Full chapter 18.7.2013

119
CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY 1.1 INTRODUCTION The refrigerator is used more than any other appliance in your kitchen. It is at work 24 hours a day. It does so much for you: keeps your foods cold or frozen, allows you to prepare meals ahead, and allows you to shop ahead. The refrigerator also uses more energy than any other appliance in the kitchen. It is third in energy use only to house heating and cooling and water heating. To understand refrigerator energy use and how to get the most benefits from the energy used, it will help you to know more about refrigerators. 1.1.1 PROCESS In a refrigerator heat is removed by a refrigerant, Freon that flows through a tube connecting three refrigerator components: an evaporator, which may be wrapped around the freezer compartment or concealed: a compressor, located beneath the refrigerator and a condenser, located beneath or behind the refrigerator. 1

Transcript of Full chapter 18.7.2013

Page 1: Full chapter 18.7.2013

CHAPTER I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

The refrigerator is used more than any other appliance in your kitchen. It

is at work 24 hours a day. It does so much for you: keeps your foods cold or

frozen, allows you to prepare meals ahead, and allows you to shop ahead.

The refrigerator also uses more energy than any other appliance in the

kitchen. It is third in energy use only to house heating and cooling and water

heating. To understand refrigerator energy use and how to get the most benefits

from the energy used, it will help you to know more about refrigerators.

1.1.1 PROCESS

In a refrigerator heat is removed by a refrigerant, Freon that flows

through a tube connecting three refrigerator components: an evaporator, which

may be wrapped around the freezer compartment or concealed: a compressor,

located beneath the refrigerator and a condenser, located beneath or behind the

refrigerator.

In the evaporator the refrigerant changes from a liquid to a gas. In this

part of the process the refrigerant removes excess heat from foods in the

refrigerator compartment and freezes foods in the freezer. Moisture condenses

and freezes on the evaporator and must be removed by manual or automatic

defrosting. The gaseous refrigerant is returned to its liquid state through

compression and condensation. In the compressor the gaseous refrigerant

becomes very hot. The refrigerant then dissipates heat through the condenser to

the outside of the refrigerator and becomes a liquid to repeat the refrigerator

process.

1

Page 2: Full chapter 18.7.2013

1.1.2 TYPES

Where refrigerator components will be located in a refrigerator depends

on the refrigerator type.

1.2 MANUAL DEFROST REFRIGERATORS

(Conventional Refrigerators)

Manual defrost refrigerators were the first type developed. One

evaporator cools both the refrigerator and freezer compartments, so a manual

defrost refrigerator has a single outer door. Manual defrost refrigerators are still

sold, but because the evaporator or freezer temperature is only about 15° F, ice

cream will be soft and frozen foods cannot be kept long. Manual defrost

refrigerators are no longer very popular, partly because they do not keep frozen

food well, but mostly because defrosting refrigerators manual1y is time

consuming and messy.

1.2.1 PARTIAL DEFROST REFRIGERATORS

Partial automatic defrost refrigerators have two doors and have separate

refrigerator and freezer compartment. The freezer compartment keeps foods at

about 0oF, cold enough to keep ice cream hard and provide longer food storage.

Since freezers in partial defrost refrigerators still require manual defrosting,

partial defrost refrigerators also are not very popular.

1.2.2 FROST-FREE REFRIGERATORS

Most refrigerators sold today are frost-free. There is no frost in the

refrigerator because the evaporator is concealed. Cold air is blown into the

refrigerator and freezer and keeps food evenly cool or frozen. Frost, which

forms on the evaporator coils of a frost-free refrigerator, is melted during an

automatic defrost cycle. The water from the frost drains into a tray beneath the

refrigerator and evaporates into the air in the kitchen.

2

Page 3: Full chapter 18.7.2013

Frost-free refrigerators keep foods in the freezer at about 0°F for good

storage. Because defrosting is unnecessary, frost- free refrigerators are the most

popular of the three refrigerator types. The freezer location on a frost-free

refrigerator can be on the top, bottom, or side of the refrigerator.

1.3 MARKETING

The American Marketing Association has defined marketing as "The

process of planning and execution, conceptions, pricing, promotion and

distribution of ideas, goods, services to create exchanges that satisfy individual

and organizational goals." This takes into account all parties involved in

marketing effort; members of the producing organization, reseller of goods and

services, and customer or clients.

Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating and exchanging

products and value with others.

The first known artificial refrigeration was demonstrated by William

Cullen at the University of Glasgow in 1748, who did not use his discovery for

any practical purpose.

In 1805, an American inventor, Oliver Evans, designed the first

refrigeration machine. An American physician, John Gorrie built a refrigerator

based on Evan’s design in 1844, used to make ice to cool the air for his yellow

fever patients.

1.4 INTRODUCTION TO THE INDUSTRY

Refrigerators are being manufactured in India for the last four decades.

Till early nineties only direct-cool refrigerators were used in India. Videocon

introduced frost-free refrigerators in 1991.

3

Page 4: Full chapter 18.7.2013

1.4.1 CURRENT SCENARIO

The current demand for refrigerators is approximately 2.9 million units

per annum. The 165-200 litres of refrigerators comprise of 80percentage of the

total demand. Frost-free refrigerators contribute 15percentage of the total

demand with 5percentage coming from the premium range.

1.4.2 FUTURE TREND

The replacement market is expected to increase to 25-30percentage on

account of faster replacement (further induced by exchange scheme).

Refrigerator market is expected to grow at a CAGR of 14 in the medium term

aided by the rising per capita income and growing consumerism.

By and large the Indian consumer durable industry is a vast industry of

this country. Of which, the white goods industry has been growing at an

average pace of 10-12percentage every year for the last five years. There have,

of course been some good and bad years. Refrigerators form the largest

segment of this industry and is estimated at about 3 million appliances. The

refrigerator industry is growing at a rate of 10 to 12percentage.

The frost-free market constitutes 16percentage of the total refrigerator

market. The total refrigerator market is expected to grow at the rate of

10percentage in the next three years. Today, frost-free refrigerators are growing

more rapidly than the direct-cool models. As of now around 15 million direct-

cool refrigerators are ready to be replaced with frost free, especially in the 165-

litres category.

The refrigerator industry has shown a negative growth of 5percentage

for the first six months and is expected to end the year with a decline of

4percentage compared with a negative growth of 2percentage last year. In the

period between January and September, Whirlpool increased its market share

by 2 percentage and Kelvinator by 1 percentage from their respective shares

last year.

4

Page 5: Full chapter 18.7.2013

1.5 INTRODUCTION TO THE PRODUCT

The process of refrigeration and its related equipment and products have

changed phenomenally over the past couple of years, due to an assertive global

alarm on the harmful effects of ancient and non eco-friendly methods of

refrigeration. Earlier, the eco-friendly attributes of refrigeration processes and

refrigerators remained untapped.

Since 1990, there has been a tremendous change in the refrigeration

industry with regard to technology, product and proliferation of brands. Newer

technologies are being pumped into the industry, some of, which will become

mandatory over the years and some that will enhance the competitiveness of

the products.

The existing compressor-based refrigeration (i.e., mechanical

refrigeration) system has reached the maximum level of innovation. For the last

few decades, there has not been any significant increase in the efficiency (i.e.

coefficient of performance, COP) of the system. Moreover, with the increasing

awareness of environmental degradation, the production, use and disposal of

CFC and HCFC as refrigerants in mechanical refrigeration system has become

a subject of great concern. “However, now, such systems are being developed

using more eco-friendly refrigerants viz.

India has formed an association – ‘Green Forum’, for equipment

manufacturers and suppliers looking towards following and implementing eco-

friendly measures and practices in their respected operations and products. The

move provides an exciting new avenue to seek technology and finances to

companies whose prime forte and product is refrigeration.

1.6 OBJECTIVES OF THE STUDY

1. To know the brand preference of refrigerators.

2. To know the satisfaction of the customers towards the refrigerator.

5

Page 6: Full chapter 18.7.2013

3. To ascertain the factors influencing the customers to purchase the

refrigerator.

4. To ascertain the buying motives of customer.

5. To find the reasons for changing the behavior of customer.

1.7 HYPOTHESIS

There is no association between age and monthly income of the

respondents.

There is no association between educational qualification and

occupation of the respondents.

There is no association between educational qualification and monthly

income of the respondents.

1.8 METHODOLOGY

1.8.1 RESEARCH DESIGN

Research Design is the conceptual structure within which research is

conducted. The research describes the existing state of affairs of the

refrigerators in Karur town. The research constitutes the collection of data,

measurement and analysis of data.

1.8.2 SOURCES OF DATA

The data are collected in both way i.e., primary and secondary data.

Primary data are those, which are collected afresh and for the first time, thus it

is original in character.

The secondary data, on the other hand are those, which have already,

been collected by some one and which have already been passed through the

statistical process.

6

Page 7: Full chapter 18.7.2013

In the study, primary data was collected from the respondents using

interview schedule. Secondary data was collected from the magazines and

internet.

1.8.3 SAMPLING

The study was conducted with a sampling size of 100 respondents.

Convenient sampling was adopted for the collection of data.

1.8.4 PERIOD OF STUDY

The study covers period of 3 years from 2009 to 2011.

1.8.5 FIELD WORK AND COLLECTION OF DATA

The field work of this study was conducted during the period of Nov

2011 to Jan 2012. The data were collected through pre-tested interview

schedule.

Application of statistics is:

For the study, descriptive statistics namely percentages were used and

inferential state namely chi-square, correlation and ANOVA were used to test

the hypothesis framed for the study.

1.8.6 LIMITATIONS OF THE STUDY

1. The study is restricted to Karur town only due to paucity of time.

2. Only 100 consumers were considered as sample for the study because of

cost constraints.

3. The period of survey is limited.

4. The analysis was based on data collected with help of interview

schedule have its own limitations.

1.9 CHAPTER SCHEME

7

Page 8: Full chapter 18.7.2013

This study consists of 5 chapters.

Chapter I Deals with introduction and design of the study.

Chapter II Discusses the brief outline about the consumer behaviour.

Chapter III Deals with Profile of Karur town and Product, Enumerates the

profile of the study area and features of the refrigerator.

Chapter IV Deals with analysis and interpretation. Assesses the users

attitude towards the refrigerator.

Chapter V Brings out the summary of findings, suggestions and conclusion.

8

Page 9: Full chapter 18.7.2013

CHAPTER - II

CONSUMER BEHAVIOUR

In olden days, marketers could understand consumers through the daily

experience of selling to them. But the growth in the size of firm and markets

has removed many marketing decision makers from direct contact with

consumers. The study of consumer behaviour answers many questions.

2.1 MEANING OF CONSUMER BEHAVIOUR

The term consumer behaviour is a subset of human behaviour. However,

it does not mean that all human behaviour is oriented towards consumption. In

the words of Glern Wilters “Human behaviour refers to the total process by

which individuals interact with their environment.”

According to Boone & Kurtz “Consumer behaviour is the outcome of

both individual and environmental influences”. To be the specific consumer

behaviour refers to the act of consuming a goods or service.

DEFINITIONS

According to Leon G. Schiffman, Leslie Lazar Kanuk “The behaviour

that consumer display in searching for purchasing, using, evaluating and

disposing of products, services and ideas which they expect will satisfy their

needs".

2.2 ROLE OF CONSUMER BEHAVIOUR

INITIATOR

The individual who determines that some need or want is not being met

and authorizes a purchase to rectify the situation.

9

Page 10: Full chapter 18.7.2013

1. INFLUENCER

A person who buys some intentional or unintentional work or action

influences the purchase decision. The actual purchase and or the use of the

product or service.

2. BUYER

The individual who actually makes the purchase transaction.

3. USER

The person most directly involved in the consumption or use of the

purchase.

2.3 CONSUMER BEHAVIOUR IS AN INTER DISCIPLINARY

SCIENCE

Consumer behaviour was a relatively new field of study in the mid to

late 1960's with no history or body or research of its own, the new discipline

borrowed heavily from concepts developed in other scientific disciplines. Such

as Psychology, Sociology, Social Psychology, cultural anthropology and

economics.

1. PSYCHOLOGY

Psychology is the study of the individual. It includes the study of

motivation, perception, attitudes, personality and learning patterns. All these

factors are integral to an understanding of consumer behaviour.

They enable us to understand the various consumption needs of

individuals, their actions and reactions in response to different products and

products messages and the way persona1ity characteristics and previous

experience affect their product choices.

2. SOCIOLOGY

10

Page 11: Full chapter 18.7.2013

Sociology is the study of groups. Group behaviour the actions of

individuals in groups often differs from the actions of individuals operating

alone. The influence of group membership, family structure and social class on

consumer behaviour are all relevant to the study of consumer segments in the

market place.

3. SOCIAL PSYCHOLOGY

Social Psychology is an amalgam of sociology and psychology. It is

time study of how an individual operates in a group. The study of consumer

behaviour is not only study of how groups operate in terms of market behavior.

4. CULTURAL ANTHROPOLOGY

The study of human beings in society is the study of cultural

anthropology. It traces the development of the core beliefs, values, and customs

that are passed down to individuals from their parents and grand parents and

influence their purchase and consumption behaviour. It also includes the study

of sub cultures and lends itself to a comparison of different nationalities with

diverse cultures and customs.

5. ECONOMICS

An important component of the study of economics is the study of

consumers how they spend their funds, how they evaluate alternatives, and how

they make decisions to maximize satisfaction. Many early theories concerning

consumer behaviour were base on economic theory. For example, the

Economic man theory postulates that individuals act rationally to maximize

their utilities in the purchase of goods and services. More recent consumer

studies have indicated that individuals act less than rationally to fulfill their

psychological needs.

2.4 FACTORS INFLUENCING CONSUMER BEHAVIOUR

The consumer behaviour is influenced by internal and external factors.

11

Page 12: Full chapter 18.7.2013

1. INTERNAL FACTORS

Internal influences are reflected in motivation, perception. learning,

attitudes and personality of buyers. These are also known as the psychological

determinants of consumer behaviour.

A. MOTIVATION

Motivation acts as a driving force in the flow towards purchase action

Motivation has direct cause and effect relationship. Motivation the drive to act,

to move, to obtain a goal or an objective. Motivation is a mental phenomenon.

It is affected by perceptions, attitudes, personalities traits and by outside

influences such as culture and marketing efforts. Motivation in buyer is

concerned with the reasons that impel buyer to take certain actions.

B. PERCEPTION

Motivation provides a basic influence upon buyer behaviour, while

perception is operationally critical. A motive creates a disposition to act,

perception triggers or causes the behaviour in a certain way. Perception

influences (or) shapes the behaviour.

C. LEARNING

Learning is the central topic in the study of human behaviour. Learning

is defined as all changes in behaviour that result from previous experience and

behaviour in similar situations. Learning is the product of reasoning, thinking,

information processing and of course perception. Consumer behaviour is

critically affected by the learning experiences of consumers.

D. ATTITUDES

Social Psychologist defines attitudes as an emotionalized predisposition

to respond positively or negatively to an object (or) class of objects.

12

Page 13: Full chapter 18.7.2013

The concept of predisposition includes our familiar concepts of

attitudes, beliefs, goals and values. Attitudes affect both perception and

behaviour.

In general, an. attitude is a state of mind or feeling. It induces a

predisposition to behave in someway. Attitudes are very important in

explaining buyer behaviour.

E. PERSONALITY

Personality is a complex psychological concept. Its primary features are

self-concept roles and levels of consciousness. Freud pointed out that human

personality has three parts.

The id, the source of all mental energy which drives us to action.

The super ego, the internal representation of what is socially approved

out conscience.

The ego the conscious director of id impulses for finding satisfaction in

a socially acceptable manner.

F. PSYCHOGRAPHICS (LIFE STYLE)

Psychographics of life style marketing is a new technique for analysing

predicting consumer behaviour. Life style is a typical way of living, in a

dynamic society. It measures the people's actions in terms of psychological

factors combined with demographic to us. It is concerned with people rather

than products. Life style segmentation provides a better insight into buyer

behaviour. It is a good combination of demographic and psychological factors

determining consumer behaviour. Consumers buy products to enhance their life

styles.

2. EXTERNAL FACTORS

13

Page 14: Full chapter 18.7.2013

The consumer behaviour is influenced by external forces such as social,

cultural factors reference groups, Social classes, status, symbols, etc.,

14

Page 15: Full chapter 18.7.2013

A. FAMILY

Most of the consumers belong to a family group. The family can exert

considerable influence in shaping the pattern of consumption and indicating the

decision making roles. Personal values, attitudes and buying habits are shaped

by family influences. Marketing policies regarding product, promotion and

channels of distribution are influenced by members making actual purchase.

B. REFERENCE GROUP

The concept of reference group is borrowed from sociology and

Psychology. Consumer behaviour is influenced by small groups to which the

consumer belongs. Reference groups are the social, economic or professional

group and consumer uses to evaluate his or her opinions and beliefs. Buyer can

get advice or guidance in his to her own thoughts and actions from such small

groups. Reference groups is useful self evaluation and attitude formation.

Consumer accept information, provided by their peer groups omits quality of

the product, on its performance, style etc., which is hard to evaluate

objectively. A person may have several reference group for various subjects.

He may Prefer particular brand because reference group prefers that particular

brand of the product. Opinion leaders can act as effective agencies of

communication on behalf of marketing management. Marketing effort may be

directed to provide such opinion leaders.

C. SOCIAL CLASS

Sociology points out the relationship between social class and

consumption. Consumers buying behaviour is determined by the social class to

which they belong or to which they aspire, rather than by income alone.

Broadly speaking there are three distinct social classes upper, middle and lower

classes. Consumer belonging to middle classes usually stress rationality,

exhibit greater sense of choice making. Where as consumer of lower classes

have essentially non rational purchase and show limited sense of choice

making. Upper class consumers want products and brands that are clear

15

Page 16: Full chapter 18.7.2013

symbols of social status. Middle class people shop carefully and read

advertisement and compare prices before they buy. Lower class consumers buy

usually on impulse and should be influenced by point of purchase materials.

D. CULTURE

Culture represents an overall social heritage a distinctive form of

environmental adoption. It includes a set of learned beliefs, values, attitudes,

morals, customs, habits and forms of behaviour that are shared by a society and

transmitted form generation to generation within that society. Cultural

influence is a force, shaping both pattern of consumption and pattern of

decision making from infancy. Much of consumer behaviour is determined by

culture.

Technological advance may influence cultural changes. Educational and

travel can have considerable influence on culture marketing strategies can be

developed for each culture separately. Sub culture exists with the dominant

culture with its own set values, beliefs, attitude, habits and behaviour pattern.

In Indian culture we have some important bases of sub culture such as caste,

region, religion. Thus pattern of behaviour would vary between North and

South India, Brahamins and Vaishyar, Muslims and Jains.

2.5 TYPES OF BUYING BEHA VIOUR

1. COMPLEX BUYING BEHAVIOUR

Consumers go through complex buying behaviour when they are highly

involved in a purchase and aware of significant differences among brands.

Consumers are highly involved when the product is expensive, bought

infrequently, risky and highly self expressive. Typically the consumer does not

know much about the product category and has much to learn.

This buyer will pass through a learning process characterized by first

developing beliefs about the products, then attitudes, and then making a

16

Page 17: Full chapter 18.7.2013

thoughtful purchase choice. The marketer of a high involvement product must

understand the information - gathering and evaluation behaviour of high

involvement consumers. The marketer needs to develop strategies that assist

the buyer in learning about the attributes of the product class, their relative

importance and the high standing of the Company's brand on the more

important attributes.

2. DISSONANCE REDUCING BUYING BEHAVIOUR

Sometimes the consumer is highly involved in a purchase but uses little

difference in the brands. The high involvement is again based on the fact that

the purchase in expensive, infrequent and risky.

After the purchase, the consumer might experience dissonance that

stems from noticing certain disquieting features of the carpet and justify his

decision. Here marketing communication should aim to supply beliefs and

evaluation that help the consumer feel good about his brand choice.

3. HABITUAL BUYING BEHAVIOUR

Many products are bought under condition of the low consumer

involvement and the absence of significant brand differences. If the consumer

keep reaching the same brand, it is out of habits, not Strong brand loyalty. The

buying process is brand beliefs formed by passive learning followed by

purchase behaviour.

4. VARIETY SEEKING BUYING BEHAVIOUR

In this buying behaviour some buying situations are characterized by

low consumer involvement but significant brand differences. Here consumers

are often observed to do a lot of brand switching. Brand switching occurs rather

than dissatisfaction.

17

Page 18: Full chapter 18.7.2013

2.6 BUYING PROCESS

For Marketing Management the most important behaviour on the part of

a prospective buyer or consumer is the process of deciding whether to buy or

not to buy.

Buying process represents problem solving approach and includes the

following five steps.

1. PERCEIVED WANT OR DESIRE

Buying process begins when a person begins to feel that a certain need

or desire has arisen and it has to be satisfied. Needs may he ignited by internal

or external stimulus called a sign or cue. The intensity of want will indicate the

speed with which a person will move to fulfill the unsatisfied want other less

pressing wants may have to be postponed as the buyer cannot have unlimited

purchasing power. Marketing management should offer appropriate cues in the

communications which can promote the sale of the product.

2. INFORMATION SEARCH

Aroused needs can be satisfied promptly when the desired product is not

only known but also easily available. But when it is not clear what type or

brand of the product can offer best satisfaction and where and how it can be

secured, the person will have to search for relevant information about brand,

location and the manner of obtaining the product. Marketer also provides

information through salesman, advertising dealers, packing sales promotion

and window display.

Marketers are expected to provide reliable, up - to - date and adequate

satisfaction regarding their products and services. Average consumers are

always in need of reliable guidance and information, seller is expected to

provide their services.

3. EVALUATION OF ALTERNATIVES

18

Page 19: Full chapter 18.7.2013

Available information can be employed of evaluate alternatives. This is

critical step in the process of buying, particularly closely desirable goods.

There are several important elements in the process of evaluation.

A product is viewed as a bundle of attributes. These attribute (or)

features are useful for evaluating alternative brands.

Information cues of Hints about a set of characteristics of the product

(or) brand such as quality, price, distinctiveness, availability, etc., on

provided by marketers, these can be compared and evaluated in the

buying process.

In order to reduce the number of alternatives some consumers may

consider only more critical attributes and mention the level for these attributes.

2.7 PURCHASE DECISION

While the consumer is evaluating the alternatives, she / he will develop

some likes and dislikes about the alternative brands. This attitude to wards

brand influence her / his intention to buy. Other factors which may influence

the intention to purchase are,

1. Social factor

2. Situational factor

3. Perceived risk may influence the decision to purchase

Higher priced products involve higher degree of risk. Sophisticated

products involve performance risk. Consumers may not have confidence in

foreign products involving higher cost and they would prefer national brands to

reduce risks and problems of service after sale.

PURCHASE EXPERIENCE AND BEHAVIOUR:

The brand purchase and the product use provides feed back of

information regarding attitudes. If the level of satisfaction derived is as per

19

Page 20: Full chapter 18.7.2013

expectations, it will create brand preference influencing future purchase. But if

the purchased brand does not yield desired satisfaction negative feelings will

occur and this will create anxiety and doubts. This phenomenon is called

cognitive dissonance.

Marketers should be aware of the full range of ways in which the

consumer handles dissatisfaction. Marketers must take necessary steps to

minimize the amount of consumer post purchase dissatisfaction.

Modem concepts of buyer behaviour point out that behaviour is the

result of interaction between person centered factors and situation centered

factors. Marketers must be aware of the person centered factors such as buyer

motivation, learning, perception, attitude, value and belief. Similarly, marketers

must also be aware of social environment and inter-personal interactions

influencing buyer behaviour.

2.8 BUYER BEHAVIOUR THEORIES

From the very early times efforts were made to explain the motivational

processes that influence buying behaviour. All social sciences have contributed

separate theories and tried to find out these phenomena. These theories for

convenience may be grouped as under.

Economic Theories

Psychological Theories

Psycho - analytical Theories

Socio - Cultural Theories

1. Economic Theories

a) Marginal Utility Theory:

This theory was developed by classical economists. According to them,

a consumer will continue to buy a such products that will deliver him the most

utility or maximum satisfaction at relative prices. Economists held the view

20

Page 21: Full chapter 18.7.2013

that man is rational in all his activities and purchasing decisions are the result

of economic calculations.

Marketers, however, do not accept this theory, on the ground that it fails

to explain how product and brand preferences are formed further, economic

factors alone cannot explain variations in sales. For instance, when price is

reduced some may not buy, thinking that quality of the product has gone down.

On the contrary, the general feeling is that a price reductions increases the

relative value of goods and hence sales increase. The theory however provides

a useful frame of reference for analyzing only one small corner of the' block

box'.

(b) Income and Savings Theory

This theory is based on the fact that purchasing power is the real

determinant of buying. Purchasing Power, on the other hand, is dependent on

'disposable income" that is income left after payment of tax and savings. To

facilitate how people allocate changes in their total income between spending

and saving, there are two concepts as given by the economists.

The marginal propensity to consume, and

The marginal propensity to save

The marketers are interested in examining the effect of changes in

income on spending and saving as this will have a direct bearing on buying

habits. The theory states that personal consumption spending tends both to rise

and fall at a slower rate than does the disposable income. In certain situation,

spending rises faster than income and, at certain other times, a higher

proportion may be saved.

Though the theory does not explain consumer behaviour in specific

terms, the concept is used in planning and analysis of demand.

21

Page 22: Full chapter 18.7.2013

2. PSYCHOLOGICAL THEORIES

These theories are also called as learning theories. The essence of these

theories lies in the fact that, People learn from experience, and the results of

experience will modify their actions on future occasions. The importance of

brand loyalty and repeat purchase make learning theory more relevant in the

field of marketing.

a. Stimulus Response Theories

Stimulus response theory, after constant refinements, is now based on

our central processes. They are drive, cue, response and reinforcement.

"Drives" are needs or motives that are stronger where as a 'cue' is a weaker

stimuli. The "response" is the resultant reaction of some stimuli. If it is based

on cue, the response may be shifting form one brand to another brand based on

previous experience. In other words, cues will create different degrees of

responses under different occasions. Reinforcement is the process by which

rewarding experience in the past are strengthened. It is here brand preferences

are strengthened leading to brand loyalty. The purpose of giving free samples

of newly introduced product is nothing but to actives this reinforcement.

b. Cognitive Theories

This theory was propounded by Festinger mainly to explain certain post

buying behaviour. According to," it, stimulation of want is conditioned by a

customer's knowledge, his perception, beliefs and attitudes. Perception is the

sum total of physical stimuli and personal factors.

Though the theory was developed to explain a decision phenomena, it is

suitable for explaining pre - decision anxiety also. An important goal, both of

advertising and personal seling, is to reduce cognitive dissonance on the part of

buyer and prospects.

22

Page 23: Full chapter 18.7.2013

c. Gestalt and Field Theories

According to the theory learning and consequent behaviour is not

independent, but is a total process. They argue that human behaviour is not

independent, but is a total process. They argue that human behaviour must be

viewed as individually patterned totalities. Behaviour should be explained in

terms of all the factors that are operating when an event happens. Thus, buying

is not motivated by a single element. But is the sum - total of many elements.

3. PSYCHO - ANALYTIC THEORIES

This theory is developed from the thoughts of sigmund freud. He

postulated the personality has three basic dimensions; id refers to the free

mechanism that leads to strong drives such drives (motives) are not influenced

by morality or ethics. Ego refers to the act of weighing consequences and tries

to reconcile with reality. It is an equilibrating device that leads to socially

acceptable behaviour and imposes rationality on the id. The ego weighs the

consequences of an rather than rushing blindly into the activity.

Super ego is a person's conscience. It is highly rational and tries to keep

the activities morally right, in essence, the id urges an enjoyable act: the super

ego presents the moral issues involved and the ego acts as the arbitrator in

determining whether to proceed or not. This has led to motivation research and

has proved to be useful in analysing buyer behaviour. This in turn, has

contributed some useful insights in the advertising and packing fields.

4. SOCIO - CULTURAL THEORIES: (GROUP THEORIES)

The credit for formulating this theory goes to Thorstein Veblen (1899)

and the theory is sometimes known as "Veblenian Model". He asserted that

man is primarily a social animal and his wants and behaviour are largely

influenced by the group of which he is a member. The tendency of all people is

to 'fit in' a society inspite of their personal like and dislikes. Most of the luxury

goods are bought primarily because one's neighbour of the same status bought

23

Page 24: Full chapter 18.7.2013

it. Culture, subculture, social classes, reference groups, family are the different

factor groups that influence buyer behaviour.

Reference Groups indicate the position of a particular group of persons

in a society. Man is essentially a social being and interacts with other

individuals in a variety of social groups. Inspite of personal differences people

may be forced to accept the decision of Society;

CHAPTER – III

PROFILE OF THE STUDY AREA AND PRODUCT

FEATURES

3.1 PROFILE OF KARUR TOWN

Karur is a town and a municipality in Karur district in the Indian state of

Tamilnadu. It is the headquarters of Karur district.

Karur district, with headquarters at Karur, is the most centrally located

district of Tamilnadu. Its about 371km south west of Chennai (Madras), the

capital of Tamilnadu.

Karur district is bounded by Namakkal district in the north, Dindigul

district in the south, Tiruchirapalli district on the east and Erode district on the

west.

In this chapter, the researcher is going to focus the following areas;

History

Karur District

Geography

Climate

Demographics

24

Page 25: Full chapter 18.7.2013

Economy

Agriculture

Home Textile

Paper

Bus body Building

Cement

Sugar Factory

3.1.1 HISTORY

Karur is one of the oldest towns in Tamilnadu and has played a very

significant role in the history and culture of the Tamils. Its history dates back

over 2000 years, and has been a flourishing trading centre even in the early

Sangam days. Epigraphical, Numismatic, Archaeological and Literary evidence

have proved beyond doubt that Karur was the capital of early Chera kings of

Sangam age.

Karur was built on the banks of river Amaravathi which was called

Aanporunai during the Sangam days. The names of the early Chera kings who

ruled from Karur, have been found in the rock inscriptions in Aru Nattar Malai

close to Karur.

KARUR DISTRICT

Karur district Collector is the Head of the District administration and

District Collector’s Office is the centre of District Administration situated in

Master Plan Complex in Thanthondrimalai. It is nearly 6km from karur bus

stand and 8km from Railway station on the way to Dindigul via Vellianai.

3.1.3 DISTRICT STATISTICAL 2005 - 2006

Geographical Position

North Latitude - Between 11.00’ to 12.00’

25

Page 26: Full chapter 18.7.2013

East Longitude - Between 77.28’ to 78.50’

1. Timber (Cu.m) - Nil

2. Fuel wood (MT) - Nil

3. Pulp wood (PT) - Nil

4. Sandal wood (MT) - Nil

5. Rubber ( MT) - Nil

6. Bamboo (Tonne) - Nil

7. Tea Green Leaves (Tonne) - Nil

8. Wattle Bark (MT) - Nil

9. Cashew (Tonne) - Nil

Electricity:

A. Generation of Electricity

a. Hydro - Nil

b. Wind mill Generation - Nil

c. Thermal - Nil

d. Power Purchased - Nil

e. Gas Turbine - Nil

B. Consumption of Electricity (in m.u.) Kwh.

a. Agriculture - 27.35

b. Industry - 40.61

c. Commercial - 54.01

d. Domestic - 207.80

e. Public Lighting & Water Works - 17.28

f. Sales of Licensees - Nil

g. Sales to Others States - Nil

h. Miscellaneous - Nil

3.1.4 GEOGRAPHY

Karur is located at 10.950 N 78.080 E. It has an average elevation of 122

metres (400 feet).

26

Page 27: Full chapter 18.7.2013

3.1.5 CLIMATE

The highest temperature is obtained in early May to early June usually

about 370C, though it usually exceeds 390C for a few days most years. Average

daily temperature in Karur during January is around 240C, though the

temperature rarely falls below 190C.

The average annual rainfall is about 615mm. The city gets most of its

seasonal rainfall from the north-east monsoon winds, from late September to

mid November.

3.1.6 DEMOGRAPHICS

As of 2011 India census, GR India Karur had a population of 76,328.

Males constitute 50% of the population and females 50%. Karur has an average

literacy rate of 78%, higher than the national average of 59.5%:male literacy is

84%, and female literacy is 72%. In Karur, 10% of the population is under 6

years of age.

3.1.7 ECONOMY

Agricultural

Utilisation of land area in Karur district is up to 44.59%, 4.76% of the

land area remains as other uncultivated land. 2.74% is forest area in

Karur district. Black soil is the predominant soil type in this district

accounting for 35.51% followed by lateritic Soil for 23.85%. Rest

20.31% is comprised of sandy, coastal and alluvium soil.

Home Textiles

Karur is famous for its home textiles. Karur has a niche in five major

product groups-bet linens, kitchen linens, toilet linens, table linens and

wall hangings. Overall Karur generates around Rs.2000 crores ($400

million dollars a year) in foreign exchange through direct and indirect

27

Page 28: Full chapter 18.7.2013

exports. Allied industries like ginning and spinning mills, dyeing

factories, weaving etc employees around 200000 people in and around

Karur.

On the international textile map Karur has become synonymous with

hand-loom “made-ups” first as Tirupur in the hosiery product. The

weaving industry came to Karur from Kerala and has earned a reputation

for its high quality hand-loom products today. Hand-loom exports from

Karur began on a modest scale with just 15 exporters in 1975 and today

Karur has 100s of exporters.

The hand-loom products being exported have been broadly classified

under three heads viz., kitchen, bathroom and bedroom furnishing items.

Some of the hand-loom made-ups exported from Karur are Bedspreads,

Towels, Floor rugs, Tea towels, Napkins, Aprons, Kitchen towels, Pot

holders, Plate mats, Bathmats, Tea mats, Curtains, Pillow, Ouilt Covers,

Shower curtains etc.,

Paper

TNPL is promoted by the Government of Tamilnadu with loan

assistance from the World Bank. Today TNPL is the largest producer of

bagasses (sugarcane waste from Sugar mills) based paper in the world

and the 2nd largest paper producer in India. TNPL produces 230000 tons

of printing & writing paper and consumes 1 million tones of bagasses

every year.

Bus Body Building

Karur is a renowned centre for bus building industries. This is a unique

feature of Karur and almost 90% of south Indian bus bodies are being

built here. The total business in estimated to be around Rs.750 crore per

annum.

28

Page 29: Full chapter 18.7.2013

Cement

Chettinad Cement Corporation Ltd was formed 1962 to cater to growing

demands of cement in the country. The manufacturing unit located at

Puliyur, Karur District, in Tamilnadu commenced production in April

1968. Apart from cement, the Chottinad House is today engaged in

activities as diverse as granite, engineering, silica, garnet, information

technology, steel & textile trading, horse breeding, plantations, shipping,

transportation, stevedoring, clearing and forwarding and logistics having

a combined

Sugar Factory

India is the world’s largest producer of sugar. E.I.D.Parry’s pioneered

sugar production in India. In 1842, the Company set up India’s first

sugar factory at Vandipalayam. Since then, they have maintained the

edge in the industry through advanced technologies.

3.2 PROFILE OF PRODUCT

The following more than electronics company product profile.

3.2.1 LG PRODUCT DESCRIPTION

It's double door LG refrigerator, 165 litres. Trouble free and good

working condition. Well Maintained.

Features

Door cooling.

Capacity: 230ltr.

Twist ice Tray.

Anti-bacteria gasket.

Cell fresh crisper.

Humidity controller.

29

Page 30: Full chapter 18.7.2013

Power deodorizer.

Colour: Moon Silver, Super inox, Champagne.

Net dimension in mm: 1545 x 540 x 650.

Wired shelves.

Ref lamp.

Transparent veg box.

Egg tray.

Deep door.

Transparent door basket.

Sliding door basket.

Metallic door finish.

Grip handle.

3.2.2 WHIRLPOOL PRODUCT DESCRIPTION

310liters Iceberg Elite Whirlpool Refrigerator is truly an owner’s pride.

With the best cooling technology and unique storage features comprised in

310L of capacity, it has to be a cooling magic.

Key Features

6th Sense Fast Cool

6th Sense Surround Cool System

Door open Alarm

Other Features

2 legs / 2 Rollers

310L Capacity

Bottle Bins (Transparent)

Bottle Separator cum Holder

Cabinet Lamp

Chiller

Choco box

Cosme Store

30

Page 31: Full chapter 18.7.2013

Deodorizer

Door Lock

Eco Mode

Egg Trays

Ever fresh Lemon’n Onion Box

Freezer Door Bin

Freezer Lamp

Freezer Shelf

Fruit Box

Highest Refrigerators to Freezer Ratio

Ice Collector

Ice Twister

Mini Tray

Multi-Utility Trays

Tough glass Refrigerators Shelves (two in number)

Vegetable box with cover.

3.2.3 SAMSUNG PRODUCT DESCRIPTION

Samsung 530 liters frost free refrigerator. Model: RT53

Features

Silver NanoTM Technology

Humidity Controller

Stylish Round Design

Gross Capacity : 530L

Silver NanoTM Technology

Cool Curtain System

Multi-Flow

Toughened Glass Shelves

Humidity Controller

Stylish Round Design

Air Shower in Freezer

31

Page 32: Full chapter 18.7.2013

Twist Ice: Tray

Specifications: Total 530L

Freezer: 135L

Refrigerator: 395L

CHAPTER-IV

USERS ATTITUDE TOWARDS REFRIGERATOR

In the previous chapter, the researcher has taken an earnest attempt to

study the profile of the study area and salient features of refrigerator. In this

chapter, the researcher has focused his attention to the users of refrigerator.

4.1 GENDER

Gender is an important factors which influence the using of Refrigerator.

The following table 4.1 represents the gender of respondents.

TABLE 4.1

GENDER

S.No. Gender No. of Respondents %

1 Male 82 82

2 Female 18 18

Total 100 100

Source: Primary data

32

Page 33: Full chapter 18.7.2013

The above table status that the gender of the respondents. Out of 100

respondents 82 percent of the respondents are male and 18 percent of the

respondents are female.

It is inferred that the majority of the respondents are fall in male

category.

4.2 AGE

The following table 4.2 denotes the age of the respondents.

TABLE 4.2

AGE

S.No. Age No. of Respondents %

1 Below 20 30 30

2 20 – 40 68 68

3 40 – 60 2 2

4 Above 60 - -

Total 100 100

Source: Primary data

It is clear from that the above table 4.2 out of 100 respondents 30

percent of the sample studied belong to the age group of below 20 years. 68

percent of the sample belong to the age group between 20 to 40 years and 2

percent of the sample belong to the age group between 40 to 60 years.

It is inferred that the majority of the respondents belong to the age group

between 20 to 40 years.

4.3 MARITAL STATUS

33

Page 34: Full chapter 18.7.2013

Marriages are made in heaven. Marriage is an important factor which

helps to purchase the refrigerator. The following table 4.3 connotes the marital

status of the respondents.

TABLE 4.3

MARITAL STATUS

S.No. Marital Status No. of Respondents %

1 Married 60 60

2 Unmarried 40 40

Total 100 100

Source: Primary data

The above table 4.3 states that, out of 100 respondents, 60 percentages

of the respondents are married and 40 percentage of the respondents are

unmarried.

It is inferred that the majority of the respondents are married.

4.4 EDUCATIONAL STATUS

34

Page 35: Full chapter 18.7.2013

Education makes the man perfect. Here, education is one of the

significant criteria to choose the refrigerator.

TABLE 4.4

EDUCTIONAL STATUS

S.No. Educational Status No. of Respondents %

1 Upto Higher Secondary 38 38

2 Upto Under Graduate 32 32

3 Upto Post Graduate 28 28

4 Others qualification 2 2

Total 100 100

Source : Primary data

It is crystal from the above table 4.4 that, completed. Out of 100

respondents, 38 percent of the respondents are +2, 32 percent of the

respondents are graduate, 28 percent of the respondents are post graduate and

2 percent of the respondents are others.

It is inferred that the majority of the respondents are having the

education upto higher secondary level.

35

Page 36: Full chapter 18.7.2013

4.4 OCCUPATIONAL STATUS

The researcher has classified the occupation status into four way namely

business, agriculture, profession and other occupation. An attempt is made to

study the occupational status and the results the tabulated in table 4.5.

TABLE 4.5

OCCUPATIONAL STATUS

S.No. Occupation No. of Respondents %

1 Business 26 26

2 Agriculture 14 14

3 Profession 40 40

4 Others 20 20

Total 100 100

Source : Primary data

The above table 4.5 explained that the occupation of the respondents.

Out of 100 respondents, 26 percent of the respondents are Business, 14 percent

of the respondents are Agriculture. 40 percent of the respondents are Profession

and remaining 20 percent of the respondents are belonging to other occupation.

It is exhibited from the above table that most of the respondents are

belonging to professional category (40%).

36

Page 37: Full chapter 18.7.2013

FIGURE 4.1

OCCUPATIONAL STATUS

20%

40%

14%

26%

0

5

10

15

20

25

30

35

40

45

Business Agriculture Profession Others

Occupation

Per

cent

age Business

AgricultureProfession Others

37

Page 38: Full chapter 18.7.2013

4.6 MONTHLY INCOME

The present survey also evaluated the monthly income of the users of

refrigerators. The details of the monthly income is represented in tables 4.6.

TABLE 4.6

MONTHLY INCOME OF THE RESPONDENTS

S.No. Monthly Income Level No. of Respondents %

1 Below Rs.5000 34 34

2 Rs.5000-Rs.10000 50 50

3 Rs.10000-Rs.15000 6 6

4 Above Rs.15000 10 10

Total 100 100

Source : Primary data

It is obvious from the table 4.6 that, out of 100 respondents, 34

percentage of the respondents are come under the income group of below

Rs.5000, 50 percent of the respondents are come under the income group of

Rs.5000 to Rs.10000, 6 percent of the respondents are come under the income

group of Rs.10000 to Rs.15000 and 10 percent of the respondents are come

under the income group of above Rs.15000 level.

It is interesting to note that many (50%) of the respondents are come

under the income group of Rs.5000 – Rs.10000 per month.

38

Page 39: Full chapter 18.7.2013

4.7 SIZE OF THE FAMILY

The size of the family is an important factor which influence the using

of refrigerator the following table 4.7 denotes size of the family of the

respondents.

TABLE 4.7

SIZE OF THE FAMILY

S.No. Size of Family No. of Respondents %

1 Below 3 34 34

2 3 – 5 42 42

3 5 – 7 22 22

4 Above 7 2 2

Total 100 100

Source : Primary data

It is learned from the above table 4.7 that the size of family of the

respondents. Out of 100 respondents, 34 percent of the respondents are under

below 3 members group, 42 percent of the respondents are under 3 to 5

members group, 22 percent of the respondents are under 5 to 7 members group

and 2 percent of the respondents are under above 7 members group.

It is inferred that the majority 42 percent of the respondents are all fall

under 3 to 5 members group.

39

Page 40: Full chapter 18.7.2013

4.8 PREFERENCE OF REFRIGERATORS

The following table 4.8 expressed the opinion of respondents towards

the preference of refrigerators.

TABLE 4.8

PREFERENCE OF REFRIGERATORS

S.No.Kinds of

RefrigeratorNo. of

Respondents%

1 Single Door 74 74

2 Double Door 26 26

Total 100 100

Source : Primary data

The table 4.8 reveals that, out of 100 respondents, 74 percent of the

respondents are preferred single door refrigerators and 26 percent of the

respondents are liking double door refrigerators.

It is inferred that the majority 74 percent of the respondents are

preferring single door refrigerators.

40

Page 41: Full chapter 18.7.2013

4.9 BRANDS PREFERENCE IN REFRIGERATORS

An attempt has been made to know the fast moving and slow moving

refrigerators. The researcher has made an attempt and the result is exhibited in

table 4.9.

TABLE 4.9

BRANDS PREFERENCE IN REFRIGERATORS

S.No.Brands of

RefrigeratorNo. of Respondents %

1 BPL 30 30

2 Whirl Pool 42 42

3 LG 20 20

4 Others 8 8

Total 100 100

Source : Primary data

It is clear from the table 4.9 that, out of 100 respondents, 30 percent of

the respondents are purchasing BPL brand of refrigerators, 42 percent of the

respondents are purchasing Whirlpool brand of refrigerators. 20 percent of the

respondents are purchasing LG brand of refrigerators and 8 percent of the

respondents are purchasing others brand of refrigerators.

It is inferred from the above table that majority 42 percent of the

respondents are purchased Whirlpool brand of refrigerators.

41

Page 42: Full chapter 18.7.2013

FIGURE 4.2

BRANDS PREFERENCE IN REFRIGERATORS

30%

42%

20%

8%

0

5

10

15

20

25

30

35

40

45

Per

cent

age

BPL Whirl Pool LG Others

Brands of Refrigerator

BPL Whirl Pool LGOthers

42

Page 43: Full chapter 18.7.2013

4.10 KNOWLEDGE ABOUT REFRIGERATORS

While purchasing a product, every customer is expected to have some

knowledge about product features, use, method of handling and so on.

Refrigerator is exempted to it understand the level of knowledge about the

refrigerator the respondents collects the information from friends, relatives,

dealers, and others segment of people. The results are given in table 4.10.

TABLE 4.10

KNOWLEDGE ABOUT REFRIGERATORS

S.No.Collection of information

No. of Respondents %

1 Friends 44 44

2 Relatives 36 36

3 Dealers 10 10

4 Others 10 10

Total 100 100

Source : Primary data

The above table shows that the recommended to buy the brand of the

respondents. Out of 100 respondents, 44 percent of the respondents are

collected information from their friends, 36 percent of the respondents are

gathered message from their relatives, 10 percent of the respondents are

recommended to buy the brand is dealers and 10 percent of the respondents are

recommended to buy the brand is others.

It is inferred that the majority 44 percent of the respondents are gathered

information from their friends.

43

Page 44: Full chapter 18.7.2013

FIGURE 4.3

KNOWLEDGE ABOUT REFRIGERATORS

44%

36%

10% 10%

0

5

10

15

20

25

30

35

40

45

Per

cen

tag

e

Friends Relatives Dealers Others

Recommended

CHART NO.4.3

RECOMMENDATIONS TO BUY THE BRAND OF THE RESPONDENTS

Friends Relatives DealersOthers

44

Page 45: Full chapter 18.7.2013

4.11 NO. OF YEARS USING THE BRAND OF REFRIGERATORS

During the course of investigation, the researcher has investigated the

no.of years using the refrigerators. The opinion of the respondents are gathered

and tabulated in table 4.11.

TABLE 4.11

NO. OF YEARS USING THE BRAND OF REFRIGERATORS

S.No. No. of years used No. of Respondents %

1 1 – 2 years 30 30

2 2 – 3 years 38 38

3 3 – 4 years 22 22

4 Above 4 years 10 10

Total 100 100

Source : Primary data

The above table shows that the no. of years using the brand of the

respondents. Out of 100 respondents, 30 percent of the respondents are using

the particular brand of 1 to 2 years, 38 percent of the respondents are using the

particular brand of 2 to 3 years, 22 percent of the respondents are using

particular brand of 3 to 4 years and 10 percent of the respondents are using

particular brand of above 4 years.

The above table clearly informs that the majority 38 percent of the

respondents are using particular brand of refrigerators 2 to 3 years.

45

Page 46: Full chapter 18.7.2013

FIGURE 4.4

NO. OF YEARS USING THE BRAND OF REFRIGERATORS

30%

38%

22%

10%

0

5

10

15

20

25

30

35

40

Per

cen

tag

e

1 – 2 years 2 – 3 years 3 – 4 years Above 4years

No. of years used

CHART NO.4.4

NO. OF YEARS USING THE BRAND OF THE RESPONDENTS

1 – 2 years 2 – 3 years 3 – 4 yearsAbove 4 years

3

46

Page 47: Full chapter 18.7.2013

4.12 PREFERENCE OF SIZE OF REFERIGERATOR

The customers are more cautions not only availability of the refrigerator

but also about the size of the refrigerators. The present study focuses attention

the size of the refrigerators preferred by the respondents. The result of the size

of the refrigerators is given in the table 4.12.

TABLE 4.12

PREFERENCE OF SIZE OF REFRIGERATORS

S.No.Size of

RefrigeratorsNo. of Respondents %

1 180 Ltr 44 44

2 220 Ltr 26 26

3 230 Ltr 26 26

4 Others 4 4

Total 100 100

Source : Primary data

The table 4.12 showed a clear picture that, out of 100 respondents,

44 percent of the respondents are using the particular size of refrigerators 180

ltr, 26 percent of the respondents are using the particular size of refrigerators

220 ltr, 26 percent of the respondents are using the particular size of

refrigerator 230 ltr and remaining 4 percent of the respondents are using the

particular size of the refrigerators others ltr.

It is inferred that the majority 44 percent of the respondents are using

particular size of refrigerators 180 ltr.

47

Page 48: Full chapter 18.7.2013

FIGURE 4.5

PREFERENCE OF SIZE OF REFRIGERATORS

44%

26% 26%

4%

0

5

10

15

20

25

30

35

40

45

Per

cent

age

180 Ltr 220 Ltr 230 Ltr Others

Size of Refrigerators

180 Ltr220 Ltr230 LtrOthers

48

Page 49: Full chapter 18.7.2013

4.13 OPINION OF THE RESPONDENTS TOWARDS PRICE

Price is the only variable factor determining the income of the business.

Pricing is the matter of vital important to both buyer and the seller in the

terminal market. The following table 4.13 denotes the opinion of the

respondents towards price.

TABLE 4.13

OPINION OF THE RESPONDENTS TOWARDS PRICE

S.No. Price Level No. of Respondents %

1 High 26 26

2 Medium 68 68

3 Low 6 6

Total 100 100

Source : Primary data

The table 4.13 clearly exhibits that, out of 100 respondents, 26 percent

of the respondents are opined that is the price is high, 68 percent of the

respondents are opined that the price is medium, 6 percent of the respondents

are opined that the price is low.

It is highly note worthy to mention that majority 68 percent of the

respondents expressed that the price of the refrigerators is medium.

49

Page 50: Full chapter 18.7.2013

FIGURE 4.6

OPINION OF THE RESPONDENTS TOWARDS PRICE

26%

68%

6%

High MediumLow

50

Page 51: Full chapter 18.7.2013

4.14 PERIOD OF HOLDING REFRIGERATORS

Generally, the period of holding refrigerator is based on quality, brand

and price of the refrigerator. The table 4.14 portrays the opinion of the

respondents towards period of holding the refrigerators.

TABLE 4.14

PERIOD OF HOLDING REFRIGERATORS

S.No. No. of years No. of Respondents %

1 Below 1 year 4 4

2 1 – 5 years 44 44

3 5 – 10 years 34 34

4 Above 10 years 18 18

Total 100 100

Source : Primary data

The above table shows that the No. of years holding the refrigerators of

the respondents. Out of 100 respondents, 4 percent of the respondents are

holding below 1 year, 44 percent of the respondents are using the refrigerator

1 to 5 years, 34 percent of the respondents are swerving refrigerators 5 to 10

years and 18 percent of the respondents are using the benefit of refrigerators

above 10 years.

It is inferred that the majority 44 percent of the respondents are using the

services for refrigerators 1 to 5 years.

51

Page 52: Full chapter 18.7.2013

FIGURE 4.7

PERIOD OF HOLDING REFRIGERATORS

4%

44%

34%

18%

0

5

10

15

20

25

30

35

40

45

Per

cen

tag

e

Below 1 year 1 – 5 years 5 – 10 years Above 10years

No. of years old Refrigerator

Below 1 year1 – 5 years5 – 10 yearsAbove 10 years

52

Page 53: Full chapter 18.7.2013

4.15 BASIC OF PURCHASE

The researcher has also gathered the opinion of the respondents towards

the basics of purchase of refrigerators the respondents expressed their opinion

and the results is shown in table 4.15.

TABLE 4.15

BASIS OF PURCHASE

S.No. Basic of Purchase No. of Respondents %

1 Cash 50 50

2 Installment 46 46

3 Hire purchase 4 4

Total 100 100

Source : Primary data

The above table 4.15 shows that, out of 100 respondents, 50 percent of

the respondents are purchase of the refrigerators in cash, 46 percent of the

respondents are purchase of the refrigerators in installment and 4 percent of the

respondents are purchased refrigerators on hire purchase basics.

It is inferred that the majority 50 percent of the respondents are

purchased refrigerators on cash.

53

Page 54: Full chapter 18.7.2013

FIGURE 4.8

BASIS OF PURCHASE

50%46%

4%

CashInstallment Hire purchase

54

Page 55: Full chapter 18.7.2013

4.16 NO.OF INSTALLMENTS

The following table 4.16 clearly expressed the no.of installments used

by the customers.

TABLE 4.16

NO. OF INSTALLMENTS

S.No.No. of

Installments No. of Respondents %

1 Single 2 5

2 2 4 9

3 2 – 4 20 43

4 Above 4 20 43

Total 46 100

Source : Primary data

The above table 4.16 shows that the no. of installment system of the

respondents. Out of 46 respondents 5 percent of the respondents are paying

single installment, 9 percent of the respondents are paying double installment,

43 percent of the respondents are paying 2 to 4 installment and 43 percent of

the respondents are paying above 4 installment.

It is concluded from the above table that majority of the respondents are

paying 2 to 4 and above 4 installment system.

55

Page 56: Full chapter 18.7.2013

CHART 4.9

NO. OF INSTALLMENTS

CHART NO.4.9

NO. OF INSTALLMENT SYSTEM OF THE REFRIGERATORS

43%

43%

9%

5%

0 10 20 30 40 50

Single

2

2 – 4

Above 4

No.

of I

nsta

llmen

t Sys

tem

Percentage

Above 42 – 42Single

56

Page 57: Full chapter 18.7.2013

4.17 REASONS FOR PREFERANCE OF BRAND

Some of the customers are satisfied with the services of refrigerator

because low maintenance, long life, service, cost and other factors. The result

is shown in table 4.17.

TABLE 4.17

REASONS FOR PREFERENCE OF BRAND

S.No. Reasons No. of Respondents %

1 Low maintenance 16 16

2 Long life 30 30

3 Service 44 44

4 Cost 4 4

5 Others 6 6

Total 100 100

Source : Primary data

The table 4.17 gives a positive impression that, out of 100 respondents,

16 percent of the respondents prefer the brand for low maintenance, 30 percent

of the respondents prefer the brand service, 4 percent of the respondents prefer

the brand for cost and 6 percent of the respondents prefer the brand for others

reasons.

It is found that, 44 percent of the respondents are preferred the brand

only for after sales services.

57

Page 58: Full chapter 18.7.2013

FIGURE 4.10

REASONS FOR PREFERENCE OF BRAND

16%

30%

44%

4% 6%

05

1015202530354045

Per

cen

tag

e

Low

mai

nten

ance

Long

life

Ser

vice

Cos

t

Oth

ers

Prefer this brand

CHART NO.4.10

PREFER FOR PURCHASE THE BRAND

Low maintenance Long life Service Cost Others

58

Page 59: Full chapter 18.7.2013

4.18 GAINING OF BENEFITS FROM REFRIGERATORS

There are different benefits of refrigerator such as fresh vegetable, cool

water, ice bar and some other benefits. The researcher is very much interested

to know the important benefits among the other benefits of refrigerators and the

result is given in the table 4.18.

TABLE 4.18

GAINING OF BENEFITS FROM REFRIGERATOR

S.No.Benefits from Refrigerators

No. of Respondents %

1 Fresh Vegetable 60 60

2 Cool water 20 20

3 Ice Bar 10 10

4 Others 10 10

Total 100 100

Source : Primary data

The table 4.18 exhibits that, out of 100 respondents, 60 percent of the

respondents getting benefits by fresh vegetables, 20 percent of the respondents

getting benefits by cool water, 10 percent of the respondents getting benefits by

ice bar and 10 percent of the respondents getting others benefits.

It is worthwhile to mentioned that, majority of the users are getting

benefits from refrigerator by storing vegetables.

59

Page 60: Full chapter 18.7.2013

FIGURE 4.11

GAINING OF BENEFITS FROM REFRIGERATOR

60%

20%

10% 10%

0

10

20

30

40

50

60

Per

cent

age

FreshVegetable

Cool water Ice Bar Others

Benefits of Refrigerators

Fresh Vegetable Cool water Ice BarOthers

60

Page 61: Full chapter 18.7.2013

4.19 OFFER GIVEN BY THE DEALER

The offers given by the dealer is given in table 4.19.

TABLE 4.19

OFFERS GIVEN BY THE DEALER

S.No. Types of Offers No. of Respondents %

1 Discount 44 52

2 Gift 36 43

3 Installment 4 5

4 Others - -

Total 84 100

Source : Primary data

From the above table it is clear that types of offers. Out of 84

respondents, 52 percent of the respondents are received discount in price, 43

percentage of the respondents are received in gift, 5 percentage of the

respondents are received in installment in price and no respondents are

receiving others type of offers.

It is inferred that the majority 52 percent of the respondents are

receiving the offers of discount in price.

61

Page 62: Full chapter 18.7.2013

FIGURE 4.12

OFFERS GIVEN BY THE DEALER

44%

36%

4%

00

5

10

15

20

25

30

35

40

45

No.

of R

espo

nden

ts

Discount Gift Installment Others

Types of Offers

Discount Gift Installment Others

62

Page 63: Full chapter 18.7.2013

4.20 SATISFACTION OF RESPONDENTS TOWARDS BRAND OF

REFRIGERATORS

Satisfaction means the act of satisfying or the state of being satisfied;

gratification of desire; contenment in possession and enjoyment; response of

mind resulting from compliance with it desires or demand. The following table

4.20 explains satisfaction of respondents towards brands of refrigerator.

TABLE 4.20

SATISFACTION OF RESPONDENTS TOWARDS

BRAND OF REFRIGERATOR

S.No. Results No. of Respondents %

1 Fully satisfied 14 14

2 Satisfied 78 78

3 Not satisfied 8 8

Total 100 100

Source : Primary data

The above table shows that the brand satisfied with the performance of

the respondents. Out of 100 respondents, 14 percent of the respondents are

highly satisfied with their brand of refrigerators, 78 percent of the respondents

are satisfied with their brand of refrigerators and 8 percent of the respondents

are dissatisfied with their brand of refrigerators.

It is understood form the above table that most of the customers are

satisfied with their brand of refrigerators.

63

Page 64: Full chapter 18.7.2013

FIGURE 4.13

SATISFACTION OF RESPONDENTS TOWARDS

BRAND OF REFRIGERATOR

14%

78%

8%

0

10

20

30

40

50

60

70

80

Per

cent

age

Fully satisfied Satisfied Not satisfied

Results

Fully satisfiedSatisfied Not satisfied

64

Page 65: Full chapter 18.7.2013

The researcher has also verified the opinion of the respondents towards the various brands of refrigerators the opinion of

respondents are given the table 4.21.

TABLE 4.21

OPINION OF THE RESPONDENTS TOWARDS THE BRANDS OF REFRIGERATOR

Ranks BPL LG Samsung Kenstar Videocon Haier Whirlpool Godrej Others Total

1 20 20 - - 4 - 50 6 - 100

2 8 6 6 4 22 6 28 20 - 100

3 10 6 14 12 22 6 4 26 - 100

4 8 28 22 8 14 4 2 14 - 100

5 18 6 24 10 26 4 4 8 - 100

6 16 18 20 22 4 4 2 10 4 100

7 14 8 6 36 - 20 10 6 - 100

8 6 8 8 4 8 56 - 10 - 100

9 - - - 4 - - - - 96 100

Total 100 100 100 100 100 100 100 100 100 900

The table 4.21 reveals that, out of 9 companies refrigerators, the whirlpool gets first rank, videocon second, Godrej third, LG

fourth, Samsung fifth, kenstar sixth, Haier seventh, BPL eight and others ninth rank.

It is inferred that the first rank scored by Whirlpool.

65

Page 66: Full chapter 18.7.2013

TABLE 4.14

OPINION OF THE RESPONDENTS TOWARDS THE BRANDS OF

REFRIGERATOR

1

2

3

4

5

6

7

8

9

0

1

2

3

4

5

6

7

8

9

10

Ran

ks

BPLLGSamsungKenstarVideoconHaierWhirlpoolGodrejOthers

66

Page 67: Full chapter 18.7.2013

RELATIONSHIP BETWEEN AGE AND MONTHLY INCOME OF THE

RESPONDENTS

Ho : There is no relationship between the age and monthly income of the

respondents.

To findout the relationship, chi-square is applied and the result of the

test is given below.

TABLE 4.22

COMPARISON BETWEEN THE AGE AND MONTHLY INCOME OF

THE RESPONDENTS

Observed Frequency:

Monthly Income

Age in yearsTotal

Below 20 20-40 40-60 Above 60

Blow Rs-5000 16 18 0 0 34

Rs-5000- Rs.10000

6 44 0 0 50

Rs-10000-Rs-15000

4 2 0 0 6

Above Rs-15000 4 4 2 0 10

Total 30 68 2 0 100

Expected Frequency

Monthly Income

Age in yearsTotal

Below 20 20-40 40-60 Above 60

Blow Rs-5000 10 24 0 0 34

Rs-5000- Rs.10000

16 34 0 0 50

Rs-10000-Rs-15000

2 4 0 0 6

Above Rs-15000 2 6 2 0 10

Total 30 68 2 0 100

67

Page 68: Full chapter 18.7.2013

CHI – Square Test:

O E (O-E) (O-E) 2(O-E)2

E

8 5 3 9 0.1883 8 -5 25 3.132 1 1 1 1.002 1 1 1 1.009 12 -3 9 0.7522 17 5 25 1.471 2 -1 1 0.552 3 -1 1 0.170 0 0 0 00 0 0 0 00 0 0 0 01 1 0 0 0

9.98

Degree of freedom

(C-1) (r-1)

(4-1) (4-1)

= 3 x 3 = 9 5% degree of freedom

Calculate value = 9.98

Table value = 23.60

Inference:

The calculate value is less then table value. Therefore the null

hypothesis is accepted. There is no association between age and monthly

income of the respondents.

68

Page 69: Full chapter 18.7.2013

COMPARISON BETWEEN THE EDUCATIONAL QUALIFICATION

AND OCCUPATION OF THE RESPONDENTS

Ho : There is no relationship between the educational qualification and

occupation of the respondents. To findout the relationship, chi-square is

applied and the result of the test is given below.

TABLE NO – 4.23

COMPARISON BETWEEN THE EDUCATIONAL QUALIFICATION

AND OCCUPATION OF THE RESPONDENTS

Observed Frequency:

Occupation Upto +2

Educational Qualification

Total

Under

Graduate

Post

Graduate Others

Business

Agriculture

Profession

Others

10

4

20

4

10

6

8

8

6

4

10

8

0

0

2

0

26

14

40

20

Total 38 32 28 2 100

Expected Frequency:

Occupation Upto +2

Educational Qualification

Total

Under

Graduate

Post

Graduate Others

Business

Agriculture

Profession

Others

10

4

20

4

10

6

8

8

6

4

10

8

0

0

2

0

26

14

40

20

Total 38 32 28 2 100

69

Page 70: Full chapter 18.7.2013

CHI – square Test:

O E (O-E) (O-E) 2(O-E)2

E

5 5 0 0 02 3 -1 1 0.3310 8 2 4 0.502 3 -1 1 0.335 4 1 1 0.253 2 1 1 0.504 6 -2 4 0.674 4 0 0 03 4 -1 1 0.252 2 0 0 05 5 0 0 04 3 1 1 0.330 0 0 0 00 0 0 0 01 1 0 0 00 0 0 0 0

3.16

Degree of freedom

(C-1) (r-1)

(4-1) (4-1)

= 3 x 3 = 9 5% degree of freedom

Calculate value = 3.16

Table value = 23.60

Inference:

The calculate value is less then table value. Therefore the null

hypothesis is accepted. There is no association between educational

qualification and occupation of the respondents.

70

Page 71: Full chapter 18.7.2013

RELATIONSHIP BETWEEN THE EDUCATIONAL QUALIFICATION

AND MONTHLY INCOME OF THE RESPONDENTS.

Ho : There is no relationship between educational qualification and monthly

income of the respondents.

To findout the relationship, chi-square test is applied and the result is

given below.

TABLE NO -4.24

COMPARISON BETWEEN THE EDUCATIONAL QUALIFICATION

AND MONTHLY INCOME OF THE RESPONDENTS

Observed Frequency:

Monthly Income

Educational Qualification

TotalUpto

+2

Under

Graduate

Post

Graduate Others

Blow Rs-5000 12 14 8 0 34

Rs-5000-Rs.10000 20 12 18 0 50

Rs-10000-Rs-15000 2 2 0 2 6

Above Rs-15000 4 4 2 0 10

Total 38 32 28 2 100

Expected Frequency:

Monthly Income

Educational Qualification

TotalUpto +2

Under

Graduate

Post

Graduate Others

Blow Rs-5000 12 10 10 2 34

Rs-5000-Rs.10000 20 16 14 0 50

Rs-10000-Rs-15000 2 2 2 0 6

Above Rs-15000 4 4 2 0 10

Total 38 32 28 2 100

71

Page 72: Full chapter 18.7.2013

CHI – square Test:

O E (O-E) (O-E) 2(O-E)2

E

6 6 0 0 010 10 0 0 01 1 0 0 02 2 0 0 07 5 2 4 0.806 8 -2 4 0.501 1 0 0 02 2 0 0 04 5 -1 1 0.209 7 2 4 0.570 1 -1 1 1.001 1 0 0 00 1 -1 1 1.000 0 0 0 01 0 1 1 00 0 0 0 0

4.07

Degree of freedom

(C-1) (r-1)

(4-1) (4-1)

= 3 x 3 = 9 5% degree of freedom

Calculate value = 4.07

Table value = 23.60

Inference:

The calculate value is less then table value. Therefore the null

hypothesis is accepted. There is no association between educational

qualification and monthly income of the respondents.

72

Page 73: Full chapter 18.7.2013

RELATIONSHIP BETWEEN THE MONTHLY INCOME AND SIZE OF

THE FAMILY OF THE RESPONDENTS.

Ho : There is no association between the monthly income and size of

the family of the respondents. To findout the relationship, chi-

square test is applied and the result is given below.

TABLE NO – 4.25

COMPARISON BETWEEN THE MONTHLY INCOME AND SIZE OF

FAMILY OF THE RESPONDENTS

OBSERVED FREQUENCY:

Size of

Family

Below

Rs.5000

Monthly IncomeAbove

Rs.15000TotalRs.5000-

Rs.10000

Rs.10000-

Rs.15000

Below 3

3 – 5

5 – 7

Above 7

16

8

8

2

10

28

12

0

4

2

0

0

4

4

2

0

34

42

22

2

Total 34 50 6 10 100

EXPECTED FREQUENCY:

Size of

Family

Below

Rs.5000

Monthly Income

Above

Rs.15000

TotalRs.5000-

Rs.10000

Rs.10000-

Rs.15000

Below 3

3 – 5

5 – 7

Above 7

12

14

6

2

16

22

12

0

2

2

2

0

4

4

2

0

34

42

22

2

Total 34 50 6 10 100

73

Page 74: Full chapter 18.7.2013

CHI – square Test:

O E (O-E) (O-E) 2(O-E)2

E

8 6 2 4 0.674 7 -3 9 1.294 3 1 1 0.331 1 0 0 05 8 -3 9 1.1314 11 3 9 0.826 6 0 0 00 0 0 0 02 1 1 1 1.001 1 0 0 00 1 -1 1 1.000 0 0 0 02 2 0 0 02 2 0 0 01 1 0 0 00 0 0 0 0

6.24

Degree of freedom

(C-1) (r-1)

(4-1) (4-1)

= 3 x 3= 9 5% degree of freedom

Calculate value = 6.24

Table value = 23.60

Inference:

The calculate value is less then table value. Therefore the null

hypothesis is accepted. There is no association between monthly income and

size of family of the respondents.

74

Page 75: Full chapter 18.7.2013

RELATIONSHIP BETWEEN THE RECOMMENDED AND NO.OF

YEAR USING THE BRAND OF THE RESPONDENTS.

Ho : There is no relationship between the recommended and no.of

years using the brand of the respondents.

To findout the relationship, chi-square test is applied, and the

result is shown below.

TABLE NO – 4.26

COMPARISON BETWEEN THE RECOMMENDED AND NO. OF

YEARS USING THE BRAND OF THE RESPONDENTS

OBSERVED FREQUENCY:

No. of Years using

the brand Friends

Recommended

Others Total

Relatives Dealers

1 - 2 Years

2 – 3 Years

3 – 4 Years

Above 4 Years

14

14

12

4

10

16

6

4

2

4

2

2

4

4

2

0

30

38

22

10

Total 22 18 5 5 100

Expected frequency:

No. of Years using

the brand Friends

Recommended

Others TotalRelatives Dealers

1 - 2 Years

2 – 3 Years

3 – 4 Years

Above 4 Years

14

16

10

4

10

14

8

4

2

4

2

2

4

4

2

0

30

38

44

10

Total 44 36 10 10 100

75

Page 76: Full chapter 18.7.2013

CHI – square Test:

O E (O-E) (O-E) 2(O-E)2

E

7 7 0 0 07 8 -1 1 0.136 5 1 1 0.202 2 0 0 05 5 0 0 08 7 +1 1 0.143 4 -1 1 0.252 2 0 0 01 1 0 0 02 2 0 0 01 1 0 0 01 1 0 0 02 2 0 0 02 2 0 0 01 1 0 0 00 0 0 0 0

0.72

Degree of freedom

(C-1) (r-1)

(4-1) (4-1)

= 3 x 3= 9 5% degree of freedom

Calculate value = 0.72

Table value = 23.60

Inference:

The calculate value is less then table value. Therefore the null

hypothesis is accepted. There is no association between recommended and no.

of years using the brand of the respondents.

76

Page 77: Full chapter 18.7.2013

CHAPTER – V

SUMMARY OF FINDINGS SUGGESTIONS AND

CONCLUSION

5.1 FINDINGS:

The refrigerator is used more than any other appliance in your kitchen.

It is work 24 hours a day. It does so much for the users keep food,

vegetables.

The refrigerator is classified as manual defrost refrigerators, partial

defrost refrigerators and frost-free refrigerators.

The first known artificial refrigerator was demonstrated by William

cullen at the university of Ggow in 1748.

It is inferred that the majority of the respondents are fall in male.

It is inferred that the majority of the respondents belong to the age group

between 20 to 40 Years.

It is inferred that the majority of the respondents are married.

It is inferred that the majority of the respondents are up to +2 level.

The Highest Percentage of the respondents are profession.

The Highest Percentages of the respondents are come under the income

group of Rs.5000 to Rs.10000 per month.

It is inferred that the majority of the respondents are all fall under 3 to 5

members group.

It is inferred that the majority of the respondents are bought single door

refrigerators.

It is inferred that the majority of the respondents are purchased whirl

pool brand of refrigerators.

It is inferred that the majority of the respondents recommended to by

buy the brand is friends.

77

Page 78: Full chapter 18.7.2013

5.2 SUGESSTIONS

Maximum number of respondents feel quality is the prime factor so,

quality is to be improved better with good service.

Cost plays a vital role during the purchase of the refrigerators. The cost

of the refrigerators may be reduced.

Latest technology is another feature which the consumers expects in

their refrigerators.

The consumers feel power consumption is absorbed lot more. So low

power consumption may also be made in the refrigerators.

Also the consumer have mind that more number of models to designed,

and more cooling facility to be inserted.

78

Page 79: Full chapter 18.7.2013

5.3 CONCLUSION

Customers are more or less satisfied towards their refrigerators. They

feel that more features to be added in the refrigerators.

Most of the customers want their refrigerators to be reasonable price.

Brand image, quality and compressor are the main factors that influence the

customers to purchase the refrigerator. That study concludes that “Satisfied

consumer would be a most effective sales promoter” for any manufacturer.

Hence the producers of refrigerators should concentrate on satisfying the

consumer needs.

79