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Analysis of Factors Affecting The Consumer Behaviour Regarding Men'S Formal Wear Final Report
Analysis of Factors Affecting The Consumer Behaviour Regarding Men'S Formal Wear Final Report
Analysis of Factors Affecting The Consumer Behaviour Regarding Men'S Formal Wear Final Report
FINAL REPORT
SECTION K
Prarabdha Chandrakara – Seat No. 61
Anmol Kumar - Seat No.63
Khyati Jagani - Seat No. 65
Kavish Jagwani - Seat No. 67
Neha Goyal - Seat No. 69
Ritika Gupta - Seat No. 71
ABSTRACT
This project explores young Indian consumers’ buying behavior toward formal men’s wear in
Hyderabad, India. Specifically, it offers empirical results on the relationship between consumers’
decision-making and clothing choice criteria towards buying formalwear. A questionnaire is also
designed for further investigation to collect information of youth buying behavior and their
attitude towards formal wear. Based on questionnaire and SPSS software, attributes influencing
buying behavior of men’s (youth) in Hyderabad was analyzed.
ACKNOWLEDGEMENT
We would like to express our sincere gratitude towards Prof. SHUSHAMA MARATHE, who
gave us an opportunity to work on this project. We thank her for all the suggestions and valuable
inputs she gave us without which we could not have been successful in accomplishing this task.
This report is on ANALYSIS OF FACTORS AFFECTING THE CONSUMER BEHAVIOUR
REGARDING THE MEN’S FORMAL WEAR would not have been what it is without her
constant encouragement and support.
Last but not the least we would also sincerely thank all the people who contributed their valuable
insights and time to help us carry out this report.
TABLE OF CONTENTS
1. Introduction
2. Objective of the final report
3. Research design
4. Factor analysis
5. Analysis of factor analysis
6. Cluster analysis
7. Analysis of Cluster analysis
8. Conclusion
INTRODUCTION:
As a nation Indians were noted to wear garments that are unstitched, for example the lungi,
dhoti, sari etc. But with the advent of modernization certain changes in the dressing habits of
men have undergone innovation. Within a span of just twenty years the readymade garment
industry has grown thousand fold. The export figures are estimated to touch $ 11.6bn in 2010 but
unfortunately the figures for the local market are not available due to the disorganized nature of
the business. But a rough estimate points to $ 11.6bn with a fifty-fifty breakup in men’s and
women’s wear.
According to census.gov 40% of the complete population of India falls in between 21-35yrs
which makes youth market segment (school students, college students and young executives)
very attractive and is believed to be one with good potential and a profitable market in formal
garments. At the same time, youth now days in India are more willing to spend on apparels
because the income level has increased and living standard has upgraded. The apparel retailing
market is expected to become very competitive when no restriction on market access in equity,
geographic area, number and form of establishment is imposed on foreign investors. In view of
the keen competition in the future apparel market in India, having a better understanding of
fashion consumer buying behavior, especially factors affecting decision-making behaviors and
the critical evaluative criteria in apparel buying, will assist marketers to compete in this market.
So our project focuses more on the analysis of factors affecting the consumer behavior regarding
men’s formal wears in India.
To know the buying behavior for men’s formal wear in the age group of 20-35 on the basis of
various attributes that a consumer takes into consideration while making a purchase decision.
The purpose is to scale down the no. of factors and to see the effect of various independent
variables (i.e.: factors) on the consumer preference and final purchase.
RESEARCH DESIGN
SAMPLING
200 respondents were randomly selected from the above defined population for the survey we
conducted. We think it is apt to represent the complete population. This sample size has helped
us in arriving to the various attributes that the B-school students seek from any formal apparel, as
the complete population is a homogeneous group of respondents who may differ on geographical
front and income levels, but the demands of the population will not vary to a great extent
amongst each other.
QUESTIONNAIRE DESIGN
Most of the questions in the survey will be prepared based on the Likert scale (1 to 5). In this “1”
will represent strongly agree and “5” will represent strongly disagree. This will help to find the
general attitudinal characteristic of the respondents. Our questionnaire consist 12 questions
where one of them has 18 attributes which are to be answered on Likert scale describing the
extent to which they affect the choice of apparel.
QUESTIONNAIRE
PLEASE NOTE
Following questionnaire aims at identifying the factors that affect the choice/ preference
of the consumers on formal apparels
Apart from taking up some of your time, answering this questionnaire presents no risk
whatsoever.
Feel free to seek any clarification and ask any question regarding this project.
All responses will be treated in strict confidentiality and will be used for academic
research purposes only.
Your individual opinion is highly valued; therefore if possible, do not confer with others
during the completion of the questionnaire.
There is no right or wrong answers; a quick response is generally the most useful.
Name:
Age:
6. On an average how much money do you spend to buy a formal wear at a time?
Less than 1000 1000-1999
2000-2999 Greater than 3000
Thank You
FACTOR ANALYSIS:
To identify underlying dimensions, or factors, that explains the correlation among a set of
variables.
To identify a new, smaller set of uncorrelated variables to replace the original set of
correlated variables in subsequent multivariate analysis (regression or discriminant
analysis).
To identify a smaller set of salient variables from a set for use in subsequent multivariate
analysis.
DESCRIPTIVE STATISTICS
Correlation Matrix
A Correlation matrix shows the simple correlations between all possible pairs of variables
included in the analysis. The most commonly used correlation in the correlation matrix is the
Pearson Product Moment Correlation, which is also used here.
Two tests, KMO statistic for sampling adequacy and Bartlett’s test of sphericity, were
undertaken to test whether factor analysis would be appropriate for this study. The KMO statistic
is .833 (Table 1), and Bartlett’s test of sphericity is significant, hence, the correlation matrix can
be used for factor analysis.
COMMUNALITIES
Communality explains the proportion of variance of the variable captured in the extracted factor.
Initial communalities are estimates of the variance in each variable accounted for by all
components or factors. For principal components analysis, this is always equal to 1.0 (for
correlation analyses) or the variance of the variable (for covariance analyses). Extraction
communalities are estimates of the variance in each variable accounted for by the factors (or
components) in the factor solution. The table below shows the communalities values and the
percentage variance explained by each variable for the prerecession condition.
Communalities
Initial Extraction
Source of information 1.000 .816
Store image 1.000 .677
Display 1.000 .684
Previous Experience 1.000 .484
Maintenance 1.000 .668
Celebrity influence 1.000 .761
Product Placement 1.000 .348
current Trends 1.000 .760
Price 1.000 .602
Offers 1.000 .698
Design 1.000 .752
Color 1.000 .698
Fabric 1.000 .720
Fitting 1.000 .594
Full Sleeves 1.000 .651
Cufflings 1.000 .526
Half sleeves 1.000 .541
Brand name 1.000 .823
Country of origin 1.000 .828
Extraction Method: Principal Component Analysis.
VARIANCE EXPLAINED
In below table (explaining the total variance) we can see the Eigen values of all the given
variables. The first column shows the components also called factors. The "Total" column gives
the amount of variance in the observed variables accounted for by each component or factor. In
the next column we have the "% of Variance" column that gives the percent of variance
accounted for by each specific factor or component, relative to the total variance in all the
variables, and then is the cumulative variance that sums up to 100
Earlier while running factor analysis we had defined that we will take those factors whose Eigen
value is more than 1. So in this case we are getting 6 components that have the Eigen value more
than 1. Among these six factors the first factor would be contributing the maximum information.
The second factor will contribute second most important information and so on.
As unrotated solutions are hard to interpret, we use varimax rotation. Varimax rotation is an
orthogonal rotation of the factor axes to maximize the variance of the squared loadings of a
factor (column) on all the variables (rows) in a factor. A varimax solution yields results which
make it as easy as possible to identify each variable with a single factor. The rotated matrix,
using PCA analysis, is shown in Table below.
Component
1 2 3 4 5 6
Source of information .897
Store image .741
Display .762
Previous Experience .637
Maintenance .775
Celebrity influence .856
Product Placement .562
current Trends .859
Price .763
Offers .828
Design .845
Color .816
Fabric .834
Fitting .746
Full Sleeves .737
Cufflings .713
Half sleeves .722
Brand name .905
Country of origin .903
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 6 iterations.
Six factors, such as Product Features, Brand Association, Brand identification, Brand
Location, Brand Usage, and Source of information were identified from the above table.
Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6
(Product (Brand (Brand (Brand (Brand (Source of
Features) Association) Identification) Location) Usage) information)
Price Celebrity Brand Name Store Previous Source of
Influence image Experience information
Offers Product Country of Display Maintenance
Placement Origin
Design Current Trends
Color
Fabric
Fitting
Full Sleeves
Cufflings
Half Sleeves
CLUSTER ANALYSIS
The main aim of cluster analysis is to identify clusters. These clusters help us to identify those
groups of cases which are closely related to each other and those which are not closely related.
The cases within a cluster are homogeneous to each other but are heterogeneous to cases in other
clusters.
It is basically used when the researcher does not have a very clear idea about the groups in
advance but wishes to establish groups and analyze them to get better insights about the
population. There are two ways of cluster analysis:
K-means clustering
As we have 200 cases, we did K-Means clustering, as hierarchical clustering will not give the
clear picture of clusters for such long data sets. we wanted to run the cluster analysis to identify
those cases which fall in a cluster and depict a common perception towards purchase of formal
wear.
In this case we identified 4 groups to be an appropriate number. This table shows the value for
the initial cluster centers. This value is the mean of each variable within each cluster. So for
instance we can say that the mean of income in the first cluster is 4, that is to say that maximum
number of people in cluster 1 have income in between 750000 and above. For them the source of
information is of not much importance as they mostly rated 2 for it.
These initial clusters are those dissimilar cases which the program chooses and then these values
are used to define the initial clusters.
Cluster
1 2 3 4
Income 4 3 2 2
Occasion 2 3 3 2
Purpose 2 2 2 4
Koutons 2 5 2 4
Oxemberg 4 4 5 1
Charlie Outlaw 2 3 3 4
Cotton County 2 2 5 2
Local Vendors 4 1 5 4
Purchase
3 2 2 3
Frequency
Money Spend 3 3 2 3
Influencer 1 5 1 3
Source of
2 5 5 2
information
Store image 4 1 1 5
Display 4 1 1 4
Previous
3 3 2 5
Experience
Maintenance 5 3 1 4
Celebrity influence 5 5 2 1
Product Placement 3 5 2 1
current Trends 5 5 1 1
Price 3 5 1 5
Offers 2 5 1 5
Design 1 5 2 5
Color 2 5 1 5
Fabric 3 5 2 5
Fitting 3 5 2 5
Full Sleeves 2 5 2 5
Cufflings 1 3 1 5
Half sleeves 1 1 2 5
Brand name 1 5 4 4
Country of origin 1 5 5 4
Shopping Store 2 1 1 1
Selected Store 0 1 6 5
Type of Fabric 3 2 2 2
Information
5 2 1 5
Gathering
As against the initial cluster centers this table shows the value of the final cluster centers. So now
we can say that the mean of source of information in the first cluster is 3, that is to say that
maximum number of people in cluster 1 rated source of information as neutral in case of
influencing their purchase of formals which if we compare from the initial cluster was not so
important(2). Now the income group is also 3 i.e. 500000-749999.
Final Cluster Centers
Cluster
1 2 3 4
Income 3 3 3 3
Occasion 2 2 2 2
Purpose 2 2 2 2
Koutons 3 4 3 4
Oxemberg 3 4 3 3
Charlie Outlaw 3 3 3 3
Cotton County 3 3 3 2
Local Vendors 4 2 4 4
Purchase
3 3 3 3
Frequency
Money Spend 3 3 2 2
Influencer 2 4 2 2
Source of
3 5 3 3
information
Store image 4 1 3 3
Display 4 2 4 4
Previous
2 2 2 3
Experience
Maintenance 2 2 2 3
Celebrity influence 3 2 2 1
Product Placement 2 3 2 2
current Trends 3 3 2 2
Price 2 5 2 5
Offers 2 5 2 4
Design 2 5 2 4
Color 2 5 2 5
Fabric 2 5 2 5
Fitting 2 5 2 5
Full Sleeves 2 5 2 4
Cufflings 2 4 2 4
Half sleeves 2 4 2 5
Brand name 3 4 5 4
Country of origin 3 4 4 4
Shopping Store 1 1 1 1
Selected Store 3 1 3 3
Type of Fabric 2 2 2 3
Information 2 2 2 3
In the output we have cluster membership which gives the membership of each case in particular
cluster and its distance from the cluster’s centroid. The table shown below shows the distances of
various clusters with each other. All the pairs of cluster centers are well separated.
Cluste
r 1 2 3 4
1 10.431 3.136 8.399
2 10.431 10.079 5.435
3 3.136 10.079 7.933
4 8.399 5.435 7.933
ANOVA
The F tests should be used only for descriptive purposes because the clusters have been chosen to
maximize the differences among cases in different clusters. The observed significance levels are
not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster
means are equal.
Now when we look at the above table we see the F Ratio. The F Ratio associated with Design is
the largest at 128.383 meaning that this variable is most helpful in forming and differentiating
the clusters. Though this is the highest but there are certain other variables as well which play a
very critical role while forming the clusters. These are basically:
Offers
Fabric
Color
Fitting
Full sleeves
Price
Half sleeves
At the same time the ones that are least useful to form these clusters are:
Income
Previous experience
Shopping store
Money spent
Maintenance
Other brands
The table below defines the number of cases that have been allotted to each cluster.
Cluster 1 55.000
2 4.000
3 121.000
4 20.000
Valid 200.000
Missing .000
Basically by this test we conclude that we have four different clusters to focus on. Also among
them the most important segment is the 3rd cluster which consists of 121 people out of 200 in a
sample. These people are mostly influenced by the display and like to shop from local vendors.
so accordingly we will have to target the market and fulfill their needs.
REFRENCES