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Project Report

The Denim (Jeans) Market of Bihar - A Consumer Behaviour Report

Submitted by Ashish Ranjan

PUNJAB TECHNICAL UNIVERSITY DISTANCE EDICUTION PROGRAMME


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ACKNOWLEDGEMENT

With profound veneration, first of all we recline myself before ALMIGHTY without whose blessings myself is cipher. Indeed the words and my command are inadequate to convey my profound gratitude and feeling of indebtedness to Dr. Gautam Sen Gupta, Dr. Prof. Ravi Shankar for his valuable suggestions and able guidance in questionnaire formation and understanding the theoretical prospective of the project. I am thankful to Shri Shailesh for his support and timely information made available to us. Our sincere thanks are due to all the respondents who provided us with their feedback on our questionnaire and spared their valuable time for the same. We would also like to extend our thanks to all the shopkeepers for providing us with valuable knowledge about the denim jeans market. I acknowledge to my elder brothers Deepak and Anurag who motivated me to complete and submit the work on time. I am indebted to my parents Sri Birendra Kumar and Smt. Sheela Gond who always boosted up me by reminding my goal and their expectation. Last but not least, it is acknowledged to my little naughty niece Khusi; and bhabhi Priyanki who provided me with tasty foods to energize me for of hours.

Table of Content
S. no. 1 2 3 4 5 6 7 8 9 10 Content Executive summary Introduction/ Statement of the problem Objective & Scope of the study of the study Theoretical Perspective Research Design Denim Market in India Data presentation & Findings from the Study Recommendations References/ bibliography Appendix Page No. 4 6 12 13 16 19 25 42 44 45

Executive summary
Consumer Behaviour plays a very important role in marketing of any product. Consumer behavior is also an economic process where exchanges take place. These exchanges often involve many players. The study of consumer behavior enables marketers to understand and predict consumer behavior in

the marketplace; it is concerned not only with what consumers buy but also with why, when, where, and how they buy it. In this project we have tried to study the factors affecting the decision making process for the denim market (specifically jeans). Jeans is the flavour of the young generation and almost every apparel manufacturer wants to be present in this market. For the purpose of the study a questionnaire has been designed comprising of 20 questions and responses of around 168 consumers has been collected. The sample of the questionnaire is attached in the appendix. Our study entails the analysis of the entire purchase process of a jeans buyer, and how the decision is taken, till the time it is implemented, and then the product is disposed of. Understanding the core attributes of the purchase process is what we have looked at while doing the research, and understanding the complexity of the market which comprises of a large number of unorganized brands. The study bought out somewhat very different attribute of people regarding many things, like only 2% people said they prefer unbranded jeans and only 6% prefer to buy jeans from local markets and only 3% considered bargaining as a part of purchase, these results shows clearly the changing trend of Indian retail market and the change in consumer attributes while the purchasing of jeans.

Moreover another interesting factor that caught our notice is the recalling of the brand, average recalling of number of brands is around 4-5 brands per respondent and the most popular brand were found out to be levis, lee and wrangler. And another fact that has been noted is that very few consumers (only 12%) considered the check of brand logo and originality check as a part of purchase instead of Indian market being thronged by fakes and duplicates.

While at the consumers end, our research throws light upon the various brands available in the market, the association of various consumer segments, what most people wear and why, along with a host of factors that affect the consumer decision process. Our study should help the suppliers, manufacturers and retailers in understanding the Denim Jeans Market, the consumer behaviour and how they make the decision of purchase. Based on the study the branded jeans can position themselves to be at maximum benefit and have higher customer satisfaction.

Introduction
Lifestyle and Fashion accessories are today one of the most common words that could be heard in every nook and corner of the buzzing young crowd of any country, more so, when the country is so 5

rich in its diversified portfolio of consumers which includes people from 38 districts, speaking many dialects & languages and understanding the importance of religions and a similar number of varied cultures. And all of such can be seen in Bihar, which is home to people from all ages and cultures. A study of their buying patterns in the Lifestyle segment, more specifically in the Denim market (that affects almost all the buying groups), is what we are looking at through the means of this project that was carried out in several parts of the city, bringing out various aspects of Consumer buying patterns, and their sentiments and responses while making a purchase for their favorite pair of Jeans. The choice of Jeans in the Indian scenario is varied. The reason, again, is due to the wide spectrum of people coming from such diverse backgrounds. With the inception of Denim in the Indian market in 1980s, the attraction to such a lifestyle product has never seen a backseat in all these years. With more companies coming over from abroad, as well as within the country, the demand has seen only one way, and that is upwards. Levis, Wrangler, Lee, Pepe, Newport, Flying Machine, and many others have thronged the market place with their latest designs every next day, giving the consumer a wider variety to choose from. At the same time, the market is also thronged by duplicates and fakes along with Non-branded jeans that cater to the lower end but high aspiration segment of the market. The current demand of denim in the market is estimated to be over 140 mn mtrs, growing at around 10.5%. This demand, even when exposed to an increase in the base, is expected to grow continuously at around 7%, and is projected to be around 168 mn mtr and 215 mn mtr in the years 2009-10 and 2014-15 respectively. With such huge potential in the market, Jeans is surely to survive and will see much change in the consumer buying patterns. While talking about Lifestyle products, it becomes extremely necessary to mention the importance of Demographics, and the relationship that the consumer develops with the product over a period of

time. It is not just like any other soap or a TV that he purchases, it something that is directly related to his emotional and cognitive aspects of life. The Marketing Dictionary of Rona Ostrow and Sweetman R. Smith describes lifestyle as "A distinctive mode of behavior centered around activities, interests, opinions, attitudes and demographic characteristics distinguishing one segment of a population from another. A consumer's lifestyle is seen as the sum of his interactions with his environment. Lifestyle studies are a component of the broader behavioral concept called psychographics." Berkman and Gilson mention Lifestyle as behavior that both determine and are determined by consumption. However, this behavior is susceptible to change over a period of time, wherein, the same customer may evolve over the years from a brand serving a mere utility to one that is more fashion trendy to something that gives him a more subtle and sophisticated look. The buying pattern simultaneously changes according to the change in his interests. Thus, it is the Lifestyle that changes the attitude of the consumer over a period of time. It is this integrated system of a person's attitudes, values, interests and opinions that govern his purchases for a Shirt or a pair of Jeans, per se. Lifestyle accessories and Fashion products are highly influenced by a factor commonly known as Demographics. It is defined as the size, structure, and distribution of a population. Demographics help the marketer in understanding where exactly his product should be targeted by looking at where his customers are located. It is highly important for analyzing policy questions related to the aggregate performance of marketing in the society. And this, again, is influenced by Psychographics, that gives the marketer a better insight into the customer segment by providing him a long list of statements designed to capture relevant aspects of a consumer, like personality, hinting motives, interests, attitudes, beliefs and values. However, it is interesting to note that people coming from the

same demographic profile might have a significant difference in their psychographic scenario, giving the marketers more hiccups in producing a common brand, or product for both. Analysis of the lifestyle of a consumer or consumer group, per se, adds a huge amount of understanding to a typical demographic description. A person buying a new pair of Jeans may be 24 years old, graduate, studying in a Post Graduate programme, likes to chat over the internet, and loves to shop a lot. Thus, lifestyle analysis helps marketers to paint a more human portrait to their target market. Feldman and Theilbar describe lifestyle by the following characteristics: 1) Lifestyle is a group phenomenon A person's lifestyle bears the influence of his/her participation in social groups and of his/her relationships with others. Two clerks in the same office may exhibit different lifestyles. 2) Lifestyle pervades various aspects of life An individual's lifestyle may result in certain consistency of behaviour. Knowing a person's conduct in one aspect of life may enable us to predict how he/she may behave in other areas. 3) Lifestyle implies a central life interest For every individual there are many central life interests like family, work, leisure, sexual exploits, religion, politics etc. that may fashion his interaction with the environment. 4) Lifestyles vary according to sociologically relevant variables

The rate of social change in a society has a great deal to do with variations in lifestyles. So do age, sex, religion, ethnicity and social class. The increase in the number of double income families and that of working women have resulted in completely different lifestyles in the 1980's in India. The importance of lifestyle to our culture is one thing that is usually ignored by many a failed marketer. While studying Consumer behaviour patterns, it is imperative to understand the cultural aspects of the consumer and the importance it carries in any purchase decision. Cultural and societal variables establish the outer boundaries of lifestyle specific to our culture. The interaction of group and individual expectations and values creates a systematic pattern of behaviour. This is the lifestyle pattern that determines purchase decisions. When goods and services available in the market are in tune with lifestyle patterns and values, consumer market reactions are favourable. And purchases that reinforce these patterns further illuminate these lifestyles. Lazer's lifestyle hierarchy brings out these interactions.

Hierarchy of Influences on Lifestyles Understanding lifestyle thus becomes highly important both for the marketer as well as for the seller who sits in the market, catering and interacting directly with the customer. The customers buying patterns, which has emerged into a separate field of study today, has to be understood with a lot more importance and clarity so as to do justice to ones own brand and reputation in the market. With so many options and new lucrative offers coming out each day, the consumers purchase decision has been highly affected, and the process goes through a number of stages before reaching the actual purchase part.

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Consumer Decision Making Process Our study entails the analysis of this entire purchase process of a jeans buyer, and how the decision is taken, till the time it is implemented, and then the product is disposed of. Understanding the core attributes of the purchase process is what we have looked at while doing the research, and understanding the complexity of the market which comprises of a large number of unorganized brands, the study is extremely important for producers to understand the demand in the market, the perception of the consumer, and the reasons the consumers have while making a purchase. While at the consumers end, our research throws light upon the various brands available in the market, the association of various consumer segments, what most people wear and why, along with a host of factors that affect the consumer decision process.

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OBJECTIVE OF THE STUDY


1. To study the brand association, recall. Loyalty and preferences for various brands of jeans on Delhi and NCR. 2. To study the buying behavior with respect to different brands considering the key attributes in a brand that include purchase, place of purchase, purchase price, consumption process, frequency of purchase and the medias influence. 3. To study the consumer decision making process starting with need recognition, information search, pre- purchase evaluation of alternatives, purchase, consumption and the post consumption behavior of A1,A2.B1 and B2 categories of consumers.

SCOPE OF THE STUDY


This study may help the producers of denim/ jeans to understand the consumer from brand selection decision making process to the point of disposal of the product, hence the scope of study is to analyse the following: 1) The decision making process of the consumer while purchasing jeans, till implementation stage 2) How much the perception and brand recalling does effect the final purchasing 3) What makes customer decide which jeans to purchase amongst the huge brand range and large number of unorganized brands 4) The number of brands available in the market and how much does all these make decision making process more complicated 12

5) Associating the various customer segments

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Theoretical perspective
Consumer behavior is the action and decision process of people who purchase goods and services for personal consumption. DECISION MAKING PROCESS Seven Stages to the Consumer Buying Decision Process are:
1. Need Recognition It is the difference between the desired state and the actual condition.

Deficit in assortment of products. For example, Hunger--Food. Hunger stimulates your need to eat.
2. Information search
o o

Internal search, memory. External search if more information is required. The ways can be Friends and relatives (word of mouth). Marketer dominated sources (any source that supplier does for the purpose of information and persuasion); comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set. Here the evoked set is the unbranded jeans market and the various brands available like levis, lee cooper, wrangler, pepe, tommy hilfigher etc
3. Information processing

As a consumer is exposed to information resulting from external search, he begins to process the stimuli. The steps involved in this process are:

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Exposure: reaching of information to the customer Attention: The revelent message is sent across to attract the customer attention or not Comprehension: accurate comprehension has been done by the customer Acceptance: message sent across must be accepted by the consumer Retention: the information must be stored in such a way that it is assecisble in the future

4. Pre-Purchase evaluation Choosing the buying alternative, consumer thinks of silanet

attributes which includes product, package, store, method of purchase etc.


5. Purchase In this phase consumer having being decided about purchase, goes through the 2

phases again: a) choosing of the retailer and b) various instore choices influenced by sales person, product displays, electronic media and point of purchase advertising.
6. Post-Purchase Evaluation - outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance,

have you made the right decision. This can be reduced by warranties, after sales communication etc. After purchasing a levis jeans consumer may think that he wanted a pepe jeans instead.
7. Divestment - consumers have several options including outright disposal, recycling or

remarketing for example a car that one has purchased can be divested by selling it to another consumer, trade it for another vehicle or take it to the junkyard. TYPES OF DECISION PROCESS

Routine Response/Programmed Behavior

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It involves buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making Buying products occasionally. When consumer need to obtain information about unfamiliar brand in a familiar product category, he requires a moderate amount of time for information gathering. Examples include Clothes consumer here know about product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products.consumer spend a lot of time in decision making. High degree of economic/performance/psychological risk is involved. Examples are cars, homes, computers.. Information from the companies MM; friends and relatives, store personnel etc. Go through all stages of the buying process.

Impulse buying, no conscious planning.

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RESEARCH DESIGN
Data Requirements The data that will be required for the study will comprise of Brands available and data on what brands consumers purchase Influence of Non-brands and Duplicate brands in the market Demographic and Psychographic categorization of the buyers Influence of Media types in the purchase process Attributes regarded in purchase process Difference in male and female jeans purchase patterns Brand association, recall and loyalty

1.1 Data Sources and Collection method


1.1.1 Primary Sources Visiting various shopping malls and retail outlets, and interviewing consumers about their purchase process. Visiting various local shopping zones such as Patna Market, Hatua Market and Raza Bazar to assess consumer buying patterns. 1.1.2 Interviewing students at IMT Ghaziabad to assess their jeans purchase patterns . Secondary Sources 17

Websites of various Lifestyle brands concerning the Jeans market Online articles and journals regarding the product category

1.2 Data Analysis Method


The target is to study around 168 consumers of Jeans in the Bihar, and assess the consumer behavior patterns in these areas. The purchase decision process and the key attributes that a consumer searches for in a brand are to be analyzed, based on the demographic and psychographic categorization of the consumer base. The perception and association with a particular brand will also be analyzed to get a clearer understanding of the purchase decision process of a Jeans. All this will entail a thorough market research to be conducted in various shopping zones within the city, undertaking personal and focused group interviews of consumers, and then quantifying the results in an Excel sheet, followed by a graphical analysis and providing appropriate conclusions and recommendations (to the various Jeans manufacturers) based on these.

1.3 Sampling Framework


1.3.1 Sample Unit

The Sample unit will comprise of Consumers from various segments of the society based on age, sex, marital status, annual salary and educational qualification. Also, students dependent on their family income have been made a part of the study. 1.3.2 Sample Size

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Around 300 consumers from different segments of the society will be considered for the study, and will include unmarried and married professionals, college students, et al. from the A1, A2, B1 and B2 segments of the Socio Economic sections of the society. At this point of time, around 60 responses have been collected. 1.3.3 Sampling Method

The study will entail exploratory research, and non-probabilistic approach will be used for the analysis, and most of the analysis will be done through the basic tools of averaging and similar formulas available in MS Excel. 1.3.4 Sampling Media

Personal visits will be made to the mentioned shopping zones and a Questionnaire will be used to interview the consumers in these areas. Unstructured interviews will also be a part of the process and will entail a recommendable part of the study. Online interviews will be conducted for the students in PTU JALANDHAR to assess their purchase behavior.

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Denim Jeans Market in India


There is a definite growth in the urbanization and the spending patterns, people are willing to spend more on themselves. Urban India already has a large high income population of more than 15.5 million households. In the last decade India's urban population increased from 25.5 % (213.3 million in 1990) to 27.9 % (283.9 million in 2001) of the population, adding an Urban population of 70 million (Levis research design to Research Design). Apart from this in terms of the population mix too, India has a very healthy percentage of young people. India has a young age profile with close to 30 % of the population currently below 15, and this population mix is projected to remain the same till the year 2013 (Population Projections for India and States 1996-2016, Registrar General, Ministry of Home Affairs, Govt. of India). Both these factors contribute to the fact that there is effectively a huge market potential to tap into. India had to wait until mid-1980s to produce denim through facilities set up by Arvind Mills and Soma Textiles. Until then, it was dependent on imports. Denim has made deep penetration into the teen-age market, especially in the urban areas. It was considered to be a symbol of high fashion, necessarily not of affluence. Although most frequently used by teenagers, children and adults have also taken to the fancy. The industry attracted several producers with Arvind emerging as the foremost. Encouraged by increasing demand for denim in the export and domestic markets, KG Denim and Ashima Syntex and others entered the field. Low-end denim is used for jeans costing below Rs 500 per pair (under brand names Newport, Lion, Claws, besides many unbranded jeans). The middle segment is mainly used for jeans priced around Rs 500-700 (under the brand names Killer, Sunnex, Jagman, Camaro, Jordache, Flying Machine, Moustache). The upper segment is used in high priced jeans valued at more than Rs 750 or more going upto Rs 2500 and beyond. According to a study conducted in the 21

late 1990s, Arvind Mills Newport range of cotton trousers in 10 cities (5 A class and 5 B class) covering 176 outlets was found to be most stocked (in the range of Rs 600 to Rs 1000). Cotton trousers in the price band Rs 800-1000 was greatly in demand in Delhi. Kolkata preferred these in the region of Rs 600 to Rs 1000 with negligible sales in trousers priced above Rs 1000. Retailers have ranked cotton trouser brands on attributes like fabric, fabric wash, colour and style. Newport emerges the top brand in terms of fabric quality, with 6% of retailers placing it as the top brand and 14% placing it in the top-two categories. The popular brands were found to be Newport, Allen Solly and Easies, Blackberry, TNG, Freelook Moustache and Lee Cooper, almost in that order. Market Structure

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Market segmentation Value Segment Expected Benefits Price Range Brands operating in the segment Value for money Below 700 Newport, live-in, Ruff n Tuff

Standard Segment

Expected Benefits Price Range Brands operating in the segment

Quality, Comfort, style, fit, price Rs. 700- 1200 SF, Pepe, Signature, UCB

Premium Segment 23

Expected Benefits Price Range Other brands operating in the segment

Quality, Style, Brand name RS.1200- 1600 Lee, Levis, Pepe,Spykar, Wrangler

Super Premium Segment Expected Benefits Price Range Brands operating in the segment Style, Brand Name 1600 above Lee, Levis, Pepe, Bossini, Guess, Diesel

Behavior factors Everyday life revolves around college Jeans being suitable for all occasions- parties, movies, hanging outs, etc Users typically spend money on movies, music, eating out and clothes. Active lifestyles- spend a lot of time with friends. Peer viewpoint is crucial yet believe in thinking individually Market Trends Jeans are increasingly becoming almost an indispensable part of life for all youngsters. The durability and comfort of denim, the ease of maintaining it and the look and style associated with wearing denim are just some of the factors which have made wearing jeans suitable on a lot of occasions especially during college life. People wear jeans to college, for movies, for dates, while hanging out with friends. 24

Jeans is worn by not just the college goers but also kids, young adults, adults as well as senior citizens. Thus, as India is becoming more westernized, the number of jeans wearers is also increasing.

Market Growth With the rise in the disposable incomes of the Indian consumers, people are now more willing to spend on fashion, accessories and other lifestyle products.(refer to figure)

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1 8.1 1 5.5 16.1 1 3.6 25% 1 2.2 22% 6.9 6.4 1 3% 12% 1 .9 26% 23% 24% 1 0.1 1 9% 34% 1 4.9

40% 35% 25% 20% 15% 10%


3%

Million Households

10 5 0 >$2000

5% 0%

$1300 - 2000 $1000 - 1300 $500 - 1000

<$500

Annua l House hold Incom e


HH's '98 -'99 HH's '06 - '07 Contr '98 -'99 Contr '06 - '07

NCAER, 06-07 HH Number estimated from Urban Population

The jeans wear market in India is witnessing a growth rate of 16- 18% and is estimated to be currently at Rs. 5000 crores (The Economic Times, May 24).

More and more people, not just from the major metros, but in cities like Meerut, Baroda etc are becoming fashion conscious and are willing to spend extra money on clothes and accessories. Hence there is a huge untapped market potential in tier 2 cities.

% Contribution

15

30%

25

India by itself has a young age profile, with a large proportion of its population currently under 25. This again reiterates a huge potential market given the fact that Signature is predominantly for the youngsters.

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Data Presentation & Findings from the Study


The data collected with the help of the questionnaire has been divided in accordance with the Decision Making Process model. Below we have presented all the factors based on the model and subsequently discussed each of them based on the data we have collected. At the same time we have also tried to incorporate the findings based on the data collected. Need Recognition The starting point of any purchase decision is a customer need or problem. Need Recognition occur when an individual senses a difference between what he or she believes to be the ideal versus the actual state of affairs. Consumers often are willing to sacrifice some of their desires to buy products that meet their needs and their budget, though they still might aspire to fulfill their desires at a time in the future when they are able to afford it. In our questionnaire, we decided that the need recognition part of the consumers decision making process with the help of Annual Family Income, Expenditure on Jeans, Frequency of Purchase, expenditure on Jeans and Reason of Purchase.

Annual Family Income

7% 19% 48%

26%

Below Rs. 1 lakh Rs. 2.5 lakhs to Rs. 4 lakhs

Rs. 1 lakh to Rs. 2.5 lakhs Above Rs. 4 lakhs

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The above graph shows, that the maximum number of respondents (48%) belong to the upper family income category. A considerable number also belong to the middle class i.e. the middle income category (26%) while only a few respondents belong to the lower income categories. Therefore, the choices regarding jeans and the preferences w.r.t. the buying behavior are primarily a result from the higher and middle level income groups while the lower income groups exert a lesser influence on the findings.
Once in two years

Frequency of Purchase

Once a Year 0% 6% 21% Twice a Year

37%

Quarterly 0% 3%

33%

Every Month

Fortnightly

The above graph shows a mixed response regardingWhen the old oneof purchase of Jeans as most of the frequency the respondents go for them as and when their old pair of jeans becomes too old (shown in the blue part of the graph). Also a considerable number of the respondents buy their new pair of jeans quarterly or twice a year. This indicates the market potential and the scope of many new players lies beneath.
seems too old (No fixed time)

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Expenditure on Jeans

17%

1%

16%

22% 44%

Less than Rs. 300 Rs. 1001 to Rs. 1500

Rs. 301 to Rs. 700 Above Rs. 1500

Rs. 701 to Rs. 1000

The above graph is in line with the annual family income which, for most respondents is above Rs. 4 lakhs per annum. Therefore, the expenditure on jeans also is on the higher side with as high as 44% buying the jeans within the range of Rs. 1000 Rs. 1500. Also the middle income group consumers can be assumed to be buying in the range of Rs. 700 1000.

Reason of Purchase

13%

6%

2%

28%

21% 25% Its comfortable It is long lasting (durable) Its in Fashion Any other reason? Its Macho

5%

It is Rough and Tough Its a fixed Weekend wear for me

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The above graph shows a mixed response from the various respondents as various respondents have different attitudes towards jeans due to which they buy them. 25% buy them for their durable qualities while 28% buy them for the comfort they provide and respondents also attach a rough and tough feeling to jeans (21%). Therefore, various attitudes of the respondents have resulted in them assigning different uses and motivations for buying jeans.

Search for Information Once the need recognition occurs, the consumers begin searching for information and solutions to satisfy their unmet needs. The search refers to receptivity of information that solves problems or needs, rather than a search for specific products. Also, the length and depth of search is determined by variables such as personality, social class, income, size of purchase, past experiences, prior brand behavior, making rently use, they repurchase the brand with little, if any, search behavior, making it more difficult for competitive products to catch their attention.

Sources of information about the brands

4% 28%

4%

2%

21%

22% 18% 1%

Newspaper Friends

Television Kiosks

Radio Roadside shops

Magazines Movies

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The graph above shows the various sources of information about the brands for the respondents and again shows a varied response from them. Friends, TV, movies and magazines account for the maximum information which is provided to the respondents. This also depends on the sample of the total population that is chosen as the study area. Since in our survey, the respondents are mainly in the 18-25 age group and are well educated, so magazines also have had a considerable account of information that is provided to them. Pre-purchase Evaluation of Alternatives The next stage of the consumer decision process is evaluating alternative options identified during the search process. In this stage, consumers seek answers to questions such as What are my options? and which is best? when they evaluate and select from various products or services. Consumers compare what they know about different products and brands with what they consider most important, to narrowing the field of alternatives before they finally resolve to buy one of them. For our analysis of pre-purchase evaluation of alternatives, we asked two questions in our questionnaire which are: Jeans I prefer to wear and Do you consider the following factors while choosing a brand. The second question consists of 8 parts which are relevant factors for choosing a brand. Based on the answers we got, the following charts have been formed to better understand the replies we got and according come to the finding from these questions. Jeans I Prefer to Wear The options were given which were: Unbranded, Branded and No Preference as such. Following is the pie chart which sum up the data collected.

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Jeans I P refer to W ear

2%

unbranded 54% 44% no preference branded

Finding: From the chart it is clear that although majority of the respondents (54%) preferred branded jeans but there is a large number of respondents (44%) who dont have any preference as such and therefore shift frequently between branded and unbranded jeans. Only 2% respondent preferred unbranded jeans. It clearly indicate that brand plays an important role in purchase decision of the consumers but there is a number of consumers who are ready to shift from branded to unbranded jeans and vice versa. Do you consider the following factors while choosing the brand? The factors like Quality, Brand Name, Price, Variety, Durability of Material, Durability of Colour, Design and Convenience to Buy are important while pre-purchase evaluation of Alternatives. Hence, we took all these factors into consideration and formed a question such that we can understand the consumer behaviour pattern with regard to these factors. Following is a comparable chart which shows the importance of different factors as per consumer behaviour. The options were multiple

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choice so that whichever factor is important in decision making process, can be taken into consideration.

Do U Consider the Follow ing Factors w hile choosing the brand


Convenience to buy Design Durability of colour Factors Durability of Material Variety Price Brand name Quality 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Percentage Definitely No Probably Not Not Sure Probably yes Definitely yes

Although all factors are important in pre-purchase evaluation of alternatives, but we can observe that the most important factor as per our finding is the quality of the product. It has got the maximum responses and leads the chart by a big margin. Next comes design with 61% responses. Other important factors are durability of material and variety of the product. The least important ones are something like brand name and durability of colour. These finding force us to conclude that brand is not a very important factor in the decision making process and if the unbranded jeans can provide the consumers with quality, design etc., they can compete easily with the branded jeans. The life examples are markets like Boring Road , Raja Bazar, etc. 33

Purchase Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. All the decisions regard to from where to purchase and what all constitutes as a part of purchase is included in this step. For example here in this case a person may have decided which brand to buy, but this may not be enough of thinking process put into while purchasing, as now a days there are number of options from where the same brand of jeans can be purchased from like from exclusive showrooms, factory outlets, malls, local markets, or even retail outlets. All of these purchasing options offer different facilities and services of their own. We have tried to analyse this by three questions, I prefer to buy my Jeans from; buy Jeans from here because and The purchase of a jeans is incomplete without the last question helps in understanding the what are the core facilities or inbuilt factor is linked to the buying behavior of the consumer. First of all the first question asked to understand this step is from where does the consumer prefer to buy jeans from, the results we got is shown in the following chart.

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Of the five options people have got about from where to purchase maximum percent of people purchase it from the exclusive showrooms of the various brands, clearly this represents the people who purchase branded jeans, of the total number of responses 30% said they would like to purchase from exclusive showrooms, 23% from malls and 20% approx from each retail outlet and factory outlets. Only a small percent of around 6% said they like to purchase from local markets. The response collected also tells a lot about the decreasing popularity of local markets and inclination of people towards purchasing more from organised markets instead of local markets. Now let us analyse the reasons for why there is more popularity of such exclusive showrooms and factory and retail outlets instead of local markets

The most popular reasons for choosing a place of purchase are the variety of jeans the place stores, kind of discount one can get and satisfactory past experiences, which is 30%,17% and 23%

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respectively. And 16% of the people said they purchase from the place they mentioned is because of habit they have made as they are being used to it. One more important aspect we looked at while doing the survey was what the consumers consider as a inherent part of purchase process, it helps in analyzing the consumer attitude and it helps in telling the new producers which quality or area of concern should they have while manufacturing, marketing or distributing and advertising of the jeans. As assumed we had thought that bargaining would gain highest number of responses, but the results had come out in a completely different way as in the pie-chart as below:

The highest number of people i.e. 80%, try it out in the trial room before purchasing the jeans, while only 3% think the bargaining is required. This shows the growing inclination towards organized retail sector again. As very few number of people now think bargaining as a inherent part of purchase, which is assumed to be a unavoidable part of buying process. Although considerable 36

number of people (12%) try to get to know more about brand logo and find out weather the jeans they are purchasing is genuine or not.

Post Purchase Behaviour of the Consumer Consumption Once the purchase process is over and the customer takes the possession of his product, the consumption can occur. This consumption of the product can either occur immediately or be delayed. How a consumer will use a product depends on his satisfaction of the purchase made. And this would further determine the re-purchase of the same product in future. Now a Jeans consumer might like to use his/ her jeans in a number of ways, for instance, Putting a tattoo on the jeans before wearing it, or maybe tearing it to match the latest fashion. Jeans has today become one product that most wish to have it their own way, and consequently, people tend to modify their pair of jeans to match their outlook. This behaviour of the consumer actually is a reflection of his Attitude, his Personality, Values and Lifestyle. Thus, one aspect that talks about some of the most critical factors that decide the fate of any brand of Jeans in the market is that of Consumption. From our research, we tried to analyse how the 18-26 year olds like to wear their pair of Jeans, and the following response was observed.

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While we thought that considering the age group that comprises the Young and the Vibrant of the society, more people would be interested in modifying their jeans before they wear it, however the results showed something really different. Almost everyone who was surveyed made their opinion that when they go to a shop, they have a pre-mind set of purchasing a certain style, and hence their buying behaviour is actually aligned to the same. Also, they mentioned that today, they can get their choice of design from customized markets like those of MahaRaja Complex, Baily Road, etc. Hence they dont feel the need of modifying their Jeans as such and would like to wear their pair in its original form. Also, since most of the people surveyed (42%) spent around Rs. 1001-1500 for a pair of Jeans, hence these people who comprise the Premium segment, would not like to make any modifications to their jeans as such, and would like to go with the original look. However, since the study comprised of people mostly from a Post Graduate course, hence a factor of seriousness creeps in while buying or selecting a pair of Jeans. As such, there might be variations when the same study be applied to students of an Art college or a Fashion Institute. Post-Consumption Evaluation

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Satisfaction or Dissatisfaction with the product purchased comprises this phase of Consumer behaviour. This has a close link with the Consumption part of the entire process, and a lot is derived from there. Satisfaction with a product is a function of the closeness between expectations and the products perceived performance. If performance falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is delighted. These feelings make a difference in whether the consumer buys the product again and talks favourably or unfavourably about it to others. Consumers form their expectations based on the messages received from sellers, friends, and other information sources. The larger the gap between expectations and performance, the greater is the dissatisfaction. Even the coping style of the consumer comes into play in this stage. The most important part determinant of satisfaction is consumption: how consumers use the products. The product might be good, but if consumers dont use it properly, dissatisfaction may occur. Also, this evaluation part of the post purchase activity is important for the consumer to informally communicate the brands name to his close sphere of influence. A company might see more customers on account of one satisfied consumer who might have informally advertised about the pair of Jeans that he bought to his set of friends. Though Word-of-mouth. However, the same can occur in the opposite sense if the consumer is dissatisfied with the product. One more important aspect that needs to be covered here is that of Cognitive dissonance that might occur due to the rethinking of the consumer about the product after the purchase, regarding the correctness of the decision taken by him in purchasing that particular product (or brand). However, it has also been noticed that the higher the price, the higher is the Post purchase regret or Cognitive dissonance. When we did our study, we tried to get an overview of some of these aspects as well.

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Jeans, as can be seen, is an object that has taken such a position insociety where it has become an object of status and show-off. A branded pair of jeans and sandals is what most young college-goers look forward to while making a purchase (from our survey). Buyers are motivated enough to discuss their latest bought Jeans with their friends, and would like to wear it on and show it to their group. However, what is interesting to note here is that most of the consumers would not like to recommend the same shop to their friends if the last product they purchased from there does not match up to its standards. Thus it can be seen that the Buyer is becoming more and more specific each day, and would like to have only the exact quality, the exact look he demands from the seller. Because of high competition in the market, it has thus become exteremely important for marketers to deliver the best service to their clients, so as to improve their post purchase evaluation of their product. After all, this is the stage that decides the future repeat sales of the product!

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With more and more brands making their foray into the market place, the playground has become crowded with marketers who would like to come up with a new design, a new variety every other day. This gives the consumer a wider variety to choose his pair of Jeans from, and thus creates a problem for the repeat purchases at the same time (for the same brand). Now here, around 70% of the respondents said that they would like to try out other brands and new designs available in the market. With nearly all the premium segment Jeans sellers falling under the same price range (for their Jeans), Jeans today is reaching the level where people are bothered more about having different brands in their closet instead of one single brand. However, Customer loyalty might not be that bad in a situation as it seems, as around 19% of the respondents did say that they would go for a new brand only if the quality served by their earlier brand is inconsistent. Hence, though quality does seem to matter a lot in the repeat purchase process, it is the Variety-seeking behaviour of the customers that takes a front seat in todays Denim scene.

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Divestment It becomes extremely important for any marketer to understand how his customers are disposing of his product. A key driver of sales frequency for any organization is the product consumption rate. It is true that in a product like Jeans, when someone wishes to purchase a Good quality branded pair, he might actually be looking towards a durable product. However, in todays fast changing fashion scenario, a person might change his entire wardrobe within a year as well! So, the divestment of such a product as Jeans also becomes important in the aspect that the marketer should always look out for opportunities to increase the frequency of purchase of his product, and fill up the emptying wardrobe as soon as possible. Also, the marketer needs to know how exactly a consumer disposes off his product. The reason for this being concerns like whether the product is recyclable or not, ecological concerns, etc. While talking about a pair of Jeans, the patterns of disposing of a product might seem pretty interesting.

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It was never expected that a massive 41% of the total respondents would like to donate their old Jeans in charity. Also, 37% said that they would throw their jeans away. This is a clear indication of the fact that there is definitely some good news for marketers. In the first case, it can be assumed that since people wish to donate their jeans in charity, then definitely that will be done before the jeans gets too old, and is still in the wear-able condition. In the second case, people would like to throw away their old pair and would like to get a new pair of jeans as soon as possible. This way, the chances of repeat purchase increases for the customers, as well as there is good news for the marketers in having a faster demand for their products in the market. It can also be seen that around 13% people wished to make some changes in their pair of jeans and wear it again. This also shows the conservative aspect of the usage behaviour of the Indian consumer to some extent, wherein one would try to locate some good modification that could be done, making the old pair wear-able again. Hence marketers should look forwards to changing the behaviour of these consumers, converting them to fast switchers to get better response in the market. Thus, it can be seen how important is the Post purchase behaviour of a consumer in his decision making process, and a comprehensive study of the same helps the marketer to make his plans in a much more efficient manner.

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Recommendations
As per the studies conducted and the responses analysed we would suggest the following recommendations for the producers and sellers of the denim. 1) In general the frequency of buying denim jeans is low and hence the durability

of jeans becomes an important factor in decision making process. Manufacturers need to produce durable jeans, so that it is long lasting.
2)

At the same time manufacturers should keep in mind that there is a large base

for frequent buyers. For them the durability is of not much importance and style and design becomes important for such consumers. To cater this base, they need to position their products in premium segment. Manufacturers need to decide which positioning is more suitable for them.
3)

The rough and tough characteristic of denim jeans also plays an important role

in decision making process for consumers. While the comfort is also important and cant be compromised. 4) Print and visual advertisements play an important role in the search of

information. The branded jeans should mainly use these two mediums to advertise. At the same time references also plays an important role in deciding which brand to buy. If the product is good it will obviously get references from there present users. If a new brand need to be launched then advertising though the print and visual medium is advisable.

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5)

The advertisement expenses should not be cut down as we have seen the trend

of purchase of those particular brands whose recall is maximum and which in turn is result of adequate advertising. 6) Quality, design and Durability are the most important factors in the decision

process and hence, manufacturers should keep these factors in mind while producing the denim jeans.
7)

Consumers prefer to try more than one brand of jeans and generally they dont

stick to a single brand. But they can return back if there experience with new jeans is not good. This observation is a good sign for the companies who are planning to enter in this market as the chances are high that the consumers will try out their brand if the company is able to attract their attention.
8)

Unbranded jeans will exist in the market as a large percentage (44%) of

respondents are not sure whether they want a branded jeans or unbranded. Unbranded jeans provide consumers with much more designs at low cost and there will always be a part of consumers who will prefer unbranded jeans over branded even in standard and premium segments. 9) For any shop or place of sale a trying room is a must as almost all consumers

take trying the jeans as a essential part of the purchase, while the seller also should try not to differ in prices to various consumers, a standard price should be kept for the same kind of jeans, so as to generate consumer faith in pricing.

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References/ bibliography
1) Consumer Behavior by Blackwell, Miniard and Engel; Thomson South-Western (2007)
2) Marketing Management by Kotler & Keller: Pearson Education 12th Edition (2006) 3) www.ibef.org 4) www.etintelligence.com 5) www.consumerpsycologist.com 6) www.marketingpower.com

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Appendix
Project Questionnaire (Sample) Questionnaire to assess the purchase behavior of Jeans buyers in the Bihar 1. Name ____________________________________________ 2. Age ______________ 3. Annual Family Income a. Below Rs. 1 lakh b. Rs. 1 lakh to Rs. 2.5 lakhs c. Rs. 2.5 lakhs to Rs. 4 lakhs d. Above Rs. 4 lakhs 4. Occupation 5. Qualification a. Up to 10th (Matriculate) b. Up to 12th (Senior Secondary) c. Graduate 6. Brands of Jeans that I know a. ___________________________________ d. Post Graduate e. Ph.D f. Any Other (Please specify) ________________________________________

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b. c. d. e.

___________________________________ ___________________________________ ___________________________________ ___________________________________

7. The Jeans I prefer to wear a. Unbranded b. No preference as such c. Brand __________ 8. Where did you get information about the brand? a. Newspaper b. Television c. Radio d. Magazines 9. I purchase Jeans a. Once in two years b. Once a Year c. Twice a Year d. Quarterly e. Friends f. Kiosks g. Roadside shops h. Movies

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e. Every Month f. Fortnightly 10. This is what I spend on a pair of Jeans a. Less than Rs. 300 b. Rs. 301 to Rs. 700 c. Rs. 701 to Rs. 1000 d. Rs. 1001 to Rs. 1500 e. Above Rs. 1500

g. When the old one seems too old (No fixed time)

11. I prefer to buy my Jeans from a. Exclusive Showrooms b. Factory Outlets c. Malls d. Local markets (Patna Market, Hatua Market, etc.) e. Retail Outlets (like Megamart) 12. I buy Jeans from here because

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a. My friends also buy it from here b. The shop gets me the best discounts c. Its close to my place d. My past experience was good here e. It houses a wide variety of Jeans f. Im just used to it g. Any other reasons (please specify ) _________________ 13. I buy Jeans because a. Its comfortable b. Its Macho c. It is long lasting (durable) d. It is Rough and Tough e. Its in Fashion f. g. Its a fixed Weekend wear for me Any other reason?

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14. When my Jeans gets too old, I a. Give it to a Sibling b. Make some changes and wear it again c. Donate it (Charity!) d. Return it to shops (Exchange offers) e. Throw it away f. Any other? 15. While purchasing Jeans a. I would collect a lot of information before buying one b. I make unplanned visits to stores c. Many times I buy Jeans even when I would never have thought of 16. The purchase of a jeans is incomplete without a. Bargaining b. Brand awareness and Logos c. Trying it out in a Trial Room d. Seeing each and every variety available in the Shop e. Friends

17. Post purchase a. I like to share my experience with my friends b. I would like to show off my newly bought possession c. Never recommend a shop if the last pair doesnt match up to its standards 18. After buying a. I will put a tattoo on the jeans b. I will tear it to match the latest movie style c. I will design it and then wear it d. Wear it as it has been purchased 19. While repurchasing a. Ill buy the same brand b. Ill buy a new one c. I wont, at any cost, buy the previous brand 20. Do u consider the following factors while choosing the brand 1) quality 2) brand name 3) price 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5

4) variety 5) durability of material 6) durability of colour 7) design 8) convenience to buy

1 1 1 1 1

2 2 2 2 2

3 3 3 3 3

4 4 4 4 4

5 5 5 5 5

Mark 1 for definitely yes 2 for probably yes 3 for not sure 4 for probably not 5 for definitely not Thank You