Denim jeans report

Project Report

The Denim (Jeans) Market of Bihar - “A Consumer Behaviour Report”

Submitted by Ashish Ranjan

PUNJAB TECHNICAL UNIVERSITYPUNJAB TECHNICAL UNIVERSITY

DISTANCE EDICUTION PROGRAMMEDISTANCE EDICUTION PROGRAMME

1

ACKNOWLEDGEMENT

With profound veneration, first of all we recline myself before ALMIGHTY without whose

blessings myself is cipher.

Indeed the words and my command are inadequate to convey my profound gratitude and feeling of

indebtedness to Dr. Gautam Sen Gupta, Dr. Prof. Ravi Shankar for his valuable suggestions and able

guidance in questionnaire formation and understanding the theoretical prospective of the project. I

am thankful to Shri Shailesh for his support and timely information made available to us.

Our sincere thanks are due to all the respondents who provided us with their feedback on our

questionnaire and spared their valuable time for the same. We would also like to extend our thanks

to all the shopkeepers for providing us with valuable knowledge about the denim jeans market.

I acknowledge to my elder brothers Deepak and Anurag who motivated me to complete and submit

the work on time. I am indebted to my parents Sri Birendra Kumar and Smt. Sheela Gond who

always boosted up me by reminding my goal and their expectation.

Last but not least, it is acknowledged to my little naughty niece Khusi; and bhabhi Priyanki who

provided me with tasty foods to energize me for of hours.

2

Table of Content

S. no. Content Page No.

1 Executive summary 4

2 Introduction/ Statement of the problem 6

3 Objective & Scope of the study of the study 12

4 Theoretical Perspective 13

5 Research Design 16

6 Denim Market in India 19

7 Data presentation & Findings from the Study 25

8 Recommendations 42

9 References/ bibliography 44

10 Appendix 45

3

Executive summary

Consumer Behaviour plays a very important role in marketing of any product. Consumer behavior is

also an economic process where exchanges take place. These exchanges often involve many players.

The study of consumer behavior enables marketers to understand and predict consumer behavior in

the marketplace; it is concerned not only with what consumers buy but also with why, when, where,

and how they buy it. In this project we have tried to study the factors affecting the decision making

process for the denim market (specifically jeans). Jeans is the flavour of the young generation and

almost every apparel manufacturer wants to be present in this market.

For the purpose of the study a questionnaire has been designed comprising of 20 questions and

responses of around 168 consumers has been collected. The sample of the questionnaire is attached

in the appendix. Our study entails the analysis of the entire purchase process of a jeans buyer, and

how the decision is taken, till the time it is implemented, and then the product is disposed of.

Understanding the core attributes of the purchase process is what we have looked at while doing the

research, and understanding the complexity of the market which comprises of a large number of

unorganized brands.

The study bought out somewhat very different attribute of people regarding many things, like only

2% people said they prefer unbranded jeans and only 6% prefer to buy jeans from local markets and

only 3% considered bargaining as a part of purchase, these results shows clearly the changing trend

of Indian retail market and the change in consumer attributes while the purchasing of jeans.

4

Moreover another interesting factor that caught our notice is the recalling of the brand, average

recalling of number of brands is around 4-5 brands per respondent and the most popular brand were

found out to be levis, lee and wrangler. And another fact that has been noted is that very few

consumers (only 12%) considered the check of brand logo and originality check as a part of purchase

instead of Indian market being thronged by fakes and duplicates.

While at the consumers end, our research throws light upon the various brands available in the

market, the association of various consumer segments, what most people wear and why, along with a

host of factors that affect the consumer decision process.

Our study should help the suppliers, manufacturers and retailers in understanding the “Denim Jeans

Market”, the consumer behaviour and how they make the decision of purchase. Based on the study

the branded jeans can position themselves to be at maximum benefit and have higher customer

satisfaction.

5

Introduction

Lifestyle and Fashion accessories are today one of the most common words that could be heard in

every nook and corner of the buzzing young crowd of any country, more so, when the country is so

rich in its diversified portfolio of consumers which includes people from 38 districts, speaking many

dialects & languages and understanding the importance of religions and a similar number of varied

cultures. And all of such can be seen in Bihar, which is home to people from all ages and cultures. A

study of their buying patterns in the Lifestyle segment, more specifically in the Denim market (that

affects almost all the buying groups), is what we are looking at through the means of this project that

was carried out in several parts of the city, bringing out various aspects of Consumer buying

patterns, and their sentiments and responses while making a purchase for their favorite pair of Jeans.

The choice of Jeans in the Indian scenario is varied. The reason, again, is due to the wide spectrum

of people coming from such diverse backgrounds. With the inception of Denim in the Indian market

in 1980s, the attraction to such a lifestyle product has never seen a backseat in all these years. With

more companies coming over from abroad, as well as within the country, the demand has seen only

one way, and that is upwards. Levi’s, Wrangler, Lee, Pepe, Newport, Flying Machine, and many

others have thronged the market place with their latest designs every next day, giving the consumer a

wider variety to choose from. At the same time, the market is also thronged by duplicates and fakes

along with Non-branded jeans that cater to the lower end but high aspiration segment of the market.

The current demand of denim in the market is estimated to be over 140 mn mtrs, growing at around

10.5%. This demand, even when exposed to an increase in the base, is expected to grow

6

continuously at around 7%, and is projected to be around 168 mn mtr and 215 mn mtr in the years

2009-10 and 2014-15 respectively. With such huge potential in the market, Jeans is surely to survive

and will see much change in the consumer buying patterns.

While talking about Lifestyle products, it becomes extremely necessary to mention the importance of

Demographics, and the relationship that the consumer develops with the product over a period of

time. It is not just like any other soap or a TV that he purchases, it something that is directly related

to his emotional and cognitive aspects of life. The Marketing Dictionary of Rona Ostrow and

Sweetman R. Smith describes lifestyle as "A distinctive mode of behavior centered around activities,

interests, opinions, attitudes and demographic characteristics distinguishing one segment of a

population from another. A consumer's lifestyle is seen as the sum of his interactions with his

environment. Lifestyle studies are a component of the broader behavioral concept called

psychographics."

Berkman and Gilson mention Lifestyle as behavior that both determine and are determined by

consumption. However, this behavior is susceptible to change over a period of time, wherein, the

same customer may evolve over the years from a brand serving a mere utility to one that is more

fashion trendy to something that gives him a more subtle and sophisticated look. The buying pattern

simultaneously changes according to the change in his interests. Thus, it is the Lifestyle that changes

the attitude of the consumer over a period of time. It is this integrated system of a person's attitudes,

values, interests and opinions that govern his purchases for a Shirt or a pair of Jeans, per se.

Lifestyle accessories and Fashion products are highly influenced by a factor commonly known as

Demographics. It is defined as the size, structure, and distribution of a population. Demographics

help the marketer in understanding where exactly his product should be targeted by looking at where

7

his customers are located. It is highly important for analyzing policy questions related to the

aggregate performance of marketing in the society. And this, again, is influenced by Psychographics,

that gives the marketer a better insight into the customer segment by providing him a long list of

statements designed to capture relevant aspects of a consumer, like personality, hinting motives,

interests, attitudes, beliefs and values. However, it is interesting to note that people coming from the

same demographic profile might have a significant difference in their psychographic scenario, giving

the marketers more hiccups in producing a common brand, or product for both.

Analysis of the lifestyle of a consumer or consumer group, per se, adds a huge amount of

understanding to a typical demographic description. A person buying a new pair of Jeans may be 24

years old, graduate, studying in a Post Graduate programme, likes to chat over the internet, and loves

to shop a lot. Thus, lifestyle analysis helps marketers to paint a more human portrait to their target

market.

Feldman and Theilbar describe lifestyle by the following characteristics:

1) Lifestyle is a group phenomenon

A person's lifestyle bears the influence of his/her participation in social groups and of his/her

relationships with others. Two clerks in the same office may exhibit different lifestyles.

2) Lifestyle pervades various aspects of life

An individual's lifestyle may result in certain consistency of behaviour. Knowing a person's conduct

in one aspect of life may enable us to predict how he/she may behave in other areas.

3) Lifestyle implies a central life interest

8

For every individual there are many central life interests like family, work, leisure, sexual exploits,

religion, politics etc. that may fashion his interaction with the environment.

4) Lifestyles vary according to sociologically relevant variables

The rate of social change in a society has a great deal to do with variations in lifestyles. So do age,

sex, religion, ethnicity and social class. The increase in the number of double income families and

that of working women have resulted in completely different lifestyles in the 1980's in India.

The importance of lifestyle to our culture is one thing that is usually ignored by many a failed

marketer. While studying Consumer behaviour patterns, it is imperative to understand the cultural

aspects of the consumer and the importance it carries in any purchase decision. Cultural and societal

variables establish the outer boundaries of lifestyle specific to our culture. The interaction of group

and individual expectations and values creates a systematic pattern of behaviour. This is the lifestyle

pattern that determines purchase decisions. When goods and services available in the market are in

tune with lifestyle patterns and values, consumer market reactions are favourable. And purchases

that reinforce these patterns further illuminate these lifestyles. Lazer's lifestyle hierarchy brings out

these interactions.

9

Hierarchy of Influences on Lifestyles

Understanding lifestyle thus becomes highly important both for the marketer as well as for the seller

who sits in the market, catering and interacting directly with the customer. The customer’s buying

patterns, which has emerged into a separate field of study today, has to be understood with a lot

more importance and clarity so as to do justice to one’s own brand and reputation in the market.

With so many options and new lucrative offers coming out each day, the consumer’s purchase

decision has been highly affected, and the process goes through a number of stages before reaching

the actual purchase part.

10

Consumer Decision Making Process

Our study entails the analysis of this entire purchase process of a jeans buyer, and how the decision

is taken, till the time it is implemented, and then the product is disposed of. Understanding the core

attributes of the purchase process is what we have looked at while doing the research, and

understanding the complexity of the market which comprises of a large number of unorganized

brands, the study is extremely important for producers to understand the demand in the market, the

perception of the consumer, and the reasons the consumers have while making a purchase. While at

the consumers end, our research throws light upon the various brands available in the market, the

association of various consumer segments, what most people wear and why, along with a host of

factors that affect the consumer decision process.

11

OBJECTIVE OF THE STUDY

1. To study the brand association, recall. Loyalty and preferences for various brands of jeans on

Delhi and NCR.

2. To study the buying behavior with respect to different brands considering the key attributes

in a brand that include purchase, place of purchase, purchase price, consumption process,

frequency of purchase and the media’s influence.

3. To study the consumer decision making process starting with need recognition, information

search, pre- purchase evaluation of alternatives, purchase, consumption and the post

consumption behavior of A1,A2.B1 and B2 categories of consumers.

SCOPE OF THE STUDY

This study may help the producers of denim/ jeans to understand the consumer from brand selection

decision making process to the point of disposal of the product, hence the scope of study is to

analyse the following:

1) The decision making process of the consumer while purchasing jeans, till implementation

stage

2) How much the perception and brand recalling does effect the final purchasing

3) What makes customer decide which jeans to purchase amongst the huge brand range and

large number of unorganized brands

4) The number of brands available in the market and how much does all these make decision

making process more complicated

5) Associating the various customer segments

12

Theoretical perspective

Consumer behavior is the action and decision process of people who purchase goods and services for

personal consumption.

DECISION MAKING PROCESS

Seven Stages to the Consumer Buying Decision Process are:

1. Need Recognition – It is the difference between the desired state and the actual condition.

Deficit in assortment of products. For example, Hunger--Food. Hunger stimulates your need

to eat.

2. Information search –

o Internal search, memory.

o External search if more information is required. The ways can be Friends and

relatives (word of mouth). Marketer dominated sources (any source that supplier does

for the purpose of information and persuasion); comparison shopping; public sources

etc.

A successful information search leaves a buyer with possible alternatives, the evoked set.

o Here the evoked set is the unbranded jeans market and the various brands available

like levis, lee cooper, wrangler, pepe, tommy hilfigher etc…

3. Information processing –

As a consumer is exposed to information resulting from external search, he begins to process

the stimuli. The steps involved in this process are:

13

Exposure: reaching of information to the customer

Attention: The revelent message is sent across to attract the customer attention or not

Comprehension: accurate comprehension has been done by the customer

Acceptance: message sent across must be accepted by the consumer

Retention: the information must be stored in such a way that it is assecisble in the

future

4. Pre-Purchase evaluation – Choosing the buying alternative, consumer thinks of silanet

attributes which includes product, package, store, method of purchase etc.

5. Purchase – In this phase consumer having being decided about purchase, goes through the 2

phases again: a) choosing of the retailer and b) various instore choices influenced by sales

person, product displays, electronic media and point of purchase advertising.

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 purchasing a levis jeans consumer may think that he wanted a pepe

jeans instead.

7. Divestment - consumers have several options including outright disposal, recycling or

remarketing for example a car that one has purchased can be divested by selling it to another

consumer, trade it for another vehicle or take it to the junkyard.

TYPES OF DECISION PROCESS

Routine Response/Programmed Behavior –

14

It involves 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 products occasionally. When consumer need to obtain information about unfamiliar

brand in a familiar product category, he requires a moderate amount of time for information

gathering.

Examples include Clothes – consumer here know about product class but not the brand.

Extensive Decision Making /Complex high involvement, unfamiliar, expensive and/or

infrequently bought products.consumer spend a lot of time in decision making. High degree

of economic/performance/psychological risk is involved.

Examples are cars, homes, computers.. Information from the companies MM; friends and

relatives, store personnel etc. Go through all stages of the buying process.

Impulse buying , no conscious planning.

15

RESEARCH DESIGN

Data Requirements

The data that will be required for the study will comprise of

Brands available and data on what brands consumers purchase

Influence of Non-brands and Duplicate brands in the market

Demographic and Psychographic categorization of the buyers

Influence of Media types in the purchase process

Attributes regarded in purchase process

Difference in male and female jeans purchase patterns

Brand association, recall and loyalty

1.1 Data Sources and Collection method

1.1.1 Primary Sources

Visiting various shopping malls and retail outlets, and interviewing consumers about their

purchase process.

Visiting various local shopping zones such as Patna Market, Hatua Market and Raza Bazar

to assess consumer buying patterns.

Interviewing students at IMT Ghaziabad to assess their jeans purchase patterns .

1.1.2 Secondary Sources

Websites of various Lifestyle brands concerning the Jeans market

Online articles and journals regarding the product category

16

1.2 Data Analysis Method

The target is to study around 168 consumers of Jeans in the Bihar, and assess the consumer behavior

patterns in these areas. The purchase decision process and the key attributes that a consumer

searches for in a brand are to be analyzed, based on the demographic and psychographic

categorization of the consumer base. The perception and association with a particular brand will also

be analyzed to get a clearer understanding of the purchase decision process of a Jeans. All this will

entail a thorough market research to be conducted in various shopping zones within the city,

undertaking personal and focused group interviews of consumers, and then quantifying the results in

an Excel sheet, followed by a graphical analysis and providing appropriate conclusions and

recommendations (to the various Jeans manufacturers) based on these.

1.3 Sampling Framework

1.3.1 Sample Unit

The Sample unit will comprise of Consumers from various segments of the society based on age,

sex, marital status, annual salary and educational qualification. Also, students dependent on their

family income have been made a part of the study.

1.3.2 Sample Size

Around 300 consumers from different segments of the society will be considered for the study, and

will include unmarried and married professionals, college students, et al. from the A1, A2, B1 and

B2 segments of the Socio Economic sections of the society. At this point of time, around 60

responses have been collected.

1.3.3 Sampling Method

17

The study will entail exploratory research, and non-probabilistic approach will be used for the

analysis, and most of the analysis will be done through the basic tools of averaging and similar

formulas available in MS Excel.

1.3.4 Sampling Media

Personal visits will be made to the mentioned shopping zones and a Questionnaire will be used to

interview the consumers in these areas. Unstructured interviews will also be a part of the process and

will entail a recommendable part of the study. Online interviews will be conducted for the students

in PTU JALANDHAR to assess their purchase behavior.

18

Denim Jeans Market in India

There is a definite growth in the urbanization and the spending patterns, people are willing to spend

more on themselves. Urban India already has a large high income population of more than 15.5

million households. In the last decade India's urban population increased from 25.5 % (213.3 million

in 1990) to 27.9 % (283.9 million in 2001) of the population, adding an Urban population of 70

million (Levi’s research design to Research Design). Apart from this in terms of the population mix

too, India has a very healthy percentage of young people. India has a young age profile with close to

30 % of the population currently below 15, and this population mix is projected to remain the same

till the year 2013 (Population Projections for India and States 1996-2016, Registrar General,

Ministry of Home Affairs, Govt. of India). Both these factors contribute to the fact that there is

effectively a huge market potential to tap into.

India had to wait until mid-1980s to produce denim through facilities set up by Arvind Mills and

Soma Textiles. Until then, it was dependent on imports. Denim has made deep penetration into the

teen-age market, especially in the urban areas. It was considered to be a symbol of high fashion,

necessarily not of affluence. Although most frequently used by teenagers, children and adults have

also taken to the fancy.

The industry attracted several producers with Arvind emerging as the foremost. Encouraged by

increasing demand for denim in the export and domestic markets, KG Denim and Ashima Syntex

and others entered the field. Low-end denim is used for jeans costing below Rs 500 per pair (under

brand names Newport, Lion, Claws, besides many unbranded jeans). The middle segment is mainly

used for jeans priced around Rs 500-700 (under the brand names Killer, Sunnex, Jagman, Camaro,

Jordache, Flying Machine, Moustache). The upper segment is used in high priced jeans valued at

19

more than Rs 750 or more going upto Rs 2500 and beyond. According to a study conducted in the

late 1990s, Arvind Mills’ Newport range of cotton trousers in 10 cities (5 A class and 5 B class)

covering 176 outlets was found to be most stocked (in the range of Rs 600 to Rs 1000). Cotton trousers

in the price band Rs 800-1000 was greatly in demand in Delhi. Kolkata preferred these in the region of

Rs 600 to Rs 1000 with negligible sales in trousers priced above Rs 1000. Retailers have ranked

cotton trouser brands on attributes like fabric, fabric wash, colour and style. Newport emerges the top

brand in terms of fabric quality, with 6% of retailers placing it as the top brand and 14% placing it in

the top-two categories. The popular brands were found to be Newport, Allen Solly and Easies,

Blackberry, TNG, Freelook Moustache and Lee Cooper, almost in that order.

Market Structure

20

Market segmentation

Value Segment

Expected Benefits Value for money

Price Range Below 700

Brands operating in the segment Newport, live-in, Ruff n Tuff

Standard Segment

21

Expected Benefits Quality, Comfort, style, fit, price

Price Range Rs. 700- 1200

Brands operating in the segment SF, Pepe, Signature, UCB

Premium Segment

Expected Benefits Quality, Style, Brand name

Price Range RS.1200- 1600

Other brands operating in the segment Lee, Levi’s, Pepe,Spykar, Wrangler

Super Premium Segment

Expected Benefits Style, Brand Name

Price Range 1600 above

Brands operating in the segment Lee, Levi’s, Pepe, Bossini, Guess, Diesel

Behavior factors

22

Everyday life revolves around college

Jeans being suitable for all occasions- parties, movies, hanging outs, etc

Users typically spend money on movies, music, eating out and clothes.

Active lifestyles- spend a lot of time with friends. Peer viewpoint is crucial yet believe in

thinking individually

Market Trends

Jeans are increasingly becoming almost an indispensable part of life for all youngsters.

The durability and comfort of denim, the ease of maintaining it and the look and style

associated with wearing denim are just some of the factors which have made wearing

jeans suitable on a lot of occasions especially during college life.

People wear jeans to college, for movies, for dates, while hanging out with friends.

Jeans is worn by not just the college goers but also kids, young adults, adults as well as

senior citizens. Thus, as India is becoming more westernized, the number of jeans

wearers is also increasing.

Market Growth

With the rise in the disposable incomes of the Indian consumers, people are now more

willing to spend on fashion, accessories and other lifestyle products.(refer to figure)

23

6.9 6.4

12.2

18.1

10.1

15.5

13.6

16.114.9

1.9

13% 12%

23%

34%

19%

25%22%

26%24%

3%0

5

10

15

20

> $2000 $1300 - 2000 $1000 - 1300 $500 - 1000 < $500

Annual Household Income

Mil

lio

n H

ou

seh

old

s

0%

5%

10%

15%

20%

25%

30%

35%

40%

% C

on

trib

uti

on

HH's '98 -'99 HH's '06 - '07 Contr '98 -'99 Contr '06 - '07

NCAER, ‘06-07 HH Number estimated from Urban Population

The jeans wear market in India is witnessing a growth rate of 16- 18% and is estimated to

be currently at Rs. 5000 crores (The Economic Times, May 24).

More and more people, not just from the major metros, but in cities like Meerut, Baroda

etc are becoming fashion conscious and are willing to spend extra money on clothes and

accessories. Hence there is a huge untapped market potential in tier 2 cities.

India by itself has a young age profile, with a large proportion of its population currently

under 25. This again reiterates a huge potential market given the fact that Signature is

predominantly for the youngsters.

24

Data Presentation & Findings from the Study

The data collected with the help of the questionnaire has been divided in accordance with the

“Decision Making Process” model. Below we have presented all the factors based on the model and

subsequently discussed each of them based on the data we have collected. At the same time we have

also tried to incorporate the findings based on the data collected.

Need Recognition

The starting point of any purchase decision is a customer need or problem. Need Recognition occur

when an individual senses a difference between what he or she believes to be the ideal versus the

actual state of affairs. Consumers often are willing to sacrifice some of their desires to buy products

that meet their needs and their budget, though they still might aspire to fulfill their desires at a time

in the future when they are able to afford it. In our questionnaire, we decided that the need

recognition part of the consumer’s decision making process with the help of “Annual Family

Income”, “Expenditure on Jeans”, “Frequency of Purchase”, “expenditure on Jeans” and “Reason of

Purchase”.

25

Annual Family Income

7%

19%

26%

48%

Below Rs. 1 lakh Rs. 1 lakh to Rs. 2.5 lakhs

Rs. 2.5 lakhs to Rs. 4 lakhs Above Rs. 4 lakhs

The above graph shows, that the maximum number of respondents (48%) belong to the upper family

income category. A considerable number also belong to the middle class i.e. the middle income

category (26%) while only a few respondents belong to the lower income categories.

Therefore, the choices regarding jeans and the preferences w.r.t. the buying behavior are primarily a

result from the higher and middle level income groups while the lower income groups exert a lesser

influence on the findings.

26

Frequency of Purchase

0%6%

21%

33%3%0%

37%

Once in two years

Once a Year

Twice a Year

Quarterly

Every Month

Fortnightly

When the old oneseems too old (No fixedtime)

The above graph shows a mixed response regarding the frequency of purchase of Jeans as most of

the respondents go for them as and when their old pair of jeans becomes too old (shown in the blue

part of the graph). Also a considerable number of the respondents buy their new pair of jeans

quarterly or twice a year. This indicates the market potential and the scope of many new players lies

beneath.

27

Expenditure on Jeans

1% 16%

22%

44%

17%

Less than Rs. 300 Rs. 301 to Rs. 700 Rs. 701 to Rs. 1000

Rs. 1001 to Rs. 1500 Above Rs. 1500

The above graph is in line with the annual family income which, for most respondents is above Rs. 4

lakhs per annum. Therefore, the expenditure on jeans also is on the higher side with as high as 44%

buying the jeans within the range of Rs. 1000 – Rs. 1500. Also the middle income group consumers

can be assumed to be buying in the range of Rs. 700 – 1000.

Reason of Purchase

28%

5%

25%

21%

13%6% 2%

Its comfortable Its Macho

It is long lasting (durable) It is Rough and Tough

Its in Fashion Its a fixed Weekend wear for me

Any other reason?

28

The above graph shows a mixed response from the various respondents as various respondents have

different attitudes towards jeans due to which they buy them. 25% buy them for their durable

qualities while 28% buy them for the comfort they provide and respondents also attach a rough and

tough feeling to jeans (21%). Therefore, various attitudes of the respondents have resulted in them

assigning different uses and motivations for buying jeans.

Search for Information

Once the need recognition occurs, the consumers begin searching for information and solutions to

satisfy their unmet needs. The search refers to receptivity of information that solves problems or

needs, rather than a search for specific products. Also, the length and depth of search is determined

by variables such as personality, social class, income, size of purchase, past experiences, prior brand

behavior, making rently use, they repurchase the brand with little, if any, search behavior, making it

more difficult for competitive products to catch their attention.

Sources of information about the brands

21%

22%

1%18%

28%

4% 4% 2%

Newspaper Television Radio Magazines

Friends Kiosks Roadside shops Movies

29

The graph above shows the various sources of information about the brands for the respondents and

again shows a varied response from them. Friends, TV, movies and magazines account for the

maximum information which is provided to the respondents. This also depends on the sample of the

total population that is chosen as the study area. Since in our survey, the respondents are mainly in

the 18-25 age group and are well educated, so magazines also have had a considerable account of

information that is provided to them.

Pre-purchase Evaluation of Alternatives

The next stage of the consumer decision process is evaluating alternative options identified during

the search process. In this stage, consumers seek answers to questions such as “What are my

options?” and “which is best?” when they evaluate and select from various products or services.

Consumers compare what they know about different products and brands with what they consider

most important, to narrowing the field of alternatives before they finally resolve to buy one of them.

For our analysis of pre-purchase evaluation of alternatives, we asked two questions in our

questionnaire which are: “Jeans I prefer to wear” and “Do you consider the following factors while

choosing a brand”. The second question consists of 8 parts which are relevant factors for choosing a

brand. Based on the answers we got, the following charts have been formed to better understand the

replies we got and according come to the finding from these questions.

Jeans I Prefer to Wear

The options were given which were: Unbranded, Branded and No Preference as such. Following is

the pie chart which sum up the data collected.

30

Jeans I Prefer to Wear

2%

44%54%

unbranded

no preference

branded

Finding: From the chart it is clear that although majority of the respondents (54%) preferred branded

jeans but there is a large number of respondents (44%) who don’t have any preference as such and

therefore shift frequently between branded and unbranded jeans. Only 2% respondent preferred

unbranded jeans. It clearly indicate that brand plays an important role in purchase decision of the

consumers but there is a number of consumers who are ready to shift from branded to unbranded

jeans and vice versa.

Do you consider the following factors while choosing the brand?

The factors like Quality, Brand Name, Price, Variety, Durability of Material, Durability of Colour,

Design and Convenience to Buy are important while pre-purchase evaluation of Alternatives. Hence,

we took all these factors into consideration and formed a question such that we can understand the

consumer behaviour pattern with regard to these factors. Following is a comparable chart which

shows the importance of different factors as per consumer behaviour. The options were multiple

31

choice so that whichever factor is important in decision making process, can be taken into

consideration.

Do U Consider the Following Factors while choosing the brand

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Quality

Brand name

Price

Variety

Durability of Material

Durability of colour

Design

Convenience to buy

Fac

tors

Percentage

Definitely No

Probably Not

Not Sure

Probably yes

Definitely yes

Although all factors are important in pre-purchase evaluation of alternatives, but we can observe that

the most important factor as per our finding is the quality of the product. It has got the maximum

responses and leads the chart by a big margin. Next comes design with 61% responses. Other

important factors are durability of material and variety of the product. The least important ones are

something like brand name and durability of colour. These finding force us to conclude that brand is

not a very important factor in the decision making process and if the unbranded jeans can provide

32

the consumers with quality, design etc., they can compete easily with the branded jeans. The life

examples are markets like Boring Road , Raja Bazar, etc.

Purchase

Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.  All

the decisions regard to from ‘where to purchase’ and ‘what all constitutes as a part of purchase’ is

included in this step. For example here in this case a person may have decided which brand to buy,

but this may not be enough of thinking process put into while purchasing, as now a days there are

number of options from where the same brand of jeans can be purchased from like from exclusive

showrooms, factory outlets, malls, local markets, or even retail outlets. All of these purchasing

options offer different facilities and services of their own. We have tried to analyse this by three

questions, ‘I prefer to buy my Jeans from’; ‘ buy Jeans from here because’ and ‘The purchase of a

jeans is incomplete without’ the last question helps in understanding the what are the core facilities

or inbuilt factor is linked to the buying behavior of the consumer.

First of all the first question asked to understand this step is “from where does the consumer prefer to

buy jeans from”, the results we got is shown in the following chart.

33

Of the five options people have got about from where to purchase maximum percent of people

purchase it from the exclusive showrooms of the various brands, clearly this represents the people

who purchase branded jeans, of the total number of responses 30% said they would like to purchase

from exclusive showrooms, 23% from malls and 20% approx from each retail outlet and factory

outlets. Only a small percent of around 6% said they like to purchase from local markets. The

response collected also tells a lot about the decreasing popularity of local markets and inclination of

people towards purchasing more from organised markets instead of local markets.

Now let us analyse the reasons for why there is more popularity of such exclusive showrooms and

factory and retail outlets instead of local markets

34

The most popular reasons for choosing a place of purchase are the variety of jeans the place stores,

kind of discount one can get and satisfactory past experiences, which is 30%,17% and 23%

respectively. And 16% of the people said they purchase from the place they mentioned is because of

habit they have made as they are being ‘used to it’.

One more important aspect we looked at while doing the survey was what the consumers consider as

a inherent part of purchase process, it helps in analyzing the consumer attitude and it helps in telling

the new producers which quality or area of concern should they have while manufacturing,

marketing or distributing and advertising of the jeans.

As assumed we had thought that bargaining would gain highest number of responses, but the results

had come out in a completely different way as in the pie-chart as below:

35

The highest number of people i.e. 80%, try it out in the trial room before purchasing the jeans, while

only 3% think the bargaining is required. This shows the growing inclination towards organized

retail sector again. As very few number of people now think bargaining as a inherent part of

purchase, which is assumed to be a unavoidable part of buying process. Although considerable

number of people (12%) try to get to know more about brand logo and find out weather the jeans

they are purchasing is genuine or not.

Post Purchase Behaviour of the Consumer

Consumption

Once the purchase process is over and the customer takes the possession of his product, the

consumption can occur. This consumption of the product can either occur immediately or be

delayed. How a consumer will use a product depends on his satisfaction of the purchase made. And 36

this would further determine the re-purchase of the same product in future. Now a Jeans consumer

might like to use his/ her jeans in a number of ways, for instance, Putting a tattoo on the jeans before

wearing it, or maybe tearing it to match the latest fashion. Jeans has today become one product that

most wish to have it ‘their own way’, and consequently, people tend to modify their pair of jeans to

match their outlook. This behaviour of the consumer actually is a reflection of his Attitude, his

Personality, Values and Lifestyle. Thus, one aspect that talks about some of the most critical factors

that decide the fate of any brand of Jeans in the market is that of Consumption.

From our research, we tried to analyse how the 18-26 year olds like to wear their pair of Jeans, and

the following response was observed.

While we thought that considering the age group that comprises the ‘Young and the Vibrant’ of the

society, more people would be interested in modifying their jeans before they wear it, however the

results showed something really different. Almost everyone who was surveyed made their opinion

that when they go to a shop, they have a pre-mind set of purchasing a certain style, and hence their

buying behaviour is actually aligned to the same. Also, they mentioned that today, they can get their

37

choice of design from customized markets like those of MahaRaja Complex, Baily Road, etc. Hence

they don’t feel the need of modifying their Jeans as such and would like to wear their pair in its

original form. Also, since most of the people surveyed (42%) spent around Rs. 1001-1500 for a pair

of Jeans, hence these people who comprise the Premium segment, would not like to make any

modifications to their jeans as such, and would like to go with the original look. However, since the

study comprised of people mostly from a Post Graduate course, hence a factor of seriousness creeps

in while buying or selecting a pair of Jeans. As such, there might be variations when the same study

be applied to students of an Art college or a Fashion Institute.

Post-Consumption Evaluation

Satisfaction or Dissatisfaction with the product purchased comprises this phase of Consumer

behaviour. This has a close link with the Consumption part of the entire process, and a lot is derived

from there. Satisfaction with a product is a function of the closeness between expectations and the

product’s perceived performance. If performance falls short of expectations, the consumer is

disappointed; if it meets expectations, the consumer is delighted. These feelings make a difference in

whether the consumer buys the product again and talks favourably or unfavourably about it to others.

Consumers form their expectations based on the messages received from sellers, friends, and other

information sources. The larger the gap between expectations and performance, the greater is the

dissatisfaction. Even the coping style of the consumer comes into play in this stage.

The most important part determinant of satisfaction is consumption: how consumers use the

products. The product might be good, but if consumers don’t use it properly, dissatisfaction may

occur. Also, this evaluation part of the post purchase activity is important for the consumer to

informally communicate the brand’s name to his close sphere of influence. A company might see

38

more customers on account of one satisfied consumer who might have informally advertised about

the pair of Jeans that he bought to his set of friends. Though Word-of-mouth. However, the same can

occur in the opposite sense if the consumer is dissatisfied with the product.

One more important aspect that needs to be covered here is that of Cognitive dissonance that might

occur due to the rethinking of the consumer about the product after the purchase, regarding the

correctness of the decision taken by him in purchasing that particular product (or brand). However, it

has also been noticed that the higher the price, the higher is the Post purchase regret or Cognitive

dissonance. When we did our study, we tried to get an overview of some of these aspects as well.

Jeans, as can be seen, is an object that has taken such a position insociety where it has become an

object of status and show-off. A branded pair of jeans and sandals is what most young college-goers

look forward to while making a purchase (from our survey). Buyers are motivated enough to discuss

their latest bought Jeans with their friends, and would like to wear it on and show it to their group.

However, what is interesting to note here is that most of the consumers would not like to recommend

the same shop to their friends if the last product they purchased from there does not match up to its

39

standards. Thus it can be seen that the Buyer is becoming more and more specific each day, and

would like to have only the exact quality, the exact look he demands from the seller. Because of high

competition in the market, it has thus become exteremely important for marketers to deliver the best

service to their clients, so as to improve their post purchase evaluation of their product. After all,

this is the stage that decides the future repeat sales of the product!

With more and more brands making their foray into the market place, the playground has become

crowded with marketers who would like to come up with a new design, a new variety every other

day. This gives the consumer a wider variety to choose his pair of Jeans from, and thus creates a

problem for the repeat purchases at the same time (for the same brand). Now here, around 70% of

the respondents said that they would like to try out other brands and new designs available in the

market. With nearly all the premium segment Jeans sellers falling under the same price range (for

their Jeans), Jeans today is reaching the level where people are bothered more about having different

brands in their closet instead of one single brand. However, Customer loyalty might not be that bad

in a situation as it seems, as around 19% of the respondents did say that they would go for a new

40

brand only if the quality served by their earlier brand is inconsistent. Hence, though quality does

seem to matter a lot in the repeat purchase process, it is the Variety-seeking behaviour of the

customers that takes a front seat in today’s Denim scene.

Divestment

It becomes extremely important for any marketer to understand how his customers are disposing of

his product. A key driver of sales frequency for any organization is the product consumption rate. It

is true that in a product like Jeans, when someone wishes to purchase a Good quality branded pair,

he might actually be looking towards a durable product. However, in today’s fast changing fashion

scenario, a person might change his entire wardrobe within a year as well! So, the divestment of

such a product as Jeans also becomes important in the aspect that the marketer should always look

out for opportunities to increase the frequency of purchase of his product, and fill up the emptying

wardrobe as soon as possible.

Also, the marketer needs to know how exactly a consumer disposes off his product. The reason for

this being concerns like whether the product is recyclable or not, ecological concerns, etc.

While talking about a pair of Jeans, the patterns of disposing of a product might seem pretty

interesting.

41

It was never expected that a massive 41% of the total respondents would like to donate their old

Jeans in charity. Also, 37% said that they would throw their jeans away. This is a clear indication of

the fact that there is definitely some good news for marketers. In the first case, it can be assumed

that since people wish to donate their jeans in charity, then definitely that will be done before the

jeans gets too old, and is still in the wear-able condition. In the second case, people would like to

throw away their old pair and would like to get a new pair of jeans as soon as possible. This way, the

chances of repeat purchase increases for the customers, as well as there is good news for the

marketers in having a faster demand for their products in the market.

It can also be seen that around 13% people wished to make some changes in their pair of jeans and

wear it again. This also shows the conservative aspect of the usage behaviour of the Indian consumer

to some extent, wherein one would try to locate some good modification that could be done, making

the old pair wear-able again. Hence marketers should look forwards to changing the behaviour of

these consumers, converting them to fast switchers to get better response in the market.

42

Thus, it can be seen how important is the Post purchase behaviour of a consumer in his decision

making process, and a comprehensive study of the same helps the marketer to make his plans in a

much more efficient manner.

43

Recommendations

As per the studies conducted and the responses analysed we would suggest the following

recommendations for the producers and sellers of the denim.

1) In general the frequency of buying denim jeans is low and hence the durability of jeans

becomes an important factor in decision making process. Manufacturers need to produce

durable jeans, so that it is long lasting.

2) At the same time manufacturers should keep in mind that there is a large base

for frequent buyers. For them the durability is of not much importance and style and design

becomes important for such consumers. To cater this base, they need to position their

products in premium segment. Manufacturers need to decide which positioning is more

suitable for them.

3) The rough and tough characteristic of denim jeans also plays an important role

in decision making process for consumers. While the comfort is also important and can’t be

compromised.

4) Print and visual advertisements play an important role in the search of

information. The branded jeans should mainly use these two mediums to advertise. At the

same time references also plays an important role in deciding which brand to buy. If the

product is good it will obviously get references from there present users. If a new brand

need to be launched then advertising though the print and visual medium is advisable.

44

5) The advertisement expenses should not be cut down as we have seen the trend

of purchase of those particular brands whose recall is maximum and which in turn is result

of adequate advertising.

6) Quality, design and Durability are the most important factors in the decision

process and hence, manufacturers should keep these factors in mind while producing the

denim jeans.

7) Consumers prefer to try more than one brand of jeans and generally they don’t

stick to a single brand. But they can return back if there experience with new jeans is not

good. This observation is a good sign for the companies who are planning to enter in this

market as the chances are high that the consumers will try out their brand if the company is

able to attract their attention.

8) Unbranded jeans will exist in the market as a large percentage (44%) of

respondents are not sure whether they want a branded jeans or unbranded. Unbranded jeans

provide consumers with much more designs at low cost and there will always be a part of

consumers who will prefer unbranded jeans over branded even in standard and premium

segments.

9) For any shop or place of sale a ‘trying room’ is a must as almost all consumers

take trying the jeans as a essential part of the purchase, while the seller also should try not

to differ in prices to various consumers, a standard price should be kept for the same kind

of jeans, so as to generate consumer faith in pricing.

45

References/ bibliography

1) Consumer Behavior by Blackwell, Miniard and Engel; Thomson South-Western (2007)

2) Marketing Management by Kotler & Keller: Pearson Education 12th Edition (2006)

3) www.ibef.org

4) www.etintelligence.com

5) www.consumerpsycologist.com

6) www.marketingpower.com

46

Appendix

Project Questionnaire (Sample)

Questionnaire to assess the purchase behavior of Jeans buyers in the Bihar

1. Name ____________________________________________

2. Age ______________

3. Annual Family Income

a. Below Rs. 1 lakh

b. Rs. 1 lakh to Rs. 2.5 lakhs

c. Rs. 2.5 lakhs to Rs. 4 lakhs

d. Above Rs. 4 lakhs

4. Occupation ________________________________________

5. Qualification

47

a. Up to 10th (Matriculate)

b. Up to 12th (Senior Secondary)

c. Graduate

d. Post Graduate

e. Ph.D

f. Any Other (Please specify)

6. Brands of Jeans that I know

a. ___________________________________

b. ___________________________________

c. ___________________________________

d. ___________________________________

e. ___________________________________

7. The Jeans I prefer to wear

a. Unbranded

b. No preference as such

c. Brand __________

8. Where did you get information about the brand?

a. Newspaper

b. Television

c. Radio

d. Magazines

e. Friends

f. Kiosks

g. Roadside shops

h. Movies

9. I purchase Jeans

a. Once in two years

b. Once a Year

c. Twice a Year

d. Quarterly

48

e. Every Month

f. Fortnightly

g. When the old one seems too

old (No fixed time)

49

10. This is what I spend on a pair of Jeans

a. Less than Rs. 300

b. Rs. 301 to Rs. 700

c. Rs. 701 to Rs. 1000

d. Rs. 1001 to Rs. 1500

e. Above Rs. 1500

11. I prefer to buy my Jeans from

a. Exclusive Showrooms

b. Factory Outlets

c. Malls

d. Local markets (Patna Market, Hatua Market, etc.)

e. Retail Outlets (like Megamart)

12. I buy Jeans from here because

a. My friends also buy it from here

b. The shop gets me the best discounts

c. Its close to my place

d. My past experience was good here

e. It houses a wide variety of Jeans

f. I’m just used to it

g. Any other reasons (please specify ) _________________

13. I buy Jeans because

a. Its comfortable

b. Its Macho

c. It is long lasting (durable)

d. It is Rough and Tough

e. Its in Fashion

f. Its a fixed Weekend wear for me

g. Any other reason?

14. When my Jeans gets too old, I

a. Give it to a Sibling

b. Make some changes and wear it again

c. Donate it (Charity!)

d. Return it to shops (Exchange offers)

e. Throw it away

f. Any other?

15. While purchasing Jeans

a. I would collect a lot of information before buying one

b. I make unplanned visits to stores

c. Many times I buy Jeans even when I would never have thought of

16. The purchase of a jeans is incomplete without

a. Bargaining

b. Brand awareness and Logos

c. Trying it out in a Trial Room

d. Seeing each and every variety available in the Shop

e. Friends

17. Post purchase

a. I like to share my experience with my friends

b. I would like to show off my newly bought possession

c. Never recommend a shop if the last pair doesn’t match up to its standards

18. After buying

a. I will put a tattoo on the jeans

b. I will tear it to match the latest movie style

c. I will design it and then wear it

d. Wear it as it has been purchased

19. While repurchasing

a. I’ll buy the same brand

b. I’ll buy a new one

c. I won’t, at any cost, buy the previous brand

20. Do u consider the following factors while choosing the brand

1) quality 1 2 3 4 5

2) brand name 1 2 3 4 5

3) price 1 2 3 4 5

4) variety 1 2 3 4 5

5) durability of material 1 2 3 4 5

6) durability of colour 1 2 3 4 5

7) design 1 2 3 4 5

8) convenience to buy 1 2 3 4 5

Mark 1 for definitely yes

2 for probably yes

3 for not sure

4 for probably not

5 for definitely not

Thank You