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MARKETING

A COMPARATIVE STUDY OF CONSUMER BUYING


BEHAVIOR ON HAIR CARE PRODUCTS OF HUL AND
P&G
A PROJECT REPORT SUBMITTED TO FACULTY OF MANAGEMENT
STUDIES, UNIVERSITY OF DELHI IN THE PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF MASTERS IN BUSINESS
ADMINISTRATION

Under the Guidance of


DR. HAMENDRA KUMAR DANGI

Submitted By:
SOUKVINA PHILAVANH
Roll No. F-138
MBA, (FT) 2011-13

FACULTY OF MANAGEMENT STUDIES


UNIVERSITY OF DELHI
MARCH 2013

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A COMPARATIVE STUDY OF CONSUMER BUYING BEHAVIOR ON HAIR


CARE PRODUCTS OF HUL AND P&G
BY
SOUKVINA PHILAVANH
Faculty of Management Studies, University of Delhi

Submitted in the partial fulfillment of the requirements for the final year of
Masters of business administration
March, 2013

Under the guidance of


DR. HAMENDRA KUMAR DANGI
Faculty of Management Studies
University of Delhi

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Faculty of Management Studies


University of Delhi

CERTIFICATE

This is to certify that this final year project titled: Comparative study of consumer
buying behavior on hair care products of HUL and P&G submitted in partial
fulfillment of the requirements for the Degree of Master of Business Administration
by Ms. SOUKVINA PHILAVANH at Faculty of Management Studies, University of
Delhi is a record of original research work carried out by her under my guidance. Any
material borrowed or referred to is duly acknowledged.

DR. HAMENDRA KUMAR DANGI


Faculty of Management Studies
University of Delhi

SOUKVINA PHILAVANH
MBA FT 2011-13
Faculty of Management Studies
University of Delhi

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ACKNOWLEDGEMENT

I express my sincere thanks to my project guide Dr. HAMENDRA DANGI, for


providing me with an opportunity to work under this guidance and providing tireless
support during the course of the project. His continued cooperation, never ending
encouragement, meticulous guidance and uninhibited support at various stages helped
me in preparation of this research study.
I would also like to thank the staff of the Faculty of Management Studies, library and
administration section for their cooperation and support. And I have learnt from
several articles, research studies and papers. I acknowledge the value I have received
from these bodies of knowledge.

SOUKVINA PHILAVANH
Master of Business Administration (MBA)
Faculty of Management Studies
University of Delhi

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TABLE OF CONTENTS

Lists of figures and tables...6-7


Executive summary.....8-9
1. INTRODUCTION10
1.1. Introduction of FMCG ..............................................................................................10
1.2. Company profile ........................................................................................................11
1) Hindustan Unilever Limited (HUL) Brief history ...........................................11
2) Proctor & Gamble Company (P & G) Brief history ........................................12
1.3. Indian hair care market..............................................................................................14
1.4. Objectives of the research .........................................................................................18
2. LITERATURE REVIEW .................................................................................................19
2.1 Research review ..........................................................................................................19
2.2. Factors influencing consumer buying behavior decisions....................................24
3. RESEARCH METHODOLOGY ....................................................................................43
3.1. Survey Questionnaire design ....................................................................................43
3.2. Sample selection and data collection .....................................................................43
4. DATA ANALYSIS AND DISCUSSIONS ...................................................................48
4.1. Indian consumer buying behavior on hair care products of HUL and P&G ......48
4.2 Ranking of the influencing factors of Indian consumer buying behavior on hair

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care products of HUL and P&G Company ..................................................................52


4.3. The marketing strategy on hair care products of HUL and P&G ........................61
1) SWOT Analysis of Shampoo Market in India......................................................61
2) Marketing strategy of HUL .....................................................................................63
3) Marketing strategy of P&G ....................................................................................65
5. CONCLUSION AND RECOMMENDATION ...........................................................68
5.1. Indian consumer buying behavior on hair care products .....................................68
5.2. Factors affecting consumer buying behavior on hair care products....................69
6. BIBLIOGRAPHY .............................................................................................................72
Appendix..75

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LISTS OF FIGURES

Figure 1: Diversity in top consumer hair needs...15


Figure 2: Market Share of Shampoo Companies in India15
Figure 3: Per capita expenditure on hair care products16
Figure 4: Gender...48
Figure 5: Education..50
Figure 6: Income per month.51
Figure 7: The length of time of using hair care products.51
Figure 8: Willingness to spending for hair care products....52
Figure 9: Hair care products recommended to be used normally.52
Figure 10: Brands in which Indian consumers generally use...53
Figure 11: Sources of Medias...54
Figure 12: Factors influencing Indian consumer buying decisions..54
Figure 13: Sources of store locations...55
Figure 14: Reviews before buying decisions...56
Figure 15: BCG Matrix of Shampoo Brands in India..62
Figure 16: HUL strategy pyramid for Hair Care products...63

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LISTS OF TABLES

Table 1: Gender48
Table 2: Age.49
Table 3: Marital status..49
Table 4: Occupation.....49
Table 5: Education50
Table 6: Income per month..50
Table 7: Parameters influencing consumer buying behavior...57
Table 8: T-Test Analysis..60

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EXECUTIVE SUMMARY
FMCG refers to Fast Moving Consumer Goods, requirement for daily or frequent use.
Typically, a consumer buys these goods at least once a month. The sector covers a
wide gamut of products such as detergents, toilet soaps, toothpastes, shampoos,
creams, powders, food products, confectioneries, beverages, cigarettes.
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG)
Company based in Mumbai, Maharashtra. It is owned by the British-Dutch
company Unilever which controls 52% majority stake in HUL. Its products include
foods, beverages, cleaning agents and personal care products.
P&G is one of the largest and amongst the fastest growing consumer goods
companies in India. Established in 1964, P&G India now serves over 650 million
consumers across India. Its presence pans across the Beauty & Grooming segment,
the Household Care segment as well as the Health & Well Being segment, with
trusted brands that are household names across India. These include Vicks, Ariel,
Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B, Head &
Shoulders, Wella and Duracell.
According to Haircare industry in India reported from Datamonitor, in 2009, India
witnessed over 200 new product launches, Most new product launches occurred in
theshampoo category, which accounted for nearly 45% of all new offerings, followed
by conditioners and styling agents which collectively accounted for over 40% of
launches in 2009. Hair colorants accountedfor over 10% of new launches and this
figure is expected to increase in the future, due to a steadyincrease in Indias young
population. The least number of new product launches took place in the permsand
relaxers segment, which made up just about 2% of all new launches. This is primarily
because suchproducts target a very niche segment of the population and are yet to find
favour with the masses.
Therefore, my study was focused on three objectives to compare Indian consumer
buying behavior between HUL and P&G such as to study Indian consumer buying
behavior on hair care products of HUL and P&G, to evaluate the factors influencing

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hair care consumer buying behavior of HUL and P&G in Indian market and to assess
the marketing strategy on hair care products of HUL and P&G.
A sample size of 190 respondents was used for this study. Primary data and secondary
data were used in this study, and data from the questionnaire was analyzed by
software SPSS version 19 to describe the qualitative and quantitative data.
From the data analysis of Indian consumer buying behavior on hair care products of
HUL and P&G were generally females who used hair care products of HUL and
P&G, and 72.1% of the respondents were in the age group of 20-25 years. Moreover,
there was a relationship between age, gender and income to spending for hair care
products. On the other hand, the respondents behavior for using was under 1 year
only for hair care products of HUL and P&G, therefore Indian consumers did not
have product loyalty for both companies, and they might change or swift to other
brands anytime due to many factors for example prices for hair care products that they
were willing to spending was at Rs. 101-500. Hence, there was price sensitivity, agerelated, gender-related and income related for Indian consumers buying behavior for
hair care products of both companies. And there were many factors affecting them to
buy hair care products of HUL and P&G, most of them normally used only shampoo,
and some of them used shampoo with hair oil, so that both companies should be
considered the ways to attract them to buy other hair care products such as
conditioner, gel, spray, etc. however, according to HUL, there was only sales
promotion like buy shampoo get one conditioner free, on the other hand, Dove,
Sunsilk shampoo of HUL were very famous for Indian consumers and most of them
were females. In contrary, Head and shoulder, Pantene shampoo were famous for
both males and females. And those were the reasons why both companies wanted to
produce brands for females and males. However, 62.26% of the respondents said that
sources of Media factor in which Indian consumers preferred was from television, and
this advertising campaign of both companies HUL and P&G was successful on
broadcast Medias. Moreover, the other factors influenced Indian consumers to buy
was from friends and family. And store location factor was influenced Indian
consumers to buy hair care products especially from cosmetic store and retail store
near home. And Indian consumers were sometimes reviewed the information related
to hair care products before making decision to buy.
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1. INTRODUCTION
1.1. Introduction of FMCG
Fast Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) is products that
are sold quickly and at relatively low cost. Examples include non-durable goods such as soft
drinks, toiletries, and grocery items.Though the absolute profit made on FMCG products is
relatively small, they generally sell in large quantities, so the cumulative profit on such
products can be substantial. ITC Limited, Procter & Gamble and Unilever are the three
biggest consumer goods company that operates across the globe.

FMCGs refers to those retail goods that are generally replaced or fully used up over a
short period of days, weeks, or months, and within one year. This contrasts with
durable goods or major appliances such as kitchen appliances, which are generally
replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or because
the product deteriorates rapidly. Some FMCGs such as meat, fruits and vegetables,
dairy products and baked goods are highly perishable. Other goods such as alcohol,
toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover
rates.
FMCG refers to Fast Moving Consumer Goods, requirement for daily or frequent use.
Typically, a consumer buys these goods at least once a month. The sector covers a
wide gamut of products such as detergents, toilet soaps, toothpastes, shampoos,
creams, powders, food products, confectioneries, beverages, cigarettes. Typical
characteristics of FMCG products, individual items are of small value but all FMCG
products put together account for a significant part of the consumers budget. The
consumer keeps limited inventory of these products and prefers to purchase them
frequently, as and when required. Many of these products are perishable. The
consumer spends little time on the purchase decision. Rarely does he/she look for
technical specification (in contrast to industrial goods). Brand loyalties or
recommendations of reliable retailer/dealer drive purchase decision. Trail of a new
product

i.e.

brand

switching is

often induced by heavy advertisement,

recommendation of the retailer or neighbors/ friends. These products cater to


necessities, comforts as well as luxuries. They meet the demands of the entire cross
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section of population. Price and income elasticity of demand varies across products
and consumers.
1.2. Company profile
1) Hindustan Unilever Limited (HUL) Brief history
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG)
Company based in Mumbai, Maharashtra. It is owned by the British-Dutch
company Unilever which controls 52% majority stake in HUL. Its products include
foods, beverages, cleaning agents and personal care products.
HUL was formed in 1933 as Lever Brothers India Limited and came into being in
1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered
in Mumbai, India and has employee strength of over 16,500 employees and
contributes to indirect employment of over 65,000 people. The company was renamed
in June 2007 as Hindustan Unilever Limited.
Lever Brothers started its actual operations in India in the summer of 1888, when
crates full of Sunlight soap bars, embossed with the words "Made in England by
Lever Brothers" were shipped to the Kolkata harbor and it began an era of marketing
branded Fast Moving Consumer Goods (FMCG).
Hindustan Unilever's distribution covers over 2 million retail outlets across India
directly and its products are available in over 6.4 million outlets in the country. As per
Nielsen market research data, two out of three Indians use HUL products.
HUL works to create a better future every day and helps people feel good, look good
and get more out of life with brands and services that are good for them and good for
others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents,
shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods,
ice cream, and water purifiers, the Company is a part of the everyday life of millions
of consumers across India. Its portfolio includes leading household brands such as
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Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm,
Dove, Clinic Plus, Clear, TRESemm, Sunsilk, Pepsodent, Closeup, Axe, Brooke
Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.
2) Proctor & Gamble Company (P & G) Brief history
P&G is one of the largest and amongst the fastest growing consumer goods
companies in India. Established in 1964, P&G India now serves over 650 million
consumers across India. Its presence pans across the Beauty & Grooming segment,
the Household Care segment as well as the Health & Well Being segment, with
trusted brands that are household names across India. These include Vicks, Ariel,
Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B, Head &
Shoulders, Wella and Duracell. Superior product propositions and technological
innovations have enabled P&G to achieve market leadership in a majority of
categories it is present in. P&G India is committed to sustainable growth in India, and
is currently invested in the country via its five plants and over nine contract
manufacturing sites, as well as through the 26,000 jobs it creates directly and
indirectly. Our sustainability efforts focus on Environmental Protection as well as
Social Responsibility to help develop the communities we operate in.
P&G operates under three entities in India - two listed entities Procter & Gamble
Hygiene and Health Care Limited and Gillette India Limited, as well as one 100%
subsidiary of the parent company in the U.S. called Procter & Gamble Home
Products.
In 1964, a public limited company, Richardson Hindustan Limited (RHL) is formed,
which obtains an industrial license to undertake manufacturing of Menthol and Vicks
range of products such as Vicks VapoRub, Vicks Cough Drop and Vicks Inhaler.
In 1991, P&G liberalized the Indian house wife through the introduction of Ariel
Micro System. The years before Ariel, washing had been a long arduous process for
housewives, involving back breaking labor.
In 1993, P&G USA enters into a Joint Venture with Godrej Soaps in India & was
named Procter & Gamble Godrej (PGG) to leverage Godrejs scale & distribution in

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the Soaps category in India; however the JV for strategic business reason was
dissolved in 1996.
In 1995, Procter & Gamble Home Products enters the Hair care Category with the
launch of Pantene Pro-V.The New Pantene Amino Pro-V Complex range of shampoo
& conditioner comes in three variants suited for individual needs - Pantene Nourished
Shine, Pantene Hair Fall Control & Pantene Smooth & Silky. Enriched with the
goodness of pro-vitamins and three essential aminos, Pantene restores your hair with
its lost beauty while making your hair ten times stronger.
In 1995, P&G initiated the Point Of Market Entry program. The Direct to Consumer
(DTC) or Direct Marketing (DM) program followed with the launch of Ariel in India,
brought P&G brands closer to its consumers
In 1997, Procter & Gamble Home Products launches Head & Shoulders shampoo.
Since 1950, Head & Shoulders has been at the forefront of scalp and hair science,
significantly advancing the treatment of dandruff and scalp problems. Along with
professional advice and expert insight we have a wide range of products to care for
your scalp and nurture your hair. Head & Shoulders is available in 8 variants in India
including Men Hair Retain, Complete Care for Dry Scalp, Anti Hair fall, Smooth &
Silky, Cool Menthol, Clean & Balanced, Thick & Long & Silky Black.
P&G India moves from Tiecicion House, to its new headquarters at Chakala,
Mumbai. The building became functional in record breaking construction time Just
27months!
In 2003, P&G India gets Best Employer Award.Standing by the companys credo of
Touching Lives and Improving Lives, P&G launches Shiksha in 2004 in
association with CRY. The objective of the program is to educate underprivileged
children.
In 2009, P&G integrated Wella, Integration of business organization & Structure,
Employee harmonization in to P&G systems, benefits & policies etc. & laying the
foundation of business systems & processes like Order, Shipping, Billing systems,
Purchasing, financial data mgt & reporting.
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1.3. Indian hair care market


Hair care in India industry profile provides top-line qualitative and quantitative
summary information including: market share, market size (value and volume 200610, and forecast to 2015). The profile also contains descriptions of the leading players
including key financial metrics and analysis of competitive pressures within the
market. Essential resource for top-line data and analysis covering the India hair care
market includes market size and segmentation data, textual and graphical analysis of
market growth trends, leading companies and macroeconomic information.
The hair care market consists of the retail sale of conditioner, hair colorants, salon
products, shampoo and styling agents. The market is valued according to retail selling
price (RSP) and includes any applicable taxes. Any currency conversions used in the
compilation of this report have been calculated using 2010 annual average exchange
rates.
The Indian haircare market generated total revenues of $2.2 billion in 2010,
representing a compound annual growth rate (CAGR) of 15.4% for the period
spanning 2006-2010.
Conditioner sales proved the most lucrative for the Indian hair care market in 2010,
generating total revenues of $1.2 billion, equivalent to 57.8% of the market's overall
value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of
10.2% for the five-year period 2010-2015, which is expected to lead the market to a
value of $3.5 billion by the end of 2015.

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Figure 1: Diversity in top consumer hair needs

Figure 2: Market Share of Shampoo Companies in India

The top three companies in shampoo market are Hindustan Unilever Ltd., Procter and
Gamble and Dabur. From the pie chart, it is seen that Hindustan Unilever Ltd. is
dominatingthe market with 46% of market share followed by Procter and Gamble and
Dabur with 24%and 11% of market share. The other major players in the market are
Indian tobacco Company, Loreal and CavinKare with 6%, 3% and 2% of market
share.

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Figure 3: Per capita expenditure on hair care products

Changing consumer aspirations: Hair care, once an occasion based activity, has now
become anintegral part of Indian consumers daily beauty regime. With growing
disposable incomes andincreasing western influence, Indian consumers are not shying
away from experimenting withnewer or pricier products. This has created new
opportunities for the companies in this sector. Asa result, products such as hair styling
creams & gels, post wash serums etc. which once were nonexistent in the Indian
market are increasingly finding a place in the Indian consumers shopping basket.
A shift towards natural/organic products: According to the new product insight report
Haircare inIndia from Datamonitor, there is a growing preference towards product
made fromnatural/organic ingredients amongst Indian consumers. Owing to such a
strong demand, numerous personal care companies in India are introducing products
that appeal to consumerswho are keen to move away from conventional haircare
products made from harmful chemicals.
Increasing segmentation in haircare products: According to the latest report Haircare
in India, due to increasing competition, manufacturers of haircare products in India
have realized thepressing need to differentiate their offerings from other competing
brands. This has resulted ingreater segmentation in the haircare market. Increasing
awareness among consumers has mademanufacturers realize that a 'one size fits all'
approach is no longer enough to attract customers.The demand for customized
offerings has resulted in the emergence of niche segments in theIndian haircare
market, such as products which control dandruff, hair loss and thinning,
productswhich offer protein enrichment or hair softening properties.

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According to Product Insights: Haircare in India report from Datamonitor, in 2009,


India witnessed over 200 new product launches, Most new product launches occurred
in theshampoo category, which accounted for nearly 45% of all new offerings,
followed by conditioners and styling agents which collectively accounted for over
40% of launches in 2009. Hair colorants accountedfor over 10% of new launches and
this figure is expected to increase in the future, due to a steadyincrease in Indias
young population. The least number of new product launches took place in the
permsand relaxers segment, which made up just about 2% of all new launches. This is
primarily because suchproducts target a very niche segment of the population and are
yet to find favor with the masses.
When compared globally, India, with a share of 3.0%, ranked eighth in terms of new
product launches inthe haircare market. This relatively low rank belies the potential
that India holds for haircare products.However, as disposable income continues to rise
and beauty consciousness continues to grow amongmen and women of all age groups,
an influx of new products is expected in the future. While thepenetration of
specialized haircare offerings is still low in India, as product awareness and
industrydevelopment improve, consumer interest, particularly in rural India, is bound
to increase significantly.
Apart from traditional hair oil products, Indian hair care market remains largely
under-penetrated withlarge part of consumption still driven by urban consumers.
However, manufacturers are increasinglyfocusing on driving their sales from rural
and semi-urban areas by using sachet strategy and inducingconsumers to experiment
with new products.
Hair colorant market is one developing area which is showcasing enormous potential
for themanufacturers. There is a huge demand for hair colorant products from
consumers through bothprofessional salons as well as retail channels. Currently, local
players Godrej Industries control majorityof the Indian hair colorant market while
companies such as Loreal and P&G are launching their globalproduct portfolio into
the Indian market.
Increasingly Indian consumers specifically women are becoming more aware about
the global trends andare more willing to spend on their hair grooming. Today, women
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consumers do not mind shelling out extramoney to buy international brands which
give their hair that value-add treatment. However, even maleconsumers are becoming
as self-conscious as their female counterparts and are increasingly indulging inhair
styling. Hair creams & gels have become a phenomenon amongst the Indian males
who wish to wear a new hair looks every day. Here again, local player Godrej with its
Brylcreem dominate the hairstyling market. However, increasingly companies such as
Unilever, ParasPharma and Marico arelaunching their products to tap this nascent but
fast growing hair styling segment.With growing awareness and rising income, Indian
consumers are moving up the value chain in the haircare segment. Indian hair care
market would continue to see upward growth trajectory driven by strongdemand from
aspiring consumers. Companies in this industry need to increasingly focus to meet
demandfrom the evolving consumers who are now looking for more specialist
products to meet their specific needs.
1.4. Objectives of the research
1) To study Indian consumer buying behavior on hair care products of HUL and
P&G
2) To evaluate the factors influencing hair care consumer buying behavior of
HUL and P&G in Indian market
3) To assess the marketing strategy on hair care products of HUL and P&G

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2. LITERATURE REVIEW
2.1 Research review
RuchitaSaxena (2008) has explored the facts that Hindustan Unilever (HUL) has
increased its share in the shampoo market even as rivals Procter & Gamble (P&G)
and CavinKare have suffered erosion. She also mentioned that according to retail
measurement figures released by AC Nielsen, market leader HULs share grew from
46.9% in January to March (2007) to 47.8% in the October to December (2006)
quarter and in the same period, P&Gs market share fell from 25% to 23.7% and third
placed CavinKares from 12.6% to 12%.
P. Guru Ragavendran et al (2009) emphasized in their research that the survey helped
them in understanding the consumer perception on brand awareness and position of
product in the market. It was observed that consumers expectations were Quality,
benefits offered and packaging of shampoos. Based on the results obtained, integrated
marketing communication was suggested; as a result an improvement of 8% to 12.6%
was observed in target population.
Albert Ferror et al (2012) concluded in their study that the European market of
perfumery and cosmetics is the largest in the world. Germany has the largest market
in the Europe, followed by France, UK, Italy and Spain. These countries are the big
5 of the sector, and they are leaders in number of new product launches and in
volume of production, exports and imports.
Dr. Himani Sharma and Shallu Mehta (2012) said that Males frequency of using the
shampoo is very less as compared to females and the consumers do not concentrate on
the natural shampoos, they use it only for the purpose of cleaning, not for to make
their hair healthier and stronger. The frequency of shampoo usage in males is very
low. They use shampoo on special occasions such as weddings, parties etc. The
maximum respondents as 51.39% prefer the TV for the advertisement and the
consumers are not satisfied from the quality of the shampoo and also the free gifts
distributed with them. Sachet is more preferred as compared to bottles for the purpose
of packaging of shampoo.

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D. MuthamizhVendanMurugavel, (2010) PG & Research Department of Commerce,


Gobi Arts & Science College, Gobi, Tamil Nadu, India, A study on Consumers
Attitude towards Malted Food products with reference to Gobichettipalayam Town,
COLLEGE SADHANA, Journal for Bloomers of Research. This paper evaluated the
importance of health in the lives of human beings and the role of malted food drinks
in ensuring a healthy diet. The author says that malted food product gives energy
which is very helpful for good health. Malted food products can be grouped into two
categories: first category is for children such as Junior Horlicks, Cerelac, Amul,
Farex, Lactodexetc, second category is for malted food products such as Horlicks,
Boost, Bournvita, Complan, Viva, Maltova, etc, are common for all people.
The relevance of understanding consumer behavior is rooted in the modern marketing
concept. It manufacturers attention has switched over from the products to the
consumers. The marketing strategies and policies depend upon consumer behaviors. A
careful study of consumer behavior will facilitate marketers in determining the size,
form, style, color, package, brand etc. thus, with respect to the malted food drinks
market, it is very essential to understand the nuances of consumer behavior and the
responses of consumers to the marketplace due to attributes like form, color,
packaging, benefits etc in order to have a clear understanding of the market. The
specific objectives of the study undertaken are as follows: To analyze the brand
preference of consumers towards malted food products, to study the consumers
satisfaction towards malted food products, to analyze the problems faced by the
malted food product consumers
As such, the hypotheses for the study are as follows: Hypothesis 1:Ho- there is no
significant relationship between the age and brand preference of malted food product
consumers. Hypothesis 2: Ho- there is no significant relationship between the gender
and brand preference of malted food product consumers. Hypothesis 3: Ho- there is
no significant relationship between the education and brand preference of malted food
product consumers. Hypothesis 4: Ho- there is no significant relationship between the
annual family income and brand preference of malted food product consumers.
Hypothesis 5: Ho- there is no significant relationship between the age of the
respondents and their significant level. Hypothesis 6: Ho- there is no significant
relationship between the gender of the respondents and their significant level.
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Hypothesis 7: Ho- there is no significant relationship between the education


qualification of the respondents and their significant level of the malted food product
consumers. Hypothesis 8: Ho- there is no significant relationship between the annual
family income of the respondents and their significant level.
In order to constitute a sample size of 150 respondents, 30 business people, 30
agriculturists, 30 employed people (both private and government), 30 housewives and
30 students were purposely selected. Convenience sampling technique was employed
to collect required information from the respondents. On the basis of the responses,
and tests such as Chi square, it was concluded that the null hypothesis in all the
hypotheses except the 5th hypothesis were accepted. Thus, there is a significant
relationship between age of the respondents and the level of satisfaction of the malted
food products consumers, according to the research.
P.H.K. Prathiraja and A.Ariyawardana, (2003), Impact of Nutritional Labeling on
Consumer Buying Behavior, Sri Lankan Journal of Agricultural Economics. The
paper evaluated the important role nutritional labeling plays in providing relevant
nutrition information of food products to consumers. Inclusion of a nutritional label
on food items may be an important packaging decision for food processors. Hence, a
study was conducted in Sri Lanka with a view of identifying the market for nutritional
labeling and the factors that influence the consumer willingness to pay for nutritional
labeling.
According to food and drug administration (FDA) in the USA, a label is the primary
point of the contact between the producer and the purchaser and should be thought of
as an integral part of the producers marketing plan. It is not just a piece of paper
stuck onto the container but should be an expression of a number of important
decisions that have been made about marketing.
According to the FDA, a label should clearly and minimally state the name of the
product, the net weight, the nutrition facts panel (nutritional label), the name and
address of the manufacturer, and the brand name. These food labels have become
increasingly complex, particularly as products move from the status of basic
commodities to highly processed, value-added products.

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Nutrition labels can simplify the whole concept of healthy eating for consumers. They
help to keep track of the amount of fat and sugar, sodium and fiber, protein and
carbohydrates etc being consumed by means of intake of the package food product. It
also allows consumers to make an informed judgment of a products overall value.
In order to fuel the analysis, data was collected from a random sample of 90
consumers selected from three supermarkets located in Kandy, Sri Lanka. The market
for nutritional labeling was identified by exploring data and a legit method of analysis
was performed to identify the factors that influence the willingness to pay for
nutritional information on food items. A significantly greater proportion of individual
in the age category 36 to 50 years, individuals with tertiary education, individuals
with special dietary status and households with less than 4 members were willing to
pay more for the nutritional labels. Legit analysis showed that level of education and
special dietary status has a significant positive effect and the household size has a
significant negative effect on the willingness to pay for nutrition information.
Accordingly, it could be stated that incorporation of a nutritional panel in the package
would enhance the demand for food products and it would be an appropriate strategic
task for the local food processors.
The results of the study were as follows among the respondents, 86% had awareness
about the nutritional labels on food products, while 14% did not have awareness about
nutrition labels. This particular finding suggests that there is a consumer propensity to
read nutrition labels and it could change their purchasing behavior, which ultimately
reflects their relative valuation of taste versus health. Out of the 90 respondents,
77.8% considered that nutritional information on food items are vital for their
purchasing decisions. Among the other factors considered during food shopping such
as price, quality, packaging, label and brand, the highest level of importance was
attached to nutritional labeling on food products. 25% of the respondents stated that
they always read the nutrition labels when purchasing a food item and 62% said they
sometimes read it. Only 2% said that they never look at the label. This particular
finding suggests that printed nutrition information is an important sources of
information that consumer use in purchasing. Out of the total number of 90
respondents, 52.2% were willing to pay something additional for products with
nutrition information and 47.8% were not willing to pay anything additional. Of the
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90 respondents, 35 were in the 36-50 year age group and of those 74.3% indicated
that they are willing to pay for nutritional information on food items. Only 5
respondents were in the over 65 year age group, and of those 20 % revealed that they
are willing to pay for nutritional information. Chi square test results revealed that the
relationship between age and the willingness to pay is statistically significant at a
probability level of 0.05. Of the total number of respondents, 43 were males and 47
were females. Of the females, 20 were willing to pay for nutrition information, which
accounts for 57.4%. Males were less likely to pay for nutrition information. Chi
square test result revealed that the relationship between gender and the willingness to
pay is statistically significant at a probability level of 0.05. this result suggests that
females, their families food gatekeepers, have a large share of the responsibility for
their families health and are willing to pay more for nutrition information.
Out of the total 90 respondents 49 were in the income category Rs. 10,000 to Rs.
20,000 and of those 55.1% were willing to pay for nutritional information on food
items. 17 individuals were in the income category above Rs. 20,000 and of those
37.5% were willing to pay for nutritional labeling. However, there was no statistical
significance between income and the willingness to pay for nutrition information on
food items.
Of the total number of respondents, 38 households had less than 4 members and of
those 73.7% were willing to pay for nutrition information. However, only 19% of the
households with more than 4 members revealed that they are willing to pay for
nutrition information. Chi square test results revealed that there is a significant
relationship between household size and the willingness to pay. Of the total, 52
respondents had a university degree and of those 62% indicated that they are willing
to pay for nutritional labeling. 32 have had secondary education and of those 37.5%
were willing to pay for nutrition information provided on the food items.
To conclude, this study showed that consumers used nutritional labeling when making
a purchasing decision and that it is especially because of health consciousness. A
majority of the respondents revealed that they were willing to pay something
additional for the nutritional information provided on food items. Of those who were
willing to pay something additional, a greater proportion was in the age category 3650 years, had tertiary education and the households had less than 4 members.
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Further, logic analysis showed that gender, level of education and special dietary
status had a significant positive effect and the household size had a significant
negative effect on the willingness to pay for nutritional information. Accordingly, it
could be stated that incorporation of a nutritional panel on the package would enhance
the demand for the local food products and it would be an appropriate strategic task
for the local food processors. Thereby, these local producers could compete with the
other products with nutritional labels and also it would be an ideal strategy in
penetrating export markets where the nutritional panel is a legal requirement.
2.2. Factors influencing consumer buying behavior decisions
According to Kotler and Keller (2009), a consumers behavior is affected by 3
different factors: cultural, social and personal factors. There are many different kinds
of factors under each of these 3 categories.
Culture is one of the most major influences in consumer behavior. Consumption
choices cannot be understood without taking into consideration the culture in which
they are made. According to Solomon, Bamossy, Askegaad and Hogg (2006), culture
is a kind of like the share memory of a society. It is a mixture of meanings, rituals,
norms and traditions shared by a society or an organization. Another definition of
culture as given by Evans, Jamal and Foxall (2006), is to see it as a meaning system
that a member of a certain group uses to guide his or her life. The meaning system
gives people a sense of identity and rationale for their actions (how people should
behave in different context). Consumer products and services are the part of the
system of meaning. The system is often culturally shared and culture specific and it is
passed on from one generation to another.
Evans et al. (2006) define culture as consisting of 3 elements: 1. Cognitive elements
and beliefs, 2. Values and norms and 3. Signs, signals and symbols; Cognitive
elements and beliefs are the things that societies know about the physical and social
worlds. Cognitive elements and beliefs also encompass societys religious beliefs and
the ways in which the society works.

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Values and norms on the other hand refer to the way in which the majority of people
in the society are expected to behave. Signs, signals and symbols include language
and methods of conveying meaning.
However, the Indian culture is part so called collectivist cultures, in which according
to Solomon et al. (2006) cultures where more important is placed on achieving the
goals of a stable in group in contrast to individualistic culture where the emphasis is
on attaining personal goals. This has been taken into account in the study as well.
Family, social roles and statuses as well as different reference groups are some of the
social factors that, in addition to culture, affect consumer behavior. According to
Kotler and Keller (2009) a reference group is a group that has a direct or indirect
influence on a persons attitudes or behavior whereas according to Noel (2009),
reference groups serve as a way of comparing oneself to others. Family is one of the
most important reference groups and thus a major influence in consumer behavior.
Social roles and statuses also affect the way people choose to buy or not to buy a
certain product or a service. A social role is comprised of the activities a person is
expected to perform inside a certain group such as family or an organization. Status,
on the other hand, is something that each role carries with it; a senior manager has
more status than a junior manager. People often choose products and services that
reflect the roles they have and their actual or desired status in a society Kotler and
Keller (2009).
According to Kotler and Keller (2009, p. 194), those reference groups that have a
direct influence on a person are called membership groups. Membership groups can
be further categorized into primary groups and secondary groups. Primary groups are
those groups a person communicates with quite regularly and informally. In addition
to the most important reference group, family, primary groups include for example
religious and professional groups. Secondary groups require less regular interaction
and they are often more formal in nature compared to primary groups.
In addition to the reference groups people are part of, groups in which they dont
particular also influence consumers. These include inspirational groups, groups an
individual admires and hopes to join, and dissociative groups, groups whose values or
behavior a person resents and rejects. Kotler and Keller (2009) say that reference
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groups influence consumer behavior in 3 ways: they present and disclose new
behaviors and lifestyles, they influence attitudes and self-concept and they create
pressures for conformity that can have an effect on buying behavior.
Personal characteristics also influence a consumers behavior. Examples of personal
characteristics include the consumers age and stage in the life cycle, occupation,
economic circumstances, personality, self-concept, lifestyle and values. Kotler and
Keller (2009) values have such a huge impact on consumer behavior and are
important in terms of this study because of the ethical aspect of buying behavior.
Informational influence that someone provides to a consumer is often based on
personal experience; friends or acquaintances recommend products or services that
they have tested and have positive experience of. Turning to a friend for advice on
purchasing decisions saves the consumer time and energy; it decreases time required
to search for information and lessens the risk of dissatisfaction in terms of quality and
endurance of the product. Informational influence has great impact on consumer
behavior because people usually place high value on word of mouth communication,
especially in those cases where the information comes from a trusted source such as
friends or relatives that the consumer knows personally. (Noel 2009) Asch and Wolfe
(2001), tantamount to Noel (2009), also note that recommendations for products and
services made by friends or relatives have a higher value to a consumer than
recommendations made by sales staff for example. The impact and influence of word
of mouth communication will be covering marketing communications.
According to Kasser and Kanner (2004), consumers environmentally conscious
behavior is often socially influenced. They state that the best prediction of a consumer
making an environmentally friendly purchase is the people they know who have made
a similar type of purchase.
Asch and Wolfe (2001) as well as Kotler and Keller (2009) and Noel (2009) discuss
that social class is also a great influence of consumer behavior, although Kotler and
Keller (2009) define social class as being part of the cultural factors affecting
consumer behavior rather than personal factor. Social classes are hierarchically
ordered divisions of society whose members share similar values, interest and
behavior Kotler and Keller (2009). Social classes are usually quite homogenous
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according to Asch and Wolfe (2001) and Kotler and Keller (2009) social classes show
4 different kinds of characteristics.
Kotler and Keller (2009) and Asch and Wolfe (2001) note that in addition to age,
consumption is shaped by family life cycle. Family life cycle refers to the number,
age and gender of people in the household at any point in time. Moreover,
psychological life cycle stages, the certain passages and transformations people go
through in life, also affect consumer behavior. One of the phases in psychological life
cycle is becoming a parent, which may change an individuals consumption habits
radically.
Thus, different kinds of critical life events such as marriage, childbirth, illness,
divorce, carreer change, and widowhood may affect consumer buying behavior.
Kotler and Keller (2009)
The first characteristic is that people within a certain class tend to be more alike in the
way they dress, speak and use their free time than people in another social class.
Second, people are often perceived to have certain superior or inferior positions
according to their social class. The third characteristic linked to social classes is that
usually a cluster of variables indicates social class better than any single variable.
These variables include for example occupation, income, wealth, education, and value
orientation. The fourth thing that characterizes social classes is that people can move
from one social class to another during their life.
Noel (2009) states that an individuals social class can be determined based on several
factors of which occupation, education and income are the 3 biggest and most
important. Occupation and economic circumstances were also mentioned by Kotler
and Keller (2009) as some of the personal factors affecting consumer behavior.
Asch and Wolfe (2001) agree with Kotler and Keller (2009) in that social classes
show distinct preferences in terms of brands and products in for example clothing,
recreational activities and automobiles and thus affect the way people behave in
decision making situations. Noel (2009) discusses that social class is a good predictor
of purchasing behavior related low to moderately priced goods that have some sort of
symbolic value. These include for example cosmetics products.
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Kotler and Keller (2009) agree that occupation and the economic circumstances that
come with it are great influences in consumer behavior. The type of products and
services people choose to buy is greatly affected by their economic situation such as
spendable income, saving and assets, debts, borrowing power and attitudes toward
spending and saving. Luxury goods may be the desire of many but only few can
afford them. Although this is also a question of what kind of things different people
are willing to splurge on.
Personality and lifestyle are also factors that influence consumer behavior. Kotler and
Keller (2009) define personality as a set of differentiating psychological
characteristics that lead to relatively consistent and long-lasting responses to
environmental stimuli. Solomon (2007) shares this view by stating that personality
concerns the unique psychological features of a person and effects the way people
respond to their environment. According to Kotler and Keller (2009) as well as Asch
and Wolfe (2001), lifestyle on the other hand refers to the persons way of living as
expressed in activities, interests and opinions whereas according to Solomon (2007),
lifestyle is more related to buying behavior referring to the pattern of consumption
habits that reflects how a person allocates his or her time and money.
According to Solomon (2007), consumers personalities are important in terms of
buying behavior in the sense that they often reflect unconscious motives underlying
purchasing decisions. People cannot necessarily automatically recognize the real
motive or reason for buying a certain product or brand. This assumption has been
derived from Freuds theory of personality where the human mind consists of the id
(directs a person towards immediate satisfaction without thinking about the
consequences), the superego (the counterweight to the id) and the ego (the referee
between the id and the superego that tries to mediate between temptation and virtue).
Self-image and normative influences are likely to demonstrate a linkage. Self-image
refers to the perceptions individuals have of what they are like (Goldsmith, Moore
&Beaudoin 1999), whereas normative influence is defined as the other people or
groups who would approve or disapprove of the respondents performing behavior
(Ajzen&Fishbein 1980), Hu and Jasper (2006) revealed that an individual adopts a
behavior, which complies with others (normative influences), resulting from the belief
that adoption will enhance the individuals self-concept or self-image.
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The study of Siu and Wong (2002) investigated price, packaging, promotion,
salesperson, and store distribution for cosmetic product attributes in Hongkong.
Anderson and He (1998) found quality, price, brand, packaging, advertising, and
salesperson as influential attributes when Chinese consumers considered using
cosmetics in China. Additionally, Johri and Sahasakmontri (1998) revealed that
consumers attitudes toward grenn (environmentally-friendly) cosmetic products
evaluate a product based on its fragrance, color, performance, brand name, price,
whether it is safe for skin, opportunity to pre-test, outlet atmosphere, packaging,
ingredients, and whether it was tested on animals. Therefore, attributes affecting
buying skin care products are expected to include price, quality, packaging,
promotion, salesperson, advertising, brand and type of distribution. Consequently,
there is need to investigate how those attributes influence the attitudes of Indian
consumers towards buying hair care products.
Beaudoin and Goldsmith (1998) implied that attitudes towards buying apparel were
associated with self-image because purchasing apparel satisfies various needs, such as
self-image and self-identity. Like apparel, skin care cosmetics have symbolic and
communicative value. Cosmetics have found to influence person perception since
these products effect personal appearance. Accordingly, Coulter, Feick, and price
found that self-image had an influence towards applying and buying cosmetic
products for women in Hungary. This study proposes to examine self-image in a
different gender and therefore it expected that self-image in a different gender and
therefore it is expected that self-image influences the attitudes of consumers in the
purchase of hair care products in this study.
Shih and Fang (2004) found that normative influences such as friends, colleagues, and
family. So that, attitudes had influenced on behavioral intention in adopting internet
banking for customers in Taiwan; Buttle and Bok (1996) also found 2 predictor
constructs, which were attitudes and normative factors, affecting business travelers
intention toward staying in the hotel on the next business trip in Seoul, South Korea.
There is a need to examine the influence of attitudes toward using skin care products
and normative influences upon the intention to buy hair care products.
The major benefit of the reasoned action model is that it explains and predicts
purchasing behavior utilizing purchase intentions as mediator. On the other hand,
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Albrecht and Carpenter (Choo, Chung &Pysrachik 2004) have questioned the
mediating role of behavioral intention in purchase behavior and have argued that there
is a direct casual relationship between attitudes and behavior. However, most
researchers have demonstrated the validity of behavioral intention as a moderating
variable of behavior in various research settings.
There are mainly 3 focuses within the previous analysis that investigated that the
factors influencing whole switching, specifically the context, marketing mix factors
and client characteristics. The results of marketing mix factors are one in every of the
foremost interested areas and been frequently studied, and huge numbers of studies
centered on the influences of advertising and promotion on brand switching behavior.
Some analysis focused on the changes of consumers attitudes towards totally
different brands in numerous things, and the way situational context interact with
selling actions. Different analysis studied on how demographic variables influence
advertising/promotion responsiveness, the hierarchy of advertising/promotion
influence, and comparison of various products classes.
The relationship between product, price, promotion, advertising and whole switching
are examined in numerous product markets, as well as service and merchandise
sectors, and in numerous geographic markets.
Morgan and Dev (1994) examined 3 varieties of variables that influence brand
switching behavior, particularly changes in usage context or situation, marketing mix
variables which are directly controllable by the firm, and consumer background
variables. The analysis has been conducted inside service business attributable to the
upper importance of maintaining existing consumers for service retailing. The
advantage of this analysis is that the thought of each controllable and uncontrolled
factors influencing brand switching. The influence of controllable variables marketing
mix variables has been examined below a range of contexts, and varied from totally
team of consumers who have different characteristics. Moreover, the researchers
believed that context, control, and consumers variables could influence the level of
involvement, variety seeking, and cognitive processing. (Morgan and Dev, 1994),
and its meaningful and necessary to check the connection between client
involvement and brand selection behavior. The result showed the sturdy impact of the
special deal supply on brand switching, and therefore the necessary impact of usage
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context. The explanation of the importance of context, in keeping with Morgan and
Dev (1994), would be the result of consumers could not evaluate their purchase while
not considering the merchandise expertise context. Therefore, Morgan and Dev
believe that contextual analysis is crucial for investigating brand selection behavior in
service retail trade.
Another analysis conducted by Miller and Ginter (1979) tested the importance of state
of affairsal variables and studied if consumers attitudes can vary during a totally
different situation. Miller and Ginter (1979) believed that its meaningful to check the
variations of attitudes towards totally different brands during a specific state of affair.
Moreover, Miller and Ginter (1979) assumed that consumers brand selection
behavior could also be varied in numerous things. During the analysis, mainly 3
assumptions are made purchase levels of specific brands, attribute importance, and
perceptions of specific brands will vary differently across situations (Miller and
Ginter, 1979). The result showed that there is a modification in brand selection across
4 eating things, and sales volume of various brands additionally varied across 4
occasions.
The importance of analysis on alternative fast moving consumer goods in terms of
situational influence on brand switching could also be seen from the on top of
empirical analysis presented. In Chinese market, the dramatically increase in sales
throughout holidays, like spring festival and national day, worries by marketers and is
interest to several researchers. Each marketers and researchers have an interest within
the special consumer behavior throughout holidays that are thought of because the
golden amount of selling. Therefore, the analysis on the influence of scenario on
brand alternative behavior might be useful for corporations to create marketing
program based mostly on the importance of brand name attributes for special
vacation, and to create certain those vital brand attributes throughout a special amount
of your time is centered and promoted.
Marketing tools have been studied by many researchers in terms of their influence on
brand selecting behavior, and some models have been developed. McAlister (1982)
mentioned the factors influencing brand switching marketing variables, such as
price, product design, promotion and distribution and situational variables.
Carpenter and Lehmann (1985) created a model to analyze the relationship among
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marketing mix, brand switching, and competition. During this model, marketing mix
elements, particularly worth and advertising, have been investigated, further as how
these marketing mix elements influence complete switching and competition after
they works along with alternative factors such as brand name and merchandise
feature. The analysis found that price, promotion and advertising have both negative
and positive impacts on brand switching; particularly advertising, it will stimulate
customers to shop for more products, but at a similar time it is passing the data of
worth consciousness which may increase brand switching. Moreover, the analysis
prompts that corporations might reduce the intension of competition through its name
and multiple entries in the product line under the same brand name (Carpenter and
Lehmann, 1985). Researchers (Carpenter and Lehmann, 1985) prompt that by using
brand name to distinguish their own brands from others and by launching more
products under a similar brand, corporations will increase their complete awareness
and their competitiveness. In addition, (Carpenter and Lehmann, 1985) argued that it
is not sensible to adopt a single marketing strategy for all the products under a similar
brand and therefore the strategy for various levels of brands ought to diverge. For
instance, for the higher level brands having sound brand images, advertising could be
used to develop their good brand images; while for the lower level brands, price
promotion could be used to extend the sales volume.
The correlation between advertising and brand switching has been studied, and there
are different points of view towards the influences of advertising in terms of brand
switching behavior. Especially, the hierarchy models of consumers response to
advertising. A range of analysis learning on the method of how consumers respond to
advertising with their purchase additionally got to be investigated, as a result of there
are many intermediate effects before the ultimate purchase.
In order to understand the relationship between and brand alternative, it is necessary
to understand the objectives of advertising. There are some arguments concerning the
purposes of advertising. Some researchers mentioned that advertising is used to attract
new consumers, whereas some researchers argued that advertising is especially a tool
to take care of existing consumers and make them continue to purchase the same
brand.

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According to Lavidge and Steiner, the purposes of advertising mentioned by


researchers are mainly from two aspects: short-term and long-term effects (Lavidge
and Steiner, 1961). The short-term impact is aimed to attract a lot of consumers and
boost immediate sales, whereas the long-term effects can be providing information
and educating consumers to differentiate one brand from others, build up brand image
and improving client loyalty, and eventually increasing sales.
It is not surprise that the target of advertising is to boost sales: however where the
increased sales come from seems a motivating question for researchers. Many
researches focusing on this question suggests that there can be mainly two divisions
of the growing sales throughout advertising campaign. First, extra sales maybe made
because of the switching from other brand: consumers attempt new brands which they
do hardly ever purchase. Or consumers repeat their purchases and purchase a lot of
same brand merchandise. Analysis conducted by Deighton, Henderson and Neslin
(1994) discovered that sales increase comes largely from brand switching rather than
repeated purchase throughout an advertising activity. That is to say, the influence of
advertising on those consumers who already bought the merchandise promoted is a
smaller amount obvious than on those new consumers.
Several analyses will prove the correlation between advertising and sales increase.
Little 1979s analysis detected the positive result of advertising on sales, and equally.
Raj (1982), McDonald (1970) found the positive relation between advertising
exposure and complete switching, the analysis showed the higher switching rate when
consumers have a lot of chances to ascertain advertisements.
However, Ehrenberg (2000) held a different read purpose towards the target of
advertising. Ehrenberg 2000, p39, advertisings main role is to reinforce feelings of
satisfaction with brands already bought. Researchers (e.g. Simon and Arndt, 1980;
Tellis, 1988) holding the similar purpose of real recommended that the result of
advertising is to strengthen repeat purchase behavior, rather than to form brand
switching, and advertising has stronger impact on the consumers who are familiar
with the brand or already heard of the message which advertising is attempting to
pass.

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The effects of advertising are explained by Raj (1982) after the analysis which
targeted on the influence of shopper loyalty on the results of advertising has been
done. Per Raj (1982), advertising might have strong influence on lower loyalty
consumers by attracting them to change to the brand advertised, and higher loyalty
consumers can probably respond to the advertising with repeat purchase and increase
their purchase quantity. In this analysis 3 categories variables are tested: consumer
type, advertising content, and product type (Raj, 1982) three folds of investigations
are done in this analysis, first, the variations between two teams of consumers, namely
loyal consumers and non-loyal consumers; second, how advertising contents can
influence differing types of consumers; and third how advertising effectiveness can
amendment with different product varieties. The result urged that advertising strategy
ought to be adjusted base mostly on differing types of consumers. Moreover, the
analysis discovered a noteworthy result, and showed that there is no obvious
change/decrease in sales of competitive brands, though there is a rise in sales of
advertised product.
In Ehrenberg (2000)s opinion, repeat purchase accounts an outsized quantity of sales
volume of frequently purchased products, and analysis on advertisings main
effectiveness shouldnt solely be limited in discovering the last word purchase
behavior or the persuasive effectiveness of advertising, rather each stage of the
process of responsiveness must be investigated, as a result of there is no strong proof
to prove the effectiveness of persuasive role of advertising. In addition, a long-term
effect is also resulted from the reinforcement of advertising. Consumers might switch
back to the brand which they usually get after the promotion and advertising
campaign, in order to create a new purchase behavior and create repeat purchase,
advertising reinforcement is crucial and necessary (Ehrenberg, 2000).
Although the majority of marketer use immediate sales increase as a measurement of
effectiveness of advertising, the short-term affects cannot be thought of because the
completed criteria for the influence of proposed advertisement, as a result of longterm influence might occur in an exceedingly comparatively longer period. Lavidge
and Steiner (1961) urged that though short-term effects should not be ignored,
providing effects of abundant advertising would seem in an exceedingly long-term
period and therefore the effects dont seem to be direct (Ehrenberg, 2000). Therefore,
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in Lavidge and Steiners purpose of read, both short-term and long-term effects ought
to be invested.
Therefore, the increasing sales may not be the only criteria for the high effectiveness
of advertising, rather advertising effectiveness ought to be measured based mostly on
3 objectives: developing brand awareness and providing product knowledge, making
brand preference and positive feeling, building up trust and stimulating purchase
(Lavidge and Steiner, 1961). Beerli and Martin Santana (1999) argued that advertising
effectiveness ought to be outlined clearly. As a result of though increasing sales is the
goal of every company, the objectives of advertising is different from business goals,
and therefore the main purpose of advertising is to pass info and communicate with
existing or potential consumers. In different words, the effectiveness of advertising
ought to be evaluated based mostly on objective achievement. If the objective of
advertising cannot be achieved, its effectiveness may not be acceptable.
Different factors might affect the effectiveness of the advertising simultaneously. The
results of the analysis conducted by Lodish et al. (1995) shows that there is no strong
correlation between advertising expenditure and sales effects, as a result of there are
many different factors which may influence the advertising effectiveness, such as
brand and media strategy, and different product categories.
Biel and Bridgwater (1990) urged that the effectiveness of advertising, especially for
fast moving consumer goods, is said to liking and feeling towards the advertising.
There is a positive relation between liking and effectiveness of advertising. In
different words, if the TV advertising is more likable, shoppers is also more possible
to be persuaded. Moreover, the more relevant and meaningful advertising is more
effective than the advertising which solely has better entertainment functions and
therefore the factors which influence liking of consumer are trusted product category,
different forms of products might have issues/ various factors influencing industrial
liking or the importance of each factor might amendment. Hierarchy models of
consumers responses to advertising Vakratsas and Ambler (1999) analyzed great
amount of analysis on the results of advertising and found that there have been mainly
3 forms of models of how advertising works. The first category is market response
model, which no intermediate advertising effects thought of. Typically, advertising,
price, and promotional measures are associated with behavioral measures such as
Page | 35

sales or brand selection. Vakratsas and Ambler (1999) held the positive read towards
market response models attributable to its advantages. First, secondary data or
objective data could be utilized in analysis, and most important, the uncertainties
which are caused by intermediate measurement could be eliminated.
Furthermore, there are 2 levels of studies, namely aggregated-level and individuallevel studies, the previous uses market-level data, such as brand advertising
expenditures or market share; the latter use single supply data such as individual
brand selection (Vakratsas and Ambler, 1999). one in every of the samples of
aggregate level studies could be the analysis on the relationship between the impact of
advertising sales and advertising spending (Lodish et al., 1995).
The second category of models grouped by Vakratsas and Ambler (1999) are
hierarchy impact models, though there are several different hierarchy models and they
all concentrate on the process of advertising effects. In different words, hierarchy
impact models assume that the influence of advertising on consumers is a method, and
there are several steps and intermediate advertising effects in this method. One in
every of example of hierarchy advertising impact model is AIDA model:
Attention-Interest-Desire-Action studied by E. St. Elmo Lewis in 1989 (Vakratsas
and Ambler, 1999, p.26; Ehrenberg, 2000, p.41).
The steps and therefore the method of how advertising affects consumer ought to be
studied, though the validity of hierarchy models is argued by researchers as a result of
very few proof are often found (Palda, 1966) providing consumers may not change
their brand preference immediately from one brand to another, how consumers move
from one stage up to next stage and at last move to actual purchase stage is a
necessary problem for understanding consumers brand switching behavior, and it is
conjointly useful for increasing the effectiveness of marketing communication.
Lavidge and Steiner (1961) argued that the changes of all the stages of influence
should be evaluated, rather than solely live the event of brand name awareness or
sales stimulation. Theses 3 aspects of consumer responses could be derived from a
classic psychological model (Lavidge and Steiner, 1961), and similarly, Beerli and
Martin Sartana (1999) urged that the simplest thanks to live personal response is 3
component behavior analysis, namely cognition, affection and conation or rational,
emotional and striving states (Lavidge and Steiner, 1961). Moreover, Ehrenberg
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(2000) urged that the work of advertising could be studied from 3 aspects: product
awareness, product trial, and repeat purchase.
Similarly, Vakratsas and Ambler (1999) believed that advertising has some
intermediate effects such as on consumers beliefs, attitudes and behavior. Vakratsas
and Ambler (1999) mentioned the influence of advertising on these 3 dimensions, and
especially the behavioral effects, as an example, the influence on selection.
Morison (1966) compared 3 models which analyzed the influence of previous
purchase on buying call. First model assumes that buying call is a linear learning
process, since past purchase experiences would influence current call and the
influence of recent purchase have much stronger impact. In contrast, the second
model shows that solely the recent purchase would influence current purchase call,
and the third model assumes that there is no impact of previous purchase on current
purchase.
Deighton, Henderson and Neslin (1994) argued that it is not affordable to judge
advertising influence solely based mostly on current advertising. As a result of
consumers would respond differently to a same advertising looking on they recently
bought the brand or not. Therefore, without investigating the influence of previous
purchase, advertising and their interaction, the study would be less meaningful.
Deighton, Henderson and Neslin (1994) steered that advertising should not specialize
in the consumers simply bought the brand; instead, other potential users ought to be
targeted if the advertising needs to stimulate brand switching, since consumers who
simply bought the brand would have little responsiveness to the advertising.
It is price to note the interaction between getting expertise of consumer and
advertising (Deighton, Henderson and Neslin, 1994), as a result of the expertise of
previous advertising and get could interact with present advertising and end in
different brand choice behaviors (Ehrenberg, 2000). Deighton, Henderson and Neslin,
1994) developed a model which illustrates the relations among previous
advertising/promotion, current advertising/promotion, previous purchase, and current
purchase. Moreover, during this model, price, brand preference and size preference
have been thought about as determinants of current purchase. It showed the continual
influence of previous advertising through its interaction with previous purchase. The
Page | 37

model shows again that the influence of advertising and promotion is not solely shortterm, most frequently they would affect sales during a longer period of time with the
expertise of previous purchase.
Ehrenberg (2000) mentioned that consumers may not be interested in a billboard for a
brand or new brand which they are doing not frequently purchase, and consumers
could purchase over one brand product throughout a period of time. Therefore, the
first step of brand choice behavior, creating brand awareness, is very important.
Additionally, stimulating consumers to undertake the new brand is also crucial, as a
result of consumers will most likely solely type repeat purchase behavior when they
try the product.
Promotion tools have been thought about mutually of the most helpful tools to
influence sales volume in an exceedingly short-term period of time (Laroche et al.,
2003). Neslin et al. (1985) thought about promotions as sales acceleration and
maximizing tools. According to Gupta (1988), the impacts of price and promotions on
which brand consumer will opt for, after they are willing to buy merchandise, and the
way a lot of they are going to obtain are vital. Laroche et al. 2003) summarized 3
main benefits of marketing, as well as triggering unplanned purchase, encouraging
consumers to buy non-promoted merchandises, accelerating the quantity of looking
journeys to the store. Clearly promotion has been thought about one in every of the
stimuli of brand switching and repeat purchase.
Oliveira-Castro et al. (2005) argued that the major impact of promotions is on brand
shifting rather than increased consumption. Oliveira-Castro et al. (2005) additionally
suggest that complete purchasing need to be studied from 2 dimensions, specifically
utilitarian and symbolic factors, as a result of consumers want to realize each
utilitarian and informational edges from their brand purchases. Thats to say, when
a consumer is shopping for a brand she or he is truly shopping for not solely the
functions of the merchandise but additionally the fulfillment of emotional needs.
There are 2 double explanations for the increased sales resulted from promotion, one
is the increased purchasing quantity from existing consumers, and therefore the
different is the new purchase from new consumers. Existing consumers might store
more product that they dont want immediately, they will store pile the merchandise
Page | 38

throughout promotion activities. If all the increasing sales from existing consumers in
short-term, there could also be no vital changes or increase in sales in an exceedingly
long-term amount as a result of the shop piling (Gupta, 1988). Therefore, the most
purpose of promotion could be attracted more new customers, rather than stimulate
existing shoppers to buy more some products. However, according to Ehrenberg and
Hammond (1995), price promotion has more impacts on existing consumers rather
potential consumers. In distinction, the results of different research (Gupta, 1988:
Bell, Chiang and Padmanabhan, 1999) shows that superior effect of promotion is the
patrons who switch from different brands rather than on the prevailing buyers. Within
the research conducted by Gupta (1988), brand switching accounts more than
eightieth of sales increase throughout the promotion, as well as a tiny low share of
sales increases come from the switching within a brand.
Promotion is one in every of the aspects within the selling combine which have been
studied in terms of its relationship with the consumers responsiveness, especially at
the stage of behavior: the actual purchase behavior (Shi, Cheung, and Prendergast,
2005).
According to (Shi, Cheung, and Prendergast, 2005), previous research has revealed
the link between marketing and consumers behavioral responsiveness, and therefore
the research showed that marketing has the positive influence on consumers
behavior, like brand switching, stockpiling, purchase acceleration, product trial and
spending larger amount (Shi, Cheung, and Prendergast, 2005), although there are
some arguments regarding the negative influences of price promotion for higher level
brands (Ehrenberg, Hammond, and Goodhardt, 1994). However, the negative effect
on brand has not been proved by the research conducted by Davis, Inman and
McAlister (1992). The study compared the evaluations of consumers analysis for
brands once promotion, and located that there is no obvious amendment of
consumers analysis for brands once the promotion. The cognitive affective
behavior framework has been adopted in this study, and complete analysis queries
have designed based mostly on this framework. The variables of consumers felling,
brand quality, and merchandise usage have been used to evaluate brands. Questions,
like make me feel smart regarding myself, is prime quality, is a complete I exploit
frequently, have been asked to check respondents attitudes towards brands.
Page | 39

Research studied on 5 promotion tools and brand switching in Hong Kong (Shi,
Cheung, and Prendergast, 2005) proved that 3 promotion tools, price discounts, buy
one get one free offers, and in store demonstration, have vital influence on complete
alternative. The explanation for this result could also be explained by different
researchers, like the consequences of in-store demonstrations on brand switching.
Ram and Sheth (1989) believed that demonstrations in stores can attract consumers to
buy new products, and therefore the barriers of perform and emotion is reduced.
Different promotional tools, like cents off and free gift have been additionally
studied in (Lichtenstein et al.s research in 1997).
Some researchers argued that the studies on marketing should not be solely restricted
in behavioral level; instead, the psychological or attitudinal elements must be
investigated furthermore (Lichtenstein et al., 1997; Laroche et al., 2003). It is similar
with the arguments regarding the influence of advertising on brand alternative
behavior; some researchers are interested within the intermediated influence like
advertising/promotion effects on emotional and attitudinal changes before purchasing.
In Laroche et al., 2003 on the linkage between promotional tools and consumers
emotional, attitudinal, and behavioral responses, 2 differing types of promotional
tools have been investigated to match their distinctive effects on consumers, and this
research additionally studied the contributions of many trait variables to the
distinction of responsiveness.
Price has been thought about as a determinant of brand switching in the Linear
LearningModel developed by Lilien (1974). How consumers can behave a
modification their purchases when some product classes and types are in value
promotion, how consumers can response to cost changes, how value modification
may result in responsiveness from consumers and complete sales changes are
interested by marketers and researchers, as a result of value is one in every of the
foremost important factors of creating marketing strategic and tactical decision like
pricing, promotion and segementation (Oliveira-Castro et al., 2005).
According to Oliveira-Castro et al., 2005, customers might response value promotion
differently for different levels brand, and their goal would be to gain the maximum
advantages as well as each utilitarian and informational advantage, in addition as
minimize their purchase prices. Krishna (1992) urged that buyers have varied
Page | 40

expectations for different brands; consequently, they may answer price oriented
promotions differently. That is to say, consumers completely different value
expectations for brand can in all probability have an effect on how they will react to
the promotions. Consistent with Krishna (1992), if customers have no value
expectations for specific brands, they will select the product based on the promotion,
instead of their preferences. However, if customers have value expectations for a few
brands, they may purchase fewer products form less most well liked brands and watch
for the value promotion for his or her most well-liked brands.
The interaction of value sensitiveness and advertising/promotion has been studied and
research conducted by Mela, Gupta, and Lehmann (1997) showed that different
influences of value sensitiveness on advertising and promotion. They found that
buyers might diminish value sensitive by the influence of advertising, whereas
promotion might make shopper additional value sensitive.
A model of consumer decision making: External influence
Input
Firms marketing efforts
1.
2.
3.
4.

Product
Promotion
Price
Channels of distribution

Social-cultural environment
1. Family
2. Informal sources
3. Other non-commercial
sources
4. Social class
5. Subculture and culture

Consumer decision making Process

Need recognition
Psychological field
Pre-purchase search

1. Motivation
2. Perception

Page | 41

Evaluation of alternatives

3. Learning
4. Personality
5. attitude

Experience
Post-decision behavior: Output
Purchase
1. trial
2. repeat purchase

Post-purchase evaluation

Page | 42

3. RESEARCH METHODOLOGY
3.1. Survey Questionnaire design
In the survey questionnaire was focused on the factors in which influencing Indian
consumer buying behavior on hair care products of HUL and P&G. Therefore, the
survey questionnaire was related to Consumer background and the important
parameters while buying hair care products. Hence, this study was divided into two
parts for respondents to answer the survey questionnaire.
3.2. Sample selection and data collection
A research design was purely and simply the focus of the studying on Indian
consumer buying behavior of hair care consumption in Delhi, the factors influencing
buying behavior and marketing strategy was conclusive in nature that guides to the
collection and analysis of data of HUL and P & G Company. The descriptive research
design was used in this project such as consumer buying behavior, the factors
influencing consumer buying behavior, and Indian consumers opinions were
necessary for obtaining the data.
Primary data was collected by the questionnaires based marked survey. Secondary
data was obtained from journals, magazines, newspapers, books, and internet.
For doing the survey research, structured questionnaires with closed-ended questions
were used in this study.
The sampling used for this study was probability sampling. Since the study was only
meant for certain specific categories within the total population, a stratified random
sample was used. Especially a set people who live, stay, work, study in Delhi viz.
institutions, universities, colleges,and general public.
A sample size of 190 respondents was used for this study.
This study was basically an opinion survey of the male and female in category of
general public, students, and public to response the survey questionnaire.

Page | 43

The study and survey was done in Delhi only particularly major institutions, colleges,
universities, major markets, and etc.
The t-test was used as the main method for testing the hypothesis. 5% of the
significance coefficient was chosen to test the data. The t-test performed was one
sample t-test at 95% confidence interval. Null hypothesis is tested for rejection in
each case.
The data collection and analyze the data from the respondents was analyzed by using
software SPSS version 19 to describe the quantitative and qualitative data.
To study the factors influencing Indian consumer buying behavior on hair care
products of HUL and P&G, these hypothesis will test the relationship between these
factors and consumer buying behavior decision of hair care products on a 5-point
scale of Unimportant to Important.
Hypothesis 1
H0 there is no significant relationship between brand name and buying behavior
decision
H1- there is some relationship between brand name and buying behavior decision
Hypothesis 2
H0 there is no significant relationship between personal experience and buying
behavior decision
H1- there is some relationship between personal experience and buying behavior
decision
Hypothesis 3
H0 there is no significant relationship between packaging and buying behavior
decision
H1- there is some relationship between packaging and buying behavior decision

Page | 44

Hypothesis 4
H0 there is no significant relationship between new product and buying behavior
decision
H1- there is some relationship between new product and buying behavior decision
Hypothesis 5
H0 there is no significant relationship between quality and buying behavior decision
H1- there is some relationship between quality and buying behavior decision
Hypothesis 6
H0 there is no significant relationship between texture of product and buying
behavior decision
H1- there is some relationship between texture of product and buying behavior
decision
Hypothesis 7
H0 there is no significant relationship between previous usage experience and
buying behavior decision
H1- there is some relationship between previous usage experience and buying
behavior decision
Hypothesis 8
H0 there is no significant relationship between natural or herbal product and buying
behavior decision
H1- there is some relationship between natural or herbal product and buying behavior
decision

Page | 45

Hypothesis 9
H0 there is no significant relationship between experts and buying behavior decision
H1- there is some relationship between experts and buying behavior decision
Hypothesis 10
H0 there is no significant relationship between product characteristics and buying
behavior decision
H1- there is some relationship between product characteristics and buying behavior
decision
Hypothesis 11
H0 there is no significant relationship between price and buying behavior decision
H1- there is some relationship between price and buying behavior decision
Hypothesis 12
H0 there is no significant relationship between sales promotion and buying behavior
decision
H1- there is some relationship between sales promotion and buying behavior decision
Hypothesis 13
H0 there is no significant relationship between personal selling and buying behavior
decision
H1- there is some relationship between personal selling and buying behavior decision
Hypothesis 14
H0 there is no significant relationship between advertisement and buying behavior
decision

Page | 46

H1- there is some relationship between advertisement and buying behavior decision
Hypothesis 15
H0 there is no significant relationship between ambience of the store and buying
behavior decision
H1- there is some relationship between ambience of the store and buying behavior
decision
Hypothesis 16
H0 there is no significant relationship between safety for head and buying behavior
decision
H1- there is some relationship between safety for head and buying behavior decision
Hypothesis 17
H0 there is no significant relationship between product trustworthiness and buying
behavior decision
H1- there is some relationship between product trustworthiness and buying behavior
decision
Hypothesis 18
H0 there is no significant relationship between product loyalty and buying behavior
decision
H1- there is some relationship between product loyalty and buying behavior decision

Page | 47

4. DATA ANALYSIS AND DISCUSSIONS


4.1. Indian consumer buying behavior on hair care products of HUL and P&G
Out of 190 respondents, 28.4% were males and 71.6% were females. There was a
good variation in their age groups covering students, self-employed, salaried and
others.
Table 1: Gender
Gender

Valid

Valid

Cumulative

Percent

Percent

28.4

28.4

28.4

136

71.6

71.6

100.0

190

100.0

100.0

Frequency

Percent

Male

54

Female
Total

Figure 4: Gender

Page | 48

Table 2: Age
Age

Valid

Valid

Cumulative

Percent

Percent

15.3

15.3

15.3

137

72.1

72.1

87.4

26-30

14

7.4

7.4

94.7

31-35

3.7

3.7

98.4

More than 40

1.6

1.6

100.0

Total

190

100.0

100.0

Frequency

Percent

Below 20

29

20-25

From the table above, out of 190 respondents, 72.1% who were in the age group of
20-25 years, 15.3% for consumers who were below 20 years, 7.4% of consumers who
were 26-30 years, 3.7% who were 31-35 years, and 1.6% were more than 40 years.
Table 3: Marital status
Marital status

Valid

Valid

Cumulative

Percent

Percent

95.8

95.8

95.8

4.2

4.2

100.0

190

100.0

100.0

Frequency

Percent

Single

182

Married
Total

According to table above, 95.8% of the respondents who were single and most of
them were students studied in major universities in Delhi, 4.2% of the respondents
were married.
Table 4: Occupation
Occupation

Valid

Valid

Cumulative

Percent

Percent

95.8

95.8

95.8

1.1

1.1

96.8

Salaried

1.6

1.6

98.4

Other

1.6

1.6

100.0

Total

190

100.0

100.0

Frequency

Percent

Student

182

Self-employed

Page | 49

Out of the total 190 respondents, 95.8% were students, self-employed was only 1.1%,
1.6% of the respondents were salaried and other jobs.
Table 5: Education
Education

Valid

Valid

Cumulative

Percent

Percent

54.2

54.2

54.2

81

42.6

42.6

96.8

Other

3.2

3.2

100.0

Total

190

100.0

100.0

Frequency

Percent

College graduate

103

Post graduate

Figure 5: Education

Out of the total 190 respondents, 54.2% was college graduate, 42.6% was post
graduate, and 3.2% for other qualifications.
Table 6: Income per month
Income

Valid

Valid

Cumulative

Percent

Percent

72.6

72.6

72.6

33

17.4

17.4

90.0

10,001-15,000 INR

11

5.8

5.8

95.8

15,001-20,000 INR

1.6

1.6

97.4

Above 20,000 INR

2.6

2.6

100.0

Total

190

100.0

100.0

Frequency

Percent

Less than 5,000 INR

138

5,001-10,000 INR

Page | 50

Figure 6: Income per month

Out of the total 190 respondents, 138 were in the income category less than Rs. 5.000
and of those 72.6% were willing to buy hair care products, 33 individuals were in the
income category from Rs. 5.001 to 10.000 and of those 17.4%, 5.78% of the
respondents who had income from Rs. 10.001 to 15.000, from Rs. 15.001 to 20.000
were only 1.57%, and 2.63% of the respondents were above Rs. 20.000. However,
there was a relationship between income and willingness to spending for hair care
products.
Figure 7: The length of time of using hair care products

Out of the total 190 respondents, 46.03% for respondents who used hair care products
under 1 year, 37.57% of the respondents used hair care products around 3-6 years,
8.99% of the respondents used more than 9 years and 7.41% of the respondents used
for 6-9 years for their favorite brand. However, they might change their buying
behavior due to some factors.

Page | 51

Figure 8: Willingness to spending for hair care products

Out of the total 190 respondents, 56.08% were willing to spending for hair care
products at Rs. 101-500, 23.28% of the respondents were willing to buy hair care
products less than Rs. 100, 13.23% of the respondents were willing to pay at Rs. 5011000, 5.82% of the respondents were willing to buy at Rs. 1001-1500, and 1.59% of
the respondents were willing to buy hair care products above Rs. 1500.
4.2 Ranking of the influencing factors of Indian consumer buying behavior on
hair care products of HUL and P&G Company
Figure 9: Hair care products recommended to be used normally

However, Indian consumer buying behavior on hair care products accordingly to the
statistic above, out of the total 190 respondents, 55.45% normally were used shampoo
Page | 52

only for hair care products, 23.64% of the respondents were usually used shampoo
with hair oil, 14.55% of the respondents were used shampoo with hair serum and
other hair care products, 2.73% of the respondents were used shampoo with hair
spray, and 1.82% of the respondents were used shampoo with conditioner and hair
gel.
Figure 10: Brands in which Indian consumers generally use

From the statistic above on the brands in which the respondents were generally used,
particularly, out of the total 190 respondents, 36.54% of the respondents usually were
used Dove shampoo of HUL and most of them were female, 17.31% of the
respondents were used Head and shoulder shampoo of P&G and most of them were
male, 14.74% of the respondents were used other brand names of Indian company,
10.26% of the respondents were used Sunsilk shampoo of HUL, 9.62% of the
respondents were used Pantene shampoo of P&G, 6.41% of the respondents were
used Herbal essence shampoo of P&G, 2.56% of the respondents were used Clinic
plus shampoo of HUL, and others were used hair care products of P&G as 1.28%
only. Therefore, there was a relationship between brands and gender of the
respondents.

Page | 53

Figure 11: Sources of Medias

From the figure above, 62.26% of the respondents were preferred to see hair care
products from broadcast media like television, 17.61% of the respondents were
preferred to see from other sources such as internet, etc., 16.35% of the respondents
were preferred to see from newspaper and magazines, 2.52% of the respondents were
preferred to see from posters and brochures, and only 1.26% of the respondents were
preferred to know from radio.
Figure 12: Factors influencing Indian consumer buying decisions

However, out of the total 190 respondents, 40.41% of the respondents was the factor
from friends that attract them to buy hair care products, 21.92% of the respondents
were influenced by their family, 15.75% of the respondents were influenced to buy
from other sources such as from their selves and necessary, 15.07% of the

Page | 54

respondents were influenced from social medias, 4.11% of the respondents were
influenced to buy from commodities, and only 2.74% of the respondents were
influenced to buy from famous people.
Figure 13: Sources of store locations

Although, hair care products were available everywhere but store location factor was
still influenced them to buy hair care products because of hair care products are
personal and dairy products in which they had to use normally. Hence, from the
statistic above of the store locations were very important factor influenced them to
buy.
Therefore, out of the total 190 respondents, 27.27% were willing to buy hair care
products from cosmetic store, 23.38% of the respondents were willing to buy from
retail store near home, 20.13% of the respondents were willing to buy from
convenience store, 12.99% of the respondents were willing to buy from supermarket,
12.34% of the respondents were willing to buy from chemist store, and 3.90% of the
respondents were willing to buy from other stores instead.

Page | 55

Figure 14: Reviews before buying decisions

However, before buying a product, the customers might review their products and
services that they wanted to buy by reviewing to the information related to the
products from other sources to help them making buying decisions such as from
friends, family, internet, etc.,
Hence, according to the statistic above, out of the total 190 respondents, 34.21%
especially Indian respondents or consumers, would read reviews sometimes before
purchasing hair care products, 18.42% of the respondents were often read the reviews,
17.37% of the respondents were read the reviews very rarely, 16.84% of the
respondents were very often read the reviews of hair care products before buying, and
13.16% of the respondents were never read the reviews at all.
INTERPRETATION OF ALL HYPOTHESES
Hypothesis testing
Taking all the parameters in the questionnaire for the hypothesis:

Important of brand name on buying behavior decision

Important of personal experience on buying behavior decision

Important of packaging on buying behavior decision


Page | 56

Important of new product on buying behavior decision

Important ofquality on buying behavior decision

Important of texture of product on buying behavior decision

Important of previous usage experience on buying behavior decision

Important of natural or herbal product on buying behavior decision

Important of experts on buying behavior decision

Important of product characteristics on buying behavior decision

Important of price on buying behavior decision

Important of sales promotion on buying behavior decision

Important of personal selling on buying behavior decision

Important of advertisement on buying behavior decision

Important of ambience of the store on buying behavior decision

Important of safety for head on buying behavior decision

Important of product trustworthiness on buying behavior decision

Important of product loyalty on buying behavior decision

H0 Mean is greater than 4


H1 Mean is not greater than 4
T-TEST on all the factors is applied on all the factors and the interpretation is done on
the value of p value respect to (alpha)/2.
Table 7: Parameters influencing consumer buying behavior
One-Sample Statistics
Std.

Std. Error

Deviation

Mean

3.79

1.110

.081

190

4.35

1.047

.076

Packaging

190

2.93

1.206

.088

New product

189

2.85

1.195

.087

Quality

190

4.43

1.030

.075

Parameters

Mean

Brand name

190

Personal experience

Page | 57

Texture of product
190

3.71

1.063

.077

Previous usage experience

190

4.24

.988

.072

Natural/herbal product

190

3.94

1.042

.076

It was tested by experts

190

3.68

1.184

.086

Product characteristics

190

2.65

1.189

.086

Price

190

3.62

1.133

.082

Sales promotion

190

3.45

1.134

.082

Personal selling

190

2.45

1.266

.092

Advertisement

190

2.99

1.217

.088

Ambience of the store

190

3.01

1.226

.089

Safety for head

190

4.41

.987

.072

Product trustworthiness

190

4.29

1.012

.073

Product loyalty

190

3.94

1.271

.092

(smell, color)

One-Sample Test
Test Value = 0
Sig.
parameters

df

(2tailed)

Brand name

95% Confidence
Mean

Interval of the

Difference

Difference
Lower

Upper

47.110

189

.000

3.795

3.64

3.95

57.249

189

.000

4.347

4.20

4.50

Packaging

33.442

189

.000

2.926

2.75

3.10

New product

32.743

188

.000

2.847

2.68

3.02

Quality

59.291

189

.000

4.432

4.28

4.58

48.054

189

.000

3.705

3.55

3.86

59.134

189

.000

4.237

4.10

4.38

Personal
experience

Texture of
product (smell,
color)
Previous usage

Page | 58

experience
Natural/herbal
product
It was tested by
experts
Product
characteristic
Price
Sales
promotion
Personal
selling
Advertisement
Ambience of
the store
Safety for head
Product
trustworthiness
Product loyalty

52.074

189

.000

3.937

3.79

4.09

42.883

189

.000

3.684

3.51

3.85

30.759

189

.000

2.653

2.48

2.82

44.045

189

.000

3.621

3.46

3.78

41.910

189

.000

3.447

3.29

3.61

26.697

189

.000

2.453

2.27

2.63

33.856

189

.000

2.989

2.82

3.16

33.854

189

.000

3.011

2.84

3.19

61.619

189

.000

4.411

4.27

4.55

58.507

189

.000

4.295

4.15

4.44

42.701

189

.000

3.937

3.75

4.12

As can be seen from the results of t-test done, the value of the probability in the sig. 2
tailed columns (.000) is less than the value of .05 for which level of significance this
test was performed. Hence, this clearly was shown that it could be rejected the null
hypothesis for all of the parameters.
Therefore, it could be concluded that the variability in the all parameters was a
statistically significant difference between all the factors.
On the one hand, Indian customers might be influenced to buy hair care products by
all factors or parameters above especially, the parameters that had higher value of
mean such as Personal experience, Quality, Previous usage experience, Product
trustworthiness, Safety for head factor, and product trustworthiness.

Page | 59

This study was also tried to collect the data and test the hypothesis for different
factors in which can be influenced Indian consumer buying behavior on hair care
products of HUL and P&G Company.
Table 8: T-Test analysis
Parameters

Sig.(2tailed)value

Result
(sig <.05

Brand name

.000

significant

Personal experience

.000

significant

Packaging

.000

significant

New product

.000

significant

Quality

.000

significant

Texture of product(smell, color)

.000

significant

Previous usage experience

.000

significant

Natural/herbal product

.000

significant

It was tested by experts

.000

significant

Product characteristic

.000

significant

Price

.000

significant

Sales promotion

.000

significant

Personal selling

.000

significant

Advertisement

.000

significant

Advertising may attract them to buy

Ambience of the store

.000

significant

It could be a factor for them to buy

Safety for head

.000

significant

Product trustworthiness

.000

significant

Product loyalty

.000

significant

Perception view
It could be a factor influenced them to
buy
Consumers will use their experiences
to buy hair care products
It can be a factor for them to decide
Consumers might be interested in new
products of hair care products
Quality might be a factor before
buying
Consumers might look at the products
aspects
Consumers want to change their
buying behavior for hair care products
Consumers will decide to buy if the
products made from natural sources
Consumers will prefer to buy the
products that tested by experts
The packaging or characteristics of
hair care products may be important
for them to buy
Price could be an important factor for
them to buy
Discount or buy one get one free
could be the important factor of
buying behavior hair care products
Some consumers may want sales
people for hair care products

Consumers were considered products


that safe for their head and hair
Consumers might switch to other
brand
Consumers will hardly change their
brands of hair care products

Page | 60

4.3. The marketing strategy on hair care products of HUL and P&G
When it comes to marketing strategies, most company spontaneously think about the
4P (Product, Price, Place, Promotion) maybe extended by three more Ps for
marketing services (People, Processes, Physical Evidence). Market segmentation and
the identification of target markets, however, are an important element of each
marketing strategy. They are the basis fordetermining any particular marketing mix.
The importance of market segmentation results fromthe fact that the buyers of a
product or a service are no homogenous group. Actually, every buyer has individual
needs, preferences, resources and behaviours. Since it is virtually impossible tocater
for every customers individual characteristics, marketers group customers to
marketsegments by variables they have in common. These common characteristics
allow developing astandardized marketing mix for all customers in this segment. The
purpose for segmenting amarket is to allow your marketing/sales program to focus on
the subset of prospects that are"most likely" to purchase market offering. If done
properly, this will help in insuring the highestreturn for marketing expenditures.
Depending on whether you are selling your offering toindividual consumers or a
business, there are definite differences in what you will consider whendefining market
segments. One of the main reasons for engaging in market segmentation is tohelp the
company understand the needs of the customer base. Often the task of
segregatingconsumers by specific criteria will help the company identify other
applications for theirproducts that may or may not have been self evident before.
Uncovering these other ideas for useof goods and services may help the company
target a larger audience in that same demographicclassification and thus increase
market share among a specific sub market base.
1) SWOT Analysis of Shampoo Market in India

Strengths: The major strengths of shampoo market includes low operational


costs, presence of established distribution networks in both urban and rural
areas, presence of well known brands in FMCG sector, increase in income
level of customers.

Weaknesses: Weaknesses of shampoo market includes lower scope of


investing in technology and achieving economies of scale, especially in small

Page | 61

sectors, low exports levels, lack of education in rural market and so many
products are already available in the market.

Opportunities: Major opportunities of shampoo market includes untapped


rural market, rising income levels of customers, large domestic market all over
the country, a population of over one billion, export potential of companies
and high investment of customers on consumer goods.

Threats: Threats of shampoo market includes removal of import restrictions


resulting in replacing of domestic brands, slowdown in rural demand, new
entrants of well known international brands and spurious goods and illegal
foreign imports of different shampoo brands.
Figure 15: BCG Matrix of Shampoo Brands in India

The portfolio of shampoo business in India is shown by the Boston Consulting Group
(BCG) matrix in the above diagram on the basis of their relative market share and
industry growth rate. The vertical axis denotes the rate of growth of sales from low to
high as we move upwards for shampoo industry in India whereas the horizontal axis
represents the relative market share from high to low as we move from left to right.
The four cells of BCG matrix have been termed as Stars, Cash cows, Dogs and
Question marks or Problem children.

Stars: In shampoo segment of India it includes Sunsilk, Panteen, Head and


Shoulders, Clinic Plus and Garnier Fructies which are high growth, high
market share businesses. It means all these market players are in the growth
phase of the product life cycle. All of them are following an expansion
Page | 62

strategy to establish a strong competitive position with regard to a star


business.

Cash cows: Clinic all clear, Ayur and Chik are placed in this cell of BCG
matrix as these market players are generating large amounts of cash but their
rate of growth is slow. All these market players fall in the maturity stage of
product life cycle in shampoo segment.

Question marks: This cell includes Dove, Vivel and Vatika which are of high
industry growth but low market share businesses in shampoo segment of India.
These market players are in the introduction stage of product life cycle. These
market players may become stars if enough investment is made or they may
become dogs if ignored.

Dogs: The market players like Lux and Lifebuoy are placed in this cell of
BCG matrix of shampoo segment in India. Both of these players are in the
decline stage of product life cycle and a retrenchment strategy is generally
suggested in this stage of product life cycle.

2) Marketing strategy of HUL


HUL offers Clinic All Clear and Dove to the Affluent customers, Sunsilk to the
aspiring customers and Clinic Plus to the Striving Customers.
Figure 16: HUL strategy pyramid for Hair Care products

HUL has divided the whole market segment into three types of consumer, they are,
firstly type of customers are those which are having very low income called as
striving customers and they are the largest in number as compared to other types of
customers defined by HUL. Second types of customers are called as aspiring
customers, those who are striving for recognition or advancement; They have
Page | 63

relatively high purchasing power. Third set of customers are called as affluent
customers who are having an abundance of wealth, they are relatively less in numbers
as compared to other group of customers. HUL has designed a different targeting
strategy for every segment of the market to satisfy the needs of customers under those
segments with the aim of attaining organizational objectives.
Current Market Strategy of HUL

Loyalty programs and reward systems: As part of its marketing strategy,


Unilever Ltd removed loyalty programs and encouraged beauty salons. There
are also different magazines and booklets designed with acme promotion and
stuffs.

New look of Website: he company also re launched a new looking Website


Lakmeindia.com to have a change in marketing of the company.

Direct Marketing for Deviating from the traditional mode of advertising. The
company deployed a bevy of beauty advisors at 1200, retail outlets across the
country to promote its new launch-dumping mass media ad campaigns. Their
strategy is not to use mass media advertising to promote products across the
globe. Instead, they opted for the 'education' route to create awareness for their
product.

Tie-up with Schwarzkopf: Lakme had a recent tie up with FMCG Player
Henkel group's high end hair product brands Schwarzkopf Professional.
Currently, Lakme has over 100 salons across the country.

Lunched in Sri Lanka: Hemas Marketing has expanded the range of Lakme
skin care products it markets in Sri Lanka, and unveiled a new international
logo and image for the brand. Launched in Colombo, the additions to the
Lakme skin care range are Nourishing Cold Cream, Nourishing Body Lotion,
pH-Balanced Face Wash, Calamine Lotion, Sun Screen Lotion and Hair
Remover.

Future Market Strategy of HUL

Online e-group: Lakme can form some e-group like Sunsilk Gang of Girls
GOG) to understand consumer requirement. It requires no formal surveys,
easy to administer, reduces paper work. In all it used technology too
Page | 64

effectively to promote the brand and advertises the brand through egeneration.

Online ordering of products

Online appointments for products

Strategies under Product Mix of HUL

New product lines can be added to the existing one which may be related or
unrelated to the company.

Within the product line, they can have different brands at different price points
to cater to different segments of customer.

Growth of can provide better display of products and a beauty adviser can
make it much more attractive in the eyes of the customer.

Packaging can be improved or changed of products to make it more attractive


to the customer

3) Marketing strategy of P&G


Product strategy

Promotional strategy offering special coupons

Introduction of new products

Emotional marketing

Target customer strategy

Children

Adults

Sinus patients

Positioning strategy

Unique shape

Touch therapy

Mothers love platform

Segmentation strategy
Page | 65

On the basis of Age

Kids above the age of 6 months

Youth

Branding strategy

Umbrella branding

Brand extension

Packaging strategy

Change of color from green to blue

Global packaging-range of products world wide

Packaging changing and brand name appearing

Labeling strategy

Instruction on the label to be ethical practice

Consumer protection

Price factor:

Internal factor

Goal and objective


-

Actual cost

Organization consideration

External factor:

Market and demand

Competitor pricing strategy

Promotion:

Advertising

Public relation

Sales promotion

Page | 66

Selection of media

Pricing and promotional strategy of hair care products of P&G:


o P&G strategy essentially was a disguised price increase
o P&G lower their wholesale price, but the retailer only enjoyed higher
margins and did not pass the savings on to the customer
o Personal selling is not an aspect of Pantenes promotional selling and it
would be wise to incorporate it

Page | 67

5. CONCLUSION AND RECOMMENDATION


5.1. Indian consumer buying behavior on hair care products
The results of the study from the data analysis about Indian consumer buying
behavior on hair care products of HUL and P&G Company. We can see that, out of
190 respondents, 28.4% were males and 71.6% were females. There was a good
variation in their age groups covering students, self-employed, salaried and others.Out
of 190 respondents, 72.1%were in the age group of 20-25 years, 15.3% for consumers
who were below 20 years, 7.4% of consumers who were 26-30 years, 3.7% who were
31-35 years, and 1.6% were more than 40 years.According to marital status, 95.8% of
Indian consumers who were single and most of them were students studied in major
universities in Delhi.Out of the total 190 respondents, 95.8% were students; others
were self-employed, salaried, and other jobs.Out of the total 190 respondents, 54.2%
was college graduate, 42.6% was post graduate, and 3.2% for others. Out of the total
190 respondents, 138 were in the income category less than Rs. 5.000 and of those
72.6% were willing to buy hair care products. 33 individuals were in the income
category Rs. 5.001 to 10.000 and of those 17.4% were willing to pay for hair care
products. However, there was a relationship between income and willingness to
spending for hair care products. Out of the total 190 respondents, 46.03% for
respondents who used hair care products under 1 year, 37.57% of the respondents
used hair care products around 3-6 years, 8.99% of the respondents used more than 9
years and 7.41% of the respondents used for 6-9 years for their favorite brand.
However, they might change their buying behavior due to some factors.Out of the
total 190 respondents, 56.08% were willing to spending for hair care products was at
Rs. 101-500, 23.28% of the respondents were willing to buy hair care products was
less than Rs. 100, 13.23% of the respondents were willing to pay was at Rs. 501-1000,
5.82% of the respondents were willing to buy was at Rs. 1001-1500, and 1.59% of the
respondents were willing to buy hair care products was above Rs. 1500.
In conclusion, Indian consumer buying behavior were generally females who used
hair care products of HUL and P&G, and most of them were in the age group of 20-25
years. Moreover, there was a relationship between age, gender and income to
spending for hair care products. On the other hand, the respondents behavior for
using was under 1 year only for hair care products of HUL and P&G, therefore Indian
Page | 68

consumers did not have product loyalty for both companies, and they might change or
swift to other brands anytime due to many factors for example prices for hair care
products that they were willing to spending was at Rs. 101-500. Hence, there was
price sensitivity, age-related, gender-related and income related for Indian consumers
buying behavior for hair care products of both companies.
5.2. Factors affecting consumer buying behavior on hair care products
However, Indian consumer buying behavior on hair care products accordingly to the
statistic, out of the total 190 respondents, 55.45% normally were used shampoo only
for hair care products, 23.64% of the respondents were usually used shampoo with
hair oil, 14.55% of the respondents were used shampoo with hair serum and other hair
care products, 2.73% of the respondents were used shampoo with hair spray, and
1.82% of the respondents were used shampoo with conditioner and hair gel.From the
statistic on the brands in which the respondents were generally used, particularly, out
of the total 190 respondents, 36.54% of the respondents usually were used Dove
shampoo of HUL and most of them were female, 17.31% of the respondents were
used Head and shoulder shampoo of P&G and most of them were male, 14.74% of
the respondents were used other brand names of Indian company, 10.26% of the
respondents were used Sunsilk shampoo of HUL, 9.62% of the respondents were
used Pantene shampoo of P&G, 6.41% of the respondents were used Herbal
essence shampoo of P&G, 2.56% of the respondents were used Clinic plus
shampoo of HUL, and others were used hair care products of P&G as 1.28% only.
Therefore, there was a relationship between brands and gender of the
respondents.From the figure on sources of medias, 62.26% of the respondents were
preferred to see hair care products from television, 17.61% of the respondents were
preferred to see from other sources such as internet, etc., 16.35% of the respondents
were preferred to see from newspaper and magazines, 2.52% of the respondents were
preferred to see from posters and brochures, and only 1.26% of the respondents were
preferred to know from radio.However, out of the total 190 respondents, 40.41% of
the respondents was the factor from friends that attract them to buy hair care products,
21.92% of the respondents were influenced by their family, 15.75% of the
respondents were influenced to buy from other sources such as from their selves and
necessary, 15.07% of the respondents were influenced from social medias, 4.11% of
Page | 69

the respondents were influenced to buy from commodities, and only 2.74% of the
respondents were influenced to buy from famous people.Although, hair care products
were available everywhere but this factor was still influenced them to buy hair care
products because of they are personal and dairy products in which they had to use at
least 2-3 days. Hence, from the statistic above of the store locations were very
important factor influenced them to buy.Therefore, out of the total 190 respondents,
27.27% were willing to buy hair care products from cosmetic store, 23.38% of the
respondents were willing to buy from retail store near home, 20.13% of the
respondents were willing to buy from convenience store, 12.99% of the respondents
were willing to buy from supermarket, 12.34% of the respondents were willing to buy
from chemist store, and 3.90% of the respondents were willing to buy from other
stores instead.However, before buying a product, the customers might review their
products and services that they wanted to buy by reviewing to the information related
to the products from other sources to help them making buying decisions such as from
friends, family, internet, etc.,Hence, according to the statistic, out of the total 190
respondents, 34.21% especially Indian respondents or consumers, would read reviews
sometimes before purchasing hair care products, 18.42% of the respondents were
often read the reviews, 17.37% of the respondents were read the reviews very rarely,
16.84% of the respondents were very often read the reviews of hair care products
before buying, and 13.16% of the respondents were never read the reviews at all.
In conclusion, there were many factors affecting them to buy hair care products of
HUL and P&G, most of them normally used only shampoo, and some of them used
shampoo with hair oil, so that both companies should be considered the ways to
attract them to buy other hair care products such as conditioner, gel, spray, etc.
however, according to HUL, there was only sales promotion like buy shampoo get
one conditioner free, on the other hand, Dove, Sunsilk shampoo of HUL were
very famous for Indian consumers and most of them were females. In contrary, Head
and shoulder, Pantene shampoo were famous for both males and females. And
those were the reasons why both companies wanted to produce brands for females and
males. However, sources of Medias factor in which Indian consumers preferred was
from television, and this advertising campaign of both companies HUL and P&G was
successful on broadcast medias. Moreover, the other factors influenced Indian
consumers to buy was from friends and family. And store location factor was
Page | 70

influenced Indian consumers to buy hair care products especially from cosmetic store
and retail store near home. And Indian consumers were sometimes reviewed the
information related to hair care products before making decision to buy.

Page | 71

6. BIBLIOGRAPHY
1.1 Paper published
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4. Douglas

Harper,

Historian.

Accessed:

June

30,

2008.

Shampoo.Dictionary.com. Online Etymology Dictionary.


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16. Wong, Michael. 1997. "Cleansing of Hair." Hair and Hair Care. Johnson,
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1.2 Books
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Marketing. 12th ed. Boston: McGraw-Hill.
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Kotler, P., K.L.Keller. (2006). Marketing Management. 12th ed. NJ:


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1.3 Websites
http://EzineArticles.com/1478292
http://wiki.answers.com/Q/Product_line_of_Hindustan_Unilever_Ltd#ixzz25I
GS7Jiu
http://www.investopedia.com/terms/b/brandequity.asp#ixzz25KIw5TVJ
http://www.answers.com/topic/sales-promotion-2#ixzz25KPuGVhI
http://independent.academia.edu/SouravMukherjee/Papers/378877/Hindustan_
Unilever Limited-_a_study_on_the_marketing_concept
http://books.google.com/?id=ESJzaCJE3fQC&pg=PA26&dq=what+is+fmcg
&q=what%20is%20fmcg. Retrieved 2010-06-19.
http://www.pg.com/en_IN/company/pg-india.shtml
http://www.indiafoodbrief.com/analysis/A%20Hair%20raising%20story.pdf
http://www.abhinavjournal.com
http://www.ipublishing.co.in/ajmrvol1no1/EIJMRS1040.pdf
http://www.powerfulwords.co.uk/sample-assignments/marketing/thehindustan-unilever-limited.php#ixzz2MRg0hyXH
http://www.slideshare.net/ritulakhotia/pg-marketing-strategies

Page | 74

COMPARATIVE STUDY OF CONSUMER BUYING BEHAVIOR ON


HAIR CARE PRODUCTS OF HUL AND P&G

Appendix
Survey Questionnaire

I.

Consumer background
1. Gender
Male
Female
2. Age
Below 20
20-25
26-30
31-35
36-40
More than 40
3. Marital Status
Single
Married
4. Occupation
Student
Self-employed
Salaried
Other
5. Education
College graduate
Post graduate
Other
6. Income per month
Less than 5,000 INR
Page | 75

5,001-10,000INR
10,001-15,000INR
15,001-20,000INR
Above 20,000INR
7. From these hair care products recommended to be used normally, I
use
Shampoo
Conditioner
Hair spray
Hair oil
Hair Gel
Other.
8. Which of the following brands you generally use for hair care?
Sunsilk
Clinic plus
Dove
Pantene
Head and Shoulder
Herbal Essences
Rejoice
Pert
Clear
TRESemm
Other
9. How long have you use the brand name of hair care products?
Under 1 year
3-6 years
6-9 years
More than 9 years
10. How much are you willing to spend for a hair care product?
Less than 100 INR
101-500 INR
501-1000 INR
1001-1500 INR
Page | 76

Above 1500 INR


11. I am interested to buy hair care products when it is advertised on
Television
Radio
Newspaper/magazine
Poster/ brochures
Other.
12. Which of the following factors influence your buying decision?
Family
Famous people
Friends
Communities
Social Medias
Other
13. I usually buy hair care products from:
Convenience store
Cosmetic store
Chemist
Supermarket
Retail store near home
Other
14. How often do you read reviews of hair care products before buying
them?
Very often
Often
Sometimes
Very rarely
Never
15. The reasons for changing new brand name, if any
Try new brand
Cannot buy the same brand
Price discount or buy one gets one free
Low price
Not satisfied with the same brand
Page | 77

Other.
II.

Please rate the importance of the following parameters while buying


hair care products
Somewhat

Somewhat

Very

Important

important

New product

Quality

Natural/herbal product

It was tested by experts

Colorful products

Price

Discount

Sales person

Advertisement

Ambience of the store

Safety for head

Trust in the brand

Loyalty

Consumers parameters

Unimportant

Brand name

Personal experience

Packaging

Texture of product
(smell, color)
Previous usage
experience

unimportant

Neutral

Page | 78

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