A “Dissertation Report” ON CONSUMER PREFERENCE IN SELECTED BRANDS (WHIRLPOOL, VIDEOCON, LG) OF 200 Lts REFRIGERATORS ON THE BASIS OF PRICE, BRAND NAME, QUALITY & AFTER SALES SERVICES IN THE REGION OF YAMUNA NAGAR Submitted to Kurukshetra University, Kurukshetra in partial fulfilment for the degree of Master of Business Administration (Session 2005- 2007) Under the supervision of:- Submitted By:- Ms. Bharti Dua Diwas Menroy
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A “Dissertation Report”
ON CONSUMER PREFERENCE IN SELECTED BRANDS
(WHIRLPOOL, VIDEOCON, LG) OF 200 Lts REFRIGERATORS ON THE BASIS OF PRICE, BRAND NAME, QUALITY & AFTER
SALES SERVICES IN THE REGION OF YAMUNA NAGAR
Submitted to
Kurukshetra University, Kurukshetra in partial fulfilment
for the degree of Master of Business Administration (Session
2005-2007)
Under the supervision of:- Submitted By:- Ms. Bharti Dua Diwas MenroyFaculty MBA 1143/05 TIMT 02-MY-630
University roll no.
MBA-final.
Tilak Raj Chadha Institute of Management & Technology, Yamuna Nagar (TIMT). Approved by AICTE and Affiliated to
Kurukshetra University,
ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role
in any venture. In the present world of cutthroat competition project is
likely a bridge between theoretical and practical working, willingly I
have prepared this project.
I feel highly delighted with the way my dissertation report on the topic
“Consumer Preferences in selected brands (Whirlpool, Videocon,
LG) of 200 lts refrigerators on the basis of Price, Brand name,
Quality & After Sales Services in the region of Yamuna nagar.”
has been completed.
I express my utmost gratitude and indebt ness to God and to all who
have contributed in some way or the other and been linked with the
project from day one.
I express my sincere gratitude to Dr.R.K.Garg(Director) without
whose guidance, keen interest and regular encouragement my project
would not have been compiled.
From the core of my heart, I express my sincere thanks to
Dr.Vikas Daryal (Assistant Professor,H.O.D) and Mrs. Bharti Dua
Tilak Raj Chadha Institute Of Mgt. & Tech., Yamuna Nagar for
encouragement and guidance.
I am extremely grateful to my parents, the respondents and all my
friends for their unconditional support and ready assistance.
(Diwas Menroy)
EXECUTIVE SUMMARY
In today scenario, every company wants to compete with others to
remain in the market. So it is very necessary for the company to know
what are the needs and wants of the customer, what is the preference
of customer. It is very important for a company to know which product
is preferred by the customer on which basis.
My study is all about this i.e. to study the preference of customer in
selected brands of refrigerator on the basis of price, brand name,
quality and after sales services and find out the steps that a company
can adopt to fight the competition.
In the earlier part of the project I have discussed about the Consumer
& the preference of consumer. I have also discussed about the
introduction of the refrigerator.
This research is carried out using primary data. The method that i have
used is questionnaire technique to get the data from the customer.
The sample size is of hundred customer of Yamuna Nagar those are
using refrigerator.
From this study, I have found that LG was having major market share
in terms of Refrigerator as comparison to others. There were 46% of
the people those were having LG Refrigerators.
INDEX
Serial No. Contents Page No.
1. Certificate
2. Acknowledgement
3. Executive Summary
4. Index
5. Introduction
6. Objective of the study
7. Literature Review
8. Research Methodology
a. Sampling & Sample Design
b. Analytical Tools
c. Data Collection
d. Hypothesis Testing
e. Limitations of the study
9. Result & Discussions/Findings
10. Recommendation
11. Bibliography
12. Annexure
INTRODUCTION…
INTRODUCTION
The topic of research here is “Consumer preference in selected
brands (Whirlpool, Videocon, LG) of 200 lts Refrigerators on the
basis of Price, Brand name, Quality & After sales Services in the
region of Yamuna Nagar”.So the project is to study the Preference of
the consumers.
Here the term ‘consumer’ means the end user of the product who not
only consumes the product but also gives the feedback to the
company.
The traditional view point has been to define consumer strictly in terms
of economic goods and services. This position holds the consumers
are potential purchasers of product and services offered for sale
Consumer Behavior
It may be defined as” the decision process and the physical activities
individuals engage in when evaluating, acquiring, using or disposing of
goods and services.
The Consumer Behavior research goes far beyond the facts
of consumer preferences and encompasses all of the behaviors that
consumers display in searching for purchasing, using, evaluating and
disposing of products and services that they expect would satisfy their
need.
One "official" definition of consumer behaviour is "The study of
individuals, groups, or organizations and the processes they use to
select, secure, use, and dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that these processes have on
the consumer and society." Although it is not necessary to memorize
this definition, it brings up some useful points:
Behaviour occurs either for the individual, or in the context of a
group (e.g., friends influence what kinds of clothes a person
wears) or an organization (people on the job make decisions as
to which products the firm should use).
Consumer behaviour involves the use and disposal of products
as well as the study of how they are purchased. Product use is
often of great interest to the marketer, because this may
influence how a product is best positioned or how we can
encourage increased consumption. Since many environmental
problems result from product disposal (e.g., motor oil being sent
into sewage systems to save the recycling fee, or garbage piling
up at landfills) this is also an area of interest.
Consumer behaviour involves services and ideas as well as
tangible products.
The impact of consumer behaviour on society is also of
relevance. For example, aggressive marketing of high fat foods,
or aggressive marketing of easy credit, may have serious
repercussions for the national health and economy.
Consumer Preference
It is a concept, used in the social sciences, particularly economics. It
assumes a real or imagined "choice" between alternatives and the
possibility of rank ordering of these alternatives, based on happiness,
satisfaction, gratification, enjoyment, utility they provide. More
generally, it can be seen as a source of motivation. In cognitive
sciences, individual preferences enable choice of objectives/goals.
Introduction to Refrigerator
A refrigerator (often called a "fridge" for short) is a cooling appliance
for the storage and preservation of perishable food; food kept in a
refrigerator lasts longer than that left at room temperature as the cold
inhibits bacterial growth. A refrigerator maintains a cold temperature
above the freezing point of water. The refrigerator is a relatively
modern invention amongst kitchen appliances. It replaced the common
icebox which had been a household item for almost a century and a
half prior, and is sometimes still called by the original name "icebox".
The word freezer is generally used to describe an appliance that
keeps foods frozen. Freezers are common as household units for
storing food but are also used in commercial settings. Most freezers
The chi-square test is one of the most simplest and widely used non-
parametric test in statistical work. The symbol is Greek letter chi. It was
first used by Karl Pearsons in the year 1990. the quantity chi-square
describes the magnitude of the discrepancy between theory and
observation
Chi-square= Σ(O-E) 2
E
Where O=observed frequency
And E=expected frequency
Degree of freedom:
While comparing the calculated value of chi square with the table
value, we have to determine the degree of freedom. By degree of
freedom we mean the number of classes to which the values can be
assigned arbitrary or will without violating the restriction or limitations
placed.
H0 = let us take the hypothesis that brand image, Price, quality, after sale service and looks do not influence the customer in their buying decision.
H1= let us take the hypothesis that brand image, Price, quality, after sale service and looks influence the customer in their buying decisionObserved frequency table:
Degrees of freedom = V = (r-1) (C-1) = (2-1) (5-1) = (1) (4) = 4
At degrees of freedom V = 4, χ2.05 = 9.49
Since the tabulated value of χ2.05 = 9.49 is less than the calculated value of χ2 so, we reject the null hypotheses (H0).
Hence it is proved that brand image, Price, quality, after sale service
and looks influence the customer in their buying decision
LIMITATIONS OF THE STUDY
Although sincere efforts have been made to collect the maximum
information from the respondents, but even then the report is subject to
following limitations.
Company officials didn’t take interest in providing information
about the products.
Companies were not ready to give address of their respective
customers to conduct a survey.
Some of the respondents thought me as the representative of the
company & hence instead of answering to my queries they put
their questions to me.
Some people were not at all cooperative.
Lack of time and other resources as it was not possible to
conduct survey at large level
RESULTS
AND
FINDINGS…
RESULTS AND
DISCUSSIONS/FINDINGS
Which Brand of Refrigerator do you have?
No. of Respondents LG Whirlpool Videocon
100 46 38 16
46%
38%
16%
LG
Whirlpool
Videocon
INTERPRETATION: from my survey, I have found that LG was having major market share in terms of Refrigerator as comparison to others. There were 46% of the people those were having LG Refrigerators.
How did you come to know about your brand /model of
Refrigerator?
No. of Respondents News papers
Magazines
Through friends
others
100 38 16 27 19
38
16
27
19
0
5
10
15
20
25
30
35
40
News papers Magazines Through friends others
No
of
Pers
on
s
Series1
INTERPRETATION: from my survey, I have found that News papers played a major role in making aware to the customers about the refrigerator. The next major role is played by the Friends. However, only 16% of customers said that they came to know about the product through magazines.
Which factor influence you more In your Buying Decision?
No. of Respondents Brand image
Price Quality After Sales
Services
100 25 40 24 11
25
40
24
11
0
5
10
15
20
25
30
35
40
45
Brand image Price Quality After SalesServices
No
. o
f P
ers
on
s
Series1
Series2
INTERPRETATION: the factors that were responsible for choosing a particular product was found to be price, Brand name & quality.There were 40% of the people those said that price has influenced them more while buying.
Who influenced you more in your buying decision?
No. of Respondents Self Friends/relatives
Family members
others
100 15 26 38 21
15%
26%
38%
21% Self
Friends/relatives
Family members
others
INTERPRETATION: from my survey, it is very much clear that there is a major role of family in the buying decision of the people. The next major role is played by the Friends.
Awareness about Refrigerator Brand available in the market
No. of Respondents Fully aware Less aware Unaware
100 31 28 41
31%
28%
41% Fully aware
Less aware
Unaware
INTERPRETATION: from my survey, it is very much clear that there were majority of the people those were not aware of the different refrigerator brands available in the market. There were 40% of the people those were not aware.
What did you perceive first while buying a Refrigerator-
No. of Respondents
Brand Image
Price Quality
After sales service
Style/looks
100 21 35 28 7 9
21
35
28
79
0
5
10
15
20
25
30
35
40
Brand Image Price Quality After salesservice
Style/looks
no
of
per
son
s
Series1
INTERPRETATION: the factors that were responsible for choosing a particular Brand Of refrigerator was found to be price, Brand name & quality.There were 36% of the people those said that price has influenced them more while buying a refrigerator
Are you satisfied with its overall performance?
No. of Respondents
Fully Satisfied
Satisfied
Undecided
Less satisfied
poor
100 12 43 26 13 6
0
10
20
30
40
50
FullySatisf ied
Satisf ied Undeciced Lesssatisf ied
poor
No
. o
f p
erso
ns
Series1
INTERPRETATION: on asking that whether the customers were satisfied with the overall performance of the refrigerator, only about 13% reported that they were Less satisfied whereas about 43% said they are satisfied with the performance of the refrigerator.
According to you which company gives the most beneficial
schemes to the Customers?
No. of Respondents LG Whirlpool Videocon
other
100 38 31 14 17
38
31
1417
0
5
10
15
20
25
30
35
40
LG Whirlpool Videocon other
No
of
Pers
on
s
Series1
INTERPRETATION: on asking that which company provides the most beneficial schemes to the customer , only about 17% of the people were in the favor of other companies . 38% of the people were in the favor of LG.
If any of other brands of Refrigerator offers you any attractive
scheme, will you go for that brand?
No. of Respondents Yes No
100 37 63
37%
63%
Yes
No
INTERPRETATION: it is clearly seen that if a company offers more attractive schemes then only 37% will go for that brand & 63% of the people will not go for tat brand.
SUGGESTIONS…
SUGGESTIONS
On the basis of the survey conducted by me, following suggestions are
to be considered:
The companies should work on promotional efforts to increase
the awareness of the consumers.
The Company should send their representatives to contact
personally to the customers to avoid any communication
problems.
The Company should give more Attention to all the segments.
The companies should come up with some attractive schemes to
attract more & more customers.
Proper advertisement should be given in order to remind the
customers about their schemes and other benefits.
People generally consider price While purchasing a refrigerator
to company should emphasize on competitive prices.
BIBLIOGRAPHY
…
BIBLIOGRAPHY
Research methodology, methods and techniques by Kothari C.R,
new age international ltd. Publishers, Second edition.
Statistical method by Gupta S.P, sultan chand and sons,
educational publishers, New Delhi.
Marketing research by Sharma D.D, sultan chand and sons,
educational publishers, New Delhi.
Marketing management by Chabra T.N and Grover S.K,Dhanpat
rai and company(pvt.)ltd. Educational and technical publishers,
edition 2005.
Consumer Behavior by David L. Loudon, Albert J. Della
Bitta,Tata McGraw hills Publishing Company Ltd, 4th Edition.
Consumer Behavior in Indian Perspectives (First Edition: 2001)
by Suja R. Nair, Himalaya Publishing House, Mumbai-400004.
Chapter 1, Page 3-6.
http://en.wikipedia.org/wiki/Preference(15 Feb 2007)
http://en.wikipedia.org/wiki/Refrigerator(21 Feb 2007)
dis=a&main_category_id=1&product_category_id=1(4 Mar 2007)
www.lgezbuy.com/category.aspx?CatID=50&MaiCatID=0(4 Mar
2007)
ANNEXURE…
QUESTIONNAIRE
“Consumer Preferences in selected brands (Whirlpool, Videocon, LG) of 200 lts refrigerators on the basis of Price, Brand name ,Quality & After sales Services”
Name: - Gender:-
Place: - Age:-
Occupation: - Income:-
1. Do you have Refrigerator?
Yes No
2. Which Brand of Refrigerator do you have?
LG Videocon Whirlpool
3. What is the price of your Refrigerator?
………………………..
4. How long do you own this Refrigerator?
Less than six month
Six month
One year
Two year
More than 2 years
5. How did you come to know about your brand /model of Refrigerator?
Newspaper Magazines Through Friends Others
6. Which factor influence you more in your buying decision–
Brand image
Price
Quality
After Sales Services
7. Who influenced you more in your buying decision?
Self
Friends/Relatives
Family member
Others
8. Awareness about Refrigerator Brand available in the market-
Fully aware
Less aware
Unaware
9. What did you perceive first while buying a Refrigerator-
Brand Image
Price
Quality
After Sales Services
Style/Looks
10.Are you satisfied with its overall performance?
Fully satisfied
Satisfied
Undecided
Less satisfied
Poor
11.According to you which company gives the most beneficial schemes to the
Customers?
LG
Whirlpool
Videocon
Other
12.What are your views about brand image of following brands of Refrigerator?
Very good Good Average Bad Worst
Whirlpool
Videocon
LG
13.What are your views about Price of following brands of Refrigerator?
Very High High Average Low Very Low
Whirlpool
Videocon
LG
14.What are your views about Quality of following brands of Refrigerator?
Very good Good Average Bad Worst
Whirlpool
Videocon
LG
15.If any of other brands of Refrigerator offers you any attractive scheme, will you
go for that brand?
Yes No
16.Suggestion/problems, if any…………………………………………………………………………………..…………………………………………………………………………………..…………………………………………………………………………………..
Brand Image Quality Price
after sales services looks
Influence 25 24 40 11 0Perception 17 27 35 6 15
Tests on Contingency Tables (Chi-square...)
XLSTAT 7.1 - Tests on Contingency Tables (Chi-square...) - 3/14/2007 at 11:43:58 AMData: workbook = Book1 / sheet = Sheet1 / range = $B$2:$F$3 / 2 rows and 5 columns
Independence tests between the rows and columns in the contingency table:
Decision:At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of independence between the rows and the columns.In other words, the dependence between the rows and the columns is significant.
Table of the statistics testing the independence rows/columns:
Coefficient ValuePearson's Phi 0.304Cramer's V 0.304Tschuprow's T 0.215Contingency coefficient 0.291Theil's U (R|C)Theil's U (C|R)Averaged Theil's UGoodman and Kruskal tau (R|C) 0.093Goodman and Kruskal tau (C|R) 0.012Averaged Goodman and Kruskal tau 0.052
Multidimensional Scaling (MDS)
XLSTAT 7.1 - Multidimensional Scaling (MDS) - 3/14/2007 at 1:47:37 PMSimilarity matrix (converted to a dissimilarity matrix): workbook = Book1 / sheet = Sheet1 / range = $C$3:$F$6 / 4 rows and 4 columns
Uniform weighting (default)No missing valuesMetric Multidimensional ScalingMultidimensional Scaling model: absoluteStress used for the results: Kruskal's stress-1Dimension of the representation space: 2Repetitions: 10Seed of the pseudo-random numbers generator: 1094498164Iterations: 50Convergence: 0.0001
Ideal distances calculated using the model (disparities):
8 2 2 28 0 0.000 6.000 8.0002 0.000 0 8.000 9.0002 6.000 8.000 0 9.0002 8.000 9.000 9.000 0In the case of the absolute model, the disparities are equal than the dissimilarities