MR Report Group 4

8/2/2019 MR Report Group 4

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Consumer Buying and Decision Making Behaviour of a

Digital Camera in India

(A Report for Marketing Research)

Submitted to: Dr. P. K. Das

Submitted by Group 4 (EPGDIM 2011-13):

Kaushik Debnath (33)

Vivek Trehan (32)

Shubhradeep Baisya (27)

Indian Institute of Foreign Trade (IIFT)

B21, Qutab Institutional Area, New Delhi, India


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Table of Content:

1. Identification of Problem........3

2. Research Proposal...4

3. Data Collection (Sample Survey)......................6

4. Data Analysis.....8

5. Interpretation of Results...18

6. Conclusion...20


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1. Identification of Problem

Buying behaviour is the decision processes and acts of people involved in buying and using

product. As a result of these dynamic market conditions high tech companies frequently

depend on a product focus. In addition, a product focus is direct by the innovations in

technology rather than by the needs of the customer. This subject often leads to neglect of a

customer focus that is a key success on todays globally competitive markets. We want toanalyse the Consumer Buying and Decision Making Behaviour of a Digital Camera in India.


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2. Research Proposal

Title: Consumer Buying and Decision Making Behaviour of a Digital Camera in India

Background:

How do consumers decide which particular product, brand or service to purchase? This is an

eternal question that marketers continue to ponder over. The consumer buying behaviour is

an important research area with direct impact on the marketing process of a firm. A firms

ability to establish and maintain satisfying exchange relationships requires an understanding

of buying behaviour. Buying behaviour is the decision processes and acts of people involved

in buying and using product. As a result of these dynamic market conditions high tech

companies frequently depend on a product focus. In addition, a product focus is direct by the

innovations in technology rather than by the needs of the customer. This subject often leads

to neglect of a customer focus that is a key success on todays globally competitive markets.

The probable digital camera feature at which the consumer looks at are:

Resolution of camera (in MegaPixels)

Zoom Carl Zeiss lens Metal body Water resistant Built-in flash Extended warranty Camera design Brand loyalty Autofocus Image stabilization Brightness and colour adjustment

Video clip Shooting and scene modes ISO sensitivity Face Detection Smile recognition

Panoramic picture mode Servicing

In-built image modifier Free accessories (Pouch, tripod) Internal memory Expandable memory Slim camera Light weight LCD resolution and size Touch screen Shock resistant Battery life Li-ion battery

Recharging time Bluetooth USB Port Slide show feature Projector

Objective:

To study the current consumer behaviour who purchase digital still cameras in India

Research Design:

Data collection Method

For this research, the questionnaire contains 34 questions on Likert-scale. Items are on a

scale of one to six, with ratings of Not important and Very important as end points. The

questionnaire will be sent to around 150 people via e-mail. We want to make sure that we

have a sample size of 100. The population of the study will be my friends and colleagues of

my office.


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Analysis Technique

To test the reliability of the 34 items in the questionnaire, factor analysis will be used to

analyze the data by using the Statistic Package for the Social Science (SPSS).

Moreover, this research will use Kaiser-Meyer-Olkin (KMO) test to examine whether the data

will be fit to use factor analysis in analyzing data. Further, we will use Bartletts Test ofSphericity to test null hypothesis and to evaluate if the correlation matrix is an identity matrix.

Scree plot and cumulative % variance of Eigen value will be evaluated to select the

important factors. We want to choose enough factors to have a cumulative variance of at

least 75%.

Market Research Questionnaire Format

It contains all possible features of a still camera which a consumer may find it useful.


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Data Collection (Sample Survey)

For this research, the questionnaire contained 34 questions on Likert-scale. Items are on a

scale of one to six, with ratings of Not important and Very important as end points. The

questionnaire was sent (via e-mail) to 200 people and out of which 130 responded to the

survey. However, due to certain missing data in few of the survey, we have considered only

102 respondents. The population of the study was my friends and colleagues of my officeand few of my relatives.

Raw data from each respondent are collated into a single MS Excel document


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Analysis (Using IBM SPSS version 20.0)

Performing Factor Analysis

Factor analysis can be performed using Microsoft Excel by a process called correlation.

However, it is much easier to perform and understand a factor analysis by using SPSS. The

steps for performing factor analysis using SPSS are outlined below:

1. Enter your data into an SPSS data editor as described in the SPSS Tool Kit tutorial.2. Click on Analyze from the list at the top of the Data Editor.3. Select Data Reduction from the drop down menu.4. Click on Factor from the drop down menu (it is the only choice on this menu).5. In the window that pops up, highlight the variables from the list on the left that you

want to include in the analysis and click on the arrow button to move the variables tothe list on the right that is labeled Variables. Note that you can highlight and movemore than one variable at a time by holding down the Ctrl key on the keyboardwhile selecting.

6. Click on the box at the bottom of the window labeled Rotation.

7. In the window that pops up, select Varimax from the Method options and thenclick on Continue.8. Click on the box at the bottom of the Factor Analysis window that is labeled

Options.9. In the window that pops up, check Sorted by Size under the Coefficient Display

Format and then click on Continue.10. Click on the OK box of the Factor Analysis window.

Exporting of MS Excel data to SPSS


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Applying Factor analysis

Factor analysis: Descriptives


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Factor Analysis: Extraction

Factor Analysis: Rotations

Factor Analysis: Factor Scores


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Output of Analysis:

Analyzing the Results

After performing these steps, several new tables appear in the SPSS Viewer. There are

only two of these tables that you need to pay attention to, the one is labeled Total Variance

Explained and the other is labeled Rotated Component Matrix.

First look at the table Total Variance Explained. The first column of this table is labeled

Component. This column counts how many variables you entered into the analysis. This

is the maximum number of factors you can have. The next column is labeled Initial

Eigenvalues and is divided into three sub-columns. The first sub-column is labeled Total.

This lists the eigenvalue associated with each possible factor. The values in this column are

listed in descending order, starting with the biggest number at the top to the smallest number

at the bottom of the column. As a general rule, you want to choose as many factors as there

are components with eigenvalues greater than one. An eigenvalue is a term from linear

algebra.

The next sub-column under Initial Eigenvalues is labeled % of Variance. This column

tells you how much of the information from your original variables can be explained by each

factor, or component. The third sub-column under Initial Eigenvalues is labeled

Cumulative %. This column tells you how much of the information from your original

variables can be explained by all of the factors chosen. For example, if you chose to have

three factors, the % of Variance column would tell you how much of the information from

your original variables is explained by each factor, but the Cumulative % column would tell

you how much of the information from your original variables is explained by all three factors

combined. A general rule of thumb is that you want to choose enough factors to have a

cumulative variance of at least 75%.

Descriptive Statistics

Mean Std. Deviation Analysis N

Resolution of camera (in

Mega Pixels)5.52 .593 102

Zoom 5.36 .728 102

Carl Zeiss lens 2.97 1.181 102

Metal body 1.87 .919 102

Water resistant 2.45 .852 102

Built-in flash 2.59 .603 102

Extended warranty 2.41 .603 102

Camera design 2.49 .656 102

Brand loyalty 2.46 .655 102

Autofocus 2.28 .750 102

Image stabilization 2.26 .703 102

Brightness and colour

adjustment2.13 .685 102

Video clip 2.52 .625 102


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Shooting and scene modes 2.11 .743 102

ISO sensitivity 2.38 .676 102

Face Detection 1.61 .647 102

Smile recognition 1.72 .680 102

Panoramic picture mode 2.13 .840 102

Servicing 2.22 .654 102

In-built image modifier 1.62 .704 102

Free accessories (Pouch,

tripod)1.63 .596 102

Internal memory 2.18 .789 102

Expandable memory 1.92 .713 102

Slim camera 2.02 .771 102

Light weight 1.77 .795 102

LCD resolution and size 1.54 .713 102

Touch screen 2.18 .825 102

Shock resistant 1.80 .856 102Battery life 1.92 .754 102

Li-ion battery 1.42 .636 102

Recharging time 1.93 .812 102

Bluetooth 2.25 .727 102

USB Port 1.82 .750 102

Slide show feature 1.46 .699 102

Projector 1.42 .496 102

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .401

Bartlett's Test of Sphericity

Approx. Chi-Square 900.079

Df 595

Sig. .000

a. Kaiser-Meyer-Olkin Measure of Sampling Adequacy - This measure varies between 0

and 1, and values closer to 1 are better. A value of .6 is a suggested minimum.

b. Bartlett's Test of Sphericity - This tests the null hypothesis that the correlation matrix is an

identity matrix. An identity matrix is matrix in which all of the diagonal elements are 1 and all

off diagonal elements are 0. You want to reject this null hypothesis.

Taken together, these tests provide a minimum standard which should be passed before a

factor analysis (or a principal components analysis) should be conducted.


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Communalities

Initial Extraction


Mega Pixels)1.000 .296

Zoom 1.000 .439

Carl Zeiss lens 1.000 .491

Metal body 1.000 .388

Water resistant 1.000 .340

Built-in flash 1.000 .671

Extended warranty 1.000 .457

Camera design 1.000 .485

Brand loyalty 1.000 .557

Autofocus 1.000 .464

Image stabilization 1.000 .524


adjustment1.000 .698

Video clip 1.000 .368

Shooting and scene modes 1.000 .563

ISO sensitivity 1.000 .402

Face Detection 1.000 .467

Smile recognition 1.000 .683

Panoramic picture mode 1.000 .577

Servicing 1.000 .388

In-built image modifier 1.000 .512


tripod)

1.000 .543

Internal memory 1.000 .413

Expandable memory 1.000 .607

Slim camera 1.000 .500

Light weight 1.000 .537

LCD resolution and size 1.000 .472

Touch screen 1.000 .713

Shock resistant 1.000 .343

Battery life 1.000 .657

Li-ion battery 1.000 .193

Recharging time 1.000 .532Bluetooth 1.000 .463

USB Port 1.000 .288

Slide show feature 1.000 .482

Projector 1.000 .364

Extraction Method: Principal Component Analysis.


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Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared

Loadings

Rotation Sums of Squared Loadings

Total % of

Variance

Cumulativ

e %

Total % of

Variance

Cumulative

%

Total % of Variance Cumulative

%

1 2.715 7.757 7.757 2.715 7.757 7.757 2.400 6.858 6.858

2 2.579 7.370 15.127 2.579 7.370 15.127 2.343 6.694 13.552

3 2.411 6.889 22.015 2.411 6.889 22.015 2.216 6.332 19.883

4 2.210 6.315 28.330 2.210 6.315 28.330 2.152 6.149 26.033

5 1.965 5.614 33.944 1.965 5.614 33.944 2.047 5.848 31.880

6 1.738 4.966 38.910 1.738 4.966 38.910 2.007 5.735 37.616

7 1.670 4.771 43.681 1.670 4.771 43.681 1.915 5.470 43.086

8 1.590 4.542 48.223 1.590 4.542 48.223 1.798 5.137 48.223

9 1.491 4.260 52.483

10 1.348 3.852 56.335

11 1.270 3.628 59.963 12 1.145 3.272 63.235

13 1.086 3.103 66.338

14 1.052 3.005 69.343

15 .974 2.784 72.127

16 .940 2.686 74.813

17 .852 2.436 77.249

18 .786 2.246 79.495

19 .743 2.124 81.619

20 .723 2.067 83.685

21 .628 1.796 85.481 22 .597 1.705 87.186

23 .579 1.653 88.839

24 .522 1.490 90.329

25 .487 1.391 91.719

26 .480 1.371 93.090

27 .447 1.276 94.366

28 .402 1.150 95.516

29 .319 .911 96.427

30 .282 .806 97.233

31 .250 .714 97.946 32 .221 .630 98.576

33 .196 .559 99.136

34 .175 .500 99.636

35 .127 .364 100.000



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Component Matrixa

Component

1 2 3 4 5 6 7 8


Mega Pixels).344 .064 -.065 .067 -.087 .364 .155 -.029

Zoom -.291 .055 -.263 -.112 .110 -.329 .080 .379

Carl Zeiss lens -.039 .435 .122 .239 -.292 -.139 .042 -.349

Metal body -.138 .389 .275 -.206 -.308 .022 .067 -.008

Water resistant .190 .033 -.112 .041 -.411 .134 .298 .111

Built-in flash -.126 -.213 .534 .508 .224 -.060 .080 .080

Extended warranty -.444 .156 -.294 .236 -.247 .126 .045 .117

Camera design -.239 -.405 .048 .268 -.128 .070 .403 .076

Brand loyalty .194 -.095 -.033 .357 -.179 .457 -.320 .196

Autofocus -.284 .456 .190 .029 .067 .110 .240 .254

Image stabilization -.515 .012 .147 .101 -.404 .140 -.101 .185


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adjustment.137 .543 .405 .395 -.068 -.082 .198 -.116

Video clip .095 .385 -.409 .120 -.112 .026 .048 .116

Shooting and scene modes .312 .619 .006 .065 .022 .095 -.086 .250

ISO sensitivity .012 .031 -.249 .417 -.047 -.229 .176 .282

Face Detection .194 .450 .123 -.275 .180 -.257 -.104 .164

Smile recognition -.258 .151 .159 .492 .460 -.223 -.025 -.254

Panoramic picture mode -.433 -.143 .041 .380 .312 .231 -.256 .077

Servicing -.297 .065 .030 -.194 .115 .113 -.103 .470

In-built image modifier -.239 .203 .324 -.426 -.160 .254 .174 -.078


tripod).080 -.069 -.251 -.308 .505 -.056 .340 .015

Internal memory .233 .060 .332 -.047 .235 .048 -.186 .389

Expandable memory -.230 -.005 .422 -.158 .254 -.138 .398 .331

Slim camera .355 .270 -.029 .353 .302 .272 -.103 -.001

Light weight .474 .108 .160 -.097 .170 .209 .429 -.092LCD resolution and size .184 -.188 .027 .419 .030 -.034 .459 .116

Touch screen .669 -.292 -.073 .125 .033 -.038 -.118 .378

Shock resistant .115 .157 -.448 -.079 .142 .233 .152 .035

Battery life .273 -.441 .561 -.126 -.106 -.056 -.104 -.181

Li-ion battery -.150 -.061 .062 -.013 -.147 .262 .228 .145

Recharging time .173 -.080 -.023 -.003 -.273 -.628 .108 .121

Bluetooth .050 -.060 .527 -.209 .013 .240 -.147 .238

USB Port .140 .416 .188 .072 .022 -.148 -.153 -.092

Slide show feature -.360 .187 -.210 -.095 .451 .127 -.104 -.185

Projector -.034 -.083 -.016 -.103 .202 .346 .352 -.247Extraction Method: Principal Component Analysis.

a. 8 components extracted.

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8


Mega Pixels).038 .084 .031 -.229 .211 .065 .430 -.019

Zoom -.164 .364 -.045 .047 -.085 .035 -.483 .185Carl Zeiss lens .581 .042 .125 -.041 -.153 -.021 .005 -.332

Metal body .311 -.011 .457 -.185 -.138 -.139 -.087 .050

Water resistant .015 .166 .105 -.481 -.010 .194 .151 -.095

Built-in flash .197 -.374 -.078 .344 -.114 .564 .016 .191

Extended warranty -.051 .455 .192 .083 -.389 .158 .019 -.165

Camera design -.247 -.063 .110 -.022 -.088 .612 -.034 -.156

Brand loyalty -.072 .037 -.172 -.059 -.313 .075 .625 .152


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Autofocus .277 .275 .428 .120 -.016 .157 -.084 .284



adjustment.790 -.007 .113 -.002 .029 .226 .089 .029

Video clip .164 .545 -.081 -.146 -.011 -.076 .090 -.047

Shooting and scene modes .465 .338 -.019 -.137 .069 -.188 .210 .359

ISO sensitivity .089 .357 -.301 -.075 -.120 .378 -.117 .017

Face Detection .339 .079 -.019 -.061 .182 -.349 -.237 .361

Smile recognition .377 -.028 -.163 .659 .021 .230 -.121 -.106

Panoramic picture mode -.153 .029 -.023 .623 -.288 .198 .177 .105

Servicing -.216 .178 .216 .117 -.168 -.050 -.118 .453

In-built image modifier .035 -.133 .679 -.080 .046 -.142 -.029 .052


tripod)-.260 .171 -.028 .118 .613 -.013 -.226 .064

Internal memory .091 -.160 -.095 .015 .051 -.041 .084 .599

Expandable memory .015 -.130 .326 .089 .186 .338 -.396 .412Slim camera .293 .162 -.240 .183 .209 .018 .475 .166

Light weight .172 -.084 .100 -.215 .609 .128 .224 .080

LCD resolution and size .060 .031 -.175 -.119 .179 .622 .059 -.029

Touch screen -.130 -.088 -.593 -.373 .126 .091 .229 .347

Shock resistant -.142 .448 -.005 -.030 .287 -.089 .172 -.045

Battery life -.031 -.787 -.052 -.171 .027 .025 .052 .033

Li-ion battery -.142 .055 .305 -.098 -.051 .228 .104 .050

Recharging time .136 -.059 -.309 -.405 -.092 .090 -.479 -.059

Bluetooth -.021 -.387 .254 -.040 -.062 -.050 .147 .468

USB Port .491 -.014 -.040 .035 -.008 -.193 -.005 .082Slide show feature -.089 .242 .143 .563 .143 -.229 -.041 -.066

Projector -.159 -.016 .286 .127 .400 .131 .182 -.173


Rotation Method: Varimax with Kaiser Normalization.

Component Transformation Matrix

Component 1 2 3 4 5 6 7 8

1 .216 -.164 -.511 -.530 .464 -.122 .366 .146

2 .735 .503 .283 .035 .049 -.320 .013 .140

3 .395 -.745 .333 .060 -.068 .186 -.011 .366

4 .364 .138 -.412 .271 -.310 .620 .322 -.145

5 -.074 .026 -.212 .712 .578 -.013 -.074 .319

6 -.271 .094 .445 .091 .068 .016 .836 .092

7 .028 .181 .360 -.264 .536 .636 -.211 -.174

8 -.212 .321 -.071 -.236 -.235 .243 -.117 .814




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Component Score Coefficient Matrix

Component

1 2 3 4 5 6 7 8


Mega Pixels)-.001 .045 .058 -.092 .095 .049 .218 -.018

Zoom -.071 .171 -.050 -.009 -.037 .039 -.254 .141

Carl Zeiss lens .260 -.013 .048 -.022 -.062 -.013 -.004 -.214

Metal body .122 -.011 .199 -.106 -.062 -.052 -.034 .009Water resistant -.002 .089 .083 -.240 -.006 .124 .066 -.042

Built-in flash .092 -.143 -.046 .151 -.035 .256 .001 .095

Extended warranty -.025 .195 .079 .003 -.168 .082 .032 -.054

Camera design -.092 -.001 .072 -.043 -.004 .307 -.014 -.065

Brand loyalty -.054 .029 -.059 -.016 -.184 .014 .330 .106

Autofocus .094 .133 .186 .024 .014 .110 -.031 .158

Image stabilization -.030 .023 .149 -.034 -.279 .055 .026 .036


adjustment.331 -.010 .050 -.004 .025 .126 .024 -.023

Video clip .056 .232 -.031 -.073 -.016 -.013 .037 -.006Shooting and scene modes .162 .150 -.009 -.055 .002 -.066 .092 .192

ISO sensitivity .040 .171 -.139 -.056 -.057 .202 -.088 .043

Face Detection .128 .031 -.034 -.018 .062 -.151 -.141 .182

Smile recognition .181 -.033 -.105 .314 .041 .090 -.066 -.079

Panoramic picture mode -.068 .014 -.033 .285 -.124 .061 .122 .079

Servicing -.118 .101 .077 .030 -.087 -.014 -.039 .281

In-built image modifier .002 -.058 .315 -.055 .044 -.051 .017 .005


tripod)-.112 .084 .004 .064 .316 .027 -.123 .034

Internal memory .011 -.044 -.053 .017 -.008 -.018 .033 .328

Expandable memory -.002 -.022 .139 .009 .119 .198 -.206 .224

Slim camera .103 .069 -.092 .117 .084 .008 .234 .080

Light weight .059 -.021 .095 -.080 .302 .100 .096 .009

LCD resolution and size .031 .042 -.048 -.067 .106 .327 .001 -.009

Touch screen -.069 -.005 -.247 -.148 .007 .048 .075 .210

Shock resistant -.076 .195 .024 -.007 .141 -.017 .092 -.011

Battery life .002 -.336 -.016 -.059 .000 -.017 .017 -.018

Li-ion battery -.072 .044 .158 -.069 -.008 .128 .069 .039

Recharging time .080 -.020 -.157 -.203 -.059 .055 -.291 -.025

Bluetooth -.033 -.145 .114 -.018 -.047 -.030 .089 .245

USB Port .204 -.024 -.037 .030 -.018 -.097 -.015 .019

Slide show feature -.039 .081 .047 .270 .093 -.120 .010 -.039

Projector -.069 -.006 .168 .065 .230 .080 .112 -.114



Component Scores.


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Interpretation of Result

In the component matrix given below, we have highlighted the components in which the

camera features has got high correlation coefficient. Ideally the highest correlation coefficient

should be close to 1. The following camera features are important which should be utilized

for the marketing of the product.

Resolution of camera (in Mega Pixels)

Shooting and scene modes

Slim and Light weight camera

Touch screen

Some of the additional features should also be considered for the purpose of marketing are:

Built-in flash

Bluetooth for data transfer

Some free accessories

Battery life


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Component Matrixa

Component

1 2 3 4 5 6 7 8


Mega Pixels).344 .064 -.065 .067 -.087 .364 .155 -.029

Zoom -.291 .055 -.263 -.112 .110 -.329 .080 .379

Carl Zeiss lens -.039 .435 .122 .239 -.292 -.139 .042 -.349

Metal body -.138 .389 .275 -.206 -.308 .022 .067 -.008

Water resistant .190 .033 -.112 .041 -.411 .134 .298 .111

Built-in flash -.126 -.213 .534 .508 .224 -.060 .080 .080

Extended warranty -.444 .156 -.294 .236 -.247 .126 .045 .117

Camera design -.239 -.405 .048 .268 -.128 .070 .403 .076

Brand loyalty .194 -.095 -.033 .357 -.179 .457 -.320 .196

Autofocus -.284 .456 .190 .029 .067 .110 .240 .254



adjustment.137 .543 .405 .395 -.068 -.082 .198 -.116

Video clip .095 .385 -.409 .120 -.112 .026 .048 .116

Shooting and scene modes .312 .619 .006 .065 .022 .095 -.086 .250

ISO sensitivity .012 .031 -.249 .417 -.047 -.229 .176 .282

Face Detection .194 .450 .123 -.275 .180 -.257 -.104 .164

Smile recognition -.258 .151 .159 .492 .460 -.223 -.025 -.254

Panoramic picture mode -.433 -.143 .041 .380 .312 .231 -.256 .077

Servicing -.297 .065 .030 -.194 .115 .113 -.103 .470

In-built image modifier -.239 .203 .324 -.426 -.160 .254 .174 -.078


tripod).080 -.069 -.251 -.308 .505 -.056 .340 .015

Internal memory .233 .060 .332 -.047 .235 .048 -.186 .389

Expandable memory -.230 -.005 .422 -.158 .254 -.138 .398 .331

Slim camera .355 .270 -.029 .353 .302 .272 -.103 -.001

Light weight .474 .108 .160 -.097 .170 .209 .429 -.092

LCD resolution and size .184 -.188 .027 .419 .030 -.034 .459 .116

Touch screen .669 -.292 -.073 .125 .033 -.038 -.118 .378

Shock resistant .115 .157 -.448 -.079 .142 .233 .152 .035

Battery life .273 -.441 .561 -.126 -.106 -.056 -.104 -.181

Li-ion battery -.150 -.061 .062 -.013 -.147 .262 .228 .145

Recharging time .173 -.080 -.023 -.003 -.273 -.628 .108 .121

Bluetooth .050 -.060 .527 -.209 .013 .240 -.147 .238

USB Port .140 .416 .188 .072 .022 -.148 -.153 -.092

Slide show feature -.360 .187 -.210 -.095 .451 .127 -.104 -.185

Projector -.034 -.083 -.016 -.103 .202 .346 .352 -.247


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Deviations from the proposed study:

1. KMO test for sampling adequacy was not fulfilled. As the value is approx 0.4. At least

a value of 0.5 is required for performing the factor analysis.

2. Eigen values which were considered is greater than 1.5 instead of 1.

Conclusion:

The consumer prefers to buy a Slim and Light weight camera having a good resolution (in

Mega Pixels), different shooting and scene modes and an LCD with Touch screen display.

MR Report Group 4

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