51583140 Consumer Buying Behavior Reebok Shoes

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  • Analysis on Consumer Buying Behavior(Rbk shoes)

    Submitted By: Name: Mohit Khanna Roll no:0711471706

    Branch: BBA(gen) B

    1

  • ACKNOWLEDGEMENT

    I express my heartfelt gratitude to my industry guide Ms Neha Verma, without whose

    guidance and support the timely completion of this project would not have been possible. His

    valuable inputs at every stage of the research process charted the course towards the

    successful and timely completion

    I would also like to thank my faculty guide Mr. Vishal Gupta, who provided me with the

    necessary information and utmost co-operation during my project and acted as a constant

    source of motivation & enlightenment for me.

    I would like to acknowledge my indebtedness to Skyline team for approval and support for my

    Dissertation.

    Mohit Khanna

    2

  • CONTENTS

    1. Introduction 1

    2. Objective and Methodology 2

    3. Consumer Buying BEHAVIOR Model 4

    4. Company History 10

    5. Company Profile 15

    6. Finding and Analysis 17

    7. Recommendation 26

    8. Annexure

    Sample Questionnaire 27

    Respondents List 30

    7. Bibliography 32

    3

  • INTRODUCTION AND EXECUTIVE

    SUMMARY

    In 1958, the Foster family introduced the name REEBOK and continued to grow faster

    because of its reputation for quality and innovative designs. Reebok revolutionized sports

    shoes market in the 70s throughout the world. Today Reebok is the leading global sports

    wear brand name. They operate from Boston, Massachusetts.

    Characteristically, we have searched internet to gather more information about the company

    Reebok. The history of Reebok is very interesting. Mr. Joseph William Foster, a member of

    the local running club Bolton Primrose Harriers wanted a pair of spiked running shoes for

    jogging. The same Foster started writing the success story in 1985, when he made one sport

    shoes for himself. Foster created the first Foster running shoes and it became famous as the

    news started spreading among the athletes.

    Now after a decade, a quarter of the world's population and a fast-growing economy, India is

    rapidly turning into one of the busiest market centers in the world. Footwear market has the

    potential to provide stimulus in initiating the development of the Indian economy, which also

    affects the Indian culture and the lifestyle. Leading brands of the world see a good market

    potential in the country. But it requires a vast study of people across the world to find out

    whether a market has the potential of growth (i.e. there are consumers ready to purchase the

    product which suits their needs), and most importantly what drives them to choose a

    particular brand out of a plethora of brands which exist in the market. This study attempts to

    analyze consumers' behavior, attitudes, and buying patterns.

    4

  • OBJECTIVES

    The project was undertaken keeping the following objectives in mind:

    To study and analyze various factors affecting the buying BEHAVIOR of the

    consumer while purchasing REEBOK shoes.

    To find out the reasons of consumer buying preference of REEBOK over other

    brands

    To compare various attributes of REEBOK and other brands

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  • REASEARCH METHODOLOGY

    Research design

    Prior to undertaking this research, a review of the literature was conducted to

    Identify and develop the initial research questions and subsequent hypotheses has been

    identified. The goals of a literature review were as follows:

    To demonstrate a familiarity with a body of knowledge and establish Credibility.

    To show the path of prior research and how a current project is linked to it.

    1. To integrate and summarize what is known in the area.

    The primary focus of this research is a quantitative study. Quantitative research uses

    structured questions with predetermined responses and a large number of respondents to

    quantify the response to a particular research problem. This research quantifies consumer

    response toward the strategy, attitude change toward the brand and purchase intention.

    Data Collection Methods:The data collection methods used for quantitative research include experiments, surveys,

    content analysis and existing statistics. Given the nature of the research question, this

    requires both measurements of consumer response as well as comparison. A combination of

    the remaining two methods, survey and observation, was proposed. Surveys lend themselves to collecting data from a large group of people and then summarizing the results

    in a quantifiable form.

    Survey administration The survey instrument was self-administered and the respondents were made aware that

    participation was voluntary.

    The surveys were distributed to 84 respondent and 50 out them were taken in account on the basis of complete information being provided by respondents.

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  • CONSUMER BUYING BEHAVIOR MODEL

    Consumer decision to buy a product or a service is the result of interplay of many forces or

    stimuli. Marketing stimuli for a product includes locating target markets and segmentations of

    markets as per customer needs. The marketing and environmental stimuli enter the buyers

    mind through cultural, social, personal and psychological factors. When these factors come in

    contact with buyer, the buyers decision initiates and the marketer needs to have correctly

    read the buyers conscious/unconscious BEHAVIOR to stimulate positive response.

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  • The field of consumer behavior studies how individuals, groups and organizations select, buy,

    use and dispose of goods, services, ideas or experiences to satisfy their needs and desires.

    They may respond to influences that change their mind at the last minute. Marketing and

    environmental stimuli enter the buyers consciousness. Buyers characteristics and decision

    processes lead to certain purchase decisions.

    Consumers buying behavior is influenced by cultural, social, personal and psychological

    factors.

    Cultural factors

    Cultural factors exert the broadest and deepest influence. Culture is the fundamental

    determinant of a persons wants and behavior. Each culture consists of smaller sub cultures

    that provide more specific identification and socialization for their members.

    Subculture includes: Nationalities, religions, racial gaps & geographic regions. When subcultures grow large and affluent enough, companies often design specialized marketing

    programs to serve them. Such programs are known as diversity marketing.

    Social Class: Homogeneous & enduring divisions, hierarchically ordered, members share common values. They have many characteristics.

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    * High Low Involvement InvolvementSignificant Consumer Buying Variety-seekingDifferences BEHAVIOR BEHAVIORBetween (Computer) (Toothpaste)Brands Dissonance HabitualFor Difference Reducing BuyingBetween BEHAVIOR BEHAVIORBrands (Carpet) (Salt)

  • Those within each class tend to behave more alike than persons from two different

    social classes.

    Persons are perceived as occupying, inferior or superior positions according to social

    class.

    Social class is indicated by a cluster of variables for ex: occupation, income, wealth

    rather than a single variable.

    Individuals can move up or down the social class ladder during their lifetime.

    Social Factors

    Consumers behavior is influenced by social factors such as reference groups, family, social

    roles and statuses.

    1. Reference Groups: all groups that have a direct (membership groups) or indirect influence on attitudes or behavior. Groups having a direct influence on a person are

    called membership groups. Some membership groups are primary groups such as family, friends, neighbors with whom the person interacts informally. People also

    belong to secondary groups such as religious, professional groups, which tend to be

    more formal.

    2. People are also influenced by groups to which they don not belong to.

    Aspiration groups: are those a person hopes to join.

    Dissociate group: are those whose values or behavior an individual rejects.

    Family: It is the most important consumer buying organization in the society and family members constitute the most influential primary reference group.

    Family of orientation consists of parents & siblings. From parents, a person

    acquires towards religion, politics and a sense of personal ambition, and self-worth.

    Family of procreation consists of spouse & children. It has a more direct influence on

    everyday buying behavior.

    Role and Statuses: The persons position in each group can be defined in terms of role and status. A role consists of activities a person is expected to perform. Each role carries