Consumer Behavior Amway
Consumer Behavior Amway
PROJECT REPORT
ON
BY
MR. SANKATMOCHAN SINGH
UNDER GUIDANCE OF
DR. FAHIM SIDDIQUI
GUIDE’S CERTIFICATE
This is to certify that MR. SANKATMOCHAN SINGH has
original work and not copied from any source. Also this report has not been
submitted earlier for the award of any Degree of Awadhesh Pratap Singh
University, Rewa.
2
VINDHYA INSTITUTE OF MANAGEMENT &
SCIENCE,
SATNA (M.P.)
DECLARATION
original work.
The matter presented in this report has not been copied from any
way the university authorities deem to be fit. Also this report has not been
3
VINDHYA INSTITUTE OF MANAGEMENT &
SCIENCE,
SATNA (M.P.)
ACKNOWLEDGEMENT
4
Mr. Sankatmochan Singh
TABLE OF CONTENTS
4 Objectives 23-24
8 Limitations 48-49
9 Conclusion 50-51
10 References 52-53
Annexure
11 54-56
Questionnaire
5
CHAPTER-I
INTRODUCTION OF PROJECT
6
INTRODUCTION:
The most crucial issue for the marketers is to identify the needs of the
consumers. Only the identification of needs is of no value unless and until this is
transformed in to a meaningful and appropriate satisfiers. For this whole process of
converting needs into actual satisfaction one needs to understand the complete make up
of consumer’s mind, and this process is known as consumer behaviour. Let’s also
discuss some of the definitions of consumer behaviour.
Wells and Prensky defines that Consumer behaviour is the study of consumers as
they exchange something of value for a product or service that satisfies their needs.
Hawkins, Best and Coney describes “The field of consumer behaviour is the
study of individuals, groups, or organisations and the processes they use to select,
secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and society”.
The study regarding consumer behaviour can be divided into two parts i.e.
consumer buying dynamics and dynamics of business buyers.
7
CONSUMERS’ BUYING DYNAMICS
Let’s discuss in brief the various determinants of consumer behaviour. So, its
very important for the marketers to have a close eye on this dynamic process of
motivation.
8
Personality: Personality is defined as those inner psychological characteristics that both
determine and reflect how a person responds to his environmental stimuli. Personality is
enduring and ensures that a person’s responses are consistent over time. But personality
can not be considered as a unified whole, for that purpose different personality traits are
to be studied by the marketers. For example, dogmatism is a personality trait that
measures the degree of rigidity among individuals. If a person is highly dogmatic, it’s
very difficult to convenience him regarding the innovative products and brands. They
are move likely to choose well established brands and can not be convinced by
celebrities in the advertisements. Rather these kinds of people are influenced by the
authoritative appeals. On the contrary, those who possess the trait of innovativeness are
move receptive to new products, new services and new practices. They are prone to
newer experiments. There could be some other personality traits like inner directed
consumes and other directed consumers. So, on the basis of these personality traits, the
process of segmentation can effectively be performed.
Industrial organisations do not engage only in selling. They also buy certain kind
of things like materials, manufactured parts, plant & equipments and different services
etc. Therefore, they require the services of other organisations and such organisations
need to understand these organisations’ needs, resources, polices, and buying
procedures. So, in this section we will examine few questions like-what is business
market and how it differs from consumer market, what kind of buying situations occur
and who involves in the buying business forecast etc. Let’s look into these questions one
by one.
S.J. Skinner defines “Organisational buying behaviour refers to the actions and
decision process of producers, resellers, and governments in deciding what products to
buy”.
9
from the other organisation and the providers identify the need for products and services
and the receivers identify, evaluate, and choose among alternative brands and suppliers.
1. Problem Recognition: Like any other decision-making process, the first stage of the
organisational buying decision process involves problem recognition, where one or more
persons recognise a problem. It may occur under a variety of circumstances. For
example, the sales manager and office manager of an office play a key role in
recognising the need to add computers to their office. Recognition of this problem,
however, can come up in several ways. In this particular instance, a continuing problem
between field sales agents and internal administrative staff may lead the office manager
and sales manager to recognise the problem. The continuation of these sources of
influence eventually leads to an increased level of importance and the subsequent stage
of information search.
2. Information Search: Information search can be both formal and informal. Site visits
to evaluate a potential vendor, laboratory tests of a new product or prototype, and
investigation of possible product specifications are part of formal information search.
Informal information search can occur during discussions with sales representatives,
while attending trade shows, or reading industry specific journals. Business buyers
search for information both to help make the best decision and to support their actions
and recommendations within the organisation.
10
A second stage of organisational decision making could involve other decision rules
such as disjunctive and lexicographic etc. In the disjunctive decision rule, a minimum
level of performance for each important attribute is established. All brands that surpass
the performance for any key attribute are considered acceptable. The lexicographic
decision rule requires the business buyer to rank the criteria in order of importance. The
buyer then selects the supplier/product that performs best on the most important
attribute. If two or more brands tie on this attribute, they are evaluated on the second
most important attribute. This process is further complicated by the fact that different
members of the decision-making unit have different evaluation criteria.
4. Purchase and Decision Implementation: Once the decision to buy from a particular
organisation has been made, the method of purchase must be determined. From the
seller’s point of view, it means how and when they will get paid. In many cases,
payment is not made until delivery. Others involve progress payments. For a
construction or builders’ firm that takes years, the method of payment is critical. On
international basis, purchase implementation and method of payment are even more
critical.
Customer behavior study is based on consumer buying behavior, with the customer
playing the three distinct roles of user, payer and buyer. Research has shown that
consumer behavior is difficult to predict, even for experts in the field.
12
13
WHO IS CONSUMER?
14
CHAPTER-II
COMPANY PROFILE
15
COMPANY PROFILE:
What is an Amway?
• The word Amway is an abbreviation for American Way and it was coined
in 1959 by the company founder Jay Van Andel and Richard Devos.
• For easy remembrance the name of the company was made short it into
Amway and it has been registered as a corporate name and also as their
trademark.
• Mostly, the products are based on Health, Beauty and Home care products.
16
Introduction :
Amway India provides free and unlimited training to all its distributors to
help them grow their business. Amway India conducted over 34,000
training sessions during in the past 12-months with an attendance of over
1.5 million Amway Business Owners and prospects.
17
CHAPTER-III
REVIEW OF LITERATURE
18
REVIEW OF LITERATURE:
The essence of this approach is critical for organisational success, so that they can
have a better understanding of their customer behaviours (Solomon et al., 2006).
The physical action or behaviour of consumer and their buying decision every
day can be measured directly by marketers (Papanastassiu and Rouhani, 2006).
For that reason many organisations these days are spending lot of their resources
to research how consumer makes their buying decision, what they buy, how much
they buy, when they buy, and where they buy (Kotler, Amstrong, 2001). To get a
well coherent result, organisations normally looked at these behaviour base their
analysis on difference conceptions; whether customers buying behaviour were
measured from different perspectives, such as product quality and better service,
lower price structured etc (Papanastassiu and Rouhani, 2006)
Different theories and researchers have claimed that when organisation fully meet
all aspects of its customer needs, the result enhances their profitability
(Chaudhuri, 2006), and also enable them to develop a better tackling strategies for
consumer (Asseal, 1998). Possibly, the most challenging concept in marketing
deals with the understanding why buyers do what they do and what method or
philosophy are they using to evaluate the product after the transactions and what
might be the effect on future transaction (Schiffman, 2004). The reason why
marketer chooses to learning about consumers” buying behaviour is, from a
business perspective; to be able to be more effectively reach consumers and
increase the chances for success (Sargeant & West, 2001). Therefore the field of
19
consumer behaviour has take a tremendous turn in the commercial world and
became the fundamental concepts of achieving company goal (Schiffman and
Kanuk, 2007).
More recently, different researchers and author have given their definition and
meaning of consumer behaviour. For Michael R. Solomon (2001) consumer
behaviours typically analyse the processes of group selected or individual
purchases/dispose of product, service, concept or experiences to satisfy their need
and desires. Additionally, Kotler (1996) suggested that consumer behaviours have
a huge impact in a firm marketing decision making process every year. There is a
risk that what a consumer does will inflict on his or her behaviour and generate
consequences. (Snoj, Pisnik Koda & Mumel, 2004). The user and the purchaser
can be different person, in some cases; another person may be an influencer
providing recommendations for or against certain products without actually
buying or using them (Solomon 1999; Solomon et al. 1999).
In this case, most of the large consumer electronics retailers tend to gathered
more information about customers motivating factors and what influences their
buying behaviours Solomon & Stuart (2000).
20
manufacturing products, in case they invent a new technology electronics
products or audio-video equipment that is too expensive.
This type of buying behaviour also has high consumer involvement. In terms of
expensive and infrequent purchase, consumer also undergoes reducing
dissonancy behaviour. It is extremely difficult for consumers to differential
among brands in this type of buying behaviours (Kotler, Wong, Saunders,
Armstrong, 2005). Differentiating Dixons electronics products/equipments in the
same store from PCWorld or Currys is a daunting task and consumer buying
these products may encounter dissonance reducing buying behaviour, as
electronics are usually expensive and self-expressive. Consumer may easily
assume that the available electronics brands in the store/market within a certain
price range to be of the same quality. Then if the product does not meet
customers’ expectations, it will result to consumer to experience post purchase
dissonance (after sales discomfort) (Kotler, Wong, Saunders, Armstrong, 2005).
However, some believed that if the consumer persistently purchasing the same
product repeatedly, it becomes habit and their mindsets and perceptions changes
overtime about the brand and the provider (Cohen and Manion, 1987). This
conception will portray the consumer to have unconscientiously developed a
brand loyalty to that particular brand due to the consumer regular buying habits
(Cohen and Manion, 1987).
21
Variety Seeking Buying Behaviour
22
CHAPTER-IV
23
OBJECTIVES:
The research is based on observation of the sales promotion. This kind of research
helps to increase the sales techniques, method as well as the sales margin of the
product in a company.
24
CHAPTER-V
RESEARCH METHODOLOGY
25
RESEARCH METHODOLOGY
Research in common parlance refers to the search for knowledge. It can also be defined
as scientific and systematic search for pertinent information on a specific topic. In fact,
research is an art of scientific investigation. Research is a voyage of discovery. It is also
said to be the pursuit of truth with help of study, observation, comparison and
experiment.
The role of research in several field of applied economics weather related to business or
to economy as a whole, has greatly influenced in modern times. The increasing complex
nature of business and government has focused on the use of research in solving
problems.
According to Kerlinger, “Research is a systematic, controlled, empirical and critical
investigation of hypothetical propositions about the presumed relation among nature
phenomenon.
Characteristics of Research:
Research objectives:
RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the Research purpose with economy in
procedure. In fact the Research design is the conceptual structure within which Research
is conducted: it constitutes the blueprint for the collection measurement and analysis of
data.
It must be able to define clearly what they want to measure and must find adequate
methods for measuring it along with a clear cut definition of population wants to study.
Since the aim is to obtain complete and accurate information in these studies, the
procedure to be used must be carefully planned. The research design must make enough
provision for protection against bias and must maximize reliability with due concern for
the economical completion of the search study.
Descriptive research is adopted for this study. It includes surveys and fact
finding enquires of different kinds. The major purpose of descriptive research is
description of the state affairs as it exists at present. The main characteristic of this
method is that the researcher has no control over the variables. He can only report what
has happened or what is happened.
27
Research Design.
Sampling.
Sample size
Sampling: Sampling studies are becoming more and more popular in all types of mass
study. The result of sampling has attained a sufficiently high standard of accuracy.
A sample of 50 respondents was chosen – the selection was made through the
combined approach of Random Sampling.
Sample size: The sample sizes for the survey of consumer were about 50 which were
covered Satna city.
Research Design: Research design is purely and simply the frame work or plan for a
study that guides the collection and analysis of the data.
I have chosen Descriptive Research Design.
Every type of research requires two types of data to be collected to reach up to any
conclusion. As the topic was concerned with “effective of sales promotion” the primary
and secondary data is very much important.
Primary Data: Primary data are those data which are directly obtained from people by
approaching them individually; primary data are generated when the researcher
employing mail questionnaire, telephone surveys, personal interviews, observations &
investigates a particular problem at hand.
Secondary Data: Secondary data, on the other hand, includes those data, which are
collected in the past for other research work & are being used in current project work.
Sample Design: The sample of the research has been taken from Satna Region in M.P.
28
CHAPTER-VI
DATA ANALYSIS & INTERPRETATION
29
DATA ANALYSIS & INTERPRETATION:
Data analysis is 5th most important step of research process. When we have collected the
data after then we have analyze the data. Data analysis is a process for analyzing the
data.
There are many statistical tools used for data analysis, such as:-
Pie chart
Bar graphs
Cluster average
Percentage method
Tabulation chart
In this project we have used pie chart cylinder & chart for data interpretation.
Gender:
a. Female
b. Male
Interpretation: From the above chart it is clear that a maximum of 75% female
are using Amway products most & 25% male using Amway products.
30
Occupation
a. Student
b. Employee
c. Business
d. None of them
Interpretation : From the above chart it is clear that 53% people whose
occupation is employee are using Amway products & 15% people are students &
5% are in business.
31
Which brand comes to mind, when you think of health along with beauty
care products?
a. Amway
b. Lakme
c. Yardley
Interpretation : From the above chart it is clear that people are having 75% trust
on Amway products as compared to others.
32
a. Yes
b. No
Interpretations: From the above chart it is clear that 65% people heard about
Amway products & 15% people were not heard about Amway products.
33
a. Yes
b. No
Interpretation: From the above chart it is clear that 72% people are using
Amway products & 7% people not using Amway products.
34
a. Good Cleanser
b. Good Moisturizer
c. Good Deodorizer
d. All the above
Interpretations : From the above chart it is clear that 55% people wants good
moisturizer in Amway soap & 15% people want good cleanser 5% want good
deodorizer.
35
a. Conditioner
b. Oil
c. None of them
Interpretations: From the above chart it is clear that 74% people are
using Amway conditioner after washing their hairs & 16% are using oil.
Interpretations: From the above chart it is clear that 75% people are using
persona soap which is the Amway products.
37
a. There is a change
b. No change
c. Not observed
Interpretation: From the above chart it is clear that 67% people are finding
changes after using soap as compared to other soap.
38
a. Yes
b. No
Interpretations: From the above chart it is clear that 69% are using satinique
shampoo 11% people are not using this shampoo.
39
a. Good
b. Medium
c. Satisfactory
Interpretations: From the above chart it is clear that 65% people’s opinion for
shampoo is good & 19% have medium opinion & 16% people’s have satisfactory
opinion.
40
Interpretations: From the above chart it is clear that 54% people’s opinion for
soap is good & 30% have satisfactory opinion & 16% have medium opinion.
Interpretations: From the above chart it is clear that 61% people are satisfied
after using Amway products & 10% people having medium satisfaction.
42
a. Quality
b. Price
c. Others
Interpretation: From the above chart it is clear that 69% people are using
Amway products because of its quality & 6% people are using because of its
price.
43
a. Yes
b. No
Interpretations: From the above chart it is clear that 65% people are interested to
suggest others about Amway products whereas 12% people are not agreed.
44
What are the important factors that influenced you to buy the Amway
Products?
a. Personal choice
b. Friends
c. Advertisement
d. Internet
Interpretations: From the above chart it is clear that 37% people uses Amway
products due to friends & 17% people uses due to personal choice.& 14% due to
advertisement.
45
CHAPTER-VII
FINDINGS & SUGGESTIONS
46
FINDINGS AND SUGGESTIONS
4. 37% people uses Amway products due to friends & 17% people uses due to
personal choice & 14% due to advertisement.
5. 65% people are interested to suggest others about Amway products whereas 12%
people are not agreed.
SUGGESTIONS
The company should provide some sales promotional tools like gifts, discounts
to the dealers who can give discount to the consumers and increase the sales.
47
CHAPTER-VIII
LIMITATIONS
48
LIMITATIONS
Due to time constraints the survey was conducts over 50 workers only.
Accuracy of the result is less due to small sample size, hence the study provides
in research work to collect data.
49
CHAPTER-IX
CONCLUSION
50
CONCLUSION
Psychological factors are internal forces within people that affect buying
decisions. These factors are motives, perception, learning and personality etc.
Motivation research involves analysing the major motives that influence buying
behaviour. Perception is the process by which an individual selects, organises and
interprets information inputs to create meaning. An attitude is a person’s overall
feeling towards some object.
51
CHAPTER-X
REFERENCES
52
REFERENCES
BOOKS REFERRED
Websites:
www.google.com
www.amway.com
53
CHAPTER-XI
ANNEXURE
54
QUESTIONNAIRE FOR CONSUMER BEHAVIOR
Sankatmochan Singh
BBA 6th Semester
DEMOGRAPHIC QUESTIONS:-
NAME: ………………………………………………
AGE: ……………………years
OCCUPATION: ……………………………………….
EDUCATION: …………………………………..
Q.1 Which brand comes to mind, when you think of health along with beauty care
products?
a. Amway
b. Lakme
c. Yardley
a. Yes
b. No
a. Yes
b. No
55
a. Good Cleanser
b. Good Moisturizer
c. Good Deodorizer
d. All the above
Q.5 What do you use after washing your hair with Shampoo?
a. Conditioner
b. Oil
c. None of them
Q.6 Did you find any difference after using the Soap?
a. There is a change
b. No change
c. Not observed
Q.7 How is the quality of the Persona Soap and Satinique shampoo?
a. Good
b. Medium
c. Satisfactory
Q.8 What is the level of satisfaction towards the purchase of Amway Products?
a. Good
b. Average
c. Satisfactory
a. Quality
b. Price
c. Others
Q.10 Would you like to suggest others, to buy the Amway Products?
a. Yes
b. No
Q.11 What are the important factors that influenced you to buy the Amway
Products?
56
a. Personal choice
b. Friends
c. Advertisement
d. Internet
(Signature)
57