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International Journal of Management (IJM)
Volume 7, Issue 7, November–December 2016, pp.313–319, Article ID: IJM_07_07_035
Available online at
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ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication
AN ANALYTICAL STUDY ON BEHAVIORAL
CHANGES OF CONSUMERS OF FOR HOUSEHOLD
FURNITURE IN PUNE REGION
Dr. Dhananjay Mandlik
Professor, Sinhgad Business School, Pune, Maharashtra, India
Dr. Prashant Kotasthane
Associate Professor, Sinhgad Business School, Pune, Maharashtra, India
ABSTRACT
Furniture market in India is predominantly an un organized retail market (85%) but gradually
with large scale organizations (manufacturing & retailing) venturing into the sector has in the
change in behavior of consumers Consumer behavior in recent past(five years since 2008) is
changing its orientation form dissonance reducing behavior to branding. This is indicated by
various activities the consumers undertake which are directly or indirectly responsible for furniture
purchase. The purpose of the study was to test the extent of change of behavior over the period to
plan effective strategies.
Nine statements chosen which exactly described the consumer behavior. Each statement
represented activities which depicted specific consumer behavior. These statements were
constructed on the on the basis of extensive literature review & from pilot survey in Oct 2012.
Respondents had given their opinion about the statements on 5 point Likert’s scale. Statements
were positive indicating a negative difference on selecting choices if there was any difference in
behavior. Results obtained were subjected to paired 2 sample test. Results showed a substantial
change in consumer behavior on the nine dimensions considered for study.
Key words: Consumer Behavior, Furniture, Likert’s Scale.
Cite this Article: Dr. Dhananjay Mandlik and Dr. Prashant Kotasthane, An Analytical Study on
Behavioral Changes of Consumers of Retail Outlets for Household Furniture in Pune Region.
International Journal of Management, 7(7), 2016, pp. 313–319.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=7&IType=7
1. INTRODUCTION
1.1. Indian Furniture Industry Profile
In India Domestic furniture industry is estimated at around Rs 750 billion and is highly fragmented where
around eighty-five per cent of national production comes from regionally small size firms falls into the
unorganized sector and remaining comes from the organized sector comprising of leading manufacturer,
importers and dealer/distributors. According to IBRD the organised international furniture industry is ex-
Dr. Dhananjay Mandlik and Dr. Prashant Kotasthane
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pected to grow by 20% each year, and India will witness a boom. The branded furniture market, compri-
sing residential and commercial furniture, was valued at US$1.3bl in 2008, and was expected to reach
US$4.6.7bl in 2015.
Table 1 Indian furniture industry statistics [Source: KPMG]
Size of the Industry Estimated at around Rs. 35,00crore (Rs. 35 billion).
Geographical distribution All the metropolitan cities
Output per annum Wooden furniture solely owns the share of nearly Rs 60 %
Percentage in world market India was one of the biggest furniture importer in 2011-12, with a 7
% share in furniture imports worldwide.
Contribution to GDP Constitutes 0.5 per cent of GDP
Imports Imports worth US$ 750 million, growing at 60 per cent CAGR
Employment potential Employs 1,300,000 people
Growth prospects Organized sector growing at 30 per cent CAGR
The furniture sector makes a marginal contribution of 0.5% to India’s GDP. The entry of international
brands and changing consumer preference has led to the emergence of furniture retailing in India. In fact,
India has been classified as one of the large furniture markets in the world having a middle class
population of over 450million & with a purchasing power on the upswing.
Few more market details can be furnished as:
1. Highly unorganized – only about 15% in organized sector Organized sector (domestic players as
well as imports )growing at 30% CAGR
2. About 5000 firms in the domestic organized sector, nearly 10500 importers
3. Products are classified based on material used, and consumer segment
4. Household furniture designs are region-specific. Increasing trend of imported furniture in affluent
households
5. Imports worth about 750 Crs INR, growing at 60% CAGR
6. The branded furniture market is valued at US $ 3.3 billion in 2012 and expected to reach US$7.4
billion in 2015.
Large scale furniture producing became a major manufacturing strategy with commercial ply or ready-
to-assemble designed furniture. This innovation gave the way for firms to
1. Design, manufacture and ship products on a mass scale,
2. Supply products for the low- to medium-price markets globally.
Disposable income of consumers in recent past has continuously increased specifically in Pune and
areas around Pune due to fast industrialization and better employment opportunities. Consumers have now
started dictating terms after gaining upper-hand due to stiff competition. It is observed that margins of
consumer durables products are shrinking globally, inducing need for high volume and manufacturers are
experiencing pressure for securing more durable ,more extensive and mare intensive consumer base.
The Government of India’s nod to foreign direct investment in Feb 2014 single brand retail format, has
opened the doors for Swedish furniture retailer giant IKEA to enter India. Online retailers off late have
become increasingly active in this household furniture segment. All these factors may have contributed to
change in behavior of potential consumers of furniture industry .The study intends to explore the extent of
An Analytical Study on Behavioral Changes of Consumers of Retail Outlets for Household Furniture in Pune Region
http://www.iaeme.com/IJM/index.asp 315 editor@iaeme.com
change in behavior of the consumer. The information will prove vital for the primarily unorganized
furniture sector to plan future strategies to survive and grow in the market.
2. RESEARCH METHODOLOGY
2.1. Significance of the Research
The research is useful for creating awareness and improving effectiveness of marketing strategies and
understanding the strength and weaknesses of furniture retailing viz-a-viz marketing strategies. The
research is useful for carrying the benefits and observations of buyer behavior study for effective and
efficient work in furniture retail.
2.2. Objective of the Study
The entire objective of the study is to find change in behavior of consumers for the benefit of the
marketing organizations, intermediaries & end customers and ultimately the national economy. Literature
review of various categories of documents as review of Ph. D. Thesis, Newspaper Articles, Books,
Research papers and media reports on furniture sector.
2.3. Period of the Study
Researcher has selected and reviewed period from 2012 to 2015.
Data Collection: Data was collected by conducting structured interviews through structured
questionnaires from the experts in wooden household furniture industry at strategic levels. Out of 550
registered furniture outlets about 300 deal in readymade wooden household and have experience of at least
5 years furniture in Pune region. 76 furniture outlets were chosen as samples using systematic random
sampling. From the selected furniture outlets the primary data was collected by using questionnaires, and
scheduled interviews of sales persons and consumers.
Data Analysis: The data collected from primary sources has been analyzed by using statistical tools viz.
percentage analysis, deviations analysis etc. The hypothesis has been tested with the help of paired
student’s t-test.
4. DATA ANALYSIS
4.1. Study is based on following Hypothesis
# Ha : The end consumer buyer behavior for purchase of furniture has changed in there cent past
# H0 : The end consumer buyer behavior for purchase of furniture has not changed in the recent past
Nine statements which describe recent changes in consumer attitude towards purchase in certain
aspects were taken for study. They were tested on a Likert’s scale twice having a difference of a period of
5 years. Statements were as follows:-
• Consumers are informed about products through brochures /e –brochures
• Consumers have become brand conscious
• Frequency of purchase of an average consumer has increased
• Consumers are focusing on short term goals
• Consumers are prepared to travel more distance for purchase of furniture
• Consumers compromise on life of furniture
• Consumers give preference to the design of products
• Consumers are attracted to retail outlet by advertisements
• Consumers show interest in bank proposal schemes offered by retailers
Dr. Dhananjay Mandlik and Dr. Prashant Kotasthane
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Table 2 Paired sample test [SPSS Data Analysis Paired sample co-relations]
N Correlation Sig.
Pair 1 Information through brochures current v/s 5 years ago 76 .029 .801
Pair 2 Consumers have become brand conscious current v/s 5
years ago 76 -.012 .920
Pair 3 Increased frequency of purchase current v/s 5 years ago 76 .253 .028
Pair 4 Focus on short time goals current v/s 5 years ago 76 .143 .216
Pair 5 Readiness to travel for purchase current v/s 5 years ago 76 .118 .309
Pair 6 Compromise on life of furniture current v/s 5 years ago 76 .478 .000
Pair 7 Preference to design of furniture current v/s 5 years ago 76 .174 .133
Pair 8 Attraction by advertisements current v/s 5 years ago 76 .218 .058
Pair 9 Interest in bank proposal schemes current v/s 5 years ago 76 .542 .000
Table 3 [Paired sample test [SPSS Data Analysis Paired sample tests]
Paired Differences
Mean
Std.
Deviation Std. Error Mean
Pair 1 Information through brochures current v/s 5 years ago -.697
.849 .097
Pair 2 Consumers have become brand conscious current v/s 5 years
ago -.882
.894 .103
Pair 3 Increased frequency of purchase current v/s 5 years ago -
1.171
.900 .103
Pair 4 Focus on short time goals current v/s 5 years ago -.868
1.517 .174
Pair 5 Readiness to travel for purchase current v/s 5 years ago -.855
.962 .110
Pair 6 Compromise on life of furniture current v/s 5 years ago -.632
.877 .101
Pair 7 Preference to design of furniture current v/s 5 years ago -.934
.869 .100
Pair 8 Attraction by advertisements current v/s 5 years ago -.645
1.016 .117
Pair 9 Interest in bank proposal schemes current v/s 5 years ago -.697
.766 .088
An Analytical Study on Behavioral Changes of Consumers of Retail Outlets for Household Furniture in Pune Region
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Table 4 Paired sample test [SPSS Data Analysis Paired sample tests]
Paired Samples Test
Paired Differences
95% Confidence Interval of the
Difference
Lower Upper
Pair 1 Information through brochures current v/s 5 years ago -.891 -.503
Pair 2 Consumers have become brand conscious current v/s 5
years ago -1.086 -.677
Pair 3 Increased frequency of purchase current v/s 5 years ago -1.377 -.965
Pair 4 Focus on short time goals current v/s 5 years ago -1.215 -.522
Pair 5 Readiness to travel for purchase current v/s 5 years ago -1.075 -.635
Pair 6 Compromise on life of furniture current v/s 5 years ago -.832 -.431
Pair 7 Preference to design of furniture current v/s 5 years ago -1.133 -.736
Pair 8 Attraction by advertisements current v/s 5 years ago -.877 -.413
Pair 9 Interest in bank proposal schemes current v/s 5 years ago -.872 -.522
Table 5 Paired sample test [SPSS Data Analysis Paired sample tests]
Paired Samples Test t df Sig. (2-
tailed)
Pair 1 Information through brochures current v/s 5 years ago -7.162 75 .000
Pair 2 Consumers have become brand conscious current v/s 5 years ago -8.597 75 .000
Pair 3 Increased frequency of purchase current v/s 5 years ago -11.341 75 .000
Pair 4 Focus on short time goals current v/s 5 years ago -4.989 75 .000
Pair 5 Readiness to travel for purchase current v/s 5 years ago -7.751 75 .000
Pair 6 Compromise on life of furniture current v/s 5 years ago -6.278 75 .000
Pair 7 Preference to design of furniture current v/s 5 years ago -9.369 75 .000
Pair 8 Attraction by advertisements current v/s 5 years ago -5.533 75 .000
Pair 9 Interest in bank proposal schemes current v/s 5 years ago -7.934 75 .000