Amrita Shrivastava BBA-3rd Year

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A
Project Report on
Consumer Behaviour and Customer
Engagement
Field of management
At
Dezyne E‟Cole College Ajmer
By
Amrita Srivastava
Towards The Partial Fulfillment of 3rd Year in Bachelor‘s
of Business Administrative
Dezyne E‘cole College
106/10 civil lines, Ajmer
0145-2624679
www.dezyneecole.com
2016-2017

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Amrita Srivastava,
Bachelor of Business Administration
Dezyne E’ Cole College
www.dezynecole.com

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Grade Sheet
Dezyne E‘ Cole College
106/10 civil lines, Ajmer
0145-2624679
www.dezyneecole.com
2016-2017
This project report of Miss Amrita Srivastava of Bachelor of business
Administration (3rd
) Year Program of BBA has been graduate
as…………………..
Thinking You
Principal

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Training Certificate

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Acknowledgment
I would like to express my gratitude towards Future Group for giving me
an opportunity to work as a summer intern for the duration of one and
half month as a part of training of our course. I express my gratitude to
all those who initialed and help me in a successful completion of this
project.
I express my sincere gratitude to Mr. Tarun sir (Training head, Noida)
and our faculty guide Miss. Neha Bagga for supporting us during the
project work.
I also take this opportunity to express my indebtedness to Mrs. Vinita
Mathur principal “Dezyne E‟ Cole Ajmer‖ for her corporation and
affectionate encouragement. I also thanks to my all faculty member for
their suggestion and advices.
Also I am thankful to my parents and family member who are my
constant source of inspiration in every field of life and due to them I am
whatever I am today.
Thanking you
With regards
Amrita Srivastava

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Synopsis
This Project was undertaken as my summer internship at future Retail (HOME
TOWN) during the internship period of 45 days I work on the topic consumer
behaviour and customer engagement.
Currently I‘m completing a Bachelor‘s degree at the Dezyne E‘ Cole College in the
Ajmer. I‘m in my 3rd year and therefore I have to conduct a one and half month
internship. The reason I choose to do my internship Delhi is because I wanted to
benefit from the experience. I wanted a new challenge. I wanted to do my internship
Delhi to experience the business world and to learning, improve and develop new
sets of skills.
One of my main goals is to improve my English. Another goal is to Improve
Knowledge about Market. This is why I choose to follow my internship Delhi to learn
and develop new sets of skills and to experience working Delhi.
In this internship report I will describe my experiences during my internship period.
The internship report contains an overview of the internship company and the
activities, tasks and projects that I have worked on during my internship. Writing this
report, I also will describe and reflect my learning objects and personal goals that I
have set during my internship period.

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Amrita Srivastava
Management student
Profile
To be a successful Manger we need to focus on
the way of communication and all the aspect of
human bahvaiour. I thank Dezyne E Cole to
make me an skilled person and make me ready
for the industry.
Skill
 Computer Knowledge
 Website Maker
 Basie knowledge of Accounts
 Basic knowledge of business management
Intrest
 Music
 Dance
 Like to Learning different country language
 Gaining knowledge about new technology
Language
 Hindi
 English
Experience
 Internship at home Town for One and Half
month
 Doing Project regarding Management
 Make a Website regarding Rajasthan
tourism
Email id :
Dezyneecole@gmai.com
Website :
www.dezyneecole.com
Phone :
0145-2624679
Education
Bachelor’s Of Business
Administrative (BBA)
Dezyne E’ Cole College,
Ajmer
(2014-2017)
12th
National Institute of
Open Schooling Jaipur.
(2013-2014)
10th
Rajasthan board
(2011-2012)

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Content
 Introduction of Management - 10
 Introduction of Marketing - 11
 Introduction of Retail - 12 -16
 Introduction of Future Group - 17-22
 Introduction of Future Retail - 23-31
 Introduction of Home Town - 32 -47
 Consumer - 49
 Consumer Behaviour - 50-88
 Customer engagement - 89-97
 Research Methodology - 99-116
 Home town Engagement Cycle - 117-127
 SWOT Analyses - 129-132
 Conclusion - 134
 Recommendations - 135
 Limitations - 136
 Biography - 137

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Introduction of Management field and its
content
Introduction of Marketing
Introduction of Retail
Introduction of Future Group
 Brands
Introduction of Future Retail
 Outlets
Introduction of Home Town
 Department
 Need of Study
Objectives of Study
Limitation of Study

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Introduction of Management
As per the studying criteria of three years of bachelor‘s degree of management field
every student has to undergo a practical training of 45 days. According to the interest
of the student the training is a vocational training in the organization to learn more
about the working scenario of an organization and a project by the person whom one
is posted during the training period. I had undergo a practical from Future Group,
Hometown.
In the present scenario the practical training is an essential part of management
stream. It helps an individual to visualize the management practices in the theoretical
aspects in which we have learnt Business Communication, Purchase
Management, Business Research, Quality Management, Orgainsation
Behaviour, Sales and Salesmanship, etc.
After the completion of training period every student have to make a training report to
showcase my work, which I had done in an organization in my training period. The
project report contain the chapters likewise, Company profile, Consumer
Behaviour, Customer Engagement, etc.
This project work is based on the above subjects whom we learn in our three year
degree program.
A project report is divided into two major parts the first is Primary parts which gives
a brief study about Company profile, Product Classification etc.
The second part is Secondary Part which gives a brief study about Research
Tools, Market Study, Objectives of Study, and Introduction of management etc.
These are the aspects which I have discussed in my internship project work at
Future Group, Hometown in Noida for 45 days.
This is the annual report which presents the aspects of the practical training taken by
me. The criteria on which I had undertaken my training and present my project work
is “Consumer Behaviour and Customer Engagement” for understanding the
efficient and better functioning of the organizations and for taking an practical
knowledge about the effective working of the organization to enhance and boost up
my skill set.

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“Marketing is Strategic Communication and promotion
delivered in a mix of from, such as advertising public
relation and direct marketing through multiple online and
offline channels to acquire customer retain customer,
increase share of wallet and shorten the sales cycle”.
Marketing is the moving and exciting activity in everybody activities. The
sellers, distributors, advertising agencies, consultants, transporters,
financers, store agencies and every one as a counter are part of the
marketing system. Any exchange process be it consumer, goods,
intermediary goods, services of ideas, comes under the preview of
marketing. It is very often regarded that the development of markets and
marketing is synonymous with the economic development of account.
Through marketing is an action discipline. In the ever-growing corporate
world, marketing is being regarded as a crucial element for the success
of an Enterprise. The marketing discipline is undergoing fresh re
appraisal in the light of the vast global, technological, economic and
social challenges facing today‘s companies and countries. Marketing at
its best is about value creation and raising the world‘s living standards.
Today swinging companies are those who succeed most in satisfying,
indeed delighting their target customers.
Marketing is so basic that it cannot be considered a separate function. It
is whole business seen from the point of view of its final result, that is,
from the customer‘s point of view. Business success is not determined
by the producer but by the customer´.
P.P.Drucker
Defined marketing as it is a social and managerial process by which
individuals and groups obtain what they need and want through creating,
offering and exchanging products of values with others´. Many Indian
companies espouse a satisfied customer philosophy and describe
marketing as customer-satisfaction engineering. Since the economy in
this country has changed from a primary condition of scarcity to gradual
and steady stage of affluence, largely giving consumers the opportunity
to choose among many varied alternatives, satisfaction has become a
major concern of business.
Philip Kotler

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Retail
The word ‗retail‘ is derived from the French word ‗retailer‘ meaning ‗to cut a piece off‘
or ‗to break bulk‘. In simple terms it involves activities whereby product or services
are sold to final consumers in small quantities. Although retailing in its various
formats has been around our country for many decades it has been confined for a
long time to family owned corner shops.
The five principals of retail
One: The customer is the most important person in your business
The customer holds the key to every successful retail operation. Based on my 20
years' of experience with a number of different retail businesses, this article will
introduce you to the journey to make your business customer-focused, and realise
the potential you have to make your retail business a success.
The main retail principle to master is the customer; the customer should be the
centre of your business and everything you do must revolve around that customer.
Knowing them, and focusing on them in everything you do, will help you grow your
business and your team — the customer is king.
Two: Retail is detail
One of the most famous principles in retailing is, of course, ―retail is detail‖ — this is
where the challenge lies: how do you become more detailed and what detail should

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you focus on? You need to address and improve your understanding of your
customer. To do this, every retailer must focus on the detail and get the detail right
the majority of the time. Mistakes are OK, but you must learn from them and do not
repeat your mistakes. Customers will allow you some mistakes, but too many will
turn them away; understanding the detail is a key skill to master in retail.
Three: Understand the four Ps
This is a very old principle but still has validity. This retail principle will help you
understand the overall foundations of a retail business; the 4 Ps: Product, Price,
Place, and Promotion. These are the basic foundations of a successful retail
business.
Product: You need products that your customers want to buy and a product range
that will satisfy your customers‘ needs and desires. The products must also deliver a
profit for you to have a successful business;
Price: Price must be consistent across the marketing mix and meet all requirements
for your business. You need to price your product range at the correct level for the
customers to be able to buy your products, and for them to gain value from your
products. This could mean pricing high or low — this very much depends upon your
customer offering;
Place: You must provide somewhere for your customers to purchase your product,
be that a physical store, a catalogue or an e-commerce website;
Promotion: Once you have a product — at the right price, in a place where the
customer can access it — you need to tell them about this and promote your
business and your products; make sure your customers know that you and your
products exist and are available for them to enjoy.
Four: Go the extra mile for your customer
Providing great customer service starts with understanding and knowing your
customer; however, knowing them is the start of the journey and you will need to
deliver more than just customer service. To be successful you must deliver world-
class customer service; you must ―go the extra mile for the customer‖. You and your
team must continually go the extra mile for the customer, each time delivering just a
little more than they expect. Doing this each time you and your team interact with
your customers will win them over and make them loyal over a long period of time.
Five: Location, location, location
The final retail principle is: Location, location, location. History has dictated that this
is one of the most important factors in the success of a physical store, and still to this
day it will have a major impact on your success. The best location of your store will
be dictated by your brand and product strategies. For example, a supermarket

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operation needs a car park and a high fashion store needs to be in a high fashion
area that attracts the right customers for the store. I would argue, however, that
location has less effect now than previously, due to two main factors: the first being
the flexibility of the customers; now we often travel more, and the second being the
internet. The internet has changed our shopping habits and will continue to do so. E-
commerce websites have opened up the world of ―non-geographic‖ retail — a retail
world without the need to visit the physical store. The emergence of ―retail‖ from
retail has been the biggest change over the past 20 years. The journey from retail to
retail has been quick, and we need to embrace the world of retail and ensure we
understand its effects on our customers. The retail world is growing significantly and
with new technologies, such as iPods and mobile commerce, it will continue to
change the opportunities in the world of retail. Retail marketing is the range of
activities undertaken by a retailer to promote awareness and sales of the company‘s
products. This is different from other types of marketing because of the components
of the retail trade, such as selling finished goods in small quantities to the consumer
or end user, usually from a fixed location.
Retail marketing makes use of the common principles of the marketing mix, such as
product, price, place and promotion. A study of retail marketing at university level
includes effective merchandising strategies, shopping and consumer behavior,
branding and advertising. Retail marketing is especially important to small retailers
trying to compete against large chain stores.
(As India‘s leading multi format retailer future group inspire)
What is a retail outlet?
A store that sells smaller
quantities of products or
services to the general public. A
business that operates as a
retail outlet will typically buy
goods directly from
manufacturers or wholesale
suppliers at a volume discount
and will then mark them up in
price for sale to end consumers.
Need For Study of Retail
The retail sector development has been based on the democratization of
consumption thanks to a low price economic model. This model relies on a low price-
oriented value offer. To be efficiently implemented, this model needs to work on the
control of distribution costs

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Today‘s retail market is in the midst of great changes. The current competitive set is
under fierce competition from new and emerging venues this dynamic of change is
not a new occurrence in retail. Populations were centered within metropolitan areas.
People did not live in the suburbs and rural residents made their way to nearby cities
when they needed to make a purchase. Back then, required clothing was either
unable to be made and/or unavailable in the general store.
Those residents of cities and metropolitan areas shopped in retail districts, often
defined by the type of product that was available. There were streets and avenues
that were known colloquially as the shoe district, milliner district, haberdashers and
others.
Like the advent of supermarkets in food retailing, where grocers brought the various
store fronts together under one roof (i.e. green grocer and butcher shop),
convenience drove the birth of the department store. These eponymous mega-stores
brought the shingles of merchants together in one place. Suddenly, it was possible to
shop for hats, shoes, dresses, and outerwear all in one place. The lucky city shopper
was able to save time as well as sample all the finest and utilitarian goods available.
This retail market was a global phenomenon. In Britain, Kendals, Harrods, Selfridge,
Baimbridge and others took hold. As the space moved towards this powerful market
economy, department stores arrived all over the European continent. Le Bon
Marché, Karstadt, Magasin and countless others — each was representing the
needs of the local population.
In the US, retail giants took root and Gimbels, Macy‘s, John Wanamaker, Lit
Brothers, Strawbridge and Clothier, Lord & Taylor, Marshal Fields, Frederick and
Nelson began. Many never morphed into chain stores. Marble Palace, in New York,
was one of the first department stores.
As the population shifted to the suburbs from the 1940s and 50s, these large
department stores opened chain stores in larger markets today, in the retail market
world, new pressures have arrived. Specialty stores are on the rise again because
shoppers are looking for the unique and unusual. Population centers have expanded
and almost every community can support a mall (that is, a centralized design
predicated upon the idea that a city shopping experience could be brought to any
community) and a discount retailer like Wal-Mart, Kmart, and Target. But margins
have eroded, discounting has become the norm, shoppers are savvier and the
availability of online purchasing can fulfill the needs of the shopper. The thrill of the
hunt can reside on your tablet or phone and when the shopper visits the department
store they are aware of pricing and compare it to an online venue or a competitor‘s
web site live — even while in the store itself
As a result, cities all over the globe saw more and more independent specialty stores
shutter their windows and close. The department store appeared to be an irresistible
source.

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The shoppers at Bergdorf Goodman would rarely go into Wal-Mart, and vice versa.
The middle was intended to play to all shoppers.
In this paradigm, and because of their polar positions, luxury retailers and discount
stores already come with a built-in audience. Those shoppers seeking exclusivity for
the privileged and top designer fashion will frequent the high-end markets, while
those seeking a value will hit the discount shop.
For example, Bergdorf Goodman offers a uniquely exquisite shopping experience.
The store is uncluttered and displays recognizable products for the upper class.
In this region of the retail market, the shopper is readily defined and is willing to
spend major bucks on the finest brands, quite happily. High-end stores represent a
vision of either how they see themselves (elite) or how they aspire to see
themselves.
The lowest sector of our retail market segment represents discount and value
markets. It, like the luxury sector, also has a built-in set of loyal customers.
Represented here are those seeking value, perhaps quantity and locations close to
home. (They, also like the high-end shopper, may seem themselves as smarter than
the rest.)
Wal-Mart rules this portion of the market. The customer knows exactly what they will
find at Wal-Mart, approximately how much they‘ll spend, and can plan accordingly
with their wallets. Same too with TJ Maxx, which offers fashionable brands at
discounted prices, as well as Target and others positioned in this section.
This then leaves the largest portion of the retail market in and around the middle.
Here we find department and specialty stores lurking about, but without any real
defining factors that separate them from the other contenders – including those
above and below them in this matrix

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Kishore Biyani (born on August
9, 1961) is the Founder and
Group Chief Executive Officer
India‘s leading Retail Company,
Future Group. Future Group
mainly deals in retail chains
spread over the space of 20
million square feet in more than
240 cities in India and attracts
over 370 million customer visits
annually. As the Group CEO of
Future Group, Kishore leads a
strong leadership team that delivers on Future Group‘s vision of making India a
‗Sone Ki Chidiya‘ once again. Biyani is married to Sangita Biyani and they have two
daughters, Ashni Biyani and Avni Biyani. His elder daughter Ashni is a director of
Future Ideas, Group's innovation and incubation cell and younger daughter Avni
Biyani is Concept Head of a premium food destination, Foodhall.
Career
Though hailing from a business family, Kishore Biyani‘s first venture happened
almost by chance. During the early ‘80s he noticed the trend of ‗stonewashed‘ fabric
being used for trousers. Riding on this demand, Biyani began the business of
supplying stonewashed fabric to local shops in South Mumbai. This small business
gave him the first taste of entrepreneurial success. The initial success encouraged
Biyani to launch his own brand of fabric for men‘s trousers called WBB - White
Brown and Blue. In 1987, Biyani started a new company called Manz Wear Private
Limited, which was dedicated to manufacturing garments. These brands were sold
under in the retail stores of Pantaloons Shoppe. Manz Wear Private Limited initially
supplied garments to few apparel outlets, but Biyani quickly expanded its scope and
established a network of franchise stores that sold Pantaloon trousers only. In 1991,
Manz Wear was converted into a public limited company and the name was changed
to Pantaloon Fashions (India) Limited. By 1994, the Pantaloons franchise chain had
achieved a turnover of Rs 9,000,000. The company also launched shirt brand ‗John
Miller‘. In 1996, when Biyani was contemplating making Pantaloons a large format
retail store, he stumbled upon a 8,000 square foot property at Gariahat in Kolkata .
At that time, the biggest stores in the city were no more than 4,000 sq ft. This led to

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the launch of the first departmental store of Pantaloons in 1997. In 2001, Kishore led
the creation of Big Bazaar, a uniquely Indian hypermarket network that connects
thousands of small and large manufacturers to millions of customers. Big Bazaar
today is counted among the five most trusted brands in the services sector in India.
(refer Brand Equity Nielsen Study) Since then, a number of retail chains have
become part of Future Group. Some of these include, Central, Brand Factory,
HomeTown, eZoneonline.in . He has led the acquisition of a number of chains
including Nilgiris, EasyDay,Aadhaar and fabfurnish.com.
Collectively, these are spread over almost 20 million square feet of retail space in
over 240 cities and towns in India and on various digital platforms. Future Group
stores attract over 370 million customers annually and are served by over 45,000
customer associates directly employed by the Group and almost million people who
are directly or indirectly associated with the Group‘s businesses. The group has also
developed an extensively portfolio of brands in the fashion, food and beauty space
that are retailed through its own outlets as well as through other competing chains. In
the fashion space, some of Future Group brands include, Scullers, Indigo Nation,
Jealous, Lee Cooper, Converse, John
Miller, Bare, UMM, Knighthood etc. In
the FMCG space, Future Group brands
include, Tasty Treat, Sunkist, Veg Affair,
Golden Harvest, Nilgiris, Kosh, Sangi‘s
Kitchen, among others. Valuing and
nurturing relationships is a key value
championed by Kishore and reflects in
the strong partnerships the group has
developed with entrepreneurs,
developers, investors, service providers
and domestic and foreign organizations
across various industries. Some of the
key joint venture partners of the group
include, British footwear market, Clarks,
Europe‘s leading insurer, Generali
Group and British consumer analytics
firm, dunnhumby and the group has
invested in businesses started by over a
dozen of its supply partners and
entrepreneurs. Kishore is a firm believer
in the maxim of ‗Rewrite Rules, Retain
Values.‘ He was born in Mumbai in
1961. In 2007, he authored the book, ‗It
Happened in India.‘ Kishore and his
wife, Sangita have two daughters, Ashni
and Avni Biyani

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Introduction of Future Group
Every day, future group brings multiple products, opportunities and services to
millions of customers in India. Through more than over 17 million square feet of retail
space, Company serves customers in more than 240 cities across the country. Most
of all, Company help India shop, save and realize dreams and aspirations to live a
better quality of life every day.
Future group is private company and founded in 1994 by Mr. Kishore biyani (C.E.O).
Future group is an Indian private conglomerate, headquartered in Mumbai. The
company is known for having a significant prominence in Indian retail and fashion
sectors, with popular supermarket chains like big bazaar and food bazaar, lifestyle
stores like brand factory, central etc. And also for having notable presence in
integrated foods and FMCG manufacturing sectors.
Future retail (initially pantaloons retail India ltd (pril)) and future lifestyle fashions, two
operating companies of future group, are among the top retail companies listed in
bse with respect to assets, and in nse with respect to market capitalization.
On may 2012, future group announced 50.1% stake sale of its fashion chain
pantaloons to aditya birla group in order to reduce its debt of around ₹80 billion
(us$1.2 billion). To do so, pantaloons fashion segment was demerged from
pantaloons retail India ltd; the latter was then merged to another subsidiary future
value retail ltd and rechristened future retail ltd. And future net income is Rs 960.81
CR in march 2013.
Future Group is a corporate group and nearly all of its businesses are managed
through its various operating companies based on the target sectors. For e.g., retail
supermarket/hypermarket chains Big Bazaar, FBB, Food Bazaar, Food Hall,
Hometown etc. Are operated through its retail hand, Future Retail Ltd, while its
fashion outlets Brand Factory, Central, Planet Sports etc. Are operated via another
of its subsidiaries.
Future Lifestyle Fashions, With these many fashion outlets and supermarket, the
group also promotes respectively, its fashion brands like Indigo Nation, Spalding,
Lombard, Bare etc., and FMCGS like Tasty Treat, Fresh & Pure, Clean Mate, Ektaa,
Premium Harvest, Sach etc. It also has operating companies to cater specifically to
internal financial matters and consulting within its group of companies.
Future Group understands the soul of Indian consumers. As one of India‘s retail
pioneers with multiple retail formats, Company connect a diverse and passionate
community of Indian buyers, sellers and businesses. The collective impact on
business is staggering: Around 300 million customers walk into Company stores
each year and choose products and services supplied by over 30,000 small, medium
and large entrepreneurs and manufacturers from across India. And this number is
set to grow.

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Future Group employs 36,000 people directly from every section of Company
society. Company source Company supplies from enterprises across the country,
creating fresh employment, impacting livelihoods, empowering local communities
and fostering mutual growth. Company believe in the ‗Indian dream‘ and have
aligned Company business practices to Company larger objective of being a premier
catalyst in India‘s consumption-led growth story. Working towards this end, Company
are ushering positive socio-economic changes in communities to help the Indian
dream fly high and the ‗Sone Ki Chidiya‘ soar once again. This approach remains
embedded in Company ethos even as Company rapidly expands Company
footprints deeper into India.
Future Group was conceived as a force to drive domestic consumption and capture
every addressable need of Indian consumers. Future Group addresses opportunities
in the education, learning and skill development space through Future Learning‘s
three unique lines of business which leverage the group‘s understanding of the
consumer-centric business.
In 2008, Future Group established Future Learning whose unique strength lies in its
rich experience in the learning and development domain, especially across the retail
industry. Future Learning‘s three focused lines of business are Future Lead, Future
Innoversity and Future Sharp.
Future Learning offers
• Organisational Solutions through Future Lead

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• Higher Education through Future Innoversity
• Skill development through Future Sharp
Climate change is one of the greatest challenges facing the world today. Future
Group strives to reduce environmental impact and optimize energy consumption in
its stores and strengthen green considerations in logistics operations. Company
Endeavour is to promote eco-friendly products and raise awareness on
environmental issues both internally and externally.
As part of Company sustainable-development initiatives, Company has made a
commitment to care for the environment. Through Company commitment, Company
look to make a significant positive impact on the ecology and surroundings in which
Company operate. Through investment and innovation Company are leading the
way in providing a greener way to do business.
At Future Group, corporate social responsibility, inclusive growth and sustainability
are at the core of Company strategy and business practices. This reflects in
Company commitment to the community, environment and to every stakeholder in
building a stronger foundation for Company long-term, sustainable growth. Future
Group offers new ways of thinking about retail and consumerism in India.
Company believes Retail must take the lead in renewing Company economic growth
trajectory. Leveraging the experience and insights gained in pioneering retail in India,
Company have developed a deeper understanding of the evolution of modern Indian
retail and its role in driving sustainable economic growth.

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Future supply chains:
FSC (Future Supply Chain Solutions Ltd.) is India's first fully integrated and IT
enabled end- to- end Supply Chain and Logistics service provider in India. It provides
services to large corporate in Food & FMCG; Apparels, Footwear & Accessories;
Consumer Electronics & Hi- Tech; Automotive; Pharma and Light Engineering
domain.
Promoted by Future Group and Fung Capital, FSC has been a pioneer in
modernizing supply chain and logistics by implementing global best practices in the
Indian context. This has enabled FSC to provide customized Supply Chain Solutions
& Services which reduce Time- to- Market™ and Cost- to- Market™ of customers
Future Supply Chains Offerings:-
FSC Supply Chain Solutions
FSC Supply Chain Solutions team studies the business imperatives of customers
and designs customized supply chain solutions in collaboration with the customers
like:
 Supply chain consulting to define business needs and logistics opportunities.
 Distribution and Transportation network analysis and design
 Warehouse and Facility modeling and layout, including evaluation of
Infrastructure and mechanization needs
 Evaluation and implementation of Technology.
 Labor management opportunity assessment.
 Operational analysis and improvement
 3PL capabilities of high-end Warehousing, Express and Customized
Movement Solutions.
FSC Supply Chain Services
FSC’s Service offerings include:
 FSC Contract Logistics (Warehousing and Distribution)
 GST Ready Network across all High Growth Consumption Clusters of India
 Facilities are Built-to-Suit, Multi-user and Scalable
 Deploying global best practices in Technology & Automation; Indian sing and
Indigenizing to suit Indian conditions
 Robust Distribution & Last Mile Fulfillment Network, providing end- to- end
solutions
 FSC Express Logistics (Express transportation services)
 Safe, secure & all-weather movement through a dedicated fleet of
containerized vehicles.

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 Online, Real time consignment tracking through GPS enabled Vehicle
Tracking System
 24/7, Online Customer Portal which gives end- to- end visibility from pick- up
to delivery
Future Group was founded on a simple idea: Rewrite rules, retain values. This
fundamental belief created a new kind of marketplace, forever transforming Indian
retail. Today Company core values continue to guide how Company do business and
improve the quality of life of the people Company serve. Company're growing in
dynamic ways and are looking for people w
ho will enable us to continue Company success. Company are looking for people
who are passionate, adaptable, self-motivated, team players and who reflect
Company ideology - "Rewrite rules. Retain values". Future Group is an equal-
opportunity employer. Company encourages people to join us from all walks of life.
To this end, Company implemented numerous training programs that provide
Company employees avenues for advancement. Company unflagging efforts have
ensured that over 80 percent of Company people have been positively impacted.
This has helped us identify and nurture Future leaders and bringing fresh energy and
perspective to the business.
Future Retail

25 | P a g e
Future Group was conceived as a force to drive domestic consumption and capture
every addressable need of Indian consumers. Future Group makes every effort to
delight its customers, tailoring store formats to changing Indian lifestyles and
adapting products and services to their desires.
The group is credited with creating some of India‘s most popular retail chains. The
hypermarket chain, Big Bazaar is ranked amongst the top 3 service brands in the
country by The Nielsen Company. Other retail chains include, department store
chain, Central, outlet stores chain, Brand Factory, sportswear chain, Planet Sports,
home improvement and consumer durables chain, hometown and Ezone,
supermarket chain, Food Bazaar, convenience stores chain, KB‘s Conveniently
Yours and a growing rural distribution network through Aadhaar.
As modern retail drives fresh demand and consumption in new categories, Company
strategy is based on a deep understanding of Indian consumers, the products they
want, and making these products available in every city, in every store format. Future
Group offers innovative offerings at affordable prices tailored to the needs of every
Indian household
 Pioneers in the India‘s retail space, or formats are household names in more
than 240 cities across the country.
 Company stores cover around 17 million square feet of retail space and
attract around 300 million customers each year

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 Future Retail Limited focuses on the hypermarket & supermarket business led
by formats like Big Bazaar, Easyday, Food Bazaar, KB‘s Conveniently Yours,
fbb, Foodhall, hometown & Ezone.
 Future Lifestyle fashion focuses on the fashion businesses with brands &
retail formats like Central, Brand Factory, Planet Sports, I Am in and all.
 Future Consumer Enterprise Ltd is group's integrated food company with
Food & FMCG brands & retail formats like & Aadhar. It also has interest in
Food Parks.
 Future Enterprises Limited leads the infrastructure and backend services end
of the Group
Future Group is fuelling a retail transformation in India and finding innovative ways to
drive growth. In every business that Company are in, in every engagement Company
have entered, in every relationship, Company human capital is the first point of
leverage. Company people give Future Group its energy, culture and ideas. At
Future Group Company see people as partners in the nation-building process,
shaping the India of their dreams.
Future Group aspires to be an employer of choice in Indian retail — offering exciting
new possibilities and encouraging people to rise up to new challenges every day.
Company engage people who are passionate about what they do, who want to make
a difference in the lives of customers, and who live Company brand pillars of
Indianans, valuing and nurturing relationships and leading positive change.
Company believes modern organized retail has the power to strengthen the
economy, create grass root employment and contribute significantly to social
inclusion. As India‘s premier retail player and one of India‘s leading home-grown
business houses, Future Group is present across the consumption value chain.
Through millions of customers and thousands of suppliers, Company is conscious of
the economic, social and environmental impact of Company activities.
Company believes the challenges of inequity in Company robust and growing
domestic economy need to be tackled through sustainable development.
Consequently, Company principles are focused on two main areas: integrating
sustainable development into business activities and promoting sustained economic
development for the country.
Future Retail is the flagship company of Future Group, India‘s retail pioneer catering
to the entire Indian consumption space. Through multiple retail formats, Company
connect a diverse and passionate community of Indian buyers, sellers and
businesses. The collective impact on business is staggering: Over 330 million
customers walk into Company stores each year and choose products and services
supplied by over 30,000 small, medium and large entrepreneurs and manufacturers
from across India. This number is set to grow.

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The home solutions segment include hometown and Ezone. Hometown is a unique
one-stop destination for complete home-making solutions. Company promise to
make homemaking an enjoyable and hassle-free experience with Company wide
array of products and services. Company offerings include a slew of living room
furniture, dining, bedroom furniture and furniture essentials, mattresses, modular
kitchens, home furnishing, décor, households and bath luxury.
Future Ventures:
Future Ventures, seeks to promote and participate in innovative and emerging
business ventures in India. The company intends to play a role in powering
entrepreneurship, by promoting or participating in diverse business activities,
primarily in ³consumption-led´ sectors in the country, which it defines as sectors
whose growth and development will be determined primarily by the growing
purchasing power of Indian consumers and their changing tastes, lifestyle and
spending habits. The company will also participate in businesses where it exercises
control or influence, and can add value as active shareholders, by utilizing the
experience and knowledge of the Future Group, and specifically its parent, pantaloon
Retailed
Future Consumer Enterprise Ltd is group's integrated food company with Food &
FMCG brands & retail formats like KB‘s conveniently yours & Aadhar. It also has
Interest in Food Parks.
FSC Supply Chain Solutions:
Means: - Future Supply Chain
It help full to do Retail services. Uses of FSC is
FSC Supply Chain Solutions team studies the business imperatives of customers
and designs customized supply chain solutions in collaboration with the customers
like:
• Supply chain consulting to define business needs and logistics opportunities.
• Distribution and Transportation network analysis and design
• Warehouse and Facility modeling and layout, including evaluation of
Infrastructure and mechanization needs
• Evaluation and implementation of Technology.
• Labor management opportunity assessment.
• Operational analysis and improvement

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What Is Future Supply Chain?
FSC (Future Supply Chain Solutions Ltd.) is India's first fully integrated and IT
enabled end- to- end Supply Chain and Logistics service provider in India. It provides
services to large corporate in Food & FMCG; Apparels, Footwear & Accessories;
Consumer Electronics & Hi- Tech; Automotive; Pharma and Light Engineering
domain.
Promoted by Future Group and Fung Capital, FSC has been a pioneer in
modernizing supply chain and logistics by implementing global best practices in the
Indian context. This has enabled FSC to provide customized Supply Chain Solutions
& Services which reduce Time- to- Market™ and Cost- to- Market™ of customers
These are Future Group Technology‘s. That‘s why the Group getting good profits
and running successfully.
Business Technology’s Services
Business Technology Services (BTS) is an IT Service provider focused on retail and
allied consumption sectors. This IT service provider arm of Future Group was
established in 2007 with a mandate to develop and deliver end to end technology
solutions to Group's retail, logistics and other businesses. Over the years BTS has
built strong solutions and delivery capabilities with significant traction across all key
retail formats of Future Group.
Currently operating from Mumbai and Ahmadabad we also have support personnel
across major cities like, Gurgaon, Kolkata and Bangalore. Through a robust vendor
partnership the team enables IT operations across the country. BTS has a state of
art centre with 400 seats in Ahmadabad – this is the primary delivery centre to
provide services. Business Technology Services has a unique network of service
model that innovatively integrates consulting, application development, infrastructure
and project management.
Future Group Brands
Our company maintains huge number of Brands in stores
Future Group has built an attractive portfolio of some of the fastest growing
consumer brands in India. This activity is led through Future Brands India Limited, a
specialized subsidiary company set up to create and build powerful brands that
address the aspirations of the new Indian consumer.
Fashion Brands
JOHN MILLER, RTG, BARE, DJ&C, SCULLERS, UMM, BUFFALO, INDIGO,
NATION.

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LEARNING AND DEVELOPMENT
Future Group addresses opportunities in the education, learning and skill
development space through Future Learning‘s three unique lines of business which
leverage the group‘s understanding of the consumer-centric business.
Future Ideas Of 2016
A New Year brings with it many new hopes, ideas and perspectives at the cusp of
2016
Mainly the Future group focuses on some of occasions
1. Festive feasts on Saturdays
(Weekends clubbed with festivals and a late festival schedule)
2. Lower Prices Guaranteed
(Achhe din a head?)
3. Wedding & no Mahurats
(The longest period of no mahurats)
4. Kitchen as assembly lines
5. Technology on Arms
(Wearable Devices)
6. Another Kumbh
(Godavari Kumbh mala gets nation‘s attention)
7. Cricket worlds cup 2015
(Watch it on your mobile)
8. Tirthas on Ganges
(Allahabad, Ujjain, Nasik, Haridwar)
The Future group sees this traditional time for conducting marketing. These are the
Future group‗s 2016 ideas.
Example
The Godavari Kumbh will celebrate on this year July month that‘s why the future
group wants to do market on rural areas in India. They want to sale some sort of
shampoos, soap‘s, like that this is the new kind of pre planed strategy.

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Empowering for women‗s
By promoting work and self – sufficiency for women, future group is advancing the
cause of women is society and collectively strengthen the fabric of communities.
Competitors of the Company
In Indian Retail market sector the Future Group is one of Top Company. The Future
group also have competition from some of National Retail company‘s .now find some
of companies.
• Reliance Retail
• ITC Retails
• Spencer‟s
• More Stores
These four companies are top most competitors for FUTURE GROUP.
Competitors for Future Group Retail
1. Reliance Retail
2. Birla Group Retail
3. K .Raheja Group
4. Wal-Mart.
Latest News & Events
Katrina kaif & Varun Dhawan are the new faces of fbb
BIG BAZAAR‘S The Great Indian Kitchen festival‘s back.
Company‘s Purpose:
Future Group was founded on a simple idea. Re write rules, retail values. This
fundamental belief created a new kind of market place forever transforming Indian
retail.
Need For the Study
In the understanding of various forms of business organisations and their operations,
practical and internship approach play an important role in addition to the regular
learning from the course delivery. In this connection it is felt that there is a need to
undertake an organisational study which enables the scholar to be familiar with the
profile of retail industry and profile and functioning of HOME TOWN , NOIDA and

31 | P a g e
keeping the main purpose of the study as to know the application of the theoretical
aspects in the course in the corporate environment and to gain first-hand experience
and expose to policies of the company.
Objectives of the Study
• To study the profile of retail industry.
• To know the profile of Home Town in general and of HOME TOWN , NOIDA
in particular.
• To understand the organisational structure of the company.
• To understand the working of the various departments of the company.
• To perform SWOT analysis for HOME TOWN .
• To offer suggestions and recommendations based on the study carried out.
Limitations of the Study
• Time is limited.
• As per the company rules many information was not disclosed.
• As the managers are busy in their daily schedules it is not possible for us to
spend more time in interaction and discussion with them.
• Sometimes respondents don‘t provide accurate information which may
influence the survey result.

32 | P a g e
The Company‘s home retail format
includes, Home Town and eZone. In
addition, the Company sells a wide
variety of home ware, kitchenware,
home fashion merchandize through its
Big Bazaar network. Home Town caters
to inspirational, trendy and
knowledgeable new home buyers as
well as replacement customers. Home
Town added 16 new stores, including in
12 new cities, taking its store count to
43 and number of cities it is present in to
21. These stores have a total
operational space of 1.3 Mn. Sq. Ft..
The entire Home Town range is now
available on www.fabfurnish.com, that was acquired by a group Company, and is also
available on a number of other online retailers. For its stores Home Town follows a hub-and-
spoke model with HT Express extending Home Town‘s reach and presence in new
catchments and smaller towns and suburbs. Home Town has now been introduced in a
number of Central stores with ―HOMETOWN @ Central‖ Concept. Furniture contributes
around two thirds of sales, while its exclusive range of Duracucine Modular Kitchens
contribute almost a tenth of the business and the rest comes from home ware and home
improvement products. Home Town also offers Design and Build service providing end to-
end services form interior decoration to execution and implementation.

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Home accessories are furniture items which are
easy to replace and easy to move, and include
almost any items that aren't strictly functionally
necessary in the decorated space. These
accessories include such items as curtains, sofa
sets, cushions, tablecloths and decorative craft
products, decorative wrought iron, and so on.
These items are commonly used in indoor
furnishings and layout and can include cloth items,
paintings, and plants.
Handicrafts, textiles,
collectibles, and things
such as lamps, floral items,
and plants re-combined to
form a new concept. Home
accessories vary according
to size and shape of room
space, the
owner's living
habits, hobbies,
tastes, and their
economic
situation
Decor, Gerenal merchandising Department

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Home improvement, home renovation, or remodeling is the process
of renovating or making additions to one's home. Home improvement
can be projects that upgrade an existing home interior (such as electrical
and plumbing), exterior (masonry, concrete, roofing), or other
improvements to the property (i.e. garden work or garage
maintenance/additions).
Home Improvement Department
Other Language the Home
Improvement Law defines "home
improvement" as the addition to or
alteration, conversion,
improvement, modernization,
remodeling, repair, or replacement
of a building or part of a building
that is used or designed to be used
as a residence or dwelling place or
a structure adjacent to that building;
or an improvement to land adjacent
to the building

35 | P a g e
Furniture Department
A couch, sofa, or settee is a piece
of furniture for seating three or more
people in the form of a bench, with or
without armrests, that is partially or
entirely upholstered, and often fitted
with springs and tailored cushions.
Although a couch is used primarily
for seating, it may be used
for sleeping. In homes, couches are
normally found in the family
room, living room, den, or the lounge.
They are sometimes also found in
nonresidential settings such as
hotels, lobbies of commercial
offices, waiting rooms, and bars.
A bed is a piece of furniture which is
used as a place to sleep or relax. Most
modern beds consist of a soft,
cushioned mattress on a bed frame, with
the mattress resting either on a
solid base, often wood slats, or a sprung
base. Many beds include a box spring
inner-sprung base, a large mattress-
sized box containing wood and springs
that provide additional support and
suspension for the mattress. Beds are
available in many sizes, ranging from
infant-sized bassinets and cribs, small
beds for a single child or adult, to large
queen and king-size beds designed for
two adults.
A table is an item of furniture with a flat
top and one or more legs, used as a
surface for working at or on which to
place things. Some common types of
table are the dining room table, which
is used for seated persons to eat
meals; the coffee table, which is a low
table used in living rooms to display
items or serve refreshments; and the
bedside table, which is used to place
an alarm clock and a lamp

36 | P a g e
Design–build (or design/build, and abbreviated D–B or D/B accordingly) is a
project delivery system used in the construction industry. It is a method to deliver a
project in which the design and construction services are contracted by a single
entity known as the design–builder or design–build contractor. In contrast to
"design–bid–build" (or "design–tender"), design–build relies on a single point of
responsibility contract and is used to minimize risks for the project owner and to
reduce the delivery schedule by overlapping the design phase and construction
phase of a project. "DB with its single point responsibility carries the clearest
contractual remedies for the clients because the DB contractor will be responsible for
all of the work on the project, regardless of the nature of the fault.
The traditional approach
for construction projects
consists of the
appointment of a designer
on one side, and the
appointment of a
contractor on the other
side. The design–build
procurement route
changes the traditional
sequence of work. It
answers the client's
wishes for a single point of
responsibility in an attempt
to reduce risks and overall
costs. It is now commonly
used in many countries
and forms of contracts are
widely available.
Design & Build Department

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A kitchen is a room or part of a room used
for cooking and food preparation in a dwelling or
in a commercial establishment. In the West, a
modern residential kitchen is typically equipped
with a stove, a sink with hot and cold running
water, a refrigerator, counters and
kitchen cabinets arranged according to a modular
design. Many households have a microwave
oven, a dishwasher and other electric appliances.
The main function of a kitchen is serving as a location
for storing, cooking and preparing food (and doing
related tasks such as dishwashing), but it may
also be used for dining, entertaining and laundry.
Modular Kitchen
Modular Kitchen is a term used for the
modern kitchen furniture layout
consisting of modules of cabinets made
of diversified materials which hold
accessories inside, which can facilitate
the effective usage of the spaces in a
kitchen hold accessories inside, which
can facilitate the effective usage of the
spaces in a kitchen
.
Kitchen Department

46 | P a g e
What is new at this Hometown?
Solid wood collection: This is a collection of select hand-crafted solid wood
furniture and accessories using materials like solid sheesham wood and rubber-
wood and the like. The line includes sofa sets, bed-sets, dinning sets, bar units,
occasional seating, stools and more. There is history, experience and love going
into each of these pieces. Each piece of furniture is Kiln-dried and termite treated,
so it ensures a lasting life. This Hometown will also have a Food Bazaar, which is
spread across 4000 sq.ft. Said, Mahesh Shah, CEO, Hometown, ―We believe
Hometown will revolutionize the way Kolkata‘s, and those from the neighboring
cities, shop for their homes. Hometown‘s promise to customers is a convenient
shopping experience, where they can get value as well as lifestyle products, across
a wide range of categories, all under one roof. The store has a good mix of products
for budget-buyers, aspiration buyers and lifestyle buyers, with an underlying
principle of keeping traditions alive in a contemporary world.‖
He added, ―Hometown will provide consumers in Kolkata, a single point destination
for all their home needs and a great mix of products with traditional as well as
modern designs, suitable to varied tastes and preferences. We are confident that
Kolkata‘s will find products, unlike what they have seen so far. Moreover, the
services like Design & Build that Hometown offers will surely enhance the value
proposition to our customers. ‖Hometown offers customers a unique, personalized
shopping experience. Every customer walking into the store is escorted around the
store by informative and helpful hosts and hostesses, who guide them about their
requirements. The look and feel of the store is casual and strikes a delicate balance
between aesthetics and functionality. Hometown will display products from all major
manufacturers from India and abroad. Customers will be given price, service and
product guarantees. If customers find any products that they have purchased,
cheaper elsewhere, they will be given a gift voucher of double the difference,
provided they bring an original receipt within two days of purchase of the product.
Hometown will also guarantee workmanship of the jobs that it undertakes, for one
year from the time the job is completed. Every product or service provided is backed
by the reliable manufacturers and service providers. In case of any manufacturing
defect, consumers will get the option to exchange or refund the product. Hometown
will also facilitate fast and easy consumer loans through „Future Money‟, for
purchases at Hometown.
Joint Ventures
Home Solutions Retail (I) Limited has also entered into two equal joint ventures
with India‘s market leader in the retail industry lighting segment and the fastest
growing lighting solutions provider for the retail consumer, Asian Electronics.
Asian

47 | P a g e
Electronics, with a market share of over 60% in the segment brings to the table its
vast technical and manufacturing expertise.
Asian Retail Lighting Limited, provides efficient and energy conserving lighting
solutions to the retail sector. Apart from Pantaloon Retail, some of the customers
serviced by the venture include Spencer‘s Retail, Infinity Retail, Home Care Retail,
Provogue, Welspun, Metro Cash & Carry and Food World.
Home Lighting India Limited provides lighting solutions for the retail consumers‘
home needs. Banking on a strong distribution model, the front-end includes retailing
of all lighting products at the company‘s formats, specialized lighting stores, electrical
distributors and major sanitary and hardware distributors.

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Who is Consumer?
Introducation of Consumer Behaviour
Characteristic of Consumer Behaviour
Five Thinking Sense
Purchasing Processs
STP Process
Introducation of Customer Engagement
Ways of Customer Engagement
Customer Engagement Process
Need of study
Ojectes of Study
Limitation of Study

49 | P a g e
Consumer
An individual who purchases products and services from
the market for his/her own personal consumption is
called as consumer
Consumer is a KING

50 | P a g e
Consumer Behaviour
Real world consumer behaviour
Introduction
As the need for new patterns of
consumption increases, so do efforts to
understand consumer behaviour, with a
more nuanced understanding beginning to
emerge based on shared insights from a
huge number of disciplines – including
psychology, economics, sociology,
marketing, neuroscience, evolutionary
biology to name but a few. Over time, as
this more sophisticated level of
understanding has developed, evidence
has emerged that calls to account some of the most pervasive and important models
previously used to explain behaviour. A wealth of evidence suggests that ‗real world‘
behaviour (a term used in this report to refer to the actual, observed behaviour of
individuals in day-to-day life) differs dramatically from that predicted by these
models. The evidence presented in this review draws largely on two disciplines –
marketing and behavioural economics – and calls into question perhaps one of the
most pervasive, if not important, assumptions in standard economics: that of ‗rational
man‘. Presented below are the results of this review. Evidence from both behavioural
economics and marketing, as well as other relevant disciplines like psychology and
sociology, is integrated under headings that set out some of the main factors that
drive consumer behaviour. The review is set out with reference to a series of key
texts, which readers are advised to read alongside this report.
The aim of this review is not to reproduce the comprehensive arguments and
evidence set out in these texts but to build upon these, setting out new evidence
where appropriate.
1. Kahneman, D. (2003) A Perspective on Judgment and Choice: Mapping
Bounded Rationality. American Psychologist. 58 (9), 697 – 720. Daniel Kahneman‘s
paper (2003) presents over three decades‘ Nobel-prize winning research exploring
the concept of ‗bounded rationality‘ - the ways in which decisions diverge from those
predicted by rational choice theory. It focuses largely on ‗cognitive economics‘ (it
does not, for example, consider the impact of social norms on decision-making), but
provides a comprehensive summary of many of behavioural economics‘ most well-
researched phenomena.

51 | P a g e
2. Jackson, T. (2005) „Motivating sustainable consumption: a review of
evidence on consumer behaviour and behavioural change’. A report to
the Sustainable Development Research Network. January 2005. Several more
recent reviews of behaviour change and behavioural models exist but Prof. Tim
Jackson‘s 2005 review of consumer behaviour remains perhaps the most
comprehensive and accessible, and the foundation on which the majority of more
recent reviews have largely been based. The report sets out in an accessible way
the main drivers of behaviour and theoretical models that attempt to explain it, and
does so with consistent critiques of rational choice.
3. Cialdini, R. B. and Goldstein, N. J. (2004) Social influence: compliance
and conformity. Annual Review of Psychology. 55, 591 – 621. A wide-ranging
summary of evidence relating to the ways in which people seek to comply with
requests and demands, and to conform to social norms. The article summarizes
recent research (1997 – 2002) and considers the ways in which three goals –
accuracy; affiliation and maintenance of a positive self-concept – drive individuals to
comply with requests and conform. Findings related to marketing are largely implicit
but the articles serve as a valuable summary of many of the principles that underlie
advertising and consumer-focused persuasion.
4. McKenzie-Mohr, D. (2000) ‗Fostering Sustainable Behaviour through
Community-Based Social Marketing’. American Psychologist. 55 (5), 531 –
537.2 The findings that have emerged from the literature reviewed to date point
towards the need for more nuanced policy-making that can take into account the
different barriers to and drivers of behaviour in any given situation. Doug McKenzie-
Mohr‘s article sets out a clear, step-by-step guide on how to adopt a community-
based social marketing approach when planning interventions (McKenzie-Mohr
2000). Social marketing is already informing SCP policy-making within Europe (e.g.
Defra 2008) and is likely to continue to do so. Discussions in the literature review of
policy implications will update McKenzie-Mohr‘s article with reference to recent
research and also policy interventions referenced in behavioural economics. Or, for
even more information, the book: McKenzie-Mohr, D. (2000) ‗Fostering Sustainable
Behaviour Through Community-Based Social Marketing.
5. Amir, O. et al. ‗Psychology, Behavioural Economics, and Public
Policy’. Marketing Letters. 16 (3/4), 443 – 454. Co-authored by a number of leading
behavioural economists, this paper sets out a number of ways in which learning from
behavioural science can inform policy. It considers three examples from existing
policy, before discussing some of the challenges that face policy informed by
psychology. Finally, the paper advocates attempting to change policy through the
utilisation of emerging findings from behavioural economics and highlights the
importance of trialing policies through local level pilots. How do consumers really
make decisions? Standard economic thought often contends that consumer

52 | P a g e
behaviour is most cost effectively influenced by policy through the provision of
information and choice; provide enough information and a wide array of products
with which consumers can satisfy their preferences and markets will do the rest. In
reality, as this section of the report begins to discuss, consumer decision-making is
subject to a host of internal and external factors that bias decisions and over-turn
preferences. The repeated buying of products leads to shopping habits, leading to
certain products (particularly, for example, food products) being bought almost
automatically. Consumers tend to avoid losses and eagerly take advantage of
promotions and product trials, making the offer of something for ‗free‘ irresistible.
Even the method of payment used to buy a product can have a fundamental impact
on the amount someone is willing to pay for it. What follows is a discussion of some
of the evidence that highlights the often surprising nature of consumer behaviour.
The chapter then considers in greater detail some of the internal and external factors
which drive this behaviour. Information provision, reliability and sources A common
feature of standard economic thought is the belief that when individuals make poor
choices it is the result of misinformation or a lack of information. As such, the
information-deficit model of behaviour change (or ‗knowledge-deficit‘ model)
contends that poor decisions are made because people lack the information that
would enable them to make a better choice. Across many areas of consumer policy,
information provision is favored as a policy tool because of its marginal cost
(compared to other options) and because it is assumed that too much information
can never be harmful (BRE and NCC 2007). However, both marketing and the
behavioural sciences have proven the information-deficit model to be deeply flawed.
16 In part, this stems from the fact that consumers rarely search out, read or properly
digest all of the information that is available to them when making a decision. The
type, complexity and amount of information provided, and the way in which it is
presented, all have a significant impact on the likelihood of people reading and
understanding it. In the UK, research has found that consumers are unwilling to
spend time reading a lot of available information (especially ‗small print‘) and that the
formal, legal language of much information is confusing. Often, people think that
information is being provided because the provider of the information is legally
obliged to do so, rather than because it is beneficial to the consumer (BRE and NCC
2007). For example, consumers might assume that detailed information about the
specification of a new television is provided because the manufacturer has an
obligation to provide it. Rather than actually helping consumers make informed
choices, the sheer volume of information now found on products and packaging can
make understanding information harder rather than easier.
‗200Hz clear LCD‘ ‗4 HDMI‘, ‗DVB-T‘, ‗Motionflow 220Hz‘ ‗Xross media bar‘ ‘24P true
cinema‘…Needless to say, we know from research that there is hardly any consumer
understanding of the meaning of these features, nor of their consumer benefit‘ (van
Veen 2009). To highlight two extreme cases, the UK‘s Better Regulation Executive
identify a toaster sold with 52 different safety warnings and a consumer credit
agreement that took people 55 minutes to read in full (BRE and NCC 2007).

53 | P a g e
Consumers did not find these helpful. Another reason that real world consumers
might not process all the information available to them is if the benefits of processing
the information are thought to be limited; for example, if the consumer sees no
personal benefit from choosing a product with a high energy efficiency rating over a
product with a low rating. Three years after its introduction, the EU energy label was
found to have little effect in southern European countries but a much greater effect in
northern countries, where consumers have been concerned about energy use for a
much longer period of time (Sammer and Wustenhagen 2006).
Fostering
Sustainable
Behaviour
through
Community-Based
Social Marketing’
Perspective on
Judgment and
Choice
‗Psychology,
Behavioural
Economics, and
Public Policy’
Consumer
Behaviour and
Behavioural
Change’
Social Influence:
Compliance and
Conformity
Fact And Finding
That Describe
Consumer
Behaviour Influence
By Various
Characteristic

54 | P a g e
Although energy efficiency labels might appeal to consumers concerned about their
environmental impact, consumers are more likely to process the information if they
see a benefit from doing so. For consumers who are concerned about protecting the
environment, knowing they are purchasing an energy efficient product may be
enough to motivate their purchase; for other consumers, the personal benefits – in
terms of reduced running costs or total lifetime savings – may prove more
motivating. Similarly, a year-long study into the impact of front-of-pack nutritional
labeling of food on consumer behaviour in the UK found a marked difference
between self reported levels of label use when shopping and actual observed
consumer behaviour. While many people claimed that they were influenced by
nutritional 17 labels, in reality it was largely those concerned with healthy-eating – or
following some kind of special diet – who used the labels. In most cases, other
external factors (for example price, special offers, brand loyalty and the type of
product) all played an influential role in purchasing decisions (FSA 2009). It has been
suggested that information provision as a policy option will therefore be most
effective when it makes it easier for consumers to process information about
expensive products (i.e. it lowers the costs associated with processing the
information) (OFT 2008). The other reason the information-deficit model proves to be
ineffective at motivating behaviour change is because of the wealth of other factors –
in addition to information – that motivate individual action. Policies that fail to
accommodate these other factors, for example by considering the impact of the
behaviour of other peoples – are less likely to prove effective. For example, in the
summer of 2000, California experienced an energy crisis with demand outstripping
supply; prices rocketed and power outages were widespread. Within this context,
Schultz et al. (2007) tested a series of different interventions that encouraged people
to conserve energy in their homes. Across several approaches, the least effective
method was providing information. Yet this remained the method most frequently
employed by policy (Schultz and Estrada-Hollenbeck 2008). Other considerations
are related to the way in which information is communicated. From as early ago as
the 1940s, research has shown that mass media is very rarely able to directly
influence more than only a small part its audience. In fact, it is face-to-face contact
with others that influences most people (Weenig and Midden (1991), and see Fell et
al. (2009) for a current review of literature on influence via social networks). 3.2.2
The ‗paradox of choice‘ Consumer autonomy, or the right of consumers to make their
own choices, is one of the most fundamental features of classic free market
economics, something psychology would initially appear to support as beneficial.
The provision of a right– to-choose has been found to positively link to increases in
perceived control, intrinsic motivations and life satisfaction, as well as proving
beneficial even when the choice itself is trivial (Iyengar and Lepper 2000). However,
when faced with too much choice, people have difficulty managing their decisions
and both satisfaction and the ability to easily make preferential decisions are
reduced. Schwartz (2004) has called this ‗the tyranny (or ‗paradox‘) of choice‘.
Research shows that as choice increases, consumers consider fewer choices,

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process less overall information and evaluate information differently. 18 ‗Choice
overload‘ hypothesis (Iyengar and Lepper 2000) proposes that while the provision of
extensive choices can initially be seen as desirable, it ultimately proves
demotivating. In a series of studies exploring the way in which people buy jam they
found that people proved much more likely to purchase a product when offered a
small selection of options (6) than a much more extensive set of options (24 – 30).
Their findings support those from cognitive psychology which contend that our short-
term memory can generally handle 7 (+/- 2) options when making choices
(Productivity Commission 2008). Consumers may also be less happy with a decision
when they closely consider their options than when they do not. If I am presented
with one good option, I will be happy. But if I am presented with two good options, I
am more likely to critically evaluate both and to notice their disadvantages.
Whichever option I ultimately choose, I will be aware of its disadvantages –
something that might not be the case if I only had one option to choose from (Hsee
and Tsai 2007). Linked to loss aversion, the opportunity costs (the opportunities
presented by the options that we choose to reject when making a choice) can gain
excessive prominence in decision-making. Given that opportunity costs tend to
reduce the desirability of the most preferred choice, it can be the case that the more
choice there is, the more opportunities we will feel have been lost and the less happy
we will be with our choice (Schwartz 2004). Hsee and Tsai (2007) attribute this to the
emotional attachment that can result from deliberation; close consideration of a suite
of options can lead consumers to form an emotional attachment to all options,
including those that have to be foregone. Choosing one option feels like losing the
others. Similarly, when faced with multiple undesirable options, consumers are
happier if someone else makes the choice for them than if they have to make the
choice themselves. For example, if someone is on a diet and has to choose between
a selection of meals that
do not appeal to them,
they will be happier if
someone else chooses
the meal for them (Hsee
and Tsai 2007). As the
complexity of making a
choice increases,
people simplify their
decision making
processes and are more
likely to rely on mental
rules of thumb, or
‗heuristics‘, to speed up
decision-making. Such
heuristics – or mental
‗rules of thumb‘ – are

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often helpful and indeed rational; they allow us to reduce the effort (or 'transaction
costs') associated with decision-making and provide ‗rough and ready‘ preference
assessments. When heuristics become more problematic, from an economic point of
view, is when responses based on heuristics are biased and when these biases are
systematically repeated. Related to choice and information provision, product
branding and recognition provide one example of when such a heuristic may
influence consumers. Branding and the recognition heuristic As the complexity of
making a choice increases, people simplify their decision making processes and are
more likely to rely on heuristics. Related to information provision, product branding
and the judgment heuristics discussed earlier (Kahneman 2003), recent evidence
suggests the existence of a ‗recognition heuristic‘ (Goldstein and Gigerenzer 2002).
When forced to make a decision quickly, consumers often make decisions based
purely on product recognition, even if the consumer knows nothing about the product
(Ariely 2008; Richter and Spath 2006). The importance of recognition, and the extent
to which consumers are able to access information about products and brands even
when attention levels are low, is knowledge of increasing importance to marketing. In
the past, marketing relied heavily on ‗product recall‘ (the extent to which a consumer
remembered having seen or heard about a product) as indicative of successful
marketing. If lots of people recalled having seen an advert, the ‗recall rate‘ was taken
as a marker of success. More recently, influenced by advocates of the ‗primacy of
affect‘ (Zajonc 1984), marketing is realising that brand recognition, rather than an
individual‘s ability to necessarily recall seeing an advert or brand, is actually a better
predictor of brand favorability. When brand information is subject to what Heath
(2001) has termed ‗Low Attention Processing‘ – i.e. the automatic cognitive
processing that Camerer et al. (2005) identified this can trigger an automatic
emotional response, which can in turn lead to an intuitive choice (Penn 2005). If I am
shopping in a rush and my thoughts are distracted, I might prove more likely to grab
a product or brand that I recognise, regardless of whether I can actually recall seeing
an advert about it and without even noticing what other information is on the label
(for example, about the fat content or production methods). Market research has
used CCTV to monitor the way in which people buy beverages in convenience stores
and found the vast majority made a decision within two minutes, going straight to a
familiar brand. One conclusion of this is that manufacturers are better advertising out
of store than attempting to do so in-store (The Economist, 2008). The impact of
brand loyalty is not confined to point of purchase. A frequently cited example in both
behavioural economics and marketing literature comes from Princeton University,
where a research team explored brain activity in participants while they drank
branded cola. While some participants drank blind, others were made aware of what
brand they were drinking and were shown the product packaging. The study found
that brand awareness had a dramatic influence on expressed behavioural
preferences; people said they liked exactly the same product much more if they
thought that it was produced by a known brand. What was particularly important in
the study was that FMRI brain scans were used to monitor brain activity 20 during
the tests. These found that activity in the part of the brain associated with emotion

57 | P a g e
and affect were greater when participants knew they were drinking the branded
product – not only do people report enjoying consuming a branded product more, but
their brains exhibit responses commensurate
The term "consumer behavior" refers to actions and decisions that factor into a
customer's purchase. Researchers, businesses and marketers study consumer
behavior to understand what influences a consumer's shopping preferences and
selection of products and services. Multiple factors affect consumer behavior, among
them economic status, beliefs and values, culture, personality, age and education
(Kotler, 2004). Findings on consumer behavior are used to develop methods and
products that will boost company performance and sales. Customers are becoming
more powerful, more knowledgeable and more sophisticated, and research into
modern consumer behaviour is increasingly important for businesses according.
Advertising to attract consumers, providing better environment, product, services and
policies is important in improving today‘s consumer experience to support
businesses in retaining customers. This study seeks to determine and explain the
effectiveness of internet advertising in stimulating consumer response.
According to Warner,
consumer behaviour is the
study of individuals, groups,
or organizations and the
processes they use to
select, secure, and dispose
of products, services,
experiences, or ideas to
satisfy needs and the
impacts that these
processes have on the
consumer and society
(Malcolm). Warner
emphasized the
consumption related
behaviours are often undertaken collectively. For example, some activities performed
by individuals but consumed by a family or group of people, similar as 14
organization purchasing activities usually followed by group decisions. Beside this
point, the consumer behaviour is not just purchasing, but has usage and disposal the
goods, this type of information always be useful for company to make marketing
decisions (Malcolm). It blends elements from psychology, sociology, social
anthropology and economics, and attempts to understand the decision-making
processes of buyers, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioural variables in an attempt
to understand people's wants, and also tries to assess influences on the consumer
from groups such as family, friends, reference groups, and society in general. This

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definition clearly brings out that it is not just the buying of goods/services that
receives attention in consumer behaviour but, the process starts much before the
goods have been acquired or bought. A process of buying starts in the minds of the
consumer, which leads to the finding of alternatives between products that can be
acquired with their relative advantages and disadvantages. This leads to internal and
external research. Then follows a process of decision-making for purchase and using
the goods, and then the post purchase behaviour which is also very important,
because it gives a clue to the marketers whether his product has been a success or
not (Malcom). The black box model shows the interaction of stimuli, consumer
characteristics, decision process and consumer responses.
It can be distinguished between interpersonal stimuli (between people) or
intrapersonal stimuli (within people). The black box model is related to the black box
theory of behaviourism, where the focus is not set on the processes inside a
consumer, but the relation between the stimuli and the response of the consumer.
The marketing stimuli are planned and processed by the companies, whereas the
environmental stimulus is given by social factors, based on the economical, political
and cultural circumstances of a society. The buyer‘s black box contains the buyer
characteristics and the decision process, which determines the buyer‘s response.
Measuring customer behaviour is a crucial part of any business. Knowing what the
consumer wants and how he acts is vital in terms of product design, and marketing
(Todd, 1997). Assessment of consumer behavior in specific situations, using
observational and physiological methods, is becoming increasingly important in
understanding conscious and unconscious consumer behavior. An increased
understanding of consumer behavior may result in the development of improved
consumer products and in more healthy dietary patterns. A growing number of
techniques is available to assist researchers in measuring various aspects of
consumer behavior such as walking patterns, product selection, meal composition,
and eating/drinking. Due to advances in digital video, sensor technology and
computer speed, complex measurements of behavior and physiology are now
possible. Integration of these techniques allows multimodal measurements. With the
growing number of techniques, the challenge for the researcher to choose the right
solution becomes larger. There are different ways of measuring consumer
behaviour, depending on the interest. Regularly conducting market research allows
businesses to know their customers, and take them into account when making
business decisions. This greatly improves business performance, and profits.
Common measurements includes, conducting a survey to determine consumer
behaviour. There are two main types of consumer survey: qualitative or quantitative.
Qualitative studies involve asking a few consumers a lot of in-depth questions.
Quantitative studies involve asking lots of consumers a few questions. The latter
would be better for determining the market for a totally new product, since you only
need to find out if people would buy it. If you are amending a product, or making one
similar, a qualitative study would allow you to gain more detailed information.
Similarly, consumer behaviour would be measured by observing consumers going

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about their business within permitted stores or shopping malls. By watching
consumers, it is possible to discern a great deal of information about their behaviour.
Information such as optimum height and location of a product and store layout is all
gleaned from observational consumer behaviour measures. Other techniques
involve using raw data to provide a measurement tool. For example, releasing a
new product to the market, and observing if it is bought regularly in conjunction with
another 16 product. If so, then an assumption can be made that it has a similar
demographic to the second product. Using the raw data to determine what time of
day, or weather, or time of year people buy a product gives information on consumer
behaviour. Using separate objective and subjective data obtained from an interview
or survey. The primary data from respondents is used to make objective judgements,
which are free from bias.
Consumer behaviour in the real world often differs from that predicted by economics
and policy. Drawing together evidence from behavioural economics and marketing,
this project sought to explore consumer behaviour relating to the purchasing of
environmentally-preferable products. The project‘s research findings are based on
the results of a review of behavioural economics and marketing literature, and
additional research with marketing professionals. Contrary to the belief of many
economists, consumers very rarely weigh-up the full costs and benefits of their
purchasing decisions. Instead, they are strongly influenced by emotional factors, the
behaviour of other people, by habits, and by the use of mental short-cuts, which all
help to speed up decision-making. Rather than being consistent, consumer
preferences have also been shown to be inconsistent, changing over time and
according to the situation and the way in which information is presented. In turn,
while information provision and choice are important, neither necessarily leads to
improved consumer decision-making or changes in consumer behaviour. A common
feature of standard economic thought is the belief that when individuals make poor

60 | P a g e
choices it is the result of misinformation or a lack of information. Both marketing and
the behavioural sciences have proven this ‗information-deficit‘ model to be deeply
flawed. In part, this stems from the fact that consumers rarely search out, read or
properly digest all of the information that is available to them when making a
decision. More fundamentally, the model neglects the wealth of other factors that
determine individuals‘ behaviour. The most obvious finding to emerge from the
research is that policy must take into account all of these different factors if it is to
effectively influence consumer choice. An improved understanding of consumer
behaviour gives policy-makers a wider range of policy instruments with which to
achieve policy objectives. Used in the right circumstances, these instruments are
likely to be more cost-effective than more traditional policy instruments. Policy should
also remember consumer behaviour is both context- and product specific. While the
existing evidence on consumer behaviour contained in this report provides guidance
on how people make choices, policy-makers need to remember that consumer
responses will vary across product groups and policy areas. The six short 'policy
briefs' produced to accompany this report provide the key pieces of policy-relevant
information and advice on consumer behaviour in relation to 5 purchasing (and
sometimes use) of: private vehicles, white goods, consumer electronics, food
and drink, utility contracts.
Key findings: what do we know about consumer behaviour?
Consumers rarely weigh up all the costs and benefits of choices. Instead, purchasing
decisions may be made automatically, habitually, or be heavily influenced by an
individual‘s emotions or the behaviour of others. This also means that consumers
tend not to use all of the information available to them when shopping. Instead,
people are more likely to read information when they perceive a benefit from doing
so.
 Consumers use mental short-cuts to help speed up decision-making. These
short-cuts can distort consumers‘ decisions. Short-cuts can include relying on
labels or brand names that are recognized, and being influenced by the way
in which information is presented and the context in which a decision is made.
 Consumers respond more to losses than gains. This means people are more
reluctant to give something up or suffer loss than they are motivated by
benefits of equal value. This aversion to loss has a significant impact on the
way in which people interpret information and can lead to consumers avoiding
making choices altogether.
 Consumers value products much more once they own them. In addition, the
value placed on a product is inconsistent. It can vary over time, and can be

61 | P a g e
affected by the previous cost of the product and the emotional attachment
someone places on a product. This makes people reluctant to trade in old
products, even when it would be cost-effective to replace them.
 Consumers place a greater value on the immediate future and heavily
discount future savings. This impacts on the way in which consumers value
the efficiency and lifetime costs of appliances.
 Too much choice can be overwhelming to consumers, making decision-
making difficult. As choice increases, consumers may consider fewer choices,
process less overall information and evaluate information differently. When
choice is particularly excessive, consumers may actually avoid making a
choice altogether.
 Consumers are heavily influenced by other people. This might take the form
of an indirect influence, for example from seeing neighbours or friends buying
a product, or a more direct, explicit influence, for example when a salesperson
persuades someone to buy a certain product. Nearly all consumption choices
are subject to some kind of social influence.
 Consumers use products to make a statement about themselves. Products
meet far more than just a functional need; they make a statement about a
person‘s identity and about the type of person they are and would like to be.
One of the most important lessons from marketing is that people buy products
for very 6 different reasons; for example, while some people may be
motivated by concern for the environment, many others will not. Key findings:
implications for product policy In light of these findings, the project identified a
number of opportunities and implications for the design of more effective
product policy:
 Reconsider the impact of price. The impact that price has on consumer
behaviour can be influenced by in-store marketing, such as special offers, by
the prices of similar products and by consumer perceptions of changes in
price. Policy should work with retailers to encourage price promotions on
environmentally-preferable products. Although price incentives may initially
cause consumers to react to price changes, consumer valuations of prices
tend to change over time. This means that as consumers adapt to higher
prices, initial changes to consumer behaviour may not be maintained.
Financial levers that increase over time can overcome this problem.

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 Help consumers consider long-term costs. Consumers have a tendency to
overvalue the short-term and undervalue the future so tend not to consider the
long-term running costs associated with products. Policy could work with
retailers to ensure that the long-term costs of products, rather than just the
purchasing price, are highlighted to consumers.
 Recognise the importance of recognition. Consumer choice is often driven by
recognition of products, brands or labels. Labels need to be consistent and
easily recognisable, something which the current colour-coding system used
within the European energy label will aid. Future labeling schemes should
take advantage of the fact that consumers may already recognise ‗A‘ rated
products as the most energy efficient. A ‗frontrunner‘ approach, whereby
classes are updated periodically so that the most energy efficient products are
always awarded an A label, would help to maintain this existing recognition.
 Reconsider information provision. The way in which messages are framed
plays an enormous part in the way in which consumers interpret that
information. Information is also much more likely to be taken notice of by a
consumer if perceived as beneficial. Present information in ways that appeal
to consumers, recognising that this may differ according to consumers and
products. Policymakers need to also recognise that product information
reaches consumers through numerous routes: consider the role of
intermediaries (like salespersons) and new Internet-based information
sources on consumer behaviour.
 Make it easier to make choices. This may mean making it easier for
consumers to research their purchases, for example by improving Internet-
based price comparison sites. It could also mean greater ‗editing‘ of the
choices that consumers face, for example by removing the unhealthiest or the
most environmentally damaging products from the market.
 Fines may be more effective but incentives are preferred. People feel the loss
from a visible fine (or surcharge on a price) more than they value gains from
an incentive. The difficulty is that, because individuals are loss averse, they
are equally averse to policies that suggest future losses. Policies that fine
people are likely to be less publicly acceptable for precisely the same reason
that they are likely to prove more effective.
.

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Changes in Trolley from Traditional to
modern

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 Allow consumers to change their minds. Often consumers make poor
decisions because they are under pressure to make a decision. ‗Cooling off
periods‘ provide consumers with the space to calmly consider the costs and
benefits of a purchase, away from the pressure of a sales environment. This
is especially useful for high value purchases, like cars or expensive
electronics, where the influence of salespersons in-store is known to be
powerful.
 Remember that all consumers are different. Gender and income levels impact
on product choice, as do attitudes, values and beliefs. While some people
may carry out extensive information searches before shopping, others may be
content to decide in-store or to listen to the advice of a sales person. No
single policy intervention is likely to change the behaviour of all consumers.
Instead, a mix of policies will be the most effective way of influencing different
consumers. Key findings: implications for consumer policy and research In
addition, the project identified a number of key findings related to consumer
policy and research more broadly:
 Learn from the world of marketing. Much can be learnt from marketing about
consumer behaviour. One important lesson is that consumers are
heterogeneous, which means that a targeted approach to policy design,
based on audience segmentation, can capitalise on this heterogeneity.
Another potentially effective 8 policy tool would be interventions that alter the
ways in which products are marketed. At one extreme, this could include
restrictions on marketing practices. Perhaps more effectively, it could mean
working with retailers in ways that encourage them to market certain products
or services in order to promote uptake.
 Pilot policies in the ‗real world‘. Accurate, reliable information about how
consumers will react to different policies is difficult to collect, particularly prior
to the implementation of policies. Policy-makers will need to be smart in how
they obtain this information. Policy pilots and trials provide an opportunity to
observe consumer behaviour in a real world setting.
 Improve policy evaluation. Building knowledge of consumer behaviour in
response to policy instruments will require better evaluation of applied policy
instruments. To be useful, that evaluation will need to examine the impacts of
instruments on the drivers of consumers‘ behaviour, not only the outcomes.
New ‗real world‘ approaches to evaluation are required.

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 Develop an international evidence base. Effective design of consumer policy
in this area would be supported by exchange of information on drivers of
consumer behaviour and evaluations of policy instruments across the EU and
other countries. Ways to promote this sharing should be put in place within
Member States, or at EU level.
 Remember that all consumer policy attempts to change behaviour. Critiques
of policy-making based on insight from behaviour economics sometimes
accuses such policies of being overly paternalistic, leading to accusations of
the ‗nannystate‘. Policy-makers should not be put off by such accusations.
Policy instruments that are uninformed by research from behavioural science
are not necessarily less paternalistic, ‗they are simply less likely to be
effective‘.

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Consumer Characteristics
Consumer characteristics affect how consumers perceive and react to the stimuli.
Consumers are shaped to some extent by the environment in which consumers live
and consumers influence environments through consumer behaviors in turn.
Consumer purchasing decisions are strongly swayed by culture, social, personal,
and psychological characteristic, Marketing and Other Stimuli
•Marketing: Product, Price, Place, Promotion
•Other: Economic, Technological, Political, Cultural Consumer's black box
•Consumer Characteristics: Culture, Social, Personal, Psychological
•Consumer Decision Process Consumer's Responses
•Product choice
•Brand choice
•Dealer choice
•Purchase amount
•Purchase Timing
•Purchase timing

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Characteristics Influencing
Consumer Behavior Source: Kotler and Armstrong16 Cultural Characteristics
Cultural factors that exert intensely influence on consumer behavior consist of
culture, subculture, and social class factor. Culture According to Assael, culture is
the values, norms, and customs that a person learns from society and results in
common patterns of behavior within the society. Schiffman and Kanuk also defined
culture as ―the sum total of learned beliefs, values, and customs that serve to direct
the consumer behavior of members of a particular society‖. Members of culture
share beliefs, values, norms, and customs which form members‘ attitudes and
behavior as consumers. Cultural beliefs and values interpose in economic decisions
made by consumers. Culture is learned unlike inborn biological characteristics.
Members of culture acquire a set of beliefs, values, norms, and customs from social
environment which make up culture at an early age. Families outline the culture
values of children. The values then passed on to be reflected in children‘s attitudes
and behavior. Cultural influences on purchasing behavior may greatly differ from
country to country since every society has its own culture. Therefore, change in
culture or culture shift affects change in consumer purchasing behavior. Subculture
Smaller subcultures exist in each culture. Specific subculture members hold beliefs,
values, norms, and customs that set the members aside from other members in the
same society. Moreover,
•Culture
•Subculture
•Social class Social
•Reference groups
•Family
•Roles and status Personal
•Age
•Occupation
•Economic situation

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