CHAPTER-I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

The topic of buyer’s behaviour has drawn substantial attention in recent

years, as a field of study and it is fair to say that much has been learned. It is a

dynamic field and many discoveries are still to be made. The study to buyer’s

behaviors poses important problems for both marketers and consumers. The

buyer’s behavior of consumer durables is largely influenced by a number of

factors such as advertisement, price, quality, performance, after-sales services and

the like. These, factors, play a vital role the decision –making process and the

factors determining the buyer’s behaviors of Televisions.

The study of consumer behaviour is gaining is importance day by day. With

the “open” economic policy there is a rise in people per capital real income. Their

standard of living in turn affects the need, attitude, lifestyle of the buyers. With the

abolition of license regime and quota restrictions and pursuance of global policy,

Indian market has been flooded with producers. The market has turned from a

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seller’s market to a buyer’s market, meaning the supply tends to out weigh the

demand success or failure of the modern business now depends on how effectively

the marketers and advertisers are able to attract the buyers. Relationship

marketing, direct marketing and emotional marketing are the steps taken with this

aim. To be able to attract the buyers one has to understand their behaviour, their

psychology and their needs. In other words, properly understanding the

“Consumer Behaviour” is the key to success for the modern Indian business.

Profits from customer relationships are the major aspect of all business. So

the basic objective of any business is profit maximization through customer

satisfaction. But it is always difficult to get customer satisfaction. A consumer

may state his needs and wants and yet may act otherwise. He may not be aware of

his deeper motivations and change his mind at any stage.

The importance of consumer behaviour in marketing has been beautifully

described in a journal titled Modern Management, ‘Calcutta January’ 99, in

following words: ” Consumer Behaviour is a rapidly growing field of research and

teaching which, in addition to considerable value of marketing managers and

others who are professionally concerned with buying activity”. An important

reason for studying consumer behaviour is evaluation of consumer groups with

unsatisfied needs and desires. The essence of modern marketing concept is that all

elements of business should be geared for the satisfaction of consumers.

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The challenge to the marketers is to determine the relative influence of the

various factors and to adapt and apply skillfully the so called information to a

proper marketing mix. In other words, the total marketing effort must be so

designed that the consumer perceives it’s various features as proving and answer

to his perceived problems and felt needs.

DEFINITION

Consumer behaviour is defined variedly. The dictionary of marketing and

advertising consumer behavior as” observable activities chosen to maximize

satisfaction through the attainment of economic goods and services such as

choice of retail outlet, preference for particular brands and so on’.

According to Ostrow & Smith’s Dictionary of Marketing, the term consumer

behavior refers to “the actions of consumers in the market place and underlying

motives for those actions. Marketers expect that by understanding what causes

consumers to buy particular goods and services they will be able to determine

which products are needed in the market place, which are obsolete, and how best

to present the goods to the consumer’.

According to Loudon and Delta Bitta, consumer behaviour is “the decision

process and physical activity individuals engage in when evaluating, acquiring,

using, or disposing of goods and services”.

For Schiffman and Kanuck, the term ‘consumer behaviour’ refers to “the

behaviour that consumers display in searching for, purchasing, using, evaluating

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and disposing of products and services that they expect will satisfy their needs”

and the study of Consumer

Behaviour is the study of how individuals make decisions to spend their

available resources- like time, money, effort-on consumption related items.

WHY STUDY CONSUMER BEHAVIOUR?

Consumers do not always acts are reacting as the theory would suggest.

Consumer preferences are changing and become highly diversified. Consumer

research has vividly pointed out that customers dislike using identical products

and prefer differentiated products. Meeting of Special needs of customer’s

requirement market segmentation. Repaid introduction of new products with

technological advancement has made the job of studying consumer behaviour

more imperative. Consumer behaviour can be used to self products that might not

sell easily.

CONSUMER BUYING PROCESS

This is an important process which has a vital role in consumer behaviour

study. This is the first essential step to understand consumer behaviour. The

objective of study of consumer buying process is to know how a consumer makes

his decision involves the selection of an option from two (or) more at action

choices.

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The buying process is the process of decision - making leading to a

purchase function. It represents a problem a – solving approach. The mechanism

is the same as in any processing activity in which we supply same input followed

by the processing activity and finally in output comes before us.

During the last two decades, numerous models of consumer behaviour

depicting the buying process have been developed. All these models treat the

consumer as a decision. – Maker who comes to the market place to solve his

consumption problems and to achieve the satisfaction of his needs.

STAGES OF BUYING PROCESS

The buying process is composed of a number of stages and is influenced by

one’s psychological frame work comprising the individual’s personality,

motivations, perception and attitudes.

For certain commodities, the buyer or consumer takes his buying decision

immediately with out much consideration. These are items of daily use. For

some other commodities, mainly luxury or durable items, the consumer thinks

much before talking a decision to purchase it. Sometimes, the consumer may also

consult other. Generally, the purchasing passes through five distinct stages in

taking a decision for purchasing a particular commodity. These stages are: a) need

INPUT PROCESS OUTPUT

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arousal b) information search c) evaluation behavior d) purchase decision and e)

post-purchase feelings.

NEED RECOGNITION

A buying process starts with need arousal a need can be activated through

internal or external stimuli. The basic needs of a common man arise to a particular

level and becomes a drive and he know from his previous experience how to

satisfy these needs like hunger, thirst, sex, etc., This is a case of internal stimulus.

A need can also be aroused by an external stimulus such as the sight of new

product in a shop while purchasing other usual products.

There us two –fold significance of need arousal stage to a marketer:

1. The marketer must identify the drive that might actually or potentially

connect to the product class or brand and make the buyer feel that the product

can satisfy his needs.

2. It also recognizes that the needs levels for the product fluctuate over time

and are triggered by different cues. The marketer can arrange cues to

conform better to the natural rhythms and timing of need arousal.

PRODUCT AWARENESS/ INFORMATION SEARCH

After need arousal, the consumer tries to solve it and gathers the sources and

information about the product. Depending upon the intensity of need, it produces

two states in an individual. The first state is called heightened attention when the

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consumer becomes more receptive to the information regarding the item be needs.

He becomes alert to information bearing on the need and its gratification. If a

consumer needs to purchase a television, he will pay mere attention to TV

advertisements. He keeps remembering the remarks made by friends and

associates about TVs.

If need is more intense, the individual enters a state of active information

search and he tries to collect more information about the product, its key attributes,

qualities of various brands and about the outlets where they are available. There

are four sources of consumer information.

Personal sources (family, friends, neighbours, etc).

Commercial Sources (advertisement, salesman, dealers).

Public Sources (mass media, consumer- rating organizations).

Experiential Sources (handing, examining, using the product)

The marketer will find it worth while to study the consumer’s information

sources whenever a) a substantial percentage of the target market engages in

search, and b) the target market shows some stable patterns of using the respective

information sources. Identifying the information sources and their respective roles

and importance calls for interviewing consumers about the sources of information.

The findings can later on be used to plan the firm’s advertisements.

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INTEREST

Interest may be viewed as a state of mind that exists when a consumer

perceives a need and / or is aware of alterative products capable of satisfying that

need. Consumer interest is indicated in the consumer’s willingness to seek further

information about a product. At this stage the consumer is actively involved in the

buying process and pays attention to the product. However, if he loses interest

during this involvement, his/ her attention will be diverted and the buying –

decision process will break down. In our example of the housewife requiring a

washing- machine, she may look for further information about these machines

once she becomes aware of such machines. The kind of information she may look

for is about the alternative washing machines available in the market- place, their

relative prices, operational efficiency, warranty and service facilities.

EVALUATION AND INTENTION

Once interest in a product (s) is aroused, a consumer enters the subsequent

stage of evaluation and intention. The evaluation stage represents the stage of

mental trial of the product. During this stage, the consumer assigns relative value-

weights to different products/ brands on the basis of accumulated stock or product

information and draws conclusions about their relative satisfaction giving potential

value. After this evaluation, the consumer develops the intention either to purchase

or reject the product/ brand. The final purchase will, however, depend on the

strength of the positive intention, after arousal of her interest in washing machines,

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she will compare the stock on information she has accumulated about the different

washing machines in the market and then evaluate the value of each one of them

before she develops the intention to buy. However, if she feels that a washer man/

women would serve the need then she may altogether reject the idea of buying any

washing machine. On the basis of the evaluation of behavior of consumers, the

marketer can improve or develop the product and segment the market on the basis

of product-attributes.

PURCHASE DECISION

There are three more important considerations for taking the buying decision

a) Attitude of others such as wife, relatives and friends. Interestingly, it

depends upon the intensity of their negative and the consumer’s motivation

to comply with the other person’s wishes

b) Anticipated situational factors as expected family income, expected total

cost of the product and the expected benefits of the product and the

expected benefits of the product and

c) Unanticipated situational factors, like accidents, illness etc.

PURCHASE

Purchase is a consumer commitment for a product. It is the terminal stage in

the buying decision process that completes a transaction. It occurs either as a trial

and/ or adoption. If a consumer is buying something for the first time then from

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the behaviour viewpoint, it may be regarded as a trial. This trial enables him to

accumulate experience about the product purchased. If this experience is positive

in terms of the satisfaction derived, then repeat purchases may occur, otherwise

not. For example, when a new brand of bathing soap is introduced in the market,

the consumer may buy it for the time as a trial. However, repeat purchases will

occur only when he is satisfied with its performance. But the possibility of a trial

purchase is not available in cases. In the case of consumer durables such as

scooters, refrigerators and the like, a trial is not possible, because once a product is

consumer decision to commit to a full or further use of the product. In our example

of the house wife, the washing machine is not open for a trial purchase; it will

have to be adopted only.

PARTICIPANTS IN THE BUYING PROCESS

There are the following five different roles that persons can play in a buying

decision which are as follows:

INITIATOR: the initiator is a person who first suggests or thinks of the

idea of buying the particular product.

INFLUENCER: the influencer is a person who explicitly or implicitly has

some influence on the final buying decision of others.

DECIDER: the decider is a person who ultimately determines any part or

whole of the buying decision, i.e., whether to buy, how to buy, when to buy

or where to buy.

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BUYER: the buyer is the person who actually purchases.

USER: the user is the person who actually uses or consumes the services or

products.

The marketer’s task is to study the buying process and the role of the main

participants in the buying process. He should initiate all of them to make

purchases of his product at different stages and through different strategies.

THE BUYING DECISION PROCESS

Marketers have to go beyond the various influences on buyers and develop

an understanding of how consumers actually make their buying decisions.

Marketers must identify who makes the buying decision, the type of the buying

decision that is involved and the steps in the buying process.

BUYING ROLES: For many products, it is fairly easy to identify the

buyer, On the other hand, other products involve a decision making unit consisting

of more than one person. Consider the selection of a family automobile. The

husband might choose the make. The wife may have definite desires regarding the

cars appearance. The husband might make the final decision within the wife

approving. The husband might make the final decision within the wife approving.

The wife might end up car more than the husband does.

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Thus, we can distinguish several roles people might play in a buying

decision.

INITIATOR – is a person who first suggests the idea of buying the

particular product or service.

INFLUENCER – is a person whose views or advice carries some weight in

making the final decision.

DECIDER- is person who ultimately determines any part of, or the entire

buying decision: whether to buy, how to buy or where to buy.

BUYER – is a person who makes the actual purchase.

USER –the person(s) who consume(s) or use(s) the product or service.

A company needs to identify these roles because they have implications for

designing the product, determining messages and allocating the promotional

budget. If the husband decides on the car make, then the auto company will direct

most of the features to please the wife and place some advertisements in media

reaching wives. Knowing the main participants and the roles they play, helps the

marketer fine – tune the marketing program.

RESEARCH THE BUYING DECISION PROCESS

Companies need to research the buying decision process involved in their

product category. Consumers can be asked when they first became acquainted

with the product category, what their brand beliefs are, how involved they are with

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product, how they make their brand choices, and how they rate their satisfaction

after purchase. Consumers, of course, will vary in the way they buy a given

product. Consumers can be segmented in terms of buying styles-for instance,

deliberate buyers versus impulsive buyers- and different marketing strategies can

be directed at each segment.

How can marketers learn about typical stages in the buying process for any

given product? They can introspect about their own probable behaviour, although

this is of limited usefulness (introspective method). They can interview a small

number of recent purchasers, asking them to recall the events leading to the

purchase of the product (retrospective method). They can find some consumers

who are contemplating buying the product and ask them to think out loud about

going through they buying process ( prospective method), or they can ask a group

of consumers to describe the ideal way to go about buying the product generated

report of the steps in the buying process

STEPS IN THE BUYING DECISION PROCESS

Based on examining many consumer reports of buying episodes, consumer

behaviour researchers have proposed “stage models” of the buying process. Stage

models are mostly relevant to complex decision-marking-i.e., buying expensive,

high involvement products.

- Problem recognition

- Information search

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- Evaluation of alternatives

- Purchase decision and

- Post-purchase behaviour

Thus model emphasizes that the buying process starts long before the actual

purchase and has consequences long after the purchase. It encourages the

marketer to focus on the buying process rather than on the purchase decision.

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This model implies that the consumers pass through all five stages in buying

a product. We saw that this is not the case, especially in low-involvement,

purchases. Consumers may skip or reverse some of these stages. Thus, a woman

buying her regular brand of toothpaste would go right from need for toothpaste to

purchase decision, skipping information search and evaluation.

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PROBLEM RECOGNITION

INFORMATIION SEARCH

EVALUATION OF ALTERNTIVES

POST-PURCHASE BEHAVIOUR

PURCHASE DECISION

PURCHASE DECISION

In the decision evaluation stage, the consumer forms preferences among the

brands in the choice set. The first factor is “attitude of others”. Purchase intention

is also influenced by unanticipated situational factors. The consumer forms a

purchase intention on the basis of such factors as expected family income,

expected benefits form the product.

A consumer’s decision to modify, postpone or avoid a purchase decision is

heavily influenced by perceived risk. A consumer develops certain routines for

reducing risk, such as decision avoidance, information gathering from friends and

preference for national brand names and warranties.

A consume, who decides to execute a purchase intention, will be making up

to five purchase decisions:

Brand decision

Vendor decision

Quantify decision

Timing decision

Payment-method decision

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1.2 STATEMENT OF THE PROBLEM

Now-a-days Television becomes a basic need rather than a luxury one. There

is a rapid growth in Television industries. More number of companies is offering

Television in different models and with superior Technology. A Number of brands

of Television are available in the market with product differentiation with different

product features. Therefore, consumer has a wide choice of television brands.

Hence, an attempt is made to find out, what are the brands that are must preferred

in Television in Tiruchengode town.

1.3 OBJECTIVES OF THE STUDY

This study is taken up with the general objectives of identifying the buyer’s

behaviours of Television with the following objectives.

1. To study the behavior in general.

2. To identify the factors influencing the choice of LG (LCD) brands.

3. To measure the satisfaction of Television owners and the factors

determining satisfaction.

4. To gather the suggestion for better marketing strategy towards

Television industry.

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1.4 SCOPE OF THE STUDY

Buyer’s behaviour’s is one of the major roles of marketing activities.

Understanding and measuring buyer behaviors is one of the important complexes

and at the same time is unavailable part of the marketing research.

This study help to know the buyers behaviour in the market place which

consist of various aspects such as motivational factors, brand preference, choice

of the brand consumer satisfaction and post purchase activities of the buyers.

Buyer’s behaviors towards Television users in Tiruchengode town consist of very

useful study to both buyer’s and marketers. Research methodology

1.5 LIMITATIONS OF THE STUDY

The study is subjected to the following limitations:

The study is confined to Tiruchengode town only.

Information collected from the consumers is considered for analysis.

As the consumers are biased to their Televisions, we cannot say that

their expectations are fully reliable.

Since the time was limited, convenient sampling Technique has

been adopted to select the respondents.

The study is based upon the prevailing consumer’s behavior. The

consumer behavior may change according to time, Fashion,

Technology development, etc.,

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1.6 CHAPTER SCHEME:

The FIRST CHAPTER deals with a brief introduction and design of the

study, which consist of project work objectives, problems and limitations in the

study.

SECOND CHAPTER consists of research methodology.

THIRD CHAPTER consists of profile of the study.

FOURTH CHAPTER highlights the analysis and interpretation

FIFTH CHAPTER deals with findings suggestions and conclusions for

better marketing strategies for televisions industries

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CHAPTER - II

REVIEW OF LITERATURE AND RESEARCH METHODOLOGY

REVIEW OF LITERATURE

The review of literature helps to have a first hand knowledge about the

parallel work done by others. It helps the researches to decide the topic, objectives

and methodology and to have a comprehensive understanding of the present study

Web Star, ferdrick.F10 buyer behavior is all psychological, social and

physical behavior of potential consumers as they become aware of evaluate,

purchase, consumer can tell other people about the products and services”.

Web brook and Reilly (1983)11have defined it defined it as “ an emotion

response to the experiences provided by associated with particular products or

services purchased, retail outlets, or even motor patterns of behavior such as

shopping and buyer behavior, as well as the over all market place”.

Zeithaml and berry (1985 and 1988)12 delivered sequel which provides

the basis for the measurement of consumer satisfaction with a service by using by

using the gap between consumer expect ion of performance and their perceived

experience of performance.

Peters and waterman13 point out that the for most successful us firms over

the 25 years of their study shared a dedicated to marketing as the key strategic

discipline in their firm. All these firms were dedicated to the most important of

marketing proposition, that the key to success lies in keeping close to the

consumer.

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IBM’s marketing vice president, Francis (buck) Rodgers14 says ‘It’s a

shame that, in so many companies, whenever you get good service its an

exception. Not so at the excellent companies. Everyone gets into the act. Many of

the innovation companies got their best ideas from consumers. That comes from

listening intently and regularly.

This ‘beneficial’ view of marketing is not held universally. Vance Packard

claims that the people of the United States are in a sense becoming a nation on a

tiger. They must learn to consume more and more, or they are warned, their

magnificent economic machine may turn and devour them.

Drucker15 says that marketing is so basic that it cannot be considered a

separate function. It is the view of business seen from the point of view of its final

result, from the consumer’s point of view.

Prof. Jevons16 writes means any body of persons who are in intimate

business relations and carry on extensive transaction in any commodity.

Prof.H.E.Mitchell17 writes “in fact the market must be thought of not as a

geographic place but as any getting together of buyers and sellers in person, by

mail, telephone, telegraph or any other means of communication”.

Clark and Clark18 defines marketing consist of those efforts which effect

transfer in ownership of goods and come for their physical distribution.

Duddy19 defines marketing is the economic process of which goods and

services are exchanged and their values determined in terms of money prices.

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Harry Z.Hansen20 defines that “The Marketing is the process of

discovering and translating consumers wants into product and service specification

and then in turn helping to make it possible for more and more consumers to enjoy

more and more of these products and services”.

Buyer behavior is defined as “all psychological, social and physical

behavior of potential consumers as they become aware of, evaluate, purchase,

consumer and till others about products & services”.

P.kotler21 defines marketing as “the set of human activities directed at

facilitating and consummating exchanges. The essence of marketing is exchange

of products and the transaction is to satisfy human needs and wants. all business

activities helping and promoting the exchange function are included in marketing.

Kotler 22points out that the achieving organizational goods consist of being

more effective than competitors toward determining and satisfying the need &

wants of target market.

Stanton 23further elaborate that the marketing concept is embedded in that,

all planning and operations should be consumer- oriented, all marketing activities

in an organization should be coordinated & consumer-oriented, co-coordinated

marketing is essential to achieve the organization’s performance.

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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem.

This part consists of sum of the important area such as the following;

DATA COLLECTION

Using primary source may collect the research data. In this study the

researcher has collected the primary data.

PRIMARY DATA

Primary data were gathered by the researcher with help of questionnaire

through direct interview and by the post mail.

QUESTIONNAIRE DESIGN

Questionnaire is prepared in such a way that it covers the object of the study.

Questionnaire design is structured undersigned one. It contains open-ended close

ended and dichotomous questions.

TOOLS USED FOR THE STUDY

For the purpose of present study simple statistical tools like percentage

analysis and Chi-square analysis.

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SAMPLING PROCEDURE

The study is mainly based on primary data for the purpose of study and 100

respondents have been chosen at random. Tiruchengode town has been selected

purposively for the study, since it is a taluk, head quarter consisting of

heterogeneous house holds. The sampling is designed in such a way as to include

owners of all types of Televisions. For the purpose of collection data, a

questionnaire was prepared and administered personally to Television owners. The

in formation collected have been edited for reliability and consistency and

presented in a master table. For analysis of data, statistical tools like percentages

and averages have been employed. To identify the choice of brands for each

feature simple ranking method is applied.

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CHAPTER - III

PROFILE OF THE PRODUCT AND THE PLACE

LCD TV

Liquid-crystal display televisions (LCD TV) are television sets that use

LCD display technology to produce images. LCD televisions are thinner and

lighter than cathode ray tube (CRTs) of similar display size, and are available in

much larger sizes. When manufacturing costs fell, this combination of features

made LCDs practical for television receivers.

In 2007, LCD televisions surpassed sales of CRT-based televisions

worldwide for the first time,[citation needed] and their sales figures relative to other

technologies are accelerating. LCD TVs are quickly displacing the only major

competitors in the large-screen market, the plasma display panel and rear-

projection television. LCDs are, by far, the most widely produced and sold

television display type.

LCDs also have a variety of disadvantages. Other technologies address

these weaknesses, including organic light-emitting diodes (OLED), FED and SED,

but as of 2011 none of these have entered widespread production

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Basic LCD concepts

LCD television at home together with PlayStation 3 and some other

equipment

LCD televisions produce a black and colored image by selectively filtering

a white light. The light is typically provided by a series of cold cathode fluorescent

lamps (CCFLs) at the back of the screen, although some displays use white or

colored LEDs instead. Millions of individual LCD shutters, arranged in a grid,

open and close to allow a metered amount of the white light through. Each shutter

is paired with a colored filter to remove all but the red, green or blue (RGB)

portion of the light from the original white source. Each shutter–filter pair forms a

single sub-pixel. The sub-pixels are so small that when the display is viewed from

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even a short distance, the individual colors blend together to produce a single spot

of color, a pixel. The shade of color is controlled by changing the relative intensity

of the light passing through the sub-pixels.

Liquid crystals encompass a wide range of (typically) rod-shaped polymers

that naturally form into thin layers, as opposed to the more random alignment of a

normal liquid. Some of these, the nematic liquid crystals, also show an alignment

effect between the layers. The particular direction of the alignment of a nematic

liquid crystal can be set by placing it in contact with an alignment layer or

director, which is essentially a material with microscopic grooves in it. When

placed on a director, the layer in contact will align itself with the grooves, and the

layers above will subsequently align themselves with the layers below, the bulk

material taking on the director's alignment. In the case of an LCD, this effect is

utilized by using two directors arranged at right angles and placed close together

with the liquid crystal between them. This forces the layers to align themselves in

two directions, creating a twisted structure with each layer aligned at a slightly

different angle to the ones on either side.

LCD shutters consist of a stack of three primary elements. On the bottom

and top of the shutter are polarizer plates set at right angles. Normally light cannot

travel through a pair of polarizers arranged in this fashion, and the display would

be black. The polarizers also carry the directors to create the twisted structure

aligned with the polarizers on either side. As the light flows out of the rear

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polarizer, it will naturally follow the liquid crystal's twist, exiting the front of the

liquid crystal having been rotated through the correct angle, that allows it to pass

through the front polarizer. LCDs are normally transparent.

To turn a shutter off, a voltage is applied across it from front to back. the

rod-shaped molecules align themselves with the electric field instead of the

directors, destroying the twisted structure. The light no longer changes

polarization as it flows through the liquid crystal, and can no longer pass through

the front polarizer. By controlling the voltage applied across the crystal, the

amount of remaining twist can be selected. This allows the transparency of the

shutter to be controlled. To improve switching time, the cells are placed under

pressure, which increases the force to re-align themselves with the directors when

the field is turned off.

HISTORY OF THE COMPANY PROFILE:

Established in 1958, LG electronics, inc. (LG) is a global leader and

technology innovator in consumer electronics, home appliances and mobile

communication, employing more than 82,000 people working in over 110

operations including 81 subsidiaries around the world. With 2007 global sales of

USD 44 billion, LG is comprised of four business writs – mobile communications,

Digital Appliance, Digital Display and Digital Media. LG is the world’s leading

producer of CDMA/GSM handsets, air conditioners, and front – loading washing

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machines, optical storage products, DVD players, flat panel TVs and home theater

systems.

LG’s efforts continue to enhance the global presence of the LG brand and to

maximize profitable growth. In particular, LG electronics will focus on achieving

profitable and sustainable growth in the mobile communications and digital

display sectors to strengthen its leadership in the IT industry, while at the same

time increasing its market share in the home appliance and digital media sectors.

Before Audit, as of 2007, unconsolidated

2008: 1 USD=885 KRW; 2007: 1 USD= 929 KRW

The brand LG Electronics was launched in Australia in 1997, an innovative

product range, supported by extensive marketing campaigns has led to strong sales

growth.

LG electronics private limited has its Head office in New South Wales and

branch offices and ware houses in Victoria, Queensland, South Australia. Western

Australia and Townsville. In line with its global philosophy. LG electronics

Australia sets new bench marks in digital and marking innovation.

A plat form of marketing success in Australia has been the slogan ‘LG, Life

Good’. The slogan has cemented the company in the hearts and minds of

Australian consumers and successfully communicates LG’s underlying goal and

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vision – to create products that enrich lives enabling them to have more personal

time.

LG electronics comprises of six separate companies. Digital appliances,

Digital display and multimedia, Mobile handset, Information and communications,

and digital network and display device.

LG Electronics

LG Electronics is the largest player in the consumer electronics market in

India, which is worth Rs 35,000 crore per annum. And now it feels the need to

take the brand to the next level. From an aggressive price warrior and technology

provider, the brand will henceforth be communicated as a youthful enabler of life

enrichment,  and of value-added products.

For almost 10 years after it came to the country in 1997, LG had focused on

the mass market. Initially LG’s objective was to create a footprint among the

sizeable middle class, and other than its aggressive pricing, there was little to

distinguish it from other consumer durable companies operating in India. Its

product range choices also reflected the portfolio of its then rivals such as

Whirlpool, Videocon, and Onida.

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Changing profile of Indian consumer durables market

The Indian consumer durables market of today is very different, redefined

primarily by the nimble Korean duo of LG and Samsung. Prior to their entry the

consumer durables market in India was largely characterized by restricted product

choice, very poor after-sales service, and distribution through limited multi-brand

outlets. By the time the new millennium came around, LG and Samsung had

started making their presence felt. Their priority was to establish an exclusive

chain of company-owned and franchised outlets where consumer connect could be

much more meaningful than in many of the poorly staffed multi-brand outlets that

existed then. The other area which they felt required urgent attention was a service

network which would not only ensure customer satisfaction, convenience, good

word-of-mouth, and a favourable disposition towards repeat purchase, but could

also become an additional source of revenue for the company. Finally, unlike

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Onida, Whirlpool, and Videocon which then had presence in limited product lines,

the Korean companies expanded their product range to cover both home

appliances such as washing machines, refrigerators, and microwave ovens as well

as entertainment electronics such as music systems, VCD/DVD players and

television sets. They wanted to dominate the entire chain of consumer durables for

a household.

Though LG and Samsung were initially perceived as similar in their

strategic approach, the latter was much more interested in developing a higher-end

product range targeted at the more affluent consumer. Samsung’s vision in this

respect reflected a shrewd understanding of the changing profile of the growing

prosperity in the Indian consumer market. In fact, LG realized that a  sizeable

chunk of consumers over the years had moved up the value chain — a space well

captured by rival brands like Samsung and Sony, which are also aggressively

competing for market share. This shows up in the fact that LG is trailing Samsung

in the LCD television market.

31

LG JAZZ SERIES LCD TV

LG HDTV series LCD TV – The new LG HDTV that will enrich your lifestyle

with its exquisite design and vibrant natural colors.

LG 19LD340 19-inch LCD TV Price – Rs.10,500

LG 22LD310 22-inch LCD Price – Rs.12,500

LG 22LD340 22-inch LCD Price – Rs.13,500

LG 26LD310 26-inch LCD Price – Rs.20,500

LG 26LD340 26-inch LCD Price – Rs.20,500

LG 32LD310 32-inch LCD Price – Rs.23,500

LG 32LD340 32-inch LCD TV Price – Rs.31,990

32

LG Jazz Atom series LCD TV – Add a new ‘musical note’ to your celebrations

with LG’s Jazz Atom- available in 2 exciting colour options & equipped with

300W PMPO sound output,USB 2.0 connectivity, DivX compatibility & PC

connectivity,these small wonders are an ode to sound lovers !

LG 22LU10UR 22-inch LCD Price – Rs.14,500

LG 22LU11UR 22-inch LCD Price – Rs.15,000

LG 26LU11UR 26-inch LCD Price – Rs.23,500

LG 26LU10UR 26-inch LCD Price – Rs.23,990

LG Full HD LCD TV series

LG 42LG80FR 42-inch LCD Price – Rs.60,000

LG Jazz LCD TV is powerpacked with Full HD 1080p, 500W PMPO and

Auto Sliding Speakers.

LG 32LD550 32-inch LCD TV Price – Rs.38,990

o Full HD LCD with Wireless Connectivity

33

PROFILE OF THE STUDY AREA

Namakkal district in Tamil Nadu, IndiaNamakkal Distric is an

administrative district in the state of Tamil Nadu, India. The district was bifurcated

from Salem District with Namakkal town as Head Quarters on 25-07-1996 and

started to function independently from 01-01-1997. The district has 4 taluks

(subdivisions); Tiruchengode, Namakkal, Rasipuram and Velur (in descending

order of population) and has two Revenue Divisions; Namakkal and

Tiruchengode. It was ranked second in a comprehensive Economic Environment

index ranking of districts in Tamil Nadu not including Chennai prepared by

Institute for Financial Management and Research in August 2009.

History

After the struggle between the Cheras, Cholas and Pandyas, the Hoysalas

rose to power and had the control till the 14th century followed by Vijayanagara

Empire till 1565 AD. Then the Madurai Nayakas came to power in 1623 AD. Two

of the Poligans of Tirumalai Nayak namely, Ramachandra Nayaka and Gatti

34

Mudaliars ruled the Salem area. The Namakkal fort is reported to have been built

by Ramchandra Nayaka. After about 1635 AD, the area came successively under

the rule of Muslim Sultans of Bijapur and Golkonda, Mysore kings and then the

Marattas, when about the year 1750 AD Hyder Ali came to power. During this

period, it was a history of power struggle between Hyder Ali and later Tippu

Sultan, with the British.[2]

Geography

Namakkal district is bounded by Salem district on the north; on the east by

Attur taluk of Salem district, Perambalur and Tiruchirapalli District's; by Karur

district on the south and on the west by Erode district.[3]

View of Kolli Hills valley.

Namakkal District comes under the North Western Agro climatic zone of

Tamil Nadu. It is situated in the dividing portion of two watersheds between

Cauvery and the Vellar System with the Taluks of Attur, Rasipuram and

Namakkal on the East and Salem, Omalur and Mettur on the West. Tiruchengode

taluk alone is placed under Western Agro-climatic zone.

35

Besides the above two zones, Kolli and a few isolated hills and ridges are

scattered over Namakkal, Rasipuram and Tiruchengode and along with the valleys

and rolling hills, make up the characteristic topography of the district.

Demography

The district has a population of 1,493,462 as of 2001. It is 36.51%

urbanised as per Census 2001.[4] The literacy level of Namakkal district according

to figures available for the year 1996 is 48.97% with male literacy level being

more than the female literacy level. It is also observed while the male literacy level

has grown steadily from 51.85% in 1981 to 57.61% in 1996, there has been a

significant increase of female literacy level from 27.51% in 1981 to 39.89% in

1996.

Industry

The main occupation in the district is agriculture. The cultivation generally

depends on monsoon rains, wells and tanks. Nearly 90 percent of the cultivated

area is under food crops. The principal cereal crops of this district are paddy,

cholam, cumbu and ragi. Panivaragu, Kuthianally, Samai Varagu and Thinai are

some of the millets cultivated. Among pulses, the major crops are redgram,

blackgram, greengram and horsegram. Among oil seeds groundnut, castor and

gingelly (sesame) occupy important places. Of the commercial crops, sugarcane,

cotton and tapioca are some of the important crops. Tapioca is used for the

manufacture of sago.

36

Namakkal district is noted for Truck and Lorry external body building

which dates back to 1956. Throughout India Tiruchengode is known for its Body

Building industry for Trucks, Trailers, Tankers and Rig Unit. Finished trucks and

Rig Units are even exported to foreign countries from Namakkal. Nearly 25000

people are employmed either directly and indirectly in truck body building activity

and about 300 units in Namakkal and 100 Units in Tiruchengode are engaged in

this activity.

Poultry development has been rather phenomenal in the district of

Namakkal. The district is also well known for its poultry and dairy industries,

accounting for a bulk of supply of poultry products to neighbouring industries. In

fact, Namakkal produces about 65% of the egg output of Tamil Nadu.

Tourism

Namakkal Rock Fort

The Rock Fort is on the summit of the rock, and the remnants in brick and

stone still bear the brunt of the skirmishes to lay seize to the fort by the Cholas in

the 9th Century.[2] There are two rock–cut cave temples located on both sides of

the hill dedicated to Narasimhaswamy and Ranganathasamy. There is also an 18

feet tall Hanuman statue carved out of a single stone at the Hanuman Temple.[7]

Tiruchengode

Tiruchengode is 35 km from Namakkal. It is one of the seven Sivasthalams

in Kongunadu. The Arthanareeswarar Temple is located on a hill. The presiding

deity is depicted as half-male and half-female, vertically to represent Shiva and

37

Parvati worshipped as one form. It is considered one of the oldest temples in this

region.

Tiruchegode is the olden Poondurainadu in Kongunadu. Tiruchengode

olden name is Thirukodimadachengondurur.

Borewells and Textile are the main business in Tiruchengode. Lorry body

building is famous in this place.

Kolli Hills

Kolli Hills are situated on Eastern Ghats at an altitude of 1200 mts in the

Namakkal District and are 45 km from Namakkal town. The Kolli Hills are known

for medicinal herbs and plants that grow in abundance on the hill slopes. The

Arapaleswarar Temple, the Horticulture Farm, the Herbal Farm, Agaya Gangai

waterfalls, Boat house, Peryaswamy Temple, View Point and the Telescope House

are the places to visit for the interested tourist. The Valvil Ori festival is organised

here every year during the month of August.[7]

Transport

Transport is the major field of work in Namakkal; a lot of lorry (truck)

body building shops are located in Namakkal. Egg production in this district is

large, so transport facilities are good. It is the main centre for linking other

districts via bus routes especially to the North side (Salem, Villupuram,

Dharmapuri, Krishnagiri, Bangalore), East side (Tiruchirapalli, Thanjavur), South

side (Karur, Dindugal, Madurai, Tiunelveli, Kanyakumari) and the West side

(Erode, Coimbatore, Tirupur, Udhagamandalam (Ooty)).

38

CHAPTER –IV

DATA ANALYSIS AND INTERPRETATION

INTERPRETATION:

In the present day, modern world, needs and wants of the consumers are

increasing rapidly. To satisfy their growing needs and requirement, the company

continues to produce different types of product, the user of this product is different

from age, sex, income, sources of information, price, brand loyalty, preference for

colour, model etc.

Hence, an attempt is made to satisfy the profile of consumer. The following

sections of this chapter deal with the analysis and interpretation.

39

TABLE NO: 4.1

GENDER OF RESPONDENTS

Gender No. of respondents Percentage

Male 36 36%

Female 64 64%

Total 100 100%

Source: Primary Data

INTERPRETATION:

Table 4.1 reveals that out of 100 respondents, 64% were females and 36 %

were males. Hence majority of the respondents belongs to female categories.

40

CHART NO: 4.1

GENDER OF RESPONDENTS

41

TABLE NO: 4.2

AGE WISE CLASSIFICATION OF RESPONDENTS

Age groups No. of respondents Percentage

Up to 20 years 26 26%

21-35 years 34 34%

35-50 years 37 27%

Above 50 years 13 13%

Total 100 100%

Source: Primary Data

INTERPRETATION:

Table 4.2 reveals the age wise classification of the respondents majority 44

% of the respondents belongs to the category of 21-35 years group, 38%of the

respondents belongs to the category of up to 20 years, 12 % of the respondents

belongs to the category of 35-50 years age group and only 6% of the respondents

belongs to the category of above 50 years.

42

CHART NO: 4.2

AGE WISE CLASSIFICATION OF RESPONDENTS

43

TABLE NO: 4.3

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

Educational qualification No. of respondents Percentage

School 20 20%

Under graduate 30 30%

Post graduate 42 42%

Others 8 8%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.3 shows that out of 100 respondents, 42 respondents belongs to post

graduate category, 30 respondents belongs to under graduate and 20 respondents

belongs to the school category and 8 respondents belongs to the others category.

44

CHART NO:4.3

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

45

TABLE NO: 4.4

OCCUPATION WISE CLASSIFICATION OF

RESPONDENTS

Occupation No. of respondents Percentage

Student 48 48%

Business man 16 16%

Professional 26 26%

Others 10 10

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.4 shows that out of 100 respondents, the highest percentage of 48%

of the respondents belongs to student category followed by professional category

26%, 16% of the respondents from professional category and 10% of the

respondents from other occupation. Hence more students are watching television.

46

CHART NO: 4.4

OCCUPATION WISE CLASSIFICATION OF

RESPONDENTS

47

TABLE NO: 4.5

INCOME WISE CLASSIFICATION OF RESPONDENTS

Monthly income (in Rs.) No. of respondents Percentage

Below Rs. 10,000 52 52%

Rs.10,001 to Rs.15,000 30 30%

Rs.15,001 to Rs.20,000 10 10%

Above Rs.20,001 8 8%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.5 indicates that 52% of the respondents income falls below

Rs.10,000, 30% of the respondents income from Rs.10,001 to Rs.15,000 and 10%

earns the monthly income of Rs 15,001 - 20,000. Only 8% falls under above

Rs.20,001 income group.

48

CHART NO: 4.5

INCOME WISE CLASSIFICATION OF RESPONDENTS

49

TABLE NO: 4.6

FAMILY SIZE WISE CLASSIFICATION

Size of family No. of respondents Percentage

Up to 2 members 16 16%

3 to 4 members 50 50%

5 to 6 members 32 32%

Above 7 members 2 2%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.6 reveals that the highest number of respondents 50% belonged to 3-

4 members in the family, 32% of the respondents belonged to the 5- 6 members in

the family, 16% respondents belonged up to 2 number and 2% of the respondents

belongs to the above 7 category.

50

CHART NO: 4.6

FAMILY SIZE WISE CLASSIFICATION

51

TABLE NO: 4.7

MEDIA MOTIVATED TO PURCHASE

Media No. of respondents Percentage

Family 56 56%

Friends 26 26%

Advertisement 14 14%

Others 4 4%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.7 shows that the most of the respondents 56% of the respondents got

to know this product awareness through family members, 26 % of the respondents

came to know this product by friends, 14% of the respondents came to know this

product by advertisement , 4 % of the respondent by others respectively.

52

CHART NO: 4.7

MEDIA MOTIVATED TO PURCHASE

53

TABLE NO: 4.8

NO. OF YEARS THE RESPONDENTS USING LCD

Period of using LCD No. of respondents Percentage

Below 3 years 42 42%

3 -4 years 34 34%

4- 5 years 20 20%

Above 5 years 4 4%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.8 shows that out of 100 respondents, 42% of respondents are using

the LCD for below 3 years , 34% of the respondents are using the LCD for 3 -4

years, 20% of the respondents are using the LCD for 4 - 5 years. 4 % percent of

the respondents are using the LCD for Above 5 years.

Hence, majority 42% of respondents are using the LCD for below 3 years.

54

CHART NO: 4.8

NO. OF YEARS THE RESPONDENTS USING LCD

55

56

57

TABLE NO: 4.10

MAIN COMPETITORS FOR LG

Brand name No. of respondents Percentage

Sony 32 34%

Samsung 28 28%

Videocon 22 22%

Onida 18 18%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.10 reveals that out of 100 respondents Sony is held by majority of

32% of the respondents, Samsung is held by 28% respectively of respondents,

Videocon is held by 22% of respondents, Onida is held by 18 percent of

respondents.

58

CHART NO: 4.10

MAIN COMPETITORS FOR LG

59

TABLE NO: 4.11

PRICE STRUCTURE

Price (in Rs.) No. of respondents Percentage

High 30 30%

Reasonable 44 44%

Low 8 8%

Moderate 18 18%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.11 shows the price of television, which the respondents owned. In

this 44% of respondents feels the price reasonable, 30% of the respondents feels

the price as high, 18% of the respondents feels moderate and 8% percent of the

respondents feels as low. Hence more number of respondents makes purchases

depending upon its reasonable price.

60

CHART NO: 4.11

PRICE STRUCTURE

61

TABLE NO: 4.12

SIZE WISE CLASSIFICATION

Size No. of respondents Percentage

14 inches 10 10%

21 inches 66 66%

29 inches 14 14%

38 inches 10 10%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.12 shows that out of 100 respondents, 66 % of the respondents prefer

21 inches of LCD, 14% of the respondents prefer 29 inches, 10% of respondents

prefer 38 inches.

62

CHART NO: 4.12

SIZE WISE CLASSIFICATION

63

TABLE NO: 4.13

OPINION ON WARRANTY AND GAURANTEE FACILITIES

Feel about the offers No. of respondents Percentage

Excellent 42 42%

Good 28 28%

Better 23 23%

Poor 7 7%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.12 reveals that out of 100 respondents. Majority of 42% of the

respondents feels Excellent with the warranty provided by the LG. 28% of the

respondents said that facilities provided by the LG is Good , 23% of the

respondents said that facilities provided by the LG is Better, 7% of the respondents

said that facilities provided by the LG is poor.

Hence, Majority 42% of the respondents are feeling Excellent with the

warranty provided by the LG.

64

CHART NO: 4.13

OPINION ON WARRANTY AND GAURANTEE FACILITIES

65

TABLE NO: 4.14

SATISFIED LEVEL OF RESPONDENTS

Solution No. of respondents Percentage

Yes 68 68%

No 32 32%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.14 shows that out of 100 respondents, 68% are satisfied, and 32%

are not satisfied.

Hence majority of the respondents are satisfied with the special features of

LG LCD..

66

CHART NO: 4.14

SATISFIED LEVEL OF RESPONDENTS

67

TABLE NO: 4.15

LEVEL OF SATISFICATION WITH SERVICE

Source No. of respondents Percentage

Yes 66 66%

No 34 34%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.15 reveals that 66% of respondents are satisfied with service after

sales and 34% of respondents are not satisfied.

Hence the majority of the respondents are satisfied with the service after

sales.

68

CHART NO: 4.15

LEVEL OF SATISFICATION WITH SERVICE

69

TABLE NO: 4.16

MODE OF PURCHASE

Mode of Purchase No. of respondents Percentage

Installment 10 10%

Cash system 90 90%

Total 100 100%

Source: primary data

INTERPRETATION:

Table 4.16 indicates that out of 100 respondents, 90% of the respondents

purchased through payment, while 10% of the respondents purchasing through

installment bases.

70

CHART NO: 4.16

MODE OF PURCHASE

71

CHAPTER- V

FINDINGS, SUGGESTIONS AND CONCLUSTION

INTRODUCTION:

Brands occupy a particular niche in consumer mind. Powerful brands

influence consumer so much that it becomes difficult for them to shift their

preference to other product. Television is one of the powerful brands in home

appliances industry. This brand enjoys high bran equity. In the present study,

factors influencing consumer satisfaction on television.

FINDINGS

The major findings of the study are listed below:

1. The table reveals that 44% people are aged between 21 to 30 years.

2. The table shows that most of the respondents are females.

3. Out of the consumers of televisions, three fourths were graduates of which

under graduates and post graduates were in similar proportion.

4. The size of families having 3 to 4 members is mostly watching the

television.

5. Low income group of the respondents most watching the television other

than middle income and higher income group people.

72

6. Majority 52% of the students are watching the television when comparing

businessmen, professional and others.

7. According to the study 60% of the respondents feels the price of

television as reasonable.

8. The opinion of 28% of respondents on the models of TV was found to be

good.

9. 14% of the respondents were motivated to purchase television by

advertisement.

10. 70% of the respondents are purchasing the television under cash system

only.

11. The majority of respondents were aware of models in LG. other than

Onida, Sony, Samsung, Philips, and Videocon.

12.The study shows that 66% of the respondents are preferring 21” inches of

LCD TV.

13. 60% of the respondents are satisfied with exchange offer provided by LG.

other than Sony, Onida, Samsung, Philips, and Videocon.

73

CONCLUSION

Consumer prefer only branded product in the market because brand create

image of the product as well as the company in the mind of the customers.

Television is a product for all even man live with food and shelter but they cannot

live with out television. It is true that the people spent more time in watching the

television. Hence the customers concentrate more to select a brand of televisions at

time of purchasing.

LG is a brand prefered by the majority of the customers due to design,

durability and clarity in sound. Hence this study concludes that LG is one among

the best brand for the television products.

74

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