Final_report Ruchi Rrv

7/31/2019 Final_report Ruchi Rrv

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Submitted in partial fulfilment for the award of the degree

Master of Business Administration

Chhattisgarh Swami Vivekananda Technical University, Bhilai

Submitted by,

MBA Semester II

Session -2010-11

APPROVED BY GUIDED BY

DR.SUMITA DAVE PROF.SAKET RANJAN PRAVEER


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Shri Shankaracharya

Mahavidyalaya

DECLARATION

I the undersigned solemnly declare that the report of the

research work entitled A study on consumer purchase intention

towards AC in Raipur is based on my own work carried out

during the course of my study under the supervision of prof.saket

Ranjan Praveer

I assert that the statements made and conclusions drawn

are an outcome of my research work. I further declare that to the

best of my knowledge and belief the report does not contain any

part of any work which has been submitted for the award of MBA

degree or any other degree/diploma/certificate in this University

or any other University of India or abroad.

_________________


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(Signatureof the

Candidate)RUCHI RAI

ENROLLME

NT NO-

CERTIFICATE

This is to certify that the work incorporated in the report

is a record of research work carried out by

bearing Enrollment No.: under my/our

guidance and supervision for the part fulfillment for the award of

MBA Degree of Chhattisgarh Swami Vivekanand Technical

University, Bhilai (C.G.), India.

To the best of my knowledge and belief the Report

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Is up to the desired standard both in respect of contents

and language for external viva.

______

___________

(Signature

of the

Supervisor

)


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I would like to sincerely express my gratitude to Dr. Sumita

Dave , Head of Department of MBA, SSMV, Bhilai (C.G.), whose

encouragement and keen interest couples with valuablesuggestion, served a lot in the successful completion of the

work.

I am privileged to acknowledge the meticulous guidance

received from her. Although being very busy she helped me in

going about the project.

My heartiest is due to all my teachers for helping me, and

developing my skills by encouraging me all the time for study andproject work. I thank all my respondents, and my friends who

were kind enough to provide necessary data required for the

study.


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TABLE OF CONTENTS

Declaration by the Student

Certificate from the Supervisor / Company

Acknowledgments

Chapter 1. Introduction to the study

a. Explanation of the subject

b. Literature Review

Chapter 2. Company Profile / Industry Profile

Chapter 3. Research Methodology

a. Objectives

b. Research Plan

c. Sampling Plan

d. Data Collection

e. Descriptive Statistics

Chapter 4. Data Tabulation, Analysis and Results

a. Type of Analysis used and Why


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b. Results of the Analysis

Chapter 5. Findings of the study

Chapter 6. Recommendations

Chapter 7. Limitations

Chapter 8. Conclusions

References

Appendices

a. Research Progress Report

b. Questionnaire used

CHAPTER :1

INTRODUCTION TO TH E

STUDY


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The pupose of this report is to provide a background

understanding of what factors affect the purchase

intention of AC in raipur with a view to develop

marketing strategies.

With the help of this research I have tried to find out

the significant impact of factors such as

price,brand,quality,after sale service and warranty on


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the purchase intention of consumers while purchasing

AC.


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CHAPTER :2


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INDUSTRY PROFILE

AIR CONDITIONERS

The ongoing economic buoyancy in India .despite globaleconomic melt down has offered opportunities for rapid growth


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of consumer durable industry, and in particularly airconditioners and refrigeration industry.

In general, there are different types of air conditioners, but thebroader classification was room air conditioners andcommercial range of air conditioners.

The room air conditioners category consists of both the windowand split ACs for the use in residential and commercial spaces.The commercial air conditioning comprises of the ductable split

ACs to large sized chillers. This segment comprises of retail

chains, MNCs, IT/ITeS sectors, BPOs, call centres, institutes,

malls, etc. The market is of around Rs 3,600 crore, and is

growing at the rate of approximately 25 per cent annually.

INDUSTRY OVERVIEW

The size of the air-conditioner industry in India is about Rs 2,000crore. The industry can be sub-divided into non-ducted andducted products. The demand for non-ducted products --window air-conditioners and mini-splits -- comes from bothhouseholds and corporates. The demand for ducted products --central plants, packaged air-conditioners and ducted splits -- isonly from the corporates

SAMSUNG AIR CONDITIONERS


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WHIRLPOOL AIR CONDITIONERS

ELECTROLUX AIR CONDITIONERS

LG AIR CONDITIONERS

VOLTAS AIR CONDITIONERS

VIDEOCON AIR CONDITIONERS ONIDA AIR CONDITIONERS

GODREJ AIR CONDITIONERS

CARRIER AIR CONDITIONERS

SANYO AIR CONDITIONERS

AKAI AIR CONDITIONERS

HITACHI AIR CONDITIONERS

BAJAJ AIR CONDITIONERS

KORYO AIR CONDITIONERS

SENSEI AIR CONDITIONERS KENSTAR AIR CONDITIONERS

BIRLA LIFESTYLE AIR COOLERS

BLUESTAR AIR CONDITIONERS

HAIER AC

OTHERS

PORTABLE AC-

Can be moved from room to room

No need for professional installation

Some are only suitable as personal coolers rather thanroom coolers


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SPLIT AC

Very quiet operation

Attractive and aesthetic designs

Offers more flexibility on where to locate the outsidecomponent than wall model

Can cool open-plan areas well

WINDOW MOUNTED AC

Can cool single rooms well

Single unit

Requires lesser upfront cost as installation is simple

Smaller units can be plugged into existing power points
http://indiahometips.com/images/ac/split-air-conditioner.jpghttp://indiahometips.com/images/ac/portable-air-conditioner.jpg


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DUCTED AIR CONDITIONERS

Energy efficient Can be designed with multiple zones so you can cool all of

the home or just specific areas

Offers flexibility as to where noise generating equipment islocated

REVERSE CYCLE AIR CONDITIONERS

One system for heating and cooling
http://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/window-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpg


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Cheapest form of heating system

Creates the least amount of carbon dioxide

BRITISH THERMAL UNIT- This is the standard measure of heat

energy. Manufacturers classify the

size, or capacity, of an air-conditioning unit in terms of Btu/h.

COOLING CAPACITY- Most ACs are rated in BTU per hour or

by tonnage. It depends upon various

factors such as average ambience temperature, the size of room,

exposure of walls to sunlight, etc.
http://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpg


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COMPRESSOR TYPES The compressor is the ACs most

Important component. It helps in the

cooling process and can be of 3 type- reciprocating, rotary and

scroll.

ENERGY EFFICIENCY RATIO (EER )- its the ratio of its cooling

Capacity to the electricity it

consumes under standard operating conditioners. The higherthe EER ratio, the better chance you have against getting a

helluva electricity bill!

CHAPTER:3

LITERATURE REVIEW


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CONSUMER BEHAVIOUR

It is that behaviour that consumer display in searching for,Purchasing, using, evaluating and disposing of products and

services that they expect will satisfy their needs. Consumer

behaviour focuses on how individuals make decision to spend

their available resources (time, money, effort) on consumption

of related items that includes what they buy, when they buy it,

where they buy it, how often they use it, how they evaluate it

after the purchase, the impact of such evaluation on future

purchases and how often they dispose it of.

CULTURAL FACTORS


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Culture

Sub culture

Social classSOCIAL FACTORS

Reference groups

Family

Roles and statusPERSONAL FACTORS

Age and life cycle stages

Occupation

LifestylePSYCHOLOGICAL FACTORS

Motivation

Perception

Learning

Belief and attitudes

PRICE-

Price is one element of marketing mix that produces

revenue, the other elements produce costs. Prices are perhaps

the easiest element of the marketing program to adjust, product

features, channels and even promotion take more time. Price

also communicates to the market the ongoing companys

intended value positioning of its product or brand. A well

designed and marketed product can command a price premium

and reap big profits (by PHILIP KOTLER AND KEVIN LANE

KELLER page 431)

To manufacturer, price represents the quality

of money received by the firm or the seller for its product. Price


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determines the capability of a customer to buy. (by Rajan

Saxena page 321)

J.P. BOUCHAUD said that a potential powerful

way to assist consumers in making dynamic decision is todisclose price information to them before they shop.

QUALITY-

Quality is a multi dimensional concept that

cannot be easily defined or measured, a distinction can be made

between objective quality and perceived quality. Objective

quality refers to the actual technical excellence of the productthat can be verified and measured (MONROE AND KRISHMAN

1985) in contrast; perceived quality is the consumers judgment

about a products overall excellence or superiority

(ZEITHAML 1988)

AFTER SALE SERVICE-

The level of after sale service is

usually only applicable when making larger purchases, such as

white goods. If buying a car, you would know that there are

specialists that can fix it, if it broke down, in addition you would

expect there to be some kind of warranty in place. Before

making larger purchases consumer should always consider the

level, and quality, of the after sale service

(www.allprojectreports.com)

BRAND-The consumers choice is influenced by many

surrogates of whom the simplest one is a brand name. Although

there may be equally satisfying products, the consumer when

satisfied with some brand does not want to spend additional

effort to evaluate the other alternative choices. once he or she


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liked a particular brand ,he or she tends to stay with it, unless

there is a steep rise in the price or a discernible better quality

product comes to his/her knowledge, which prompts the

consumer to switch the brand.(www.allprojectreports.com)

WARRANTY-

Product warranties perform important functions

for marketers, serving as a persuasive sales variable (Kendall

and Russ 1975) and protecting sellers from unreasonable claims

by product users (Udell and Anderson 1968).

According to Darden and Rao (1977) warranties

serve to increase consumer satisfaction by reducing

dissonance.

On the other hand, Perry and Perry (1976) contend that

warranties reduce consumer feelings of risk.

(www.acrwebsite.org)

HISTORY OF AIR CONDITIONERS

The AC has been around for over a thousand years. The earliest

type of AC device was in ancient Rome supposedly where the

scientists invented it to cool down the buildings. The way the

scientists and builders made these ac for the buildings was

building cisterns and wind towers. The cisterns were large pools

of water and when it became hot the water would evaporate into

cool air and then the wind towers would blow the air into the

building. Because the buildings were subject to extraordinary

heat they had to find a way to cool down the environment.
http://www.acrwebsite.org/http://www.acrwebsite.org/


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In 1881, naval engineers constructed a box-like structure

containing cloths saturated with melted ice water, where a fan

blew hot air overhead. This contraception was able to lower a

room by 20 degrees Fahrenheit but consumed half a million

pounds of ice in two months time.

A close ancestor to the modern AC units was first made in 1902

by an American engineer by the name of Willis Carrier. The

machine at that time was called Apparatus for treating air and

was built for the Sackett - Wilhelms lithographing and publishing

co. in Brooklyn, New York. Chilled coils were used in the

machine to cool air and lower humidity to 55%, although theapparatus was made with enough precision that the humidity

level desired was adjustable.

After the invention by Carrier, AC began to bloom. They first hit

the industrial buildings such as printing plants, textile mills,

pharmaceutical manufacturers, and a few hospitals. The first air-

conditioned home was that of Charles gates, son of Gambler

John bet a million gates, in Minneapolis in 1914. However,

during the first wave of their installation, Carriers AC units were

large, expensive, and dangerous due to the toxic ammonia that

was used as coolant.

Presently with the help of technology and electricity the boom of

AC devices have began to take effect. They have made many

aircon units to choose from, permanent outside AC, residential

and commercial AC. With people who have a place that they live


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and cant afford residential air conditioning, a portable AC is a

key thing to have and requires no permanent installation. The

difference from permanent air conditioning and portable is that

with one you can move the cool air wherever you go but with the

permanent installation you dont have that luxury.

With the history of air conditioning and the many ways ACs have

evolved, there are great ways to keep anyone cool during the

summer. From ancient Rome in the 1800s to the hospitals

where people are sick; air conditioning is a necessity not only

during the summer but year around considering how hot it may

be.

Air conditioners have re-defined the home comfort. In simple

terms, these home appliances are designed to replace the hot air

in a room with nice and cool air. ACs allow you to control the

room temperature, humidity, and the air quality making living in

hot climate very comfortable.

Not too long ago ACs at home was considered a luxury item.

Buying an AC was certainly beyond aam aadmis imagination.

An AC was considered an expensive purchase for most middle


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class households in India and having it at home remained a far

stretched dream.

Not any more! This is one luxury item everyone wants to laytheir hands on now. Its not very difficult to find the reasons

behind this change in mindset.

The prices for AC have diminished and technologicalinnovations have made them energy efficient, less noisyand lighter.

An AC at home apart from controlling the temperaturealso keeps a check on relative humidity while takingcare of room ventilation and air distribution.

The AC installation has become painless and themaintenance cost is also within reach

CHAPTER : 4

RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve theresearch problem. In it the researcher studies the various steps thatare generally adopted by researcher in studying his research problemalong with the logic behind them. It is necessary for the researcher todesign his methodology for his problem as the same may differ fromproblem to problem. Thus, when a researcher talks of researchmethodology; he not only talks about the research methods but alsoconsider the logic behind the methods he use in the context of hisresearch study and explain why he is using a particular method or

technique and why he is not using others so that research results arecapable of being evaluated either by researcher himself or by others.

1.STATEMENT OF THE PROBLEM

A study on factors affecting consumer purchase intention

towards AC in raipur

2.OBJECTIVE OF THE STUDY

to identify the factors affecting the consumer purchase

intention .


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to find out the significance of the impact of identified

factors on consumer purchase intention

to suggest strategies to the marketing policy makers.

3.POPULATION

Population refers to the total of items about whichinformation is desired. The attributes that are the object ofthe study are referred to as characteristics and the unitspossessing them are called as elementary units. Theaggregate of such units is generally described aspopulation. The population is the specific group of peoplewhich forms the pivotal of research. To achieve theobjective the city of Raipur was selected.

4.RESEARCH DESIGN

5.SAMPLE


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RESEARCH PLAN

Research Design: Descriptive

Research Method Used Survey

Research Technique Used QuestionnaireData Collection Raipur

Sampling Plan Simple Random

No. of samples collected 100


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Measure Item Number of Respondents

Age

60 2

Income

(in lakhs)

< 1.5 77

1.5-2.99 13

3-54.50 5

>4.5 5

Gender Male 51

Female 49

Occupation

student 72

Businessperson

8

service 9

profession

7

household

4


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with the help of factor analysis it is found that the

loading of variables was appropriate

(rotated comp matrix table)

I have used cluster analysis technique for data analysis.

The number of clusters were 3 for data analysis

After the cluster analysis following annova table shows the

significance level of independent variables.

( annova table)


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1. As per the cluster analysis with the help of annova table it

is found that all the independent variables , price, brand ,

after sale service, quality and warranty are significant.

2. these factors are significantly responsible for purchase

intention towards AC in raipur


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1. since the sample out of the population was 100 , the

conclusion cannot be generalised for the whole raipur city.

2. the respondent were not willing to answer

3. the time for the study was limited

4. some respondents had language problem


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The topic A study on factors affecting the consumer purchaseintention towards AC in Raipur revolves around the factors andelements that influence the purchase intention of the consumer. Thestudy was made out to know what are the factors that had influencedor up to what impact had influenced the intention of consumers. Thestudy also focused to know the changed thinking of consumers

towards AC in changing scenario of economic growth of the nation.The Indian consumer is very much conscious about the quality andprice. The purpose behind study is to know the consumers likingsand disliking and the factors influencing their decisions and to knowhow long consumer think AC as a necessity or luxurious item in thechanging scenario of economic growth. The study was focused toknow what are the factors which influences the consumer purchaseintention.


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