a A Major Research Project Report On “CONSUMER BEHAVIOUR” For The Partial Fulfillment Of Master of Business Administration 2013-15 SUBMITTED TO :- SUBMITTED BY:- Dr. Namrata Gupta Nipul Sharma H.O.D. of Mgmt. Dept. MBA IV Semester Roll No. 3193760 MAHARANA PRATAP COLLEGE OF TECHNOLOGY, GWALIOR (M.P.) Putli Ghar Road, Near New Collectorate, Gwalior, Madhya Pradesh 474006
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a
AMajor Research Project Report
On“CONSUMER BEHAVIOUR”
For The Partial Fulfillment OfMaster of Business Administration
2013-15
SUBMITTED TO :- SUBMITTED BY:-Dr. Namrata Gupta Nipul SharmaH.O.D. of Mgmt. Dept. MBA IV Semester
Roll No. 3193760
MAHARANA PRATAP COLLEGE OF TECHNOLOGY, GWALIOR (M.P.) Putli Ghar Road, Near New Collectorate, Gwalior, Madhya Pradesh 474006
DECLARATION
This is to declare that the Major Research Project Report has been
accomplished by me and being submitted in partial fulfillment of
requirement for the award of the Degree of Master of Business
Administration from Maharana Pratap College of Technology,
Gwalior.
The work has not been submitted by me anywhere else for the
award of any degree or diploma.
Date: Nipul Sharma
Place: MBA IV Semester
GUIDE CERTIFICATE
It is certified that the Major research Report entitled,
“CONSUMER BEHAVIOUR” is submitted by Mr. Nipul
Sharma for partial fulfillment for the award of the
degree of Master of Business Administration of
MAHARANA PRATAP COLLEGE OF TECHNOLOGY,
GWALIOR (M.P.).
Date : Dr. Namrata Gupta
Place: H.O.D. of Management Dept.
ACKNOWLEDGEMENT
It gives me immense pleasure to express my deep
sense of gratitude to Dr. Namrata Gupta, H.O.D. of
Management Dept., MAHARANA PRATAP COLLEGE OF
TECHNOLOGY, GWALIOR for his valuable guidance and
consistent supervision throughout the course.
Finally I am indebted to our other faculty
members, my friends and my parents who gave their
full-fledged co-operation for successful completion of
my project.
It was indeed learning experience for me.
Nipul Sharma
MBA IV Sem.
TABLE OF CONTENTS
CHAPTER 1: -INTRODUCTION /CONCEPTUAL FRAMEWORK
CHAPTER 2: -LITERATURE REVIEW
-RATIONALE
-OBJECTIVE
CHAPTER 3: - RESEARCH METHADOLOGY
-UNIVERSE
-SAMPLE
-HYPOTHESIS
-RESEARCH DESIGN
-TOOLS FOR DATA COLLECTION
-TOOLS FOR DATA ANALYSIS
CHAPTER 4: - RESULT AND DISCUSSION
CHAPTER 5: -CONCLUSIONS
-IMPLICATIONS
-LIMITATION
-SCOPE FOR FUTURE WORK
REFERENCES: -BIBLIOGRAPHY
-WEBLIOGRAPHY
ANNEXURES: -QUESTIONNAIRE
Chapter – 1
INTRODUCTION/CONCEPTUAL FRAMEWORK
Introduction/Conceptual Framework
The effect of celebrity endorsement on consumer buying behavior, with special
reference to bike segment undertakes a applied research in which the study of
effect of celebrity use in advertisements of bike. This study will focus on the
impact of celebrity on consumer buying behavior and their impact on consumer
decision.
Celebrity endorsement is a special type of advertisement which includes a famous
person from film fraternity, athletes, and sports, modelling world etc. it helps in
promoting the product brand and also increasing the sales of the product. Celebrity
endorsement not only has developed in recent years, it is being used from the past
for promoting the product. This type of marketing strategy is used to promote the
product and has proved in itself a boon in advertising world. It is mainly used to
influence the consumer who comes across these advertisements as it is accessed in
the consumers mind for many days even after the advertisement. Celebrity
endorsement has not always helped in promoting the product but it has been
developed considerably over the years. It is very expensive to endorse a celebrity
for a product but in the long run it has helped in increasing the sales of the product.
Celebrities are also interested in endorsing themselves in the product as they get
compensation for it and their image is been developed considerably. Businesses
have long sought to distract the attention of the potentials customers that live in a
world of ever increasing commercial bombardment. Everyday consumers are
exposed to thousands of voices and images in magazines, news paper, and on
billboards, websites, radio and television .Every brand attempts to steal a fraction
of an unsuspecting person‘s time to inform him or her of the amazing and different
attributes of the product at hand.
Because of the constant media saturation that most people experience daily, they
eventually become numb to the standard marketing techniques.
The study is to be done within the purview of certain variables which will clearly
underline the factors which affect the consumer buying decision and would help in
the study of effect of celebrity endorsement on consumer buying behavior & the
corresponding factors involved in it.
There are various variables (factors) which is affect the decision of consumer use
of celebrity in advertisements.
Various studies suggest that the overall cost of attracting new customers in the
market is much higher as compared to retaining existing ones, thus companies
must seek both to develop an effective and efficient communication with their
existing consumers along with attracting potential customers utilizing its marketing
mix.
It is a known fact that the best endorsements achieve an eclectic balance between
the product (brand) and the celebrity. Giving a brand a 'face' is more than just a
marketing strategy to increase sales or gain market share, it is a decision that can
change the future of the brand forever.
Choice of the celebrity, hence, is of utmost importance and is usually done based
on many different parameters - appeal, looks, popularity or even just a fantasy
figure to endorse a brand. India is a country where people are star-struck by film
stars, cricketers, politicians, and even criminals. Why? Populations of 1 billion and
ticking, everyday people need something or someone to look up to. A sense of
security, admiration, comfort, familiarity, and above all, someone they aspire to be
at some hidden level in their lives. And clever marketers leverage this very
celebrity appeal and are successfully carrying out their jobs by giving the bottom
lines of all the brands what they want - profit, market share and even recall. But
how much star power is too much? "Does Amitabh really use Tide," asked a 6 year
old to her mother. Her mother laughs and says, "No way, just a gimmick." What
does that do to the brand?
Now, despite the potential benefits derived from celebrity endorsements, they
increase a marketer's risk manifolds and should be treated with full attention and
aptitude. A brand should be cautious when employing celebrities to ensure promise
believability and delivery of the intended effect. The growing importance of
mythical characters as celebrities and their sway over the target segments are
ample proof of public demand for icons to look up to. As the celebrities traverse
from a mere commercial presence to public welfare message endorsements, a
whole new dimension is added to this process and helps us in achieving a holistic
view of the impact which celebrities generate in every sphere and segment through
their well-versed endorsements.
Does anyone buy a product because a Bollywood or TV actor/actress stands up and
reads a script in somewhat convincing manner? Are their distinctions in how
consumers perceive these types of endorsements and respond to them?
What happens when a celebrity endorser gets involved in a public scandal, or
worse, dies? Will the product lose consumer support or perish?
The most important thing to remember is that putting a celebrity in an ad is not an
idea in itself. Unfortunately, this is how most celebrities are being used in Indian
advertising, where they just become a prop. Ideally, there should be an idea that
makes the celebrity relevant to the product and the consumer.
The four Qs:
Quick saliency: It gets cut through because of the star and his attention getting
value. Goodlass Nerolac has ensured high saliency for its brand with the inclusion
of Amitabh Bachchan in its advertising.
Quick connect: There needs to be no insight but the communication connects
because the star connects. Sachin, Shah Rukh and their ilk's ensure an easy connect
for Pepsi with the youth.
Quick shorthand for brand values: The right star can actually telegraph a brand
message fast without elaborate story telling. Kapil Dev and Sachin Tendulkar seem
to have done that successfully for Boost in the early '90s. And helped to
differentiate it in the malted beverages market.
Quick means of brand differentiation: In a category where no brand is using a
celebrity, the first that picks one up could use it to differentiate itself in the market.
Boost did it in the malted beverage category.
In general celebrity endorsements are impelled by virtue of the following motives:
Instant Brand Awareness and Recall.
Celebrity values define, and refresh the brand image.
Celebrities add new dimensions to the brand image.
Instant credibility or aspiration PR coverage.
Lack of ideas.
Convincing clients.
Types of Celebrity Endorsements
Celebrity branding has many aspects. A slight change in the type of branding used
can result in either a great success or a dismal failure. Celebrity branding falls into
five general categories:
Testimonial: The celebrity acts as a spokesperson for the brand.
Imported: The celebrity performs a role known to the audience.
Invented: The celebrity plays a new, original role.
Observer: The celebrity assumes the role of an observer commenting on the
brand.
Harnessed: The celebrity's image is integrated with the ad's storyline.
Objectives of Marketing Communications
Defining the objectives of the advertisements is the first step. In general, there are
four major objectives for any advertisement. Note that not all advertisements need
to have all the objectives.
1 Establish the product need
stablishing a need for a product or a product category is the necessary first step.
This is more important in new-to-world category of products In Indian context,
consider the advertisement for Polio Immunization drive - the TV advertisement
featured Amitab Bachan telling that immunization is a must for every child - while
people suffering from polio are shown in the background along with healthy kids.
This advertisement used a celebrity to create the need for polio immunization.
Another good example is Toyota’s advertisement of Innova in India. The TV
advertisement prominently shows Amir Khan playing different roles while
traveling in an Innova. The different roles - establish the need for such a big car in
India. ( Note that Indian car market is dominated by small cars - which can seat
only four adults, Toyota wanted to establish the need for a 8 seater car in India)
2 Create Brand Awareness
Once the need for a product is established, customers must be able to associate the
brand with the product category. For example iPod is strongly associated with
portable MP3 players, Nike with sports shoes etc.
A classic example of this is Nike’s use of Michael Jordan advertising for Nike.
This advertisement instantly created a strong association of Nike with basketball
shoes.
3 Set customer expectations
Brand value comes from the customers experience with the product. If the product
meets or beats his expectations, then a positive brand image is created, else a
negative brand image is created. Therefore it is essential to set the customer
expectations accordingly. This is most common in established consumer products -
Beauty products, household cleaning products, food products etc.
4 Create a purchase intention
These are marketing promotion advertisements - Buy one, get one free, or get
additional discounts if you buy within a particular date etc.. The sole purpose of
such communication messages is to encourage customers to buy immediately or
within a short period after seeing Use of celebrity endorsements to create a
purchase intention has been very limited. This is mainly because such
advertisements adversely affect the personality brand value of the celebrity. Being
associated with a discount deal is not favorable image for the celebrity and the
customer.
Variable definitions:-
Advertising
Advertising is any paid form of non personal presentation and promotion of ideas,
goods, or services by identified sponsor.
Consumer
Consumers as individuals generally purchase products or services for personal
consumption for his/her own use, household or gift. It means they are identified as
end users.
Celebrity
McCracken's (1989) defines a celebrity as, "any person who enjoys a public
recognition and who utilizes this recognition on behalf of any consumer product by
coming along with it in an advert.” As per (Friedman and Friedman, 1979), a
celebrity is an individual who is a ‘Globally famous and renowned icon’ among
populace in cosmopolitan societies. He can be an entertainer to the public, a movie
superstar, a television actor or a sportsman, etc owning special entertaining
qualities respectively.
Chapter- 2
Chapter 2: Review of Literature, Rational and Objectives