RESEARCH Report Sunsilk

CUSTOMER PREFERENCE FOR

SUNSILK SHAMPOO

To: Subject lecturer Mrs. H.M.R.P. Hearth

From: P.W.D.N. RukshalaBM/2007/226

DEPARTMENT OF MARKETING MANAGEMENTUNIVERSITY OF KELANIYA

REPORT CONTENT

1.0 INTRODUCTION

1.1 Background

1.2 Research Problem

1.3 Research Objectives

1.4 Research Questions

1.5 How You Will Benefit From This Report

2.0 LITERATURE REVIEW

3.0 METHODOLOGY

3.1 Conceptualizing frame work

3.2 Operationalization of variables

4.0 PRESENTATION OF FINDINGS

4.1 The age ranges of the respondents

4.2 No. of times that the respondents use Sunsilk shampoo per week

4.3 What respondents think about the price levels of Sunsilk Shampoo?

4.4 Indicated levels of agreement for the following statements

4.5 Do you like the colour of currently using Sunsilk shampoo?

4.6 What do you expect by using a shampoo?

4.7 How satisfied are you with Sunsilk to meet your needs?

4.8 What influence you to buy Sunsilk?

5.0 FINDINGS AND DISCUSSION

5.1 What is the average level of preference towards Sunsilk shampoo?

5.2 What is the most significant variable affect for the level of preference?

5.3 What is the relationship between the affected reasons and the level of

preference?

5.4 What are the potential benefits that customers expect from Sunsilk shampoo?

6.0 CONCLUSIONS AND RECOMMENDATIONS

7.0 REFERENCE

8.0 APPENDIX

8.1 Questionnaire for Sunsilk Preferred Customers

1.0 INTRODUCTION

1.1 Background

This report takes an overview of the research that conducted in order to identify

the preference level of customers towards Sunsilk shampoo as a brand.

When it comes to brands of shampoo in Sri Lanka, Sunsilk has been considered

as Sri Lanka’s No: 01 shampoo brand for its capabilities to provide longer,

smoother and straight silky hair. This brand is also the strongest brand in Asia

and it is said to be available over 80 countries all over the world.

The brand’s most recent marketing campaign is the co- creation collaboration in

which 7 hair experts around the world would answer to every hair issues and

come up with the best solutions for the problem.

The new range of products is as follows:

Sunsilk dream soft and smooth

Sunsilk hair fall solution

Sunsilk damaged hair re construction

Sunsilk Stunning Black Shine

Sunsilk believes that the secrets to beautiful hair should not be locked behind the

salon door. So they have worked with seven internationally renowned hair experts

to create salon quality products for every girl, whoever she is, wherever she lives,

whatever her hair type.

This research was carried out to identify the customer preference for Sunsilk as a

brand. Now Sunsilk is being positioned as Sri Lanka’s No: 01 Shampoo brand and

this research report will help to identify he customer preference level and the

significant reasons for customer preference as well as the relationship between

those significant factors and the level of preference .The research findings will

definitely help in designing new product mix for current and the potential

customers which satisfy their needs better than ever.

1.2 Research Problem

To study customer preference level towards sunsilk shampoo.

1.3 Research Objectives

To determine the average level of preference towards Sunsilk shampoo.

To identify the effective reasons for the determined level of preference.

To identify the most significant variable affect for the level of preference.

To identify the relationship between the affected reasons and the level of

preference.

To recognize the potential benefits that customers expect from Sunsilk

shampoo.

1.4 Research Questions

What is the average level of preference towards Sunsilk shampoo?

What are the effective reasons for the determined level of preference?

What is the most significant variable affect for the level of preference?

What is the relationship between the affected reasons and the level of

preference?

What are the potential benefits that customers expect from Sunsilk

shampoo?

1.5 How You Will Benefit From This Report

Since this report provides detailed consumer insights into Sunsilk shampoo it is

an invaluable resource to executives, organizations looking to make marketing

decisions.

This report is an important tool to companies in the natural & organic personal

care products market, as well as those looking to enter this emerging market. It

provides detailed insights into consumer preference and expectations towards

these products. The report gives a thorough understanding of consumer

preference, enabling companies & retailers to develop marketing programmes,

distribution strategies and position products.

The report is useful for CEO s and senior managers to ensure that new or existing

products are correctly marketed and meet consumer expectations.

Marketing managers & executives to identify consumers needs, wants,

preferences and expectations. Such information can enable successful marketing

programmes and promotional activities to be developed that meet consumer hot

spots.

It is also helpful for business development executives to understand the market

and identify opportunities for new or existing products.

Advertising & marketing agencies working on advertising and promotional

campaigns are another party who is going to be benefitted through this research

report. It can help reach consumer hot spots by developing targeted and effective

marketing communications.

It is also beneficial for research & development executives to develop and

formulate new products based on consumers’ needs and expectations.

2.0 LITERATURE REVIEW

The literature review section reveals that the used variables are abstracts from the

prevailing theories and the previous related researches. Those abstracts are clearly

shown here and it supposes that this research is not biased.

Theory of Consumer Decision Making Process

This theory says that how the customers decide to purchase products. According

to this theory consumers can be divided in to three categories based on their ways

of decision making. They are Extensive problem solving, Limited problem

solving, and Routinized response behaviour.

At the level of Extensive problem solving, consumers need a great deal of

information to establish a set of criteria to be considered when preferring for a

specific brand. At the level of Limited problem solving, consumers have already

established the basic criteria for evaluating various brands but they search for

more additional brand information to discriminate among various brands of a

product category. Routinized response behaviour talks that consumers have

experience with the product category and a well established set of criteria with

which to evaluate the brands they are considering. They simply review what they

already know.

Apart from that, this theory also describes four models of consumers with

different views .First one is economic view .Under this view consumer is

considered to be a rational person in terms of being aware of all available product

alternatives and ranking those alternatives according to the benefits and

advantages and identifying the best alternative.

Next, cognitive view .it says that a consumer is a problem solver. Consumers

search for goods that fulfill their needs and enrich their lives.

Preference Formation Model (PFM)

Preference is formed when the customer is bonded to your company through the

establishment of a mutual benefit. Successful companies therefore go beyond

delivery of a commodity or service; they pursue the development of a relationship

with their customers. This bonded relationship will be more likely to survive

competitive attacks than the mere purveying of goods or services or an over

reliance on aggressive pricing models.

One of the components of the Preference Formation Process is the development of

a Preference Formation Profile. This profile breaks out the required attributes of

each stage of preference formation.

The profile further differentiates the required attributes of preference into emotive

or functional attributes and defines each as attractor, satisfier or expectant. The

PFM results in a likelihood of preference formation index (PFI) which represents

the strength of preference for a given product/service. We have found that the

preference formation index (a standardized score ranging from one to one

hundred) can range dramatically given the market and population under

consideration. When the index is weak (seventy-five or below) it means that

while the elements of preference are “in play” there is a reasonable amount of

indifference toward the preference target.

R.L. Oliver (1994) observed that customer satisfaction results from a process of

internal evaluation that actively compares expectations before purchase of a

product or service with perceived performance during and at the conclusion of a

purchase experience. The deployment of the theory of reasoned action as a model

for preference formation explains why such evaluation takes place. Satisfaction

is a product of the alignment between prescribed functional and emotive

performance elements and the ability of the company to meet the performance

expectations. Sustained preference is a product of meeting these requirements

over time.

What we have referred to as functional and emotive performance elements Oliver

defines as “evaluative elements” (expectants, satisfiers and attractors) that, in

turn, comprise a single product or service evaluative experience. Sustained

preference can be thought of as a series of experience interactions that are

continuously being modified as the components of preference are modified over

time.

According to a research done by J. Jeffrey Inman, Leigh Mcalister, Wayne

D. Hoyer (1990), the promotional price cuts and promotion signals serve as

persuasive appeals in support of choosing a particular brand, the ELM model

posits a continuum of the ways choice attitudes might change as a result of

exposure to a promotion. At one end of the continuum, termed the central route to

persuasion, the consumer diligently, actively, and cognitively evaluates

information central to the particular evaluation.

Promoting a brand with both a promotion signal and a price cut will, on average,

increase the likelihood that an individual will choose that brand.

The presence of a promotion makes the selection of the promoted brand more

likely. Further, it seems that for some consumers, the promotion signal alone

represents a sufficiently significant change in the choice condition to induce a

shift in choice behavior toward the promoted brand. For some consumers, how-

ever, a concomitant price cut is needed.

Gregory S. Carpenter and Kent Nakamoto (1989) explain in their research

that consumer preference towards a product may differ because of the product

attributes. They say that the learning process of the customers form a preference

towards particular brand. First customers have a trial purchase and if the

customers are satisfied with the product attribute customers repurchase the

product and doing so the preference is formed. As a result, consumer preferences

are likely to evolve through time, updated through heuristic judgment processes.

Leon Schiffman and Leslie Kanuk.(2009) expresses in his book consumer

behavior the application of the Theory of Reasoned Action Model.

The model is designed to provide a better understanding of how consumer

preference is formed and, correspondingly, to provide the means to accurately

predict consumer preference behavior.

The important contribution of the reasoned action model is the realization that

consumers utilize the model in all purchase experiences to a lesser or greater

extent. Of equal importance is the realization that the components used to make a

preference decision are also the ones employed by a consumer to evaluate the

performance success of the product or service purchased and the company

responsible for them. Therefore, as the components of preference change, the

elements influencing satisfaction change accordingly. The relationship is

dynamic and fluid therefore static or predetermined satisfaction analytic packages

often miss the most important elements of preference and can create a false sense

of security on the part of companies who think that since their customer

satisfaction scores are high they must in turn have relatively loyal customers.

3.0 METHODOLOGY

Type of the research conducted is a descriptive research, in which the major

objective is to identify and describe the level of customer preference towards

Sunsilk shampoo.

The respondents who were taken in to account in terms of gathering information

were randomly selected. The respondents were selected using a non probability

sampling technique, which is known as convenience sampling technique. The

respondents were selected based on the researcher’s convenience. The selected

sample size was 50 respondents. Well prepared questionnaire was used in terms

of gathering information. The questionnaire was distributed among the Sunsilk

shampoo preferred customers.

3.1 Conceptualizing frame work

3.2 Operationalization of variables

Concept Variables Indicators Measurement

Customer preference towards Sunsilk

shampoo

Price

High pricevalue for moneyaffordable price Nominal scale

Attribute

fragrancepackagecolour

Likert scale

Need

Smoothening of hairTo prevent hair fallTo avoid dandruffTo reconstruct damaged hair

Nominal scale

KnowledgeExperienceinformation Nominal scale

promotion advertising nominal scale

Independent variables Dependent variable

priceAttributeNeedKnowledgePromotion

Customer preference towards shampoo

4.0 PRESENTATION OF FINDINGS

4.1 The age ranges of the respondents

According to the pie chart shown above Sunsilk is mostly preferred by the customers who

are within the age range of 21-25.Secondly 16-20.It shows that Sunsilk is mostly

preferred by young girls .But Sunsilk target market spreads from 16-40.However there is

a considerable preference level from the other two age ranges too.

4.2 No. of times that the respondents use Sunsilk shampoo per week

30%

36%

22%

12%

16-2021-2526-3030-40

Customers use Sunsilk shampoo in average at least once a week .Most of the customers

that is 20 customers use shampoo twice a week. It shows that customer consumption is at

a higher level. As the customers are satisfied with their needs they prefer to use Sunsilk

more. There are also a considerable number of customers using Sunsilk three times a

week.

4.3 What respondents think about the price levels of Sunsilk Shampoo?

once a week twice a week Threetimes a week

more than three times aweek

0

5

10

15

20

25

12

20

13

5

high price value for money affordable price0

5

10

15

20

25

30

35

40

45

1

39

10

Most of the customers that is 39 customers think that the price of Sunslk is actually value

for money. They think so because Sunsilk satisfy their needs and it is worth for them for

the price they pay. Therefore customers never hesitate to buy Sunsilk shampoo again and

again. It increases the level of preference and it causes for the increasement of sales too.

4.4 Indicated levels of agreement for the following statements

A large number of customers prefer the fragrance of Sunsilk shampoo. 43 customers that

is 86% of customers prefer Sunsilk fragrance while 6 customers (12%) do not rely on

fragrance.

Strongly agree

agree neither agree nor disagree

disagree Strongly disagree

05

10152025303540

6

37

61 0

I like the fragrance of Sunsilk very much

2 customers (4%) strongly agreed and 33 customers (66%) agreed with the given

statement and it shows that they prefer the current package of Sunsilk shampoo, but some

considerable numbers of customers do not care about the package. That is 13 customers

(26%).

Customers are intelligent and now they put a considerable amount of effort in identifying

healthy products. It is shown in the above chart.11 customers that is22% strongly care on

ingredients while 26 customers (52%) also check the ingredients of Shampoo.

Average preference level of Fragrance, package and ingredients

Strongly agree

agree neither agree nor disagree

disagree Strongly disagree

0

5

10

15

20

25

30

35

2

33

13

2 0

The bottle of Sunsilk shampoo is very con-venient to use

Strongly agree

agree neither agree nor disagree

disagree Strongly disagree

0

5

10

15

20

25

30

11

26

5 7

1

I check the ingredients of Sunsilk shampoo when buying

The overall conclusion regarding these three variables Fragrance, package and

ingredients shows the customers are affected by these three variables to prefer for Sunsilk

shampoo. It shows that 86%, 70%, and74% of the sample customers prefer for those

variables and it led for a higher preference level.

4.5 Do you like the colour of currently using Sunsilk shampoo?

This statistics show that the customers prefer the colour of currently using Sunsilk

shampoo brand. That is 44 customers (88%). But (12%) of customers need to have

44

6

yes

no

fragrance package ingredients0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%86%

70% 74%

variables affect for preference

Average level of preference

another colour instead of current colour. Most of those customers had mentioned that

they prefer to have shampoo in white colour.

4.6 What do you expect by using a shampoo?

The above

figure shows the types of needs the each customer expects from a shampoo. Most of the

customers that is 22 customers (44%) expect to smoothen their hair and secondly 15

customers(30%) to have a black shiny hair. Sunsilk satisfies both these needs through

their products Sunsilk Dream Soft & Smooth and Sunsilk Black Shiny Hair. So it reflects

that customers prefer to buy Sunsilk because Sunsilk satisfy their needs.

4.7 How satisfied are you with Sunsilk to meet your needs?

Smoothening of hair

Black shiny hair

To prevent hair fall

To avoid dandruff

To construct damaged

hair

0

5

10

15

20

25

22

15

4

2

7

This figure further shows that customers are satisfied with Sunsilk to meet their needs.

(12%) say that they are very satisfied and majority (80%) say that they are satisfied. This

says that as the customers are well satisfied and therefore they prefer to buy Sunsilk very

much.

In the same manner there are 2 customers (4%) that have still no satisfaction of Sunsilk.

But it is inconsiderable in comparing to the no: of customers that are satisfied with

Sunsilk. There are also another two customers who are neither satisfied nor unsatisfied. It

might be due to the affecting variable for them to buy. Because some customers showed

in the research that they do not pay attention to the need satisfaction.

4.8 What influence you to buy Sunsilk?

0

10

20

30

40

6

40

2 2 0

This figure shows that customers prefer to buy Sunsilk because of their self experience

(48%) and because of the recommendations given by the friends and neighbours (28%).

Promotion campaigns have a less effect on consumer preference as well as advertising.

Figure 4.1 to 4.8 presented the analyzed data and information gathered from the

questionnaire. The next part will show how the information support to get answers for the

following research questions and the findings of this research.

What is the average level of preference towards Sunsilk shampoo?

What are the effective reasons for the determined level of preference?

What is the most significant variable affect for the level of preference?

What is the relationship between the affected reasons and the level of

preference?

What are the potential benefits that customers expect from Sunsilk

shampoo?

5.0 FINDINGS AND DISCUSSION

Advertising Friends and neighbours

promotion campaigns

Self experience0

5

10

15

20

25

30

7

14

5

24

5.1 What is the average level of preference towards Sunsilk shampoo?

Considering all the independent variables affect for the level of customer preference, the

following factors are reflected.

92% of the customers prefer Sunsilk because of the need satisfaction they get

from Sunsilk and it is the most significant variable affect for the level of

preference.

Customers also have a 88% average preference level towards Sunsilk in terms of

price and colour .Customers believe that the price of Sunsilk is value for money

and the current colours of Sunsilk is also preferred by the customers.

Fragrance, package and ingredients also possess a considerable level of

preference among the customers.

There is a 48% average level effect towards the preference level from the past

experience of the customers.

There is a less effect that is 24% effect from promotions towards the preference

level of Sunsilk.

5.2 What is the most significant variable affect for the level of preference?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%88% 86%

70%

92%88%

74%

48%

24%

Series1

variables affect on preference

Average level of preference

towards Sunsilk

This figure shows the factors that customers give priority in preferring for Sunsilk. The

most significant variable affect for customer preference is their need satisfaction (53%).

That tells the customers prefer to buy Sunsilk as satisfy their needs in using a shampoo.

Secondly customers pay attention to the price levels (29%). As Sunsilk is actually value

for money, customers prefer to buy Sunsilk rather buying another brand. But customers

never give priority for colour, promotion and package when buying shampoo.

As well they pay a considerable attention for ingredients that are 10%.

5.3 What is the relationship between the affected reasons and the level

of preference?

29%

4%

53%

10%

4%

price

fragrance

need

ingredients

past expe-rience

PriceWhen it comes to price customers’ preference level is high because of the affordable

price levels of Sunsilk. Customers give 29% priority in selecting shampoo. In the case of

Sunsilk most customers (78%) believe paying money is worth for Sunsilk.

FragranceA large number of customers prefer the fragrance of Sunsilk shampoo. 86% customers

prefer Sunsilk fragrance while 12% customers do not rely on fragrance. But 96% of

customers do not give priority foe fragrance when buying Sunsilk.

Package4% customers strongly agreed and 66%customers agreed that it is convenient to use the

bottle of shampoo. It shows that they prefer the current package of Sunsilk shampoo, but

some considerable number of customers does not care about the package. That is

26%customers.But customers never give priority to the package in buying Sunsilk.

Need satisfaction12% say that they are very satisfied and majority 80% says that they are satisfied. This

says that as the customers are well satisfied and therefore they prefer to buy Sunsilk very

much. In the same manner customers give priority (53%) for need satisfaction when

buying Sunsilk.

Colour

88% customers prefer the colour of currently using Sunsilk shampoo brand. But 12%)of

customers need to have another colour instead of current colour. Most of those customers

had mentioned that they prefer to have shampoo in white colour. As well as the package

they never consider the colour of shampoo when buying.

Ingredients

Customers are intelligent and now they put a considerable amount of effort in identifying

healthy products. 22% customers strongly care on ingredients while 52% customers also

check the ingredients of Shampoo.

Past experience

48% percent of customers prefer Sunsilk because of their past experience .They believe

Sunsilk provides enough satisfaction so they prefer to buy Sunsilk.

Promotion

Customers never rely on promotion when buying Sunsilk. So promotion has a less effect

on customer preference level towards Sunsilk.

5.4 What are the potential benefits that customers expect from Sunsilk

shampoo?Most of the customers had mentioned that they are really satisfied with Sunsilk.

Customers are satisfied with the new co creation and they believe that Sunsilk satisfy

their all hair problems.

But majority wanted to have a Sunsilk shampoo to prevent dandruff

6.0 CONCLUSIONS AND RECOMMENDATIONS

The following conclusions along with the recommendations can be drawn through this

research.

There is a higher level of customer preference level in terms of Sunsilk shampoo.

The customers prefer Sunsilk shampoo as it satisfies their expected need.

Secondly customers care on price.

The most significant variable that affect for the level of preference is need

satisfaction.

There is a considerable negative attitude towards the package .So the management

should consider on providing a convenient package.

Customers gather information through their friends and neighbours rather than

advertising or promotion campaign. So promotion mix should be changed in to

direct marketing.

According to the research done on consumer preference level consumers are

happy with the brand but the company need to increase more community based

awareness and also by using blogs.

Innovation, implementation, cost reduction to offer best competitive price and

execution should be the strategy for continuation to be the market leader.

The company should introduce a new product mix for cleanness and remove

dandruff.

It is better to find out innovative means of promotions like forming a special

association or some distinct group which will help maintain its brand equity and

loyalty.

Company should maintain its quality with constant improvements as customers

expect the high quality.

Company can survive if they come up with new varieties according to market

needs and maintain a competitive pricing.

7.0 REFERENCE Basic Structural Model of Customer Preference Formation, (2009),Leon Schiffman and

Leslie Kanuk. Consumer Behavior, Nineth edition, published by Pearson Prentice

Hall,South Asia.

Consumer Preference Formation and Pioneering Advantage, (Aug.1989) Gregory

S.Carpenter and Kent Nakamoto. Journal of Marketing Research,

Vol. 26,Published by American Marketing Association.

Developing Customer Insight: The Determination of Customer Preference.

www.icrsurvey.com

Promotion Signal: Proxy for a Price Cut? (Jun. 1990), J. Jeffrey Inman, Leigh McAlister,

Wayne D. Hoyer.The Journal of Consumer Research, Vol. 17, Published by: The

University of Chicago Press.

Research for Head and Shoulders (2007), Vikram B. Thadeshvar, Rohan

Tamrkar,Sailendra Sharma

8.0 APPENDIX

8.1 Questionnaire for Sunsilk Preferred Customers

1) What is your age range? Put a tick [].

16-20 21-25 26-30 30-40

2) How many times do you use Sunsilk shampoo per week? Put a tick [].

3) What reasons affect you to prefer for Sunsilk shampoo? Rank 1-8 according to your priority.

pricefragrancepackageneed satisfactioncolouringredientspast experiencePromotions

4) What do you think about the price levels of Sunsilk shampoo? Put a tick [].

high pricevalue for moneyaffordable price

5) Indicate your level of agreement for the following statements. Put a tick [].

Once a weekTwice a week Three times a weekMore than three times a week

6) What is the colour of your currently using Sunsilk shampoo?

Do you like that colour? Yes No

If not, what colour do you prefer to in your shampoo?

7) What do you expect by using a shampoo to wash your hair? Put a tick [].

statement strongly agree agree

neither agree nor

disagree

disagreestrongly disagre

e

I like the fragrance of Sunsilk very much

The bottle of Sunsilk shampoo is very convenient to use.

I check the ingredients of Sunsilk when buying

Smoothening of hairBlack shiny hair To prevent hair fallTo avoid dandruffTo construct damaged hair

8) How satisfied are you with Sunsilk to meet your needs that you mentioned in the Q: (07)? Put a tick [].

very satisfiedsatisfiedneither satisfied nor unsatisfiedunsatisfiedvery unsatisfied

9) What influence you to buy Sunsilk? Put a tick [].

10) Please suggest some other benefits you prefer to have from Sunsilk in the future.

Thank you for your favourable response

AdvertisingFriends and neighbourspromotion campaignsSelf experience