Introduction - Conclusion c618

1

CHAPTER - I 1.1. INTRODUCTION In today’s world of hyper competition and globalization, every company is trying to survive and to perform their best in the existing condition to attain the desired level of their potential customers. In this global economy the change is created by liberalization in our country. India is now playing a major role. The big MNC’s have all entered in our market with their wide range of superior quality products between our and their products at large. Today Indian market is growing in world and many company exist

with superiors product line especially in electronic

home

appliances. So it is very important to pay attention towards products and king i.e., customers. In present scenario customers are more aware about and sound enough to take the most rational decision only to achieve satisfaction. Now a day’s both men and women are going for employment not only to meet their financial demand but also to live with comfort. As a result, the needs and wants of the people have increased. Consumer behavior is helpful in understanding the purchase behavior and performance of different consumers. Generally consumers differ in term of sex, age, education, occupation, income family setup, nationality and social

2

status. According to these different background factors consumers may have different needs. The consumer market consists of all the household and individual who buy goods and services for their personal use. Consumers differ tremendously in income, educational level, taste and age. So it is necessary for the marketer to develop the products or services designed to suit their needs. Home appliances are that without which a modern home is considered incomplete, especially in urban areas. In metro cities and big towns, appliances are regarded as a boon, as they are instrumental in cutting down the time involved in most of the domestic chores. The Indian consumer household appliances industry has an annual turnover of approximately Rs.190 billion. So the

researcher undertaken the project entitled, “A study on

consumer buying behavior towards home appliances in Pondicherry city”, to identify

why consumers make the purchases of home appliances, what

factors influence consumer purchases and their level of involvement in purchase decision.

3

1.2. STATEMENT OF THE PROBLEM

In olden days, marketers had close and direct contract with the consumer which enabled them to understand consumers. But the growth in the size of firms and markets has made it impossible on the part of the marketers to have such a close contract. This necessitated the present marketing managers to conduct consumer research to have an idea about the behavior of consumers. Though consumer perception of price, quality value are considered to be the determinants of shopping behavior and product choice, the use of price

as

an

indicator

of

quality has not been explored. Consumer

appears to depend more on price than on quality on some product categories than others Generally consumer behavior is affected by a variety of factors ranging from

personal

motivation

needs,

attitudes

and

values,

personality

characteristics, socioeconomic and cultural background, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as whole. . The researcher wants to know the answer to the factors that determine the purchase behavior of regarding electronic home appliances.

the

consumers

4

1.3. OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

To study the buying behavior of the consumer towards electronic home appliances in Pondicherry city. SECONDARY OBJECTIVE:

 To find out factors that influence buying decision.  To find out sources of information used by customers before making decision of specific brand of electronic home appliance.  To know about features for which the potential customers looks for when they buy branded home appliance.  To find out sources of information used by customers before making decision of specific brand of home appliance.  To find out whether consumer make any preplan and save money for the purpose of purchasing electronic home appliances.

5

1.4. SCOPE OF THE STUDY SCOPE OF COVERAGE:

The study considers consumers of middle and upper middle class families in Pondicherry with an income level range between 10,000 – 30,000. It excludes from its purview the purchase made as gift articles. The present study includes washing machine, air conditioner, refrigerator, micro oven, mixi and grinder alone i.e. it excludes other electronic home appliances. The interaction was made with the head of the family, both male and female. Further the study has herein certified to the purchase made during the year 2010. NEED OF THE STUDY:

 The study has been designed to give a better understanding of how consumers make their purchase for electronic home appliances.  This study helps to know about customer’s expectation and opinion regarding electronic home appliances.  This Study helped to know the different services provided by electronic home appliance companies.  This study provides better suggestions to the companies regarding attitude, taste and preferences of the consumer towards electronic home appliances.  This study is helpful for the company in formulating product planning marketing strategies, market segmentation and advertising strategies etc

6

1.5. LIMITATIONS OF THE STUDY

 The study is limited to Pondicherry city alone i.e. the findings of the study will not applicable to other cities.  The study is limited to 100 respondents. It comprises of 50 male and 50 female respondents.  Due to changing behavior of the consumer the study is subjected to personal bias.

1.6. THEORITICAL PERSPECTIVE

7

Meaning of Buyer Behavior “The process whereby individuals decide what, when, how and from

whom to purchase goods and service can be termed as the consumer’s or the buyer’s behavior”.

DEFINITION OF BUYER BEHAVIOUR

According to Webster (1976) “buyer behaviour is all psychological, social and physical behaviour of potential consumer as they become aware of to evaluate purchase, consume and tell other people about products and services”. CONSUMER BEHAVIOUR Consumer behaviour can be defined as “All psychological, social and awareness to evaluate, purchase, consume and tell others about products and services. This shows that there is always an attempt on the part of the marketer to understand and study ‘consumer behaviours’. This can be referred to as an attempt to understand and predict human actions in the buying role. The study of consumer behaviour is comparatively a new research field. Who buys products/ services? How do they buy product/ service? Where do they buy goods/ service? Why do they buy goods/ service?

8

How after do they buy? And so on… Basically human beings have sociable in nature and their buying decision or freedom of choice is determined by the affluence of the individual consumer and the society in question. According to Ostrow & Smith’s Dictionary of marketing, the term consumer behaviour refers to the actions of consumers in the market place and the underlying motives for those actions. Marketers except 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 Glenn Walters “consumer behaviour is that exhibiting by people in planning, purchasing and using economic goods and services. Consumer behaviour is and integrated part of human behaviour and cannot be separated from it. In fact, consumer behaviour is a subject of human behaviour. This does not mean that all human behaviour in consumption oriented”. According to Loudon and Della Bitta, consumer behaviour is “the decision making process and physical activity individuals engage in when evaluating acquiring, using, or disposing of goods and services”.

Customers and Consumers

9

The term “customer” typically used to refer to some one who purchases from a particular store or company. Thus a person who shops at Spencer or who uses Indane gas is viewed as customer a customer of these firms. The term “consumer” more generally refers to anyone engaging in any of the activities used in the above mentioned definition of consumer behaviour. Therefore a customer defined in of a specific firm while a consumer is not. The traditional view point has been define consumers strictly in of economic goods and services. This position holds that consumers are potential purchasers of product and services offered for sale. Ultimate Consumer Those individuals who purchase for the purpose of private individual consumption are called as ultimate consumers. The study of ultimate consumers reveals much about industrial or intermediate buyers and other involved in purchasing for business firms and institutions. Individual Buyer The most commonly thought of consumer situation is an individual making a purchase with little or no influence from others. However, in some cases a number of people can be tly involved in a purchase decision. For example, planning a vacation or deciding on a new car can involve an entire family. In other cases the purchaser may just be acquiring a product for someone else who has specified exactly what was wanted. Some purchase

10

situations involve at least one person in each of these roles, while in other circumstances a single individual can take on several roles at the same time. Importance of Consumer Behaviour The relevance and importance of understanding consumer behaviour is rooted in the modern marketing concept. In order to operationalise this concept, management attempts to solve some consumption problems of consumers. However no business man can help consumer solve their consumption problems unless he understands them and makes an attempt to comprehend the buying process and the factors influencing it. Consumer behaviour is dynamic and therefore, it is necessary to continuously study, analyze, understand and maintain this understanding to the marketing management so that effective decisions can be taken in respect of product, price, promotion and physical distribution. Studying consumer behaviour It is useful to view consumer behaviour as part of human behaviour because we can then study it by borrowing approaches that have been developed in the behaviour sciences. One such borrowed approach views consumer behaviour as entailing a decision making process involving considerable mental activity. It treats the three cases of variables discussed below as being essential to understanding behaviour.

Purpose of Consumer Behaviour

11

Just as consumer and marketers are diverse, the reasons why people study consumer behaviour are also diverse. The field of consumer’s behaviour holds great interest for us, as consumers as marketers, and as scholars of human behaviour. As Consumers, the benefit from insight into our own consumption related decisions as to what we buy, why we buy, how we buy and the promotional influences that persuade us to buy. As marketers and future marketers, it is important for us to recognize why and how individuals make their consumption decision so what we can make their better strategic marketing decision. If marketers understand consumer behaviour, they can predict how consumers are likely to react various informational and environment cues and can shape their marketing strategies accordingly. As scholars of human behaviour, we are concerned with understanding consumer behaviour with gaining insight into why individuals act in certain consumption related ways with learning what internal and external influences impel them

to act

as

they

do indeed. The desire for understanding

consumption related human behaviour has led to a University of theoretical approaches to its study.

Need for the Consumer Behaviour

12

A sound understanding of Consumer behaviour is essential for the long run success of any marketing problem. In fact it is seen as a Corner stone of the marketing concept and important orientation of philosophy of many marketing managers. Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: 

Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation.



Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: 

Personal risk



Social risk



Economic risk

The four type of consumer buying behavior are: 

Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.

13 

Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand.



Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend alot of time seeking information.. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process.



Impulse buying, no conscious planning. The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next.

Reason for the Development in the field of Consumer Behaviour There are number of reason as to why the study of Consumer behaviour has been developed as a separate marketing discipline. Marketers had long noted that consumers do not always out or react as marketing theory would suggest. The size of consumer marketing in this country is vast and is constantly expanding.

14

Consumer Preference was changing and becoming highly diversified even in industrial markets where needs for goods and services are always diversified and less predicate purchases behaviour. So the marketing researchers began to study the buying behaviour of Consumer. Research into Consumer behaviour provided them with the necessary insights to develop products and services and to design persuasive promotional strategies. Consumer research has revealed that a large segment of concerned consumers who favour products that have been modified to meet environment concerns and many marketers have responded with what has come to be known as green markets. 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 studying consumer buying process is to know how a consumer makes his decision regarding buying or not buying and commodity. In most cases, a decision involves the selection of and option from two or more attractive choices. The buying process is the process of decision-making leading to a purchase function. It represents a problem-solving approach. The mechanism is the same as in any processing activity in which we supply some input followed by the processing activity and finally the output comes before us.

15

INPUT

PROCESS

OUTPUT

During the last two decades, numerous models of consumer behaviour depicting the buying process have been developed. All these models treat the consumer as decision-makers who come to the market place to solve his consumption problems and to achieve the satisfaction of his needs. The simple model given is composed of three stages – ‘Input, process and output’. Input as a stimulus. It is provide by two sets of stimulus variables, namely, the firm’s marketing efforts and the social environment. The firm’s marketing efforts are designed to positively expose, inform and influence consumer. These efforts include product/ service itself, advertising, price strategies, distribution network and in fact all marketing functions. For example, when a company introduces a new brand of detergent powder or a television set, it may run a series of radio and TV commercials with ing press ments. The social environment serves as a noncommercial source of consumer information and influence which is not under the direct control of the firm. It includes reference groups and individuals, of the family, social class and castes, culture, and the like. Both these stimulus variables influence consumers and the buying process.

16

Stages of Buying Process The buying process is composed of a number of stages and is influenced by one’s psychological framework comprising the individual’s personality, motivations, perception and attitudes. For certain commodities, the buyer or consumer takes his buying decision immediately without much consideration. These are items of daily use. For some other commodities mainly luxury or durable items, the consumer thinks much before taking decision to purchase it. Sometimes, the consumer may also consult others. Generally, the purchaser es through five distinct stages in taking a decision for purchasing a particular commodity. These stages are: (i) need arousal (ii) information research (iii) evaluation behaviour (iv) purchase decision and (v) 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 become a drive and he knows 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 light of new product in a shop while purchasing other usual products. There is two-fold significance of need arousal to a marketer.

17

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 need 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 consumer becomes more receptive to the information regarding the item he needs. He becomes alert to information bearing on the need and its gratification. If a consumer needs to purchase a television, he will pay more attention to TV ment. He keeps ing 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. a. Personal sources (family, friends, neighbors, etc.)

18

b. Commercial sources (ment, salesmen, dealers) c. Public sources (mass media, consumer – rating organizations) d. Experimental sources (handling, examining, using the product) The marketer will find it worthwhile to study the consumers information sources whenever

a. A substantial percentage of the target, market engages in search. b. The target market shows some stable patterns of using the respective information sources. Identifying the information sources and their respective roles and important necessitates for interviewing consumers about the sources of information. The findings can later on be used to plan the firm’s ments. Interest may be viewed as a state of wind that exists when a consumer perceives and need and/ or is aware of alternative products capable of satisfying that need. Consumer interest is indicated in 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. For example, a housewife requiring a washing-aid, may look for further information about these machines once she become aware of such machines. The kind of information she may look for is about the alternative washing

19

machines available in the market place, their relative prices, operational efficiency, and 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 product/ brands on the basis of accumulated stock of product information and draws conclusions about their relative satisfaction-giving potential value. After this evaluation, the consumer develops the intention either to purchase or rejects the product /brand. The final purchase will however depend on the strength of the positive-intention, that is the intention to buy. In the above example of the housewife, after arousal of her interest in washing machines, she will compare the stock of 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/ woman would serve the need, then she may altogether reject the idea of buying any washing machine. On the basis of the evaluation of behaviour of consumers, marketer can improve or develop the product and segment the market on the basis of product – attributes. FACTORS INFLUENCING CONSUMER BEHAVIOUR

20

Various factors influencing consumer behaviour are Cultural factors psychological factors, personal factors and social factors. Cultural Factors Human perception and behaviour is predominantly influenced by the particular culture in which the people live. Cultural influences emanate from the culture at large, from various sub-cultures and from social class. Culture Culture is a complex of symbols and artifacts by a society and handed down from generation to generation as determinants and regulators of the human behaviour. Culture contains habits, skills, arts, institutions and values of a given group of people at a particular place and time. Although, world over people have same basic needs but how these needs are transferred into wants and how people go about satisfying those wants vary greatly as a result of their diverse cultures. To a large extent, culture dictates the way people are expected to behave and it both guides and influences personal and group interactions. For these reasons, understanding culture is critical to understanding of consumer perception world wide. Sub-Culture Within the culture there are segments that share distinguishing meanings, values and patterns of behaviour that differ from those of overall culture. The sub-cultures may be based on factors such as nation’s origin

21

(Indian, German and Polish etc.), race (Asian, Aryan, American and African) Geographic region (South East Asian, New England) or religion (Hindu, Muslim and Catholic). The of sub-cultures share certain values and attitudes with one another. Marketers who aim to target sub-culture should understand its member’s needs and wants to develop strategies to meet them. Reference Group Application in Consumer Behaviour The reference group concept is used by rs to persuade consumers to purchase products and brands by portraying products being consumed in socially pleasant situations. Or else, use prominent and attractive people to endorse products or services and often, by using stereotype group as spokespersons in advertising. Where reference group influence is operative, it is necessary that the advertising should stress the kinds of people who buy the product and therefore what specific reference.

Social Class Social class is a division of a ranking within the society based on education, occupation and type of residential hood. The class system may be based on religion, worship or landed wealth. The social classes tend to have varying attitudes and values that are reflected in the consumer behaviour of their . The typical class structure is:  Upper class

22

 Upper middle class  Middle class  Working class  Lower class Middle class and working class combined makes the mass market for any country. The of these classes may have comparable incomes but their sources of income and use pattern may be quite different. The differences between these groups should be identified and strategies should be designed accordingly. Upper and upper middle class form the affluent consumer. Psychological Factors  Maslow’s theory  Perception  Learning  Beliefs & Attitudes Maslow’s Hierarchy of Needs Abraham Maslow’s Hierarchy of needs theory sets out to explain what motivates individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to meet basic psychological needs of hunger and thirst. When this has been met, they then move up to the next stage of the hierarchy, safety needs, where the priority lay with job security and knowing that and income will be available to them regularly. Social needs

23

come in the next level of the hierarchy, the need to belong or be loved is a natural human desire and people do strive for this belonging. Esteem need is the need for status and recognition within society. Status sometimes drives people, the need to have good job title and be recognized or the need to wear branded clothes as a symbol of status. Self-actualization is the realization that an individual has reached their potential in life. The point of self-actualization is down the individual. When do you know you have reached your point of self-fulfillment? But how does this concept help and organization trying to market a product or service. Maslow’s concept suggests that needs change as we go along our path of striving of self-actualization. So Maslow’s concept is useful for marketers as it can help them to understand and develop consumer needs and wants. Beliefs and Attitudes Belief is a specified, deeply held conviction. A person might believe that a saving institution (UTI, Postal deposits) pay more interest than a commercial bank (State Bank of India or any other Scheduled Bank). This belief influences the person’s attitude and behaviour as he or she will transact business with institution and not the commercial bank. Marketers, who are well conversant with consumer beliefs and attitude look for as to when these beliefs and attitude are erroneous therefore, act to correct them. However, as a result of selective distortion, ments that communicate messages that conflict with people’s beliefs

24

must be produced in such a way that will reduce the likelihood of target audience dismissal. An attitude is a positive or negative education, feeling or tendency towards something. Beliefs are accepted facts right or wrong but attitudes are more likely feelings (good or bad). People posses attitude about everything, be it materials or human-being.

It is very difficult to change and it greatly

affects the buying behaviour. For example, the attitude towards thrift and of credit significantly affects the banking behaviour. Personal Factors  Age and life style stage  Education and occupation  Income  Personality and self concept Social Factors  Relevance group  Primary and secondary group  Formal & informal group  hip and symbolic group FAMILIES AND HOUSEHOLDS It is important to understand the difference between various that are frequently encountered when discussing the concept of family. There is a difference between the “family” and “households”, since market

25

statistics may be gathered on either of this basis. A household includes the related family and all the unrelated persons who occupy a housing unit. The term “family”, however is more limited and refers to a group of two or more persons related by blood, marriage, or adoption and residing together in a household. It should be noted that marketers are interested not only on the concept of families but also of households, since both may form the basis or framework of much consumer decision making and buying behaviour. The marketer will use the concept that seems most relevant for segmenting markets. For example, manufactures of refrigerators, dish washes, ranges and other kitchen appliances would probably find households to be the most relevant dimension in estimating market size since purchase and replacement of these appliances would depend more on household formation than family formation. On the other hand, sellers of children’s clothing and toys would probably be more interested in data on familities. Family Purchase Decisions Family purchasing decisions will be examined from four perspectives; (1) Role structure (2) Power structure (3) Stage in the decision making process and (4) Family specific characteristics. It is very important that the market understand who influences whom and how in the family buying process so that the proper marketing strategy may be developed. Role Structure

26

In every family it has its own role structure, with each member playing his or her role. Although several theories have been used to describe the structure of material roles in decision making, from the stand point of those interested in consumer behaviour, the following categorization appear to be most helpful Instrumental and Expressive Roles In traditional families among throughout the world the husband is more likely to provide material and primary leadership authority within the family, and the wife is more likely to provide affection and moral . This distinction relates to what are known as instrumental and expressive needs of all small groups; that is the need for leadership and fulfillment of the task on the one hand, and the need for morale ad cohesion on the other. Within the family, the instrumental role has typically played by the father and the expressive role by the mother. That is, men tend to be task oriented leaders, while women lead in social-emotional behaviour. The result of this is that in purchasing decisions husbands tend to concern themselves with functional product attributes and to exert more influence in deciding, whether to buy and inclosing the sale. The wife concerns herself more with aesthetic product attributes and with suggesting the purchase. Internal and External Roles

27

Another differentiation of roles occurs in the family with regard to the husband’s primary concern with matters external to the family and wife’s concern largely with internal matters. Purchase Process Role There are several ways of viewing family ’ roles as they relate to the purchase decision and consumption process. There are six roles that may be performed by various family . First, one or another family member may be initiator (i.e., the individual who recognizes the problem or need for the item). In his role, the suggestion may be made by the wife, for example, that household needs a food processor in order to more easily prepare meals. A second role is that of influencer, which is the person who informs or persuades others in a purchase situation. He may also be thought of as an opinion leader in that he exerts personal influence on other family with regard to a particular purchase situation. 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 more upon the intensity of their negative attitude and consumer’s motivation to comply with the other person’s wishes.

28

b) Anticipated situational factors, such as expected family income, expected total cost of the product and the expected benefits of the product; and c) Unanticipated situational factors, like accidents, illness etc. Post – purchase Feelings If the product matches his expectations, the consumer is satisfied; if it exceeds, he is highly satisfied; and if it falls short of expectations, he is dissatisfied. Out Put Output is the end-result of the inputs of consumer behaviour. It emerges after these inputs are duly processed by the consumer. Output is composed of purchase and post-purchase behaviour Purchase Purchase is a consumer commitment for the product. It is the terminal stage in the buying decision process that completes and transaction. It occurs either as a trial and/ or adoption. If a consumer is buying something for the first time, then from the behaviour viewpoint, it may be regarded as a trial. This trial enables him to accumulate experience about the product purchased. If his experience is positive in of the satisfaction derived, then repeated purchases may occur, otherwise not. For example, when an new brand of bathing soap is introduced in the market, the consumer may buy it for the first time as a trial. However, repeated purchases will occur only when he is

29

satisfied with its performance. But the possibility of the trial purchase is not available in all cases. In the case of consumer durables such as scooters, refrigerators and the like, a trial is not possible, because once a product is purchased, it has to be adopted and repeatedly used. Adoption means a consumer decision to commit to a full or further use of the product. In the example of the housewife, the washing machine is not open for a trial purchase; it will have to be adopted onl Post – Purchase Behaviour Post-purchase behaviour refers to the behaviour of the consumer after his commitment to a product has been made. It originates out of consumer experience regarding the use of the product and is indicated in of satisfaction. This behaviour is reflected in repeat purchases or abstinence from future purchases. If product-use experience indicates satisfaction, then repeat purchases will occur, otherwise not. Consumer Decision Behaviour It is a natural behaviour with most consumers to name the general objectives of creating and maintaining a collection of goods and services that provides current and future satisfaction. For example, an average adult must make several decisions daily regarding food, clothing, shelter, education, transportation etc, but when they make decision they use different decisionmaking behaviours.

30

The various types of Consumers decision making vary considerably and are classified as follows. a) Routine response behaviour b) Limited decision making c) Extensive decision making INTRODUCTION OF HOME APPLIANCES: A major appliance, or domestic appliance, is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, food preservation, or cleaning, whether

in

a

household,

institutional

or industrial setting. Major

appliances are differentiated from small appliances because they are large, difficult to move, and generally fixed in place to some extent. Another frequent characteristic of major appliances is that they may have substantial electricity requirements that necessitate special electrical wiring to supply higher current than standard electrical outlets can deliver. This limits where they can be placed in a home. Major appliances have become more technically complex from the control side recently with the introduction of the various Energy Labeling rules across the world. This has meant that the appliances have been forced to become more and more efficient leading to more accurate contr ollers in order to meet the regulations. Home appliances companies in India:

31

Home appliances are that without which a modern home is considered incomplete, especially in urban areas. In metro cities and big towns, appliances are regarded as a boon, as they are instrumental in cutting down the time involved in most of the domestic chores. There are many home appliance companies in India like Videocon, Voltas, Godrej, Bluestar, Kenstar etc. apart from them there are various international companies also that deal in domestic manufactures are

Samsung,

LG,

Whirlpool,

Kenmore

etc.

with the

arrival

of

international brands in Indian market, the competition among rival companies have become stiff, which results in further improvement in qualities and depreciation in prices of most of the home appliances in India. Since a majority of products are electrically operated, the focus is on such household appliances that are efficient in power consumption. Most of the leading home appliances manufacture and companies have set up their exclusive retail outlets in important towns and cities of the

country.

Besides there are local

home

appliances

suppliers,

manufactures, wholesalers and retailers spread throughout India.

Consumer electronics and home appliances The Indian consumer electronics products and household appliances industry has an annual turnover of approximately Rs.190 billion. The key

32

products in the Indian consumer electronics are colour TV, refrigerators, air conditioners and washing machines, micro oven, mixi, grinder index stove etc. At the product level, within the consumer electronic household appliances industry in India the penetration level of CTV is the highest, followed by refrigerators, washing machines and air conditioners. THE TOP FIVE ELECTRONIC HOME APPLIANCES:     

LG IFB WHIRL POOL SAMSUNG VIDEOCON

-

1.7. REVIEW OF LITERATURE One telephone survey of 1015 adults in Great Britain asked respondents about purchase of electrical appliances and found that 82% of people claim to buy them ‘all the time’, whilst 6% have only done so on the odd occasion, rarely or not at all (Brook Lyndhurst 2004).

33

The same survey found that 15% think that buying electrical appliances would make a ‘lot of difference’ to environmental impact, whereas 51% thought it would not. The report does not suggest reasons for these opinions, but it is worth noting that assessments of the steadily increasing efficiency of many appliances, notably refrigeration and washing appliances, means that only relatively new machines are worth repairing or remanufacturing on environmental grounds (CRR 2007). There is slightly more research on people’s readiness to purchase electronic home appliances goods. Regardless of the answer to the questions, literature on people’s attitudes towards electronic home appliances is positively considered in this report. Barr and Gilg (2001; 2005; Barr 2007) report on a representative survey of self-reported behaviour and attitudes towards electronic home appliances . He asked the factors that affects the consumer in buying electronic home appliances, which found that 68% of respondents cited cheaper cost as a reason for buying electronic home appliances. Research in Japan on home electric appliances found that, even where respondent’s family and friends were the most widespread source for buying electronic home appliances and they are buying considering it as an inevitable and increases social status. Research by Shun & Yunjie (2006) showed that there are product types, which are more likely to be sold online such as software, books, electronics

34

and music and mainly electronic home appliances. Reason for this is that when purchasing these types of products, one does not require personal inspection and most, if not all features, can be outlined in the product description and images. Most products in the mobile phone family belong to this category According to the recent research on consumer behaviour on the Internet s (Cotte, Chowdhury, Ratenshwar & Ricci, 2006), there are four distinct consumer groups with different intentions and motivations: 

Exploration



Entertainment



Shopping



Information Majority of young adults interviewed for purpose of this research to

identify their attitudes towards buying behavior of electronic home appliances and they tend to be active information seekers. They said buying electronic home appliances produces high satisfaction because of valuable information and honest price of the product. A high level of technological confidence within this group tends to be an encouraging factor when it comes to product information research online. Many people use contrasts and colours that express feelings according to their state of mind. Thus, the products’ properties, like design, comfort,

35

individuality, have a decisive role on apparel’s buying behaviour, which may vary depending on a set of factors, mainly on sex (Fischer and Arnold, 1994).

Consumer behaviour research is the scientific study of the processes consumers use to select, secure, use and dispose electronic home appliances that satisfy their needs. Knowledge of consumer behaviour directly affects marketing strategy (Anderson et al, 2005). This is because of the marketing concept, i. e., the idea that firms exist to satisfy customer needs (Winer, 2000). Firms can satisfy those needs only to the extent that they understand their customers. For this reason, marketing strategies must incorporate knowledge of consumer behaviour into every facet of a strategic marketing plan (Solomon, 2002) The human behaviour is complex, replete with controversies and contradictions and comes as no surprise to marketing academicians as well as practioners. There is a widespread recognition that consumer behaviour is the key to contemporary marketing success (Hawkins et al., 2003). Consumer behaviour has been legitimized in marketing for it provides the conceptual framework and strategic thinking for carrying out successful segmentation of markets (Schiffman and Kanuk 2000). There have been a number of debates between positivistic and interpretive consumer researchers (Hudson and Ozanne 1988). In this way, the field of consumer behaviour has been characterized by diversity of

36

viewpoints; as a result, the entire field now is based on an interdisciplinary science (Kassarjian 1995). The understanding of consumer behaviour appeals to a set of different areas of knowledge/factors: psychological, cultural social psychological, physio-pyschological, genetics anthropology. One of them is the psychology since consumer behaviour deals with emotions, beliefs and attitudes. Research on emotions within marketing has evolved three approaches: the categories approach, the dimensions approach and the cognitive appraisals approach (Watson and Spence, 2007). The categories approach groups emotions around exemplars and considers their different effects on consumption related behaviour. The dimensions approach uses the affective dimensions of valence and level of arousal to distinguish between emotions and the effects they have on consumer behaviour. the cognitive appraisals approach has used emotions’ underlying motivational and evaluative roots to explain their influences on consumption related behaviours. This approach supposes that underlying evaluations of a situation (e.g. its desirability, certainty, etc.) combine to elicit specific emotions. This approach may be used to explain how an extensive range of emotions, including those with similar valence and arousal levels, are elicited and how they lead to different behavioural responses. The cognitive approach has been considered relevant for understanding the emotional responses of consumers in the marketplace (Johnson and

37

Stewart, 2005: 3). Bagozzi et al. (1999) propose that the cognitive appraisals approach offers a more complete explanation of consumers’ behavioural responses to emotions than other one. One of the most influential areas within consumer behavior is consumer decision – making (Bargh 2002; Simonson et al. 2001; Bettman, Luce, and Payne 1998). At the conceptual level, various consumer decision- making models have been proposed in the literature in recent decades. However, many researchers believe that a specific, situationand product-oriented model is needed in studying purchasing (Erasmusm, Boshoff, and Rousseau 2001). Apart from this, investigating decisions, that can change lives of consumers, such as car or house purchase, can make an essential contribution to consumer behavior knowledge (Wells 1993). According to Erasmus, Boshoff, and Rousseau (2001), an exploratory approach with the intention to unfold the truth may provide opportunities for an

understanding

of

the

complexity

of

specific

decision-making

circumstances, such as first-time house buying

In view of the existing literature exploring consumer decision making when purchasing high-involvement and emotionally charged products, the purpose of this research was threefold: (a) to develop a conceptual model of decision – making for a prefabricated house purchase; (b) to gain knowledge of factors impacting this process from the empirical standpoint; and (c) to

38

offer implications for beneficial strategic household purchases. Strategic decision making refers to the process of decision making with long-term commitments of resources and affecting the budget available for other goods and services (Gronhaug, Kleppe, and Haukedal 1987, 242). Based on the existing literature, we assume that this process involves a certain amount of perceived risk, especially since it represents large financial obligations (Gibler and Nelson 2003; Mitchell 1999; Gronhaug, Kleppe, and Haukedal 1987; Beatty and Smith 1987). Our goal is also to offer implications for consumers, real estatemarketers and consumer researchers. The specific product selected in this study was a prefabricated house. The house is the most important durable good in the household and requires high involvement as well as complex decision making. Some similarities can be drawn with other durable products, particularly cars. Hence, the empirical literature in this area and the real estate literature serve as a basis for conceptual and empirical work in this study. Consumer behavior has been an important research topic for decades. A review of existing theoretical efforts indicates a clear shift from rational to psychological and social decision factors. However, even the recent models have not managed to embrace all the knowledge in the field of consumer behavior: subconscious processes, the role of needs, goals and emotions (Bargh 2002). Apart from leaving out these important findings the existing literature also lacks studies of decisions that consumers are most concerned

39

about, termed ‘big’ or ‘strategic decisions’ (Bazerman 2001, 500; Gronhaug, Kleppe, and Haukedal 1987, 242).

CHAPTER - II 2.1. RESEARCH METHODOLOGY

The researcher decided to collect primary data through survey method from the house holds situated at Pondicherry city. He selected 50 male head of the family from 50 houses; 50 female (wives of head of the family)

40

from another 50 houses. Thus the total sample for the present study consisted of 100 respondents comprising 50 male and 50 female respondents. The researcher has chosen only middle class and lower middle class family for the present study. Therefore quota and convenient sampling method was adopted in selecting the house. Pilot study: Before collecting the data through questionnaire a pilot study was conducted with 10 respondents at the researcher’s town at Pondicherry city for testing the questionnaire and feasibility of the study. Some weaknesses were brought to light by the respondents. Later, improvements in the questionnaire were made from the experience so gained. Research Design: In this study the researcher has made an attempt to describe the factors pertaining to behavior of consumers and its effect on the purchasing of consumers towards electronic home appliances. There has also been an attempt to find out whether there is any association between the behaviour of the consumer and the preference of the electronic house hold product. Hence, in order to achieve these targets the researcher has used descriptive and diagnostic study. DESCRIPTIVE STUDY: Unit of analysis:

41

In this research the researcher collected the data from the consumer treating each consumer’s response as an individual data source. Type of investigation: Casual relationship: In this research, the researcher wants to delineate the cause of one or more problems related with consumer behaviour. Time horizon: Cross sectional studies: The researcher gathered the data just once, perhaps over a period of days or weeks or months in order to answer a research question. Study setting: Non – contrived: The research is conducted in a non- contrived setting that is among the consumers of Pondicherry city.

SAMPLING: As it is not possible to collect the information from the whole population. So sampling method is adopted by the researcher to collect the needed information. Universe:

42

The universe constitutes of consumers in Pondicherry city. Sample size: From among the all consumers the researcher focus is about 100 respondents in that 50 male and 50 female respondents of middle and lower middle class family. Sample technique: The researcher has selected non - probability Sampling Technique due to unknown population, and in that the researcher has selected quota sampling relating to the study. Quota sampling: It is the nonprobability equivalent of stratified sampling. Like stratified sampling, the researcher first identifies the stratums and their proportions as they are represented in the population. Then convenience or judgment sampling is used to select the required number of subjects from each stratum.

2.2.

DATA COLLECTION METHOD

The task of data collection begins after a research problem has been identified and research design chalked out. There are two types of data. Namely  Primary data

43

 Secondary data Primary data: The primary data are those which are collected afresh and for the first time. The researcher has chosen questionnaire and personal interview for collecting primary data from the respondents. Questionnaire: The questionnaire is prepared for the survey according to the dimensions of consumer behaviour. Personal Interview: It is too conducted with the help of questionnaire prepared for the survey. Secondary data: The secondary data are those which have been collected for some other purpose and are in existence. The records and documents pertaining to the details of consumer buying behavior and companies of electronic home appliances constitute the secondary source.

Research instrument: A structured questionnaire is framed which contains.  Open-ended questions: It gives freedom to the respondents to express their views freely.  Closed-ended questions:

44

This type of questions does not allow the respondents to express their view freely. It consist of,  Dichotomous questions.  Multiple choice questions. TOOLS FOR ANALYSIS: The tools for analysis are 1. Percentage Analysis. 2. Karl Pearson’s co-efficient of correlation 3. Chi square 4. Weighted average method 5. Cross sectional analysis 1. Percentage Analysis: It was used to find the percentage values for all different questions used in making comparison between two or more series of data. No. of respondents Percentage Analysis = --------------------------------- X 100 Total No. of respondents 2. Karl Pearson’s co-efficient of correlation: It is a statistical measurement of the relationship between two variables N∑XY-(∑X) (∑Y) r = -----------------------------------√N∑X2-(∑X)2 * √N∑Y2-(∑Y)2

45

3. Chi-Square Test (ψ²): Karl Pearson first used chi square test in the year of 1990. Chi - Square is a non-parametric technique, most commonly used way a research to test the analysis. The main objective of chi-square is to determine whether significant difference exist among group of data. FORMULA: Calculated value: Chi - Square test (ψ²) = Σ (Oi - Ei) 2/ Ei

(2.3.20, 2.3.21, 2.3.22)

Oi = Observed frequency Ei = Expected frequency Tabulated value: Degree of freedom v = (c – 1) (r-1) @ 5% level of significance. Where c = no. of columns r = no. of rows If calculated value of (ψ²) < tabulated value of (ψ²)0.05% H0 is accepted, H1 is rejected. If calculated value of (ψ²) > tabulated value of (ψ²)0.05% H0 is rejected, H1 is accepted. Null Hypothesis (H0): A null hypothesis is a proposition that states a definitive, exact relationship between two variables. Alternate Hypothesis (H1): The alternate hypothesis is a statement expressing a relationship between two variables or indicating differences between groups.

46

4. Weighted Average Method: One of the limitations of the arithmetic mean which discussed about is that it gives equal importance to all the items. But there are cases there the relative importance of the different items. Formula: W1R1 + W2R2 + W3R3 + W4R4 +W5R5 Weighted average

=

-----------------------------------------------W1 + W2 + W3 + W4 +W5

5. Cross-sectional analysis: It is a form a class of research methods that involve observation of all of a population, or a representative subset, at a defined time. It aim to provide data on the entire population under study. It is a type of observational study. Unlike case-control studies, they can be used to describe absolute risks and not only relative risk. They may be used to describe some feature of the population or they may inferences of cause and effect.

2.3. DATA ANALYSIS AND INTERPRETATION This chapter presents the findings of the study the researcher has arrived at with the help of basic four questions. They are as follows: 1. Sex 2. Occupation 3. Family Size 4. Monthly income

47 TABLE: 2.3.1 TABLE SHOWING SEX – WISE CLASSIFICATION OF RESPONDENTS

Sex Male Female Total INFERENCE:

No. of Respondents 50 50 100

Percentage 50 50 100

From the above table, it is inferred that equal numbers of male and female respondents were selected for the present study. CHART: 2.3.1 CHART SHOWING SEX – WISE CLASSIFICATION OF RESPONDENTS

TABLE: 2.3.2 TABLE SHOWING OCCUPATION OF THE RESPONDENTS

Occupation Employed Business Total

No of Respondents 40 60 100

Percentage 40 60 100

INFERENCE: It is clear from the above table that 60% of the respondents are doing business and only 40% of the respondents are employees.

48 CHART: 2.3.2 CHART SHOWING OCCUPATION OF THE RESPONDENTS

TABLE: 2.3.3 TABLE SHOWING FAMILY SIZE OF THE RESPONDENTS

Family Size

No. of Respondents

Percentage

Less than 5

60

60

5 to 8

31

31

More than 8

9

9

Total

100

100

INFERENCE: The above table reveals that the family size of 60% of the respondents are having less than five, 31% respondents are having a family size of 5 to 8

49

and only 9% of the respondents are having a family size of more than 8 . CHART: 2.3.3 CHART SHOWING FAMILY SIZE OF THE RESPONDENTS

TABLE: 2.3.4 TABLE SHOWING INCOME LEVEL OF THE RESPONDENTS

Monthly Income Below-5000 5001-10000 10001-15000 Above 15000 Total

No. of Respondents 40 20 21 19 100

Percentage 40 20 21 19 100

INFERENCE: The above table reveals that 40% of the respondents are earning a monthly income of less than 5000. 20% of the respondents earn income between 5001 and 10000; 21% of the respondents are having an income of

50

between 10001 and 15000 and the remaining 19% respondents are having monthly income of above 15000. CHART: 2.3.4 CHART SHOWING INCOME LEVEL OF THE RESPONDENTS

TABLE: 2 3.5 TABLE SHOWING AWARENESS OF RESPONDENTS TOWARDS ELECTRONIC HOME APPLIANCES

Awareness

No. of respondents

Percentage

Yes

76

76

No

24

24

Total

100

100

INFERENCE: From the above table, it is inferred that 76% of the respondents are aware of electronic home appliances and 24% of them are not that much aware of electronic home appliances. CHART: 2 3.5 CHART SHOWING AWARENESS OF RESPONDENTS TOWARDS ELECTRONIC HOME APPLIANCES

51

TABLE: 2 3.6 TABLE SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR SAVING MONEY TO PURCHASE HOUSEHOLD APPLIANCES


Saving money 41(82) 37(74) 78

Not saving money 9(18) 13(26) 22

Total 50 50 100

From the above table, it is clear that nearly 80 percent of the respondents save money to purchase house hold appliances. It is also clear from the table that both male and female equally save to purchase the appliances. CHART: 2.3.6 CHART SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR SAVING MONEY TO PURCHASE HOUSEHOLD APPLIANCES

52

TABLE: 2.3.7 TABLE SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR CASH/ CREDIT PURCHASE OF ELECTRONIC HOME APPLIANCES


Cash purchase 30(60) 39(78) 78

Credit purchase 20(40) 11(22) 22

Total 50 50 100

From the above table, it is inferred that 78 percent of the respondents prefer to buy home appliances only by paying cash. It is also evident that only 60 percent of the male respondents purchase the home appliances by paying immediate cash. Where as, in the case of female, more than 75 percent of the respondents purchase home appliances by paying cash. This is due to the fact ladies generally hesitate to purchase goods on credit fearing that they may not be able to repay the amount at a later date. CHART: 2.3.7 CHART SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR CASH/ CREDIT PURCHASE OF ELECTRONIC HOME APPLIANCES

53

TABLE: 2.3.8 TABLE SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR BUYING HOME APPLIANCES FOR PRESTIGE/ UTILITY


Prestige 7(14) 23(46) 30

Utility 43(86) 27(54) 70

Total 50 50 100

From the above table, it is inferred that 70 percent of the respondents buy home appliances for their ultimate utility and only 30 percent respondents say that they purchase a particular home appliance as a prestige issue.85 percent of the male respondents say that the purchase of home appliance is essentially for the utility purpose. Where as, in the case of female respondents, only a little more than 50 percent say that they purchase the house hold item for utility purpose. Forty six percent of the female respondents say that they purchase a particular household appliance just for prestige. CHART: 2.3.8 CHART SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR BUYING HOME APPLIANCES FOR PRESTIGE/ UTILITY

54

TABLE: 2.3.9 TABLE SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR BUYING BEHAVIOUR TOWARDS IMPORTED/INDIAN MADE HOME APPLIANCES


Imported 16(32) 03(6) 19

Indian 34(68) 47(96) 81

Total 50 50 100

It is evident from the above table that more than 80% of the respondents prefer to buy only Indian made appliances and only a little less than 20% respondent wish to buy foreign made appliances. CHART: 2.3.9 CHART SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR BUYING BEHAVIOUR TOWARDS IMPORTED/INDIAN MADE HOME APPLIANCES

55

TABLE: 2.3.10 TABLE SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR SPOT – DECISION/ PREPLANNED PURCHASE


Spot Decision 8(16) 14(28) 22

Well Planned 42(84) 36(72) 78

Total 50 50 100

From the above table, it is inferred that nearly 80% percent of the respondents, both male and female, purchase home appliances my making a preplanning. CHART: 2.3.10 CHART SHOWING RELATIONSHIP BETWEEN MALE AND FEMALE FOR SPOT – DECISION/ PREPLANNED PURCHASE

56

TABLE: 2.3.11 TABLE SHOWING RELATIONSHIP BETWEEN OCCUPATION AND SAVING/ NON SAVING MONEY FOR THE PURCHASE OF HOME APPLIANCES

Occupation Employed Business Total INFERENCE:

Saving Money 30(75%) 48(80%) 78

Not Saving Money 10(25%) 12(20%) 22

Total 40 60 100

The table reveals that nearly 80% of the respondents both employed and business people save money for the purpose of purchasing home appliances. According to the majority of the respondents, they save money for the purpose of buying a specific home appliance. CHART: 2.3.11 CHART SHOWING RELATIONSHIP BETWEEN OCCUPATION AND SAVING/ NON SAVING MONEY FOR THE PURCHASE OF HOME APPLIANCES

57

TABLE: 2.3.12 TABLE SHOWING RELATIONSHIP BETWEEN OCCUPATION AND PURCHASE OF HOME APPLIANCES FOR PRESTIGE/ UTILITY

Occupation Employed Business Overall % INFERENCE:

Prestige 6(15%) 36(60%) 42

Utility 34(85%) 24(40%) 58

Total 40 60 100

The table reveals that majority of the people purchase the home appliances just for utility rather than as a prestige. On the other hand, in the case of business people the story is entirely different. They purchase the article just for prestige purpose, irrespective of its usage. CHART: 2.3.12 CHART SHOWING RELATIONSHIP BETWEEN OCCUPATION AND PURCHASE OF HOME APPLIANCES FOR PRESTIGE/ UTILITY

58

TABLE: 2.3.13 TABLE SHOWING RELATIONSHIP BETWEEN OCCUPATION AND BUYING BEHAVIOUR OF PEOPLE TOWARDS INDIAN OR IMPORTED

Occupation Employed Business Overall % INFERENCE:

Imported 06(15%) 13(22%) 19

Indian Made 34(85%) 47(78%) 81

Total 40 60 100

It is evident from the above table that more than 81% of the respondents both employed and business; prefer to purchase only Indian made home appliances. There is a general awareness among all sections of the people that the quality of Indian goods is equally good when compared with foreign made articles. CHART: 2.3.13 CHART SHOWING RELATIONSHIP BETWEEN OCCUPATION AND BUYING BEHAVIOUR OF PEOPLE TOWARDS INDIAN OR IMPORTED

59

TABLE: 2.3.14 TABLE SHOWING RELATIONSHIP BETWEEN OCCUPATION AND PREFERENCE FOR PURCHASING GOODS ON CASH/ CREDIT BASIS


Cash Purchase 30(75%) 24(40%) 71

Credit Purchase 10(25%) 36(60%) 29

Total 40 60 100

The above table reveals the preference of the employed and business people regarding purchase of home appliances either on credit or for cash. The table shows that 3/4th of the employed respondents say that they prefer to buy home appliances on cash basis only. On the other hand 60% of the business people say that they prefer to buy home appliances for credit. CHART: 2.3.14 CHART SHOWING P RELATIONSHIP BETWEEN OCCUPATION AND PREFERENCE FOR PURCHASING GOODS ON CASH/ CREDIT BASIS

60

TABLE: 2.3.15 TABLE SHOWING RELATIONSHIP BETWEEN OCCUPATION AND SPOT DECISION/ PREPLANNED BUYING DECISION AMONG EMPLOYED AND BUSINESS PEOPLE


Spot Decision 07(18%) 15(25%) 22

Well Planned 33(82%) 45(75%) 78

Total 40 60 100

The above table reveals that nearly 80% of the respondents both employed and business people make a through planning before purchasing home appliances. These respondents say that preplanning help them to purchase the home appliances with out any difficulty. It also reduces the future financial burden to a great extent. CHART: 2.3.15 CHART SHOWING RELATIONSHIP BETWEEN OCCUPATION AND SPOT DECISION/ PREPLANNED BUYING DECISION AMONG EMPLOYED AND BUSINESS PEOPLE

61

TABLE: 2.3.16 TABLE SHOWING RELATIONSHIP BETWEEN FAMILY SIZE AND SAVING/NON SAVING HABITS

Family size Less than 5 5 to 8 More than 8 Total INFERENCE:

Saved purchase 54(90%) 21(67%) 01(11%) 76

Non-saved purchase 06(10%) 10(33%) 08(89%) 24

Total 60 31 9 100

It is clear from the above table that 90% of the respondents who are having a family size of less than 5 are able to save money for purchasing home appliances. In the case of respondents who are having a family size of 5-8, only 67 percent of the respondents are able to save money to purchase the home appliances. It is interesting to note that, a merger 11% of the respondents save money to purchase home appliances in the case of those who are having a family size of more than 8. CHART: 2.3.16 CHART SHOWING RELATIONSHIP BETWEEN FAMILY SIZE AND SAVING/NON SAVING HABITS

62

TABLE: 2.3.17 TABLE SHOWING FAMILY SIZE AND CASH OR CREDIT PURCHASE


Cash Purchase 50(83%) 20(65%) 03(33%) 73

Credit Purchase 10(17%) 11(35%) 06(67%) 27

Total 60 31 9 100

The above table shows that more than 80 percent who are having a family size of less than 5, purchase home appliance for cash. This can be evident from the above table that only a small percentage of respondents who are having a family size of more than 8 purchase home appliances on cash. CHART: 2.3.17 CHART SHOWING FAMILY SIZE AND CASH OR CREDIT PURCHASE

63

TABLE: 2.3.18 TABLE SHOWING RELATIONSHIP BETWEEN FAMILY SIZE AND PURCHASE OF HOME APPLIANCES FOR PRESTIGE/ UTILITY


Prestige 42(70%) 23(74%) 03(33%) 30

Utility 18(30%) 08(16%) 06(67%) 70

Total 60 31 9 100

It is evident from the above table that those with small family purchase the particular home appliances just for the sake of prestige. In the case of large family, the respondents say that they purchase various household appliances not for the sake of prestige, but for really using it in the house. CHART: 2.3.18 CHART SHOWING RELATIONSHIP BETWEEN FAMILY SIZE AND PURCHASE OF HOME APPLIANCES FOR PRESTIGE/ UTILITY

64

TABLE: 2.3.19 TABLE SHOWING RELATIONSHIP BETWEEN FAMILY SIZE AND PURCHASE OF FOREIGN/ HOME MADE APPLIANCES


Imported 12(21%) 05(16%) 02(22%) 19

Indian 48(79%) 26(84%) 07(88%) 81

Total 60 31 9 100

The above table reveals the relationship between family size and purchase of home made/ foreign made home appliances. It is interesting to note from the above table that irrespective of the size of the family more than 3/4th of respondents prefer to purchase only home made appliances for their house. CHART: 2.3.19 CHART SHOWING RELATIONSHIP BETWEEN FAMILY SIZE AND PURCHASE OF FOREIGN/ HOME MADE APPLIANCES

65

TABLE: 2.3.20 TABLE SHOWING RELATIONSHIP BETWEEN FAMILY SIZE AND SPOT DECISIONS VS PRE PLANNED DECISIONS


Spot Decision 47(78%) 08(16%) 02(22%) 57

Pre planned 13(12%) 23(74%) 07(78%) 27

Total 60 31 9 100

It is clear from the above table that nearly 80% of the respondents who are having a family size of less than five are able to take spot decisions to purchase home appliances. In the case of respondents with big family they cannot take spot decision to purchase a particular home appliance because money will always be a constraint for them. CHART: 2.3.20 CHART SHOWING RELATIONSHIP BETWEEN FAMILY SIZE AND SPOT DECISIONS VS PRE PLANNED DECISIONS

66

TABLE: 2.3.21 TABLE SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND SAVING HABITS

Monthly Income

Saving Money to Purchase

No saving Money to purchase

Below-5000

38(93%)

02(5%)

5001-10000

15(75%)

05(25%)

10001-15000

14(67%)

07(33%)

Above 15000

11(58%)

08(42%)

Total

78

22

INFERENCE: It is clear from the above table that more than 90% of those respondents whose monthly income is less than Rs.5000 saves money to purchase home appliances and it is 75% in the case of respondents having an income range of Rs.5001 to Rs.10000. it is quite natural that people with low income cannot purchase any thing at any time. Those respondents whose income level is more than Rs.10000 save comparatively less to purchase the home appliances. CHART: 2.3.21

67 CHART SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND SAVING HABITS

TABLE: 2.3.22 TABLE SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND MODE OF PURCHASE

Monthly Income

Cash Purchase

Credit Purchase

Below-5000

20(50%)

20(50%)

5001-10000

15(75%)

05(25%)

10001-15000

18(86%)

03(14%)

Above 15000

18(95%)

01(5%)

Total

71

29

INFERENCE: It is clear from the above table that those respondents whose income level is less than Rs.5000 make cash purchase and credit purchase equally. In the case of respondents whose income level is between Rs.5001 and Rs.10000, 25% respondents make cash purchase and another 75% make credit purchase. It is interesting that more than 80% of those respondents whose income level is more than Rs.10000, they make only cash purchase of home appliances. CHART: 2.3.22

68 CHART SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND MODE OF PURCHASE

TABLE: 2.3.23 TABLE SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND PURCHASE OF HOME APPLIANCES FOR PRESTIGE/ UTILITY

Monthly Income Below-5000 5001-10000 10001-15000 Above 15000 Total INFERENCE:

Prestige 02(05%) 05(25%) 07(33%) 16(84%) 30

Utility 38(95%) 15(75%) 14(67%) 03(16%) 70

Total 40 20 21 19 100

It is evident from the above table that more than 3/4 th of those respondents, whose income range is below Rs.10000, purchase home appliances for real utility and not for prestige. Whereas, in the case of those respondents whose income level is more than Rs.10000, they purchase many home appliances not for the purpose of real utility, but only for the sake of prestige. CHART: 2.3.23 CHART SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND PURCHASE OF HOME APPLIANCES FOR PRESTIGE/ UTILITY

69

TABLE: 2.3.24 TABLE SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND PURCHASE OF IMPORTED/ INDIAN MADE HOME APPLIANCES


Imported 01(03%) 02(10%) 04(14%) 13(68%) 19

Indian 39(97%) 18(90%) 17(86%) 06(32%) 81

Total 40 20 21 19 100

It is clear from the above table that more than 85 percent of the respondents whose income level is more than less than Rs.15000 prefer to buy only Indian made home appliances. Only the respondents whose income level is more than Rs.15000 prefer to purchase foreign made home appliances. CHART: 2.3.24 CHART SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND PURCHASE OF IMPORTED/ INDIAN MADE HOME APPLIANCES

70

TABLE: 2.3.25 TABLE SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND SPOT/PREPLANNED PURCHASE


Spot Decision 2(5%) 2(10%) 4(19%) 14(74%) 22

Well planned 38(95%) 18(90%) 17(81%) 5(36%) 78

Total 40 20 21 19 100

The above table reveals that more than 80% of those respondents whose income level is more than Rs.15000 prefer to purchase home appliances only after careful preplanning. On the other hand, those respondents whose monthly income is more than Rs.15000 say that they take spot decision to purchase the home appliances whenever there is a need. CHART: 2.3.25 CHART SHOWING RELATIONSHIP BETWEEN INCOME LEVEL AND SPOT/PREPLANNED PURCHASE

71

TABLE: 2.3.26 TABLE SHOWING ELECTRONIC HOME APPLIANCES POSSESSED BY THE RESPONDENTS

Home Appliance products Grinder Micro oven Mixie Television Refrigerator Washing Machine Air conditioner INFERENCE:

No. of Respondents

Percentage

100 60 100 100 97 76 54

100 60 100 100 97 76 54

The above table indicates the possession of various home appliances by the respondents. It is clear from the above table that 100% of the respondents are having TV, mixie and grinder in their houses, 97% are having refrigerator in their houses, 76% of the respondents are having washing machine, 60% of the respondents are having micro oven and 54% are having air conditioner. CHART: 2.3.26 CHART SHOWING ELECTRONIC HOME APPLIANCES POSSESSED BY THE RESPONDENTS

72

TABLE: 2.3.27 TABLE SHOWING DECISION MAKING AUTHORITY REGARDING PURCHASE OF HOME APPLIANCES

Decision Maker

No. of Respondents

Percentage

Husband

10

10

Wife

18

18

Husband/ Wife

47

47

Any other

25

25

Total

100

100

INFERENCE: The above table shows that nearly 50% of the respondents say that husband and wife together take decision on purchase of household appliances. One-fourth of the respondents say that they consult others before taking decision on purchasing home appliances. CHART: 2.3.27 CHART SHOWING DECISION MAKING AUTHORITY REGARDING PURCHASE OF HOME APPLIANCES

73

TABLE: 2.3.28 TABLE SHOWING CONSULTATION WITH OTHERS BEFORE PURCHASING HOME APPLIANCES

Consultation with

No. of Respondents

Percentage

Family & Relatives, neighbors

3

12

Friends

12

48

Neighbors

10

32

Total

25

100

INFERENCE: It is evident from the above table that nearly 50% of the respondents consult their friends before purchasing household appliances; another 32% consult neighbors and only a meager amount of 8% respondents consult their relatives regarding the purchase of home appliance. CHART: 2.3.28 CHART SHOWING CONSULTATION WITH OTHERS BEFORE PURCHASING HOME APPLIANCES

74

TABLE: 2.3.29 TABLE SHOWING IMPORTANCE GIVEN TO OTHERS IN THE ACTUAL PURCHASE

Consultation with

No. of Respondents

Percentage

Family & Relatives, neighbors

1

4

Friends

12

48

Neighbors

12

48

Total

25

100

INFERENCE: The above table reveals that nearly 50% of the respondents give preference to their friends and the same percentage of respondents give preference to the neighbors at the time of actual purchase of household appliances. CHART: 2.3.29 CHART SHOWING IMPORTANCE GIVEN TO OTHERS IN THE ACTUAL PURCHASE

75

TABLE: 2.3.30 TABLE SHOWING SOURCES THAT INFLUENCE CONSUMERS TO BUY HOME APPLIANCES

Sources TV Newspapers Magazines Internet Hoardings Exhibitions/fares Total INFERENCE:

No. of respondents 58 13 8 15 4 2 100

Percentage 58 13 8 15 4 2 100

From the above table, it is inferred that 58% of the respondents said that TV is the major media that attracts consumer to buy home appliances, 15% of them said it is internet, 13% of them said it is newspaper, 85 of them said it is newspaper, 4% of them said it is hoardings and only 2% of them said it is exhibition. CHART: 2.3.30 CHART SHOWING SOURCES THAT INFLUENCE CONSUMERS TO BUY HOME APPLIANCES

76

TABLE: 2.3.31 TABLE SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY TV

Features I II III IV V VI Total Picture quality 50 17 11 10 7 5 100 Sound effect 18 41 13 11 9 8 100 Slimness of screen 6 6 9 17 42 20 100 Size (inches) 14 17 42 10 10 7 100 Color 7 12 15 41 13 12 100 Eye protection 5 7 10 11 19 48 100 Total 100 100 100 100 100 100 600 INFERENCE: From the above table, it is inferred that majority of the respondents preferred picture quality which is the major feature considered while buying TV, next sound effect, then size, followed by color, succeeding slimness and eye protection . CHART: 2.3.31 CHART SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY TV

77

TABLE: 2.3.32 TABLE SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY AC

78

Features I II III Cooling system 48 19 15 Size 6 7 13 Sleep function 5 8 8 Energy efficiency 20 45 11 Power consumption 12 12 43 Auto turn off 9 9 10 Total 100 100 100 INFERENCE: From the above table, it is inferred that

IV 7 50 12 9 14 8 100

V 8 12 45 8 9 18 100

VI 3 12 22 7 10 46 100

Total 100 100 100 100 100 100 600

majority of the respondents

preferred cooling system which is the major feature considered while buying AC, next energy efficiency, then power consumption, followed by size, succeeding sleep function and auto turn off. CHART: 2.3.32 CHART SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY AC

TABLE: 2.3.33 TABLE SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY REFRIGERATOR

79

Sources Capacity Power consumption Color Cooling system Storage place Energy efficiency Total INFERENCE: From the above

I 5 20 9 48 12 6 100

II 8 45 9 19 12 7 100

III 8 11 10 15 43 13 100

IV 12 9 8 7 14 50 100

V 45 8 18 8 9 12 100

VI 22 7 46 3 10 12 100

Total 100 100 100 100 100 100 600

table, it is inferred that majority of the respondents

preferred cooling system which is the major feature considered while buying refrigerator, next power consumption, then storage place, followed by energy consumption, succeeding capacity and color. CHART: 2.3.33 CHART SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY REFRIGERATOR

TABLE: 2.3.34 TABLE SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY MIXI

80

Sources Power consumption Energy efficiency Fast grinding Noise No. of jars Color Total INFERENCE: From the above

I

II

III

IV

V

VI

12 22 50 5 7 4

22 44 11 5 8 10

38 14 13 5 20 10

10 9 8 13 40 20

8 6 6 56 13 11

10 5 12 16 12 45

100

100

100

100

100

100

Total 100 100 100 100 100 100 600

table, it is inferred that majority of the respondents

preferred fast grinding which is the major feature considered while buying mixi, next energy efficiency, then power consumption, followed by number of jars, succeeding noise and color. CHART: 2.3.34 CHART SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY MIXI

TABLE: 2.3.35 TABLE SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY GRINDER

Sources Power consumption Energy efficiency Stone model quality Fast grinding Noise Compact Total

I 14 18 6 50 7 5 100

II 17 41 6 17 12 7 100

III 42 13 9 11 15 10 100

IV 10 11 17 10 41 11 100

V 10 9 42 7 13 19 100

VI 7 8 20 5 12 48 100

Total 100 100 100 100 100 100 600

81

INFERENCE: From the above table, it is inferred that majority of the respondents preferred fast grinding which is the major feature considered while buying grinder, next energy efficiency, then power consumption, followed by noise, succeeding stone model and compact. CHART: 2.3.35 CHART SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY GRINDER

TABLE: 2.3.36 TABLE SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY WASHING MACHINE

82

Sources I II Energy efficiency 5 8 Power consumption 20 45 Washing & Soak time 9 9 Options & size 48 19 Hot, cold & Economic wash 12 12 Drum quality 6 7 Total 100 100 INFERENCE: From the above table, it is inferred

III 8 11 10 15 43 13 100

IV 12 9 8 7 14 50 100

V 45 8 18 8 9 12 100

VI 22 7 46 3 10 12 100

Total 100 100 100 100 100 100 600

that majority of the respondents

preferred options which is the major feature considered while buying washing machine, next power consumption, then hot, cold and economic wash, followed by drum quality, succeeding energy efficiency and washing and soak time. CHART: 2.3.36 CHART SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY WASHING MACHINE

TABLE: 2.3.37 TABLE SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY MICRO OVEN

83

Features I II III IV V VI Total 12 22 38 10 8 10 Power consumption 100 22 44 14 9 6 5 Options 100 50 11 13 8 6 12 Quick cook 100 4 10 10 20 11 45 Hygiene 100 7 8 20 40 13 12 Energy consumption 100 5 5 5 13 56 16 Space 100 Total 100 100 100 100 100 100 600 INFERENCE: From the above table, it is inferred that majority of the respondents preferred quick cook which is the major feature considered while buying micro oven, next options, then power consumption, followed by energy consumption, succeeding space and hygiene. CHART: 2.3.37 CHART SHOWING PREFERENCES OF THE FEATURES THAT WILL BE CONSIDERED BY THE CONSUMER WHEN THEY BUY MICRO OVEN

TABLE: 2.3.38 TABLE SHOWING FACTORS DO YOU CONSIDER WHEN YOU BUY ELECTRONIC HOME APPLIANCES

Factors

No. of respondents

Percentage

Brand

23

23

Price

21

21

Quality

36

36

84

Offers / discounts

13

13

Utility

7

7

Service

5

5

Total

100

100

INFERENCE: From the above table, it is inferred that 36% of the respondents said that they consider quality while buying home appliances, 23% of them said it is brand, 21% of them said it is price, 13% of them said it is offers and discounts, 7% of them said it is for utility and 5% of them said it is service. CHART: 2.3.38 CHART SHOWING FACTORS DO YOU CONSIDER WHEN YOU BUY ELECTRONIC HOME APPLIANCES

CHI SQUARE AIM: TO FIND THE RELATIONSHIP BETWEEN INCOME LEVEL AND SPOT DECISION/ PREPLANNED BUYING DECISION AMONG EMPLOYED AND BUSINESS PEOPLE

Null hypothesis (Ho)

: There is no significant difference between income level and spot decision/ preplanned buying decision among employed and

85

business people Alternative hypothesis( H1) : There is a significant difference between income level and spot decision/ preplanned buying decision among employed and business people

OBSERVED FREQUENCY:

TABLE: 2.3.39 Decision Spot decision

Well – planned decision

Income

Total

Below-5000

2

38

40

5001-10000

2

18

20

10001-15000

4

17

21

Above 15000

14

5

19

Total

22

78

100

EXPECTED FREQUENCY: Observed

Expected

frequency(O)

frequency(E)

2

O-E

(O-E)2

(O-E)2/E

8.36

-2.36

5.569

0.666

38

24.32

1.68

2.822

0.116

2

27.36

0.64

0.409

0.014

18

15.96

0.04

0.0016

0.0001

4

2.64

2.36

5.569

2.109

17

7.68

-1.68

2.822

0.367

86

14

8.64

-0.64

0.409

0.047

5

5.04

-0.04

0.0016

0.0003

TOTAL

Degree of freedom

=

3.3194

(r-1) (c-1) =

(4-1) (2-1)

=

(3) (1)

=

3

Table value (0.05) = 7.815 Calculated value = 3.3194 = 3.3194 < 7.815

(Calculated value < Table value)

INFERENCE: Since calculated value is lesser than table value, Ho is rejected. Therefore there is a significant difference between income level and spot decision/ preplanned buying decision among employed and business people.

CORRELATION AIM: TO FIND THE RELATIONSHIP BETWEEN SOURCES THAT INFLUENCE TO BUY ELECTRONIC HOME APPLIANCES AND FACTORS THAT IS CONSIDERED BY THE RESPONDENTS WHILE BUYING HOME APPLIANCES

X = Sources that influence to buy electronic home appliances Y = Factors that is considered by the respondents while buying electronic home appliances TABLE: 2.3.40 X

Y

X2

Y2

XY

87

58

23

3364

529

1334

13

21

169

441

273

8

36

64

1296

288

15

13

225

169

195

4

7

16

49

28

∑X = 100

∑Y = 100

∑X2 = 3838

∑Y2 = 2484

FORMULA:

N∑XY - (∑X) (∑Y)

r = √N∑X² - (∑X)2 √N∑Y² - (∑Y)2

CALCULATION: 5 * 2118 - 100 * 100

r = √ 5 * 3838 – (100)2 √5 * 2484 – (100)2

10590 - 10000 = √ 19190 – 10000 √12420 – 10000

590

∑XY = 2118

88 = 95.86 * 49.193

590 = 4715.6

=

0.13

INFERENCE: Hence the correlation value is POSITIVE; it is found that there is a relationship between the sources that influence to buy electronic home appliances and factors that is considered by the respondents while buying electronic home appliances.

CALCULATION OF CONFIDENCE LIMITS INTERVAL ESTIMATION AIM: TO FIND OUT THE AWARENESS OF RESPONDENTS TOWARDS ELECTRONIC HOME APPLIANCES TABLE: 2.3.41

Level of significance No. of respondents Percentage Yes 76 76% No 24 24% Total 100 100% Interval estimation for the population proportion at 95% confidence level Formula:

89

P + 1.96 (standard error),

P - 1.96 (standard error), Standard error = √pq/n

Calculation: P = No. of YES Q = No. of NO P = 76/100

q = 1-p

= 0.76

= 1-0.76 = 0.24

Standard error = √pq/n = √ (0.76 * 0.24)/100 = 0.042 = 0.76 + 1.96(0.0427) = (0.8436, 0.6763) = (67.63% - 84.36%) INFERENCE: At 95% confidence interval, the respondent’s awareness of electronic home appliances lies between (67.63% - 84.36%)

WEIGHTED AVERAGE METHOD - TV TABLE: 2.3.42

Rank

Weighted Rank

Particulars

I

II

III

IV

V

VI

average

Picture quality

50

17

11

10

7

5

444

I

Sound effect

18

41

13

11

9

8

398

II

Slimness of screen

6

6

9

17

42

20

201

IV

Size (inches)

14

17

42

10

10

7

264

III

Color

7

12

15

41

13

12

219

V

90

Eye protection

5

7

10

11

19

48

173

VI

INFERENCE: From the above table, it is inferred that the respondents ranked first for the picture quality feature which they like to consider while buying TV, second rank is given to sound effect, ranked third for size, fourth for slimness, fifth for color and last rank is given to eye protection.

WEIGHTED AVERAGE METHOD – AC TABLE: 2.3.43

Rank

Weighted Rank

Particulars

I

II

III

IV

V

VI

average

Cooling system

48

19

15

7

8

3

478

I

Size

6

7

13

50

12

12

313

IV

Sleep function

5

8

8

12

45

22

271

V

Energy efficiency Power

20

45

11

9

8

7

416

II

12

12

43

14

9

10

354

III

consumption

91

Auto turn off

9

9

10

8

18

46

197

VI

INFERENCE: From the above table, it is inferred that the respondents ranked first for the cooling system feature which they like to consider while buying AC, second rank is given to energy efficiency, ranked third for power consumption, fourth for size, fifth for sleep function and last rank is given to auto turn off.

WEIGHTED AVERAGE METHOD – REFRIGERATOR TABLE: 2.3.44

Rank

Weighted Rank

Particulars

I

II

III

IV

V

VI

average

Capacity Power

5

8

8

12

45

22

285

V

20

45

11

9

8

7

411

II

9

9

10

8

18

46

203

VI

Cooling system

48

19

15

7

8

3

463

I

Storage place

12

12

43

14

9

10

381

III

consumption Color

92

Energy efficiency

6

7

13

50

12

12

344

IV

INFERENCE: From the above table, it is inferred that the respondents ranked first for the cooling system feature which they like to consider while buying Refrigerator, second rank is given to power consumption, ranked third for storage place, fourth for energy efficiency, fifth for capacity and last rank is given to color.

WEIGHTED AVERAGE METHOD – MIXI TABLE: 2.3.45

Rank

Weighted Rank

Particulars

I

II

III

IV

V

VI

average

Power consumption

12

22

38

10

8

10

389

III

Energy efficiency

22

44

14

9

6

5

455

II

Fast grinding

50

11

13

8

6

12

497

I

Noise

5

5

5

13

56

16

276

V

No. of jars

7

8

20

40

13

12

316

IV

Color

4

10

10

20

11

45

220

VI

93

INFERENCE: From the above table, it is inferred that the respondents ranked first for the fast grinding feature which they like to consider while buying Mixi, second rank is given to energy efficiency, ranked third for power consumption, fourth for number of jars, fifth for noise and last rank is given to color.

WEIGHTED AVERAGE METHOD – GRINDER TABLE: 2.3.46

Rank

Weighted Rank

Particulars

I

II

III

IV

V

VI

average

Power consumption

14

17

42

10

10

7

374

III

Energy efficiency

18

41

13

11

9

8

423

II

Stone model & quality

6

6

9

17

42

20

279

V

Fast grinding

50

17

11

10

7

5

481

I

94

Noise

7

12

15

41

13

12

315

IV

Compact

5

7

10

11

19

48

245

VI

INFERENCE: From the above table, it is inferred that the respondents ranked first for the fast grinding feature which they like to consider while buying grinder, second rank is given to energy efficiency, ranked third for power consumption, fourth for noise, fifth for stone quality and last rank is given to compact.

WEIGHTED AVERAGE METHOD – WASHING MACHINE TABLE: 2.3.47

Rank

Weighted Rank

Particulars

I

II

III

IV

V

VI

average

Energy efficiency

5

8

8

12

45

22

278

V

Power consumption

20

45

11

9

8

7

456

II

Washing & Soak time

9

9

10

8

18

46

216

VI

Options &size

48

19

15

7

8

3

513

I

95

Hot, cold & Economic wash Drum quality

12

12

43

14

9

10

366

III

6

7

13

50

12

12

310

IV

INFERENCE: From the above table, it is inferred that the respondents ranked first for the options and size feature which they like to consider while buying washing machine, second rank is given to power consumption, ranked third for hot, cold and economic wash, fourth for washing and soak time, fifth for energy efficiency and last rank is given to drum quality.

WEIGHTED AVERAGE METHOD – MICRO OVEN TABLE: 2.3.48

Rank

Weighted Rank

Particulars

I

II

III

IV

V

VI

average

Power consumption

12

22

38

10

8

10

412

III

Options

22

44

14

9

6

5

498

II

Quick cook

50

11

13

8

6

12

516

I

Hygiene

4

10

10

20

11

45

234

VI

96

Energy consumption

7

8

20

40

13

12

366

IV

Space

5

5

5

13

56

16

285

V

INFERENCE: From the above table, it is inferred that the respondents ranked first for the quick cook feature which they like to consider while buying micro oven, second rank is given to options, ranked third for power consumption, fourth for energy efficiency, fifth for space and last rank is given to hygiene.

CHAPTER – III 3.1. FINDINGS  50% of the respondents are male and 505 are female.  Majority (60%) of the respondents are business people.  Majority (60%) of the respondent’s family size is less than five.  Majority (40%) of the respondents are earning a monthly income of less than 5000.

97

 Majority (76%) of the respondents are aware of electronic home appliances a  Nearly 80% of the respondents save money to purchase house hold appliances. It is also clear the table that both male and female equally save to purchase the appliances. This is contrary to the belief that only female will be very keen to save money in order to purchase any household appliances. This is due to the fact that it is female who usually look after the house and also most of the house hold items are being ultimately used by the female in the house.  Majority of the respondents prefer to buy home appliances only by paying cash. According to these respondents, they can purchase the home appliances at a comparatively lower price when they pay the cash immediately. Credit purchase will ultimately lead to increase in the price of the goods. Also they will have to pay interest for the hire purchase and installment purchase. It was also evident that only 60 percent of the male respondents purchase the home appliances by paying immediate cash. Where as, in the case of female, more than 75 percent of the respondents purchase home appliances by paying cash.

 Majority (70%) of the respondents buy home appliances for their ultimate utility and only 30 percent respondents say that they purchase a particular home appliance as a prestige issue.  More than 80% of the respondents prefer to buy only Indian made appliances and only a little less than 20% respondent wish to buy foreign made appliances. According to the respondents the Indian made articles are superior in all aspects when compared with foreign appliances. Also the availability of spare parts is another important reason as to why consumers prefer Indian made articles.

98

 Majority (80%) of the respondents, both male and female, purchase home appliances my making a preplanning. According to these respondents, with limited income, they cannot take spot decisions to purchase home appliances just by visiting the shop. These respondents say that they make preplan as the purchase of a particular home appliance and save the required money and wait for the right time to purchase the item.  Majority of the respondents both employed and business people save money for the purpose of purchasing home appliances. According to the majority of the respondents, they save money for the purpose of buying a specific home appliance. These respondents say that saving money enables them to purchase the item without any difficulty.  Majority of the employed people purchases the home appliances just for utility rather than as a prestige. On the other hand, in the case of business people the story is entirely different. According to the business people their status is determined by the way they lead their life and the usage of various home appliances in their house. So they purchase a particular home appliance just to show it to others that they are having the particular item.  More than 81% of the respondents both employed and business; prefer to purchase only Indian made home appliances. There is a general awareness among all sections of the people that the quality of Indian goods is equally good when compared with foreign made articles.  Majority (80%) of the respondents both employed and business people make a through planning before purchasing home appliances.  90% of the respondents who are having a family size of less than 5 are able to save money for purchasing home appliances. It is quite natural that those with small family will find it very easy to save money when

99

compared with big family. This is the reason as to why many people want to have a small family  Majority of respondents who are having a family size of less than 5, purchase home appliance for cash. It is natural that when the family size is low, they are having the possibility to go for cash purchases as they have disposable income. With the increase in the family size, they have to spend a lot of money to satisfy the family needs which ultimately leads to financial crunch most of the times.  Another interesting finding of the study was that those with small family purchase the particular home appliances just for the sake of prestige. The reason is small family will generally have disposable money to spare for purchasing various items. So they spend the surplus money for purchasing the articles even though they may not require the particular item for their house  The study also revealed that irrespective of the size of the family more than 3/4th of respondents prefer to purchase only home made appliances for their house. According to most of the respondents Indian made goods are having a world class quality.  The study found that nearly 80% of the respondents who are having a family size of less than five are able to take spot decisions to purchase home appliances. The main reason for this is, as already discussed; those with small family will usually have disposable income which they can spend at any time. So whenever they consider necessary for a particular home appliance they will make immediate purchases as money is not at all a matter for them. In the case of respondents with big family they cannot take spot decision to purchase a particular home appliance because money will always be a constraint for them.

100

 The study also showed that more than 90% of those respondents whose monthly income is less than Rs.5000 saves money to purchase home appliances and it is 75% in the case of respondents having an income range of Rs.5001 to Rs.10000. It is quite natural that people with low income cannot purchase any thing at any time. Their income will not permit them to do so. They will have to plan and consider various things before purchasing a single item.  Those respondents whose income level is more than Rs.10000 save comparatively less to purchase the home appliances.  It is also found that those respondents whose income level is less than Rs.5000 make cash purchase and credit purchase equally. In the case of respondents whose income level is between Rs.5001 and Rs.10000, 25% respondents make cash purchase and another 75% make credit purchase. It is interesting to note that more than 80% of those respondents whose income level is more than Rs.10000, they make only cash purchase of home appliances  It is evident from the findings of the study that more than 3/4 th of those respondents, whose income range is below Rs.10000, purchase home appliances for real utility and not for prestige. Whereas, in the case of those respondents whose income level is more than Rs.10000, they purchase many home appliances not for the purpose of real utility, but only for the sake of prestige.  It is also found that more than 85 percent of the respondents whose income level is more than less than Rs.15000 prefer to buy only Indian made home appliances. Only the respondents whose income level is more than Rs.15000 prefer to purchase foreign made home appliances.  The findings showed that more than 80% of those respondents whose income level is more than Rs.15000 prefer to purchase home appliances only after careful preplanning. According to them they cannot take spot

101

decision to purchase a home appliance as their financial position will not permit them to do so. On the other hand, those respondents whose monthly income is more than Rs.15000 say that they take spot decision to purchase the home appliances whenever there is a need.  Another interesting finding of the study was that nearly 50% of the respondents say that husband and wife together take decision on purchase of electronic household appliances. One-fourth of the respondents say that they consult others before taking decision on purchasing home appliances  100% of the respondents are having TV, mixi and grinder in their houses, 97% are having refrigerator in their houses, 76% of the respondents are having washing machine, 60% of the respondents are having micro oven and 54% are having air conditioner  Nearly 50% of the respondents consult their friends before purchasing household appliances.  Nearly 50% of the respondents give preference to their friends and the same percentage of respondents give preference to the neighbors at the time of actual purchase of household appliances.  58% of the respondents said that TV is the major media that attracts consumer to buy home appliances.  Majority of the respondents preferred picture quality which is the major feature considered while buying TV.  Majority of the respondent’s preferred cooling system which is the major feature considered while buying AC.  Majority of the respondent’s preferred cooling system which is the major feature considered while buying refrigerator.  Majority of the respondents preferred fast grinding which the major feature is considered while buying mixi.

102

 Majority of the respondents preferred fast grinding which the major feature is considered while buying grinder. 

Majority of the respondents preferred options which are the major feature considered while buying washing machine.

 Majority of the respondent’s preferred quick cook which is the major feature considered while buying micro oven.  36% of the respondents said that they consider quality while buying home appliances.  Therefore there is a significant difference between income level and spot decision/ preplanned buying decision among employed and business people.  There is a relationship between the sources that influence to buy electronic home appliances and factors that is considered by the respondents while buying electronic home appliances.  The respondent’s awareness of electronic home appliances lies between (67.63% - 84.36%).  Respondents ranked first for the picture quality feature which they like to consider while buying TV.  The respondents ranked first for the cooling system feature which they like to consider while buying AC.  Respondents ranked first for the cooling system feature which they like to consider while buying Refrigerator.  Respondents ranked first for the fast grinding feature which they like to consider while buying Mixi.  Respondents ranked first for the fast grinding feature which they like to consider while buying grinder.

103

 Respondents ranked first for the options and size feature which they like to consider while buying washing machine.  Respondents ranked first for the quick cook feature which they like to consider while buying micro oven.

3.2. SUGGESSIONS:  The dealers should try to inform potential customers to various media like newspaper and local cable channel to increase the sale of product.  Special festival gifts and offers should be offered by retailers.  The companies should mainly focus on prices and maintain reasonable prices to combat competition.  Developing product according to consumer choices will lead to increase in market share

3.3. CONCLUSION Buyer Behavior: "Culture" is a Money Making Scam. Today’s market is characterized by highly competitive organizations which are all competing for consumer’s loyalty. Strategies are carefully planned and executed by the firms to improve the buying behavior of consumers towards electronic home

104

appliances. It is important to identify the unique attributes and advantages of the firm’s offer to the marketplace, while developing a strategy to leverage the firm's strengths and opportunities The field of consumer research regarding buying behavior is mainly focus on two questions i.e. how consumer is taking decision and what factors that influence consumer to buy electronic home appliances. According to this study it is found that consumer buying behaviour towards electronic home appliances is probing the market. The reason for this is rising income levels and increasing affordability, fuelling consumerism and growth in demand for inspirational goods, change in perception of consumer goods as basic necessities as opposed to luxuries largely driven by increased awareness and advertising, rationalizing of prices by key players due to a conductive tariff policy the government and increasing demand for technology driven replacement of consumer goods and household appliance. The marketing concept that the firm must adapt to upsurge the sale of their product should be focused on the customer’s needs and buying behaviour of them before developing the product; aligning all functions of the company to focus on those needs; realizing a profit by successfully satisfying customer needs over the long-term. The researcher after an exhaustive analysis of the study made recommendations to the firm to how to improve the sales by understating the buying behaviour of consumers

Introduction - Conclusion c618

Overview 3e4r5l

More details w3441

Related Documents 3m3m1z

Introduction - Conclusion c618

Introduction And Conclusion 2s452v

Introduction And Conclusion 2s452v

Introduction, Developpement Conclusion 71t1e

Conclusion 404o56

Conclusion 404o56

More Documents from "Mani Maran" 6d3b5s

Introduction - Conclusion c618

Material Properties And Chemical Composition 172h2a

Acorn Catalogue-fastener 4u3v27

Cws 301uv

Ba 7064 Port And Terminal Mgt Unit I-1 1t2h28