Consumer Behaviour on purchase of NIKE shoes with comparative analysis

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RESEARCH METHODOLOGY Research Design The research design is exploratory and descriptive in nature as it involves studying the consumer buying behaviour of sports shoes, their perceptions about various sports shoe brands, their motives of purchase, their attitude towards the brand, their perceived risks associated with the brand, brand association and customer memory, role of reference groups. Scope of the study The study is limited to Delhi/NCR Region. Method of Data Collection The primary data was collected with the help of a structured, electronic questionnaire. Secondary data was collected from journals, books & research papers with a view to supplement the primary data. The study of secondary sources made the structuring of questionnaire easy. Sampling Plan 1. Universe of the study: For this project all the people who wear Sports wear forms the universe. 2. Sampling frame: In this research study, sampling frame comprises of friends, families and relatives.

Transcript of Consumer Behaviour on purchase of NIKE shoes with comparative analysis

Page 1: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

RESEARCH METHODOLOGY

Research Design

The research design is exploratory and descriptive in nature as it involves studying the consumer

buying behaviour of sports shoes, their perceptions about various sports shoe brands, their

motives of purchase, their attitude towards the brand, their perceived risks associated with the

brand, brand association and customer memory, role of reference groups.

Scope of the study

The study is limited to Delhi/NCR Region.

Method of Data Collection

The primary data was collected with the help of a structured, electronic questionnaire. Secondary

data was collected from journals, books & research papers with a view to supplement the

primary data. The study of secondary sources made the structuring of questionnaire easy.

Sampling Plan

1. Universe of the study: For this project all the people who wear Sports wear forms the

universe.

2. Sampling frame: In this research study, sampling frame comprises of friends, families and

relatives.

3. Sampling technique: The sampling technique applied is convenient and judgemental

sampling technique.

Sample Size

The sample size undertaken in this research study is 75

Page 2: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

ANALYSIS

Sample 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.

Page 3: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

Sample Income and Expenditure Information

37% 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.

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Sample Buying Behaviour

44% 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.

Consult friends

Buy the best brand

Use the same brand as before

Buy the most expensive brand

Personally try it before buying

Buy what sports persons endorse

Which is most advertised

0 10 20 30 40 50

5

24

17

11

42

26

12

How do you choose your shoes?

How do you choose your shoes?

Page 5: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

When 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 RiskFunctional Risk Personally try it out before purchasingPhysical Risk Personally try it out before purchasingFinancial Risk Buys the best brandSocial Risk Consult FriendsPsychological Risk Buys the most advertised brand/ Buy what

sports person endorseTime Risk

Page 6: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

Factors Influencing buying behaviour:

Page 7: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

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 Lasting2. Looks and Brand Image3. Price

Motives of Purchase: Rational

Purchase Information

35% of the sample population had their favourite brand as Nike, 24 % Adidas, 23% Reebok and rest Puma.

Page 8: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

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.

Page 9: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

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, if attributes and features of all the brands are the same which one would you choose, most of them Choose NIKE

Page 10: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

For most of our sample population, the purchase decision is influenced by their Personal Decision and then by their peers.

Most of our sample population gathers information about their sports wear through their personal experience (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 decision in buying the shoes then as per Horney’s CAD theory these customers fit under the following criteria.

Horney’s CAD theoryComplaintAggressiveDetached

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Sample ProfileHigh Need for CognitionInner DirectedVerbalizerInnovatorsCognitive arousal Required

Brand memory and attitude

37 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.

Page 12: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

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 Tagline

Brand/Tagline Impossible is Nothing Just do it I am what I amAdidasReebokNike

Perceived by the Customer

Brand/Tagline Impossible is Nothing Just do it I am what I amAdidasReebokNike

Page 13: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

2% of our sample population confused it with Reebok.

Match the brand with the ambassador (Mode Result)

Actual Brand Ambassador

Brands\Brand Ambassador

SachinTendulkar BipashaBasu/MS Dhoni

SauravGanguly Team India

NikeAdidasPumaReebok

Perceived Brand Ambassador

Brands\Brand Ambassador

SachinTendulkar BipashaBasu/MS Dhoni

SauravGanguly Team India

NikeAdidasPumaReebok

80% 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 personality

Brands\Personality Ruggedness Sincerity Competence Sophistication ExcitementNikeAdidasPumaReebok

Perceived by the Customer

Brands\Personality Ruggedness Sincerity Competence Sophistication ExcitementNikeAdidasPumaReebok

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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 logo

Brands\Logo

PumaAAdidasReebokNikeAdidasReebokNikePuPuma

Sample Results

Brands\Logo

PumaAAdidasReebokNikeAdidasReebokNikePuPuma

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All the 75 people included in the sample marked Nike with the Swoosh or the Tick symbol and Puma with the Puma Logo, but our sample was slightly confused between Reebok and Adidas logo.

This shows that our consumer is has been conditioned through Classical Conditioning to relate Brand Nike with the Swoosh logo.

Perceptual Map:

This perceptual Map is drawn from the mean scores of the rating given by our sample to different brands on Price, Comfort, looks, and quality.

Comfort LooksNike 5 5Adidas 4 4Reebok 4 4Puma 3 5

2.5 3 3.5 4 4.5 5 5.50

1

2

3

4

5

6

Nike

1Adidas/ Reebok

Puma

Perceptual Map-Comfort and looksComfort-X-axis

Looks-Y-axis

Perceptual Map-Comfort and looks

Price QualityNike 5 5Adidas 4 3Reebok 5 3Puma 3 4

Page 16: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

2.5 3 3.5 4 4.5 5 5.50

1

2

3

4

5

6

Nike

Adidas Reebok

Puma

Perceptual map-Price QualityPrice- X axis

Quality- Y axis

Price

Analysis: Tests

Cross tab test has been applied to check if there is any difference between our sample’s Favourite brand and 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 attributes and features of all the brands are same.

Ha: There is significant difference between favourite brand and the brand people prefer if attributes and features 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 a significant difference between favourite brand and the brand people prefer if attributes and features of all the brands are same.

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Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 82.100a 9 .000

Likelihood Ratio 77.123 9 .000

N of Valid Cases 75

a. 10 cells (62.5%) have expected count less than 5. The minimum

expected count is 2.43.

From the following table it can be seen that 69 % of the people who chose Nike as their favourite brand 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?

TotalAdidas Nike Puma Reebok

Whats your Favourite

brand of sports wear?

Adidas Count 15 0 1 2 18

Expected Count 5.0 6.2 3.1 3.6 18.0

% within Whats your

Favourite brand of

sports wear?

83.3% .0% 5.6% 11.1% 100.0%

% within If attributes

and features of all the

brands were same ,

then which one would

you buy?

71.4% .0% 7.7% 13.3% 24.0%

Nike Count 5 18 2 1 26

Expected Count 7.3 9.0 4.5 5.2 26.0

% within Whats your

Favourite brand of

sports wear?

19.2% 69.2% 7.7% 3.8% 100.0%

Page 18: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

% within If attributes

and features of all the

brands were same ,

then which one would

you buy?

23.8% 69.2% 15.4% 6.7% 34.7%

Puma Count 0 5 8 1 14

Expected Count 3.9 4.9 2.4 2.8 14.0

% within Whats your

Favourite brand of

sports wear?

.0% 35.7% 57.1% 7.1% 100.0%

% within If attributes

and features of all the

brands were same ,

then which one would

you buy?

.0% 19.2% 61.5% 6.7% 18.7%

Reebok Count 1 3 2 11 17

Expected Count 4.8 5.9 2.9 3.4 17.0

% within Whats your

Favourite brand of

sports wear?

5.9% 17.6% 11.8% 64.7% 100.0%

% within If attributes

and features of all the

brands were same ,

then which one would

you buy?

4.8% 11.5% 15.4% 73.3% 22.7%

Total Count 21 26 13 15 75

Expected Count 21.0 26.0 13.0 15.0 75.0

% within Whats your

Favourite brand of

sports wear?

28.0% 34.7% 17.3% 20.0% 100.0%

% within If attributes

and features of all the

brands were same ,

then which one would

you buy?

100.0% 100.0% 100.0% 100.0% 100.0%

Page 19: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

Cross tab test has been applied to check if there is any difference between our sample’s Favourite brand and 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 all the brands are same.

Ha: There is significant difference between favourite brand and the brand people prefer if price 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 a significant difference between favourite brand and the brand people prefer if price of all the brands are same.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 64.755a 9 .000

Likelihood Ratio 57.863 9 .000

N of Valid Cases 75

a. 11 cells (68.8%) have expected count less than 5. The minimum

expected count is 1.87.

From the following table it can be seen that 80 % of the people who chose Nike as their favourite brand 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?

TotalAdidas Nike Puma Reebok

Whats your Favourite

brand of sports wear?

Adidas Count 14 2 1 1 18

Expected Count 4.8 7.9 2.9 2.4 18.0

% within Whats your

Favourite brand of

sports wear?

77.8% 11.1% 5.6% 5.6% 100.0%

Page 20: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

% within If the price of

all the sports shoe and

apparel brands are

same, then which one

would you prefer?

70.0% 6.1% 8.3% 10.0% 24.0%

Nike Count 3 21 2 0 26

Expected Count 6.9 11.4 4.2 3.5 26.0

% within Whats your

Favourite brand of

sports wear?

11.5% 80.8% 7.7% .0% 100.0%

% within If the price of

all the sports shoe and

apparel brands are

same, then which one

would you prefer?

15.0% 63.6% 16.7% .0% 34.7%

Puma Count 2 5 6 1 14

Expected Count 3.7 6.2 2.2 1.9 14.0

% within Whats your

Favourite brand of

sports wear?

14.3% 35.7% 42.9% 7.1% 100.0%

% within If the price of

all the sports shoe and

apparel brands are

same, then which one

would you prefer?

10.0% 15.2% 50.0% 10.0% 18.7%

Reebok Count 1 5 3 8 17

Expected Count 4.5 7.5 2.7 2.3 17.0

% within Whats your

Favourite brand of

sports wear?

5.9% 29.4% 17.6% 47.1% 100.0%

% within If the price of

all the sports shoe and

apparel brands are

same, then which one

would you prefer?

5.0% 15.2% 25.0% 80.0% 22.7%

Total Count 20 33 12 10 75

Page 21: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

Expected Count 20.0 33.0 12.0 10.0 75.0

% within Whats your

Favourite brand of

sports wear?

26.7% 44.0% 16.0% 13.3% 100.0%

% within If the price of

all the sports shoe and

apparel brands are

same, then which one

would you prefer?

100.0% 100.0% 100.0% 100.0% 100.0%

Cross tab test has been applied to check if there is any difference between our sample’s Favourite brand and 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 people

From the following table it can be seen that p-value is >0.05 so null hypothesis is accepted hence there is no significant difference between favourite brand and the gender of the people.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 5.601a 3 .133

Likelihood Ratio 5.685 3 .128

N of Valid Cases 75

a. 3 cells (37.5%) have expected count less than 5. The minimum

expected count is 3.55.

From the following table it can be seen that maximum males 37% prefer Nike as their Favourite brand but only 26 % females prefer Nike as their favourite brand rest of them prefer Puma and Reebok.

This may because Nike has hardly any woman celebrity endorsing the brand. So Nike should have some women celebrities endorsing the Brand to increase the women share of mind.

Page 22: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

Gender * Whats your Favourite brand of sports wear? Crosstabulation

Whats your Favourite brand of sports wear?

TotalAdidas Nike Puma Reebok

Gender 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

Favourite brand of sports

wear?

11.1% 19.2% 42.9% 35.3% 25.3%

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

Favourite brand of sports

wear?

88.9% 80.8% 57.1% 64.7% 74.7%

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

Favourite brand of sports

wear?

100.0% 100.0% 100.0% 100.0% 100.0%

Page 23: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

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 most expensive.This can be seen from Waller Duncan test shown below.

Price

Brand N

Subset for alpha = 0.05

1 2

Waller-Duncana,,b,,c 3 74 3.32

4 74 3.39

2 72 3.56

1 74 4.09

Means 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 is

used. 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 Adidas to be best looking.

This can be seen from Waller Duncan test shown below.

Page 24: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

Looks

Brand N

Subset for alpha = 0.05

1 2

Waller-Duncana,,b,,c 3 73 3.12

2 72 3.56 3.56

1 75 3.73

Means 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 is

used. 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 our sample population feels that all three brands Nike, Reebok and Adidas are 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 quality be most of our sample population in comparison to Adidas and Reebok.

This can be seen from Waller Duncan test shown below.

Page 25: Consumer Behaviour on purchase of NIKE shoes with comparative analysis

Quality

Brand N

Subset for alpha = 0.05

1 2

Waller-Duncana,,b,,c 3 73 3.30

2 72 3.44

1 75 3.97

Means 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 is

used. Type I error levels are not guaranteed.

c. Type 1/Type 2 Error Seriousness Ratio = 100.

Recommendations:

References:

BIBLIOGRAPHY

BOOKS

Marketing Management - Philip KotlerConsumer Behavior, 6th Edition, by Hawkins, Best ad Coney.