A R e p o r t o n

C o n s u m e r B u y i n g B e h a v i o r o f J e a n s a n d T- s h i r t s

A Report Submitted by

S.ANUSHA NADIU

Roll Number: 10304

PGDM 2010-2012

Project submitted in partial fulfillment for the award of

Post Graduate Diploma in Management

VIGNANA JYOTHI INSTITUTE OF MANAGEMENT

BACHUPALLY, HYDERABAD

(2009-2011)

Consumer buying behavior of Jeans and T-shirts

Executive Summary

I decided to have a market research on jean and t-shirt buying behavior of consumers of Hyderabad city. This study was carried out to determine different factors affects the purchase decision for jeans and t-shirts, consumer preferences for different brands, and ways to effectively influence consumer decisions. During the event I decided to get feedback from customers who normally visit various types of outlets for the purchase, so that appropriate primary data can be collected through questionnaire.

Consumer buying behavior of Jeans and T-shirts

Introduction

In determining the Buyer behavior of Jeans and T-shirts, we have taken Buyer behavior stimulus response model to determine the buyer decision making process towards jeans and t-shirts and how buyer characteristics will be affected by the marketing stimuli and how the Buyer responses change in taking purchase decision. A well-developed and tested model of buyer behavior is known as the stimulus-response model, which is summarized in the diagram below:

In the above model, marketing and other stimuli enter the customers “black box” and produce

certain responses. Marketing management must try to work out what goes on the in the mind of

the customer – the “black box”. The Buyer’s characteristics influence how he or she perceives

the stimuli; the decision-making process determines what buying behavior is undertaken.

Consumer buying behavior of Jeans and T-shirts

Research objectives

Objectives of the study are:

a) To determine what factors influence a consumer’s buying decision.

b) To determine the important attributes that a consumer considers before buying Jeans and

T-shirts.

c) To determine which advertising mediums are most effective in influencing customers

perceptions.

d) To assess which brand of jeans and T-shirts are most preferred by customers.

e) To find out the impact of sales promotions during a purchase.

Methodology:

Method of Data Collection:

Primary data was collected through survey. The questionnaire was prepared asking respondent about their purchase behavior towards jeans. The basic research instrument used is a questionnaire. The questionnaire was sent through mail to all the VJIM students in Hyderabad. The questionnaire is a mixed bag of open ended and closed ended questions. The questionnaires were either filled by the respondents themselves or were dictated by the respondents. The respondent was free to give his opinion on the questions.

Data search:

The survey was conducted outside shopping malls, multiplexes and in Vignan Jyothi Institute of Management.

Sample Design

Only those wearing jeans and T-shirts were taken as respondents, so non-probability judgment sampling is employed 40 respondents were surveyed for research.

Sample Profile:

Consumer buying behavior of Jeans and T-shirtsGender no percent

Male 22 55%

Female 18 45%

Occupation

Students 34 85%

Employees 6 15%

Age

Range No

Up to 20 4

21 to 25 30

25 to 30 6

The ages of respondents ranged from 17 to 29 with mean age of 24.

Research design

The primary data was obtained from the respondents, using a questionnaire. The data collected was evaluated manually. Percentage was used to estimate the proportion for various aspects under consideration. Microsoft Excel was used to depict graphical representations of the analytical inferences and tabulations.

 a. Data Collection methodThe primary data using different techniques like focus group discussion with the experts , depth interview with the stores salesmen and sales managers , by mails , face-to-face etc ).By doing so, we come to certain factors which majorly affects the Buying Behavior of Jeans and T-shirts. To mention, some of the factors we found are Quality, Design, Price , Durability ,Variants, Comfort, Trendy, Brand name. Later we will go with the detailed explanation of these factors.b. Measurement:To address the research objectives of our study , we need to take the information from every corner of the topic. So, we have used Stimuli-response model to observe how marketing stimuli and other stimuli affects the buying characteristics of the consumers and change in Buying Decision process results in responses. We have made a Questionnaire which involves different questions related to the buying pattern of consumers for Jeans and T-shirts. Based on the

Consumer buying behavior of Jeans and T-shirtsfactors we have found and by the responses taken, we will come to the understandings like Buying Behavior differences between Jeans and T-shirts, consumer preferences based upon different factors for Jeans and T-shirts, Buying pattern of different customers based upon demographics etc.

 c. Analysis proceduresWe are making different conclusions based upon the Questionnaire responses and next is what factors mainly influence the Buyer Behavior using Ranking method by taking mean of the factors .I focused on which type of promotions mostly affects the Buyer Behavior and what kind of advertisements affects the Buyer characteristics using comparative mean method. Finally based on the consumption pattern I analyzed which type of customers prefers which type of place to buy their Jeans and T-shirts. Results:The result showed that there is no significant difference between the buying behavior of consumers between Jeans and T-shirts. I took the sample of 40 respondents and based upon their responses we collected some data depicting their preferences among different factors for Jeans and T-shirts. Limitations of the methodology:

It should be noted that the research methodology was limited by the following factors:

a)This being a judgment sampling, the analysis may not be the true picture of the target population.

b)Limited time frame was the biggest constraint.

Applying Marketing Mix Modeling in the Jeans and T-shirts Business

Global marketplace is going through drastic changes and industry players find their marketing

playbook becoming obsolete. Market today consists of hundreds of salesmen, all pushing their

products which are similar in nature and shoppers keep moving from store to store, bargaining.

The prices fall eventually, a decision taken by the business owners hoping for a lasting

relationship with the consumer. There is an increase in the amount of disposable income of the

people, and media has created a change in their lifestyle. Despite consumers tend to spend more,

marketers are finding it difficult to maintain or increase their wallet share due to globalization

and cut-throat competition.

Consumer buying behavior of Jeans and T-shirtsBut successful products touch the customer emotionally. A

clear understanding of the customers’ psychology is essential

for companies to sustain themselves in the market. Businesses

formulate their strategies in such a way that the product become

more appealing to the consumers, and turns an ordinary

shopper into a long term consumer. Brands plan their marketing

so as to create and maintain a long term relationship with the consumer.

Various components are used in the marketing plans of a business; advertising, promotion,

packaging, media weight level, sales force number etc. But, the number of inputs and the

resulting outcome in terms of sales or profit is the workhorse. Marketing mix modeling is the art

of using statistical analysis on sales and marketing to estimate and manipulate various

promotional tactics on sales, and further forecast the result of promotional tactics.

Marketing Mix Modeling in the Jeans and T-shirts Business:

Consumers are getting quickly immune to the marketing tactics of businesses, and margins are

being squeezed by demanding customers. Focus is getting shifted from mass advertising to

making of new trends. Clothing industry is a very competitive arena. Due to the highly

fragmented nature of apparels, and fashion sector, a Jeans or T-shirt brand must differentiate

itself from its competitors right from the stage it enters the market.

Price:In case of apparels, especially in Jeans, price is not of big importance. Gone are the times

when companies competed on price. Service is the key today which will shift to focus on

personality in the future. Innovative designs are no longer a competitive advantage. New

sketches are transformed into garments and make their way in store shelves within a span of

three weeks. New disposable fashion has shortened the product

development cycle from 16 months to 20 days.

 

Promotion:In integrated communication is an essential part of

the marketing mix. This is even more important for Jeans and

Consumer buying behavior of Jeans and T-shirtsT-shirt industry as communication is a critical tool in creating an impression in the minds of the

consumers. A Jeans or T-shirt, to become acceptable by public must first be adopted by a group

which has acknowledged respect in the society. Celebrities are the most influential people who

can influence public opinion. CPR (Consumer Personal Reference) marketing refers to the

process of marketing where a customer publicizes a brand by accepting the product and

spreading the trend by word of mouth.

Product:Product not only refers to tangible items but also to intangible attributes such as brand

name and customer service. Earlier it was believed that a good product will sell itself. In today’s

competitive market, there is no such commodity as bad product. So, manufacturers must focus

on creating a product or service that will satisfy the demands of the consumers. The product

characteristics must be defined with functionality, quality, appearance, brand service, support

and warranty.

Place:Apart from price and quality, the place of

distribution must also be taken into consideration

while creating a right marketing mix, as the Jeans

and T-shirt industry is primarily based on

perception. Store designs must be deployed to

create an elegant atmosphere emphasizing a

brand image and reflecting current trends. Focus

must also be kept on the distribution processes and partners, without which even excellent

products will fail. Big revolutions in business have come about by changing place. Location,

logistics, channel motivation, service levels, and channel members must be taken into

consideration.

Good marketing mix is like an appetizing food recipe. The key for a successful strategy is the

right combination of ingredients to get the right taste of food. The key ingredients of a successful

marketing mix modeling such as product, price, place, and promotion needs to be combined in

the right way, and in the right time for an appropriate marketing of a product.

Characteristics that affect customer behavior

Consumer buying behavior of Jeans and T-shirtsThe first stage of understanding buyer behavior is to focus on the factors that determine he

“buyer characteristics” in the “black box”. These can be summarised as follows:

Affect of social classes on buying pattern of consumers.

Social classes are relatively homogeneous and enduring divisions in a society, which are

hierarchically ordered and whose members share similar values, interests and behavior. Social

classes reflect not only, income but other indicators such as occupation, education and area of

residence. Social classes differ in speech patterns recreational preferences and many

characteristics. Social classes have several characteristics. First, those within each class tend to

behave more alike than persons from two different social classes. Second, Person is perceived as

occupying inferior or superior position according to social class. A cluster of variables indicates

third, social classes. For example, occupation, income wealth, education and value orientation

rather than by any single variable. Fourth, individuals can move up or down the social class

ladder during their lifetimes. A consumer behavior is influenced by social factors such as

reference group, family and social roles and statues.

Consumer buying behavior of Jeans and T-shirtsReference Group :

A reference group consists of all the groups that have a direct (face to face) or indirect influence

on person's attitude or behavior. Groups, which have a direct influence on person, are called

membership groups. Some membership groups are primary groups , such as family, friends,

neighbors, and co- workers, with whom the person interacts fairly continuously and informally.

People also belong to secondary groups, such as religious, professional and trade union groups,

which tend to be more formal and require less continuous interaction. People are significantly

influenced by their reference groups in at least three ways. Reference groups expose an

individual to new behaviors and lifestyles and influence product and brand choices. Marketers

try to identify target customers reference groups. However level of reference group influence

varies among products and brands.

Family :

The family is the most important consumer- buying organization in society, and family members

constitute the most influential primary reference group. A more direct influence on everyday

buying behavior of an individual is of one's spouse and children. Marketers are interested in the

roles and relative influence of the husband, wife and children in the purchase of a variety of

products and services. These roles vary widely in different countries and social classes.

Roles and Status :

A person participate in many groups family, clubs, organizations. The person's position in each

group can be defined in terms of role and status. A role consists of activities that a person is

expected to perform. Each role carries a status. A supreme court justice has more status than a

sales manager and a sales manager has more status than an officer clerk. People choose products

that communicate their roles and status in the society. Marketers must be aware of the status

symbol potential of products and brands.

Affect of Cultural Influences

Culture refers to a set of values, traditions or beliefs, which guide the individual behavior. in a

way culture is normative as it prescribes norms of acceptable human behavior. In other words

culture refers to values, ideas, attitudes and other meaningful symbol created by people to shape

human behavior and the art facts of that behavior transmitted from one generation to another. For

examples, beef is not very readily accepted in the Hindu society and likewise pork in the Muslim

society. The use of a fork or knife to eat food by Indian family is a value acquired through

acculturation. In any culture there are subcultures that exist. These are different nationalities

Consumer buying behavior of Jeans and T-shirtsreligious and geographic groups. For example in India we have Hindus Muslims Jews Christians

and Sikhs as exciting religious subcultures. A marketer needs to be aware of these cultural and

sub cultural influences on consumer preferences. This will affect his brand, packaging

advertising sales promotion and even distribution decision. A culture's values are likely to

Influence its member’s purchases and consumption pattern. For example, one consumer may

place a high value on achievement and may demonstrate success with symbols of luxury and

prestige. Culture not only influences consumer behavior, it reflects it. The preponderance of

exercise machines, fitness club, skin care lotions, diet foods, and low fat products reflects the

emphasis. Indian youth places on fitness. Culture is therefore a mirror of both values and

possessions of its members.

Buyer Decision making process of Jeans and T-shirts

Consumer behavior can be defined as the decision-making process and physical activity involved

in acquiring, evaluating, using and disposing of goods and services. This definition clearly brings

out that it is not just the buying of goods/services that receives attention in consumer behavior

but, the process starts much before the goods have been acquired or bought. A process of buying

starts in the minds of the consumer, which leads to the finding of alternatives between products

that can be acquired with their relative advantages and disadvantages. This leads to internal and

external research and then follows a process of decision-making for purchase and using the

goods, and then the post purchase behavior which is also very important.

CLOTHING (Jeans and T-shirts) CHOICE CRITERIA

Clothing(Jeans and T-shirts) choice criteria are defined as the intrinsic (inherent to the product)

and extrinsic (product-related, but not part of the physical product) product attributes that

associated with desired benefits or incurred costs as consumers make buying decision among

clothing(Jeans and T-shirts) . Intrinsic product attributes are those that cannot be changed

without altering the physical characteristics of the product, while extrinsic ones are those that are

exerted by manufacturers or retailers and do not form the component parts of the product.

Different criteria may have varied importance in every consumer’s mind. While consumers

would assign high importance on the criteria that can really reflect their underlying

Consumer buying behavior of Jeans and T-shirtscharacteristics and experiences. Since the critical characteristics of apparel(Jeans and T-shirts)

can always determine its ultimate purchase acceptance or rejection by consumers ,the criteria that

consumers use in Jeans and T-shirts purchase decisions have long been regarded as an important

issue for investigation in many previous consumer behavioral studies. Researchers have

identified many product attributes and criteria that are critical for fashion consumers in Jeans and

T-shirts purchase, and basically all these can be summarized under intrinsic and extrinsic

categories. We have summarized the criteria that influence consumers’ evaluation of apparel

(Jeans and T-shirts) products in into 9 extrinsic and 14 intrinsic attributes (Table 1).

Summary of findings from the study of clothing(Jeans and T-shirts) choice criteria

Results found that fit; comfort, style, color and workmanship were the most important attributes

for Indian consumers in buying Jeans and T-shirts. Although there are many studies having

investigated the clothing (Jeans and T-shirts) choice criteria, investigation on the relationship

between these criteria and consumer decision-making behavior is still lacking.

Consumer buying behavior of Jeans and T-shirts

Analysis Procedure

Conjoint analysis for the selection of attributes

From the conjoint analysis I rank the attributes on the basis of the customer preference. From

the group of forty respondents we concluded that comfort the most proffered factor when

they make a purchase decision.

We can find out there is no much difference between the attributes that the customers

considered as important. The respondents whose age varies from 17 to 29 selected brand

name as the least factor when they make a purchase. Respondents believe that comfort,

quality and deign are the important factors which can influence their purchasing decision.

Consumer buying behavior of Jeans and T-shirtsWe can conclude that the respondents in the age group of 17 to 29 are not bothered about the

brand. They are more conscious about the quality and the fashion of the product they

purchase.

Analysis for buying behavior of t - shirts:

a) Location preference for T shirt purchasing decision

Consumer buying behavior of Jeans and T-shirts

When relating the purchase pattern of the t-shirts with that of the place of purchase. It can be concluded from the response given by respondents that most of the customers (male and female) belonging to the segment (501-1000), nearly about 80% of them intend to make a purchase in shopping malls. It can be observed that both the female and male customers belonging to the segment (>1000) are intended to buy in company outlets .Male customers belonging to the segment (<250) are intended to buy in local outlets where as the other not. The majority of the respondents show a liking towards sales promotions. From this we can conclude that the respondents who prefer malls and factory outlets expect sales promotions like discounts and free gifts.

Frequency of purchase of T shirt

Consumer buying behavior of Jeans and T-shirts

The above graph shows the frequency of purchase of T shirts by the respondents. It has been concluded that majority of the respondents in the segment (251-500) usually prefer to make a purchase once in every 6 months. From these graph it is evident that the respondents who spends more for t shirts would not make purchase frequently. We can conclude from this graph that among youngsters (respondents of age group 17- 29) frequently buy low cost T shirt and they are not showing any brand consciousness. They are more concerned about the comfort and the trend of the T shirt.

What attracts consumer in buying a new t-shirt:

Consumer buying behavior of Jeans and T-shirts

It is here by inferred from the respondent's reply that most of the customers who belong to the cluster of <250 and 251 - 500 will make a purchase based on the discount factor as the primary and secondly brand name for male and advertisement for female .Where as the other factors like purchasing based on the type of endorser and design of the t-shirt are considered to be very less while making a purchase decision. The cluster group 501 - 1000 consider brand name and discount/offers to more or less same extent while concluding about the purchase of a t-shirt. the other group 1000 and above consider the factors like brand name, endorser and discount factors for making a particular decision.

Consumer buying behavior of Jeans and T-shirts

Sources of information before purchase of T-shirt

Regarding the influence of several media channels on the purchase decision of a t-shirt, it is jolted down that the cluster group who belong to 251 - 500, mostly about 60% of them make a purchase decision based on the word of mouth, secondly television plays a next prominent role in influencing the customers and newspapers also contribute to influence the buying pattern. It is almost the same with the other group who belong to 501 - 1000 where word of mouth plays a significant role and television the next leading role. In influencing the other group 1000 and above, for which media should play a prominent role, it is drawn that television, word of mouth and newspapers play a more or less equal role in purchasing decision.

Consumer buying behavior of Jeans and T-shirtsAnalysis for buying behavior of jeans:

Buying pattern of jeans by customers from various outlets

Our analysis on the customer preference on the location reveals that 84% of the respondents

make purchase from shopping malls and they are ready to spend an amount ranges from 500

to 1000. It has been concluded that very less number of respondents preferred exclusive

show rooms and factory outlets except the segment >1500. The analysis reveals that majority

of the respondents are not preferring online shopping and a very few number of respondents

prefer costly jeans (cost more than 1500).

Consumer buying behavior of Jeans and T-shirts

Our another analysis shows that about 50 % (500-1000 and 1000-1500) prefer discounts.

From this we can conclude that may be the availability of sales promotions in malls makes

that one of the hot spot for shopping.

Respondents Interest towards sales offers for jeans:

Consumer buying behavior of Jeans and T-shirts

The respondents are mostly interested in the discount offers offered by the companies where

as the female respondents are interested in lucky draws and tour packages. Male respondents

also interested in lucky draws and tour packages but to a smaller extent. The segment >1500

are interested in tour packages to a larger extent, so the consumers who are under the

segment <500 buy more when the companies offer discounts rather than any other promotion

tools and the customers who are under the segment >1500 buy more when the companies use

lucky draws and tour packages.

Source generated most of the information in their last purchase of jeans:

.

The survey tells that none of the respondents didn’t show interest in online shopping and

didn’t get any information regarding jeans online. Every segment showed interest in getting

information from family/friends and television. These segments the 500 to 1000 segment got

most of the information from television, family/friends and print media. Whereas the

Consumer buying behavior of Jeans and T-shirtssegment 1000 to 1500 got most of the information from friends/family, the segments of <500

and above 1500 were not at all influenced by television

The print media had a minor configuration in four segments that is <500,500 to 1000, 1000

to 1500 and >1500.The respondents showed more interest in discounts. They consulted more

with family and friends so they got much of the information from them and those

advertisements on discounts in television made these two to get more information.

QUESTIONNAIRE

Consumer buying behavior of T-Shirts and jeans

Dear friends,

As a part of my CIS I would like to gather some information from you which will help

me in depth of my CIS. I would be obliged if you co-operate with me in filling the questionnaire.

Fill the following.

Name:

Age:

Gender:

Occupation:

1) Do you prefer wearing t-shirts & jeans?a) Yes b) No

If yes then proceed to the next question.

2) How much do you spend for a T-Shirt?

a) Less than 250 b) 251 -500

Consumer buying behavior of Jeans and T-shirtsc) 501 – 1000 d) above 1000

3) What brand of T-Shirts do you usually buy and why?(you can choose more than one)

a) Reebokb) Prolinec) Levisd) Not Brand consciouse) Others specify_______________.

Reason (in brief): ____________________________________________________________________________________________________________________________________________________________________

4) What type of T-Shirts do you like? You can choose more than one

a) Round neckb) Polo T-Shirtsc) Long sleeved d) Embroidery e) Printed

5) Rate these factors according to your order of ranking before buying t-shirts (1-highest,8-lowest)a) Durability -----------------------------------------b) Variants -----------------------------------------c) Design ------------------------------------------d) Price -----------------------------------------e) Comfort --------------------------------------------------f) Trendy -------------------------------------------------g) Quality --------------------------------------------------h) Brand name -----------------------------------------------

6) What attracts you more in buying a new t-shirt?a) Brand nameb) Brand endorsementsc) Discounts or offersd) Advertisementse) Others (please specify) __________________

7) How do you come to know about a particular brand of t-shirts?a) News paperb) T.Vc) Radiod) Word of mouth

Consumer buying behavior of Jeans and T-shirtse) Others (please specify) __________________.

8) Where do you usually buy your T-Shirtsa) Online shoppingb) Company outletsc) Shopping Mallsd) Local shopse) Others (please specify)__________________.

9) How often do you buy jeans?a) Once in a monthb) Once in every 3 monthc) Once in every six monthd) Once in an yeare) More than one year

10) Could you please tell how much would you spend for a jeans?a) Less than 500b) Between 500 and 1000c) Between 1000 and 1500d) Between 1500 and 2000

11) Rate the following according to order of rankings before you consider to buy a jeans?((1- highest,8-lowest))

a) Durability -----------------------------------------b) Variants -----------------------------------------c) Design ------------------------------------------d) Price -----------------------------------------e) Comfort --------------------------------------------------f) Trendy -------------------------------------------------g) Quality --------------------------------------------------h) Brand name -----------------------------------------------

6) Which of the following brands you usually consider while buying a jeans?a) Levisb) Denimc) Killerd) Koutonse) Others (please specify)________________________

7) Would you prefer sales offers?a) Yesb) No

If yes, continue Which of the following sales offers you prefer?

Discounts Free gifts Lucky draw

Consumer buying behavior of Jeans and T-shirts Tour packages Others (Specify)

8) What kind of shop you prefer while you purchase a jeans?a) Online shopsb) Exclusive brand storesc) Mallsd) Local shopse) Factory outletsf) Others (please specify)_________________.

9) From which source you came to know about the jeans you last purchased?a) Television/radiob) Print mediac) Internetd) Family/Friendse) Others (please specify)__________________.

10) Whom will you consult when you make a purchase decision for jeans & T-shirts?a) Family membersb) Friendsc) Colloquiesd) Expertse) Others (please specify)_________________.

Thank you for providing your valuable insights, I really appreciate your frankness.