1 1. Executive Summary This paper give a summarized view about the parameters which influences the buying behaviour of customers/consumers and their involvement in the process. The Ambuja cements being a profit and customer oriented company that provides fresh and quality cement has a better market in Ernakulam (Kerala) and in Kotayam (Kerala), Comparing the sales in Thrissur(Kerala). On this basis a primary data was collected from the dealerships in Thrissur where Ambuja cements were sold and the samples were people who was coming to buy cement. Also the effect of Sales orientation Customer orientation (SoCo) on brand trust was also calculated, for this the samples were the dealers and the people who were involved in selling the cement. The data collection was done using two surveys that measured the various aspects that were crucial for a customer/consumer to choose a particular brand of cement. The collected data were analysed through IBM SPSS software and cross tabulation were done to understand the various aspects and the link between various parameters that contribute to the buying behaviour of cement in the cement market. From the data collection and in-store experience it was easy to identify the Age group, quality perception, Availability, Service and various factors that lead to purchase of a particular brand of cement were studied. Another major problem faced by the company is the lack of involvement of direct customers in the cement buying process most of the customers were contractors who had their own preferences. So it’s important to have direct consumers to bring into the buying process of cement. Already the company is trying hard to locate the IHB (independent house builders) and conduct classes for them. Engineers would visit the sites and help them out. But these strategies begin only after they start construction and the consumers may have chosen their brand of cement. So its better and useful to get the consumer at the early stage of study. For that a recommendation is put forwarded
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1. Executive Summary
This paper give a summarized view about the parameters which influences the buying behaviour
of customers/consumers and their involvement in the process.
The Ambuja cements being a profit and customer oriented company that provides fresh and quality
cement has a better market in Ernakulam (Kerala) and in Kotayam (Kerala), Comparing the sales
in Thrissur(Kerala). On this basis a primary data was collected from the dealerships in Thrissur
where Ambuja cements were sold and the samples were people who was coming to buy cement.
Also the effect of Sales orientation Customer orientation (SoCo) on brand trust was also calculated,
for this the samples were the dealers and the people who were involved in selling the cement.
The data collection was done using two surveys that measured the various aspects that were crucial
for a customer/consumer to choose a particular brand of cement.
The collected data were analysed through IBM SPSS software and cross tabulation were done to
understand the various aspects and the link between various parameters that contribute to the
buying behaviour of cement in the cement market.
From the data collection and in-store experience it was easy to identify the Age group, quality
perception, Availability, Service and various factors that lead to purchase of a particular brand of
cement were studied. Another major problem faced by the company is the lack of involvement of
direct customers in the cement buying process most of the customers were contractors who had
their own preferences. So it’s important to have direct consumers to bring into the buying process
of cement.
Already the company is trying hard to locate the IHB (independent house builders) and conduct
classes for them. Engineers would visit the sites and help them out. But these strategies begin only
after they start construction and the consumers may have chosen their brand of cement. So its
better and useful to get the consumer at the early stage of study. For that a recommendation is put
forwarded
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Toll free number
Mobile phones and land phones are readily available and its being used by the rural market even.
Nowadays people use their technology as a major tool to make them comfortable. When a
consumer is about to build a house he will be having a lot of questions, the company can use its
expertise to answer all the questions and with that we are having a direct contact with the customer,
by this we could help to them to make a better choice. The company can also keep a trade relation
with the consumer itself so the involvement of a third party will be minimal.
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2. Introduction
Broad problem area or management dilemma
Sales of Ambuja cements is less when compared with its competitors in Thrissur district. Also the
involvement of consumers is very less in the buying behaviour of cement.
Background information
Ambuja Cements Ltd, a part of the global conglomerate LafargeHolcim, is one of the leading
cement companies in the Indian cement industry.
Operating for over 25 years, Ambuja has proved to be the best cement for construction and the
best cement manufacturing company in India with its uniquely sustainable development projects.
Its environment friendly initiatives have played a key role in India’s efforts to become a green
state. The sustainable constructions and renewable energy projects undertaken by it have a lion’s
share in creating a blueprint for sustainable development in India’s bright future.
By virtue of its hassle-free customer support & home building solutions and its unique cement
sustainability initiatives such as True Value and Water Positive, Ambuja’s business has seen a
rapid growth in the past decade. The company has a significant presence across western, eastern
and northern markets of India as a brand for Ordinary Portland Cement (OPC) and Pozzolana
Portland Cement (PPC).
Currently, Ambuja has a cement capacity of 29.65 million tonnes with five integrated cement
manufacturing plants and eight cement grinding units across the country. It is the first Indian
cement manufacturer to build a captive port with four terminals along the country’s western
coastline to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement
to its customers.
Ambuja is supplying 25000 tons of cement in Kerala, in that 4500 tons is the sales in Thrissur
district, where the total cement consumption is around 80000 tons. So when these figures are
compared it is clearly understood that the sales of Ambuja cements is very less when compared to
its competitors. This is can be mainly because the consumers who are involved in the construction
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are not having any idea about cement quality, which all are the premium companies of cement and
unawareness about the cost involved.
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3. Preliminary details
3.1 Expert advice
Initially the idea about the buying behaviour was the 5 step process according to theories, but with
the discussion with the company guide Mr Boby Sebastian I could realise that there are lot
differences in theory and practice. More detailed view of cement market was briefed by the guide.
More discussions were held with the college guide Mr Jackson D’silva whose views on the topic
was valuable.
3.2 Literature Review
A lot of studies has been done on this basis, which analyses the parameters that influences the
buying behaviour in the cement market.
3.2.1 Anholt (1998) the paper suggests the concept of nation brand to develop a strong brand
equity related to a product or service. To make the initiative successful one needs to highlight on
the place importance. It is being observed that sometimes people have tremendous preference
towards a product coming from a specific market or country. For example electronics product
made in Japan has lots of regards among prospective consumers and selling of these products in
other parts of the world become much easier because of the place weightage that it carries.
Considering this specific logic we can say that in case of cement industry also, if any specific area
or region has comparative advantage in case of cement production then it should use it properly to
develop a positive brand image among the target group of consumers. This will help to develop a
long lasting brand image not only in that market but also in other areas also.
3.2.2 Keller (2001) the paper focuses on customer based brand equity model. Since, the consumers
are ultimate users of a brand. To develop a customer based brand equity each and every customer
are trying to get specific information about the brand identity, brand meaning, brand response and
brand relationships. If the customers are able to get proper information about these areas, then
surely it will influence their purchasing intention.
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3.2.3 Hedingetal. (2009) inside this book the authors discusses various issues related to brand
management and develop a comprehensive approach related to branding a specific product or
service. Among these economic approach, identity approach, consumer based approach, the
personality approach, the relational approach, the community approach and the cultural approach
are playing a crucial role in influencing the consumer decision to choice a specific product or
service.
3.2.4 Silveira (2011) this paper attempts to develop a linkage between brand identity and its impact
on consumer’s purchasing decision. It says that creating a brand identity around a product or
service is very important and along with that it should be flexible enough with changing
environment of business. The roles of consumers are also equally important and sometimes it is
termed that consumers are co – creators of brand identity. Thus, while developing a proper brand
identity these two factors like changing environmental impact and changing consumer mind sets
need to be considered so that it will create a positive image in the mind of the consumers. This
subsequently helps to establish a strong linkage between the brand and its target group of
consumers.
3.1.5 Chowdhury etal. (2012) paper discusses the role of opinion leaders in motivating consumer
decision to purchase a specific cement brand. Looking at the technical aspects of cement product
m2ost of the consumers go for extensive information search while making a final purchase.
Whiling doing so, role of opinion leaders become important. The opinion leaders in the form of
construction engineers, architects and even masons plays a crucial role regarding consumer’s
purchasing decision. So, it has been advised that cement companies should develop their marketing
strategies in such a manner so that target group consumers can be influenced by this opinion
leaders.
3.2.6 Saranya & Kavitha (2014) the authors conducted a study in Coimbatore City to understand
the customer perception towards cement brands. They noticed that while choosing a specific
cement brand price, quality and availability of the said brand in the study district is very crucial.
Thus, it has been concluded in the study that when the market is very competitive, these factors
should play a crucial role and cement companies should develop a proper distribution network so
that non availability should not become a problem while choosing a brand.
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From the literature review it has been identified that certain factors are directly or indirectly
affecting the sales of cement in the buying behaviour.
Then for the further study of the same a survey was conducted in 10 different dealership in and
around Thrissur district (Kerala). A sample size of 116 respondents responded to the questionnaire
among which only 90 of them were acceptable.
The study focused on why a particular customer/consumer is buying a particular brand of cement.
For finding the same a questionnaire was prepared and distributed to the population that include
the following customers.
1. Consumer
2. Contractor
3. Mason
4. Institutional Buyers
The customers were asked to fill up the questionnaire and mark the correct option that suits their
situation.
The sample of the questionnaire is attached at the end of the study
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3.3 Theoretical Framework
Figure 3.3
The theoretical frame work shows the effect of different factors that finally leads to the buying
behaviour of customer/consumer, here we are testing whether the SoCo (sales orientation customer
orientation have any effect on the brand trust and that will in-turn affect the Buying behaviour.
Quality
Availability
Service
Brand Trust
Brand Image
ADD & PRO
SoCo
Buying Behaviour
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3.4 Hypothesis Formulated
1. Alternate Hypothesis: Sales orientation customer orientation has a significant effect on the
brand trust of the cement company
H1: µ1 ꞊ x͞͞͞͞͞͞͞͞͞͞͞͞͞͞͞͞
Null Hypothesis: There is no significant effect of Sales orientation Customer orientation on the
brand trust of the cement company
H0: µ1 ≠ x
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4. Research Design
4.1 Purpose
To conduct an exploratory study and obtain an exhaustive list of parameters that affect the buying
behaviour in the cement market and those parameters where Ambuja cements need to improve so
as to improve their sales in Thrissur district.
4.2 Type of Study
Then the most important parameters will be considered under study which will lead to the shift in
customer preference, leading to a conclusive research – descriptive study
4.3 Study setting and Time Horizon
The type of investigation carried out is co-relational under a non-contrived setting. The research
was conducted in a cross sectional time horizon.
4.4 Population
Population include all the people who come to buy Cement and people who are into any sort if
construction
4.5 Sample
Sample is defined as the representative elements that are picked from the population, in this
research study the sample is selected through convenience sampling technique. The sample include
various contractors’ masons institutional buyers and individual house builders. The collected data
was refined and then from 117 data collected 90 was selected for the research study
4.6 Sampling Design
The study required samples from a survey, were random sampling method is being used.
Sample population for the survey are people who are using cement for any construction purpose.
For the purpose of SoCo the samples were the people who were involved in the selling process.
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4.7 Data Collection Methods
Primary data was collected through literature reviews
Survey 1 questionnaire method will determine the type of customer the brand and the reason for
choosing the particular brand.
Survey 2: A survey was used to calculate or measure the brand trust of the product.
Survey 3: A survey was used to calculate the Sales orientation of the sales people towards the
customer and the scale used was SoCo scale
The above mentioned surveys are attached at the end if the report in the annexure.4
4.8 Research Instrument
Structured questionnaire and interview method is proposed to be used. Pre-test statements designed
on an interval scale and a Likert scale to measure the influence of various factors in buying decision
in cement market. The study consist of a primary research, when talking about the primary research
it includes, observation, preliminary interviews and surveys.
The primary data was collected in the form of questionnaires to identify those variables that the
customer relies when he/she is buying cement
4.8.1 Tool 1 SoCo Scale
The SoCo scale was used to calculate the Sales orientation of the sales people, the scale is obtained
from Handbook of Marketing scales which is used to study and measure various concepts in
Buying Behaviour by William O Bearden and Richard G Netemeyer
4.8.2 Tool 2 Brand Trust scale
The Scale was taken from a study “Proposal for a Multidimensional Brand Trust Scale” by
Patricia Gurviez. The brand trust was calculated as a cumulative score of four major aspects
On a scale of 1-9 Rate the following articles, where 1-never…….to 9 being always
Never always
1. I try to give customers an accurate expectation of what the product will do for them. 1 2 3 4 5 6 7 8 9
2. I try to get customers to discuss their needs with me. 1 2 3 4 5 6 7 8 9 3. If I am not sure a product is right for a customer, I will still apply pressure to get 1 2 3 4 5 6 7 8 9
him to buy.
4. I imply to a customer that something is beyond my control when it is not. 1 2 3 4 5 6 7 8 9
5. I try to influence a customer by information rather than by pressure. 1 2 3 4 5 6 7 8 9
6. I try to sell as much as I can rather than to satisfy a customer. 1 2 3 4 5 6 7 8 9
7. I spend more time trying to persuade a customer to buy than I do trying 1 2 3 4 5 6 7 8 9
to discover his needs.
8. I try to help customers achieve their goals. 1 2 3 4 5 6 7 8 9
9. I answer a customer's questions about products as correctly as I can. 1 2 3 4 5 6 7 8 9
10. I pretend to agree with customers to please them. 1 2 3 4 5 6 7 8 9
11. I treat a customer as a rival. 1 2 3 4 5 6 7 8 9
12. I try to figure out what a customer's needs are. 1 2 3 4 5 6 7 8 9
13. A good salesperson has to have the customer's best interest in mind. 1 2 3 4 5 6 7 8 9
14. I try to bring a customer with a problem together with a product that helps 1 2 3 4 5 6 7 8 9
him solve that problem
15. I am willing to disagree with a customer in order to help him make 1 2 3 4 5 6 7 8 9
a better decision.
16. I offer the product of mine that is best suited to the customer's problem. 1 2 3 4 5 6 7 8 9
17. It is necessary to stretch the truth in describing a product to a customer. 1 2 3 4 5 6 7 8 9
18. I begin the sales talk for a product before exploring a customer's needs 1 2 3 4 5 6 7 8 9
with him.
19. I try to sell a customer all I can convince him to buy, even if I think it 1 2 3 4 5 6 7 8 9
is more than a wise customer would buy.
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20. I paint too rosy a picture of my products, to make them sound as good 1 2 3 4 5 6 7 8 9
as possible.
21. I try to achieve my goals by satisfying customers. 1 2 3 4 5 6 7 8 9
22. I decide what products to offer on the basis of what I can convince 1 2 3 4 5 6 7 8 9
customers to buy, not on the basis of what will satisfy them in the long run.
23. I try to find out what kind of product would be most helpful to a customer. 1 2 3 4 5 6 7 8 9
24. I keep alert for weaknesses in a customer's personality so I can use them 1 2 3 4 5 6 7 8 9