Managerial Economics

CONSUMER PREFERENCE

(Paper Code:105)
Partial fulfillment of the requirement of
Masters of Business Administration

(BATCH :- 2022-24)

Submitted by :
Submitted To:
Abhishek
Babbar Dr. Jyoti

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Tecnia Institute of Advanced Studies, Pitampura

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 ACKNOWLEDGEMENT

This project has been a result of numerous hours, sweat and hard work.
The study is very close to my heart as it discusses the Study of
Consumer preference towards branded clothes. A case study of
Monte Carlo and Reliance Trends. First and foremost, I would like to
thank the reader who is giving time to my work. My most profound
gratitude to Dr.Jyoti, with her quality inputs at the right time. I would also
like to present a token of thanks to our institution, Tecnia Institute of
Advanced Studies for providing such unique syllabus that offers such
opportunity to students. I would like to thank my family for always
providing me space and being considerate about the task at hand.

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 INDEX

S.no. Chapters PageNo

1. Chapter1:Introduction 4-6

2. Chapter2: Data Analysis and Discussion 7-9

3. Chapter3:Learning Objectives 10-17

4. Chapter4:Learning Outcomes 18-22

5. Chapter5:Annexure 23-26

6. Chapter6:Bibliography 27-29

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 Chapter:1
Introductio
n

The growth of readymade men’s wear business in Bangladesh was very slow till
the early -1990's. The main reason for this was that india people were used to
buying cloth and getting their outfits tailored -mainly through local tailoring
shops from the unorganized segment. Consequently there were no national level
brands in this category for a long periodPlus point, Rex, Artnessetc are trying to
expand their clothing business to satisfy the local customers’ demand of clothing.
Understanding of Brand and Brand value A brand, as defined by Keller, is “a
product, but one that adds other dimensions that differentiate it in some way from
other products designed to satisfy the same need (Biplab, S. B., 1998). These
differences may be rational and tangible – related to product performance of the
brand – or more symbolic, emotional, and intangible – related to what the brand
represents”. Mariotti (1999) defines a brand as “a simplified ‘shorthand’
description of a European Scientific Journal March 2014 edition vol.10, No.7
ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431 484 package of value upon which
consumers and prospective purchasers can rely to be consistently the same (or
better) over long periods of time (Biplab, S. B., 1998). It distinguishes a product
or service from competitive offerings”. Khalid Mahmood Khan, director of Kay
Kraft, an emerging local brand said that the key to ensure brand loyalty is to
increase the value of the brand in the mind of the consumer. He also argued that to
build brand value, factors such as product improvements, package design,
communicating the competitive positions and promotion.
Why Branding required?
 To identify key competitive issues in the textile and apparel industry
 To satisfy the customers demand towards a branded products.
Customers Behavior towards Buying:
Variations in customers like and dislike, the cognitive growth and motivation
force them to act in various ways in purchasing clothing’s products (Lalitha. A,
Ravikumar, J.andPadmavali, K., 2008). Individual may not act in the same way
always, customers act consistently and we have tried to figure out the customers
in below groups according to their buying behavior.

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  A habit – determined group of brand loyal consumers who tend to be
satisfied with the product or brand last purchased.
 A price – cognitive group of consumers who decide principally upon the
basis of price or economy comparison.
 Group of customers who emphasize on products quality like design, style,
raw materials etc.
 Group of customers who buy products being attracted on aesthetic and
functional properties of those products.
 A cognitive group of consumers who are sensitive to rational claims.
 An impulse group of consumers who buy on the basis of physical appeal
and are relatively insensitive to brand name
 A group of emotional reactors who respond to product symbols and are
heavily swayed by images
 A group of new consumers who haven’t yet stabilized the psychological
dimensions of their behavior

CONSUMER BEHAVIOUR

Consumer behaviour is the study of how individual customers, groups or

organizations select, buy, use, and dispose ideas, goods, and services to satisfy
their needs and wants. It refers to the actions of the consumers in the marketplace
and the underlying motives for those actions.

The study of consumer behaviour assumes that the consumers are actors in the
marketplace. The perspective of role theory assumes that consumers play various
roles in the marketplace. Starting from the information provider, from the user to
the payer and to the disposer, consumers play these roles in the decision process.

The roles also vary in different consumption situations; for example, a mother
plays the role of an influencer in a child’s purchase process, whereas she plays the
role of a disposer for the products consumed by the family.

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Some selected definitions of consumer behaviour are as follows:
1. According to Engel, Blackwell, and Mansard, ‘consumer behaviour is the
actions and decision processes of people who purchase goods and services for
personal consumption’.

2. According to Louden and Bitta, ‘consumer behaviour is the decision process

and physical activity, which individuals engage in when evaluating, acquiring,
using or disposing of goods and services’.

IMPORTANCE

1. Exploit the market opportunities-

This is the third importance or significance of consumer behaviour and it

means that the change in consumer preference can be a good opportunity for the
mark to bring something which cannot as a revaluation in the market. For
Example– When palm pops introduced in the market, it was successful due to
the stylish and sleek design.

2. To design production policies-

This is the first importance of consumer behaviour and it means that all the

production policies have designed taking into consideration the consumer
preference so that product can be successful in the market.
In every business, the main motive is to enhance the production and as well as
sales of the company and to do all these, any company or business has to win the
trust of its customers and studying about their tastes, likings, and preferences.

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Scope of Consumer Behaviour

Words such as consumer behaviour, individual buyer behaviour, and buying

behaviour of the consumer are all the same. Consumer behaviour is defined as
the study of individuals, groups, and organizations performance in selecting,
buying, using the goods and services, ideas, or experiences to fulfil the buyer's
needs and wants.
The information given below will help you to understand the behaviour of the
customers. Companies conduct various research programs to collect
information about their target customers.
The scope of consumer behaviour is as follows.

 Non-profit and Social Marketing

 Selecting Target Market
 Market Mix
 Educating Customers
 Assists in Designing Product Portfolio

Non-profit and Social Marketing

In today's world, every non-profit business-like government sector, religious
sector, university, the charitable institution runs the business's overall activity
by implementing proper marketing plans for the business. Also, they
contribute to solving the problems of society. Thus, a transparent consumer
behaviour process and decision-making contributed efforts towards the success
of the business.
Select Target Market
Consumer behaviour helps the organisation to select its target group from the
market. Studying and identifying consumer behaviour helps them to know the
consumer segments with distinct features and wants. It helps in segmenting the
overall market into different groups.
Market Mix
Proper development and designing all-important elements like product, price,
place, and promotion are essential for every business. It helps them to identify
the likes and dislikes of the customers. This allows marketers to design
optimum marketing mix plans and improve the effectiveness of marketing
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strategies. The proper implementation of a marketing mix helps organisations
to attract more customers, thereby increasing profit.
Educating Customers
Consumer behaviour helps the marketer to know how consumers spend their
buying decisions. By understanding the customer's behaviour, a marketer can
easily get an idea of how they can improve their buying decision. The market
can guide and suggest a way to save their money and give them better options.
Customers become aware of the opportunities available to them as per their
behaviour.
Assists in Designing Product Portfolio
Designing a product portfolio is a challenging part of every business. Every
business should design a portfolio that consists of all classes of the product.
Consumer behaviour helps in identifying the class and needs of the customers.
It helps companies to design the product which fulfils the requirements of their
customers. In this way, a business can design the optimum portfolio and serve
its customers better.

MONTE CARLO COMPANY PROFILE

Monte Carlo Fashions Ltd is one of the leading branded apparel companies. The
company has a well diversified presence across various categories such as Cottons
Woollens Home Furnishings and Kids etc. The company has created a
comprehensive range of woollens cottons cotton blended knitted and woven
apparels for Men Women and Kids under the umbrella brand Monte Carlo. The
company has a strong distribution network with a wide presence across India
through 2500 plus Multi Brand Outlets (MBOs) 235 Exclusive Brand Outlets
(EBOs) and 283 National Chain Stores (NCS) as at March 31 2018. Majority of
the company's revenues comes from MBOs and franchise EBOs where the
company primarily sells on pre-orders and outright basis.Monte Carlo Fashions
Ltd was launched in 1984 by Oswal Woolen Mills Ltd the flagship company of
Nahar group. The IPO of the Company received an overwhelming response from
the Investors as it was oversubscribed by 7.83 times thereby making this IPO a
remarkable success. During the financial year ended 31 March 2016 the company
achieved an excellent growth in the sale of 'Cloak & Decker' & 'Tweens' the
economy range and the kids range respectively launched by the company in 2014.
During the year under review the company also introduced socks under the brand
Monte Carlo and the response received is very encouraging. The company also
expanded its sales network by increasing its number of exclusive retail
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 outlets/large format stores and distributors during the year.Monte Carlo Fashions'
financial performance for the year ended 31 March 2017 was adversely impacted
by demonetisation in the third quarter of financial year which accounts.
approximately 60% of its sales. To recover from lower sales in the third quarter
the Company started early discounts in the fourth quarter.During the financial
year ended 31 March 2018 the company launched its Fitness and Fashion wear
range in the name of 'ROCK IT'. The basic idea behind it was to introduce
garments having an ideal combination of fitness and fashion. Initially the products
were sold through the e-commerce platforms and after considering the
acceptability of the products and also to push its sales the company has decided to
market its new products through other distributing channels.

RELIANCE TRENDS COMPANY PROFILE

Trends is India’s largest fashion retail chain across India. Trends offers stylish,
high-quality products across Womenswear, Menswear, Kidswear and fashion
accessories through a diversified portfolio of own brands, national and
international brands.
The uniqueness of the store is the core, which delivers "fashion at great value".
Spread over 8,000 – 24,000 square feet of shopping area, each Trends store is
designed to offer a unique shopping experience for the entire family through wide
aisles, coordinated displays and highly trained fashion professionals offering best
in class customer assistance.
Trends customer through www.trends.ajio.com can access a large collection of
fashionable, high quality products at great value delivered at their door steps.
Over the years, Trends has developed a strong portfolio of own brands that cater
to diverse tastes and preferences of the customers. The own brand portfolio
includes:
The own brand portfolio includes:

 Rio - a vibrant range of snazzy trends for young women

 Fig - fashion wear for discerning, independent & working women
 Avaasa - a range of Indian wear for women offering the finest collection of
Salwar Kurtas, Churidars and a fast-evolving Mix n Match range of garments
 Fusion – a range of fusion wear for women where east meets west & style meets
comfort
 Hushh - the lingerie line for women offers an extensive range of innerwear and
sleepwear

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 Frendz - range of garments that complements the wardrobes of the growing
generation of boys and girls
 Pureza – a collection of pure Cotton & Linen shirts for men
 Network – offering a range of garments which comprises of formal office wear
collection for men and women
 Netplay - range showcases a smart casual collection for the evolving workplace
 The DNMX - range has been developed with a clear focus on the youth of India,
offering them exclusively crafted fashion garments like Denims, T shirts etc.
 Performax - the specialized sportswear or active wear brand, which supports
performance in sporting activity
 Graviti - the innerwear range for men offering the best of inner and lounge wear
 Point Cove – Kidswear brand that features bold colors bringing the California
spirit to India

Chapter:2

Consumer preference

Consumer preference is defined as the subjective tastes of individual consumers,

measured by their satisfaction with those items after they have purchased them.
This satisfaction is often referred to as utility.

A set of assumptions that focuses on consumer choices that result in different

alternatives such as happiness, satisfaction, or utility.

Consumer makes decisions by allocating their scarce income across all possible
goods to obtain the greatest satisfaction. Formally, we say that consumers
maximize their utility subject to budget constraint. Utility is defined as the
satisfaction that a consumer derives from the consumption of a good. As noted
above, utility’s determinants are decided by a host of non economic factors.
Consumer value is measured in terms of the relative utilities between goods.

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The entire process of consumer preference results in an optimal choice. Consumer
preference allows a consumer to rank different bundles of goods according to the
satisfaction levels or utility. Utility is nothing but the total satisfaction of
consuming a good or service.

For example, Kyle can have a consumer preference for Rolex watches over
Fastrack but he only has the financial income to purchase a Fastrack watch.

Let us further inspect the idea of consumer preferences through the three basic
assumptions:

1. Completeness which is when the consumer does not have indifference

between two goods.

If faced with apples vs oranges, every consumer does prefer one good over the
other.

For example, Amy has two alternative choices between steak or chicken. The
assumption of completeness reflects the idea that Amy should be able to compare
the options given to her. In other words, she should be able to identify whether she
likes or dislikes one of them.

2. Transitivity, to have transitive preferences, a person, group, or society that

prefers choice option x to y and y to z must prefer x to z. A preference ordering is
transitive if, for any three outcomes A, B, and C, a preference for A over B and a
preference for B over C implies a preference for A over C. … For example, a

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transitive preference would be preferring apples to bananas, bananas to
cranberries, and apples to cranberries.

3. 1) Non-Satiation which technically is a famous economic assumption that “more

is always better.” That is, you never turn down from having more. The property of
local non-satiation of consumer preferences states that for any bundle of goods
there is always another bundle of goods arbitrarily close that is preferred to it.
Formally, if X is the consumption set, then for any and every, there exists a such
that and is preferred to. Satiation in buyer hypothesis in financial aspects is the
purpose of most extreme fulfillment or bliss point that can be accomplished by a
consumer. It does not consider a consumer’s buying power, yet rather just his/her
utility capacity.

IMPORTANCE
In a world filled with endless consumer choices, too many marketers still push out
one-size-fits-all messages. Few CRM cadences are self-directed by consumers,
which might account for generally flat or low response and engagement rates.

And at a time when everybody is a gamer used to choosing characters or avatars,

setting game play levels, and making choices of all kinds, marketers rarely give
their customers and prospects the option to set preferences for content, channels,
or cadence. Too many acquisition, lead generation, usage stimulation, loyalty, or
adherence programs are serial fulfillment exercises rather than genuine
expressions of customer relationships. They’re one-way streets masquerading as
two-way relationships. And while it’s much easier than ever for marketers to
decide what to say and when to carpet bomb their lists, it’s counterproductive.

The “R” in CRM needs to be more prominent in the thinking, programming, and

infrastructure of marketers. There’s a reluctance to ask consumers for more
information based on a generalized anxiety about privacy. But this is a fake-out.
Greater data yields more personalized, relevant, and useful content, which, in
turn, gives customers greater value and a stronger connection to a brand. Study
after study has shown that when consumers perceive genuine value they’re ready,
willing, and able to share personal information. This value exchange is the core of
all CRM programs.

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Similarly, when consumers set preferences and brands execute on them, research
suggests that engagement, purchases, and customer satisfaction soar. The trick is
incorporating preference as a highly desired element with a CRM architecture or
environment. A brand without a preference center is partially faking CRM.

Ideally, customers should be steered to a preference center early in the

relationship, when their interest and intentions are high. They should be asked for
basic contact data and the requisite opt-ins and then be given some choices about
what kind of information or incentives they want, how frequently they want them,
and which communication channel is best to reach them without annoying them.  

Setting up a preference center requires a modest amount of database preparation

and an infrastructure to securely capture and transmit the data provided. In some
cases this data can be stored in ESP tools and used to inform triggers and business
rules for email. You can’t really create a preference center unless you have a
database architecture in place

The challenge is the investment. Too many clients see even modest infrastructure
costs as “non-productive” since there is no immediate ROI. That view is myopic.
Giving customers choices and, in doing so, binding them to their favorite brands
pays off again and again over time. When it comes to preference, brands need to
step up to honor and accommodate customer preferences.

Consumer preferences are defined as the subjective (individual) tastes, as

measured by utility, of various bundles of goods. They permit the consumer to
rank these bundles of goods according to the levels of utility they give the
consumer. Note that preferences are independent of income and prices. Ability to
purchase goods does not determine a consumer’s likes or dislikes.

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 Chapter:3
Analysis And Discussion

Research Methodology

The present study is undertaken to evaluate the buying behaviour towards the
branded apparels in Karnataka state.

a. Data Collection Methods: The data has collected from both primary and
secondary data.

Primary data has collected with the help of a globally accepted structured
questionnaire, personal interviews and discussions with apparel brand users and
non users.

Secondary data collected from various sources such as books, journals,

Magazines, Company reports, websites, etc.

Volume 8, Issue III, MARCH/2018 1135 http://ijamtes.org/

International Journal of Advanced in Management, Technology and Engineering

Sciences ISSN NO : 2249-7455

b. Research Design: A study is Descriptive in nature.

c. Sampling: The study would cover the consumers taste and preference towards
the

branded apparels, impact of promotional Measures and buying patterns of

consumer in

Karnataka among selected cities like Mysure, Kolar, Chickaballapur and Mandya
.

Sampling Technique: Adopted convenient sampling method. The survey has

conducted in textiles / apparel shops& exclusive garment showrooms and some

college campuses and among the general public.

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Sample Size: Sampling size for this study is 200.

Sampling Unit: Samples will be collected from students, Corporates and

general

public in selected places of Karnataka state.

d. Data Analysis Techniques: The data collected through the questionnaire were
converted to master table which facilitated tabulation of data in desired form. The
collected data were then grouped into tables and analyzed using various
statistical tools like frequency distribution, mean scores, percentages, z test and
standard deviation to know the variations in the data.

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61% of the people think that layoff in prior or immediatelyterminating the
contract just over an email is better way ofhandlingalayoffwhile
38.6%disagrees.

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This pie chart shoes that 63.5% of the people communicateclaims if
discrimination or disparate impact during a
layoff,20.8%peopledisagrees,14.9%peopleareunsureand0.9percentdoit
sometimes.

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AlmostbyQ4of2022fourbiggestunicorncompaniesannounce their layoffs because
of over hiring of staff when
thefundingispulledin;majority65.3%peoplethinkthissituationshouldbecommunic
atedwiththeteamwhile19.8%disagrees.14.9% people are unsure. The amount of
people unsure anddisagreesare very close.

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 Chapter:4
Learning Outcomes

When a customer enters your store, they are looking for a product that: 

1) fits their requirements and 

2) falls within their price range. Therefore,when coming up with a concept for a
product, the first thing you need to do is identify what are the preferences of your
customers. That’s how you’ll make sure that what you offer is valuable enough
for your customers to spend money on

If I explain in simple manner then

Women> Clothing> Western wear> Bottom wear> Jeans and jeggings

Once you have reached the jeans section, you’ll see a number of options like low
waist jeans, mid waist jeans and high waist jeans.

You choose “High waist jeans”. Now that’s your preference because you feel

comfortable in it or because it’s trendy or you just want a high waist pair to team
up with a gorgeous crop top that you just bought!

Next, you may choose a particular colour, say, white because that’s what you
prefer during summers or simply because your new top would look good with a
pair of white jeans!

Next, you further narrow down your search by ticking the “Lightly

distressed” option because that’s what you prefer over other styles!

Do you see how the entire purchasing process is working? You narrow down your
search to make a satisfying purchase decision like the one in this example:

Well, customer preferences basically mean what you like or dislike as a

customer!

Your preferences are your inclinations towards certain factors that help you
reject several other factors to buy that perfect product that best matches your
desires!
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SIGNIFICANCE OF CONSUMER PREFERENCE TOWARDS BRANDED
CLOTHES

Here are some reasons why people buy brands:

PEACE OF MIND

Consumers seek comfort, happiness and contentment in their lives, and they
achieve this by purchasing products. If the products they choose to use
consistently offer a satisfying experience, they get the impression that the
product's reliable and gives them security when purchasing.

SAVE TIME FOR DECISION-MAKING

Choosing a brand can help reduce the number of choices, making it easier to
locate the exact you're seeking.

IMPRESSION

Branding can help define what makes your product unique and more appealing
than similar products in a flash and with little thinking.

BRANDS ADD VALUE

Why do people pay higher costs for brands when compared to generic or non-
branded items? Brands with a good reputation bring more profit to their business
by establishing high prices.

BRANDS GIVE CONSUMERS A REASON TO BUY

Brand have many reasons which encourage you to buy. And most of people buy
because of these appealing approach.

What Is Brand Awareness? 

Brand awareness is a marketing term for the degree to which consumers
recognize a product by its name. Ideally, consumers' awareness of the brand may

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include positive perceptions of the qualities that distinguish the product from its
competition.

Creating brand awareness is a key step in promoting a new product or reviving an

older brand.

KEY TAKEAWAYS

 Brand awareness refers to the familiarity of consumers with a particular

product or service.
 A brand awareness campaign seeks to familiarize the public with a new or
revised product and differentiate it from the competition.
 Social media has become an important new tool in brand awareness
marketing.

How Brand Awareness Works 

Products and services that maintain a high level of brand awareness are likely to
generate more sales. Consumers confronted with choices are simply more likely
to buy a name brand product than an unfamiliar one

Consider the soft drink industry. Removed from their packaging, many soft
drinks are indistinguishable. The giants in the industry, Coca-Cola and Pepsi, rely
on brand awareness to make their brands the ones consumers reach for. Over the
years, these companies have employed advertising and marketing strategies that
have increased brand awareness among consumers, and that has directly
translated into higher sales.

This higher rate of brand awareness for dominant brands in a category can serve
as an economic moat that prevents competitors from gaining additional market
share

Recommendations

The study reveals that following recommendations have been projected from the
study:

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 Consumers are brand conscious now days. They purchase the apparels on the
basis of brand image and uniqueness of the brand. So companies may increase
their market share by creating point of difference from their competitors and
developing a good brand image in the minds of consumers.

Consumers do not perceive newspaper and magazines as an important source to

know what is new in clothing but consumers may take the help of fashion
magazines to know what is new in clothing.

The consumers are less loyal towards national brands of apparels as compare to
international brands so national brands have to improve the brand image among
the consumers of branded apparels.

Due to increase in purchasing power of consumers, they spend great share of

their income on purchase of branded apparels and in coming years the market of
branded apparels will increase tremendously as a result branded apparels
companies have to set the strategies which keep the consumers loyal towards
their brand so that consumers will not switch off to other brands.

Store attributes like friendly environment with the customers, speedy services,
display of apparels in stores according to consumer’s preference are the key
attribute to create loyalty among consumers, as a result apparel store can generate
loyalty among consumers by providing above attributes in their apparel store.

RELIANCE TRENDS AND MONTE CARLO IS A BIG BRAND

Reliance Trends is a leading lifestyle retail chain with over 777 retail stores across
India. Reliance Trends offers stylish, high-quality products across Womenswear,
Lingerie, Menswear, Kidswear and fashion accessories through a diversified
portfolio of own brands, national and international brands.The uniqueness of the
store is the core, which delivers "fashion at great value". Spread over 8,000 –
24,000 square feet of shopping area, each Reliance Trends store is designed to
offer a unique shopping experience for the entire family through wide aisles,
coordinated displays and highly trained fashion professionals offering best in
class customer assistance.Reliance Trends customer through
www.reliancetrends.com can access a large collection of fashionable, high quality
products at great value delivered at their door steps.

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Whereas Currently, Monte Carlo is available through more than 200
exclusive brand outlets, over thirteen hundred multi brand outlets and
more than sixty large format stores

In December 2014, Monte Carlo Fashion Limited launched IPO with price band

of ₹630 to ₹645 per share

In the year 2006, they had 23 stores. In 2009, the 100th store was opened in New
Delhi. As of March 2014, there were 191 ‘Monte Carlo has 200 Exclusive Brand
Outlets’ in India and two are in Dubai & Kathmandu respectively and over
1,300multi brand outlets across India. Monte Carlo has been awarded the
Superbrand status

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Chapter:5
Annexure

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 Chapter:6
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