009
.268
.000
.000
N
.495
.479**
.336
Sig. (2-tailed)
**
110 **
1.000
.248
**
.231
. .484
.541
.268** .005
110 **
.484
**
110 *
.015
Correlation Coefficient
**
.583
**
.529
.231
.495** .000
110 **
1.000
110 **
.529
.583
110 **
.000
110 **
.000 **
110 **
.000
.
110 **
.449
.474
.000
110
.682
110 **
1.000
110 **
.000 **
110 **
1.000
110 **
.000
.273
**
.776
110 **
Correlation Coefficient
.255
1.000
Sig. (2-tailed)
.007
.000
.005
.000
.004
.000
.
N
110
110
110
110
110
110
110
**. Correlation is significant at the 0.01 level (2-tailed).
To measure the relationship among price, quality, variety, branded products, exchange facility, staff knowledge and employee behaviour. From the table 8, we infer that there is a high positive correlation between the positions obtained by the satisfaction level on price and quality. It is statistically significant at 0.01 levels. There is no negative correlation. 5.5 Weighted Average If all the weights are equal, then the weighted mean is the same as the arithmetic mean while weighted means generally behave in a similar fashion to arithmetic means, they do have a few counterintuitive properties, as captured for instance in Simpson’s paradox. www.iaeme.com/ijm.asp
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Table no: 9 other stores comparison to big bazaar RATINGS Price Variety Quality Convenience Shopping experience Service
Strongly agreed 32 26 25 21 24
59 59 48 55 51
14 20 29 26 29
3 3 5 5 5
19
41
29
15
agreed
neutral
Strongly disagreed 2 2 3 3 1
Total score 446 434 417 416 422
Weighted average 89.2 86.8 83.4 83.4 84.4
6
382
76.4
disagreed
Rank
I II IV IV III VI
From the above table that is inferred that price less when compare to other store so it will be in rank I and service is not good when compare to other store so it comes in the last rank. 6. CONCLUSION The purchasing power of the consumer has also increased; giving rise to his wants and needs. It is over here that big retail chains such as Big Bazaar come into picture satisfying various consumer needs under one roof. The customers are highly satisfied with the variety of products, but at the same time they are not very happy with the quality and availability of branded products. Big Bazaar has definitely succeeded in keeping up its image of a value for money store, as its price has been rated positively. The promotions are not hitting the target. Although Big Bazaar has been promoting their offers, most of the customers are introduced to these only at the store. Customers are delighted with the location of Big Bazaar as it is located in the most intensely populated area of Chennai. Big Bazaar has been successful in keeping up its promise of providing value for money goods, but today customers look beyond price, such as quality, employee behaviour, store atmosphere etc. Big Bazaar has scope for improvement in these yields. 7. REFERENCE 1. 2. 3. 4. 5. 6.
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