A study on Consumer buying behavior towards Branded and Non
Branded readymade garments in Ludhiana
Final Research Project Report
Submitted to Punjab Technical University, Jalandhar in partial
fulfillment of the requirement of the degree of
Bachelor of Business Administration
By Vaani Student (BBA) Roll No: 81501320261
Department of Business Management Punjab College of Technical
Education, Ludhiana 2008-2011
1
PREFACE
In this Era of Globalization and Liberalization of the Economy,
business practices are in the process of getting modified at
greater speed with the change in the policies and procedures of
government. In the context, business education is also witnessing
great transformation which strikes for excellence to meet the
global standards so that our new managers are not only able to feel
the pulse of those changes but may also be able to get them
absorbed to do the right things at a right time .therefore Finance
plays a very potent force in an organization to achieve its
endeavor. I have taken my project report Consumer buying behavior
regarding branded and non -branded readymade garments in Ludhiana.
Hope this report will prove to be an indispensable companion for
all those who are concerned & who are in any way interested in
the subject matter of this report.
2
CERTIFICATE-I
This is to certify that the thesis/dissertion entitled, Consumer
buying behavior towards Branded and Non branded readymade garments
in Ludhiana submitted for the degree of bachelor of Business
Administration (BBA), in the Major specialization in Marketing from
Punjab Technical University, Jalandhar, is a bonafide research work
carried out by Vanisha, student of BBA, under my supervision and
that no part of this thesis has been submitted for another degree.
The assistance and help received during the course of investigation
have been fully acknowledged.
______________ Mr. Pankaj Maini (Major Advisor)
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ACKNOWLEDGMENTI express my sincere gratitude and indebtedness to
my Major Advisor Mr. Pankaj Maini, Faculty, Department of Business
Management, Punjab College of Technical Education, Ludhiana for
their ever willing and constant encouragement in exploration of my
present investigation and preparation of the project. I am also
thankful to members of Advisory Committee and other faculty members
of the department for their unending support and guidance. I would
fail in my duty if I do not acknowledge the blessing of almighty
God and the efforts of my friends whose tremendous support and
inspiration cannot be explained in words. I am equally thankful to
my respondents and all those who made the completion of study
possible.
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CHAPTER NO. 1 Introduction:-
CHAPTER NAME
PAGE NO.
1-17
2 3 4 5
Title and Objectives Need and Scope Limitations
18 18-19 19 20-23 23-26 27-40 41-43 41-42 42 43 44
Review of literature Research methodology Analysis and
interpretation Summary and Conclusion (i) Results and Findings (ii)
Suggestions (iii) Conclusion Bibliography Annexure
Questionnaire
45-47
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TABLE INDEX
Table no. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10.1 4.10.2
4.10.3 4.10.4 4.11
Table descriptionNumber of people like to do shopping Number of
people like to do shopping through various places Frequency of
visits Number of people who are brand conscious Number of people
buy different brand of cloths Number of people prefer a particular
brand or company Number of people thinks brand is a status symbol
Number of parameters which effects consumer buying decision
Preference of people regarding type of cloth Consideration on price
while buying a cloth Consideration on design while buying a cloth
Consideration on discount while buying cloths Consideration on
sales promotion while buying an cloth Satisfaction of customers
regarding brand/company available in the market
Page no.27 28 29 30 31 32 33 34 35 36 37 38 39 40
GRAPH INDEX6
Graph no. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10.1 4.10.2
4.10.3 4.10.4 4.11
DescriptionNumber of people like to do shopping Number of people
like to do shopping through various places Frequency of visits
Number of people who are brand conscious Number of people buy
different brand of cloths Number of people prefer a particular
brand or company Number of people thinks brand is a status symbol
Number of parameters which effects consumer buying decision
Preference of people regarding type of cloth Consideration on price
while buying a cloth Consideration on design while buying a cloth
Consideration on discount while buying cloths Consideration on
sales promotion while buying an cloth Satisfaction of customers
regarding brand/company available in the market
Page no.27 28 29 30 31 32 33 34 35 36 37 38 39 40
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CHAPTER-1 INTRODUCTION8
Consumer Buying BehaviorDefinition of Buying Behavior: Buying
Behavior is the decision processes and acts of people involved in
buying and using products.
Need to understand: Why consumer makes the purchase that the
make? What factors influence consumer purchases? The changing
factor 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.
What influences consumers to purchase products or services? The
consumer buying process is a complex matter as many internal and
external factors have an impact on the buying decisions of the
consumer. When purchasing a product there several processes, which
consumers go through. These will be discussed below.
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Problem Recognition
Information Search
Evaluation and Selection of Alternatives
Decision Implementation
Post-purchase Evaluation
1. Problem/Need Recognition How do you decide you want to buy a
particular product or service? It could be that your DVD player
stops working and you now have to look for a new one, all those DVD
films you purchased you can no longer play! So you have a problem
or a new need. For high value items like a DVD player or a car or
other low frequency purchased products this is the process we would
take. However, for impulse low frequency purchases e.g.
confectionery the process is different. 2. Information search So we
have a problem, our DVD player no longer works and we need to buy a
new one. Whats the solution? Yes go out and purchase a new one, but
which brand? Shall we buy the same brand as the one that blew up?
Or stay clear of that? Consumer often goes on some form of
information search to help them through their purchase decision.
Sources of information could be family, friends, neighbours who may
have the product you have in mind, alternatively you may ask the
sales people, or dealers, or read specialist magazines like What
DVD? to help with their purchase decision. You may even actually
examine the product before you decide to purchase it.
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3. Evaluation of different purchase options. So what DVD player
do we purchase? Shall it be Sony, Toshiba or Bush? Consumers
allocate attribute factors to certain products, almost like a point
scoring system which they work out in their mind over which brand
to purchase. This means that consumers know what features from the
rivals will benefit them and they attach different degrees of
importance to each attribute. For example sound maybe better on the
Sony product and picture on the Toshiba , but picture clarity is
more important to you then sound. Consumers usually have some sort
of brand preference with companies as they may have had a good
history with a particular brand or their friends may have had a
reliable history with one, but if the decision falls between the
Sony DVD or Toshiba then which one shall it be? It could be that
the a review the consumer reads on the particular Toshiba product
may have tipped the balance and that they will purchase that brand.
4. Purchase decision Through the evaluation process discussed above
consumers will reach their final purchase decision and they reach
the final process of going through the purchase action e.g. The
process of going to the shop to buy the product, which for some
consumers can be as just as rewarding as actually purchasing the
product. Purchase of the product can either be through the store,
the web, or over the phone. 5. Post Purchase Behaviour Ever have
doubts about the product after you purchased it? This simply is
post purchase behaviour and research shows that it is a common
trait amongst purchasers of products. Manufacturers of products
clearly want recent consumers to feel proud of their purchase; it
is therefore just as important for manufacturers to advertise for
the sake of their recent purchaser so consumers feel comfortable
that they own a product from a strong and reputable organisation.
This limits post purchase behaviour. i.e. you feel reassured that
you own the latest advertised product. Types of Consumer Buying
Behaviour
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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
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 alot 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. For eg 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.
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Factors Effecting Consumer Buying Behaviour Why do we need to
learn about consumer buying behavior? The simple answer is that no
long can we take the customers for granted. Consumer buying
behavior determines how our consumers decide to buy our product and
what are the various factors responsible for this decision? Out of
11000 new products introduced by 77 companies, only 56% are present
after 5 years. Only 8% of new product concepts offered by 112
leading companies reached the market. Out of that 83% failed to
meet marketing objectives. What we need to understand here is why
consumers make the purchases that they make, what factors influence
consumer purchases and changing factors in our society The central
focus of marketing is the consumer. To devise good marketing plans,
it is necessary to examine consumer behavioral attributes and
needs, lifestyles, and purchase processes and then make proper
marketing-mix decisions. The study of Consumer behavior includes
the study of what they buy, why they buy, how they buy, when they
buy, from where they buy, and how often they buy. An open-minded
consumer-oriented approach is imperative in todays diverse global
marketplace so a firm can identify and serve its target market,
minimize dissatisfaction, and stay ahead of competitors. Final
consumers purchase for personal, family, or household use.
Major Factors affecting consumer buying behavior
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Consumer purchases are influenced strongly by or there are four
factors. 01. Cultural Factor 02. Social Factor 03. Personal Factor
04. Psychological Factor. 01. Cultural Factor:Cultural factor
divided into three sub factors (i) Culture (ii) Sub Culture (iii)
Social Class Culture:The set of basic values perceptions, wants,
and behaviours learned by a member of society from family and other
important institutions. Culture is the most basic cause of a
persons wants and behaviour. Every group or society has a culture,
and cultural influences on buying behaviour may vary greatly from
country to country. Sub Culture:A group of people with shared value
systems based on common life experiences and situations.Each
culture contains smaller sub cultures a group of people with shared
value system based on common life experiences and situations. Sub
culture includes nationalities, religions,racial group and
geographic regions. Many sub culture make up important market
segments and marketers often design products. Social Class:-
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Almost every society has some form of social structure, social
classes are societys relatively permanent and ordered divisions
whose members share similar values, interests and behaviour. 02.
Social Factors:A consumers behaviour also is influenced by social
factors, such as the (i) Groups (ii) Family (iii)Roles and status
Groups:Two or more people who interact to accomplish individual or
mutual goals. A persons behaviour is influenced by many small
groups. Groups that have a direct influence and to which a person
belongs are called membership groups. Some are primary groups
includes family, friends, neighbours and coworkers. Some are
secondary groups, which are more formal and have less regular
interaction. These include organizations like religious groups,
professional association and trade unions. Family:Family members
can strongly influence buyer behaviour. The family is the most
important consumer buying organization society and it has been
researched extensively. Marketers are interested in the roles, and
influence of the husband, wife and children on the purchase of
different products and services. Roles and Status:A person belongs
to many groups, family, clubs, organizations.The persons position
in each group can be defined in terms of both role and status.For
example. M & X plays the role of father, in his family he plays
the role of husband, in his company, he plays the role of manager,
etc. A Role consists of the activities people are expected to
perform according to the persons around them.
03. Personal Factors:-
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It includes i) Age and life cycle stage (ii) Occupation (iii)
Economic situation (iv) Life Style (v) Personality and self
concept. Age and Life cycle Stage:People change the goods and
services they buy over their lifetimes. Tastes in food, clothes,
furniture, and recreation are often age related. Buying is also
shaped by the stage of the family life cycle.
Occupation:A persons occupation affects the goods and services
bought. Blue collar workers tend to buy more rugged work clothes,
whereas white-collar workers buy more business suits. A Co. can
even specialize in making products needed by a given occupational
group. Thus, computer software companies will design different
products for brand managers, accountants, engineers, lawyers, and
doctors. Economic situation:A persons economic situation will
affect product choice Life Style:Life Style is a persons Pattern of
living, understanding these forces involves measuring consumers
major AIO dimensions. I.e. activities (Work, hobbies, shopping,
support etc) interest (Food, fashion, family recreation) and
opinions (about themselves, Business, Products) Personality and
Self concept:Each persons distinct personality influences his or
her buying behaviour. Personality refers to the unique
psychological characteristics that lead to relatively consistent
and lasting responses to ones own environment. 04. Psychological
Factors :-
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It includes these Factors. i) Motivation (ii) Perception (iii)
Learning (iv) Beliefs and attitudes Motivation :Motive (drive) a
need that is sufficiently pressing to direct the person to seek
satisfaction of the need Perception :The process by which people
select, Organize, and interpret information to form a meaningful
picture of the world. Learning:Changes in an individuals behaviour
arising from experience. Beliefs and attitudes :Belief is a
descriptive thought that a person holds about something Attitude, a
Persons consistently favourable or unfavorable evaluations,
feelings, and tendencies towards an object or idea.
MarketingMarketing is the process of performing market research,
selling products and/or services to customers and promoting them
via advertising to further enhance sales. It generates the strategy
that underlies sales techniques, business communication, and
business developments. It is an integrated process through which
companies build strong customer relationships and creates value for
their customers and for themselves. Marketing is used to identify
the customer, to satisfy the customer, and to keep the customer.
With the customer as the focus of its activities, it can be
concluded that marketing management is one of the major components
of business management. Marketing evolved to meet the stasis in
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developing new markets caused by mature markets and
overcapacities in the last 2-3 centuries. The adoption of marketing
strategies requires businesses to shift their focus from production
to the perceived needs and wants of their customers as the means of
staying profitable. The term marketing concept holds that achieving
organizational goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions. It
proposes that in order to satisfy its organizational objectives, an
organization should anticipate the needs and wants of consumers and
satisfy these more effectively than competitors.
INTRODUCTION TO THE INDUSTRYThe Textile Sector in India ranks
next to Agriculture. Textile is one of Indias oldest industries and
has a formidable presence in the national economy in as much as it
contributes to about 14 per cent of manufacturing value-addition,
accounts for around one-third of our gross export earnings and
provides gainful employment to millions of people. The textile
industry occupies a unique place in our country. One of the
earliest to come into existence in India, it accounts for 14% of
the total Industrial production, contributes to nearly 30% of the
total exports and is the second largest employement generating
after agriculture. Textile Industry is providing one of the most
basic needs of people and the holds importance; maintaining
sustained growth for improving quality of life. It has a unique
position as a selfreliant industry, from the production of raw
materials to the delivery of finished products, with substantial
value-addition at each stage of processing; it is a major
contribution to the country's economy. This paper deals with
structure, growth and size of the Indian textile industry, role of
textile industry in economy, key advantages of the industry,
textile industry export and global scenario and strength,
weakness,opportunities. The Indian textile industry is one of the
largest in the world with a massive raw material and textiles
manufacturing base. Our economy is largely dependent on the textile
manufacturing and trade in addition to other major industries.
About 27% of the foreign exchange earnings are on account of export
of textiles and clothing alone. The textiles and clothing sector
contributes about 14% to the industrial production and 3% to the
gross domestic product of the country.
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Around 8% of the total excise revenue collection is contributed
by the textile industry. So much so, the textile industry accounts
for as large as 21% of the total employment generated in the
economy. Around 35 million people are directly employed in the
textile manufacturing activities. Indirect employment including the
manpower engaged in agricultural based raw-material production like
cotton and related trade and handling could be stated to be around
another 60 million. A textile is the largest single industry in
India (and amongst the biggest in the world), accounting for about
20% of the total industrial production. It provides direct
employment to around 20 million people. Textile and clothing
exports account for one-third of the total value of exports from
the country. There are 1,227 textile mills with a spinning capacity
of about 29 million spindles. While yarn is mostly produced in the
mills, fabrics are produced in the power loom and handloom sectors
as well. The Indian textile industry continues to be predominantly
based on cotton, with about 65% of raw materials consumed being
cotton. The yearly output of cotton cloth was about 12.8 billion m
(about 42 billion ft). The manufacture of jute products (1.1
million metric tons) ranks next in importance to cotton weaving.
Textile is one of Indias oldest industries and has a formidable
presence in the national economy inasmuch as it contributes to
about 14 per cent of manufacturing value-addition, accounts for
around one-third of our gross export earnings and provides gainful
employment to millions of people. They include cotton and jute
growers, artisans and weavers who are engaged in the organized as
well as decentralized and household sectors spread across the
entire country. The textile industry is a group of related
industries which uses a variety of natural (cotton, wool, etc.)
and/or synthetic fibers to produce fabric. It is a significant
contributor to many national economies, encompassing both small and
large-scale operations worldwide.. Subdivision of the textile
industry into its various components can be approached from several
angles. According to reference, the classical method of
categorizing the industry involves grouping the manufacturing
plants according to the fiber being processed, that is, cotton,
wool, or synthetics. The modern approach to textile industry
categorization, however, involves grouping the manufacturing plants
according to their particular operation. Wool Scouring; 19
Wool Finishing; Dry Processing; Woven Fabric Finishing; Knit
Fabric Finishing; Carpet Manufacture; Stock and Yarn Dyeing and
Finishing. Traditionally, the textile industry is very energy,
water, and chemical-intensive. About 60% of the energy is used by
dyeing and finishing operations. Environmental problems associated
with the textile industry are typically those associated with water
pollution. Natural impurities extracted from the fibre being
processed along with the chemicals used for processing are the two
main sources of pollution. Effluents are generally hot, alkaline,
strong smelling and colored by chemicals used in dyeing processes.
Some of the chemicals discharged are toxic. Other environmental
issues now considered equally important and relevant to the textile
industry include air emissions, notably Volatile Organic Compounds
(VOC). BRANDING There are many different definitions of a brand,
the most effective description however, is that a brand is a name
or symbol that is commonly known to identify a company or its
products and separate them from the competition. A well-known brand
is generally regarded as one that people will recognise, often even
if they do not know about the company or its products/services.
These are usually the businesses name or the name of a product,
although it can also include the name of a feature or style of a
product. The overall branding of a company or product can also
stretch to a logo, symbol, or even design features (e.g. regularly
used colours or layouts, such as red and white for Coca Cola.) that
identify the company or its products/services. For example: The
Nike brand name is known throughout the world, people can identify
the name and logo even if they have never bought any of their
products.
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However, not only is the company name a brand, but the logo (The
tick symbol) is also a strong piece of branding in its own right.
The majority of people that are aware of the company can also
identify it (or its products) from this symbol alone. The clothing
and running shoe company Adidas is well known for using three
stripes on its range of products. This design feature branding
allows people to identify their products, even if the Adidas brand
name and logo is not present. BRANDED GOODS: A brand is the
identity of a specific product, service, or business. A brand can
take many forms, including a name, sign, symbol, color combination
or slogan. The word brand began simply as a way to tell one
person's cattle from another by means of a hot iron stamp. A
legally protected brand name is called a trademark. The word brand
has continued to evolve to encompass identity - it affects the
personality of a product, company or service. A concept brand is a
brand that is associated with an abstract concept,rather than a
specific product, service, or business. UNBRANDED GOODS: An
unbranded good is a good which is not recognized by a name. goods
are treated as a commodity goods or cases where consumer are
reluctant to make brand distinctions,for example toothpicks, cloth
pins. In this stage consumer memory network consist primarily of a
node identifying the product category. Such goods are often seen in
developing countrie. Informaton about the product is limited to the
users. So consumers are unaware about the brand.
CURRENT SCENARIO OF INDUSTRY: Under the WTO framework, exports
of textile and apparel products will be quota-free and will only be
based on market considerations namely product attributes, pricing,
promotion such as 21
advertising, brand building and other sales promotion
techniques, physical distribution - its cost and logistics
decisions. Since the 90s, the WTO members have embarked on
liberalisation and economic reforms programmes with a view to bring
about rapid and substantial economic growth and move towards
globalisation of the economy. In accordance with WTO policies,
there have been substantial changes in policies such as reduction
in import tariffs, binding of import tariffs, phasing out of
quantitative restrictions and pruning of the negative list of
imports. The new policies have substantially released restrictions
on foreign investment, industrial licensing, foreign exchange
controls, etc. The capital market has been opened to foreign
investment, banking sector controls have been eased and private
investment encouraged. The exporting community of textiles and
clothing are continuously putting their effort in assessing the
world trade situation beyond the quota regime, when the Multi-Fibre
Arrangement (MFA) will be fully integrated into the general WTO
rules and regulations. With the present strength and potential of
the Indian textile industry, the question that often arises is
whether India has a satisfactory world share in the textile and
clothing trade. India accounts for about 21 per cent of the worlds
spindleage (second largest after China), 58 per cent of the worlds
loomage and 15 per cent of the worlds cotton production. India
stands 11th amongst the exporting nations of apparel and clothing.
However if we look at countries like Sri Lanka and Bangladesh,
their export performance of textile and clothing, especially the
apparel and garment exports, is more than satisfactory and
impressive if compared to their industry strength. Such performance
in garment exports by Sri Lanka and Bangladesh is basically due to
the quota-free access given to them by the EU, the US and Canada,
whereas Indias export potential is restricted by the imposition of
quota from these developed nations. At present, international trade
in textiles and clothing is governed by the quota regime, wherein
countries like the EU, US, Canada, etc, have given quotas to
different countries for different textiles and clothing products.
These quotas are generally based on the historical exports to these
countries and bilateral relationships. Hence despite India having a
strong manufacturing base and high export potential, it does not
have enough quota to these countries. On the export side, the most
important development of the quota regime is the planned end of
textile quotas, which may provide a safe niche to the Indian
textile industry.
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WTO, with phasing out the quotas, moves towards globalisation,
but the developing countries like India will face new challenges.
For instance, doing away with the multi-fibre arrangements in the
textile and apparel sector would only benefit those countries who
had export potential, but quota restrictions stood in their way.
Those countries to whom quotas provided a shield against their low
competitive ability would lose out. The message for developing
countries is clear. In the new environment they can only go forward
through greater competitivenes. In the post quota regime, the Asian
majors of textiles like South Korea, Taiwan, Indonesia, Thailand,
Hong Kong, etc are expected to reap maximum benefit due to their
respective positioning in the textile trade. Countries like India
may enjoy very little benefit due to the overall competitiveness.
With its entry into the WTO, China, too, is all set to give a very
tough competition to Indias textile marketing in the European Union
and in USA. When we talk of competitiveness, we should concentrate
more on product quality, service quality with lower cost elements.
Quality and cost competitiveness are both required for making room
at the international trade scenario especially when the quota
regime will be over. The qualitative issues actually have impact on
the efficiency in the supply chain and business stability. Thus
these are going to gain more prominence once ATC would be
integrated into WTO rules and regulations. If we look at the Indian
textile industry, leaving the spinning sector, the weaving and the
apparel sectors are lagging behind as far as the updated machinery
and technology is concerned. Indian weaving sector is dominated by
traditional grey fabrics produced in handlooms and power looms. The
apparel sector is largely in the small scale sector, as it does not
attract big investments. This has resulted in an orthodox way of
doing business, which implies that we in the apparel trade are not
as professional as our counterparts and competitors. To be in the
forefront and to be leaders in the textile trade during the quota
free regime, the quality and cost part must be considered more
seriously. This is because, more market share would move to those
countries who can provide quality products at very competitive
prices when the whole international market will be free for all.
The quality in the textile sector is to be built into the products
through quality of designs, quality of processes, quality of human
resources, quality of management, quality of leadership and above
all quality of strategic response to turbulent external environment
despite which businesses are expected to perform the world over.
Therefore, to survive in such an environment
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we need to go for modern technology and should emphasise on the
quality of finished products. The government should emphasise and
introduce the global quality standards like ISO 9000 and ISO 14000
in the production of textile products. In the post quota scenario,
it will become important that our industry focus more on the
production of fine quality processed cloth. A major portion of good
quality yarn should be utilised domestically in the organised mills
sector for the production of high value-added fabric of better
quality. And then later this fabric should be used in the
production of garments. As garments provide the highest value-added
product among the textile items, maximum focus should be towards
the units producing garments. A market-oriented strategy must be
introduced to capture a good share of the international market.
Product differentiation must also be done through the promotion of
brand names and advertising. Infrastructure in terms of
communication services, export procedures, appropriately trained
manpower, material inputs and transport facilities, as well as
stable enforceable contracts with foreign investors are also
needed. Otherwise, any increase in the share or the maintenance of
the current share in the global market would be difficult. It is
heartening that India currently exports more than 100 garment
product categories along with its customary yarn and fabrics. Many
of the worlds leading companies like Banana Republic, Tommy
Hilfiger, Gap, Liz Claiborne, Polo, etc are already sourcing goods
from India. With traditional relationships with the worlds major
producers, we hope that our exports would achieve new heights in
the post quota regime. Coming back to the synthetic textiles
industry, it is getting stronger and stronger and Indias share in
the world trade of synthetic textiles has marginally improved to
3.50 per cent over the previous years. Indias export of synthetic
and rayon textiles has been increasing steadily over the past
decade and reached an all-time high of Rs 7630 crore during
2002-03. The export growth is more than 29 per cent during 2002-03
as compared to 2001-02 and the Synthetic and Rayon Textiles Export
Promotion Council (SRTEPC) is expecting the export growth to
continue even in the post-quota regime. Currently, Indian MMF spun
and blended fabrics (grey and processed) and blended yarn are
exported under quota (Cat. 3, Cat. 3a and Cat. 23) to the European
Union. It is worth-mentioning that category 3, 3a and 23 account
for only around eight per cent of the total exports of MMF
textiles. So in the quota-free regime, India has to compete with
rest of the world for this eight per cent of its total export,
which would not be difficult.
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As far as USA is concerned, it is one of the most important
markets for Indian textile products. In the textile category, USA
is the major buyer of MMF textile items, as the share of MMF
textile imports in the total textiles accounted for more than 51
per cent during 2002. The share during January-June 2003 has risen
to 52.52 per cent, whereas the share of cotton textiles declined
marginally from 37.77 per cent in January-June 2002 to 37.08 per
cent in January-June 2003. The share of wool and silk textiles
constitutes 7.86 per cent and 2.88 per cent in 2002 and in the
current year the same trend is maintained. Quota is one of the
major impediments for Indian MMF textiles to make a big impact in
the US market at present. It has been observed that Indian export
growth has been impressive for major MMF textile items, which were
removed from the quota regime. When all the products would be
integrated into WTO rules and regulations (49 per cent of the
products to be integrated in Phase-IV on January 2005), then Indias
exports to USA would further increase with a higher market share.
With the phasing out of quotas, the process of tariff and
non-tariff negotiations at the WTO is also getting streamlined by
January 2005. Under the tariff negotiations of WTO, all the member
countries should finalise the bound rates of import tariff. Since
earlier the domestic markets were given protection through high
tariff rates, the WTO mandate for tariff negotiations now would not
allow the imposition of import tariffs beyond a certain limit. It
is therefore expected that the non-tariff barriers would be more
prominent in the post-quota regime. Thus, though, the new global
trading system would reduce the chances of developed countries
adopting protection measures unilaterally, they can still use their
economic clout to their advantage by imposing nontariff barriers.
Currently Indian exports are affected by a series of non-tariff
barriers also from the developed countries including anti-dumping
measures, unilateral rules of origin, disproportionate phasing out
of quotas, banning the use of various dyes, etc. As we have already
mentioned that the nontariff barriers would be more prominent even
in the WTO regime, the Indian textile industry should be prepared
to handle there NTBs properly, so that exports should not be
affected much. With all this anticipation, the government must play
a big role. The government should also be fully prepared to give,
whatever facilities are necessary, to exporters so that they can
counter the challenges posed by the WTO regime. In brief, global
competitiveness in terms of quality and cost is the only
alternative for survival in the WTO regime i.e. the post MFA
era.
25
TITLE OF THE STUDYStudy on consumer buying behaviour towards
branded and non branded readymade garments in Ludhiana
OBJECTIVES OF THE STUDY1) To know the factors affecting while
buying a branded or non branded garments. 2) To know the
satisfaction level of consumer.
NEED OF THE STUDYThere are different national and international
products present in India. So to identifyThe customer and their
buying behaviour have been the focus of a number of international
And national product. The result of these studies have bee useful
to the provide solution toVarious marketing problem. Understanding
buying behaviour is not enough without understanding the
composition And Origin of the customers are attracted by imported
goods because of their high quality. So that most of Indian company
product losses their credibility and loyalty in Domestic
customers.
SCOPE OF THE STUDYCustomer loyalty is an important element in
the marketing activities. This customer loyalty Decides the fate of
the product and organisation. There are various factors influence
to The customer loyalty. These factors are Post Purchase behavior,
Reputation, Product availability, Branding and convenient etc.The
scope of the study is restricted to Ludhiana.
26
LIMITATIONS OF THE STUDY 1) The Study is Restricted to
Ludhiana.
2) The Response of the Migrant can be Biased and Subjective.3)
Many Respondents were not vocal in sharing their actual views.
4) Due to time Constraints the sample size was kept small and
view of majority were not taken.
CHAPTER - 2 REVIEW OF LITERATURE1) TITLE: STRATAGIES FOR
REALISING VISION 2010 OF INDIAN TEXTILE AND APPAREL INDUSTRY
27
AUTHOR: J.N SINGH Textile commissioner, ministry of textile, GOI
SOURCE:
http://www.textileassociationindia.org/JTA_ISSUES/Art%206.pdf
REVIEW: Indian textile industry has been growing very well.
Increase in the young population and also increase in use of
plastic money the demand is increasing in the domestic market which
is met by the increasing supply supported by the new women working
force. Also our stand in the world market is stronger than ever,
with the quantitative restrictions on china we are in a better
position now. Many Indian companies have bought western brands
which has made penetration in the EU and the USA fairly easy
further strengthening our exports, but we are facing stiff
competition from Indonesia and Bangladesh so there is lot more to
be done. The industry needs more investments in the sector and also
need to modernize to compete with the other countries as our
equipment and machinery are still outdated and even our labor laws
are restrictive which pose a serious threat on the further growth
of this industry. So though India has strength it also has
weaknesses which are needed to be taken care of to increase our
share in the world textile trade. 2) TITLE: SCOPE OF BIOTECHNOLOGY
IN TEXTILES AUTHOR: G.V.N SHIRISH KUMAR Department of fibers and
textile processing technology, MUICT, Matunga, Mumbai. SOURCE:
http://www.textileassociationindia.org/JTA_ISSUES/MA-Art2-07.pdf
REVIEW: India has wide range of textile of varies designs and
manufactured by different techniques when compared to different
countries of the World. The speciality in the weave of textile in
each region is developed based on location, climate and cultural
influences. The rich and beautiful
28
products of the indian weavers have been rightly called,
Exquisitepoetry in colorful fabrics. But with the advent of
globalization and modern technology we always ourselves competing
with the countries that not only have better technology but are
always looking for new fabrics to meet consumer varied wants. India
also has been spending a lot on the manufacturing of new and more
appealing fabrics. We are spending more and more on research of
such fabrics. A very new way to go about this research is through
biotechnology. It offers the potential for new industrial processes
that require less energy and are based on renewable raw material.
It helps in the production of fabric free floppers, bollworms and
bud worms in cotton etc providing almost 50% greater strength and
better quality. These fibres materials are also called biopolymers.
Biotechnology is one of the revolutionary ways to advance the
textile field. 3) TITLE: GROWING IMPORTANCE OF COTTON BLENDS IN
APPAREL MARKET. AUTHOR: DR.SHILPA P .CHARANKAR, Mrs. VEENA VERMA,
Ms. MITTU GUPTA Department of textile and clothing Dr. Bhanuben
Mahendra Nanavati College Of Home Science, Matunga, Mumbai 400019.
SOURCE: Journal of textile association DATE: Vol 67 , Jan-feb-2007
REVIEW: As the need for innovation is increasing by every passing
day due to the global competition and also todays consumer is
seeking not just clothing but clothing with difference which not
only has good appearance but is also durable and is climate
specific. These things can be achieved by improving the spinning ,
weaving, and finishing efficiency. Rather than just producing
cotton which is less durable than a fabric.Which is blend of
nylon/wool/cotton should be produced. Blending is a complicated and
expensive process, but it makes it possible to built in combination
of properties that is permanent. It makes the fabric better and
gives it a competitive edge. Its inevitablein a global economy
where everyone needs to be prepared for the
29
competition ahead and where the competition is not just from the
domestic but also from the international players. 4) Title: WOMEN
ENTRPRENEUER DEVELPOMENT IN GARMENT MAKING. AUTHOR: Dr. N . VASUGI
Reader family science & community development department
Avinashilingam Deemed University. SOURCE: Journal of textile
association DATE: Vol 67 , Mar-Apr 2007 REVIEW: Textile industry is
the largest foreign exchange earner and also the second largest
Employment provider next to agriculture. Worldwide garment is the
3rd largest employer of the women even in indian garment industry
80% of the people in it are women. Further also it has lot of job
opportunities for everyone women included with the increased
investmentto push the growth forward and also with more and more
does not mean we are free of weaknesswe are able to meet up the
internal challenges of production we will be unstoppable.
CHAPTER - 3
RESEARCH MEHODOLOGYResearch Methodology is Logical and
Scientific technique to solve a problem. When we talk of research
methodology, we not only talk of research methods adopted to get
desired results but we also consider logic behind these methods.
All possible efforts were made to gather information in a natural
way to achieve objectives of research. Research is an original
contribution to existing stocks of knowledge making for its
advancement in research for knowledge through objectives and
systematic method of finding a solution to problem, 30
is research. Research refers to systematic methods consisting of
enunciating the problem, forming a hypothesis, collecting facts or
data, analysis of facts and reaching certain conclusion either in
the form of a solution towards concerned problem in certain
generalization for some theoretical formulation. In my Research the
Research Problem is To study the consumer buying behaviour towards
branded and non branded readymade garments in Ludhiana.
RESEARCH DESIGNResearch design is a framework or blueprint for
conducting the marketing research project. It specifies the details
of the procedures necessary for obtaining the information needed to
structure and solve marketing research problems. When designing
research, one is faced with a continual series of trade-offs. Since
there are typically numerous design alternatives that will work,
the goal is to find the design that enhances the value of the
information obtained, while reducing the cost of obtaining it and
make it as accurate as possible. The conceptual structure, within
which this research is conducted, is descriptive in nature as it
brings forward the results concerning the set objectives fact
finding enquires. Moreover it describes the state of affairs as
exists at present In my research the Research Design is DISCRIPTIVE
RESERCHdesign. Selection of Objective/Problem identification
Secondary Research and Literature Review
Research ObjectiveData Collection & Tabulation 1) To know
the factors affecting while buying a branded or non branded
garments. 2) To know the satisfaction level of consumer. Analysis
of Data
SOURCES OF DATAReport PreparationPrimary data:
Primary data are those, which are collected afresh and for the
first time, and thus happen to be original in character. It is the
backbone of any study. It is obtained from respondents with the
help of widely 31
Final Draft
used and well-known method of survey, through a well-structured
questionnaire. So the primary data has been taken from different
customers. In my research the source of primary data is well
designed Questionnaire. Secondary data: Secondary data are those
which have already been collected by someone else and which have
already been passed through the statistical process. In this case
one is not confronted with the problems that are usually associated
with the collection of Original data. Secondary data either is
published data or unpublished data. Secondary data is collected
from publications, journals, and magazines, Records, web sites etc.
In my research the source of secondary data is journals, internet,
books etc.
SAMPLING PLANIt consists of:Universe of the study: The Universe
is the specific group of people, Firms, Conditions, activities etc.
which form the pivotal point of research project. In my research
study the universe Is All the buyers of branded and non branded
readymade garments.
Population: Population refers to part of universe from which the
sample for conducting the research is selected. Universe and
population can be same in some researches. It may be finite or
infinite. In finite universe the number of items is certain, but in
case of infinite the number of item is infinite i.e., we 32
cannot have an idea about the total number of items. The
population for my study is finite i.e., all the buyers of branded
and non branded readymade garments in Ludhiana. Sampling unit:
Sampling unit refers to smallest possible individual eligible
respondent. In my study the sampling unit is single buyer of
readymade garments in Ludhiana.
SAMPLE SIZEThis refers to the total number of respondents
selected from the population to constitute a sample. The size of
the sample should neither be excessively large, nor too small. It
should be optimum. An optimum sample is one which fulfills the
requirement of efficiency, representativeness, reliability and
flexibility. The sample size for my research is 50.
SAMPLING TECHNIQUEIn this research study, non-probability
convenience sampling is opted for. Convenience sampling is done
purely on the basis of convenience or accessibility. This sampling
method has been mainly chosen because of time, financial
constraints and lack of expertise.
MEASUREMENTMeasurement is accessed via a 5-point-Likert-type
scale ranging from strongly agree tostrongly disagree. Analysis is
done with the Calculation of Mean Score which is calculated with
the help of following Formula. Mean Score = Total Score
--------------------------Total Number of Respondents (n=50)
33
Chapter no-4ANALYSIS AND INTERPRETATION
1) Number of people who are like to do shopping.Particulars Yes
No No. of respondents 50 0Table - 4.1
Percentage (%) 100% 0
34
Graph - 4.1
Interpretation: - As the Graph 4.1 shows, out of sample size of
50 all the consumers are like to do Shopping. As the graph shows
100% people are like to do shopping.
2) Number of people likes to do shopping through various
places.Particulars E Shop Trade Shop Mall Super Market No. of
respondents 5 20 15 10 Percentage (%) 10 40 30 20
35
Interpretation:- In the above Graph maximum consumers likes to
do shopping from trade shops and which is 40%. There are least
consumers likes to do shopping from E Shop.
3) Frequency of visits.Category Weekly Monthly 15-20 days Rarely
No. of respondents 10 20 20 ----Table- 4.3 Percentage (%) 20% 40%
40% ------
36
Graph- 4.3
Interpretation: - As the Graph 4.3 shows 20% people are likely
to do shopping weekly. 40% Peoples are likely to do shopping on
monthly basis. 40% of people like to do shopping on 1520Days basis.
And out of sample of 50 no one is there who likes to do shopping
rarely. It means most of the people like to do the shopping at
monthly and 15-20 days basis.
4) Number of people who are brand conscious.Particulars No. of
respondents Percentage (%)
Yes No
20 30Table - 4.4
40% 60%
37
70% 60% 50% 40% 30% 20% 10% 0% yes No
Graph-4.4
Interpretation: - From the above graph it is proved that out of
the sample size of 50, 40% people are brand conscious and 60%
people are not brand coscious. It means most of the peoples are not
depend on branded product.
5) Number of people buy different brand of cloths.Category Levis
Pepe Lee Puma No. of respondents 10 5 3 2 38 Percentage (%) 50% 25%
15% 10%
Any other
--------Table-4.5
Table-4.5
Interpretation: - Out of sample size of 20.The above Graph shows
that the 50% peoples prefer Levis brand. 25% people prefer Pepe
brand, 15% people prefer Lee brand and 10% people prefer brand of
Puma. It means maximum people prefer brand of Levis
6) Number of people preffer a particular brand or
company.Category Brand name Product feature Promotion activities
Distribution system No. of respondents 15 --------------5
Percentage (%) 75% ------------25%
39
Table-4.6
Graph-4.6
Interpretation:- Out of the sample size of 20.The above graph
shows 75% people buy the branded garments because of brand name and
25% of respondents preffer branded garments because of the
distribution system. As a result we can say that people preffer
branded cloths because of brand name.
7) Number of people thinks brand is a status symbol.Category
Highly disagree Disagree Neutral Agree Highly agree No of
respondents ---------------12 8 Percentage (%) ----------------60%
40%
40
Table-4.7
Graph-4.7
LEVEL OF AGREEMENT [(60*4) + (40*5) = 440/50 = 8.8]
Interpretation: - Out of the sample size of 20.As a result, 60%
respondents respond that brand is a status symbol. And 40%
respondent responds to highly agree. So we can conclude that
maximum peoples are agreeing that brand is a status symbol.
8) Number of parameters which effects consumer buying
decision.Category Quality Price Easy Availability Discount Numbers
64 41 48 47 Mean rank 3.2 2.05 2.4 2.35
41
Table-4.8
Graph-4.8
Interpretation :- From the rank given to some factors by
respondents we come to know that most important factor took into
consideration while buying a branded cloth is price. After that
Easy availability and discount. And least common factor which
effect the purchase decision is Quality.
9) Preference of people regarding type of cloth.Category Branded
Non branded Both No of respondents -----12 8 Percentage (%) ----60%
40%
42
Table-4.9
Graph-4.9
Interpretation:- Out of the sample size of 20. 60% people
preffer non branded Readymade garments. And 40% people preffer both
branded and non branded garments.As a result we can say that non
branded garments are preffer more than branded garments.
10) Rating of the factors which consumer consider while buying
the cloth.PRICE Particular Most important +2 Important +1 Neutral 0
` Less important -1 Numbers 20 5 3 2 Percentage 60.66% 16.66% 10%
6.66%
43
Least important -2
-------Table- 4.10.1
---------
Graph -4.10.1
Interpretation: - Out of the sample size of 30. the above graph
shows that 61 % of people Consider that Price is a most important
factor while buying cloths and 17% people consideredPrice is a
important factor. 10% is for neutral and 7% is for least important.
It means from the results we can conclude that maximum people
thinks that price is a most important factor which they takes into
consideration while buying.
DESIGN Particular Most important +2 Important + 1 Neutral 0 Less
important -1 Least important -2 Numbers 10 15 5 0 0Table-4.10.2
Percentage 33.33% 50% 16.66%
`
44
Graph-4.10.2
Interpretation :- out of the sample size of 30. 50% of people
consider, Design is important factor which takes into consideration
while buying cloths. 34% people respond that design is most
important factor. So as a result we can say that, design is a
important factor for buying cloths.
DISCOUNT Particular Most important +2 Important +1 Neutral 0
Less important -1 Least important -2 Numbers 7 10 5 5
3Table-4.10.3
Percentage 23.33% 33.33% 16.66% 16.66% 10%
`
45
Graph-4.10.3
Interpretation :- 24% people consider that discount ia most
important factor,34% people consider discount is an important
factor and 17% is for neutral and less important respectively. 10%
people respond that discount is a least important factor. as a
result, maximum people said that discount is a important
factor.
SALES PROMOTION Particular Most important +2 Important +1
Neutral 0 Less important -1 Least important -2 Numbers 3 5 5 10
7Table-4.10.4
Percentage 10% 16.66 16.66 33.33 23.33
`
46
Graph-4.10.4
Interpretation:- in this above graph. It is shown that 34%
respondent said that sales promotion is a less important factor.
10% people said that sales promotion is a most important factor. As
a result we can say that. Sales promotion is a less important
factor.
11) SATISFACTION OF CUSTOMER REGARDING BRAND AVAILABLE IN THE
MARKET. Particulars Yes No No of responses 50 0Table-4.11
Percentage 100% 0
47
Graph-4.11
Interpretation:- Out of 50 Sample size. 100% respondent responds
that they are satisfied with the brand and company available in the
market.
CHAPTER-5SUMMARY AND CONCLUSIONRESULTS AND FINDINGS: 1. Out of
the sample size of 50. All the consumers are like to do Shopping.
100% people are like to do shopping.
48
2. Most of the consumers like to do shopping from trade shops.
And there are least consumers Who like to do shopping from E Shops.
3. Out of sample of 50 no one is there who likes to do shopping
rarely. It means most of the people like to do the shopping at
monthly and 15-20 days basis. 4. Out of the sample size of 50, 40%
people are brand conscious and 60% people are not brand conscious.
It means most of the peoples are not depend on branded product 5.
Out of sample size of 20. There are maximum consumers who purchases
the brand of Levis and there are least consumers of Pepe brand.
Rest all are stands in between them. 6. Maximum people preffer a
particular brand or company because of brand name. least consumers
preffer the brand because of distribution system. 7. There are
maximum respondents who agrees that brand is a status symbol and
there are some people who highly agrees that brand is a status
symbol. No one is disagree upon the statement. 8. Most important
factor took into consideration while buying a branded cloth is
price. After that Easy availability and discount. And least common
factor which effect the purchase decision is Quality. 9. Non
branded garments are preffer more than branded garments. 10.
Maximum people think that price is a most important factor which
they take into consideration while buying. 11. Design is a
important factor for buying cloths. 12. Maximum people said that
discount is a important factor. 13. Sales promotion is a less
important factor. 14. 100% respondent responds that they are
satisfied with the brand and compan available in the market.
49
SUGGESTIONS
Customers like best quality product at any price, so companies
should add latest technologies to their products. After sale
services is the area where branded and non branded company can
highly satisfy the existing customers, because they can make more
customers through their word of mouth. So Indian and international
company should provide latest and realible sevices to their
customers. Customers behaviour is always looks for some extra
benefit with purchasing. They demand for affordable price for
products and gifts with purchasing. International companies should
make strategy to cater every income group customers In city.upper
income group are affordable to purchase, but lower group is not. So
International companies makes policies for to send their product
and every home. The companies give more emphasis on advertising to
create market awareness and make Brand image in the minds of
customer.
CONCLUSIONAs the research has shown the comparison between
customer buying behaviour regarding Branded and Non branded
readymade garments in recent time. Since the consumer buying
behaviour is the important factor to forecast the sale of any
product on a particular area. So
50
company should keep close eye on the market situation. Yet,
customers were price sensitive.But the changing market trend and
customer view and preference showed that customers are quality
sensitive. They want qualitative product, easy availability of the
product, and better performance by the product. These days no of
customers buying things from malls are increased. Also the
frequency to visit the malls has been increased. Thats why people
are brand conscious. They feel satisfied with the range of product
available here. From my research point of view we can conclude that
there is maximum preference towards Non branded cloths. Because
branded cloths are costly than the non branded cloths.
BIBLIOGRAPHY
reports/indian-textile-industry/indian-textile-industry1.asplex/chapt6.html
http://www.udel.edu/ahttp://www.fibre2fashion.com/industry-article/market-research-industryhttp://en.wikipedia.org/wiki/Marketing
51
http://en.wikipedia.org/wiki/Marketing
http://en.wikipedia.org/wiki/Sample_(statistics)
http://www.scn.org/cmp/modules/rsh-samp.htm
http://en.wikipedia.org/wiki/Data_source
http://www.textileassociationindia.org/JTA_ISSUES/Art%206.pdf
http://www.textileassociationindia.org/JTA_ISSUES/MA-Art2-07.pdf
Journal: Journal of textile association Book: C.R Kothari (Research
Methodology)
QUESTIONNAIRE Dear Respondent, I am conducting a research on the
topicConsumer buying behaviour regarding Branded and Non Branded
readymade garments in Ludhiana. Please spare a few minutes out of
your busy schedule to fill this questionnaire. I will be highly
thankful to you for your valuable response. Q1) Do you like
shopping? 52
(a) Yes
(b) No
Q2) Where do you like to go for shopping? (a) E Shop (c) Mall
(b) Trade shop (d) Super Market
Q3) How frequently you go their for shopping? (a) Weekly (c)
15-20 Days (b) Monthly (d) Rarely
Q4) Are you brand conscious while doing shopping? (a) Yes (b)
No
If yes, then move to Q5. If no, then please skip to Q9. Q5)
Which brands do you prefer most? (a) Levis (d) Puma (b) Pepe (c)
Lee
(e) Any other, specify________
Q6) Why you prefer a particular brand/company? (a) Brand name
(c) Promotion Activities (b) Product feature (d) Distribution
System
Q7) Do you think branded cloths are status symbol?
------------|-----------------|----------------|-------------|---------------|-----------
53
Highly Disagree
Disagree
Neutral
Agree
Highly Agree
Q8) Give rank to the parameters which effects your buying
decision? (1 for most important and 4 for least important) FACTORS
Quality Price Easy Availability Discount RANK
Q9) What type of cloths you prefer while shopping? (a) Branded
(c) Both If Non branded or both are purchased by you, than move to
Q10. Q10) If you prefer Non Branded garments, what attracts towards
them? _________________________________________________
_________________________________________________ (b) Non
Branded
Q11) Please rate the following factors which you consider while
buying the cloths on following scales? (-2= least important, -1=
less important, 0= neutral, +1=important, +2=most important) Price
--------|--------|--------|--------|--------|--------2 -1 0 +1 +2
--------|--------|--------|--------|--------|--------
Design
54
-2 Discount
-1
0
+1
+2
--------|--------|--------|--------|--------|--------2 -1 0 +1
+2
Sale promotion offers
--------|--------|--------|--------|--------|--------2 -1 0 +1
+2
Q12) Are you satisfied with the brand/company available in
market? (a) Yes (b) No
Personal Information:Name______________ Age________________
Gender_____________ Occupation__________ Marital Status________
55
56