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A Study on brand Consciousness among children and Its Effect on Family Buying Behavior
Submitted Degree in Business Administration. Under the Guidance ofMs. Sarika Ahluwalia Lecturer MBA Dept. NCCE Submitted byMukesh Saini MBA/05/32 in partial fulfillment of Master
ACKNOWLEDGEMENT
Getting a report ready requires the work and effort of many people. I would like to thank all those who have contributed in completing this report. First and foremost, I would like to acknowledge Mrs. Puja Walia Maan H.O.D of M.B.A Dept & Mr. S.K.Narang (faculty member) in N.C.College of Engg Israna (Panipat), for giving me the opportunity to do work on this project. I would like to thank my special mentors Ms. Sarika Ahulwalia.
(Mukesh)
INDEX
Sr. No. 1. 2. 3. 4. 5 6. 7. 8. 9. 10. CONTENTS Executive summary Introduction of the study Objective of the study Research methodology Data Analysis & Interpretations findings Suggestions and recommendations Conclusion Limitations Annexure PAGE NO. 4-5 6-15 16-17 18-22 23-36 37-39 40-42 43-46 47-48 49-55
EXECUTIVE SUMMARY
Brands work by facilitating and making more effective the consumer's choice process. Brands have a social and emotional value for the users. They have a personality and speak for the user. They enhance the perceived utility and desirability of a product. Brands have the ability to add or subtract the perceived value of a product. Children today are extremely aware of the various brands in the market and are conscious of the products they use or consume. They pick and choose carefully according to their needs, style preferences, etc. They also exercise a lot of independence in decision - making and influence the family buying behavior. Today's kids are well informed, better than their parents. That is why the topic A Study on Brand Consciousness among Children and Its Effect on Family Buying Behavior has been selected. The main objectives of this project are to study the level of brand consciousness of electronic goods among children in the age group of 8 - 16 years, residing in Haryana, To analyses the effect of brand consciousness among children in the family buying behaviour, To examine whether unbranded products provide same satisfaction as branded products and customers' preference for unbranded products. And to offer valuable suggestions to the marketer that would help in product planning, product promotion and product pricing. This research work is based on the exploratory research design .the data has been collected from primary and secondary sources. The primary data is collected from question are and secondary data is obtained from magazines, newspapers and websites. The Universe of this project consists of Children in the age group of 8 years to 16 years. The Sample size for this project is 50 children and 50 parents.
This project is not free from limitations like small sample size, so the sample may not be truly representative of the population, The questionnaires were to be filled independently by the children; only children from eight years upwards were included in the study. This is because, they need to read, comprehend and answer the questions. Data collection was a difficult task. Many questionnaires were distributed, but all were not returned. Despite of all these limitations an effort has been made to make this research work more representative. After analyzing the data it is found that there is a very high degree of brand awareness among children. To be specific even children as young as eight year olds had given names of at least three well-known brands. Children do not enjoy independence in decision Majority of the parents have said that their children insist for branded items at some point. Most of the parents consider their children's opinion sometimes while purchasing electronic goods. Parents have expressed that children's suggestions are valuable to them at a moderate level while making purchases for the family. So it concluded that brand play very vital role in family while purchasing electronic goods. They dont mind paying extra for branded products, as they get value for money. Children also affect in family buying behavior because children are also very conscious towards brands.
Chapter 1.
INTRODUCTION TO PROJECT
Consumer Behavior
Individual Buyer Behavior
As well as being influenced by the outside environment, people also have their own individual beliefs. It is important that we should know that these are in order that we can better understand how individuals respond to marketing efforts. Individuals are different in terms of how they look their education, their feelings and their responses to marketing efforts. Some will behave predictably and other less predictably according to an individuals personality. The individual consumer absorbs information and develops attitudes and perceptions. In marketing terms, this will affect an individual need as well as determining how to satisfy them. The task of marketing is to identify patterns of behavior which are predictable under given conditions, which will increased the marketer ability to satisfy customer needs, which is at the very base of marketing. In order to more fully understand this concept we shall concentrate on five psychological concepts to understand buyer behavior. These five psychological concepts.
2.
Social Class This is the most prominent social influence. Traditionally, one of the chief determinants of social class was income. Since pay structures have a great deal in terms of the lower C2, D and E categories moving more towards level previously enjoyed by the higher A, B and C1 categories over past thirty years or so, classification of consumers on the basis of lifestyle is becoming more meaningful today. Income aside, social class is an indicator of life-style and its existence exerts a strong influence on individual consumer and their behavior.
9 Reference Groups This can be described as a group of people whose standards of conduct mould an individual disposition, beliefs and values. This group can be small or large. Reference group can range from the immediate family to individual is unlikely to deviate too far from the behaviors norms laid down by the members of a club or hobby group. Reference group theory not state that individualism can not exit within a group but it does suggest that even rigid independent thinkers will at least be aware of what is considered normal within a group. In a small group be the family the advice and opinion of these who are regarded as knowledge will be highly regarded. Such people are termed opinion leaders. Extraneous to groups influences might also be at the work in opinion forming, and here there is the existence of opinion leaders who are outside of the immediate group. The opinion followers take up their opinions. In the case of a number of products, deliberate direct appeal is made to the so-called snob appeal. This is done by using marketing of companys products acceptable to opinion leaders, or famous personalities (Who are paid for their endorsement) in the hope that other sectors of the population will follow them. The family life cycle traditionally contains six stages, although more recently different division has been quoted. These divisions are: UnmarriedHere, financial commitments and family
responsibilities tend to be low, with disposable income being high. These younger unmarried consumers tend to be more leisure-oriented and more fashion conscious. This segment thus comprises a very important market for many are and innovative products.
10 Young married couples with childrenOutlay here is children oriented, and there is little surplus cash for luxury items. Although they are respective to new product ideas. This group sees economy as being the overriding factor when making purchases. Older married couples still with children at homeDisposable
income will probably have increased, often with both parents working and children being relatively independent. In some cases children may be working and the parents are able to be engaging increasingly in leisure activities often in the form of more than the standards annual holidays. Consumers durable, including major items of furniture, are often replaced at this stage. Such purchases are often made with different motivation to the original motivations of strict functionality and economy that was necessary at an earlier life cycle stage. Older married couples with no children living in the homeHere,
disposable income can be quite high. However, tastes are like to be firmly rooted reflected in unchanging patterns. Thus marketers will have difficulty when attempting to change predisposition, soothe best policy will be through attempts to refine and add value rather than to introduce new concepts and ideas. Older retired couples and single peopleAt this stage, most
consumer durable have been purchased although occasional replacements will be required. Purchasing is low and pattern of purchasing is conservative and predictable. This group of consumers increasing rapidly. Such people tend to be less reliant solely on the State Pension, many having subscribed to occupational pension from
former employers, which boost the state pension. This allows to leads
more active lives and the tourist industry now actively targets this particular market segment.
11
12
Purchase Decision
Consumer
Problem Recognition Information Search Evaluation of Alternatives Purchase Decisions Post Purchase Behavior
The Buyer Decision Model A variety of sources including family and friends (Called word of mouth) from advertising, from catalogues, from visits to retail establishments, and from many other sources. The more complex the products the greater will tend to be this information search. The task of marketing is to ensure that the company products receive high
13 exposure during these information search periods and that the best point of product is emphasizes during the evaluation of alternatives phase. This will put the companys product in the best light prior to the purchase decision because even then the consumer is still susceptible to further influences in relating to marketing the correct choices. Marketer must also be aware of post purchase behavior because this can affect repeat business and forward looking companies attach as much importance to after sales services as they do to making the initial sales. This reduces the degree of satisfaction (or dissonance) in the case of genuine complaints. One method that is now predicted for sales of major items like new motor cars is where companies follow up a sale by some form of communication by letter or telephone with their customers. This builds confidence in the mind of the customer in having made the correct purchasing decision. The terminology that has been attached to this kind of after sales follow up is customer care.
Brand
14 A brand aims to segment the market in order to differentiate supply and fulfill the expectations of specific groups of customers. Products cannot speak for themselves; the brand is what gives them meaning and speaks for them. Today, brands are considered to be among the greatest strengths of a company and the brand image is very important. It is what people remember, if they remember at all. Brand image is built with the logo, name, and slogan all consistently speaking about the brand. Strong brands command premium, they do well during economic slowdown and can be -extended to new businesses with ease.
15 he researcher would like to state at the outset that, for the purposes of this study, 'Brand Consciousness' is not to be confused with 'Brand Awareness'. 'Brand Awareness' simply means being aware of the various brands, it does not govern. Influence ones way of living, whereas 'Brand Consciousness' is being conscious of the nature, type and the manufacturer of the products, used or consumed by an individual. It is assumed that brand consciousness determines ones way of living
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Chapter 2.
17
'Brand', 'Brand Name', 'Brand Equity', and Brand Loyalty' are forces or terms tat affects a business. Product features can be easily copied; therefore brands are considered a marketer's tool for creating product differentiation. Brands differentiate products and represent a promise of value. Brands incite beliefs, evoke emotions, and prompt behavior. People buy products, but which products they buy and how they make a buying decision have a lot to do with how they feel about the brand. Products are what the company makes, what the customer buys is a brand. Brands work by facilitating and making more effective the consumer's choice process. Brands have a social and emotional value for the users. They have a personality and speak for the user. They enhance the perceived utility and desirability of a product. Brands have
18 the ability to add or subtract the perceived value of a product. Consumers expect to pay lower prices for unbranded products or for those with low brand equities. On the other hand, they are ready to pay a premium for their favorite or socially valued brands.
1. To study the level of brand consciousness of electronic goods among children in the age group of 8 - 16 years, residing in haryana. 2. 3. To examine whether unbranded products provide same satisfaction as branded products and customers' preference for unbranded products. 4. To offer valuable suggestions to the marketer that would help in product planning, product promotion and product pricing. To analyse the effect of brand consciousnes~ among children in the family buying behavior.
Chapter 3.
19
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
1. STATEMENT OF THE PROBLEM Most of the studies conducted on brand consciousness among children were done in the U.S. or elsewhere outside India.
20 Few specific studies on brand consciousness among Indian children have been conducted so far. Similarly, though much research has been done into the husband-wife interaction and the family as a whole in the purchase-decision process, relatively few studies deal with the role of children in the family buying process. In order to bridge this gap in this important area of marketing the present study was undertaken. The present study has two dimensions to it, vii., a. To study the level of brand. consciousness among children, and b. Its effects on family buying behavior. It is perceived that such a comprehensive study will provide for indepth analysis and would complete the results. .
2. PERIOD OF STUDY
The collection of data began from the month of February 2007 and was completed in aprail2007. The research report pertains to the year April 2007.
PROFILE OF RESPONDENTS
This study is based on findings of a survey of 50 children and their parents spread in Haryana. The children were in the age group of 8 to 16
21 years. Both 'boys and girls were selected at random within the age group mentioned, using convenience-sampling method. The children were mostly from middle class and upper middle class strata of the society. Further, the respondents being children, items / products used by children where they may have substantial degree of influence in the buying process, have been specifically reflected to in the questionnaire, although, a few questions do ask about their influence in purchase decision process of other items used by the family.
3. Collection of Data
22 The data has been collected from primary and secondary sources. Primary data was collected using two sets of questionnaires for kids and their and parents. One administered to the child to study the level of brand consciousness, and the second administered to the parent to study the impact on the family buying behaviors. In order to have adequate representation of children of all ages and gender, the researcher approached a school in the area and collected data in a structured manner from third standard students up to tenth standard students. Secondary data was collected from Previous Dissertation Research Papers/Marketing Journals/Magazines, Text Books &. Websites.
Sampling Technique
Universe: Children in the age group of 8 years to 16 years. Sampling unit: The sampling unit was limited to the Haryana Sample size: 50 children and 50 parents.
Sampling design: Convenience sampling method without any stratification to obtain a uniform size of respondents in each age / sex category.
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Chapter 3.
24
25 analyze the effect of brand consciousness in children on the family buying behavior. In this section some of the responses are presented in the form of statistical tables for clear and easy comprehension.
26
As shown in the table, the respondents were in the age group of 8-16 years. Most of the children were 14 year old (20%), followed by 11 and 13 year olds (14%), 12 year olds (16%), 15 year olds (12 %) and the least were 8 year olds (2%).
ANALYSIS
OF
PARENTS
AS
RESPONDENT
Que.1. Do you consider your children's opinion while purchasing Always: Sometime: Never: 10 30 10 electronic goods?
INTERPRETATION According to the graph parents consider their children's opinion sometimes while purchasing durable goods mentioned in the table. About 10 always take into consideration their children's opinion while making such purchases. An equal percentage of parents 10 have said that they never consider their children's opinion
Que.2 How much value do you give to your children's suggestions? High level: Medium level: Not at all: 12 31 7
INTERPRETATION:According to the graph 31 of the parents consider their children's opinion sometimes while purchasing durable goods mentioned in the table. About 12 always take into consideration their children's opinion while making such purchases. An equal percentage of parents 7 have said that they never consider their children's opinion.
Que.3 The brand awareness among children is helpful to you up to what extent? High level: Medium level: Not at all: 30 25 20 15 10 5 0 high level medium level not at all
16 27 7
INTERPRETATION It is evident from the graph given above that brand awareness amongst children is helpful to parents to some extent, as about 76% of respondents have opted for it. 19% of respondents said it is highly helpful. While only 5% of respondents feel it does not help at all.
INTERPRETATION Graph show that most of the family lives in the joint family thats why suggestion of children does not that much matter because other member of the family also influence purchasing decision. Graph show that 35 family lives in joint families and rest lives in nuclear.
8 42
INTERPRETATION:The sample size is 50, of which 42 respondents are aware of brands. It is clear from the above table that there is a very high degree of brand awareness among Children
Que.4 Who takes the final decision to buy electronic products for your family? Father Mother You Any Other 18 10 6 16
20 15 10 5 0
INTERPRETATION The table shows that parents play major role in purchasing electronic products. Children do not enjoy independence in decision making for all the items listed as most of them have opted 'not for all'. But other members also influence buying decision.
Que.5 Does your Parents' agree with your decision to buy an electronic product? Yes: No: 18 32
35 30 25 20 15 10 5 0 Yes No
INTERPRETATION:Parents do not agree with all that the child buys, but approve most of them. A very negligible percent do not approve of their child's choice.
Que.6 Does purchasing a particular brand give you a sense of satisfaction ? Yes: No: 33 17
35 30 25 20 15 10 5 0 yes no
INTERPRETATION:Most of the respondents said that selecting a particular brand gives them a sense of satisfaction.
INTERPRETATION:The most important reason that respondents prefer buying branded products is for quality. About prefer the brand because it attracts them and about prefer because of fashion.
Que.8 what are the parameters of your Buying decision? Popularity: Price: Quality: Durability: 7 8 26 9
INTERPRETATION:All the variables listed in the table help in choosing a brand constituting of respondents, however, 'quality' is the most important individual factor that helps in choosing a brand. It is followed by popularity of the brand. Price is least important factor according to the respondents. Unbranded products vs. branded products
Que.9. Depicts respondents' perception of unbranded products. Yes: No: 35. 15.
35 30 25 20 15 10 5 0 yes no
INTERPRETATION:35 have expressed that unbranded products provide same satisfaction as that of branded products. 15 indicated that they do not qualify the norms of branded products
Chapter 5.
FINDINGS
Child as respondent
The sample size is 50, of which 48respondents (97%) are aware of brands. It is clear that there is a very high degree . of brand awareness among children. To be specific even children as young as eight year olds had given names of at least three well-known brands. Children do not enjoy independence in decision making for all the items listed in the questionnaire, as most of them (57.2%) have ticked 'not for all'. But sizeable respondents (39.6%) have said 'yes' that they decide independently Good Quality' is the foremost reason for buying a branded item (45.5%), followed by reliability (15.8%). About 29.7% of respondents feel that all the aspects are important to them. 81.1 % respondents said they don't mind paying more for a branded product as they get value for money. 67.6% have expressed that unbranded products provide same satisfaction as that of branded products. 32% indicated that they do not qualify the norms of branded products.
Parent as respondent
55.9% of the parents have said that their children insist for branded items at some point of time, 29.7% of respondents said 'yes they insist' and 14% of respondents said 'no' they do not insist or branded items. 65.8% of the parents consider their children's opinion sometimes
while purchasing durable goods mentioned in the table. About 16.7% always take into consideration their children's opinion
While making such purchases. An equal percentage of parents (16.7%) have said that they never consider their children's opinion. 80.2% parents have expressed that children's suggestions are valuable to them at a moderate level while making purchases for the family. 12.6% parents said that their children's suggestions are highly valuable to them during purchases. A very negligible number of respondents (4.5%) said their child's suggestion is not at all valuable to them. Brand awareness amongst children is helpful to parents to some extent, as about 76% of respondents have opted for it. 19% of respondents said it is highly helpful. While only 5% of respondents feel it does not help at all. Findings of Hypotheses Testing Children's' insistence for branded products and parents' preference for products is dependent. There is a significant difference in the motivation for buying branded items between boys and girls. That is, boys and girls have different motivating factors for buying branded items. There is a significant difference in the reasons for buying branded items amongst the various income groups. Parent's acceptance of child's suggestions and the gender of child are independent. There is no significant difference between the satisfaction levels of branded and unbranded products. That is, unbranded products give same satisfaction as branded products according to respondents.
Chapter 6.
CONCLUSION
A brand aims to segment the market in order to differentiate supply and fulfill the expectations of specific groups of customers. Products cannot speak for themselves; the brand is what gives them meaning and speaks for them. Today, brands are considered to be among the greatest strengths of a company and the brand image is very important. It is what people remember, if they remember at all. Brand image is built with the logo, name, and slogan all consistently speaking about the brand. Strong brands command premium, they do well during economic slowdown and can be -extended to new businesses with ease. Based on the study the major conclusions drawn by the researcher are set out below: Quality is an important factor that draws consumers towards branded products. Branded products are accepted as good quality products. Children are highly aware and conscious of branded items. People don't mind paying extra for branded products, as they get value for money. Media is a key constituent in promoting and influencing a brand. A Child's insistence affects family buying behavior. Spending power among children has increased. Children have more say in the purchase of products that are less expensive and are intended for their own use. Boys have a slight edge over girls in getting parents to agree with them. Peer pressure works more in boys.
Girls are more conservative and buy mostly when in need of things. Both boys and girls invariably consult family members in purchase decisions. Children prefer branded products for items like watches clothes and shoes. Although unbranded products sometimes give same satisfaction as branded products, customers would still prefer to purchase a branded product.
Chapter 7.
SUGGESTIONS
Companies need to allocate huge budgets for advertising, promotion and publicity in order to build a brand image. In the minds of consumers a better-known brand is considered to be a better brand. Studies show that children begin to recognize product brands at an early age. Hence, even if the child does not have use for the product immediately, the marketing must begin in childhood so as to build the brand image. Successful brand building among children can carryover into adulthood. It ensures brand loyalty. A child's insistence for branded products (clothes or shoes) is likely to have more effect on a parent than advertising. The study reveals that parents' prefer branded products because a child insists for them. Brand awareness among children is helpful for the parents to a large extent. They consider their opinion / suggestions while making purchase decision of durable goods for the family. Boys and girls have different motivating factors for buying branded items. This necessitates that the marketer has to reach accordingly to the different segments. Separate advertising campaign should be initiated for boys and girls. Customers associate a branded product with 'good quality'. To successfully promote a brand and to retain customer loyalty, the marketer must ensure that quality of the product is maintained at a high level. More than the brand name or company name, consumers primarily seek quality in products. They are satisfied with an unbranded product if it is of good quality.
Marketers of unbranded products must strive to penetrate the market by improving quality of the product and give wide publicity. If local marketers deliver the promise of quality they can compete with top branded products. The promotion strategy adopted by marketers of unbranded products should strive to change the' mind set about customers' perception of quality of unbranded products. A brand aims to segment the market in order to differentiate supply and fulfill the expectations of specific groups of customers. Products cannot speak for themselves; the brand is what gives them meaning and speaks for them. Today, brands are considered to be among the greatest strengths of a company and the brand image is very important. It is what people remember, if they remember at all. Brand image is built with the logo, name, and slogan all consistently speaking about the USP of the brand. Strong brands command premium, they do well during economic slowdown and can be -extended to new businesses with ease. Based on the study the major conclusions drawn by the researcher are set out below: Quality is an important factor that draws consumers towards branded products. Branded products are accepted as good quality products. Children are highly aware and conscious of branded items. People don't mind paying extra for branded products, as they get value for money. Media is a key constituent in promoting and influencing a brand. A Child's insistence affects family buying behavior. Spending power among children has increased. Children have more say in the purchase of products that are less expensive and are intended for their own use. Boys have a slight edge over girls in
Getting parents to agree with them. Peer pressure works more in boys. Girls are more conservative and buy mostly when in need of things. Both boys and girls invariably consult family members in purchase decisions. Children prefer branded products for items like watches clothes and shoes. Although unbranded products sometimes give same satisfaction as branded products, customers would still prefer to purchase a branded product?
Chapter 8.
Chapter 9.
ANNEXURE
Bibliography Appendices
BIBLIOGRAPHY
Text books.
. 1. 2. 3. Philip Kotler, 'Marketing Management', Prentice-Hall of India Private Ltd., Schiffman, 'ConsumerBehaviour Marketing management, T.N Chabra New Delhi, Eleventh Edition, 2003
Newspapers
I. The Economic Time~ 'Brand Equity' 26th November 2003. 2. The Economic Times 'Brand Equity' 101h December 2003. The Economic Times 'Brand Equity' 24th December 2003.
Websites
www.google.com www.yahoo.com
Chapter 8.
A Study on Brand Consciousness among Children and Its Effect on Family Buying Behaviour of electronic goods in haryana Que.1. Are you aware of some brands of electronic good? If yes, name a few brands of the same . YES ______ Que.2. Who takes the final decision to buy an electronic product for your family? Father Any other _____________________________________ ___________________ Mother You NO ________________________________________________________
Que.3. Does your Parents' agree with your decision to buy an electronic product . Yes ______ No ________________________________________________________
Yes ______
No
________________________________________________________
Que.5. Reasons for preferring a branded item. Quality _______ Prestige Fashion
_________________________________________________
Que.6 What are the parameters of your Buying decision Popularity Price Quality
Durability ________________________________________________________ ______ Que.7. How do perceive unbranded products in terms of: Good Quality Durability Popularity Overall Satisfaction ________________________________________________________ ______ A Average B Bad
A Study on Brand Consciousness Among Children and Its Effect on Family Buying Behaviour of electronic goods in haryana
Que .1 Classification Data ______ Que2 . Do you live in a J Joint Family Nuclear Family Age Qualification Income ________________________________________________________ Name
______
________________________________________________________
Que3. Do you consider your children's opinion while purchasing electronic goods? A Always ______ Sometime Never
________________________________________________________
Medium level
not at
________________________________________________________ ______ Que5. The brand awareness among children is helpful to you up to what extent? H High level a all ________________________________________________________ ______ Medium level not at