Synopsis for project report

(3rd semester)

“AN EMPERICAL ANALYSIS OF CONSUMER BUYING

BEHAVIOUR IN BANGALORE D-MART”

Submitted in partial fulfillment of the requirements for the award of the

degree of

Master Business Administration

OF

BENAGALORE UNIVERSITY

Submitted by

PRAVEEN H J

(REG NO: 17OTCMD026)

Under the guidance of

GANESHKUMAR C

Assistant professor

INDIAN INSTITUTE OF PLANTATION MANAGEMENT

2017-2019
 Title of study:

“AN EMPERICAL ANALYSIS OF CONSUMER BUYING

BEHAVIOUR IN BANGALORE D-MART”
A formal definition of customer behavior, states that customer behavior is:
“Consumer buying behavior is the sum total of a consumer's attitudes,
preferences, and decisions regarding the consumer's behavior in the
marketplace when purchasing a product or service”. From awareness,
discovery, attraction, interaction, purchase. It can also be used to mean an
individual experience over one transaction; the distinction is usually clear in
context.

To create a superior customer requires understanding the customer's point of

view .In practical terms, customer behavior is the customer’s perception of,
and attitude about, and different areas of your company or brand across the
entire customer lifecycle.

The whole idea around consumer's behavior is to maintain an ongoing

deliberate effort to keeping customers pleased with the service they have
received so that continuous improvement is something that exists as a real
process.

Consumer buying behavior involves 6 stages that are:-

1) Problem recognition.
2) Information search.
3) Evaluations of alternatives.
4) Purchase decision.
5) Purchase.
6) Post-purchase evaluation.

The consumer buying behavior includes all the above stages and even some
of the unknown factors that influence them while making the purchasing
decision.

INTRODUCTION TO RETAILING
India started its Retail Journey since ancient time. In Ancient India there was
a concept of weekly HAAT, where all the buyers and sellers gather in a big
market for bartering. It takes a pretty long times to and step to shape the
modern retail. In between these two concepts (i.e. between ancient retail
concept and the modern one there exist modern Grocery/ mom and pop
shops or Baniya ki Dukan. Still it is predominating in India So the Indian
retail industry is divided into two sectors- organized and unorganized. The
Indian retail industry is now beginning to evolve transformation that has
swept other large economies.

There is a vast change in Indian retail, the liberalization of the consumer

goods industry initiated in the mid-80’s and accelerated through the 90’s has
begun to impact the structure and conduct of the retail industry. The concept
retail, which includes the shopkeeper to customer interaction, has taken
many forms and dimensions, from the traditional retail outlet and street
local market shops to upscale multi brand outlets, especially stores or
departmental stores.

Hence, focusing on two aspects of retail marketing i.e. store retailing and
non store retailing. Store Retailing as the departmental store, which is a store
or multi brand outlet, offering an array of products in various categories
under one roof, trying to cater to not one or two but many segments of the
society and Non store retailing as the direct selling, direct marketing,
automatic vending.

A consumer buying behavior with reference to D-Mart is to check the

buying behavior of an individual consumer, when he used to shopping in D-
Mart. D-Mart offers all over the household products for our daily routine in
best affordable prices for every customer.

OVERVIEW OF INDIAN RETAIL SECTOR:

Retail industry, being the fifth largest in the world, is one of the sunrise
sectors with huge growth potential and accounts for 14-15% of the country’s
GDP. Comprising of organized and unorganized sectors, Indian retail
industry is one of the fastest growing industries in India, especially over the
last few years.

India's strong growth fundamentals, high saving and investment rates, fast
growth in labour force and, increased consumer spending has made it a very
favorable retail
destination globally .Indian consumers continue to urbanize, started spending
more on non-food purchases and have more exposure to brands, this has
resulted in powerful, more discerning consumer class. India's nearly 1.2
billion populations is also an attractive target for the global brands.

India's retail sector is on its way of modernization. Traditional markets are

making way for new formats such as departmental stores, supermarkets and
specialty stores. Westernized malls can be seen fast appearing in metros
and tier-II cities, introducing the Indian consumer to an implausible
shopping experience.

According to the Global Retail Development Index 2012, India ranks fifth
among the top 30 emerging markets for retail. The recent announcement by
the Indian government with Foreign Direct Investment (FDI) in retail,
especially allowing

100% FDI in single brands and multi-brand FDI has created positive
sentiments in the retail sector.

UNDERSTANDING RETAIL INDUSTRY:

Retail is currently the flourishing sector of the Indian economy. This trend is
expected to continue for at least the next two three decades, and it is
attracting huge attention from all entrepreneurs, business heads, investors
as well as real estate owners and builders.

Availability of quality, retail space, wider availability of products and brand

communication are some of the factors that are driving the retail in India
Retail sector is also supporting to create huge employment while a new form
of organized retail sector has emerged within the retail industry and it gave
speedy phase to Indian retail sector.
MAJOR INDIAN RETAILERS:

REI AGRO LTD Retail: 6TEN and 6TEN kirana stores

Future Groups-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central,

Fashion Station,

Brand Factory, Depot, E-Zone etc. Raymond Ltd.: Textiles, The Raymond
Shop, Park Avenue, Park Avenue Woman, Parx

Colour plus, Neck Ties & More, Shirts & More etc.

Fabindia: Textiles, Home furnishings, handloom apparel, jewellery

RP-Sanjiv Goenka Group Retail-Formats: Spencer’s Hyper, Spencer's

Daily, Music World,

Au Bon Pain (International bakery cafeteria), Beverly Hills Polo Club

The Tata Group-Formats: Westside, Star India Bazaar, Steel junction,
Landmark, Titan

Industries with World of Titans showrooms, Tanishq outlets, Croma.

Reliance Retail-Formats: Reliance MART, Reliance SUPER, Reliance
FRESH, Reliance

Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance

Trends, Reliance Autozone, iStore Reliance ADAG Retail-Format: Reliance
World

Nilgiri’s-Formats: Nilgiris’ supermarket chain

Marks& Spencer: Clothing, lifestyle products, etc. Lifestyle

International-Lifestyle, Home Centre, Max, Fun City and International
Franchise

Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre,

Viveks Safe

Deposit Lockers PGC Retail -T-Mart India [1], Switcher, Respect India,
Grand India Bazaar,etc.

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom

discount chain
EMERGING AREAS:

Some sectors that occupy a prominent position with the retail industry are:

Apparel Retail: Everybody understands the impact of fashion and textiles on

the environment. Almost $19.5 billion were spent on online apparel
shopping in the year 2009 and increasing since then.

Fashion & Lifestyle Retail: In India the vast middle class and its almost
untapped retail industry are the key attractive forces for global retail giants
wanting to enter into newer markets, which in turn will help the retail to
grow faster.

Food & Beverage Retail: Backed by huge potential and changing lifestyles,
the food and beverage retail market is growing at a robust 30-35 per cent per
year.

Pharmaceutical Retail: Driven by therapies like anti-diabetic, vitamin, anti-

infective and dermatology, it accounted for a robust 15% growth in 2011.

E-commerce or E-tailing – the next big revolution: With the advent of e-

commerce in the retail industry, retail stores are facing stiff competition from
e-stores. The rising demand for e-shopping has lead to a new debate
cropping up in the world

RETAIL FORMATS IN INDIA

Mom-and-pop Stores:

These are small family-owned businesses, which sell a small collection of

goods to the customers. They are individually run and cater to small sections
of the society. These stores are known for their high standards of customer
service.

Department stores:

Department stores are general merchandisers. They offer to the customers

mid- to high- quality products. Though they sell general goods, some
department stores sell only a select line of products. Examples in India
would include stores like "Westside" and "Lifestyle"--popular department
stores

Category Killers:

Specialty stores are called category killers. Category killers are specialized
in their fields and offer one category of products. Most popular examples of
category killers include electronic stores like Best Buy and sports
accessories stores like Sports Authority

Discount Stores:

Discount stores offer price reduction. Discount stores are those that offer
their products at a discount, that is, at a lesser rate than the maximum retail
price. This is mainly done when there is additional stock left over towards
the end of any season. Discount stores sell their goods at a reduced rate with
an aim of drawing bargain shoppers.

Supermarkets:

One of the other popular retail formats in India is the supermarkets. A

supermarket is a grocery store that sells food and household goods. They are
large, most often self- service and offer a huge variety of products. People
head to supermarkets when they need to stock up on groceries and other
items. They provide products for reasonable prices, and of mid to high
quality.

Street vendors:

Street vendors, or hawkers who sell goods on the streets, are quite popular in
India. Through shouting out their wares, they draw the attention of
customers. Street vendors are found in almost every city in India, and the
business capital of Mumbai has a number of shopping areas comprised
solely of street vendors. These hawkers sell not just clothes and accessories,
but also local food.

E-retailers:

These are retailers providing online buying and selling of products and
services.

Convenience stores:
These are located in residential areas with slightly higher prices goods
due to the convenience offered.

Kiosks/vending:

Kiosks are box-like shops, which sell small and inexpensive items like
cigarettes, toffees, newspapers and magazines, water packets and sometimes,
tea and coffee. These are most commonly found on every street in a
city, and cater primarily to local residents.

CHAPTER –2

RESEARCH METHODOLOGY

INTRODUCTION:

A formal definition of customer behavior, states that customer behavior is:

“Consumer buying behavior is the sum total of a consumer's attitudes,
preferences, and decisions regarding the consumer's behavior in the
marketplace when purchasing a product or service”. From awareness,
discovery, attraction, interaction, purchase. It can also be used to mean an
individual experience over one transaction; the distinction is usually clear in
context.

To create a superior customer requires understanding the customer's point of

view .In practical terms, customer behavior is the customer’s perception of,
and attitude about, and different areas of your company or brand across the
entire customer lifecycle.

The whole idea around consumer's behavior is to maintain an ongoing

deliberate effort to keeping customers pleased with the service they have
received so that continuous improvement is something that exists as a real
process.
Consumer buying behavior involves 6 stages that are:-

1) Problem recognition.
2) Information search.
3) Evaluations of alternatives.
4) Purchase decision.
5) Purchase.
6) Post-purchase evaluation.

The consumer buying behavior includes all the above stages and even some
of the unknown factors that influence them while making the purchasing
decision.

The key to keeping your business running smoothly is to address the wants,
needs and concerns of your customers. This example of a Consumer
Behavior Survey will help you gather the information you need to keep your
clients happy and to improve the overall performance of your company. It
offers you the opportunity to find out what you are doing right in the eyes of
your customers.

Survival in today’s economic climate and competitive retail environment

requires more than just low prices and innovative products. To compete
effectively, business must focus on the customer’s shopping experience. To
manage a customer’s experience, retailers should understand what customer
really need at the present situation.

COMPANY PROFILE:

D-Mart is a chain of hypermarkets in India founded by Radhakishan Damani

in the year 2002. As of October 2018, it had 160 stores across India in the
states of Maharashtra, Andhra Pradesh, Gujarat, Madhya Pradesh,
Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka
and Punjab.

The company has its headquarters in Mumbai.

D-Mart is promoted by Avenue Supermarts Ltd. (ASL).

D-Mart is a one-stop supermarket chain that aims to offer customers a wide

range of basic home and personal products under one roof. Each D-Mart
store stocks home utility products –
That includes Food, Beauty products, Garments, Kitchenware, Home
appliances and more. So that our customer gets satisfaction on competitive
prices .Our core objective is to offer customers good products at great value
for their satisfaction in D-Mart.

A consumer buying behavior with reference to D-Mart is to checking the

buying behavior of an individual consumer when he used to shopping in D-
Mart. D-Mart offers all over the household products for our daily routine in
best affordable prices for every customer.

To provide the best value possible for our customers, so that every rupee
they spend on shopping with us gives them more value for money than they
would get anywhere else.

NEED FOR THE STUDY:-

• One’s a customer get inside the store they will find all kinds of
products available that may be Food item, Cosmetic, Electronic, Garments,
Furniture etc.

• Because of these features it has a very good reputation in that area and
customers who are residing far away and in other areas they also visit the
store.

• This department will be responsible for the product arrangement at the

store with respect to their nature.

• This department will be responsible for the maintenance of the

systems of the store.

STATEMENT OF THE PROBLEM:-

In today’s market it is very challenging to understand the consumer buying

behavior and their life style. D-MART has more competition in the market
like reliance retail, to overcome this problem D-mart keep its cost low.

The impact of changing life style of the consumer, where their buying
behavior will be changing.
OBJECTIVE OF THE STUDY:-

• To know availability of varieties of products.

• To know about affordable price for everyone.

• To study the customer buying behavior.

• To comprehend the determinants of customer satisfaction.

• To study of availability of offers and services.

• To know the customer satisfaction level.

• To study of quality of products.

Scope of study:-

Since the study is on D-Mart shopping the detail study of the D-Mart will be
conducted about its customers & their behavior regarding shopping in D-
Mart.

The scope of study is limited to D-Mart Vijay Nagar branch.

Study is conducted to understand general and specific customer behavior.

Various factors that are essential for the customers are in the store.
Research Design:

Type of study will be descriptive research.

Data Sources:

Primary Data:

The primary data will be collected with the aid structured of structured
questionnaire with respect to the objective of the project.

Secondary Data:

Data regarding the industry, company and products will be obtained from
internet, company personnel and customer feedback book.

Sampling Design:

Sample unit: Customers of D-Mart who shop inside the mall.

Sample size: The total sample size will be 50.

Sampling technique:

The sampling is non-probability convenient sampling of customers. The

respondents are chosen according to the convenience of the researcher. The
customers who visited the Vijay Nagar store during the period of study were
picked randomly according to the researcher convenience.

Research instrument:

The instrument will be a structured questionnaire.

Statistical tools for analysis:

Descriptive statistical tools like mean, chart tables etc. and inferential
statistics like ANOVAs, t- test etc. using MS Excel Software.

Limitations of the study:

• The study is limited only to the customers of D-Mart in Vijay Nagar.

• The analysis is based on the responses given by individuals, which

depends on the perception of the customers.

• Qualitative aspects of buying behavior cannot be measured accurately

i.e. the opinion might have been biased.

QUESTIONNAIRE

• Personal Details:-
Name:-
Address:-
Gender:- Male ( ) Female ( )
Age:-

• How frequently do you visit D-Mart?

a) Daily ( ) b) Weekly ( ) c) Monthly ( )

• Type of products you prefer to purchase?

a) Grocery ( ) b) Cloths ( )
c) House Hold ( ) d) Food Items ( )

• Offers of D-Mart as compared to stores?

a) Low ( ) b) Average ( ) c) High ( )

• For day to day need you prefer?

a) D-MART ( ) b) Store ( )

• Do you think D-Mart is more affordable for everyone?

a) Yes ( ) b) No ( )

• Are you happy with the parking facility provided?

a)Yes ( ) b) No ( )

• How frequently do you shop at D-Mart?

a) Weekly ( )
b) For two weeks ( )
c) Monthly ( )

• Why do you shop at D-Mart?

a) Low price ( )
b) Product variety ( )
c) Quality ( )
d) Location ( )

• Do you think store layout at this store makes it easy for

customers to find what they need?
a) Strongly disagree ( )
b) Disagree ( )
c) Neutral ( )
d) Agree ( )
e) Strongly agree ( )

• How would you rate the return policy of D-Mart?

a) Excellent ( )
b) Good ( )
c) Satisfactory ( )
d) Not satisfactory ( )

• Are you happy with the store location?

a) Yes ( ) b) No ( )
In the above study questionnaire is designed and randomly get it
filled by the customer of D-Mart(respondent’s) to check whether
need and objective of the study is met or not , so that the study is
reliable to the people.
The study will give a brief expiation about the different opinion
among the different customer and their perception about the
varieties of products available in D-Mart. Overall view of the
selected number of respondent’s (customer) will be disclosed for
the further reference.
Also information that are furnished by the deep observation by the
researcher regarding the followings:
Consumer satisfaction level through their, feedback. About the
pricing strategies, availability of various offers, services especially
on weekends in D-Mart, the quality products that they are into at
affordable price by, maintaining the quality.

CHAPTER – 3

REVIEW OF LITERATURE

REVIEW OF LITERATURE:

D-Mart beats the Goliaths. Business standard.

Sonavane, Ravindra N. (11 June 2018). "D-Mart parent joins Rs1
trillion market cap club". www.livemint.com. Retrieved 11 June
2018.
Official website:-
http://www.dmartindia.com.