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Business research report

on

factors affecting

consumers decision making before buying a

shampoo


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Table of content

Acknowledgement

Introduction

Objectives of the study

Why I choose shampoo market as the topic for

survey

Hypothesis of the study

Research methodology Findings

Analysis or interpretation

1.KMOs test

2.Bartletts test

3. Multiple regression of three variables

Limitations Conclusion

Recommendation

Annexure


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Acknowledgement

The Business Research Methodology paper, Factors AffectingConsumers Decision Making while Purchasing a shampoo is

the most important addition to the practical application of theoretical

knowledge and experience on real research aspects. This is really a

delightful experience.

It is amazing and fascinating finding that so many dependable people

around, who have given necessary guidelines and advices while

formulating this paper. Learning what determines a good employer, Iremain ever grateful to them, who all have helped to write this report. I

also extend my acknowledgement to all those, who helped me by

answering my queries pertinent to the data collection of my report.

A special debt is due to my instructor Prof. Varsha Verde, our

respected faculty for the valuable guidance in the preparation of this

report. I have been immensely benefited from her valuable guidance in

the process of understanding and preparing this report. Without her

active support, continuous encouragement, and constructive criticism,

probably it would not have been possible to write an informative and

objective report. Her active assistance in working out a framework for

the paper has helped to complete the assignment within given time.

I also acknowledge the contributions of the librarian of IBS MUMBAI for

allowing me to utilize the library facilities.


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Introduction

This research is prepared for the purpose of gaining a better

understanding on the factors influencing the consumers buyingbehaviour. The shampoo market is chosen as the field of study on

the consumers buying behaviour because everyone needs

shampoo to wash their hair so anyone could be the respondents

of my survey. The age of the respondents in this survey ranges

from 11 years and above.

This survey targeted 50 respondents and was given self-

administrated survey questionnaires to be filled up. Therespondents can either be male or female . During the period ofthe survey, it was not easy to get respondents as many of themwere not willing to reveal their personal information. There werealso respondents that are helpful and responsive in making thissurvey a success.

The approximation of systematic sampling method is used in thisresearch. All the data was collected at different times and the timeframe to gather all the data is within the period of 5 days.


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OBJECTIVES OF THE STUDY

1. To study the current Indian market for Shampoos.

2. To analyze the relationship between a specific brand

and its buying behavior.

3. To assess whether advertising is influencing the

buying behavior of the consumers.

4. To assess factors influencing the buying behavior of the

consumers

Why I Choose Shampoo Market As

The Topic of The Survey?Shampoo is chosen as the topic of this survey because shampoohad become the part of our lives. Shampoo is used to removeoils, dirt, dandruff, skin particles, environmental pollutants andother contaminant particles that gradually build up in the hair.Besides that, it is also easy to get respondents to this survey aseveryone uses shampoo and there are also an increasing number

of consumers who are very concern about their hair.


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4.0 HYPOTHESIS OF THESTUDY

The hypothesis used to test the positive or negative effect of the independent

variables on Consumers purchase decision is:

4.1 Influence of Quality

Quality is one of the prime factors that affect consumers in a purchase decision.

Consumers today dont generally buy just a brand or product rather, he/she

purchase all the benefit associated with it. And quality is the totality of the

features that the product offers. If the product is associated with highperceived

quality, consumers trust a brand and the brands preference is also get

augmented. We tried to measure whether quality of shirts are significant to the

consumers or not. In our study, our first hypothesis is about the influence of

quality. And the hypothesis is:

H1: Qual i ty of the shampoo has a di rect posi t ive inf luence on

cons umers purch ase decis ion.

4.2 Influence of Brand Image

Often brand images reinforce the consumers to make a purchase decision. Brand

value is one of the important factors today. Top brand names have a dominating

and significant influence in evaluating a brand. In case of purchasing a shampoo, I

tried to appraise the effect of brand image. In my study, the second hypothesis is

about the influence of brand image and the hypothesis is:


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H2: If consumers perception of brand image of the shampoo is morefavorable, their evaluat ion of a shamp oo is pos i t ive.

4.3 Influence of FashionFashion references to anything that is the current trend in look and dress up of a

person. The pace of change accelerated considerably in the following century, and

women and men's fashion, especially in the dressing and adorning of the hair,

became equally complex and changing. The current fashion, celebrity influences

lure the consumers to purchase fashionable shampoo. I tried to identify the

relative importance of fashion for consumers in purchasing a shampoo. So, the

third hypothesis is about the influence of fashion. And the hypothesis is:

H3: Consum ers are inf luenced by current fashion wh i le purch asing a

shampoo.

4.4 Influence of Availability

For the products that are not that much significant and require less consumer

involvement, consumers usually purchase those from the available sources.

Instead of going to a distant shop, they purchase from the nearest outlets. In our

study, we tried to measure whether consumers purchase shampoo that are nearly

available to them or not. So, the fourth hypothesis is about the influence of

availability. And the hypothesis is:

H4: Consum ers purchase a shampoo that is widely and conv enient ly

avai lable to them .

4.5 Influence of PriceA growing body of literature indicates that consumers do not always attend to,

know, and remember actual prices of products; instead, they encode prices in

ways that are meaningful to them (e.g., cheap versus expensive). Therefore,

perceived price is not equivalent to objective price. However, I included price in


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my study to get insight about their impact on consumers decision making. So the

fifth hypothesis is:

H5: Price (higher vs . low er) has a d irect po si t ive effect onconsumers

evaluat ion of a shampo o.

4.6 Influence of comfortability

H6: consumer purchase those shampoo which are

com fortable to their hair qual i ty .

4.7 Influence of social statusH7: Consumer buy branded shampoo as a social status

4.8 Influence of Payment

options(credit)

H8: Consumer look for credit payment option while buying ashampoo.

4.9 Influence of Discount

H9: consumer is influenced by discounts available on shampoo.

4.10 Influence of celebrity endorsement


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H10: Consumer is attracted towards those brands which are endorsedby celebrity.

4.11 Influence of varietyH11: Consumer look for different varieties of shampoo available instore.

4.12 Influence of Exchange policy

H12: Consumer is highly influenced by the exchange policy.

4.13 Influence of Color of

shampoo

H13: Consumer look for color of shampoo while purchasing

4.14 Influence of package of the

shampoo

H14: Consumer is influenced by package design of shampoo


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4.15 Influence of size of store

H15: Consumer are fascinated by size of store

4.16 Influence of accessibility

H16: Consumer chose those brands of shampoo which is accessible

4.17 Influence of Durability

H17: Consumer is influenced by durability of shampoo


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Research methodology

Keeping in view the Shampoo Market in INDIA which is very

crowded and becoming competitive day by day, we decided tostudy the current scenario of the market.

Data CollectionThe following techniques were adopted for data collection:

1. PrimaryData:

Primary data was collected through face to face interviewswhile filling up questionnaires. (50 Respondents)

2. Secondary Data:Relevant information was gathered from magazines,newspapers and project reports that formed the secondarydata.

3.Communication Approach:Face to face interviews was taken as the communication

approach since it is a better method in cases where slight probingis required.

4. QuestionnairedesignThe questionnaire used was a printed, well structuredformalized schedule to obtain and record specified andrelevant information with fair accuracy and completeness.

The questioning process was face to face interviews and the

questionnaire was designed in such a way that it could beunderstood and answered easily by the respondents. Thequestionnaire contained both close and open endedquestions.

.5.Sampling


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Samplesize

A sample size of 50 consumers was chosen,

This sample size was based upon

time and affordability approach. Sample method- Simple Random Sample

6.Data Analysis and Interpretation

Findings

From the above research the I found the fact that majority of therespondent's use shampoo only small proportion doesn't useshampoo.While purchasing the shampoos of various brands in the market

respondents gave preference to reasons for purchase are theirhair type, hair problem, price and fragrance while purchasing thesame.

In the decision making process self decision has preferred inmajority by respondents, here influence of others has given leastimportant, whereas only small proportion influenced by

Advertisement. A considerable number of the respondents areneutral about their opinion about change of the shampoo brandand some respondents prefer not to change their brand.

Analysis also shows that near about half of the respondentsshampoo

their hair 3-4 times in a week whereas second opinion ofrespondents about shampoo their hair 1-2 times in a week.Respondents prefer sachet first then 100 ml Bottle and then 250ml Bottles respectively. Majority of the respondents have seenadvertisement in T.V. and then on Radio. So far as productsatisfaction is concerned majority of the respondents are


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satisfied by the shampoo then highly satisfied and neutral sign.So far as brand loyalty is concerned respondents are very loyal totheir shampoo brand andt hey are ready to go another shop atdistance, whereas respondents are also of the opinion that they

can postpone the purchase, whereas 17% respondents are of theopinion that will buy another brand if favorite brand is notavailable.

Collection, Analysis and

Interpretation of The DataThe collected data was based on the questionnaires distributed tothe respondents. The age as one of the personal factorsinfluenced the consumers shampoo preference.When they go for chemical treatment on their hair, damage suchas split ends and dry hair will be resulted, so they are willing to


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spend more on high end shampoo to protect their hair from suchdamages instead of buying a normal range shampoo and cry overthe damage hair at the end of the day. From that, we canconclude that lifestyle does influence the consumers buying

behaviour.Asking the reason of choosing the particular brand enables theme to identify whether it was the social factor, psychological factoror promotion that influences the purchasing of the shampoo. If therespondent chooses friends recommendation, then the factorinfluences the buying behaviour is the social factor.Some consumers trust their friends recommendation when theyshare the same taste and preferences. When they see the effects

of the shampoo on their friends hair they are willing to purchasethat particular brand as it is proven good by his or her peers. Onthe other hand, if the respondent chooses gentle to hair andchemical free, then the consumer is influenced by thepsychological factor which is the consumer beliefs that theshampoo is gentle to the scalp as it is chemical free. This usuallyoccurred in the consumers mind as they belief is gentle to thescalp after they had tried the sample given by the promoters inthe supermarket or during a free hair wash during the road show.The type of shampoo used by the respondents enables me tostudy whether the product itself and the brand influences thebuying behaviour. Sometimes, the product itself also influencesthe buying behaviour when the packaging of the product is niceand the sophisticated features of the product is such as theshampoo is anti-dandruff, with ginseng extract which will reducehair fall and so on.The monthly expenses spent on the shampoo helped me to

conclude that the monthly income does influence the buyingpower of the consumer. A lifestyle with a high monthly income willinfluence the consumer to spend more on shampoo such as highrange shampoo as they tend to be more cautious about their hairwhen they dye their hair.


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Besides that, the price of the shampoo also influences the buyingbehaviour of the consumer. Some consumers are not particularabout the brands of the shampoo but they choose the shampooaccording to the price. Normally, these types of consumers will

buy a basic shampoo which the price is cheap and when there isa promotion about other higher range shampoo, they will tend tobuy it.The type promotion made on the shampoo is to ensure that theconsumers are aware of the existence of this particular brand ofshampoo. By asking this question to the respondents, theresearcher can conclude that promotion also influence the buyingbehaviour in the shampoo market.


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KMOS TEST:

KAISER MEYER OLKIN TEST is done to describe whether the size of

respondent is appropriate or not.

If KMOs significance is more than or nearer to .5 than the no. of

respondent will be appropriate.

So in our report analysis from SPSS we found that KMOs significance=.505

Here KMOs sig is nearer to .5 so we conclude that respondent size is

appropriate to take survey.

BARTLETTS TEST:BARTLETTS TEST signifies correlation between the variables, also it states

that matrix is unit or not.

BARTLETTs sig < .05, we will reject H0 (means matrix is not unit and there

is correlation between variable.

H0 : matrix is Unit(correlation is not exist between variables)

H1 : matrix is not unit(correlation between variable exist)

In our report analysis BARTLETTs test significance level =.002

So here correlation between variables is exist, hence matrix is not unit.

How many factors to be extracted?

EIGEN VALUE:Variables, whose EIGEN value is more than 1, will be extracted.

Cumulative % of variance:Variables, whose cumulative % of variance are more than 60% that will be

extracted.


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Scree plot:Scree plot is a graph with y-axis as EIGEN value and x-axis as no. of

variables.

After a sudden bend in the line of a graph respective to that variable we

will extract the variables.

A Priori Determination:We will decide extractable variables beforehand only.

So as per our report analysis from SPSS we will extract variables on the

basis of EIGEN value

From the total variance table of SPSS, variables whose EIGEN value is more

than 1 will be extracted

So in that table 5 variables are having EIGEN value more than 1, hence

factor extraction = 5

Interpretation of Scree Plot:In the scree plot, at the variable 3, there is a sudden band and so there are

5 variables which are to be extracted.

Name the factors that are extracted

There are four factors which are extracted and from each component wewill choose the variables which are above = 0 .6 variance.

FACTOR 1: Price

And so first factor consists of ONE variable which are having more than .6

variance. And the value of PRICE is .772.

FACTOR 2: FRIENDSHIP


variance. And the value of FRIENDSHIP is .781.

FACTOR 3: SHINE


variance. And the value of SHINE is .908.

FACTOR 4: ANTI-DANDRUFF


variance. And the value of ANTI-DANDRUFF is .941.


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FACTOR 5:PACKAGING


Variance.and the value of packaging is .888.

SURROGATE VALUE

Surrogate variable is the one which has highest correlation among the

variables in each factor. After considering each factor the surrogate

variable is convenience to use because it has the highest variance

correlation i.e. 0.941

Multiple Regressions of Three Variables

i.e. Age, Gender, Surrogate VariableIn our research of multiple regressions we had taken Convenience to use

variable as a surrogate variable as it has highest variance within all factors

of the TABLET.

So through SPSS software we interpret the correlation between thevariables as follow:

Annova table is used to identify whether the overall model is significant or

not. If the sig level is less than 0.05 than we will reject null hypothesis and

overall regression model is consider as significant. But in our research sig

level of annova table is 0.440 which is more than 0.05 hence we will

ACCEPT null hypothesis and overall model is significant.

Predict Y for X1 = 27 , X2 = 1(male) ?

Y = b0 + bX1 + bX2Y = 1.630 + (0.005)(27) + (0.262)(1)

Y = 2.027

As we got Y =2.027 , we can say that DESIGN


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As a surrogate variable had received a scaling of 2.027 which is AGREE for

the individuals the age group of 27 .

LIMITATIONS

The probable limitations of this study are as under :.

1. Samples were randomly selected as per convenience so erroris bound to creep in the observation.

2. The conservative attitude of the respondents was a limitingfactor in gaining information.

Conclusion

With studying all relevant aspects in detail the researcher arrivedto the conclusion that, young generation highly involved in use ofshampoos. The respondents make a self decision for purchase ,frequent use of shampoos, neutral behaviour for change ofshampoo, preferring pack size are sachets and small bottles,


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influence of media especially T.V. is playing major role inawareness, customer satisfaction contributes the majority.Shampoo users are very loyal towards the brand they are readyto walk long distance to get the brand. In addition to that, I

conclude that the types of promotion are effective in the shampoomarket.

RECOMMENDATIONS Target those people who use shampoo and trust theshampoo as their best solution for hair care. Develop quality and brand image so that by trial of your

brand leaves with a good image and then followed by usage ofbigger pack which then will be used by them.

Identify the key benefits such as hair strengthening, Missingform shampoo and makes them the USP of new brands. TheUSP could be rebuilding damaged hair, shiny and healthy hair.

Look for different problems for which people use shampoofor hair care, falling hair and dandruffs etc. And deliver thesame of high quality and at the same time positioning the brandas solution for your hair problem and which also rejuvenateyour hair, and keep your hair healthy to that target group.

The ideas, associations and images that people have of ashampoo brand determine the demand side of the brand equity

equation. There are two ways in which advertising is likely toinfluence perceived product performance. First, by guiding theexpectations about the shampoo experience - process calledproduct enhancement and second, by creating a halo ofsuperiority around the brand via a mechanic termed Interest Status. There are two key advertising related factors First, the


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advertisement needs to be remembered. This is importantbecause its main influence is at the point of trial. Second, themessage should relate in some way to the experience of usingthe product - for instance, does it create any expectation of

what the shampoo would feel like to your hair i.e., how will ittake care of your hair and especially to your specifications. Butthe advertiser should always bear in mind that the benefitsproclaimed are in line with what the product can actuallydeliver.

Use country wide sampling activity to acquaint potentialcustomers with the benefit of shampoo backing up the effortwith advertising to convert intent to purchase.

Offer value for money impetus for the decision to use theproduct more intensively

Again benchmark the company that has well positioneditself in the minds of the consumer and they [consumers] rarelychange their shampoo. Here these people are almost satisfiedwith their current brand because the core features theconsumer looks for is being derived from their brand. And sodelivering the improved one will make them switch to yourbrand but it should be well advertised and substantiatedThis action of company will have other positive effect ofattracting those switchers, changing frequently and/oroccasionally and drawing the crowd towards your brand.

Go for strategic sizing and pricing. Have those packsavailable in the market so that people have a wider optionavailable and presence of your brand. After a gap of some time

check which are the packs that are bought most and assuretheir availability.

Last but not the least there are separate issue that have todealt with being the male and female factor and then growingdemand of herbal shampoo. Looking at f i rs t pointthe femalefactors of buying a shampoo are different than male. A female


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normally have less problem of falling hair than male and sothey look for those hair shampoo that improve from the currentposition of their hair. [Rejuvenate and healthy etc.] But onecommon problem [male & female] that they may have is of

dandruffs. And so the company can develop the brand imageand quality and communicate better to the target group ofthese core benefits of your brand i.e., solution for hair problemand thus improving and rejuvenating them. Second point . Canthe company in the same line of chemical shampoos changethe perception in the mind of the consumer of chemicalshampoo having no side affects and at the same time advertiseabout the possible advantages of using their shampoo and/or

can they come up with a herbal shampoo as the productextension and there by building a well brand image. Like theColgate has done with the already launched product of herbaltoothpaste. If yes please go ahead but probe before youplunge.

The advt. Slogan could be : Expert care for every type of hair Extra protection for your hair Remove dandruffs in secs Healthy shiny u ever wanted.

Annexure

Questionnaire on shampoo

Name

Age


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Gender

. Please rate the importance of the following attribute on 5 point rating scale.

(1)

Strongly Agree

(2)

Agree

(3)

Uncertain/Neutral

(4)

Disagree

(5)

Strongly

Disagree

S.no Attributes Rating(1 to 5)

1 I like to experiment with new hair shampoo.

2 I buy hair shampoo that my friends buy.

3 I buy expensive hair shampoo.

4 I buy hair shampoo that I have seen advertised.

5 Do you consider after wash fragrance in the shampoo.

6 Do you prefer branded shampoo.

7 Do you prefer a conditioner free with a shampoo.

8 Do you consider packaging size of the shampoo.

9 Do you consider antidandruff shampoo over normal shampoo

10 Do you prefer silky shine shampoo.

Thank you for your time and patience!

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