A PROJECT

ON
CONSUMER CONSUMPTION INDEX
For

THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
(Session 2017 -19)

SUBMITTED TO SUBMITTED BY

PROFESSOR SHUDIR RANA SHUBHAM DURGAPAL

MBA 1 ST YEAR
ROLL NO: 108

ANNEXURE CONTENTS

CHAPTER -1
1
 1.1 Introduction ..3

CHAPTER 2

2.1 Objectives Of The Study .6

2.2 Research Methodology6-7

CHAPTER 3

3.1 Data Analysis and Interpretation ..8-15

CHAPTER -4

4.1 Findings

Questionnaire

INTRODUCTION
Consumer consumption index

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 consumer consumption is about so much more than just taking in or using up
resources. Humans consume to survive, of course, but in today's world, we also
consume to entertain and amuse ourselves, and as a way to share time and
experiences with others according to our income. We consume not only material
goods but also services, experiences, information, and cultural products like art,
music, film, and television. In fact, from the sociological perspective, consumption
today is a central organizing principle of social life..

It shapes our everyday lives, our values, expectations and practices, our
relationships with others, our individual and group identities, and our overall
experience

Consumption is also a central aspect of the celebration of both secular and

religious holidays, like Christmas, Valentines Day, and Halloween. It has even
become a political expression, like when we buy ethically produced or sourced
goods, or engage in a buycott or a boycott of a certain product or brand.

As a consequence, most of us spend our days consuming rather than producing

goods. On any given day, one might travel to work by bus, train, or car; work in an
office that requires electricity, gas, oil, water, paper, and a host of
consumer electronics and digital goods; purchase a tea, coffee, or soda; go out to a
restaurant for lunch or dinner; pick up dry cleaning; purchase health and hygiene
products at a drug store; use purchased groceries to prepare dinner, and so on then
spend the evening watching television, enjoying social media, or reading a book.

Consumers are, naturally, very potent to businesses. The more money consumers
spend at a given company, the better that company will perform. For this reason, it
does not excite any more to the most investors and businesses pay a great amount
of attention to consumer consuming figures and patterns. If consumers provide
fewer return for a given business or within a given industry, companies must adjust
by decreasing costs, wages, or innovating and introducing newer and better
products and services. Companies that do the most effectively earn higher profits
and, if publicly traded, tend to experience better stock market performance.

Consumer conceptions are the attitudes of households and other entities toward the
economy and the health of the fiscal markets, and they are a strong constituent of

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consumer consumption. Conceptions have a powerful ability to cause inconstancy
in the economy, because if the attitude of the consumer regarding the state of the
economy is bad, then they will be averse to spend. Therefore, conceptions prove to
be a powerful predictor of the economy, because when people have trust in the
economy or in what they believe will soon occur they will spend and invest in
confidence. However conceptions do not always affect the consuming habits of
some people as much as they do for others. For example, some households set their
spending strictly off of their income, so that their income closely equals, or nearly
equals their consumption (including savings). Others depend on their conceptions
to dictate how they will consume their income and such.

Market segmentation is the process of dividing a broad consumer or business

market, normally consisting of existing and potential customers, into sub-groups of
consumers (known as segments) based on some type of shared characteristics. In
dividing or segmenting markets, researchers typically look for shared
characteristics such as common needs, common interests, similar lifestyles or even
similar demographic profiles. The overall aim of segmentation is to identify high
yield segments that is, those segments that are likely to be the most profitable or
that have growth potential so that these can be selected for special attention (i.e.
become target markets).

Many different ways to segment a market have been identified. Business-to-

business (B2B) sellers might segment the market into different types of businesses
or countries. While business to consumer (B2C) sellers might segment the market
into demographic segments, lifestyle segments, behavioral segments or any other
meaningful segment.

Market segmentation assumes that different market segments require different

marketing programs that is, different offers, prices, promotion, distribution or
some combination of marketing variables. Market segmentation is not only
designed to identify the most profitable segments, but also to develop profiles of
key segments in order to better understand their needs and purchase motivations.
Insights from segmentation analysis are subsequently used to support marketing
strategy development and planning. Many marketers use the S.T.P approach,
Segmentation, Targeting , Positioning to provide the framework for marketing
planning objectives. That is, a market is segmented, one or more segments are
selected for targeting, and products or services are positioned in a way that

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resonates with the selected target market or markets. Metaphorically speaking, it's
like an orange. Splitting the business into different segments to focus on each one
individually.

ATTRIBUTES OF CONSUMER CONSUMPTION

Consumption is a stable function of income, i.e., c =f(y)
Consumer consumption is assumed to vary directly with income. As income
rises, consumption rises
The rate of increase in consumption is less then the rate of increase in
income.

OBJECTIVES OF THE STUDY

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 To know how much they spend according to income

To know in what things do they spend more

2.2 RESEARCH METHODOLOGY

Research Design: The exploratory research design is adopted for this

project.
Research Approach: Research worker contacted the respondents personally
with well-prepared sequentially arranged questions. The questionnaire is
prepared on the basis of objectives of the study.

Sample Size: The study sample constitutes 20 respondents constituting in

the research area.

Sample Area: New Delhi

Sampling Design: Convenience random sampling is used.

Collection of Data: Most of the data collected is primary data through

mailed questionnaire

Research Instrument: The researcher has used a structured questionnaire as

a research instrument tool which consists of multiple choice and
dichotomous questions in order to get data. All the questions in the
questionnaire are organized in such a way that elicits all the relevant
information that is needed for the study.

Statistical Tools: The statistical tools used for analyzing the data collected ,
bar diagrams.

Analysis of Data: The data is collected through survey and books, reports,
newspapers and internet etc. The data collected by the researcher are
tabulated and analyzed in such a way to make interpretations. Various steps,
which are required to fulfill the purpose, i.e., editing, coding, and tabulating.

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 The collected data are analyzed and interpreted using statistical tools and
techniques.

DATA ANALYSIS AND INTERPRETATION

Q1. On what parameters you considered when you purchase food products?

(10000-35000) INCOME SEGMANT

ATTRIBUTES IN PERCENTAGE

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 PRICE 70

QUALITY 25

PACKAGE 5

TOTAL 100

CONSUMPTION

5.00%
25.00%

PRICE
QUALITY
PACKAGE
70.00%

INTERPRETATION:

It can be noticed from the above table that respondent who earn 10000-35000 per
month as you see 70% RESPONDENT consumption on the basis of price meanwhile 25%
focus on quality of product before consume and rest of 5% respondent go toward package.

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Q.2 Which Brand of milk are you consuming?

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S.NO Brand of No. of Percentage
milk respondent
1. MOTHER 10 50
DAIRY
2. PARAM 1 5
3. ANAND 3 15
A
4. AMUL 6 30
Total 20 100

PRODUCT CONSUME

30.00%

MOTHER DAIRY
50.00% PARAM
ANANDA
AMUl

5.00%

15.00%

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INTERPRETATION It can be noticed from the above table that MOTHER DAIRY 50% tops
the list of preferred brands among the available in the market. About 5% of the customers are
using PARAM and 15% prefer ANANDA for their daily usage. Moreover, 30% customers are
using AMUL and this all consumption according to their income in my survey person earn RS
20000 who prefer mother dairy product meanwhile person who earn 35000 those also prefer
mother dairy so there is no change due to income its all about likes & dislikes / preference.

Q.3 how much you spend on clothes ?

S.NO Categories No. of respondent Percentage INCOME

1. Costly 2 10 30000-35000

2. Fair 3 15 25000-30000

3. Reasonable price 10 50 15000-20000

4. Average 5 25 10000-15000

Total 20 100 100

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 10
9
8
7
6
5
respondent
4 Column1
3
2 10%
15% 50%
1 25%
0
Costly
fair
Reasonable price
average

INTERPRETATIONThe was shows that the consumers answer almost 50% of

respondent find clothes in reasonable price and costly price are 10%. Consumer
who prefer Fairly price is 15% and 25% average and in above table shown income
segment and behalf of income respondent spend on differ differ categories .

Q.4 what % of your income you spend on different categories are given bellow?

Transportation
education
food &beverages
entertainment
insurance
saving
health

INCOME SEGMENT <10000-15000>

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 consumption

20.00% 5.00%
Transportation
5.00%
education
food &beverages
15.00% entertainment
30.00% insurance
saving
health

15.00% 10.00%

Income segment <20000-25000>

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 consumption

20.00%
12.00%
10.00% Transportation
education
3.00% food &beverages
entertainment
insurance
saving
10.00%
health
25.00%

20.00%

Income segment <30000-35000>

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 consumption

20.00%

1.00% 4.00% Transportation

5.00% education
25.00%
food &beverages
entertainment
15.00% insurance
saving
health

30.00%

Findings
The customers are mainly focus on price of the product before buying they dont care about its
quality and while the other dimensions like taste play very important role in consumption .
20 % consumption in education &transportation but in other categories they spend less
According to my survey I

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