A PROJECT REPORT ON

“CUSTOMER BEHAVIOUR
OF
‘CHITALEBANDHU MITHAIWALE"
BY
SANIYA KAZI
ROLL NO. 29
YEAR 2023

IN PARTIAL FULFILLMENT OF
POST GRADUATE IN COMMERCE (M. COM. II)
IN RECENT ADVANCES IN BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF
PROF. DR. SADIA MERCHANT

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 ABEDA INAMDAR SENIOR COLLEGE CERTIFICATE
DEPARTMENT OF COMMERCE (P.G)

THIS IS TO CERTIFY THAT THE PROJECT REPORT ON “CUSTOMER BEHAVIOUR OF

CHITALE BANDHU IN SHANIPAR MANDIR, SADASHIV PETH,
SUBMITTED BY SANIYA KAZI OF M.COM-II , ROLL NO :- 29 , MID NO:-
AND EXAM SEAT NO :- HAS SATISFACTORILY COMPLETED THE
RESEARCH PROJECT IN THE SUBJECT BUSINESS ADMINISTRATION ( SEMESTER(IV)
AS PARTIAL FULFILMENT OF THE MASTER’S DEGREE IN COMMERCE DURING THE
ACADEMIS YEAR 2023

PROJECT GUIDE HEAD OF DEPARTMENT

INTERNAL EXAMINER EXTERNAL EXAMINER

2
COMPANY CERTIFICATE

3
 Declaration

I am saniya kazi student of m.com hereby declare that the report on all fulfillments
of the requirement for the award of the degree in master of commerce is a record of
original work done by me during the period of study 2022-2023 , under the guidance
and supervision of dr. Sadia merchant

Place:-

Date:- KAZI SANIYA

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 ACKNOWLEDGEMENT

This is an outstanding prosper to convey my gratefulness to those many people whose timely
help and guidance went a long way in finishing this project work from commencement to
achievement .

“expression of feelings by words makes than less sign faint when it comes to make statement of
gratitude.”

I would like to express my sincere thanks to every one for giving me an opportunity to explore to
pratical knowledge about my project

This project could not be completed without the guidance and support of dr. Sadia merchant and
the faculty members .

it gives me pleasure to express my most profound regards and sense of great

indebtedness.

And sincere gratitude to my chitale bandhu mithaiwale

Guide (md of chitale bandhu mithaiwale)

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 INDEX

SR TITLE PG

NO. NO.

1 INTRODUCTION

2 COMPANY PROFILE

3 LITERATURE REVIEW

4 RESEARCH METHODOLOGY

4.1) OBJECTIVE OF THE STUDY

4.2) SOURCES OF DATA COLLECTION

A) PRIMARY DATA.

-QUESTIONNAIRE

- INTERVIEW

B) SECONDARY DATA.

4.3) SIMPLE DESIGN ,SIZES ,METHOD & TECHNIQUE

4.4) METHOD OF DATA ANALYSIS

5 DATA ANALYSIS & INTERPRETATIONS

6 CONCLUSION & SUGGESTIONS

6.1 FINDINGS

6.2 SUGGESTIONS

6.3 CONCLUSION

BIBLIOGRAPHY

ANNEXURE-QUESTIONNAIRE

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 CHAPTER: - 1 INTRODUCTION.
 Introduction

 As the twentieth century has come to a close and we have moved into the third
millennium, we can see many developments and changes taking place around us with all
the industries and firms within each industry trying to keep pace with the changes and
diverse needs of the people. Though for decades together, marketers have regarded
‘customer’ as the king and evolved all activities to satisfy him, this concept is gaining
more momentum and importance today.
 This can largely be attributed to the prevailing market situation. Not only competition has
become intense but over an above with the market being flooded with many products.
The challenge before the marketers is to understand the diversity of consumer behavior
and offer goods and services accordingly. Today the company image is built and made
known by its customers. Thus the success of the firm will be determined by how effective
it has been in meeting the diverse consumer needs and wants by treating each customer as
unique and offering products and services to suit his needs and creating a life time value
and relationship with him.
 Marketers have come to realize that their effectiveness in meeting consumer needs
directly influences their profitability the better they understand the factors underlying
consumer behavior, the better able they are to develop effective marketing strategies to
meet consumer needs.
 Today, the digital revolution of the market place allows much greater customization of
products, services, and promotional messages than older marketing tools. Digital
technologies enable marketers to collect and analyze increasingly complex data on
consumers’ buying patterns and personal characteristics. Over a period of a decade, the
digital revolution has introduced several drastic changes into the business environment:

 1).consumer :- has more power than ever before. Consumers can use “intelligent agents”
to locate the best prices for products or services, bid on various marketing offerings, by
pass distribution outlets and middlemen, and shop for goods around the globe and around
the clock from the convenience of their homes.

 2). Consumers have access to more information than ever before. Consumers can easily
find reviews for products they are considering buying that have been posted by previous
buyers, click a button to compare the features of different product models at the sites of
online retailers and subscribe to “virtual communities” of persons who share the same
interests they do.

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  3). Marketers can offer more services and products than ever before. The digitalization
and services they are selling and still sell them at reasonable prices. It also allows
marketers to customize the promotional message directed at many customers.

 4. The exchange between marketers and customers is increasingly interactive and

instantaneous. Traditional advertising is a one-way street where the marketer pays a large
sum of money to reach a large number of potential buyers via a mass medium, and then
assesses whether or not the message was effective via future sales or market studies. On
the other hand, digital communication enables a two-way interactive exchange in which
consumers can instantly react to the marketer’s message by, say, clicking, on links within
a given website or even by leaving the site. Thus marketers can quickly gauge the
effectiveness of their promotional messages rather than rely on delayed feed back through
sales information that is collected after the fact.
 5. Marketers can gather more information about consumers more quickly and easily.
Marketers can track consumers’ online behaviour and also gather information by
requiring visitors to websites to register and provide some information about themselves
before they get access to the site’s features.
 thus, marketers can construct and update their consumer databases efficiently and
inexpensively.the study of consumer behaviour provides strategic information about what
consumers need and want and how marketing programmers should be designed to
precipitate and exchange. Understanding consumer behaviour offers consumers greater
satisfaction. It helps to understand how people behave during the stage of obtaining,
using and disposing of product. Understanding issues such as :
Psychology of how consumers think, feels reason, and select between different alternatives.
 Psychology of how the consumer is influenced by his or her environment.
 The limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome. Help marketers to make a more informed decision as
to which strategy to employ.

 History
The field of consumer behavior is rooted in the marketing concept, a business orientation that
evolved in the 1950s through several alternative approaches toward doing business referred to
respectively as the production concept, the product concept, and the selling concept.
The production concept assumes that consumers are mostly interested product availability at low
prices; its implicit marketing objectives are cheap efficient production and intensive distribution.
This orientation makes sense when consumers are more interested in obtaining the product than
they are in specific features and will buy what’s available rather than wait for what they really
want. Today using this orientation makes sense in developing countries or in other situation in
which the main objective is to expand the market. The field of consumer behavior is rooted in a
marketing strategy that evolved in the late 1950s, when some marketers began to realize that they
could sell more goods, more easily, if they produced only those goods they had already

8
determined that consumers would buy. Instead of trying to persuade customers to buy what the
firm had already produced, marketing –oriented firms found that it was a lot easier to produce
only products they had first confirmed, through research, that consumers wanted. Consumer
needs and wants became the firm’s primary focus. This consumer-oriented marketing philosophy
came to be known as the marketing concept. The key assumption underlying the marketing
concept is that, to be successful, a company must determine the needs and wants of specific
target markets and deliver the desired satisfactions better than the competition. The marketing
concept is based on the premise that a marketer should make what it can sell, instead of trying to
sell what it has made. Whereas the selling concept focuses on the needs of the sellers and on
existing products, the marketing concept focuses on the needs of the buyer and customer
satisfaction. The widespread adoption of the marketing concept by american business provided
the impetus for the study of consumer behavior. To identify unsatisfied consumer needs,
companies had to engage in extensive marketing research. In so doing, they discovered that
consumers were highly complex individuals, subject to a variety of psychological and social
needs quite apart from their survival needs. They discovered that the needs had priorities of
different consumer segments differed dramatically, and in order to design new products and
marketing strategies that would fulfill consumer needs, they had to study consumers and their
consumption behavior in depth. Thus, the marketing concept underscored the importance of
consumer research and laid the ground work for the application of consumer behavior principles
to marketing strategy
the product concept assumes that consumers will buy the product that offers them the highest
quality the best performance, and the most features. A product orientation leads the company to
strive constantly to improve the quality of its product and to add new features that are technically
feasible without finding out first whether or not consumers really want these features. A product
orientation often leads to “marketing myopia” that is, a focus on the product rather than on the
consumer needs it presumes to satisfy..
Marketing myopia may cause a company to ignore crucial changes in the market place because it
causes marketers to look in the mirror rather than through the window. A natural evolution from
both the production concept and the product concept is the selling concept, in which a marketer’s
primary focus is selling the product that it has unilaterally decided to produce.

 Definition
The term consumer behaviour is defined as the behaviour that consumers display in searching
for, purchasing, using, evaluating and disposing of products and services that they expect will
satisfy their needs. Consumer behaviour focuses
 Scope
The term consumer behaviour describes two different kinds of consuming entities:
1. The personal consumers
2. The organizational consumer

The personal consumer buys goods and services for his or her own use, for the use of the
household or as a gift for a friend. In each of these contexts, the products are bought for final use
by individuals who are referred to as end users or ultimate consumers.

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 the second category of consumer- the organizational consumer–16
Includes profit and not profit businesses, government agencies (local, state, and national), and
institutions (e.g. schools, hospitals, and prisons), all of which must buy products, equipment, and
services in order to run their organizations.

 Current trends in consumer behavior

A historical perspective shows that a consumer orientation developed out of economic necessity
in the 1950s. With the advent of a buyer’s market, marketing managers began to identify
consumer needs in a competitive environment and to gear marketing strategies accordingly. A
better understanding of consumer needs, perceptions, attitudes and intentions became necessary.
Current trends suggest that marketers must continue to be sensitive to changes in consumer
needs, demographic characteristics, and lifestyles in order to develop effective marketing
strategies. Three changes in particular are likely to have an impact on marketers:
1. A greater value orientation on the part of consumers
2. Greater interest in and access to information on products and services.
3. The desire for more customized products.

 Consumer behavior in the digital world

Techno-ready marketing explains technology adaptation as a distinct process guided by beliefs.
Technology readiness index shows receptiveness to technology; predicts the adoption rate of a
new technology and reflects the state of the customers mind. Customers can be segmented based
on adoption of technology into explorers, pioneers, sceptics, paranoids and laggards. An
understanding of how and why customers adopt technology is a prerequisite for crafting effective
marketing strategies. For over four years, the authors have been doing research in this field and
delving into issues like, what drives technology customers, measurement and assessment of their
pre-disposition to new technologies and the role of technology in marketing. Techno-ready
marketing is a science and practice of marketing products and services that are innovative and
technology intensive. It is a process of creating and developing markets for innovative products.
This discipline rests on two basic premises–technology and innovation. ‘techno’ refers to
enhancement of a body of knowledge and innovation means striving for something new and
unexpected. The rapid pace of 21
Technological advancements have drawn a lot of attention to techno-ready marketing. The
critical success factors involved in techno-ready marketing are unique as are the factors leading
to customer satisfaction. Technology readiness (tr) refers to this distinct behavioural process that
is responsible for the adoption of technology by the customers. Technology readiness varies from
one customer to another. At one end the spectrum, we have customers who actively seek out new
technology and at the other we have those who are resistant to it. Technology readiness is
multifaceted. It is encompasses many more aspects than just ‘early adopters’ and
‘innovators’. An index of technology readiness can be used to predict the adoption rate and the
response of the customers towards a new technology. Influence of technology on human life is
historical. From the wheel to the steam engine, all the technological innovations had to
Go through the various phases involved in the customer’s adoption cycle. Varying level of tr is
responsible for different levels of penetration of products and services like cell phones and

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Internet shopping. Today, technology readiness is used to project customer response to emerging
technologies.

 Significance of consumer behavior

Understanding the reasons for studying a discipline enables one to better appreciate its
contributions. Studying consumer behavior has a lot of benefits to marketers that enable them to
create long lasting relationship with customers.

 Significance in daily lives

In a general sense, the most important reason for studying consumer behavior is the significant
role it plays in our lives. Much of our time is spent directly in the market place, shopping or
engaging in other activities. A large amount of additional time is spent thinking about products
and services, talking to friends about them, and seeing or hearing advertisements about them. In
addition, the goods we purchase and the manner in which we use them significantly influence
how we live our daily lives. These general concerns alone are enough to justify our study.
However, many seek to understand the behavior of consumers for what are thought to be more
immediate and tangible reasons.

 Consumer decision process

What is a decision?
Every day, each of us makes numerous decisions concerning every aspect of our daily lives.
However, we generally make these decisions without stopping to think about how we make them
and what is involved in the particular decision-making process itself. In the most general terms, a
decision is the selection of an option from two or more alternative choices. In other words, for a
person to make a decision, a choice of alternatives must be available. When a person has a
choice between making a purchase and not making a purchase, a choice between brand x and
brand y, or a choice of spending time doing a or b, that person is in a position to make a decision.
On the other hand, if the consumer has no alternatives from which to choose and it literally
forced to make a particular purchase or take a particular action (e.g., use a prescribed
medication), then this single “no-choice” instance does not constitute a decision; such a no-
choice decision is commonly referred to as a “hobson’s choice”.

 Types of decision making

The decision making process varies with the type of product involved. There will be a lot of
difference in the decision making process involved for purchasing a bathing soap, a sports kit, an
expensive camera, a new television, a new family car, and a personal computer. This will depend
on how complex the decision is likely to be and degree of involvement required from the
participants. In other words, more complex the decisions more the involvement of buying
participants and more the buyer deliberation.

1. Routinised response behavior /habitual buying behavior

This is the simplest type of buying behaviour. This behaviour is adopted for the purchase of low
cost, frequently purchased items. Here the buyers do not give much thought, or search or take a
lot of time to make the purchase. The products in this class are generally classified as low

11
involvement goods. The buyers are very well aware of the product class, know the brands and
also have a clear preference among the brands. So the buyers have to take very few decisions for
the purchase of such type of goods.
The marketer has to ensure two tasks. (1) the marketer must continue to provide satisfaction to
the existing customers by maintaining quality, service and valve. (2) he must try to attract new
customers by making use of sales promotion techniques like point of purchase displays off-price
offers, etc., and also introduce new features to the products.

2. Limited problem solving/ dissonance reducing buying behavior

Here the buying behaviour is more complex as compared to routine buying behaviour because
the consumer is confronted with an unfamiliar brand in a familiar product class. For instance, a
housewife is thinking of buying a new pressure cooker and may be shown the ‘united pressure
cooker’ by he retailer. The housewife will ask questions, watch advertisements and gather more
information to learn more about the ‘united pressure cooker’. This buying behaviour is descried
as limited problem solving because the buyer are in a situation where they are fully aware of the
product class but not familiar with all the brands and their features. Here the marketer’s job is to
design a communication programme which will help the buyer to gather more information,
increase his brand comprehension and gain confidence in the brand.

3. Extensive problem solving /complex buying behavior

This buying is referred to as a complex buying behaviour because the consumer is in an
unfamiliar product class and is not clear about what criteria to consider for buying. For example,
a person may become interested in purchasing a 34 music system, for the first time. He heard of
the various brand names as bpl, videocon, philips, national and panasonic but lacks clear brand
concepts. He does not know what product attributes or features to consider while choosing a
good music system. So he is in an extensive problem solving situation.
The marketers must understand the information gathering and evaluation activities of the
prospective consumers. They have to educate the prospective buyers to learn about the attributes
of the product class, their relative importance and the high standing of the marketer’s brand on
the more important brand attributes. In other words, the marketing communications should aim
at supplying information and help the consumer to evaluate and feel good about his/her brand
choice.

 The influence of culture on consumer behavior

The study of culture is a challenging undertaking because its primary focus is on the broadest
component of social behaviour - an entire society. In contrast to the psychologist, who is
principally concerned with the study of individual behaviour, or the sociologist, who is
concerned with the study of groups, the anthropologist is primarily interested in identifying the
very fabric of society itself.

 What is culture?
Given the broad and pervasive nature of culture, its study generally requires a detailed
examination of the character of the total society, including such factors as language, knowledge,
laws, religions, food customs, music, art, technology, work patterns, product, and other artefacts
that give a society its distinctive flavour. In a sense, culture is a society’s personality. For this
reason, it is not easy to define its boundaries.

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Because our objective is to understand the influence of culture on consumer behaviour, we
define culture as the sum total of learned beliefs, values, and customs that serve to direct the
consumer behaviour of members of a particular society.

The belief and value components of our definition refer to the accumulated feelings and priorities
that individuals have about “things” and possessions. More precisely, beliefs consist of the very
large number of mental or verbal statements (i.e. ”i believe……”) that reflect a person’s
particular knowledge and assessment of something (another person, a store, a product, a brand).
Values also are beliefs. Values differ from other beliefs, however, because they meet the
following criteria
(1) They are relatively few in number.
(2) They serve as a guide for culturally appropriate behavior.
(3) They are enduring or difficult to change.
(4) They are not tied to specific objects or situations.
(5) They are widely accepted by the members of a society.
therefore, in a broad sense, both values and beliefs 42 are mental images that affect a wide range
of specific attitudes that, in turn, influence the way a person is likely to respond in a specific
situation.
The criteria that a person uses to evaluate alternative brands in a product category (such as volvo
versus jaguar automobiles), or his or her eventual preference for one of these brands over the
other, are influenced by both a person’s general values (perceptions as to what constitutes quality
and the meaning of country of origin) and specific beliefs (particular perceptions about the
quality of swedish –made versus english-made cars). In contrast to beliefs and values, customs
are overt modes of behaviour that constitute culturally approved or acceptable ways of behaving
in specific situations. Customs consist of everyday or routine behaviour. For example, a
consumer’s routine behaviour, such as adding sugar and milk to coffee, putting ketchup on
hamburgers, putting mustard on frankfurters, and having a salad after rather than before the main
course of a meal, are customs. Thus, whereas beliefs and values are guides for behaviour,
customs are usual and acceptable ways of behaving
It is difficult to present only one definition of culture and expect it to portray the richness of the
field and its relevance to understanding consumer behaviour. However, the following two are
representative:
That complex whole that includes knowledge, beliefs, art, morals, law, custom, and any other
capabilities and habits acquired by man as a member of society. The distinctive way of life of a
group of people, their complete design for living.
Therefore, culture is everything that is socially learned and shared by the members of a society.
Culture consists of material and non material components. Non material culture includes the
words people use; the ideas, customs, and beliefs they share; and the habits they pursue. Material
culture consists of all the physical substances that have been changed and used by people, such
as tools, automobiles, roads, and farms. In a marketing and consumer behaviour context,
artefacts of the material culture would include all the products and services which are produced
and consumed; nonmaterial culture would include the way in which consumers shop in
supermarkets, our desire for newer and better products, and our responses to the word “sale”.
The significance of culture in understanding human behaviour (of which consumer behaviour is

13
a part) is that it extends our understanding of the extent to which people are more than just
chemistry, physiology, or a set of biological drives and instincts.
The implication is that although all customers may be biologically similar, their views of the
world, what they value, and how they act differ according to their cultural backgrounds. It has
long been recognized that culture influences consumers. All of the activities in which people
engage are culturally determined, and nearly all purchases of goods are made either to provide
physical comfort or to implement the activities that make up the life of a culture.
Thus, an understanding of culture enables the marketer to interpret the reaction of consumers to
alternative marketing strategies. Sometimes guidance from cultural anthropologists (those social
scientists who study people and their culture) is sought in order to gain a better understanding of
the market anthropologists are able to assist the marketer in understanding how culture is
reflected in individuals and in society. Anthropologists have also helped marketers recognize that
consumer goods have a significant ability to carry and communicate cultural meaning. This
occurs through a process in which cultural meaning is drawn from a particular cultural world and
is transferred to a consumer goods through advertising and the fashion system and then from
these goods into the life of the individual consumer through certain consumption rituals. A wide
range of measurement techniques is used to study culture. The range includes projective
techniques, attitude measurement methods, field observation, participant observation, content
analysis, and value measurement survey techniques.

 Influence of social class on consumer behavior

The term “social class” has been defined as a group consisting of a number of people who have
approximately equal position in a society. These positions may be achieved rather than ascribed,
with some opportunity existing for upward or downward movement to other classes.
Although social class can be thought of as a continuum a range of social positions on which each
member of society can be placed –researchers have preferred to divide the continuum into a
small number of specific social classes or strata. Within this framework, the concept of social
class is used to assign individuals or families to a social class category. Consistent with this
practice, social class is defined as the division of members of a society into a hierarchy of
distinct status classes, so that members of each class have relatively the same status and members
of all other classes have either more or less status.
Most societies can be divided into a social class hierarchy where by some individuals have
higher status than others. These social classes are identifiable groups of individuals whose
behaviours and lifestyles differ from those of other classes. Members of a particular social class
tend to share similar values and behaviour patterns. It is important to stress that social classes are
not formal groups with a strong identity but rather loose collections of individuals with similar
life experiences. In most societies, individuals can be divided into three major groupings of high,
middle, and lower classes. Often, however finer distinctions are made. The united states, for
example, is typically divided into six or seven levels that the largest numbers of individuals are
concentrated in the middle classes (65 to 70 percent of population). In thailand, there are five
classes:
(1) an aristocracy (descendants of royalty),
(2) an elite (composed of top professionals and political leaders),
(3) an upper-middle class (merchants, small business people, and white–collar workers),
(4) the lower–middle class (crafts people and skilled labourers)

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(5) the lower class (unskilled labourers and peasants). Although most societies have some kind
of hierarchical structure, the size and composition of the classes depends on the relative
prosperity of a particular country. For example, compared with united states, the strong
economies of japan and scandinavia result in an even larger and more predominant middle class
with much smaller groups above and below. In other words, there is greater quality among
people than in other societies. The japanese structure represents a concreted government effort to
abolish the social class system and mix people together from all levels of society.
Interestingly, across most societies the upper classes are more similar to each other than they are
to other classes within their own countries because the upper classes tend to be more
cosmopolitan and international in orientation. The lower classes, on the other hand, are most
likely to be culture bound (unaware of other cultures and therefore little influenced by them).
As a result, they tend to be the most different from the other classes in terms of lifestyles, dress,
and eating behaviours.

 Influnece of family on consumer behvior.

Although the term family is a basic concept, it is not easy to define because family composition
and structure, as well as the roles played by family members, are almost always in transition.
Traditionally, however, family is defined as two or more persons related by blood, marriage, or
adoption who reside together. In more dynamic sense, the individuals who constitute a family
might be described as members of the most basic social group who live together and interact to
satisfy their personal and mutual needs. According to many sources, the family remains the
central or dominant institution in providing for the welfare of its members.
Although families sometimes are referred to as households, not all households are families. For
example, a household might include individuals who are not related by blood, marriage, or
adoption, such as unmarried couples, family friends, roommates, or boarders. However, within
the context of consumer behaviour, households and families usually are treated as synonymous.
In most western societies, three types of families dominate: the married couple, the nuclear
family, and the extended family. The simplest type of family, in number of members, is the
married couple- a husband and a wife. As a household unit, the married couple generally is
representative of either new married who have not yet started a family or older couples who have
already raised their children.
A husband and wife and one or more children constitute a nuclear family. This type of family is
still commonplace but has been on the decline. The nuclear family, together with at least one
grandparent living within the household, is called an extended family. Within the past 30 years
the incidence of the extended family has also declined because of the geographic mobility that
splits up families. Moreover, because of divorce, separation, and out- of-wedlock births, there
has been a rapid increase in the number of single-parent family households consisting of one
parent and at least one child. For instance in an individualistic society such as that in canada, the
nuclear family is most common. In a kinship culture (with extended families), such as that in
thailand, a family would commonly include a head of household, married adult children, and
grandchildren.
A key aspect of households is that more than one individual can become involved in acquisition
and consumption. Thus, we discuss various aspects of household consumer behaviour, with
particular emphasis on various household decision roles and how household members influence
decision processes. Whenever consumer behaviour occurs in the context of a multi person
household, there are a variety of tasks or roles that may be performed in acquiring and

15
consuming a product or service. The household members who perform these tasks or roles are
defined as follows:
1. Gatekeeper: members of a household who collect and control information important to the
decision.
2. Influencer: members of the household who try to express their opinions and influence the
decision.
3. Decider: the person or persons who actually determine which product or service will be
chosen.
4. Buyer: the household member who physically acquires the product or service.
5. User: the members of the household who consume the product.

A key point is that each role can be performed by different household members and by a single
individual, subset of individuals, or the entire household.
Although many marketers recognize the family as the basic consumer decision making unit, they
most frequently examine the attitudes and behaviour of the one family member whom they
believe to be the major decision maker. In some cases, they also examine the attitudes and
behaviour of the person most likely to be the primary user of the product or service. For instance,
in the case of men’s underwear, which is frequently purchased by women for their husbands and
unmarried sons, it is commonplace to seek the views of both the men who wear the underwear
and the women who buy it. By considering both the likely user and the likely purchaser, the
marketer obtains a richer picture of the consumption process.

 Purchasing process
In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the
consumer’s purchase decision will be to buy the most preferred brand, but two factors can come
between the purchase intention and the purchase decision:
 the attitudes of others
 unexpected situational factors

If anna’s husband feels strongly that anna should buy the lowest-priced camera, then the chances
of anna’s buying a more expensive camera will be reduced by effect of the first factor (i.e. the
attitude of others). The consumer may form a purchase intention based on factors such as
expected income, expected price, and expected product benefits. However unexpected events
may change the purchase intention. Anna may lose her job, some other purchase may become
more urgent, or a friend may report being disappointed in her preferred camera, or a close
competitor may drop its price. Thus preferences and even purchase intentions do not always
result in actual purchase choice.

 Post purchasing behavior

Post-purchasing behaviour is the stage of the buyer decision process in which consumers take
further action after purchase, based on their satisfaction or dissatisfaction. The marketer’s job
does not end when the product is bought. After purchasing the product, the consumer will be

16
satisfied or dissatisfied and will engage in post purchase behaviour of interest to the marketer.
What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies
in the relationship between the:
 consumer’s expectations
 product’s perceived performance

If the product falls short of expectations, the consumer is disappointed; if it meets expectations,
the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The larger the
gap between expectations and performance, the greater the consumer’s dissatisfaction. This
suggests that sellers should make product claims that faithfully represent the product’s
performance so that buyers are satisfied. Some sellers might even understate performance levels
to boost consumer satisfaction with the product. For example, boeing’s salespeople tend to be
conservative when they estimate the potential benefits of their aircraft. They almost always
underestimate fuel efficiency. They promise a 5 percent saving that turns out to be 8 percent.
Customers are delighted with better-than-expected performance; they buy again and tell other
potential customers that boeing lives up to its premises. Almost all major purchases result in
cognitive dissonance, or discomfort caused by post-purchase conflict. After the purchase,
consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks
of the brands not bought. However, every purchase involves compromise. Consumers feel
uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the
brands not purchased. Thus consumers feel at least some post-purchase dissonance for every
purchase.
Why is it so important to satisfy the customer? Such satisfaction is important because a
company’s sales come from two basic groups:
1. New customers
2. Retained customers

It usually costs more to attract new customers than to retain current ones. And the best way to
retain current customers is to keep them satisfied. Customer satisfaction is a key to building
lasting relationships with consumers to keeping and growing consumers and reaping their
customer lifetime value. Satisfied customers buy a product again, talk favourably to others about
the product, pay less attention to competing brands and advertising, and buy other products from
the company. Many marketers go beyond merely meeting the expectations of customers- they
aim to delight the customer. A dissatisfied consumer responds differently. Whereas, on average,
a satisfied customer tells 3 people about a good product experience, a dissatisfied customer
gripes to 11 people. In fact, one study showed that 13 percent of the people who had a problem
with an organization complained about the company to more than 20 people. Clearly, bad word
of mouth travels farther and faster than good word of mouth and can quickly damage consumer
attitudes about a company and its products. Therefore, a company would be wise to measure
customer satisfaction regularly. It cannot simply rely on dissatisfied customers to volunteer their
complaints when they are dissatisfied. Some 96 percent of unhappy customers never tell the
company about their problem. Companies should set up systems that encourage customers to
complain. In this way, the company can learn how well it is doing and how it can improve. The
3m company claims that over tow-thirds of its new-product ideas come from listening to
customer complaints. But listening is not enough-the company also must respond constructively

17
to the complaints it receives. By studying the overall buyer decision, marketers may be able to
find ways to help consumers move
Through it. For example, if consumers are not buying a new product becausethey do not perceive
a need for it, marketing might launch advertising messages that trigger the need and show how
the product solves customers’ problems. If customers know about the product but are not buying
because they hold unfavourable attitudes toward it, the marketer must find ways to either change
the product or change consumer perceptions

 The psychology of marketing

Introduction
The study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how the psychology of how consumers think, feel, reason, and
select between different alternatives (e.g., brands, products, and retailers);
The psychology of how the consumer is influenced by his or her environment (e.g., culture,
family, signs, media);
The behaviour of consumers while shopping or making other marketing decisions;
Limitations in consumer knowledge or information processing abilities influence decisions and
marketing outcome; 
How consumer motivation and decision strategies differ between products that differ in their
level of importance or interest that they entail for the consumer; and
How marketers can adapt and improve their marketing campaigns and marketing strategies to
more effectively reach the consumer.
One "official" definition of consumer behaviour is "the study of individuals, groups, or
organizations and the processes they use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer
and society." although it is not necessary to memorize this definition, it brings up some useful
points:
Behaviour occurs either for the individual, or in the context of a group (e.g., friend’s influence
what kinds of clothes a person wears) or an organization (people on the job make decisions as to
which products the firm should use).
Consumer behaviour involves the use and disposal of products as well as the study of how they
are purchased. Product use is often of great interest to the marketer, because this may influence
how a product is best positioned or how we can encourage increased consumption. Since many
environmental problems result from product disposal (e.g., motor oil being sent into sewage
systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.
Consumer behaviour involves services and ideas as well as tangible products.

18
The impact of consumer behaviour on society is also of relevance. For example, aggressive
marketing of high fat foods, or aggressive marketing of easy credit, may have serious
repercussions for the national health and economy.
There are four main applications of consumer behaviour:
The most obvious is for marketing strategy—i.e., for making better marketing campaigns. For
example, by understanding that consumers are more receptive to food advertising when they are
hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that
new products are usually initially adopted by a few consumers and only spread later, and then
only gradually, to the rest of the population, we learn that (1) companies that introduce new
products must be well financed so that they can stay afloat until their products become a
commercial success and (2) it is important to please initial customers, since they will in turn
influence many subsequent customers’ brand choices.
Social marketing involves getting ideas across to consumers rather than selling something. Marty
fishbone, a marketing professor, went on sabbatical to work for the centres for disease control
trying to reduce the incidence of transmission of diseases through illegal drug use. The best
solution, obviously, would be if we could get illegal drug users to stop. This, however, was
deemed to be infeasible. It was also determined that the practice of sharing needles was too
ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes,
dr. Fishbone created a campaign that encouraged the cleaning of needles in bleach before sharing
them, a goal that was believed to be more realistic.
As a final benefit, studying consumer behaviour should make us better consumers. Common
sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you
should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you
often pay a size premium by buying the larger quantity. In other words, in this case, knowing this
fact will sensitize you to the need to check the unit cost labels to determine if you are really
getting a bargain.
There are several units in the market that can be analyzed. Our main thrust in this course is the
consumer. However, we will also need to analyze our own firm’s strengths and weaknesses and
those of competing firms. Suppose, for example, that we make a product aimed at older
consumers, a growing segment. A competing firm that targets babies, a shrinking market, is
likely to consider repositioning toward our market. To assess a competing firm’s potential threat,
we need to examine its assets (e.g., technology, patents, market knowledge, and awareness of its
brands) against pressures it faces from the market. Finally, we need to assess conditions (the
marketing environment). For example, although we may have developed a product that offers
great appeal for consumers, a recession may cut demand dramatically.
 Consumer research methods
Market research is often needed to ensure that we produce what customers really want and not
what we think they want.

19
Primary vs. Secondary research methods.  There are two main approaches to marketing. 
Secondary research involves using information that others have already put together. 
for example, if you are thinking about starting a business making clothes for tall people, you
don’t need to question people about how tall they are to find out how many tall people exist—
that information has already been published by the u.s. government. 
Primary research, in contrast, is research that you design and conduct yourself. 
For example, you may need to find out whether consumers would prefer that your soft drinks be
sweater or tarter.
Research will often help us reduce risks associated with a new product, but it cannot take the risk
away entirely.  It is also important to ascertain whether the research has been complete. 
for example, coca cola did a great deal of research prior to releasing the new coke, and
consumers seemed to prefer the taste.  However, consumers were not prepared to have this drink
replace traditional coke.
Secondary methods.  For more information about secondary market research tools and issues,
please see my handout.
Primary methods. Several tools are available to the market researcher—e.g., mail
questionnaires, phone surveys, observation, and focus groups.  Please see my handout for
advantages and disadvantages of each. The below flow chart suggests appropriate choices for
different types of information needs.

20
Surveys are useful for getting a great deal of specific information.  Surveys can contain open-
ended questions (e.g., “in which city and state were you born? ____________”) or closed-ended,
where the respondent is asked to select answers from a brief list (e.g., “__male ___ female.” 
Open ended questions have the advantage that the respondent is not limited to the options listed,
and that the respondent is not being influenced by seeing a list of responses.  However, open-
ended questions are often skipped by respondents, and coding them can be quite a challenge.  In
general, for surveys to yield meaningful responses, sample sizes of over 100 are usually required
because precision is essential.  For example, if a market share of twenty percent would result in a
loss while thirty percent would be profitable, a confidence interval of 20-35% is too wide to be
useful.
Surveys come in several different forms. 
Mail surveys are relatively inexpensive, but response rates are typically quite low—typically
from 5-20%.
Phone-surveys get somewhat higher response rates, but not many questions can be asked
because many answer options have to be repeated and few people are willing to stay on the
phone for more than five minutes. 
mall intercepts are a convenient way to reach consumers, but respondents may be reluctant to
discuss anything sensitive face-to-face with an interviewer.
Surveys, as any kind of research, are vulnerable to bias.  The wording of a question can
influence the outcome a great deal. 
For example, more people answered no to the question “should speeches against democracy be
allowed?” Than answered yes to “should speeches against democracy be forbidden?”  For face-
to-face interviews, interviewer bias is a danger, too.  Interviewer bias occurs when the
interviewer influences the way the respondent answers. 
for example, unconsciously an interviewer that works for the firm manufacturing the product in
question may smile a little when something good is being said about the product and frown a
little when something negative is being said.  The respondent may catch on and say something
more positive than his or her real opinion.  Finally, a response bias may occur—if only part of
the sample responds to a survey, the respondents’ answers may not be representative of the
population.
Focus groups are useful when the marketer wants to launch a new product or modify an existing
one.  A focus group usually involves having some 8-12 people come together in a room to
discuss their consumption preferences and experiences.  The group is usually led by a moderator,
who will start out talking broadly about topics related broadly to the product without mentioning
the product itself. 
for example, a focus group aimed at sugar-free cookies might first address consumers’ snacking
preferences, only gradually moving toward the specific product of sugar-free cookies.  By not
mentioning the product up front, we avoid biasing the participants into thinking only in terms of
the specific product brought out.   Thus, instead of having consumers think primarily in terms of

21
what might be good or bad about the product, we can ask them to discuss more broadly the
ultimate benefits they really seek. 
For example, instead of having consumers merely discuss what they think about some sugar-
free cookies that we are considering releasing to the market, we can have consumers speak about
their motivations for using snacks and what general kinds of benefits they seek.  Such a
discussion might reveal a concern about healthfulness and a desire for wholesome foods. 
Probing on the meaning of wholesomeness, consumers might indicate a desire to avoid artificial
ingredients.  This would be an important concern in the marketing of sugar-free cookies, but
might not have come up if consumers were asked to comment directly on the product where the
use of artificial ingredients is, by virtue of the nature of the product, necessary.
Focus groups are well suited for some purposes, but poorly suited for others.  In general, focus
groups are very good for getting breadth—i.e., finding out what kinds of issues are important for
consumers in a given product category.  Here, it is helpful that focus groups are completely
“open-ended:” the consumer mentions his or her preferences and opinions, and the focus group
moderator can ask the consumer to elaborate.  In a questionnaire, if one did not think to ask
about something, chances are that few consumers would take the time to write out an elaborate
answer.  Focus groups also have some drawbacks,
for example:
They represent small sample sizes.  Because of the cost of running focus groups, only a few
groups can be run.  Suppose you run four focus groups with ten members each. This will result in
an n of 4(10)=40, which is too small to generalize from.  Therefore, focus groups cannot give us
a good idea of:

What proportion of the population is likely to buy the product.

What price consumers are willing to pay.
The groups are inherently social.  This means that:
Consumers will often say things that may make them look good (i.e., they watch public
television rather than soap operas or cook fresh meals for their families daily) even if that is not
true.
Consumers may be reluctant to speak about embarrassing issues (e.g., weight control, birth
control).
Personal interviews involve in-depth questioning of an individual about his or her interest in or
experiences with a product.  The benefit here is that we can get really into depth (when the
respondent says something interesting, we can ask him or her to elaborate), but this method of
research is costly and can be extremely vulnerable to interviewer bias.
To get a person to elaborate, it may help to try a common tool of psychologists and psychiatrists
—simply repeating what the person said.  He or she will often become uncomfortable with the
silence that follows and will then tend to elaborate.  This approach has the benefit that it

22
minimizes the interference with the respondent’s own ideas and thoughts.  He or she is not
influenced by a new question but will, instead, go more in depth on what he or she was saying.
Personal interviews are highly susceptible to inadvertent “signalling” to the respondent. 
Although an interviewer is looking to get at the truth, he or she may have a significant interest in
a positive consumer response.  Unconsciously, then, he or she may inadvertently smile a little
when something positive is said and frown a little when something negative is said. 
Consciously, this will often not be noticeable, and the respondent often will not consciously be
aware that he or she is being “reinforced” and “punished” for saying positive or negative things,
but at an unconscious level, the cumulative effect of several facial expressions are likely to be
felt.  Although this type of conditioning will not get a completely negative respondent to say all
positive things, it may “swing” the balance a bit so that respondents are more likely to say
positive thoughts and withhold, or limit the duration of, negative thoughts.
Projective techniques are used when a consumer may feel embarrassed to admit to certain
opinions, feelings, or preferences.  For example, many older executives may not be comfortable
admitting to being intimidated by computers.   It has been found that in such cases, people will
tend to respond more openly about “someone else.”  Thus, we may ask them to explain reasons
why a friend has not yet bought a computer, or to tell a story about a person in a picture who is
or is not using a product.  The main problem with this method is that it is difficult to analyze
responses.
Projective techniques are inherently inefficient to use.  The elaborate context that has to be put
into place takes time and energy away from the main question.  There may also  be real
differences between the respondent and the third party.  Saying or thinking about something that
“hits too close to home” may also influence the respondent, who may or may not be able to see
through the ruse.
Observation of consumers is often a powerful tool.  Looking at how consumers select products
may yield insights into how they make decisions and what they look for. 
For example, some american manufacturers were concerned about low sales of their products in
japan.  Observing japanese consumers, it was found that many of these japanese consumers
scrutinized packages looking for a name of a major manufacturer—the product specific-brands
that are common in the u.s. (e.g., tide) were not impressive to the japanese, who wanted a name
of a major firm like mitsubishi or proctor & gamble.  Observation may help us determine how
much time consumers spend comparing prices, or whether nutritional labels are being consulted.
A question arises as to whether this type of “spying” inappropriately invades the privacy of
consumers.   Although there may be cause for some concern in that the particular individuals
have not consented to be part of this research, it should be noted that there is no particular
interest in what the individual customer being watched does.  The question is what consumers—
either as an entire group or as segments—do.  Consumers benefit, for example, from stores that
are designed effectively to promote efficient shopping.  If it is found that women are more
uncomfortable than men about others standing too close, the areas of the store heavily trafficked

23
by women can be designed accordingly.  What is being reported here, then, are averages and
tendencies in response.  The intent is not to find “juicy” observations specific to one customer.
The video clip with pace underhill that we saw in class demonstrated the application of
observation research to the retail setting.  By understanding the phenomena such as the tendency
toward a right turn, the location of merchandise can be observed.  It is also possible to identify
problem areas where customers may be overly vulnerable to the “but brush,” or overly close
encounter with others.  This method can be used to identify problems that the customer
experiences, such as difficulty finding a product, a mirror, a changing room, or a store employee
for help.
Online research methods.  The internet now reaches the great majority of households in the u.s.,
and thus, online research provides new opportunity and has increased in use.
One potential benefit of \ is the use of “conditional branching.”  In conventional paper and pencil
surveys, one question might ask if the respondent has shopped for a new car during the last eight
months.  If the respondent answers “no,” he or she will be asked to skip ahead several questions
—e.g., going straight to question 17 instead of proceeding to number 9.  If the respondent
answered “yes,” he or she would be instructed to go to the next question which, along with the
next several ones, would address issues related to this shopping experience.  Conditional
branching allows the computer to skip directly to the appropriate question.  If a respondent is
asked which brands he or she considered, it is also possible to customize brand comparison
questions to those listed.  Suppose,
for example, that the respondent considered ford, toyota, and hyundai, it would be possible to
ask the subject questions about his or her view of the relative quality of each respective pair—in
this case, ford vs. Toyota, ford vs. Hyundai, and toyota vs. Hyundai.
There are certain drawbacks to online surveys. Some consumers may be more comfortable with
online activities than others—and not all households will have access.  Today, however, this type
of response bias is probably not significantly greater than that associated with other types of
research methods.  A more serious problem is that it has consistently been found in online
research that it is very difficult—if not impossible—to get respondents to carefully read
instructions and other information online—there is a tendency to move quickly.  This makes it
difficult to perform research that depends on the respondent’s reading of a situation or product
description.
Online search data and page visit logs provide valuable ground for analysis.  It is possible to see
how frequently various terms are used by those who use a firm’s web site search feature or to see
the route taken by most consumers to get to the page with the information they ultimately want. 
If consumers use a certain term frequently that is not used by the firm in its product descriptions,
the need to include this term in online content can be seen in search logs.  If consumers take a
long, “torturous” route to information frequently accessed, it may be appropriate to redesign the
menu structure and/or insert hyperlinks in “intermediate” pages that are found in many users’
routes.

24
Scanner data.  Many consumers are members of supermarket “clubs.”  In return for signing p for
a card and presenting this when making purchases, consumers are often eligible for considerable
discounts on selected products.
Researchers use a more elaborate version of this type of program in some communities.  Here, a
number of consumers receive small payments and/or other incentives to sign up to be part of a
research panel.  They then receive a card that they are asked to present any time they go
shopping.  Nearly all retailers in the area usually cooperate.  It is now possible to track what the
consumer bought in all stores and to have a historical record.
The consumer’s shopping record is usually combined with demographic information (e.g.,
income, educational level of adults in the household, occupations of adults, ages of children, and
whether the family owns and rents) and the family’s television watching habits.  (electronic
equipment run by firms such as a. C. Nielsen will actually recognize the face of each family
member when he or she sits down to watch).
It is now possible to assess the relative impact of a number of factors on the consumer’s choice
—e.g.,
What brand in a given product category was bought during the last, or a series of past, purchase
occasions;
Whether, and if so, how many times a consumer has seen an ad for the brand in question or a
competing one;
Whether the target brand (and/or a competing one) is on sale during the store visit;
Whether any brand had preferential display space;
The impact of income and/or family size on purchase patterns; and
Whether a coupon was used for the purchase and, if so, its value.
A “split cable” technology allows the researchers to randomly select half the panel members in a
given community to receive one advertising treatment and the other half another.  The selection
is truly random since each household, as opposed to neighbourhood, is selected to get one
treatment or the other.  Thus, observed differences should, allowing for sampling error, the be
result of advertising exposure since there are no other systematic differences between groups.
Interestingly, it has been found that consumers tend to be more influenced by commercials that
they “zap” through while channel surfing even if they only see part of the commercial.  This
most likely results from the reality that one must pay greater attention while channel surfing than
when watching a commercial in order to determine which program is worth watching.
Scanner data is, at the present time, only available for certain grocery item product categories—
e.g., food items, beverages, cleaning items, laundry detergent, paper towels, and toilet paper.  It
is not available for most non-grocery product items.  Scanner data analysis is most useful for
frequently purchased items (e.g., drinks, food items, snacks, and toilet paper) since a series of
purchases in the same product category yield more information with greater precision than would
a record of one purchase at one point in time.  Even if scanner data were available for electronic

25
products such as printers, computers, and mp3 players, for example, these products would be
purchased quite infrequently.  A single purchase, then, would not be as effective in effectively
distinguishing the effects of different factors—e.g., advertising, shelf space, pricing of the
product and competitors, and availability of a coupon—since we have at most one purchase
instance during a long period of time during which several of these factors would apply at the
same time.  In the case of items that are purchased frequently, the consumer has the opportunity
to buy a product, buy a competing product, or buy nothing at all depending on the status of the
brand of interest and competing brands.  In the case of the purchase of an mp3 player, in
contrast, there may be promotions associated with several brands going on at the same time, and
each may advertise.  It may also be that the purchase was motivated by the breakdown of an
existing product or dissatisfaction or a desire to add more capabilities.
Physiological measures are occasionally used to examine consumer response.  For example,
advertisers may want to measure a consumer’s level of arousal during various parts of an
advertisement.  This can be used to assess possible discomfort on the negative side and level of
attention on the positive side.
By attaching a tiny camera to plain eye glasses worn by the subject while watching an
advertisement, it is possible to determine where on screen or other ad display the subject focuses
at any one time.  If the focus remains fixed throughout an ad sequence where the interesting and
active part area changes, we can track whether the respondent is following the sequence
intended.  If he or she is not, he or she is likely either not to be paying as much attention as
desired or to be confused by an overly complex sequence.  In situations where the subject’s eyes
do move, we can assess whether this movement is going in the intended direction.
Mind-reading would clearly not be ethical and is, at the present time, not possible in any event. 
However, it is possible to measure brain waves by attaching electrodes.  These readings will not
reveal what the subject actually thinks, but it is possible to distinguish between beta waves—
indicating active thought and analysis—and alpha waves, indicating lower levels of attention.
An important feature of physiological measures is that we can often track performance over
time.  A subject may,
for example, be demonstrating good characteristics—such as appropriate level of arousal and
eye movement—during some of the ad sequence and not during other parts.  This, then, gives
some guidance as to which parts of the ad are effective and which ones need to be reworked.
In a variation of direct physiological measures, a subject may be asked, at various points during
an advertisement, to indicate his or her level of interest, liking, comfort, and approval by moving
a lever or some instrument (much like one would adjust the volume on a radio or mp3 player). 
Republican strategist used this technique during the impeachment and trial of bill clinton in the
late 1990s.  By watching approval during various phases of a speech by the former president, it
was found that viewers tended to respond negatively when he referred to “speaking truthfully”
but favourably when the president referred to the issues in controversy as part of his “private
life.”  The republican researchers were able to separate average results from democrats,
independents, and republicans, effectively looking at different segments to make sure that

26
differences between each did not cancel out effects of the different segments.  (for example, if at
one point democrats reacted positively and republicans responded negatively with the same
intensity, the average result of apparent indifference would have been very misleading).
Research sequence.  In general, if more than one type of research is to be used, the more flexible
and less precise method—such as focus groups and/or individual interviews—should generally
be used before the less flexible but more precise methods (e.g., surveys and scanner data) are
used.  Focus groups and interviews are flexible and allow the researcher to follow up on
interesting issues raised by participants who can be probed.  However, because the sample sizes
are small and because participants in a focus group are influenced by each other, few data points
are collected.  If we run five focus groups with eight people each, for example, we would have a
total of forty responses.  Even if we assume that these are independent, a sample size of forty
would give very imprecise results.  We might conclude, for example, that somewhere between
5% and 40% of the target market would be interested in the product we have to offer.  This is
usually no more precise than what we already reasonably new.  Questionnaires, in contrast, are
highly inflexible.  It is not possible to ask follow-up questions.  Therefore, we can use our
insights from focus groups and interviews to develop questionnaires that contain specific
questions that can be asked to a larger number of people.  There will still be some sampling
error, but with a sample size of 1,000+ responses, we may be able to narrow the 95% confidence
interval for the percentage of the target market that is seriously interested in our product to, say,
17-21%, a range that is much more meaningful.
Cautions.  Some cautions should be heeded in marketing research.  First, in general, research
should only be commissioned when it is worth the cost.  Thus, research should normally be
useful in making specific decisions (what size should the product be?  Should the product be
launched?  Should we charge $1.75 or $2.25?)
Secondly, marketing research can be, and often is, abused.  Managers frequently have their own
“agendas” (e.g., they either would like a product to be launched or would prefer that it not be
launched so that the firm will have more resources left over to tackle their favourite products). 
Often, a way to get your way is to demonstrate through “objective” research that your opinions
make economic sense. One example of misleading research, which was reported nationwide in
the media, involved the case of “the pentagon declares war on rush limbaugh.”  The pentagon,
within a year of the election of democrat bill clinton, reported that only 4.2% of soldiers listening
to the armed forces network wanted to hear rush limbaugh.  However, although this finding was
reported without question in the media, it was later found that the conclusion was based on the
question “what single thing can we do to improve programming?”  If you did not write in
something like “carry rush limbaugh,” you were counted as not wanting to hear him.

27
 CHAPTER – 2
COMPANY PROFILE

28
29
 Chitale bandhu mithaiwale

Type Private

Industry Fmcg | food industry

Founded Pune, maharashtra, india in 1950 by

raghunathrao (bhausaheb) chitale.
Bhilawadi, maharashtra

Key Lt. Raghunathrao (bhausaheb) chitale

people (1950 - 2016)
Lt. Narsinha (rajabhau) chitale (1953 -
2010) madhav chitale (senior partner,
1967 - present) shrikrishna chitale (senior
partner, 1970 - present) sanjay chitale
(senior partner, 1983 - present) kedar
chitale (partner, 2000 - present)
Indraneel chitale (partner, 2011 - present)

Products Sweets, snacks & savouries.

Website www.chitalebandhu.in

30
Chitale bandhu mithaiwale is an indian snacks enterprise which popularly runs in maharashtra. It
was formed by shri. Raghunath bhaskar chitale(bhausaheb) and narsinha bhaskar
chitale(rajabhau) in 1950 as a subsidiary of the chitale group of industries. Its first outlet was set
up in bajirao road, pune (poona) city. Although its outlets are limited to major cities of
maharashtra, the products are distributed all across india.[1][2] over the years, chitale bandhu has
been known for making namkeen (especially bakarwadis) and sweets. It is also known to export
its namkeen to countries such asu.s., singapore, and israel.[3] the brand menu consists of over
sixty different kinds of sweets and forty different kinds of namkeen. The enterprise has an
average turnover of around 200 crore rupees with around 2,000 to 2,500 customers shopping
every day.[3]

 HISTORY[EDIT]
 EARLY YEARS[EDIT]
In mid-1930s, bhaskar ganesh chitale, also known as b. G. Chitale, was an ordinary milk
businessman located in a small village of limb gaon situated in the satara district of maharashtra.
Due to an unexpected turn of events, his cattle fell prey to an unknown disease resulting in their
death. This caused a major loss in the business owned by the chitale family.[4] in 1939, with a
fresh start b. G. Chitale founded the chitale group of industries by starting their first enterprise,
chitale dairy. The brand quickly gained reputation for its quality after it expanded its reach after
raghunath rao chitale (also known as bhau chitale; son of b. G. Chitale) set up a shop in mumbai,
maharashtra in a partnership.[4]
In the year 1946, the partnership came to an end and raghunath rao chitale had to leave mumbai.
He then moved to pune and along with his brother narsinha started vending milk supplied to him
from bhilawadi in palus, maharashtra. The business became a success in the city and in the year
1950 he bought a 500 square feet shop where he set up a new enterprise, chitale bandhu
mithaiwale.[3][4] the shop

Following in the footsteps of his father sheri b.g. chital, the visionary and founder of chi
tale’s dairy business, sheriraghunathrao (bhausaheb) chital laid the foundation of chital
bandhu mithaiwale in 1950. Like all other chital business undertakings, the enterprise made a
humble beginning with a small manual unit run with the assistance of domestic help.

The enterprise began its operations in the heart of pune city, in bajirao road, which is now
one of the biggest and largest selling outlets in pune. The second outlet opened at deccan
gymkhana, under the guidance of sheri n.b. (rajabhau) chital, the younger brother of
bhausaheb. A dream inspired by sheri b.g. chital, has now been transformed into the most
renowned and reliable name in india’s food and confectionary industry. Set up in 1950 in a
500 sq. Ft. Shop, chital bandhu has had a successful journey with two company-owned shops
in the city’s vibrant localities of bajirao road and deccan gymkhana. Besides, there are eleven
franchises spread across the city through which the brand sells.

The company continues to distinguish itself by maintaining second-to-none quality levels, which
has always been their hallmark. A dedicated workforce, along with technology and automation,
ensures stringent adherence to quality parameters. Their products have been duly validated by
industry experts (with haccp certification).

31
In all, six manufacturing units work in close tandem to bring you a variety of ever-popular chital
mithai, namkeen, and snacks. Of these, the unit located at ranjeshivapur near pune has two
automated manufacturing lines specifically devoted to the manufacture and export of
‘bakarwadi’, the maharashtrian snack item which is known the world over for its unique taste
and quality. Sweets like gulabjamuns, pedhas and rasgullas are also manufactured here, on hi-
tech machines imported from japan. All chitale products are manufactured with a ‘minimal
manual intervention’ policy, to retain consistency in quality and hygiene.

A foundation strongly engraved in the ethos of quality, excellence and superior customer service
has enabled the company to expand to international markets. The company currently exports its
range of products to countries across the european union, usa, south east asia and australia. The
far-reaching appeal is evidenced through the increasing demand for its products in the
international markets. A classic example of this is the very popular bakarwadi, a quintessential
maharashtrian item that is loved not just all across india, but has captivated the imagination of
culinary connoisseurs the world over. Having consistently delivered a tasteful, fresh and
nourishing experience for more than five decades, the company has successfully crafted a brand
identity that's truly unique!

Their 75 years of working celebrating the platinum anniversary of quality service, of our team
effort, of constant learning and improvement, of trials and tribulations.

Recounting three quarters of a century – a time full of stories filled with hearty laughter and
cheer, times when we meticulously constructed plans and realized dreams – big and small.

Celebrating the times we’ve overcome hardship, to win over hearts through persistent
confidence; celebrating an era resonating with trust…

Celebrating the joy of creating memories, together at all times!

 “although we are all living in nuclear families, we are forever close to each other…physically
and in spirit! If there’s a problem that arises, on the business or the personal front, we all sort it
out together.”

 THEIR VISION

To become leaders in the indian dairy industry, while retaining our indian traditions and family
values.
Be the first choice for consumers.
Give our customers value for money. This will be through improvement in technologies used in
our dairy, thus enhancing the quality of our raw material, our internal processes, and the
competency of our people.
Productivity enhancement of animals through genetic development programs whereby the
farmers too will be benefited.

32
Provide our customers with the cleanest and healthiest milk, for which the focus on nutrition
starts from the animals themselves, thus leading to more nutritional milk and milk products.
From farming to pharma … broaden the natural functional applications of milk and milk
products, by targeting medicinal, organoleptic, and other pharmaceutical and therapeutical
functional values.
Seamless flow of data from the plant floor to the board room, facilitating informed and
immediate decision making. Transformation of this data into useful domain knowledge, and
sharing the domain knowledge obtained back with the plant floor, for employee development.
Preserve and showcase our agricultural heritage, and protect local economic interests including
the development and education of our rural communities.
Maintain sensitivity to environment.
Be a preferred employer in our field, and provide an environment that challenges our employees
to learn, grow and prosper in an atmosphere of respect and recognition. Our employees will be
proud to be a part of the chitale family.
 THEIR MISSION
To become leaders in the indian dairy industry, while retaining our traditional and family values
Inspire sustained growth for our entire workforce and farmers who have struck up long term
partnerships with us
Understanding customer needs and protecting their interests to build lifelong relationships and
brand loyalty
Development of indigenous products, constant research, innovative planning and processes,
adaptive technologies and optimal resource utilization
Stay at the forefront of technology and management through scientific innovation and creative
management approaches

 CHITALES VALUES
A total quality-oriented approach
Customer - centric practices and service
Process excellence through pioneering technology and automation
 THEIR MANAGEMENT

The success of chitale dairy is closely intertwined with the unified approach religiously practiced
by each of the chitale family members.established by the patriarch of the group shri. Bhaskar
ganesh chitale in hometown bhilawadi way back in the 1950s as a small time milk distribution
business, the chitale dairy banner has come a long way indeed. Promoted by
shri.raghunathchitale, expanded and modernized by his brother shri. N. B. Chitale, the second
generation of the family worked very hard to realize their father’s vision. Parshuram (nanasaheb)
and dattatraya (kakasaheb) chitale stayed back in bhilawadi and played the instrumental role of

33
anchoring the business. The additional responsibility of the fast-expanding milk retailing
network in pune was ably shouldered by bhausaheb and rajabhauchitale.

The enterprise is now being ably and efficiently managed by shri.madhav, shri. Shrikrishna, shri.
Sanjay and shri.kedarchitale, who form the third and the fourth generations of the chitalefamily.
The chitales have distributed the responsibilities of the widespread span of business operations
amongst themselves and collectively look after the production, operations and marketing
functions. They are guided by a wise and experienced advisory board that comprises of shri. R.
B. And shri. N. B. Chitale, whose extensive experience helps the group chart new territories of
growth and constant innovation.

 CORPORATE SOCIAL RESPONSIBILITY

“give back to the community what you have gained from it” - is the principle that chitale group
advocates and embodies in their approach. They have applied an organic growth model to all
their business verticals which has ensured farmer growth and community development. This has
been made possible through initiatives such as:

Encouraging rural education by aiding schools

Establishing public gardens, bus shelters, community toilets

Building village roads, setting up rural hospitals

Promoting rainwater harvesting
Giving interest-free loans to landless labour for buffalo rearing
Motivating people through active participation in gram swachchhataabhiyan
Helping drought-affected farmers by supplying water and fodder
Extending donations for relief funds at the time of disaster and natural calamities like
earthquakes,floods,tsunamis

 CHITALE DIGITALS

Chitale digitals bears the quality tag of the chitale group. The company manufactures and
markets highly functional digital products. These cutting edge products are manufactured using
state-of-the-art technology and find application in day-to-day transactions in various industry
verticals. They help simplify and hasten processes at their application level.

FUTURE PLANS OF CHITALE BANDHU:

 chitale bandhu mithaiwale is focusing on packaging and online selling.
 franchisee outlets in maharashtra.

34
 retailing in international market.
But they are not focusing on large expansion.
Indian food industry:
The indian food market, according to the 'india food report 2008' by research and markets
Is estimated at over us$ 182 billion, and accounts for about two thirds of the total indian
Retail market.
In fact, the year 2008 has been a record year for india’s food grain sector with increased
Production

 PRODUCTS

Scientific inventory analysis plays a key role as a performance booster in an organization which
implements heavy automation in its processes. Keeping track of output and optimizing processes
requires industrious, precision monitoring systems that are calibrated to reliably function in a
fool proof manner. We, at chitale digitals, offer state-of-the-art products which can be broadly
classified under two major sections – inventory analysis and transactions management, allowing
you to control you businesses' resources with optimal

Every city has a sweet tooth. Chennai has jangiri and mysorepak, kolkata gets high
on rosogollas, delhi gorges on rabdijalebi and pune is famous for its pedhas. One place that has
been whetting pune’s appetite for sweets and savouries (namkeen) over 62 years is the famous
chitalebandhu.rosekatli, a colourful sweet that is high in protein and calcium and low in calories.
Relish the sweet and fresh rose flavour without worrying about piling on the extra weight
ingredients: cashewnut, sugar and rosemilk essence shelf life: 4 - 7 days regfrigeration: yes
vendor info: chitalebandhuare one of the largest manufacturers and sellers of eatables and food
products, based in the state of maharashtra

35
 Special sutar feni-
chitale bandhu sweets
Sutarfeni, Cambay popularity, is a delicious sweet,
shredded, flaky, rice dough, soaked in kesar and
topped with pista and almonds.  Ingredients: Sugar,
Water, Margarine Powdered, Pistachios, Saffron and
Powdered Almonds. Shelf Life: 4 - 7 Days
Regfrigeration: No Vendor Info: ChitaleBandhuare
one of the largest manufacturers and sellers of
eatables and food products, based in the state of
Maharashtra

Rose katli, a colourful sweet that is high in protein and calcium and low in calories. Relish the
sweet and fresh rose flavour without worrying about piling on the extra weight
Ingredients: cashewnut, sugar and rosemilk essence
Shelf life: 4 - 7 days

36
regfrigeration: yes
vendor info: chitalebandhuare one of the largest manufacturers and sellers of eatables and food
products, based in the state of maharashtra.
Sweets like shrikhandwadi that is a barfi, made of shrikhand and doodhipak.. Ingredients: hung
yogurt, sugar, nutmeg powder, saffron and green cardamom. Shelf life: 4 - 7 days regfrigeration

chitale bandhu soan papdi blueberry (200g)

₹110.00 add to basket

Chitale bandhu mithaiwale (we will buy

only from main shop at bajirao rd. Or
deccan pune)

All prices are for 1 kg or 1 pack

Rs.
1 Loni Rs. 260.00

37
 2 Chakka Rs. 160.00
3 Paneer Rs. 260.00
4 Tup Rs. 300.00
5 Gulabjam Rs. 160.00
6 Basundi Rs. 200.00
Barfi
7 Amba barfi Rs. 320.00
8 Khava barfi Rs. 300.00
9 Santra barfi Rs. 300.00
10 Naral barfi Rs. 180.00
11 Anjir barphi Rs. 520.00
Halava
12 Mahim halva Rs. 140.00
13 Special  mahimhalva Rs. 240.00
14 Pineapple halva Rs. 240.00
Vadi and misc.
15 Amba vadi Rs. 240.00
16 Shrikhand vadi Rs. 220.00
17 Aale vadi Rs. 120.00
18 Mysur pak Rs. 140.00
19 Battase/sakhar phutane Rs. 80.00
20 Mix mithai (vadi) Rs. 300.00
21 Soan papadi Rs. 200.00
22 Petha  Rs. 120.00
23 Chirote pakatale Rs. 220.00
24 Puranpoli Rs. 24.00
25 Pheni Rs. 160.00
26 Gul poli Rs. 26.00
27 Khava poli Rs. 24.00
28 Sanja poli Rs. 24.00
29 Balushahi Rs. 150.00
30 Sutter  pheni Rs. 120.00
31 Olya naralachi karanji Rs. 220.00
32 Anarase Rs. 280.00
Pedha
33 Sadha pedha Rs. 300.00
34 Rajkot pedha Rs. 350.00
35 Malai pedha Rs. 320.00
36 Jumbo pedha Rs. 400.00
37 Chocalate Rs. 400.00
38 Suger free pedha Rs. 380.00
39 Suger free kaju katali Rs. 600.00
40 Kandi pedha Rs. 300.00

38
 Roll & katali
41 Kaju roll
42 Kaju strawbery roll Rs. 560.00
43 Amba kaju roll Rs. 560.00
44 Kalakand Rs. 320.00
45 Kaju katali Rs. 540.00
46 Kesaar kaju katali Rs. 580.00
47 Dry fruit masti Rs. 640.00
Laddu
48 Motichur ladu Rs. 160.00
49 Special motichur ladu Rs. 280.00
50 Bundi ladu Rs. 140.00
51 Rajasthani ladu Rs. 280.00
52 Dink laddu Rs. 260.00
53 Special dink ladu Rs. 300.00
54 Shengdana ladu Rs. 150.00
55 Rava ladu Rs. 240.00
56 Besan ladu Rs. 240.00
Bakarwadi
\\\ Bakarvadi Rs. 180.00

 INFRASTRUCTURE FACILITIES

39
Chitale bandhu mithaiwale
The cost of creating 1 bag has been reduced by 30%

Velteko, a specialist in vertical packaging machines, has been working together with chitale
bandhu mithaiwale since 2016. It is one of the most important and highly regarded candy,
sweets and snack manufacturers in india, and has been operating on the market for more than
75 years.

To expand the production and export of its bakarwadi product, they decided to invest in a new
hsv 360 series vertical packaging machine that‘s been specially designed for packaging indian
snack products.

CUSTOMER REQUIREMENTS

The prim\ary requirement of the customer was to find a suitable solution for
packaging \"bakarwadi" into standup pouches so higher performance and better appearance of
the packaged product were achieved, as well as increased visibility on store shelves.

40
Due to the low performance of their existing solution at \the customer’s factory, and poor
presentation of the product, it was necessary to replace the existing packaging method in plastic
trays with the velteko packaging process to achieve all the required parameters. The customer
needed a packaging machine that could provide a precise snack package, as well as offer
performance that could keep up with their packaging line

In order to meet the required criteria for bakawardi packaging, velteko offered the customer
an hsv360a-conti series vertical packaging machine for making doypack pouches with a zipper
reclosing system and pillow bags.
The hig\h quality sealing of the zipper ends has contributed to achieving the desired attractive
appearance of the doypack pouches.
In order to maintain the desired freshness, and respect product fragility (due to its size and
weight of 10 g/1 pc), it was necessary to optimize the product’s drop height so the percentage of
damage to individual pieces in the packages would be reduced.

41
EXTREMELY SHORT TIME TO INSTALL

Due to successful testing of the packaging machine before shipment, including validation that the
film was trouble-free, it only took two days (!) For installation and to put the machine into
operation at the customer’s factory! 
Installa\tion and staff training took place in september 2016.

Results 

 Attractive appearance of standup pouches.

 The cost of creating one bag for chitale has been reduced by 30% thanks to the new
velteko packaging machine.
 Doypack zip reclosure pouches that are made by the hsv360a vertical packaging machine
have greatly enhanced the presentation of the bakarwadi packaged product, which is
becoming the company’s trademark!
 8000 kg of bakarwardi are currently packaged each day at the customer's factory and 50
doypack pouches are created per minute (250 g, 500 g) on the velteko machine.


42
From a very small beginning which saw food items being produced manually with domestic help
under a limited physical space, chitalebandhumithaiwale today boasts of state-of-the-art use of
technology in production and end-cycle management of business.a comprehensive infrastructure,
in terms of skilled manpower, automated manufacturing units situated at easily accessible points,
distribution hubs at key locations and a wide & strong agent & distributor network is in place to
take care of all the business needs of the concern.there are a total of 6 different manufacturing
units owned by the firm and these supply the food products. Of these, the unit located at
ranjeshivapur near pune has two automated manufacturing lines specifically devoted to
manufacture and export of ‘bakarwadi’, the unique and monopoly food snack item from
chitalebandhumithaiwale. Sweet items like the ‘gulabjamuns’, the ‘pedhas’ and the ‘rasgullas’
are also manufactured on machines imported from japan.besides manufacturing,
chitalebandhumithaiwale owns two huge and modern shops at key locations in pune city. It has
appointed 10 franchisees
Within the city and plans to increase this number to 15 shortly. Besides pune city, a wide
network of authorisedagentsanddistributors is in place all over and outside maharashtra
state.chitalebandhumithaiwale provides employment to about 300 people at all its
establishments.
 OVERVIEW
From a very small beginning which saw food items being produced manually with domestic help
under a limited physical space, chitalebandhumithaiwale today boasts of state-of-the-art use of
technology in production and end-cycle management of business.a comprehensive infrastructure,
in terms of skilled manpower, automated manufacturing units situated at easily accessible points,
distribution hubs at key locations and a wide & strong agent & distributor network is in place to
take care of all the business needs of the concern.there are a total of 6 different manufacturing
units owned by the firm and these supply the food products. Of these, the unit located at

43
ranjeshivapur near pune has two automated manufacturing lines specifically devoted to
manufacture and export of ‘bakarwadi’, the unique and monopoly food snack item from
chitalebandhumithaiwale. Sweet items like the ‘gulabjamuns’, the ‘pedhas’ and the ‘rasgullas’
are also manufactured on machines imported from japan.besides manufacturing,
chitalebandhumithaiwale owns two huge and modern shops at key locations in pune city.
it has appointed 10 franchisees within the city and plans to increase this number to 15 shortly.
Besides pune city, a wide network of authorisedagentsanddistributors is in place all over and
outside maharashtra state.chitalebandhumithaiwale provides employment to about 300 people at
all its establishments.

PRODUCT AUTOMATION

Having established a brand identity for itself through the sheer range and quality of food
products over the past five decades & more, chitalebandhumithaiwale has also kept pace with
modern times in terms of product innovation, specialties and use of automated techniques in
production &management.the seeds of this automation in processes were sown in the period
between 1950 and 1970 which saw the demand for products increasing at a tremendous pace. All
small manufacturing processes had to be re-looked at and converted into large scale
manufacturing processes with the help of machinery. Shri. N. B. Chitale, who toured japan in
1970, was thoroughly impressed by the extent of mechanization there. He did all the groundwork
and trials to improvise and adopt mechanization in the manufacturing of food products. Suitable
machinery was finally located in holland and thereafter began the process automation phase
which today is state-of-the-art.‘bakarwadi’, which is perhaps the largest selling and most popular
of its products, is now being manufactured on automated machine lines. Besides this, a few
sweet items are also manufactured on machines imported from japan. ‘bakarwadi’ manufacturing
process goes through all its stages in an automated environment. These stages are dough mixing
– sheeting – masala spraying – chirling or rounding – frying – packing. Each of these stages of
manufacture is carried out on automated machines or units. The end process stage of packing is
done on a packing machine imported from germany wherein the ‘bakarwadi’ is packed under
vacuum and nitrogen gas is flushed inside to improve the shelf life. Similar processes are used
for various sweet items too.

44
  THEIR BUSINESS

Every city has a sweet tooth. Chennai has jangiri and mysorepak, kolkata gets high
on rosogollas, delhi gorges on rabdijalebi and pune is famous for its pedhas. One place that has
been whetting pune’s appetite for sweets and savouries (namkeen) over 62 years is the famous
chitalebandhu.

Chitale generates a more profound recall value for its bhakarwadi, a crisp and spicy
maharashtrian snack which has a long shelf life.

Set up in 1950 in a 500 sq. Ft. Shop, chitalebandhu has had a successful journey with two
company-owned shops in the city’s vibrant localities of bajirao road and deccan

Gymkhana. Besides, there are eleven franchises spread across the city through which the brand
sells.

The chitale brand also exports its namkeen, especially bhakarwadi, to the us, israel and
singapore.

With an annual turnover of about rs. 200 crore and 2,500 to 3,000 customers shopping on
average a day across two shops, the chitale brand has been a part of celebration for many of the
city’s households.

The menu at chitale is as rich as its heritage with over 60 different sweets and 40 namkeen.
However, it is their bhakarwadi which sell like hot cakes. Three attendants serve the customers
on the bhakarwadicounter, where it is often normal to find queues.

Started in 1970, bhakarwadi was an instant hit. “in 1972, we installed machines to give shape
and size to bhakarwadi as the queues started increasing,” says srikrushnachitale, proprietor of the
bajirao road branch.

Today the bhakarwadi sells about 3,000 kilos a day. In the early 1970s, it was about 300 kilos.
People are very critical to chitale’s business, which boasts a 300-strong workforce.

The success of the chitale brand is that it has kept pace with the times and with people’s
aspirations. Be it introducing machines to sort and cut different products or be it the
computerised billing system that the shop introduced in 1985, the chitales have ensured that they
remain in vogue even as they try and maintain their traditional class. “even as we mechanised
there was no question of compromising on quality. It was the first time that any mithai shop
introduced computerised billing in pune,” adds chitale proudly as he alternates between this
interview and signing vouchers every five minutes.

The family, which also sells the popular chitale milk separately, works on a joint-divide concept.

45
“we are a joint family… but we are a joint-divide family. In joint families, it happens that
internal household problems come into the business. That is something my grandfather, b.g.
chitale, saw really early. He told us, ‘don’t live together.’ he said everybody should have their
own house,” says the younger chitale. “we are all living in nuclear families … but live close to
each other. Any business problem, we all sort it out together.”

The women of the household advise on product development and product innovation. “ours is a
kitchen-driven business … so their expertise always comes in handy,” he says.

Both shops have a modern customer management process. This is evident when the security at
the gate hands a grey plastic card to the customer at the entrance. This is a programmed card
which can store up to 40 products in its memory. So, a customer buying at different counters can
simply hand over his card to the attendant who enters the quantity purchased. This, when
presented at the billing counter, eases the bill payment process and saves time.

It is, however, not a sweet run for the bandhus always. The business has its own set of
challenges. The products sold are highly perishable in nature and require robust inventory
management. “everyday we monitor our production. If yesterday there was rain, we just curtail
the production because the previous day’s production might continue today.

We manage demand and supply on daily basis,” he adds.other than for milk, which gets supplied
through his uncle’s factory in bhilawdi near sangli, getting good raw materials is a challenge.
“we have a tough time in ensuring that we procure good quality raw material. Pesticides and
fertilisers have also adversely impacted the quality of raw materials,” he rues.

Inflation does not seem to have dented customer’s propensity to throng chitalebandhu, however.
“our business, on an average grows at 10 per cent and typical margins are 13-14 per cent. There
have been no changes. Five years ago we used to sell 10 per cent of cashew mithai than what we
sell now. Cashew prices have shot up but demand has also gone up. We feel people have a lot of
money.”

However, consumption of sweets and savouries is not restricted to festivals. “people

consume mithaieven without any occasion. It might not be as much in the north. Here, there are
very few people who consume one kilo but there are many who buy a quarter of a kilo,” says sr.

He learnt much of his business by observation.

“when i was in vii standard, i used to sit in the shop and observe. It was very easy for us as we
stayed above the shop when we started. But my son has to acquire the knowledge after
graduation. He has to go to the factory,” he adds.

The chitales do not plan to professionalise the company as they feel it robs them of their
independence.

46
“we do not even want to go private (limited) because it takes away certain executive powers that
might be required to run our business successfully. The young people do not get enough of a free
hand to run the business then,” he says.

INDIAN RETAIL (SHARE IN 2007)

At constant prices, the overall f&g retail market grew slightly higher at 2.3 per cent in 2007,
Compared to a 2.2 per cent annual growth in the previous two years. But the organised retail
Segment in this category is simmering in the true sense – a 50 per cent growth in 2007 as
Compared to 42.9 per cent in 2006, and lot more fireworks can be expected this year and the
Years ahead. Valued at rs.9, 000 crore, this organised market constitutes barely 1.1 per cent
Of the total food & grocery retail market.
The indian retail industry will touch rs 18, 10,000 crore by 2010. Organized retail will be about
13 percent of the total market at rs 2, 30,000 crore. Food and grocery dominates the retail
segment with 59.5 percent share valued at rs 7, 92,000 crore. This is followed by clothing and
accessories with a 9.9 percent share at rs 1, 31,300 crore. Out-of-home food (catering) services at
rs 71,300 crore have overtaken jewelleryrs 69,400 crore as the third-largest retail category, with
a 5.4% market share. Consumer durables at rs 57,500 crore are
The fifth-largest retail category. At sixth place is health and pharmaceuticals at rs 48,800
Crore. At seventh place is entertainment at rs 45,600 crore. At eighth place is furniture,
Furnishings and kitchenware at rs 45,500 crore. This is followed by mobiles and accessories at rs
27,200 crore. Leisure retail at rs 16,400 crore.footwear at rs 16,000 crore. Health and beauty care
services at rs 4,600 crore. Watches and eyewear at rs 4,400 crore.

CHITALE (GROUP)
Chitalebandhumithaiwale is a part of the large, diversified and prestigious chitale
Group. Apart from the milk and dairy products business which is the foundation of the
Food products business, the group is into digital services and agro businesses.
Various companies and firms look after the diversified interests of the group.
Each of these businesses has its own separate production, marketing and distribution
Network. While using this network, the dairy, food and the agro industries businesses also
Efficiently put to use their internal synergies to minimize costs and adhere to strict and
High quality of products

47
CHAPTER- 3
48
REVIEW OF LITERATURE .

The researcher made an attempt to collect information from the prior researches and relevant
studies conducted in the area of sweet shop and consumer behaviour so that the important
variables for the study could be identified and analysed. The review of literature has been
presented in a summarised and precise manner.

Books reviewed
Consumer behaviour by hawkins, best, coney and mokherjee: the authors of the book discussed
various factors affecting consumer behaviour for buying such as demographic and social
influences (family and household), group influence, impact of advertising and internal influences
(learning, perception, attitude etc.). The book elucidated the topics such as types of consumer
decisions, purchase involvement and product involvement. The book also emphasized on
information search process and various ways for providing relevant information to the consumers
are recommended in this study. The book also emphasized on individual judgment and proposed
that the ability of an individual to distinguish between similar stimuli is called sensory
discrimination which could involve many variables related to individual preferences.1

Consumer behavior by leslie lazar and schiff man: the authors suggested consumer behavior as
individual differs as from group. The family decision for a purchase decision is entirely different
from individual decision making. The authors discussed various variables that affect consumer
purchase decision. The book focused on family life cycle and various needs of consumer during
different life stages. The family decision making process as a group decision making is
elaborated and it is recommended to segment the market according to family need hierarchy.2

Consumer behaviour by bitta and della: the authors proposed that consumer behaviour studies
play an important role in deciding marketing segments and marketing strategies. The authors
recommended that consumer is often studied because certain discussions are significantly
affected by their behavior or expectedactions. For this reason such consumer behaviour is said to
be an applied discipline. Such applications can exist at two levels of analysis. Market
segmentation, consumer decision making and buying behaviour is considered as core marketing
activities in designing effective marketing strategies.
The micro perspective involves understanding consumers for the purpose of helping a firm or
organisation to accomplish its objectives. On the other hand macro or societal perspective
consumers collectively influence economic and social conditions within an entire society. The
authors discussed factors affecting consumer behaviour at micro and macro level for making a
purchase decision.3
Consumer behavior by karunik and schiffman: the book highlights dynamic business
environment is turbulent as never before and the service industry as promising as never before.
In this era of intense competition companies understand the customer is the king in the market
and success depends a lot on the efficiency of the managers in delivering the promised product or
services. The responsibility lies on the organisations to develop a culture, ethics, responsibility,

49
value and quality services should be offered to achieve higher level of customer satisfaction.
Dynamic consumer behaviour is required to analyse various factors affecting consumer purchase
decision directly or indirectly.
Consumer behaviour by batra, s, k &kazmi,: the book has described consumer decision making
process, buyers black box and importance of consumer behaviour studies for marketers in order
to understand what satisfy the ultimate consumer. The book described vital characteristics of
indian consumer and competitive advantages in indian context for the marketers. The consumer
decision process, buying roles and consumer black box are discussed in detail. The various steps
evolving consumer decision making are linked with the life stages. Young buyers, women and
children considered as uprising consumers groups as a part of competitive market situations.
Marketing management by philip kotler: the customer is always considered as a core of business
activity. Author discussed in this book that marketing is only one factor in attracting and keeping
customers. Peter f. Drucker observed that a company‟s first task is “to create customers.”
Customer estimate will deliver the most value. The book highlighted consumer decisions making
process and buying roles. The book considered customers as value maximiser within the bounds
of search costs, limited knowledge, mobility and income.
Services marketing by c. Lovelock and j. Writz: the book emphasised on services marketing as a
broad area and places marketing issues within a broader general management context while
offering a balanced focused on close ties that link marketing, operations and human resource
marketing. It also relates the understanding of consumer behaviour function to develop
appropriate marketing strategy. Service triangle, feature of services and service marketing
strategies are discussed in this book with detailed explanation of service quality model.
Services marketing by lovelock: the book is emphasised on advancements and challenges in
services marketing. The book discussed role of consumer in designing services, delivering and
performing quality service to the consumers for deriving customer satisfaction. The book
focused on complexity of designing service marketing strategies and establishing service
standards. Various threats and challenges in designing service marketing strategies have been
discussed with required solutions in turbulent marketing situations.
Services marketing by zeithaml and bitner: the book emphasised on various ingredients of
services marketing such as consumer behaviour in services, services designs and standards,
delivering and performing service and managing service promises. The book focused on various
challenges and issues of service marketing, the gaps model of service quality and customer
defined service standards. The book discussed service quality models and service preference
models in detail. The book also recommended uniformity in quality standards should be
implemented.

1.      LITERATURE REVIEW

Consumer behaviour christopher (1989) studied the shopping habits of consumers to form an
idea of whether or not the store concepts, product ranges and strategies of the companies are
appropriate towards consumer requirements. He believed that consumer behaviours are
unpredictable and changing continuously changing; while trying to under try to understand how
individual or group make their decision to spend their available resources on consumption-
related items. These are factors that influence the consumer before, during, and after a purchase,

50
for example, feedback, from other customers, packing, advertising, product appearance, and
price .
The essence of this approach is critical for organisational success, so that they can have a better
understanding of their customer behaviours (solomon et al., 2006). The physical action or
behaviour of consumer and their buying decision every day can be measured directly by
marketers (papanastassiu and rouhani, 2006). For that reason many organisations these days are
spending lot of their resources to research how consumer makes their buying decision, what they
buy, how much they buy, when they buy, and where they buy (kotler, amstrong, 2001).  To get a
well coherent result, organisations normally looked at these behaviour base their analysis on
difference conceptions; whether customers buying behaviour were measured from different
perspectives, such as product quality and better service, lower price structured etc.
Different theories and researchers have claimed that when organisation fully meet all aspects of
its customer needs, the result enhances their profitability and also enable them to develop a better
tackling strategies for consumer (asseal, 1998).  Possibly, the most challenging concept in
marketing deals with the understanding why buyers do what they do and what method or
philosophy are they using to evaluate the product after the transactions and what might be the
effect on future transaction (schiffman, 2004). The reason why marketer chooses to learning
about consumers” buying behaviour is, from a business perspective; to be able to be more
effectively reach consumers and increase the chances for success (sargeant& west, 2001).
Therefore the field of consumer behaviour has take a tremendous turn in the commercial world
and became the fundamental concepts of achieving company goal.
In this case, most of the large consumer electronics retailers tend to gathered more information
about customers motivating factors and what influences their buying behaviours solomon &
stuart (2000).
COMPLEX BUYING BEHAVIOUR
This kind of buying behaviours significantly involved the consumers when making a purchase
decision. This kind of buying behaviours demand consumer to highly involve within the process.
In case of high involvement, consumers distinguish salient differences among the competing
brands (kotler, wong, saunders, armstrong, 2005). This phenomenon is particularly essential for
dixons consumers to highly involve, and engage in extensive research about the product category
and make a good purchase decision about the firm own manufacturing products, in case they
invent a new technology electronics products or audio-video equipment that is too expensive.
 
DISSONANCE REDUCING BUYING BEHAVIOUR
This type of buying behaviour also has high consumer involvement. In terms of expensive and
infrequent purchase, consumer also undergoes reducing dissonancy behaviour.  It is extremely
difficult for consumers to differential among brands in this type of buying behaviours (kotler,
wong, saunders, armstrong, 2005). Differentiating dixons electronics products/equipments in the
same store from pcworld or currys is a daunting task and consumer buying these products may

51
encounter dissonance reducing buying behaviour, as electronics are usually expensive and self-
expressive. Consumer may easily assume that the available electronics brands in the store/market
within a certain price range to be of the same quality. Then if the product does not meet
customers’ expectations, it will result to consumer to experience post purchase dissonance (after
sales discomfort) (kotler, wong, saunders, armstrong, 2005).

VARIETY SEEKING BUYING BEHAVIOUR

This type of consumer level of involvement is low. However consumer may became critical in
terms of brand differences. Additionally, consumer may easily switch from pcworld to currys i.e.
from one brand to another. The consumers can now have beliefs about the various brands and
choose a brand without much evaluation. But they evaluate that product at the time of purchase.
In this high technology world, consumer switches their brands not because of dissatisfaction but
because of that enormous trend of technological equipment (aaker, 1991).
DECISION MAKING
The concept of decision making perceived by buying behaviour as a problem-solving activity
that consumer undergo to solve different problems. The stages include; need recognition, striving
for information, evaluates the alternative, purchase decisions, and post-purchase evaluations.
Consumer decisions making can sometimes be confusing and relate to many ideas and beliefs.
There are numerous perspectives of consumer decision making that include the ‘cue utilisation
theory’, value perspective, emotional perspective, and information processing perspective.
VALUE PERSPECTIVE
This emphasises a trade-off circumstances (lunn et al, 1997). The common value terms often
involve in the trade-off between quality and price, which also may also be defined the ‘value-for-
money between quality and price, which also may defined the ‘value-for-money perspective
(change and wildt, 1994; hansen, 2001; sweeney and soutar, 2001). Zeithaml (1988) and levy
(1999) purpose that consumers are ‘value driven’. Zeithaml (1988) claims that customer’s
perceived value may be seen as a reacting of the overall evaluation of the consumption of a
product or service based on perceptions of what is received and what is given.
On the other hand, the value emerges partly from what consumers perceive they are receiving
and partly from what consumers perceived they are giving.
Moreover, blackett and robins (2001) consistently said that the key drivers of demand for
products are awareness/familiarity, perceived quality, sales quality and price. These tool drivers
influence the perception of customer in term of the decision making. .
CUE UTILIZATION THEORY
This phenomenon allowed consumer to judge the quality and multiplicity of different product
when deciding what to purchase and how many.  Hansen (2005) opined that, perhaps it might be

52
extremely hard for consumers to evaluate the essence of different in quality aspects in relation to
each other and in relation to requirement or intention to consumer the products.
This has led consumers to encounter instabilities when making judgements about product
quality, but may not have sufficient of time or the motivation to the considered products’
comparative. Attempting to overcome their uncertainty and the shortage of information,
following the ‘cue utilization theory’ (olson and jacoby, 1972), consumers may select one or
more indicators (cues or stimuli) to help their judgement of the product quality. A number of
cues are studied in many researches. In judging the product quality, these cues can be used to
indicate, including ‘country of origin’ (eliot and cameron, 1994), ‘product composition’ (olson,
1972), ‘brand name’, ‘store name’ (dodds, 1995) and ‘price’ (shapiro, 1973; brooker et al.,
1986). As mentioned in the cue utilisation theory, consumers try decrease risk by applying cues
(e.g. brand name, price, colour, advertising, etc) as a way of determining the service or the
product quality. Thus, the reliance on one or one or more cues is a risk-reduction strategy
(hansen, 2005).
Dawar and parker (1994) depicted that cues assist consumers to determining the quality of the
product when there is a need to reduce the perceived risk of purchase and when consumer
involvement is low. ‘low-involved’ consumers use simple decision ways or indicators in their
assessments to the quality or the overall performance of a product. In contrast, the behaviour of
‘high-involved’ consumers are analysed and described on the basis of the information processing
perspective.
Information processing perspective
The information processing perspective indicated that consumer act as problem-solving
‘cognitive’ individual researching for a reasoned decision (kassarjian, 1981).
Dubois (2000) describes that  consumers are expected to apply their cognitive resources in
creating ‘beliefs’ (cognitive part) about the attribute of a product, which may result of the
progression of an overall feeling (affective part) in the sense of liking/disliking product.
Consumers with a positive ‘attitude’ to a product are expected to be more willing to consider
purchasing in (cognitive part) than consumers with less positive attitude to the same product.
Emotional perspective emotion is not the response of an evaluation process in buying a product,
but it is an effective reaction to consumers’ perceptions of stimuli in the environment. It
represents an effective view of consumer behaviours and it is caused by consumers’ appearance
to particular stimuli (bagozzi et al., 1999). Zajonc and markus (1982) discussed   that the
‘traditional’ cognitive view should be complemented by determining consumers’ affective
responses, like the emotional responses to the perception and assessment of products and
experiences. Consumer involvement also influences to emotion perspective and product
evaluations.
Peter et al (1999) debated that if product involvement is high, people may experience stronger
affective reaction such as emotions and stronger feelings.
       

53
CONSUMER PERSONALITY FACTORS

There are two factors mainly influencing the consumers for decision making: risk aversion
andinnovativeness. Risk aversion is a measure of how much consumers need to be certain and
sure of what they are purchasing (donthu and gilliland, 1996).highly risk adverse consumers
need to be very certain about what theyare buying. Whereas less risk adverse consumers can
tolerate some risk and uncertainty in their purchases. Thesecond variable, innovativeness, is a
global measure which captures the degree to which consumers are willingto take chances and
experiment with new ways of doing things (donthu and gilliand, 1996).the shoppingmotivation
literature is abound with various measures of individual characteristics (e.g.,
innovative,venturesome, cosmopolitan, variety seeking), therefore, innovativeness and risk
aversion were included in thisstudy to capture several of these traits. Measures by donthu and
gilliland (1996) were used to measureinnovativeness and risk aversion.

CONSUMER PERCEPTION FACTORS

Perception is a mental process, whereby an individual selects data or information from
theenvironment, organizes it and then draws significance or meaning from it.

PERCEIVED FIT
Perceived fit is an attitudinal measure of how appropriate a certain channel of distribution is for a
Specific product .morrison and roberts (1998) found that consumer‟s perception of the
 fit between aservice/product and a channel is very influential in determining whether they will
consider using that channel
For a specific service. In fact, perceived fit was found to be more important than consumer‟s
preferences for the
Distribution method or service.

QUALITY
It is our aim to provide the best product for the consumer and we believe that if the products
havequality the consumer will pay the price, says amal pramanic, regional business
director. Oral-b

PACKAGING
Packaging establishes a direct link with the consumers at the point of purchase as it can very
wellchange the perceptions they have for a particular brand. A product has to draw the attention
of the consumersthrough an outstanding packaging design. Earlier packaging was considered
only a container to put a product
in, but today, research in to the right packaging is beginning at the product development stage its
elf. Packaging
Innovation has been at the heart of dabur‟s attempt to rap with the urban consumers. It spends
large sums
Annually on packaging research. -

54
PROMOTION
The greatest challenge faced by companies today is holding and increasing their market share
andvalue. This is always a strenuous exercise and one of the tools for the same is marketing.
There is no specificgame rule available for using these marketing tools .the reason is: each
promotional tool has its owncharacteristics.

Familiarity with a channel

Consumer‟s familiarity with a channel is a measure of the general experience they
Have with purchasing products through specific channels (i.e.. Catalog, internet, and bricks-and-
mortar retailer). Throughfrequent use consumers should become accustomed to using the channel
which reduces their apprehension andanxiety in purchasing products through the channel

 
THE ATTITUDINAL PERSPECTIVE
Attitudes are predispositions felt by buyers before they enter the buying process. The buying
processitself is a learning experience and can lead to a change in attitudes (politz 1958). Thus,
attitudes do notautomatically guarantee all types of behaviour. They are really the product of
social forces interacting with the
Individual‟s unique temperament and abilities. Thus, as discussed above, social influences
determine some but
Not all of the behavioural variations in people. Two individuals subject to the same influences
are not likely tohave identical attitudes, although these attitudes will probably converge at more
points than those of twostrangers selected at random. Most researchers agree that an attitude has
three components: affect, behaviour,and cognition. Affect refers to the way a consumer feels
about an attitude object, behaviour involves the
 person‟s intentions
 to do something with regard to an attitude object, and finally, cognition refers to the beliefs
aconsumer has about an attitude object. While all three components of an attitude are important,
their relativeimportance will vary depending upon the
Consumer‟s level of motivation with regard to the attitude object.
Attitude researchers have developed the concept of a hierarchy of effects to explain the relative
impact of thethree components. Each hierarchy specifies that a fixed sequence of steps occur en
route to an attitude.according to the theory of cognitive information processing, attitudes are
formed in the order of beliefs, affect, and behaviour. Attitudes based on
behavioural learning follow the beliefs, behaviour, and affectsequence. And finally, attitudes
formed based on the experiential hierarchy follow the affect, behaviour,
and beliefs route. A consumer who is highly involved with a product category and who perceives 
a high level of product differentiation between alternatives will follow the cognitive hierarchy
(beliefs-affect-behaviour). Fromthe marketers perspective the sequence of attitude formation is
pertinent from a communications point of view.accordingly, here, a marketer will first attempt to
create attention, then interest and desire, and finally action(aida). Thus, from a strategic point of

55
view, multi-attribute attitude models, such as the fishbein (1983)model, have proved useful in
specifying the different
Elements that work together to influence people‟s
Evaluations of attitude objects and ultimately predict consumer attitudes; products or services
may be composedof many attributes, or qualities, some of which may be more important than
others to particular people. Also a
 person‟s decision to act on
 his or her attitude is affected by other factors, such as whether it is felt that buying a product
would be met with approval by friends and family. The complexity of attitudes is underscored
by multi-attribute attitude models, in which sets of beliefs and evaluations are identified and
combined to predict anoverall attitude.

 
THE SITUATIONAL INFLUENCE PERSPECTIVE
A situation is defined by factors over and above the characteristics of a person and product.
Forexample, as explained below, situational effects may be behavioural (e.g., entertaining
friends), experiential,
or perceptual (e.g., being depressed or being pressed for time) (kakkar and lutz 1981). According 
to the behavioural influence perspective of low involvement decision situations, consumer decisi
on making is alearned response to environmental cues, as when a person decides to buy
something on impulse that is prompted
As a “surprise special” in a store. According to this
 approach, then marketers must concentrate on assessing thecharacteristics of the environment,
such as the physical surroundings and product placement, that influencemembers of that target
market. For example, pointof- purchase stimuli (such as product samples) are particularlyuseful
in inducing impulse purchases.the experiential perspective stresses the gestalt, or totality, of the
product or service. The principles based on the work of gestalt psychology (koffka 1935)
maintain that people derive meaning from the totality ofa set of stimuli, rather than from any
individual stimulus. Here consumers may be highly involved in a
decision, but may not lend themselves to the rational approach.
Marketers focus on measuring consumers‟ affective
Responses to products or services and develop offerings that elicit appropriate subjective
reactions and employeffective symbolism. Situational effects can also be perceptual i.e., there
could be a number of ways in whichmood can influence purchase decisions. For example, stress
can impair information processing and problemsolving abilities. In addition,
Time poverty can impact buying decisions. An individual‟s priorities
 determine hisor her timestyle (feldman and hornik 1981).
 
THE POSITIVIST PERSPECTIVE
The traditional positivist approach is established on the premise that consumers are largely
rational,stable, and knowable entities. The positivist philosophical stance is characterized by an
emphasis on scientificobservation and testing. The objective of this type of research is therefore,
to observe empirical facts and toestablish generalizable laws that can used to predict and control
behaviour. The outcome of the positivist pursuit
Xiii.
 

56
The non-positivist perspectives
In contrast to the traditional perspectives, the interpretive and postmodern perspectives of
consumer behaviour attribute consumers with the capacity to
“proactively” assign meaning to and represent their
Environments rather than just passively respond to them (hirschman 1986; calder and tybout
1987). Theinterpretive perspective for example suggests, that behaviour is channeled by the
content and structure of
Consumers‟ subjective meaning
 
Systems (holbrook 1995). As o‟shaughness
Y and holbrook (1988, 206) explain-
“from an interpretivist point of view, actions like buying are not
 simply matters of rational calculation withconsumers computing up the pros and cons of
objective facts, but rather are matters involving felt expectations
As to how the consumption episode will be personally experienced.” Thus
 consumers behave and makedecisions by reference to the internal (psycho) logic of their
subjective meaning systems. The focus of inquiry ofthe interpretive and postmodern perspec
Tives therefore becomes, consumers‟ “subjective” meanings and
Language or discourses7 (buttle 1989; firat 1992; hirschman 1985). Brown (1995b, 295), asserts
however, thatthe interpretive perspective is different from the postmodern perspective in
marketing because the former
„presupposes an autonomous human subject, the free
-thinking, self conscious
Individual.‟ for example,
Humanistic and phenomenological
 perspectives conceive the individual consumer as „a unified, coherent and
 
Rational
Agent who is the author of his or her own experience and meaning; therefore, analogous to
thetraditional conjecture, the interpretive paradigm also assumes that there is some pre-given
natural essence ofconsumers (slife and williams 1995). In addition, whilst the interpretive
paradigm stresses the experiential side
Of consumer behaviour such as “fantasies,
 
Feelings and fun” (holbrook and hirschman 1982), it suggests that
 consumers construct coherent and consistent representations, or subjective maps, of the world in
order to makeit more meaningful and predictable (burrell and morgan 1979). Moreover, these
subjective maps are assumed to be intersubjective, which means that they are shared and
understood by most people in society (buttle 1990). Incontrast, the postmodern perspective
argues that there is no fixed or pre-given essences residing insideconsumers that make them
behave the way they do (brown 1995a; firat et al. 1994). Rather, self-identity andsubjectivity are
assumed to be constituted by particular forms of language, or discourses, which in turn are
Mediated by the consumer‟s social interactions
 (foster 1983). Thus, identity is said to be constantly in flux and
“changing”

57
 depending upon with whom the consumer is consuming, in what circumstances they are
consuming,and for what purposes (burr 1995). The postmodern perspective of consumer
behaviour firmly points to the
Fragmentary and fluid nature of consumers‟ self 
-identity. Firat et al. (1995, 44) contend, that consumers
„frequently change their self 
-concepts, ch
Aracter, values‟ and often subscribe to „multiple and often highly
 contradictory value systems, lifestyles, etc., without feeling inconsistent or
Improper‟. Thus, the postmodern
 perspective places great emphasis on the creativity, autonomy,
and power of consumers to define and changethemselves and the world in which they live
through different patterns of consumption and lifestyles (brown1995).the non-positivistic
perspectives (particularly postmodernism) question

 the world into simple dichotomous categories of consumer/producer, male/female and soon.
Postmodernism (as does interpretivism) regards these dichotomies as unsuccessful historical
attempts tolegitimize partial
Truths.” In sum, it can be argued that the new perspectives may legitimately
 be classified as part of the non-
positivist movement, which acknowledge the social, complex, and often irrational andunpredicta
ble nature of consumer behaviour. This view focuses on not just the process of buying, but
givesequal significance to the experiential and meaningful aspects, which under pin
consumption.
 

58
 CHAPTER 4
RESEARCH METHODOLOGY

What is research?
Research is a logical and systematic search for new and useful information on a particulartopic.
In the well-known nursery rhyme
Twinkle twinkle little star
How i wonder what you are
The use of the words how and what essentially summarizes what research is. It is an
investigation of finding solutions to scientific and social problems through objective and
systematic analysis. It is a search for knowledge, that is, a discovery of hidden truths. Here
knowledge means information about matters. The information might be collected from different
sources like experience, human beings, books, journals, nature, etc. A research can lead to new
contributions to the existing knowledge. Only through research is it possible to make progress in
a field. Research is indeed civilization and determines the economic, social and political
development of a nation. The results of scientific research very often force a change in the
philosophical view of problems which extend far beyond the restricted domain of
Science itself.
Research is not confined to science and technology only. There are vast areas of research in other
disciplines such as languages, literature, history and sociology. Whatever might be the subject,
research has to be an active, diligent and systematic process of inquiry in order to discover,
interpret or revise facts, events, behaviours and theories. Applying the outcome of research for
the refinement of knowledge in other subjects, or in enhancing the quality of human life also
becomes a kind of research and development.
Research is done with the help of study, experiment, observation, analysis, comparison
And reasoning. Research is in fact ubiquitous. For example, we know that cigarette smoking is
injurious to health; heroine is addictive; cow dung is a useful source of biogas

As stated by gerald milburn scientific research is a chaotic business, stumbling along

59
Amidst red herrings, errors and truly, creative insights. Great scientific breakthroughs are rarely
the work of a single researchers plodding slowly by inexorably towards some final goal.
The crucial idea behind the breakthrough may surface a number of times, in different places,
only to sink again beneath the babble of an endless scientific discourse.

A. What are the objectives of research?

The prime objectives of research are

(1) to discover new facts
(2) to verify and test important facts
(3) toanalyse an event or process or phenomenon to identify the cause and effect relationship
(4) to develop new scientific tools, concepts and theories to solve and understand scientific
Andnonscientific problems
(5) to find solutions to scientific, nonscientific and social problems and
(6) to overcome or solve the problems occurring in our every day life.
Importance of research
Research is important both in scientific and nonscientific fields. In our life new problems,
Events, phenomena and processes occur every day. Practically, implementable solutions and
suggestions are required for tackling new problems that arise. Scientists have to undertake
research on them and find their causes, solutions, explanations and applications. Precisely,
research assists us to understand nature and natural phenomena.
Some important avenues of research are:
(1) a research problem refers to a difficulty which a researcher or a scientific community
Or an industry or a government organization or a society experiences. It may be a
Theoretical or a practical situation. It calls for a thorough understanding and possible
Solution.
(2) research on existing theories and concepts help us identify the range and applications of
them.
(3) it is the fountain of knowledge and provide guidelines for solving problems.
(4) research provides basis for many government policies. For example, research on the needs
and desires of the people and on the availability of revenues to meet the needs helps a
government to prepare a budget.
(5) it is important in industry and business for higher gain and productivity and to improve the
quality of products.
(6) mathematical and logical research on business and industry optimizes the problems
In them.
(7) it leads to the identification and characterization of new materials, new living things,
New stars, etc.
(8) only through research inventions can be made; for example, new and novel phenomena and
processes such as superconductivity and cloning have been discovered only through research.
(9) social research helps find answers to social problems. They explain social phenomena and
seek solution to social problems.

60
(10) research leads to a new style of life and makes it delightful and glorious.
Emphasizing the importance of research louis pasteur said: i beseech you to take interest in these
sacred domains called laboratories. Ask that there be more and that they be adorned for these are
the temples of the future, wealth and well-being. It is here that humanity will learn to read
progress and individual harmony in the works of nature, while humanity’s own works are all too
often those of barbarism, fanaticism and destruction

Types of research
Research is broadly classified into two main classes:
1. Fundamental or basic research
2. Applied research
3. Normal and revolutionary researches
4. Quantitative and qualitative methods

A. Basic research
Basic research is an investigation on basic principles and reasons for occurrence of a
Particular event or process or phenomenon. It is also called theoretical research. Study or
investigation of some natural phenomenon or relating to pure science are termed as basic
research. Basic researches some times may not lead to immediate use or application. It is not
concerned with solving any practical problems of immediate interest. But it is original or basic in
character. It provides a systematic and deep insight into a problem and facilitates extraction of
scientific and logical explanation and conclusion on it. It helps build new frontiers of knowledge.
The outcomes of basic research form the basis for many applied research. Researchers working
on applied research have to make use of the outcomes of basic research and explore the utility of
them.
Research on improving a theory or a method is also referred as fundamental research.
For example, suppose a theory is applicable to a system provided the system satisfies certain
specific conditions. Modifying the theory to apply it to a general situation is a basic research.
Attempts to find answers to the following questions actually form basic research.
• why are materials like that?
• what are they?
• how does a crystal melt?
• why is sound produced when water is heated?
• why do we feel difficult when walking on seashore?
• why are birds arrange them in ‘>’ shape when flying in a group?
Fundamental research leads to a new theory or a new property of matter or even the existence of
a new matter, the knowledge of which has not been known or reported earlier.
For example, fundamental research on
(1) astronomy may leads to identification of new planets or stars in our galaxy,

61
(2) elementary particles results in identification of new particles,
(3) complex functions may leads to new patterns or new properties associated with them,
(4) differential equations results in new types of solutions or new properties of solutions
Not known so far,
(5) chemical reactions leads to development of new compounds, new properties of chemicals,
mechanism of chemicals reactions, etc.,
(6) medicinal chemistry leads to an understanding of physiological action of various chemicals
and drugs,
(7) structure, contents and functioning of various parts of human body helps us identify
The basis for certain diseases.

B. Applied research
In an applied research one solves certain problems employing well known and accepted
Theories and principles. Most of the experimental research, case studies and inter-disciplinary
research are essentially applied research. Applied research is helpful for basic research. A
research, the outcome of which has immediate application is also termed as applied research.
Such a research is of practical use to current activity. For example, research on social problems
have immediate use. Applied research is concerned with actual life research such as research on
increasing efficiency of a machine, increasing gain factor of production of a material, pollution
control, preparing vaccination for a disease, etc. Obviously, they have immediate potential
applications. Some of the differences between basic and applied research are summarized in
table thus, the central aim of applied research is to find a solution for a practical problem which
warrants solution for immediate use, whereas basic research is directed towards finding
information that has broad base of applications and thus add new information to the already
existing scientific knowledge.

C. Normal and revolutionary researches

Basic and applied researches are generally of two kinds: normal research and revolution-
Ary research. In any particular field, normal research is performed in accordance with a set
Of rules, concepts and procedures called a paradigm, which is well accepted by the scientists
Working in that field. Normal research is something like puzzle-solving: interesting, even
Beautiful, solutions are found but the rules are remain same. In this normal research sometimes
Unexpected novel results and discoveries are realized which are inconsistent with the
Existing paradigm.
D.quantitative and qualitative methods
The basic and applied researches can be quantitative or qualitative or even both. Quantitative
Research is based on the measurement of quantity or amount. Here a process is
Expressed or described in terms of one or more quantities. The result of this research is
Essentially a number or a set of numbers. Some of the characteristics of qualitative research/
Method are:
• it is numerical, non-descriptive, applies statistics or mathematics and uses numbers.

62
 • it is an iterative process whereby evidence is evaluated.
• the results are often presented in tables and graphs.
• it is conclusive.
• it investigates the what , where and when of decision making.
Research design
Plan your work and work your plan is the suggestion of napolean hill. For a scientific
Research one has to prepare a research design. It should indicate the various approaches
To be used in solving the research problem, sources and information related to the problem
And, time frame and the cost budget. Essentially, the research design creates the foundation
Of the entire research work. The design will help perform the chosen task easily and in a
Systematic way. Once the research design is completed the actual work can be initiated. The
First step in the actual work is to learn the facts pertaining to the problem. Particularly,
Theoretical methods, numerical techniques, experimental techniques and other relevant data
And tools necessary for the present study have to be collected and learnt.
It is not necessary that every theory, technique and information in the topic of research
Is useful for a particular problem. A researcher has to identify and select materials which
Are useful to the present work. Further, the validity and utility of the information gathered
Should be tested before using them. Scientific research is based on certain mathematical,
Numerical and experimental methods. These sources have to be properly studied and
judgedbefore applying them to the problem of interest.

Researchmethodology:
the research was conducted from 1st jan to 5th april, 2016. The research include meetings with
the retailers, consumers and dealers. It included preparation of the questionnaire to be answered
by above people for knowing the competitive position of chitalebandhu in the sweet market. The
views of the above parties were recorded in the research as per the questionnaire set by me.

Details about methods used:-

The details for the project have been collected by two important methods of data collection, they
are:-

 Primary method
 Secondary method

Where, data are collected by studying the company records, informal discussion, questionnaire,
etc.

63
 Sources of data collection:-
Primary data:-
Information had been collected from chitalebandhudeccan branch situated at, f.c road
Major information is collected by the following ways:
 Personal visit to the company.
 Observations
 Interviews
 Company’s records.
 Informal discussion.
 Questionnaires.

Secondary data:-
Other information about the research has been collected from the following sources;

 Web sites –
www.google.com
Www.chitalebandhu.org
Handbook of dairy technology by sukaamar

Research approach:

The objective was to know the competitive position of chitalebandhu in the sweet market thus in
order to successfully conduct the research the unbiased opinion of the above parties was
desirable. Thus we conducted the research as the representative of chitalebandhu and sometimes
the representatives of the other company like kaka halwaior katraj in order to have an unbiased
opinion of the concerned persons and it worked to achieve our goal.

Research instrument:

64
 The research instrument was the structured questionnaire formulated for the customers. The
questionnaire was different for the retailers and dealers and for the consumers there was a
different set of questionnaire.

Types of question:

The second important aspect in the designing a question is to decide which types of question are
to be used. Question can be classified in various ways. Questionnaire contains following type
information-

1. 0penn-ended question
2. Dichotomous question
3. Multiple-choice question

Both the questionnaire consists of all three types of question. Mostly all questions are multiple
type questions. Dichotomous question are few in number. There is only one open-ended type
question.

Phrasing of question:

In questionnaire, i try to phrase the question in logical way. For example i arrange question in
sequence as personal information, awareness data, usage data, and finally related to reason and
satisfaction.

Sampling plan:

sample size:

The sample size was as follows:

Respondent Total number

65
 Retailers 13

Consumers 100

Distributors 4

Sampling technique:

A stratified sampling technique was used. A different stratum for different type of
respondent within every stratum the customers was selected as per convenience basis.

Method of survey:

Personal interview:

It is direct form of investigation, involving face-to-face communication with free feedback

information. It offers a sense of participation. It is more flexible form of data collection. Use of
unstructured, open-end questions is possible. Rate of refusal is low. Depth interview is possible.
Complex questions can be asked. The interview can have questions to secure more information.
Observation approach can be combined to verify age, income, status, standard information.
Visual aids in the form of catalogues samples etc. Can be used to get views, opinions, and
attitudes of responder.

OBJECTIVE AND SCOPE OF STUDY

66
 OBJECTIVES AND SCOPE OF STUDY
Objective of research study
 To study the idea of consumer behaviour
 To find the factors that leads a customer to recommend the partiqular product
 To study the behavior components of chitalebandumitaiwale
 To investigate the effect of behavior variables of buyers on selection of particular product
 to study the idea of customer satisfaction
 to study the decision making prosses .

objective of consumer behaviour

1) To study people as consumers

Research on people as consumers dates only from the mid-1980s. The main impetus for
this research was practical: marketing managers wanted to know how the social and
behavioural sciences could help them find the specific causes of consumer actions and, in
particular, consumer buying decisions. Why did people choose brand x as opposed to
brand y or z? Most importantly, how would the consumer react to a new and improved
brand x? This focus on predicting what the consumer would do under certain specified
conditions was known as a positivist approach to research
 all behaviour has objectively identifiable causes and effects, which can be isolated, studied and
measured.
 When faced with a problem or a decision, people process all the relevant information available to
deal with it.
 after processing this information, people make a rational decision about the best choice to take or
decision to make.
2) To study the consumer and the marketplace.
There has been trade between producers and consumers ever since people discov- ered
that the folks in the next valley made some very interesting firewater but lacked their own
suregrip axe handles. It has always been an integral part of the relations between different
groups of people, from the stone age family to the modern nation state. This trading
nexus is a necessary condition for the growth of small groups into complex societies with
their systems of law, government, finance, education, administration and so on.
3) Markets and marketing
All the activity of the trading nexus described above is usually referred to as the
operation of the marketplace. However, the modern marketplace is often vastly more
complex than the simple historical examples we have been considering. Individual
producers and consumers do sometimes still trade directly with each other, as when we

67
 buy handmade goods from stallholders in open-air markets, or when florists buy their
stock directly from a greenhouse.
But the most typical buying behaviour in our society is done through retail, or even
wholesale outlets that do not themselves manufacture the products they sell. The products
must therefore be marketed to potential consumers by the combined efforts of the
producer, the retailer and the people they hire to do their advertising and market research.
4) Marketing cautions
Although consumers may not know what drives them to buy a product, they're often
certain about what drives them away. Consumers easily swayed to make a purchase
decision could just as quickly stop buying a product, reports "science daily," if companies
alienate consumers by promising more than they can deliver.
5) Influences
Direct questioning of consumers about their buying habits often proves insufficient due to
influences beyond the consumers' control, or even their recognition. Sometimes
consumers don't fully understand why or how they make purchase decisions, as their
behavior is a complicated combination of personality, culture, geography, socioeconomic
status and exposure.
6) Buyer decision making
To study the decision making process of consumer and factors which affects their buying
bheaviours
7) Types of buying-decision behavior
To study the various stages in buying behavior for eg:-
a) Complex buying behavior
b) Variety seeking behavior
c) Habitual buying behavior
d) Dissonance- reducing buying behaviour
8) To study buying beahviour of consumer
To analyse and study the buying behavior of various consumers.

Nature of consumer behavior:

i. The subject deals with issues related to cognition, affect and behavior in consumption
behaviors, against the backdrop of individual and environmental determinants. The
individual determinants pertain to an individual’s internal self and include
psychological components like personal motivation and involvement, perception,
learning and memory, attitudes, self-concept and personality, and, decision making.
The environmental determinants pertain to external influences surrounding an
individual and include sociological, anthropological and economic components like the
family, social groups, reference groups, social class, culture, sub-culture, cross-culture,
and national and regional influences.

Ii. The subject can be studied at micro or macro levels depending upon whether it is
analyzed at the individual level or at the group level.

68
 Iii. The subject is interdisciplinary. It has borrowed heavily from psychology (the study of
the individual: individual determinants in buying behavior), sociology
(the study of groups: group dynamics in buying behavior), social psychology (the study
of how an individual operates in group/groups and its effects on buying behavior),
anthropology (the influence of society on the individual: cultural and cross-cultural issues
in buying behavior), and economics (income and purchasing power).

Iv. Consumer behavior is dynamic and interacting in nature. The three components of
cognition, affect and behavior of individuals alone or in groups keeps on changing; so
does the environment. There is a continuous interplay or interaction between the three
components themselves and with the environment. This impacts consumption pattern and
behavior and it keeps on evolving and it is highly dynamic.

V. Consumer behavior involves the process of exchange between the buyer and the seller,
mutually beneficial for both.

Vi. As a field of study it is descriptive and also analytical/ interpretive. It is descriptive as it

explains consumer decision making and behavior in the context of individual
determinants and environmental influences. It is analytical/ interpretive, as against a
backdrop of theories borrowed from psychology, sociology, social psychology,
anthropology and economics, the study analyzes consumption behavior of individuals
alone and in groups. It makes use of qualitative and quantitative tools and techniques for
research and analysis, with the objective is to understand and predict consumption
behavior.

Vii. It is a science as well as an art. It uses both, theories borrowed from social sciences to
understand consumption behavior, and quantitative and qualitative tools and techniques
to predict consumer behavior.

Scope of consumer behaviour

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.

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THE SCOPE OF CONSUMER BEHAVIOUR IS AS
FOLLOWS.
 demand forecasting
 marketing management
 non-profit and social marketing
 selecting target market
 market mix
 educating customers
 assists in designing product portfolio

DEMAND FORECASTING
Consumer behaviour helps in the forecasting of the demands for the business. Every business
identifies the needs and wants of the customers by understanding their behaviour. Forecasting
helps them to find out the unfulfilled demands in the market easily. If the company knows what
their consumer wants, they can design and produce the product accordingly.
The behaviour of the consumer plays an important role in forecasting the demand for the
products. In addition, it helps the company to identify the market opportunity available to them.

MARKETING MANAGEMENT
Effective business managers know the importance of marketing towards the success of the
business. Understanding consumer behaviour is essential for the long-running success of any
marketing program. A better understanding of consumer needs and wants to help the business to
plan and execute their marketing strategies accordingly.
Proper understanding of the behaviour of the consumer makes the company know its customers
in a better way. That ultimately helps businesses to strategize and implement marketing in a
better way.

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.

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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 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

todefinethescopeofasubjectitisimportanttosetparametersoraframeworkwithinwhichitshallbestud
ied.figure1.1presentsonesuchframeworkforstudyingconsumerbehaviour.thisframeworkismadeupo
fthreemainsections-thedecisionprocessasrepresentedbytheinner-
mostcircle,theindividualdeterminantsonthemiddlecircleandtheexternalenvironmentwhichisrepres
entedbytheoutercircle.thestudyofallthesethreesectionsconstitutesthescopeofconsumerbehaviour

71
 CHAPTER – 5
DATA ANALYSIS
&
INTERPRETATION

72
1) How do you come to know about chitalebandhumithaiwale?

Contents No of customers

Advertisement 3

Internet 07

Newspaper 10

References 80

No of customers

3% 7%
10%

80%

Advertisement Internet Newspaper References

Interpretation:-

From the above graph it is clear that, among 100 customers 3 customers are come to know about
chitalebandhumithaiwale by advertisement medium. 7 customers are by internet medium. 10
customers by newspaper medium. Rest 80 customers are come to know through references.

73
2) how often do you go to chitalebandhumithaiwale?

Contents No of customers

Daily 10

Weekly 20

Monthly 30

Occasionally 40

Chart Title

100
90
80
70
60 Series 3
50
40
30
20
10
0
Daily Weekly Monthly Occasionally

Interpretation:-

From the above graph it is clear that, among 100 customers 10 customers daily go to the
chitalebandhumithaiwale. 20 customers weekly. 30 customers monthly & rest 40 customers go
occasionally like gudipadwa, sankrant, diwali, & ganesh festival.

74
3) do you like chitalebandhumithaiwale products?

Contents No of customers

Yes 80

No 20

Chart Title

80
70
60
Series 3
50 80
40
30
20 20
10
0
Yes No

Interpretation:-

From the above graph it is clear that, among 100 respondents 80 respondents says that they like
chitalebandhumithaiwale products. It shows that popularity of chitalebandhumithaiwale.
Remaining 20 respondents says that they don’t like katraj products.

75
4) which product do you like most?

Product name No of customers

Milk 20

Pedha 20

Ghee 5

Chivda 15

Bhakarwadi 40

Chart Title
100
90
80
70
60 Series 3
50 40
40
30 20 20
15
20
5
10
0
Milk Pedha Ghee Chivda Bhakarwadi

Interpretation:-

76
From the above graph it is clear that, chitalebandhumithaiwale products are very popular in pune
city. Among 100 respondents 15 of them says that they like chivda 5like ghee . 20 respondents
like pedh.20 respondents like pouch milk. & 40 respondents like bhakarwadi

5) in pouch milk which brand do you prefer?

Brand name No of customers

Katraj 39

Amul 14

Chitale 35

Gokul 12

No of Customers

Gokul
12%

Katraj Katraj
39% Amul
Chitale
Chitale Gokul
35%

Amul
14%

(note:- this figures are only in near pune area )

Interpretations:-

77
The above graph shows that, among 100 respondents 39 of them prefer katraj brand. 35 prefer
chitale brand.14 of them prefer katraj brand. And remaining 12 respondents prefer gokul brand.

6) what do you like about chitalebandhumithaiwale products?

Contents No of customers

Quality 21

Taste 62

Price 13

Availability 04

Chart Title
100
90
80
70
62
60 Series 3
50
40
30
21
20 13
10 4
0
Quality Taste Price Availability

Interpretation:-from the above graph it is clear that, among 100 respondents 62 respondents like
the taste of chitalebandhumithaiwale products. 21 respondents like quality of products. 13

78
respondents say that price of products are comparatively cheaper than other brand products. Only
4 respondents like availability.

CHAPTER – 6
FINDINGS CONCLUSION
&
SUGGESTIONS.

79
From a very small beginning which saw food items being produced manually with
Domestic help under a limited physical space, chitale bandhu mithaiwale today boasts
Of state-of-the-art use of technology in production and end-cycle management of business.
A comprehensive infrastructure, in terms of skilled manpower, automated manufacturing
Units situated at easily accessible points, distribution hubs at key locations and a wide &
Strong agent & distributor network in place to take care of all the business needs of concern.
There are a total of 6 different manufacturing units owned by the firm that supply the
Food products. Of these, the unit located at ranje, shivapur near pune has two automated
Manufacturing lines specifically devoted for manufacture and export of ‘bakarwadi’, the
Unique and monopoly food snack item from chitale bandhu mithaiwale. Sweet items
Like the ‘gulabjamuns’, the ‘pedhas’ and the ‘rasgullas’ are also manufactured on
Machines imported from japan.
Besides manufacturing, chitale bandhu mithaiwale owns two huge and modern shops at
Key locations in pune city. It has appointed 10 franchisees within the city and plans to
Increase this number to 15 shortly. Besides pune city, a wide network of authorised
Agents and distributors is placed all over maharashtra and outside states. Chitale bandhu
Mithaiwale provides employment to about 300 people at all its establishments.

Today they have grown into rs. 5 billion business, and are ably handled through a strong
distribution and franchisee network in pune and across the country. Having built a brand identity
for itself through the sheer range and quality of food products over the past five decades & more,
chitale bandhu mithaiwale today is a household name associated with the eating habits, for not
just the residents of pune but all over maharashtra. Chitale dairy produces about 200,000 litres of
milk per day and manufactures products such as cream, butter and yoghurt.
By establishing and operating through various corporate and non-corporate entities, this
Business today is a major supplier of food products all over india and is also slowly but surely
Establishing itself as a major exporter of its products abroad. Its present exports are to
Countries like usa, singapore and israel.
Chitale bandhu mithaiwale acquires all its dairy supplies from its sangli dairy farm.
Besides this, it has three main manufacturing concerns with multiple units in and around
Pune, where state-of-the-art machinery is in use for production of various types of
Sweets, salted and ready-to-eat food products. These manufacturing units are:
 chitale sweets & snacks pvt. Ltd. – 4 units
 shrikrishna food industries – 1 unit
 chitale bandhu mithaiwale – 1 unit

80
The quality of food products of chitale bandhu mithaiwale is strongly looked after and the
Business activity is (hazard analysis critical control points) haccp certified. Chitale
Bandhu mithaiwale is also up-to-date in the use of computer systems and modern technology
In all its business activities.
Being a family owned and managed business; chitale bandhu mithaiwale has evolved and
Developed through the sheer grit, determination and efforts of four generations of the chitale
Family.
Mr. S. R. Chitale says: “current annual turnover is $ 5 billion, $ 4 billion from dairy
Business where the profit margin is only 2% and rest $ 1 billion from sweets business
Where profit margin is 12 to 15%.” He continues: “60% of the entire sweets sales
Happen during festival time. Currently about 56 varieties of sweets and 31 varieties of
Namkeens are being sold.”
New product development started from home, where family ladies develop new product.
Then new product is sent for testing to customers and other family members, once approved
It is introduced in the system.
Chitale bandhu uses only one source of advertisement and that is through local newspape

Logistics and technologies:

Entire transportation is been looked after by chitale bandhu only. They have 13 small to
Medium vehicles, which carry out the entire operations in pune. All shops have to send next
Day demand based on the forecast by 5pm (evening). Accordingly next day morning at 5 am
Products are sent to the respective shops.
With the business operating 10 physical servers across two data centres in a town 500
Kilometres from the nearest large city, chitale dairy found it expensive and hard to source
Qualified it support staff .this posed a significant risk to its operations. In 2005, chitale
Dairy began evaluating ways of streamlining and enhancing its technology environment. The
Business decided to implement vmware server virtualization to provide the required
Availability and disaster-recovery capabilities. “we determined that if a server became
Corrupted, we would need six or seven hours to fully restore it,” said vishvas chitale,
Director, chitale dairy. “using vmware high availability (ha), we could reduce this to just
10 minutes.” In june 2007, chitale dairy consolidated its environment to three physical
Servers operating in one data centre. These 20 host virtual servers running multiple
Production applications and operating system, including 64-bit microsoft exchange server
2007. “our environment is highly scalable,” says chitale. “we can easily support another 20
Virtual servers on our existing hardware to service our growth of 15 percent year-on-year and
Expansion into new lines of business.” Chitale dairy is also evaluating vmware desktop
Infrastructure (vdi) for deployment.
Results
• reduced server hardware acquisition costs by 50%
• cut software acquisition costs by 75%
• reduced server deployment times from three weeks to three hours
• gained the ability to restore a corrupted server in 10 minutes rather than six to seven hours
• eliminated second data centre, with consequent 50% reduction in power, cooling and real
Estate, by consolidating from 10 physical servers to three

81
• reduced storage costs by 25%•
• delivered flexibility by supporting a range of storage options

CONCLUSION & SUGGESTION

Chitale means different things to different people.

To a sweet producer —a life enriching experience

To a consumer — assurance of having wholesome taste

to the country— rural development and self-reliance

As we know that chitale is very big organization and market leader in sweet and dairy products.
It has maximum market share in sweets ,milk & shuddh ghee which are iu main/core products.
In case of local market like pune chitale is a popular product compared to other products. With
the help of research, company can find out its week points and can increase its market share.
People have believed in chitale’s product and they will accept it al. If effective actions are taken.

The survey resulted into following conclusions

• chitale must come up with new promotional activity. Such that people come to know about
their other products too.

• quality is the dominating aspect which influences consumer to purchase their product, but
prompt availability of other milk brands and aggressive promotional activities by others
influence the consumer towards them and also leads to increase in sales.

• in comparison to other sweet marts chitale should come up with more outlets in secluded area.

82
 ANNEXURE-
QUESTIONNAIRE

83
 (CUSTOMER SURVEY)

Here i am requesting your opinion and suggestions about chitale bandhu mithaiwale& its
products.
 Please provide the following information

 Name ______________age_____

 Gender:-
A) Male ❑ b) female ❑

 Occupation:-
a) business ❑ b) student ❑
c) service ❑ d) others ❑

2) How do you come to know about chitale bandhu mithaiwale?

a) advertisement ❑ b) internet ❑
C) newspaper ❑ d) others ❑

3) How often do you go to chitale bandhu mithaiwale?

84
 A) daily ❑ b) weekly ❑

C) monthly ❑ d) occasionally ❑

4) Do you like chitale bandhu mithaiwale products?

A)yes ❑ b) no ❑

5) which product do you like most?

a) milk ❑ b) pedha ❑
c) ghee ❑ d)chiwda ❑
e) bakarwadi ❑

6) in pouch milk which brand do you prefer?

a) katraj ❑ b) amul ❑
c) chitale ❑ d) gokul ❑

7) what do you like?

a) quality ❑ b) taste ❑
c) price ❑ d) availability ❑

8) what is the reason for buying/ not buying chitale products?

85
A) -------------------------------------------------------------------------

B) --------------------------------------------------------------------------

9) give your rating to following attributes of chitale bandhu mithaiwale products?

Attribute Poor Average Good Excellent

Price

Taste

Packaging

Availibility

10) what are your suggestion/ expectation from chitale bandhu mithaiwale?

(RETAILER SURVEY)

Name of the shop: ___________________________________________________

Retailer name: ______________________________________________________
Address: ___________________________________________________________

1) do you stock chitale milk?

a) yes ❑

86
 B) no ❑

2) if yes, what is the size of chitale milk packets do you preferred to store?
A) 250 ml ❑
B) 500 ml ❑
C) 1liter ❑
D) 5 liter. ❑

3) if no, why?
A) absence of packaging date ❑
B) low margin ❑
C) no replacement for leakage ❑
D) low distribution ❑

4) which is the most preferable brand of packaged milk that you stock?
•katraj ❑
•chitale ❑
• amul ❑
• gokul ❑
• other ❑

5) from where do you get chitale milk?

A) distributors ❑
B) other supplier ❑

6) are you satisfied with chitale distributor?

A) yes ❑
B) no ❑

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7) do you know which sales promotional activities does the company undertake for chitale milk?
A) price off ❑
B) credit facility ❑
C) advertisement ❑
D) free samples ❑
E) coupons ❑
F) p-o-p display ❑

8) are you interested in distribution of chitale milk?

A) yes ❑
B) no ❑

9) are you aware of chitale parlor (apo) and its benefits?

A) yes ❑
B) no ❑

10) are you interested in opening a chitale parlor (apo)?

A) yes ❑
B) no ❑

11) what is consumer's expectation from chitale milk?

a) good quality ❑
B) packaging ❑
C) availability ❑

12) give your ratings to following attributes of chitale milk.

Very good good average bad very bad

88
 A) quality ❑ ❑ ❑ ❑
B) brand image ❑ ❑ ❑ ❑
C) availability ❑ ❑ ❑ ❑
d) packaging ❑ ❑ ❑ ❑
E) margin ❑ ❑ ❑ ❑

 BIBLIOGRAPHY

a)http://www.chitalebandhu.in/.

b)www.sweetproducts.com

c) research methodology (c. R. Kothari)

d) www.indianmilkproducts.com

E) https://www.getmyuni.com/articles/scope-of-consumer-behaviour#scope-of-consumer-
behaviour

89
F) https://economictimes.indiatimes.com/company/chitale-and-company-private-limited/
u51109mh1954ptc009325

G) https://www.justdial.com/pune/chitale-bandhu-mithaiwale-in-k-k-market-dhankawadi/nct-
11984225

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