0% found this document useful (0 votes)
405 views57 pages

Consumer Behavior Amway

The document is a project report submitted by Mr. Sankatmochan Singh to Awadhesh Pratap Singh University for the completion of a Bachelor of Business Administration degree. The report studies consumer behavior with reference to Amway products in Satna, India. The report includes an introduction, company profile of Amway, literature review, objectives, research methodology, data analysis and interpretation, findings and suggestions, limitations, and conclusion. It was completed under the guidance of Dr. Fahim Siddiqui at Vindhya Institute of Management & Science in Satna during the 2014-2015 academic year.

Uploaded by

Abhay Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
405 views57 pages

Consumer Behavior Amway

The document is a project report submitted by Mr. Sankatmochan Singh to Awadhesh Pratap Singh University for the completion of a Bachelor of Business Administration degree. The report studies consumer behavior with reference to Amway products in Satna, India. The report includes an introduction, company profile of Amway, literature review, objectives, research methodology, data analysis and interpretation, findings and suggestions, limitations, and conclusion. It was completed under the guidance of Dr. Fahim Siddiqui at Vindhya Institute of Management & Science in Satna during the 2014-2015 academic year.

Uploaded by

Abhay Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 57

A

PROJECT REPORT
ON

“A STUDY OF CONSUMER BEHAVIOR


WITH REFERENCE TO AMWAY
PRODUCTS, SATNA”
SUBMITTED TO

AWADHESH PRATAP SINGH UNIVERSITY, REWA (M.P.)

FOR THE AWARD OF

BACHELOR OF BUSINESS ADMINISTRATION


BBA (SEMESTER-VI)

BY
MR. SANKATMOCHAN SINGH
UNDER GUIDANCE OF
DR. FAHIM SIDDIQUI

VINDHYA INSTITUTE OF MANAGEMENT & SCIENCE,


SATNA (M.P.)
2014- 2015
VINDHYA INSTITUTE OF MANAGEMENT &
SCIENCE,
SATNA (M.P.)

GUIDE’S CERTIFICATE
This is to certify that MR. SANKATMOCHAN SINGH has

satisfactorily completed the Project work on “A Study of Consumer

Behavior with reference to Amway Products Satna” under my guidance

for the partial fulfillment of BBA (Semester-VI) submitted to Awadhesh

Pratap Singh University, Rewa during the academic year 2014-2015.

To best of my knowledge and belief the matter presented by him is

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.

Place: Satna DR. FAHIM SIDDIQUI


Date: / / 2015 (Project Guide)

2
VINDHYA INSTITUTE OF MANAGEMENT &
SCIENCE,
SATNA (M.P.)

DECLARATION

I undersigned, hereby declare that this project report entitled “A

Study of Consumer Behavior with reference to Amway Products, Satna”


prescribed by AWADHESH PRATAP SINGH UNIVERSITY, REWA during the

academic year 2014-2015 under the guidance of DR. FAHIM SIDDIQUI is my

original work.

The matter presented in this report has not been copied from any

source. I understand that any such copying is liable to be punishable in any

way the university authorities deem to be fit. Also this report has not been

submitted earlier for the award of any Degree or Diploma of Awadhesh

Pratap Singh University, Rewa or any other University.

This work humbly submitted to Awadhesh Pratap Singh University for

the partial fulfillment of Bachelor of Business Administration (Sem-VI).

PLACE: SATNA MR. SANKATMOCHAN


SINGH
DATE: / / 2015

3
VINDHYA INSTITUTE OF MANAGEMENT &
SCIENCE,
SATNA (M.P.)

ACKNOWLEDGEMENT

Whenever we are standing on most difficult step of the dream of our


life, we often remind about The Great God for His blessings & kind help and
he always helps us in tracking off the problems by some means in our
lifetime. I feel great pleasure to present this project entitled “A Study of
Consumer Behavior with reference to Amway Products, Satna”.
I am grateful to those people who help me a lot in preparation of this
project report. It is their support and blessings, which has brought me to
write this project report. I have a deep sense of gratitude in my heart for them.
I would give sincere thanks to our Honorable H. O. D who is been & will be
source of inspiration to us.
I am thankful to my respected guide Dr. Fahim Siddiqui for his whole-
hearted support and affectionate encouragement without which my successful
project would not have been possible.
Finally, I am very grateful to Mighty God and inspiring parents whose
loving & caring support contributed a major share in completion of my task.

4
Mr. Sankatmochan Singh

TABLE OF CONTENTS

S.N. Contents Page No.

1 Introduction of Project 6-14

2 Company Profile 15-17

3 Review of Literature 18-22

4 Objectives 23-24

5 Research Methodology 25-28

6 Data Analysis & Interpretation 29-45

7 Findings & Suggestions 46-47

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:

MEANING AND DEFINITION OF CONSUMER BEHAVIOUR

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.

According to Schiffman and Kanuk “Consumer behaviour encompasses all of the


behaviours that consumers display in searching for, purchasing, using, evaluating and
disposing of products and services that they expect will satisfy their needs”.

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”.

On the basis of above definitions, it can be concluded that consumer behaviour is


the study of consumers regarding what they buy, when do they buy, from where they
buy, how frequently they buy, and how they use certain products. But the study does not
stop here as it also goes further to study the post purchase and evaluations of the
consumers. So, it addresses all the issues related from pre-purchase to post purchase
behaviour of the consumers.

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.

Perception: Perception is the process by which an individual selects stimuli, organises


information about those stimuli, and interprets the information. Perception poses
powerful implications for marketers. What is perceived by an individual, it determines
how he or she behaves? No consumer purchase can take place unless a consumer
perceives that the product or service will offer the benefits he or she needs. Accordingly,
marketers must understand how perception works in order to communicate successfully
a product’s benefits. Regardless of the fact that a product is innovative or advertisement
is effective, it will fail if it is not perceived favourably by the potential consumers.

Learning: Learning is a continuous process by which individual acquires knowledge so


that it causes a permanent change in behaviour. Learning is a kind of process that
evolves over a time and can not be directly observed. When a person perceives new
stimuli in the environment, it is related with the existing pond of knowledge. Therefore,
learning reflects both current experiences and past back ground. Learning is essential to
the consumption process. In fact, consumer behaviour is largely learned behaviour. We
acquire most of our attitudes, values, tastes, preferences, symbolic meanings and feeling
through learning. Human culture and social class, institutions such as schools and
religious organisations, family, friends, mass media and advertising provide learning
experiences that influence the kind of life style the consumers seek and the products they
consume. Marketers spend considerable effort to ensure that consumers learn of their
existence as well as about their products. Companies that make their consumers learn
about their products and services in an effective and efficient manner often obtain a
long-term competitive advantage them that of their competitors.

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.

ORGANISATIONAL BUYING BEHAVIOUR

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.

According to Webster and Wihel “Organisational buying is the decision-making


process by which formal organisations establish the need for purchased products and
services and identify, evaluate, and choose among alternative brands and suppliers”.

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”.

So, on the basis of above definitions it can be concluded that organisational


buying is the decision-making process in which one organisation receives the resources

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.

THE ORGANIZATIONAL BUYING DECISION PROCESS

Because organisational decisions typically involve more individuals in more


complex decision tasks than household or individual decisions, marketing efforts to
affect this process are much more complex. There are different stages in the decision-
making process from problem recognition to post purchase performance evaluation.
Let’s discuss these stages one by one.

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.

3. Evaluation and Selection: The evaluation of possible suppliers and selection of a


supplier often follows a two-stage decision process. The first stage is making the buyer’s
approved suppliers list. In this case, a conjunctive decision process is very common.
Using this kind of process, the organisations screen out potential suppliers that do not
meet all its criteria.

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.

5. Post purchase performance evaluation: In the final stage of business buying


division process, the new product’s performance is evaluated. The product’s actual
performance is compared to specifications and necessary adjustments are made of the
product that does not function as per expectations, the organisation can ask the supplier
to replace it. At the same time, the supplier’s performance is also evaluated. If it is found
to be unacceptable, the buyer will seek corrective action from the supplier or he will
search out for a new supplier.

Consumer behavior is the study of individuals, groups, or organizations and the


processes they use to select, secure, and dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that these processes have on the consumer and
society. It blends elements
from psychology, sociology, social anthropology, marketing and economics.

It attempts to understand the decision-making processes of buyers, both individually and


in groups such as how emotions affect buying behavior. It studies characteristics of
11
individual consumers such as demographics and behavioral variables in an attempt to
understand people's wants. It also tries to assess influences on the consumer from groups
such as family, friends, reference groups, and society in general.

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.

• Consumer Buying Behavior refers to the buying behavior of final consumers


(individuals & households) who buy goods and services for personal
consumption.
• Study consumer behavior to answer:
“How do consumers respond to marketing efforts the company might use?”

12
13
WHO IS CONSUMER?

 Consumer is a person or group of people that are the final users of


products and or services generated within a social system. A consumer
may be a person or group, such as a household. The concept of a consumer
may vary significantly by context.

WHAT IS CONSUMER BEHAVIOR?

 Consumer Behavior is a branch which deals with the various stages a


consumer goes through before purchasing products or services for his end
use.

 Why do you think an individual buys a product?


 Why do you think an individual does not buy a product?
 When do you think consumers purchase products?

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.

• Amway is a direct selling company that uses Network Marketing to sell a


variety of products.

• Mostly, the products are based on Health, Beauty and Home care products.

16
Introduction :

 Amway India, a wholly owned subsidiary of Amway Corporation, was


established in August 1995 after approval by India's Foreign Investment
Promotion Board (FIPB). Amway India commenced commercial
operations on May 5, 1998  and is now the largest Direct Selling FMCG
Company. The Company is headquartered at the National Capital Region
of India - New Delhi.
 
 Amway has invested in excess of US $ 35 million (Rs. 151 cr) in India of
this; US $ 6 million (Rs. 26 cr) is in the form of direct foreign investment.
Amway India has 400 full time employees and has generated indirect
employment for 1,650 persons at all the contract manufacturer locations.

 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.

 Amway India is a member of the Indian Direct Selling Association


(IDSA). The IDSA is an industry regulatory body, with several reputed
international and Indian Direct Selling companies as members. A Mumbai-
based consumer rights activist, Asha

 Kidnani, is IDSA’s Ombudsman & Code Administrator. Amway India is


also a member of the Confederation of Indian Industries (CII) and
Federation of Indian Chambers of Commerce (FICCI).

17
CHAPTER-III

REVIEW OF LITERATURE

18
REVIEW OF LITERATURE:

Consumer Behaviour Christopher (1989) studied the shopping habits of


consumers to form an idea of whether or not the store concepts, product ranges
and strategies of the companies are appropriate towards consumer requirements.
He believed that consumer behaviours are unpredictable and changing
continuously changing; while trying to under try to understand how individual or
group make their decision to spend their available resources on consumption-
related items. These are factors that influence the consumer before, during, and
after a purchase (Schiffiman and Kanuk, 1997), for example, feedback, from
other customers, packing, advertising, product appearance, and price (Peter &
Olsonetc, 2005).

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).

To get in-depth understanding consumer behaviour concepts will gives us an idea


on how its plays significance role in our life and in the whole trend of business
profit to various firms which will allow the researcher to get the analysis and
determine product positioning, develop the message and targeting strategy in
order to reach to the market (Holskins J, 2002). Consumer behaviour involves lot
aspects, such as;

Complex Buying Behaviour

This kind of buying behaviours significantly involved the consumers when


making a purchase decision. This kind of buying behaviours demand consumer to
highly involve within the process. In case of high involvement, consumers
distinguish salient differences among the competing brands (Kotler, Wong,
Saunders, Armstrong, 2005). This phenomenon is particularly essential for
Dixons consumers to highly involve, and engage in extensive research about the
product category and make a good purchase decision about the firm own

20
manufacturing products, in case they invent a new technology electronics
products or audio-video equipment that is too expensive.

Dissonance reducing buying behaviour

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).

Habitual Buying Behaviour

Contrariwise, in this type of buying behaviour consumers have lesser levels of


involvements.  It implies that consumer do not have to bother to retrieved
information about the available products and brands in the market. So therefore,
there are no potential differences between the different brands. Whether this
factor will have damaging effects on Dixons will be analyse at the findings and
analysis chapter below. Because of the less level of involvement, in habitual
buying behaviour consumers don’t often go to the stores to purchase product,
(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

This type of consumer level of involvement is low. However consumer may


became critical in terms of brand differences. Additionally, consumer may easily
switch from PCWorld to Currys i.e. from one brand to another. The consumers
can now have beliefs about the various brands and choose a brand without much
evaluation. But they evaluate that product at the time of purchase. In this high
technology world, consumer switches their brands not because of dissatisfaction
but because of that enormous trend of technological equipment (Aaker, 1991).

22
CHAPTER-IV

OBJECTIVES OF THE STUDY

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.

The objective of study is as follows: -

 To optimize consumer convenience and value through enhanced product


differentiation.

 To study the Consumer’s Behavior towards the Amway products

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:

1. Research is a systematic and critical investigation into a phenomenon.

2. Research is not a mere compilation, but a purposive investigation.

3. It aims at describing, interpreting and explaining a phenomenon.

5. It is objective and logical.

6. It is based upon the observable experience and empirical evidence.

7. It is directed towards finding answer to pertinent question and solution.

Research objectives:

 Employee turnover is one of the largest though widely unknown costs an


organization faces.
 To capture the satisfaction level that is influenced by various technical & non
technical factors.
 To examine the relationship between students and faculty.
26
 To find out factors affecting employee retention.

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.

 Research problems: To study the Consumer Behavior on Amway Products.

 Marketing Research: Marketing Research is the systematic & scientific search


for collecting the desired information from representative sample of the relevant
population.

 Research Methodology: Research methodology is a way which is knows to me


what to be done or how to be done in systematically & scientifically.

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.

Methods of data collection :

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.

Have you heard of Amway products?

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.

Did you use 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.

What things you want your soap to be included with..?

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.

What do you use after washing your hair with Shampoo?

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.

Have you used Persona Soap?


36
a. Yes
b. No

Interpretations: From the above chart it is clear that 75% people are using
persona soap which is the Amway products.

Did you find any difference after using the Soap?

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.

Have you used Satinique Shampoo?

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.

How is the quality of the Persona Soap and Satinique 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.

What is the level of satisfaction towards the purchase of Amway Products?


41
a. Good
b. Average
c. Satisfactory

Interpretations: From the above chart it is clear that 61% people are satisfied
after using Amway products & 10% people having medium satisfaction.

What is the reason for choosing the Amway Products?

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.

Would you like to suggest others, to buy the Amway Products?

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

It has been found that:

1. 72% people are using Amway products


2. 67% people are finding changes after using soap as compared to other soap.
3. 65% people’s opinion for shampoo is good.

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 project was aimed to understand the Consumer Behavior on Amway


products in India.

 Launch of new advertisement campaign with the brand ambassador.

 By making the price of the products to be reasonable, it can attract many


customers and also can retain its present consumers also.

 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.

 Most of persons are motivated by advertisement over product quality. So the


company should be provided extensive advertisement campaign to the dealers
and customers.

47
CHAPTER-VIII
LIMITATIONS

48
LIMITATIONS

 Dynamic nature of the market, dealers and customers.

 Due to time constraints the survey was conducts over 50 workers only.

 While conducting survey some respondents hesitates to respond, it creates


problems in research work to collect data.

 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

Consumer behaviour is the action and decision processes of people who


purchase goods and services for personal consumption. Consumer decision
making is influenced by social, psychological, and personal factors. Social factors
are forces exerted by other people that affect consumer behaviour. A social class
is a relatively homogeneous and stable group of people with similar values,
attitudes, and behaviours. A role is a set of functions and activities that a person
in a particular position is expected to perform. Culture is learned values,
behaviours, and meaningful symbols shared by members of a society. A culture is
further divided into several subcultures.

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

 Research Methodology:- C.R. Kothari


Wishwa prakshan
Darayaganj
New Delhi
2nd Edition-1995

 Marketing Management :- Philip Kotler


Prentice- hall of
India pvt. Ltd.
New Delhi
8th Edition-1995

Websites:

 www.google.com

 www.amway.com

53
CHAPTER-XI
ANNEXURE

54
QUESTIONNAIRE FOR CONSUMER BEHAVIOR

I introduce myself as a student of B.B.A. 6 th Semester of APSU, Rewa. This project


work is a part of an academic curriculum; your response is highly valuable for my study.
And the information provided you will be kept confidential and used only for my
project.

Sankatmochan Singh
BBA 6th Semester
DEMOGRAPHIC QUESTIONS:-

NAME: ………………………………………………

AGE: ……………………years

SEX: a) MALE [ ] b) FEMALE [ ]

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

Q.2 Have you heard of Amway products?

a. Yes
b. No

Q.3 Did you use Amway Products?

a. Yes
b. No

Q.4 What things you want your soap to be included with..?

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

Q.9 What is the reason for choosing the Amway Products?

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

You might also like