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Amrita Shrivastava BBA-3rd Year

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The Student Amrita Shrivastava is a Final Year Student of Dezyne E' cole college doing her BBA. This project has been undertaken by the student during her Summer Internship at Future Group,Home Town.The Topic of her Internship is Customer Behavior& Customer Engagement.

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Amrita Shrivastava BBA-3rd Year

  1. 1. 1 | P a g e 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
  2. 2. 2 | P a g e Amrita Srivastava, Bachelor of Business Administration Dezyne E’ Cole College www.dezynecole.com
  3. 3. 3 | P a g e 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
  4. 4. 4 | P a g e Training Certificate
  5. 5. 5 | P a g e 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
  6. 6. 6 | P a g e 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.
  7. 7. 7 | P a g e 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)
  8. 8. 8 | P a g e 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
  9. 9. 9 | P a g e 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
  10. 10. 10 | P a g e 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.
  11. 11. 11 | P a g e “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
  12. 12. 12 | P a g e 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
  13. 13. 13 | P a g e 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
  14. 14. 14 | P a g e 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
  15. 15. 15 | P a g e 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.
  16. 16. 16 | P a g e 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
  17. 17. 17 | P a g e 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
  18. 18. 18 | P a g e 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
  19. 19. 19 | P a g e 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.
  20. 20. 20 | P a g e 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
  21. 21. 21 | P a g e • 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.
  22. 22. 22 | P a g e 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.
  23. 23. 23 | P a g e  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
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  25. 25. 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
  26. 26. 26 | P a g e  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.
  27. 27. 27 | P a g e 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
  28. 28. 28 | P a g e 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.
  29. 29. 29 | P a g e 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.
  30. 30. 30 | P a g e 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. 31. 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. 32. 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.
  33. 33. 33 | P a g e 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
  34. 34. 34 | P a g e 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. 35. 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. 36. 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
  37. 37. 37 | P a g e 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
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  46. 46. 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. 47. 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.
  48. 48. 48 | P a g e 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. 49. 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. 50. 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. 51. 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. 52. 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. 53. 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. 54. 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,
  55. 55. 55 | P a g e 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
  56. 56. 56 | P a g e 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. 57. 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
  58. 58. 58 | P a g e 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
  59. 59. 59 | P a g e 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. 60. 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. 61. 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.
  62. 62. 62 | P a g e  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. .
  63. 63. 63 | P a g e Changes in Trolley from Traditional to modern
  64. 64. 64 | P a g e  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.
  65. 65. 65 | P a g e  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‘.
  66. 66. 66 | P a g e 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
  67. 67. 67 | P a g e 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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