The Organised Retail Environment In India

Published Date: 02 Nov 2017

SIIB

Buying Behavior and Decision Making Criteria for Low Involvement Products in Organised Retail.

Ashwin Singh Chadha- 11020241007

The submission is under the Course of "Dissertation" submitted to Ms. Adya Sharma in Semester IV of MBA-IB 2011-13 at Symbiosis Institute of International Business.

TABLE OF CONTENTS

Introduction to the Organised Retail environment in India.

Emerging Trends in Indian Retail & Consumer

Buying Process in Organised Retail

High Involvement v. Low Involvement Purchase

The Buying Impulse

Understanding different factors affecting Buyer Behavior

Primary Research:- How much more than expected did the consumer spend?

Recommendations to Leverage Low-Involvement Purchase Behavior

Introduction to the Organised Retail environment in India.

India has appeared as an appealing destination for retailing above the last insufficient years. The most noteworthy period of the development of the sector was amid 2000-2006, after the revenues increased by concerning 93.5 each cent. This inspired global retailers to assess an entry into the Indian marketplace. For three consecutive years, India obscured the catalog as the most favorable destination of retailers such as Wal-mart, Carrefour and Tesco.

The approximated size of the retail industry in our state is concerning $470 billion alongside an annual compounded development rate of 11 each cent. Incidentally, the allocate of coordinated retail is moderately tiny at $26 billion that is just 6 each cent of the finished marketplace contrasted to a normal allocate of 70-80 each cent in North America andWestern Europe and 20-30 each cent in the Far-EastAsian Markets. Our allocate of coordinated retailing is considerably lower than in supplementary Asian States such as China (20 each cent), Indonesia (30 each cent), Thailand (40 each cent), Malaysia (55 each cent), and Taiwan (81 each cent).

India’s retailing industry is vitally proprietor manned tiny shops. In 2010, larger format ease stores and supermarkets accounted for concerning 4 percent of the industry, and these were present merely in colossal city centers. India’s retail and logistics industry employs concerning 40 million Indians(3.3% of Indian population). Till 2011, Indian central power repudiated external direct investment(FDI) in multibrand retail, prohibiting external clusters from each ownership in supermarkets, ease stores or each retail outlets. Even single-brand retail was manipulated to 51% ownership and a bureaucratic process. The normal Indian retail shops are extremely small. Over 14 million outlets work in the state and merely 4% of them being larger than 500 sq ft(46 m2)in size. India has concerning 11 shop outlets for every1000 people.

Retail Industry – Divisions:

The retail industry can be tear into (i) coordinated colossal, (ii) unorganized and (iii) informalsector enterprises. The early group retailers contain traders who own lawful permissions or licenses to accept the attention, are registeredwith salestax/VATetc. Such enterprises are supermarkets, hypermarkets, retail shackles, and additionally the privately-owned colossal retail businesses. Their attendance on scene, nevertheless of a present basis, is softly obtaining in significance, and sluggishly eating into the company ofsecond group of retailers. By unorganized retail transactions enterprises, we mean all those innate kirana & finished shops, relations grasped – OwnAccount transactions enterprises(Mom-Pop shops), registered below the Shops and Formation Deed (s), administered by the innate authorities. Their number is extremely colossal and this group of enterprises law Indian scenario. At this juncture, they, seemingly, are bestowing tough contest to colossal retail outlets. The third group of retailers contain tiny shops such as puny grocery and vegetable shops run from a room of a house, paan/beedi kiosks (often vending a collection of items, like tiny toothpaste tubes,tooth brushes, soaps, pouches of shampoo, etc), way-side vendors, and hand carts working lacking each licences. This is not each past-time attention for proprietors, but is an commercial necessity.

The Indian retail sector is exceedingly fragmented alongside 94 each cent of its company being run by the unorganized retailers. The coordinated retail though is at a extremely nascent stage. This sector is the biggest basis of occupation afterward farming, and has deep penetration into rural India producing extra than 10 each cent of India’s GDP. The finished retail marketplace in India is approximated at US$ 470 Bn in 2011. The Food & Grocery segment is the biggest retail group and reports for concerning 70% of the finished retail market.

GROWTH DRIVERS OF INDIAN ORGANIZED RETAILING

When we prudently gaze at the development of retailing in India, this whole trust of formation came to be probable due to the comprehensive rise in propensity to consume. This seized locale above a era of two decades by the Indian city middle class families. Expansion of trust abiilities by the investment institutions, unprecedented development registered in Telecommunication, Contact and showing industry and a transition state of the economy from growing state to the quickly and consistently growing economy has considerably gave towards the development of disparate cross serving forms of retailing. But, this has not fully grasped the farflung rural spans of Indian economy.

Rising incomes and improvements in groundwork are increasing customer marketplaces and accelerating the convergence of customer tastes.

Liberalization of the Indian economy.

Increase in paying Each capita Income.

Advent of dual income families additionally helps in the development of retail sector.

Shift in customer demand to external brands like McDonalds, Sony, Panasonic, etc.

Consumer preference for shopping in new environs.

The Internet metamorphosis is creating the Indian customer extra adjacent to the producing influences of internal and external retail chains.

Reach of satellite T.V. channels is helping in crafting awareness concerning globe produce for innate markets.

About 47 percent of India's populace is below the period of 20; and this will rise to 55 percent by 2015. This youthful populace, that is technology-savvy, discern extra than 50 TV satellite channels, and display the highest propensity to expend, will hugely give to the development of the retail sector in the country.

Availability of quality real land and mall association practices.

Foreign companies' attraction to India is the billion-plus population.

The organized retail market in India is estimated at US$ 26 Bn in 2011 and is projected to grow to US$ 84 Bn by 2016, CAGR of 26% for the period 2011-16

Executive Summary

a. India’s economy has undergone a comprehensive makeover as it’s autonomy in 1947

»Agriculture nowadays reports for merely one-fifth of the gross internal product (GDP), down from 59 percent in 1950, and a expansive scope of present industries and prop services nowadays exist.

b. Starting in 1992, India started to apply transactions liberalization measures.

»The economy has grown—the GDP development rate fluctuated amid 6 and 8 percent annually above the era 1992-2010 and substantial progress has been created in loosening power regulations, chiefly limits on confidential businesses

c. Currently, India is one of the fastest producing economies in the globe and By 2030, India should be one of the Top 5 economies in words of GDP

d. The India retail marketplace is approximated at US$ 470 Bn in 2011, accounting for ~35% of GDP and is anticipated to produce to US$ 675 Bn by 2016, @ CAGR of 7.5%

e. The coordinated retail marketplace is approximated at US$ 26 Bn and reports for ~6% of the finished retail marketplace for 2011. The coordinated retail marketplace is projected to produce to US$ 84 Bn by 2016, @CAGR of 26%

f. With an approximated marketplace of US$ 325 Bn, the Food & Grocery segment is the solitary biggest retail group and reports for ~70% of the finished retail marketplace in 2011. The coordinated retail segment for Food & Grocery is approximated at ~US$ 9 Bn and reports for 35% of all coordinated retail

g. The retail marketplace in India proposals momentous opportunities for retailers & brands across categories. This is driven by factors such as a colossal customer center, rising incomes & job opportunities, rising customer awareness, etc

Emerging Trends in Indian Retail & Consumer

Dramatically Accelerated Consumption

Consumer Redefining Value

Value is no longer merely concerning worth – it is extremely clearly Worth plus.

• The worth plus might be one or extra of style, quality, ease, abiility, experience, change, etc.

• Demand established consumption groups to come to be low-involvement items for the "core" consuming classes. Low-involvement, in coil, will imply:

I. Consumers zeroing on just one or two qualities for seizing the consumption decision e.g. just the size of the LCD panel for the TV, just the capacity of the refrigerator, just the fiber constitution of the garment and the assurance in the retailer / brand etc.

II. Consumers will optimize their buys mainly on easy qualities of worth and ease (time efficiency) in order to discharge extra resources (money, period, mental involvement) for the aspiration / lifestyle established consumption categories

III. Diminishing manipulation of manufacturers’ Brands working in such categories

Increasing Women Customer Power

In 2011, 11% of CEOs at 240 India Inc. firms were women, versus 3% for Fortune 500 firms in the United States.

• The present development of the abiility industry – commercial services, call centres, excursion associations, airlines and resorts – has managed to rising demand for women staff; As each NASSCOM The present ratio of women to men in the Company Procedure Outsourcing (BPO) industry is 69:31

• An approximated 40-50 million working women in the period cluster of 20-40 in city India in 2016

• A surge in paying on :

• self (clothing, confidential care and grooming, accessories, travel) ;

• convenience (eating out/ prepared to cook; services; confidential transport);

• children (clothing, educational aids, coaching, hobbies and skill

• development…..)

• and indulgence (digital, customer durables, holidays….)

Increasing Period Poverty

Evolving lifestyles adding countless extra ‘hours and minutes’ into the consumer’s daily design, or seizing away ‘days’ in a year for new interests.

• People paying extra period at workplace, travelling to workplace and back residence, discerning TV etc. managing to manipulated period obtainable for shopping and supplementary activities

• An rising emphasis on cutting stress and period for routine hobbies (household chores/ shopping….) and maximizing period alongside families and friends

• Ease should be key for customers :

• Shopping Destination : ‘All Below One Roof’ – Malls;Hypermarkets; Group Killers

• Non Store Retail Formats : Facile admission and grasp – Online ,TV, Multilevel marketing

Technology Driven E-Commerce & M-Commerce

India has above 600 million alert mobile subscribers (as of July 2011) in India, approximated to cross 800 million by 2016 (every Indian above the period of 14 years)

Mobiles & supplementary Mechanisms should be the interface for :

Connecting to the internet

Financial transactions

Shopping and digital entertainment

Healthcare delivery

Services on demand

Social networking

INDIAN CONSUMER BUYING BEHAVIOUR

To the "core‟ Indian customer, nevertheless "low price‟ is yet of main significance, it will in the pending years steadily shift to a "price-plus‟ platform. Here, the customer will pursue a larger balance of worth alongside quality, ease, consistency, change and shopping experience. The present commercial slowdown has created the Indian consumer’s attitude extra conservative. Point of buy (POP) will come to be extra vital, and will be the moment of truth for brands and retailers if they are to hold their pledge to the consumer.

Hence, intelligent brands and retailers will expend extra power in-store in words of enhancing not merely store interiors but additionally the finished shopping experience, even if they are elevated value- pursuing ones.

So distant as shopping actions is distressed, there is a forceful rise in the trend of going

shopping as a ‘family‟ that, in coil, is on report of the rising period poverty for most

Indians in this core consuming class. Shopping jointly saves period for the relations as also

providing a little supplementary period together.

Modern retail that proposals „all below one roof‟ options, optimizes core customers alongside many

dimensions encompassing saving of period, enhanced shopping experience, and joining shopping alongside leisure and recreation. Hence, given a choice amid established shopping marketplaces and a well-planned, well-tenanted shopping centre (mall), this customer is extra probable to opt for the latter.

Consumer buys according to his/her needs:

1. Customer desire is understood

The early pace the customer determines that he is not gratified (i.e., consumer’s observed actual condition) and should be keen in enhance his/her situation (i.e., consumer’s observed wanted condition). For instance, inner triggers, such as starvation or desire, could notify the customer that food or drink is needed. External factors can additionally trigger consumer’s needs. Marketers are chiefly good at this across advertising; in-store displays and even the intentional use of odor (e.g., perfume counters).

2. Data to be hunted

The subsequent pace is to accept a find for data on probable solutions. The origins utilized to buy the data could be minimized to the maximum like recalling the data from preceding experiences (i.e., memory) or the customer could spread substantial power to amass data from beyond origins (e.g., Internet, friends, supplementary clients etc.). How far number of power every single customer directs in the direction of hunting depends on factors such as: the significance of fulfulling the demand, similarity alongside obtainable resolutions, and the period obtainable to amass the information.

3. Options are assessed afterward use

Consumers’ efforts could consequence in a set of options from that a choice has to be made. It ought to be noted that there could be two levels to this stage. At level one the customer could craft a set of probable resolutions to their needs (i.e., product types) as at level two, the customer could be assessing the particular product or abiility (i.e., brands) inside every single solution. For example, if a customer wants to substitute his 100cc bike alongside a 150-200cc bike he has became plenty of options like PULSAR, KARIZMA, APPACHE, UNICORN, FZ, R15 etc….

4. Buy

In most of the cases the resolution selected by the customer will match alongside the product. Though, this could change at the actual period of purchase. The "intended" buy could be modified at the period of buy for countless reasons such as: the product is out-of-stock, a competitor proposals an incentive at the point-of-purchase (e.g., store salesperson remarks a competitor’s offer), the client needs the vital funds (e.g., trust card not working), or associates of the consumer’s acknowledgement cluster seize a negative think of the buy (e.g., friend is critical of purchase).

5. Evaluation after-purchase

Once the buy is above an evaluation of the decision is made. If the product performs below the consumer’s anticipation next he/she will re-evaluate the satisfaction alongside the decision, that at its great and it could consequence in the customer returning back the product. As in less great situations the customer will retain the bought product but could seize a negative think of the product. Such evaluations are extra probable to transpire in cases of luxurious or exceedingly called products. To aid the customers to ease the concerns alongside their buy evaluation, marketers demand to be receptive and additionally seize initiative steps to enthuse customer contact. Client abiility centers and follow-up marketplace scutiny are functional instruments in helping to address the purchasers’ concerns.

TYPES OF CONSUMER PURCHASE BEHAVIOR

A customer is confronted alongside buy decision daily. But not all decisions are given equal importance. A little decisions are extra convoluted than others and therefore they need extra power by the consumer. Supplementary decisions are fairly like a routine and therefore they need merely slight effort. In finish, customers face four kinds of buy decisions:

Minor New Buy – these buys embody something new to a customer but in the customer’s mind is not a extremely vital buy in words of demand, money or supplementary reason (e.g., rank inside a group).

Minor Re-Purchase – these are the most routine of all buys and frequently the customer returns to buy the alike product lacking providing far believed to supplementary product options (i.e., customer is brand loyalty).

Major New Buy – these buys are the most tough of all buys because the product being bought is vital to the customer but the customer has slight or no preceding experience creating these decisions. The consumer’s lack of assurance in creating this kind of decision frequently (but not always) needs the customer to involve in an comprehensive decision-making process.

Major Re-Purchase - these buy decisions are additionally vital to the customer but the customer touches confident in creating these decisions as they have preceding experience buying the product.

For marketers it is vital to comprehend how customers delight the buy decisions they face. If a firm is targeting clients who sense a buy decision is tough (i.e., Main New Purchase), their marketing strategy could vary considerably from a firm targeting clients who think the buy decision as routine. In fact, the alike firm could face both situations at the alike time; for a little the product is new, as supplementary clients discern the buy as routine. The implication of buying deeds for marketers is that disparate buying situations need disparate marketing efforts

High Involvement v. Low Involvement Purchase

Consumer involvement is described as a state of mind that motivates customers to recognize alongside product/service offerings, their consumption outlines and consumption behavior. Involvement creates inside customers an need to gaze for and contemplate concerning the product/service group and the fluctuating options beforehand creating decisions on brand preferences and the final deed of purchase. It is the number of physical and mental power that a customer puts into a buy decision. It creates inside a person a level of relevance or confidential significance to the product/service presenting and this leads to an need inside the preceding to amass and elucidate data for present/future decision creating and use. Involvement affects the customer decision procedure and the sub procedures of data find, data processing, and data transmission. As Schiffman has locale it "Involvement is a heightened state of awareness that motivates customers to pursue out, attend to, and contemplate concerning product data prior to purchase". It is the observed attention and significance that a customer attaches to the buy and consumption of a product/service offering.

Herbert Krugman, a researcher is acknowledged alongside his contribution to the believed of customer involvement. According to him, customers way the marketplace and the corresponding product/service offerings alongside fluctuating levels and intensity of attention and confidential importance. This is denoted to as customer involvement.

Involvement of customers as creates buy decisions varies across persons, across product/service offerings in question as well as buy situations and period at hand. A little customers are extra encompassed in buy procedures than others. For example, a person who has a elevated level of attention in a product group should expend a lot of period creating a decision alongside stare to the product and the brand. He should difference brands across features, benefits etc. One more example is a person who is chance aversive; he should additionally seize a longer period creating a decision. Involvement additionally varies across product/service offerings. A little produce are elevated involvement products; these are produce that are elevated in worth and luxurious, own adequate number of chance, are bought infrequently, and after bought, the deed is irrevocable, i.e. they cannot be returned and/or exchanged . On the supplementary hand, there are low involvement produce, that are reasonably luxurious or usually inexpensive, own slight chance and are bought usually on a routine basis.

Involvement possesses precise properties:

a) It has a level of strength and intensity that determines the degree of involvement that a customer possesses. This might be elevated or low. A exceedingly encompassed customer should actively find for data and amass facts, difference the assorted brands opposing every single supplementary on the basis of the data, assess contrasts and similarities amid the assorted alternatives and in the end create a choice. In supplementary words, they amass, procedure and incorporate data extremely intensely, and in the end appear at a decision considering the brand choice. On the supplementary hand, a customer low on involvement should not create so far of power in accumulating and processing data concerning fluctuating alternative brands and seizing a decision.

b) The length of period that the customer stays in this heightened state determines the level of persistence. It might be short word and situational attention in the product/service category; or it might be long word and enduring.

c) It is managed towards each or all of the agents of the marketing mix. A person could display involvement towards the product (its features/attributes and benefits), the worth, the store or the dealer or even the promotional power (advertisement/sales raise etc).

High and Low Involvement Products vis a viz Consumer Decision Making

High Involvement ↔ Low Involvement

EPS

LPS

RPS

1. Problem recognition

Actual state type to Desired State

Actual state type to Desired State

Actual state type

2. Information search

a) Number of brands considered

b) Number of sellers considered

Extensive

Internal and external sources

Many

Many

Limited

Mostly internal sources

Several

Several

Minimum

Restricted to internal sources only.

One

One/Few

3. Evaluation of alternatives

Number of product/service attributes evaluated

Complex

Many

Moderate

Moderate

Simple (if at all)

One/None

4. Purchase

Gradual after a cognitive process

Not so gradual

Immediate

5. Post purchase processes

Cognitive dissonance is high.

Brand loyalty if satisfied

Cognitive dissonance would be rare

Brand loyalty.

Repeat purchase.

6. Time spent in purchase

Large

Moderate/Little

Small/Minimal

7. Types of goods

Specialty goods

Mixed

Convenience

Noteworthy here is the fact that reliant on the level of involvement, elevated or low, the procedure varies in words of the sequence of how the three constituents of cognition, attitude and deeds are coordinated (Hierarchies of results for low and elevated involvement decisions, Assael, 1992).

a) Cognition: this mentions to the vision, data and emerging beliefs concerning brands.

b) Attitude: this is the positive/negative feeling concerning the brands desirability/undesirability that aftermath from evaluation of beliefs.

c) Behavior: this is the overt reply in words of buying or nor buying, or buying brand X above Y as it seems extra desirable.

In words of elevated involvement, there is cognition (knowledge component: data meeting and processing), pursued by attitude (feeling component: like or dislike), pursued by deeds (conative component: buy or not to buy); CognitionAttitudeBehavior. For example, as buying a refrigerator, a customer should early amass data concerning the assorted brands and assess them, he should next prioritize his preferences and in the end go in for buy of brand X above Y. On the supplementary hand, in words of low involvement, there is cognition (knowledge component: data meeting and processing), pursued by deeds (conative component: buy or not to buy), in the end pursued by attitude (feeling component: like or dislike); CognitionBehaviorAttitude. For example, as trying out a new taste of potato wafers, the customer could early amass data on the brand, buy it and consume it, and in the end form an attitude of like or dislike. This should have a bearing on his buy of wafers in upcoming, whether he endures alongside this brand X or goes for a change to Y.

The Low-Involvement Discovering Ideal

Marketing contact across audio discernible mass media, i.e. TV and wireless follows this principle. Across the advertisement, the marketer teaches the customers concerning his product presenting and the brand; this could be a new product or a adjusted edition of an continuing product; he attempts to craft awareness and form beliefs concerning the brand. At this period he does not target at forming/changing attitudes; he just aims at growing cognition across the memo content. Thus, the marketer attempts to substitute the aged beliefs alongside new ones, lacking early changing the attitude. More across distinct results and picturization of the product/service presenting, memo context, jingle and music, as well as the celebrity/spokesperson, the marketer attempts to elicit a deeds on portion of the customer to buy his product. If the customer is gratified alongside the buy, he touches that he has consented a affirmative support, and he learns to buy the alike brand again. On the supplementary hand, if he is dissatisfied, he receives a negative support and the likelihood of repetition of that deeds (i.e. of buying the alike brand) is reduced.

The Learn-Feel-Do Pecking order (High Involvement) Ideal

Consumer decision creating varies across the nature of product/service offerings. According to the ideal, a little buys are backed by a lot of cognition and thinking, as others are established on feelings and emotions. The combination of these acknowledgement points produces a strategy matrix. The marketer has to select appropriate strategies for disparate kinds of product/service offerings. He needs to examine the nature of his product, and design his raise strategy accordingly; the publicizing medium ought to associate to the product category.

The learn-feel-do ideal is a easy matrix that links customer decision creating and customer choices to three constituents that are data (learn), attitude (feel), and deeds (do). The matrix classifies customer decision-making alongside two dimensions, high/low involvement and thinking/feeling. Involvement as a dimension is embodied on a continuum as elevated and low; above period one moves from elevated to low involvement. Thinking and feeling embody the supplementary axis once more as two ends of a continuum; alongside period, there is a progression from thinking in the direction of feeling.

 

Learn-Feel-Do Hierarchy Matrix

a) High Involvement/High Thinking: This quadrant of the matrix consists of elevated involvement and thinking, normally signifying higher level of rationality. Produce that plummet into this quadrant are elevated involvement produce, whereas decision creating involves a lot of thinking. Because of the nature of product/service offerings that plummet in this group, customers have a elevated demand for information. Also, customer decision creating is driven by commercial motives. Examples of produce that should plummet into this quadrant contain cars, laptops, real land etc as well as innovative products. The strategy ideal is discover → sense → do.

b) High Involvement/High Feeling: This quadrant is representative of situations that are elevated involvement and elevated feeling; as there is a level of involvement, data and thinking is less vital than the feeling factor; this is because such buys are connected to the persons self-esteem. The alter constituent is stronger than the data factor. The person is drawn by the feeling, emotional and psychological motives; and, they come to be a "feeler" concerning the product. Examples contain sports cars and motorcycles, style apparel and jewellery, perfumes etc. The strategy ideal is sense → discover → do.

c) Low Involvement/Low Thinking: The third cell needs negligible power on the portion of the customer, both in words of involvement and thinking. It truly aftermath from custom growing inside the customer (or the doer), as a consequence of habitual buying and purchase. He becomes a activator in the sense that whenever he has a demand, he reacts and instantly buys whatever brand he has been purchasing. Over a era of period, nearly all produce should plummet into this quadrant. Examples of produce that should involve the low involvement/thinking dimensions contain staples, bread, stationery, soap etc. The strategy ideal is sense → discover → do.

d) Low Involvement/Low Feeling: The produce that plummet in this quadrant signify low involvement and low feeling; yet, they advance self satisfaction. Customers buy such produce to gratify confidential tastes, countless a periods affected by peer impact and communal pressures. Examples contain cigarettes, liquor, movies etc. The strategy ideal is do→ sense → learn.  

OBJECTIVES:-

To determine the extra amount spent on low involvement/impulse purchases in organised retail.

To determine how can the low involvement purchases be leveraged.

NEED FOR THE STUDY

Impulsive buying could be described as a consumer’s unplanned purchase. This is an vital portion of client buy process. Studies display that as far as 62per cent of coordinated retail sales and 80per cent of all sales in precise product groups is across impulse purchases. Moreover it can be understood from assorted works reviews that Indian consumer’s exhibits impulsiveness and worth consciousness behavioural dimension. Retail customers incline to buy impulsively as they do not design in advance and they additionally go for supplementary brand if their favoured brand is not obtainable in a particular store. They are affected by the store brands’ benefits and endeavour them across discounts and if the quality is delivered. In coil the gratified clients favour to sojourn the retailer once more and again. Thus, it might be finished that client loyalty is customer’s aim to buy a specific product or services in upcoming repeatedly and client loyalty is a vital indicator of store health. Clients can have long-term loyalty to the retail outlets. Long-term faithful clients do not facilely Change their store and product choice. Researchers comprehend that impulsive clients can be modified into faithful client if they are satisfied. Moreover, it additionally understood from that study of preceding studies that nevertheless impulsive buys has enticed far attention in customer scrutiny, unfortunately there is a dearth of scrutiny on group-level determinants. Thus, the present case is believed as significant.

METHODOLOGY

DATA COLLECTION METHOD – Two major sources are used for the purpose of data collection:

Secondary Data – Past statistical data with respect to the target market is used to understand the current buying behavior and process. Industry reports will be used to further help in creating recommendations to leverage low-involvement purchase behaviour.

Primary Data – Under this method, two sources are used :

Questionnaire – Questionnaires are more objective since the responses are gathered in a standardised way. Information can be collected from a large portion of a group. It is also relatively quick to collect information through a questionnaire.

Executive Interview – With the help of executive interviews with a few members of target group, statistical information will be gathered which could otherwise be a cumbersome task. A good knowledge of the existing market scenario can be conjectured with the help of an executive interview.

Observation- Observation is one of the best ways to understand low-involvement buying and that is included in primary research to give a wholesome understanding of the subject.