Influence of Reference Groups on Spending Patterns Among College Students

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  • Topic: Reference group, Consumption, Chi-square distribution
  • Pages : 11 (3282 words )
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  • Published : August 11, 2010
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PGDM-RMM (2009-11) Institute for Technology and Management Global Leadership Center Kharghar, Navi Mumbai

MARKET RESEARCH REPORT
Influence of reference groups on spending patterns among college students :

SUBMITTED TO:

SUBMITTEDBY

PROF. (Mrs.) SHELJA JOSE KURUVILLA
Group No. 7 Manoj Theng (21) Silky Rungta (23) Sreejit Nair (25) Shekhar Ghosh (38) Shubhankar Otta (39) Nikita Jain (42)

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TABLE OF CONTENTS CONTENTS 1 FRONT MATTER 1.1 COVER 1.2 ABSTRACTS 1.3 KEYWORDS 2. MAIN BODY 2.1 INTRODUCTION 2.2 LITERATURE REVIEW 2.3 OBJECTIVES 2.4 METHODOLOGY 2.4A THE SAMPLE 2.4B RESEARCH METHOD 2.5 ANALYSIS AND FINDING 2.6 LIMITATIONS AND FUTURE RESEARCH 2.7 CONCLUSION 3. BACK MATTER 3.1 Appendix 3.2 REFERENCE 3.3 BIBLIOGRAPHY 18 20 21 4 6 9 10 10 10 11 16 17 1 3 3 PAGE NO.

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Abstract
Consumer spending is an important factor that affects the economic growth and development in a country. Today’s college students are not only a powerful segment but also probably the most profitable. This paper is an attempt to gain an insight in to the decision- making process and the vital factors that influence college student’s behavior. College students are the generation that will take the responsibility to develop our country. Besides, they are also the consumers of today and tomorrow. It really has something to do to get to know what the college students want, how they get the information of the products, and their consumption concepts and habits. College students (age group 16-24) show a variation in buying pattern to match their surroundings. We are going to study the influence of reference groups on spending pattern of college students. We assume that this segment spend more because of reference group influence. Retailers and marketers are interested in the study of spending pattern of this segment to setup a marketing strategy.

KEYWORDS
Status Consumption, Gender, Age, Research Methodology, Chi square Test, Annova, Hypothesis.

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Introduction
In this new world, consuming class of India's population of about 50 million is in the age band of 25-45 yrs. Most of the youth are working now and their consumption pattern has completely changed. They don't think twice before spending on expensive global brands and are even comfortable buying on credit. Youth in today’s India a ‘silver spoon’ generation for marketers. Rising disposable incomes, especially, among the middle class, increasing consumer base in urban areas, credit availability, growing number of nuclear families, working women, easy accessibility and convenience and a potentially strong rural consumer market will fuel growth in the near future. Indeed an exciting time for retailers and marketers. (Deshmukh, 2010) The rising purchasing power coupled with an increasing propensity to consume has led to the emergence of a new class of consumers. Gone are the days when people felt guilty about spending. Not only are people today indulging in buying more, they are spending significantly on themselves. As per Ernst & Young analysis, in the last decade the number of upper middle class and high income households has grown by a staggering 270% from 30 million households to 81 million households. A key aspect driving the sector’s growth is favorable population demographics – 50% of the population is less than 25 years. The power of youth today is evident in its large numbers, tendency to consume and in its ability to influence larger household decisions. India’s population is also urbanising at a rapid pace with the urban Indian population projected to increase from 28% to 40% of the total population by 2020. A recent Ernst & Young study, YouSumerism, found that the propensity to consume for a developing country accelerates beyond $900 per capita GDP and India will reach that in 2008–2009. (Times, 2008) Be it mobile phones, iPods, latest fashion and sports accessories or the newest gizmos in the market — the `Yuppie' or Young Urban Professional who is lapping...
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