Consumer Buying Behavior in the Textile Industry: A Project Report

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This project report, submitted to Kurukshetra University for a Bachelor of Business Administration degree, investigates the factors influencing consumer buying behavior in the textile industry. The report, based on research conducted by a student at Sanatan Dharma College, Ambala Cantt, explores various aspects including consumer preferences, marketing strategies, and the impact of factors like price, quality, and brand on purchase decisions. It provides an overview of the textile market in India, emphasizing the importance of understanding consumer behavior for effective marketing. The report covers the evolution of the textile industry, the role of consumer buying behavior, and the various factors influencing consumer choices, such as marketing, personal, social, cultural, and psychological factors. The study also provides an executive summary that highlights the key findings and suggests marketing strategies to capture the attention of potential young Indian consumers. The project includes an introduction, objectives, research methodology, findings, analysis, suggestions, limitations, and conclusions, along with a comprehensive bibliography.
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Project Report
On
FACTORS INFLUENCE CONSUMER BUYING BEHAVIOR IN TEXTILE
INDUSTRY.”
Submitted to
KURUKSHETRA UNIVERSITY, KURUKSHETRA
In the partial fulfillment for the award of the degree of
Bachelor of Business Administration
Session 2020-21
Under Supervision of: Submitted By:
Ms. Pooja Rani Sakshi
Assistant Professor BBA V SEM
Department of Commerce and Management Roll No: - 2365620014
Sanatan Dharma College University Roll No:-180000424
Ambala Cantt.
SANATAN DHARMA COLLEGE, AMBALA CANTT
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CERTIFICATE I
This is to certify that Sakshi D/o Mr. Balram Kumar is a bonafide student of S.D. College,
Ambala Cantt. She is pursuing her degree of Bachelor of Business Administration from this
institution under the college Roll No. 2365620014 (University Roll No. 180000424) for the
session 2020-2021.
Dr. Rajinder Singh
Principal
S.D. College
Ambala Cantt
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CERTIFICATE II
This is to certify that, Sakshi, D/o Mr. Balram Kumar is a bonafide student of Bachelor of
Business Administration. She has completed her report on the topic Factors influence
consumer buying behavior in Textile industry”. It is to further certify that the report embodies
the work of the candidate herself. The candidate has worked under my guidance and supervision
for the time period required under the relevant ordinance.
Ms. Pooja Rani
Assistant Professor
S.D. College
Ambala cantt
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DECLARATION
I Sakshi student of BBA, 5 th Semester of S.D. College, Ambala Cantt., hereby declare that the
project report on Factors influence consumer buying behavior in Textile industry
submitted to S.D College, in partial fulfillment of Bachelor of Business Administration course is
an original piece of work conducted by me.
The information and data given in the report is authentic to the best of my knowledge.
The Project report has not been submitted to any other institute/college for award of any degree,
diploma or fellowship.
Sakshi
College Roll No: - 2365620014
University Roll No: - 180000424
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ACKNOWLEDGEMENT
It is not merely a formality but a deep expression of gratitude. I have tried my best to present this
information as clearly as possible using basic term that I hope will be comprehended by the
widest spectrum of researches, analyst and student for further studies. I am highly indebted to my
institute Sanatan Dharma College, Ambala Cantt. For providing me facilities and support without
which this training would not have accomplished.
I would like to extend a sincere gratitude to Ms.Pooja Rani completed this study under the
guidance and supervision. I have received from her towards fruitful and timely completion of
this work. I also thankful to my friends who helped me a lot in the completion of this project
report.
I would also like to extend sincere thanks to few people who were not part of my project but
without their help things would not have been as easy as they were.
Sakshi
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EXECUTIVE SUMMARY
This summary provides the reader an essence of the study, of the factors influencing the Buying
Behavior of Textile products among Indian youth. It also gives a glimpse of the recommended
marketing strategies that can be developed to capture the attention of the potential young Indian
consumers.
Textile industry is one of the oldest industries in India. The industry basically involves
manufacturing of various types of fabrics both natural and synthetic, production of machinery,
and planning and development of new technology. It was found important for us to carry out a
comprehensive review for these research studies in order to identify and determine the key
factors affecting consumer behavior and especially factors affecting purchase decision.
Understanding consumers’ buying behavior is one of the elements that help in achieving
marketing goals, without this understanding it makes gaining more customers difficult.
Especially in today’s competitive world. The marketer has to understand as to how the consumer
actually makes a purchase decision, who makes the decision and the type of decisions and the
steps in the buying process. As a general concept, clothes help people to express themselves.
They can express their individuality and creativity through their clothes. This can contribute to
the building up of self-esteem, self-respect and self-acceptance. The study of consumer purchase
behavior provides information about consumer and its consumption pattern. The consumer
analyzes the prevailing prices of commodities and takes the decision about the commodities he
should consume. Meanwhile, there are various other factors influencing the purchases of
consumer such as marketing, personal, social, cultural, personal and psychological factors.
Quality factor plays an important role for consumers during buying behavior of apparel.
It is suggested that the current market growth will be continued into the future. Consumer
preferences for home textile products, namely, Price, color, style, brand name/designer, fiber
content, availability of packaged sets, fabric type, thread count and retail channel.
This report is aimed to investigate the Factors Affecting consumer buying behavior in Textile
Industry. How much consumers are prepared to pay for branded products, how important they
consider price, quality, durability or other factors during their purchasing decisions. The Report
aimed at comprehensive literature review on factors affecting consumer behavior. The factors
such as social, cultural, economic, psychological, personal and the marketing factor includes
each factor of market mix – product, pricing, promotion and place has the potential to affect the
buying process at various stages.
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INDEX
CHAPTERS TITLE PAGE NO.
I Introduction 1-41
II Objective of the study 42
III Research Methodology 43
IV Findings and Analysis 44-55
V Suggestion 56
VI Limitation 57
VII Conclusion 58
VIII Bibliography/References 59-62
IX Annexure 63-66
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CHAPTER-I
INTRODUCTION
Textile market is one of the most important markets in the world. Understanding factors
influencing consumer behavior is one of the techniques used in contemporary marketing of
textile products. This technique could be employed to create a textile company strategy attracting
and advertising for target consumer. Textile industry is one of the oldest industries in India. The
industry basically involves manufacturing of various types of fabrics both natural and synthetic,
production of machinery, and planning and development of new technology. The industry has
categorized three major areas of work namely research and development, manufacturing and
merchandising. It provides direct employment to more than thirty million people
Consumer behavior is a complicated and diverse area of study. Since marketing is based on
identifying, anticipating and providing customer needs it is important to understand them. There
are two predominant types of buying: consumer buying, which consists of buying products for
personal use, and organizational buying, which involves buying for organizational purposes.
Consumer buying behavior is defined as the buying behavior of final consumers, individuals and
households who purchase goods and services for personal consumption.
Consumer orientation marketing is a contemporary marketing technique based on consumer
needs and wants. This technique aims at producing items and goods that people willing to buy. In
other words, consumer demand is the focus of this marketing technique. One of the approaches
applied in this technique is called consumer-driven approach. In which consumer needs are the
driving force of all marketing decisions. Consumer needs include the nature, specification and
characteristics of the product itself. Manufacturers and sellers of textile products might lose
consumers as they are not aware of their needs and not ultimately under-standing their wants and
preferences. The continued viability of textile industry is based on the ability of manufacturers,
advertisers, and retailers to predict, develop, and communicate styles of apparel and other textile
products that conform with the desires of the consuming public.
We have been studying consumer behavior and response for textile products. It was found
important for us to carry out a comprehensive review for these research studies in order to
identify and determine the key factors affecting consumer behavior and especially factors
affecting purchase decision. This study will focus on target customers 'evaluative criteria for
various textile and garment items. This would be useful for researchers in the textile and apparel
area in order to focus their forthcoming studies and investigations on the factors might affect
purchasers' decision and not studied yet. Practically, this will be an informative research for
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textile, apparel and fashion designers, manufacturers and advertisers in order to put into
consideration features could affect their product characteristics. In this research two main areas
will be discussed, namely; market and consumer dominated variables. Understanding consumer
behavior is essential for a marketer to satisfy customer needs efficiently and lucratively.
Research into consumer behavior allows the marketer to create target groups of people with
common interests, values, beliefs and patterns of behavior which will be discussed further in this
proposal. Once a market segment has been identified, marketers can research the target market
more thoroughly and the marketing mix, product, price, promotion and place can be adjusted to
ensure the product position is correct. Textiles are utilized for innumerable purposes other than
the manufacturing of garments. They are used in the manufacturing of carpets and furnishing like
bed sheets and bed covers, quilts, table cloth, curtains and towels etc. It is also used for rags and
dusters, tents and nets, kites, parachutes etc. Textiles have industrial uses as well.
CONSUMER BUYING BEHAVIOUR
The consumer, The KING of the market is the one that dominates the market and the market
trends. Lets us know the King first. A consumer is someone who pays a sum to consume the
goods and services sold by an organization. The consumer plays a very important role in the
demand and supply chain of every economic system of every nation. The producers of the goods
and services would lack the motive of producing as there would be no demand for their products.
A consumer need not just be an individual; a consumer can also be an organization. A consumer
can be someone who will buy either goods or services or you can also specify the goods
and services as economic services or products, or good or commodities. A consumer is the end
user or a target to whom the goods and services are sold. In simple words a consumer can be
described as:
A person or an organization that is specifically targeted to sell a products or a service of a
company.
The consumer is the decision maker here in the economic system. He can take the following
decisions
1. The decision of buying or not a product in a store or at a shop
2. The consumer will decide if he would want to be influenced by the marketing
strategies and the advertisements of the organization for a product or a service.
3. Many consumers are influenced by marketing and advertisements
4. The consumer decides what they want to buy and when they want to buy it
5. The consumer chooses between competitors and their products.
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Decision making is the power given to the consumer.
Everyone has been a consumer and participated in the consumer market. The consumer market is
where the consumer has the right and the power to make a decision of spending their money.
Even buying a packet of chips from a store is being a part of the consumer market as you
participate in the buying a packet of chips buy paying a sum for the purchase. Here you are also
taking a decision. This is a decision of buying goods and spending your money. You are deciding
where to spend your money and on what should you spend your money. You are deciding
amongst competitors. The more active the consumers of the nation the more active will be the
nation’s consumer market.
Consumer behavior
Consumer buying behavior is the study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of products, services, experiences, or ideas
to satisfy needs and the impacts that these processes have on the consumer and society.
Marketing success or failure of a company depends on target consumers’ individual and group
reactions expressed in the form of buying patterns. Since customer is the reason why any
organization exists, it is necessary to understand the customer and study the pattern of his buying
behavior. Understanding consumers’ buying behavior is one of the elements that help in
achieving marketing goals, without this understanding it makes gaining more customers difficult.
It is worth noting that consumer buying behavior is studied as a part of marketing and its main
objective is to learn the way individuals, groups or organizations choose, buy, use and dispose
the goods and the factors such as their previous experience, taste, price and branding on which
the consumers base their purchasing decisions. The buying behavior of individuals or consumers
is often unconsciously affected by some factors, and this research will be focusing mainly on age
and income and how it affects consumer behavior in the marketing of consumer goods. Age is
considered as one of the important demographic variables which can have a deep influence on
purchase pattern on an individual. Also, a person's economic situation affects the product choice.
Marketers of income-sensitive goods should monitor trends in personal income, savings and
interest rates. Hence, it is critical to consider these factors in consumer behavior, as they greatly
influence how people respond to marketing messages and make purchasing decisions. This paper
seeks to explore the sociological factors influencing customers’ behavior within the clothing
industry.
It may be viewed as an orderly process whereby the individual interacts with his environment for
the purpose of making market decisions on products and services. To achieve a better
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understanding of the consumer behavior, study of such disciplines like economics, sociology,
psychology, and anthropology is required.
Economics explains consumer behavior in relation to economic factors. Sociology and cultural
anthropology supply explanations concerning the influences of family and group behavior upon
individual behavior, the diffusion of new products and ideas (innovation) among various groups,
and the impact of culture on its members.
Psychologists explain the motivation that underlines buying behavior, the perceptions individuals
have of themselves and the products they buy. The internal and external forces and influences
interact in highly complex ways, affecting the individual’s total pattern of behavior as well as his
buying behavior.
Types of Consumer Buying Behavior:
Consumer buying behavior is determined by:
I. Level of involvement in purchase decision. Importance and intensity of interest in a product in
a particular situation.
ii. Buyers level of involvement determines why he/she is motivated to seek information about a
certain products and brands but virtually ignores others.
High involvement purchases:
High priced goods, products visible to others, and the higher the risk the higher the involvement.
Types of risk:
I. Personal risk.
ii. Social risk.
iii. Economic risk.
CHARACTERISTICS OF CONSUMER BUYING BEHAVIOUR
Following characteristics are found in their behavior:
1. Bargaining – A trend of bargaining is often found in the behavior of buyers. They prefer
buying goods by reducing the price as told by the seller. Indian buyers too do not frame uniform
price policy. The trend of bargaining is still in vogue in the Indian markets.
2. Quality vs. Price – Buyers focus on price instead of the variety of the goods. They therefore,
prefer high price goods. A little bit change has come now because the consumers have now
begun purchase of quality goods on higher price.
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3. Brand or Trademark Consciousness – It is the characteristic of the behavior of buyer that he
appears now aware of the brand of items and considers these goods authentic and of higher
quality.
4. Changing Consumption Patterns – Owing to widespread education, increase in income and
standard of living as also desire of more comforts, the pattern of consumption is now being
changed. The low income group and high income group are increasingly buying fridge, tape
recorder, cooler, sewing machines etc.
5. Role of Women – The role of women is increasing day to day in the manner of decisions for
purchase. The women do purchase of all kinds particularly in families where the husbands earn
the bread.
6. Credit and Guarantee – New motives for purchase are getting their way rapidly because of
having credit and guarantee facility available in the market. Such facilities are developing the
trade and commerce.
7. Complaining – Buyers are gradually being aware of their rights. They have started exhibiting
their complaints through media and the representations before the concerned authorities and the
forums. They can lodge their complaint before consumer forum and thus, can receive the
compensation against the damage/loss so sustained.
Types of consumer behavior
Impulse Purchases: When a consumer stands at the checkout and notice magazines and similar
goods they makes a purchase with no thought or planning involved. In most instances this
happens with low-priced items. The job of the organizations here is to educate the consumers
about their goods and services and motivate them to buy their goods and services. Predicting
single or consumer behavior of a group is not just difficult because you never know what factors
might influence them and when. Reason being the consumers today have a huge variety of
choice and a number of factors influence the behavior of the consumers.
Routine Purchases: There are items consumers are used to purchasing every day, once a week
or monthly. These can range from a morning cup of coffee from a nearby convenience store, to
milk, eggs and cheese from the supermarket. Customers spend very little time deciding whether
or not to purchase these items and don't typically need to read reviews or consult with friends for
their opinions before they make routine purchases. Buying of regular and daily goods that
involve very less money and also minimum research work fits under this type of goods buying
behavior.
Limited Decision Making: When customers engage in purchases that require limited decision
making, they may seek advice or a suggestion from a friend. The consumer may research a few
options, but the search is not as thorough, or as time consuming, as with a higher priced item.
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