CONSUMER BEHAVIOR OF RELIANCE USERS

Submitted by:

Shubhangi 09BSHYD0797

Tripti 09BSHYD0930

Trishna 09BSHYD0931

Varuna 09BSHYD0963
Task 1: MOTIVATIONAL RESERCH

A) Use the model of the motivation process to analyze how the ads of the chosen brand are
motivating the consumer to buy it?
Once we are out from our parents clutch, we are all on our own making decisions, taking
decisions and also at times evaluating their outcomes. In other ways we get to see the world with
all our consciousness and evaluating it on our parameters. But all this never symbolizes that we
are no more in contact with our friends, in fact we are in more need of our family and friends.
This is because of human nature which always requires the emotional support of their close ones
even if that means having their presence in a virtual medium. This social need of human being is
being satisfied to a large extend by the telecom industry.
In our study we have taken up Reliance 550 plan. As per the outcome of our discussion with
our friends, we found out that the two things which bother them the most are food in the campus
and the need to remain connected with their family and friends. Therefore if we study this need
in terms of the motivational model, we see that it is the acquired need (Annexure page 13) which
is not getting fully satisfied, which is why they (students in the campus) are tensed (Annexure
page 14).
As per our finding from the regression model (Annexure page 20-21) we see that the
advertisement made by the Reliance group has significant impact on the buying behavior of the
target group.
From our study we could interpret that when the target group customers had realized the
unfulfilled need or desire, they went ahead with evaluating all the options available in this place
which would meet their expectations, one of them being the mobile service providers, apart from
the service provided by the internet and making new friends. This behavior of the customer is
explained by the drive part in the model which resulted in the information search made by the
customers of finding out the product which would meet their need.
Now once they have decided on choosing a specific service which would meet all their
requirements, they go about choosing all those attributes which matters them the most. As we
can see from the model that at this stage both cognitive process and previous learning plays an
important role in shaping the behavior of the customer. From our analysis (Annexure page 22)
we see that, cognition plays a more important role in the decision making process. The attributes
of the cognition factor as per our analysis are
1. Preference for brand due to message associated with advertisements
2. Pay attention to the advertisements while choosing the brand for me
3. Advertisement is a better source of awareness and information about the brand than other
sources
4. Advertisement lead to natural connect with the brand
5. Knowledge due to exposure to advertisement for a long period of time serves as an
important factor during the purchase decision.

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From this we can conclude that our target group has high need for information about their
product. We can also see from our analysis (Annexure page 24) that plans being used by family
and friends and the variety of plans available at the market are the two most important factors
valued by the target segment along with affordability. From this we can conclude that though
plans used by family and friends and past experience are important factors under consideration,
but still being a rational customer they evaluate all the possible options which best suits their
pockets. Therefore if under a given circumstance, the current offer available to them gives them
more benefit compared to what they were getting after using their previous plans, they choose to
go with the plan which better meet their evaluation parameter. And as this need for information
is best met from the advertisements, as they provide the correct and accurate information, the
target segment pays a lot of interest on the information being provided and evaluates the
alternatives based on that information along with the information from informal source like from
their friends.

From this we can conclude that the strategy adopted by the Reliance telecom group has met with
the expectation of their customers. They communicate messages with which the consumers can
connect with and also acceptable in terms of the information given in the advertisement.
Moreover from our Focus group interview we could also conclude that the advertisements of the
brand is also specific enough with the terms and conditions applied, that is how much would they
get with what amount of recharge. This is an important criterion among the target customers
because along with getting the best deal (more value per price), the simplicity and specificity of
the message content is also required. Hence we can conclude that by making an advertisement
with both emotional and rational appeal, Reliance has succeeded in getting a loyal set of
customers who are using their product for on an average of 6 years.

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(B) What type of motivations (positive or negative and rational or emotional) and needs
(Maslow’s hierarchy of needs and trio of needs) does the chosen brand cater to? Justify the
answer by using the inputs from the primary research conducted by you?
According to Primary Research conducted for Reliance Communication at IBS it is catering to
Positive and Rational Motivation because of the following factors:
POSITIVE MOTIVATION

 Plans being used by family and friends

Consumers prefer Reliance because their near and dear ones are using it so they are getting
the drive towards Reliance. The main reason behind it is the dogmatism of the target group
(4.44%) i.e. they use what their family and friends are using because it gives them a sense of
belonging (Annexure page 23-24)

 Simplicity of Plans:
Consumers prefer Reliance because its plans are simple and transparent with no hidden
costs so consumers get attracted towards Reliance Communication.(4.38% of target
group ) (Annexure page 23-24)
 Connectivity/Network:
Consumers prefer Reliance because its connectivity is considered to be very good. The
main drive behind it is safety need. Even among our target audience (3.68%) the signal
strength is considerably good.(Annexure page 23-24)

 Variety of Plans:
Consumers prefer Reliance because it comes up with different plans for different classes
of consumers i.e. the youth in a relationship, rural segments, family packs, ISD packs etc.
4.32% of target group prefer it because of this reason.(Annexure page 23 -24)
RATIONAL:

 Affordability:
The target segments in the college are all rational consumers who take the decision based
on a lot of thinking. Since reliance provides better and cheaper plans than almost all its
competitors it is given preference by the students at IBS (4.12%) (Annexure page23-24)

 Connectivity:
Since IBS Hyderabad is located in the outskirts of the city, where many players do not
have their network base, reliance distinctively scores above the others.(3.68%) (Annexure
page 23- 24)

 Simplicity of Plans:
Customers prefer those services where the terms and conditions are lucid and transparent
they are able to comprehend the plan in a better way and accordingly can compare with
the offer of the other players. (4.38%) (Annexure page 23-24)

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  Variety of Plans:
As our target group prefers service of a Network provider that provides plethora of
plans as offered by Reliance which facilitates flexibility in choosing the plans
according to need of the hour (4.32%) (Annexure page 23 -24)

Conclusion
Since out of 7 listed factors, 4 factors emphasize Positive and Rational motivation so it can be
concluded that Reliance caters to Positive & Rational Motivation.
NEEDS
If we consider the Maslow’s hierarchy of needs and trio of needs then looking at our target group
and the results of primary research conducted by us, we get to know that the social need of the
respondents is the most important need satisfied by the reliance service provider. Along with this
the need from affiliation is also the majorly satisfied one .They are seeking warm ,satisfying and
loving relationships with other people like their friends and families. Even in the primary
research conducted by us we get to know that the major reason for people using reliance is easy
connectivity with family and friends (68% of the people answer this annexure page 12) and they
are motivated by the love for their family and friends. Moreover we have considered the various
factors used by the respondents in making their purchase decision and we got to know that plans
that are being used by family and friends is the main driving force in deciding the reliance as the
service provider (Annexure page 23 -24).They are socially dependent on others and their
behavior is strongly influenced by the desire for friendship, for acceptance and for
belongingness.
We have also obtained a factor called brand name in the list of factors considered during the
purchase decision (focus group discussion).Though the factor has the least preference among all
the factors of the list but it individually has a rating of 3.26 (Annexure page22-23-24) which
gives us a clear picture that it holds important and the individual is not neutral towards it during
the purchase decision. Moreover we get an idea that to some extent the ego need of the
respondents is satisfied by this factor. They use reliance for fulfilling their outwardly directed
ego needs like need for prestige, reputation, recognition from others and use it as a status
symbol. Along with this using Reliance also gives them a sense of pride and their need for
achievement is satisfied .They consider having reliance as their service provider as a personal
accomplishment.
Considering the factor like simplicity of plans we get to know that this factor is important to a
large extent while choosing Reliance as their service provider (Annexure page 23-24). To some
extent, the security need of individuals is satisfied and they seek stability and order by avoiding
complexity. They want to be on the safe side, use simple plans and mitigate any risk or loss
associated with the complex plans

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Task 2: Targeted Consumer personality analysis

What type of personality groups (complaint, aggressive or detached) and personality traits is the
chosen brand catering to and what according to you is the reason for the same?
PERSONALITY
THE BIG FIVE MODEL (Annexure page 25)
The Big 5 personality test was carried out on the 8 focus group respondents to determine the
general personality traits of Reliance users. The results so obtained were then plotted as given
below and analyzed.

CLOSE OPEN
1 2 3 4 5
MINDED MINDED
      x      
        x    
    x        
    x        
      x      
    x        
      x      
  x          

The majority of the respondents were close minded. They seem to be down-to-earth and
conventional people who prefer simple ideas.

DISORGANIZE CONSCIENTIO
1 2 3 4 5
D US
        x    
      x      
    x        
    x        
        x    
          x  
        x    
  X          

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The respondents were comprised of both the disorganized and the conscientious people. There is
no clear cut distinction with respect to this trait.

INTROVERTE EXTRAVERTE
1 2 3 4 5
D D
      x      
      x      
        x    
      x      
        x    
          x  
        x    

The majority of the respondents lie towards extraversion. They seek positive emotions and the
company of others. They are action–oriented and tend to assert themselves while in a group.
They are likely to draw attention to themselves.

DISAGREEABL AGREEABL
1 2 3 4 5
E E
    x        
          x  
        x    
        x    
        x    
          x  
        x    
        x    

A majority of the respondents are agreeable, compassionate and cooperative towards others.
They are more considerate, generous and optimistic about human nature.

CALM/RELAXE NERVOUS/HIGH
1 2 3 4 5
D STRUNG
  x          
    x        
      x      
      x      
  x          
    x        
  x          

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         x    

A majority of the respondents have a calm state of mind. They are emotionally stable and
experience lesser negative feelings.
THE CAD MODEL
As per the analysis, 68% respondents chose Reliance as it enabled “easy connectivity with
family and friends”(Annexure page 12) Also, the focus group participants stressed on the need to
stay connected with their social circle. They specifically mentioned that they use reliance as it is
also the service provider used by their family and friends. Also, recommendations by their
friends were a factor because of which they sought a Reliance connection.
Therefore, it is conclusive to say that a majority of the Reliance users are COMPLIANT
individuals. They tend to go along with their social circle and family. They feel connected and
loved when they talk to their loved ones without hassles.

OTHER CHARACTERISTICS

 INNER DIRECTEDNESS
The inner value in the Indian collectivist society is to be available for one’s family. And, over
long distances, it means to be in constant touch thorough phones (as they are the most personal
mode of communication over the Internet. Also, telephones / mobiles are easier to operate than a
web-based chat).
Therefore, a lot of Reliance ads feature the benefits of using a Reliance connection.

 HIGH OPTIMUM STIMULATION LEVEL

Reliance telecommunications offers a variety of plans to suit the varied customer needs. As per
the FGD, a respondent mentioned
“There is a plan for everything. Whatever that you want, is available”
The users are open to trying out the new plans offered by the company. They regularly change
their monthly plans and benefit plans to suit their requirements.

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 ANNEXURE
DATA COLLECTION TOOLS
1. Focus group Discussion Guide

FOCUS GROUP
GUIDE.docx

2. Questionnaire of the Primary study

cb
questionnaire.docx

3. Datasheet

FINAL
DATASHEET_cb.xlsx

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ADVERTISEMENTS USED IN THE STUDY

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MAIN FINDINGS /STATISTICAL ANALYSIS OF THE PRIMARY STUDY
QUESTIONNAIRE ANALYSIS

The Response – An Overview

 The questionnaires were sent to 50 persons.

 Received response from all 50 persons.
Response Rate - 100 %
Total sample space = 50

OUTPUT

Question I How long have you been using reliance?

SNO Options Number Percentage (%)

1 Less than six months 3 6
2 6 months to 1 year 13 26
3 1-3 years 21 42
4 More than three years 13 26

Question II What is the most importance reason of you using reliance?

1. Easy connectivity with family and friends

2. It is a brand name
3. It gives me a sense of security
4. Any other (Please specify) ……………………………..

SNO Options Number Percentage (%)

1 Easy connectivity with family and 34 68
friends
2 It’s a brand Name 5 10
3 It gives me a sense of security 1 2
4 Any other
Not mentioned 7 14
Reliance to Reliance Free 1 2
Cheapest plans 1 2
Schemes and offers 1 2

Question III If the connection does not work I get tensed

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 Sno Option Number Percentage (%)
1 Strongly Disagree(1) 0 0
2 Disagree( 2 ) 0 0
3 Neutral (3) 9 18
4 Agree ( 4) 21 42
5 Strongly Agree (5) 20 40

From this we can see that, the service users are highly dependent on the service provider and its
services.

Note: For Questions 2 to 14 under question III, following is the hypothesis and the analysis
Objective 1: Examine the impact of motivation by advertisement on consumer purchase
decision

H0: βi = 0 There is no impact of Advertisement on consumer brand preference.

H1: At least one βi ≠ 0 there is an impact of Advertisement on consumer brand preference.
Where i = ith variable of advertising. (i=1 to 12)

Methodology

The steps will be as follows:

a) Collection of primary data on consumer preference for reliance through a
structured questionnaire.
b) Coding of the responses as per 5-point Likert Scale.
c) Putting the Coded Data in SPSS Software.
d) Using Statistical Model such as Multi-Variate Regression Analysis and Factor
Analysis to test for the significance for the model and to check whether the
variables are explaining the variation in our dependent variable i.e. brand
preference.
e) Interpreting the results.
f) Drawing Conclusions.

Scatter Plots, Descriptive and Bivariate-Co-relation Analysis

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First of all, we need to draw and analyze the scatter plots. But as we have data coding in Likert
Type of scale, so there is no meaning in drawing and analyzing the scatter plots.
We have run the bivariate co-relation on the data choosing the independent variable with the help
of SPSS. Our data sets have many variables (16 variables in total) with correlation coefficient
more that 0.40 (significance < 0.050). Following are the pairs with correlation greater than 0.40
(significance<0.050)1-2,1-5,1-10,1-12,2-10,5-6,5-7,5-8,5-10,5-11,5-12,6-8,6-11,7-10,7-11,10-11
So there is a problem of multi-collinearity. So we can’t run the Regression Analysis at this
stage. Thus we have to use factor analysis for our data sets to remove the problem of multi-
collinearity.

Factor Analysis: SPSS Output Interpretation

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .0.723
Bartlett's Test of Sphericity Approx. Chi-
245.242
Square
Df 66
Sig. .000

KMO & Bartlett’s Test

The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is an index used to examine the
appropriateness of Factor Analysis. High Values (between .5 and 1) indicate Factor Analysis is
appropriate. Values below 0.5 indicate that Factor Analysis may not be appropriate. The KMO
statistic in our study is 0.723 which lies between 0.5 and 1 indicating the appropriateness of the
Factor Analysis. Also it is in the “GOOD” range of the KMO Scale of fitness.

Bartlett’s Test of Sphericity is a test statistic to examine the hypothesis that the variables are
uncorrelated in the population. In other words the hypothesis here is that population correlation
matrix is an identity matrix; each variable correlates perfectly with itself (r = 1) and has no
correlation with other variables (r = 0).

It is tested by Chi square test for which to be significant the significant value should be greater
than 0.05.The statistic so computed in our case (p<.000) leads to the rejection of the hypothesis
that the correlation matrix is not an identity matrix and hence the variables bear correlation with
each other.

Communality

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Communality value of a variable is the amount of variance of that variable that is explained by
all the factors together .The amount of variance in each variable that can be explained by the
retained factors is represented by the communalities after extraction. The communalities in the
column labeled Extraction reflect the common variance in the data structure.

Total Variance Explained

The Eigen values represent the total variance explained by each factor. Here, only those factors
which have Eigen values greater than 1 are retained. The other factors which have variance less
than 1 are no better than a single variable, because due to standardization, each variable has a
variance of 1. Hence they are not included in the model. As we see from the table 37.611 % of
variance is explained by factor 1 and 13.760% by factor 2 and so on. Now SPSS extracts those
factors which have an Eigen values greater than 1 and hence we are left with only 4 factors.
Extraction Sums of Squared Loadings gives the same values as the values before extraction,
except that the values for the discarded factors are ignored (hence, the table is blank after the
fourth factor).

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Total Variance explained after rotation

An important output of the analysis is rotated component matrix. It contains the co efficient used
to express the standardized variables in terms of the factors. These coefficients, factor loadings,
represent the correlation between the factors and the variables. A coefficient with a large
absolute value indicates that the factor and the variable are closely related. The coefficient of the
factor matrix can be used to interpret the factors. Although the initial factor matrix indicates the
relationship between the factors and the variables, it seldom results in factors that can be
interpreted because the factors are correlated with many variables. Therefore through rotation the
factor matrix is transformed into a simpler one that is easier to interpret. Rotation does not affect
the communalities and the percentage of total variance explained. However the percentage of
variance accounted for by each factor does change. The most commonly used method of rotation
is the varimax procedure, which is an orthogonal method that minimizes the number of
variables with high loadings on a factor, thereby enhancing the interpretation of the factors.

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Scree Plot

A Scree Plot is a plot of the Eigen values against the number of factors in order of extraction.
The shape of the plot is used to determine the number of factors. Generally, the plot has a distinct
break between the steep slope of factors with large Eigen values and a gradual trailing off
associated with the rest of the factors. This gradual trailing off is referred to as the Scree. The
point at which the Scree begins denotes the true number of factors. Generally the number of
factors determined by a Scree plot is few more than that determined by the Eigen value criteria.
In our Scree plot we see that a distinct break exists at 4 factors. Additionally, this is also justified
by the Eigen values output derived. Hence 4 factors appear to be reasonable in this situation.

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Rotated component matrix

This matrix gives us a very clear picture as to which of the variables are loaded high on which of
the factors(after rotation) and gives us the idea that which of the variable belongs to which of the
factor. Here the cutoff for determining high is defines as 0.5 that is only factor loadings of 0.5
and above are considered and rest are suppressed in the table to get a clear picture of the factors.

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In our result we find that three variables that is 1,4 and 11 show cross lading that they are highly
loaded in two factors at the same time .So here we consider them to belong to that factor where
they show maximum factor loading. Hence we got four factors:

Factor 1: Cognition

The rotated matrix reveals that the respondents perceive this particular factor to be the most
important factor, with the highest explained variance of 24.383 %. The factor loadings of these
variables in factor 1 are 0.577,-0.766,0.665 ,0.611 and 0.708 We have named this factor as
Cognition.
Variables belong to first facto are
6. Preference for brand due to message associated with advertisements
7. Pay attention to the advertisements while choosing the brand for me
8. Advertisement is a better source of awareness and information about the brand than other
sources
9. Advertisement lead to natural connect with the brand
10. Knowledge due to exposure to advertisement for a long period of time serve as an
important factor during the purchase decision.
Factor 2: Credibility of the advertisement
It has come out with the second most important factor explaining variance of 17.760%. The
variables having high loading in this are 0.642, 0.661,0.-811,0.595 respectively. This whole
factor is termed as Credibility of the advertisement.

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The variables belonging to this factor are
1. Advertisement play an important role
2. Advertisement is convincing and help in making decision.
3. Advertisement are not deceptive
4. I prefer my brand due to the celebrity endorsing it in the advertisement

Factor 3: Advertisement visibility

This factor explains 17.015 % of the total variance .The high factors loading values in this factor
are 0.767 and 0.783
The variables belonging to this factor are
1. I came to know about the brand that I am using through an advertisement
2. Repeating an advertisement frequently affects my brand preference

Factor 4: Past Experience

This explains 11.599% of the total variance. The factor loading belonging to this is 0.900.
The variable belonging to this factor is
Even if I don’t like the advertisement, i may buy that brand.

Multiple Regression Analysis

Once the problem of multicollinerity is solved, we had then proceeded with regression analysis.
The independent variables taken are the factors obtained from the factor analysis part and
independent variable is the purchase intention of the target customers.

The question is looking at the advertisement, I intend to purchase the brand.

Now we had run the linear regression between our dependent variable and the 4 factors (as
independent variable).We got the output as follows:

1. ANOVA: From the ANOVA table it is clearly visible that the F stat is 5.121 and which is
significant as per P value (<0.05). So our model is significant and the hypothesis is
accepted(Advertisement have an impact on the purchase decision).

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2. Model Summary: Here it is clear that the value of adjusted R Square is 0.252. So we can
say that the independent variable (advertisement) is able to explain 25.2% of the total
variance in brand preference.

Also the low value of R square is due to the fact that we have not taken the other variable
then advertisement which also influence the brand preference like price, the price quality,
availability etc.

From the Beta coefficients of factors, it is clearly visible that only one factor i.e. factor 1
cognition is significant (p value<0.05).This is at 95%of significance level.

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Conclusion: So we see that our hypothesis is accepted that is the advertisement s effects the
purchase decision. Moreover out of all the factors, we find cognition or knowledge due to
advertisements to be most affective in impacting the purchase decision.

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Objective 2 –Analysis of the factors determining people’s preference for reliance.

Analysis related to some of the factors that affect the purchasing decision of individuals
regarding Reliance.

Methodology

The second part of the questionnaire consisted of the a list of seven factors that affect the
purchase decision of individuals regarding reliance .This list of factors was prepared after the
focus group discussion where the members of the discussion actually mentioned these factors as
important while making their purchase decision.

The scale used is a five point likert scale.

1-Strongly Disagree

2- Disagree

3- Neutral

4-Agree

5- Strongly Agree

The respondents were asked to rate the importance these factors hold in your purchasing
decision by marking a tick in the respective box.

The final results were calculated by taking out the average rating by all the fifty respondents.

Results

S.no Factor Average Rating

1 Affordability 4.12
2 Connectivity / Network Coverage 3.68
3 Brand Name 3.26
4 Simplicity of Plans 4.38
5 Plan being used by family & friends 4.44
6 Variety of Plans 4.32
7 Past Experience 3.94

Conclusion
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This result clearly points to the view that all the factors deciphered from the focus group
discussion are important for the respondents decision making (as all of them have average score
greater than 3 which is neutral), only the degree of importance differs .

The list of the factors in the decreasing order of importance during the consumer decision
making is

Gender

Sno Gender Number Percentage (%)

1 Male 22 44
2 Female 28 56

Age - Average age of the respondents is calculated to be 23 years.

The list of factors in their order of importance for making the final purchase decision

1. Plans being used by family and friends

2. Simplicity of plans
3. Variety of plans
4. Affordability
5. Past experience
6. Connectivity/Network
7. Brand Name

CONSUMER PERSONALITY ANALYSIS

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To determine the personality of the target group we conducted a personality test with eight
member of the focus group .This double testing gave us a clear and objective picture about the
personality of the Reliance users.

 Test used – BIG FIVE PERSONALITY TEST

 Sample size – Eight members of focus group
 Analysis of the test

CB personality test
analysis.xlsx

References
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1. Churchill, Lacobucci and Israel. Marketing Research, Chapters 4, 5, 18, 20

2. Leon G. Schiffman, Leslie Lazar Kanuk, Consumer Behavior, 9th,

Chapter 4 – Consumer Motivation: Fig 4.1, Page 103; Page 107-109;

Chapter 5 – Personality and Consumer Behavior, Page 140, 144

2. www.outofservice/bigfive
3. http://en.wikipedia.org/wiki/Big_Five_personality_traits
4. www.outofservice.com

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