““Analysis of Consumer Analysis of Consumer Behavior while purchasing Behavior while purchasing

Consumer Durable”Consumer Durable”

Presented by:Presented by:

Shawinder Pal Singh “A”-51Shawinder Pal Singh “A”-51

Padalia Nandan “B”-34Padalia Nandan “B”-34

ObjectivesObjectivesTo study the Indian Consumer Durable To study the Indian Consumer Durable

industry.industry.To study the role of consumer while To study the role of consumer while

buying of durables.buying of durables.To study the various stages of To study the various stages of

“Consumer Decision Making Process”.“Consumer Decision Making Process”.To study how consumer behaves in To study how consumer behaves in

different situations before purchasing any different situations before purchasing any durable product.durable product.

To find the effectiveness of various sales To find the effectiveness of various sales promotion activities.promotion activities.

Sources of data collectionSources of data collection

Primary sourcesPrimary sources Questionnaire Questionnaire

Secondary sourcesSecondary sources Internet Internet News papers & magazinesNews papers & magazines Reference booksReference books

Research designResearch design

Sample areaSample area Ahmedabad and Gandhinagar Ahmedabad and Gandhinagar Target sampleTarget sample consumers of Ahmedabad and consumers of Ahmedabad and

Gandhinagar Gandhinagar Sample sizeSample size 200 respondents (consumers) 200 respondents (consumers) Methods usedMethods used Convenience SamplingConvenience Sampling which is a which is a

technique of Non Probability Sampling.technique of Non Probability Sampling.

Limitations Limitations Reluctance on the part of the Reluctance on the part of the

respondents to provide exact details.respondents to provide exact details. Lack of sufficient funds to cover the Lack of sufficient funds to cover the

whole universe as a sample.whole universe as a sample. Limited Coverage area for survey, it Limited Coverage area for survey, it

was restricted to Ahmedabad and was restricted to Ahmedabad and Gandhinagar City only.Gandhinagar City only.

There were only five major durables There were only five major durables considered in this project considered in this project

Industry Profile Industry Profile

ProductsProducts Television Television Refrigerator Refrigerator Washing machine Washing machine Air conditioner Air conditioner Music systemMusic system

Industry Profile (cont….)Industry Profile (cont….)

Product wise EarningProduct wise Earning Television:colour-Rs.91bn&B&W-Television:colour-Rs.91bn&B&W-

Rs.5bnRs.5bn Refrigerator:Rs.39bnRefrigerator:Rs.39bn Air conditioner:Rs.24bnAir conditioner:Rs.24bn Washing machine:Rs.11bnWashing machine:Rs.11bn

Industry Driving factorsIndustry Driving factors

Low price to push volumeLow price to push volume Increasing number of replacement Increasing number of replacement

buyersbuyers aggressive advertising with innovative aggressive advertising with innovative

marketing schemesmarketing schemes Easy availability of finance (installment)Easy availability of finance (installment) future market growth is likely to come future market growth is likely to come

from small towns and SEC (Social from small towns and SEC (Social Economic Class) Economic Class)

KEY ISSUESKEY ISSUES

High competition led to price erosion High competition led to price erosion over the pastover the past

Increased consumer choice has Increased consumer choice has reduced brand loyalty reduced brand loyalty

performance of players in the industry performance of players in the industry has been characterized by declining has been characterized by declining price realizations and shrinking price realizations and shrinking operating & net margins operating & net margins

The demand is both seasonal and The demand is both seasonal and cyclical cyclical

Major playersMajor players

LG LG Samsung Samsung BPL BPL WhirlpoolWhirlpool SonySony National PanasonicNational Panasonic GodrejGodrej VideoconVideocon OnidaOnida PhilipsPhilips

Consumer Behavior Consumer Behavior “ “Consumer Behavior is defined as the Consumer Behavior is defined as the

behavior that consumers display in searching behavior that consumers display in searching for, purchasing, using, evaluating and for, purchasing, using, evaluating and disposing of products and services that they disposing of products and services that they expect will satisfy their needs”expect will satisfy their needs”

Consumer behavior focuses on how individuals Consumer behavior focuses on how individuals makes decisions to spend their available makes decisions to spend their available resources like time, money and effort on resources like time, money and effort on consumption related items.consumption related items.

That includes what, why, when, where and That includes what, why, when, where and how often they buy it, how they evaluate it how often they buy it, how they evaluate it after the purchase and the impact of such after the purchase and the impact of such evaluations on future purchase and how they evaluations on future purchase and how they dispose of it. dispose of it.

127

73

by cash

in installments

In which way would you like to In which way would you like to pay?pay?

79

29

73

19 Cash

Cheque

Credit Card

Debit Card

Which mode of payment do you Which mode of payment do you prefer?prefer?

You shop for electronics items You shop for electronics items mostly during….mostly during….

1378

4213

Festivals

Occasions

Seasonal

Any Time

39

43

47

33

28 10Brand Name

Quality

Price

Schemes

Features

After sales Services

which factors do you consider which factors do you consider while purchasing electronics while purchasing electronics

items?items?

Does your buying decision depend Does your buying decision depend on Schemes?on Schemes?

97

103

Yes

No

If “yes” in above question then If “yes” in above question then which type of schemeswhich type of schemes

7

2

356

10

Price Discount

Gifts

Lucky Draw

Bundling Offer

Scratch Card

Exchange Offer

From where do you gather the From where do you gather the information?information?

56

54149

12

37

Television

Radio

Newspaper

Retailer

POP

Friends & Peers

How many visits of showroom do How many visits of showroom do you make before buying?you make before buying?

8 25

153

14 1

2

3

More than 3

How much time do you take before How much time do you take before making a decision to purchase?making a decision to purchase?

54

112

267

Less than week

Week-Fortnight

Fortnight-Month

More than Month

Findings Findings

Stocks are pilling up at retail outlets due to Stocks are pilling up at retail outlets due to the probabilities of implementation of VAT.the probabilities of implementation of VAT.

The peak period of the year is third The peak period of the year is third quarter(oct-dec) which contains many quarter(oct-dec) which contains many festivals like Diwali, Christmas etc.festivals like Diwali, Christmas etc.

In Consumer Durables there is a high level In Consumer Durables there is a high level of association of feelings and high of association of feelings and high involvement during purchase involvement during purchase

Price and Quality of the product are the Price and Quality of the product are the main considering factors at the time of main considering factors at the time of purchasepurchase

Television is the main source of getting Television is the main source of getting information about a product.information about a product.

Price discount and Exchange offers are the Price discount and Exchange offers are the most popular sales promotion activities. most popular sales promotion activities. There is an increasing number of There is an increasing number of replacement buyers.replacement buyers.

People prefer to purchase through cash or People prefer to purchase through cash or credit cards. credit cards.

Installments are also the popular way to Installments are also the popular way to achieve the sales volumes.achieve the sales volumes.

Most of the people visit the showroom Most of the people visit the showroom thrice before any purchase and it takes a thrice before any purchase and it takes a week to fortnight time for purchase.week to fortnight time for purchase.

NEED RECOGNITION

INFORMATION SEARCH

EVALUATION OF ALTERNATIVES

PURCHASE DECISION

POSTPURCHASE BEHAVIOR

Consumer follows a particular path for any purchase which is known as “Decision Making” process which is shown below:

SUGGESTIONSSUGGESTIONS Price and Quality are the main features of Price and Quality are the main features of

any product so companies should try to any product so companies should try to achieve economies of scale and learning achieve economies of scale and learning curves with higher efficiency.curves with higher efficiency.

There are still some areas which are There are still some areas which are under developed on which companies under developed on which companies should try to concentrate and develop should try to concentrate and develop some penetrating strategies.some penetrating strategies.

Giving installments at lower or zero Giving installments at lower or zero percent interest rate would help to percent interest rate would help to increase sales volumes.increase sales volumes.

SUGGESTIONS (cont….)SUGGESTIONS (cont….)

Give advertisements associating feelings Give advertisements associating feelings with it to position the brand name.with it to position the brand name.

Sales promotions affect the sales volume Sales promotions affect the sales volume so giving effective sales promotions will so giving effective sales promotions will lead to increase in sales volumes.lead to increase in sales volumes.

Price discount and exchange offers are Price discount and exchange offers are the most effective schemes so companies the most effective schemes so companies should concentrate on it instead of other should concentrate on it instead of other schemes which are less effective.schemes which are less effective.

Thank YouThank You

SHAWINDER PAL SINGH

NICM,GANDHINAGAR