Professional Documents
Culture Documents
On
Submitted
At
HIMACHAL PRADESH UNIVERSITY BUSINESS SCHOOL
SUMMERHILL, SHIMLA
(SESSION: 2016-2018)
Project
Dr. ShyamGuide:
Lal Kaushal Aditya
Submitted
Sharma MBA 4by:
R.no-3198(3430) Sem (B)t ih
CERTIFICATE FROM THE GUIDE
This is to certif y thatMr. Aditya Sharma S/o Ajay Sharma, Exam Roll No-3198
, of the
session 2016-2018 has completed project“STUDY report OF IMPULSE BUYING
BEHAVIOUR OF PEOPLE LIVING IN RURALunder AREAS”
my supervision. I
recommend the same for evaluation.
I wish him all success in life.
ii
DECLARATION
I, ADITYA SHARMA, S/o Ajay Sharma, Exam Roll aNo.-3198 bonafide student of
“STUDY
MBA, hereby declare that this project report entitled OF IMPULSE BUYING
BEHAVIOUR OF PEOPLE LIVING IN RURALis AREAS” the record of authentic
work carried out by me and has not been submitted to any other
University or degree
award of any Institute/ diploma
for the etc.
Aditya Sharma
Roll No. 3198
iii
PREFACE
The aim of this study is to know
the behaviour of people living in rural
during
areas
an
impulse buying and to know about the role of retailer in shaping
the consumer to buy a
particular product. Rural market is changing rapidly due to increasing
disposable income and
awareness level of consumers. Development of infrastructure,
educational institutions has led
to this change as education increases the awareness level of
consumers and infrastructure
leads to the faster exchange of information. The questionnaire was
derived from previous
studies and was filled by consumers of maranda, rajpur, thakurdwara,
baijnath and paprola
town people using convenience sampling. Descriptive test was
applied and means are
compared. The results indicated that the rural consumer have
started preferring brands in
impulsive situation or in case of impulse goods because of trust
factor, quality, ego needs,
rising awareness which results in leaving retailer with ver y less
power to persuade a
consumer. So, the future belongs to the companies who work on their
brand image. There is a
strong need for further research on this topic as the sample size is small
and collected from 5
towns.
iv
ACKNOWLEDGEMENT
( ADITYA SHARMA)
v
TABLE OF CONTENTS
1.1 Impulse
1.2 Impulse Buying
1.3 Types Of Impulse Buying
1.4 Types Of Buyers
1.5 Branding
1.6 Types Of Branding
5. Findings 41-42
References 44
Annexure 45-46
vii
LIST OF TABLES
Table
1:Ag
Table
eTable
...... 3:
2:Oc
........
cupat
Gender4: Education
Table .........................................................................................................................
........
ion ..
.............
Table 16
5: promotional
........
.............
factor
Table 6: .......................
Normative
........
.............
.................................
Evaluation
Table ............
7: Suggestive
........
.............
.................................
...............................
Impulse .................
Table 8: Pure
........
.............
.................. 17
...............................
Impulse
Table .......
9: Reminded
........
.............
...........................
...............................
.....................
Impulse.................
Table 10: Hedonic Behavior .......................................................................................................... 22
........
.............
18
.......................... 19
.....................
..............................
Table 11: Desire as a factor of Impulse
........
.............
.....................
..............................
Buying
Table 12:.................................................
Retailer’s
........
.............
.....................
..............................
...........................
role 23 towards
................................
Table 13: perception
15
.....................
21
...............................
retailers
Table 14:................................
........ Friends
.... 20
...............................
..............................................
........
Influence
Table ...........of
15: Impact
..........................
............
........ 25
............................
Advertisement
Table 16: Impact...... 24of emotional
........
............................
...............................
advertisement
Table 17: Descriptive .........................
.....
........
............................
...............................
................................................
Analysis ...................
Table 18:Age wise Analysis of all
13
.....
............ 26
...........................
...... 28
..................................
variables
Table ......................................
19: Education wise Analysis of all
14
27
..................................
........................................... 33
variables
Table 20: .................................................
Occupation wise analysis of all the variables
.............................................................. 379
.....….. 291 346
....................
viii
LIST OF FIGURES
Figure 1:
Age
Figure...... 2:
..............
Occupati
Figure 3:
..............
on .........
Gender
Figure 4:.
..............
..............
Educatio
Figure 5: Promotional
..............
n..............
...........
Factor.........................
Figure 6: Normative
..............
..............
...................................
Evaluation
Figure ..............
7: Suggestive
..............
..............
...................................
................................
Impulse
Figure 8:...................
Pure
..............
..............
.......... 17
................................
.................................
Impulse
Figure 9:.........
Reminded
..............
..............
......................
impulse
Figure 10: 18
.................................
.......................
..................
Hedonic
...........
..............
................... 19 as a factor of impulse............................................................................
.......................
................................
Behavior
.......... 11:...............
Figure
13
.............. Desire buying 23
.......................
................................
...............................
Figure 12: Retailer’s
14
...........
..............
.......................
Figure 21
...............................
role .........................
13: Perception towards
15
..........
............. 20
...........................
.................................
retailers
Figure 14:..................................
Friend’s
16
22
.................................
................................................
influence
Figure .............of Advertisement
15: Impact .............................................................................................. 27
....................
....... 24
2516: Impact of emotional
..............................
Figure
..............................
advertisement ..........................
..............................
..................................................
...26
28
ix
CHAPTER-1
INTRODUCTION
1.1 IMPULSE:
1.5 BRANDING:
As this study focuses on the rural people so it’s important to define the
word rural. Actually,
Rural is not a place or area but it is a mindset of people who stick to
their culture, traditions.
It can be defined as the group of people who are traditional in look,
rooted to grass & resist
changes. According to census rural area is that area where:
REVIEW OF LITERATURE
Unexpectedly low price can make consumers f eel that they are
spending less than they
originally planned (Stern, 1962). In stores, consumer buying behavior is
majorly triggered by
store promotional activities (Gilbert & Jackaria, 2002 Smith & Sinha,
2000 Diamond, 1992).
Promotional activities like the announcement of "Two for the price
attractive display an
of one", and/or showing the discount percentage may trigger an
impulse
X., et al,purchase
2007). (Zhang, 7
2.6 PRODUCT RELATED FACTORS
Brand is any name, sign, symbol, color term that differentiate the
product of one seller to
another. Word brand is derived from the word “brander” means “to
burn”. It is an asset of a
firm that enhances brand strategies and helps in building
positioning and equity (Keller,
1998). Most of the brands chosen by consumers for purchase are based
on impulse buying.
Packaging includes the activities of designing and producing the
container for a product. The
container is called the package, and it might include up to three levels of
like
have
purchasing
packaging
(Rettie
Self-service,
contributed
& Factors
material. Brewer,
acts
at aassale
acustomer
to
2000).
“salesman”
growing
pointPeople
(Prendergast
affluence,
packaging
at the
today
shelf
company
have
&need.
and
Pit,no
is1996).
Packaging
a&
time
source
brand
With
as of
image
they
isincreasing
one
are
andof
innovation
the
tr
communication
more
end
major
addicted
of self-service,
factors
opportunity
toand
impulse
inbranding 8
buying. So, package has to attract, promote, glamorize and improve
the worth of contents
(Stern, 1962). Now consumers are more educated and pending their
decision till last minute
or at point of purchase, this leads them to buy on impulse.
Packaging has to give more
information itself and stimulus because of self-service (Tauber, 1972).
Packaging makes the
product look good and is beneficial for both of low and high
involvement products. It acts as
a means of comparing with others products and provides guidelines on
how to use product.
Packaging performs dual functions i.e. logistics and as marketing.
Logistics protects product
from damages, but in marketing it communicates message about
attributes. If it conveys
message effectively, consumer perceive it as good quality product, if
it fails to do so, the
consumer per ceive it as a low quality and will be reluctant to
purchase. Ther e are few
package elements that effect purchase decision of consumer
(Visual and Informational).
Visuals contain graphics, shape, size, and lies in affective or cognitive
decision making.
9
CHAPTER-3
RESEARCH METHODOLOGY
Review of literature provided the variables of impulse buying which are used in
constructing
the questionnaire e.g. hedonic behavior, normative evaluation,
lifestyle trait, desire,
suggestion by retailer, synchronicity (feeling of need), spontaneous urge
etc.
12
CHAPTER-4
Frequency Percent
20-30 58 36.9
30-40 29 18.5
40-50 24 15.3
40-50 areage
(N=58), 15.3%
group
(N=24)
10-20 and
are 16.6%
those in(N=26),
age group
age50
group
& above
30-40are
are12.7%
18.5%
INTERPRETATION
(N=29),age
(N=20)
population.
of sample
group : age group 20-30 is maximum in sample population with 36.9
Figure 1: Age 13
4.1.2 Occupation analysis:
Frequency Percent
service 50 31.8
student 35 22.3
Table 2: Occupation
Figure 2: Occupation
INTERPRETATION
comprises
students of: 18.5%
People22.3%
comprises with service
(N=29)(N=35) asofoccupation
and 21.7% sample
(N=34) are maximum
population.
respectively ofwith 31.8% (N=50),
Self-employed
sample
and House wives
population
agriculturists
andare 5.7% (N=9). 14
4.1.3 Gender Analysis:
Frequency Percent
Female 68 43.3
INTERPRETATION:
comprises of 43.3%
Males comprises
(N=68) of of
sample Figure 3: of
56.7%population.
(N=89) Gender
sample population and females
15
4.1.4 Education analysis:
Frequency Percent
10th 19 12.1
12th 30 19.1
graduate 49 31.2
Figure 4: Education
INTERPRETATION:
sample
10th withpopulation
12.1% (N=19)
while
Postand
graduates
graduates
illiterate
and
arear31.2%
above
e 1.9%are
(N=49)
(N=3)
maximum
of
andsample
those
with
with
of
population.
35.7%
12
19.1%
th(N=56)
(N=30),
of
16
Analysis on the basis of questionnaire :
Frequency Percent
disagree 20 12.7
neutral 47 29.9
agree 56 35.7
INTERPRETATION
have spontaneous
: 35.7%
urge(N=56)
to buy of
when
the branded
population
Figure product
agreesiswith
5: Promotional on sale.
the statement that they
Factor 17
2. When I have an emotional conflict in my mind about the future
consequences
particular of good, i go with brand rather retailer recommendation
impulse
Frequency Percent
disagree 22 14.0
nuetral 33 21.0
agree 63 40.1
INTERPRETATION
fact that they:prefer
40.1%brands
are agree
when(N=63)
they have
and 20.4%
emotional
(N=32)
conflict
are strongly
in mind.agree to the
18
3. I prefer retailer recommendation when i want to try a new impulse good
than going
for brand .
Frequency Percent
disagree 24 15.3
neutral 40 25.5
agree 61 38.9
INTERPRETATION
says that they :go
when
withgoing
the retailer
for a new
recommendation.
product,
Figure 38.9% (N=61)
7: Suggestive Impulseof sample population
19
4. I prefer brands when i have spontaneous urge to buy
Frequency Percent
disagree 18 11.5
nuetral 30 19.1
agree 48 30.6
Frequency Percent
disagree 32 20.4
nuetral 41 26.1
agree 50 31.8
Frequency Percent
disagree 26 16.6
Neutral 28 17.8
Agree 44 28.0
INTERPRETATION:
statement which
33.1%
means
(N=52)
they are
go with
strongly
brands
Figure agree
10: in case
and 28.0%
Hedonic ofBehavior
hedonic
(N=44)
buying.
are agree to this
22
7. If an impulse good lying on retailer's shelf creates desire in me to buy it
then i don’t
see its brand, i just buy it.
Frequency Percent
disagree 24 15.3
nuetral 37 23.6
agree 58 36.9
Frequency Percent
disagree 36 22.9
neutral 45 28.7
agree 49 31.2
Frequency Percent
disagree 37 23.6
neutral 36 22.9
agree 51 32.5
Frequency Percent
disagree 17 10.8
neutral 38 24.2
agree 58 36.9
INTERPRETATION
: 36.9% (N=58) are agree with statement i.e. they would go with their
friend’s suggestion rather than with brand in case of impulse goods. 26
11. I tend to buy that impulse good more whose advertisement i have seen
Frequency Percent
disagree 27 17.2
nuetral 31 19.7
agree 53 33.8
the statement which states that I buy that good more whose
INTERPRETATION:
advertisement
17.2% (N=27) Iare
33.8%
have
also
seen
(N=53)
disagreeFigure
but are
with
agree15:and
it. Impact of Advertisement
22.9% (N=36) are strongly agree with
27
12. I prefer that brand of impulse goods with which I am emotionally .
connected
Frequency Percent
disagree 25 15.9
neutral 41 26.1
agree 36 22.9
retailer's recommendation
INTERPRETATION
: Reminded impulse factor has mean score 3.04, perception towards
retailer has mean score 3.08, retailer’s role has mean score 3.07, which
means consumers are
reluctant to take suggestions from retailers.
30
AGE WISE ANALYSIS OF ALL VARIABLES
age
INTERPRETATION:
For Question 1: above table interprets that those between the age group
of 10-20 (mean value
3.69) and 40-50(mean value 3.93) prefer brands in case of
spontaneous urge to buy which
means while exhibiting impulse behavior, these two age groups prefer
brands.
Question 2: age group 30-40, 40-50 are slightly agree with the statement
whose mean score is
3.93, 3.79 which mean these age group shows hedonic behavior in an
impulse situation.
Question
means they3: go
agewith
group
the brands
10-20 in
disagr
caseeesof with
suggestive
this statement
impulse while
with
mean
all
response
other
score
towards
have2.73
neutral
suggestive
which impulse. 32
Question 4: age group 10-20 and 40-50 disagrees with statement with
mean score 2.94 and
2.92 which means they go with brands in case of reminded impulse
and sychronity which
means they would only take product if it is of brand they use even if
they have a need of it or
the even if it seems that product is made for them or they were actually
in need of it.
Question 5: age group 30-40 and 10-20 agrees with this statement with
mean score 3.97 and
3.50 which means whenever they feel fear, emotional conflicts,
avoiding guilt after purchases
etc. then the people of these age groups go with brands which means
these age groups lacks
trust and go with the brands in case of normative evaluation.
Question 6: here age group of 20-30 with a mean score of 3.72 says
that when a product
creates desire then they don’t see its brand which means if companies
have this age group as
their tar get audience, they can easily attract them by hypnotizable,
lovable, attractive
packaging and labeling but age group of 10-20 (mean score 2.81)
disagrees with it.
Question 7: Age group 30-40 with mean score 3.66 agree with the
statement which means
even if in impulse buying factors like promotions. These age
groups don’t go with non
branded products. This shows that they have high trust issues.
Question 8: All the age groups with total mean score 3.07 disagree with
this statement which
means retailer influence factor of impulse buying has no impact on
rural people now days.
They choose product according to their choice.
Question 9: Again, all the age groups with mean score of 3.08 disagree
with this statement as
trust factor in them is decreasing. It can be because of many reasons e.g.
many cases of fraud
etc.
Question 10: Every age group have neutral response with mean score
3.64 on this statement
which
Question
are highly
means
11:
attracted
age
theygroup
are
bynot
advertisement
30-40
sure(mean
between
score
soword
if 3.93)
theofcompanies
mouth
agreesand
with
are
brand
this
targeting
preference.
statement
this
should
group
spend
which
thenonthey
advertisements.
means they 33
Question 12: all age group have neutral response with mean score
3.59 towards this
statement which means companies can also make emotional
advertisement for impulse goods
post
graduate &
illiterate 10th 12th graduate above Total
disagrees (mean score 2.89). This can be inter preted as the people with
INTERPRETATIONS:
Question
10
not
to satisfy
th so
10 much
their
1: Consumers
aware
ego need.
aboutagrees
with
brands
12with
and
th people
statement
are
with
(mean
aware
12 thscore
and mainly
3.67) youth
andor
people
who
belowwant
with
are
35
th
Question 2: Here also consumers
(mean
till 10 th 3.00) does not prefer brands due to
score
awareness, lifestyle etc. while people with other educational
qualification have neutral
response towards this.
Question 8: All the groups disagree with the statement (mean score
3.07), this shows the
growing awareness about brands in consumer’s mind and the distrust on
retailer.
Question 9: Here only group with educational qualification 10 th responses (mean
have neutral
score 3.53) rest all other disagr ee with it(mean score 3.08).
Question 10:
11:All
Illiterates
the groupsdisagree
have neutral
with the
response
statement
about(mean
this statement
score
whichin
come
3.00)
background
while
means
influence
of
educational
they
12 thof
can
agrees
their friends
(mean score
(mean3.90)
scorewith
3.64)
it. 36
Question 12: Here all have neutral behavior (mean score 3.59)
which means hedonic
behavior has no concern with educational qualification.
agriculturis self-
t service employed house wife student Total
Question 3:
2: Agriculturists
Occupation background
disagree with
has the
no relation
statement
with
with
thethe
hedonic
mean
buyingofbehavior
score3.69).
score 3.00. (mean 38
Question 4: Agriculturists and student disagrees with statement
(2.78) and (2.86) which
means they go for brand even if there is ur gent need.
Question 5: all groups disagree with the statement with mean score of
3.58.
Question 6: all groups show neutral response to this statement
(mean score 3.37) which
means they could go for non brand also in case of emotional conflict.
Question 8: here, also people with service are the only group who
agrees ( mean score 3.20)
with the statement while all the other are neutral about it.
39
CHAPTER-5
FINDINGS
Preference of brands –
1. Promotions – 54.2% says they will go with brand.
2. Emotional conflict- 40.1% agrees and 20.4% strongly agrees.
3. Suggestive impulse- 38.9% goes with retailer recommendation.
Pure
4. impulse – 30.6% agrees and 27.4% strongly agrees to the fact that
they
prefer brand in case of pure impulse.
5. Reminded impulse – 31.9% says that they will go with the available
brand.
6. Hedonic behavior – 61.1% goes with brand.
7. Packaging & labeling (Desire) – 36.9% agrees and 15.9% strongly
agrees that
they will not see brand.
8. Retailer recommendation – 31.2% disagrees and 8.30% strongly
disagrees.
9. Perception of retailer- 23.60% think that he will not provide
adequate
information.
10. Friend’s influence (WOM) – 36.90% goes with friend’s rather than
brand.
Out of all the age groups, 10-20 age group prefers the brand in most of
the impulse
situation i.e. they are preferring brands in suggestive, reminded impulse.
It is mainly
due to the awareness done by companies through their
promotional activities and
satisfaction of ego need.
Age group of 30-40 & 40-50 pref ers brand due to quality, which
means when they
have doubtlevel
Education
spontaneous about
urge.quality
makes issues
This aishuge
mainly ordue
impactanyto
other
on the emotional
preferences
fact ofconflict
that they in their
consumers
have low as
mind, they
for brands.
consumers
education
awareness
different go
brands
about
background
with and what oforthese
10
belowbrands
th don’t
communicate.
prefer brands when they have 40
Consumers with education background students prefers brand in most
of situations
which can be because of the reason that most of the consumers of this
background
were youth and are highly aware about different brands.
It is evident from the fact that the rise in educational level in rural areas
are helping
companies, as consumers are becoming more and more aware about the
brands.
House wives and self-employed have shown variations from all
other groups. The
main reason for housewives preferring br ands even when it creates
desire because
that in many cases they are in buyer role and they think that they are
more r esponsible
towards their family so, they don’t trust any brand easily and prefers
quality products.
Agriculturists have shown disagreement with all the statement
preferring retailer’s
recommendation. This might be due to fact that they themselves are in
market place
and know the basic intentions of retailers which is to sell the
product which has
maximum margin.
Emotional appeal in advertisement does have more influence on buying
behavior of
rural consumer.
Advertisement has significant impact on the consumers with
educational background
of 12while
th on all other educational groups, the impact is neutral. The main
reason
can be that it is a young segment and are inf luenced easily as
compared to the
segment of higher educational background.
41
CHAPTER-6
The study gave many hidden insights about rural consumer’s impulse
behavior. Companies
which think rural market as non-profitable should change their
perspective as this study
shows that rural consumers also prefer brands in an impulse
situation. Trust factor and
awareness level are changing the market dynamics in rural areas.
As consumers are
becoming more and more educated, they are becoming more aware
about the brands, brand
quality, brands philosophy. They have started giving importance to
the quality as their
discretionary income is rising so there is huge scope for companies with
big brand name in
rural market. Trust factor has led to preference of brands in rural market
also as trust towards
retailer’s in consumers mind is decreasing so they seldom agree with
the suggestions of the
retailer’s which give very less power to him to influence the
customer. Consumer only
accepts the suggestions of retailers at the time of suggestive impulse
which mean when they
have to try a new product. This gives a strong indication towards future
market which implies
that only companies with a brand image will survive and companies
relying on the margins
to retailers have to build brands in order to survive. The survival of
retailers will also become
difficult as the companies with big brand names do not offer large So, they should
margins.
try to win the customer’s trust and after building trust, they should
try to build their own
brand in local market so that they could sell the goods of other
manufacturer under their own
brand name. This study also shows that packaging and labeling on
impulse goods also plays a
vital role in influencing rural consumers as it creates desire in them to
buy it. Advertisement
should focus on the value provided by product rather than emotional
aspect. To enter or to
make rural people try a brand, the company should do sale promotions
as this study reveals
that consumers have a spontaneous urge to buy when the branded
product goes on sale rather
than any unknown product. 42
REFERENCES
WEBSITES:
https://www.ama.org/publications/E-publications/Pages/ama-journal-
reader-october-
14-branding.aspx
http://dx.doi.org/10.5430/ijba.v7n1p59
RESEARCH PAPERS:
43
ANNEXURE
PART (II)
Rate the following on 1to5 scale where (1-strongly disagree, 2-disagree,
3-nuetral, 4-agree,
5-strongly agree)
(IMPULSE GOODS- those you buy without much evaluation,
generally
price low cost
chocolates, e.g. low
candies, small packet juices etc.)
Sr.no. Questions 1 2 3 4 5
1. I prefer brands when I have spontaneous urge to buy.
2. I prefer brands when I tend to buy for excitement, joy, emotional
satisfaction.
3. I prefer retailer’s recommendations when I want to try a new
impulse good rather than going for brand.
4. If I get reminded of a need by seeing an impulse good in retailer
shop, I buy it without seeing its brand or whichever is available
with retailer.
5. When I have an emotional conflict in my mind about the future
consequences of particular impulse good, I go with brand rather
than retailer’s recommendation
6. If an impulse good lying on retailer’s shelf creates desire in me
to buy it then I don’t see its brand, I just buy it.
7. I have a strong spontaneous urge to buy if I get to know that
branded product is on sale rather than any other unknown
product is on sale.
8.
9. Whenever
10.Retailer’s
I value Iimpulse
impulse have
recommendation.
brand
goods.
of an
my
always
he to
friend’s
good
gives choose
have
or
good.
rather between
recommendation
low
better
cost
than the
knowledge
good. Iorgodifferent
a particular
review
so,
with
brand
I take brands
retailer’s
rather
in ofofan
whichever
case
than brand
impulse 44
11. I tend to buy that impulse goods mor e whose advertisement I
have seen.
12. I prefer that brand of impulse goods with which I am
emotionally connected.
45