A STUDY OF CONSUMER’S BUYING BEHAVIOUR TOWARDS ELECTRONIC HOME APPLIANCES Submitted in partial fulfillment for the award of the Degree MASTER OF BUSINESS ADMINISTRATION (MBA) By SIVAJI GANESH BOBBILI Roll No: 064080138 Bharatiya Vidya Bhavan’s Vivekananda College (Affiliated to OSMANIA UNIVERSITY, Hyderabad) Department Of Management studies. Page 1
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Consumers Buying Behaviour Towards Electonic Home Appliances
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A STUDYOF
CONSUMER’S BUYING BEHAVIOUR TOWARDS ELECTRONIC HOME
APPLIANCES
Submitted in partial fulfillment for the award of the Degree MASTER OF BUSINESS ADMINISTRATION (MBA)
By
SIVAJI GANESH BOBBILI
Roll No: 064080138
Bharatiya Vidya Bhavan’s Vivekananda College
(Affiliated to OSMANIA UNIVERSITY, Hyderabad)
Sainikpuri, Secunderabad - 500094
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Declaration
I hereby declare that this Project Report titled “A Study of Consumer’s Buying Behaviour Towards Electronic Home Appliances” submitted by me to the Department of Business Management, Osmania University, Hyderabad is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma/certificate or published any time before.
Place:Date: (Sivaji Ganesh Bobbili)
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Acknowledgement
I take this opportunity to thank Mr. Y.Ashok (Principal, Bharatiya Vidya Bhavan’s Vivekananda College), Prof S.Ananda Reddy (Course director, Department of management studies) for their encouragement in doing the project work.
I would like to thank Dr N.S.Chakravarthy (Head, Department of Management Studies) for extending his valuable guidance and help during the project for successful completion.
I also thank Mr.M.V.S.Mahendra for his guidance and suggestions and his kind help and motivation in completing the project.
Finally, I thank my family members and friends for their continuous support during my study period.
(Sivaji Ganesh Bobbili)
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CONTENTS
CHAPTER 1 INTRODUCTION (6-8)
Intoduction Objectives of the study Scope of the study Limitations of the study Research methodology
67778
CHAPTER 2 HOME APPLIANCES INDUSTRY (10-16)
Introduction of home appliances Consumer electronics and home appliances Key growth drivers of the industry Marketing strategy adopted by some companies
10111112
CHAPTER 3 THEORITICAL FRAMEWORK (18-33)
Introduction of buying behavior Importance of consumer behavior Buying decision process Types of buying behavior Factors affecting consumers buying behaviour
1819202223
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION (35-54)
Introduction Classification of research Research problem Research design Methodology Data collection Data analysis Data interpretation
3536363737384041
CHAPTER 5 CONCLUSIONS AND SUGGESITIONS (56-57)
Introduction Conclusions Suggesitions
565657
APPENDICES (59-64) Questionnaire Bibliography
5964
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CHAPTER - 1
INTRODUCTION
INTRODUCTION:
In today’s world of hyper competition and globalization, every company is trying to
survive and to perform their best in the existing condition to attain the desired level of
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their potential customers. In this global economy the change is created by
liberalization in our country. India is now playing a major role. The big MNC’s have
all entered in our market with their wide range of superior quality products between
our and their products at large.
Today Indian market is growing in world and many company exist with superiors
product line especially in electronic home appliances range so it is very important to
pay attention towards products and king i.e., customer. In present scenario customers
are more aware about and sound enough to take the most rational decision only to
achieve satisfaction.
The Indian consumer electronics products and household appliances industry has an
annual turnover of approximately Rs.190 billion. The key products in the Indian
consumer electronics are colour TV, refrigerators, air conditioners and washing
machines At the product level, within the consumer electronics and household
appliances industry in India the penetration level of CTV is the highest, followed by
refrigerators, washing machines and air conditioners.
Home appliances are that without which a modern home is considered incomplete,
especially in urban areas. In metro cities and big towns, appliances are regarded as a
boon, as they are instrumental in cutting down the time involved in most of the
domestic chores. So the researcher studies the consumer’s buying behaviour towards
electronics home appliances.
OBJECTIVES OF THE STUDY:
1) To find out factors that influence buying decision.
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2) To find out sources of information used by customers before making decision of
specific brand of home appliance.
3) To know about features for which the potential customers looks for when they buy
any branded home appliance.
4) To find out factors that influence buying decision.
5) To find out sources of information used by customers before making decision of
specific brand of home appliance.
6) To know about features for which the potential customers looks for when they buy
any branded home appliance.
SCOPE OF THE STUDY:-
1) Study helped to know about customer’s expectation and opinion.
2) This Study helped to know the different services provided by home appliance
companies.
LIMITATIONS OF THE STUDY:-
1) Sample size of 100 respondents were covered by the study.
2) This study was limited for the Hyderabad city only; as such the findings of the
study may not be applicable in studies of other city.
3) Sometimes feedback obtained from the respondents was not proper thus result
may vary.
RESEARCH METHODOLOGY:
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Research methodology is used to solve the research problem which is understood as a
science of studying how research is done scientifically. Primary data collected by
well-structured questionnaire and interview method. Secondary data was collected
from books, internet and newspapers.
The sample size was 100 respondents (75 men and 25 women) in Hyderabad. The
sampling unit of the study was all users of home Appliances in the age group of 30-45
yrs of middle income group in Hyderabad city.Non-probability convenience sampling
technique was used.
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CHAPTER – 2
HOME APPLIANCES INDUSTRY
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Introduction of Home appliances:
A major appliance, or domestic appliance, is usually defined as a large machine which
accomplishes some routine housekeeping task, which includes purposes such as
cooking, food preservation, or cleaning, whether in a household, institutional or
industrial setting.
Major appliances are differentiated from small appliances because they are large,
difficult to move, and generally fixed in place to some extent. Another frequent
characteristic of major appliances is that they may have substantial electricity
requirements that necessitate special electrical wiring to supply higher current than
standard electrical outlets can deliver. This limits where they can be placed in a home.
Major appliances have become more technically complex from the control side
recently with the introduction of the various Energy Labeling rules across the world.
This has meant that the appliances have been forced to become more and more
efficient leading to more accurate controllers in order to meet the regulations.
Home appliances companies in India:
Home appliances are that without which a modern home is considered incomplete,
especially in urban areas. In metro cities and big towns, appliances are regarded as a
boon, as they are instrumental in cutting down the time involved in most of the
domestic chores.
There are many home appliance companies in India like Videocon, Voltas, Godrej,
Bluestar, Kenstar etc. apart from them there are various international companies also
that deal in domestic manufactures are Samsung, LG, Whirlpool, Kenmore etc. with
the arrival of international brands in Indian market, the competition among rival
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companies have become stiff, which results in further improvement in qualities and
depreciation in prices of most of the home appliances in India. Since a majority of
products are electrically operated, the focus is on such household appliances that are
efficient in power consumption.
Most of the leading home appliances manufacture and companies have set up their
exclusive retail outlets in important towns and cities of the country. Besides there are
local home appliances suppliers, manufactures, wholesalers and retailers spread
throughout India.
Consumer electronics and home appliances -
The Indian consumer electronics products and household appliances industry has an
annual turnover of approximately Rs.190 billion. The key products in the Indian
consumer electronics are colour TV, refrigerators, air conditioners and washing
machines At the product level, within the consumer electronics and household
appliances industry in India the penetration level of CTV is the highest, followed by
refrigerators, washing machines and air conditioners.
The key growth drivers of the industry are -
Rising income levels and increasing affordability, fueling consumerism and
growth in demand for inspirational goods.
Change in perception of consumer goods as basic necessities as opposed to
luxuries largely driven by increased awareness and advertising.
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Rationalizing of prices by key players due to a conductive tariff policy y the
government.
Increasing demand for technology driven replacement of consumer goods and
household appliances.
Marketing strategies adopted by some companies -
Some analysts are of the opinion that the cornerstone of LG's strategy was its heavy
advertising. In 2002, it spent around 1.3 billion on advertising. Communication
creates a mind space among the consumers and LG has occupied that fairly well.
In all the communications of LG, the USP remained the same for individual products.
For refrigerators, it was "preserve nutrition;" for CTVs, it was "less strain on eyes;"
for air conditioners, it was "healthy ambience and air quality;" for washing machines
it was "fabric care;" and for microwave ovens it was "healthy cooking.
LG is adopting the `Blue Ocean' strategy through which it plans to launch some path
breaking products and technologies. Under this strategy, they will be entering new
segments and markets, and will aim to create uncontested market space. An aim is to
double revenues, profit and shareholder value and be among the global top three by
2010.
PHILIPS
Apart from initiating new marketing and distribution programmes, Philips will also be
launching a range of new products during the rural initiative. They have specially
designed value-for-money products specifically targeted at the semi-urban and rural
consumer in India, across our CTV and audio product range. The pricing for these
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products has been structured to make it affordable for their target audience. Other new
models to be introduced will include features such as a new `Eye-fi' technology which
allows picture improvement under any cable signal condition, economy in electricity
consumption and on-screen display in the regional language, among other things.
On the distribution front, Philips claims to have the biggest distribution network (as
compared to other consumer electronics companies) and a high degree of penetration
even in the rural and semi-urban areas. The company has carried out an extensive
product-wise mapping exercise over 540 districts across India., Keeping in mind the
objective of extensive physical reach of 80 per cent plus, they have developed a
second line of activity in their distribution set-up, so that there is a focus on improving
relations, trade with these retailers, and catering to their needs. These steps have
helped them in developing our volume reach, geographical reach and counter share
significantly.
Philips is hoping that its innovative rural marketing initiative coupled with the high
growth in the rural market will boost its market share. It is targeting to increase the
percentage.
SAMSUNG
The Rs 1,350-crore Samsung India Electronics Ltd is charting out an aggressive
marketing strategy to promote its home appliances range in the New Year. According
to Mr. Ravindra Zutshi, vice-president (sales and marketing), Samsung India
Electronics, and the company plans to invest Rs 25 crore towards developing new
moulds for its home appliances range.
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The company is in the process of rolling out 14 new colour television models this year
with new marketing and promotional initiatives. To announce the new range, the
company will be releasing an advertising campaign very soon. They plan to invest Rs
85 crore on mass media campaigns for Samsung’s entire range of products this year.
In the home appliance business, target is to garner a 19 per cent growth this year.
VIDEOCON
Videocon has become a house hold name as most upper middle and middle class
people identify its products, thanks to its huge spending in advertising and its
strategies to
Penetrate into semi-urban and rural areas in a big way. That it has achieved a market
leader position in both audio and video equipment and also remained in that position
for a considerable period (almost five years) bears testimony to the success of its
strategies to attract the customers. In other product lines like washing machines also it
witnessed a growing rate of success until 1997.
The company believes that the only strategy for survival in a competitive market is to
ensure customer satisfaction and leadership through quality and innovation,
technology and performance.
KELVINATOR
In an effort to promote its new product launches, Electrolux Kelvinator Ltd is
planning to launch a slew of marketing initiatives and promotions, targeted at trade
partners and consumers in the year 2003-04. In addition, the company also plans to
restructure its existing distribution system and consolidate its business operations.
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On the company’s new marketing initiatives they have launched new range of
Electrolux Kelvinator products with a new brand positioning such as ‘Nurturing
Hopes, Nourishing Life’, the worlds first - Life Nourishing System. This system is a
superior technologically advanced system with new features.
As part of its retailing strategy, the company has set up various shop-in-shop outlets,
and it is also planning to launch its customer relationship management (CRM)
initiatives, at the retail-end.
Electrolux is a market leader in refrigerators with its three brands Electrolux
Kelvinator, Electrolux and Allwyn.Every year, customers in more than 150 countries
buy more than 55 million Electrolux Group products for both consumers and
professional use.
GODREJ
The Rs 7,200-crore Godrej Group has finally unveiled its brand new corporate
identity and branding strategy at its headquarters in Mumbai. The group’s
strategy outlined a roadmap to invest in a renewed Godrej master brand and corporate
identity to support the targeted revenue growth of 25-30% compounded annually, for
the group.
The 111 year old Godrej Group had appointed global brand consultancy firm
Interbrand to reposition its master brand with a makeover that makes the group
identity modern as well as contemporary.
Unveiling the group’s brand strategy, The Indian consumer now has a more
demanding and youthful mindset. At Godrej, they have always been at the helm of
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changing and redefining the marketplace and this will now be reflected in a marketing
and branding strategy that accelerates profitable growth.
On the group’s makeover strategy, the revitalized corporate identity is a result of a
detailed analysis of product, service and business portfolio. Using the Godrej brand as
a unifier of businesses and people made sense because it is most valuable asset, it
cannot be replicated and it spans all their business
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CHAPTER – 3
THEORITICAL FRAMEWORK
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Introduction of Buying Behaviour:
It is defined as the mental, emotional and physical activities that people engaged in
when selection, purchasing, using and disposing of products and services so as to
satisfy need and desires.
The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how consumers think, feel, reason, and
select between different alternatives (e.g., brands, products);
The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
The behavior of consumers while shopping or making other marketing decisions;
Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
How consumer motivation and decision strategies differ between products that differ
in their level of importance or interest that they entail for the consumer; and how
marketers can adapt and improve their marketing campaigns and marketing strategies
to more effectively reach the consumer.
Understanding these issues helps in adapting strategies by taking the consumer into
consideration. For example, by understanding that a number of different messages
compete for our potential customers’ attention, one learns that to be effective,
advertisements must usually be repeated extensively. It is also learnt that consumers
will sometimes be persuaded more by logical arguments, but at other times will be
persuaded more by emotional or symbolic appeals. By understanding the consumer,
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the company will be able to make a more informed decision as to which strategy to
employ.
Consumer behavior refers to how a consumer behaves or acts or reacts in making a
purchase of goods and services of his choice in a given situation. Thus,
The consumer behavior reflects the behavior of individuals and organizations
in making purchase decisions.
It involves not only how and why consumers make buying decisions but also
focuses on the uses of goods and services.
It also notes how consumer disposes of their once new purchases. Do they
store it, give it away, and sell it, rent it or lent it.
Consumer behavior involves the whole buying decision process.
Consumer behavior is a sub set of human behavior.
Importance of consumer behaviour:
We all are consumers and spent most of our time in purchasing. We takes interest in
advertisement of consumer related items, talking about things we need to purchase.
We need insight into our own consumption related decisions.
Reasons for the development of consumer behaviour
The reasons Diversified preferences of buyers,
Special needs, lifestyles and personality of buyers,
Technological development
Shorter product life cycle,
Environmental concerns,
Consumer protection movement,
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Public policy concern,
Growth of international marketing
Buying decision process:
What influences consumers to purchase products or services? The consumer buying
process is a complex matter as many internal and external factors have an impact on
the buying decisions of the consumer.
When purchasing a product there several processes, which consumers go through.
These will be discussed below.
1. Problem/Need Recognition:
How do you decide you want to buy a particular product or service? It could be that
your DVD player stops working and you now have to look for a new one, all those
DVD films you purchased you can no longer play! So you have a problem or a new
need. For high value items like a DVD player or a car or other low frequency
purchased products this is the process we would take. However, for impulse low
frequency purchases e.g. confectionery the process is different.
2. Information search:
So we have a problem, our DVD player no longer works and we need to buy a new
one. What’s the solution? Yes go out and purchase a new one, but which brand? Shall
we buy the same brand as the one that blew up? Or stay clear of that? Consumer often
goes on some form of information search to help them through their purchase
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decision. Sources of information could be family, friends, neighbors who may have
the product you have in mind, and alternatively you may ask the sales people, or
dealers, or read specialist magazines like What DVD? To help with their purchase
decision. You may even actually examine the product before you decide to purchase
it.
3. Evaluation of different purchase options:
So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers
allocate attribute factors to certain products, almost like a point scoring system which
they work out in their mind over which brand to purchase. This means that consumers
know what features from the rivals will benefit them and they attach different degrees
of importance to each attribute. For example sound maybe better on the Sony product
and picture on the Toshiba, but picture clarity is more important to you than sound.
Consumers usually have some sort of brand preference with companies as they may
have had a good history with a particular brand or their friends may have had a
reliable history with one, but if the decision falls between the Sony DVD or Toshiba
then which one shall it be? It could be that the a review the consumer reads on the
particular Toshiba product may have tipped the balance and that they will purchase
that brand.
4. Purchase decision:
Through the evaluation process discussed above consumers will reach their final
purchase decision and they reach the final process of going through the purchase
action e.g. The process of going to the shop to buy the product, which for some
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consumers can be as just as rewarding as actually purchasing the product. Purchase of
the product can either be through the store, the web, or over the phone.
5. Post Purchase Behaviour:
Ever have doubts about the product after you purchased it? This simply is post
purchase behaviour and research shows that it is a common trait amongst purchasers
of products. Manufacturers of products clearly want recent consumers to feel proud of
their purchase; it is therefore just as important for manufacturers to advertise for the
sake of their recent purchaser so consumers feel comfortable that they own a product
from a strong and reputable organization. This limits post purchase behaviour. i.e. you
feel reassured that you own the latest advertised product.
Types of buying behaviour:
There are four typical types of buying behaviour based on the type of products that
intends to be purchased.
1. Complex buying behaviour -
Where the individual purchases a high value brand and seeks a lot of information
before the purchase is made.
2. Habitual buying behaviour -
Where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt.
3. Variety seeking buying behaviour -
Where the individual likes to shop around and experiment with different products. So
an individual may shop around for different breakfast cereals because he/she wants
variety in the mornings.
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4. Dissonance reducing buying behaviour –
When buyer are highly involved with the purchase of the product, because the
purchase is expensive or infrequent. There is little difference between existing brands
an example would be buying a diamond ring, there is perceived little difference
between existing diamond brand manufacturers.
Factors affecting Consumer buying behavior:
Consumer buying behavior is influenced and depends on various factors. Industrial or
business buyers are more predictable and they mostly rely on acumen and logic and
are most influenced by quality and price. However, in the consumer market, buying
behaviors are not that easy to predict or analyze.
The buying decisions of the consumer of any product can be influenced or based on
any of the following factors-
1. Price of the product:
The price of the product greatly influences the buyer's decision whether to buy or not.
2. Quality of the product:
According to studies the factor that influences consumer most, after price is the
quality of the product.
3. Availability of the product:
If the product is easily available its definitely going to be a factor in decision making.
4. Need of the product:
Need for the product will prompt the consumer to buy it.
5. Attractiveness of the item:
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It mostly occurs in impulse buying.
6. Convenience of the consumer and product:
If the product provides convenience through either is use or easy availability, the
buyer is more likely to purchase it
Factors affecting human behaviour are as follows:
1) Cultural
2) Social
3) Personal
4) Psychological
1) Cultural-
Culture is the most fundamental determinant of a persons want and behaviour. The
growing child acquires a set of values, perception preference, and behaviour through
his or her family and other key institutions
Culture is part of the external influences that impact the consumer. That is, culture
represents influences that are imposed on the consumer by other individuals.
The definition of culture offered in the text is "That complex whole which includes
knowledge, belief, art, morals, custom, and any other capabilities and habits acquired
by man person as a member of society." From this definition, one can make the
following observations:
Culture, as a "complex whole," is a system of interdependent components.
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Knowledge and beliefs are important parts. Other issues are relevant. Art, for
example, may be reflected in the rather arbitrary practice of wearing ties in some
countries and wearing turbans in others.
Culture has several important characteristics: (1) Culture is comprehensive. This
means that all parts must fit together in some logical fashion. (2) Culture is learned
rather than being something we are born with. (3) Culture is manifested within
boundaries of acceptable behavior. (4) Conscious awareness of cultural standards is
limited. (5) Cultures fall somewhere on a continuum between static and dynamic
depending on how quickly they accept change.
Cultural rules can be categorized into three types. Formal rules carry relatively
explicit standards as to how one should behave, and violations often carry severe
sanctions. Informal rules, on the other hand, are less explicit and may not carry
sanctions for violation. Finally, technical cultural rules involve implicit standards as
to what constitutes a good product.
Language is an important element of culture. It should be realized that regional
differences may be subtle.
Subculture is often categorized on the basis of demographics. While part of the
overall culture, these groups often have distinguishing characteristics. An important
consequence is that a person who is part of two subcultures may experience some
conflict.
Values are often greatly associated with age groups because people within an age-
group have shared experiences. Regional influence is significant.
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2) Social factors:
Social classes are relatively homogenous and enduring division in a society, which are
hierarchically order and where member should similar values, interests, and
behaviors.
Social classes have several characteristics. First persons within each class have tend to
behave more alike then person from two different social classes. Second, persons are
perceived as occupying inferior or superior position according to their social class.
Third, people’s social class is indicated by a no. of variables, such or occupation,
income wealth, education and value satisfaction rather than single variable.
Fourth, individual, can move from one social class to other up or down during their
lifetime. Social classes show distinct product and preference.
3) Personal factors:
Individual members of families often serve different roles in decisions that ultimately
draw on shared family resources. Some individuals are information gatherers/holders,
who seek out information about products of relevance. These individuals often have a
great deal of power because they may selectively pass on information that favors their
chosen alternatives. Influencers do not ultimately have the power decide between
alternatives, but they may make their wishes known by asking for specific products or
causing embarrassing situations if their demands are not met. The decision maker(s)
have the power to determine issues such as:
Whether to buy;
Which product to buy (pick-up or passenger car?);
Which brand to buy;
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Where to buy it; and
When to buy.
Group Influences
Humans are inherently social animals, and individuals greatly influence each other. A
useful framework of analysis of group influence on the individual is the so called
reference group—the term comes about because an individual uses a relevant group as
a standard of reference against which oneself is compared. Reference groups come in
several different forms. The aspirational reference group refers to those others against
whom one would like to compare oneself. Associative reference groups include
people who more realistically represent the individuals’ current equals or near-equals
—e.g., coworkers, neighbors, or members of churches, clubs, and organizations.
Finally, the dissociative reference group includes people that the individual would not
like to be like.
Reference groups come with various degrees of influence. Primary reference groups
come with a great deal of influence—e.g., members of a fraternity/sorority. Secondary
reference groups tend to have somewhat less influence—e.g., members of a boating
club that one encounter only during week-ends are likely to have their influence
limited to consumption during that time period.
Another typology divides reference groups into the informational kind
(influence is based almost entirely on members’ knowledge), normative
(members influence what is perceived to be "right," "proper," "responsible," or
"cool"), or identification. The difference between the latter two categories
involves the individual’s motivation for compliance. In case of the normative
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reference group, the individual tends to comply largely for utilitarian reasons
—dressing according to company standards is likely to help your career, but
there is no real motivation to dress that way outside the job. In contrast, people
comply with identification groups’ standards for the sake of belonging—for
example, a member of a religious group may wear a symbol even outside the
house of worship because the religion is a part of the person’s identity.
4) Psychological factors:
Psychological Factors also influence buying behaviour of consumer such as
motivation, perception, learning, belief and attitude.
Perspectives on Consumer Behavior and Motivation:
People considered several perspectives on behavior as a way to understand what
motivates the consumer. Each of these perspectives suggests different things as to
what the marketer should do and what can (and cannot) be controlled
Properties of motivation:
Motivation is described through several properties:
Motivation is composed of energy and direction. A person may or may not
have enough motivation to engage in a given activity.
Motives may be overt, hidden, and multiple. Some motivations are
publicly expressed (e.g., the desire to buy an energy efficient house), while
others (e.g., the desire to look wealthy by buying a fancy car) are not.
Many motivations are driven by the desire for tension reduction (e.g.,
eliminate thirst or hunger).
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Motivations can be driven by both internal and external factors.
Motivations may have either a positive or negative valence--people may
either be motivated to achieve something (e.g., get a promotion at work) or
avoid something (e.g., being hospitalized without having adequate
insurance).
Consumers are motivated to achieve goals. Achieving these goals may
require sustained activity over time (e.g., exercising every day for months
or years) as opposed to just taking some action once.
Consumers maintain a balance between the desires for stability and
variety.
Motivation reflects individual differences. Different consumers are
motivated to achieve different things, and it may be difficult to infer
motivations from looking at actual behavior without understanding these
differences in desired outcomes
Perception:
Our perception is an approximation of reality. Our brain attempts to make sense out of
the stimuli to which we are exposed.
Factors in percpetion:
Several sequential factors influence our perception. Exposure involves the extent to
which we encounter a stimulus. Most of this exposure is random—we don’t plan to
seek it out. Exposure is not enough to significantly impact the individual—at least not
based on a single trial In order for stimuli to be consciously processed, attention is
needed. Interpretation involves making sense out of the stimulus. Weber’s Law
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suggests that consumers’ ability to detect changes in stimulus intensity appear to be
strongly related to the intensity of that stimulus to begin with.
Several factors influence the extent to which stimuli will be noticed. One obvious
issue is relevance. Consumers, when they have a choice, are also more likely to attend
to pleasant stimuli (but when the consumer can’t escape, very unpleasant stimuli are
also likely to get attention—thus, many very irritating advertisements are remarkably
effective). Surprising stimuli are likely to get more attention—survival instinct
requires us to give more attention to something unknown that may require action. A
greater contrast (difference between the stimulus and its surroundings) as well as
greater prominence (e.g., greater size, center placement) also tend to increase
likelihood of processing.
Attitudes - Consumer attitudes are a composite of a consumer’s (1) beliefs about, (2)
feelings about, (3) and behavioral intentions toward some object within the context of
marketing, usually a brand or retail store. These components are viewed together
since they are highly interdependent and together represent forces that influence how
the consumer will react to the object.
Beliefs - The first component is beliefs. A consumer may hold both positive beliefs
toward an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is
easily spilled and stains papers). In addition, some beliefs may be neutral.
Affect - Consumers also hold certain feelings toward brands or other objects.
Sometimes these feelings are based on the beliefs (e.g., a person feels nauseated when
thinking about a hamburger because of the tremendous amount of fat it contains), but
there may also be feelings which are relatively independent of beliefs.
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Behavioral intention - The behavioral intention is what the consumer plans to do
with respect to the object (e.g., buy or not buy the brand). As with affect, this is
sometimes a logical consequence of beliefs (or affect), but may sometimes reflect
other circumstances.
Attitude - Behavior Consistency - Consumers often do not behave consistently with
their attitudes for several reasons:
Ability. He or she may be unable to do so.
Competing demands for resources.
Social influence.
Measurement problems. Measuring attitudes is difficult. In many
situations, consumers do not consciously set out to enumerate how
positively or negatively they feel about mopeds.
Attitude Change Strategies - Changing attitudes is generally very difficult,
particularly when consumers suspect that the marketer has a self-serving agenda in
bringing about this change (e.g., to get the consumer to buy more or to switch brands).
Changing affect - One approach is to try to change affect, which may or may not
involve getting consumers to change their beliefs. One strategy uses the approach of
classical conditioning try to "pair" the product with a liked stimulus. Finally, products
which are better known, through the mere exposure effect, tend to be better liked--that
is, the more a product is advertised and seen in stores, the more it will generally be
liked, even if consumers to do not develop any specific beliefs about the product.
Changing behavior - People like to believe that their behavior is rational; thus, once
they use our products, chances are that they will continue unless someone is able to
Department Of Management studies. Page 31
get them to switch. One way to get people to switch to one brand is to use temporary
price discounts and coupons; however, when consumers buy a product on deal, they
may justify the purchase based on that deal (i.e., the low price) and may then switch
to other brands on deal later. A better way to get people to switch to our brand is to at
least temporarily obtain better shelf space so that the product is more convenient.
Consumers are less likely to use this availability as a rationale for their purchase and
may continue to buy the product even when the product is less conveniently located.
(Notice, by the way, that this represents a case of shaping).
Changing beliefs - Although attempting to change beliefs is the obvious way to
attempt attitude change, particularly when consumers hold unfavorable or inaccurate
ones, this is often difficult to achieve because consumers tend to resist. Several
approaches to belief change exist:
Change currently held beliefs. It is generally very difficult to attempt to
change beliefs that people hold, particularly those that are strongly held,
even if they are inaccurate.
Change the importance of beliefs.
Add beliefs. Consumers are less likely to resist the addition of beliefs so
long as they do not conflict with existing beliefs.
Change ideal. It usually difficult, and very risky, to attempt to change
ideals, and only few firms succeed.
Personality and consumer behavior:
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Traditional research in marketing has not been particularly successful in finding a link
between personality and consumer behavior. Emotion. Emotion impacts marketing
efforts in several ways. One purpose is to get attention to a stimulus (since
emotionally charged individuals tend to be less predictable than calmer ones, there
has been an evolutionary advantage in paying attention to emotion). Secondly,
emotion influences information processing.
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CHAPTER - 4
DATA ANANLYSIS
AND
INTERPRETATION
Introduction
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Research is a systemic activity to achieve the truth. research includes the procedure of
collecting data and finding the conclusion or truth. Research depends upon the
scientific procedure
Research methodology is a new to systematically solve the research problem. It may
be understood as a science of studying how research is done scientifically. In it we
study the various steps that are generally adopted by a researcher in studying his
research problem along with the logic behind them.
Research methodology involves activities designed to achieve research objectives. In
order that the appropriate information is collected a detailed research plan must
develop.
We can say that research methodology has many dimensions and research methods do
constitute a part of the research methodology. The scope of research methodology is
wider than research methods. Thus we talk of research methodology we not only talk
of the research methods but also consider the logic behind the methods we use in the
context of our research study and explain why we are not using others so that research
results are capable of being evaluated either by the researcher himself or by others.
Hence, research methodology specifies the method and procedure for conducting a
particular study. It is a plan structure and strategy of investigation conceived so as to
obtain answer to research question and to control variance. The methodology adopted
to meet the research objectives were the collection of data. The sources used for this
were primary and secondary data.
Research can be classified into two broad categories-
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1) Basic research –
Basic research is sometimes called fundamental research or pure research .it aims at
expanding the frontiers of knowledge and does not directly involve pragmatic
problem. The essence of basic research is that it addresses itself to more fundamental
questions and not to the problem with immediate commercial potential.
2) Applied research-
Applied research is also called decisional research by some authors. On the other
hand, proceeds with a certain problem, and it specifies alternatives solutions and the
possible outcomes of each alternative. Unlike basic research, it is prompted by
commercial considerations. Though one may be to distinguish between basic research
and applied research ,the distinction between the two sometimes get blurred, several
firm may be engaged in basic research which does not have any immediate
commercial use, however it may be potentially commercial or also the firms would
not have undertaken it at all.
RESEARCH PROBLEM:
Defining research problem allows the researcher to focus on the how, what, which,
why, when, where question needed to guide the information of research objectives
and clarify the pertinent information requirements.
In globalization era, every company is trying to survive and compete in market to
attain desired level of potential customer and customer wants best quality products.
The researcher examined the factor that affects consumer buying decision, before
making decision of specific brand of home appliances. So the researcher had
undertaken the study as
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“Consumers Buying Behaviour Towards Electronic Home Appliances.”
RESEARCH DESIGN:-
A research design is the arrangement of conditions for collecting and analysis of data
in a manner that aims to provide relevance to the research purpose with economy in
procedure. It constitutes decision regarding what, when, how much , by what means a
research study could be carried out.
This research was designed to collect raw data and data structures and information
that helped researcher to arrive at some conclusions and that fulfilled the requirements
of objectives so raised.
METHODOLOGY:-
The completion of research involved three phases
First phase - Collection of secondary and primary data. Data was collected from
books, magazines and websites etc. and primary data was collected from the
structured questionnaire and interview.
Second phase - Pilot study, actual primary data collection editing and tabulation of
data.
Third phase - Data analysis using stastical tools, inferences, conclusions, suggestions
based on data collected, editing and tabulation of data.
DATA COLLECTION:-
The data was obtained through two main sources. One was secondary source for data
collection and other was the primary source for data collection.
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1. Primary Data:-
Primary data is a fresh and first hand data. Primary Data collected with the help of
structured questionnaire and interview schedule.
This was collected by well-structured questionnaire and survey which was conducted
in Hyderabad city. For this, pilot study was carried out. Some questionnaires were
filled by the respondents. If any problem or mistake arised in the questionnaire, it was
corrected. The questions were presented exactly in the same wording and in the same
order to all respondents.
2. Secondary Data:-
Secondary data are those which have already been collected by some one else and
which have been pass through the stastical process.
Secondary data was collected through magazines, books, internet and published
information from various research journals .secondary data available with certain
limits. It was availed a through publications of governments, periodicals of
organization, newspapers, and books.
QUESTIONNAIRE:-
Questionnaire is one of way through which data can be collected. The questionnaire
was prepared in accordance with the research objectives. Discussion was held with
the research guide and some changes were made accordingly, which resulted into the
detailed drafting of the questionnaire. Then it was tested on selected respondents. The
testing helped in improving the questionnaire by way of eliminating question which
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was not required. The improved questionnaire was retested among respondents and
the final draft was prepared.
SAMPLING:-
The term sampling means process of obtaining information about an entire population
by examining only a part of it. Totality of all members is known as population. The
selected or chosen part, which is used to determine the feature of the entire
population, is known as sample.
SAMPLING UNIVERSE:-
The first step in developing any sample design is to clearly define the set of objects,
technically called the universe. The sampling universe of the study was customers in
Hyderabad city.
SAMPLE SIZE:-
This refers to the number of items to be selected from the universe to constitute a
sample. The sample size was 100 respondents (75 men and 25 women) in Hyderabad
city.
SAMPLING UNIT:-
Sampling unit may be a geographical one such as state, district, village etc., or a
construction unit as house, flat or may be a social unit such as family, club, school etc.
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The sampling unit of the study was all users of home Appliances in the age group of
30-45 yrs of middle income group in Hyderabad city.
SAMPLING TECNIQUE:-
Sampling technique is used for selection of sample. Non-probability convenience
sampling technique is also used wherever statistical sampling is not possible.
DATA ANALYSIS
The data after collection has to be analyzed in accordance with the outline laid down
for the purpose at the time of developing the research plan. Analysis and
interpretation of data in a general way involves a number of closely related
operations, which are performed with the purpose of summarizing the collected data
that fulfill the research objectives.
The primary data collected from the respondents under study with the help of
questionnaire do not complete study itself. For drawing logical conclusion and for
giving some concrete suggestions these data have to be analyzed.
Facilitating analysis, interpretation and collected data have been appropriately
tabulated. Interpretation refers to the task of drawing inferences from the collected
facts after an analytical or experimental study. Interpretation is essential for the
simple reason that the usefulness and utility of research findings lie in proper
interpretation.
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Make the study fruitful on satisfaction level of customer regarding the buying
satisfaction consumers regarding buying preference of various home appliances
companies. For the collection of data there was good cooperation from respondents.
The analysis and interpretation of collected data has been discussed in the
following manner -
1) The question asked and its objective had been discussed in the first part.
2) Table showing responses, tabulation and frequency for each question follow it.
3) Finally, the interpretation drawn from the table had been discussed in brief.
3.2 Data Interpretation
Table no. 3.2.1
Distribution of age group-
Sr.no Particulars Respondents Percentage
1 30-35 37 37%
2 36-40 31 31%
3 41-45 32 32%
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(Source- Primary Data)
Graph no. 3.2.1
From the above graph it can be interpreted that, the majority of the respondents i.e. 37
% respondents belongs to 30-35 age group, 32 % respondents belongs to 41-45
group, 31% respondents belongs to 36-40 age group.
Table no. 3.2.2
Monthly Income wise distribution-
Sr no. Particulars Respondents Percentage
1 5000-10000 15 15
2 11000-15000 32 32
3 16000-20000 36 36
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37
3132
28
293031
323334
353637
No.of respondents
30-35 36-40 41-45
Age group
respondents
4 21000-25000 14 14
5 25000 above 03 03
(Source- Primary Data)
Graph no. 3.2.2
From the above graph it can be interpreted that, the majority of the respondents i.e.
36% respondents belongs to Rs.16000-20000 income group, 32% respondents
belongs to Rs. 11000- 15000 income group, 15% respondents to Rs. 5000-10000
income group, 14% respondents belongs to Rs 21000-25000 income group and 3%
respondents belongs to Rs.25000 above income group.
Table no. 3.2.3
Factors affecting for purchase of home appliance-
Sr.no Factors 1st
rank
2nd
rank
3rd
rank
4th
rank
5th
rank
Weighted
score
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15
3236
14
3
0
5
10
15
20
25
30
35
40
No. of respondents
5000-10000 11000-15000
16000-20000
21000-25000
25000above
Income group
respondents
1 Brand name 17 48 26 4 5 368
2 Price 53 16 16 10 05 402
3 Quality 27 23 38 9 3 362
4 Offers/discounts 3 5 11 58 23 207
5 Post purchase
service
0 8 9 19 64 161
(Source- Primary Data)
Graph no. 3.2.3
From the above graph it can be interpreted that, as per majority of responses and
stastical calculation, the rank given to factors which affects buying decision are- 1st
rank given to price, 2nd rank given to brand name, 3rd given to quality, 4th and 5th rank
given to offers/ discounts, post purchase service respectively.
Table no. 3.2.4
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0
1
2
3
4
5
6
Brand name Price Quality Offers/discounts Post purchaseservice
Factors
Ran
k
rank
Motivator for purchase of home appliance -
Sr. no Particulars No. of respondents Percentage
1 Children 33 33%
2 Spouse 40 40%
3 Friends 14 14%
4 Relatives 12 12%
5 Retailers(salesman) 1 1%
(Source- Primary Data)
Graph no. 3.2.4
From the above graph it can be interpreted that, 40% respondents are motivated by
their spouse in buying decision , 33% respondents opted for children, 14%
respondents motivated by friends, 12 % respondents motivated by relatives and very
few respondents i.e. 1% motivated by retailers.
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33
40
1412
10
5
10
15
20
25
30
35
40
45
Motivating factors
No
.of
resp
on
den
ts
No. of respondents
Table no. 3.2.5
Source of information which affects purchase of home appliance
Sr no Particulars Respondents Percentage
1 T.V ads 63 63
2 Hoardings 13 13
3 Newspapers 17 17
4 Exhibitions/fares 5 5
5 Magazines 2 2
(Source- Primary Data)
Graph no. 3.2.5
From the above graph it can be interpreted that, maximum no. of respondents i.e. 63%
opted TV ads as their source of information, 17 % opted for newspaper, 13%
respondents chosen hoardings as their source of information, while very few
respondents i.e. 5% and 2% opted for exhibitions/ fares, magazines respectively.
Department Of Management studies. Page 46
63
13 17
5 20
10203040506070
Sources of information
No.
of r
espo
nden
ts
respondents
Table no. 3.2.6
Features affecting for purchase of any branded TV set-
Sr.n
o
Factors 1st
rank
2nd
rank
3rd
rank
4th
rank
5th
rank
Weighted
score
1 Picture quality 61 30 3 4 2 444
2 Sound quality 27 54 13 2 4 398
3 Slimness of screen 7 6 40 38 9 264
4 Size( inches) 2 3 29 46 20 219
5 co lour 3 7 15 10 65 173
(Source- Primary Data)
Graph no. 3.2.6
From the above graph it can be interpreted that, as per majority of responses and
stastical calculation, the rank given to features which affects buying decision of
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0
1
2
3
4
5
6
Picture quality Sound quality Slimness ofscreen
Size( inches) co lour
Features
Ran
k
rank
branded TV set are- 1st rank given to picture quality, 2nd rank given to sound quality,
3rd given slimness of screen, 4th and 5th rank given to size(inches)and co lour
respectively.
Table no. 3.2.7
Features affecting for purchase of any branded refrigerator-
Sr.no Factors 1st
rank
2nd
rank
3rd
rank
4th
rank
5th
rank
Weighted
score
1 Capacity 57 22 3 16 2 416
2 Energy efficiency 25 21 5 49 0 322
3 Co lour 12 50 11 20 7 340
4 Storage space 5 6 62 12 15 274
5 LED panel 1 1 19 3 76 148
(Source- Primary Data)
Graph no. 3.2.7
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From the above graph it can be interpreted that, as per majority of responses and
stastical calculation, the rank given to features which affects buying decision of
branded refrigerator are- 1st rank given to capacity , 2nd rank given to colour , 3rd given
energy efficiency, 4th rank given to storage space and 5th rank given to LED touch
panel.
Table no. 3.2.8
Features affecting for purchase of any branded washing machine -
Sr.no Factors 1st
rank
2nd
rank
3rd
rank
4th
rank
5th
rank
Weighted
score
1 Washing capacity 70 2 7 4 17 404
2 Soak time 16 6 56 8 14 302
3 Weight 6 15 15 48 16 247
4 Colour 1 27 13 25 34 236
5 Energy efficiency 7 50 9 15 19 311
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0
1
2
3
4
5
6
Capacity Energy efficiency Co lour Storage space LED panel
Features
Ran
k
rank
(Source- Primary Data)
Graph no. 3.2.8
From the above graph it can be interpreted that, as per majority of responses, the rank
given to features which affects buying decision of branded washing machine are- 1st
rank given to washing capacity , 2nd rank given to energy efficiency , 3rd given soak
time , 4th rank given to weight and 5th rank given to colour.
Table no. 3.2.9
Features affecting for purchase of any branded air conditioner-
Sr.no Factors 1st
rank
2nd
rank
3rd
rank
4th
rank
5th
rank
Weighted
score
1 Cooling system 69 13 10 7 1 442
2 Size 7 48 20 18 7 330
3 Colour 4 5 10 50 31 201
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0
1
2
3
4
5
6
Washingcapacity
Soak time weight Colour Energy efficiency
Features
Ran
k
RANK
4 Energy efficiency 19 28 38 6 9 342
5 Auto turn off 1 6 22 19 52 185
(Source- Primary Data)
Graph no. 3.2.9
From the above graph it can be interpreted that, as per majority of responses and
stastical calculation, the rank given to features which affects buying decision of
branded air conditioner are- 1st rank given to cooling system, 2nd rank given to energy
efficiency, 3rd given to size, 4th and 5th rank given to colour and auto turn off
respectively.
Table no. 3.2.10
Features affecting for purchase of any branded microwave-
Sr.n
o
Factors 1st
rank
2nd
rank
3rd
rank
4th
rank
5th
rank
Weighted
score
1 Capacity 10 57 14 14 5 353
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0
1
2
3
4
5
6
Cooling system Size Colour Energy efficiency Auto turn off
Features
Ran
k
RANK
2 Space 5 12 28 46 9 258
3 Heating system 78 9 6 4 3 455
4 Cavity 5 15 44 25 11 278
5 Auto turn off 2 7 8 11 72 156
(Source- Primary Data)
Graph no. 3.2.10
From the above graph it can be interpreted that, as per majority of responses and
stastical calculation, the rank given to features which affects buying decision of
branded microwave are- 1st rank given to heating system, 2nd rank given to capacity,
3rd given to cavity, 4th and 5th rank given to space and auto turn off respectively
Table no. 3.2.11
Influence of retailers on motivation of consumers-
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0
1
2
3
4
5
6
Capacity Space Heating system Cavity Auto turn off
Features
Ran
k
RANK
Sr. no Particulars No. of respondents Percentage
1 Strongly motivated 12 12
2 Motivated 47 47
3 Fairly motivated 32 32
4 Not motivated 9 9
(Source- Primary Data)
Graph no. 3.2.11
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05
101520253035404550
No.of respondents
Stronglymotivated
Motivated Fairlymotivated
Notmotivated
Level of motivation
No. of respondents
From the above graph it can be interpreted that, the majority of the respondents i.e.
47% feel that they are motivated by the information given by retailers, 32%
respondents chosen fairly motivated, 12% feel that they are strongly motivated, while
9% feel that they are not motivated by information given by retailers.
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CHAPTER 5
CONCLUSIONS
AND
SUGGESTIONS
INTRODUCTION
The research never gets completed without drawing some conclusions or achievement
of any result. This applicable to all types of researcher, to end up with some
constructive conclusions and suggestions. Some data is indirectly collected by
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observations where resections speak more than words these observations also plays
very important part in conducting something. The actual findings from the study
which emphasizes more on numbers but this is the actual information so it cannot be
eliminated.
The findings for this research were drown by analyzing the primary data and, from
this some conclusions were drawn.
CONCLUSIONS
1) People in Hyderabad city are highly aware about different brands of home
appliances.
2) People in the age group 30-35 are mostly educated and having sound
knowledge of home appliances of different companies.
3) It is observed that, the factors which affects buying decision for purchase of
home appliance are- 1st rank given to price, 2nd rank given to brand name, 3rd
given to quality, 4th and 5th rank given to offers/ discounts, post purchase
service respectively.
4) Majority of respondents are motivated by their spouse in buying decision.
5) Very few respondents are motivated by information given by retailers.
6) Maximum no. of respondents opted TV ads as their main source of
information.
7) Most of the respondents given priority to picture quality and sound quality
when buy any branded TV set.
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8) Majority of respondents given 1st rank to capacity , 2nd rank to colour , 3rd to
energy efficiency, 4th rank to storage space and 5th rank to LED touch panel
when buy any branded refrigerator.
9) Most of the respondents given first priority to washing capacity when buy any
branded washing machine.
10) Cooling system and energy efficiency are top most features considered by
most of the respondents for purchase of branded air conditioner.
11) Price is the most important influencing factor for purchase of home
appliances.
12) Post purchase service is the least important factor in buying decision.
13) TV advertisements play a major role in the selection of brand of home
appliance.
SUGGESTIONS –
1) The dealers should try to inform potential customers to various media like
newspaper and local cable channel.
2) Training to the dealers, salesman at regular intervals by the company so that
they should provide the expected information and service.
3) Special festival gifts and offers should be offered by retailers.
4) The companies should mainly focus on prices and maintain reasonable prices
to combat competition.
5) Developing product according to consumer choices will lead to increase in