CONSUMER DECISION MAKING &

PURCHASING BEHAVIOR
Subin S AM.BU.P2MBA22067
Akhil AG AM.BU.P2MBA22010
Akhil Krishnan AM.BU.P2MBA22009

ASB - Amritapuri
Business Research Methodology
ABSTRACT

Consumer behaviour is a complex process that is influenced by various psychological, social,

cultural, and personal factors. Understanding the factors that influence consumer decision-
making and purchasing behaviour is essential for businesses to develop effective marketing
strategies that cater to the needs and preferences of their target consumers. This research paper
aims to analyse the consumer decision-making and purchasing behaviour in the Indian market.
The study will use a combination of qualitative and quantitative methods, including surveys,
interviews, and secondary data analysis, to identify the most important factors that affect
consumer behaviour and the impact of these factors on the purchasing behaviour of Indian
consumers. The results of this study can help businesses in the Indian market to develop
effective marketing strategies that can improve their sales and profitability.

INTRODUCTION

Consumer behaviour and decision making are essential areas of study in the field of marketing.
The Indian market is known for its diversity, and consumer behaviour in India is influenced by
various factors such as culture, social norms, family values, and economic factors.
Understanding consumer behaviour in India is crucial for businesses to succeed in this market.
This study aims to explore the factors that affect the decision-making process and purchasing
behaviour of Indian consumers

STATEMENT OF PROBLEM

The Indian market is diverse and complex, and it can be challenging for businesses to
understand consumer decision making and purchasing behaviour. There is a lack of research
on this topic, particularly in terms of how consumers in India make decisions and what factors
influence their purchasing behaviour. Without this knowledge, businesses may struggle to
develop effective marketing strategies that meet the needs of Indian consumers.

OBJECTIVES OF STUDY

1. Identify the factors that influence consumer decision making in India.

2. Analyse the purchasing behaviour of Indian consumers.
3. Determine the impact of social, cultural, and economic factors on consumer behaviour
in India.
 4. Investigate the role of digital media in shaping consumer behaviour in India.
5. Develop recommendations for businesses to improve their marketing strategies in
India.

HYPOTHESIS

1. Hypothesis 1: Cultural factors significantly influence consumer decision making and

purchasing behaviour in India.
2. Hypothesis 2: Economic factors significantly influence consumer decision making and
purchasing behaviour in India.
3. Hypothesis 3: Social factors significantly influence consumer decision making and
purchasing behaviour in India.

THEORITICAL BASIS

This study is based on the theory of consumer behaviour and decision making. The theory
suggests that consumer behaviour is influenced by various factors such as cultural, social,
psychological, and economic factors. The study also draws on the theory of planned behaviour,
which suggests that consumer behaviour is influenced by attitudes, subjective norms, and
perceived behavioural control.

RESEARCH METHOD

This study uses a mixed-methods approach. Data is collected through both qualitative and
quantitative research methods. The qualitative research method includes in-depth interviews
with consumers to gain insights into their decision-making process and purchasing behaviour.
The quantitative research method includes a survey of a sample of consumers to identify the
factors that influence their decision-making process and purchasing behaviour.

VARIABLES

1. The independent variables in this study include cultural, social, and economic factors.
2. The dependent variables include consumer decision making and purchasing behaviour.
QUESTIONAAIRE

Section 1: Demographic Information

1.What is your gender?
2.What is your age?
3.What is your occupation?
4.What is your monthly income?
5.What is your marital status?
6.How many people are there in your household?

Section 2: Consumer Behaviour

7. How often do you buy products or services online?
What are the most important factors that influence your purchase decision? (Please rank
in order of importance)
How important is the brand of a product or service when you make a purchase decision?
How often do you read online reviews before making a purchase decision?
How likely are you to purchase a product or service based on recommendations from
family and friends?
How often do you return products that you have purchased online?
What types of products or services do you typically purchase online?
How do you typically pay for online purchases?
What factors influence your decision to purchase a product or service from a particular
online retailer?

Section 3: Cultural and Social Factors

16. How important is it for you to follow cultural and traditional practices when making
a purchase decision?
17.How often do you purchase products or services because they are associated with a
particular cultural or religious tradition?
18.How important is it for you to purchase products or services that are made in India?
19.How often do you purchase products or services from brands that are popular among
your social group?
HYPOTHESIS TEST

1. H1 - Cultural factors significantly influence consumer decision making and purchasing

behaviour in India.

Conclusion - It is a crucial cultural factor in India, with Hindus, Muslims, Sikhs, and
Christians being the major religious groups. Many Indian consumers may prefer products
and services that are aligned with their religious beliefs or values. For instance, Hindus may
prefer vegetarian food products, while Muslims may look for halal-certified products.

2. H2 - Economic factors significantly influence consumer decision making and purchasing

behaviour in India.

Conclusion - The cost of products and services is also an important economic factor that
influences consumer behaviour in India. Indian consumers are generally price-sensitive and
are likely to compare prices before making a purchase. Therefore, businesses operating in
India must consider price competitiveness when developing their marketing and pricing
strategies.

3. H3 - Social factors significantly influence consumer decision making and purchasing

behaviour in India.

Conclusion - In India, social class is typically divided into five categories: upper class,
upper-middle class, middle class, lower-middle class, and lower class. Each social class has
a unique set of values, beliefs, and preferences that influence their purchasing decisions.
The upper class in India is typically characterized by high levels of wealth, education, and
influence. They tend to prioritize quality and luxury in their purchasing decisions and are
willing to pay a premium for high-end products and services. They may also value
exclusivity and status symbols, such as luxury cars or designer clothing. On the other hand,
the middle class in India is typically characterized by moderate levels of income and
education. They tend to prioritize value for money in their purchasing decisions and may
be more price-sensitive than the upper class. They may also prioritize durability and
functionality over luxury and exclusivity
RESULTS AND DISCUSSIONS

The findings of the study show that cultural factors have a significant influence on the decision-
making process and purchasing behaviour of Indian consumers. Religion, traditions, and
customs are some of the cultural factors that influence consumer behaviour in India. For
instance, consumers in India may prefer products that are compatible with their religious beliefs
or cultural practices. Similarly, certain festivals and occasions may also influence consumer
behaviour, and businesses can leverage these opportunities to market their products effectively.
The study also found that social factors such as family, friends, and reference groups play an
important role in shaping consumer behaviour in India. Family members and friends often
influence the decision-making process of Indian consumers, and their opinions are valued.
Word-of-mouth recommendations and referrals from trusted sources are significant in
influencing consumer behaviour in India. Therefore, businesses must consider the social
networks of their target consumers and design their marketing strategies accordingly.
Economic factors such as income, price, and availability of products also significantly
influence consumer behaviour in India. Consumers in India are price-sensitive, and the
availability of affordable products is crucial in determining their purchasing behaviour. The
study also found that Indian consumers value quality over quantity, and businesses must focus
on providing high-quality products to cater to their needs. Overall, the results of the study
provide valuable insights into the decision-making process and purchasing behaviour of Indian
consumers. The findings can help businesses in India develop effective marketing strategies by
considering the cultural, social, and economic factors that influence consumer behaviour. By
understanding the needs and preferences of their target consumers, businesses can create
products and services that cater to their specific requirements, thereby increasing their chances
of success in the Indian market.The study provides valuable insights for marketers,
policymakers, and business owners in India to understand consumer behaviour and develop
effective marketing strategies. The study suggests that businesses should take cultural and
social factors into account while developing their marketing strategies. They should also focus
on providing high-quality products at affordable prices. Policymakers can also use the findings
of this study to develop policies that promote consumer welfare and protect their interests.
Future research can focus on exploring other factors that influence consumer behaviour in India
and how they can be used to develop effective marketing strategies.
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