Final rohith

1

1. Executive Summary

This paper give a summarized view about the parameters which influences the buying behaviour

of customers/consumers and their involvement in the process.

The Ambuja cements being a profit and customer oriented company that provides fresh and quality

cement has a better market in Ernakulam (Kerala) and in Kotayam (Kerala), Comparing the sales

in Thrissur(Kerala). On this basis a primary data was collected from the dealerships in Thrissur

where Ambuja cements were sold and the samples were people who was coming to buy cement.

Also the effect of Sales orientation Customer orientation (SoCo) on brand trust was also calculated,

for this the samples were the dealers and the people who were involved in selling the cement.

The data collection was done using two surveys that measured the various aspects that were crucial

for a customer/consumer to choose a particular brand of cement.

The collected data were analysed through IBM SPSS software and cross tabulation were done to

understand the various aspects and the link between various parameters that contribute to the

buying behaviour of cement in the cement market.

From the data collection and in-store experience it was easy to identify the Age group, quality

perception, Availability, Service and various factors that lead to purchase of a particular brand of

cement were studied. Another major problem faced by the company is the lack of involvement of

direct customers in the cement buying process most of the customers were contractors who had

their own preferences. So it’s important to have direct consumers to bring into the buying process

of cement.

Already the company is trying hard to locate the IHB (independent house builders) and conduct

classes for them. Engineers would visit the sites and help them out. But these strategies begin only

after they start construction and the consumers may have chosen their brand of cement. So its

better and useful to get the consumer at the early stage of study. For that a recommendation is put

forwarded

2

Toll free number

Mobile phones and land phones are readily available and its being used by the rural market even.

Nowadays people use their technology as a major tool to make them comfortable. When a

consumer is about to build a house he will be having a lot of questions, the company can use its

expertise to answer all the questions and with that we are having a direct contact with the customer,

by this we could help to them to make a better choice. The company can also keep a trade relation

with the consumer itself so the involvement of a third party will be minimal.

3

2. Introduction

Broad problem area or management dilemma

Sales of Ambuja cements is less when compared with its competitors in Thrissur district. Also the

involvement of consumers is very less in the buying behaviour of cement.

Background information

Ambuja Cements Ltd, a part of the global conglomerate LafargeHolcim, is one of the leading

cement companies in the Indian cement industry.

Operating for over 25 years, Ambuja has proved to be the best cement for construction and the

best cement manufacturing company in India with its uniquely sustainable development projects.

Its environment friendly initiatives have played a key role in India’s efforts to become a green

state. The sustainable constructions and renewable energy projects undertaken by it have a lion’s

share in creating a blueprint for sustainable development in India’s bright future.

By virtue of its hassle-free customer support & home building solutions and its unique cement

sustainability initiatives such as True Value and Water Positive, Ambuja’s business has seen a

rapid growth in the past decade. The company has a significant presence across western, eastern

and northern markets of India as a brand for Ordinary Portland Cement (OPC) and Pozzolana

Portland Cement (PPC).

Currently, Ambuja has a cement capacity of 29.65 million tonnes with five integrated cement

manufacturing plants and eight cement grinding units across the country. It is the first Indian

cement manufacturer to build a captive port with four terminals along the country’s western

coastline to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement

to its customers.

Ambuja is supplying 25000 tons of cement in Kerala, in that 4500 tons is the sales in Thrissur

district, where the total cement consumption is around 80000 tons. So when these figures are

compared it is clearly understood that the sales of Ambuja cements is very less when compared to

its competitors. This is can be mainly because the consumers who are involved in the construction

4

are not having any idea about cement quality, which all are the premium companies of cement and

unawareness about the cost involved.

5

3. Preliminary details

3.1 Expert advice

Initially the idea about the buying behaviour was the 5 step process according to theories, but with

the discussion with the company guide Mr Boby Sebastian I could realise that there are lot

differences in theory and practice. More detailed view of cement market was briefed by the guide.

More discussions were held with the college guide Mr Jackson D’silva whose views on the topic

was valuable.

3.2 Literature Review

A lot of studies has been done on this basis, which analyses the parameters that influences the

buying behaviour in the cement market.

3.2.1 Anholt (1998) the paper suggests the concept of nation brand to develop a strong brand

equity related to a product or service. To make the initiative successful one needs to highlight on

the place importance. It is being observed that sometimes people have tremendous preference

towards a product coming from a specific market or country. For example electronics product

made in Japan has lots of regards among prospective consumers and selling of these products in

other parts of the world become much easier because of the place weightage that it carries.

Considering this specific logic we can say that in case of cement industry also, if any specific area

or region has comparative advantage in case of cement production then it should use it properly to

develop a positive brand image among the target group of consumers. This will help to develop a

long lasting brand image not only in that market but also in other areas also.

3.2.2 Keller (2001) the paper focuses on customer based brand equity model. Since, the consumers

are ultimate users of a brand. To develop a customer based brand equity each and every customer

are trying to get specific information about the brand identity, brand meaning, brand response and

brand relationships. If the customers are able to get proper information about these areas, then

surely it will influence their purchasing intention.

6

3.2.3 Hedingetal. (2009) inside this book the authors discusses various issues related to brand

management and develop a comprehensive approach related to branding a specific product or

service. Among these economic approach, identity approach, consumer based approach, the

personality approach, the relational approach, the community approach and the cultural approach

are playing a crucial role in influencing the consumer decision to choice a specific product or

service.

3.2.4 Silveira (2011) this paper attempts to develop a linkage between brand identity and its impact

on consumer’s purchasing decision. It says that creating a brand identity around a product or

service is very important and along with that it should be flexible enough with changing

environment of business. The roles of consumers are also equally important and sometimes it is

termed that consumers are co – creators of brand identity. Thus, while developing a proper brand

identity these two factors like changing environmental impact and changing consumer mind sets

need to be considered so that it will create a positive image in the mind of the consumers. This

subsequently helps to establish a strong linkage between the brand and its target group of

consumers.

3.1.5 Chowdhury etal. (2012) paper discusses the role of opinion leaders in motivating consumer

decision to purchase a specific cement brand. Looking at the technical aspects of cement product

m2ost of the consumers go for extensive information search while making a final purchase.

Whiling doing so, role of opinion leaders become important. The opinion leaders in the form of

construction engineers, architects and even masons plays a crucial role regarding consumer’s

purchasing decision. So, it has been advised that cement companies should develop their marketing

strategies in such a manner so that target group consumers can be influenced by this opinion

leaders.

3.2.6 Saranya & Kavitha (2014) the authors conducted a study in Coimbatore City to understand

the customer perception towards cement brands. They noticed that while choosing a specific

cement brand price, quality and availability of the said brand in the study district is very crucial.

Thus, it has been concluded in the study that when the market is very competitive, these factors

should play a crucial role and cement companies should develop a proper distribution network so

that non availability should not become a problem while choosing a brand.

7

From the literature review it has been identified that certain factors are directly or indirectly

affecting the sales of cement in the buying behaviour.

Then for the further study of the same a survey was conducted in 10 different dealership in and

around Thrissur district (Kerala). A sample size of 116 respondents responded to the questionnaire

among which only 90 of them were acceptable.

The study focused on why a particular customer/consumer is buying a particular brand of cement.

For finding the same a questionnaire was prepared and distributed to the population that include

the following customers.

1. Consumer

2. Contractor

3. Mason

4. Institutional Buyers

The customers were asked to fill up the questionnaire and mark the correct option that suits their

situation.

The sample of the questionnaire is attached at the end of the study

8

3.3 Theoretical Framework

Figure 3.3

The theoretical frame work shows the effect of different factors that finally leads to the buying

behaviour of customer/consumer, here we are testing whether the SoCo (sales orientation customer

orientation have any effect on the brand trust and that will in-turn affect the Buying behaviour.

Quality

Availability

Service

Brand Trust

Brand Image

ADD & PRO

SoCo

Buying Behaviour

9

3.4 Hypothesis Formulated

1. Alternate Hypothesis: Sales orientation customer orientation has a significant effect on the

brand trust of the cement company

H1: µ1 ꞊ x͞͞͞͞͞͞͞͞͞͞͞͞͞͞͞͞

Null Hypothesis: There is no significant effect of Sales orientation Customer orientation on the

brand trust of the cement company

H0: µ1 ≠ x

10

4. Research Design

4.1 Purpose

To conduct an exploratory study and obtain an exhaustive list of parameters that affect the buying

behaviour in the cement market and those parameters where Ambuja cements need to improve so

as to improve their sales in Thrissur district.

4.2 Type of Study

Then the most important parameters will be considered under study which will lead to the shift in

customer preference, leading to a conclusive research – descriptive study

4.3 Study setting and Time Horizon

The type of investigation carried out is co-relational under a non-contrived setting. The research

was conducted in a cross sectional time horizon.

4.4 Population

Population include all the people who come to buy Cement and people who are into any sort if

construction

4.5 Sample

Sample is defined as the representative elements that are picked from the population, in this

research study the sample is selected through convenience sampling technique. The sample include

various contractors’ masons institutional buyers and individual house builders. The collected data

was refined and then from 117 data collected 90 was selected for the research study

4.6 Sampling Design

The study required samples from a survey, were random sampling method is being used.

Sample population for the survey are people who are using cement for any construction purpose.

For the purpose of SoCo the samples were the people who were involved in the selling process.

11

4.7 Data Collection Methods

Primary data was collected through literature reviews

Survey 1 questionnaire method will determine the type of customer the brand and the reason for

choosing the particular brand.

Survey 2: A survey was used to calculate or measure the brand trust of the product.

Survey 3: A survey was used to calculate the Sales orientation of the sales people towards the

customer and the scale used was SoCo scale

The above mentioned surveys are attached at the end if the report in the annexure.4

4.8 Research Instrument

Structured questionnaire and interview method is proposed to be used. Pre-test statements designed

on an interval scale and a Likert scale to measure the influence of various factors in buying decision

in cement market. The study consist of a primary research, when talking about the primary research

it includes, observation, preliminary interviews and surveys.

The primary data was collected in the form of questionnaires to identify those variables that the

customer relies when he/she is buying cement

4.8.1 Tool 1 SoCo Scale

The SoCo scale was used to calculate the Sales orientation of the sales people, the scale is obtained

from Handbook of Marketing scales which is used to study and measure various concepts in

Buying Behaviour by William O Bearden and Richard G Netemeyer

4.8.2 Tool 2 Brand Trust scale

The Scale was taken from a study “Proposal for a Multidimensional Brand Trust Scale” by

Patricia Gurviez. The brand trust was calculated as a cumulative score of four major aspects

1. Credibility 2. Integrity 3.Benevolence 4.Commitment

.

12

4.9 Variables

The independent variables are as follows

1. Quality

2. Availability

3. Price

4. Service

5. Brand image

6. Advertisement and promotion

7. Brand Trust.( with respect to buying behaviour)

8. SOCO ( Sales orientation Customer orientation)

The dependent variable is

1. Buying behaviour

2. Brand Trust

4.10 Data Analysis

The data collected from the survey showed the factors that affected the sales of cement in the

cement market then we analysed the situation of Ambuja cements using the cross tabulation

method and the results were drawn

13

5. Analysis

5.1 Calculating Validity, Reliability and Normality of SoCo Scale and Brand trust scale.

5.1.1 Validity

The questioners were taken from valid sources and studies. The SoCo scale was taken from the

Marketing Handbook which provides a lot of such scales to measure various aspects of the

customer buying behaviour. The book is written by William O Bearden and Richard G Netemeyer

The book has been used to conduct several surveys in marketing field.

The Brand trust scale was taken from a research study that was done on “Proposal for a

Multidimensional Brand Trust Scale” which was used to calculate the brand trust in consumers on

different brands they prefer calculating the Credibility Integrity benevolence and Commitment.

Results show a strong positive relationship between trust and consumer-commitment.

5.1.2 Reliability

The reliability of SoCo was calculated

The Cronbach’s alpha was calculated to be .531 which says it has a moderate reliability.

The reliability of the brand trust was calculated

Reliability Statistics

Cronbach's

Alpha

N of

Items

.531 24

Reliability Statistics

Cronbach's

Alpha

N of

Items

.872 16

14

The Cronbach’s alpha score of brand trust was calculated to be .872 so it says that the brand trust

is having a better reliability

5.1.3 Normality

The normality of the SoCo Scale was calculated and the graph was plotted.

Fig 5.1.3.1 Normal distribution curve of SoCo Scale

15

Descriptive Statistics

N Mean Std.

Deviation

Skewness Kurtosis

Statistic Statistic Statistic Statistic Std.

Error

Statistic Std.

Error

SOCO 90 159.4889 14.13836 1.133 .254 .788 .503

Valid N (list

wise) 90

Table 5.1.3.1 Descriptive analysis of SoCo

The acceptable range of skewness is considered from the range of -2 to +2 so the value is within

the range. But the skewness is slightly more because of the response given by the sales people

were not true, even though it was observed from the in-store experience.

The normality of Brand trust scale

Fig 5.1.3.2 Normality of the brand trust score

16

Table 5.1.3.2 descriptive analysis of Brand trust scale

The normality curve is slightly skewed, but still it falls between the acceptable range of -2 to + 2.

The skewness occurred due to the sampling error, the dealerships were the data was collected were

basically dealership of Ambuja cements having the sales of other brand cements.

5.2 Age group

Age Group

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid

20-30 2 2.2 2.2 2.2

31-40 24 26.7 26.7 28.9

41-50 42 46.7 46.7 75.6

51-60 18 20.0 20.0 95.6

61-70 3 3.3 3.3 98.9

71 and above 1 1.1 1.1 100.0

Total 90 100.0 100.0

Fig 5.2 Frequency distribution of age group

From the above frequency distribution we could understand that the majority of the customers

belong the age group of 41-50 years of age they constitute around 46 percent, 26 percent of the

Descriptive Statistics

N Mean Std.

Deviation

Skewness Kurtosis

Statistic Statistic Statistic Statistic Std.

Error

Statistic Std.

Error

Brand trust

score 90 26.5556 5.41349 .484 .254 .055 .503

Valid N

(listwise) 90

17

respondents are from the age group of 31-40 and the 3rd majority is the respondents belonging to

the age group of 51-60.

Fig 5.2 Pie chart representation of Age group of people

5.3 Types of customer

Type of Customer

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid

Consumer 12 13.3 13.3 13.3

Mason 2 2.2 2.2 15.6

Contractor 68 75.6 75.6 91.1

Institutional

Buyer 8 8.9 8.9 100.0

Total 90 100.0 100.0

Table 5.3 Frequency distribution of types of customer

18

Figure 5.3 Pie chart representation of types of customer

From the above tabulation and pie chart obtained from the data collection process we can say that

the involvement of a consumer in buying a particular brand of cement is very narrow. From the

above we can say that 75.6 percent of the respondents from 90 were contractors, only 13.3 percent

of them were direct consumers. So the company should increase their promotional activity in order

to get more Consumer oriented.

19

Table5.4 Time spent inside the store

Fig 5.4 pie chart showing time spent inside the store

5.4 Time spent inside the store

Time Spent

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid

0-10 8 8.9 8.9 8.9

11-20 8 8.9 8.9 17.8

21-30 1 1.1 1.1 18.9

31-40 1 1.1 1.1 20.0

Phone Call 72 80.0 80.0 100.0

Total 90 100.0 100.0

20

From the data collected it was clear and evident that the number of customers visiting the stores

was very minimal. From the pie chart it can be understood that 80 percent of the Customers did

there order through phone calls and only 20 percent of the customers came to the store for buying

cement.

5.5 Quality

Quality

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid

Strongly Agree 67 74.4 74.4 74.4

Agree 15 16.7 16.7 91.1

Neutral 6 6.7 6.7 97.8

Disagree 1 1.1 1.1 98.9

Strongly

disagree 1 1.1 1.1 100.0

Total 90 100.0 100.0

Table 5.5 Frequency distribution of people who preferred quality a major factor.

21

Fig 5.5 Pie chart representation of people who preferred Quality as a major factor

From the above figure it is clear and evident that from the total 90 respondents 91 percent of them

made quality a prime requirement when they are buying cement. So the data available data it can

be said that the quality factor is one of the prime factor people are looking forward when they are

going to buy cement.

A cross-tabulation was done on the basis of Ambuja quality and quality factor that was rated by

the customer

Next we cross tabulate the Quality factor with the results of Ambuja quality

22

Quality * Ambuja Quality Cross-tabulation

Count

Ambuja Quality Total

Strongly

Agree

Agree Neutral Disagree Strongly

disagree

Quality

Strongly Agree 35 23 6 3 0 67

Agree 0 11 4 0 0 15

Neutral 1 1 4 0 0 6

Disagree 0 1 0 0 0 1

Strongly disagree 0 0 0 0 1 1

Total 36 36 14 3 1 90

Table 5.5.1 Cross-tabulation Frequency of Quality and Ambuja quality

Fig 5.5.1 Bar graph representation Quality and Ambuja quality

Among the 67 respondents who strongly go for quality as a prime factor, 86 Percent of them say

Ambuja quality is supreme. So we can conclude that the quality of Ambuja cements is proved to

be good and people do accept that fact that Ambuja cements serves better quality cement.

23

5.6 Availability

Availability

Frequency Percent Valid

Percent

Cumulative

Percent

Valid

Strongly

Agree 8 8.9 8.9 8.9

Agree 49 54.4 54.4 63.3

Neutral 23 25.6 25.6 88.9

Disagree 10 11.1 11.1 100.0

Total 90 100.0 100.0

Table 5.6 Frequency distribution of customers who preferred Availability as a major factor

Fig 5.6 Pie chart representation of customers who preferred Availability as a major

factor

From the above table and pie chart it can be understood that among the 90 respondents 57 of the

respondents took availability as a factor for selecting their brand of cement.

Now we cross tabulate the Ambuja cements availability with the Availability factor.

24

Availability * Ambuja Availability Crosstabulation

Count

Ambuja Availability Total

Strongly

Agree


disagree

Availabil

ity

Strongly

Agree 0 3 2 3 0 8

Agree 2 21 14 7 5 49

Neutral 8 11 2 1 1 23

Disagree 6 4 0 0 0 10

Total 16 39 18 11 6 90

Table 5.6.1 Availability * Ambuja Availability Cross tabulation

Among the 8 respondents who strongly go with availability as a factor for purchase 37.5 percent

said availability of Ambuja cement is excellent and another set of 37.5 percent disagree with it.

But among 49 respondents who says availability is also a factor for purchase, 4 percent say the

availability of Ambuja cement is excellent and 42 percent of them say availability of Ambuja

cement is good but not up to the expected level.

From these results the company should look to improve in the availability factor.

25

Fig 5.6.1 Availability * Ambuja Availability Cross-tabulation

26

5.7 Price

Price

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid


Agree 34 37.8 37.8 43.3

Neutral 31 34.4 34.4 77.8

Disagree 18 20.0 20.0 97.8

Strongly

disagree 2 2.2 2.2 100.0

Total 90 100.0 100.0

Table 5.7 Frequency distribution of people who prefer price as a major factor

Fig 5.7 pie chart representation of people who prefer price as a major factor

27

From the above tabulation it is clear that 39 respondents from the total 90 respondents were price

conscious, 31 respondents were on a neutral stand and 20 of the respondents were not at all price

conscious when they were buying cement.

Next we will cross-tabulate the price factor and Ambuja cements price factor

Price * Ambuja Price Cross-tabulation

Count

Ambuja Price Total

Strongly

Agree

Agree Neutral Disagree

Price

Strongly Agree 1 1 1 2 5

Agree 1 13 10 10 34

Neutral 9 10 9 3 31

Disagree 9 6 1 2 18

Strongly

disagree 1 0 0 1 2

Total 21 30 21 18 90

Table 5.7.1 Price * Ambuja Price Cross-tabulation

Among 90 respondents on 43.3 percent are highly price conscious, in that 43.3 percent only 41

percent agree that the price of Ambuja cement is good, 28 percent stays neutral and 30.7 percent

of them says it’s highly priced. So Ambuja has to work on its pricing.

28

Fig 5.7.1 Price * Ambuja Price Cross-tabulation

5.8 Brand image

Brand Image

Frequency Percent Valid

Percent

Cumulative

Percent

Valid


Agree 30 33.3 33.3 61.1

Neutral 21 23.3 23.3 84.4

Disagree 13 14.4 14.4 98.9

Strongly

disagree 1 1.1 1.1 100.0

Total 90 100.0 100.0

Table 5.8 Frequency of people who prefer brand image as a major factor

29

Fig 5.8 pie chart representation of people who prefer brand image as a major factor

From the above tabulated data and the pie chart we can say that customers have a perception about

their brand. 55 respondents say brand image is needed, while 21 respondents are neutral with the

factor, while 14 respondents out of 90 respondents disagree with the factor.

Next the brand image factor is cross-tabulated with Ambuja’s brand image to understand people

perception about the brand.

.

30

Brand Image * Ambuja Brand image Cross-tabulation

Count

Ambuja Brand image Total

Strongly

Agree


disagree

Brand Image

Strongly Agree 13 10 0 1 1 25

Agree 6 19 5 0 0 30

Neutral 4 9 8 0 0 21

Disagree 2 4 7 0 0 13

Strongly

disagree 0 1 0 0 0 1

Total 25 43 20 1 1 90

Table 5.8.1 Brand Image * Ambuja Brand image Cross-tabulation

From the above tabulation 61 percent of the total respondents consider brand image as a factor for

making a purchase among that 87 percent of respondents are saying Ambuja is having a high brand

image. 23 percent of people stayed neutral to brand image in that 61.9 percent respondents also

agree that Ambuja cements is having a good brand image. So brand image of Ambuja cements is

fairly better comparing its competitors.

31

Figure 5.8.1 Brand Image * Ambuja Brand image Cross-tabulation

5.9 Service

Service

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid

Strongly

Agree 7 7.8 7.8 7.8

Agree 30 33.3 33.3 41.1

Neutral 48 53.3 53.3 94.4

Disagree 5 5.6 5.6 100.0

Total 90 100.0 100.0

Table 5.9 Frequency distribution of people who prefer Service as a major factor

32

Fig 5.9 pie chart representation of people who prefer Service as a major factor

From the above tabulated data it cannot say whether service plays an important role in the buying

behavior of cement because the majority of 53.3percent of respondents have opted neutral, while

41 percent of the respondents said service is a factor for purchasing a particular brand of cement

while 5 of the respondent disagree with it. So if the service factor is considered by the company

then it won’t negatively affect the brand since the people disagreeing is very minimal.

Now again cross-tabulate the brand image of Ambuja cements with the brand image factor to

analyze the perception of respondents.

33

Service * Ambuja Service Cross-tabulation

Count

Ambuja Service Total

Strongly

Agree


disagree

Service

Strongly

Agree 3 2 2 0 0 7

Agree 9 10 9 2 0 30

Neutral 13 11 21 2 1 48

Disagree 0 3 2 0 0 5

Total 25 26 34 4 1 90

Table 5.9.1 Service * Ambuja Service Cross-tabulation

From the 90 respondents 41 percent of them said service is a major factor in selecting a particular

brand among that 64 percent of the respondents said they are happy with the service provided by

the Ambuja cement. In the 90 respondents 53 percent of them was neutral towards selecting service

as a factor for their reason for selecting their particular brand. In that 53 percent 50 percent believe

Ambuja service is better

34

Fig 5.9.1 Service * Ambuja Service Cross-tabulation

5.10 Advertisement and promotion

Advertisement and promotion is an important factor in buying behaviour as it catches the attraction

of direct consumers. But since the majority samples of my data collection are contractors and

engineers or even workers they were giving a negative result as a response that can be observed

from the frequency distribution below.

Table 5.10 frequency distribution of people who preferred Advertisement and promotion

as a factor

Advertisement and promotion

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid

Agree 2 2.2 2.2 2.2

Neutral 13 14.4 14.4 16.7

Disagree 50 55.6 55.6 72.2

Strongly

disagree 25 27.8 27.8 100.0

Total 90 100.0 100.0

35

Fig 5.10 histogram showing the frequency distribution of people who preferred

Advertisement and promotion as a factor

From the distribution we can see that among the data collected 55 percent of the customers does

not see advertisements and promotions and they were never a factor for making a purchase. Since

they are customers and majority of them are contractors they are not able to sit and watch television

or print media, but if the company could focus on consumers then advertisement and promotion

could be a major factor.

5.11 Brand trust

The parameter of brand trust was measured on the following qualities.

a. Credibility

b. Integrity

c. Benevolence

d. Commitment

36

Questions were asked on the above mentioned qualities and the responses were taken from

the respondents and was scaled in an interval scale and then their degree was calculated

and converted to a nominal data.

Degree of Brand Trust

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid

High 12 13.3 13.3 13.3

moderate 59 65.6 65.6 78.9

Low 19 21.1 21.1 100.0

Total 90 100.0 100.0

Table 5.11 Frequency distribution of people who preferred Brand trust as a major factor

Fig 5.11 Pie chart representation of people who preferred Brand trust as a major factor

Among the 90 respondents 65.6 percent have a moderate level of brand trust, and 21 percent have

low degree of brand trust, only 13.3 percent of the total respondents have high degree of brand

trust.

37

Now we cross tab the cement company and degree of brand trust to analyse which company has

more respondents for high and moderate brand trust.

Cement Company * Degree of Brand Trust Cross-tabulation

Count

Degree of Brand Trust Total

High moderate Low

Cement

Company

Ultratech 0 3 0 3

Acc 0 10 5 15

Ambuja 10 25 10 45

Shanker 0 7 2 9

Jsw 0 5 1 6

Ramco 0 4 1 5

Zuari 1 0 0 1

Chetinad 0 4 0 4

Others 1 1 0 2

Total 12 59 19 90

Table 5.11.1 Cement Company * Degree of Brand Trust Cross-tabulation

From the table we can understand that from 90 respondents 50 percent of them have commented

on Ambuja brand trust and in that 50 percent 22 percent say Ambuja is having high degree of

brand trust, 55 percent of them believe Ambuja is having a moderate level of brand trust and again

another 22 percent say that the brand trust degree for Ambuja is low. Since only 22 percent agree

with the brand trust of the product, it will be better if the company an initiate activities that would

create a perception of brand trust within the customers/consumers.

38

Fig 5.11.1 Cement Company * Degree of Brand Trust Cross-tabulation

5.12 Hypothesis Testing

5.12.1 SoCo (Sales orientation Customer orientation)

The SOCO scale (Sales Orientation-Customer Orientation) was designed to measure the degree

to which a sales person engages in customer oriented selling (i.e., the degree to which salespeople

practice the marketing concept by trying to help their customers make purchase decisions that will

satisfy customer needs). Highly customer-oriented salespeople avoid actions that might result in

customer dissatisfaction. Specifically, the SOCO scale measures six components: (a) a desire to

help customers make good purchase decisions, (b) helping customers assess their needs, (c)

offering products that will satisfy those needs, (d) describing products accurately, (e) avoiding

deceptive or manipulative influence tactics, and (f) avoiding the use of high pressure.

Here we test whether the sales orientation customer orientation has some effect on each other.

39

Degree of Brand Trust * Degree of sales orientation Cross-tabulation

Count

Degree of sales orientation Total

High moderate Low

Degree of Brand

Trust

High 0 8 4 12

moderate 10 45 4 59

Low 3 14 2 19

Total 13 67 10 90

Table5.12.1.1 Degree of Brand Trust * Degree of sales orientation Cross-tabulation

Table 5.12.1.2 Chi-Square Test

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 8.474a 4 .076

Likelihood Ratio 8.482 4 .075

Linear-by-Linear

Association 2.899 1 .089

N of Valid Cases 90

a. 4 cells (44.4%) have expected count less than 5. The

minimum expected count is 1.33.

40

The chi-square test was done with null hypothesis to analyze if there exist any relation was there

between SoCo and brand trust, the results came out to be a negative one. Since the value is less

than 5 we failed to accept the null hypothesis. The study doesn’t neglect the chances of alternate

hypothesis being true.

41

6 Conclusion and Recommendations

6.1 Age

From the study conducted the majority of the customers and consumers are belonging to the age

group of 30-50 and most of them are contractors and engineers so in order to attract them the

company should introduce training programs or make an active club so as to encourage them.

6.2 Type of customer

From the study we could understand that the majority of the customer falls in the category of

contractors and from the in-store experience it was observed that they are the biggest promoters of

the brand. So if the company could aggregate a group of contractors and incentivize them so as to

promote the brand then the chance for increasing the sales is more.

6.3 Availability

From the data obtained and analyzed it was observed that the availability of Ambuja cement is not

there in the expected way, it’s not too less or not too high. It is in the category of moderately

available. So the company should initiate activities to attract more dealers.

6.4 Price

The respondents who said the price of Ambuja was better is around 40 percent, simultaneously 30

percent of them said that Ambuja is priced high. The price factor is a deciding factor for the buying

behavior because from the in-store experience it was found that customers rather than asking for a

particular brand of cement they are asking for a cement that is in the range of Rs 350- Rs 400. If

the company can work on the price so that the highly priced tagline can be removed from the

customers mind.

6.5 Advertisement and promotion

Ambuja cements is a cement company that provides superior quality cement. But people are mostly

unaware of that fact. Most of the customers say that the availability of the product is very less,

some say the product is priced at a higher price rate. Some of the contractors and engineers are

42

willing to use Ambuja cements if they are provided with trade discounts. The role of direct

consumer in the buying behavior of cement is very less, since they are unaware about the quality

and the use of cement. So the recommendation would be bringing consumers in the buying market

so that they can choose their product brand like they do it for all other commodities. It can be done

only through educating the consumers, through print and mass media and also through attractive

offers.

6.5.1 Toll free numbers.

The suggestion could be company should start a toll free number facility so that the consumer can

directly contact the company to ask about the product, and also the company can help or guide the

consumer to attain knowledge about the quality of the cement and also the company can provide

a direct trade discount for the consumer there by avoiding middle men. This could be a good step

because initially when a consumer is about to start a construction he is having lot of quires in his

mind if company could reach out to those people and help them out the eventually the brand trust

factor would increase. Also from my study I have noticed that Ambuja cement is having a good

brand image, so a leading company taking such a step for the society would attract consumers. For

this company can use a better advertisement technique.

6.6 SoCo and Brand Trust

Sales orientation customer orientation should have some effect on the brand trust. From the survey

and in-store experience it has been in some cases, from the data and the subsequent chi-square test

the study failed to accept the null hypothesis. So the from the study and the subsequent test it’s

clear that the chances of relation with Sales orientation and Customer orientation cannot be

neglected.

43

7. Limitations

The major limitation faced during the internship is the population and the sample, since the data is

collected from the dealership where Ambuja cements is being sold there has been a biased response

and there the possibility of a sampling error is exceptionally high.

The lack of direct consumer in the buying behaviour of cement made the survey part a bit difficult.

Illogical answers and the knowledge level of majority contractors were not up to the expected

level.

Since the contact was made with the contractor’s, their existed a language barrier since the

language used by them was a totally different slang of the local language (Malayalam) ann to

understand their points and views questions had to be repeated again and again.

Since the orders were made through telephone calls the direct contact with the customers were

minimal because of which the survey had to be taken via phone calls and the responses seemed to

be random and vague.

44

8. References

* Simon Anholt (1998); Nation Brand of Twenty First Century; Journal of Brand

Management.

* Kevin Lane Keller (August 2001); Building Customer Based Brand Equity.

* Tilde Heading (2009) Book on Brand Management.

* Catherine da Silveriaetal. (2011); Reconceptualising Brand Identity in a Dynamic

Environment

* Md. ReajulAlam Chowdhury (2012); Factors Considered by Opinion Leader (One form

of Reference Group) in Recommending Brand to Customers: A Case Study on Cement,

Global Journal of Management & Business Research

* Dr. B. Sarayna& Dr. V. Kavitha (2014); A Study on Customer Perception Towards

Cement in Coimbatore City

Website Reference

www.shodhganga.com

https://www.ebscohost.com

https://www.jgateplus.com

http://www.shodhganga.com/

https://www.ebscohost.com/

https://www.jgateplus.com/

45

9 Annexure

9.1 Questionnaires

9.1.1 CONSUMER BUYING BEHAVIOUR (Customer)

Outlet name:

Location:

CUSTOMER DETAILS Time:

Name:

Age:

Sex:

Profession:

1. Type of customer:

o Consumer Mason Contractor Institutional Buyers

2. Purchasing Item:

Cement Steel Hardware Paint Metal

Roofing Sheet Bricks Sanitary Other

3. If cement which company:

Ultratech cement ACC Cement Ambuja Cement Shanker Cement

JSW Cement Dalmia Cements Ramco Cements Zuari Cements

Malabar Cements Chetinad Cements Others

4. If others, which company:

5. Reason for Selecting Other Brand:

Brand image Price Availability Quality Reference

6. If Ambuja cements why?

Brand image Price Availability Quality Reference

46

7. Number of bags Purchased Today

1-10 11-20 21-30 31-50 51-80 81-100

101 and above

8. What is the stage of Construction?

Basement Brickwork Roof slab 1st floor plastering

Finishing Other Stage

9. How many bags purchased till date:

0-100 101-200 201-300 301-400 401-500 501 & above

10. Area of Construction:

11. As per you, what is the percent of expense on cement on total cost of construction?

0-5 6-10 11-15 16-20 Above 20

12. Do you Give Preference

Aesthetic appearance Strength

13. Do you give importance to

Architecture Decoration

14. Are u Aware about the fact that once the construction is done the cement used cannot be replaced?

Yes No

15. I choose a brand of cement mainly because of their quality?

Strongly agree Agree Neutral Disagree Strongly Disagree

16. I choose the brand of cement because of their advertisement and promotion?


17. I choose the brand of cement mainly because of their price


18. I choose the cement based on the availability?


/

/

/

47

19. I choose the brand of cement predominantly based on their brand image?


20. I choose the cement brand mainly because of their Service?


21. I feel that the Quality of AMBUJA cements is excellent?


22. I came to know about Ambuja cements through the reference of:

Peers Media Mason Ref engineer/Architecture ref Shop ref

Others

23. I feel that the price of Ambuja cements is justifiable?


24. I feel that the availability of Ambuja cements is satisfactory?


25. I feel that the brand image of Ambuja cements is excellent?


26. I am satisfied with the service of Ambuja cements?


27. Time spent inside the store

0-10 11-20 21-30 31- 40 41-50

51-60 60 & above

Contact number:

E-mail id

Remarks:

48

9.2 BRAND TRUST

1) This brand’s products make me feel safe

Strongly agree Agree Neutral Disagree strongly disagree

2) I trust the quality of this brand’s products


3) Buying this brand’s products is a guarantee


4) This brand is sincere with consumers


5) This brand is honest with its customers


6) This brands expresses an interest in its customers


7) I think this brand renews its products to take into account advances in research


8) I think that this brand is always looking to improve its response to consumer needs


9) If necessary, I would make a few small sacrifices so I could continue using this brand


10) I tend to praise and defend this brand


11) I think I will appreciate this brand for a long time


0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

49

9.3 Sales orientation Customer orientation

On a scale of 1-9 Rate the following articles, where 1-never…….to 9 being always

Never always

1. I try to give customers an accurate expectation of what the product will do for them. 1 2 3 4 5 6 7 8 9

2. I try to get customers to discuss their needs with me. 1 2 3 4 5 6 7 8 9 3. If I am not sure a product is right for a customer, I will still apply pressure to get 1 2 3 4 5 6 7 8 9

him to buy.

4. I imply to a customer that something is beyond my control when it is not. 1 2 3 4 5 6 7 8 9

5. I try to influence a customer by information rather than by pressure. 1 2 3 4 5 6 7 8 9

6. I try to sell as much as I can rather than to satisfy a customer. 1 2 3 4 5 6 7 8 9

7. I spend more time trying to persuade a customer to buy than I do trying 1 2 3 4 5 6 7 8 9

to discover his needs.

8. I try to help customers achieve their goals. 1 2 3 4 5 6 7 8 9

9. I answer a customer's questions about products as correctly as I can. 1 2 3 4 5 6 7 8 9

10. I pretend to agree with customers to please them. 1 2 3 4 5 6 7 8 9

11. I treat a customer as a rival. 1 2 3 4 5 6 7 8 9

12. I try to figure out what a customer's needs are. 1 2 3 4 5 6 7 8 9

13. A good salesperson has to have the customer's best interest in mind. 1 2 3 4 5 6 7 8 9

14. I try to bring a customer with a problem together with a product that helps 1 2 3 4 5 6 7 8 9

him solve that problem

15. I am willing to disagree with a customer in order to help him make 1 2 3 4 5 6 7 8 9

a better decision.

16. I offer the product of mine that is best suited to the customer's problem. 1 2 3 4 5 6 7 8 9

17. It is necessary to stretch the truth in describing a product to a customer. 1 2 3 4 5 6 7 8 9

18. I begin the sales talk for a product before exploring a customer's needs 1 2 3 4 5 6 7 8 9

with him.

19. I try to sell a customer all I can convince him to buy, even if I think it 1 2 3 4 5 6 7 8 9

is more than a wise customer would buy.

50

20. I paint too rosy a picture of my products, to make them sound as good 1 2 3 4 5 6 7 8 9

as possible.

21. I try to achieve my goals by satisfying customers. 1 2 3 4 5 6 7 8 9

22. I decide what products to offer on the basis of what I can convince 1 2 3 4 5 6 7 8 9

customers to buy, not on the basis of what will satisfy them in the long run.

23. I try to find out what kind of product would be most helpful to a customer. 1 2 3 4 5 6 7 8 9

24. I keep alert for weaknesses in a customer's personality so I can use them 1 2 3 4 5 6 7 8 9

to put pressure on him to buy.

Final rohith

Documents

Transcript of Final rohith