Mall Research
Niranjan Pradhan (TYBMS SEM VI, Bhavan’s Chowpatty)
Meaning
Research means detailed study of a problem. Here, the details of the marketing problem are collected and studied, conclusions are drawn and suggestions are made to solve the problem quickly, correctly and systematically. In MR, specific marketing problem is studied in depth by collecting and analyzing all relevant informa information tion and solution solution are sugges suggested ted to solve solve the problem problem which may be related to consumers, product, market competition, sales promotion and so on.
MR is special branch of marketing management. It is comparatively of recent in origin. MR acts as an investigative arm of a marketing manager. It suggests solution on marketing problem for the consideration and selection by a marketing manager. MR also acts as an important tool to study buyer behaviour, changes in consumer consumer life-style and consumption patterns, patterns, brand loyalty and forecast market changes.
In brief, MR facilitates accurate marketing decisions for consumer satisfaction on the one hand and sales promotion on the other hand. It is rightly treated as the soul soul of mode modern rn marke marketin ting g mana manage geme ment. nt. MR sugge suggests sts poss possibl ible e solut solutio ion n on mark market etin ing g prob proble lem m to mark market etin ing g mana manage gerr for for his his cons consid ider erat atio ion n and and fina finall selection. It is rightly said that the beginning and end of marketing management is marketing research. It is primarily used to provide information needed to guide marke marketin ting g decis decision ion,, mark market et mix. mix. It acts acts as a supp support ort syste system m to marke marketin ting g management.
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Features of Marketing Research
continuous process. One 1) Systematic and continuous process :- MR is a continuous type type of resear research ch is not not adeq adequa uate te to resolv resolve e all all mark marketi eting ng probl problem em.. Similarly, new research projects will have to be undertaken to solve new marketi marketing ng problem problem and challen challenges ges.. A marketi marketing ng company company faces faces new mark marketi eting ng proble problem m from from time time to time time and and for for facin facing g them them mark marketi eting ng research activities need to be conducted on regular basis. A marketing company has to conduct MR regularly for its survival and growth in the present dynamic marketing environment. application :- MR is wide in scope as it deals with all 2) Wide in scope application:aspects of marketing of goods and services. Introduction Introduction of new products, products, iden identi tifi fica cati tion on of pote potent ntia iall mark market ets, s, sele select ctio ion n of appr approp opri riat ate e sell sellin ing g tech techni niqu ques es,,
stud study y of mark market et comp compet etit itio ion, n, intr introd oduc ucti tion on of suit suitab able le
adve adverti rtisin sing g strate strategy gy and sales sales prom promoti otion on measu measures res are some some areas areas covered by MR. 3) Emphasises on accurate data collection and critical analysis :- In MR,
required data should be collected objectively and accurately. The data collected must be reliable. It should be analysed in a systematic manner. This will provide provide compreh comprehensi ensive ve picture picture of the situatio situation n and possibl possible e solution. consumer :- MR is useful 4) Offers benefits to sponsoring company and consumer :to the the spon sponso sori ring ng comp compan any y. It rais raises es the the turn turnov over er and and prof profit it of the the company. It also raises the competitive capacity and creates goodwill in the the mark market. et. It enabl enables es a comp company any to introd introduc uce e cons consum umerer- orien oriente ted d mark marketi eting ng polic policies ies.. Cons Consum umer er also also gets gets agre agreeab eable le goods goods and and more more satisfaction due to MR activities.
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5) Commercial equivalent of military intelligence :- MR is the commercial
intelligence activity. It is similar to military intelligence where systematic study is made before taking any military action MR acts as the intelligence tool of marketing management. managerial decisions decisions::- MR acts as a tool in the hands of 6) Tool for managerial management for identifying and analysing marketing problem and finding out solution to them. It is and aid to decision-making. It suggests possible solution for the consideration and selection by managers. MR is an aid to judgement and never a substitute for it. research :- MR is applied knowledge. It is also called 7) Applied type of research:‘decisional’ research as it provides specific alternative solution to deal with a specific marketing problem. It studies specific marketing problem and suggests alternative solution and possible. 8)
Reduces the gap between the producers and consumer :- MR is an essential supplement of modern competitive marketing. It is useful for understanding the needs and expectations of consumers. It reduces the gap gap betwe between en prod produce ucers rs and cons consum umer ers s and adju adjusts sts the the mark marketi eting ng activities to suit the needs of consumer.
Not an exact exact scien science ce::- MR is both both scie scienc nce e and and an art. art. It coll collec ects ts 9) Not information and studies marketing problem in a scientific manner. The information collected is also applied to real life problem. However, MR is not an exact science. It only suggests possible solution and not the exact solution to marketing manager for consideration and selection. At present, MR is treated as a professional activity. We have professional research agen agenci cies es deali ealing ng with with the the mark market etin ing g pro problem blem of thei theirr clie client nts s on commission basis. methods :- MR can be conducted by using different 10) Use of different methods:methods. Data can be collected through survey or by other methods like observa observation tion method method or experim experimenta entation tion method. method. Even computer computers s and internet are used for data collection. The researcher has to decide the method suitable for his research project.
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:-MR is dynamic in nature. Its scope is fast expanding 11) Dynamic character :-MR along with the new developments in the field of marketing. In addition, development in other subjects such as economics, statistics, computer science science,, sociolog sociology y, psycho psychology logy,, cultura culturall anthropo anthropology logy and behavio behavioural ural scien science ces s also also bring bring corres correspo pondi nding ng chang changes es in the field field of MR. this this suggests that MR is a dynamic and progressive subject.
Closely connec connected ted with marketi marketing ng informat information ion system system :- both oth the the 12) Closely concepts concepts are interrelated. In fact, MR is one components components of MIS. Both are useful for solving marketing problem and for accurate and quick decisionmaking in the field of marketing.
INCREASING NEED OF MARKETING RESEARCH
1) Growth and complexity of markets :- Markets are no more local in
chara characte cterr. They They are are now now natio national nal and and even even globa globall in char charact acter er.. The marketing marketing activity is becoming increasingly complex and broader in scope as more firms operate in domestic and global markets. Manufactures find it diff diffic icult ult to estab establis lish h clos close e conta contact ct with with all all marke markets ts and and consu consume mers rs directly. Similarly, they have no control on the marketing system once the goods are sold out to middlemen. This situation creates new problem before the manufacturers which can be faced effectively through MR as it acts acts as a feed-b feed-bac ack k mecha mechani nism sm to asce ascerta rtain in first first hand hand infor informa matio tion, n, reaction, etc. of consumers and middleman. Marketing activities can be adjusted accordingly. 2) Wide gap between producers and consumers :- marketing research is
needed as there is a wide gap between producers and consumers in the present marketing marketing system. Due to mass scale production production and distribution, distribution, direct contact between producers and consumers. Producers do not get
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dependable information as regards needs, expectation and reactions of consumers, they are unable to adjust their products, packaging, prices, etc. etc. as per per the the need needs s of cons consum umer ers. s. The The prob proble lem m crea create ted d due due to information gap can be solved only through MR as it possible to establish contact contact with consumers consumers and collect collect first first hand hand informa information tion about about their their needs, needs, expectat expectation ion,, likes, likes, dislikes dislikes,, prefere preferences nces and special special feature features s of their behaviour. Thus, MR is needed for removing the wide communication gap between producers and consumers. 3) Changes
in
the
compo mpositi ition
of
popul pulatio tion
and
patte ttern
of
consumption: consumption : - In India ndia,, many changes ges are are taki aking plac lace in the the composition of population. There is a shift of population from rural to urban areas. There have been considerable changes in the consumption and expenditure expenditure patterns of consumers consumers in India. The incomes of the people, in general, are rising. This brings corresponding corresponding increase in their purchasing capa capaci city ty and and buyi buying ng need needs s and and habi habits ts.. The The dema demand nd for for cons consum umer er durables is fast increasing. The market are now flooded with consumer durables like TV sets and so on. Manufacturers are expected to know such qualitative and quantitative changes in the consumer preferences and their consumption pattern. For achieving this objective, MR activities are necessary and useful. In brief, MR is needed for the study of changes changes in the the patter pattern n of cons consum umpti ption on and and corre corresp spond onding ing adjus adjustm tmen entt in the marketing planning, policies strategies. 4)
Growing importance of consumers in marketing :-Consumers :-Consumers occupy key position in modern marketing system. They are now well informed about about market market trends, trends, goods goods availabl available, e, consum consumer er rights rights and protecti protection on avai availa labl ble e to them them thro throug ugh h cons consum umer er prot protec ecti tion on acts acts,, the the grow growth th of consum consumeris erism m has created created new challen challenges ges before before manufac manufacture turers rs and trade traders. rs. Even Even growi growing ng custo customer mer expe expecta ctatio tions ns crea create te situat situation ion when when manu manufac factur turers ers have have to unde underst rstand and such such expec expectat tation ions s and and adjus adjustt the prod produc ucti tion on
poli polici cies es
acco accord rdin ingl gly y.
Indi Indiff ffer eren ence ce
towa toward rds s
cons consum umer er
expect expectati ations ons may lead lead to loss loss of busin busines ess. s. In the prese present nt mark marketi eting ng
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system system,, consume consumers rs cannot cannot be taken taken for granted. granted. Marketin Marketing g researc research h particularly particularly consumer research gives valuable data relating to consumers. consumers. It is possible to use such data fruitfully while framing marketing policies. Thus, marketing decisions can be made pro consumer through marketing research activities. 5)
Shift Shift of compe competit tition ion from from price price to non-p non-pric rice e facto factors rs :- Cut-thro Cut-throat at comp compet etit itio ion n is unav unavoi oida dabl ble e in the the pres presen entt marke arketi ting ng fiel field. d. Suc Such competition may be due to various factors such as price, quality, and packagi packaging, ng, advertis advertising ing and sales sales promoti promotion on techniq techniques. ues. Entry of new competitors creates new problems in the marketing of goods and services. In addition, market competition is no more restricted to price factor alone. There are other non-price factors such as packaging, branding, after-sales and advertising which create severe market competition. Every producer has to find out the extent of such non-price competition and the manner in which he can face it with confidence. MR is needed as it offers guidance in this regards. A manufacturer can face market competition even by using certain non-price factors. The shifting of competition from price to nonprice factors has made marketing of consumer goods more complicated and challenging. This challenge can be faced with confidence by using certain measures through marketing research.
competitive marketing, marketing 6) Need of prompt decision making :- In competitive executive have to take quick and correct decision. Companies have to deve develo lop p and and mark market et new new prod produc ucts ts more more quic quickl kly y than than ever ever befo before re.. However, such decision is always difficult. Moreover, wrong decisions may bring bring loss to the organisa organisation tion.. For correct correct decisio decision n making, making, marketing marketing executive need reliable reliable data and up to date market information. information. Here, MR comes to the rescue of marketing manager. Problems in marketing are locat located, ed, defin defined ed,, analy analyse sed d and and solve solved d throu through gh MR techn techniqu iques es.. This This suggests its need as a tool for decision making. MR is needed as a tool for reasonably accurate decision making in the present highly competitive market system.
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Market research v/s marketing research. Sr.no. 1.
Points Meaning
Market Research Marketing research Market re research di directly MR is a systematic relates to market situation
comprehe rehen nsive ive
study
and of
i.e, size, size, locatio location, n, market market different aspect of marketing competion and features of includi including ng current current marketin marketing g cust custom omer ers. s.
It
prov provid ides es problems and challenges for
detail details s about about the the mark market et decision –making and policy
2.
Nature
for decis decision ion-m -maki aking ng and and
framing.
policy framing. Market research
MR is one branch marketing
branch 3.
4.
5.
Scope
of
research. The scope
is
a
marketing information system. of
market
The
scope
of
marketing
research is limited to the
research is wide as it covers
study of market or market
all aspects of marketing.
Type
situation. of Market research is narrow
Marketing research is a wide
term
term as it relates to one
term as it covers all aspects
Objective
aspect of marketing. Market research
is
of marketing Marketing research
unde undert rtak aken en in orde orderr
to undertaken in order to study
deal with the problem and chall halle enges
relati latin ng
varie ried
type type
of
is
marke rketin ting
to problem such as product line,
different aspect of market
mark marketi eting ng mix, mix, adve adverti rtisin sing, g,
such such as comp competi etitio tion n and and
packagi packaging, ng, brandin branding g and so
consumer needs.
on.
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Advantages of Marketing research
1) Indicates Indicates current market market trends:trends:- marketing marketing research research keep keep business business unit in touch with the current market trends and offer guidance for facing market situation with confidence. 2) Pinpoints Pinpoints deficiencies deficiencies in marketing marketing policies:policies:- MR pinpoints pinpoints the deficiencies deficiencies as regards product, pricing, promotion, etc. it give guidance regarding different of marketing. They include product development, branding, and packaging. 3) Expla Explain ins s custo custome merr resis resistan tance ce:: - MR is usefu usefull for for findin finding g out out custo customer mer resi resist stan ance ce to comp compan any’ y’s s
prod produc ucts ts..
Reme Remedi dial al meas measur ures es are are
also also
suggested by the researcher to deal with the situation. This makes the product and marketing policies agreeable to consumers. 4) Sugg Sugges ests ts sales sales promo promotio tion n techn techniq iques ues::- MR enab enables les a manu manufac factur turer er to introduce introduce appropriate appropriate sales promotion techniques, techniques, select most convenient convenient chan channel nel of distri distribu butio tion, n, suita suitable ble prici pricing ng polic policy y for for the the produ products cts and provisio provision n of discount discounts s and concessi concessions ons to dealers. dealers. Marketin Marketing g researc research h facilitates sales promotion. 5) Offer Offers s guid guidanc ance e to marke marketin ting g execu executiv tives es::- MR offer offers s inform informat ation ion and and guida guidanc nce e to marke marketin ting g execu executiv tives es while while frami framing ng marke marketin ting g polic policies ies.. Cont Continu inuous ous resea research rch enab enables les a comp company any to face face adve adverse rse mark marketi eting ng situa situatio tion n bold boldly ly.. It acts acts as an insur insuran ance ce again against st possib possible le chang changes es in market environment. 6) Facil Facilita itate tes s selec selectio tion n and and traini training ng of sales sales force force:: mark marketi eting ng resea researc rch h is useful for the selection and training of staff in the sales organisation. It also suggests the incentives which should be offered for motivation of employees concerned with marketing. 7) Promote Promotes s busines business s activitie activities: s: - marketin marketing g researc research h enables enables a busines business s unit grow its activities. It creates goodwill in the market and also enables a
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business unit to earn high profits through consumer oriented marketing policies and programmes. 8)
Facil Facilita itates tes appra appraisa isall of mark marketi eting ng polic policies ies:: Rese Researc arch h activi activitie ties s enabl enable e business executives to have an appraisal of the present marketing policies in the the light light of findi findings ngs of resea research rch work. work. Suita Suitable ble adjust adjustme ments nts in the the poli polici cies es are are also lso poss possib ible le as per per the the sugg sugges esti tion ons s made made by the the researchers.
9) Sugg Sugges ests ts new marke marketin ting g oppor opportun tuniti ities es:: MR sugg suggest ests s new new mark marketi eting ng oppo opportu rtunit nities ies and and the mann manner er in which which they they can can be exploi exploited ted fully fully.. It identifies emerging market opportunities. 10) Facilitates inventory study: marketing research is useful for the evaluation of company’ company’s s inventor inventory y policies policies and also also for the introduc introduction tion of more efficient ways of managing inventories including finished goods and raw material. 11) Provide Provides s market marketing ing informa information tion:: MR provides provides informa information tion on various various aspects of marketing. It suggests relative strengths and weakness of the company. On the basis of such information, marketing executives find it easy to frame policies for the future period. MR provides information, guidance and alternative solutions to current marketing problems. 12) Suggests appropriate distribution channels: MR can be used to study the effectiveness of existing channels of distribution and the need of making suitable changes in the distribution system. 13) Provides Provides information on product acceptance: acceptance: marketing research helps in knowing the probability of acceptance of the product in its present form. It is also useful for the introduction of modifications in the existing product line of a firm. 14) Creates Creates progres progressive sive outlook outlook:: MR generat generates es progres progressive sive and dynami dynamic c outlook outlook through throughout out the busines business s organis organisatio ation. n. It promote promotes s system systematic atic thinking and a sense of professionalisation within the company. It also creates enthusiasm among marketing executives. This brings success and stability to the whole business unit.
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15) Has wider social significance: MR is of paramount importance from the socia sociall angle angle.. It is the means means by which which the ultim ultimat ate e cons consum umer er litera literally lly becomes king of the market place, with his desires, prejudice and every whim transmitted to the producer and distributor. In brief, MR has wider scope significance. It is useful to all parties involved in the process of marketing.
Limitations of Marketing Research
1) Marke Marketin ting g resea research rch offer offers s sugg sugges estio tions ns and and not not decis decisio ions: ns:-- Market Marketing ing resea research rch is not not subs substit titute ute for decis decision ion maki making ng proce process ss.. It only only offer offers s possible suggestion to marketing problem. It actually acts as a tool which facilita facilitates tes decisio decision n making making process process.. It guides guides market marketing ing manager managers s in taking balanced, result oriented and rational decisions. The suggestions offered offered by marketing marketing researchers are usually possible solution but not the exact solution. In fact marketing research by itself is not an exact science. MR offers predication but they are not necessarily accurate or perfect. Such predictions should be taken in the right sprit by the management. It offers information and guidance to marketing manager but not the final decisions which are to be taken by manager themselves. MR does not provi provide de ready readyma made de soluti solution on to marke marketin ting g prob problem lem.. It only only provi provide des s indicators. The effectiveness of MR depends on the skill of the decision make makerr. MR aids aids mana manage geri rial al deci decisi sion on maki making ng but but it cont contro roll repl replac ace e judgement and experience of marketing managers. 2) Marketin Marketing g research research cannot cannot predict predict accurat accurately: ely: - In MR, efforts efforts are being made to estimate or predict the possible future situation. For this, certain research studies are undertaken. However, the results conclusions arrived at may not not be comp comple lete, te, perfec perfectt or accur accurate ate.. They They pred predict ict possib possible le tendencies but not certainties. The decision taken and policies framed on the basis of such research studies may not be accurate and useful for
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solving current marketing problems. Marketing research gives guidance to marketing managers through information and conclusion drawn but such guidance may not be accurate as it is based on the predictions about future situation. The guidance offered through activities may prove to be out dated at the time of taking current marketing decisions. 3) MR conclusi conclusions ons are not dependa dependable: ble:-- there are many who who are sceptics sceptics of MR. their criticism is that MR conclusions are not dependable. There are examples where the research failed to deliver desired result or a product failed even when the research had shown promising market demand and consumer support. The classical example is that coke. Its MR should that 68% customers in US liked the taste of the new formula developed developed by the coca-cola corporation. However, the new coke failed and in less than six months of its launch, the coke management had to relaunch old coke unde underr the bran brand d name name coke coke classi classic. c. Howe However ver,, this this failur failure e of MR was was mainly due to conventional approach. 4) Mark Market etin ing g rese resear arch ch cann cannot ot stud study y all all mark market etin ing g prob proble lem: m:-- mark market etin ing g resea research rch is rathe ratherr very very wide wide in scope scope.. Howe Howeve verr, it cann cannot ot study study all marketing problem particularly where it is difficult to collect relevant data. Similarly, research study is not useful for dealing with urgent marketing problem where quick decisions and follow up actions are necessary. Thus, all marketing problem are not researchable and all research problem are not answerable. MR fails to offer guidance to manager while dealing with spec specifi ific c proble problem. m. It is also also argued argued that that very very many many times, times, mark marketi eting ng resea research rch faced faced by a busin business ess unit unit
mark marketi eting ng researc research h tend tends s to be
frag fragme ment ntar ary y in its its appr approa oach ch it beco become me diff diffic icul ultt to have have an over overal alll perspective in which a marketing problem is to be viewed and studied. 5) Resi Resista stance nce by marke marketin ting g execut executive ives: s: resea research rchers ers study study the the marke marketin ting g problems and offers information and guidance to marketing executives in their decision-making process. However, some executives are reluctant to use use the the soluti solutions ons sugg suggest ested ed by the rese researc archer hers. s. They They feel feel that that such such extensive use will act as a threat to their personal status. Findings of the
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research work may bring them in difficulties if the policy-decisions taken accordingly prove to be wrong. Marketing executives may also feel that researchers suggest solutions which are academic in character and lack practica practicall utility utility.. There There is absence absence of meanin meaningful gful dialogu dialogue e between between the mark marketi eting ng mana manage gers rs and and the the marke marketin ting g rese researc arch h team. team. Secon Secondly dly,, researchers researchers should try to act as friend and guide of marketing marketing executives. Conflicts Conflicts between researchers researchers and executives executives are always undesirable undesirable but do exist in many companies. It is treated as one limitation of MR activity. 6) Lengthy and time-consum time-consuming ing activity: activity: MR is a lengthy lengthy and time-consum time-consuming ing activity. It involves various steps which need to be completed in an orderly manner. It is not desirable to conduct research work is an haphazard manner. Naturally, the research work take longer period for completion and findings when available may prove to be old and outdated. outdated. Moreover, Moreover, research research work cannot be conduct conducted ed overnigh overnightt and market marketing ing decisio decision n cannot be postponed till the research work is completed. 7) Marke Marketin ting g resea research rch is a costl costly y affa affair: ir: marketi marketing ng resea researc rch h is a costly costly as research work require the service of expert with knowledge, maturity and skil skill. l.
Such Such
expe expert rts s
incl includ ude e
econ econom omis ists ts,,
mana manage geme ment nt
scie scient ntis ists ts,,
statisti statistician cians, s, psycholo psychologist gists s and compute computerr experts. experts. Advance Advance training training in econom economics, ics, compute computerr technol technology ogy,, psycholo psychology gy,, sociolo sociology gy,, etc. etc. is also also necessary on the part of research staff. 8) Non-availability Non-availability of qualified staff: For For scientific scientific MR, professio professional nal marketing marketing rese resear arch cher er with with prop proper er qual qualif ific icat atio ion, n, trai traini ning ng and and expe experi rien ence ce are are necessary. Research work is likely to be incomplete in the absence of such expert staff. 9) Complex Complexity ity of subject: subject: marketin marketing g research research fails to give complete complete and fullfullproof solution to management. This is because marketing research itself is not an exact science. It is concerned with the study of human beings and human behaviour is always difficult to predict. 10) Changi Changing ng behavio behaviour ur of consumers: consumers: Consumer Consumer is a focal focal point point in the mark market et rese researc arch. h. Howe However ver,, his his buyin buying g motiv motives es are diffic difficul ultt to judge judge
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prec precise isely ly and and accu accura ratel tely y. This This bring brings s some some sort sort of unce uncerta rtain inty ty in the the conclusion drawn from the research activity. The findings of the research work may not prove to be accurate.
CONSUMER ORIENTATION ORIENTATION TO MARKETING M ARKETING RESEARCH:
Cons Consume umerr orien orientat tation ion to marke marketin ting g resea research rch mean means s maki making ng resea research rch activities pro-consumers rather than pro-manufacturer. It also means giving more importance to consumers and their satisfaction, expectations, needs, etc. and not merely to sales promotion and profit to the manufacturer. Such orientation is essential as consumer is the centre of all marketing activities and his satisfaction is the base or basic consideration in modern business.
The consumer orientation orientation to MR is the result of modern concept concept of marketing marketing which is basically different from the traditional concept of marketing. It is consumer oriented and service oriented. As a result in the marketing research activities special attention is now given to consumers. All research activities are for making marketing useful, agreeable and acceptable to consumers. This is what is described as consumer orientation of MR. Research activities are now made pro-consumer rather than pro-manufacturer.
The importance of consumer is now accepted not only MR but also in all aspect aspect of busines business s manage managemen ment. t. In fact consumer consumer is the most importan importantt person in business. He is the king and should be treated accordingly. All production and marketing activities are for meeting his needs and also for raising satisfaction and welfare. He is the cause and purpose of business activi activiti ties es.. Fina Finally lly,, mode modern rn busin busines ess s is not not profi profitt orien oriented ted but but cons consum umereroriented or service-oriented. All these arguments are equally applicable to MR. in other other words words,, MR activ activiti ities es move move arou around nd the the cons consum umer er and and his satisfaction.
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FIELD INVESTIGATION / SURVEY METHOD
Meaning
Surv Survey ey mean means s a plan planne ned d atte attemp mptt to coll collec ectt requ requir ired ed info inform rmat atio ion n from from representative sample of the relevant population. Field investigation means collec collectin ting g first first hand hand infor informa matio tion n by actua actually lly visiti visiting ng marke markets ts or meeti meeting ng consumers and dealers who are directly related to marketing activities. Data collected for the first time through field survey is called primary data. Here, data collected through suitable questionnaire and interview a limited number of people people selected selected from large large group. group. Custom Customer er,, credito creditorr and supplie supplierr are major source of primary data.
The primary data collected are superior to secondary data. Primary data are also also nece necess ssary ary when when the the seco seconda ndary ry data data are are incom incompl plete ete.. Prima Primary ry data data needed to be collected from different sources such as survey, observation and experimentation.
The primary data are reliable. However, problem in primary data is its cost, both in term of money and time required for collection.
Primary data are of two types:a) Census:Census:- It refers to the collection collection of data data from the entire population. population. In India population census is taken after every 10 years. b) Sample Sample::- samp samplin ling g is an inter interna nall part part of data data colle collect ction ion through through survey surveys. s. Sampling is used to collect primary data when sources of data are too many to be exhaustively handled. A sample is only representative portion of the population.
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Methods of field investigation/market survey
a) Mail surveys . b) Telephone Telephone surveys. c) Personal interview. d) Consumer panels.
Field investigation is one of the widely used MR methods. Field investigation is important as they are more accurate and unreliable. Here, direct communication is a estab establis lished hed with with the the cons consum umer ers s and and inform informat ation ion is colle collecte cted d by aski asking ng relevant question. Naturally the information collected is accurate, first hand and factual. The conclusion drawn from such data are more accurate and reliable.
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About the Report The following report is an in-depth study on consumers’ buying behaviour in a mall. Primary data, which is the feedback received directly from the consumers, is collected, sorted and converted into statistical form. The outcome so obtained is then analysed and possible conclusions are drawn.
These conclusions help in knowing what the average consumer prefers to buy today. Conversely it helps in understanding what his dislikes are too. Whether the product to be launched gains acceptance in the mind of the consumer depends to quite an extent on the Research Report. It helps us gain an insight and get into the psyche of the consumer so we can design more and more products and services which are best suitable to his needs. Not only will this help in making more more prof profit its s but but also also in enha enhanc ncin ing g cons consum umer er loyal loyalty ty – a boon boon in toda today y’s competitive world.
The findings of the report are based on a field survey of 100 people, mostly in malls. Although it may not give an exact idea of the buying behaviour of every consumer, it does give a peek into the mind of the general preferences of the conservationalist, the average and the spend-thrift consumer.
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Methodology
A survey was undertaken in some of the busiest shopping malls in Mumbai – Crossroads, High Street Phoenix, Globus, InOrbit, Shopper’s Stop and R-Mall. Consumers were approached directly and presented with a questionnaire which was designed to gain information regarding their monthly income, general buying preferences, preferences, visiting preferences preferences and expectations expectations regarding anything specific in the mall.
Once all this data was collected, it was then sorted out and statistically analysed. A graph of each aspect contained in the questionnaire was made so as to get an exact percentage of the findings. Conclusions, based on the outcome, hereby obtain obtained ed were were drawn drawn and and deci decisio sions ns were were taken taken abou aboutt the the proba probable ble buying buying behaviour of the average consumer.
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Poll Results
Monthly Income 40 35 30 e l p o e P f o . o N
25 20 15 10 5 0 Belo Be low w 5000
5000-1500 5000150000 15000 15000--25000
25000 and above
Income (Rs.)
From the above graph, we can observe that out of 100 people visiting a mall: •
12 people have a monthly income below Rs. 5000
•
36 between Rs. 5000 – Rs. 15000
•
30 between Rs. 15000 – Rs. 25000
•
22 have Rs. 25000 and above
Interpretation: •
12 out of 100 people cannot afford to make any significant significant purchases in a mall.
•
36 out of 100 can afford to buy goods affordable to the lower middle-class.
•
30 out of 100 have the potential of becoming becoming profit-earning consumers consumers for the mall.
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•
22 out of 100 have the ability to pay for expensive goods.
Educational Educ ational Backgroun Background d 45 40 e l p o e P f O . o N
35 30 25 20 15 10 5 0 10th HSC Grad Gradua uate te Pos Postt Others Passed Passed Graduate
From the above graph, we can observe that out of 100 people visiting a mall: •
13 people are 10 th passed
•
14 people are HSC passed
•
44 are graduate
•
28 are post-graduate
•
1 are Others.
Interpretation: It is observed that people who are more educated have preferences and tastes which are quite different from others who are less educated. It is observed that 10th passed and HSC passed people tend to copy the lifestyle led by most of the well-educated people. This is because of the simple reason that with education comes class.
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Frequency of Visit
Others Quarterly Fortnightly Monthly Weekly kly
6 9 13 26 46
From the above graph, we can observe that out of 100 people visiting a mall: •
46 visit weekly
•
26 visit monthly
•
13 visit fortnightly
•
9 visit quarterly
•
6 not specified
Interpretation: Maximum numbers of people visit a mall on a weekly and monthly basis.
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Purpose of Visit Others WatchingMovies Get Tog Toget ether her Windo Wi ndow Shopping Shoppi pping ng 0
10
20
30
40
50
60
70
80
From the above graph, we can observe that: •
69 go for shopping
•
23 for window shopping
•
18 for get-togethers
•
9 for watching movies
•
1 for other reasons
Interpretation: Maximum number of people visit a mall for shopping purposes. A staggering second comes window shopping. This is the target audience, the people who are useful from the profit-making point of view.
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Pro roductsShoppedF dFor 60 50 40 30 20 10 0 Clothes & Accessories
Ele Electronic onics s
Groceries ies
Others
From the above graph, we can observe that out of 100 people visiting a mall: •
57 shop for clothes and accessories
•
10 shop for electronic goods
•
13 for groceries
•
20 for other items.
Interpretation: Clothes and accessories clearly top the list in consumer buying preference in a mall. Other items such as toiletries, chocolates, canned foods, wafers etc. are preferred by a considerable amount of people. Electronic goods and groceries are not much of a hit in a mall.
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Spending Amount 40 35 30 25 20 15 10 5 0 Below Bel ow1000
1000-3000
3000-5000 5000 above
From the above graph, we can observe that out of 100 people visiting a mall: •
31 spend below Rs. 1000
•
39 spend between Rs. 1000 – Rs. 3000
•
14 spend between Rs. 3000 – Rs. 5000
•
16 spend Rs. 5000 and above.
Interpretation: Majority of people spend between Rs. 1000 – Rs. 3000 during a visit to the mall (when they are shopping). Items selling below and till this price limit would be most profitable.
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Buying Preference Preference
80 70 60 50 40 30 20 10 0 Bran Brande ded d Goods oods
Unbra nbrand nded ed Goods oods
From the above graph, we can observe that out of 100 people visiting a mall: •
80 shop for Branded Goods
•
20 for Non-Branded Goods
Interpretation: The average consumer prefers buying Branded Goods as far as he can. Since the standard of living has risen, people associate associate brands with status in society. society. If this consumer is provided with recognised brands within his budget, it can be a very profitable business. This is what Peter England tried to do.
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Prices Charged 50 40 30 20 10 0 Reason Reasonabl able e
Unrea Unreason sonabl able e
No Commen Comments ts
From the above graph, we can observe that out of 100 people visiting a mall: •
48 people think prices are reasonable
•
35 think they are unreasonable
•
17 can’t say. say.
Interpretation: As far the prices are concerned, it is observed that a majority of people think that prices charged in a mall are unreasonable. Though it is purely subjective, at the end of the day the average consumer must feel that he/she has got more than his/her value for money. Only then can malls flourish.
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Value for Money?
Yes
No
Can't Say
From the above graph, we can observe that out of 100 people visiting a mall: •
60 people feel they get value for money
•
22 feel they don’t
•
18 Can’t Say
Interpretation: Majority of people feel they get value for money in a mall. The satisfaction level of shoppers, is therefore, highest in a mall.
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Acessibility
45 40 35 30 25 20 15 10 5 0 Yes
No
Can't Say
From the above graph, we can observe that out of 100 people visiting a mall: •
44 would visit a mall even if it’s far away from their residence
•
45 would not
•
11 Can’t Say.
Interpretation: It is best for malls to spring up within the city itself and not on the outskirts. People are too busy to travel back and forth in their hectic work schedule.
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Recommendation
Yes
No
From the above graph, we can observe that out of 100 people visiting a mall: •
80 would recommend it
•
20 would not
Interpretation: Publicity by word of mouth is the most effective. Hence the management should concentrate on maximising customer satisfaction and hence improve on and further expand their customer base.
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Payment Preference 70 60 50 40 30 20 10 0 Cash
Credit
From the above graph, we can observe that out of 100 people visiting a mall: •
64 prefer to pay in cash
•
36 in credit
Interpretation: Consumers Consumers still prefer buying goods on cash basis than using credit. This shows that if the mall intends to make use of credit services they can offer discounts based on the various credit companies and also the various banks that they can
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have a tie up with. This will further increase profits and also the reputation and goodwill of the mall.
One-stop shop?
60 40 20 0 Yes
No
Can't Say
From the above graph, we can observe that out of 100 people visiting a mall: •
53 say it is a one-stop shop
•
27 say it’s not
•
20 Can’t Say
Interpretation: The average consumer feels he can get almost everything he wants at a mall. Still the mall can go ahead and take the extra effort in finding out the needs of the customers and try to satisfy them.
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Timing Convenience 90 80 70 60 50 40 30 20 10 0 Yes
No
From the above graph, we can observe that out of 100 people visiting a mall: •
82 feel timings are convenient.
•
18 feel they are not.
Interpretation:
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Timings of the mall are suitable to the working person. But on the whole, if the timing is extended a little further it would be better suited to the common man.
E-shopping 60 50 40 30 20 10 0 Yes No
From the above graph, we can observe that out of 100 people visiting a mall: •
42 prefer shopping online
•
58 prefer in-person
Interpretation:
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The concept of online shopping is yet to catch-up in India. It’s evolvement would take probably another decade.
Demographics
Demographics
80
60
40 20 0 Men Women
From the above graph, we can observe that out of 100 people visiting a mall: •
73 are men
•
27 are women
Interpretation:
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Contrary to popular belief, men are doing the shopping in today’s world!
Conclusion:
Averag verage e earni earning ng cons consum umers ers in the the age age grou group p 25 25-4 -40 0 earn earn between een Rs. 5000 – Rs. 25000, comprising mostly of graduates visit a mall maximum times on a weekly basis. The visit is mainly for shopping comprising of clothes and accessories and other items, spend around Rs. 1000 to Rs. 3000, prefer buying branded goods, would not visit a mall if it’s far away from place of residence or work and prefer to pay in cash rather than credit.
We thank Dr. Susy Kuriakose for giving us an opportunity to learn learn the basic basic fundam fundament entals als of Market Market Researc esearch h and put them into practice in such a fruitful project. Her guidance from time to time is appreciated.
Mall Research
Poll Instruments
Name: Age: Profession: Monthly Income: Below 5000
15000 – 25000
5000 – 15000
25000 and above
Educational Background: -
10th passed
HSC Passed
Graduate
Post Graduate
Q.1] How often do you visit a mall? Weekly
Monthly
Fortnightly
Quarterly
Others Q.2] You would visit a mall for…………
Shopping
Get together
Window shopping
Watching movies
Others - Please specify___________________ specify_____________________________________ __________________
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Q.3] What product do you shop for in a mall?
Clothes & accessories
Electronics
Grocery
Others
Q.4] How much would you spend on a visit to the mall?
Q.5] Do you prefer buying ……… Branded Goods
Unbranded Goods
Q.6] What do you think about the prices charged in a mall?
Reasonable
Unreasonable
No comments
Q.7] Do you think you get value for money in a mall?
Yes
No
Can’t say
Q.8] Would you travel to a mall even if its far from your place of resident?
Yes
Can’t say
No
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Q.9] Would you recommend the mall based upon your own experience?
Yes
No
Q.10] Do you prefer to shop on cash basis or credit basis?
Cash
Credit
Q 12] Do you agree that the mall is a one-stop shop?
Yes
No
Can’t say
Q13] Do you think the timings of the mall are convenient for you?
Yes
No
Q14] Do you think that the concept of e-mall (shopping online) is more convenient? (as a working person)
Yes
Q.15] List malls in the order of preference.. 1 2 3 4
No
