0601020 study on consumer buying behaviour
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A
PROJECT REPORT
ON
“A STUDY ON CONSUMER BUYING BEHAVIOUR
TOWARDS RESIDENTIAL PROPERTIES IN PUNE CITY”
FOR
“KUMAR BUILDERS”
BY
GUNDYAL GOPAL NAGESH
(Batch 2006-08)
UNDER THE GUIDENCE OF
PROF. MAHESH GADEKAR
SUBMITTED TO
“UNIVERSITY OF PUNE”
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF THE DEGREE OF MASTERS OF BUSINESS
ADMINISTRATION (MBA)
THROUGH
VISHWAKARMA INSTITUTE OF MANAGEMENT
PUNE-48.
1
A
PROJECT REPORT
ON
“A STUDY ON CONSUMER BUYING BEHAVIOUR
TOWARDS RESIDENTIAL PROPERTIES IN PUNE CITY”
FOR
“KUMAR BUILDERS”
BY
GUNDYAL GOPAL NAGESH
(Batch 2006-08)
UNDER THE GUIDENCE OF
PROF. MAHESH GADEKAR
SUBMITTED TO
“UNIVERSITY OF PUNE”
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF THE DEGREE OF MASTERS OF BUSINESS
ADMINISTRATION (MBA)
THROUGH
VISHWAKARMA INSTITUTE OF MANAGEMENT
PUNE-48.
2
Acknowledgement
Before we get into the thick of the things I would like to add a few heartfelt
words for the people who were the part of this project in numerous ways people
who gave unending support right from the stage the basic idea was conceived.
This dissertation from a part of my two year M.B.A programme and is in
partial fulfillment of the requirement of their in reference.
I acknowledge with sense of reverence my gratitude towards the
management of Kumar Builders. For providing me an opportunity to work as a
summer trainee in their esteem organization.
I want to give special the HR Manager and other staff of the company who
helped me to complete the project. I also thank my Director Dr. Sharad L. Joshi
and my internal guide Prof. Mahesh Gadekar for guiding me from time to time.
3
CONTENTS
Sr.No. Topic Page. No.
1 Executive Summary of Project 01-02
2 Objective Of The Study 03-06
2.1 Objectives 03
2.2 Scope Of The Study 04
2.3 Limitations 05
2.4 Need & Significance Of The Study 06
3 Company Profile 07-18
3.1 Introduction To Company 07
3.2 Branches & Offices 12
3.3 Achievements & Awards 13
3.4 Products Range & Variety 14
3.5 Organisation Staff & Designation 16
3.6 List of Competitors 18
4 Theoretical Background 19-32
5 Research Methodology 33-35
6 Data Analysis and Interpretation 36-44
7 Findings 45-46
8 Conclusion 47
9 Recommendations 48
Annexure
Bibliography
49-51
52
4
Chapter 1
Executive Summary
5
Chapter 2
Objectives of the Study
6
Chapter 3
Company Profile
7
Chapter 4
Theoretical Background
8
Chapter 5
Research Methodology
9
Chapter 6
Data Analysis and
Interpretation
10
Chapter 7
Findings
11
Chapter 8
Conclusion
12
Chapter 9
Recommendations
13
Annexure
14
Bibliography
15
1. Executive Summary
This study is related to construction industry in India. Heightened realization
on the part of all stakeholders that infrastructure would play a key role towards
pushing India’s GDP to the desirable 8 percent mark has come as a boon for India’s
construction industry.
The industry is riding a growth wave, which is evident from the financial
results posted by some of the leading contractors. However, the industry is faced with
certain challenges. The need to be price competitive, adherence to safety, quality
consciousness, adapting to technological changes, developing and using new
construction materials and having an adequately trained manpower are issues that
industry must look into and address.
"The construction sector, therefore, has to gear up fully to take on the ever-
increasing challenge."
This study was basically concern with consumer buying behaviour towards
residential properties in Pune city with reference to Kumar Builders Constructions.
The basic objective behind carrying this study was to study the property purchasing
behaviour i.e. (Residential) of different types of customer in different area in Pune
city, to study the various factors affecting the customer-buying pattern especially in
case of residential properties and to search out new prospects for Kumar Builders
Construction.
After completing this study it was found that maximum respondents are
having the resident on rental, it was also found that price & location is major factor
which are consider by the customer at the time of purchasing the residential property.
The ‘quality’ & ‘facilities’ are most considerable parameters at the time of selecting
16
residential property. It was also found that demand of the 2 & 3 BHK flats were more
to comparing other types of residential properties.
After going through this study I would recommend Kumar Builders that they
should try to decrease Five star amenities with a view to cut down the property prices
and there by attracting the middle class, and also actively participate and organize
property exhibition, trade shows, hoardings, etc. to create awareness in the market.
They should reduce the maintenance charges and should concentrate on CRM
activities, such as loyalty to create strong good will and gain new customer.
17
2.1 OBJECTIVES
To study the property purchasing behaviour i.e. (Residential) of different
types of customer in different area in Pune city.
To study the various factors affecting the customer-buying pattern
especially in case of Residential properties.
To find the expectations & needs of customers from Kumar Builders
Constructions.
To find the opinion of the customers with regard to various schemes
available or schemes offered by Kumar Builders constructions.
To find out the near competitors for Kumar Builders Constructions.
To find out the period in which the customers are more willing to purchase
Residential properties.
To search out new prospects for Kumar Builders Construction.
18
2.2 SCOPE
This study will be beneficial to Kumar Builders Constructions to know about
customers buying behaviour towards Residential properties in Pune city. The
company can come to know various factors affecting the customers’ properties buying
behaviour.
Company comes to know about customers expectations & need for future
properties purchases. The sample size taken for this project is 100 Respondents.
Hence, this market study will provide information to Company, and
Customers.
19
2.3 LIMITATIONS
1) The survey was restricted to selected areas in Pune City only.
2) The time duration of this survey was 50 days only.
3) Rainy season was main hurdle for this survey.
4) The response from the respondents was fair enough but not up to the mark or
good enough.
5) This project was only restricted to the residential properties of KBC & not
commercials & others.
6) The survey area were too far as the city is big enough which caused many
transportation problem.
20
2.4 NEED & SIGNIFICANCE
The study conducted is Pune city reflects the market position of Kumar
Builders Residential Properties. It gives us the details of various factors of buying
behavior of customers. The study enables the company to prepare marketing strategy
and plan accordingly, so as to capture a greater market share& the services provided
by the company. It foresight the future requirement of the market and thus helps the
manufacturer to face the future completion in a fully prepared way.
Thus it helps the company to have a good brand image and stepping toward
success.
21
3.1 INTRODUCTION TO COMPANY
"Kumar Group" established on 15th August, 1966 by the Late Shri. K. H.
Oswal, a first generation entrepreneur, with a vision to enter into a core sector
business, housing construction, which had an immense potential was the obvious
choice at that time.
In more than last 40 years, the Organization has grown from strength to
strength striving hard to transform that vision into reality. Today the company's name
has become synonymous with the quality Construction business in Pune.
An ISO 9001 : 2000 & 14001:2004 Company DET NORSKE VERITAS
QUALITY SYSTEM CERTIFICATE (DNV) has awarded an ISO 9001: 2000
Certificate for Quality Management System Standards maintained by the company for
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design, development, construction & marketing of Residential and Commercial
complexes.
Kumar Builders has become synonymous with quality construction in Pune.
The company is known for maintaining international quality construction standards
and also for its ethics, transparency, reliability, professionalism and reflexivity.
The Kumar Builders Institution boasts of a concrete record of more than 100
completed projects, over 100 Lakhs Sq.Ft. completed construction and 13,000
satisfied customers. The 30 ongoing residential and commercial projects and
successful diversification into corporate ventures bear testimony to the success story
of Kumar Builders.
Quality Policy:
Kumar Builders are committed to design, develop, construct and market
Residential, Commercial complexes and all such types of shelters, which shall meet
customer need consistently. We shall further strive to enhance the interest of our
partners, employees, suppliers & society.
Quality Objectives:
1. Demonstrate commitment and compliance to the Quality Management
System.
2. Improve the competence of employees by continuous training in the areas in
which they work.
3. To be a market leader by enhancing the customer satisfaction.
4. To create a customer focused organization.
Aims:
"Quality is primary" to Kumar Builders. All systems and procedures are
formulated to achieve the "Quality Objective". Total quality principles are adopted in
23
selection of the material, implementation of the project, and even after the project is
handed over. The Group is in the process of implementing 'Total Quality
Management' in all the aspects of its business.
Values:
Honor and respect those who are experts in their fields, those who are wise,
knowledgeable and insightful. Project the eminent & nurture the learned.
Be humble and grateful for any gesture, however small
With plentiful resources, guard against mismanagement and waste.
Do not use the force but work through. Conciliation, appreciation and
inspiration.
Maintain your position through growth and expansion, which requires effort.
Practice five strategies of action: Alliance, Patience, Optimum Utilization of
Resources, Nurturing of human assets and Aggressiveness.
Plan for the acquisition of wealth with the eyes of crane, employ a variety of
postures like peacock, strike with the ferocity of a boar and display the velour
of a lion.
Offer your gratitude to God.
Human Resources:
Kumar Builders is professionally managed and a significant force in an
intensely competitive market. This is because we treat our employees with respect and
dignity. We believe the growth of the Group is dependant on the growth of our
people. They find an independence to chart their own course, an openness to new
ideas, efficiency in implementation and an enormous professional satisfaction. We
have men of mission who can face challenging opportunities with finesse and
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purpose. The open door policy and informal and vibrant atmosphere is an
achievement in itself.
Technology:
In the context of technological advances, the Kumar Builders is in the
forefront in implementing State-Of-The-Art Technology with the latest systems /
Networking techniques. These assists management to access information and establish
proper checks and controls over the business transactions. Continuous technological
up gradation helps the Group keep up with time.
Social Obligation:
The group believes in repaying its debt to society and does so in many
different ways. After realizing the grave need for shelter it has initiated the task of
development of slums. Various projects for beautification, Water Fountains, Schools,
and Developments of Gardens, large roadside plantations, drinking water and public
toilets facilities have been taken up. On a more macro level, the group has contributed
its mite towards promoting sports development, besides lending a helping hand to
many charitable institutions.
Slum development
Drinking Water program
Helping in building better public toilet facility
Environment cleanliness and beautification
Creating gardens
Sports
Schools and Hospitals
Tree Plantations.
25
After Sales:
Kumar Builders strive hard and are committed to provide all such type of
services related to pre & post booking activities in order to enhance customer
satisfaction.
We assist all the esteemed customers to avail loan, help them in all type of
correspondences required an ensure them to handover timely possession.
It is our endeavor to sort out all the complaints / queries before and after sales
to achieve maximum customer satisfaction.
Financial Assistance:
ICICI Bank
Standard Charted Bank
26
3.2 BRANCHES & OFFICES
Pune Head Office:
Kumar Capital, 2nd Floor,
2413,East Street, Camp,
Pune, India - 411 001.
Tel. : +91 (020) 40006000 /1/2/3, 26350065.
Fax : +91 (020) 26330584.
E-mail : [email protected]
Mumbai Branch Office:
Office No. 7, 1st Floor,
Ali Chambers, Nagindas Master Road
Fort, Mumbai - 400 023
Tel. : +91 (022) 66378480, 66378481.
Fax : +91 (022) 66378482.
E-mail : [email protected]
Bangalaru Branch Office:
10/12, Palace Road,
13th Main, Vasant Nagar
Bangalaru - 560 052
Tel. : +91 (080) 2235 6822.
Telefax : +91 (080) 2235 6855.
E-mail : [email protected]
27
3.3 Achievements & Awards
Kumar Builders receives srishti green cube award from commerce minister
Kamal Nath in Delhi.The Srishti Green Cube Awards was instituted for “Good
Green Governance (G3)”.
Kumar Builders were the first Construction Company in India to obtain an
ISO 14001:2004 Environment Certification.
Kumar Builders bagged the award on the basis of the social activities and their
concern for preservation of the environment, which is seen through the
implementation of extensive programmes in the following major areas,
namely:
Solid Waste Management
Rainwater Harvesting
Solar Energy
Reduction of Dust, Noise And Water Pollution And
Expanding the Green Belt.
28
3.4 PRODUCTS RANGE & VARIETY
Residential Projects
Commercial Projects
Multiplex / Retail Projects
IT / BTS Projects
Investment Opportunities
Future Projects
Completed Projects
29
Kumars Residential Projects
Kumar Meadows Kumar Kruti Buena Vista
Windsor Park Kumar Puram Sophronia
Kumar City Laxmi Vilas Hillscape
The Orion Residency Kumar Surkasha Kumar Dhruv
Kumar Sahawas Kubera Sankul Kumar Shantiniketan
Kubera Vihar Kumar Sansar i-Life
30
3.5 ORGANISATION STAFF & DESIGNATION
No. Name Designation Department
Lalitkumar Jain Chairman & MD
Kruti Jain Executive Director
1 Sameer Palshikar Media Manager Advertising
2 Yogesh BhaveH.O.D. - Accounts
& FinanceAccounts &
Finance
3 Girish Mande H.O.D. BankingBanking & Payments
4 B.R. GulatiH.O.D. –
AdministrationAdministration
5 Reena Manjrekar H.O.D. - C.R.O. C.R.O.
6 Surender Khunekari Sr. Executive - EDP E.D.P.
7 Sheetal JoshiCompanySecretory
C.S.
8 K.B. ShivankhedeChief Technical
CoordinatorConstruction /
Technical
9 S. Premnath GM - TechnicalConstruction /
Technical
10 Anil Nemavarkar Project Co-ordinatorConstruction /
Technical
11 Ritesh OswalH.O.D. –
Corporate MarketingCorporate Sales &
Mkt.
12 Vinay NimbalkarH.O.D.
ElectricalElectrical
13 D.V. GodboleH.O.D. -
HorticultureHorticulture /
Landscape
14 Chandrahas Bollabattin Sr. Executive - HR H.R.
15 RAHUL BOKILManagement
RepresentativeI.S.O.
16 Viresh Parekh Coordinator Land / Legal
17 B.H. Tingre H.O.D. - Legal Legal
31
18 Neelima Gohad H.O.D. - Legal Legal
19 Brig. Ramesh HasijaH.O.D. -
MaintenanceMaintenance
20 Vijay Oswal G.M. - Operations Operations
21 Anil SuratwalaG.M. –
Township Developments
Project Planning & Township
Developments
22 D.S. ThoratH.O.D. –
Public RelationsPublic Relations
23 Rupam SinghSr. Manager –
Public RelationsPublic Relations
24 Abhay Deshpande H.O.D. - Purchase Purchase
25 Niranjan BhatkulkarH.O.D. –
Quantity AnalysisQuantity Analysis
26 Ravindra D. PatilH.O.D. –
Quality AssuranceQyality Assurance
27 Rajendra Bhagat Sales Manager Sales & Mkt.
28 Anil Deshpande Security Incharge Security
29 Mohan Tak C.E.O. - CLUBSymphony /
Conniseur Club
30 Rajashree SwamiSystem &
Procedure ManagerSystems & Procedure
32
3.6 LIST OF COMPETITORS
Mantri Builders
Fergusson College Road
(Mantri House) Shop # 929,
Deccan Gymkhana,
Pune 411004Phone: (20) 25661040
Bramha Builders
205/251, M.G. Road
Parvati,
Pune 411009
Phone: (20) 26330052
Panchshil Real Estate Consultant
Bund Garden Road
(Konar Estate)
Pune H.O.,
Pune 411001Phone: (20) 26127366
Rohan Builders (I) Private Limited
813, Bhandarkar Road
(Pradeep Chambers)
Deccan Gymkhana,
Pune 411004Phone: (20) 25674413
Paranjape Schemes Constructions
Anand Colony, Erandwane
(PSC House)
Deccan Gymkhana,
Pune 411004Phone: (20) 30223344
Nyati Builders Private Limited
Kalyani Nagar
(Nyati Commerce House)
Yerwada,
Pune 411006Phone: (20) 26686123
D.S. Kulkarni Developers Limited
1187/60, Jangali Maharaj Road
(DSK House)
Shivajinagar H.O.,
Pune 411005Phone: (20) 56047100
K Raheja Private Ltd.,
Survey No. 144 & 145,
Samrat Ashok Path, Off. Airport Road,
Yerwada, Pune – 411 006
Tel: +91 020 26112859
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4. THEORETICAL BACKGROUND OF BUYING BEHAVIORS
Definition of Buying Behaviour:
Buying Behavior is the decision processes and acts of people involved in
buying and using products.
The dynamic interaction of affect and cognition, behaviour, and the
environment by which human beings conduct the exchange aspects of their lives
Meaning of Consumer Behaviour:
Consumer behaviour can be looked upon as a study of how individuals make
decisions on how to spend their available resources like time, money and effort on
various consumption-related items.
Human beings are greatly influenced in their buying actions by various factors
like opinions of others, marketing stimuli like product, advertising, packaging and
product appearance
Scope of Consumer Buying Behaviour
Why do consumers buy a particular product/service brand?
How do they buy them?
Where do they buy these products?
How often do they buy them?
When do they buy them?
What factors influence the decision making process of the consumers?
The buying process involves the user, influencer, decider, and the buyer
34
The process is greatly affected by selective information received by a
consumer
It is very important to understand what and how much information is
required by the consumer to help him evaluate the products and services
As such understanding why a consumer finally buys a product is very
complex
Importance Of Consumer Behaviour
Ever increasing intensity of competition
More aggressive competitors emerging with greater frequency
Changing bases of competition
Geographic sources of competition are becoming wider
Niche attacks are becoming frequent
Pace of innovation is rapid
Price competition becoming more aggressive
Product differentiation is declining
Why Focus On Consumer Behaviour
Profit making through customer satisfaction
Dramatic increase in the quality of consumer and
marketing research
Development of consumer behaviour research
Shifting from the mass marketing concept to individual
marketing concept.
Characteristics Of Consumer Behaviour
Consumer behaviour is dynamic:
35
The feelings, thinking, perceptions, and actions
of the consumers and the society at large keep changing frequently.
Strategies that work today may not work
tomorrow.
The product life cycles are becoming shorter.
Benefits of Consumer Behaviour
Stay loyal for a long time
Buy new products and upgrade existing ones
Talk favourably about the firm and its products
Pay less attention to competing brands
Offer product/service ideas to the firm
Are cost effective
Approaches To Consumer Behaviour
Managerial:
Micro and cognitive in nature
Emphasizes on attitudes, perceptions, lifestyle and demographic
characteristics
Environmental effects-reference groups, family and culture
Risk of this approach is overemphasis on rationality of a consumer and
overlooks
the dynamics of environmental factors independent of the individual
Tends to focus more on purchase than on consumption
Holistic:
More macro in approach
36
Tends to focus more on consumption experience than on purchasing
process
Stresses the broader, culturally derived context of consumption
Emphasizes on environmental context of the consumer’s actions
This approach may not be actionable and all decisions are not rational.
Need To Understand Consumer Buying Behaviour:
Why consumers make the purchases that they make?
What factors influence consumer purchases?
The changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the
ultimate consumer. A firm needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a
great impact on the firms success.
The marketing concept stresses that a firm should create
a Marketing Mix (MM) that satisfies (gives utility to) customers,
therefore need to analyze the what, where, when and how
consumers buy.
Marketers can better predict how consumers will
respond to marketing strategies.
Stages of Consumer Buying Process:
Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes lead to a
purchase. All consumer decisions do not always include all 6 stages, determined by
the degree of complexity.
The 6 stages are:
37
1. Problem Recognition(awareness of need)--difference between the desired
state and the actual condition. Deficit in assortment of products. Hunger--
Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know
you were deficient? I.E., see a commercial for a new pair of shoes, stimulates
your recognition that you need a new pair of shoes.
2. Information search--
Internal search, memory.
External search if you need more information. Friends
and relatives (word of mouth). Marketer dominated sources;
comparison shopping; public sources etc.
A successful information search leaves a buyer with possible alternatives, the
evoked set. Hungry, want to go out and eat, evoked set is
Chinese food
Indian food
Burger king
Klondike Kates etc
3. Evaluation of Alternatives--need to establish criteria for evaluation, features
the buyer wants or does not want. Rank/weight alternatives or resume search.
May decide that you want to eat something spicy, indian gets highest rank etc.
If not satisfied with your choice then return to the search phase. Can you think
of another restaurant? Look in the yellow pages etc. Information from
different sources may be treated differently. Marketers try to influence by
"framing" alternatives.
38
4. Purchase decision--Choose buying alternative, includes product, package,
store, method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product
availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.
Cognitive Dissonance, have you made the right decision. This can be reduced
by warranties, after sales communication etc.
After eating an indian meal, may think that really you wanted a chinese meal
instead.
Types Of Consumer Buying Behaviour:
Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of
interest in a product in a particular situation.
Buyers level of involvement determines why he/she is motivated to seek
information about a certain products and brands but virtually ignores
others.
High involvement purchases--Honda Motorbike, high priced goods, products visible
to others, and the higher the risk the higher the involvement. Types of risk:
Personal risk
Social risk
Economic risk
The four type of consumer buying behavior are:
Routine Response/Programmed Behavior--buying low involvement
frequently purchased low cost items; need very little search and decision
39
effort; purchased almost automatically. Examples include soft drinks,
snack foods, milk etc.
Limited Decision Making--buying product occasionally. When you
need to obtain information about unfamiliar brand in a familiar product
category, perhaps. Requires a moderate amount of time for information
gathering. Examples include Clothes--know product class but not the
brand.
Extensive Decision Making/Complex high involvement,
unfamiliar, expensive and/or infrequently bought products. High degree of
economic/performance/psychological risk. Examples include cars, homes,
computers, education. Spend a lot of time seeking information and
deciding.
Information from the companies MM; friends and relatives, store
personnel etc. Go through all six stages of the buying process.
Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior.
Product can shift from one category to the next.
For example:
Going out for dinner for one person may be extensive decision making (for someone
that does not go out often at all), but limited decision making for someone else. The
reason for the dinner, whether it is an anniversary celebration, or a meal with a couple
of friends will also determine the extent of the decision making.
Categories That Effect The Consumer Buying Decision Process
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A consumer, making a purchase decision will be affected by the following
three factors:
1. Personal
2. Psychological
3. Social
The marketer must be aware of these factors in order to develop an appropriate MM
for its target market.
1. Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making. Young people purchase
things for different reasons than older people.
2. Psychological factors
Psychological factors include:
Motives--
A motive is an internal energizing force that orients a person's
activities toward satisfying a need or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can identify
motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
o Physiological
o Safety
o Love and Belonging
o Esteem
o Self Actualization
41
Need to determine what level of the hierarchy the consumers are at to
determine what motivates their purchases.
Perception--
What do you see? Perception is the process of selecting, organizing
and interpreting information inputs to produce meaning. IE we chose what
info we pay attention to, organize it and interpret it.
Information inputs are the sensations received through sight, taste, hearing,
smell and touch.
Selective Exposure-select inputs to be exposed to our awareness. More likely
if it is linked to an event, satisfies current needs, intensity of input changes.
Selective Distortion-Changing/twisting current received information,
inconsistent with beliefs.
Advertisers that use comparative advertisements, have to be very careful that
consumers do not distort the facts and perceive that the advertisement was for
the competitor.
Selective Retention-Remember inputs that support beliefs, forgets those that
don't.
Ability and Knowledge--
Need to understand individual’s capacity to learn. Learning, changes in
a person's behavior caused by information and experience. Therefore to
change consumers' behavior about your product, need to give them new
information re: product...free sample etc.
Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than those
who have knowledge of a product.
42
Learning is the process through which a relatively permanent change in
behavior results from the consequences of past behavior.
Attitudes--
Knowledge and positive and negative feelings about an object or
activity-maybe tangible or intangible, living or non- living.....Drive
perceptions Individual learns attitudes through experience and interaction with
other people.
Consumer attitudes toward a firm and its products greatly influence the
success or failure of the firm's marketing strategy.
Attitudes and attitude change are influenced by consumers personality
and lifestyle.
Consumers screen information that conflicts with their attitudes.
Distort information to make it consistent and selectively retain information
that reinforces our attitudes. IE brand loyalty.
There is a difference between attitude and intention to buy (ability to
buy).
Personality--
All the internal traits and behaviors that make a person unique,
uniqueness arrives from a person's heredity and personal experience.
Examples include:
Work holism
Compulsiveness
Self confidence
Friendliness
Adaptability
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Ambitiousness
Dogmatism
Authoritarianism
Introversion
Extroversion
Aggressiveness
Competitiveness.
Traits effect the way people behave. Marketers try to match the store image to
the perceived image of their customers.
There is a weak association between personality and Buying Behavior; this
may be due to unreliable measures.
Lifestyles--
Recent US trends in lifestyles are a shift towards personal
independence and individualism and a preference for a healthy, natural
lifestyle. Lifestyles are the consistent patterns people follow in their lives.
3. Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders,
person's family, reference groups, social class and culture.
Opinion leaders--
Spokespeople etc. Marketers try to attract opinion leaders...they actually use (p
y) spokespeople to market their products. Michael Jordon (Nike, McDonalds,
Gatorade etc.) Can be risky...Michael Jackson...OJ Simpson...Chevy Chase
Roles and Family Influences--
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Role...things you should do based on the expectations of you from your
position within a group.
People have many roles. Husband, father, employer/ee. Individuals
role are continuing to change therefore marketers must continue to update
information.
Family is the most basic group a person belongs to. Marketers must
understand:
that many family decisions are made by the family unit
consumer behavior starts in the family unit
family roles and preferences are the model for children's future family
(can reject/alter/etc)
family buying decisions are a mixture of family interactions and
individual decision making
Family acts an interpreter of social and cultural values for the
individual.
The Family life cycle: families go through stages; each stage creates different
consumer demands:
Bachelor stage.
newly married, young, no children...me
full nest I, youngest child under 6
full nest II, youngest child 6 or over
full nest III, older married couples with dependant children
empty nest I, older married couples with no children living with them,
head in labor force
45
empty nest II, older married couples, no children living at home, head
retired
solitary survivor, in labor force
solitary survivor, retired
Modernized life cycle includes divorced and no children.
Reference Groups--
Individual identifies with the group to the extent that he takes on many
of the values, attitudes or behaviors of the group members.
Families, friends, sororities, civic and professional organizations. Any group
that has a positive or negative influence on a persons attitude and behavior.
Membership groups (belong to)
Affinity marketing is focused on the desires of consumers that belong to
reference groups. Marketers get the groups to approve the product and
communicate that approval to its members. Credit Cards etc.
Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to)
Social Class—
An open group of individuals who have similar social rank. US is not a
classless society. US criteria; occupation, education, income, wealth, race,
ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class
Americans prefer luxury cars Mercedes.
Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic
names.
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Lower-upper class, 1.2%, newer social elite, from current professionals
and corporate elite
Upper-middle class, 12.5%, college graduates, managers and
professionals
Middle Americans-middle class, 32%, average pay white collar
workers and blue collar friends
Working class, 38%, average pay blue collar workers
Lower Americans-lower class, 9%, working, not on welfare
Lower-lower class, 7%, on welfare
Social class determines to some extent, the types, quality, quantity of products that a
person buys or uses. Lower class people tend to stay close to home when shopping, do
not engage in much pre-purchase information gathering. Stores project definite class
images. Family, reference groups and social classes are all social influences on
consumer behavior. All operate within a larger culture.
Culture and Sub-culture--
Culture refers to the set of values, ideas, and attitudes that are accepted
by a homogenous group of people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture
determines what people wear, eat, reside and travel. Cultural values in the US
are good health, education, individualism and freedom. In american culture
time scarcity is a growing problem. IE change in meals. Big impact on
international marketing.
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5. RESEARCH METHODOLOGY
What is Research?
The following eight characteristics of research will serve us well in defining meaning
of research.
Eight characteristics of research:
1. Research originates with a question or a problem.
2. Research requires a clear articulation of a goal.
3. Research follows a specific plan of procedure.
4. Research usually divides the principal problem into more manageable sub-
problems.
5. Research is guided by the specific research problem, question, or hypothesis.
6. Research accepts certain critical assumptions. These assumptions are
underlying theories or ideas about how the world works.
7. Research requires the collection and interpretation of data in attempting to
resolve the problem that initiated the research.
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8. Research is, by its nature, cyclical; or more exactly, spiral or helical.
This project is concern with Survey Research:
Survey research is one of the most important areas of measurement in applied
social research. The broad area of survey research encompasses any measurement
procedures that involve asking questions of respondents. A "survey" can be anything
form a short paper-and-pencil feedback form to an intensive one-on-one in-depth
interview.
Survey Method: -
Survey research method is technique of investigation by direct
observation/respondent or by systematic gathering of data from population.
Advantages of Survey Method:-
1) Inferences based on facts.
2) Personal Contracts with respondents.
3) Instrument of social development.
4) Greater objectivity.
5) More reliability of the data.
Questionnaire: -
Questionnaire is used to collect information from respondent. In this study
questionnaire content both close ended & open-ended questionnaire.
Sample size is100 respondents which are further calculated in percentage and
shown graphically in various charts.
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Respondents as sample unit.
Non-Random Judgment Sampling
Non-probability sampling is that procedure which does not afford any basis
for estimating the probability that each item in the population has of being included in
the sample.
For this project Primary as well as Secondary data is use.
Primary Data:
Information collected for first time is called as Primary Data & is in the
original character. Primary data collected either through observation or through direct
communication with respondents in one form or another or through personal
interviews.
Primary data is collected through the survey method with help of
questionnaire.
Secondary Data:
Secondary data means data which already been collected and analyzed by someone
else. Secondary data collected from books, Internet & magazines.
Research Design:-
50
Research design is the guideline, which help the researcher to get the required
information from the respondents within the specific time limit,
6. DATA ANALYSIS
1) Table showing present type of Residential Ownership.
Type No. of Respondents % of Respondents
Ownership 36 36%
On Rental 49 49%
Others 15 15%
Total 100 100%
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Residential Ownership
36%
49%
15%
Ownership
On Rental
Others
The above table shows that, maximum no. of respondents stays on rental basis
i.e.49%, 36% of the respondents have their ownership on residence and 15% of
respondents are in others category, which include residence on lease or staying at
relative.
2) Table showing areas preferred to purchase residential properties.
Area No. of Respondents % of Respondents
Peth Area 11 11%
Kalyani Nagar 19 !9 %
Hadapsar 23 23%
Kondwa 26 26%
Katraj 07 07%
Baner 05 05%
Pashan 09 09%
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Total 100 100%
Preffered area for Property Purchase
11%
19%
23%26%
7%5% 9% Peth Area
Kalyani Nagar
Hadapsar
Kondwa
Katraj
Baner
Pashan
The above table shows that maximum no. of respondents i..e.26% prefer Kondwa
area, whereas 23% of respondents preferred Hadapsar area, while 19% of respondents
prefer Kalyani Nagar area, whereas 09% of respondents preferred Pashan area while
07% of respondents preferred Katraj area and 05% of respondents preferred Baner
area for purchasing residential properties.
3) Table Showing Factors taken into consideration while purchasing Residential
properties.
Factors No. of Respondents % of Respondents
Location 28 28%
Price 39 39%
Transportation Facility 16 16%
Accessibility to Market 07 07%
Others 10 10%
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Total 100 100%
Factors while Purchasing Resendential Properties
28%
39%
16%
7%10%
Location Price
Transportation Facility Accessibility to Market
Others
The above table shows that maximum no. of respondents i.e. 39% consider Price,
whereas 28% consider location while 16% consider transportation facility whereas
10% consider other factors like Vastushastra, Water availability etc. and 07% of
respondents consider accessibility to market as important factor for purchasing
residential properties.
4) Table showing Parameters considers while selecting residential properties.
Parameters No. of Respondents
Brand Name 53
Quality 62
Space (Sq. ft.) 49
Facilities 73
Interior 30
Schemes 57
54
Parameters considers while selecting residential properties
5362
49
73
30
57
01020304050607080
Brand
Nam
e
Qua
lity
Space
(Sq.
ft.)
Facilit
ies
Inte
rior
Schem
es
Parameters
No
. o
f R
esp
on
den
ts
Brand NameQualitySpace (Sq. ft.) FacilitiesInteriorSchemes
The above table shows that maximum no. of respondents i.e. 73 consider Facilities as
parameter while 62 respondents consider Quality, whereas 57 of respondents consider
Schemes whereas 53 respondents consider Brand name while 49 respondents consider
Space (Sq. ft.) and 30 respondents consider Interiors as the parameters while selecting
residential properties.
5) Table showing sources of Information for respondents while Property
Purchasing.
Sources No. of Respondents % of Respondents
Hoardings 13 13%
Newspapers 17 17%
Agents/Consultants 33 33%
Relatives/Friends 28 28%
Others 09 09%
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Total 100 100%
Various Sources of Information for Property Purchasing
13%
17%
33%
9%28%
Hoardings
Newspapers
Agents/ConsultantsRelatives/Friends
Others
Above table shows that 33% of respondents get their information from Agents
/Consultants, where as 28% of respondents get information from Relatives/ Friends
while 17% of respondents get information from Newspapers whereas 13% of
respondents get information from Hoardings and 09% of respondents get their
information through Other Sources like Local News Channel,Radio,Internet etc. for
Purchasing Residential Properties.
6) Table showing awareness in respondents about various schemes offered by
KBC.
Awareness No. of Respondents % of Respondents
Yes 67 67%
No 33 33%
Total 100 100%
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Awareness of Respondents to Various Schemes
67%
33%
Yes
No
The above table shows that maximum no. of respondents i.e. 67% were aware about
the various schemes offered by KBC whereas 33% of respondents were not aware
about various schemes offered by KBC.
7) Table showing duration of the year when normally respondents like to
purchases residential properties.
Month No. of Respondents % of Respondents
Jan to Apr 35 35%
May to Aug 13 13%
Sept to Dec 52 52%
Total 100 100%
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Duration of Purchasing Resendential Properties
13%
35%
52%
Jan to Apr
May to Aug
Sept to Dec
Above table shows that maximum no. of respondents i.e. 52% would prefer Sept to
Dec as the duration where as 35% respondents would prefer Jan to Apr while 13% of
respondents prefer May to Aug as the duration of the year where they would like to
purchase residential properties.
8) Table showing type of Residential property respondents would like Purchase.
Type No. of Respondents % of Respondents
1 BHK Flat 18 18%
2 BHK Flat 48 48%
3 BHK Flat 24 24%
Bungalow/Row house 04 04%
Others 06 06%
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Total 100 100 %
Type of Resedential Property
18%
48%
4% 6%24%
1 BHK Flat
2 BHK Flat
3 BHK Flat
Bungalow/RowhouseOthers
Above table shows that maximum no. of respondents that is 48% would like to
purchase 2 BHK Flat, whereas 24% respondents prefer 3 BHK Flat, while 18%
respondents prefer 1BHK Flat whereas 4% of respondents prefer Bungalow/Row
house and 06% respondents prefer others which include Duplex, Terrace Flat,
Attached Flat etc. for purchases of residential property.
9) Table showing mode of purchases of residential property preferred by
respondents.
Mode No. of Respondents % of Respondents
Home Loans 57 57%
Lum-sum 06 06%
Installments 33 33%
Others 04 04%
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Total 100 100%
Mode of Purchase
6%
33%
4%
57%
Home Loans
Lum-sum
Installments
Others
Above table shows that maximum no. of respondents i.e.57% would prefer Home
Loans whereas 33% of respondents would prefer Installments while 06% of
respondents would prefer Lum-sum and 04% of respondents prefer Others.
7. FINDINGS
1) During the time of survey, it was found that 49% respondents are having the
resident on rental, 36% respondents are having own property & 15% respondents
are having other sources such as lease, relatives & friends etc.
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2) It was found that 26% of respondents were preferred to purchase residential
property in Kondwa area, 23% of respondents in Hadapsar & 19%, 11%, 9%, 7%
people in Kalyani Nagar, Peth area, Pashan Nagar, Katraj area respectively, only
5% respondents were preferred in Baner area.
3) It was found that the price & location is major factor which consider by the
customer at the time of purchasing the residential property. Here 39%
respondents are considering the price, 28% respondents are consider location &
16% & 7% respondents are considering transportation & market facility.
4) It was found that the ‘quality’ & ‘facilities’ are most considerable parameters at
the time of selecting residential property. Brand Name & schemes are also
consider the consumer at the time of purchasing the residential property.
5) It was found that the source of information for consumers the real estate
consultant play very vital role. 33% respondents go through the consultants, 28%
respondents prefer relatives & friends, 17% go through newspapers & 22%
respondents prefer through hoarding & others sources.
6) It was found 67% respondents were aware of various schemes offered by KBC &
33% respondents were not aware. Here the most of the respondent’s opinions
about schemes of KBC’s are good.
7) In the duration of September to December the most of the respondents were like
to purchase the residential property because most of the festival are in this
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duration. Here 52% respondents preferred in September to December, 35%
respondents preferred in January to April & 13% respondents preferred in May &
August.
8) It was found that demand of the 2 & 3 BHK flats were more as comparing to
other types. 48% respondents prefer 2 BHK flat, 24% respondents prefer 3 BHK
& 18% & 4% respondents choose the 1 BHK & Bungalow respectively. Here
6% respondents go through the other type such as Duplex flat, Gallery or Terries
& 1 HK flat.
9) In the mode of payments 57% respondents go through home loans of various
banks & private financial institutes, 33% respondents go through installments,
6% respondents through lum sum amount & 4% respondents choose other mode
of payments.
10) It was found that the close competition of KBC were Vascon, Bramha Builders &
Nyati Builders which were mostly known by the respondents.
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8. CONCLUSION
It can be seen that Kumar Builders is most popular brand.
Quality is considering lot while purchasing residential property.
The Kumar Builders stands first among three top companies in Pune city.
The Buyers consider Quality and price while purchasing the residential
property.
The customer may change the Brand if the Particular brand is not available
and also because of close substitute.
Price hike is also one of the reasons for change in brand.
Adverting and other sales promotion tools have a great effect on sales of the
residential property.
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9. RECOMMENDATIONS
1. KBC should try to tap other market potentials, such as Nasik,
Kholapur, Surat Ahmedabad and 2nd tire cities.
2. KBC should try to decrease Five star amenities with a view to cut
down the property prices and there by attracting the middle class.
3. KBC should actively participate and organize property exhibition,
trade shows, hoardings, etc. to create awareness in the market.
4. KBC should organize annual customer meet to appreciate those
customer who have been with them and awarded them.
5. KBC should take mass media such as television more precisely cable
media to target local customers.
6. KBC should also concentrate more on interior decoration to compete
with other competitors.
7. KBC should reduce the maintenance charges.
8. KBC should also concentrate on CRM activities, such as loyalty to
create strong good will and gain new customer.
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ANNEXURE
Questionnaire
“A STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS
RESIDENTINAL PROPERTIES IN PUNE CITY”
WITH SPECIAL REFERENCE TO KUMAR BUILDERSS
Personal Details
NAME:-
OCCUPATION :-
GENDER:-
FAMILY SIZE :-
CONTACT :
E-MAIL:-
NO. OF EARNING MEMBERS:-
ANNUAL INCOME:
1. Do you have any plan to purchase residential property in Pune?
Yes No
2. What is your present type of property?
Ownership On rental Others
3. In which area would you prefer to purchase residential properties? Why?
Peth area Hadapsar Pashan Baner
Kalyani nagar Katraj Kondwa
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4. Which factor do you take in to consideration while purchasing residential
properties? (Choose any one)
Location Price
Transportation facility Accessibility to market
Others ___________________________________________
5. Which parameters do you take in to consideration while selecting a residential
property? (Allow to multiple choice)
Brand Name Quality
Space (sq. ft) Facilities
Interiors Schemes
6. Which other construction company / industry are you aware of other than KBC?
(Open ended)
____________________________________________
____________________________________________
7. Plz. Indicate the source of information that you consider for property purchasing?
(choose any one)
Hoarding Newspapers
Agent Relatives
Others
8. Are you aware of various schemes offered by KBC?
Yes No
If yes what is your opinion,
Very Good Good Average
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9. During which duration of the year normally would you like to purchase residential
properties?
Jan. to Apr. May to Aug. Sep. to Dec.
10. What type of residential property you would like to purchases?
1BHK Flat 2BHK Flat
3BHK Flat Bungalows/Row House
Others
11. What will be your mode of purchase of residential property?
Home Loans Lum sum
Installments Others
__________
Signature
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BIBLIOGRAPHY
Books referred
Title : - Marketing Management
Name of the Author : - Philip Kotler
Title : - Marketing Research
Name of the Author : - Thomas C Kinnear
Title : - Consumer Buying Behavior
Name of the Author : - J. Paul Peter
Title : - Research Methodology
Name of the Author : - Dr. S. Shajahan
Other sources:-
1) News Paper
2) Magazines
3) Internet websites
Webliography Referred :
a) www.google.com
b) www.marketingprofessors.com
c) www.indiatimes.com
d) www.kumarbuilders.com
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