A STUDY ON "CONSUMER BUYING BEHAVIOR OF VKC GROUP OF COMPANIES"WITH RESPECT OF CALICUT DISTRICT.

PROJECT REPORT Submitted by

NASURUDHEEN.T

Register No:723211631061 in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SVS INSTITUTE OF MANAGEMENT STUDIES

COIMBATORE - 642 109.

OCTOBER 2012

SVS INSTITUTE OF MANAGEMENT STUDIES

SUMMER PROJECT SUBMITTED BY NAME REGNO CLASS :NASURUDHEEN. T : 723211631061 : II - MBA A'

SVS INSTITUTE OF MANAGEMENT STUDIES, JP NAGAR, ARASAMPALAYAM, COIMBATORE - 642109

In partial fulfillment of the requirements for the award of the degree of Master of Business Administration October 2012 Anna University Chennai

CERTIFICATE
3

CERTIFICATE
This is to certify that the project entitled A STUDY ON CONSUMER BUYING BEHAVIOR OF VKC GROUP OF COMPANIES PVT. LTD, WITH RESPECT TO CALICUT DISTRICT is the bonafide record of project work done by NASURUDHEEN.T of MBA during the year 2011-2013.

-----------------------Project Guide

--------------------------Head of the Department

Submitted for the Project Viva-Voce examination held on --------------------------------------------------------

Internal Examiner

External Examiner

DECLARATION

DECLARATION
I affirm that the project work title A STUDY ON CONSUMER BUYING BEHAVIOR ON VKC GROUP OF COMPANIES PVT.LTD being submitted in partial fulfillment for the award of MBA is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other university.

NASURUDHEEN.T

I certify that the declaration made above by the candidate is true

Ms. NEETHA ISMAIL (Assistant Professor)

ACKNOWLEDGEMENT

ACKNOWLEDGEMENT
I am grateful to that almighty "GOD" for his sustained blessings and my teachers for their support throughout this report . First of all I would like to express my sincere thanks to Dr.S.MOHANDAS, Director of SVS institute of management studies, Ms. NEETHA ISMAIL Assistant Professor of M.B.A SVS institute of management studies, for consistence Guidance throughout the execution of this report work . I sincerely wish to express my deep sense of gratitude to Board of directors of VKC GROUP Pvt.Ltd , for permitting to do this report in his esteemed organization and guiding me throughout the preparation of this report. I would like to express my sincere thanks to Mrs.SRUTHI SREETHAR, HR Manger of VKC GROUP for helping me throughout preparation of this report. Last but not least I wish to express thanks to my parents and my friends.

NASURUDHEEN.T 723211631061

ABSTRACT

ABSTRACT
This project studies about the consumer buying behavior against VKC footwear. The study of consumer buying behavior is the most important factor for marketing of any products and services. The consumer behavior suggest how individual, groups and organization select,buy,use and dispose of goods,services,ideas or experiences to satisfy there needs and wants. It also clues for improving or introducing products or services, setting price, devising channels etc.. In this project, a brief study is made over VKC footwear, their expectation, their budget and the difficulties they are facing. These data are analyzed and converted into valuable information, which will be useful for the organization in developing. Primary data collection was done through questionnaire. Secondary data was collected from company records, notice and website. Research design used in this study was Descriptive research .Conclusion are based on the analysis of the data collected from the users of a particular area. Statistical tools applied in chi-square test. Findings & suggestions have been based on the analysis of data collected from the respondents.

10

CHAPTER No. I

CONTENT

PAGE No.

INTRODUCTION 1.1 Introduction 1.2 Company Profile

1.3 Introduction of the study 15 16 27 30 31 32 34 38 38 39 40 43-56

1.4 Objectives of the Study 1.5 Scope of the Study 1.6 Limitations of the Study II III REVIEW OF LITERATURE RESEARCH METHODOLOGY 3.2 Research Design

3.3Sample Design
3.4Chi square test IV V DATA ANALYSIS & INTERPRETATION FINDINGS ,SUGGESSIONS & CONCLUSION Bibliography Appendix

66 68

11

LIST OF TABLES TABLE NO:

4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.1.10 4.1.11

TITLE
GENDER OF RESPONDENTS TYPE OF FOOTWEAR PREFERING BY RESPONDENTS SATISFACTION OF RESPONDENTS FEATURES OF FOOTWEAR LIKING RESPONDENTS RESPONDENTS PERIOD OF BUYING FOOTWEAR QUALITY OF PRODUCT WHILE PURCHASING SUGGESSION OF RESPONDENTS ABOUT FOOTWEAR PURCHASE DECISION OF RESPONDENTS PRICE RANGE OF RESPONDENTS RESPONDENTS FOOTWEAR CONSIDERATION ABOUT PRICE OF

PAGE NO:
43 44 45 46 47 48 49 50 51 52 53

BRANDED FOOTWEAR PROVIDE MORE VALUE THAN UNBRANDED FOOTWEAR CONSUMER PRODUCT LOCATION RESPONDENTS PURCHASING OF FOOTWEAR AMONG VKC FOOTWEAR INFLUENCE OF ADVERTISEMENT

4.1.12 4.1.13

54 55

4.1.14

56

12

LIST OF CHARTS CHART NO:

4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.1.10 4.1.11

TITLE
GENDER OF RESPONDENTS TYPE OF FOOTWEAR PREFERING BY RESPONDENTS SATISFACTION OF RESPONDENTS FEATURES OF FOOTWEAR LIKING RESPONDENTS RESPONDENTS PERIOD OF BUYING FOOTWEAR QUALITY OF PRODUCT WHILE PURCHASING SUGGESSION OF RESPONDENTS ABOUT FOOTWEAR PURCHASE DECISION OF RESPONDENTS PRICE RANGE OF RESPONDENTS RESPONDENTS FOOTWEAR CONSIDERATION ABOUT PRICE OF

PAGE NO:
43 44 45 46 47 48 49 50 51 52 53

BRANDED FOOTWEAR PROVIDE MORE VALUE THAN UNBRANDED FOOTWEAR CONSUMER PRODUCT LOCATION

4.1.12 4.1.13 4.1.14

54

RESPONDENTS PURCHASING OF FOOTWEAR AMONG 55 VKC FOOTWEAR INFLUENCE OF ADVERTISEMENT 56

13

CHAPTER-1 INTRODUCTION

14

1.1 INTRODUCTION
Today's market is characterized by highly competitive organizations which are all vying for consumer's loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful.Stratergies are carefully planned and executed to gain the ultimate goal of all i.e.; company growth. However, external factors are not the only elements which influence growth. There are also internal factors, components working within the organization which shape the direction of the company. Despite the economic and technological conditions that make it possible now to promote products and services in a larger consumer market, there are other factors that still need to be considered for a business organization reach out easier to their target market. Consumer behavior and consumer decision making have become prominent research topics in the various fields of consumer science in recent years. Generally Consumer behavior is defined as the behavior or activities that consumer engage in when selecting, purchasing, and using products and services so as to satisfy needs and desires. Such activities involve mental and emotional processes. The importance of consumer behavior is deeply rooted in the marketing strategy. Virtually; all decisions involved in developing an effective marketing mix for a product or service rely on thorough knowledge of the consumers who comprise the target market. Understanding buying behavior is one of the more perplexing tasks confronting every business owner. The difficulty arises from the heterogeneity of buyers, from their brand loyal or being groups of individuals who differ from one another. But differences notwithstanding, consumers do share attitudes, opinions, reactions and desires at various times. Business experience, marketing research, theoretical constructs and models, and models and trial and error methods help to find some of the common denominators. This study aims to identify a pattern of behavior among its chosen respondents.

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1.2 COMPANY PROFILE VKC GROUP OF COMPANIES

"VKC group of companies are the leading footwear manufacture especially in southern region of India. The group established on (August17) 1984 with a nominal capital and few employees. In 1984 the founder of the group Mr. V.K.C. Mammed Koya started a Hawai Sheet manufacturing unit with his two brothers. Later on Hawai straps were also inducted to the production line and in 1986 VKC group launched the first product with its own brand name in the market viz. VKC Hawai with an initial production of 600 pairs per day. By 1989 the production increased to 5000 pairs a day and by 1996 it jumped to 17000 pairs. In between the founder initiated the floating of the first RPVC (Rigid Polyvinyl Chloride) footwear manufacturing unit in the Malabar Area of Kerala state with few of his friends. This product also got very good acceptance in the market. This resulted in a rapid change in the footwear industry itself. Within a few years the number of Rubber and RPVC unit grew to more than 80 in this area. In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin PVC. This resulted in a drastic change and the multinational brands confronted competitions from the local brands. In 1998 the group started the first Micro Cellular PVC footwear in Kerala with the help of imported plant and machinery. "Quality at low price" made the VKC groups products popular in the market day by day. In 2001 the group started the first Air Injected PVC DIP footwear manufacturing unit in the South India. In 2003 the group missioned the first Injected EVA manufacturing unit in South -Central India. In 2006 the group started backward integration to produce EVA compound for Injection and started the first EVA compounding plant in the South -Central India. During this period new bloods with technical, commercial and practical knowledge were inducted and now the group consists of 25 working Directors and 100 share holders spread over 16 various units. And have annual group turnover of Rs.4000 million. More than 4000 employees are working in these units. 16

The company had achieved a prominent position in the footwear market of India. The main markets, which is been focused by the company are Kerala, Tamilnadu Karnataka, Madhya Pradesh, Gujarat, Andra Pradesh. It has now expanded its market in countries such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain and Qatar. The good quality and variety in models of VKC products help the companies to face the market competition positively. The company has been able to maintain the quality of the products by adopting foreign technologies. The group is now looking for further avenues in the field of footwear to stretch their hands. Who We Are: Our Vision, Mission and Motto

Vision
To provide quality products to the customer at an affordable price.

Mission
To meet the market demand and to achieve a prominent position in the Footwear industry. Motto "Quality products at Affordable Price"

The Head Quarter of VKC group is in CALICUT and the plants of VKC group of companies are situated in Kerala, Tamilnadu, Andra Pradesh and Gujarat. The following are the associate 17

companies of VKC group. 1. M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD. 2. M/s. VEEKESY ELASTOMERS PVT.LTD. 3. M/s. VEEKESY POLYMERS PVT.LTD. 4. M/s. SANDLON TECHNOLOGIES PVT.LTD. 5. M/s. FORTUNE ELASTOMERS PVT.LTD. 6. M/s. CALTECH POLYMERS PVT.LTD. 7. M/s. SLIPONS INDIA PVT.LTD 8. M/s. DIADORA SHOES PVTLTD. 9. M/s. DIMESCO FOOTCARE INDIA PVT LTD. 10. M/s. FERRARI SHOES (INDIA) PVT.LTD 11. M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD 12. M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD 13. M/s. MORBIDO VINYL PVT.LTD. 14. M/s. SMARTAK FOOTCARE PVT. LTD. 15. M/s. VKC FOOTSTEPS INDIA PVT.LTD 16. VKC FOOTPRINTS GLOBAL PVT LTD 17. VKC FOOTWEAR INTERNATIONAL PVT LTD 18. M/s VEEKESY SANDALS INDIA PVT LTD

18

1.2.1 COMPANY PROFILE OF M/s. FORTUNE ELASTOMERS PVT.LTD

M/s. Fortune Elastomers Pvt. Ltd. is registered as a private limited company and is one of the largest producers of DIP footwear's in Kerala. It is one of the associate concerns of renowned VKC Group of Companies. The founder of M/s. Fortune Elastomers Pvt. Ltd. is Mr. V.K.C. MAMMED KOYA. The company is situated at KOLATHARA; KOZHIKODE .The Company has been able to achieve a landmark in the field of footwear through the continuous researches in footwear industry. The company manufactures Stile & Pride brand footwear having PVC & PU sole with leather and synthetic leather upper. The company was incorporated on 17.02.2000 under the Companies Act 1956 and commenced its production on 24 th September 2001. All affairs and day-to-day business administration of the firm is vested in the hands of Board of Directors. They are in charge of various functions pertaining to Finance, Production, HR, Marketing, Administration and Materials departments. The board is assisted by well qualified staff members. Each department has functional heads, senior and junior executive in order to support and help functional heads. The Chairman of the firm was awarded with Best Entrepreneur of Kozhikode district by Kerala State Small industries Association for the year 2005-2006. M/s. Fortune Elastomers Pvt. Ltd caters to extend its markets of Kerala, Karnataka, Tamilnadu, Andra Pradesh and certain countries outside India. M/s. Fortune Elastomers exports the footwear's to countries such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain and Qatar. Exports have shown a steady growth over the years. The products have a high brand value in the minds of the people of Kerala because of the quality and the affordable price of the product. The management gives high priority to the quality of the product. The company assures the quality of the product through the continuous quality checking in each and every stages of the production process. The quality of the VKC products is unrivalled in the market. The Footwear's introduced by the company has been growing and evolving with the changing trends over the year. In recent years the customers prefers the DIP Footwear's than any other Footwear. As we are manufacturers of footwear, we focus mainly on production process of the organization. The function of the production department is to produce our products on time, to the required quality 19

levels, at the defined product cost. The main advantage of the company is the implementation of Taiwan technology for the injection moulding process. We have both automated and manual machines for production of footwear's. The quality of the imported Synthetic leather, imported by us helps from the problem of smelling due to sweatiness and wetness, which is seen in ordinary leathers. The finish, comfort, and elegances are highly superior when compared to the ordinary leather. The production process is line production process whereby materials are put through a refining process to produce end-product through sequential operations. Of major concern to the production manager is monthly output. Production managers have monthly targets which they are expected to strive to meet or exceed. The total production estimated for a year is 51.6 lakh. The production department of M/s. Fortune Elastomers Pvt. Ltd comprises of well experienced staff members starting from functional head, department head, coordinator, supervisors, shift engineers, machine operators, pouring men and workers. Production department also aims at maintaining the quality of products been produced. Every employee is expected to take responsibility for managing quality issues in order to make sure that waste is minimized and quality maximised. Quality checking and assurance is carried out everyday on a number of occasions to ensure that the production process is working efficiently and effectively. We use different machines to produce footwear's. The company purchases footwear moulds from Taiwan, China, and Italy. This will help the company to assure high quality finished product. Most of our machines are imported from abroad. It includes high speed mixer machine, fully automatic air injection moulding machine, air drier & chiller, cooling tower, cementing machine, box strapping machine, clicker machine, generator conveyor, stitching machine. M/s. Fortune Elastomers PVT. LTD. has succeeded in withstanding stiff competition from the parallel manufactures because of the superior quality of the products at reasonable price. Other than production and quality checking, production department performs one more function. That is packing of finished products into cartons. A set of workers are assigned to pack finished products into specified cartons or boxes according to their name and size. Before packing quality is again checked by the workers. After packing all these cartons are sent to stock room for storing so that it can be sent to dealers directly according to the order placed.

20

1.2.2 PRODUCTION PROCESS

Production Process Raw Material Mixing Synthetic Rexene

Cutting Semi Finished Upper Material Semi Finished Insole Material Injection Moulding Process Stitching Process Semi Finished Footwear Printing & Embossing

Show fitting Riveting ,Printing & Embossing

Quality Checking

Pasting Process
Heating Process

Stitching Process
Finished Footwear Upper

Packing Process

Finished Footwear

21

1.2.3 PACKING PROCESS

Trimming Process Conveyor System Upper & Sole Cleaning Tag Fitting Packing into Small Carton Fixing Size & Price Sticker in Small Carton Packing into Master Carton Final Check up in Pairs, Art No., Size & Price Box Strapping

22

After production these products are being sold in the market according to the orders taken by marketing department. The marketing department studies the market and the target customers, decides the best way to reach these customers, and works with the rest of the company to help determine the new product needs of the market. We do continuous market research , which helps us in planning and executing marketing strategies for the future course of action. It also helps us in analyzing the buyer habits, popularity of product, and effectiveness of advertising media. It also helps to collect information about marketing problems and opportunities The company executives are directly taking the orders from the wholesalers. The Company has very good system for the supply of the products to the wholesalers. We sent our products through parcel service to various dealers based on their orders to respective places and doesn't have connection with any retailers. Our product reaches the hand of customers through retailers, who gets it from wholesalers. We manufacture products on the basis of demographic segmentation. As a result, we produce products aiming youngsters, gents and ladies at affordable price with high quality. We produce footwear under the name VKC Le- Style and VKC Pride. VKC Le-Style is used for exporting to foreign countries. Our slogan is "The Coolest Choice from fortune". The Company treats the advertising as the main mode of marketing to improve the sales of our products.. Ambassador of our product is Cine Actress Meera Jasmine. VKC's Advertising covers all activities connected with giving publicity regarding goods and services offered for sale. The main Medias for advertising are: Indoor Media & Outdoor Media Indoor Media includes TV Channels, News papers, Magazines, Catalogues, Danglers, Calendars, & Stickers. Advertisement of the products are given in all the major TV channels in Malayalam Outdoor Media includes Name boards, A boards and Hoardings. Marketing and sales goes hand in hand. Sales promotion plays a major role for the success of the 23

VKC products. Sales promotion influences the customers for buying the products and also helps to meet competition and helps in stimulating demands. Sales Promotion is carried out in two ways. Consumer's promotion and dealer promotion. Consumers promotion consists of providing coupons, contest that we conduct and price offer for our various products. For dealers we conduct sales contest, give gifts, and turnover allowance based on the amount products been purchased from our firm. Company provides scheme called VKC Sammanotsavam for dealers based on their purchase for that particular year. The Company conducts the Wholesalers Meet at least once in a year. By this the company provides an opportunity to the wholesalers to interact with the company and between the dealers. This helps to find problems, sort out differences, and to formulate plans for future improvement in the market. The adequate production, supply, good quality, affordable price of the product, and the various marketing techniques used by the company helps products to be a superior one in the market that satisfies the customer. Human resource department of the organization caters to the need of both employees and workers of the organisation, resulting in a good relation between employees and workers. They are well satisfied with the attitude of the management towards them and in the facilities provided to them. So there are no labour strikes, absenteeism and attrition. The company provides excellent training programs for the employees to improve the skills and productivity with in a lesser time. The employees are getting the statutory benefits like Bonus, ESI scheme, Employees Provident Fund, Festival Holiday Allowances from the company. They are often given awareness class related to cleanliness, health and safety. HR department maintain a help desk in order to redress grievance of the workers and answer to their queries. There are total of 232 workers in the organisation. Finance is life blood of every organization. It deals with procurement of funds and their effective utilisation in the business. Department has one department head, one senior executive and four junior executive. Their functions mainly include checking daily cash accounts, MIS preparation, bank reconciliation, central excise and export related works, finalisation of account statement etc. M/s. Fortune Elastomers Pvt. Ltd doesn't have any term loan and is finan1cially stable. The annual turnover of the organisation for the last financial year 2011-2012 is 52 crores. 24

Materials department of the organisation place order according to need of material that's used for production. Supervisor's and production in charge gives details of materials needed for production and accordingly materials are purchased by placing order through e-mail.

BOARD OF DIRECTORS: Mr. K.M. Hameed Ali (Chairman) Mr. V. Mohammed Abdul Kareem (Director) Mr. P. Abdul Salam (Director) Mr. K. Ummar Farook (Director)

25

1.2.4 ORGANISATIONAL CHART

CHAIRMAN

CHCCCC

DIRECTORS MANAGER (ADMINISTRATION) ASSISTANT MANAGER

MATERIALS
DEPARTMENT HEAD

FINANCE

PRODUCTION
PRODUCTION HEAD

SALES
DEPARTMENT HEAD

DEPARTMENT HEAD

EXECUTIVE
JUNIOR EXECUTIVE

EXECUTIVE

COORDINATOR

EXECUTIVE

JUNIOR EXECUTIVE

SUPERVISOR SHIFT ENGINEERS

JUNIOR EXECUTIVE

PERSONNEL

SKILLED WORKERS

UNSKILLED WORKERS DEPARTMENT HEAD

EXECUTIVE
JUNIOR EXECUTIVE

26

1.3 INTRODUCTION OF THE STUDY

Selling of any product, there is needed to build a relationship with consumers and customers. For building a relationship there is need for knowing their behavior and how will be they satisfied? This project is undertaken to know the consumer buying behavior &satisfaction level for VKC footwear. Also through this project get awareness that which affect on buying behavior. There was some limitations while doing this project. The data was collected by personal interview of the respondents. It was very challenging to fill up the questionnaire as most of the population comes from rural backgrounds. As it was the rural area we are supposed to explain each and every question of the questionnaire. Also many of them did not show any interest in filling questionnaire. This study will help VKC group to know the most popular way by which they are providing services and quality to the consumers and how various consumers' perception. From this study, found that the consumers were highly satisfied with the product and services of VKC footwear. It was found that VKC group having a good brand image in the market. Most of the respondents considered VKC footwear is one of the best footwear to purchase. FACTOR INFLUENCING BUYER BEHAVIOR A number of factors influence buyer behavior. They can be grouped under 3 broad categories. Factor that are part of buyer as an individual Buyers social environment Information from a variety of sources

Factor that are part of the buyer as an individual : An individual's religion and cultural background, his personally traits, self concept, his general endowments, his upbringing-in short, his overall biodata-play a crucial role in his conduct as a buyer/consumer. These factors can be grouped broadly into 3 categories: Personal factors Cultural factors 27

Psychological factors

Personal factors : Age,Education,Economic position,Self concept As individual's age, level of education, his occupation, overall economic position and lifestyle all influence his role as a buyer.They decide what products he will buy and consume.A person's self concept and his concern about his about status also influence his buying decisions.In fact today people are very concerned about their image and status in society. It's a direct outcome of their material prosperity. Status is announced through various symbols like dress, ornaments,possessions and general lifestyle. The desire for self expression and self advancement is closely linked with social status. for several people, status is a major motive force guiding and shaping their life. their concept of status decides what material possessions they should have. Even if a product that constitutes a status symbol is beyond their immediate reach, their aspiration to possess it will influence their decision making process. Cultural factors : Religion, Language etc... Every culture, every language and every religion group dictates its own unique patterns of social conduct. Within each religion, there may be several sects; there may be orthodox, groups and cosmopolitan groups. in dress, food habits or marriage-in almost all matters of individual life-religion and culture exercise an influence on the individual,though the intensity may vary from society to society.The do's and dont's listed out by religion and culture impacts the individuals lifestyle and buying behavior. Psychological factors : Beliefs,Attitudes,Motivation,Perception Just like the economic and social conditions,a man's disposition too has a close bearing on his purchase decisions.Individuals coming under the same economic and social groups can be vastly diffrent when it comes to certain personal beliefs,faith and attitudes.One may be timid and plain,while another may be outgoing and aggressive.One may be traditional in the overall view of life, while another may be modern.One may be east innovative, while another may be welcome anything new. In fact, the maximum variations are seen here and in the matter of analysis and assessment too,this area poses maximum problem to the marketer. Influence of intimate group Influence of the broad social class. 28

Influence of intimate group : Examples of intimate groups are family,friends,colleges and closely knit organizations. These groups exercise a strong influence on the lifestyles and the buying behavior of its members. Among these groups the most influential and primary groups are the family and peer groups. The peer groups are closely knit groups composed of individuals, who have a common social background and who normally belong to the same age group. The peer group has the greatest influence on the individual member as a stabilizer of styles and behavior patterns. In any intimate groups, there is likely to be an informal group leader. To group respects him and looks up to him. Though the leader may not directly influence every in his day to day purchases, his judgment on men and matters, and facts and fashion is respected by the group. and his views and lifestyle influences their buying decisions. He is normally the innovator in the group, who first tries new products and new ideas, and then, he becomes the propagator of those products and ideas. Influence of the broad social class : Strcturally,the social class is a larger group than the intimate groups. The constitution of a social class is decided by the income,occupation,place of residence etc....of the individual members.The members of a social class enjoy more or less the same status or prestige in the community.They share a common lifestyle and behavior pattern.and they normally select a product or brand that caters to their class norms.Often they even do their shopping in the same shopping are and patronize selected shops, which befit their class image.this does not mean that all the members of a given social class will buy the same products and same brands or conform to the same style, amounting to a sort of regimentation.differential liking may exist among the members. Information from various sources : The buyer today is exposed to a veritable flood of information,unleashed on him from different sources.These sources inform him about new product and services, improved versions of existing products,new uses for existing products and so on.The information sources that persuade people to try a product include : advertising, samples and trials,display in shops and salesman's suggessions. Each of these sources provides some information to the buyer about the products.When the buyer seens an advertisement for a product,he is informed about that the existence of the products.Later on,he may develop a positive or negetive attitude towards the product or he may remain neutral.

29

1.4. OBJECTIVES OF THE STUDY

To study the consumer buying behavior To analyze the existing market situations for footwear To study consumer awareness of different company footwear To determine the reasons for success and failures of footwear company To find out differences between footwears To study consumer attitude towards footwear product.

30

1.5. SCOPE OF THE STUDY

This report will help to understand the consumer behavior towards purchasing of footwear products. It also opens the various factor which can effect the purchase decision. This report provides a frame of mind of people, what are the exceptions of consumer and up to how much level these expectation met. This report will be helpful for retailers and companies so that they can understand the consumer behavior and can satisfy the consumer on more better manner. To know whether they recommend to other or not.

31

1.6. LIMITATIONS OF THE STUDY

Shortage of time is a reason for incomprehensiveness. Some Consumers are not interested to give their opinion about VKC footwear. With respect to the actual population the sample size is too small. This might be affect the final result. The findings of the study solely depend on the response given by the buyers. As the data will be collected through questionnaire, there are chances of biased information provided by respondent. The study was restricted to only a few geographical areas. This study is only applicable for academic purpose. The data provided by the respondents may be false at times as the answers given by the consumers may or may not be loyal.

32

CHAPTER 2 REVIEW OF LITERATURE

33

2.1 REVIEW OF LITERATURE

In order to develop a framework for the study consumer behavior it is helpful to begin by considering the evolution of the field of consumer research and the different paradiagrams of thought that have influenced the discpline.As described in this article, a set of dimensions can be identified in the literature, which can be used to characterize and differentiate, the various perspectives on consumer research. It is argued that consumer behavior itself emerged as a distinct field of study during the 1960s and is characterized by two broad paradigms, the positivist and and the non-positivist. The positivist paradigm encompasses the economic, behavioral,cognitive,motivational/traditional perspectives. these perspectives are referred to as the traditional perspectives as they pre-date the development of the non-positivist paradigm. The positivist paradigm, which is still the dominant paradigm, emphasizes the supremacy of human reason and that there is a single,objective truth that can be discovered by science. This paradigm regards the world as a rational and ordered place with a clearly defined past,present,and future. The opposing non positivist paradigm envelops the interpretive and postmodern perspectives. Which have emerged more recently during the period post 1980 to date.The objective of nonpositivist research endevour is to achieve a better understanding of consumer withno specific intent to influence consumer processes.By identifying the the paradigmatic shifts within the field,this article aims to identify different streams of thought that could guide future consumer research.

MONEESHA PACHAURI Nottingham University Business School Jubilee campus

34

Peppers highlights in his article on Building relationships one customer at a time' have focused on the relationship management which has been one of the core values in management principles and philosophy. He describes a more popular approach will recent application of information technology which is to focus on individual or one to one relationship with customers that integrate database knowledge with a longterm customer relation and growth strategy. DON AND MARTHA ROGERS THE ONE TO ONE FUTURE RELATIONSHIPS ONE CUSTOMER AT A TIME 1993

BERRY
In this article on "relationship marketing "describes about the customer retention, which is the comer stone of relationship in management programs and offers immeasurable benefits to both the organizations and the customer. He has suggested three levels of retention strategies by way of developing (a)financial bond (b)financial and social bond (c)financial, social and structural bond. It is also observed that some organization run special drives to identify and recover lost customers. He also emphasizes that to recover lost customers and their purchasing taste should be measured by the help of pre purchase behavior which could thrive on the dissatisfaction of customers.

LARSEN
In his article "quality is still number one "found that quality and cost were two main factors taken into consideration by causes of professional buyers. Empirical evidence supports that higher product quality and lower cost can co-exist. The study also reflected the product quality measures as conformance delivery to as specifications,performance,reliability,durability,intangible quality enhancements,

scheduled and protectiveness of packing. further he found that measures of total cost includes, inventory carrying cost,transportation,order processing, inspection rework, scrap and purchase price.

35

SLAMA AND TASHCHIAN 1985 developed a scale to measure the purchase involvement
of consumers.They used a likert scale to test the relationships between specific market characteristics and purchasing involvement and suggested that marketing consider purchasing involvement as well as product involvement when attempting to explain consumer behavior.

LAURENT AND KAPFERER 1985 concluded that consequences of consumer behavior

differ depending on the antecedents of involvement.They developed an involvement profile containing 5 antecedents of product involvement. a)the perceived importance of a product. b) The perceived importance of negative consequences from a mispurchase. c) The subjective probability of a mispurchase. d) The pleasure value of product. e) and the perceived sign or symbolic value of the product.

36

CHAPTER 3 RESEARCH METHODOLOGY

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3.1 RESEARCH METHODOLOGY

Research methodology is the most important aspects of the survey without which the researcher may not be able to obtain facts and figures from dealers. face to face conversation backed up questionnaire check list is useful tool for the study. 3.1.1 INTRODUCTION A researcher is like an engineer who meticulously plans everything before he can start any work. An engineer proposes a blue print before he finally starts the construction of building or fabrication of a machine. As such, a research scholar is also required to prepare the plan of action for his study. The plan of action is known as "Research Design "in formal language, a research indicates a plan of action to be carried out in connection with a proposed research work. 3.2 RESEARCH DESIGN Research design is purely a master plan or model for the conduct of the investigation. it is a specification of procedures for collection and analyzing information required for the solution of the specific problems. Descriptive research design is followed in this research.

3.2.1 DESCRIPTIVE RESEARCH

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the affairs as it exists at present. The main characteristic of this method is that the researcher has no control over the variables. The methods utilized in descriptive research are survey methods of all kinds, including comparative methods.

3.2.2 QUESTIONNAIRE
The most popular research instruments for collecting data is questionnaire and interview schedule. The questionnaire is given to the respondents for collecting information.

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3.2.3 DATA COLLECTION OR SOURCES OF DATA

Once a research design is finalized the researcher will proceed with to collect the accurate data and analysis the data. The researcher may require both the primary and secondary data.

3.2.3.1 PRIMARY DATA

The primary data was collected through personal interview backed up a structured questionnaire was designed carefully gives attention to question from which we could collect required information from the respondents.

3.2.3.2 SECONDARY DATA

The research required collection of data from secondary data source such as Books,Survey reports, Business magazines,Trade journals and some more information is collected from the company website.

3.3. STATISTICAL TOOLS

The statistical methods, which are used for the research are: Percentage analysis Chi-square testPercentage analysis Percentage analysis is a tool,which is used to identify the percentage of the responses.Percentage is used to compare the relative terms and distribution at two or more sources of data.It is a sample method used to find out the answer for 100.

Number of respondents Percentage of respondents = Total sample size 39 x 100

3.4. Chi-square test

"chi-square test is a statistical tool to determine whether an observed series of values differs from a series of values expected on a hypothesis, to a greater degree than would be expected by chance." The chi-square test examines whether knowing the value of one variable helps to estimate the value of another variable. It is widely used non-parametric tests in statistical analysis. The chisquare test describes the magnitudes of the discrepancy between theory and observation. The steps involved in chi-square are as follows: Observed frequency O is tabulated Expected frequency E are calculated Formula E=(RT*CT)/N Here, E = Expected frequency RT = the row total for the row containing the cell CT = the column total for the row containing cell N = the number of observation

The differences between observation and expected frequencies are obtained and squares of these differences are tabulated (O-E)2.The value of (O-E)2 is divided by the respective frequency and the total (O-E)2/E. The calculated value of 2 is compared with the table values 2 for given degree of freedom at certain levels of significance. By degrees of freedom we mean the number of classes to which the values can be assigned arbitrarily if at the 5% level of significance the calculated value of 2 is more than the table values 2 the theory and observation to be significance.

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RESEARCH METHODOLOGY FRAMEWORK S.NO: DESCRIPTION METHODS USED

1 2 3 4 5 6 7 8

Area of research Research design Population Sample size Sample technique Sampling tools Type of data used Data collection method

Marketing Descriptive research 100 50 Random sampling method Chi-square test Primary data Secondary data Questionnaire

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CHAPTER 4
DATA ANALYSIS&INTERPRETATION

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TABLE NO: 4.1.1 TABLE SHOWING GENDER OF THE RESPONDENTS

GENDER MALE FEMALE TOTAL

NO:OF RESPONDENTS 32 18 50

PERCENTAGE 64% 36% 100%

CHART NO:4.1.1

INTERPRETATION It is interpreted that out of 50 consumers, 64%of consumers are male and 36% of consumers are female. Hence, the majority of the buying consumers are male respondents. 43

TABLE NO:4.1.2 TABLE SHOWING TYPE OF FOOTWEAR PREFERING TO PURCHASE NO:OF RESPONDENTS BRANDED UNBRANDED TOTAL 40 10 50 PERCENTAGE 80 20 100

CHART NO:4.1.2

INTERPRETATION
It is interpreted that out of 50 consumers, 80%of consumers are buying branded footwear and 20% of consumers are buying unbranded footwear. Hence, the majority consumers like to purchase branded items.

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TABLE NO:4.1.3 TABLE SHOWING SATISFACTION OF RESPONDENTS NO:OF RESPONDENTS HIGHLY SATISFIED SATISFIED AVERAGE DISSATISFIED 18 20 10 1 PERCENTAGE 36 40 20 2 2 100
CHART NO:4.1.3

HIGHLY DISSATISFIED 1 TOTAL 50

INTERPRETATION
Among 50 consumers 18 consumers were highly satisfied with footwear, 20 were satisfied, and 10 were average satisfaction against VKC footwear. 45

TABLE NO:4.1.4 TABLE SHOWING FEATURES OF FOOTWEAR LIKING RESPONDENTS NO:OF RESPONDENTS DESIGN LEATHER SANDALS TOTAL 20 15 15 50 PERCENTAGE 40 30 30 100

CHART NO:4.1.4

INTERPRETATION
Out of 50 consumers,20 were liking design, 15 were liking leather items and 15 were liking sandals of VKC footwear.

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TABLE NO:4.1.5 TABLE SHOWING VALIDITY OF PURCHASING FOOTWEAR NO:OF RESPONDENTS ONCE IN A MONTH ONCE IN EVERY MONTH ONCE IN A YEAR TOTAL 8 6 36 6 50 PERCENTAGE 16 72 12 100

CHART NO:4.1.5

INTERPRETATION
Among 50 consumers, 72% of consumers were buying once in every 6 month,16% were buying once in a month and 12% were buying once in a year. 47

TABLE NO:4.1.6 TABLE SHOWING CONSIDER QUALITY WHILE PURCHASING: NO:OF RESPPONDENTS PERCENTAGE YES NO TOTAL 42 8 50 84 16 100

CHART NO:4.1.6

INTERPRETATION
It is interpreted that out of 50 consumers,84%of consumers were considering quality of product and 16% of consumers were considering quality before purchasing. Hence, the majority of consumers were considering quality of product before purchasing. 48

TABLE NO:4.1.7 TABLE SHOWING SUGGEST TO BUY THIS PRODUCT TO ANYONE: NO:OF RESPONDENTS YES NO TOTAL 36 14 50 PERCENTAGE 72 28 100

CHART NO:4.1.7

INTERPRETATION
It is interpreted that out of 50 consumers,72% consumers were suggesting and 28% were not suggesting to buy this product to anyone. So, the majority of consumers were suggesting to buyVKC product to anyone.

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TABLE NO:4.1.8 TABLE SHOWING INFLUENCES PURCHASE DECISION : NO:OF RESPONDENTS HUUBAND WIFE CHILDREN FRIENDS TOTAL 10 10 5 25 50 PERCENTAGE 20 20 10 50 100

CHART NO:4.1.8

INTERPRETATION
It is interpreted that out of 50 consumers,20% of husbands,20%of wifes,10% of childrens and 50% of friends were influencing in purchase decision. So,majority is friends were influencing in purchase decision of VKC. 50

TABLE NO:4.1.9 TABLE SHOWING EXPECTED PRICE RANGE OF RESPONDENTS: NO:OF RESPONDENTS BELOW 500 BETWEEN 500-1000 ABOVE 1000 TOTAL 23 20 7 50 PERCENTAGE 46 40 14 100

CHART NO:4.1.9

INTERPRETATION
Outof 50 consumers,46% of consumers were expecting price of below 500,40% of were between 500-1000 and 14% of consumers were expecting price of above 1000. Hence,most of consumers were expecting below 500 footwears . 51

TABLE NO : 4.1.10 TABLE SHOWING CONSIDERATION OF PRICE MAKE PURCHASING

NO:OF RESPONDENTS YES NO TOTAL 35 15 50 PERCENTAGE 70 30 100

CHART NO:4.1.10

INTERPRETATION
Among 50 consumers, 70% OF consumers were making price consideration before purchasing and 30% were making before purchasing of VKC footwear.

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TABLE NO : 4.1.11 TABLE SHOWING PROVIDING VALUE THAN UNBRANDED ITEMS

NO:OF RESPONDENTS YES NO TOTAL 43 7 50 PERCENTAGE 86 14 100

CHART NO:4.1.11

INTERPRETATION
Among 50 consumers,84% of consumers were satisfy with branded items and 14%of consumers were like unbranded items.

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TABLE NO : 4.1.12 TABLE SHOWING CONSUMERS PURCHASING LOCATION

NO:OF RESPONDENTS RETAIL SHOP SHOPPING MALL LOCAL OUTLET TOTAL 22 16 12 50 PERCENTAGE 44 32 24 100

CHART NO:4.1.12

INTERPRETATION
Among 50 consumers,44% of consumers were buying footwear from retail shop,32% were from shopping mall and 24%were buying from local outlets.

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TABLE NO : 4.1.13 TABLE SHOWING RESPONDENTS PURCHASING OF FOOTWEAR AMONG VKC FOOTWEAR: NO:OF RESPONDENTS VKC PRIDE VKC LITE VKC SLIPONS SMARTAK JUNIOR TOTAL 8 9 17 12 4 50
CHART NO:4.1.13

PERCENTAGE 16 18 34 24 8 100

INTERPRETATION

Out of 50 consumers,16% of consumers were using VKC PRIDE,18% of were using VKC

LITE,34% were SLIPONS,24% were SMARTAK and 8% of consumers were using JUNIOR. So, majority of consumers were using Slipons . 55

TABLE NO : 4.1.14 TABLE SHOWING INFLUENCE OF ADVERTISEMENT: NO:OF RESPONDENTS STRONGLY AGREE AGREE AVERAGE DISAGREE TOTAL 26 12 9 3 50
CHART NO:4.1.14

PERCENTAGE 52 24 18 6 100

INTERPRETATION
Out of 50 consumers 52% of consumers were strongly agree with influence by advertisement,24% were agree and 18% of consumers were average of influenced by advertisement. So, the majority of consumers were strongly agree with influence by advertisement. 56

4.2 CHI SQUARE TEST

RELATIONSHIP BETWEEN SEX AND BRANDING BRANDED MALE FEMALE TOTAL 37 32 69 UNBRANDED 13 18 31 TOTAL 50 50 100

Null hypothesis : There is no significant difference between sex and branding H0: Oi=Ei

Alternative hypothesis: there is a significant difference between sex and branding H1:Oi#Ei

LEVEL OF SIGNIFICANCE 0.05 @ 5% LEVEL OF SIGNIFICANCE

TEST STATITICS
= {( Oi Ei / Ei)2} OI 37 13 32 18 EI 34.5 15.5 34.5 15.5 OI-EI 2.5 -2.5 -2.5 2.5 (OI-EI)2 6.25 6.25 6.25 6.25 (OI-EI/EI)2 0.0049 0.025 0.0049 0.025 0.0598

EXPECTED VALUE
(r-1)(n-1)df (2-1)(2-1)@5% level of significance TABLE VALUE = 3.841 57

INFERENCE
Here calculated value is less than table value I.e., calculated value (0.0598) < table value (3.841) so we accept the null hypothesis H0. That is there is no significance difference between sex and branding used.

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4.2.2 Comparison of habit of purchase of product and Satisfaction of the consumer after consuming the product by using Chi-Square test. Null hypothesis: (Ho) There is no relationship between habit of purchase of product and Satisfaction of the customer after consuming the product by using Chi-Square test.

SATISFACTION OF THE CUSTOMER AFTER CONSUMING Total THE PRODUCT HIGHLY DISSATISFI NEUTRAL SATISFIED HIGHLY DISSATISFI ED ED Do you YES have the habit of NO purchase our product Total Chi-Square Tests-2 Value df Asymp. Sig. (2-sided) 4 .000 4 .000 2 0 2 7 0 7 16 0 16 10 1 11 0 14 14 35 15 50 SATISFIED

Pearson Chi-Square 45.671a Likelihood Ratio 54.384 Linear-by-Linear 29.860 1 .000 Association N of Valid Cases 50 a. 7 cells (70.0%) have expected count less than 5. The minimum expected count is .60. INFERENCE: The value (.000) is lesser than the level of significance (0.05) so we reject our hypothesis Ho. That is an association between habit of purchase of product and Satisfaction of the customer after consuming the product.

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CHAPTER 5 FINDINGS,SUGGESSIONS & CONCLUSION

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5.1 FINDINGS

Most of the respondents are in the age group of 25 to 35 years. Majority of consumers said that VKC footwear is a good footwear. VKC footwear gives better quality than other footwear. VKC footwear gives maximum satisfaction to consumers. majority of consumers like to buy VKC pride brand . 80%of consumers are buying branded footwear and 20% of consumers are buying unbranded footwear. Among 50 consumers 18 consumers were highly satisfied with footwear, 20 were satisfied, and 10 were average satisfaction against VKC footwear. Out of 50 consumers,20 were liking design, 15 were liking leather items and 15 were liking sandals of VKC footwear. 72% of consumers were buying once in every 6 month,16% were buying once in a month and 12% were buying once in a year.84%of consumers were considering quality of product and 16% of consumers were considering quality before purchasing. 72% consumers were suggesting and 28% were not suggesting to buy this product to anyone. 20% of husbands,20%of wifes,10% of childrens and 50% of friends were influencing in purchase decision. 46% of consumers were expecting price of below 500,40% of were between 500-1000 and 14% of consumers were expecting price of above 1000. Among 50 consumers, 70% OF consumers were making price consideration before purchasing and 30% were making before purchasing of VKC footwear. Among 50 consumers,84% of consumers were satisfy with branded items and 14%of consumers were like unbranded items. 61

Out of 50 consumers,16% of consumers were using VKC PRIDE,18% of were using VKC LITE,34% were SLIPONS,24% were SMARTAK JUNIOR. and 8% of consumers were using

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5.2 SUGGESSIONS
The main objective of every analysis is to find the bottlenecks of a business. Some of the suggesstions,the consumers told and some from the findings of the analyze are listed below: More number of consumers told that footwear must be designed in different style. Advertising of footwear must be attractive. A strong brand image can be created in the market. Company should maintain the quality of product to capture more market share. Company has to improve design of product. From this study it is found that a large percentage of consumers purchase VKC Footwear. From this study it is found that majority of consumers purchase from retail shops rather than showrooms. This indicates that the company has to make strategies to attract more consumers to the company showrooms. Identifying the last moving goods and giving promotional offers to them will be a good way to attract consumers. The company should make advertisement more effective and attractive.Improve continuous advertisement will help the product to boost the sales. Make product diversification and developments according to the needs of buyers. The company must start retail outlets in more areas.

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5.3 CONCLUSION
VKC group of companies pvt ltd,is one of the well known and most advanced manufacture of footwear.The company is prominent player in the footwear manufacturing industry in the country.Product quality enables the organization to get the prominent place among the competitors.The research study was to study about the buying behavior of consumers against the footwear.The study foundout that the company is having a strong position in market.Majority of consumers are happy with the availability of product ,quality,style of product etcThis enables the company to keep up their leading position in the market.Since the company is very much keen on keeping the quality of product,they are able to sustain their market leading position for the last few decades. The study found that buying processes of footwear are very much influenced by the women in the family. I was doing my work on the topic a study on consumer buying behavior of VKC footwear. The company is giving high concern for the quality of the certificates. The company doesnot have any trade unions but the employees are highly satisfied in the organization, this shows that the company is giving high priority for the welfare of the employees. In this competitive business field company should implemented more and better sales promotion activities. An individual doesnot simply purchase.He is forced to buy.He takes a decision to buy only when an inner feeling or urge arouses interests in him to buy a commodity or enjoys as service at a price. It is buying motives which induce a buyer to buy a particular product. Company should make more activities to attain the market share because of high competitors. The study reveals that VKC FOOTWEAR is a successive one in the economy and then industry.

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BIBLIOGRAPHY

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BIBLIOGRAPHY BOOKS

Russel Colley,Defining Advertising goals for measured Advertising Results,Association of National Advertisers,N.Y.1961.

Naresh k & Malhothra(2005),Marketing research An Applied orientation, New Delhi ,Pritice hall of India pvt ltd.

PHILIP KOTLER&GARY AMSTRONG92001),principles of marketing, New delhi,printice hall of India pvt ltd.

SCHIFFMAN L G,kanuk,L.L,Kumar,R.S,&WISENBLIT,j.(2010).Consumer behaviour.New Delhi:Dorling Kindersley(India)pvt ltd. Philip kotler,: Marketing management , 10 Ed.,Pearson/PHI.. JOBBER D.(2001) "Principles and practices of marketing " 3rd edition. G.R KOTHARI (1997) "Research methodology - methods and techniques" 2nd edition. David l.london & Albert j.della bitte"Consumer Behavior" 4th edition. TAPAN K PANDA,"Building brands in Indian market", First edition,Excel Books,New Delhi.

WEBSITE

www.google.com

www.wikipedia.com

www.scribd.com
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APPENDIX
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QUESTIONNAIRE
1. Name: 1. Gender: Male Female

Which type of footwear you prefer to purchase : Branded unbranded

1. Are you satisfied with buying branded items : Highly Satisfied Satisfied Average Dissatisfied Highly Dissatisfied 5.What features of footwear do you like most : Design Leather type Sandals 6. How often do you buy footwear : Once in a month once in every 6 month Once in a year

7.Will you consider the quality of product while purchasing : Yes No

8. Do you suggest to buy this product to anyone : Yes No

9. Who influences the purchase decision in your family : Husband Wife Children

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10. What is your expected price range : Below 500 Between 500-1000 Above 1000

11.Will you consider the price of footwear before making a purchase decision : Yes No

12.Will branded footwear provide more value than unbranded footwear : Yes No

13.From where do you buy your footwear : Retail shop Local outlets Shopping malls :

14.Do you personally like to shop for your footwear Yes No

15.Are you satisfied with variety of brand availability in market Highly Satisfied Satisfied Average Dissatisfied 16.Factors you consider while purchasing : Quality Price Design Durability

17.Among VKC footwear products which product do you buy : VKC pride Slipons VKC lite Smartak VKC stile Junior

18.Do you think the advertisement of VKC footwear has a influence in your buying decision: Strongly agree Strongly disagree Agree Average Disagree

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