Oregon Wine Cluster
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Transcript of Oregon Wine Cluster
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G r o u p 7 | S e c t i o n B | I N D I A N I N S T I T U T E O F M A N A G E M E N T K O Z H I K O D E | 2 0 1 4 - 1 6 A V I N A S H | K A U S H I K | M A D H U R | N I K H I T A | S A Y E M A | S O U R A V
Consumer Behaviour Towards Washing Machines
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CONSUMER BEHAVIOR TOWARDS WASHING MACHINES
Introduction
Consumers are very complex beings and their behavior is all together more complex. Marketers have to be
very careful, aware of the dynamic and multidimensional behavior of their customers. Today various
researches have been and are conducted to understand the consumer behavior towards almost all the
products available in the market. A typical study on the consumer behavior involves the buying of goods
and services, but the process starts much before the products have been purchased. A process of buying
starts in the minds of the consumer, leading to finding of alternatives in the target product category and
comparing each of the alternatives with their relative advantages and disadvantages, which results in internal
and external research.
This project aims to find the possible factors, which influences the buying behavior of the consumers
towards the given sets of brands of washing machines (Automatic, Whirlpool and LG). This project also
examines the consumer preferences towards selected brands of washing machine.
The nature of white goods is such that consumers have fewer emotional influences than when buying other
products. Generally speaking, consumers display fewer emotions towards white goods. People tend to
associate these products on the “usage” rather than aesthetic value. Consumers usually focus on price,
durability and features. Moreover they usually compare the similar products offered by the top brands before
making a buying decision. Safety and Technology are also considered important criteria for purchasing a
washing machine by the customers.
The market statistics in India indicate the top five brands of washing machine such as LG, Samsung,
Bosch, Whirlpool, and IFB have achieved greater heights. It reveals that demographic profile such as age,
gender, educational qualification; marital status, occupation and income of consumer of selected brand do
not have influence in the level of satisfaction of consumer buying behavior.
There may be many factors which effects the choice of customers for the selection of a washing machine
like price, durability, technology, after sale services, Brand name, dealers network and appearance etc.
Product Category-
Washing machines come under the white goods category of products. Consumers generally have very
limited emotional attachment towards white goods and they behave very rationally while making their
buying decision. Based on our secondary research and literature review, we got some key insights about the
product category which are as follows-
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Need-
Most of the consumers go for buying a washing machine because washing clothes is almost a daily activity
of a household and washing machines provide an easy solution for the same. People consider that an
efficient washing machine is the one stop solution for all their laundry requirements.
Usage-
The primary usage of washing machine is for washing clothes including apparels, curtains, bed-sheets and
other household garments. Now, with the development of technology people also use it for drying clothes.
The usage and type of garments consumers want to wash vary from person to person, hence most of the
consumers go for the washing machines which is designed to wash different types of garments.
Benefits-
Some of the key benefits of washing machines which we observed are as follows-
1. Most of the consumers agreed to the fact that washing machines are a time saving solution for washing
clothes.
2. The washing quality is much better than washing by hands.
3. Washing machines are also energy efficient and save power and electricity.
4. Washing machines also reduce wastage of water and detergents.
5. Easy to use and maintain and convenient solution for washing clothes.
Motivation-
Through our research we got to know some important points regarding the motivation behind buying a
washing machine-
1. Consumers who already have an existing washing machine go for buying a new one because the new one
has more capacity and is designed with modern technology.
2. When it comes to white goods like washing machine, consumers don’t trust more on celebrity
endorsements, rather than they go more with the recommendations by others.
3. Most of the consumers get information about new washing machine brands through broadcasting media
including TV and FM radio, while some consumers also get motivated to buy a washing machine by big
space advertisements like hoarding or glowing sign board.
4. Consumers definitely get attracted towards promotional schemes for white goods like refrigerators and
washing machines and buy it.
5. Some consumers also believe that after sales service of some washing machine brands is really good and
it is also a factor behind the motivation to buy it.
6. In case of washing machines, the buying decision is mostly made by the senior member in the family
whether male or female.
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LG Automatic Washing Machine
Newspaper/magazine advertisements
Attention Elements (Stimulus Factors)
Size – Bigger size of washing machine manages to catch attention of the viewer
Attractive visuals – The pictures in the advertisements are pretty attractive to the eye, and will immediately
catch the attention of anyone with an eye for aesthetics
Color – Use of brighter colors helps in grabbing attention
Contrast – The red circle at top right with appropriate message stands out in contrast to the rest of the
advertisement.
Position – The position of the red circle at top right is vital since that is the region where most people focus
on at first glance.
Appropriate information quantity – The information content in the ads is adequate, and not too cluttered.
Interpretation Elements: The happiness in life that you attach with the product
Cognitive component of communication – Functional benefits like wash better than hand wash, greater
capacity, world’s first motion direct drive, smart diagnosis, bigger and better, superior wash performance,
etc.
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Affective component of communication – Innovative product to make life better as shown by the sofa and
flowers in front of it, the couple jumping up in air.
TVC 1: https://www.youtube.com/watch?v=SdHYO2_TcII
Central route of Persuasion: Silent wash is what the consumer buys the product for
Cognitive components of communication: Direct drive technology gives silent wash, for years.
Affective Components of Communication: Indicating the need for a peaceful life. Life’s good, as the tagline
says, and as shown by the playful husband and wife.
Positive and Negative reinforcements if any: No.
TVC 2: https://www.youtube.com/watch?v=JnXWVghlXcw
Peripheral route of Persuasion: Staying together and not feeling bad about ageing clothes is what the
advertisement indirectly hints at
Cognitive components of communication: 6 motion direct drive technology, removing toughest stains
with care, and keeping clothes fresh.
Affective Components of Communication: Staying together forever, staying fresh and yum.
Positive and Negative reinforcements if any: Ageing clothes don’t go well with a person.
Product: Whirlpool Automatic Washing Machine
Newspaper/magazine advertisements
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Attention Elements:
Stimulus Factors
Size – The size of the washing machine puts it in focus directly, in all of the posters.
Appropriate information quantity – Information on the advertisements is appropriate for the viewer to
assimilate.
Attractive Visuals – The pictures exude pleasant stimuli and hence the viewer gets stuck.
Interpretation Elements: The functional usage of the washing machine
Cognitive component of communication – Water proof panel, scrub station, double starch cleaning, deep
tub, 340 watt motor; in short – smart, big and powerful
Affective component of communication – “gives body to fabric”
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TVC 1: https://www.youtube.com/watch?v=aMesZnH-OWY&list=PLiGDGLsdeJldRI4bvsgglyUcXen-
ZsO2B
Peripheral route of Persuasion: Presence of stars and the whole story around them
Cognitive components of communication: 6th
sense intelligence, stain free in 1, 2, 3.
Affective Components of Communication: “Jiyo life carefree”
Positive and Negative reinforcements if any: No
TVC 2: https://www.youtube.com/watch?v=k1eKo7d7tiQ&list=PLiGDGLsdeJldRI4bvsgglyUcXen-
ZsO2B&index=6
Peripheral route of Persuasion: People end up liking the advertisement without any linkage with the
washing machine
Cognitive components of communication: None
Affective Components of Communication: Happiness begins at home
Positive and Negative reinforcements if any: Positive i.e. mother not scolding you even after spoiling the
cloth
Consumer level data:
We had interacted with 1 current user of each brand namely Whirlpool and LG. Both the families have been
using their products for more than 3 months and they reside in Calicut city. They belong to SEC A cluster.
1st Consumer:
Name: Prashob Kattil
Age: 32 years
Profession: IT professional
Marital status: Married
Salary: 12-15 lakh rupees
Product: Whirlpool (Automatic)
Buying decision process was as follows:
Problem/ Need recognition: 3 years earlier they used to wash clothes with hand. They found it
tedious, time-consuming and this also caused severe back pain. So, they decided to look for a
product which would perform this function.
Information search: They went to a supermarket and looked for different washing machines of
various price bands, brands and different types of loading. They also consulted their relatives.
Evaluation of alternatives:
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Customer Involvement
Characteristics High
Number of brands examined 3
Number of sellers considered 2
Number of product attributes
evaluated
3
Number of external information
sources used
Medium
Time spent in searching Considerable
Purchase decision: This was decided through positive feedback about the product from their
relatives, good explanation by the sales person in the supermarket and the value for money it
claimed. Also, they wanted a top loading washing machine as they could pour water from the top just
in case there was water problem in Calicut city.
Post Purchase behavior: They are happy with the product and they had to call the service people only
once in 3 years. The service of the company is very good. They are completely satisfied with the
product as it meets their expectations.
2nd
Consumer:
Name: Premachandran V P
Age: 50 years
Profession: Business
Marital status: Married with 2 kids
Salary: 12 lakh rupees on an average
Product: LG (Automatic)
Buying decision process was as follows:
Problem/ Need recognition: In 2014, their previous washing machine caused a lot of noise and would
vibrate more than usual. They recognized this problem and decided to buy a new washing machine.
Information search: They searched the internet and read the reviews of different products. They
made a note of all the positive and negative comments about each brand and their products. They
also consulted their relatives and neighbors.
Evaluation of alternatives:
Customer Involvement
Characteristics High
Number of brands examined 4
Number of sellers considered 3
Number of product attributes
evaluated
3
Number of external information
sources used
High
Time spent in searching Considerable
Purchase decision: They selected to purchase LG washing machine due to the positive feedback and
online reviews in various sites. Many people recommended the purchase of this product. They
decided to buy this product from the supermarket.
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Post Purchase behavior: They are happy with the product since one year and they did not need to call
the service person till now and it solved their problem of noise and vibration. This existing product is
running smoothly in their house without any issues. They are happy and satisfied with their product.
Managerial Implications
Is there linkage between the Product category aspects and the brand communications?
Product category has both functional (cognitive) and affective (symbolic) benefits. As we know that these
benefits exists in continuum, hence washing machines came into existence to provide functional benefits and
lately, been associated with affective benefits. Functional attributes of the product are easy cleaning, quick,
bigger capacity, less water, less electricity, no effort, hands free wash, superior wash et al. Some of the
emotional benefits associated with washing machines are peaceful life, brighter life, happiness, self-esteem,
care-free.
The brand communication of LG focusses on peaceful life. People do not want to hear the noise of machine
and hence, LG came up with this innovative technology and made life easier. This insight was very helpful.
The brand communication of Whirlpool focusses on superior cleaning and double starch. It positioned on
functional benefits which culminated to a happy life.
Thus we can clearly observe that the consumer insights when used to communicate the product results into a
higher brand recall.
Are their gaps between what is communicated and what is experienced by the users?
At least in the products offered by LG and Whirlpool consumer’s needs were fulfilled and there were no
gaps in the expectations and the actual benefit of the product.
Compare the importance of internal and external influences in purchaser of this product category.
Internal influencers are perception, learning, memory, motives, personality, emotions and attitudes. External
influencers are culture, subculture, demographics, social status, reference groups, family and marketing
activities. The external influencers are given more weightage in this product category. More often people
buy a particular brand due to social status and family needs. Though internal influencers also play a part in
the decision making but external influencers are predominant while making a purchase decision.