chapter ii review of literature 2.1...

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CHAPTER II REVIEW OF LITERATURE

2.1 Introduction

A detailed review of literature has been made to find out the research gap

and to identify the relevant researchable issues for the study. It is essential for a

research scholar review the related literature study to have clear knowledge

about the subject and understand the research gap in order to drawn the scope

for the study. The reviews presented in this chapter are grouped under the sub-

topics like consumer buying behaviour, consumer attitude, consumer

preferences, customer satisfaction and overview of paint industry in India.

2.1.1 Consumer Buying Behaviour

Consumer behavior analysis is based on consumer’s buying behavior. It

aims at improving business performance through an understanding of

customer’s preferences and desires. In today’s world of growing competition

where there are numerous brands selling the same products, consumers have an

abundant number of choices and many diverse factors influence their buying

behavior.

Rowley (1997)1 in his research work had commented that consumer

buying process offers two useful perspectives: the decision-making process

associated with consumer buying and the factors which affect the buying

process. The author further stated that the consumers buying process can be

divided into personal, psychological and social and cultural factors. The ‘social

factors’, such as consumer’s small groups, family, reference group, social roles

and status can affect consumer responses and influence their buying behavior.

‘Personal factors’ such as age, lifecycle stage, occupation, education and

economic situation, and ‘Psychological factors’ such as, motivation, perception,

learning, beliefs and attitudes and personality, also play major roles in consumer

decision-making process.

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Hawkins et. al., (1998) 2 says that for many products, consumers

frequently have numerous choices as to where they are going to actually obtain

the product. In the old days, most consumers had access only to "general" stores

for most products. Gradually, in urban environments, specialty and discount

stores evolved. Today, a consumer may generally choose to buy most products

either at a relatively high price, frequently with a significant amount of service,

in a specialty store, or with lower service in a discount store. Peter & Olson

(1999)3 sys that consumer behavioral intentions reflection of their plan of action

or the proposition associating one’s self with a future action or behavior.

Anurag (2007)4 in his e-article “Consumer Behavior and Buying

Decision Making” has pointed out that marketing in India is growing through an

indefinable phase and so also the changing role of consumer in making decision

and the way in which the new generation of Indian consumer behaves. The

characteristics of Indian families are changing under the influence of external

factors such as liberalization and media explosion. Indian families are presently

in a state of flux, shifting from being strictly hierarchical to more egalitarian in

character. And the process of migration definitely has a big role to play in such

transition.

Sundaram Rajagopalan (2013) 5in his report pin point that in coming

years’ urban middle class will always dwarf. Urban affluent consumers in

spending power because of their sheer size. Product will proliferate, consumer

will complain of excess choice although would love the excess choices.

Consumers will enjoy income levels unmatched by that of previous generations.

(esp in Metros and large towns) Widening income levels, migration (rural to

urban) will create new opportunities. Most consumers will continue to embrace

traditional and modern values and will be eager for modern products with Indian

tastes.


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2.1.2 Consumer Attitude

Consumers are individuals with likes and dislikes. When the

preponderance of people in a particular group feel one way or another about a

product, service, entity, person, place or thing, it is said to be a generalized

consumer attitude that could affect the marketing of that person, product or

entity in positive or negative ways. Marketers strive to influence consumer

attitudes, and understanding the prevailing attitude is the first step to changing it

if needed.

According to Homer and Kahle, (1988)6 personal values have been found

to be the underlying determinants of various aspects of consumer attitude and

behaviour. Weiner (2000)7 observe that “Consumer attributions play their role in

post-initial outcome decision making; that is, attributions intervene and exert

their influence after a product-related outcome and prior to the next choice.

Attributions arise when one evaluates the extent to which the initial product

performance corresponds to one’s level of aspiration vis-a`-vises that product,

and one then questions the cause of the outcome. It has been definitively

documented that attribution search is more likely following failure

(dissatisfaction, in this case) rather than after success (or satisfaction). After all,

we typically do not ask why we did well on an exam, or why a submitted paper

was accepted, but rather why we failed and why our manuscript was rejected.

And we do not ask why a product ‘worked,’ but why it did not function”.

Dick and Basu (1994) 8 say that loyalty can be examined from the

relationship between customer’s attitude toward a product, brand, service,

supermarket or store, seller and the customer’s patronage behaviour. Mowen

(2000)9 had identifying the vital attributes that influence consumer decision

making and shopping behavior, marketers can refer to important attributes that

are relevant to each of the market segments. Attribution theory can also be

applied in explaining consumer shopping behavior as future patronage

intentions is often influenced by both store and consumer variables.


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As per the opinion of Hawkins et al (2001)10 consumers’ attitude toward

lifestyle merchandising is quoted as” A consumer’s opinions and personal

relevance that is felt toward products that are promoted by coordinating

production, marketing, in-store advertising, display, and sales strategies to

reflect the manifestation of one’s self-concept or self-identity. To the similar

concept Etzel, Walker and Stanton (2001)11 says that “A consumer’s opinions

and personal relevance that is felt toward presented references to one’s self-

concept or self-identity via a non-personal, sponsor-identified, paid message.

Kim et al (2002)12 says that as more resources become available,

consumers may desire more emotional image attributes in products or brand.

Ling, Choo, and Pysarchik (2004) 13 note that Indian customers’ attitude towards

new products are changing significantly and this can increase their intention to

shop in new retail outlets such as supermarkets. Thus, product attributes such as

quality, price and availability of new products are important constructs within

the Indian context. Miranda, Konya and Havrila (2005) 14 research suggests that

quality, price, availability of new products and product value are the product

attributes that influence consumer attitude.

2.1.3 Consumer Preference

Consumer preferences is the underlying foundation of demand, therefore,

is a model of how consumers behave. The individual consumer has a set of

preferences and values whose determinations are outside the realm of

economics. They are no doubt dependent upon culture, education, and

individual tastes, among a plethora of other factors. The measure of these values

in this model for a particular good is in terms of the real opportunity cost to the

consumer who purchases and consumes the good. If an individual purchases a

particular good, then the opportunity cost of that purchase is the forgone goods

the consumer could have bought instead.

Sheth, Newman and Gross (1991) 15 opine that in general, the Indian

consumers were indifferent in choosing the brand, since a lot of close substitutes


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were available in the market. Due to technological and knowledge up-gradation,

today’s customers prefer to opt for branded product. This is because of an urge

for getting proper value against payments made. Aaker (1996)16 has mentioned

that brand of a particular product plays a fundamental function in consumer’s

perception of a product. It helps in developing a market position, prestige and

image of the product and for these reasons the brand constitutes a mechanism of

risk reduction. Hence, selection of brand is another major constituent of

consumer behavior.

Dunne and Narasimhan (1999) 17 say that consumers’ perception of the

relationship between price and quality is the main factor which influences the

brand choice decision between private labels and national brands.

According to Mishra (2007) 18 the Indian market has seen vast changes in

political, economic and social environment which has a great impact on

consumption. Singh (2007) 19 is of the view that production oriented market has

been shifting towards consumer oriented market. Traditional consumption

pattern has also been facing large-scale changes.

Priya Soni (2010) 20 study aimed to evaluate the customer’s perception

towards the purchase of branded products. She says that there is prevailing high

competition among various brands in India. In every product category,

customers have more choices and higher expectations. The success of the

strategy depends heavily on the marketer’s understanding of the preference

building and bonding process. Since brands seeks reflecting consumer

preferences and wants.

2.1.4 Customer Satisfaction

Customer satisfaction, a term frequently used in marketing, is a measure

of how products and services supplied by a company meet or surpass customer

expectation. Customer satisfaction is defined as "the number of customers, or

percentage of total customers, whose reported experience with a firm, its

products, or its services (ratings) exceeds specified satisfaction goals.


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Johnson et al., (2000) 21 says that businesses need to attract and establish

a customer market and would need to retain it through satisfaction. That is the

key to its business performance. As per Cacippo (2000) 22 basically, customer

satisfaction is a psychological state, carefulness should then be taken when

measuring it. Competitors that are prospering in the new global economy

recognize that measuring customer satisfaction is a key. This is because of doing

so, industries can hold on to the customers they have and understand how to

better attract new customers.

As per Kotler (2003) 23 satisfactions is a person’s feelings of pleasure or

disappointment resulting from comparing a product’s perceived performance (or

outcome) in relation to his or her expectations. The satisfaction judgment is

related to all the experiences made with a certain business concerning its given

products, the sales process, and the after- sale service. Whether the customer is

satisfied after purchase also depends on the offer’s performance in relation to

the customer’s expectation. Customers form their expectation from past buying

experience, friends’ and associates’ advice, and marketers’ and competitors’

information and promises.

Gustafsson (2005) 24 define customer satisfaction as “a customer’s overall

evaluation of the performance of an offering to date. This overall satisfaction

has a strong positive effect on customer loyalty intentions across a wide range of

product and service categories.

As per J.D. Power and Associates report (2012) 25 it has been found an

additional contributor to increased satisfaction is customers' experience with

paint retailers. More than one-half of customers who purchased paint received

guidance on their painting project from the retailer and more than one-third

received color selection advice. Interestingly, satisfaction is higher among

customers who purchased their paint directly from a manufacturer's specialty


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store (e.g., Sherwin-Williams, Dunn-Edwards) than among those customers who

purchased from a home improvement retailer.

Shaikh Reeha Vasi (2012) 26 research aims to analyse customers level of

satisfaction after using Asian Paints, are they willing to be a loyal customers or

do they prefer other brands. The survey reflects the areas where the

company needs to improve and the areas where it from where it has gained its

popularity.

2.1.5 Paint Industry in India, its Consumption and Buying Practices

Indian paint industry has grown by leaps and bounds over last 15 years.

The per capita consumption of paint still is one of the lowest. This means there

is a big scope for the industry to grow further. This is one industry that has

successfully developed the large small sector together. This is so because higher

and lower segments of buyers are growing rapidly. The specifications of the

large, specialized users are stringent and cannot be matched small scale sector

that will have to remain out of the corporate business. There is a huge market of

domestic, house hold paints competing with lime and cements paints that cannot

be tapped by the large manufacturers due to their high over heads. The

difference cannot be matched by their high purchasing power. Industrial experts

do not see a possibility of complete elimination of the small scale sector form

the Indian scene. In fact we have not seen any small scale paint industry closing

down in last several years. Everyone is recording a healthy growth in volume as

well as value terms. The richness of the small scale is amply evident in the

annual general meetings of the members of Indian Small Scale Paint

Association. This means, the small scale industry is doing well and would

continue to do well. One of the major reasons is low fixed capital employed for

manufacture of paints. The working capital requirements are very huge. This is

now easily available from banks and the turnover of the industry is growing

very rapidly.


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As Wheeler (2000) 27 explains “Brand is the promise, the big idea, the

reputation and expectations that reside in each customer’s mind about the

product and/or the company. It is a powerful yet intangible asset. Brand is about

making an emotional connection. People fall in love with brands. They trust

them, develop strong loyalties, buy them, and believe in their supremacy”.

Once the importance of brands was realized, many corporations worldwide

started to create their brand images.

According to Mishra (2002)28 Indian customers look for the fresh

solutions to their problems and in addition with better value for their money.

This persuades the paint industries to introduce products of some value with the

lower cost. Some new types of paints launched by the companies to attract more

customers are; washable odorless interior paints, water based enamels, and anti-

bacterial paints. Apart from these, companies have even launched paints with

long life guarantee.

Raghavan (2006)29 has confirmed that the Indian paint industry has lately

completed its 100 years of manufacturing. The history of modern paint

manufacture of India starts from 1902, “when the first paint factory, shalimar

Paints came into horizon”. The Indian paint industry is projected to be worth of

approximately USD 1.8 billion. The total production of the paint is in the area of

900,000 metric tons. Apparently the Indian paint industry is the only sector of

the Indian chemical industry that has been on the rise for the last three years. It

has been recorded that the growth of the industry has been in double-figures.

The per capita consumption of paint in the Indian market is noticed to be 0.8 kg

or 800 grams. This consumption rate is much smaller to that of South-East Asia

where the consumption is about 4.3 kg which is the total of the world average of

22kg. However as recorded by the Indian paint industry, the growth rate has

been exceptionally promising. The demand and the consumption of the paint in

the last 8 years have shown an increasing trend and the “last 3 years have shown

growth rates in excess of 10per cent.


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According to Swar (2007)30 several demographic indicators show

favorable trends for the growth of organized trade in India. These are: i) Rapid

income growth: consumers have a greater ability to spend, ii) Increasing

Urbanization: larger urban population that value convenience, coupled with the

higher propensity of the urban consumers to spend, iii) Growing young

population: growth of the post-liberalization maturing population, with the

attitude and willingness to spend and iv) Spend now vs. save earlier: consumers

are willing to borrow for present consumption.

As per the Indian Paint Association report (2007)31 there is a shift in the

consumer behavior with the paint buying and painting process evolving. The

consumer is upgrading from buying distempers to emulsions and from buying

paints to buying premium services, unlocking a completely new value chain.

What it would mean for the industry is that it will have to serve the consumer

now in newer innovative ways. The consumer is ready to pay the price and

would be the key factor driving this change.

According to Kapferer (2008) 32 a brand has two different functions: to

distinguish products from each other and to indicate a product’s origin. Subhash

Jha (2008)33 study is based same reveals the painters' role in the selection of

decorative paints by the consumers. She says that the dealers, the interface

between consumers and manufacturers, perform a pivotal role in several

industries. One of them is the paint industry, where success of the

manufacturer's product largely depends on dealer support. The manufacturers

therefore, try to motivate the dealers by giving financial and non-financial

incentives. This paper seeks to identify the factors which prompt dealers to

stock certain paint brands in their outlets. Further, it also identifies the factors

which influence consumers' purchase decision from the dealers' perspective.

Since the dealers are in direct contact with the end-users, consumers' perception

is better known to them.


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Preeti Khicha (2008)34 in her report have mentioned that over the years,

the seasonal aspect of painting a home in India changed and homemakers

gradually came to associate painting with home décor and interiors. Choosing a

paint brand became a high-involvement category, particularly in the decorative

segment with the focus of the brand shifting from the builder to the homeowner.

As consumers became more involved in the decision making process, the

company realized that an online presence would perhaps serve as an important

tool to engage this new audience.

Akanksha Goel (2008)35 research work seeks to extend the earlier work

done by various researchers and authors that examined the factors involved in

the new product launch. In particular, the critical success factors involved in

new product launch and the internationalization of the firm to launch the

product in the foreign market is examined. The research is done in the context of

the Indian Paint industry. The central research methodology for the project uses

a qualitative approach involving the interviews. The interviews were taken from

Asian Paints Ltd., Berger Paints and Rajdoot Paints. The interviewees were

asked certain specific questions regarding the new product launch in national

and international market. The interview explored the new product development

and the launching tactics of these companies. From the interviews it was made

clear that the companies follow all the main strategies that are required in the

new product development and the launch of the product which proves out to be

beneficial. But there are certain factors that companies do not take into

consideration that the researchers talk about. These come out to be

recommendations for them. Some of the limitation of the research is also

covered which would be really helpful for the further researchers.

Pandey (2009)36 in his empirical research work has mentioned that paint

companies are performing at their best this time and touching the horizon of

success gradually. The present study is to analyze the various influencing

factors which make the consumer's intent into purchase decision. While the

paint manufacturing companies are putting all efforts to hold the greater market


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share, it is imperative to analyze the brand perception of consumers and their

final purchase. The study reveals that the consumers are important but at the

same time surrogate consumers also influence the decision making process of

purchase. The paint industry dealers also play a vital role as a channel partner in

the success of paint companies. The study found that Asian paint is the best

paint company in India followed by Nerolac paints and Berger paints. There is a

cut throat competition among the paint companies. The maximum number of

dealers deal in Asian Paints and Berger paints followed by Nerolac Paints, ICI

paints and Shalimar paints respectively and Asian paint holds the strongest

perception in the minds of consumers and dealers. But Performance and quality

is the most influencing factors for the customer while choosing paint.

Akhilesh Chandra Pandey (2009)37 in his research article have registered

the prevailing fact that the Paint companies are performing at their best this time

and touching the horizon of success gradually. The present study is to analyze

the various influencing factors which make the consumer's intent into purchase

decision. While the paint manufacturing companies are putting all efforts to

hold the greater market share, it is imperative to analyze the brand perception of

consumers and their final purchase. The study reveals that the consumers are

important but at the same time surrogate consumers also influence the decision

making process of purchase. The paint industry dealers also play a vital role as a

channel partner in the success of paint companies.

Srivastava R.K (2009)38 had commented that measuring the effectiveness

of brand strategy is a difficult task. This paper examines the approach to

measurement of strategy through application of brand score and brand equity as

a tool. The study was done in two phases. In the first phase brand score was

calculated by 150 postgraduate management students. The second phase of

study was to calculate brand equity using the same respondents for the same

brands. The top three brands in food, cold drink and telecommunication service

provider segments were selected for the study. Higher McDonald's brand score

also had higher brand equity index when compared to Domino's and Pizza Hut.


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It means strategy is working quite well as reflected in two measurable tools. The

individual component study for brand score and brand equity index can give

insight on impact of strategy on these two measurable approaches of strategy. It

can also help in reducing wastage of promotional expenditure. This could give

scope for further research because of less work done in this area.

Report on Indian Paint Industry (2010)39 it has revealed that the growth

of the domestic paint industry is attributed to the boom in the housing sector and

the strong growth in the automobile sector. Around 70per cent of the domestic

paint industry revenues come from the decorative segment, whereas the

industrial segment constitutes around 30 per cent. In 2005, the manufacturing

sector has shown good activity with new projects in roads, ports and industrial

segments. The Indian paint industry has a huge potential, as the per capita

consumption of paint in India is 800-900 grams compared to 15-25 kg in the

developed countries.

Rizwan Ali .S (2010)40 say that opinion or attitude is an individual point

of view towards the product. It may either be favourable or unfavorable; their

view may change at any time. Competitor’s action and promotional activities by

an organization will change the customer point of view towards the product. The

study is conducted in Chennai city for “Identifying the total potentials of white

cement market for Asian paints India Ltd”. The research study is conducted

based on descriptive research of fact-finding and enquires. A population of 106

from Asian paints colour world dealers in Chennai city were covered through

survey and interview technique. The questionnaire is based on multiple-choice

questions, open ended and closed ended. The researcher used percentage

analysis, weighted average method, ranking and chi–square for research

purpose. The findings state that the dealers accept the alternative product for the

white cement. The final part suggestion gives what are all the activities to be

taken while launching the new product.


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Sunanda K. Chavan (2010)41 in her empirical work had stated that Paint

demand is intrinsically related to economic development. The demand for

decorative paint in India mainly arises from two segments viz., construction of

new building and retail demand for refurbishment. While the demand for

industrial paint comes from industries like automobile, consumer durable,

shipping engineering etc. the demand for paint has grown at 10 per cent for last

five years. After the sluggish growth in late 80’s and early 90’s, industry grew at

rapid pace of more than 12 per cent from 1992-96. High excise duties and lack

luster industrial growth resulted in low growth of 2-4 per cent during 1987-92.

After 1992, the industry picked up aided by improving economic condition and

rationalization of excise structure. Almost the entire growth can be attributed to

volume increase as price realization has increase at less than 5 per cent per

annum. over the last two years demand slows down due to economic slowdown.

According to Indian Paint Association, demand raised from 0.6mn tones

per annum to 1million tonne per annum by 2003. Demand from decorative paint

will be led by the household construction industry which is expected to grow

almost 8 per cent over the next five years considering the extreme shortage of

housing and the governments thrust on encouraging the housing activity are also

likely to shift more towards rural areas. The industrial segment will grow faster

due to the lower base and fast growth in major users like consumer durable and

automobile.

M. Punniyamoorty and Nanda Kishore Shetty (2011)42 have stated that in

today's highly competitive business environment together with the global

meltdown of economy, manufacturers of generic commodity products like

cement must achieve some degree of differentiation for their products in order

to avoid their product being viewed as a basic generic commodity. This will

help them to develop strong cement brands in this sector, and move the

customers from a low-involvement decision-making process to a medium- or

high-involvement decision-making pattern. Hence this paper attempts to find

out the customers' preference pattern and the factors which influence the


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customers' preference so that a strong cement brand can be developed by

understanding the values the customers are looking for, and then develop a

suitable branding strategy. A study has been carried out with some of the major

cement customers in Bangalore, one of the fastest growing cities in India. The

results of the survey shows that the customers are not only viewing physical

products, but also the distribution, customer service, quality, package,

durability, price, value for money, company image and company policy that

accompany the product. The study concludes with the managerial implications

and suggestions for cement manufacturers towards developing suitable branding

strategies.

Acording to Renu Rajaram (2012)43 in India, paints have traditionally

been sold in hardware stores. Most paint brands have followed the retail route of

multi-brand stores. However, with the growth of the Indian paint industry, and

the recognition of individual brands, prominent players have recognized the

need for exclusive outlets/showrooms. The success of these outlets lies in the

fact that the consumer can negate the time taken to choose between brands, and

instead focus on product choice without having to worry about quality.

As per an interview with Manish Choksi (2012)44 conducted by

Capgemini consulting it has been mentioned that Asian Paints is the largest

paint manufacturer in India, with US $1.6 billion in turnover. Around 80 per

cent of our business is in India and the remaining 20 per cent is located

internationally, distributed across 20 emerging and fast-developing countries. In

India, which is the fastest growing coatings market in the world, Asian Paints

currently have a 40 per cent market share in the decorative paints business.

Asian Paints also address the Industrial and the Project markets. In India, the

company has about 120 warehouses and 10 coatings manufacturing plants.

Around 20 per cent of our products are manufactured by outside contractors.

Asian Paints face stiff competition from major international companies in our

domestic market, notably Japanese and American, as Asian Paints well as from

newer players entering India. Asian Paint’s competitors pursue niche strategies


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in all of their key markets. To beat this increasing competition, Asian Paints

constantly need to adapt our product portfolio to the ever-changing and

increasingly segmented market demand by introducing new products that meet

the décor needs of the country and are environmentally friendly as Asian Paints.

Another challenge is to drive efficiency and growth in a business spread over

120 locations, which deals directly with 20,000 to 30,000 retailers. Keeping our

manufacturing and supply chain costs under control is a tough challenge, given

constraints of infrastructure and logistics in India. Finally, the company has also

begun to sell services (such as a “painted wall”) instead of products (a can of

paint, for example). Gaining better knowledge of end-customer preferences is a

high priority for the company, since its traditional business model - operating

largely through retailers - has had very low levels of customer involvement. The

aim of Asian Paints is to be in the top five global decorative coating companies.

Pallavi Kumari (2012)45 had recorded in her empirical work that the way

Indian consumers are spending their money on various items has changed in

recent years. With the ever-increasing penetration of internet and social media,

the purchasing behavior of Indian consumers has changed dramatically.

Urbanization is taking place in India at a dramatic pace and is influencing the

life style and buying behavior of the consumers. The present study is based on

the perceptions, buying behavior and satisfaction of the consumers in Indian

market. The Indian consumers are noted for the high degree of value orientation.

India is a lucrative market even though the per capita income in India is low and

it remains a huge market, even for costly products. Consumer behavior is

complex and very often not considered rational. The recent trends which are

found in the Indian market are celebrity influence, online shopping, freebies and

popularity of eco-friendly products.

As Paint industry Conference report (2013)46 Indian paint market over

the past few years, despite many ups and downs in the recent past India has

shown a formidable performance compared to other economies. Changing


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Demographics of the country will certainly help boost growth rate in all sectors.

Paint industry has shown a good growth record in the past and many believe it

will continue to do so in coming years as well. Albeit growth drivers,

consumers, towns, products will differ from existing ones. The industry is at the

threshold and every right step from here on will only bring success. Industrial

experts believes that time players all get back together and deliberate on all

these issues involving Paint manufacturers, Supplier partners, government

representatives, Scientist and other Stake holders of this industry.

RNCOS (2013)47 report on the Indian Paint Industry Forecast, say that

over the past few years, the Indian paint market has substantially grown and

caught the attention of many international players. The country continues to

enjoy a healthy growth rate compared to other economies, backed by the

increasing level of disposable income, and demand from infrastructure,

industrial and automotive sectors. On the back of such advocacy, it is

anticipated that the sector will post a CAGR of around 15per cent during 2012

to 2015, according to the new research report, “Indian Paint Industry Forecast to

2013”.

The report segregated paint industry into two segments – Decorative and

Industrial paints. Decorative paint markets were further segmented into sub-

segments, such as emulsions, enamel paints, distemper and cement paints. The

industrial paint market covers sub-segments such as automotive coating, high

performance coating, powder coating and coil coating. Our analysts closely

studied and provides market forecast till 2014-15 of each of the segment and

sub-segments. During the study, we have found that the paint industry is

dominated by decorative paints. Emulsion, which constitutes the majority share

of decorative paints, is the fastest growing segment of the paint industry.

Presently, the growth of the Indian paint industry is being witnessed from

new demand pockets, especially in Tier-II and Tier-III cities, thus, signaling the

growing acceptance of quality products among the masses. The growing


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popularity of quality paints and increasing income levels of people residing in

Tier-II and Tier-III cities have pushed the growth in premium paint market of

Indian decorative paint industry. The report further classifies decorative paint

market by product class which includes premium paints, mid-tier paints and

economy paints. It provides market forecast till 2014-15 of each of this segment.

As with other fields, some challenges also exists in this promising sector

that can affect the growth trajectory of the paint industry, if not handled

accordingly. For instance, the industry is highly raw material-intensive and any

fluctuation in the availability of raw material leads to substantial price

fluctuation in paint production costs. Thus comprehensive analysis of raw

material paint market is also included in the report mainly focusing on its major

segments such as pigments, solvents, binders and additives. Our team provides

the overall raw material paint market as well as its segments market forecast till

2014-15.

Further, the report provides extensive information on the emerging

market trends and drivers along with regulatory initiatives, which are

collectively uplifting the industry outlook of India. It also provides insights on

paint export and import market, along with a brief overview of the prominent

industry players to provide a balanced research outlook of the industry. The

research also foresees immense opportunities for various domestic and

international players in this segment. Overall, our report presents a

comprehensive and complete analysis of the Indian paint industry, which will

prove decisive for intending clients.

2.2 Conclusion

From the detailed review of literature the researcher has emphasized the

importance of consumers’ behaviour, attitude, preferences and satisfaction from

the marketers’ point of view. However, in the course of desk researcher it has

been realised that not much market research studies in the past have been

conducted in the area of paint market or consumers’ choice of paints or their


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preferences towards paints, similarly their attitude, perception or satisfaction

especially in Indian context,. Moreover, in past more case studies are focused on

Asian paints or Berger or other popular brand. The prevailing stature of lack of

marketing research pertaining paint industry is identified as the research gap.

Thus, this study aims to focus and analyse the consumer buying behaviour of

decorative paints both exterior and interior in both commercial and household

segments.


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References:

Consumer Buying Behaviour

1. Rowley J (1997), “Focusing on Customers”, Library Review, Vol. 46,

No. 2, pp. 81-89, MCB University, UK.

2. Hawkins, D. I., Best R. J. and Coney, K. A. (1998), Consumer Behavior:

Building Marketing Strategy, 7thEd., Mcgraw Hill, Boston.

3. Peter, J., and Olson, J. (1999), Consumer behavior and marketing

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