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CONSUMERS buying BEHAVIOUR IN
PURCHASE OF LAPTOP
INTRODUCTION
Laptop sales in India have risen drastically, which accounts for over 25% of the total personal
computer market. Laptop sales only accounted for a 3% of the total personal computer till 2003.
The sales of the laptops has reached a mark of 0.68 million unit in fiscal year 2006-2007 which
accounts for a growth of 59% over the same period in fiscal year 2005-2006. Sale of desktop
computers and laptops has touched the mark of 8.5 million units in the fiscal year 2007-2008.
There are various main players in the Indian notebook market. The objectives of the study are to
understand the brand position in the minds of the laptop owners and to map their perception. It
also focuses on mapping the dealer perception about the top performing brands in the laptop
sales. From the study it was found that customers prefer a particular brand compared to others.
This particular brand is preferred mainly by the youths because of the good configuration
available and its brand image. The company being studied seems to be lacking in considered
attributes. Businessmen however use a combination of all the brands; this could be probably
because of the various applications of theirs. The customers find cash discount and freeaccessories most attractive while making a purchase. A reasonable percentage of people also
have a mind to accept new offers also. The success rate in achieving good market share by the
highly preferred company by customers proves that the advertising media plays a crucial part in
promoting their products. The dealers find the incentives by this particular company most
attractive compared to other IT and technology companies.
There are seminal studies on consumer purchase decision models in the literature, however,
consumer purchase decisions vary greatly depending on the product to be purchased. Therefore,sectoral studies are needed to delineate the factors affecting consumer purchase decisions in
various product markets. The International Data Corporation (IDC, 2006) report mentioned that
in 2005 consumers continued to respond very positively to very attractive price points, but
portable demand in the business space remained very strong too. According to What Laptop
(2005), Dell was the number one choice in worldwide with 7.9 million sales. It was followed
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respectively by HP (7.4 million), Toshiba (5.8 million), IBM (4.3 million), and Acer (3.9
million) in year 2004. Furthermore, revenue generated from notebooks has long surpassed
desktops, thanks to higher average selling prices for notebooks. According to CRN (2006) in
June 2005, notebook sales accounted for $216.1 million, or $1,442.66 per notebook whereas
desktops accounted for $113.9 million, or $762.98 per unit. The average notebook price fell 11.8
percent from $1,635.07 in the year-ago month and in the same period, desktop prices fell 5
percent from $803.38 (CRN, 2006). In addition, new product launches to the market,
acquisitions and mergers in the sector, rapid developments in the nano-technology, integrated
wireless networking, and decreased prices make it extremely vital for the companies to
understand the factors underlying consumers laptop purchase decisions.
The customer base of a company consists of three groups of consumers: stayers (those who had
never switched from a previous brand), satisfied switchers (those who switched for reasons
other than dissatisfaction), and dissatisfied switchers (those who switched because they were
dissatisfied from their previous brand). Understanding the attitudes of these three different
groups of customers plays an important role when implementing effective and feasible retention
and loyalty strategies. Furthermore, it is also crucial to understand whether there are differences
among these groups in terms of the factors affecting their future laptop purchases when they are
upgrading their computers.
The objectives of this study are twofold. Initially, it is aimed to determine the factors influencingconsumers laptop purchases, and the findings of this first objective will provide the basis for
the second research objective in the study. Secondly, it is intended to find out whether there are
differences among consumer groups of a computer company with respect to the importance
given to the factors influencing consumers laptop purchases. In the following part a brief and
recent literature will be given about consumers purchase decisions.
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BACKGROUND
The literature on purchase decision in this part has been limited to IT related purchase decisions
due to the product category which will be examined in this current study. Consumers can prefer certain products, brands or companies over others, and to understand the reason behind these
choices is exceptionally essential in order to market existing products more effectively than
rivals. Consumers demographic profile, purchase perceptions, and their attitudes towards
products or brands influence their purchase decisions. Jarvenpaa and Tedd (1996/1997) identify
many factors that affect a consumers electronic shopping purchase decision: product
understanding, shopping experience, customer service, and consumer risk. Geisler and Hoang
(1992) identify five steps in the decision process to purchase IT:
1. Establish or articulate the need for IT.
2. Establish or determine which unit(s) will receive the new or modified IT.
3. Select the technology.
4. Select the suppliers.
5. Authorize the purchase and sign the authorization to commit the necessary funds.
The authors conclude that services companies follow a relatively logical and analyzable decision
process. According to decision making model, consumers process the environmental cues; the physical factors of the product, psychosocial cues, such as advertising, and consumers put these
cues into a set of perceptions that shape their preferences. Based on these preferences,
consumers make their choices subject to situational constraints, such as price. According to
Hong and Lerch (2002), people evaluate various objective features when buying an IT product,
and because of imperfect information and simplifications according to the decision rules people
often abstract these various features into few perceptual dimensions such as usefulness and
price. In another research conducted by Kim et al. (2002), small-office/home-office
professional (SOHO) procurement choices are influenced by a number of salient dimensions
(i.e. income, performance, price, inter-purchase time, network externalities). Furthermore,
surveys have repeatedly identified performance and price as two of the most important attributes
in SOHOs' PC purchase decisions. In a more recent study, Dillon and Reif (2004) examine
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factors influencing consumers e-commerce commodity purchases, and find that a history of e-
commerce purchasing have a more positive attitude towards on-line buying.
What is the Consumer Behavior Report?
The Consumer Behavior Report is designed to give merchants, media and industry analysts
insight into shopping trends, pricing and market share. Each month, a different topic will be the
focus of the report.
What is the Portable Laptop Trends Report?
The portable laptop is the topic of PriceGrabber.com March 2008 Consumer Behavior Report.Portable laptops trends and data were collected from a survey of 1,868 online consumers
conducted in February 2008. Additional data is sourced from Market Reporter, a statistical
database that tracks consumer shopping behavior on PriceGrabber.com. The Notes from the
Green section is compiled by Olivia Zaleski, an eco friendly blogger for PriceGrabber.com Shop
Green section. The focus of the Shop Green section is to provide more than 20,000 products to
help consumers live a greener lifestyle. PriceGrabber.com is a major shopping comparison
engine, with more than 26 million unique users per month and up-to-date daily pricing of
products supplied more than 12,000 sellers.
Future Laptop Trends
What does this mean for the future of laptops? As laptops become smaller, will traditional sized
laptops become obsolete? In a recent PriceGrabber.com survey, 44 percent of online consumers
say they would travel more often with their laptop if it was a portable-style. Smaller laptops and
devices are certainly more attractive to consumers, as long as the price and performance arecomparable.
Gartner states: By 2012, half of all workers will use devices other than their laptops when they
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travel. Even though notebooks continue to shrink in size and weight, traveling workers lament
the weight and inconvenience of carrying them on their trips. Vendors are developing solutions
to address these concerns: new classes of Internet-centric pocketable devices at the sub-US$400
level; and server and Web-based applications that can be accessed from anywhere
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RESEARCH METHODOLOGY
Data Collection
In line with the research purposes of this study, a questionnaire was prepared and then it was
filled by respondents in city of RAIPUR.. Since this research was focused on the factors
influencing laptop purchase decisions of consumers, it was seen appropriate to perform a
traditional survey. In addition, a cover letter, which had explained the purpose of the study, with
the questionnaire was sent to the customers.
During the data collection of this research, most of the electronic shops were selling IBM
laptops as well as desktops. Hence, even though IBM no longer exists as a PC brand name,
Lenova was included to the questionnaire as IBM launched Lenova logo for its expansion.
Another PC brand Compaq was eliminated from the questionnaire, since it was long ago merged
with HP. Furthermore, in order to omit the confusion of national or international brand
distinction from the minds of consumers, only international brands were examined in this study.
The laptop brands examined in this research were limited by the following brands: Acer, Dell,
HP, HCL, Lenova, and Sony.
Objectives of the Study:
To study the laptop buying behavior of people at RAIPUR
To find out the satisfaction level, liking, needs, choice of people in Laptop at Raipur
To suggest measures to improve the satisfaction level of employees.
Need of the Study:------------------------------------------------------------------------------------------------------------------------------------------------------------
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Scope of study:
This proposed study is being limited to peopleat Raipur. This proposed study will help to findthe satisfaction level, liking, needs, choice of people in Laptop at Raipur.
Research Methodology
Method is a way of doing something and methodology is a set of methods used in aparticular area of activity. The research methodology employed in the research is as givenby Philip Kotler.
Developing the problems and research objective.
Developing the information sources.
Collecting and analyzing the information.
Presenting the information.
Research problem
Ur topic
Research Design
Research Design is a series of advanced decisions that taken together comprise a masterplan or model for the conduct of an investigation. So research design provides aframework of plan for study, which guides the collection, measurement, analysis, andinterpretation of the data. Theresearch carried out here is descriptive in nature.Descriptive research provides data about the population or universe being studied. It candescribe5 Ws, 1H i.e. what, when, why, who, where, and how.
Sample Design and Size
The population of studyis people at RAIPUR. And the sample size of 100EmployeesStudentsWorking womenCustomers in laptop shopes.
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This study is based inconvenience sampling for which areas of are limited to RAIPUR.
Method of Data CollectionThe fourth step of research methodology is data collection. It can be done through primary or
secondary techniques. In this study both the techniques are used to collect the data.To collect primary data a survey will be conducted on Employee Satisfaction.
To collect primary data a survey will be conducted on Employee Satisfaction through aquestionnaire, which will be filled by the employees of Corporate Office. Various questions will beasked to gain maximum information from the respondents.
For secondary data I have referred journals, magazines and Internet.
Scaling TechniqueScaling techniques is used in this survey, for understanding the co-relation between emotionalintelligence and job satisfaction and the answers of the respondents are elucidated by askingthem to indicate their level of agreement on a given five point liker scale with values rangingfrom 1 (strongly disagree) to 5 (strongly agree).
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CHAPTER-III
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LAPTOP INDUSTRY
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CHAPTER IV
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CHAPTER-V
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