Charan

A

PROJECT REPORT ON Consumer Buying Behaviour of Sony

Products in Gurdaspur.

Submitted to Punjab Technical University in the partial fulfilment of the requirement for the degree of

Master of Business Administration

Submitted By:-Charnjeet

Roll No.-105312250936Specialization: Marketing & finance

Submitted To:-Lec: - Sanjeev Manjotra

Lec:-S.S. Tagger

1

CERTIFICATE

THIS IS TO CERTIFY THAT THE THESIS ENTITLED,”A STUDY REGARDING CONSUMER BUYING BEHAVIOUR OF SONY PRODUCTS IN GURDASPUR SUBMITTED FOR THE DEGREE OF MBA, FOR THE PUNJAB TECHNICAL UNIVERSITY,JALANDHAR,IS A BONAFIDE RESEARCH WORK CARRIED OUT BY CHARANJEET (105312250936) UNDER MY SUPERVISION AND THAT NO PART OF THIS THESIS HAS BEEN SUBMITTED FOR ANY OTHER DEGREE.

THIS ASSISTANCE AND HELP RECEIVED DURING THE COURSE INVESTIGATION

HAVE BEEN FULLY ACKNOWLEDGED.

Prof. Sanjeev Manjotra

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ACKNOWLEDGMENT

This humble endeavour bears the imprint of many persons who were in

one way or the other helpful in the completion of my project report. I

would like to take this opportunity to present my vote of thanks to my

guides who acted as lighting pillars to enlighten my way through out this

project. This project would not have been possible without the kind

assistance and guidance of many people who indeed were helpful,

cooperative and kind during the entire course of my project.

The acknowledgment would not be complete without expressing my

indebtedness to my revered and learned faculty guide Prof. Sanjeev

Manjotra who guided me in this project and was the constant source of

reference for us and showed full interest at each and every step of our

project.

CHARNJEETMBA IV Sem.

3

DECLARATIONDECLARATION

I hereby declare that this final project report titled “Buying Behaviour/Need Analysis &

Generation of Prospective Customer List for Sony Products in Gurdaspur.” is the result of my

own effort in the training which I did as a part of the curriculum, for the fulfillment of

MASTER OF BUSINESS ADMINISTRATION (MBA) degree. It has not been duplicated

from any other earlier works and all information provided in this report is genuine.

This report is submitted for the partial fulfilment of MBA program. It has not been submitted

to any other university or for any other degree.

CharnjeetDate: ROLL. NO. 105312250936Place: MBA 4th SEMESTER

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TABLE OF CONTENTSTITLE PAGE NO.

CHAPTER-1

INTRODUCTION 1-29

Executive Summary 2

Understanding the buying behaviour of consumer 4

Indian consumer durable industry 11-19

Trends favouring the growth of consumer durables 20-23

About the Sony organization 24-29

CHAPTER-2

REVIEW LITERATURE 30-33

CHAPTER-3

RESEARCH METHODOLOGY 34-44

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION 45-62

Analysis of Bravia 54-58

Analysis of cyber shot 59-62

CHAPTER-5

CONCLUSION 63-65

BIBLIOGRAPHY 66-67

ANNEXURE 68-73

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LIST OF TABLES

S.No. TablePage No.

1.1Structure of the Indian Consumer Market 11

1.2Key Consumer Durables-Share by volume

12

1.3Service Network of IFB

35

1.4 Complaint Table 57

1.5 Product Category Complaints 58

1.6 Washing Machine Complaints 59

1.7 Major & Minor Complaints 60

1.8 Major Complaints 61

1.9 Minor Complaints 62

2.0 Servicing Complaints 63

2.1 AMC Refusal Reasons 70

2.2 Enquiry Resolve Solution 72

2.3 Model Of Dishwasher 75

2.4 Satisfaction Level Regarding Quality Of Dishwashers 75

6

2.5 Satisfaction Level Regarding Services Of Dishwashers 78

2.6 Satisfaction Level Regarding Performance Of Dishwashers 80

2.7 Satisfaction Level Regarding Durability Of Dishwashers 82

2.8 Type Of Maintenance Contract 84

2.9 Type Of Additives 86

3.0 Sources Of IFB Additives 87

3.1Comparative Analysis Of Service Charges 90

3.2 Comparative Analysis Of Spare Parts Charges 90

3.3 Comparative Analysis Of AMC Charges 91

3.4 Comparative Analysis Of Wash Care Additives 91

7

Chapter 1

Introduction

8

Executive Summary

One of the most recognized brand names in the world today, Sony Corporation, Japan,

established its operations in India in November 1994, focusing on the sales and marketing

of Sony products in the country. In a span of 12 years Sony India has exemplified the

quest for excellence in the world of digital lifestyle becoming the country’s foremost

consumer electronics brand. With relentless commitment to quality, consistent dedication

to customer satisfaction and unparalleled standards of service, Sony India is recognized as

a benchmark for new age technology, superior quality, digital concepts and personalized

service that has ensured loyal customers and nationwide acclaim in the industry.

In India, Sony has its footprint across all major towns and cities through a distribution

network comprising of over 7000 channel partners, 215 Sony World and Sony Exclusive

outlets and 21 direct branch locations. Manned by customer friendly and informed sales

persons, Sony’s exclusive stores ‘Sony World’ are fast becoming the most visible face of

the company in India.

9

Introduction

One of the most recognized brand names in the world today, Sony Corporation, Japan,

established its India operations in November 1994, focusing on the sales and marketing of

Sony products in the country. In a span of 12 years Sony India has exemplified the quest for

excellence in the world of digital lifestyle becoming the country’s foremost consumer

electronics brand. With relentless commitment to quality, consistent dedication to customer

satisfaction and unparalleled standards of service, Sony India is recognized as a benchmark

for new age technology, superior quality, digital concepts and personalized service that has

ensured loyal customers and nationwide acclaim in the industry.

In India, Sony has its footprint across all major towns and cities through a distribution

network comprising of over 7000 channel partners, 215 Sony World and Sony Exclusive

outlets and 21 direct branch locations. Manned by customer friendly and informed sales

persons, Sony’s exclusive stores ‘Sony World’ are fast becoming the most visible face of the

company in India.

Sony India also has a strong service presence across the country with 21 company owned and

172 authorized service centers. A distinctive feature of Sony’s service is its highly motivated

and well-trained staff that provides the kind of attentive and sensitive service that is rare

today.

Sony is committed to ensuring that both the products and the marketing activities employed

truly make a difference to people’s lifestyles and offer them new dimensions of enjoyment

and an experiences which are ‘like no other’.

10

Understanding The Buying Behaviour Of Consumers

Definition

Purchase decision making pattern that is a complex amalgam of needs and desires, and is

influenced by factors such as the consumer's (1) societal role (parent, spouse, worker, etc.),

(2) social and cultural environment and norms, and (3) aspirations and inhibitions.

Buying Behavior is in the Advertising, Marketing, & Sales and Purchasing & Procurement

subjects.

Buying Behaviour appears in the definitions of the following terms: marketing research,

advertisement (ad), ACORN, economic environment, activities, interests, opinions (AIO) and

consumer research.

Buying Behaviour appears in these other term: consumer buying behaviour.

(2.4) Model of Buying Behaviour

Marketing Other Buyer’s Buyer’s Buyer’s

Stimuli Stimuli Characteristics Decision Decision

      Process  

Product Economic CulturalProblem recognition Product choice

Price Technological SocialInformation Search Brand choice

Place Political Personal Evaluation Dealer choice

Promotion Cultural Psychological Decision Purchase timing

      Post purchase Purchase amount

      Behaviour           

When I have analyzed the model of buying Behaviour finding that people of Bhilai are influenced by the marketing stimuli (4 P’s) people are focused on price rather than product, place and promotion, other factor which influenced people is the technological advancement.

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(2.5) Detailed Model of Factors Influencing Behaviour

Cultural

Culture Social

PersonalReference Groups Psychological

Cycle Stage MotivationSubculture Family Economic Perception

Circumstances Learning

Life StyleBeliefs and Attitudes

BUYERRoles and Statuses

Personality and

Social Class Self Concept

Reference groups can have potent influence on behaviour in general, and they may also be

very influential on consumer behaviour, considering the ‘Consumer Goods Segment’. Family

and friends in specific are considered before making a decision about purchasing a product.

But their purchase decision depends completely on self-opinion.

Where reference groups’ influence is operative, the advertiser should stress not only the

people who buy the product but also those who influenced the purchasing decision.

The process may be viewed as starting when the consumer engages in problem recognition.

Problem recognition occurs when the consumer is activated by awareness of a sufficient

difference between his / her concept of ideal situation. The action occurs only when the

consumer perceives a sufficiently large discrepancy between the actual and ideal states.

Given that the consumer is aroused to action, the next state is internal search for a quick and

largely unconscious review of memory for stored information and of an experience regarding

the problem. This information in the form of beliefs and attitude influence the consumer’s

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preference towards band. If an internal search does not provide sufficient information about

products, or how to evaluate them, the consumer continues with a more involved external

search for information.

Any information stimuli are then subjected to information processing activities. This process

involves allocating attention to available stimuli, deriving meaning from these stimuli. The

alternating evaluation phase involves comparing the information gained in the search process

for alternative product and brands to the product judging criteria on standards the consumer

has developed. When such a comparison leads to favourable evaluations, the consumer is

likely to develop a purchase intention towards that alternative that received the most

favourable evaluation.

A purchase process follows strong purchasing intentions. This involves a series of selection,

including the type of retail outlet as well the specific brand on service to use. The consumer’s

purchase then leads to various outcomes. One such outcome is satisfaction as a result of

direct experience in using the brands. Satisfaction will affect the consumer’s belief about the

brand. Other outcome is dissatisfaction and post sale doubt.

Many ad agencies conducted an in-depth study of consumer buying behaviour and found that

they all crave for peer acceptance and parental non-influence. Beyond this they are an

enigma.

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Set of Action Taken By SONY To Impact On Buying Behaviours.

Sony India Pvt. ltd was established on 17th November 1994 in New Delhi with branch offices

all over India. It is a subsidiary of Sony Corporation of Japan. The word Sony is a

combination of two words 'sonus' and 'sonny'. Sonus is a Latin word that represents words

like sound or sonic whereas Sonny means a son. In 1958 it became Sony Corporation to have

worldwide expansion. Now Sony is a leader in almost every product and the most recognized

name in India. It has constantly lived up to the expectation of consumers by giving products

with latest technology, digital concepts and for its par excellent customer services. Sony has

also won Avaya Global connect Customer Responsiveness Award in 2006. The award had

been given for Sony's understanding in customer behaviour, identifying new opportunities

and exceeding customers' expectation. While giving this award, the work regarding customer

policies was also recognized. The growth of the company in India can be shown through ever

increasing sale revenues. The sale revenue generated in the year 2007 was Rs. 596 Crore that

had an increase of 26% compared to the sales revenue of 2006.

Sony has the most diverse portfolio in consumer durables in India. Sony makes many

products and almost every Indian home has one or two products of Sony. The deals in the

following and many more:

o Televisions,

o Hi-fi Audios

o Home Theater systems and DVD players

o Personal Audio (CD/Cassette Radio Players and Walkman)

o Audio Video Accessories

o Car Audio and Visual Systems

o Notebooks,

o Gaming Consoles

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o Camcorders and Digital Still Cameras

o Digital Imaging Accessory (Batteries, Chargers, Microphone, Photo Printers),

o Mobile Phones

o Recording Media and Energy Devices

o Broadcast and Professional products

Sony's recent products TFT monitors, plasma monitors, LCD projectors, PC speakers and

storage media services are distributed through retailer, corporate partner and IT retail outlet.

The latest camcorder Sony DCR-SR90E, is really getting popular in India has 30 GB storing

capacity and has recording time of 21 hours. It has built in Dolby Digital 5.1ch surrounds

microphone. Sony has recently entered by Vaio in Indian Notebook market available in

Sony's retail outlets across the nation and later on IT channels will be used to distribute it.

Along with Sony Digital Cameras, variety of handy cams will be launched. Yet another

milestone is the invention of 11-inch an extremely thin next generation TV display with

OLED (Organic light emitting diode) technology. This has been launched in the Indian

market

The company's profile is so strong in India and world that people don't go in the details while

buying any product manufactured by Sony. 'The name speaks' tag is very much true for Sony

in India. Sony celebrates 14th-19th June as Sony days in various outlets. Special offers,

attractive prices and discounts are offered during these days. Even this multinational

company is providing employment to many in India. Recently Sony India opened its

Software Center in Bangalore. Sony World in Pune is the largest showroom of Sony in India.

It has all the latest products and provides excellent services. To know more on the latest

information on the launch of product, dealers and retailers in India their website sony.co.in

can be checked. In this the full list of service centers, manuals, and announcements etc

regarding different products are given in detail. Full emphasis is given on the customer

services. There is no second thought that Sony is a leading name in Consumer durables in

India with ever-increasing graph.

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Marketing Implications

Marketers should realize that today’s customers are an aware lot and they have an attitude.

The consumer goods market is a sensitive market one that has to be handled with a great deal

of care. The rules are simple

Do not overstate

Do not be obvious

Do not patronize

Instead of giving the customers respect and freedom to make their own choice, the marketer

should synchronize their product and service value with customer attitudes. The marketers

should dare to be different and unconventional, so that their products click, if they were

targeted at the customer special youth, who in turn are willing to experiment with something

new.

The marketer should understand the customer to have a strong sense of identification and a

sense of attitude that they sniff out of imaging. It has been observed that offering value

addition also works in the youth market. Sony should initiate research in different product

categories and this should take into consideration the brand likeability, appeals.

What has to be kept in mind is that the product should have an emotional appeal and should

click the target group.

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SWOT ANALYSIS

STRENGTHS

1. Presence of established distribution networks Sony Exclusive in Chandigarh Tricity.

2. Presence of well-known brands.

2. In recent years, Sony Exclusive and Multi-Brand counters has increased its

share in the Chandigarh Tricity market against Grey market.

WEAKNESSES

1. Demand is seasonal and is high during festive season.

2. Demand is less in the month of June and July.

3. Poor spending on infrastructure (Display) as compared to Sony World in Raipur.

4. Low purchasing power of consumers.

OPPORTUNITIES

1. In Gurdaspur Tricity, the penetration level of Consumer goods is lower.

2. Unexploited rural market.

3. Rapid urbanization.

4. Increase in income levels, i.e. increase in purchasing power of consumers.

5. Easy availability of finance (Sony 0% finance Offer)

THREATS

1. Higher price of products as compared to other companies’ products may drives the customer switch to other company products.

2. Service which is given by Sony Service Gurdaspur Tricity is not completely satisfactory.

17

Consumer Durable Market

18

Indian Consumer Durables Industry

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, commercial or industrial

setting. An appliance is differentiated from a plumbing fixture because it uses an energy input

for its operation other than water, generally using electricity or natural gas/propane. An

object run by a watermill would also be considered an appliance. The term white goods is

also used for these items, primarily where British English is spoken, although definitions for

the term "white goods" can differ. In the United States, the term white goods more commonly

refers to linens rather than appliances.

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

move, and generally fixed in place to some extent. They are often considered fixtures and

part of real estate and as such they are often supplied to tenants as part of otherwise

unfurnished rental properties. 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 Labelling 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.

Major appliances may be roughly divided into refrigeration equipment, stoves, washing

equipment, and miscellaneous.

Indian consumer durables market used to be dominated by a few domestic players like

Godrej, Allwyn, Kelvinator, and Voltas. But post-liberalization many foreign companies have

19

entered into India, dethroning the Indian players and dominating the market. The major

categories in the market are CTVs, refrigerators, air-conditioners and washing machines.

The Consumer Durables industry consists of durable goods and appliances for domestic use

such as televisions, refrigerators, air conditioners and washing machines. Instruments such as

cell phones and kitchen appliances like microwave ovens are also included in this category.

The

sector has been witnessing significant growth in recent years, helped by several drivers such

as the emerging retail boom, real estate and housing demand, greater disposable income and

an overall increase in the level of affluence of a significant section of the population. The

industry is represented by major international and local players such as BPL, Videocon,

Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc.The consumer durables industry

can be broadly classified into two segments: Consumer Electronics and Consumer

Appliances. Consumer Appliances can be further categorised into Brown Goods and White

Goods.

Types of appliances

Appliances may be divided into categories called "white goods" and "brown goods" in British

English.

Brown goods are typically small household electrical entertainment appliances such

as:

CD and DVD players

Televisions

Camcorders

Still cameras

HiFi and home cinema

Telephones etc.

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White goods comprise major household appliances and may include:

Air Conditioner

Dishwasher

Clothes Dryer

Washing Machine

Microwave Oven etc.

Some types of brown goods were traditionally finished with or looked like wood or

bakelite. This is now rather rare, but the name has stuck, even for goods that are unlikely ever

to have been provided in a wooden case (e.g. camcorders). White goods were typically

painted or enamelled white, and many of them still are. The addition of new items to these

categories shows that the categories still serve a purpose in marketing.

This division is also noticeable in the service area of these kinds of products. Brown goods

usually require high technical knowledge and skills (which get more complex with time, such

as going from a soldering iron to a hot-air soldering station), while white goods need more

practical skills and "brute force" to manipulate the devices and heavy tools required to repair

them.

There is usually a problem with microwave ovens, because these sell alongside refrigerators

and dishwashers, but microwave ovens contain complex electronic boards (the clock and

controller) which white-good servicemen refuse to repair (as they don't have the training or

tools required to do so). Some brands send whole boards for replacement, and some have

them repaired by such technicians.

Indian consumer durables market used to be dominated by a few domestic players like

Godrej, Allwyn, Kelvinator, and Voltas. But post-liberalization many foreign companies

have entered into India, dethroning the Indian players and dominating the market. The major

categories in the market are CTVs, refrigerators, air-conditioners and washing machines.India

21

being the second fastest growing economy with a huge consumer class has resulted in

consumer durables as one of the fastest growing industries in India. LG and Samsung, the

two Korean companies have been maintaining the lead in the industry with LG being the

leader in almost all the categories.

Korea's major consumer electronics manufacturers show continued robust growth in the

Indian market for home appliances. According to a recent survey conducted by GfK

Marketing Services, one of the world's top-five market research companies, LG Electronics

Inc. was found to lead in India's five major home appliances categories; color televisions,

refrigerators, washing machines, air conditioners and microwave ovens, during the April-

June period.

LG-brand air conditioners held a 41 percent market share, televisions 26.7 percent,

refrigerators 29.4 percent, washing machines 35.1 percent and microwave ovens 38.9 percent.

Televisions rose 2.3 percent, while refrigerators and washing machines rose 3.4 percent and

2.7 percent respectively, from a year ago.

Samsung Electronics followed LG Electronics in the Indian home appliances market, with a

14.4 percent market share in colour televisions, 16 percent in air conditioners and 18.6

percent in microwave ovens during the April-June period. Although in India's optical

machinery market Samsung Electronics was found to lead with its computer monitors and

CD-ROM drives.

Meanwhile, in the audio markets, the two electronic makers fell behind competitors such as

Sony and Phillips. Sony and Phillips had a 42.8 percent and a 34.1 percent market share,

respectively. Samsung and LG trailed with 11 percent and 5.7 percent, respectively, in India's

audio market.

"Although encountering severe competition from foreign rivals in India, a nation with

enormous potential, LG Electronics is leading the Indian market for major home appliances

every year," said Kim Gwang-ro, president of LG Electronics' South West Asian branch. "We

will continue to push the boundaries of our first-rated electronic products through localization

and product differentiation," he added.

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The Indian branch of LG Electronics plans to achieve its goal of $10 billion in sales by 2010

with an investment of $150,000,000 to 2007. On the other hand, Samsung Electronics said it

will focus on increasing brand recognition and value though its high-end product lines rather

than attaching itself to simple, numerical sales volume in the Indian market. The company is

restructuring its business segments in the Indian market to more concentrate on high value-

added production. India, as one of the four BRICs nations, along with Brazil, Russia and

China, is running an average of 7 percent annual economic growth, mostly driven by a

growing IT sector. Some experts predict that India will become the world's largest economy

by 2035.

The rural market is growing faster than the urban markets, although the penetration level in

rural area is much lower. The CTV segment is expected to the largest contributing segment to

the overall growth of the industry. The rising income levels, double-income families and

increasing consumer awareness are the main growth drivers of this industry.

(in millions of households)

Consumer Classes (Annual income Rs) 1996 2001 2008 ChangeThe rich (Rs.215, 000 and more)i 1.2 2 6.2 416%The Consuming Class (Rs. 45-215,000) 32.5 54.6 90.9 179%The Climbers (Rs. 22-45, 000) 54.1 71.6 74.1 37%The Aspirants (Rs.16-22, 000) 44 28.1 15.3 -65%The Destitute (below Rs. 16,000) 33.2 3.4 12.8 -61%Total 164.8 180.7 199.2 21%

Source: NCAER

Table1.1-Structure of the Indian Consumer Market

Industry Size, Growth, Trends

The consumer durables market in India was estimated to be around US$ 5.5 billion in 2007-

08. More than 7 million units of consumer durable appliances have been sold in the year

2007-08 with colour televisions (CTV) forming the bulk of the sales with 30 per cent share of

volumes. CTV,refrigerators and Air-conditioners together constitute more than 60 per cent of

the sales in terms of the number of units sold.

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Table-1.2-Key Consumer Durables-Share by volume

In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool

segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have

registered double-digit growth in the direct cool refrigerator market. In the case of washing

machines, the semi-automatic category with a higher base and fully-automatic categories

have grown by 4 per cent to 526,000 units and by 8 per cent to 229,000 units, respectively. In

the air-conditioners segment, the sales of window ACs have grown by 32 per cent and that of

split ACs by 97 per cent.

Consumer Electronics

The CTV production was 15.10 million units in 2007-08 and is expected to grow by at least

25 per cent. At the disaggregated level, conventional CTV volumes have been falling while

flat TVs have grown strongly. Market sources indicate that most CTV majors have phased

out conventional TVs and have been instead focusing more on flat TVs. The flat segment of

TVs now accounts for over 60 per cent of the total domestic TV production and is likely to be

around 65 per cent in 2007-08.

High-end products such as liquid crystal display (LCD) and plasma display CTV grew by 400

per cent and 150 percent respectively in 2006–07 following a sharp decline in prices of these

products and this trend is expected to continue.

24

The audio/video player market has seen significant growth rates in the domestic market as

prices have dropped. This trend is expected to continue through 2007-08, as competition is

likely to intensify to scale and capture the mass market.

White Goods

Increased consumer demand is expected to boost the white goods segment to achieve

production levels of US$ 5.09 billion by the end of 2007-08 against US$ 4.54 billion in 2006-

07, with a growth rate of 12.5 per cent.

Air-Conditioners

Growth in the white goods segment was largely driven by the Air-conditioner (AC) segment.

Within this, split ACs have been the main growth drivers, recording a growth of over 90 per

cent in 2007. Growth, albeit at a slower rate. of 32 per cent, has also been experienced in the

segment of window ACs. The window AC segment is slightly less organised as compared to

split AC segment. The market for air-conditioners is divided quite uniformly across customer

segments, with about 45 per cent share for private sector corporates, 20 per cent for domestic

use, 15 per cent each for public sector companies and government use and5 per cent for

hospitals.

Washing Machines

The sales of washing machines have grown from about 780,000 units to 2,348,000 units

during the period, fiscal year 1999 to 2008, registering a near 12.2 per cent annual growth

rate. The washing machine market may be segmented into semi-automatic and fully

automatic machines. Semiautomatic washing machines enjoy a dominant share of 85 per

cent. Fully automatic washing machines have been gaining share as a consequence of product

improvement, competitive pricing and resultant convenience. However, semi-automatic

machines will continue to play a major role

in the Indian market for quite sometime. Fully automatic washing machines have been the

growing at 44.5 per cent and semi-automatic segment, at about 18 percent. The entry of

MNCs has widened the range to more than 10 brands with a proliferation of models, while

25

ensuring technology upgradation. A visible impact of this churn has been the exit of a few

established players from the market.

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

0

500000

1000000

1500000

2000000

2500000

Series1

GROWTH OF WASHING MACHINES UNITS FROM 2002-2008

SOURCE-NCAER

Refrigerators

Refrigerators are one of the most sought after appliances in Indian middle class homes. The

refrigerator market has two segments: Direct Cool and the relatively new Frost-Free type.

The market for refrigerators in 2006-07 was about 6.5 million units. The growth of

refrigerator segment is projected to be between 18 to 22 per cent over the next 5 years. A

critical success factor for the refrigerator market, given its widespread use, is deeper reach

into the market and increased penetration. Recently, the market is getting reinforced by the

replacement segment as well.

26

Trends Favouring the Growth of the Consumer Durables Industry

The key trends that impact the Indian Consumer Durables Industry today are reflected in the

diagram and discussed separately in the following sections.

Increasing Share of Organised Retail

The urban and rural markets in India are growing at an annual rate of 7 to 10 per cent and 25

per cent respectively. One of the key enablers of this growth has been the increasing

penetration of organised retail. While there are established distribution networks in both rural

and urban India, the presence of well-known brands and organised sector is increasing. At

27

present around 96 per cent of the more than 5 million retail premises of all types in India are

smaller than 50 sq mtrs. This situation is, however, transforming. Shopping malls are

becoming increasingly common in Indian cities, and based on plans announced by key

developers, a proliferation of new malls is expected over the next three years. Although many

of the new malls would be much smaller than their western counterparts, Indian consumers

will have a far larger number of attractive, comfortable, brand-conscious outlets in which to

shop. As a result, the organised retail industry is expected to cover a market share of 15 to 18

percent by the end of 2010, from just 3 per cent at present. This will have a positive impact

on the consumer durables industry, as organised retailing would not only streamline the

supply chain, but also facilitate increased demand, especially for high-end and branded

products.

Narrowed Price Gap and Increased Affordability of Products

Advanced technology and increasing competition is narrowing the price gap between

products in this sector, which has driven demand and enabled high growth. Products that

were once beyond the reach of the middle class Indian are now affordable to many. Growth

in demand for products, once considered luxuries, such as air-conditioners, washing machines

and high end CTVs, is a reflection of this phenomenon.

Entry of Large Players Increasing Competition

With potential heavyweight retail stores like Croma, E Zone and Reliance Digital, the high-

end segment has been exposed to a new form of purchase, allowing the consumer to

feel/experience the product in a suitable ambience (significant in decision-making). Part of

the growth momentum in high-end segments of consumer electronics could be attributed to

the competitive evolution of organised retail, stimulating the demand through exposure to

high end shopping experiences.

Income Growth and Structural Changes

Apart from steady growth in income of consumers, consumer financing has become a major

driver in the consumer durables industry. In the case of more expensive consumer goods,

28

such as refrigerators, washing machines, colour televisions and personal computers, retailers

are marketing their goods more aggressively by providing easy financing options to the

consumers by partnering with banks. While this is aimed at the lower and middle income

groups, the higher income groups are also being attracted by opportunity.

Distribution and Service Network

As the market spreads out from saturated urban regions to low penetration rural areas and tier

II/III towns, distribution network and brand recognition will continue to play ever more

significant roles in determining market share and profitability. The market for consumer

durables is moving towards a stage where it could soon be defined “as broad as it can be

reached”. The central government plans of making electricity available for all by 2012, will

also open up immense opportunities for the consumer durables segment.

Rupee Appreciation

Raw material cost constitutes more than 75 per cent of expenditure incurred by consumer

durable manufacturers in India. The rapid appreciation of rupee vis-à-vis the US dollar in

2007 is expected to ease raw materials costs for Indian manufacturers and benefit those

addressing the domestic market.

29

Key Players Of Consumer Durables Industries

30

INTRODUCTION

TO THE

ORGANISATION

31

Sony's Story

It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of passionate

and committed group of employees started to build “Tokyo Tsushin Kenkyujo” (Totsuko) or

“Tokyo Telecommunications Research Institute” into the billion dollar global conglomerate

that it is today. The main objective of the company was to design and create innovative

products which would benefit the people.

From early attempts at creating products like the rice-cooker to the later success of creating

Japan’s first magnetic recorder, the innovative company went on to create other hit products

which won the company widespread recognition and international acclaim as a truly global

company known for its quality and innovative products. Significant product milestones

included Japan’s first transistor radio (1955), Trinitron colour television (1968), Walkman

personal stereo (1979), Handycam video camera (1989), PlayStation (1994), Blu-ray Disc

recorder (2003) and PlayStation 3 (2006).

The company name of Sony was created by combining two words of “sonus” and “sonny”.

The word “sonus” in Latin represents words like sonic sound. The other word “sonny” means

little son. Used in combination, Sony is supposed to represent a very small group of young

people who have the energy and passion towards unlimited creations and innovative ideas.

With the far-sight of expanding worldwide, it was in 1958 that the company formally adopted

“Sony Corporation” as its corporate name. Easy to pronounce and read in any language, the

32

name Sony, which has a lively ring to it, fits comfortably with the spirit of freedom and open-

mindedness.

List of SONY Products

BRAVIA

The era of High Definition has arrived and Sony’s Bravia LCD TVs are here to help you fully

enjoy its advantages. Innovation, creativity and technology come into play in the creation of

our LCD TVs, bringing an unprecedented level of realism and stunning clarity to your

movies, both visually and aurally. With slim and stylish designs, Bravia LCDs can fit

anywhere in your home. Additional features like faster response time and PC connectivity

help create the full entertainment experience.

X Series

Precision colour reproduction and high quality screen resolution are the key factors when

creating the Bravia X-Series. Including features like a Full HD (1920 x 1080) LCD panel,

Live Colour Creation and Sony’s intelligent picture enhancement technology- the Bravia

Engine, your movies will come alive. The X-Series also offers astounding stereo sound to

match the spectacular visuals, providing you a wholesome entertainment experience.

Watching movies at home is never the same again.

W Series

The era of High Definition has arrived and Sony’s Bravia LCD TVs are here to help you fully

enjoy its advantages. Innovation, creativity and technology come into play in the creation of

our LCD TVs, bringing an unprecedented level of realism and stunning clarity to your

movies, both visually and aurally. With slim and stylish designs, Bravia LCDs can fit

33

anywhere in your home. Additional features like faster response time and PC connectivity

help create the full entertainment experience.

V Series

Enjoy stunning image quality and convenience with Sony’s LCD Bravia V-Series, which on

top of an unprecedented degree of detail, also provides high connectivity, thanks to the

HDMI input that allows you to link up to any other HD sources like Blu-ray players,

PlayStation 3 gaming console and HD camcorders. It delivers an uncompressed, all digital

audio/ video interface between your Bravia TV and any HDMI-equipped audio/video

components. Turn your viewing into an incredible experience now.

S Series

The Sony Bravia LCD S-Series follows in the Sony Bravia line of high performance and

stylish LCD TVs. Thanks to Sony’s unique S-PVA technology; you can now enjoy vivid

colours, wide viewing angles and quick response time. Designed to be versatile, the S-Series

is equipped with an extensive range of input interfaces; the PC input allows your TV to

double up as a computer monitor; while with HDMI, you can hook your TV up with other

compatible players. Experience the world of high definition now.

G Series

With Sony’s Bravia LCD G series, you get to enjoy stylish design and superior image and

sound quality. Be it for home or office use, you will find the G-series a great addition. The

TVs come with user-friendly navigation, convenient front mounted controls, and an easily

comprehensible remote control. You can also adjust the angle of the TV to suit viewers’

position with the base stand that can tilt, or choose to mount it on the wall with the Sony wall

mounting bracket.

Home Theatre System

Combining the latest in video and audio technologies, Sony has developed a series of Home

Theatre Systems that provides you with an enhanced home theatre experience. Our up scaling

DVD players ensure the delivery of the best in video performance while our Digital Signal

Processing guarantees a surround sound environment. Some are even compatible with the

34

latest digital television and have dedicated audio input for connecting to your portable digital

music players.

Cyber-shot (Digital Camera) Everyone can be a photographer with the wide range of Cyber-shot cameras of Sony that aim

to provide you utmost satisfaction. Packed with plentiful features like Super Steady Shot,

High Sensitivity and Real Imaging Processor, you can be sure that each of our Cyber-shot

cameras delivers a superior performance. To complement their functions, Sony has also

developed a series of accessories that specifically caters to the Cyber-shot range.

Handycam (Video Camera) It doesn’t matter if you are making family videos, filming documentaries or developing

feature films. Whatever the purpose, we have the right kind of camcorder you need and can

afford. Sony’s Handycam® Camcorders have a variety of different features and functions that

help deliver spectacular video performances of stunning clarity.

VAIO

Combining form, function and the latest in technology, Sony provides a range of IT and

computing devices, storage media, accessories and peripherals to better serve all your IT

needs.

PlayStation

Gaming would not be the same without the invention of the Sony PlayStation series. In

addition to the highly popular PlayStation 2, there’s the handy PlayStation Portable and next-

generation console PLAYSTATION 3. Powerful consoles must be accompanied with

compelling games, and Sony offers games of all genres to match your gaming preference.

X-plod

35

If you spend long hours in your car everyday, it’s important to equip it with enough

entertainment so that you’ll never have a dull moment. Car audio entertainment need not be

limited to just your favourite radio stations or CDs. Thanks to Sony Xplod mobile

entertainment technology, you can enjoy music from more sources. You now can even

experience visual entertainment with our innovative Touch-Screen Multimedia Centre

receiver. Riding the car is never the same experience again.

Hi-Fi System

Audiophiles need look no further than Sony’s selection of high-power Hi-Fi Systems that can

fill your whole room with high quality stereo sounds, thanks to superb speakers and powerful

components.

Sony Ericsson

With Sony Ericsson’s colourful and innovative collection of mobile phones, you can

definitely find one that will fit into your lifestyle, budget and shows off your character.

We’ve also created a series of handy mobile phone accessories so you can spruce up your

mobile phone’s appearance, prevent it from damage, or enhance its usage

WEGA (CRT) TV It’s all about features, quality, style and price with Sony’s CRT TVs. Our range of CRT TVs

offer analog and digital high-definition inputs, superior audio features and picture-enhancing

technologies for superior visual and aural results.

36

CHAPTER-2 REVIEW OF LITERATURE

37

“Gardner, Meryl Paula(1985)”

The mediating role of mood states and their potential importance to

consumer behavior research are examined through the creation of a

conceptual framework. A review of previous psychological research

shows that mood states affect behavior, evaluation and recall both

directly and indirectly. These effects are examined to find their range and

limitations, and their implications for consumer behavior are studied in

three areas: service encounters, point-of-purchase stimuli, and the

content and context of communications. The feasibility and viability of

mood-related approaches to marketing research and practice are also

discussed.

“P.S. Raju, Associate Professor, School of Business, College of Business and Public Administration, University of Louisville, Louisville, Kentucky, USA(1990)”

This article develops a model of Consumer behaviour in international markets is a topic that

is still not well understood. Proposes a framework, called the A-B-C-D paradigm. Suggests

that a marketer examine four stages – access, buying behaviour, consumption characteristics,

and disposal – covering the entire spectrum of consumer behaviours with respect to a

product/service. The paradigm is universally applicable to any particular culture or country of

interest. Since there has been no comprehensive examination of consumer behaviour in

eastern Europe and the Third World, focusses on using the A-B-C-D paradigm to gain a

38

better insight into consumer behaviour in these countries. Offers recommendations to

companies wishing to market their products in these countries.

“Saeed Samiee(1994)”

The author proposes and tests that In a global marketplace, the competitive position of firms

is determined by many factors. One critical consideration that influences this position is the

number of competing brands and their acceptance by customers. The developed nations

constitute the biggest markets in the world, which annually import hundreds of billions of

dollars worth of foreign products. In addition, there has been a proliferation of foreign brands

that are manufactured or assembled and marketed in these nations by local and foreign-based

finns. Customers everywhere can choose from a set of brands that includes foreign-

manufactured or licensed products covering every conceivable product category, from foods,

toys, and apparel to automobiles, computers, and industrial robots. Quite understandably,

many such brands have achieved an enviable market position. Nevertheless, the marketing of

such a large number of foreign brands leads to the issue of whether customers are sensitive to

and concerned about where products and/or brands are manufactured or originate.

The literature in this area, generically labeled as "country-of-origin," has almost invariably

revealed some source-country-related bias toward non-domestic products [Bilkey and Nes

1982]. The implied rationale behind the close scrutiny of the country-of-origin issue is its

utility as a predictor of customer attitudes and subsequent choice behavior. Researchers have

examined this phenomenon for over twenty-five years. Not surprisingly, with so many studies

and research designs, some have produced conflicting results (see Table 1). Marketing

scholars remain intensely interested in studying this phenomenon and, as this line o...

“Nancy D. Albers-Miller(1999)”

Trade in contraband amounts to billions of dollars each year, and yet the buyers of these

products are still a mystery. The purpose of this study was to model the decision to purchase

illicit goods, using four predictor measures: product type, buying situation, perceived

criminal risk, and price. Part-worth conjoint analysis was used to obtain individual weights of

main effects and selected interaction effects on the willingness to purchase. Individual

respondents evaluated the purchase of illicit goods differently. Cluster analysis was used to

segment the respondents. Discriminant analysis was used to assess variable importance. The

39

overall model was shown to be significant. Although the results varied by cluster, the main

effects of product type, buying situation and price were all significant predictors of

willingness to buy. The interactions of risk with product type and price with product type

were also significant predictors for some clusters.

“John Fong and Suzan Burton(2005)”

The important influence of peer recommendations on consumer purchases has been strongly

established. However, the growth of electronic discussion boards has recently created an

additional channel for product recommendations and endorsements between people who have

never met, and anecdotal reports suggest that such recommendations can be influential in

subsequent choice. This study examines and compares recommendations on digital camera

electronic discussion boards within US and China based websites. The analysis showed a

significant country of origin effect among users of a Chinese web site, in the form of a

significantly higher frequency of negative references to brands originating from Japan.

Information seeking behaviour was also found to vary between the two sites, with users of the

China based website more likely to request information, thus possibly increasing the

likelihood of, and influence of, online word-of-mouth for users of this website.

“Ron Edwards, Anne-Marie Gut and Felix Mavondo(2006)”

The author has investigated that the Academic studies of buyer reaction to unpopular political

events in the country of origin of products have focused on consumer markets. This paper

aims to extend Klein, Ettenson and Morris' [Klein, J., Ettenson, R., & Morris, M. (1998). The

animosity model of foreign product purchase: An empirical test in the People's Republic of

China. Journal of Marketing, 62(1), 89–101] concept of consumer animosity to industrial

markets by comparing industrial and consumer buyer reaction to the nuclear tests conducted

by France in the Pacific in the mid-1990s. It investigates whether firms in the B2B sector

were affected more than those in B2C markets, whether entry mode was significant, and

examines the way in which firms in the two market sectors responded. The results show that

buyer animosity was less pronounced in industrial than in consumer markets. They also show

that entry mode can influence the experience of animosity.

“Yasmin van Kasteren(2007)”

In consumer societies, individual impact on the environment is largely mediated by consumer

behaviour. Consumer behaviour (sustainable or not) is rarely just the result of discrete

40

personal decisions aimed at maximising utility, it is rather the result of complex socio-

cultural negotiations about who, and what we are reflecting shared lifestyles and values.

Current approaches do not fully capture the difficulty and complexity involved in changing

consumer behaviour (Jackson, 2004) and offer only a partial explanation of environmentally

responsible behaviour. In this paper I take a critical look at the literature on environmentally

responsible behaviour and propose a theoretical understanding of sustainable consumer

behaviour focusing on socio-cultural constructs. Specifically, I propose building on the work

of Deci and Ryan to link the personal and social dimensions of values and identity to

sustainable consumer behaviour and outcomes through the concept

of intrinsic and extrinsic motivation.

CHAPTER-3

RESEARCH

METHODOLOGY

41

Research Methodology

Need For Study

The study aims to understand the major factors influencing the buying behavior and analysis

of the prospective customer’s for Sony products. This study will give insights to the marketer

that would help the markets to understand the consumer segment and increase the buying

pattern and general satisfaction level of this target group.

This helps the marketing people to arrive at meaningful ways to promote Sony products.

PROBLEM DEFINITION

“Studying Buying Behavior/Need Analysis & Generation of Prospective Customer List for

SONY Products”

My study was conducted in Chandigarh Tricity which is a potentially growing to consumer

durable. SONY has all sorts of outlets (SONY Exclusive & Multibrands counters) where

people comes to see the electronic gadget and spend their money to purchase these gadget

(Products)

Especially youth (20-30 years of age) are often considered to be interested to buy the SONY

products due to the advanced technology and Brand image. The study undertaken revealed

that the segment belonging to 30-40 years of age group consider that the SONY products are

42

very costly. They also feel that the after sale service which is given by the Company is not as

good in comparison with the amount charged for the goods.

The population of Chandigarh Tricity is vast and it is 12,25,837 in 2008. The youth

population is also sizeable enough.

Since today the pace of change is not easy to recognize, it is not possible simply for the

marketer to judge the taste, decision, trend, feature and pattern of consumer purchases. So my

research problem is associated with the turbulent of change in technology.

RESEARCH OBJECTIVE

1. To study the buying pattern of people towards consumer goods.

2. To determine the major factors influencing the buying decision process of the target

group.

3. To set out some basic marketing implications for the marketers to cater to different needs

of the targets group.

4. To have some insights on the relationship between marketing stimuli and youth responses.

5. To serve as guideline for further research in this area.

INFORMATION REQUIRED

1) What is the profile of customer in Chandigarh Tricity with respect to products and

services they purchase and the places they visit?

2) Which outlets/places are visited by them to purchase SONY products?

3) On what products and services do they spend most?

4) What are the sources of information for purchase of products?

5) How much do they spend?

6) How do they spend?

7) What are the basic factors influencing their buying decision process?

43

RESERCH DESIGN

1) Aim of Study.

The study aims to understand the major factors influencing the buying behaviours and

analysis the prospective customer’s for SONY products.

2) Purpose of Study.

This study is being made for summer training (Topic given -“Studying Buying

Behaviour/Need Analysis & Generation of Prospective Customer List for SONY

Products”)

3) Place of Study-Chandigarh Tricity

4) Data Collection.

The data which has been chosen for this report was primary data and secondary

data.

For the collection of data I have targeted the Chandigarh Sector 35,8,9 Mohali

phase 7,Punchkula Sector 11,14 , Sectors areas due to heavy purchase of SONY

products in this area.

The study takes place from 10 Feb to 24th March2009.

Data has been collected by preparing a set of questionnaire.

5) Sample Design.

I have taken the sample design of 60.

T- test is based on t- distribution and is considered an appropriate test for judging

the significance of a sample mean.

Chi-square is an important non-parametric test and as such no rigid assumptions

are necessary in respect of the type of population.

6) Data Analyzed.

Data will be analyzed through survey which is going to be held in some part of Bhilai.

7) Report Writing.

Report is going to be prepared in case of descriptive and diagnostic research studies,

where descriptive research studies are those studies which are concerned with describing

the characteristics of particular individual, or of a group, whereas diagnostic research

studies determine the frequency with which something occurs or its association with

something else. The studies concerning whether certain variables are associated are of

44

diagnostic research studies. As against this, studies concerned with specific predictions,

with narration of facts and characteristics concerning individual, group or situation are all

examples of descriptive research studies.

Hypothesis

On the basis of the Diagnostic research conducted, the following hypothesis has been

drawn.

Family is most important influencers for the individual customer for making a

purchase decision.

Buying behaviours of customer whose monthly income is between 10.001-15,000

is different from those customers whose monthly income is above then 25,000.

Descriptive Studies – has been carried out, the objective of descriptive study was to find

answer to questions like-“Who, what, where and when”. In conducting descriptive study

statistical method has been adopted.

Statistical Method – has been applied, as statistical method is the most widely used method in

marketing research and is the method usually implied when a survey is referred to. Data were

45

collected for statistical studies by interviewing. The percentages and means have been use in

the statistical method.

SOURCES OF DATA

1) Primary Data Source

2) Secondary Data Source

Both primary and secondary data sources have been used for data collection.

Primary Data Source-The major source of data was the “Primary source”

Primary data was collected from:-

Depth Interview

Survey-Questionnaire

The major source of data was from the primary source. The primary data was collected from

a sample of 60 customers in the age of between 20-30 years, by circulating the questionnaire

to the respondents.

Secondary source – Secondary data was collected from different journal and reports of Sony

products.

SAMPLING

SAMPLING PROCEDURE

Universe Studied

The universe studies consisted of customer belonging to the age group of 20 to 40 years.

Sony Exclusive, Chandigarh.

Sample Size

A sample of 60 customers between the age group of 20 to 50 years was selected, out of which

most of customer are between 20 to 30 years

Variables to be studied

Buying behaviour pattern of customer, the attributes which the youth consider while making

a purchase.

Sample Design

46

Sampling Method.

Probability sampling method was adopted where each element in the universe has

know/equal chance of getting selected.

Simple Random Sampling

Simple random sampling has been exercised. Simple random Sampling is the simplest

possible probability sampling method.

Objectives of Study

The objective of the summer training is to ensure that I as a management student develop in

real life for handling the specific project and also to develop all roundness in various

management activities related to the area of my specialization. This training gives me a

substantial corporate exposure and also serves as a useful tool of interaction with the

corporate sector.

The project has been derived from the field of ‘Marketing’ and is entitled as “Buying

Behavior/Need Analysis & Generation of Prospective Customer List for Sony Products in

Gurdaspur Tricity”. The main idea behind this project is:

To get an overall view of the product sale, promotion and problem faced by SONY

Products.

To make a knowledge about the market strategy of SONY in Gurdaspur Tricity.

47

Limitations

Time was a limitation with the quantum of data collected, hence analysis became

difficult.

The nature of project, which sometimes entered into personal zones like age, income

etc. created some difficulties during data collection.

There could have been efforts on a much detailed scale, but since time was limited,

the scope got limited.

As simple random sampling methods was adopted, the responders (units) selected by

simple random sampling method was from different places, this causes a great deal of

inconvenience.

Sample which was taken for this Survey was only 60 due to time limitation and other

constraints.

48

CHAPTER-4

DATA ANALYSIS

AND

49

INTERPRETATION

Data Analysis and Interpretation

(A) Analysis of Questionnaire and discussion (PART-I)

The analysis has been carried out with respect to 9 vital questions

1) Age mix of sample. (Age [in years] + Gender) (3.1)

Age(in years) Below 20 20-30 30-40 40-50 Above 50 Total

Male Nil 20 21 3 Nil 44

Female 5 6 4 1 Nil 16

50

0 10 20 30 40 50

Male

Female

Below 20 20-30 30-40 40-50 Above 50

Out of total of 60 respondents interviewed there are 44 male and 16 female.

While analysis of the data it was found out that 5 female belong to the Age group of

below 20.

While in the Age group of 20 to 30 there are 20 male and 6 female.

In the Age group of 30 to 40 there are 21 male and 4 female respondents.

But in the Age group of 40 to 50, only 3 male and 1 female have participated.

2) Educational profile of Respondents. (3.2)

Bhilai city is famous for his educational excellence, so I have decided to collect some

information about the respondent’s educational profile, so that marketer can understand

deeply which kind of consumers buy or interested for electronic gadget.

From the survey it was found that in city like Bhilai people are highly qualify, after studying

the respondents educational profile where out of 60 respondents, 53% are graduates and 26 %

are post graduates, so that it’s shows that people are highly qualified for using electronic

products.

Educational Profile Male Respondents.

Up to School Level 5%

Up to Higher Secondary 16%

Graduates 53%

51

Post Graduate 26%

Educational profile

up to school level, 5% up to H.S., 16%

Graduates, 53%

post Graduate, 26%

up to school level up to H.S. Graduates post Graduate

3) Family Size of the Respondents.(3.3)

While doing the survey It was found that there are 30 respondents whose family size

is less then 4 member

While 25 respondents has chosen the option of 4 to 6 members in there family

Remaining 5 have selected the option of more then 6 member in there family.

Family Size Respondents.

Less then 4 Member 30

4 to 6 Member 25

More then 6 Member 5

Total 60

52

Family Size

less then 4 member, 30, 50%4 to 6 member,

25, 42%

More then 6 member, 5, 8%

less then 4 member 4 to 6 member More then 6 member

4) Monthly Income of the Respondents. (3.4)

It was found that most of the respondents who have participated in the survey are belong to

the income group of below 10,000 and 10,000-15,000 monthly income.

Income Respondents.

Below 10,000 18%

10.000-15,000 22%

15,000-25,000 13%

Above 25,000 7%

Total 60

Monthly Income

Below 10,000, 18%

10.000-15,000, 22%

15,000-25,000, 13%

Above 25,000, 7% Below 10,000

10.000-15,000

15,000-25,000

Above 25,000

5) Awareness of Respondents for SONY Products. (3.5)

53

It was found that most of the respondents are aware of SONY Ericsson, Cyber-Shot

and Handycam.

But in the compression of these three above products respondents are lacking

awareness of the SONY Products.

Awarness

Sony Ericsson, 36%

Wega, 12%

Handycam, 14%

Playstation, 9%Walkman, 7%

Vaio, 3%

X-plod, 1%

Cyber-Shot, 14%

Bravia, 2%Sony hi-fi, 2%

Bravia Cyber-Shot Vaio X-plod Handycam

Playstation Walkman Sony Ericsson Wega Sony hi-fi

6) Respondents interested to buy Sony Products. (3.6)

Again we have found the same result when we have analyzed the respondents interest to buy

Sony products where 30% respondents has say that they wanted to buy SONY Ericsson and

25% respondents wants to purchase SONY WEGA.

But in the case of buying the Cyber-Shot and Handycam respondents have show less interest

as comparing to the previous question asked awareness of SONY Products.

54

Interest

Sony hi-fi4%

WEGA25%

Sony Ericsson30%

Walkman8%

Playststion4%

Handycam8%

X-plod2%

Vaio3%

Cyber-shot10%

Bravia6% Bravia

Cyber-Shot

Vaio

X-plod

Handycam

Playstation

Walkman

Sony Ericsson

WEGA

Sony hi-fi

7) Place where the respondents wanted to purchase Sony Products.(3.7)

It has been notice that most of the respondents wanted to purchase SONY products from

Multi-Brands counters, behalf of this choice respondents has replied that when visiting Multi-

Brand counters, they get other company products too from where they can compare the

SONY products with other company products.

Counters SONY World SONY ExclusiveMulti-Brand

Counters TotalInterested Customer 10 15 35 60

1015

35

05

101520253035

SONYWORLD

SONYEXCLUSIVE

Multi-Brandcounters

Intrested customer

8) Factor that are influence respondents to purchase SONY Products.(3.8)

55

By the survey it has been notices that the most important factors that influence the respondents were the company brand name and products feature.

Rank Factors

1st Company brand name

2nd Product feature

3rd Promotion activities

4th Influenced by others

5th Price

6th Services

Factors that influenced

product feature, 29%

Company brand name, 37%

promotion activities, 8%

Influenced by others, 16%

Price, 7%Services, 3%

Company brand name product feature promotion activities

Influenced by others Price Services

9) When Respondents prefer to buy SONY products. (3.9) It was found that most of the respondents wanted to purchase products in the offers

schemes, where buyer enjoy most of the benefits after purchase the products.

So it has been noted that respondents mostly wanted to purchase the products in the

periods of discount offers which is given by company or Dealers to its customers.

Offers Interested RespondentsSale Offer 20%

Discount Offer 50%

Finance Offer 30%

56

Interested Responders

Sale offer, 20%

Discount offer, 50%

Finance offer, 30%

Sale offer Discount offer Finance offer

B) Analysis of Questionnaire and discussion [SONY BRAVIA (PART-II)]

1) Respondents are aware of which BRAVIA models. (3.10)

415

35

5 10

10

20

30

40

W Series V Series S Series X Series G Series

Popular Series BRAVIA

Popular Series

2) This features Respondents like in the S Series model. (3.11)

57

What make S series so Popular

Service, 4

Picture Quality, 15

Audio, 3

Price, 20Performance, 6

Colours [x.v. colour], 12

Performance Colours [x.v. colour] Service Picture Quality Audio Price

While analyzing which is the best model of BRAVIA LCD, so our most of the respondents

has replied the S series model, out of 60 respondents 35 respondents has choice the S series

the best one.

Mean while 15 respondents have choice V series as the best one, where as 4 and 5

respondents has made their choice for the W Series and X Series respectively.

And in the case of G Series only 1 respondent has shown interest.

Know the objective was to find out which features influence respondents to choice S Series

Model. It was noted that price and picture quality are those feature which make S series so

popular among the respondents.

HYPOTHESIS TESTING FOR SAMPLE TAKEN FROM SURVEY.

Sample taken from 60 respondents.

(Sample) These features make S series so popular.

Features Performance(1)

Colours [x.v.colour]

(2)Service

(3)

Picture Quality

(4)Audio

(5)Price(6)

Responders 6 12 4 15 3 20

58

By applying x2 (chi-square) test.

Solution -

Let take the hypothesis that the sample is unbiased. If that is so, the probability of obtaining

any one of the six numbers is 1/6 and as such the expected frequency of any one number

coming upward is 60 x 1/6 = 10.Now writing the observed frequencies along with expected

frequencies and work out the value of x2 as follows:

FeaturesObserved frequency

Expected frequency (O-E) (O-E)2 (O-E)2/E

1 6 10 -4 16 1.62 12 10 2 4 0.43 4 10 -6 36 3.64 15 10 5 25 2.55 3 10 -7 49 4.96 20 10 10 100 10

Chi-square= 23

Hence, the calculated value of x2 = 23

▼ Degree of freedom in the given problem is

(η – 1) = (6 – 1) = 5

The table value of x2 for 5 degrees of freedom at 5 per cent level of significance is 11.071.

Comparing calculated and table value of x2 , we find that calculated value is more than the

table value and as such could have arisen due to fluctuations of sampling. The result, thus,

not support the hypothesis and it can be concluded that the sample is biased.

What make BRAVIA S Series Model so popular?

Uncompromised Superb Picture quality

BRAVIA S series TV is designed to bring your images to life unlike you’ve experienced in

conventional television. BRAVIA S series Full HD 1080 resolution and advanced BRAVIA

Engine will ensure that every image retains its full visual beauty, while Sony’s unique Live

Colour Creation technology brings out deep vibrant colour tones and motion flow 100Hz

ensures that you receive remarkably smooth action and sports scenes. All of this technology

culminates to display a perfect image on BRAVIA S series 10- bit panel for an experience

that you just can’t find anywhere else.

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Audio Empowered

Through years of innovation and research, Sony has come to produce S-Force Front Surround

for a complete surround sound experience from just the front speakers of your BRAVIA S

series. Along with the exciting new voice Zoom technology which allows you control over

the dialogue and voices of your television viewing, Sony is taking the television experience

to unheard of levels.

Sophisticated Design

In today’s high class society, the experience would not be complete without a modern and

well designed frame to show it off to the world. BRAVIA S series starts with the amazing

floating glass design created from the ground up by Sony’s lead engineers and expands on the

concept with a premium midnight blue finish. This enhanced styling makes BRAVIA S series

stand out as the centre of attention in any living space.

BRAVIA Engine

BRAVIA S series TV is renowned for its colour quality and clarity of detail, unmatched by

any other TV. At the heart of the BRAVIA S series TV is the BRAVIA Engine, a unique

fully digital processor. This engineering marvel processes and refines images from the source

for the final, beautiful, BRAVIA image.

Incredible Colour and Clarity

BRAVIA engine processes every image to ensure that you receive the deepest blacks, truest

colours and unmatched image clarity.

The BRAVIA Experience

This innovative image processor acts as a complete digital processing studio for every image

you view, for entertainment that is as remarkable and clear as it is in reality.

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Ultra-Wide viewing Angle (178 ۫ )

This almost semi-circular viewing angle means the BRAVIA experience can be enjoyed from

many positions as well as by many more people seated in front of the BRAVIA S series LCD

TV.

Advanced Contrast Enhancer (ACE)

By reproducing fine levels of gradation and dynamically controlling the contrast of every

image, the Advanced Contrast Enhancer delivers superior light, mid and dark tones in every

scene. Now you can enjoy those deep dark scenes without sacrificing the brightness of the

lighter elements.

BRAVIA S series HD World

BRAVIA S series brings your entertainment experience together in one place. With unique

new technologies designed to enrich and enhance your experience, nothing delivers a

combination of visual and audio in-home experience quite as stylishly in the BRAVIA S

series. Below are the flowing Products.

Play station

VAIO

HD Handycam

Digital Broadcast

Digital SLR α

Cyber-shot

Blu-ray Disc Player

Cinematic Experience

Delve into a surrounding theatrical experience with Sony technologies that deliver the most

realistic and captivating entertainment available. This way you can enjoy every film exactly

as it was originally intended on your BRAVIA S series LCD TV.

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One Touch Entertainment

Watch as your entire entertainment system comes alive with the push of a single button! With

BRAVIA S series theatre Sync, each entertainment device synchronizes itself with the others

so that a single command can bring every system online and playing your favorite

programmes instantly.

Theatre Mode

Working in close collaboration with Sony Pictures Entertainment has allowed for the creation

of Sony’s Theatre Mode. As Sony’s authorized picture setting for films, this setting

accurately balances the colours of dark scenes and retains an appreciable amount of “film-

grain”, so you experience every film exactly the way the director intended!

(c) Analysis of Questionnaire and discussion [Sony Cyber-Shot (PART-III)]

1) Respondents are aware of which model of Cyber-shot (3.14)

1812

4

26

0

5

10

15

20

25

30

DSC-W series DSC-T series DSC-H series DSC-S series

Popular model of Cyber-Shot

Popular model of Cyber-Shot

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2) This feature influence Respondents to switch to take Cyber-Shot DSC-S series. (3.15)

What make DSC-S Series so popular

Lens, 1

Internal Memory, 1

Weight (excluding accys), 6

Recording Movie modes, 2

ISO sensititivity, 2

Scene selection modes, 3

Battery life, 5

Imaging processor, 1

Effective Mega pixels, 4

Zoom, 2

CCD size, 1

LCD monitor, 2

face Detection, 2Colour Mode, 3

Body size(M x H x D)mm, 4

Macro Focus Range, 5

Supplied Accessories, 5

Price, 11

Effective Mega pixels Imaging processor Lens

Battery life ISO sensititivity Scene selection modes

Recording Movie modes Weight (excluding accys) Internal Memory

Zoom CCD size LCD monitor

face Detection Colour Mode Body size(M x H x D)mm

Macro Focus Range Supplied Accessories Price

While analyzing which is the best Series in Cyber-Shot, most of our respondents replied the

DSC-S series. Out of 60 respondents 26 respondents chose the DSC-S series as the best one.

Meanwhile, 18 respondents chose DSC-W series as the best one, whereas the other12 and 4

responders gave their choice to the DSC-T series and DSC-H series respectively.

Now the objective was to find out which features influence respondents to choose DSC-S

series. It was noted that price of DSC- S series make itself as the most popular series

comparing to other models.

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Chapter 5

Finding and Suggestion

64

Findings and Suggestions

Marketers should innovating new products with unique features having some

multipurpose utility which could create an appeal to the customers, for example,

company can manufacture those Cyber-Shot cameras having the capacity of 30 to 40

GB hard Disk memory which record up to 20Hrs to 27Hrs of video Recording as

Hard Disk Drive Handy-cam can do.

In case of price, price of products should not be too high. Marketer should follow the

strategy of ‘Good quality and services in fewer prices’. That can attract customers.

It was seen that generally customers like to visits those outlets which are frequently

visited by other customers, customers generally prefer Multibrands counters because

lots of products can be seen at on place (including Sony products), so Sony Exclusive

have to sharp look on the updated version Sony products at there showroom.

Regarding promotion marketers Sony Exclusive must build up unique imagery appeal

for their Sony products through advertisement (For example like Sony has an imagery

of quality).

More intense research works should be initiated, studying the specific needs and

attributes sorted by the customer for different kinds of product categories.

65

Conclusion

Before taking up the aspect of respondents buying behaviour, few points about the sample are to be considered.

The sample size was 60, consisting the Chandigarh Sector 8,9,35 areas, Mohali phase 7 and Panchkula sector 11,14.

Respondents mainly belong to the age groups 20 to 30 years.

Respondents mainly belong to the Monthly income group of 10,000 – 15,000.

Most of the respondents are Graduates and Post Graduates.

All respondents are resident of Chandigarh Tricity.

Sample consists of youth belonging to different socio-economic group. But a majority of respondents belonged to the premium class.

It is important to consider these points because the conclusions are valid for this population

only.

By the age Mix Sample it was found that most of the respondents are male how want to

purchase those products how are technically very advanced as per the launched of new

products came they rush to Sony outlets (Sony Exclusive or Multi-Brand counters) to buy

those products, as comparing to female they have less interest in products advancement as

compared to there necessity requirement. Most of respondents who belong to the monthly

income group of Rs10,000 – Rs15,000 buy the Sony products from finance scheme which is

offered by Sony India private Limited.(0 % Finance offer)

The roles played by members of the family varies with demographics parameters as well as

with the typed of products. While a number of psychological variables are useful in obtaining

into consumer's psyche, it is worthwhile to probe into some specific aspects of consumer

decision making in order to formulate marketing strategies. CDM enables marketers to

visualize a broad framework of stage and apply psychological or/ and group variables to a

specific product/ market/ brand situation. The influencer plays an important role in CDM.

66

Unlike the organizational buying process, in the case of a family, the influencer do not

usually have expertise but assume their respective roles on the basis of the family dynamics

Bibliography

Books

Broadbridge A, Marshall J,” International Retail & Distribution Management”,

Consumer complaint behaviour,Emerald Group Publishing Limited, Volume

23, Number 9, 1995 , pp. 8-18(11)

Malhotra .K Naresh,”Marketing Research”,Pearson Publishing Limited,Volume 5,pp.

533-545.

Kotler Philip, “Marketing Management”,8th Edition, June, 1995, Page no. 172-197.

Schiffiman Leon G. and Leslie Layas Kanuk, “Consumer Behaviour”, 6 th Edition,

1997, Market Segmentation, Page no. 48-64, Consumer Behaviour, Page no. 376-392,

Consumer Decision Making, Page no. 503-508.

Neal Mc, James V, An Introduction to consumer behaviour, New York, Willey 1973

Sharma, D. D. Marketing research, New Delhi, Sultan Chand & Sons, 1999

Article/Journal

Bolton Ruth N, and. Drew James H,” A Multistage Model of Customers' Assessments

of Service Quality and Value: Journal of Consumer Research Inc.”,Vol no5,no2(June

1991 pages123-187)

Dwyer FR, Schur PH , “Service quality, customer satisfaction, and customer value: A

holistic perspective International Journal of Hospitality Management”,Vol. 18, no1,

( March 1999, Pages 67-82)

67

Nancy D. Albers-Miller,” Consumer misbehavior: why people buy illicit goods:

Journal of Consumer Marketing”,Vol.16,(1999)

Saeed Samiee “,Customer Evaluation of Products in a Global Market; Journal of International Business Studies”, Vol. 25,(1994)

Websites

Sony India Private Limited official Website (www.sony.co.in)

http://www.sciencedirect.com/science

http://www.ingentaconnect.com/content/mcb

http://www.emeraldinsight.com/Insight/viewContentItem

http://www.ibef.org/artdisplay.aspx?cat_id=391&art_id=18049

68

ANNEXURE

69

.

“COMSUMER BUYING BEHAVIOUR OF SONY PRODUCTS IN GURDASPUR”

Please put a tick (√) in appropriate brackets.

PART - I

1. Age (in years)

Below 20 ( ) 20 – 30 ( ) 3 0 - 40 ( ) 40 - 50 ( )

50 Years & above ( )

2. Gender

Male ( ) Female ( )

3. Educational Profile

Up to School level ( ) Up to H.S ( )Graduates ( ) Post Graduate ( )

4. Family Size

Less then 4 member ( ) 4 to 6 member ( ) More Then 6 member ( )

5. Monthly Income (in Rupees)

Below 10,000 ( ) 15,001 – 25,000 ( )10,001 – 15,000 ( ) Above 25,000 ( )

6. Did you know about SONY Products?

Bravia ( ) Handycam ( )Cyber-Shot ( ) Playstation ( )Vaio ( ) Walkman ( )X-plod ( ) Sony Ericsson ( )

7. Which product you have buyed in SONY or having interested to buy it? (Tick 3 product)

70

Bravia ( ) Handycam ( )Cyber-Shot ( ) Playstation ( )Vaio ( ) Walkman ( )X-plod ( ) Sony Ericsson ( )WEGA ( ) Sony hi-fi ( )

8. From where you like to buy the SONY Product and Why?Sony World ( ) Sony Exclusive ( )

Multi-Brand counter ( ) Why?………………………………………………………………………………………….…………………………………………………………………………………………..

9. Rank the factor that influence you to purchase SONY products in the scale of 1 to 6, (1being the highest and 6 being the lowest)

Company brand name ( ) Promotion activities ( ) Product feature ( ) Price ( )

Services ( ) Influenced by others ( ) Any other (Please specify)

…………..…………………......................

10. When you prefer to buy Sony products?

Sales offer ( ) Discount offer ( )Any other (Please specify) …………………………………………….

11. View about Sony products? ……………………………………………………………………………….……………………………………………………………………………...

Personal Details:

Name:…………………… age:

71

PART - II

SONY BRAVIA.

1. Are you aware of BRAVIA Models?

W series ( ) X series ( )V series ( ) G series ( )S series ( )

2. Which model or home theatre series you have purchased or interested to buy and Why?

BRAVIA models (Starting Onwards*) W series ( ) X series ( )[MRP Rs. 64,990 /-*] [MRP Rs. 179,900 /-*]V series ( ) G series ( )[MRP Rs. 52,990 /-*] [MRP Rs. 24,990 /-*]S series ( )[MRP Rs. 34,990 /-*]

Why?…………………………………………………………………..........………………………………………………………………………..

BRAVIA Theater

DAV-DZ777 ( ) DAV-DZ570 ( ) DAV-DZ370 ( ) DAV-DZ270 ( )

Why?…………………………………………………………………..........………………………………………………………………………..

3. Which features you like in BRAVIA?

Performance ( ) Picture Quality ( )

72

Colours [x.v.colour] ( ) Audio ( )Service ( ) Any other ……………………...

(Please Specify)Why?…………………………………………………………………..........………………………………………………………………………..

4. View about SONY BRAVIA?…………………………………………………………………..........

-----------------------------------------------------------------------------------------------------

PART - IIISONY CYBER-SHOT.

1. Are you aware of CYBER-SHOT Models?

DSC- W150 ( ) W170 ( ) W300 ( )

[MRP Rs. 15,990/-] [MRP Rs. 17,990/-] [MRP Rs. 19,990/-]

DSC- W110 ( ) W120 ( ) W130 ( )

[MRP Rs. 10,990/-] [MRP Rs. 12,990/-] [MRP Rs. 14,990/-]

DSC- T70 ( ) T300 ( )

[MRP Rs. 14,990/-] [MRP Rs. 19,990/-]

DSC- T2 ( )

[MRP Rs. 17,990/-]

DSC- H10 ( ) H20 ( )

[MRP Rs. 15,990/-] [MRP Rs. 19,990/-]

DSC- S730 ( ) S750 ( )

[MRP Rs. 8,990/-] [MRP Rs. 9,990/-]

2. Which series of CYBER-SHOT you have purchased or interested to buy and Why?

DSC- S730 ( ) DSC- W110 ( )DSC- T2 ( ) DSC- H10 ( )Any other (please Specify)………………….....................................................

Why?…………………………………………………………………..........………………………………………………………………………………………..

3. In your CYBER-SHOT what features due you want? [Tick out 12]

Effective Mega pixels ( ) Zoom ( )

73

Imaging Processor ( ) CCD Size ( )

Lens ( ) LCD Monitor ( )

Battery Life ( ) Image Stabilizer ( )

ISO Sensitivity ( ) Face Detection ( )

HD Output ( ) In-Camera Editing ( )

Scene Selection Modes ( ) Colour Mode ( )

Recording Movie Modes ( ) Body Size (M x H x D) mm ( )

Weight (excluding accys) ( ) Macro Focus Range ( )

Internal Memory ( ) Supplied Accessories ( )

Any other (please Specify)…………………..................................

4. View about SONY CYBER-SHOT?…………………………………………………………………........................……………………………………………………………………………………………………………………………………………………………………

74

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