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Project Report On

CONSUMER BEHAVIOUR STUDY FOR THE


MARKETING OF AIR CONDITIONERS

In partial fulfilment of the requirements for the


degree of
Bachelors Of Business Administration
Panjab University
(2010-11)
Submitted To: Submitted By:
H.O.D. (I.T. Department) MOHAMMAD
D.A.V. College ARSHAD
Sector - 10 Roll No. : 6781
Chandigarh B.B.A: IIIrd Year
PUPIN : 17508000859
Acknowledgement

To acknowledge all the people who had helped for the fulfilment of
project is not possible for any researcher but in spite of all that it
becomes the foremost responsibility of the researcher and also the
part of research ethics to acknowledge those who had played a great
role for the completion of the project.

First of all, I would like to thank my teachers for their continues


support during this project. They were always there to listen and to
give advice. Without their help, the whole project have been difficult
to pursue. Their advice and suggestion kept me moving to finish this
project.

Last but not the least I would like to thank my family for their
constant support and encouragement to complete the project in the
stipulated time.

Project Report By MOHAMMAD Arshad


Contents
1. Introduction

2. Objective Of Study

3. Research Methodology

4. Samsung Electronics India Private Limited

5. Consumer Durable Models

6. Recent trends in the Consumer Durable Market

7. Samsung Air conditioners

8. Competition tracking

• LG Electronics ( The Competitor)

• Model and Star Rating Study

9. Data analysis and Interpretation

Project Report By MOHAMMAD Arshad


10.Findings

11.Limitations

12. Conclusion and Recommendations

13.Bibliography

14.Annexure

EXECUTIVE SUMMARY
The project is a consumer behaviour study for the marketing of Samsung air conditioners. An
analysis of Consumer Behaviour is the first and foremost requirement for the successful
formulation and implementation of Marketing Strategies. Marketing starts with the needs of
the consumer and ends with his satisfaction. Since everything revolves round the Customer,
the study of consumer behaviour becomes a necessity.

The first part of the report deals with understanding consumer behaviour and its importance.
It includes discussing as to how different is the Indian consumer from that of one in west. The
study explores various aspects of the urban Indian consumer and differences in consumers
within the country. The spending patterns of the SECs, their economic status, their social
status etc. is depicted through tables and figures. Consumer behaviour models further help
refine the study, bringing out the buyer behaviour process followed by the various factors that
influence a buyer buy a product suiting his needs.

Data is collected with from the universe and the results are interpreted.

The other part deals with competition tracking, Samsung viz a viz its biggest competitor and
other brands in terms of SKU’S on the shop floor with respect to a particular product.

The results are based on empirical studies and through analysis of the data collected. Areas
left out by the questionnaires are tried and covered through market visits.

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Some of the main findings have been that a consumer is influenced the most by
his family while taking a decision. Recommendations from them are the most trusted.
Relationship across categories is also studied. When it came to choosing the best AC,
Samsung and LG lead the race. Though LG is the market leader (by market reports) but
consumers gave equal preferences to both brands.

Concluding with where all Samsung as a brand could improve in order to gain the highest
share in the air conditioner market.

INTRODUCTION
Management is the youngest of sciences and the oldest of arts and consumer behaviour is a
very young discipline. Various scholars and academicians concentrated on it at a much later
stage. It was during the 1950s that the marketing concept developed and thus the need to
study the behaviour of consumers was recognised. Marketing starts with identifying the
various needs of its customers and ends with satisfying those very needs. When everything
revolves around the customer, the study of consumer behaviour becomes a necessity.

Consumer behaviour came to be rooted in the marketing strategy. When World War II ended,
marketers found that they could sell almost any good that they produced for the consumers
who had been done without, while the nation’s manufacturing facilities were dedicated to the
production of then needed war equipments. The marketing objectives implicit in the
production orientation are cheap and efficient production and intensive distribution.
Production Orientation is a feasible marketing strategy when consumers are more interested
in obtaining the product than they are in its specific features. When demand exceeds supply, a
production orientation strategy can work. Consumers will buy what is available rather than
wait for what they really want.

In the 1950’s when goods became readily available and competition intensified, some
marketers adopted product orientation while others followed the selling orientation strategy.
The assumption underlying the strategy is that consumers will buy the product that offers

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them the highest quality, the best performance and the most features. A
product-orientation strategy leads a company to strive constantly to improve the quality of its
product, with a result often referred to as “Marketing Myopia” (i.e. Focus on the ‘product’
rather than on the ‘consumer need’). A marketer in love with his product may improve it far
beyond its worth to the consumer, passing the cost of unneeded quality or special features on
to the public. In a highly competitive market some companies keep adding unnecessary
features in hope of attracting buyers.

Companies that switched to the selling-orientation concept changed their primary focus from
improving the product to selling the product. During this process, companies exerted
tremendous hard sell on consumers in order to move the goods they had unilaterally decided
to produce. The implicit assumption in the selling orientation is that consumers are unlikely
to buy a product unless they are actively and aggressively persuaded to do so. The problem
with this strategy is that it fails to take consumer satisfaction into account. If consumers are
induced to buy a product that they don’t want or need, their unhappiness is likely to be
communicated through negative word-of-mouth that may dissuade other potential consumers.
Furthermore, if the product does not fulfil a consumer need; it is unlikely that a repeat
purchase will be forth coming.

In the early 1950’s many marketers began to realize that they could sell more goods easily, if
they produced only those goods that they had predetermined that consumers would buy.
Instead of trying to persuade customers to buy what the firm had already produced, marketing
oriented firms endeavoured to produce only what they had first determined that consumers
would buy. Consumer needs and wants became the firm’s primary focus. This consumer
oriented marketing philosophy, introduced by general electrical in the mid 1950’s came to be
known as the marketing concept. The key assumption underlying the Marketing concept is
that, to be successful, a company must determine the needs and wants of specific target
markets and deliver the desired satisfactions, better than its competition.

The Marketing concept is based on the premise that a marketer should produce what he can
sell, instead trying to sell what he had made. While the Selling concept focused on the needs
of the Seller, the Marketing concept focuses on the needs of the Buyer.

The widespread adoption of the Marketing concept provided the impetus for the study of
consumer behaviour. To identify un-reached consumer needs, companies had to engage in
extensive marketing research. In doing so, they discovered that consumers are highly
complex individuals, subject to a variety of psychological and social needs quite different
from their survival needs.

They discovered that the needs and priorities of different consumer segments differed
dramatically. And they also discovered that in order to design new products and marketing

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strategies that would fulfil consumer needs, they had to study consumers and
their consumption behaviour in detail. Thus, the Marketing concept laid the groundwork for
the application of consumer behaviour principles to Marketing strategy.

Objective Of Study

• To study consumer
behaviour for Samsung Air
Conditioners
• To study marketing of
Samsung Air Conditioners
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Samsung Electronics Pvt. Ltd.
The Samsung Philosophy

At Samsung, we follow a simple business philosophy: to devote our talent and technology to
creating superior products and services that contribute to a better global society.

Every day, our people bring this philosophy to life. Our leaders search for the brightest talent
from around the world, and give them the resources they need to be the best at what they do.
The result is that all of our products—from memory chips that help businesses store vital
knowledge to mobile phones that connect people across continents— have the power to
enrich lives. And that’s what making a better global society is all about.

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THEIR BUSINESS PRINCIPLE

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2000-Present Pioneering the Digital Age

The digital age has brought revolutionary change – and opportunity – to global business, and
Samsung has responded with advanced techno-logies, competitive products, and constant
innovation.

At Samsung, we see every challenge as an opportunity and believe we are perfectly


positioned as one of the world's recognized leaders in the digital technology industry.
Their commitment to being the world's best has won us the No.1 global market share for 13
of our products, including semiconductors, TFT-LCDs, monitors and CDMA mobile phones.
Looking forward, we're making historic advances in research and development of our overall
semiconductor line, including flash memory and non-memory, custom semiconductors,
DRAM and SRAM, as well as producing best-in-class LCDs, mobile phones, digital
appliances, and more.

Samsung India Electronics Private Ltd.


Samsung India is the hub for Samsung's South West Asia Regional operations. The South
West Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, looks after
the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India.
Samsung India which commenced its operations in India in December 1995 enjoys a sales
turnover of over US$ 1Bn in just a decade of operations in the country.

Headquartered in New Delhi, Samsung India has widespread network of sales offices all over
the country . The Samsung manufacturing complex housing manufacturing facilities for
Colour Televisions, Mobile phones, Refrigerators and Washing Machines is located at Noida,
near Delhi. Samsung 'Made in India' products like Colour Televisions, Mobile phones and
Refrigerators are being exported to Middle East, CIS and SAARC countries from its Noida
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manufacturing complex. In November 2007, Samsung commenced the
manufacture of Colour televisions and LCD televisions at its state–of-the-art manufacturing
facility at Sriperumbudur, Tamil Nadu. The Company is also manufacturing fully automatic
front loading washing machines at its Sriperumbudur facility.

Samsung’s state of the art, highly automated manufacturing facilities are located at the
Company’s sprawling Complex at Noida and its recently inaugurated Sriperumbudur facility,
near Chennai. Samsung India’s Noida CTV Plant enjoys the Number 1 position amongst all
Samsung subsidiaries in terms of its Colour television productivity and has been ranked as
the subsidiary with the ‘Best Quality System’.

The highly advanced Chennai Facility that has been inaugurated in November 2007 will help
the Company respond better and faster to the growing demand for its products in the
Southern part of the country. The Samsung manufacturing facility at Sriperumbudur is the
Company's second manufacturing complex in the country.

Samsung India is working with and contributing to the development of the domestic
component industry in the country. The Company is working with its partners to improve
their product quality and processes. Thus, Samsung vendors are sent to different Samsung

subsidiaries to meet the Samsung overseas vendors in order to benchmark their own
processes. Samsung is also training its vendors on eco-partnership so that the components
manufactured by them are ‘eco friendly’ as per ROHS norms.

Samsung products manufactured in India currently enjoy an average localisation level of over
50%.

The manufacturing capacities of Samsung products manufactured at the Noida Facility


are as follows:

PRODUCT DETAILS
CTV Flat TVs & LCD TVs
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PRODUCT DETAILS
Colour Monitor CRT & TFT LCD Monitor
Refrigerator Frost-free and Conventional Refrigerators
Washing Machine Fully Automatic and Semi Automatic
Mobile phones GSM Handsets

Component Business

Samsung's Component Business leads the world's memory and LCD markets in product and
technology development. Their component business is divided into semiconductors and LCD.
The Semiconductor business consists of the Memory Division which enjoys a global number
1 position, the System LSI Division, which has experienced huge growth in the market and
the Storage Systems Division. In a fast-paced electronic components industry, marked by
intense competition and market volatility, clearly differentiated products from each of these
divisions have helped spur continued growth.

From being a virtually unknown entity in the Year 1995, brand Samsung today enjoys an
awareness level of over 65% and a positive opinion of over 80% in the country today (source:
BAS 2007). The introduction of World First, Wow, leading technology products in the Indian

market coupled with the Company’s efforts to customise products for the Indian consumers,
have contributed to the success of the brand in the Indian market.

Technology Leadership, Product design and innovative marketing have all contributed to
making Samsung a household name in the Indian market. The Company has carried out over
170 Dream Home Road Shows - a four day exhibition of its new products and technologies -
in the metros and smaller markets to create consumer awareness.

To display Samsung products in a more lifestyle ambience and to communicate the product
benefits in a more interactive manner, Samsung India has set up a widespread network of
Samsung Digital Plazas all over the country.

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The Samsung Brand shop network complements the over 8500 retail points for
Samsung products located across the length and breadth of the country. Samsung plans to
continue enhancing its penetration levels in the country to reach out to more and more Indian
consumers.

Overview of Consumer Durable


Models
Consumer behaviour is a multistage process, and actual buying comes at a much later stage.
It becomes crucial for the marketer to understand the initial stage so that they are able to
predict the buying stage. This makes the study of consumer behaviour models almost
mandatory. Consumer behaviour models serve two basic functions:

A. They explain the factors that affect purchase of a particular type of goods and
services.

B. They allow future predictions to be made and are able to access the likely outcome of
various meeting strategies.

In order to perform the above mentioned functions, a consumer behaviour model must be
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Relevant –must be as much as possible near to real market situation

Comprehensive –it should not be vague and poorly constructed

Valid – thee outcome predicted by the model should be testable and predictable

Input Process and Output Model


This is a simple model of consumer behaviour, in which the input for the model is the firm’s
marketing effort (the product, the price, the place and promotion) and the social environment.
The social environment consists of the family, reference groups, culture, social class etc.
which influence the decision making process. Both the factors together constitute the input in
the minds of the consumer.

Need recognition

When one is aware of a want, tension is created and one chooses a product that satisfies his
needs. There is also a possibility that a person may be aware of a product before its need is
recognised. This is indicated by the arrow going both ways from the need to the product and
vice-versa.

Product awareness

It can be had from advertising or exposure to different types of media or by the social circle.
The awareness and the need lead to the building of interest. In some cases the interest may
also break down and the decision process may stop or be postponed for the time being.

Evaluation

It may consist of getting more information about the product and comparing and contrasting
it with other products. This can be done theoretically or by taking a trial. Once the evaluation

is completed, the consumer’s interest may either build up and have intentions to buy, or he
may lose interest and the decision process may again be stopped or postponed.

Intention

Once there is an intention to purchase the product, the consumer goes ahead and acts or
purchases the product. Once the product is purchased, the product is used to fulfil the need
and more the product is used, more the consumer becomes aware of the positive and negative
points of the product.

Post Purchase Behaviour


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If after the purchase and use of the product, the customer is satisfied, he is
happy and goes in for a repeat purchase or recommends the same to his friends and
acquaintances. If however, the customer is dissatisfied, he discontinues further purchase of
the product and builds a negative attitude towards it, which, may be harmful for the company.

The post purchase behaviour is very important for marketers and the company too because it
leads to proper feedback for improvement and maintaining the quality and features desired by
the customer. If the customer is very happy with the purchase, he forms a good impression
about the product and the company.

HOWARD SHETH MODEL

A simplified version of the basic Howard-Sheth Model consists of four major sets of
variables:

1. Input

The input variable consists of three distinct types of stimuli (information sources) in
the consumer’s environment. Physical brand characteristics and verbal product
characteristics are furnished by the marketer in the form of product or brand
information. The third type of stimulus is provided by the consumer’s social
environment. All three types of stimuli provide inputs concerning the product class or
specific brands to the prospective consumer.

2. Perceptual and learning constructs

The central component of the Howard Sheth model consists of psychological


variables that are assumed to operate when the consumer is contemplating a decision.
These constructs are treated as abstractions, and are not operationally defined or
directly measured. Some of the variables are perceptual in nature and are concerned

with how the consumer receives and processes information acquired from the input
stimuli and other parts of the model.

3. Output

The model indicates a series of outputs that correspond in name of some of the
perceptual and learning construct variables (attention, brand comprehension,
attitudes, intention) in addition to the actual purchase.

4. Exogenous variables
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External variables are not directly a part of the decision making process
and are not shown in the model presented here. Relevant external variables include
the importance of the purchase, consumer personality traits, time pressure and
financial status.

Nicosia Model
It is an elaborate computer flow chart of the consumer decision-making process. It is
divided into four major fields:

1. The consumer attitude based on message exposure

2. The consumer product search and evaluation

3. The act of purchase

4. Feedback in the form of consumer experience to both the firm and the consumer.

 Consumer’s attitude based on the firm’s message

The firm’s marketing environment and communication efforts that affect the consumer
attitude such as product attributes, the competitive environment characteristics of relevant
mass media, the choice of copy appeal and characteristics of the target market. It specifies
various consumer characteristics (personal experience) that mediate reception of the firm’s
promotional messages. The output is an attitude the product based on consumer’s
interpretation of the message.

 Search and evaluation

It deals with the search for relevant information and evaluation of the firm’s brand in
comparison with alternative brands. The output of this stage is motivation to purchase the
firm’s brand.

 The act of purchase

The consumer’s motivation towards the firm’s brand results in purchase of the brand
from a specific retailer.

 Feedback

Two important types of feedback form the purchase experience, one to the firm in the
form of sales data and the other to the consumer in the form of experience
(satisfaction and dissatisfaction). The consumer experience with the product affects
the individual’s attitude and predisposition concerning future message from the firm.
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Black Box Model

The black box model shows the interaction of stimuli, consumer characteristics, decision
process and consumer responses. It can be distinguished between interpersonal stimuli
(between people) or intrapersonal stimuli (within people). The black box model is related to
the black box theory of behaviourism, where the focus is not set on the processes inside a
consumer, but the relation between the stimuli and the response of the consumer. The
marketing stimuli are planned and processed by the companies, whereas the environmental
stimuli are given by social factors, based on the economical, political and cultural
circumstances of a society. The buyer’s black box contains the buyer characteristics and the
decision process, which determines the buyer’s response.

The black box model considers the buyers response as a result of a conscious, rational
decision process, in which it is assumed that the buyer has recognized the problem. However,
in reality many decisions are not made in awareness of a determined problem by the
consumer.

Engel, Kollat, Blackwell Model (EKB Model)


The model shows that people are continually exposed to stimuli. A stimulus represents
anything, generally inherent in the environment that has the potential for triggering some kind
of behaviour. In general, marketing decision making can be viewed (at least in part) as
putting together and controlling a set of stimuli intended to influence customer buying
behaviour.

Any marketing offer represents only a fraction of the total stimuli to which buyers are
exposed. Many other stimuli, some controlled by competitors, some controlled by non-
competitive organizations, some originating from other people, are also competing for
consumers'attention.

Stimuli provide information that consumers must process. This task includes the stages of
exposure, attention, comprehension, and retention. Exposure refers to a stimulus reaching
one of the senses, while attention indicates on which of these stimuli the consumer will
focus. Comprehension is the process by which consumers attach meaning to stimuli.
Because a consumer is attentive toward marketing offer does not mean that the offer will be
comprehended as intended. Retention refers to the memory process that determines which of
the many stimuli that have gone through the initial three stages of consumer information
processing will be remembered. Not all stimuli that have been comprehended will be retained
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in memory. In fact, the percentage of stimuli remaining in memory is generally
quite small, particularly after a period of weeks has passed since exposure.

An implication of the processing of stimuli is that consumers actively interact with some
businesses while avoiding interaction with others. They are certainly not passively receiving
information and being influenced accordingly. An offer that is filtered out anywhere during
this process by a significant number of customers will not achieve performance goals.

Since the consumer is an active participant in interaction between buyers and sellers, the
characteristics that form an individual's psychological makeup have an important impact on
the success of an offer. A set of stimuli comprising the marketing program must interact with
one or more key individual characteristics before a consumer determines what response will
bemade.

Factors Influencing Buyer Behaviour


Factors influencing consumer behaviour

A consumer is affected by changes in his personality, attitudes, etc. and also by the external
environment. One should be able to explain the following:

• Various factors influencing consumer behaviour.

• The joint effects of internal and external determinants.


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• The elements of the decision-making process.

The factors that influence consumer behaviour can be classified into internal factors
(individual determinants) and external environmental factors. External factors do not affect
the decision process directly, but percolate or filter through the individual determinants, to
influence the decision process. The individual determinants that affect consumer behaviour
are:

• Motivation and Involvement

• Personality and Self Concept

• Learning and Memory

• Information Processing

The external influences or factors are:

• Cultural influences

• Sub-cultural influences

• Social class influences

• Family influences

• Personal influences

• Other influences

Individual determinants
Motivation and involvement

In a society, different consumers exhibit different consumer behaviour because they are
unique and have unique sets of needs. Motivation is that internal force that activates some
needs and provides direction of behaviour towards fulfilment needs as shown in fig

While talking of motivation, we cannot afford to forget the Maslow’s hierarchy of needs,
which tells us about the primary and secondary needs.

First the biological needs of hunger, thirst and shelter are satisfied then the safety needs and
then the physiological desires of being accepted in society seeking status, esteem, etc. are

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satisfied. People adopt different methods to fulfill their needs. The need of
transport can be met by car, rail, bus or aeroplane. People choose different modes of transport
because of their level of involvement in different activities.

Involvement refers to the personal relevance of importance of a product or a service that a


consumer perceives in a given situation. Depending on the value and personal interest, a
consumer can have a low or high involvement. For a professional tennis player, the choice of
a tennis racquet is made with great care. He sees the weight, size, grip and tension of the
string, etc. the racquet is his most important professional tool.

Attitudes

These are our learned predispositions towards people, objects and events. Attitudes are
responsible for our responses and are not inborn but are learnt from people around us. Our
attitudes influence our purchase decision person having a carefree attitude will buy an object
without much involvement. People who want to play safe and avoid risk taking will go for a
safe investment. People who want convenience and are short of domestic help, will have
positive attitudes towards canned and frozen foods.

Personality and self concept

It is the sum total of our mental, physical and moral qualities and characteristics that are
present in us and that make us what we are. Consumers try to buy the products that match
their personality. People wanting to look manly will buy products with a macho appeal,
which would enhance their image and personality. People, who give emphasis on comfort
care, will purchase comfort products and so on. If one wants to emulate a film star, his choice
will be different from others.

Learning and Memory

Everyday we are exposed to a wide range of information, but we retain only a small portion
of it. We tend to remember the information that we are interested in and that is important to
us. In a family, different members of the family are interested in different types of
information which they individually retain. Fathers retain information regarding his interest
in cars, motorcycles and other objects. Children are interested in objects of their interest like
amusement parks, joy rides and dolls.

Our motives, attitudes and personality filter the information, keeping only the relevant
information in our minds and keeping the others out. This is known as selective retention. We
retain in our memory only selective information that is on interest to us.

Information Processing

All consumers analyse and process information that they receive. These are the activities that
a consumer engages in while gathering, assimilating and evaluating information. Consumers
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assimilate and evaluate selective information and this reflects on their motives,
attitude and personality and self concept. Some information is evaluated in a different manner
by different individuals. The most common example is a glass half filled with a liquid. It can
be interpreted as “half empty” or “half full”. This is a pessimistic view and the other is an
optimistic view of processing the information.

EXTERNAL ENVIRONMENT FACTORS AFFECTING CONSUMER BEHAVIOUR

1. Cultural Influences

It is defined as a complex sum total of knowledge, belief, tradition, customs,


art, moral or any other habit acquired by people as members of a society. Our consumer
behaviour is influenced by our culture or background. Different emphasis is given by
different on buying, use and disposing of products. People in North India have a certain
style of consumption of food, clothing, savings; etc.this differs from those in the southern
part of the country. Different cultures and habits are prominent in different parts of the
world. The Japanese have a different culture when compared to that of the USA, England
or the Arabian countries. Therefore, culture plays an important role in consumer
behaviour.

2. Sub-Cultural Influences

Within a culture, there are groups or segments of people with distinct customs,
traditions and behaviour. In the Indian culture itself, we have many sub-cultures i.e.,
the North, East, West and south culture. Products are designed to suit a target group of
customers which have similar cultural backgrounds and are homogeneous in many
respects.

3. Social Group Influences

A group is a collection of individuals who share some common relationship,


attitudes and have the same interests. Such groups are prevelant in societies. These
groups could be primary where interaction takes place frequently and consists of
family groups. They have a lot of interaction amongst themselves and are close knit.
Secondary groups on the other hand are a collection of individuals where relationship
is more formal and less personal in nature. These could be political groups, work
groups or study groups. The behaviour of a group is influenced by the members

of the group. An individual can be a member of various groups and can have varied
influences by different members of groups in his consumption behaviour.

4. Family Influences

As has already been said, a family is the most important of all primary groups
and also the strongest source of influence on consumer behaviour. The family
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tradition and customs are learnt by children, and they imbibe many
behavioural patterns from their family members, both consciously and unconsciously.
These behaviour patterns become a part of a child’s life. In a joint family, many
decisions are jointly made which also leave an impression on the members of the
family.

5. Personal Influences

Each individual processes the information received in different ways and


evaluates the products in his own personal way. This is irrespective of the influences
of the family, social class, cultural heritage; etc.personal influences go a long way in
the purchase of a product.

6. Other Influences

Consumers are also influenced by national and regional events, which could be
like the Asiad, the Olympics and the cricket matches, world cup, a war or a calamity.
Such events leave a temporary or a permanent impression on the minds of the
consumer and affect his behaviour. Situation variables such as product display, price
reduction, free gifts and attractive offers also influence consumer behaviour.

Recent Trends in the Consumer Durable


Market
Consumer Durables

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The 2009 Cygnus Report on the Indian consumer durables industry says the
sector is expected to reach a turnaround of around us$ 40 billion by this year by growing at a
CAGR of 23% from 2007 onwards. Several Indian and MNC players are looking to
strengthen their presence in India to leverage this opportunity. Success in the long-term will
require firms to develop a wide and robust distribution network differentiate their products in
areas of relevance to the consumer and innovate in the areas of promotion, product financing,
etc.The product and approach to the market needs to be customised to suit the unique
demands of the Indian market.

According to a study by the McKinsey global institute (MIG), Indian incomes are likely to
grow three-fold over the next two decades and India will become the world’s fifth largest
consumer market by 2025, moving up from its position in 2007 as the 12th largest consumer
market. Further, according to data released by Visa, (the world’s largest retail electronic
payments network), by 2010 annual commercial spending in India is estimated at US$ 2.6
trillion. By this year, many international majors plan to beef up significant investment in
India.

KEY TRENDS
Rising Income and Availability of Financing

In this competitive era, the income levels of individuals are rising and disposable income has
increased to a great extent. Consumer financing has become easier with all the banks coming
forward to lend to the consumer at affordable rates of interest.

Improved Affordability of Products

Advanced technology and increasing competition are narrowing the price gap and the
expensive appliances are becoming cheaper. Products that were once beyond the reach of the
middle class Indian are now affordable to many. Growth in demand for products, once
considered luxuries (air-conditioners, washing machines and high-end CTV’s) is a reflection
of this phenomenon.

High-End Customised Products Gain Ground

The Indian consumer durables products market is going for high-end customisation of
products with aesthetic appeal. Manufacturers are steadily going for innovations for
developing advanced and user-friendly products for satisfying the needs of varied class of
customers. The trend is worldwide and is mirrored in India too.

Competition to Drive Sales

Major consumer durable companies are coming up with new product lines. International
companies such as Haier, as part of its expansion strategy in India, plans to launch
televisions, air-conditioners, refrigerators and washing machines. This would provide
consumers with ample choices and drive up sales in the sector.

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Organised Retail gaining Momentum

Urban and rural markets are growing at the annual rates of 7%, 10% and 25%, respectively
with organised retail expected to garner 10% share by this year, from a mere 3% share
previously. While there are established distribution networks in both rural and urban India,
the presence of well-known brands in the organised sector is increasing. The trend will also
boost sales of private goods and will have a positive impact on the consumer durables
industry, as organised retailing would not only streamline the supply chain, but also facilitate
increased demand, especially for high-end and branded products.

Entry of Large Retail Players

Low penetration in the consumer durables industry has allowed the entry of large retailers to
the Indian market. This is the resulting in rise in competition due to large players such as
Croma, E zone and reliance digital. Part of the growth momentum in high-end segments of
consumer electronics should be attributed to the competitive evolution of organised retail,
stimulating the demand through exposure to high-end shopping experiences.

Increasing Depreciation of the Rupee

The trend of rupee appreciation vis-a-vis the US dollar will continue to prevail in the long
run, thus it is expected to tighten raw material costs for Indian manufacturers and befit those
addressing the domestic market.

Distribution and Retail

With the Rural and Semi-Urban Markets creating opportunity and an almost sedentary urban
market, the need to have a strong distribution network is crucial for the companies to remain
price-sensitive. Major Indian companies are going for new ventures for retailing of consumer
durables and IT products.

The retailers are coming out with new retail formats such as exclusive brand outlets and the
international style multi-brand showrooms.

Taxation Reforms to Drive Sales

The Indian government has set in motion an array of taxation reform initiatives across all
sectors. The government plans to streamline the wide array of indirect taxes across central
and state levels and would largely benefit the manufacturing sector and enhance
manufacturing activity. The government plans to introduce the value added tax (VAT) system
across all states by this year. This move would help to drive up sales of consumer durables
across the country. Presently, the taxes are quite high and are mostly passed onto customers,
thus having a negative effect on the sales of the sector.

Investment options

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Project Report By MOHAMMAD Arshad


Some of the attractive areas for investment in consumer durables sector are:

High-End Colour TVs

Plasma display panels and liquid crystal display TVs have registered an average growth of
more than 250% in 2006-07 and the trend is expected to continue. The rise in income level,
and easy availability of credit facilities would further fuel the growth of high-end colour TVs
in the country.

Split Air-conditioners (ACs)

Split ACs have been growing at a much faster rate than Window ACs. The growth was 97%
in 2006-07 as compared to a 32% growth of window ACs .The total AC market in India is
expected to grow to 30-35% over the coming few years.

Mobile Phones

Production of mobile phones is estimated to grow at CAGR of 28.3% from 31mn units in
2006 to 107mn units in 2011.Low mobile penetration and favourable government policies are
driving mobile phone Original Equipment Manufacturers (OEMs) to set up manufacturing
facilities in India. Growing demand for low cost mobile phones and the need for Execution
Management System (EMS) vendors to reduce their revenue exposure to Nokia, Motorola
and Sony Ericsson, are the key factors expected to increase manufacture in India. New cell
phone connections and handsets have given a huge boost to consumer durables sector.

KEY FACTORS
The following factors are critical for manufacturers in the sector:

Product Technology

While the market is continuously expanding, there are several concerns that will have to be
addressed while moving the focus to tier iii towns and rural areas. Total cost of ownership
would be a key factor driving purchases in these regions.

Distribution and Service Network

As the market spreads out from saturated urban regions to low penetrated rural areas and tier
ii/iii towns, distribution network and brand recognition will continue to play even more
significant roles in determining market share and profitability. The emergence of multi-brand
showrooms would help to drive sales of consumer durables as they offer a wide range of
products under one roof.

Innovation in Advertising and Promotion

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Increasing competition and technology adoption has led to a situation where the
basic function of most of the consumer durable goods has been largely commoditised. This
has created a situation where identifying a unique differentiating factor and promoting it
effectively has become imperative. The advertising and promotion spends in industry have
been growing steadily.

Attractive Locations

Since raw materials account for more than 75% of the manufacturing cost of consumer
durables and with a significant part of it being imported, Maharashtra, Gujarat and Tamil
Nadu’s proximity to ports, high demand for durable goods and factor consolidation in the
manufacturing sector make them amongst the preferred destinations for investment in
manufacturing.

Long term-growth

The 2009 Euromonitor international report on consumer electronics in India says, sales
growth in the consumer electronics sector over 2008-2013 is not expected to be as strong as
that experienced during the review period. This is attributed in part, to the economic
slowdown that is expected to continue until 2010.several products that are reaching their
saturation points in India’s Urban markets will need to make an impression on the country’s
rural markets, and that may be more difficult than some anticipate.

High-growth sub-sectors over the forecast period (2008-2013) are likely to be receivers of
DTH broadcasting, Digital TVs, portable DVD players. Sales of mobile phones are expected
to continue to grow based on increased consumer demand in rural areas.

Sub-sectors likely to be adversely affected over the forecast period (2008-2013) include those
with “big-ticket” products that many consumers might consider wholly unnecessary.
Replacement purchases for many consumer electronics products are likely to be postponed.
For example, a family considering the purchase of a new larger LCD TV to replace their
existing analogue TV may decide to wait before purchasing, or a young household may
decide to make do with their current computer rather than upgrade. On addition, car sales are
expected to decline, and this will have a negative impact on the sales of in-car electronic
products.

Many companies in high-growth sub-sectors like digital TVs and receivers believe that,
instead of seeing their sales double year-on-year as had been projected earlier, sales growth
may dip to 40%-50%.

A young population

In 2008, there were an estimated 366 million people in India below the age of 14,
representing 32% of the total population of the country. The mean age was 27 years old,
branding the Indian population as “young” in contrast to the typical ageing populations of
developed nations.
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Project Report By MOHAMMAD Arshad


India’s young population has resulted in the rapid adoption of new technologies
as product prices have fallen to more affordable levels. Young consumers have rapidly
moved away from old analogue technology and have embraced digital technology.

During the review period (2008-2013), personal entertainment systems were more popular
than in-home systems. Volume sales of portable consumer electronics grew at a CAGR of
more than 43% during the review period while value sales grew at a CAGR of more than
33%.

Low household penetration rates

Among consumer electronics products, televisions and transistors have the highest household
penetration rates in India. Overall however, household penetration rates for consumer
electronic products continue to be abysmally low in the country. Despite all the growth
witnessed during the review period, by 2008 only an estimated 69% Indian households
owned a small audio product, only 59% owned a TV and just 40% household owned a hi-fi
system. Even with the phenomenal growth of the mobile phone subscriber base during the
review period, in 2008 mobile phones were owned by only 26.5% of Indian households.

Since old analogue products like VCRs and analogue camcorders never reached significant
household penetration levels in India in the first place, not many consumers owned video
home system (VHS) cassettes and home videos. This meant that there was almost no
replacement market for these old analogue products and, once prices of digital products fell,
most new consumers opted to buy the digital products straight away.

The only exception to this trend has been analogue cameras. With a household penetration
rate of 6% in 2008, companies like Kodak are seeking to keep the supply of these products
going so that related products like film and processing services have a longer life. Increased
demand and consumption is expected to raise household penetration and ownership levels of
digital consumer electronics products. There is much room for future growth given the
current low levels.

Low household penetration rates, together with increasing disposable incomes, should result
in significant sales growth for most consumer electronics sectors in India.Let alone the large
number of urban replacement buyers, new, first-time rural consumers provide a large
potential market over the forecast period.

By 2013, it’s projected that 65% of Indian households will on mobile phones, an estimate that
translates into more than 300 million phones.dvd players are also expected to see a huge rise
in demand over the forecast period. Also in 2013, the household penetration rate of DVD
players is expected to go up by 54% overtaking hi-fi systems, the priority in-home
entertainment purchase of Indian households. To entice more rural consumers, manufacturers
and retailers are expected to widen their portfolios of low-price product offerings.

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Project Report By MOHAMMAD Arshad


SAMSUNG AIR CONDITIONERS

RANGE 2010

A SAMSUNG CUSTOMER GETS TO EXPERIENCE THE FOLLOWING FEATURES


IN THEIR RANGE FOR AIR CONDITIONERS

Stabiliser Free

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Project Report By MOHAMMAD Arshad


The World’s First S-UTR™ compressor in Samsung air conditioners withstands voltage
fluctuations as low as 135V to as high as 290V and reduces the need for an additional
stabiliser during power fluctuations.

Biosleep

Samsung’s Biosleep ensures your environment stays at the most comfortable temperature
with automatic humidity adjustment to guarantee a good night’s sleep.

S-Touch of Colour

Samsung has created a new design of an air conditioner for your ultra modern lifestyle.
Unlike the usual flat white look, Samsung has specially designed the front panel of its air
conditioner with the Touch of Colour look. These sophisticated and colourful looks add a
touch of class to your home interiors.
Available in 6 elegant colours:
Cherry Wine; Copper , Black, Chocolate Brown, Pearl White.

Carbon Deodoriser

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Project Report By MOHAMMAD Arshad


Activated carbon is incorporated in the filter. This smart deodorising filter with its splendid
talent absorbs cigarette smoke, pet odours and all other unpleasant odours.

Comfort Care
Too much air conditioning is not only hazardous to your health, but also harmful for the
environment as it wastes energy. Samsung’s S-Series Air Conditioner uses the least amount
of energy to maintain comfort levels so you and the environment stay healthy. Comfort care
not only controls temperature but also maintains humidity for optimised comfort.

S-UTR

Samsung developed the S-UTR™ (Ultra Tropical Rotary) compressor featuring incredible
power that can quickly cool the air even in severe hot climates, and withstand voltage
fluctuations as low as 135V to as high as 290V and reduces the need for an additional
stabiliser during power fluctuations.
S-UTR™ with its high torque motor has the reliability to maintain superb performance even
in severe temperatures of up to 54°C for a long time. The latest S-UTR™ succeeded in

saving energy consumption and increased energy efficiency by 10%. Now, switch on your air
conditioner and enjoy the refreshing cool air brought to you by the S-UTR.

54°C S-UTR

Samsung developed the S-UTR™ (Ultra Tropical Rotary) compressor featuring incredible
power that can quickly cool the air even in severe hot climates, and withstand voltage
fluctuations as low as 135V to as high as 290V and reduces the need for an additional
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Project Report By MOHAMMAD Arshad


stabiliser during power fluctuations.
S-UTR™ with its high torque motor has the reliability to maintain superb performance even
in severe temperatures of up to 54°C for a long time. The latest S-UTR™ succeeded in
saving energy consumption and increased energy efficiency by 10%. Now, switch on your air
conditioner and enjoy the refreshing cool air brought to you by the S-UTR.

Smart Saver

Save up to 31% on Your Electricity Bill. Smart Saver operates the air conditioner
automatically in the least amount of time necessary to cool the room, which saves electricity.
With the Smart Saver, you can stop worrying about your electricity bill and start enjoying
cool comfort.

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Project Report By MOHAMMAD Arshad


Competition Tracking
LG ELECTRONICS
Making waves in the Indian market since 1997, LG air conditioners are, till date, a huge
competition for Samsung. Retaining the number 1 position for the last 8 years they have
proved time and again of their worthiness in creating new technology and their power to
continuously innovate.

The product line manufactured by LG comprises the following:

Business Products
areas
Consumer LCD TV , Plasma Display , Display
Electronics Panel, Color Television, Home
Theatre System, Music system,
DVD Recorder/Player, MP3 & MP4
Player
Home Room Air Conditioner, Commercial
Appliances Air Conditioner , Refrigerator,
Washing Machine, Dishwasher,
Microwave, Vacuum Cleaner
Computer Laptop, Personal Computer, LCD
Products monitor, CRT monitor, Optical
Storage Devices
Mobile Premium trend setter phone ,
Phone Camera Phone , Music Phone ,
Color Screen GSM Handset

In order to fulfil the main purpose, it is important to have a look at the strategies planned by
them for the season. But first, a look (in brief) at what they have in store for their customers
for summer 2010.

A buyer would get to experience the following features from a new LG AIR CONDITIONER
(SPLIT AND WINDOW AC).

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Project Report By MOHAMMAD Arshad


DREAM FEATURES

• Aero comfort system

• Star rated ACs

• Energy saver

COMFORT FEATURES

HEALTH CARE FEATURES

DURABILITY FEATURES

COOLING FEATURES

Strategies for Summer 2010


Following is how LG Electronics plans to serve their air conditioner customer base this
summer:

There are 65 models planned for launch this season and through the sale of which the
company expects a revenue of Rs. 2500 crore.Presently the company has a 32% share in the
total ac market serving almost 30 lakh customers.

In order to be effective, the company has planned to strengthen their after sales and
installation service. The famous 2-1-1 concept has been proved successful time and again and
the company intends to invest more in the service. They have almost 10,000 engineers trained
for the same. Apart from this the engineers are also trained for behaviour and attitude
training.

The theme for their campaign is “youthful and premium”. They intend to showcase air
conditioners with something that symbolises comfort and will market it saying “Comfort hai
toh sab kuch hai”.
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Project Report By MOHAMMAD Arshad


Their business strategy aims at a 50% growth in air conditioner market this
Brands Samsung LG Voltas

Total market size (100) Spilt Window Spilt Window Spilt Window
All India Market Size 21.2 22.9 28.5 29.3 12 20.4
Delhi 24.4 19.6 32.8 34.6 12.6 18.6
Total No 0.75-1 Ton 14 3 25 5 13 5
Of 1.5 Ton 14 6 30 10 9 4
Models 2 Ton 5 1 11 2 8 2
Total No Of Capacities 4 4 4 4 4 4
year. The company witnessed a turnover of 1600 Crores last year and expects to cross the
2500 Crores mark by 2012.

MODEL STUDY

The table highlights the total number of air conditioner models, by the top three brands for air
conditioners, presently available in the market.

It clearly shows LG electronics as the leading brand for air conditioners, be it the overall
share or for it’s share in the Delhi market. It has the highest number of models that are
produced for the season, both Split and Window ACs ,across categories.

Number two is Samsung with a share of 21.2% share in the all India market and 24.4% share
in the Delhi market( Split ac’s) and 22.9% all India and 19.6 in Delhi for window ac’s.

It is followed by Voltas which is number 3 in the ranking.

Star-Rated Air Conditioners

5 Star Models
Split ac Samsung LG
0.75-1 ton 3 7
1.5 ton 3 8
2 ton 0 0

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Project Report By MOHAMMAD Arshad


On comparing the country’s best brands for Air Conditioners, it is seen that LG Electronics
has more models with 5 star rating in the split ac category.

Research Design
TYPES OF RESEARCH DESIGN USED

In order to give the study a scientific framework two types of research design was used:

1. Exploratory Research Design.

2. Descriptive Research Design.

The Descriptive Research was done after diagnosing the present scenario with the help of
Exploratory Research. The Descriptive Research was done as a follow up for the relevant
information obtained from the exploratory research and to account for a more conclusive
study.

EXPLORATORY RESEARCH

Exploratory Research is used for qualitative analysis. It is a useful preliminary step that helps
to get an overview of the present prevailing scenario and also to diagnose the situation. The
data collection was done with the help of pilot studies. Laddering technique also used.

DESCRIPTIVE RESEARCH

The descriptive research was done as a follow up for the information obtained through the
exploratory research. It helped to provide a more rigorous and more conclusive study of the
problem areas discovered after the first step of exploratory research. The Data collection in
the Descriptive Research was done using survey methods.

SCALING TECHNIQUES

The quest for a descriptive research can never be completed without an appropriate
measurement and scaling technique. This step is very important because a suitable technique
will help in the proper analysis of the data collected from the fieldwork using statistical tools,
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Project Report By MOHAMMAD Arshad


which is essential for a conclusive quantitative research. The different primary
measurement scales were used in obtaining the information with the help of questionnaire.

a. Nominal Scale: e.g. sex of the respondents.

b. Ordinal Scale: e.g. rankings of the preferences.

c. Ratio Scale: e.g. age, income of the respondents

Two types of scaling techniques were used to get the suitable information while
administering the questionnaire. These are:

1. Comparative Scaling: Comparative Scales directly involve the direct


comparison of the stimulus objects2. In comparative scaling the technique used is
Rank Order Scaling. The information regarding the consumer buying decision
process was gathered using rank order scaling in the questions.

2. Non- Comparative Scaling: In this type of scaling, the Itemized Rating Scale
was used.

QUESTIONNAIRE DEVELOPMENT AND PRETESTING

To obtain the required information through exploratory research, no questionnaire was


administered for this purpose. But during the survey methods involved in the Descriptive
Research, a questionnaire was employed. The questionnaire was designed keeping in mind
the information requirements. The present study involved the understanding of the consumer
buying behaviour to as to meet the objectives. Therefore, special care was given to the
different steps involved in the consumer buying decision making process and the questions
were set accordingly and chronologically. Later on, after various sessions of brainstorming
with friends and acquaintances, 17 variables were sorted out, which were presumed to be

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Project Report By MOHAMMAD Arshad


affecting the choice of a person for a particular company while buying a
consumer durable.. A Likert Scale was used to extract the information from the respondents.

The Pretesting of the questionnaire was done to make it more accurate and relevant
considering the information required from the survey. The pretesting was done by conducting
discussions with the College Mentor and also with the Industrial Mentor. Many valuable
suggestions were obtained to improve the questionnaire.

SAMPLING DESIGN PROCESS:

The main objective of a research project is to get information about the characteristics of a
population. A population is the aggregate set of all the elements that share some common set
of characteristics and which is of some interest to the marketing research. A sample is a
subgroup of the population selected for participation in the study. Sampling is important

because it helps to narrow down the horizon of data collection from the population. The
sampling design process involved the following steps:

1. Target Population: The target population is the collection of elements (individuals)


that possess the information sought and about which the inferences are to be made.
The target population for the research was defined as follows:

i. Elements: Male or female head of the household responsible for


buying consumer durables.

ii. Sampling units: Households.

iii. Extent: New Delhi and Noida

2. Sampling Frame: Sampling Frame is the representation of the elements of the target
population. In this study, the sampling frame is the individuals above the age of 25
years who are earning.

3. Sample Size: for the present study the sample size was 100 respondents. The sample
was exclusively prepared for the descriptive research study and for the exploratory
research sampling was done of a small number of respondents.

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Project Report By MOHAMMAD Arshad


4. Sampling Techniques: The sampling was done without replacement,
i.e. once the individual is quizzed he cannot be included in the sampling frame again.
As the sample size was small, so this technique helped to eradicate the problem of
repetition. For the exploratory research, the technique used was a Non-Probability
Technique called the Convenience Sampling. For the Descriptive research, a
Probability Technique was used called the Simple Random Sampling, in which
each individual in the target population has an equal probability of selection.

Data Analysis and Interpretation

1. Your Purpose in mind while buying a Consumer Durable?


N Valid 100
Missin
0
g

Cumulative
Frequency Percent Valid Percent Percent
Valid Necessity 93 93.0 93.0 93.0
For
Enhancing
3 3.0 3.0 96.0
one's
Status
As a Luxury 4 4.0 4.0 100.0
Total 100 100.0 100.0

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Project Report By MOHAMMAD Arshad


Your Purpose in mind while buying a Consumer Durable?
Necessity
For Enhancing one's Status
As a Luxury

Pies show percents

The pie shows that the majority (93%) of people buy a consumer durable item out of
necessity.Very few percentage of people consider buying it as a luxury or to enhance their
status in the society.

2. How do you make your purchase decision, Is it?


N Valid 100
Missin
0
g

Cumulative
Frequency Percent Valid Percent Percent
Valid Aided (With
79 79.0 79.0 79.0
Help)
Unaided
21 21.0 21.0 100.0
(Without Help)
Total 100 100.0 100.0

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Project Report By MOHAMMAD Arshad


How do you make your purchase decision,Is it?
Aided (With Help)
Unaided (Without Help)

79% of the total population take help while deciding on the purchase of a consumer durable
item while 21% of them prefer doing it own their own.

3. Which Purchase pattern is followed at your place?


N Valid 100
Missin
0
g

Cumulative
Frequency Percent Valid Percent Percent
Valid Individua
19 19.0 19.0 19.0
l
Family 81 81.0 81.0 100.0

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Project Report By MOHAMMAD Arshad


Total 100 100.0 100.0

Which Purchase pattern is followed at your place?


Individual
Family

When it comes to going to the market and buying the product, 81% people do the same with
their family while the remaining 19% prefer buying all by themselves.

4. Place of purchase preferred?


N Valid 100
Missin
0
g

Cumulative
Frequency Percent Valid Percent Percent
Valid Modern Retail
5 5.0 5.0 5.0
shops
Brand shops 37 37.0 37.0 42.0
Multibrand
54 54.0 54.0 96.0
Shops
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Project Report By MOHAMMAD Arshad


others 4 4.0 4.0 100.0
Total 100 100.0 100.0

Place of purchase preferred?


Modern Retail shops
Brand shops
Multibrand Shops
others

MULTIBRAND SHOPS are the most preferred when it comes to buying a consumer durable
item (54%) followed by Brand Shops, Modern Retail Shops and Other stores.

5. Purchase decision influenced by?

• Recommendation by friends and acquaintances

Cumulative
Frequency Percent Valid Percent Percent
Valid YES 64 64.0 64.0 64.0
NO 36 36.0 36.0 100.0
Total 100 100.0 100.0

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Project Report By MOHAMMAD Arshad


Recommendation by friends and acquaintances
YES
NO

64% of the population takes into account the advice given to them by their family and friends
while buying a Consumer Durable item. The other 36% of people do not believe in doing so.

• Advertisements
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 48 48.0 48.0 48.0
NO 52 52.0 52.0 100.0
Total 100 100.0 100.0

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Project Report By MOHAMMAD Arshad


Advertisements
YES
NO

Advertisements through various mediums influence only 48% of the population to buy any
consumer durable item.

• Display in Stores
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 50 50.0 50.0 50.0
NO 50 50.0 50.0 100.0
Total 100 100.0 100.0

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Project Report By MOHAMMAD Arshad


Display in Stores
YES
NO

When it comes to getting influenced by the display in stores, 50% of the population prove it
to be a reliable medium.

• Others
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 2 2.0 2.0 2.0
NO 98 98.0 98.0 100.0
Total 100 100.0 100.0

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Project Report By MOHAMMAD Arshad


Others
YES
NO

Just 2% of the population went with this option.

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Project Report By MOHAMMAD Arshad


Are you influenced by Offers?
Always
Often
Occasionally
Rarely

56% of the
population is occasionally influenced by offers while buying a product while just 7% are
always influenced.

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Project Report By MOHAMMAD Arshad


• Features
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 18 18.0 18.6 18.6
Rank 2 19 19.0 19.6 38.1
Rank 3 31 31.0 32.0 70.1
Rank 4 17 17.0 17.5 87.6
Rank 5 6 6.0 6.2 93.8
Rank 6 6 6.0 6.2 100.0
Total 97 97.0 100.0
Missing System 3 3.0
Total 100 100.0

Features
Rank 1 Rank 4
Rank 2 Rank 5
Rank 3 Rank 6

Features share the same rank as quality.

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Project Report By MOHAMMAD Arshad


• Design
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 19 19.0 19.0 19.0
Rank 2 14 14.0 14.0 33.0
Rank 3 32 32.0 32.0 65.0
Rank 4 11 11.0 11.0 76.0
Rank 5 19 19.0 19.0 95.0
Rank 6 5 5.0 5.0 100.0
Total 100 100.0 100.0

Design
Rank 1 Rank 4
Rank 2 Rank 5
Rank 3 Rank 6

Design of Samsung air conditioners is ranked 3.

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Project Report By MOHAMMAD Arshad


• Price
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 16 16.0 16.0 16.0
Rank 2 16 16.0 16.0 32.0
Rank 3 40 40.0 40.0 72.0
Rank 4 12 12.0 12.0 84.0
Rank 5 3 3.0 3.0 87.0
Rank 6 13 13.0 13.0 100.0
Total 100 100.0 100.0

Price
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Price ranked 3 the most

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Project Report By MOHAMMAD Arshad


• Efficiency
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 12 12.0 12.0 12.0
Rank 2 15 15.0 15.0 27.0
Rank 3 55 55.0 55.0 82.0
Rank 4 2 2.0 2.0 84.0
Rank 5 2 2.0 2.0 86.0
Rank 6 11 11.0 11.0 97.0
Rank 7 3 3.0 3.0 100.0
Total 100 100.0 100.0

Efficiency
Rank 1 Rank 5
Rank 2 Rank 6
Rank 3 Rank 7
Rank 4

Efficiency ranked 3 the most.

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Project Report By MOHAMMAD Arshad


• Brand Name
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 25 25.0 25.0 25.0
Rank 2 19 19.0 19.0 44.0
Rank 3 31 31.0 31.0 75.0
Rank 4 10 10.0 10.0 85.0
Rank 5 2 2.0 2.0 87.0
Rank 6 10 10.0 10.0 97.0
Rank 7 3 3.0 3.0 100.0
Total 100 100.0 100.0

Brand Name
Rank 1 Rank 5
Rank 2 Rank 6
Rank 3 Rank 7
Rank 4

Brand name- Rank 3

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Project Report By MOHAMMAD Arshad


• After Sales
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 7 7.0 7.0 7.0
Rank 2 16 16.0 16.0 23.0
Rank 3 29 29.0 29.0 52.0
Rank 4 5 5.0 5.0 57.0
Rank 5 6 6.0 6.0 63.0
Rank 6 3 3.0 3.0 66.0
Rank 7 34 34.0 34.0 100.0
Total 100 100.0 100.0

After Sales
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

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Project Report By MOHAMMAD Arshad


LG
Cumulative
Frequency Percent Valid Percent Percent
Valid 100 100.0 100.0 100.0

• Quality
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 9 9.0 9.0 9.0
Rank 2 26 26.0 26.0 35.0
Rank 3 48 48.0 48.0 83.0
Rank 4 8 8.0 8.0 91.0
Rank 5 4 4.0 4.0 95.0
Rank 6 1 1.0 1.0 96.0
Rank 7 4 4.0 4.0 100.0
Total 100 100.0 100.0

LG

Quality
Rank 1 Rank 5
Rank 2 Rank 6
Rank 3 Rank 7
Rank 4

Quality ranked 3 by consumers.

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Project Report By MOHAMMAD Arshad


• Features
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 16 16.0 16.0 16.0
Rank 2 24 24.0 24.0 40.0
Rank 3 32 32.0 32.0 72.0
Rank 4 11 11.0 11.0 83.0
Rank 5 9 9.0 9.0 92.0
Rank 6 2 2.0 2.0 94.0
Rank 7 6 6.0 6.0 100.0
Total 100 100.0 100.0

Features
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Features of LG air conditioners-Rank 3

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Project Report By MOHAMMAD Arshad


• Design
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 9 9.0 9.0 9.0
Rank 2 21 21.0 21.0 30.0
Rank 3 43 43.0 43.0 73.0
Rank 4 6 6.0 6.0 79.0
Rank 5 11 11.0 11.0 90.0
Rank 6 7 7.0 7.0 97.0
Rank 7 3 3.0 3.0 100.0
Total 100 100.0 100.0

Design
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Rank 3 for design the highest

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• Price
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 5 5.0 5.0 5.0
Rank 2 19 19.0 19.0 24.0
Rank 3 40 40.0 40.0 64.0
Rank 4 22 22.0 22.0 86.0
Rank 5 8 8.0 8.0 94.0
Rank 6 3 3.0 3.0 97.0
Rank 7 3 3.0 3.0 100.0
Total 100 100.0 100.0

Price
Rank 1 Rank 5
Rank 2 Rank 6
Rank 3 Rank 7
Rank 4

Price ranked 3 the most.

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• Efficiency
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 4 4.0 4.0 4.0
Rank 2 16 16.0 16.0 20.0
Rank 3 40 40.0 40.0 60.0
Rank 4 11 11.0 11.0 71.0
Rank 5 20 20.0 20.0 91.0
Rank 6 2 2.0 2.0 93.0
Rank 7 7 7.0 7.0 100.0
Total 100 100.0 100.0

Efficiency
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Efficiency-Rank 3

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• Brand Name
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 8 8.0 8.0 8.0
Rank 2 16 16.0 16.0 24.0
Rank 3 41 41.0 41.0 65.0
Rank 4 8 8.0 8.0 73.0
Rank 5 5 5.0 5.0 78.0
Rank 6 16 16.0 16.0 94.0
Rank 7 6 6.0 6.0 100.0
Total 100 100.0 100.0

Brand Name
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Rank 3 for brand name of LG

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• After Sales
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 13 13.0 13.0 13.0
Rank 2 13 13.0 13.0 26.0
Rank 3 31 31.0 31.0 57.0
Rank 4 4 4.0 4.0 61.0
Rank 5 9 9.0 9.0 70.0
Rank 6 7 7.0 7.0 77.0
Rank 7 23 23.0 23.0 100.0
Total 100 100.0 100.0

After Sales
Rank 1 Rank 5
Rank 2 Rank 6
Rank 3 Rank 7
Rank 4

Rank 3 highest for after sales

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HITACHI
Cumulative
Frequency Percent Valid Percent Percent
Valid 100 100.0 100.0 100.0

• Quality
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 23 23.0 23.0 23.0
Rank 2 28 28.0 28.0 51.0
Rank 3 6 6.0 6.0 57.0
Rank 4 1 1.0 1.0 58.0
Rank 5 4 4.0 4.0 62.0
Rank 6 35 35.0 35.0 97.0
Rank 7 3 3.0 3.0 100.0
Total 100 100.0 100.0

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HITACHI

Quality
Rank 1 Rank 5
Rank 2 Rank 6
Rank 3 Rank 7
Rank 4

Quality ranked 2 the most.

• Features
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 16 16.0 16.0 16.0
Rank 2 24 24.0 24.0 40.0
Rank 3 32 32.0 32.0 72.0
Rank 4 11 11.0 11.0 83.0
Rank 5 9 9.0 9.0 92.0
Rank 6 2 2.0 2.0 94.0
Rank 7 6 6.0 6.0 100.0
Total 100 100.0 100.0

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Features
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Features-Rank 6 the most

• Design
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 4 4.0 4.0 4.0
Rank 2 27 27.0 27.0 31.0
Rank 3 23 23.0 23.0 54.0
Rank 4 11 11.0 11.0 65.0
Rank 5 6 6.0 6.0 71.0
Rank 6 29 29.0 29.0 100.0
Total 100 100.0 100.0

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Design
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Design of Air conditioners-Rank 6 the most.

• Price
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 8 8.0 8.0 8.0
Rank 2 6 6.0 6.0 14.0
Rank 3 46 46.0 46.0 60.0
Rank 4 6 6.0 6.0 66.0
Rank 5 26 26.0 26.0 92.0
Rank 6 3 3.0 3.0 95.0
Rank 7 5 5.0 5.0 100.0
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Total 100 100.0 100.0

Price
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Price ranked 3 the most.

• Efficiency
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 12 12.0 12.0 12.0
Rank 2 15 15.0 15.0 27.0
Rank 3 55 55.0 55.0 82.0
Rank 4 2 2.0 2.0 84.0
Rank 5 2 2.0 2.0 86.0
Rank 6 11 11.0 11.0 97.0

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Rank 7 3 3.0 3.0 100.0
Total 100 100.0 100.0

Efficiency
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Efficiency ranked 3 the most.

• Brand Name
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 14 14.0 14.0 14.0
Rank 2 9 9.0 9.0 23.0
Rank 3 3 3.0 3.0 26.0
Rank 4 13 13.0 13.0 39.0
Rank 5 13 13.0 13.0 52.0
Rank 6 46 46.0 46.0 98.0

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Rank 7 2 2.0 2.0 100.0
Total 100 100.0 100.0

Brand Name
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Brand name ranked 6

• After Sales
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 5 5.0 5.0 5.0
Rank 2 16 16.0 16.0 21.0
Rank 3 15 15.0 15.0 36.0
Rank 4 4 4.0 4.0 40.0

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Rank 5 6 6.0 6.0 46.0
Rank 6 35 35.0 35.0 81.0
Rank 7 19 19.0 19.0 100.0
Total 100 100.0 100.0

After Sales
Rank 1 Rank 5
Rank 2 Rank 6
Rank 3 Rank 7
Rank 4

After sales ranked 6 the most

WHIRLPOOL
Cumulative
Frequency Percent Valid Percent Percent
Valid 100 100.0 100.0 100.0

• Quality
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Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 10 10.0 10.0 10.0
Rank 2 20 20.0 20.0 30.0
Rank 3 19 19.0 19.0 49.0
Rank 4 14 14.0 14.0 63.0
Rank 5 3 3.0 3.0 66.0
Rank 6 34 34.0 34.0 100.0
Total 100 100.0 100.0

WHIRLPOOL

Quality
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Quality ranked 6 the most.

• Features
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 17 17.0 17.0 17.0
Rank 2 5 5.0 5.0 22.0
Rank 3 6 6.0 6.0 28.0
Rank 4 36 36.0 36.0 64.0
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Rank 5 2 2.0 2.0 66.0
Rank 6 34 34.0 34.0 100.0
Total 100 100.0 100.0

Features
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Features ranked 6 the most for Whirlpool

• Design
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 8 8.0 8.0 8.0
Rank 2 12 12.0 12.0 20.0
Rank 3 5 5.0 5.0 25.0
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Rank 4 3 3.0 3.0 28.0
Rank 5 6 6.0 6.0 34.0
Rank 6 66 66.0 66.0 100.0
Total 100 100.0 100.0

Design
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Design rank 6

• Price
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 7 7.0 7.0 7.0
Rank 2 2 2.0 2.0 9.0
Rank 3 43 43.0 43.0 52.0

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Rank 4 6 6.0 6.0 58.0
Rank 5 17 17.0 17.0 75.0
Rank 6 5 5.0 5.0 80.0
Rank 7 20 20.0 20.0 100.0
Total 100 100.0 100.0

Price
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Price ranked 3 the most.

• Efficiency
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 20 20.0 20.0 20.0
Rank 2 2 2.0 2.0 22.0
Rank 3 35 35.0 35.0 57.0

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Rank 4 17 17.0 17.0 74.0
Rank 5 26 26.0 26.0 100.0
Total 100 100.0 100.0

Efficiency
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5

Efficiency ranked 3

• Brand Name
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 2 2.0 2.0 2.0
Rank 2 22 22.0 22.0 24.0

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Rank 3 24 24.0 24.0 48.0
Rank 4 6 6.0 6.0 54.0
Rank 5 3 3.0 3.0 57.0
Rank 6 43 43.0 43.0 100.0
Total 100 100.0 100.0

Brand Name
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Brand name ranked 6 the most.

• After Sales
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 24 24.0 24.0 24.0
Rank 2 10 10.0 10.0 34.0

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Rank 3 1 1.0 1.0 35.0
Rank 4 3 3.0 3.0 38.0
Rank 5 1 1.0 1.0 39.0
Rank 6 40 40.0 40.0 79.0
Rank 7 21 21.0 21.0 100.0
Total 100 100.0 100.0

After Sales
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

After Sales again ranked 6 the most.

VIDEOCON
Cumulative
Frequency Percent Valid Percent Percent
Valid 100 100.0 100.0 100.0

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• Quality
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 2 4 4.0 4.0 4.0
Rank 3 12 12.0 12.0 16.0
Rank 4 9 9.0 9.0 25.0
Rank 5 54 54.0 54.0 79.0
Rank 6 21 21.0 21.0 100.0
Total 100 100.0 100.0

VIDEOCON

Quality
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Quality of Videocon Air conditioners ranked 5 the most,

• Features

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Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 20 20.0 20.0 20.0
Rank 2 9 9.0 9.0 29.0
Rank 3 5 5.0 5.0 34.0
Rank 4 14 14.0 14.0 48.0
Rank 5 51 51.0 51.0 99.0
Rank 6 1 1.0 1.0 100.0
Total 100 100.0 100.0

Features
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Features ranked 5 the most.

• Design

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Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 28 28.0 28.0 28.0
Rank 2 21 21.0 21.0 49.0
Rank 3 6 6.0 6.0 55.0
Rank 4 12 12.0 12.0 67.0
Rank 5 32 32.0 32.0 99.0
Rank 6 1 1.0 1.0 100.0
Total 100 100.0 100.0

Design
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Design- Rank 5

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• Price
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 3 3.0 3.0 3.0
Rank 2 31 31.0 31.0 34.0
Rank 3 51 51.0 51.0 85.0
Rank 4 9 9.0 9.0 94.0
Rank 5 3 3.0 3.0 97.0
Rank 6 3 3.0 3.0 100.0
Total 100 100.0 100.0

Price
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Price ranked 3 the most

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• Efficiency
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 3 3.0 3.0 3.0
Rank 2 5 5.0 5.0 8.0
Rank 3 30 30.0 30.0 38.0
Rank 4 6 6.0 6.0 44.0
Rank 5 28 28.0 28.0 72.0
Rank 6 28 28.0 28.0 100.0
Total 100 100.0 100.0

Efficiency
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6

Efficiency ranked 3.

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• Brand Name
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 5 5.0 5.0 5.0
Rank 2 9 9.0 9.0 14.0
Rank 3 2 2.0 2.0 16.0
Rank 4 25 25.0 25.0 41.0
Rank 5 10 10.0 10.0 51.0
Rank 6 46 46.0 46.0 97.0
Rank 7 3 3.0 3.0 100.0
Total 100 100.0 100.0

Brand Name
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

Brand name ranked 6 the most.

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• After Sales
Cumulative
Frequency Percent Valid Percent Percent
Valid Rank 1 3 3.0 3.0 3.0
Rank 2 4 4.0 4.0 7.0
Rank 3 4 4.0 4.0 11.0
Rank 4 6 6.0 6.0 17.0
Rank 5 10 10.0 10.0 27.0
Rank 6 25 25.0 25.0 52.0
Rank 7 48 48.0 48.0 100.0
Total 100 100.0 100.0

After Sales
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7

After sales ranked 6 the most for Videocon.

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Findings
The following facts are revealed from the present study of consumer behaviour in the
marketing of Samsung air conditioners:

Motivational factors:

1. Need recognition:

Necessity is the main purpose of buying any consumer durable item.

2. Influences on purchase decision

Almost everyone requires some help while deciding on what to buy and would want
his/her family to accompany for the final purchase.

While obtaining information about what product to buy, a family member or friend’s
recommendation is trusted the most.

Purchase process:

1. Factors affecting brand selection:

Quality of a consumer durable item is given the highest importance while before
considering an item. This is followed by price.

Very few people are seen getting influenced by offers, “Always”, and discount is the
offer most availed.

2. Place and mode of purchase

Mutilbrand shops are the most preferred when it comes to buying a consumer durable
item.

People prefer paying through the cash that is readily available to them.

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Most preferred brand for air conditioners:

1. Samsung and LG electronics are rated almost equally and ahead of all other brands.
After sales for LG scores more while the other parameters weigh equally for both
brands.

2. Hitachi as a brand is liked for the quality of it’s air conditioners the most but rank
lower than the “Big Brands” in all other parameters. Whirlpool too lies on almost the
same scale.

3. Videocon and Voltas as brands of air conditioners are the least preferred. They rank
well in the Price aspect but achieved a poor rank for all other parameters.

In short, the “Big Brands;viz, Samsung and LG rank the highest amongst the choice
of best air conditioners to buy.

Relationship across categories:

1. Buying a product out of necessity is the highest opted for option by different age
groups too. It clears the myth that most youngsters in today’s time would want to own
something just for the heck of it.

2. The above is also true for people belonging to different income groups also.

3. People of different age groups choose multibrands as the most convenient place for
buying a consumer durable item. Reason being it offers whole lot of choices.

4. All income groups prefer buying through the cash readily available with them.

Competition tracking

• LG stays the leading brand for both Split and Window type of Air conditioners with
the highest ranking across the country as well as in Delhi and NCR.

• Samsung is number two in the ranking followed by Voltas.

• LG leads in the number of models too.

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General findings

• Posted on a website, Samsung is the first brand to have offered protection against
SWINE FLU in Pakistan and Afghanistan.

• Website of LG and Voltas have the feature named tonnage calculation and electricity
consumption measure in their air conditioner category.

• Bad response of Samsung’s after sale service on consumer forum websites


complaining delay in response and false promises.

• A general problem seen while surveying the sample area; most housing societies in
East Delhi are situated near the sewage water canals. As per the people residing here
emission of certain type of gases the air conditioner pipes get leaked in every two
months. According to service engineers, it is the type of material used which is the
problem.

Due to this, there has been a fall in the use of Air conditioners thinking it to be a huge
burden.

Limitations
• Samsung did not get success in
marinating customer faith and
trust as being a foreign brand
• The after sales services were not
very good as compared to main
competitor LG.
• The spare parts were not readily
available as it was being
outsourced.

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• The training period was very
less.
• The data collected may not be
reliable in some cases as it was
collected various sources that
does not have any formal relation
with SAMSUNG.

Conclusion and Recommendations


Conclusion
“Marketing is not just selling and telling people but it is selling the customer satisfaction at a
profit.” Good knowledge of consumer behaviour helps marketers produce products that will
satisfy the customers.

The study reveals very clearly that a consumer of today is dependent the most on consumer
durable items. Samsung as a brand has performed to its level best to meet the increasing
amount of dependency. It has gained a huge market share which shows the amount of
satisfying customers they have.

The study also shows that a customer today is well informed and makes a purchase decision
after detailed evaluation.post purchase behaviour is equally important as a dissatisfied
customer would spread the bad word around affecting the image of a company. Therefore, the
study of consumer behaviour with respect to Samsung air conditioners proves that a clear
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knowledge of consumer behaviour is a key success factor in the consumer
durable market.

Recommendations
The following are made based on the results of the study:

• LG is and continues to be a big competition for Samsung air conditioners. With LG


leading the rankings, it becomes all the more important for Samsung to innovate and
plan well for the coming seasons.

• Displays in stores influence the buying decision of a consumer and so the availability
of catalogues and models at various stores should be checked on.

• Inshop demonstrators to be skilled better in order to get more sales out of them.

• After sales service to be majorly strengthened promising on time and better services.

• Ways to boost sales in Samsung plazas in malls with the help of more displays, more
readily available models and promotion.

To summarise the recommendations, the following framework is suggested:

• Where Branding for a company gets it wrong

• Persuading the Sub Conscious Mind

• Making your brand uniquely Rewarding

• Aligning the Business with the Brand Strategy

• Getting your Audience to enter the game

BIBLIOGRAPHY
1. Baker, Michael J. “Marketing- An Introductory Text” 6th Edition, Macmillan Press
Ltd.

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2. Wissen-Dictionary of marketing

3. Richard L.: Marketing (2000, S. 218)

4. Leon, G. Schiffman and Leslie Lazar Kanuk,Consumer Behaviour,Prentice Hall of


India Pvt. Ltd. New Delhi

5. The Marketing Whitebook, 2010-11, Businessworld

6. Tjaco Walvis, Branding with Brains, Pearson 2010, HARBOW, England

7. www.samsung.co.in

8. www.lgindia.com

9. Catalogues of leading brands of Air conditioners

10. Reviews at www.consumerdaddy.com

11. Cosumer forum websites

12. ORG reports

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Annexure

1. Your purpose in mind while buying a Consumer Durable Item:

• Necessity

• For enhancing one’s status

• As a luxury

2. How do you make your purchase decision, Is It:

• Aided ( with help)

• Unaided (without help)

3. Which Purchase pattern is followed at your place?

• Individual

• Family

4. Place of purchase preferred :

• Modern retail stores

• Brand shops

• Multibrand shops

• Others

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5. Purchase decision influenced by:

• Recommendation by friends and acquaintances

• Advertisements

• Displays in stores

• Talk with salesman

• Others

6. On what all parameters do you base your purchase decision (rank on a


scale from 1 to 6..1-highest,6-lowest)

• Price

• Product

• Quality

• Brand image

• Packaging

• Features

7. Are you influenced by offers ?

• Always

• Often

• Occasionally

• Rarely

• Never

8. Offers availed during purchase:

• Exchange

• Discount

• Free gifts

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• None

9. Mode of purchase:

• Ready cash payment

• Consumer loans

• Instalment schemes

• Credit purchase

10.Which all brands have you used in the past?

11.Which brands are you currently using?

12.If given a choice to shift from your current brand of products what would
the reasons be for such a change?

13.Please rate the following brands of AC on a scale from 1 to 7 (1-highest,7-


lowest)

Samsung LG Hitachi Whirlpool Videocon Godrej

Quality

Features

Design

Price

Efficiency

Brand name

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After sales

14.What impression do you have of Samsung Electronics as a brand for Air


Conditioners? Reasons for the same

• Positive (Good)

• Negative (Poor)

SAMSUNG ELECTRONICS INDIA PRIVATE


LIMITED

CONSUMER BEHAVIOUR STUDY FOR THE


MARKETING OF AIR CONDITIONERS

This Data and other Information presented


in the document is for the purpose of final
project submitted at DAV College, sec-10,
CHANDIGARH only and cannot be used in
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any other project or for any other
purpose.

MOHAMMAD ARSHAD
DAV COLLEGE, SEC – 10, CHANDIGARH

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