GEMS OUR OWN ENGLISH HIGH SCHOOL, DUBAI

TANZEEL ABDUL JABBARXI – J

2015 – 2016

Marketing project - Title:

“ASCERTAININNG FROM THE LOCAL MARKET OF SELECTED CONSUMER GOODS TO WHAT EXTENT

ECONOMIC, SOCIAL AND CULTURAL FACTORS AFFECT THE DEMAND FOR THE PARTICULAR GOODS AND

PREPARING A REPORT”

TOPIC

“Ascertaining from the local market of selected consumer goods to what extent economic, social and cultural factors affect the demand for the particular goods and preparing a report”

INDEX1. CERTIFICATE

2. ACKNOWLEDGEMENT

3. TOPIC

4. INDEX

5. CONSUMER BEHAVIOUR

6. ECONOMIC FACTOR

7. FACTORS CHOSEN

8. SOCIAL FACTOR

9. FACTORS CHOSEN

10.CULTURAL FACTOR

11.FACTORS CHOSEN

12.TREE – DIAGRAM

13.ECONOMIC – PRODUCTS

14.PRODUCT 1

15.PRODUCT 2

16.PRODUCT 3

17.SOCIAL – PRODUCTS

18.PRODUCT 1

19.PRODUCT 2

20.PRODUCT 3

21.CULTURAL – PRODUCTS

22.PRODUCT 1

23.PRODUCT 2

24.PRODUCT 3

25.PROJECT REPORT

26.MARKET SURVEY

27.RESULT AFTER SURVEY

28.QUESTIONNAIRE – ECONOMIC

29.QUESTIONNAIRE – SOCIAL

30.QUESTIONNAIRE – CULTURAL

31.GRAPH 1 and 2

32.GRAPH 3 and 4

33.GRAPH 5 and 6

34.GRAPH 7 and 8

35.GRAPH 9 and 10

36.CONCLUSION

37.BIBLIOGRAPHY

CONSUMER BEHAVIOUR

MEANING OF CONSUMER BEHAVIOR

Consumer behavior refers to all the processes related to what, why, how, when, from whom consumers purchase and pay for a product and how they consume and dispose of it in order to meet their needs.

DEFINITION BY PHILIP KOTLER

Consumer behavior include mental activity, emotional and physical that people use during selection, purchase, use and dispose of products and services that satisfy their needs and desires .

ECONOMIC FACTOR

Consumer behaviour is influenced largely by economic factors. It could be a person’s income, savings, assets, economic situations, etc.

For instance, if the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products.

ECONOMIC

FACTOR

PERSONAL

INCOME

INCOME

EXPECTATIONS

OCCUPATION

FACTORS CHOSEN (ECONOMIC)•The personal income of a person is

determinant of his buying behaviour.

•An increase in the income leads to an increase

in the expenditure on shopping goods,

luxuries etc. which improves the standard of

living of a person and vice versa.

PERSONAL

INCOME • Income expectations are one of the important

determinants of the buying behaviour of an

individual.

• If he expects any increase in his income, he is

tempted to spend more on shopping. On the

other hand, if he expects any fall in his future

income, he will curtail his expenditure and

restrict to bare necessities.

INCOME

EXPECTATIONS •Occupation of a person influences his buying

behaviour.

•The life styles and buying decisions differ

widely according to the nature of the

occupation.

•Marketers have to design different strategies

that suit the buying motives of different

OCCUPATION

SOCIAL FACTOR

Man is a social animal. Hence, our behaviour patterns, likes and dislikes are influenced by the people around us to a great extent.

We always seek confirmation from the people around us and seldom do things that are not socially acceptable.

The social factors influencing consumer behaviour are a) Family, b) Reference groups, c) Roles and status.

SOCIAL

FACTOR

FAMILY

ROLES AND

STATUS

REFERENCE

GROUPS

FACTORS CHOSEN (SOCIAL)•Family members can strongly influence the

buyer behaviour.

•The tastes, likes, dislikes, life styles etc. of the

members are rooted in the family buying

behaviour.

•For e.g. If the buying decision of a product is

influenced by wife then marketers will try to

target women in the ad.

FAMILY•A person participates in many groups like

family, clubs, and organisations. The person’s

position in each group can be defined in term of

role and status.

•People choose products that communicate their

role and status in society, thus marketers should

be aware of the status symbol of different

products.

ROLES AND

STATUS

• A reference group is a group of people with whom an individual

associates which strongly influences a person’s attitudes values

and behaviour directly or indirectly.

• The impact of reference groups varies across products and brands.

REFERENCE

GROUP

CULTURAL FACTOR

Kotler observed that human behaviour is largely the result of a learning process and as such individuals grow up learning a set of values, perceptions, preferences and behaviour patterns as the result of socialisation both within the family and a series of other key institutions.

From this we develop a set of values, which determine and drive behavioural patterns to a

CULTURAL

FACTOR

CULTU

RE

SUB-

CULTU

RE

SOCIAL

CLASS

FACTORS CHOSEN (CULTURAL)•Culture is the most fundamental determinant of

a person’s want and behaviour.

• It is a set of beliefs and values that are shared

by most people within a group.

•Culture influences considerably the pattern of

consumption and the pattern of decision-

making.

CULTURE•Sub-culture refers to a set of beliefs shared by a

subgroup of the main culture, which include

nationalities, religions, racial groups and

geographic regions.

•Many sub-cultures make up important market

segments and marketers have to design

products and marketing programs tailored to

their needs.

SUB-CULTURE

• Consumer behaviour is determined by the social class to which they

belong.

• Social class is relatively a permanent and ordered division in a

society whose members share similar value, interest and behaviour.

SOCIAL CLASS

FACTORS AFFECTING CONSUMER BEHAVIOUR

ECONOMIC

PERSONAL

INCOME

INCOME

EXPECTATIO

NS

OCCUPATION

SOCIAL

FAMILY

ROLES AND

STATUS

REFERENCE

GROUPS

CULTURAL

CULTURE

SUB-

CULTURE

SOCIAL

CLASS

PERSONAL INCOME

OCCUPATION

INCOME EXPECTATIONS

ECONOMIC FACTOR

PERSONAL INCOME – HOUSE

A house is a building for human habitation, especially one that consists of a ground floor and one or more upper storeys.

The purchase or building of a house is greatly influenced by one’s personal income. If a person’s income is high, then he/she will purchase a big and luxurious house. While on the other hand, a low income person will buy a house which stays within his limit.

There are many other factors that affect the purchase of a house. They can be family (number of members), roles and status, occupation, social class and even one’s culture.

INCOME EXPECTATIONS -ULTRA-HIGH-DEFINITION TELEVISION (ULTRA HD TV)Ultra-high-definition television (also known as Super Hi-Vision, Ultra HD television, UltraHD, UHDTV, or UHD) includes4K UHD (2160p) and 8K UHD (4320p), which are two digital video formats proposed by NHK Science & Technology Research Laboratories and defined and approved by the International Telecommunication Union (ITU).

Income expectation influences the purchase of a UHD TV. This product is a luxury good. So, a person will buy this when he/she expects an increase in their income. But if their expectation is the opposite, they would not even think of buying this product and will restrict themselves to their basic necessities.

Other factors that influence the purchase of a UHD TV are one’s personal income, occupation, roles and status, social class and so on.

OCCUPATION – BUSINESS SUIT

In clothing, a suit is a set of garments made from the same cloth, usually consisting of at least a jacket and trousers. Lounge suits (also known as business suits), which originated in Britain as country wear, are the most common style of Western suit.

Occupation plays a major role in the purchase decision of a business suit. For instance, a manager of an organisation will try to purchase business suits whereas a low level worker in the same organisation will purchase rugged work clothes.

Other factors that influence the purchase decision of a business suit are social class, income, roles and status and reference group.

FAMILY

REFERENCE GROUPS

ROLES AND STATUS

SOCIAL FACTOR

FAMILY – FOOD PROCESSOR

A food processor is a kitchen appliance used to facilitate repetitive tasks in the preparation of food. Today, the term almost always refers to an electric-motor-driven appliance. Food processors use interchangeable blades and disks instead of a fixed blade.

Family plays a major role in the purchase decision of a food processor. Every family will definitely buy this product, especially the housewife.

Other factors that influence the purchase decision of a food processor are income, roles and status, reference group and occupation.

ROLES AND STATUS – CAR

A car is a wheeled, self-powered motor vehicle used for transportation. Most definitions of the term specify that cars are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally for the transport of people rather than goods.

Roles and status influences the purchase decision of a car. When a person belongs to a particular social group or circle, he/she will try to adapt to their style and will also purchase luxury goods as they do. One of these luxury goods is a car. According to their level of status, they will purchase cars of different brands.

There are many other factors that influence the purchase decision of a car. They are income, family (no. of members), occupation, social class and reference group.

REFERENCE GROUP – LAPTOP

A laptop or a notebook is a portable personal computer with a clamshell form factor, suitable for mobile use. They are commonly used in a variety of settings, including at work, in education, and for personal multimedia.

Reference group influences the purchase decision of a laptop. For instance a person is influenced to buy a laptop because everyone in his/her community/circle has one.

Other factors that influence the purchase decision of a laptop are personal income, roles and status, culture, social class and family.

CULTURE

SOCIAL CLASS

SUB-CULTURE

CULTURAL FACTOR

CULTURE – CONFECTIONERY

Bakers' confectionery includes sweet baked goods, especially those that are served for the dessert course. Bakers' confections are sweet foods that feature flour as a main ingredient and are baked. Major categories include cakes, sweet pastries, doughnuts, scones, and cookies.

Culture plays an important role in the purchase decision of confectionery items/sweets. For instance, people would buy barfi and jalebis for Diwali and cakes and pastries for Christmas. For Eid, Arabic sweets and biscuits would be purchased.

Other factors that influence culture are sub – culture, family, income and social class.

SUB-CULTURE – ABAYA

An abaya is a full-length, sleeveless outer garment worn by some Muslim women. The abaya covers the whole body except the face, feet, and hands. It can be worn with the niqāb, a face veil covering all but the eyes. Some women choose to wear long black gloves, so their hands are covered as well.

Sub – culture plays a crucial role in the purchase of an Abaya as it is a part of the Islamic culture and religion. There are certain specific clothing style which represents different culture.

Other factors that influence the purchase of abaya can be culture, lifestyle, income, family, and of course religion.

SOCIAL CLASS – WATCH

A watch is a small timepiece intended to be carried or worn by a person. It is designed to keep working despite the motions caused by the person's activities.

A wristwatch is designed to be worn on a wrist, attached by a watch strap or other type of bracelet.

Social class influences the purchase decision of a watch. People can judge one’s lifestyle and even income by observing the kind of watch he/she wears. So a person from a higher social class will try to purchase an expensive branded watch even if it is not a necessity.

Other factors that influence the purchase decision of a watch are income, reference group, culture, family, roles and status.

PROJECT REPORT

MARKET SURVEYMarket research/survey is any organized effort to gather information about target markets or customers. It is a very important component of business strategy.

Market research provides important information to identify and analyse the market need, market size and competition.

Surveys have been used in various fields of research, such as sociology, marketing research, politics and psychology.

METHODOLOGY : QUESTIONNARE

In survey research, a questionnaire is an instrument that is comprised of a set of questions to be asked to the participants or respondents of the survey.

Sir Francis Galton, an English polymath, introduced the use of the questionnaire in surveys.

Questionnaires usually ask questions that elicit ideas and behaviours, preferences, traits, attitudes and facts.

QUESTIONNAIREI’m a student of GEMS Our Own English High School, Dubai and this is a survey based on the products that I have chosen. Kindly answer the following questions.

On the basis of Economic Factors:-

1. Which of these factors affect you the most while taking a purchase decision?

a. Personal income

b. Income expectations

c. Occupation

2. Which of these factors would you consider while purchasing formal wears (business suit)?

a. Personal income

b. Income expectations

c. Occupation

3. When you purchase a long-term product (e.g. House), which economic factor affects you the most?

a. Personal income

b. Income expectations

c. Occupation

On the basis of Social Factors:-

1. According to you, does one’s purchase behaviour affect their personality?

a. Yes

b. No

2. Which among these helps you in price reduction/offers of a food processor?

a. Family

b. Roles and status

c. Reference group

3. While making a purchase decision on a tech-product(laptop), which of these factors influence you the most?

a. Family

b. Roles and status

c. Reference group

On the basis of Cultural Factors:-

1. Which according to you is the most common cultural factor that influences one’s purchase decision?

a. Culture

b. Sub – culture

c. Social class

2. While purchasing clothes (e.g. abaya), which of these factors influence you the most?

a. Culture

b. Sub – culture

c. Social class

3. Which factor helps in price reduction of a particular product (sweets) during a specific festival?

a. Culture

b. Sub – culture

c. Social class

RESULT AFTER SURVEY

With graphical representation and reasoning.

1) ON THE BASIS OF PURCHASING A HOUSE

Economic factors

i. Personal Income is the main factor that affects purchase of a house (60%). As this product is for a long term use, it is according to one’s income that one would buy a house.

ii. On the basis of Occupation (40%)also people would opt for a house because a good occupation only can bring good income.

Social factors

i. Family is the main factor that affects purchase of house (55%) when compared because a house is set according to the no. of members in that family.

ii. On the basis of Roles and Status (45%) also people would buy a house but a little less than family as people in a good position in society will have to keep up to their standards.

60%

40%

ECONOMIC FACTORS

Personal income Occupation

55%45%

SOCIAL FACTORS

Family Roles and Status

2) ON THE BASIS OF PURCHASING A FOOD PROCESSOR Social factors

i. Family is the main factor that affects purchase of a house (80%)because food processor is a household appliance and the opinion of family members (wife) is very important.

ii. On the basis of Roles and Status (20%) not much influence is seen as the status and role of the person doesn’t effect the purchase of fridge much.Cultural factors

i. Social class affects purchase of food processor (85%) more than the other cultural factors because high class people would opt for food processor than lower class people.

ii. Culture doesn’t have that much influence (15%) on purchase of food processor as people of different cultures use the same appliance.

80%

20%

SOCIAL FACTORS

Family Roles and Status

85%

15%

CULTURAL FACTORS

Social class Culture

3) ON THE BASIS OF PURCHASING AN ABAYA

Cultural factors

i. Sub-Culture is a very important influence (65%) as this factor includes religion which is a main factor for purchasing abaya and also people of Arab and Islamic culture opt to buy it.

ii. Social class is also an influence (35%) because people of higher class would buy designer and better quality abaya.Economic factors

i. Income is a very influencing factor (75%) as people with high income will buy premium, expensive and branded abaya while people with less income wouldn’t.

ii. Occupation (25%) plays a small role in buying abaya as this clothing is regarded as a formal

65%

35%

CULTURE FACTORS

Sub-culture Social class

75%

25%

ECONOMIC FACTORS

Personal Income Occupation

4) ON THE BASIS OF PURCHASING A BUSINESS SUIT

Economic factors

i. Occupation is the main factor that affects purchase of a business suit (70%) as this product is a very commonly used office wear.

ii. On the basis of Income (30%) too people purchase business suits since such formal wears range from expensive to cheap ones.

Cultural factors

i. Social class is the main factor that affects purchase of a business suit (80%) as people of a higher class would mostly wear such formal suits.

ii. Culture (20%) plays a small role because people of certain culture only wears formal attire (Englishmen).

30%

70%

ECONOMIC FACTORS

Personal income Occupation

80%

20%

CULTURAL FACTORS

Social Class Culture

5) ON THE BASIS OF PURCHASING A LAPTOP

Social factors

i. Reference Group is the main factor that affects purchase of a laptop (65%). As this product is for a long term use, it is according to one’s income that one would buy a house.

ii. On the basis of Roles and Status (35%)also people would opt for a laptop since it is a symbol of status and it is a necessity in today’s world.Economic factors

i. Income is an important factor that affects purchase of laptop (70%) because according to one’s income, one would purchase expensive or cheap product.

ii. On the basis of Income Expectation (30%) also people would buy highly expensive/moderate rate laptop according to the growth/fall in one’s income.

65%

35%

SOCIAL FACTORS

Reference Group

Roles and Status

70%

30%

ECONOMIC FACTORS

Personal Income

Income Expectation

CONCLUSIONFrom this project and survey, I have understood the crucial role played by economic, social and cultural factors in determining the demand for goods.

Under economic factors, demand for a house increases with the increase in personal income. The type of occupation determines the attire(business suit) a person uses. If a person expects an increase in his income, it is termed as income expectation. So, a person would foresee it and purchase luxury items like UHD TV.

Under social factors, we see that family has a huge influence in buying food processor as it is a household appliance. Role and status - Car being a luxury can be afforded by only people with good status and an important role. The Reference group a person belongs to can influence him/her to purchase slightly complex products like laptop.

Under cultural factors, the demand for confectioneries is maximum during cultural festivals and occasions. The demand for abaya is mostly restricted to Arab and Islamic culture. Watches gives an outward appearance of one’s social class.

BIBLIOGRAPHY

http://www.managementstudyguide.com/cultural-factors-affecting-consumer-behaviour.htm

http://www.yourarticlelibrary.com/products/5-factors-influencing-consumer-behaviour-explained/22163/

www.wikipedia.com

www.google.com