Consumers Buying Behaviour Towards Electonic Home Appliances

A STUDYOF

CONSUMER’S BUYING BEHAVIOUR TOWARDS ELECTRONIC HOME

APPLIANCES

Submitted in partial fulfillment for the award of the Degree MASTER OF BUSINESS ADMINISTRATION (MBA)

By

SIVAJI GANESH BOBBILI

Roll No: 064080138

Bharatiya Vidya Bhavan’s Vivekananda College

(Affiliated to OSMANIA UNIVERSITY, Hyderabad)

Sainikpuri, Secunderabad - 500094

Department Of Management studies.

Declaration

I hereby declare that this Project Report titled “A Study of Consumer’s Buying Behaviour Towards Electronic Home Appliances” submitted by me to the Department of Business Management, Osmania University, Hyderabad is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma/certificate or published any time before.

Place:Date: (Sivaji Ganesh Bobbili)


Acknowledgement

I take this opportunity to thank Mr. Y.Ashok (Principal, Bharatiya Vidya Bhavan’s Vivekananda College), Prof S.Ananda Reddy (Course director, Department of management studies) for their encouragement in doing the project work.

I would like to thank Dr N.S.Chakravarthy (Head, Department of Management Studies) for extending his valuable guidance and help during the project for successful completion.

I also thank Mr.M.V.S.Mahendra for his guidance and suggestions and his kind help and motivation in completing the project.

Finally, I thank my family members and friends for their continuous support during my study period.

(Sivaji Ganesh Bobbili)


CONTENTS

CHAPTER 1 INTRODUCTION (6-8)

Intoduction Objectives of the study Scope of the study Limitations of the study Research methodology

67778

CHAPTER 2 HOME APPLIANCES INDUSTRY (10-16)

Introduction of home appliances Consumer electronics and home appliances Key growth drivers of the industry Marketing strategy adopted by some companies

10111112

CHAPTER 3 THEORITICAL FRAMEWORK (18-33)

Introduction of buying behavior Importance of consumer behavior Buying decision process Types of buying behavior Factors affecting consumers buying behaviour

1819202223

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION (35-54)

Introduction Classification of research Research problem Research design Methodology Data collection Data analysis Data interpretation

3536363737384041

CHAPTER 5 CONCLUSIONS AND SUGGESITIONS (56-57)

Introduction Conclusions Suggesitions

565657

APPENDICES (59-64) Questionnaire Bibliography

5964


CHAPTER - 1

INTRODUCTION

INTRODUCTION:

In today’s world of hyper competition and globalization, every company is trying to

survive and to perform their best in the existing condition to attain the desired level of


their potential customers. In this global economy the change is created by

liberalization in our country. India is now playing a major role. The big MNC’s have

all entered in our market with their wide range of superior quality products between

our and their products at large.

Today Indian market is growing in world and many company exist with superiors

product line especially in electronic home appliances range so it is very important to

pay attention towards products and king i.e., customer. In present scenario customers

are more aware about and sound enough to take the most rational decision only to

achieve satisfaction.

The Indian consumer electronics products and household appliances industry has an

annual turnover of approximately Rs.190 billion. The key products in the Indian

consumer electronics are colour TV, refrigerators, air conditioners and washing

machines At the product level, within the consumer electronics and household

appliances industry in India the penetration level of CTV is the highest, followed by

refrigerators, washing machines and air conditioners.

Home appliances are that without which a modern home is considered incomplete,

especially in urban areas. In metro cities and big towns, appliances are regarded as a

boon, as they are instrumental in cutting down the time involved in most of the

domestic chores. So the researcher studies the consumer’s buying behaviour towards

electronics home appliances.

OBJECTIVES OF THE STUDY:

1) To find out factors that influence buying decision.


2) To find out sources of information used by customers before making decision of

specific brand of home appliance.

3) To know about features for which the potential customers looks for when they buy

any branded home appliance.

4) To find out factors that influence buying decision.

5) To find out sources of information used by customers before making decision of

specific brand of home appliance.

6) To know about features for which the potential customers looks for when they buy

any branded home appliance.

SCOPE OF THE STUDY:-

1) Study helped to know about customer’s expectation and opinion.

2) This Study helped to know the different services provided by home appliance

companies.

LIMITATIONS OF THE STUDY:-

1) Sample size of 100 respondents were covered by the study.

2) This study was limited for the Hyderabad city only; as such the findings of the

study may not be applicable in studies of other city.

3) Sometimes feedback obtained from the respondents was not proper thus result

may vary.

RESEARCH METHODOLOGY:


Research methodology is used to solve the research problem which is understood as a

science of studying how research is done scientifically. Primary data collected by

well-structured questionnaire and interview method. Secondary data was collected

from books, internet and newspapers.

The sample size was 100 respondents (75 men and 25 women) in Hyderabad. The

sampling unit of the study was all users of home Appliances in the age group of 30-45

yrs of middle income group in Hyderabad city.Non-probability convenience sampling

technique was used.


CHAPTER – 2

HOME APPLIANCES INDUSTRY


Introduction of Home appliances:

A major appliance, or domestic appliance, is usually defined as a large machine which

accomplishes some routine housekeeping task, which includes purposes such as

cooking, food preservation, or cleaning, whether in a household, institutional or

industrial setting.

Major appliances are differentiated from small appliances because they are large,

difficult to move, and generally fixed in place to some extent. Another frequent

characteristic of major appliances is that they may have substantial electricity

requirements that necessitate special electrical wiring to supply higher current than

standard electrical outlets can deliver. This limits where they can be placed in a home.

Major appliances have become more technically complex from the control side

recently with the introduction of the various Energy Labeling rules across the world.

This has meant that the appliances have been forced to become more and more

efficient leading to more accurate controllers in order to meet the regulations.

Home appliances companies in India:

Home appliances are that without which a modern home is considered incomplete,

especially in urban areas. In metro cities and big towns, appliances are regarded as a

boon, as they are instrumental in cutting down the time involved in most of the

domestic chores.

There are many home appliance companies in India like Videocon, Voltas, Godrej,

Bluestar, Kenstar etc. apart from them there are various international companies also

that deal in domestic manufactures are Samsung, LG, Whirlpool, Kenmore etc. with

the arrival of international brands in Indian market, the competition among rival


companies have become stiff, which results in further improvement in qualities and

depreciation in prices of most of the home appliances in India. Since a majority of

products are electrically operated, the focus is on such household appliances that are

efficient in power consumption.

Most of the leading home appliances manufacture and companies have set up their

exclusive retail outlets in important towns and cities of the country. Besides there are

local home appliances suppliers, manufactures, wholesalers and retailers spread

throughout India.

Consumer electronics and home appliances -

The Indian consumer electronics products and household appliances industry has an

annual turnover of approximately Rs.190 billion. The key products in the Indian

consumer electronics are colour TV, refrigerators, air conditioners and washing

machines At the product level, within the consumer electronics and household

appliances industry in India the penetration level of CTV is the highest, followed by

refrigerators, washing machines and air conditioners.

The key growth drivers of the industry are -

Rising income levels and increasing affordability, fueling consumerism and

growth in demand for inspirational goods.

Change in perception of consumer goods as basic necessities as opposed to

luxuries largely driven by increased awareness and advertising.


Rationalizing of prices by key players due to a conductive tariff policy y the

government.

Increasing demand for technology driven replacement of consumer goods and

household appliances.

Marketing strategies adopted by some companies -

Some analysts are of the opinion that the cornerstone of LG's strategy was its heavy

advertising. In 2002, it spent around 1.3 billion on advertising. Communication

creates a mind space among the consumers and LG has occupied that fairly well.

In all the communications of LG, the USP remained the same for individual products.

For refrigerators, it was "preserve nutrition;" for CTVs, it was "less strain on eyes;"

for air conditioners, it was "healthy ambience and air quality;" for washing machines

it was "fabric care;" and for microwave ovens it was "healthy cooking.

LG is adopting the `Blue Ocean' strategy through which it plans to launch some path

breaking products and technologies. Under this strategy, they will be entering new

segments and markets, and will aim to create uncontested market space. An aim is to

double revenues, profit and shareholder value and be among the global top three by

2010.

PHILIPS

Apart from initiating new marketing and distribution programmes, Philips will also be

launching a range of new products during the rural initiative. They have specially

designed value-for-money products specifically targeted at the semi-urban and rural

consumer in India, across our CTV and audio product range. The pricing for these


products has been structured to make it affordable for their target audience. Other new

models to be introduced will include features such as a new `Eye-fi' technology which

allows picture improvement under any cable signal condition, economy in electricity

consumption and on-screen display in the regional language, among other things.

On the distribution front, Philips claims to have the biggest distribution network (as

compared to other consumer electronics companies) and a high degree of penetration

even in the rural and semi-urban areas. The company has carried out an extensive

product-wise mapping exercise over 540 districts across India., Keeping in mind the

objective of extensive physical reach of 80 per cent plus, they have developed a

second line of activity in their distribution set-up, so that there is a focus on improving

relations, trade with these retailers, and catering to their needs. These steps have

helped them in developing our volume reach, geographical reach and counter share

significantly.

Philips is hoping that its innovative rural marketing initiative coupled with the high

growth in the rural market will boost its market share. It is targeting to increase the

percentage.

SAMSUNG

The Rs 1,350-crore Samsung India Electronics Ltd is charting out an aggressive

marketing strategy to promote its home appliances range in the New Year. According

to Mr. Ravindra Zutshi, vice-president (sales and marketing), Samsung India

Electronics, and the company plans to invest Rs 25 crore towards developing new

moulds for its home appliances range.


The company is in the process of rolling out 14 new colour television models this year

with new marketing and promotional initiatives. To announce the new range, the

company will be releasing an advertising campaign very soon. They plan to invest Rs

85 crore on mass media campaigns for Samsung’s entire range of products this year.

In the home appliance business, target is to garner a 19 per cent growth this year.

VIDEOCON

Videocon has become a house hold name as most upper middle and middle class

people identify its products, thanks to its huge spending in advertising and its

strategies to

Penetrate into semi-urban and rural areas in a big way. That it has achieved a market

leader position in both audio and video equipment and also remained in that position

for a considerable period (almost five years) bears testimony to the success of its

strategies to attract the customers. In other product lines like washing machines also it

witnessed a growing rate of success until 1997.

The company believes that the only strategy for survival in a competitive market is to

ensure customer satisfaction and leadership through quality and innovation,

technology and performance.

KELVINATOR

In an effort to promote its new product launches, Electrolux Kelvinator Ltd is

planning to launch a slew of marketing initiatives and promotions, targeted at trade

partners and consumers in the year 2003-04. In addition, the company also plans to

restructure its existing distribution system and consolidate its business operations.


On the company’s new marketing initiatives they have launched new range of

Electrolux Kelvinator products with a new brand positioning such as ‘Nurturing

Hopes, Nourishing Life’, the worlds first - Life Nourishing System. This system is a

superior technologically advanced system with new features.

As part of its retailing strategy, the company has set up various shop-in-shop outlets,

and it is also planning to launch its customer relationship management (CRM)

initiatives, at the retail-end.

Electrolux is a market leader in refrigerators with its three brands Electrolux

Kelvinator, Electrolux and Allwyn.Every year, customers in more than 150 countries

buy more than 55 million Electrolux Group products for both consumers and

professional use.

GODREJ

The Rs 7,200-crore Godrej Group has finally unveiled its brand new corporate

identity and branding strategy at its headquarters in Mumbai. The group’s

strategy outlined a roadmap to invest in a renewed Godrej master brand and corporate

identity to support the targeted revenue growth of 25-30% compounded annually, for

the group.

The 111 year old Godrej Group had appointed global brand consultancy firm

Interbrand to reposition its master brand with a makeover that makes the group

identity modern as well as contemporary.

Unveiling the group’s brand strategy, The Indian consumer now has a more

demanding and youthful mindset. At Godrej, they have always been at the helm of


changing and redefining the marketplace and this will now be reflected in a marketing

and branding strategy that accelerates profitable growth.

On the group’s makeover strategy, the revitalized corporate identity is a result of a

detailed analysis of product, service and business portfolio. Using the Godrej brand as

a unifier of businesses and people made sense because it is most valuable asset, it

cannot be replicated and it spans all their business


CHAPTER – 3

THEORITICAL FRAMEWORK


Introduction of Buying Behaviour:

It is defined as the mental, emotional and physical activities that people engaged in

when selection, purchasing, using and disposing of products and services so as to

satisfy need and desires.

The study of consumers helps firms and organizations improve their marketing

strategies by understanding issues such as how consumers think, feel, reason, and

select between different alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g.,

culture, family, signs, media);

The behavior of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that differ

in their level of importance or interest that they entail for the consumer; and how

marketers can adapt and improve their marketing campaigns and marketing strategies

to more effectively reach the consumer.

Understanding these issues helps in adapting strategies by taking the consumer into

consideration. For example, by understanding that a number of different messages

compete for our potential customers’ attention, one learns that to be effective,

advertisements must usually be repeated extensively. It is also learnt that consumers

will sometimes be persuaded more by logical arguments, but at other times will be

persuaded more by emotional or symbolic appeals. By understanding the consumer,


the company will be able to make a more informed decision as to which strategy to

employ.

Consumer behavior refers to how a consumer behaves or acts or reacts in making a

purchase of goods and services of his choice in a given situation. Thus,

The consumer behavior reflects the behavior of individuals and organizations

in making purchase decisions.

It involves not only how and why consumers make buying decisions but also

focuses on the uses of goods and services.

It also notes how consumer disposes of their once new purchases. Do they

store it, give it away, and sell it, rent it or lent it.

Consumer behavior involves the whole buying decision process.

Consumer behavior is a sub set of human behavior.

Importance of consumer behaviour:

We all are consumers and spent most of our time in purchasing. We takes interest in

advertisement of consumer related items, talking about things we need to purchase.

We need insight into our own consumption related decisions.

Reasons for the development of consumer behaviour

The reasons Diversified preferences of buyers,

Special needs, lifestyles and personality of buyers,

Technological development

Shorter product life cycle,

Environmental concerns,

Consumer protection movement,


Public policy concern,

Growth of international marketing

Buying decision process:

What influences consumers to purchase products or services? The consumer buying

process is a complex matter as many internal and external factors have an impact on

the buying decisions of the consumer.

When purchasing a product there several processes, which consumers go through.

These will be discussed below.

1. Problem/Need Recognition:

How do you decide you want to buy a particular product or service? It could be that

your DVD player stops working and you now have to look for a new one, all those

DVD films you purchased you can no longer play! So you have a problem or a new

need. For high value items like a DVD player or a car or other low frequency

purchased products this is the process we would take. However, for impulse low

frequency purchases e.g. confectionery the process is different.

2. Information search:

So we have a problem, our DVD player no longer works and we need to buy a new

one. What’s the solution? Yes go out and purchase a new one, but which brand? Shall

we buy the same brand as the one that blew up? Or stay clear of that? Consumer often

goes on some form of information search to help them through their purchase


decision. Sources of information could be family, friends, neighbors who may have

the product you have in mind, and alternatively you may ask the sales people, or

dealers, or read specialist magazines like What DVD? To help with their purchase

decision. You may even actually examine the product before you decide to purchase

it.

3. Evaluation of different purchase options:

So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers

allocate attribute factors to certain products, almost like a point scoring system which

they work out in their mind over which brand to purchase. This means that consumers

know what features from the rivals will benefit them and they attach different degrees

of importance to each attribute. For example sound maybe better on the Sony product

and picture on the Toshiba, but picture clarity is more important to you than sound.

Consumers usually have some sort of brand preference with companies as they may

have had a good history with a particular brand or their friends may have had a

reliable history with one, but if the decision falls between the Sony DVD or Toshiba

then which one shall it be? It could be that the a review the consumer reads on the

particular Toshiba product may have tipped the balance and that they will purchase

that brand.

4. Purchase decision:

Through the evaluation process discussed above consumers will reach their final

purchase decision and they reach the final process of going through the purchase

action e.g. The process of going to the shop to buy the product, which for some


consumers can be as just as rewarding as actually purchasing the product. Purchase of

the product can either be through the store, the web, or over the phone.

5. Post Purchase Behaviour:

Ever have doubts about the product after you purchased it? This simply is post

purchase behaviour and research shows that it is a common trait amongst purchasers

of products. Manufacturers of products clearly want recent consumers to feel proud of

their purchase; it is therefore just as important for manufacturers to advertise for the

sake of their recent purchaser so consumers feel comfortable that they own a product

from a strong and reputable organization. This limits post purchase behaviour. i.e. you

feel reassured that you own the latest advertised product.

Types of buying behaviour:

There are four typical types of buying behaviour based on the type of products that

intends to be purchased.

1. Complex buying behaviour -

Where the individual purchases a high value brand and seeks a lot of information

before the purchase is made.

2. Habitual buying behaviour -

Where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt.

3. Variety seeking buying behaviour -

Where the individual likes to shop around and experiment with different products. So

an individual may shop around for different breakfast cereals because he/she wants

variety in the mornings.


4. Dissonance reducing buying behaviour –

When buyer are highly involved with the purchase of the product, because the

purchase is expensive or infrequent. There is little difference between existing brands

an example would be buying a diamond ring, there is perceived little difference

between existing diamond brand manufacturers.

Factors affecting Consumer buying behavior:

Consumer buying behavior is influenced and depends on various factors. Industrial or

business buyers are more predictable and they mostly rely on acumen and logic and

are most influenced by quality and price. However, in the consumer market, buying

behaviors are not that easy to predict or analyze.

The buying decisions of the consumer of any product can be influenced or based on

any of the following factors-

1. Price of the product:

The price of the product greatly influences the buyer's decision whether to buy or not.

2. Quality of the product:

According to studies the factor that influences consumer most, after price is the

quality of the product.

3. Availability of the product:

If the product is easily available its definitely going to be a factor in decision making.

4. Need of the product:

Need for the product will prompt the consumer to buy it.

5. Attractiveness of the item:


It mostly occurs in impulse buying.

6. Convenience of the consumer and product:

If the product provides convenience through either is use or easy availability, the

buyer is more likely to purchase it

Factors affecting human behaviour are as follows:

1) Cultural

2) Social

3) Personal

4) Psychological

1) Cultural-

Culture is the most fundamental determinant of a persons want and behaviour. The

growing child acquires a set of values, perception preference, and behaviour through

his or her family and other key institutions

Culture is part of the external influences that impact the consumer. That is, culture

represents influences that are imposed on the consumer by other individuals.

The definition of culture offered in the text is "That complex whole which includes

knowledge, belief, art, morals, custom, and any other capabilities and habits acquired

by man person as a member of society." From this definition, one can make the

following observations:

Culture, as a "complex whole," is a system of interdependent components.


Knowledge and beliefs are important parts. Other issues are relevant. Art, for

example, may be reflected in the rather arbitrary practice of wearing ties in some

countries and wearing turbans in others.

Culture has several important characteristics: (1) Culture is comprehensive. This

means that all parts must fit together in some logical fashion. (2) Culture is learned

rather than being something we are born with. (3) Culture is manifested within

boundaries of acceptable behavior. (4) Conscious awareness of cultural standards is

limited. (5) Cultures fall somewhere on a continuum between static and dynamic

depending on how quickly they accept change.

Cultural rules can be categorized into three types. Formal rules carry relatively

explicit standards as to how one should behave, and violations often carry severe

sanctions. Informal rules, on the other hand, are less explicit and may not carry

sanctions for violation. Finally, technical cultural rules involve implicit standards as

to what constitutes a good product.

Language is an important element of culture. It should be realized that regional

differences may be subtle.

Subculture is often categorized on the basis of demographics. While part of the

overall culture, these groups often have distinguishing characteristics. An important

consequence is that a person who is part of two subcultures may experience some

conflict.

Values are often greatly associated with age groups because people within an age-

group have shared experiences. Regional influence is significant.


2) Social factors:

Social classes are relatively homogenous and enduring division in a society, which are

hierarchically order and where member should similar values, interests, and

behaviors.

Social classes have several characteristics. First persons within each class have tend to

behave more alike then person from two different social classes. Second, persons are

perceived as occupying inferior or superior position according to their social class.

Third, people’s social class is indicated by a no. of variables, such or occupation,

income wealth, education and value satisfaction rather than single variable.

Fourth, individual, can move from one social class to other up or down during their

lifetime. Social classes show distinct product and preference.

3) Personal factors:

Individual members of families often serve different roles in decisions that ultimately

draw on shared family resources. Some individuals are information gatherers/holders,

who seek out information about products of relevance. These individuals often have a

great deal of power because they may selectively pass on information that favors their

chosen alternatives. Influencers do not ultimately have the power decide between

alternatives, but they may make their wishes known by asking for specific products or

causing embarrassing situations if their demands are not met. The decision maker(s)

have the power to determine issues such as:

Whether to buy;

Which product to buy (pick-up or passenger car?);

Which brand to buy;


Where to buy it; and

When to buy.

Group Influences

Humans are inherently social animals, and individuals greatly influence each other. A

useful framework of analysis of group influence on the individual is the so called

reference group—the term comes about because an individual uses a relevant group as

a standard of reference against which oneself is compared. Reference groups come in

several different forms. The aspirational reference group refers to those others against

whom one would like to compare oneself. Associative reference groups include

people who more realistically represent the individuals’ current equals or near-equals

—e.g., coworkers, neighbors, or members of churches, clubs, and organizations.

Finally, the dissociative reference group includes people that the individual would not

like to be like.

Reference groups come with various degrees of influence. Primary reference groups

come with a great deal of influence—e.g., members of a fraternity/sorority. Secondary

reference groups tend to have somewhat less influence—e.g., members of a boating

club that one encounter only during week-ends are likely to have their influence

limited to consumption during that time period.

Another typology divides reference groups into the informational kind

(influence is based almost entirely on members’ knowledge), normative

(members influence what is perceived to be "right," "proper," "responsible," or

"cool"), or identification. The difference between the latter two categories

involves the individual’s motivation for compliance. In case of the normative


reference group, the individual tends to comply largely for utilitarian reasons

—dressing according to company standards is likely to help your career, but

there is no real motivation to dress that way outside the job. In contrast, people

comply with identification groups’ standards for the sake of belonging—for

example, a member of a religious group may wear a symbol even outside the

house of worship because the religion is a part of the person’s identity.

4) Psychological factors:

Psychological Factors also influence buying behaviour of consumer such as

motivation, perception, learning, belief and attitude.

Perspectives on Consumer Behavior and Motivation:

People considered several perspectives on behavior as a way to understand what

motivates the consumer. Each of these perspectives suggests different things as to

what the marketer should do and what can (and cannot) be controlled

Properties of motivation:

Motivation is described through several properties:

Motivation is composed of energy and direction. A person may or may not

have enough motivation to engage in a given activity.

Motives may be overt, hidden, and multiple. Some motivations are

publicly expressed (e.g., the desire to buy an energy efficient house), while

others (e.g., the desire to look wealthy by buying a fancy car) are not.

Many motivations are driven by the desire for tension reduction (e.g.,

eliminate thirst or hunger).


Motivations can be driven by both internal and external factors.

Motivations may have either a positive or negative valence--people may

either be motivated to achieve something (e.g., get a promotion at work) or

avoid something (e.g., being hospitalized without having adequate

insurance).

Consumers are motivated to achieve goals. Achieving these goals may

require sustained activity over time (e.g., exercising every day for months

or years) as opposed to just taking some action once.

Consumers maintain a balance between the desires for stability and

variety.

Motivation reflects individual differences. Different consumers are

motivated to achieve different things, and it may be difficult to infer

motivations from looking at actual behavior without understanding these

differences in desired outcomes

Perception:

Our perception is an approximation of reality. Our brain attempts to make sense out of

the stimuli to which we are exposed.

Factors in percpetion:

Several sequential factors influence our perception. Exposure involves the extent to

which we encounter a stimulus. Most of this exposure is random—we don’t plan to

seek it out. Exposure is not enough to significantly impact the individual—at least not

based on a single trial In order for stimuli to be consciously processed, attention is

needed. Interpretation involves making sense out of the stimulus. Weber’s Law


suggests that consumers’ ability to detect changes in stimulus intensity appear to be

strongly related to the intensity of that stimulus to begin with.

Several factors influence the extent to which stimuli will be noticed. One obvious

issue is relevance. Consumers, when they have a choice, are also more likely to attend

to pleasant stimuli (but when the consumer can’t escape, very unpleasant stimuli are

also likely to get attention—thus, many very irritating advertisements are remarkably

effective). Surprising stimuli are likely to get more attention—survival instinct

requires us to give more attention to something unknown that may require action. A

greater contrast (difference between the stimulus and its surroundings) as well as

greater prominence (e.g., greater size, center placement) also tend to increase

likelihood of processing.

Attitudes - Consumer attitudes are a composite of a consumer’s (1) beliefs about, (2)

feelings about, (3) and behavioral intentions toward some object within the context of

marketing, usually a brand or retail store. These components are viewed together

since they are highly interdependent and together represent forces that influence how

the consumer will react to the object.

Beliefs - The first component is beliefs. A consumer may hold both positive beliefs

toward an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is

easily spilled and stains papers). In addition, some beliefs may be neutral.

Affect - Consumers also hold certain feelings toward brands or other objects.

Sometimes these feelings are based on the beliefs (e.g., a person feels nauseated when

thinking about a hamburger because of the tremendous amount of fat it contains), but

there may also be feelings which are relatively independent of beliefs.


Behavioral intention - The behavioral intention is what the consumer plans to do

with respect to the object (e.g., buy or not buy the brand). As with affect, this is

sometimes a logical consequence of beliefs (or affect), but may sometimes reflect

other circumstances.

Attitude - Behavior Consistency - Consumers often do not behave consistently with

their attitudes for several reasons:

Ability. He or she may be unable to do so.

Competing demands for resources.

Social influence.

Measurement problems. Measuring attitudes is difficult. In many

situations, consumers do not consciously set out to enumerate how

positively or negatively they feel about mopeds.

Attitude Change Strategies - Changing attitudes is generally very difficult,

particularly when consumers suspect that the marketer has a self-serving agenda in

bringing about this change (e.g., to get the consumer to buy more or to switch brands).

Changing affect - One approach is to try to change affect, which may or may not

involve getting consumers to change their beliefs. One strategy uses the approach of

classical conditioning try to "pair" the product with a liked stimulus. Finally, products

which are better known, through the mere exposure effect, tend to be better liked--that

is, the more a product is advertised and seen in stores, the more it will generally be

liked, even if consumers to do not develop any specific beliefs about the product.

Changing behavior - People like to believe that their behavior is rational; thus, once

they use our products, chances are that they will continue unless someone is able to


get them to switch. One way to get people to switch to one brand is to use temporary

price discounts and coupons; however, when consumers buy a product on deal, they

may justify the purchase based on that deal (i.e., the low price) and may then switch

to other brands on deal later. A better way to get people to switch to our brand is to at

least temporarily obtain better shelf space so that the product is more convenient.

Consumers are less likely to use this availability as a rationale for their purchase and

may continue to buy the product even when the product is less conveniently located.

(Notice, by the way, that this represents a case of shaping).

Changing beliefs - Although attempting to change beliefs is the obvious way to

attempt attitude change, particularly when consumers hold unfavorable or inaccurate

ones, this is often difficult to achieve because consumers tend to resist. Several

approaches to belief change exist:

Change currently held beliefs. It is generally very difficult to attempt to

change beliefs that people hold, particularly those that are strongly held,

even if they are inaccurate.

Change the importance of beliefs.

Add beliefs. Consumers are less likely to resist the addition of beliefs so

long as they do not conflict with existing beliefs.

Change ideal. It usually difficult, and very risky, to attempt to change

ideals, and only few firms succeed.

Personality and consumer behavior:


Traditional research in marketing has not been particularly successful in finding a link

between personality and consumer behavior. Emotion. Emotion impacts marketing

efforts in several ways. One purpose is to get attention to a stimulus (since

emotionally charged individuals tend to be less predictable than calmer ones, there

has been an evolutionary advantage in paying attention to emotion). Secondly,

emotion influences information processing.


CHAPTER - 4

DATA ANANLYSIS

AND

INTERPRETATION

Introduction


Research is a systemic activity to achieve the truth. research includes the procedure of

collecting data and finding the conclusion or truth. Research depends upon the

scientific procedure

Research methodology is a new to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. In it we

study the various steps that are generally adopted by a researcher in studying his

research problem along with the logic behind them.

Research methodology involves activities designed to achieve research objectives. In

order that the appropriate information is collected a detailed research plan must

develop.

We can say that research methodology has many dimensions and research methods do

constitute a part of the research methodology. The scope of research methodology is

wider than research methods. Thus we talk of research methodology we not only talk

of the research methods but also consider the logic behind the methods we use in the

context of our research study and explain why we are not using others so that research

results are capable of being evaluated either by the researcher himself or by others.

Hence, research methodology specifies the method and procedure for conducting a

particular study. It is a plan structure and strategy of investigation conceived so as to

obtain answer to research question and to control variance. The methodology adopted

to meet the research objectives were the collection of data. The sources used for this

were primary and secondary data.

Research can be classified into two broad categories-


1) Basic research –

Basic research is sometimes called fundamental research or pure research .it aims at

expanding the frontiers of knowledge and does not directly involve pragmatic

problem. The essence of basic research is that it addresses itself to more fundamental

questions and not to the problem with immediate commercial potential.

2) Applied research-

Applied research is also called decisional research by some authors. On the other

hand, proceeds with a certain problem, and it specifies alternatives solutions and the

possible outcomes of each alternative. Unlike basic research, it is prompted by

commercial considerations. Though one may be to distinguish between basic research

and applied research ,the distinction between the two sometimes get blurred, several

firm may be engaged in basic research which does not have any immediate

commercial use, however it may be potentially commercial or also the firms would

not have undertaken it at all.

RESEARCH PROBLEM:

Defining research problem allows the researcher to focus on the how, what, which,

why, when, where question needed to guide the information of research objectives

and clarify the pertinent information requirements.

In globalization era, every company is trying to survive and compete in market to

attain desired level of potential customer and customer wants best quality products.

The researcher examined the factor that affects consumer buying decision, before

making decision of specific brand of home appliances. So the researcher had

undertaken the study as


“Consumers Buying Behaviour Towards Electronic Home Appliances.”

RESEARCH DESIGN:-

A research design is the arrangement of conditions for collecting and analysis of data

in a manner that aims to provide relevance to the research purpose with economy in

procedure. It constitutes decision regarding what, when, how much , by what means a

research study could be carried out.

This research was designed to collect raw data and data structures and information

that helped researcher to arrive at some conclusions and that fulfilled the requirements

of objectives so raised.

METHODOLOGY:-

The completion of research involved three phases

First phase - Collection of secondary and primary data. Data was collected from

books, magazines and websites etc. and primary data was collected from the

structured questionnaire and interview.

Second phase - Pilot study, actual primary data collection editing and tabulation of

data.

Third phase - Data analysis using stastical tools, inferences, conclusions, suggestions

based on data collected, editing and tabulation of data.

DATA COLLECTION:-

The data was obtained through two main sources. One was secondary source for data

collection and other was the primary source for data collection.


1. Primary Data:-

Primary data is a fresh and first hand data. Primary Data collected with the help of

structured questionnaire and interview schedule.

This was collected by well-structured questionnaire and survey which was conducted

in Hyderabad city. For this, pilot study was carried out. Some questionnaires were

filled by the respondents. If any problem or mistake arised in the questionnaire, it was

corrected. The questions were presented exactly in the same wording and in the same

order to all respondents.

2. Secondary Data:-

Secondary data are those which have already been collected by some one else and

which have been pass through the stastical process.

Secondary data was collected through magazines, books, internet and published

information from various research journals .secondary data available with certain

limits. It was availed a through publications of governments, periodicals of

organization, newspapers, and books.

QUESTIONNAIRE:-

Questionnaire is one of way through which data can be collected. The questionnaire

was prepared in accordance with the research objectives. Discussion was held with

the research guide and some changes were made accordingly, which resulted into the

detailed drafting of the questionnaire. Then it was tested on selected respondents. The

testing helped in improving the questionnaire by way of eliminating question which


was not required. The improved questionnaire was retested among respondents and

the final draft was prepared.

SAMPLING:-

The term sampling means process of obtaining information about an entire population

by examining only a part of it. Totality of all members is known as population. The

selected or chosen part, which is used to determine the feature of the entire

population, is known as sample.

SAMPLING UNIVERSE:-

The first step in developing any sample design is to clearly define the set of objects,

technically called the universe. The sampling universe of the study was customers in

Hyderabad city.

SAMPLE SIZE:-

This refers to the number of items to be selected from the universe to constitute a

sample. The sample size was 100 respondents (75 men and 25 women) in Hyderabad

city.

SAMPLING UNIT:-

Sampling unit may be a geographical one such as state, district, village etc., or a

construction unit as house, flat or may be a social unit such as family, club, school etc.


The sampling unit of the study was all users of home Appliances in the age group of

30-45 yrs of middle income group in Hyderabad city.

SAMPLING TECNIQUE:-

Sampling technique is used for selection of sample. Non-probability convenience

sampling technique is also used wherever statistical sampling is not possible.

DATA ANALYSIS

The data after collection has to be analyzed in accordance with the outline laid down

for the purpose at the time of developing the research plan. Analysis and

interpretation of data in a general way involves a number of closely related

operations, which are performed with the purpose of summarizing the collected data

that fulfill the research objectives.

The primary data collected from the respondents under study with the help of

questionnaire do not complete study itself. For drawing logical conclusion and for

giving some concrete suggestions these data have to be analyzed.

Facilitating analysis, interpretation and collected data have been appropriately

tabulated. Interpretation refers to the task of drawing inferences from the collected

facts after an analytical or experimental study. Interpretation is essential for the

simple reason that the usefulness and utility of research findings lie in proper

interpretation.


Make the study fruitful on satisfaction level of customer regarding the buying

satisfaction consumers regarding buying preference of various home appliances

companies. For the collection of data there was good cooperation from respondents.

The analysis and interpretation of collected data has been discussed in the

following manner -

1) The question asked and its objective had been discussed in the first part.

2) Table showing responses, tabulation and frequency for each question follow it.

3) Finally, the interpretation drawn from the table had been discussed in brief.

3.2 Data Interpretation

Table no. 3.2.1

Distribution of age group-

Sr.no Particulars Respondents Percentage

1 30-35 37 37%

2 36-40 31 31%

3 41-45 32 32%


(Source- Primary Data)

Graph no. 3.2.1

From the above graph it can be interpreted that, the majority of the respondents i.e. 37

% respondents belongs to 30-35 age group, 32 % respondents belongs to 41-45

group, 31% respondents belongs to 36-40 age group.

Table no. 3.2.2

Monthly Income wise distribution-

Sr no. Particulars Respondents Percentage

1 5000-10000 15 15

2 11000-15000 32 32

3 16000-20000 36 36


37

3132

28

293031

323334

353637

No.of respondents

30-35 36-40 41-45

Age group

respondents

4 21000-25000 14 14

5 25000 above 03 03


Graph no. 3.2.2

From the above graph it can be interpreted that, the majority of the respondents i.e.

36% respondents belongs to Rs.16000-20000 income group, 32% respondents

belongs to Rs. 11000- 15000 income group, 15% respondents to Rs. 5000-10000

income group, 14% respondents belongs to Rs 21000-25000 income group and 3%

respondents belongs to Rs.25000 above income group.

Table no. 3.2.3

Factors affecting for purchase of home appliance-

Sr.no Factors 1st

rank

2nd

rank

3rd

rank

4th

rank

5th

rank

Weighted

score


15

3236

14

3

0

5

10

15

20

25

30

35

40

No. of respondents

5000-10000 11000-15000

16000-20000

21000-25000

25000above

Income group

respondents

1 Brand name 17 48 26 4 5 368

2 Price 53 16 16 10 05 402

3 Quality 27 23 38 9 3 362

4 Offers/discounts 3 5 11 58 23 207

5 Post purchase

service

0 8 9 19 64 161


Graph no. 3.2.3

From the above graph it can be interpreted that, as per majority of responses and

stastical calculation, the rank given to factors which affects buying decision are- 1st

rank given to price, 2nd rank given to brand name, 3rd given to quality, 4th and 5th rank

given to offers/ discounts, post purchase service respectively.

Table no. 3.2.4


0

1

2

3

4

5

6

Brand name Price Quality Offers/discounts Post purchaseservice

Factors

Ran

k

rank

Motivator for purchase of home appliance -

Sr. no Particulars No. of respondents Percentage

1 Children 33 33%

2 Spouse 40 40%

3 Friends 14 14%

4 Relatives 12 12%

5 Retailers(salesman) 1 1%


Graph no. 3.2.4

From the above graph it can be interpreted that, 40% respondents are motivated by

their spouse in buying decision , 33% respondents opted for children, 14%

respondents motivated by friends, 12 % respondents motivated by relatives and very

few respondents i.e. 1% motivated by retailers.


33

40

1412

10

5

10

15

20

25

30

35

40

45

Motivating factors

No

.of

resp

on

den

ts

No. of respondents

Table no. 3.2.5

Source of information which affects purchase of home appliance

Sr no Particulars Respondents Percentage

1 T.V ads 63 63

2 Hoardings 13 13

3 Newspapers 17 17

4 Exhibitions/fares 5 5

5 Magazines 2 2


Graph no. 3.2.5

From the above graph it can be interpreted that, maximum no. of respondents i.e. 63%

opted TV ads as their source of information, 17 % opted for newspaper, 13%

respondents chosen hoardings as their source of information, while very few

respondents i.e. 5% and 2% opted for exhibitions/ fares, magazines respectively.


63

13 17

5 20

10203040506070

Sources of information

No.

of r

espo

nden

ts

respondents

Table no. 3.2.6

Features affecting for purchase of any branded TV set-

Sr.n

o

Factors 1st

rank

2nd

rank

3rd

rank

4th

rank

5th

rank

Weighted

score

1 Picture quality 61 30 3 4 2 444

2 Sound quality 27 54 13 2 4 398

3 Slimness of screen 7 6 40 38 9 264

4 Size( inches) 2 3 29 46 20 219

5 co lour 3 7 15 10 65 173


Graph no. 3.2.6


stastical calculation, the rank given to features which affects buying decision of


0

1

2

3

4

5

6

Picture quality Sound quality Slimness ofscreen

Size( inches) co lour

Features

Ran

k

rank

branded TV set are- 1st rank given to picture quality, 2nd rank given to sound quality,

3rd given slimness of screen, 4th and 5th rank given to size(inches)and co lour

respectively.

Table no. 3.2.7

Features affecting for purchase of any branded refrigerator-

Sr.no Factors 1st

rank

2nd

rank

3rd

rank

4th

rank

5th

rank

Weighted

score

1 Capacity 57 22 3 16 2 416

2 Energy efficiency 25 21 5 49 0 322

3 Co lour 12 50 11 20 7 340

4 Storage space 5 6 62 12 15 274

5 LED panel 1 1 19 3 76 148


Graph no. 3.2.7




branded refrigerator are- 1st rank given to capacity , 2nd rank given to colour , 3rd given

energy efficiency, 4th rank given to storage space and 5th rank given to LED touch

panel.

Table no. 3.2.8

Features affecting for purchase of any branded washing machine -

Sr.no Factors 1st

rank

2nd

rank

3rd

rank

4th

rank

5th

rank

Weighted

score

1 Washing capacity 70 2 7 4 17 404

2 Soak time 16 6 56 8 14 302

3 Weight 6 15 15 48 16 247

4 Colour 1 27 13 25 34 236



0

1

2

3

4

5

6

Capacity Energy efficiency Co lour Storage space LED panel

Features

Ran

k

rank


Graph no. 3.2.8

From the above graph it can be interpreted that, as per majority of responses, the rank

given to features which affects buying decision of branded washing machine are- 1st

rank given to washing capacity , 2nd rank given to energy efficiency , 3rd given soak

time , 4th rank given to weight and 5th rank given to colour.

Table no. 3.2.9

Features affecting for purchase of any branded air conditioner-

Sr.no Factors 1st

rank

2nd

rank

3rd

rank

4th

rank

5th

rank

Weighted

score

1 Cooling system 69 13 10 7 1 442

2 Size 7 48 20 18 7 330

3 Colour 4 5 10 50 31 201


0

1

2

3

4

5

6

Washingcapacity

Soak time weight Colour Energy efficiency

Features

Ran

k

RANK


5 Auto turn off 1 6 22 19 52 185


Graph no. 3.2.9



branded air conditioner are- 1st rank given to cooling system, 2nd rank given to energy

efficiency, 3rd given to size, 4th and 5th rank given to colour and auto turn off

respectively.

Table no. 3.2.10

Features affecting for purchase of any branded microwave-

Sr.n

o

Factors 1st

rank

2nd

rank

3rd

rank

4th

rank

5th

rank

Weighted

score

1 Capacity 10 57 14 14 5 353


0

1

2

3

4

5

6

Cooling system Size Colour Energy efficiency Auto turn off

Features

Ran

k

RANK

2 Space 5 12 28 46 9 258

3 Heating system 78 9 6 4 3 455

4 Cavity 5 15 44 25 11 278

5 Auto turn off 2 7 8 11 72 156


Graph no. 3.2.10



branded microwave are- 1st rank given to heating system, 2nd rank given to capacity,

3rd given to cavity, 4th and 5th rank given to space and auto turn off respectively

Table no. 3.2.11

Influence of retailers on motivation of consumers-


0

1

2

3

4

5

6

Capacity Space Heating system Cavity Auto turn off

Features

Ran

k

RANK

Sr. no Particulars No. of respondents Percentage

1 Strongly motivated 12 12

2 Motivated 47 47

3 Fairly motivated 32 32

4 Not motivated 9 9


Graph no. 3.2.11


05

101520253035404550

No.of respondents

Stronglymotivated

Motivated Fairlymotivated

Notmotivated

Level of motivation

No. of respondents

From the above graph it can be interpreted that, the majority of the respondents i.e.

47% feel that they are motivated by the information given by retailers, 32%

respondents chosen fairly motivated, 12% feel that they are strongly motivated, while

9% feel that they are not motivated by information given by retailers.


CHAPTER 5

CONCLUSIONS

AND

SUGGESTIONS

INTRODUCTION

The research never gets completed without drawing some conclusions or achievement

of any result. This applicable to all types of researcher, to end up with some

constructive conclusions and suggestions. Some data is indirectly collected by


observations where resections speak more than words these observations also plays

very important part in conducting something. The actual findings from the study

which emphasizes more on numbers but this is the actual information so it cannot be

eliminated.

The findings for this research were drown by analyzing the primary data and, from

this some conclusions were drawn.

CONCLUSIONS

1) People in Hyderabad city are highly aware about different brands of home

appliances.

2) People in the age group 30-35 are mostly educated and having sound

knowledge of home appliances of different companies.

3) It is observed that, the factors which affects buying decision for purchase of

home appliance are- 1st rank given to price, 2nd rank given to brand name, 3rd

given to quality, 4th and 5th rank given to offers/ discounts, post purchase

service respectively.

4) Majority of respondents are motivated by their spouse in buying decision.

5) Very few respondents are motivated by information given by retailers.

6) Maximum no. of respondents opted TV ads as their main source of

information.

7) Most of the respondents given priority to picture quality and sound quality

when buy any branded TV set.


8) Majority of respondents given 1st rank to capacity , 2nd rank to colour , 3rd to

energy efficiency, 4th rank to storage space and 5th rank to LED touch panel

when buy any branded refrigerator.

9) Most of the respondents given first priority to washing capacity when buy any

branded washing machine.

10) Cooling system and energy efficiency are top most features considered by

most of the respondents for purchase of branded air conditioner.

11) Price is the most important influencing factor for purchase of home

appliances.

12) Post purchase service is the least important factor in buying decision.

13) TV advertisements play a major role in the selection of brand of home

appliance.

SUGGESTIONS –

1) The dealers should try to inform potential customers to various media like

newspaper and local cable channel.

2) Training to the dealers, salesman at regular intervals by the company so that

they should provide the expected information and service.

3) Special festival gifts and offers should be offered by retailers.

4) The companies should mainly focus on prices and maintain reasonable prices

to combat competition.

5) Developing product according to consumer choices will lead to increase in

market share.


APPENDICES

APPENDIX -A


QUESTIONNAIRE

_____________________________________________________________________

___

1) Name : - ___________________________________________

2) Address : - ___________________________________________

3) Age (yrs)

a. 30-35 b. 36-40 c. 41-45

4) Gender

a. Male b. Female

5) Marital status

a. Married b. Unmarried

6) Qualification

a. SSC b. HSC

c. Graduate d. Postgraduate

7) Occupation

a. Professional b Businessman c. Service

8) Monthly income

a. 5000- 10000 b.11000-15000

c. 16000-20000 d.21000-25000

e. 25000 above

9) Family structure

a. Nuclear b. Joint

10) How many brands of home appliances you remember and recall at this time?


___________________________________________________________________

___________________________________________________________________

11) Name the companies of home appliances you already have?

1) Television -

2) Refrigerator -

3) Washing machine -

4) Air conditioner -

5) Microwave -

12) What factors do you consider when you take decision for purchase of home

appliances? (Rank 1-5)

a. Brand name

b. Price

c. Quality

d. Offers/ discounts

e. Post purchase service

13) Who motivates you to purchase of home appliance mostly?

a. Children

b. Spouse

a. Friends

b. Relatives

c. Retailers (salesman)

14) Which source of information you use mostly when you purchase any home

appliance?

a. T.V Advertisement

b. Hoardings


c. Newspapers

d. Exhibitions/ fares

e. Magazines

15) What features you will consider when you buy any branded TV set? (Rank 1-5)

a. Picture quality

b. Sound quality

c. Slimness of screen

d. Size (inches)

e. Colour

16) What features you will consider when you buy any branded refrigerator? (Rank 1-

5)

a. Capacity

b. Energy efficiency

c. Colour

d. Storage space

e. LED touch panel

17) What features you will consider when you buy any branded washing machine?

(Rank 1-5)

a. Washing capacity

b. Color

c. Soak time


d. Weight

e. Energy efficiency

18) What features you will consider when you buy any branded air conditioner?

(Rank 1-5)

a. Cooling system

b. Size

c. Co lour

d. Energy efficiency

e. Auto turn off

19) What features you will consider when you buy any branded microwave? (Rank 1-

5)

a. Capacity

b. Space

c. Heating system

d. Cavity

e. Auto turn off

20) Up to which extent you are motivated with the information provided by retailers?

a. Strongly motivated

b. Motivated

c. Fairly motivated

d. Not motivated


APPENDIX -B

BIBLIOGRAPHY


Books referred-

1. Kotler Philip “Marketing management” (Tenth Edition) Prentice Hall of India Pvt

Ltd, New Delhi

2. C.R. Kothari, “Research Methodology”, second revised edition, New age

publication.

3. Michael R. Solomon, “Consumer Behaviour”, seventh edition, Prentice-Hall of

India pvt. Ltd, 2007

Internet:

www.ebuyguru.com

www.indiahousing.com

www.financial express.com

Newspapers:

The Hindu,

The Times of India,

The Economic Times.


Consumers Buying Behaviour Towards Electonic Home Appliances

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