A

SUMMER TRAINING
PROJECT
REPORT ON

“Market analysis of Uttaranchal Organic

domestic existence awareness”
For partial fulfillment of M.B.A

SUBMITTED TO: -- SUBMITTED BY:--

Ms. Kumkum Joshi Raghvendra Kumar Pandey

(LECTURER) MBA 3rd Sem.
DEPT. MANAGEMENT STUDIES
 ACKNOWLEDGMENT

The authorship of a monograph is usually attributed to one person but a report on the internship
or a project work is a joint efforts .It is well established fact that behind every achievement lays
an unfathomable gratitude of those who have extended their support and without whom it would
never come into existence .To them I lay the words of gratitude.

First of all I would like to thank for the mercy of Almighty that I could successfully complete
this project .I bow my head before him .I would like to thanks Mr. V.P Gangwar
( Lect .AIMCA) for her support and for providing me the time and inspiration needed to detail
out this project.
 CONTENTS

1. OBJECTIVES OF THE STUDY

2. RESEARCH METHODOLOGY

3. INTRODUCTION

4. OPERATIONAL DEFINITION OF THE CONCEPTS

5. INDUSTRY
a) ROYAL FURNISHERS (FURNITURE INDUSTRY)

7. CONCLUSION

8. BIBLIOGRAPHY

\
 OBJECTIVES OF THE STUDY

 To analyze the components of the consumer decision-making process.

 To identify the types of consumer buying decisions and discusses the significance of
consumer involvement.

 To define the business buying behavior & identify the stages of business buying process.

 To analyze the strategies of consumer decision making.

 RESEARCH METHODOLOGY

The research methodology followed during the training period as follows:

DATA COLLECTION

Primary data is being collected through asking questionnaire from various farmers in
and some data is also collected from company Websites and company manual

RESEARCH DESIGN

Descriptive research design is being used for the research

SAMPLING METHOD

Random sampling was used for collecting samples

 INTRODUCTION

An introduction to consumer decision-making the study of decision-making is at the centre of a

number of disciplines, including economics, politics, systems theory, sociology and psychology.
The study of decisions is concerned with choices in a complex environment, and each of these
disciplines could argue a valid case that the focus of the processes involved lies within their area
of study. The need to investigate the decision process is largely self-evident; if we are
systematically to investigate the world in which we operate, then it is necessary that we
understand the millions of choices we make as individuals and groups. The ordering of these
decisions from individual and discrete, to comprehensible patterns, makes it more likely we are
able to explain and replicate them. The study of decision-making is concerned with the need to
explain and make intelligible the environment in which such decisions are a
continuous emphasis.
The decisions a consumer makes to purchase products and services are based on a process of
learning. This is an almost axiomatic statement to consumer educators and those involved with
consumer interest studies in general. Even though one assumes that consumers' learning and
decision making are related phenomena, this relationship has not been systematically explored in
consumer research.

The research reported in this paper explores the relationships between individuals' learning styles
and their consumer decision-making styles. Using two recently validated methods for measuring
learning styles and consumer decision-making styles, the inter correlations of learning and
decision-making styles are examined. As reported below important relationships exist between
an individual's general style of learning and his or her specific style of consumer decision
making. These relationships have important implications for the development of effective
consumer education and informational programs. They are particularly relevant in understanding
how differences in individual approaches to learning lead to widely different consumer decision-
making styles.

OPERATIONAL DEFINITION OF THE CONCEPTS

CONSUMER BEHAVIOUR

Consumer behavior is the study of when, why, how, and where people do or do not buy product.
It blends elements from psychology, sociology, social anthropology and economics. It attempts
to understand the buyer decision making process, both individually and in groups. It studies
characteristics of individual consumers such as demographics and behavioral variables in an
attempt to understand people's wants. It also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and society in general.

Customer behavior study is based on consumer buying behavior, with the customer playing the
three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for
customer behavior analysis as it has a keen interest in the re- discovery of the true meaning of
marketing through the re-affirmation of the importance of the customer or buyer. A greater
importance is also placed on consumer retention, customer relationship management,
personalization, customization and one-to-one marketing. Social functions can be categorized
into social choice and welfare functions.

Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem
is used for a social function, social welfare function is achieved. Some specifications of the
social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity
and weak and strong Pareto optimality. No social choice function meets these requirements in an
ordinal scale simultaneously. The most important characteristic of a social function is
identification of the interactive effect of alternatives and creating a logical relation with the
ranks. Marketing provides services in order to satisfy customers.

According to Leon Schiffman and Leslie Lazer Kanuk

“The term consumer behavior can be defined “as the behavior that consumers display in
searching for purchasing, using, evaluating and disposing of products, services and ideas which
they expect will satisfy their needs.”
According to David Loudon and Albert J. Della Bitta

“Consumer behavior is the decision process and physical activity individual engage in when
evaluating, acquiring, using or disposing of goods and services”

What is Decision????

A decision is a choice between two or more alternative actions or behaviors

For Example: A housewife goes to purchase a mid priced range of tea, than making a selection
from the various brands of tea like Taj Mahal, Tata Tea, Red label, Yellow label, etc. than she is
making decision.

Consumer decisions are decisions of consumers make in the marketplace

:

Involving

 Whether to purchase
 What to purchase
 When to purchase
 From whom to purchase
 How to pay for the purchase

CONSUMER DECISION MAKING

In the most a decision is the selection of an action from two or more alternative choices. A
choice of alternative choice of alternatives must be available for a person to make a decision. A
person is in a position to make a decision if he has a choice between making a purchase and not
making a purchase. On the other hand, if he has no alternatives from which to choose, he is
literally forced to make a particular purchase and this single “ no- choice” action does not
constitute a decision.
Consumer Decision Making Processes

As consumers of myriad products we make decisions every moment, at times without realizing
that we have actually taken one. Everyday people make consumer decisions on what cuisine to
devour on a particular day, where to spend money on the next holiday vacation or simply how
many in groceries do you need to buy for this week. Thus consumer decision making process can
be defined as the manner in which a buyer identifies or recognizes his requirements, gathers the
necessary information related to his needs, assesses the alternatives, purchases the products and
finally makes an evaluation of the same.

Traditionally, consumer researchers have approached decision making process from a rational
perspective. This dominant school of thought views consumers as being cognitive (i.e., problem-
solving) and, to some but a lesser degree, emotional.i Such a view is reflected in the stage model
of a typical buying process (often called the consumer information processing model)

P roblem R ecognition

Info rm ation Search

E valuation and S election of A ltern atives

D ecision Im plem entation

Post-purchase Evaluatio n
In this model, the consumer passes through five stages: problem recognition, information search,
evaluation and selection of alternatives, decision implementation, and post-purchase evaluation.

 Problem Recognition

In this information processing model, the consumer buying process begins when the buyer
recognizes a problem or need.
For example, Deficit in assortment of products Hunger--Food Hunger stimulates our need to
eat. Can be stimulated by the marketer through product information--did not
Know we were deficient?
E.g., see a commercial for a new pair of shoes, stimulates your recognition that we need a new
pair of shoes. These are the kinds of problem that we as consumers encounter all the time. When
we found out a difference between the actual state and a desired state, a problem is recognized.
When we find a problem, we usually try to solve the problem. We, in other words, recognize the
need to solve the problem.

 Information Search

When a consumer discovers a problem, he/she is likely to search for more information. Kathleen
may simply pay more attention to product information of a personal computer. She becomes
more attentive to computer ads, computers purchased by her friends, and peer conversations
about computers. Or, she may more actively seek information by visiting stores, talking to
friends, or reading computer magazines, among others. Through gathering information, the
consumer learns more about some brands that compete in the market and their features and
characteristics. Theoretically, there is a total set of brands available to Kathleen, but she will
become aware of only a subset of the brands in the market. Some of these brands may satisfy her
initial buying criteria, such as price and processing speed. As Kathleen proceeds to more
information search, only a few will remain as strong candidates.

 Evaluation and Selection of Alternatives

How does the consumer process competitive brand information and evaluate the value of the
brands? Unfortunately there is no single, simple evaluation process applied by all consumers or
by one consumer in all buying situations.
One dominant view, however, is to see the evaluation process as being cognitively driven and
rational. Under this view, a consumer is trying to solve the problem and ultimately satisfying
his/her need. In other words, he/she will look for problem-solving benefits from the product.
The consumer, then, looks for products with a certain set of attributes that deliver the benefits.
Thus, the consumer sees each product as a bundle of attributes with different levels of ability of
delivering the problem solving benefits to satisfy his/her need. The distinctions among the need,
benefits, and attributes are very important. One useful way to organize the relationships among
the three is a hierarchical one although simplified, Figure 2 is an example of how a bundle of
attributes relates to the benefits and underlying needs of Kathleen.

H elpsMeSurvive
UnderlyingNeeds BabsonMBAPogram

Doesn’t Break Com putational

Benefits Portability Economy HorsePower
down

Warranty

Attributes Size
Brand Software CPUSpeed
Reputation Price
Bundle

HardDriveSize
GlobeNet
Ready

 Decision Implementation

To actually implement the purchase decision, however, a consumer needs to select both specific items
(brands) and specific outlets (where to buy) to resolve the problems. There are, in fact, three ways these
decisions can be made: 1) simultaneously; 2) item first, outlet second; or 3) outlet first, item second.
In many situations, consumers engage in a simultaneous selection process of stores and brands. For
example, in our Kathleen’s personal computer case, she may select a set of brands based on both the
product’s technical features (attributes) and availability of brands in the computer stores and mail-order
catalogs she knows well. It is also possible, that she decides where to buy (e.g., Comp USA in her
neighborhood) and then chooses one or two brands the store carries. Once the brand and outlet have been
decided, the consumer moves on to the transaction.

 Post-purchase Evaluation

Post-purchase evaluation processes are directly influenced by the type of preceding decision-
making process. Directly relevant here is the level of purchase involvement of the consumer.
Purchase involvement is often referred to as “the level of concern for or interest in the purchase”
ii
situation, and it determines how extensively the consumer searches information in making a
purchase decision.iii Although purchase involvement is viewed as a continuum (from low to
high), it is useful to consider two extreme cases here. Suppose one buys a certain brand of
product (e.g., Diet Pepsi) as a matter of habit purchase. For him/her, buying a cola drink is a very
low purchase involvement situation, and he/she is not likely to search and evaluate product
information extensively. In such a case, the consumer would simply purchase, consume and/or
dispose of the product with very limited post-purchase evaluation, and generally maintain a high
level of repeat purchase motivation.

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(Low Involvement Purchase)

However, if the purchase involvement is high and the consumer is involved in extensive
purchase decision making (e.g., personal computer), he/she is more likely to be involved in more
elaborate post-purchase evaluation – often by questioning the rightness of the decision: “Did I
make the right choice? Should I have gone with other brand?” This is a common reaction after
making a difficult, complex, relatively permanent decision. This type of doubt and anxiety is
referred to as post-purchase cognitive dissonance.
 Post-purchase
Dissonance Dissatisfaction

Elaborate Repeat Purchase

Purchase Product Use Disposition
Evaluation Motivation

(Elaborate Post-purchase Evaluation)

Seven Decision-Making Strategies

What this all led to was the development and exploration of a series of useful consumer decision-
making strategies that can be exploited by marketers. For each product,
marketers need to understand the specific decision-making strategy utilized by each consumer
segment acquiring that product. If this is done, marketers can position their product in such a
manner that the decision-making strategy leads consumers to select their product.

The first two strategies are called compensatory strategies. In these strategies, consumers allow
a higher value of one attribute to compensate for a lesser value of another attribute. For example,
if a consumer is looking at automobiles, a high value in gas mileage might compensate for a
lower value in seating space. The attributes might have equal weight (EQUAL WEIGHT
STRATEGY) or have different weights for the attributes (WEIGHTED ADDITIVE
STRATEGY).
An example of the latter might be to place twice as much importance on gas mileage than seating
space.

The next three strategies are called non compensatory strategies. In In these strategies, each
attribute of a specific product is evaluated without respect to the other attributes, and even
though a product may have a very high value on one attribute, if it fails another attribute, it is
eliminated from consideration. From Simon, the First of these is SATISFICING, in which the
first product evaluated to meet cutoff values for all attributes, is chosen, even if it is not the best.
The second of these strategies, ELIMINATION BY ASPECTS, sets a cutoff value for the most
important attribute, and allows all competing products that meet that cutoff value to go to the
next attribute and its cutoff value. The third strategy, LEXICOGRAPHIC, evaluates the most
important attribute, and if a product is clearly superior to others, stops the decision process and
selects that product; otherwise, it continues to the next most important attribute.

The next two strategies are called partially compensatory strategies, in that strategies are
evaluated against each other in serial fashion and higher values for attributes are considered. The
first of these strategies is called MAJORITY OF CONFORMING DIMENSIONS, in which the
first two competing products are evaluated across all attributes, and the one that has higher
values across more dimensions, or attributes, is retained. This winner is then
evaluated against the next competitor, and the one that has higher values across more dimensions
is again retained.
The second partially compensatory strategy is called
FREQUENCY OF GOOD AND BAD FEATURES, in which all products are simultaneously
compared to the cutoff values for each of their relevant attributes, and the product that has the
most “good” features that exceed the cutoff values, is the winner.

INDUSTRY

ROYAL FURNISHERS

Royal furnishers are a well known furniture industry, situated on the highway
which leads to Rawalpindi in the boundaries of Gujarat in front on N.M furnishers

The industry was founded by Mirza Muhammad Akram (Chief Executive) of

Royal furnishers in April of 2008. They have made a rational decision when they
commenced that business though they have faced a lot of problems and also along
with some advantages which I observed. They make finished goods and also sell it
to the final consumers. They have got progressed within a limited passage of time
which is a remarkable performance and only because of completing homework in
the form of decision making especially rational decision making.

They have their own decision making, rational decision and perfect evaluation.

Firstly they only have an outlet to sale out the products, the products which they
did not make themselves. They buy from somewhere else and then used to sell
them to consumers. That shop was situated on railway road. Then they made a
decision to start an industry to produce their own products, so they had to take a
step and had to make a rational decision because there was a great element of risk.

In order to minimize the risk element he observed the whole market, he got all fact
and fingers, and he analyzed his business with other to get differences.

Let’s see how they followed the decision making process while
Starting that business
How they developed the decision criteria and what were
alternatives available.

CONSUMER DECISION MAKING PROCESS OF ROYAL FURNISHERS

.
1. IDENTIFYING THE PROBLEM:

In the first step, Their CEO identifies the problem that they felt the need to start the new
business because of great competition. Royal furnishers were facing problems
while facing the tough completion from the competitors like N.M furnishers,
National furnishers or Descent furnishers etc. as they were having great profit and
grabbing the whole market so in order to remain in the market Royal furnishers
had to take such step. So the first step of decision making process has built
because of Competition.

2. DEVELOPING THE DECISION CRITERIA:

In this step he developed his decision criteria on the bases of his preference which
were quality control mainly, to cover the complaints, eliminate the supplier, reduce
the cost, to compete the competitors, to have name in this industry, wanted a
beautiful building, can produce job opportunities, to enjoy best transportation,
generate huge profit, business which could handle or produce any kind of furniture
etc. These all were his requirements which his business should have fulfilled.

3. ALLOCATION OF WEIGHT:

In this step he did not have any weights to the properties of business because of
having productive advantage. In order to compare, he should have create some
alternatives. In this regard he said that there were many alternatives such as
production of sheets such as win board, chip board, hard board and Formica etc.
He also availed that step which shows that he has mad a pure rational decision
because in order to get rational decision you have to create alternatives.

4. CREATING ALTERNATIVES:
In this step he created the alternatives as many as he could have created. He had
made a rational decision just because of searching the alternatives in the market
that what type of other business are running in the market related to this furniture
field. So he found that some owners were producing sheets such as win board, chip
board, hard board and Formica which is used to make T.V trolleys and that is also
related to furniture industry

5. ANALYZING THE ALTERNATIVES:

In this step, He collected all the facts and figures about the risks, cost, and lack of
experience. He realized that he is clearly lack of experience in that type of business
and there may be great risk because of lack of knowledge and also there was great
amount of money needed. All these things and his requirements gave him an
analytical image about this situation. He wanted to open the business on his own
place and a business which could compete the other’s business. His total
background was about producing the home furniture then he rejected that type of
alternatives. There were vast fields in home furniture like interior, bedroom,
trolleys etc. Other alternatives had no such type of related businesses. Other
businesses were needed to be given too much transportation because sheets had to
be supplied to other producers, so he had to become a supplier which he did not
want in that field. He wanted to supply the finished goods to consumers so that all
the profits could be earned. He had his own place on the G.T road and if he would
start producing sheets that he was needed a place out of the market and out of
housing areas because of pollution, all these factories generate too much pollution
in form of dirty water and smell. But furniture producing industries don’t have
such kind of drawbacks.

After analyzing all these things and comparing all the alternatives he thought
furniture industry would be the right choice.

6. SELECTING THE ALTERNATIVES:

He selected that business because he analyzes all the alternatives and he realized
that furniture industry have vast scope and more advantages and also more
profitability because of more opportunities. So he selected and decided to
commence Royal Furnishers.
 7. IMPLEMENTAION:

He commenced his business and started producing things and

Selling the products in their outlet.

8. EVALUATION:

He evaluated his business and of course only 1 year has passed when they started
their business. According to him his business is running in healthy profit and he is
having many opportunities such as supplying semi finished goods to the outlets
and they are availing all those opportunities. He said that decision making is a key
factor in the success or failure in any organization if you make a rational decision
by analyzing and having complete knowledge about existing alternatives and
opportunities. He said that I have almost succeeded to give tough competition to
others. He said although there was a great element of risk when I started business
but I have covered by making small plans which created by decision making.
Although there are some weaknesses are being faced by us but that just because of
young organization, with the passage of time will be converted in to opportunities.
In the end he said an organization can achieve all targets by making rational
decision making process and a firm should follow this process in every plan or
solving a problem.
 CONCLUSION

After analyzes this project I have found that this study provides many hints
about the rules that could be given to consumers in agent-based
simulations. It proposes four major problems the consumer faces. In order
to solve each of them, one or more consumer decision rules are proposed,
straightway leading to important consequences on macro level.

This study also concludes that every firm should involve decision making process
in any kind of problem or for making strategies or plans. Decision making is a key
factor it plays an anchor sheet role in the success or failure of an organization. By
adopting this method all structured and non-structured problems can be solved
without feeling ambiguity.
Rational decision making converts the threats and weaknesses of any organization
into their strengths and opportunities. Through rational decision making
opportunities can be availed otherwise will be lost.
 REFERENCES

BOOKS :- Leon Schiffman and Leslie Lazer Kanuk

SITES :-- WWW.MANAGEMENTPARADISE.COM

WWW.CONSUMERPSYCOLOGIST.COM
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