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The Niceties of Consumer Behaviour in purchasing Home Appliances in India

Kameswara Rao PorankiProfessor in Department of Marketing, FAFS, Al Baha University, Saudi Arabia (KSA)

Email: kamesh_p2001@yahoo.com & kamesh_p2001@rediffmail.com&

Mohammed Abul KhairAssociate Professor in Department of Marketing, FAFS, Al Baha University, Saudi Arabia

Email: mohammed.abulkhair@gmail.com&

Elrayah Mohammed Ishag OsmanAssociate Professor in FAFS, University, Saudi ArabiaAl Baha

Email: drelrayah@gmail.com

Abstract

The striking fact in today's globalized economy of India many marketers have zeroing on the targetmarkets by understanding the consumer behavior as a top priority. In order to survive in the stringentcompetitive market of India many home appliance companies are devising their strategies to attractthe present and potential consumers. As India is marching ahead with the liberalization and

globalization policy measures by the government, many MNCs are putting their all out efforts tocapture the market share in India. Also, as the consumers in India are become more educated andrealistic in their specific brand purchase based on their fair assessment of the companies due to theirquality consciousness. Hence, Indians are buying better quality home appliances for their use bylooking into various alternatives and analyzing the companies for better quality, low price, durability,after sales service and warranty offered by the companies. The researchers of this paper have focused

on the consumer behaviour of the potential consumers of these home appliances in Visakhapatnam, Andhra Pradesh, India.

Keywords: White goods, Home appliances and Consumer Behaviour etc.

Originality/value: In this research paper the Niceties of Consumer Behaviour in purchasingHome Appliances in India is conducted at Visakhapatnam, Andhra Pradesh, India.Paper type: Research paper

Introduction

It is rightly pointed out that developing superior consumer marketing strategies relies upon many psychological forces. The below Figure-01 tells us that trained marketers are conversant with a myriadof the methods used to master consumer marketing in areas such as:

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Figure-01: Psychology of Consumer Behaviour

Source: http://www.launchengineering.com/Consumer_Marketing.htm

Motivation: Need hierarchy, Interdependency, Frustration, Projection are studied

Perception: Sensation & Threshold, Perceptual organisation, selection & interpretation, Imagery,Positioning, Perceived Risk are important.

Learning: Conditioning, experience, cognition, reinforcement, discrimination, attitudes, decision-making, brand loyalty are the variables.

Personality : Traits, brand usage, Acceptance, segmentation, repositioning, promotions managementare identified.

Attitudes: Action-Tendency, exposure, conditioning, interpersonal influences, cognitive dissonance,ego-defensive function, association.

Communications: Types, audience, source, medium, message, integration, Group Dynamics &Consumer Reference Groups: Group dynamics. Consumer relevance, family life cycle, influencers &influences are important.

Opinion leadership : Dynamics, measurement, profile, overlap, communication flow, stimulation, promotions management, and group opinion & group opinion leaders can be used.

Social class & culture: Core values, implications, management, sub-cultures as market segments,cross-cultural consumer analysis are useful.

Diffusion of Innovation: Adoption & adoptive process, barriers, characteristics are important.

Cons umer Decision Making: Economic consumer, passive consumer, problem-solving consumer,input-process-output are dependent on the above variables.Comprehensive Models of Consumer Behaviour : Nicosia Model, Howard Sheth Model, Egel Kollat

Blackwell Model, Family decision making model are the standard models of consumer behaiour.

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Literature ReviewWe may understood that the Consumer behaviour focuses on how individuals make decisions to spendtheir available resources (time, money, effort) on consumption-related items that includes what they

buy, why they buy, when they buy it, where they buy it, how often they buy it, how often they use it,how they evaluate it after the purchase and the impact of such evaluations on future purchases, and

how they dispose of it. According to the researchers like Blackwell, the Consumer behaviour isdefined as a combination of emotional, mental and physical activity of an individual for purchase anduse of goods and services for a demand or need. Consumer behaviour is a field of study concentratingon consumer activities (Rogers D. Blackwell). Also, Blackwell propounds that the “consumer”includes both personal consumers and business, industrial, organizational consumers. According toKotler and Armstrong (2001), consumer buying behaviour refers to the buying behaviour of theindividuals and households who buy the goods and services for personal consumption as well as theconsumption of their friends. It is interesting to note that there are many components, which influenceconsumer behaviour namely: cultural, social, personal and psychological. In the home appliances,durable goods are those which don’t wear out quickly, yielding utility over time rather than at once.There are some examples of consumer durable goods include electronic equipment, home furnishingsand fixtures, photographic equipment, leisure equipment and kitchen appliances. Some otherresearchers have further classified as white goods, Brown goods and Consumer Electronics. As per theresearchers like (Janki & Santhi (2013) in their study analyses customer response to the marketingstimuli of home appliances and found that education and income of the respondents are the two socio-economic variables which have significant association in all the stages which the buyers undergo while

purchasing home appliances. Another researcher, Rajput et al. (2012) in their research found positiverelationship between price and buying behaviour and negative relationship between quality and buying

behaviour in Pakistan. They found consumer as price sensitive so they are more price conscious ratherthan quality. An Indian researcher, Vyas (2010) in his research found after sales service as importantvariable in purchase of durables. Nowadays manufacturers are paying attention more towards

providing after sales services to the consumer to give immense satisfaction to the consumers. We maywitness in the present globalised economic scenario, it brought different cultures closer; now people

behave and consume in more similar manner than previous decades. Consumer society has become aninteresting topic for research works from different activities, which attempt to understand why peopletry to identify themselves through consumption. This has results in an increase in the number andvariety of technological products is one of the reasons behind the interest in product experience (Demiret al., 2006). The consumers have the product experience has three components: aesthetic experience,experience of meaning and emotional experience (Desmet and Hekkert, 2007). It focuses to know themain purpose of products is to satisfy consumers’ needs and desires. But nowadays, products mustsatisfy beyond the functional and utilitarian needs of consumers. The consumer emotions enrich ourdaily life, and hence, a new function for products is emerging, they must relate to consumers

emotionally to satisfy their emotional appeals. In a doctoral thesis Poul (2001) opined that advertisingfills the “consumer information gap” but the specific meanings attributed to advertising should beviewed from different angles. He believed that based on this study, advertisers could interpret howconsumers form attitudes towards the advertisement and for their brands. The prevalent beliefaccording to Cramphom (1996) that successful advertising represents successful communication withconsumers. It was known that consumers’ evaluation and selection of major household appliancesinvolve various attributes, which impact on the environment in different ways. As per the newresearcher Chui, it was found that consumer prefers to have a price and quality rather than technicalaspects in durable goods (Chui et al. 2006). It is very important to note that the Customer Satisfactionalso to be studied while making assessment of consumer behaviour. So, the customer satisfaction is ameasure of how products and services supplied by a company meet or surpass customer expectation

(Kameswara Rao Poranki, Yusuf Perwej and Asif Perwej, January 2015). The authors in their research paper has opined that (Kameswara Rao Poranki, Mohammed Abul Khair and Abdulaziz KhalidAlotaibi, April 2014) customer satisfaction through standards tools of research however it wasunderstood that Customer satisfaction is a measure of how products and services supplied by a

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company. According to the first author of this research paper (Kameswara Rao Poranki 2014 and2015) has defined as "the number of customers, or percentage of total customers, whose reportedexperience with a firm, its products, or its services exceeds specified satisfaction goals in the presentglobalized economic scenario. Also, Vyas (2010) in his research found after sales service as importantvariable in purchase of durables. The factors influencing buying decision for example a television was

explained by Das et al. (2008) that price, quality, advertisement, recommendation from near and dearsetc. are very important factors. These researchers also stated that that the consumers’ perception on

buying color television is mostly affected by the factors such as “structural add-ons, Word of mouth,Technical features, Durability and Ground reality. In his research, Fukuyama (1992) argues that in theera of the global triumph of capitalism, consumer goods begin to play a key role in satisfying thehuman desire for recognition. Therefore, the role of brands and products becomes more important andmust be studied from different views in different markets. Consumers give identity to brands and

products. Brand forms in consumer’s mind by brands-related experiences and their emotions.Marketers perceive brands as business and consumers perceive brands as an image. Finally, it isnoteworthy to mention that consumer may be wrong about their beliefs or perception about a productor brand, but they have no misconception about their emotional responses toward them(Chaudhuri,2006). However, emotion is not the only influential factor in consumer purchase behavior;there are other factors which involve emotion both directly and indirectly.

Research Methodology

The researchers have taken a sample of 253 respondents of which 115 were men and 138 were womenin Visakhapatnam, Andhra Pradesh, India. The sampling unit of the study was all users of homeAppliances in the age group of 25-50 yrs. of standard income group and primary and secondary datawas collected. We have used Frequency analysis and ranking method was used to analyze theinformation given by respondents. The researchers have used Well-structured questionnaire wasframed and used for collection of data by contacting them in person.

Objectives1. To assess the Niceties of Consumer Behaviour in buying home appliances.2. To identify the information used by customers for decision making of branded of home

appliances.3. To understand the features for which the prospective consumers' views when they buy any

branded home appliances.4. To understand the consumer buying decision process

Hypotheses

1.

It was hypothesized that there is no significant relationship between demographics andconsumer behaviour.2. It was hypothesized that there is relationship between consumer behaviour and selection of

selective brand of Home Appliances.

ConclusionWe the researchers of this paper of the opinion that with the advent of high growth in consumermarkets due to flourished economic conditions in the present government of India and there is agrowing spending on consumer goods like home appliances. The researchers have conducted this studyat Visakhapatnam, Andhra Pradesh, India. As per this study, the researchers concluded that, people inVisakhapatnam city has relevant knowledge about varied brands of the Electronic Home Appliances.

The factors like factors like age, gender, marital status, qualification, occupation, income and familytype discerning the buying behavior of home appliances is based on this study the awareness level ofhome Electronic Home appliances are reasonable in this City. The respondents have the relevantknowledge on the renowned brands like Godrej, Whirlpool, LG, Samsung and other company brands.

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Based on grades and rankings given by respondents, the main factors involved in selecting homeappliances are price then brand name, then quality, then service and the last are the other offers given

by the retailer. Respondents are not much biased by retailer‘s information is key in this research.However, the media and advertising furnishes more necessary information when compare to othermedium of dissemination of information to the public. In the case of TV, respondents are influenced

by picture quality first, then sound, then screen quality, then size and color. And in the case ofrefrigerator, respondents are influenced by efficiency first, then capacity, then sturdy, then storagespace, and then aesthetic of the refrigerator. In the case of washing machine, respondents areinfluenced by efficiency first, then capacity, then sturdy, then storage space, and then aesthetic of theWashing Machine. As in the case of air cooler respondents are influenced by cooling capacity first,then efficiency then aesthetic. In the case of Microwave oven the respondents are influenced byheating capacity first, then grill fry and storage, then defrost, and then aesthetic of the microwaveoven. Finally, the researchers recommend the future researchers to conduct this kind of research inwider areas or cities in India to get plausible results.

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Thomson2) Boyle, E. (2006), “Understanding brands as experiential spaces: axiological implications for

marketing strategists”, Journal of Strategic Marketing, Vol. 14 No. 2, pp. 175-189.3) Chaudhuri, A. (2006), Emotion and Reason in Consumer Behavior, Elsevier Butterworth-

Heinemann, Oxford.4) Cramphorn, Michael F. (1996), “Where does your advertisement work?”, Journal of market

research society. Vol. 1 No. 3, pp. 35-535) Chiu, J., Chen, H., Tzeng, G., & Shyu, J. (2006). Marketing strategy based on customer

behavior for the LCD-TV. International Journal of Management and Decision Making, 7(2/30),143

6) Demir, E., Desmet, P. and Hekkert, P. (2006), “Experiential concepts in design research: a (nottoo) critical review”, in Karlsson, M.A., Desmet, P.M.A. and Van Erp, J. (Eds), Proceedings ofthe 5th Conference on Design and Emotion, Göteborg, Sweden.

7) Desmet, P.M.A. and Hekkert, P. (2007), “Framework of product experience”, InternationalJournal of Design, Vol. 1 No. 1, pp. 57-66.

8) Das, B., Mohanty, S., & Shil, N. C. (2008). Categorizing consumers buying behaviour: Afactor analysis in consumer durable market. International Journal of Business & Management,3(9), 147-156.

9) Emad Rahmanian Koshkaki , (2014),"The role of product and brand emotion in purchase behavior, a study in Iranian home appliance context", Journal of Asia Business Studies, Vol. 8

Iss 3 pp. 233 - 24810) Emad Rahmanian Koshkaki , (2014),"The role of product and brand emotion in purchase behavior, a study in Iranian home appliance context", Journal of Asia Business Studies, Vol. 8Iss 3 pp. 233 - 248

11) Fukuyama, F. (1992), The End of History and the Last Man, Penguin, London12) Janki, P., & Santhi, P. (2013). Marketing stimuli in purchasing of home appliances from

customer perspective. International Journal of Sales & Marketing Management, 3(2), 23-30.13) Kotler, P., & Armstrong, G. ( 2001): Principles of marketing, Prentice Hall,

London.LakshmanRajagopal.(2000): Development of the food attitude behavior opennessscale,Dissertation.

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'Competitive trends and Satisfaction levels of Customers of white goods in India' in www.theinternationaljournal.org, RJSSM- ISSN: 2251-1571 Volume: 03, Number: 12, April2014, page-78-87.

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15) Kameswara Rao Poranki (2015) , 'The Level of Customer& Yusuf Perwej & Asif PerwejSatisfaction related to GSM in India' in www.theinternationaljournal.org. RJSITM: Volume:04, Number: 03, January-2015, page 32-33.

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18) Rajput, A. A., Kalhoro, S. H., & Wasif, R. (2012). Impact of product price and quality onconsumer buying behavior: Evidence from Pakistan. Interdisciplinary Journal of ContemporaryResearch in Business, 4(4), 489-496.

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ANNEXURE

Table-001: Respondents age profile

Table-002: Respondents Gender

Table-003: Respondents Marital Status

Table-004: Respondents Educational Qualifications

Table-005: Occupation of Respondents

Table-006: Monthly income of Respondents

S. No. Age Group Respondents Percentage 1 25-35 94 37.152 35-45 83 32.813 45-50 76 30.04

Total 253 100.00

S. No. Gender Respondents Percentage

1 Male 115 45.452 Female 138 54.55

Total 253 100.00

S. No. Marital Status Respondents Percentage

1 Unmarried 47 18.582 Married 206 81.42

Total 253 100.00

S. No. Qalifications Respondent Percentage

1 SSC 24 9.492 HSSC 38 15.023 Graduate 112 44.274 Post Graduate 79 31.22

Total 253 100.00

S. No. Occupation(Job Sector wise)

Respondents Percentage

1 Government Sector Pr vate 143 56.522 Business Sector 57 22.533 House wife 53 20.95

Total 253 100.00

S. No. Income(Indian Rupees)

Respondents Percentage

1 Rs.10000 -15000 83 32.812 Rs.15000-25000 116 45.853 Rs.25000-35000 32 12.654 Above Rs. 40000 22 08.69

Total 253 100.00

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Table-007: Family Type of Respondents

Table-008: Brand Information source of Respondents

The above table tells us the brand information source of the Respondents

Table-009: Brand Awareness of Respondents

Table-010: Influence of Advertisement on Respondents

The above table tells us the influence of Advertisements on Respondents

Table-011: Consumer buying pattern of various brands of Home Appliances

The above table tells us the Consumer buying pattern of various brands of Home Appliances

S.No Type of Family Respondents Percentage

1 Nuc ear Fam y 114 45.062 Joint Famil 139 54.94

Total 253 100.00

S.No. Brand Information Source Respondents Percentage

1 TV Ads 157 62.062 Newspaper / Magazine 36 14.233 Hoardings 12 04.744 Exhibitions 48 18.97

S.No Brand Awareness Res ondents Percenta e 1 Below 3 118 46.642 Above 2 135 53.36

Total 253 100.00

S.No Influences of Advertisements Respondents Percentage

1 Strongly persuaded 46 18.18

3 Fairl Induced 81 32.02

Total 253 100.00

Sl. No. Home A liances Samsun Whirl ool LG Godre Others Total 1 Microwave Owen 127 53 0 61 12 2532 Te ev s on 0 106 21 87 39 2533 Washin machine 89 41 24 61 38 2534 Refrigerator 57 65 28 67 36 2535 A r coo er 68 71 12 48 54 253

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Table-012: Consumer buying behaviour (features of Microwave Ovens)

The above table tells us the Consumer buying preferences (features of Microwave Ovens)Table-013: Consumer buying behaviour (features of TVs)

The above table tells us the Consumer buying preferences (features of TVs)

Table-014: Consumer buying behaviour (features of Washing Machines)

The above table tells us the Consumer buying preferences (features of Washing Machines)

Table-015: Consumer buying behaviour (features of Refrigerators)

The above table tells us the Consumer buying preferences (features of Refrigerators)

Table-016: Consumer buying behaviour (features of Air Coolers)

The above table tells us the Consumer buying preferences (features of Air Coolers)

Sl. No. Features Wei ht Samsun Whirl ool LG Godre Others Wei hted Avera e 1 Capac ty 4 63 58 55 54 23 2532 Efficienc 5 60 53 58 51 31 2533 Storage 3 53 50 53 49 48 2534 Aest et c 2 57 51 54 58 33 2535 Sturd 5 49 42 60 64 38 253

Sl. No. Features Wei ht Samsun Whirl ool LG Godre Others Wei hted Avera e 1 Picture Qualit 5 0 106 35 94 18 2532 Sound Qualit 4 0 79 22 66 86 2533 Screen Qua ty 3 0 56 45 77 75 2534 S ze 4 0 24 36 49 144 2535 Color 5 0 64 69 61 59 253

Sl. No Features Weigh Samsung Whirlpoo LG Godrej Others Weighted Average 1 Ca acit 4 60 42 51 29 71 2532 Efficiency 5 56 39 48 35 75 2533 Stora e 3 63 58 47 43 42 2534 Aest et c 2 47 56 49 55 46 2535 Sturd 5 49 45 54 51 54 253

Sl. No Features Wei ht Samsun Whirl ool L Godre Others Wei hted Avera 1 Coo ng Capac ty 5 25 31 27 29 141 2532 Efficienc 4 31 37 29 31 125 2533 Space 2 37 34 31 36 115 2534 Aest et c 3 32 35 34 31 121 2535 Sturdy 2 34 30 38 32 119 253

Sl. No. Features Wei ht Samsun Whirl ool LG Godre Others Wei hted Avera e 1 Heat ng Capac ty 5 41 46 59 48 59 2532 Grill Fr 4 55 51 54 49 44 2533 Defrost 3 62 51 60 57 23 2534 Storage 4 59 57 51 60 26 2535 Aesthetic 1 65 61 63 59 05 253