Consumers of this era have been different from the ones that used to be 20 years ago. The consumers today are more demanding and at the same time service oriented. They would seem to be in hurry to shop so that they can utilize the time that they saved somewhere else. Many consumers prefer to not even go outside for shopping instead they would order over phone or internet. These changes have changed the way marketers have been marketing their products traditionally. To be able to meet the ever growing demands of the consumers, marketers need to accept the changes that have happened to the consumers’ behavior and apply those concepts to sell more of their products. This topic of the term paper was coined while visiting Pune Central on a weekend and Laxmi Road Market on the other. Pune Central is a well-known retail shop for all varieties of branded clothing, shoes, cosmetics, etc. On the other hand, Laxmi Road is the oldest local market of Pune and it has all local players of everything that is available in the retail shop. There are also few wholesale/factory outlets of Adidas, Fastrack, etc. One of the noted behaviors that were identified is that when in such local shops, shoppers tend to be in defensive mode and start bargaining even though the prices are less. However, this kind of behavior is not exhibited in retail shops or malls where the prices are exorbitantly higher as compared to the local market. For example, Global Desi is an outlet is most of the malls in Pune. It sells clothing for women that are a blend of traditional and western cultures. The average beginning price of a normal clothing in Global Desi starts at Rs1000 whereas the same kind of clothing is being sold at Rs600 in the local market. The shoppers are willing to pay Rs1000 while buying the clothes from Global Desi but seem to hesitate to pay Rs600 while buying from Laxmi Road. In fact, the shoppers tend to bargain with the shopkeepers to lower the price to Rs450 before they make the decision to buy. This peculiar behavior of the consumers will be studied in this term paper with theories being related back to the course of Consumer Behavior. Objective
The core objective of this short study will be to gain an awareness of the reasons behind the behavior of the shoppers as descried in the introduction section. At a high level, it seems to be a normal way of doing shopping. However, an effort will be made to identify the psychological and social theories that are responsible for making the consumers exhibit such behaviors. Methodology
Few hypotheses will be developed as per the observed behaviors in super markets and local markets. Psychological theories would be called up to justify those behaviors. In the end, a survey will be taken from the appropriate consumers to validate the hypothesis and confirm to the theories that will be developed in this term paper.
LOCAL SHOPS – LAXMI ROAD, PUNE
Laxmi Road in Pune is the famous and the oldest market complex. It contains all varieties of products starting from branded to local made. Buyers come in abundant numbers on weekends to shop. One of the major attractions of Laxmi Road is the Dagdu-seth temple of Ganesh. During festivals the shops in Laxmi Road attract many tourists and local people. Most of the old generations of people love to buy things from this market at a low price.
Figure: A view of Laxmi Road in Pune
The families under study of this term paper were two married couples with two kids each. The couples visit Laxmi Road once in two months on a weekend. I assisted both the families in their visits to this old place and observed the buying pattern and behavior. They bought the following items when under study: Articles Bought
Ladies artificial Jewelry
The families bought various items some of which are listed above that matched with the...
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