Consumer Behaviour on purchase of NIKE shoes with comparative analysis

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Consumer Behaviour on purchase of NIKE shoes with comparative analysis

  1. 1. RESEARCH METHODOLOGYResearch DesignThe research design is exploratory and descriptive in nature as it involves studying the consumerbuying behaviour of sports shoes, their perceptions about various sports shoe brands, theirmotives of purchase, their attitude towards the brand, their perceived risks associated with thebrand, brand association and customer memory, role of reference groups.Scope of the studyThe study is limited to Delhi/NCR Region.Method of Data CollectionThe primary data was collected with the help of a structured, electronic questionnaire. Secondarydata was collected from journals, books & research papers with a view to supplement theprimary data. The study of secondary sources made the structuring of questionnaire easy.Sampling Plan1. Universe of the study: For this project all the people who wear Sports wear forms theuniverse.2. Sampling frame: In this research study, sampling frame comprises of friends, families andrelatives.3. Sampling technique: The sampling technique applied is convenient and judgementalsampling technique.Sample SizeThe sample size undertaken in this research study is 75
  2. 2. ANALYSISSample Demography:Out of the sample population of 75, 75 % were males and 25% females.Out of the sample population of 75, 73 % were from the age group of 20-25 and 23% from 25-30 and rest from <20 and >30 years of age.73% of the sample population were students, 19 % were working and 7% were graduates.
  3. 3. Sample Income and Expenditure Information37% of the sample population had an yearly percentage of Rs 300,000-600,000, 27 had Rs 600,000-10,00,000, 21% had Rs>10,00,000 and 15% Rs<300,000.Yearly Spending on sports wear, for 44% of the sample population it was Rs 2000-4000, 25% Rs 4000-6000, 17% Rs>6000 and 13% Rs<2000.
  4. 4. Sample Buying Behaviour44% of the sample population buys a shoe yearly, 40% in 6 months, 16% once in 2 years and 1% monthly.61 % of the sample population buys shoes anytime of the year, 21% buys shoes on offers and 13 % buy shoe depending upon the season.
  5. 5. How do you choose your shoes? Which is most advertised 12 Buy what sports… 26 Personally try it before… 42 Buy the most… 11 How do you choose your Use the same brand as… 17 shoes? Buy the best brand 24 Consult friends 5 0 10 20 30 40 50When we asked the customers, how do they choose their shoes, 42 said that they personally try it out before the purchase and then buy.26 of the sample population Buys what sports persons endorse.24 of the sample population buys the best brand.The following table shows Risks perceived by our sample and how they handle this risk: Perceived Risk How Consumers Handle Risk Functional Risk Personally try it out before purchasing Physical Risk Personally try it out before purchasing Financial Risk Buys the best brand Social Risk Consult Friends Psychological Risk Buys the most advertised brand/ Buy what sports person endorse Time Risk
  6. 6. Factors Influencing buying behaviour:
  7. 7. When we asked customers to rate the most important factor involved in buying sports shoe as per your level of preference.If we consider the mode values then following would be the preference values of our sample. 1. Comfort and Long Lasting 2. Looks and Brand Image 3. PriceMotives of Purchase:RationalPurchase Information35% of the sample population had their favourite brand as Nike, 24 % Adidas, 23% Reebok and rest Puma.
  8. 8. 52% of our sample population feel that Nike is endorsed most by the Sports persons, 33% feel its Adidas and rest 11% feel its Reebok.52% of our sample population feel that Nike is worn most by the Sports persons, 28% feel its Adidas and rest 16% feel its Reebok.45 of our sample population owned Reebok, 43 Adidas, 41 Nike and 33 Puma.
  9. 9. If price of all the sports shoe brands are same, 44% of our sample would buy Nike, 27 % Adidas, 16 % puma and only 13 % would buy Reebok.If attributes of all the sports shoe brands are same, 35% of our sample would buy Nike, 28 %Adidas, 17 % puma and 20 % would buy Reebok.41 of our sample owns Nike apart from other brands but when we asked this question, ifattributes and features of all the brands are the same which one would you choose, most of themChoose NIKE
  10. 10. For most of our sample population, the purchase decision is influenced by their PersonalDecision and then by their peers.Most of our sample population gathers information about their sports wear through their personalexperience (56%), then through websites and Forums(19%) and then through sports events.Since the purchase decision is influenced by the person himself and he takes a personal decisionin buying the shoes then as per Horney’s CAD theory these customers fit under the followingcriteria.Horney’s CAD theoryComplaintAggressiveDetached
  11. 11. Sample Profile High Need for Cognition Inner Directed Verbalizer Innovators Cognitive arousal RequiredBrand memory and attitude37 people could recollect NIKE ad, 31 could recollect Adidas and Reebok ad each. Very few people could recollect a Puma ad.76 % of our sample population could recollect that Bleed Blue Campaign was associated with Nike but 17 % confused it with Reebok.
  12. 12. 96% of our sample population could recollect that “Just Do It” tagline is associated with Nike but 4 % confused it with Adidas.76% of our sample population could recollect that Swoosh is the logo of Nike but 19% confused it with Puma.Match the brand with the tagline(Mode Result)Actual TaglineBrand/Tagline Impossible is Nothing Just do it I am what I amAdidasReebokNikePerceived by the CustomerBrand/Tagline Impossible is Nothing Just do it I am what I amAdidasReebokNike
  13. 13. 2% of our sample population confused it with Reebok.Match the brand with the ambassador (Mode Result)Actual Brand AmbassadorBrandsBrand SachinTendulkar BipashaBasu/MS SauravGanguly Team India Ambassador DhoniNikeAdidasPumaReebokPerceived Brand AmbassadorBrandsBrand SachinTendulkar BipashaBasu/MS SauravGanguly Team India Ambassador DhoniNikeAdidasPumaReebok80% of our sample knew about Puma and Reebok brand ambassador and 69 % knew about Nike’s brand ambassador.Match the brand with its personality(Mode Result)Actual personalityBrandsPersonality Ruggedness Sincerity Competence Sophistication ExcitementNikeAdidasPumaReebokPerceived by the CustomerBrandsPersonality Ruggedness Sincerity Competence Sophistication ExcitementNikeAdidasPumaReebok
  14. 14. The red colour coding depicts the Mode scores for the match between brand and its personality. Most of our sample thought that Nike had Competence, Sophistication and Ruggedness as its Brand Personality. Match the brand with the logo(Mode Result) Actual logoBrandsLogoPumaAAdidasReebokNikeAdidasReebokNikePuPuma Sample ResultsBrandsLogoPumaAAdidasReebokNikeAdidasReebokNikePuPuma
  15. 15. All the 75 people included in the sample marked Nike with the Swoosh or the Tick symbol andPuma with the Puma Logo, but our sample was slightly confused between Reebok and Adidaslogo.This shows that our consumer is has been conditioned throughClassical Conditioning torelate Brand Nike with the Swoosh logo.Perceptual Map:This perceptual Map is drawn from the mean scores of the rating given by our sample todifferent brands on Price, Comfort, looks, and quality. Comfort LooksNike 5 5Adidas 4 4Reebok 4 4Puma 3 5 Perceptual Map-Comfort and looks Comfort-X-axis Looks-Y-axis 6 5 Puma Nike 4 4 didas/ Reebok A 5 3 4 2 4 1 3 0 0 1 2 3 4 5 6 Price QualityNike 5 5Adidas 4 3Reebok 5 3
  16. 16. Puma 3 4 Perceptual map-Price Quality Price- X axis Quality- Y axis 6 5 Nike 4 Puma 5 3 Adidas Reebok 4 2 5 1 3 0 0 1 2 3 4 5 6Analysis: TestsCross tab test has been applied to check if there is any difference between our sample’s Favourite brandand what they prefer if attributes and features of all the brands are same.H0: There is no significant difference between favourite brand and the brand people prefer if attributesand features of all the brands are same.Ha: There is significant difference between favourite brand and the brand people prefer if attributes andfeatures of all the brands are same.From the following table it can be seen that p-value is <0.05 so null hypothesis is rejected hence there is asignificant difference between favourite brand and the brand people prefer if attributes and features of allthe brands are same.
  17. 17. Chi-Square Tests Asymp. Sig. (2- Value df sided) aPearson Chi-Square 82.100 9 .000Likelihood Ratio 77.123 9 .000N of Valid Cases 75a. 10 cells (62.5%) have expected count less than 5. The minimumexpected count is 2.43.From the following table it can be seen that 69 % of the people who chose Nike as their favouritebrand also chose it when attributes and features of all the brands are same.But 19 % chose Adidas, this shows that for these people brand Image of Adidas is superior to Nike. Whats your Favourite brand of sports wear? * If attributes and features of all the brands were same , then which one would you buy? Crosstabulation If attributes and features of all the brands were same , then which one would you buy? Adidas Nike Puma Reebok TotalWhats your Favourite Adidas Count 15 0 1 2 18brand of sports wear? Expected Count 5.0 6.2 3.1 3.6 18.0 % within Whats your 83.3% .0% 5.6% 11.1% 100.0% Favouritebrand of sports wear? % within If attributes 71.4% .0% 7.7% 13.3% 24.0% and features of all the brands were same , then which one would you buy? Nike Count 5 18 2 1 26 Expected Count 7.3 9.0 4.5 5.2 26.0 % within Whats your 19.2% 69.2% 7.7% 3.8% 100.0% Favouritebrand of sports wear?
  18. 18. % within If attributes 23.8% 69.2% 15.4% 6.7% 34.7% and features of all the brands were same , then which one would you buy? Puma Count 0 5 8 1 14 Expected Count 3.9 4.9 2.4 2.8 14.0 % within Whats your .0% 35.7% 57.1% 7.1% 100.0% Favouritebrand of sports wear? % within If attributes .0% 19.2% 61.5% 6.7% 18.7% and features of all the brands were same , then which one would you buy? Reebok Count 1 3 2 11 17 Expected Count 4.8 5.9 2.9 3.4 17.0 % within Whats your 5.9% 17.6% 11.8% 64.7% 100.0% Favouritebrand of sports wear? % within If attributes 4.8% 11.5% 15.4% 73.3% 22.7% and features of all the brands were same , then which one would you buy?Total Count 21 26 13 15 75 Expected Count 21.0 26.0 13.0 15.0 75.0 % within Whats your 28.0% 34.7% 17.3% 20.0% 100.0% Favouritebrand of sports wear? % within If attributes 100.0% 100.0% 100.0% 100.0% 100.0% and features of all the brands were same , then which one would you buy?
  19. 19. Cross tab test has been applied to check if there is any difference between our sample’s Favourite brandand what they prefer if price of all the brands are same.H0: There is no significant difference between favourite brand and the brand people prefer if price of allthe brands are same.Ha: There is significant difference between favourite brand and the brand people prefer if price of allthe brands are same.From the following table it can be seen that p-value is <0.05 so null hypothesis is rejected hence there is asignificant difference between favourite brand and the brand people prefer if price of all the brands aresame. Chi-Square Tests Asymp. Sig. (2- Value df sided) aPearson Chi-Square 64.755 9 .000Likelihood Ratio 57.863 9 .000N of Valid Cases 75a. 11 cells (68.8%) have expected count less than 5. The minimumexpected count is 1.87.From the following table it can be seen that 80 % of the people who chose Nike as their favouritebrand also chose it when price of all the brands are same.But 11 % chose Adidas, this shows that for these people brand Image of Adidas is superior to Nike. Whats your Favourite brand of sports wear? * If the price of all the sports shoe and apparel brands are same, then which one would you prefer? Crosstabulation If the price of all the sports shoe and apparel brands are same, then which one would you prefer? Adidas Nike Puma Reebok TotalWhats your Favourite Adidas Count 14 2 1 1 18brand of sports wear? Expected Count 4.8 7.9 2.9 2.4 18.0 % within Whats your 77.8% 11.1% 5.6% 5.6% 100.0% Favouritebrand of sports wear?
  20. 20. % within If the price of 70.0% 6.1% 8.3% 10.0% 24.0% all the sports shoe and apparel brands are same, then which one would you prefer?Nike Count 3 21 2 0 26 Expected Count 6.9 11.4 4.2 3.5 26.0 % within Whats your 11.5% 80.8% 7.7% .0% 100.0% Favouritebrand of sports wear? % within If the price of 15.0% 63.6% 16.7% .0% 34.7% all the sports shoe and apparel brands are same, then which one would you prefer?Puma Count 2 5 6 1 14 Expected Count 3.7 6.2 2.2 1.9 14.0 % within Whats your 14.3% 35.7% 42.9% 7.1% 100.0% Favouritebrand of sports wear? % within If the price of 10.0% 15.2% 50.0% 10.0% 18.7% all the sports shoe and apparel brands are same, then which one would you prefer?Reebok Count 1 5 3 8 17 Expected Count 4.5 7.5 2.7 2.3 17.0 % within Whats your 5.9% 29.4% 17.6% 47.1% 100.0% Favouritebrand of sports wear? % within If the price of 5.0% 15.2% 25.0% 80.0% 22.7% all the sports shoe and apparel brands are same, then which one would you prefer?
  21. 21. Total Count 20 33 12 10 75 Expected Count 20.0 33.0 12.0 10.0 75.0 % within Whats your 26.7% 44.0% 16.0% 13.3% 100.0% Favouritebrand of sports wear? % within If the price of 100.0% 100.0% 100.0% 100.0% 100.0% all the sports shoe and apparel brands are same, then which one would you prefer?Cross tab test has been applied to check if there is any difference between our sample’s Favourite brandand their Gender.H0: There is no significant difference between favourite brand and gender of people.Ha: There is significant difference between favourite brand and the gender of peopleFrom the following table it can be seen that p-value is >0.05 so null hypothesis is accepted hence there isno significant difference between favourite brand and the gender of the people. Chi-Square Tests Asymp. Sig. (2- Value df sided) aPearson Chi-Square 5.601 3 .133Likelihood Ratio 5.685 3 .128N of Valid Cases 75a. 3 cells (37.5%) have expected count less than 5. The minimumexpected count is 3.55.From the following table it can be seen that maximum males 37% prefer Nike as their Favouritebrand but only 26 % females prefer Nike as their favourite brand rest of them prefer Puma andReebok.This may because Nike has hardly any woman celebrity endorsing the brand. So Nikeshould have some women celebrities endorsing the Brand to increase the women share ofmind.
  22. 22. Gender * Whats your Favourite brand of sports wear? Crosstabulation Whats your Favourite brand of sports wear? Adidas Nike Puma Reebok TotalGender Female Count 2 5 6 6 19 Expected Count 4.6 6.6 3.5 4.3 19.0 % within Gender 10.5% 26.3% 31.6% 31.6% 100.0% % within Whats your 11.1% 19.2% 42.9% 35.3% 25.3% Favouritebrand of sports wear? Male Count 16 21 8 11 56 Expected Count 13.4 19.4 10.5 12.7 56.0 % within Gender 28.6% 37.5% 14.3% 19.6% 100.0% % within Whats your 88.9% 80.8% 57.1% 64.7% 74.7% Favouritebrand of sports wear?Total Count 18 26 14 17 75 Expected Count 18.0 26.0 14.0 17.0 75.0 % within Gender 24.0% 34.7% 18.7% 22.7% 100.0% % within Whats your 100.0% 100.0% 100.0% 100.0% 100.0% Favouritebrand of sports wear?
  23. 23. We took rating from all our sample on a likert scale of 1-5 how would they rate Nike(1),Adidas(2), Reebok(3) and Puma(4).We applied Anova on the data and found that most of the sample finds Nike to be mostexpensive.This can be seen from Waller Duncan test shown below. Price Subset for alpha = 0.05 Brand N 1 2 a,,b,,cWaller-Duncan 3 74 3.32 4 74 3.39 2 72 3.56 1 74 4.09Means for groups in homogeneous subsets are displayed.a. Uses Harmonic Mean Sample Size = 73.490.b. The group sizes are unequal. The harmonic mean of the group sizes isused. Type I error levels are not guaranteed.c. Type 1/Type 2 Error Seriousness Ratio = 100.We took rating from all our sample on a likert scale of 1-5 how would they rate Nike(1),Adidas(2), Reebok(3).We applied Anova on the data and found that most of the sample finds Nike and Adidasto be best looking.This can be seen from Waller Duncan test shown below. Looks Subset for alpha = 0.05 Brand N 1 2 a,,b,,cWaller-Duncan 3 73 3.12 2 72 3.56 3.56 1 75 3.73Means for groups in homogeneous subsets are displayed.a. Uses Harmonic Mean Sample Size = 73.312.
  24. 24. b. The group sizes are unequal. The harmonic mean of the group sizes isused. Type I error levels are not guaranteed.c. Type 1/Type 2 Error Seriousness Ratio = 100.We took rating from all our sample on a likert scale of 1-5 how would they rate Nike(1),Adidas(2), Reebok(3).We applied Anova on the data and found that most all oursample population feels that allthree brands Nike, Reebok and Adidasare equally comfortable.We took rating from all our sample on a likert scale of 1-5 how would they rate Nike(1),Adidas(2), Reebok(3).We applied Anova on the data and found that Nike is considered to be good in qualitybe most of our sample population in comparison to Adidas and Reebok.This can be seen from Waller Duncan test shown below. Quality Subset for alpha = 0.05 Brand N 1 2 a,,b,,cWaller-Duncan 3 73 3.30 2 72 3.44 1 75 3.97Means for groups in homogeneous subsets are displayed.a. Uses Harmonic Mean Sample Size = 73.312.b. The group sizes are unequal. The harmonic mean of the group sizes isused. Type I error levels are not guaranteed.c. Type 1/Type 2 Error Seriousness Ratio = 100.Recommendations:References:BIBLIOGRAPHY
  25. 25. BOOKS Marketing Management - Philip Kotler Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.

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