24485849 Analysis of Consumer Behavior

8/9/2019 24485849 Analysis of Consumer Behavior

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Analysis of Consumer BehaviorAnalysis of Consumer Behaviorwhile purchasing Consumerwhile purchasing Consumer

DurableDurable

Presented by:Presented by:

Krunal PatelKrunal PatelRoll No:32Roll No:32


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Sources of data collectionSources of data collection

Primary sourcesPrimary sources

QuestionnaireQuestionnaire

Secondary sourcesSecondary sources

InternetInternet

News papers & magazinesNews papers & magazines Reference booksReference books


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Research designResearch design

Sample areaSample area

Ahmedabad and GandhinagarAhmedabad and Gandhinagar

Target sampleTarget sample

consumers of Ahmedabad and Gandhinagarconsumers of Ahmedabad and Gandhinagar

Sample sizeSample size

200 respondents (consumers)200 respondents (consumers)

Methods usedMethods used Convenience SamplingConvenience Sampling which is a techniquewhich is a technique

of Non Probability Sampling.of Non Probability Sampling.


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LimitationsLimitations

Reluctance on the part of the respondentsReluctance on the part of the respondentsto provide exact details.to provide exact details.

Lack of sufficient funds to cover the wholeLack of sufficient funds to cover the whole

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

restricted to Ahmedabad and Gandhinagarrestricted to Ahmedabad and GandhinagarCity only.City only.

There were only five major durablesThere were only five major durablesconsidered in this projectconsidered in this project


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Industry ProfileIndustry Profile

ProductsProducts

TelevisionTelevision

RefrigeratorRefrigerator Washing machineWashing machine

Air conditionerAir conditioner

Music systemMusic system


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

Product wise EarningProduct wise Earning

Television:colourTelevision:colour--Rs.91bn&B&WRs.91bn&B&W--Rs.5bnRs.5bn

Refrigerator:Rs.39bnRefrigerator:Rs.39bn Air conditioner:Rs.24bnAir conditioner:Rs.24bn

Washing machine:Rs.11bnWashing machine:Rs.11bn


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Industry Driving factorsIndustry Driving factors

Low price to push volumeLow price to push volume

Increasing number of replacement buyersIncreasing number of replacement buyers

aggressive advertising with innovativeaggressive advertising with innovativemarketing schemesmarketing schemes

Easy availability of finance (installment)Easy availability of finance (installment)

future market growth is likely to comefuture market growth is likely to comefrom small towns and SEC (Socialfrom small towns and SEC (SocialEconomic Class)Economic Class)


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KEY ISSUESKEY ISSUES

High competition led to price erosion overHigh competition led to price erosion overthe pastthe past

Increased consumer choice has reducedIncreased consumer choice has reducedbrand loyaltybrand loyalty

performance of players in the industry hasperformance of players in the industry hasbeen characterized by declining pricebeen characterized by declining price

realizations and shrinking operating & netrealizations and shrinking operating & netmarginsmargins

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


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Major playersMajor players

LGLG SamsungSamsung BPLBPL

WhirlpoolWhirlpool SonySony National PanasonicNational Panasonic GodrejGodrej

VideoconVideocon OnidaOnida PhilipsPhilips


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Consumer BehaviorConsumer Behavior ConsumerConsumer BehaviorBehavior isis defineddefined asas thethe behaviorbehavior

thatthat consumersconsumers displaydisplay inin searchingsearching for,for,purchasing,purchasing, using,using, evaluatingevaluating andand disposingdisposing ofofproductsproducts andand servicesservices thatthat theythey expectexpect willwill satisfysatisfy

theirtheir needsneeds ConsumerConsumer behaviorbehavior focusesfocuses onon howhow individualsindividuals

makesmakes decisionsdecisions toto spendspend theirtheir availableavailable resourcesresourceslikelike time,time, moneymoney andand efforteffort onon consumptionconsumption relatedrelated

itemsitems.. ThatThat includesincludes what,what, why,why, when,when, wherewhere andand howhow

oftenoften theythey buybuy it,it, howhow theythey evaluateevaluate itit afterafter thethepurchasepurchase andand thethe impactimpact ofof suchsuch evaluationsevaluations onon

futurefuture purchasepurchase andand howhow theythey disposedispose ofof it it..


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79

29

73

19 Cash

Cheque

Credit Card

Debit Card

Which mode of payment do youWhich mode of payment do youprefer?prefer?


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You shop for electronics items mostlyYou shop for electronics items mostlyduring.during.

137

8

42

13Festivals

Occasions

Seasonal

Any Time


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39

43

47

33

28 10

Brand Name

Quality

Price

Schemes

Features

After sales Services

which factors do you consider whilewhich factors do you consider whilepurchasing electronics items?purchasing electronics items?


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If yes in above question then whichIf yes in above question then whichtype of schemestype of schemes

7

2

3

56

10

Pric i co n

Gif

L cky raw

Bun ling Off r

Scratc ard

Exc ang Off r


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From where do you gather theFrom where do you gather theinformation?information?

56

54149

12

37

Television

Radio

Newspaper

Retailer

POP

Friends & Peers


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How many visits of showroom do youHow many visits of showroom do youmake before buying?make before buying?

8 25

153

14 1

2

3

More than 3


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

54

112

267

Less than week

Week-Fortnight

Fortnight-Month

More than Month


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FindingsFindings

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

The peak period of the year is third quarter(octThe peak period of the year is third quarter(oct--

dec) which contains many festivals like Diwali,dec) which contains many festivals like Diwali,Christmas etc.Christmas etc.

In Consumer Durables there is a high level ofIn Consumer Durables there is a high level ofassociation of feelings and high involvementassociation of feelings and high involvement

during purchaseduring purchase Price and Quality of the product are the mainPrice and Quality of the product are the main

considering factors at the time of purchaseconsidering factors at the time of purchase


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Television is the main source of gettingTelevision is the main source of gettinginformation about a product.information about a product.

Price discount and Exchange offers are the mostPrice discount and Exchange offers are the mostpopular sales promotion activities. There is anpopular sales promotion activities. There is anincreasing number of replacement buyers.increasing number of replacement buyers.

People prefer to purchase through cash or creditPeople prefer to purchase through cash or creditcards.cards.

Installments are also the popular way to achieveInstallments are also the popular way to achievethe sales volumes.the sales volumes.

Most of the people visit the showroom thriceMost of the people visit the showroom thricebefore any purchase and it takes a week tobefore any purchase and it takes a week tofortnight time for purchase.fortnight time for purchase.


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NEED

RECOGNITIO

N

INFORMATION

SEARCH

EVALUATION OF

ALTERNATIVES

PURCHASE

DECISION

POSTPURCHASE

BEHAVIOR

Consumer follows a particular path for any purchase

which is known as Decision Making process which is

shown below:


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

product so companies should try to achieveproduct so companies should try to achieveeconomies of scale and learning curves witheconomies of scale and learning curves withhigher efficiency.higher efficiency.

There are still some areas which are underThere are still some areas which are underdeveloped on which companies should try todeveloped on which companies should try toconcentrate and develop some penetratingconcentrate and develop some penetrating

strategies.strategies. Giving installments at lower or zero percentGiving installments at lower or zero percent

interest rate would help to increase salesinterest rate would help to increase salesvolumes.volumes.


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SUGGESTIONS (cont.)SUGGESTIONS (cont.)

Give advertisements associating feelingsGive advertisements associating feelingswith it to position the brand name.with it to position the brand name.

Sales promotions affect the sales volumeSales promotions affect the sales volumeso giving effective sales promotions willso giving effective sales promotions willlead to increase in sales volumes.lead to increase in sales volumes.

Price discount and exchange offers are thePrice discount and exchange offers are the

most effective schemes so companiesmost effective schemes so companiesshould concentrate on it instead of othershould concentrate on it instead of otherschemes which are less effective.schemes which are less effective.


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ThankYouThankYou

24485849 Analysis of Consumer Behavior

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