FACTORS AFFECTING CONSUMER PURCHASE

DECISIONS

CHAPTER - 1

INTRODUCTION

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INTRODUCTION

“ व े तुः पयाया न ा वा ाहको वभ यते"

It means that “when a seller's knowledge about alternative options & his ability to
offer a range of choices can influences the buyer's decisions. When a person is going to buy any
product/service n-number factors are involved in that decision. This research project highlights on
the “Factors affecting consumers purchase decisions.” Understanding these factors is crucial for
not only businesses but also consumers, social media marketers too. Consumers purchase
decisions have far-reaching implications for businesses. It helps businesses to develop
product/services that meet the consumers' needs. People have different values, and it helps them
to creating brands that align with their values.
The consumer landscape has undergone significant transformations in recent years, driven by
advancements in technology, globalization and shifting societal trends. They today have access to
an abundance of information, diverse product options and multiple channels to purchase.
“Conspicuous consumption is a phrase invented years and years ago—but it’s never been more
prevalent than today.” One of the FORBES article mentioned this. Earlier we had only 4 season
sales spring/summer, autumn/winter, and resort and pre-fall now the number has increased to 32.
Before even understanding the value-in-use of products people end up buying it. Consumers
sometimes don’t even read the information on the product & there are many cases it affected
them in allergies or in some cases death. And worse they don’t complain because they don’t know
consumer protection organizations. ‘inflation’ this term is every now & then in the news; but do we
know how its directly related to our spending.
With increasing advent of technology people were introduced to internet. People started spending
more time on internet, on the apps like Instagram, Facebook which is one of the most influential
factors in consumers purchase decisions. The new boom of creator economy has been one of the
most prominent factors in influencing consumers behaviour. Brands are now spending more than
ever on the influencers. That's what I will be explaining in this research.
For social media marketers it helps to provide valuable insight into the needs, desires & pain
points of consumers. Prominent studies and reports conducted by reputable organizations have
explored various aspects of this subject, including psychological factors, social influences,
product attributes etc. The study of these factors provides an insight into the motivation,
preferences etc. Therefore it has become more important to take informative decision rather than
becoming impulsive decisions.
By unravelling the complex dynamics between consumers and the marketplace this project aims
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to contribute to existing body of knowledge on consumer behaviour. Exploring all the sides of
human behaviour, purchase cycle etc.

CHAPTER –2
Literature Review

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LITERATURE REVIEW

Consumer is a person or group who purchases the product for his/her own use. He/she
can’t resell the product. “Consumer as a certain person or party who pays a fee for a
product/service to fulfil his/her needs", Philip Kotler (1994). Most of the times people confuse
themselves with consumer and customer, they both have different meaning. Customer is a person
who buys a product need not necessarily be the user of the product whereas consumer is the user
of the product. Schiffman defines consumer in a most specific way “The behaviour that consumer
display in searching for, purchasing, using, evaluating & disposing of products and services that
they expect will satisfy their needs. "And purchase simply means obtaining something by paying
money. Purchasing involves transfer of ownership of product not in case of service.

Figure 1

Source : HubSpot academy https://blog.hubspot.com/service/customers-vs-consumers

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Before understanding factors affecting consumer purchase decision let us know the purchase
cycle also known as buying cycle.

CONSUMER BUYING CYCLE/CONSUMER PURCHASE DECISION PROCESS

Consumer purchase decision process involves 5 steps that are commonly observed in all types of
purchases. And they’re as follow:

CONSUMER PURCHASE DECISION PROCESS

Figure 2

Source of this is image is slide team https://www.slideteam.net/five-sequential-steps-of-

consumer-purchase-decision.html

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A. Problem Recognition:-
The first step is identifying the problem I.e. need. Bruner (1993) “first stage,
need recognition occurs when an individual recognizes the difference between what they have and
what they want/need to have.” If there is no need then there is no purchase. And the needs of a
consumer are originated either from internal triggers or external triggers. Triggers are the cues &
the internal triggers are usually the emotions. Negative emotions are most prominent ones
for e.g. If I am feeling bored, depressed I straight up go to Instagram or any social networking
platform.
External triggers are advertisements paid or TV commercials.
Just like Steve Jobs once said,
“People don’t know what they want until you show it to them”.
For e.g. You get a notification from pipa & Bella that they are introducing a necklace that once
notification clicks that you don’t have a necklace now you need to buy one.
Human needs are also in a hierarchy it’s a theory developed by Abraham Maslow in 1940’s
explains in detail. Humans have series of needs and they move on to another only after
completing one.

Figure 3

Source of this image is Slide team website https://www.slideteam.net/apple-emotional-branding-maslows-

need-hierarchy-for-appealing-customer-emotions.html#images-1

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i. Physiological Needs - These are most basic needs of a human being like ‘Roti, Kapada, Makan’.
ii. Safety needs – safety needs are as basic as financial safety, health& wellness wise.
iii. Love & Belongings – Aristotle “Man is by nature a social animal. "And these needs arise from
interpersonal relationship between friends & family.
iv. Esteem – These needs are related self-such as independence or academic accomplishment.
v. Self- Actualization- It is in true sense the fulfillment in all ways. This stage is different for different
people.

B. Information Search:-
This is the 2nd stage in the process of consumer decision making. Now
consumer starts collecting information about the product. As Majumdar (2010) mentioned in his
book that a consumer collects information from internal sources such as memory and their
experience with the brand earlier. Also it depends upon the type of purchase I have observed that
consumer don’t search much about the daily products like milk, eggs etc. But if it’s a huge
purchase then they definitely do search more and take time. External sources of information are
as follow :
a. Personal source – friends & family ,neighbour
b. Commercial source- ads, sales person , display
c. Public- Media, consumer rating organizations ( Trust pilot)

C. Evaluation Of Alternatives :-

This is the 3rd stage where consumer analyses all the information
obtained in order to make right choice while considering alternatives by comparing them with
needs. The product is compared using attributes such as price, quality, product features etc. A
consumer uses their own value preference here. Consumers involvement plays an important role
such as while consumer is considering the attributes of a product by taking time it is extended
problem solving which is observed while buying luxurious items. And totally opposite is routine
problem solving low-involvement and products are inexpensive too.

D. Purchase Decision :-
At this stage consumer has decided product. But still at this stage 2
variables can change the decision I.e. others attitude toward the product & situational factors.
Situational factors such as if online payment is not available at that place so a consumer might
have to settle for alternative product.

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E. Post-purchase evaluation -

This is the last stage in the process here consumer compares the
product with his expectations and their can be results of this either satisfied or dissatisfied. If he
is dissatisfied then exchange is an option but it depends on the consumers knowledge and type of
the product too. Many companies ensure that they retain existing customer for that they do
enquiry about feedback, experience of the product basically all the customer support services.
It is important to understand the purchase cycle in order to make informed decisions.
Consumer buying behaviour is one of the important aspect to study in fact factors affecting
consumers purchase behaviour is one of the variable of this subject.

.
CONSUMER BUYING BEHAVIOUR

According to Wayne D. Hoyer, Deborah J. MacInnes, and Rik Pieters in their book "Consumer
Behaviour" (8th edition):

"Consumer behaviour involves the study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and
desires.”

According to Leon G. Schiffman and Leslie Lazar Kanuk in their book "Consumer Behaviour: Global
Edition":
"Consumer buying behavior refers to the buying behaviour of individuals and households who buy
goods and services for personal consumption. It includes the study of how they buy, why they buy,
when they buy, where they buy, and how often they buy."

In a simple Laymans language consumer buying behaviour is understanding what consumers buy,
why do they buy and from where do they buy. Consumers buying behaviour differs as per product
and their level of involvement.

For e.g. A consumer behaviour is different when he is buying vegetables and different when he is
buying a bike or car.

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Figure 4

Source of this image is business jargon website https://businessjargons.com/wp-

content/uploads/2020/12/types-of-consumer-behaviour.png

A. Complex buying behaviour-

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In this types of buying behaviour consumer usually doesn’t

know much about the product so they are highly involved. Goods are kind of one time investment,
expensive. While buying consumers take time to research about the product to match with their
expectations.
For e.g. car, house , television
B. Dissonance Reducing buying behaviour-
This type of buying behaviour consumer doesn’t know much
about the product here also they are involved but they find it difficult to understand. The
availability of product is limited.
For e.g., Paints, Tiles

C. Variety seeking buying behaviour -

In this type of buying behaviour consumer keeps on changing
between brands not because of dissatisfaction but they want to try new things. The products are
usually cheap so consumers are least involved.
For e.g. sunglasses, bottle, earphones

D. Habitual buying behaviour -

In this type of buying behaviour consumer is least involved and
these goods are economical & bought frequently. Here they believe in their brand loyalty
For e.g. soaps , toothpaste

FACTORS AFFECTING CONSUMER PURCHASE DECISIONS

Michael Solomon is a marketing professor and author known for his expertise in
consumer behaviour. His book "Consumer Behaviour: Buying, Having, and Being" explores the
internal and external factors that shape consumer behaviour, including psychological, social, and
cultural influences.
Internal factors create to influences on consumer purchase decisions that come from within the
individual
Figure 5

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.
Source – Above figure is created by researcher using
Microsoft.

1. Psychological factors :-
“Psychological factors are those factors which talk about psychology of
a human that drives him to seek satisfaction.” Psychological factors encompass various aspects,
such as how consumers perceive and interpret information, their underlying motivations and
needs, their attitudes and beliefs towards products or brands, their learning and memory
processes, their personality traits, and the emotions they experience during the decision-making
process.
Psychological factors are as follow :

a. Motivation
“Motivation is the process that causes people behave as they do.” It occurs
when a need is arisen and activates the state of tension & also causes a consumer to make
attempts to eliminate that need. Intensity to have a product is related to motivation. There are
positive outcomes and negative and both motivates us to buy products. Positive outcomes are as
simple as I am hungry so I want to eat food I would rather choose to eat healthy rather than junk
food but negative outcomes also act as motivation as to avoid the negative outcomes for e.g. I
decide to eat green to avoid the consequences of junk food. It is also observed that people take
their decisions first and then justify them using above factors. “Need for achievement is one of the
factor here as One study of working women found that those who were high in achievement
motivation were more likely to choose clothing they considered businesslike, and less likely to be
interested in apparel that accentuated their femininity.”(Consumer behaviour Michael Soloman) .
There are different types of needs as we observed in Maslow’s need hierarchy theory so it is

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difficult to justify one reason as all of them act at once.

b. Perception
Perception, in the context of consumer behaviour, refers to how individuals interpret
and make sense of the information they receive through their senses and the world around them.
Kotler and Armstrong describe perception as: "The process by which people select, organize, and
interpret information to form a meaningful picture of the world." (Source: Kotler, P., & Armstrong, G.
(2017). "Principles of Marketing" (17th edition)).When we enter any shop that shop has particular
smell, a way of lighting now-a-days yellow lights are used to seek warmth , songs playing in
background & we immediately get an order whether we would like to have coffee or tea or cold
drinks what are trying to do here ? They are creating a perception in our mind about their brand by
pleasing all our senses such as ear – music, nose – smell, mouth – food, etc. Perceptual
selectivity here is most important as we can’t process so much information altogether so we
decide to focus on things that align with our thoughts.
For e.g. Assume I am hungry so is my friend it means we have the same motivation that we are
hungry but the product we choose to eat will different from one another.
“Social perceptions are related to the status or social impression of luxury brands in social groups.
Social identity theory interprets this perception as consumers communicating their social identity
to others by using some products (Chan et al., 2015). Personal perceptions are relevant to product
quality, hedonic value. Self-congruity theory holds that consumers pursue the unity of perception
and personality, behaviour, and values (Shetty and Fitzsimmons, 2021).”
Just Like the jingle of
“Amul Doodh Peeta Hai India !” marketers use this to create the perception.

Figure 6

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source of this image is semantic scholar

semantic scholar.org/paper/MALL-MAGIC-...-HOW-THE-DESIGN-OF-A-MALL-TRICKS-
OUR-Silas/947f73feea0a563cbe4c954c36ae16205343856b

c. Learning & Memory

Learning is a lifelong process even in the case of consumers. It changes
a consumers behaviour towards certain product after the experience . In Behavioral Learning
Theory consumers are blank box where external environment feeds stimuli and after using the
learning experience consumers respond to it. Learning refers to the process of acquiring
knowledge, skills, attitudes, or behaviour through experiences, information exposure, and
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observations. In the context of consumer behaviour, learning occurs when consumers acquire
information about products, brands, or services that may influence their future purchase decisions.
Classical conditioning theory developed by Ivan Pavlov explains that consumer connects
themselves with certain brand due to positive or negative ads or endorsements. Operant
Conditioning , here consumers learn through 2 ways I.e.
 Positive reinforcement – Consumer focuses on rewards after using a certain product
For e.g. Girls start talking to a nerd guy when he wears a particular perfume.
 Negative reinforcement – punishment as an outcome

Observational learning is one of the complex process where consumer learn from others by
observing their outcomes.
And if it is positive they try to imitate it.
MEMORY
“Memory involves a process of acquiring information and storing it over time so that it
will be available when needed.”
Figure 7

Source is the tutorial point https://www.tutorialspoint.com/consumer-memory

Encoding is the process of converting information into a form that can

be stored in memory. Storage refers to the retention of encoded information over time. In
consumer behaviour, stored information about products or brands can include attributes, benefits,
past experiences, or associations . retrieval is the process of accessing and bringing forth stored
information from memory. In consumer behaviour, retrieval occurs when consumers actively seek
and retrieve relevant information from their memory to make purchase decisions. Memory plays a
role in storing and recalling information gathered through word-of-mouth or social influence. Well-
crafted marketing messages that resonate with consumers' memory can shape their perceptions,
attitudes, and preferences towards a brand.
For e.g. A consumer once asked ‘can you give me the cells on which there is a photo of an rabbit'. I
understood he is asking for Duracell but he wasn’t a literate person so we see how packaging and
ads impact on consumers
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d. Attitude
"An attitude is a learned predisposition to behave in a consistently favourable or
unfavourable manner with respect to a given object." (Source: Schiffman, L. G., & Kanuk, L. L.
(2019). "Consumer Behaviour" (12th edition)) Attitudes significantly impact consumers' purchase
intentions. Positive attitudes towards a product or brand increase the likelihood of consumers
expressing an intention to buy, whereas negative attitudes can deter them from making a
purchase. “Consumer attitude may be defined as a feeling of favourableness or unfavourableness
that an individual has towards an object. As we, all know that an individual with a positive attitude
is more likely to buy a product and this results in the possibility of liking or disliking a product.”

Figure 8

Source is “CONSUMER BEHAVIOUR” by Michael Soloman

file:///C:/Users/Dr%20Sid/Downloads/Michael%20R%20Solomon_%20et%20al%20
-%20Consumer%20behaviour%20_%20a%20European%20perspective-
Financial%20Times_Prentice%20Hall%20(2006).pdf

The ABC model of attitudes helps us understand that consumers attitude are
a combination of affective (emotional), behavioral, and cognitive components. In the context of
consumer purchases, affective components influence consumers' emotional responses towards
products or brands, behavioural components reflect their actions and intentions, and cognitive
components encompass their beliefs and thoughts about the product or brand.

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2. Personal Factors -
“Consumer Behaviour" by Leon G. Schiffman and Leslie Lazar Kanuk:
"Personal factors are the individual consumer's characteristics, including age, occupation, lifestyle,
personality, and self-concept, which influence their buying decisions. These factors shape the
consumer's needs, motivations, and perceptions, ultimately impacting their preferences and
choices in the marketplace."

A. Age

Age is one of the most important factors as needs & of people change as per their age.
For instance, Gen-Z is inclined towards flashy life and clothing whereas millennials are very calm
and composed life. Generations are classified in different categories such as Gen – Z(1997-2012),
Millennials (1981-1996), Baby boomers (1946-1964), gen- X (1965-1980). Let us understand how
these generation behave as a consumer.
Baby boomers have crossed their 30s by now and they find it easy to resonate with the product.
OfCourse they are the biggest market but for real estate to get a home and so on. They prefer
offline shopping more and spend more on households & make big purchases with loans or
savings to become stable In life.
Millennials are sophisticated they don’t make big purchases but spend on travel, dining out that is
they spend more on experience. Hey have seen the digital age so they are more comfortable with
tech products than baby boomers
Gen – Z is the extremes of both that valuing experiences but still remain materialistic. They live
fullest of their lives most of them start earning in todays days by now. They also care about the
message the product is conveying whether the product is eco-friendly or not.

B. Gender -
Gender does influence our decisions such as Men rely more on data, facts whereas
women follow more emotional way. “Women are gatherers and men are hunters. Women want
more interaction during the process of shopping, while men want quick answers.”(research paper
by chen ningning).Women like unique products whereas men like symbolic products.
C. Occupation-
Very basic thing that occupation influences us more because as a college student they
prefer casual outfits but a fully employed person can not . Professionals have different priorities
as their profession requires some tools such as for a doctor all the advance machines are required
in an hospital, for a lawyer he requires the coat the set up to meet the clients.

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D. Income -
Income totally affects our buying behaviour. Our income decides our purchasing
power. If a person has higher income he might spend more on quality and durability of a product.
Lower the income lower the disposable income in hand C K Prahlad explained “bottom of the
pyramid “low income individuals typically live in poverty and have limited access to basic
necessities such as food, shelter, healthcare, and education.
E. Education-
Education is most important drive here. All the consumers should be educated
enough to read and process the information written on the product such as expiry date, content of
sugar. Even before buying the product the level of research is high when you are well educated.
Education can also shape consumer attitudes and values. Educated consumers may have a
greater awareness of social and environmental issues. They may prioritize factors such as
sustainability, ethical sourcing, fair trade practices, or social responsibility when making purchase
decisions. Very few people know laws related to consumer safety.

External factors refer to influences on consumer purchase decisions that come from outside the
individual.
3. Social factors -
External influences on consumer behaviour arising from cultural, societal,
and interpersonal dynamics.
a. Family -
Family members influence each other's purchase decisions through direct
influence, advice, and shared experiences. Family of orientation is family by birth where they pass
on the values, beliefs and family of procreation is the one we form with our life partner. We grow
with these people through different stages of life and in below picture same is explained.

TABLE 1

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Source is wisdom jobs https://www.wisdomjobs.com/

b. Reference groups -
Reference groups are social groups that individuals use as a basis for comparison
and identification. They can be family, friends, colleagues, or other influential people. Reference
groups influence consumer behaviour through social influence, aspiration, and conformity. There
are initiator in this group who buy the product first then there is influencer who influences the
other person to buy the product and then decision maker who decides to buy or not and at last is
the buyer. Individuals often seek validation and guidance from their reference groups when
making choices about products, brands, and consumption patterns.

c. Social status -
It means where an individual stands in hierarchical status in the society such as
middle class, upper class and their buying behaviours differ too. Consumers in order to keep up
with their status spend so much that their underlying wealth becomes zero or sometimes negative.
The luxury attaches a lavish lifestyle to their product and sell at premium and we as consumers
buy it just to maintain the status. Just to fit in the society.
d. Cultural factors -
The social and behavioural influences stemming from shared beliefs,
values, norms, customs, symbols, and traditions within a particular society or social group that
shape consumer attitudes, preferences, and purchasing decisions.

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 Cultural Norms and customs-

Cultural norms and customs define the accepted behaviours, rituals,
and traditions within a society. India is rich in culture specifically Pune. Culture is a set of beliefs
and values that are shared by most people within a group. Culture is passed from elders to kids in
their family.
For e.g. In Indian culture we praise cow we do not eat beef and in one of the McDonald's franchise
when they introduced beef in burger Indian consumers refused to accept this.
In India the customs are closely paid attention to as in Diwali, Eid , Christmas we make purchases
related to each festival. Gift giving is often considered the most important while even visiting
guests.
 Language -
Language is system of communication through words, symbols etc. Language
plays really important role which is observed by Kishor Biyani when he was naming his retail outlet
for clothing when he realised that consumers are likely to feel rich by using foreign names such as
pantaloons, he just used patloon as basis for this name. As well as if a consumer is unable to read
the product description it is highly unlikely to buy that product. When Ashneer Grover was naming
his start-up he used name “bharatpe” to evoke the patriotic emotions.
4. Product – related factors
Product-related factors are essential considerations that influence consumer
purchase decisions. These factors directly pertain to the characteristics, features, and attributes
of a product.
a. Price -
The amount of money a consumer is expected to pay while buying a product. Price
plays an important play in consumers purchase decisions. Consumer first identify the need then
compare it with the price of the product and then decide whether to buy or not. Another thing they
consider is budget constraints that is whether the product fits in the budget or not. Indian
consumers are very price sensitive .
There is a common assumption that if the product is high priced then it is of high quality.
Therefore consumer attach this price and quality perception and often end up buying products for
high price. Pricing strategies such as discounts, promotions, and sales can significantly impact
consumer behaviour. Consumers may be more inclined to make a purchase when they perceive a
price reduction or limited-time offer.
Some of the recent ways marketers change consumer decision is by rewarding them.
For e.g If you buy certain product from certain app you will receive cash back of certain amount
And consumers don’t realise that they are spending more than receiving. Status, prestige has
always been attached with price by businessmen.

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b. Product Quality-
Quality can be assessed based on various dimensions such as
performance, reliability, durability, features, aesthetics, safety, and customer support. Consumers
associate high-quality products or services with greater value. When consumers perceive a
product or service to be of high quality, they believe it offers superior performance, durability, and
functionality.
Many products display quality certifications or seals on their packaging or product
labels. These certifications, such as ISO (International Organization for Standardization)
certification, indicate that the product has met certain quality standards and undergone rigorous
testing and evaluation. It helps to create trust in consumers and that’s how they get loyal
consumers. In case of services there is a channel on YouTube think school who makes quality
videos for free and has been successfully retained the viewers.
c. Advertisement & promotional activities -
“Advertisement are persuasive messages designed to promote
products, services, or ideas through various media channels. They are strategically crafted to
capture attention, create desire, and drive action, aiming to influence consumer behaviour and
achieve marketing objectives." (Author: Philip Kotler, Principles of Marketing). In a layman's
language ads are used to communicate product features in entertaining way. And consumer
should be aware what they are watching.
For e.g. “fair & lovely” now known as glow & lovely in their ads was indirectly encouraging racism
through their ads.
Advertisements often utilize emotional appeal to connect with consumers on a
deeper level. Emotional messaging, storytelling, and imagery can evoke positive emotions and
create a desire for the product. Many celebrities and influencers promote products as they are
paid to do it. And sometimes it can be used for promoting harmful products.
For e.g We all have seen ads promoted by big actors for ‘pan masala’. Consumers need to
understand that they are actors they do not use these products themselves.
d. Social – media marketing -
Social media marketing refers to the use of social media
platforms and networks to promote products, services, or brands and engage with target
audiences. It involves creating and sharing content, engaging in conversations, and running
targeted advertising campaigns on social media platforms such as Facebook, Instagram, Twitter,
LinkedIn, YouTube, and others. The horizon of creator's economy is increasing with the increasing
engagement of influencer and consumers. Social media platforms offer sophisticated targeting
capabilities, allowing brands to reach specific demographics, interests, and behaviour. Consumers
often rely on social proof, such as reviews, ratings, and recommendations from friends or
influencers, when making purchase decisions.
e. Brands -

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Brand is a term used to describe a unique and identifiable name, design, symbol,
or combination of these elements that distinguishes a product, service, or company from its
competitors. Brand represents the product with the values they stand for. Just think of “TATA” the
first thing that pops up into our mind is “trust”. Brands often establish an emotional connection
with consumers through their values, storytelling, and overall brand experience. They use different
tricks like loyalty cards, personalized products and 24/7 support service and so on. Even an offer
as simple as buy 1 get 1 free can also trick us these offers are given because they are not able to
sell the original product at that particular price so they pack it with another product with high sales
make a basket of it and sell it at high price. A reputable brand is often associated with quality and
reliability.
There are many ways how brands trick us into buying the product
For e.g. Vicks VapoRub is something which we have grown up using it. But , it is banned in many
western countries and by WHO as they are toxic and can cause Asthma, Tuberculosis.

f. Packaging and design-

Packaging involves the materials, containers, and protective
elements used to encase and present a product. Design focuses on the visual and aesthetic
aspects of the packaging. It includes elements such as the choice of colours, typography, imagery,
and graphics. Packaging provides the information about what is in there. Everything about content
requirements to notes that product is to be kept in cool/warm environment. How to use the
product.
For e.g. When HUL puts ice cream on the packaging whereas it turns out to be vegetable fat did
put kwality walls in trouble with Amul.

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Chapter 3
RESEARCH & METHODOLOGY

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RESEARCH & METHODOLOGY

“A consumers perception is your reality.”

1. Scope of study
The scope of this research project is confined to the consumers in India
city during the time of data collection.

2. Objective of the study

 To study and understand factors that significantly affect consumers purchase decision.
 The objective is to analyse consumer behaviour patterns and decision-making processes.
 To observe the process of consumers making their final decision while considering certain
factors.

3. Justification of the objectives

There are n numbers factors involved when a consumer makes a purchase to understand these
factors and create an awareness among the consumers and marketeers.
Consumer follow a certain process while making a decision and that remain constant in all types
of purchases
In the end consumers decision is final one but some part their subconscious mind act to
understand these simple cues.

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4. Research hypothesis
Researchers have formulated Hypothesis as follow :
H0 – Consumer awareness is not independent of educational qualification
H1 – Consumer awareness is independent of educational qualification
H2 – Consumer decision making style is gender unbiased.

5. Level of significance
The data has been statistically analyzed at 5% level of significance.
6. Tools used
Microsoft Excel have been used to analyse the data.
7. Research period
The research period 23 May to 23 June.
8. Research Design
This is a descriptive research study that focuses on the current scenario in the city Pune
regarding the concept of consumer buying behaviour.

9. Statistical techniques
Chi-square testing of hypothesis is used as statistical technique.

10. Sampling
Convenience sampling method is used for the purpose of research. Participants have
been selected depending upon accessibility and convenience.

11. Data collection

The data collection is done through questionnaires:
A. The term used in the questionnaire about income level as :
 Higher Income Group (>18 lakhs )

 Middle Income Group (12-18 lakhs)

 Lower Income Group ( <8 lakhs

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12. Population and sample size

The sample size of 75 respondents obtained.
8. Sources of data collection
 Primary data : Primary data has been collected using questionnaire survey method. Views
of respondents has been directly recorded using google forms.
 Secondary data : Secondary data has been collected using blogs, websites, books.

13. Challenges faced during data collection

It was difficult to check the authenticity of the resources while collecting the
information. Only relevant and facts has been considered to publish in this research project. While
circulating the questionnaire it may have been filled up by other audience so it was difficult to
again segregate them.

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CHAPTER 4
DATA ANALYSIS & INTERPRETATION
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DATA ANALYSIS & INTERPRETATION

 Data collected from individuals.

1. Age – wise distribution of respondents

Graph 1

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The above graph depicts that younger respondent of 18-24 year age are dominating
the results.

Graph 2

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The graph depicts that female respondents are dominating the

questionnaire.

Graph 3

The above graph depicts that bachelor’s degree student 65.3% of the respondents are
dominating the questionnaire.

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Graph 4

The above graph shows that student 42(56%) are dominating the
questionnaire

Graph 5

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The above graph shows that lower income group 50 (66.7%) respondents are dominating.

Graph 6

The above graph shows that people occasionally 24 do shopping.

Graph 7

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The above graph shows people usually buy more of clothes 60 (80%) where as automotive
very rarely 6 (8%)

Graph 8

The above graph shows that respondents prefer to go the retail store 42 (56%)

Graph 9

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The above graph shows that people prefer neutral23 (30.7%) response to pre-engagement
that engagement before buying the product

Graph 10

The above graph shows that people rely more on online reviews & ratings 60 (80%) before
buying the product.
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 FACTORS AFFECTING CONSUMER PURCHASE
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Graph 11

The above graph shows that most respondents prefer quality first.

Graph 12

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The above graph shows that respondents are more price sensitive 22(29.3%)

Graph 13

The above graph states that design influences the respondents in most cases 50.7%

Graph 14

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The above graph shows that influencers 44(58.7%) endorsement do not carry much
impact on respondents

Graph 15

The above graph shows that social media sponsored post 33(44%) have more impact on
respondents

Graph 16

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The above graph shows that emotional appeal causes somewhat impact on 34 (45.3%)
respondents.

Graph 17

The above graph shows that 50.7% respondents agree with the statement that their buying
behaviour is influenced by culture.

Graph 18

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The above graph shows that 40% of the respondents agree with using eco-friendly product

Graph 19

The above graph shows that 29 % that is 21 respondents prefer reading product
description

Graph 20

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The above graph shows that 52 % of people are aware about consumer protection.

Graph 21

The above graph shows that respondents are more rational and analytical 58 (77.3%)

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Important factors under study

Table 2: Education & Consumer awareness

educational qualification consumer awareness total

yes no
Bachelor's degree 25 24 49
High school 6 5 11
Master's degree 8 7 15
total 39 36 75

For the above data

H0 - Consumer awareness is not independent of educational qualification
H1 – Consumer awareness is independent of educational qualification.
The calculated chi-square p value in this case is 0.97 which is greater than 0.05 , leads to
acceptance of the null hypothesis. This indicates that education and consumer awareness
are dependant.

Table 3: Gender and consumer decision making style

gender
decision making style female male total

emotional intuitive 2 5 7
impulsive & spontaneous 3 7 10
rational & analytical 35 23 58
total 40 35 75

For the above data

H0 – There is no significant relationship between gender and consumer decision making style.
H1 – There is significant relation between gender and consumer decision making style.
The calculated chi-square p value is 0.045 it is greater than 0.075 therefore null hypothesis is
being accepted here.

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CHAPTER – 5
CONCLUSION

CONCLUSION

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Figure 9

Source - “consume behaviour” book by Michael Solomon

file:///C:/Users/Dr%20Sid/Downloads/Michael%20R%20Solomon_%20et%20al%20
-%20Consumer%20behaviour%20_%20a%20European%20perspective-
Financial%20Times_Prentice%20Hall%20(2006).pdf

Today, the living standards of consumers are increasing due to recent development.
Covid- 19 indeed has changed how world worked before 2019. Consumers have adapted to
this new change. But along with development we can observe the increasing consumption
in India. It has become more important than ever to understand whether it is required to buy
the product or not. Consumer can use below strategy simple and easy to understand just
ask these 6 questions to yourself as follow
 Want money or item?

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 Can you wait?

 Will you use it in the long term?

 Are you buying the item for social media?

 Is it an emotional buy?

 Are you addicted?

Figure 10

Source is economic times news paper

https://economictimes.indiatimes.com/wealth/spend/heres-how-to-decide-
whether-to-buy-or-not-to-buy/articleshow/54751854.cms

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And schemes like buy now, pay later are inducing consumers to buy even when they do not have
money in hand. Every year 25% of crimes from all crimes are financial scandals like BNPL (CNBC
news) This research report is written to understand the factors that influence consumers decision
making. Consumer's needs, wants changes with age so do their consumption of products.
As we can observe the consumers are educated enough but very few of them actually know
consumer safety organizations and consumer protection acts so on. Ministry of consumer affairs
works for the same. Consumers have different rights to protect themselves such as right to safety,
right to choose etc. Consumers Since education and consumer awareness are proved to be
correlated. It is required to increase consumer awareness using ways that will help government to
reach all the geographical boundaries as educated people know but those who don’t know get
exploited by the sellers. In already available data vijay kumar and thamizh (2004) presented the
results that “ The consumer awareness among the illiterate categories is much lower than to that
of the literate categories, the graduation and post-graduation level.”
Gender indeed affects our decision but not decision making style. And what I mean by that even
boys think feminine and take decisions. Women more care about the experience & sometimes
boys do the same about certain products only the products they are spending time researching
about.
Respondents of all age have filled the questionnaire. And age affects our decision basically as our
needs and want changes as we grow but the way we consume also changes such as young
people now-a-days spend a lot on how they appear. “Young generation care about their status
when they have none.” Kunal Shah CEO of CRED once tweeted. And one of the prominent reason is
brands express themselves as identity and young people like to show their association with the
brand like Nike it is highly likely people will choose Nike over other brands as it associated itself
with sports, passion etc.
Indian consumers are very price sensitive. Ashneer Grover ex CEO of Bharat pe says ,“ Indian
consumers are spoiled consumers they want product of low price, good quality even in small size.”
The respondents are too showing the same results 22 respondents are price sensitive.
This research project is female dominated with over 50% responses are by females. Their opinions
are noted Women are often considered the primary decision-makers or key influencers in many
household purchases. They are known to engage in extensive information search and evaluation
processes, considering various factors such as price, quality, convenience, and brand reputation.
The highest number of respondent's occupation wise are students and they are the highest
consumers. They go out eat for college, higher education spend on travel , food , rent etc. Still they
pay attention to consuming more attention to environmental sustainability. Startup talky reported
15 more sustainable startups started by college students.
It can be observed that 80% respondents spend more on clothing & fashion then health and
wellness and then food & groceries this order is observed because of fast fashion and creator

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economy. In fast fashion the manufacturers use low quality material and replicate the trending
clothing and sell at very cheap prices. On the other hand creator economy where 57% influencers
are fashion influencers who promote companies and 4 in 10 teens trust them and buy products.
So it is clear that why consumers are spending more than even now.
44% of the respondents fine social media post as persuasive media medium. And the reason for
this is the concept of social proof given the book psychology of persuasion by Robert Cialdini that
social proof means that we are likely to accept and follow the behaviour of others to feel included.
if we see a neat line forming outside of a bus stop, then we're likely to join the line rather than just
stand to the side.
“Most of the brain is dominated by automatic process, rather than deliberate thinking. A lot of
what happens is emotional, not cognitive.”
- George Loewenstein.
Marketeers are becoming smarter & smarter using consumer data and one of the ways they hook
consumers is hooked model explained by Nir Eyal in book “HOOKED”.

Figure 11

Source is growth engineering website.

https://www.growthengineering.co.uk/the-hook-model-how-to-form-
good-habits/

First, they create triggers now they can be internal or external. Triggers are cues
internal triggers can be as simple as fear of missing out and that’s why we again and again use
Instagram to fulfil these fomo .
these can be positive or negative feelings. External triggers can be ad or pop ups in notification
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but they succeed in taking our attention as attention span has been decreased all the marketeers
are using creative ways to take that attention. The next thing is after creating unsatisfied feeling in
us , we start checking information about the product and evaluation. And even before consumers
find consumers purchase the product after the successful purchase consumer might repeat the
same thing and get involved in the product eco system.
Another interesting thing that marketeers use is “neuromarketing”. By leveraging insights from
neuroscience and psychology, neuromarketing techniques aim to uncover the underlying cognitive
and emotional processes that drive consumer behaviour. By tracking our every single move from
eye movements to hand movements to every single thing consumers watch. Basically, by
watching us all the time invading privacy . And that’s why consumers are finding now-a-days to
cope up with these changing technology. Apple introduced vision-pro this month.
Increasing income, Access to avenues of consumption like malls, shopping complexes etc,
increasing internet penetration , fading line between online and offline channels of consumption,
convenience and hyper personalization of products in one line these are recent factors that are
influencing consumer purchase decisions.
Consumers need to understand this as there are many ways they can be exploited . Ministry of
consumer affairs solves all the queries visit their official page to know more about consumer
protection acts and their rights.
In conclusion, I extend my sincere appreciation to all who have contributed to this research paper.
Your involvement and support have been instrumental in its completion.

THANK YOU !!

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