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Dissertation Synopsis OnConsumer Buying Behaviour

With Reference To

LG ***Videocon***Samsung

Submitted By:

MOHD.ANWAR KAMALR1902A53

10907920

Submitted toMR.SATINDER SHARMA

1



INDEX

S.NO. CONTENTS PAGE

NO.

1. Acknowledgement

03

2. Certificate Of originality

3. Summary 04

4. Objective 05

5. Introduction: About Topic 06

6. Company Profile 53

7.Research Methodology 75

8. Data Analysis & Interpretation 76

9. Result / Findings 106

10. Recommendation & Conclusion 107

11. Limitations 108

12. Bibliography 109

13. Annexure – Questionnaire 110

2



ACKNOWLEDGEMENT ACKNOWLEDGEMENT

I wish to acknowledge my special thanks A.K.Bhargava (G.M of

UPTEC) for their help and cooperation in order to complete this project.

I am thankful to Mr.Avinash Pandey (faculty of UPTEC) and our

counselor who provided me with the opportunity and guided me in

successful completion of my project. Under their valuable

guidance, constant interest and encouragement, who have devoted

their ever-precious time from their busy schedule and helped me in

completing the project. His co-operation was not only useful for

this project but will be a constant source of inspiration for me in

the future for his valuable guidance which was a good learning

experience in order to make my efforts successful. Special,continual assistance while collecting the data was provided by the

respondents.

I am also thankful to those who have helped me intellectually in

preparation of this project directly or indirectly. I am deeply

indebted to the various sources of information from relevant sites

from internet and books.

3



Summary

4



Objective

To study different factors affecting thesatisfaction level of the consumer.

To gain insight into customer preferenceregarding LG, Videocon and Samsung.

To study what facilities consumer want froma company.

To compare the performance of LG,Videocon and Samsung

To study if the consumers satisfied with the

services provided by the company.

To analyze awareness among the customer about the products provided by LG, Videoconand Samsung.

5



CONSUMER BUYING BEHAVIOUR

Introduction

Meaning and definition

The study of consumer buying behavior implies how and why a particular consumer or group reacts to decisions of producers. Consumer buying

behavior could be defined as “those actions directly involved in obtaining,

consuming, and disposing of products and services, including the decisions

process that proceeds and follow the action.”

According to another author consumer behavior is “the behavior that

consumer display in scanning for purchasing, using, evaluating and

disposing of products and services that they expect will satisfy their needs.

The study of consumer buying behavior is the study of how individuals

make decisions to spend their available resources (time, money, effort) on

consumption related items. It includes the study of what to buy, when to

buy, why to buy, from where to buy, how often to buy, and how often they

will use it.”

In a competitive environment, one cannot trust a product or a consumer. The

producer has to produce what is demanded or what can be demanded. Study

of consumer behavior will help us to know what can be sold and what goods

and services are likely to get rejected.

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In short consumer buying behavior implies study of behavior of purchaser of

all goods and services whether purely consumer goods, intermediate goods

or capital goods. In other words it implies study of attitude of all consumers

in disposing of their resources. Further it is not confined to final users but

also include study of attitudes, of all those who take investment decisions

whether they consume themselves or buy for others. It also includes study of

behavior of those who are consultant, advisers and give their opinion to but

or not to buy a particular thing and the study of factors which influence their

advise/opinion.

Consumer buying behavior is an art and a science, economics, psychology,

sociology. The study of consumer buying behavior envelops all these and

more. Be it a housewife buying a tube of tooth paste, an executive buying a

tie, a school kid buying a pen or a multi-million dollar corporation buying

heavy capital equipment, the process of buying is complex and, at times,

intriguing. The consumer buying process is influenced by the consumer’s

financial position, personality, tastes, preferences, reference groups, social

standing, and even the economic sentiment that is dictated by the status of

the economy.

In short consumer buying behavior implies study of behavior of purchaser of

all goods and services whether purely consumer goods, intermediate goods

or capital goods. In other words it implies study of attitude of all consumers

in disposing of their resources. Further it is not confined to final users but

also include study of attitudes, of all those who take investment decisions

whether they consume themselves or buy for others. It also includes study of

behavior of those who are consultant, advisers and give their opinion to but

7



or not to buy a particular thing and the study of factors which influence their

advise/opinion.

Consumer buying behavior is an art and a science, economics, psychology,sociology. The study of consumer buying behavior envelops all these andmore. Be it a housewife buying a tube of tooth paste, an executive buying atie, a school kid buying a pen or a multi-million dollar corporation buyingheavy capital equipment, the process of buying is complex and, at times,intriguing. The consumer buying process is influenced by the consumer’sfinancial position, personality, tastes, preferences, reference groups, socialstanding, and even the economic sentiment that is dictated by the status of the economy

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CONCEPT

Consumer

The attitude of consumer or buyer decides how demand will emerge for a

new product and service and how existing goods and services will be sold.

The attitude in turn depends upon many economic, social, cultural, climatic

factors. The decisions are also influenced by education, stage of economic

development, lifestyle, and information, size of family and hoast of other

factors.

To understand consumers each brand has to start by asking several basic questions:

WHO?

Who is the consumer? What are consumer’s demographics? Where does she

stay? Which socio-economic class does she hail from? Who can influence

her purchase behavior?

WHY?

Why does she buy this product? This brand? What are her beliefs? What is

her attitude towards this brand and the key competitors? What needs does

this brand fulfill?

WHEN?

When does she buy the brand? Daily? Monthly? When does she use the

brand?

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WHERE?

Where does she buy the brand? Where else may she want to buy the brand?

Where does she use the brand? At home? Outside?

Customer

Who’s running the organization?

Customers!!!

By Tom Peters

It’s an old saying that customer is the ‘king’ because he is the person on

whose decision demand of any product or any service is dependent.

The purpose of a business organization is to achieve the objectives set out byits stakeholders, its shareholders, its employees and others. But among themost important players in this game are the customers of the business. No

business can be successful if it ignores the needs of its customers

Understanding consumers for brand building

The success of a brand is dictated by its acceptance by consumers and

consumer acceptance is dependent on whether or not the brand understands

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the consumer needs and fulfils them consistently. Brand building is very

important for retaining the customers.

When a brand is being launched, it is very important to understand the

consumers and figure out what will attract them to the brand.

If it is an established brand that is growing at a slow rate relative to the

market, understanding consumers will help the brand to rejuvenate itself,

with a new variant, or a new version.

Just as the consumer puts a face to an organization by using the brand as the

recognition device, it is the responsibility of the organization to recognize its

consumers. The organization should know who the regular users of the

brand are? Who are the lapsed users of the brand? Why the users are

continuing to use the brand and why the lapsed consumers have stopped

using the brand?

Understanding consumers has to start and end with a series of questions:

Who are the consumers for the brand?

Why should they buy it?

When will they buy it?

Where will they buy it from?

How often will they buy it?

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How much will they pay for it?

Whom will they consult for advice?

What are their beliefs about the product category?

What are the other products that serve the same purpose?

What is the share of this product category in solving the problem?

What are their attitudes towards the brand?

Why are some consumers never using the brand?

Why are some consumers using the brand regularly?

Buying Behaviour

Consumer will buy whatever needed by him. But whatever he buys depends

on some factors. The consumer buying is based on a particular behavior,which if predicted helps the marketer to market his products thereby

increasing the profits. This buying behavior can be explained in the following

manner:

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= * * * *

It is very important for marketers to understand consumer-buying behavior

because that is the only possibility to offer greater satisfaction for the

consumer. Although there remains a certain amount of consumer

dissatisfaction, the reason for this is that some marketers still are not

consumer oriented and do not regard customer satisfaction as a primary

objective.

Another problem is that the tools for analyzing consumer behavior are not

very precise, so it is impossible for marketers to determine what is highly

satisfying to buyers.

If a marketer can identify consumer buyer behavior, he or she will be in a

better position to target products and services at them. Buyer behavior is

focused upon the needs of individuals, groups and organizations.

BuyingBehaviour

Ability Opportunity Motivation

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Buying decision

For some purchases, a consumer will spend very little time considering the

purchase itself before making the decision to buy e.g. buying a roll of

selotape. However, in other cases, consumers will ask the opinions of other

people before making their purchase decision. Hence, marketers are always

interested in learning which people are likely to influence the purchase

decisions of a typical consumer in a target group. For example, if a member

of your family is considering attending college, then it is unlikely that they

will decide which college to attend without first discussing the matter with

several people. The opinions of parents, siblings, friends, teachers,

professional acquaintances, etc. will all have a certain degree of influence

over the person’s final decision. Identifying the key ‘influencers’ is

important. Companies may be able to target some forms of promotional

activity at the influencers, so that they in turn will speak favorably about the

company’s products/services to the actual purchaser or user.

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POTENTIAL INFLUENCES ON CONSUMER BUYINGBEHAVIOUR

Consumers are constantly being bombarded with marketing information and

promotional messages. These messages could be about new product

launches, special product promotions, and low-price offers. These appear

everywhere from television advertisements to web site banners. Consumers

do not retain much of this marketing information. However, when a

promotional message is targeted to a specific group of consumers, it can

prove very effective indeed. This is because the marketing message has been

developed to appeal specifically to people in target group of consumers.

Further more the marketing message will have been transmitted using

promotional methods that these consumers have access to e.g. the Internet,

T.V., etc.

Before developing a marketing access, a company should first determine the

likely influence on a potential consumer.

The behavior of consumer is dependent on a number of factors, which may

be economic or non-economic factors and are dependent upon economicfactors such as income, price, psychology, sociology, culture, and climate.

Therefore the study is dependent upon all these sciences and consumer

behavior scientists study it through research and they believe that behaviour

can be influenced which has been proved by actual sales promotion of a

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large number of products. However there is dispute whether customer should

be influenced or not and what methods should be applied to influence him.

In certain cases wrong statements are made that may influence the buying

behaviour. For instance, producers of certain face creams advertise that with

usage of their creams, complexion will become fair but actually it does not

happen. There are ads for removing baldness by using certain oils or creams,

but this does not happen actually.

The main factors that influence buying behaviour are as follows:

1. Economic factors:

Price

Income

Distribution of income

Competition with substitutes

Utility

Consumer preferences

2. Social factors:

Culture

Attitude of society

Social values

Life style

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Personality

Size of family

Education

Health standards

3. Psychology

It decides the personality, taste, attitudes of individuals or groups, lifestyle,

preferences especially on occasions like marriage. The demonstration

influence is also dependent upon psychology of an individual.

4. Anthropology and Geography

Climate, region, history all affect consumer behaviour. In hot countries like

India, certain products, which keep us cool like squashes, sarbats, are

demanded, but they certainly have no demand in cold regions. The dress is

also influenced by climate along with other factors. Culture is also

influenced by climate.

5. Technology

In case of equipments, whether for consumer use or industrial use, is

affected by technological innovations and features. But it is not confined to

durable goods only. Even in case of perishable goods the shelf life etc are

17



determined by technological developments. Innovations and introduction of

new products also depend upon technological change.

6. Situational influences

Purchase task - who are you buying for?

Social surroundings - who are you shopping with?

Physical surroundings - where are you shopping?

Temporal factors - how much time do you have to shop?

Antecedent states -

• What kind of mood are you in?

• Have you just been paid?

• Do you shop for status or self-gratification?

7. Others

This includes knowledge – technical or otherwise and information.

Government decisions, laws, distribution policies have also big effecton consumer behavior. All these factors are studied by consumer behavior scientists and then they decide what production and marketing strategyshould be adopted to develop a particular product, change the existing

product and what pricing and marketing mix should be used to attract morecustomers towards the product or service to optimize sales and profits.

MNC’s and few big companies have ignored except the consumer behaviour

study in India. It is because till recently say upto the beginning of 90’s there

was sellers market and anything could be sold. Therefore hardly any

attention was paid to the consumer. For instance, Hindustan Motors

18



continued to produce the same car for decades till Maruti appeared on the

arena. But with the competition emerging many cars, refrigerators, TV’s and

many items appeared on the scene. This resulted into the study of consumer

behaviour.

19



Influence of attitudes on buying behaviour

Consumer characteristics like personality, lifestyles and attitudes, provide

marketers with a fuller understanding of consumer behaviour than do

demographics alone. To understand consumer attitudes, marketers need to

know how consumers develop beliefs about and preferences for brands

based on the information they have processed. These beliefs and preferences

define consumers’ attitudes towards a brand.

Lifestyle is considered to be one of the most popular concepts in marketing

as a way of understanding consumer behaviour. Attitudes, interests and

opinions of consumers measure lifestyles.

Nature of consumer attitudes

Marketers need to know what are consumer’s likes and dislikes. In simple

explanation, these likes and dislikes are favourable or unfavourable attitudes.

Attitudes can also be defined as “learned predispositions to respond to an

object or class of objects in a consistently favourable or unfavourable way”.

This means attitudes towards brands are consumers learned tendencies to

evaluate brands in a consistently favourable or unfavourable way.

Attitudes help us understanding, why consumers do or do not buy a

particular product from a certain store. They are used for judging the

effectiveness of marketing activities, for evaluating marketing actions ever

before they are implemented within the market place.



Three components of Attitudes:

Brand beliefs, evaluations and intentions to buy define the three components

of attitudes as shown below –

These are linked to the main three components of attitudes. Brand beliefs are

the cogniting (thinking) component of attitudes, brand evaluations, the

affecting component and intention to buy, the conative component. This

linkage gives the high involvement hierarchy of effects, brand beliefs

influence evaluation, which influence intention to buy. All these components

are linked to behaviour.

There are important predicting and diagnostic differences among three

components and measures when prediction is of prime concern then

behavioural intention measures are most appropriate, since they offer the

greatest predictive power, but are limited in their diagnostic power. This is

basically because of their inability to reveal why consumers intend.

BrandBeliefs

Evaluations Intentions



For example, consumer does not want to shop from a particular store for a

number of reasons. Intention measures do not reveal these reasons like

convenient shopping hours. Therefore, reasons for consumers’ attitudes and

intention can be known by measuring beliefs.

Family influences

Family is an important influence on purchase decisions. Bonnet and

Kassarjian say “Attitudes towards personal hygiene, preferences for food

items etc. are acquired from parents.”

Peer group influences

Researchers say that peer groups are much more likely than advertising to

influence attitudes and purchasing behaviour.

Personality

Personality also affects consumer’s attitudes. Traits such as aggression,

extroversion, submissiveness or authoritarianism may influence attitudes

toward brands and products.



Information and experience

According to learning theory, consumers past experiences influence their

brand attitude and condition their future behaviour. It is seen that brand

loyalty will quickly end if brand does not perform well. Therefore,

information and experience also determines attitude.

Role of Direct or Indirect experience

Attitudes are formed as a result of direct contact with the object. Products

that fail to perform as expected can easily lead to negative attitudes.

Sometimes, even in absence of actual experience with an object one can

form attitude. For example, many consumers have never driven Mercedes –

Benz or spent a vacation in Switzerland, but then also form positive attitude

for this. Similarly, the consumers can form an attitude by just seeing the ad

that means, they can form the product attitudes.

Attitudes based on direct experience are held with more confidence. This

means consumers form stronger convictions about the product if had an

actual direct experience with it.

These processes that govern attitude formation are very important in order to

develop strategies and activities that will create, reinforce, or modify

consumer attitudes.



Attitude -Toward the Ad models

In today’s scenario, where half of the business if fetched alone through

advertising, the need for understanding the impact of advertising on

consumer attitudes toward particular products or brands has increased.

Advertisers have paid a considerable attention in developing attitude –

toward – the – ad – model.

The consumers form various judgements and feelings as and when they are

exposed to an ad. These judgements and feelings in turn affect theconsumer’s attitude toward the ad and beliefs about the brand acquired from

exposure to the ad. Finally, consumer’s attitude towards the ad and beliefs

about the brand for his/her attitude the brand.

The model says that to assess consumer’s attitude towards an ad it is

important to distinguish between cognitive evaluations of the ad (i.e.

whether it is informative or humorous) and affective responses toward the ad

(i.e. feelings like sense of fear, or smile, or laughter, etc.) and also measures

them separately.

According to this model, researcher suggests that the feelings conveyed by

an ad not only influence the attitude toward the ad but also affect the

consumer’s evaluations of the brand and also the attitude towards the brand.

However, if the gap appears after exposure of an ad (around one week) the

positive effect of a liked ad an the attitude towards a brand may change. This

usually happens when the purchase order is postponed or delayed by the

consumer after an exposure of ad.



Researchers say that both positive and negative feelings toward tend to exist

side by side where both affect attitude uniquely. So, in this wide variety of

feelings (both positive and negative) are to be assessed to study the influence

of ad exposure.

It is also seen and tested through research that the consumer’s attitude

toward the ad for a novel product (new one) will have a stronger impact on

brand attitude and purchase intention than for a familiar product.

Researchers also found that beliefs about a brand that result from ad

exposure play much stronger role in determining attitudes towards the brand

for a familiar product. So, in this research nature of attitude – object is used

in assessing the potential impact of advertising exposure.

It is observed that attitude towards a specific type of advertising (eg.

comparative) may have some impact on the attitude toward a specific ad (eg.

liking or disliking it). But attitudes toward ads in general seem to have little

impact on the attitude toward a specific ad.

Can attitudes be changed?

Formation of attitudes also explains how to change the attitudes but some

other factors are involved. The research shows that –

Exposure



Merely, exposing a subject to stimulus (product/service etc) may be enough

for the person to form positive attitudes towards the stimulus. Therefore in

low involvement products like detergents, the most heavily advertised

brands would become most familiar to the consumers, so most likely to be

picked off the supermarket shelf.

Effective communication

For changing the attitudes of consumers it is essential to treat the process of

change as a form of information processing that is being subjected to

persuasive communications. So, advertisers need to use persuasive

communications in their advertisement.

Cognitive dissonance

According to this, all people strive to be consistent, if they hold two

psychologically inconsistent beliefs / ideas / values / attitudes at the same

time or if their behaviour contradicts these cognitions, they will find a way

of reducing tension. At this moment, marketer can come up with the benefits

of the product, so the consumer can reduce tension by buying that product

and dissonance stage ends.



Influence of personality on buying behaviour

Personality has many meanings. In consumer studies, personality is defined

as consistent responses to environmental stimuli or we can also say patterns

of behaviour that are consistent and enduring. An individual’s personality

helps marketer to describe consumer segments as it provides for orderly and

coherantly related experiences and behaviour.

Personality characteristic may be a basis for product positioning. For

example, one segment of the market may die because they want to stick to

the group norms and therefore uses diet product. In contest another segment

is on diet because of internal need. Therefore, company’s positioning

strategies will be different for both. For the first segment, they will portray

group approval as a result of product use, whereas positioning for the second

segment would portray individual achievement.

Marketers have used three personality theories to describe consumers:

1. Psychoanalytic theory or Freud’s theory.

2. Sociopsychological theory.

3. Trait theory.

Psychoanalytical theory

This theory was given by Sigmund Freud. This theory stresses the

unconscious nature of personality as a result of childhood conflicts.



According to this theory, the human personality system consists of the id;

ego, superego and conflicts are derived from these three components.

Researchers who apply this theory to marketing believe that id and superego

operate to create unconscious motives for purchasing certain products.

Although consumers are primarily unaware of their true reasons for buying

what they buy. Focus of marketers is on developing means to incomes these

unconscious motives and applying psychoanalytical theory to marketing is

known as motivational research.

Socio-psychological theory

According to this theory, individual and society are interlinked. This theory

disagrees with Freud’s contention. It is also called as Neo-Freudian theory.

Researchers believe that social relationships are fundamental to the

formation and development of personality.

Karen Horney was a social theorist. She believed that personality is

developed as an individual learns to cope with basic anxieties that stems up

from parent – child relationships. She proposed that individuals could be

classified into three personality groups:

Complaint – Those individuals who moved toward others. They desire to be

loved, wanted and appreciated.

Aggressive – Those individuals who move against others. They desire to

excel and win admiration.



Detached – Those individuals who move away from others. They desire

independence, self-sufficiency and freedom from obligations.

Trait theory

This theory has been most widely used for measuring personality because it

is a quantitative approach. This theory states that an individual’s personality

is composed of definite attributes called trait. A trait can be defined as any

distinguishable, relatively enduring way in which one individual differs fromanother. For example, sociability relaxed style, amount of internal control.

Trait theorists construct personality inventories and ask respondents to

respond to many items by agreeing or disagreeing with certain statements or

expressing likes or dislikes for certain situations or types of people. These

items are then are statistically analyzed and reduced to a few personality

dimensions.

Single trait personality tests, which measure just one trait, such as self-

confidence, are increasingly being developed for use in consumer behaviour

studies. These personality tests can be designed according to the need to

measure traits such as consumer innovativeness, consumer susceptibility to

inter personal influence, consumer materialism and consumer ethnocentrism.



Personal values (self concept or self images)

Why do some people make their consumption decisions differently than

others? Personality can be one reason and another can be personal values.

Personal values ask the question “Is this product for me?” These are

particularly important in the need-recognition stage of consumer decision-

making. Values are also used by consumers while evaluating brands, as “Is

this brand for me?”

Values are basically ‘ends’ people seek in their lives. Marketing often

provides the ‘means’ to reach these ends. Values are defined as an enduring

belief that a specific mode of conduct or end-state of existence is personally

or socially preferable to an opposite or converse mode of conduct or End

State of existence. Values are relatively stable but not completely static

beliefs about what a person should do. Values are concerned with the goals

and the ways of behaving to obtain goals.

Values serve as the invisible outline for the development of many of the

other components of the culture – the ideas, customs, traditions, myths,

rituals, laws and material artifacts. In order to recognize the differences

among consumers in different cultures and sub-cultures, marketers must be

able to identify the values that define the culture and their impact on

consumer behaviour.

Self - Concept means the desire to attain self – consistency and the desire to

enhance one’s self-esteem. Attaining self-consistency means that individuals

will act in accordance with their concept of actual self. According to the



marketer actual self means consumers purchases are influenced by the image

they have of themselves. They buy products that they perceive as similar to

their self-concept. Ideal self’s concept is related to one’s self-esteem.

According to the marketer, a person who is dissatisfied with one-self will try

and purchase products that could enhance their self-esteem. For example, a

woman who is confident, efficient, modern may buy a different type of

perfume or shop at different stores than a woman who would like to be more

warm and attractive.

It is not always that our self-image influences the products we choose but

also the products we choose frequently influence our self-image. The

products purchased with symbolic value say something about us and also

what we feel about ourselves. Extended self in simple term means we are

what we wear, we are what we use. This means it emphasizes the interaction

between individuals and the symbols of environment. This shows that

consumers buy products for their symbolic value in enhancing their self-

concept.



Life style concept

Lifestyle is another factor, which influences consumer behaviour.

Lifestyle can be defined as patterns, in which people live and spend time and

money. It is one of the most popular concepts in marketing for

understanding consumer behaviour and is more comprehensive and more

useful than either personality or values. Marketers try to relate the product to

lifestyle, often through advertising, to the everyday experiences of the target

market.

Lifestyle can also be defined as a mode of living that is identified by how

people spend their time (activities), what they consider important in their

environment (interests) and what they think of themselves and the world

around them (opinions). This means lifestyle reflects a person’s activities,

interests and opinions.

Consumer psychographics

Psychographics is commonly known as study of ‘lifestyle’ of consumers. It

plays an important part in consumer behaviour and helps in the promotion of

those products and services which are related to items of personal care,

fashion, automobiles, telephonic services, etc. in a country like India where

lifestyle differs widely from region to region, the study of consumer

psychographic is of great significance to the marketer. Say for instance, what

is demanded or liked in Bengal may not be liked in Maharashtra.



Psychographic is the study of lifestyle of consumers based on their activities,

interests and opinions. The study of consumer psychographics helps to

promote sales especially of those products, which relates to personal

comforts, personal care, fashion, etc.

In a country like India consumer psychographic is of great significance in

developing products and services, segmenting markets and promoting sales.

Since the lifestyle depends on large number of factors the research also uses

demographic and both are interdependent and take the help of each other.

The psychographic research also takes the help of motivational research to

find out why people have particular lifestyle and with help of motivational

research tries to change the psychology of consumers and thus makes an

effort to change their lifestyle which become basis of action. The activities

and interest of consumers help to develop products for different segments

and modify them according to the opinion of consumers surveyed. The help

of psychographic is also taken to change the opinion and conduct opinion

surveys on social, economic, political and cultural issues.



Influence of group dynamics / peer groups / consumer reference groups

Group dynamics means how individual form groups, and how one person’s

purchasing influences the other individual’s actions.

A ‘group’ may be defined as two or more people who interact to accomplish

either individual or mutual goals.

This means that there can be an intimate group like two neighbours going

out for shopping, or a formal group like housing association members who

are more concerned about schools, parks, etc. in their vicinity.

Consumer Relevant Groups

The family

It is seen, that from childhood an individual’s needs and consumption

decisions are influenced by his/her family. Importance of family in various

decisions is based on frequency of contact that individual has with other

family members.

Friendship Groups

The immediate group, which an individual forms after he/she moves out

from the house, is friendship group. Friendships are also sign of maturity

and independence as they represent a breaking away from the family and



forming social ties with the outside world. After family, friends most likely

influence an individual’s purchase decisions. Friends fulfill a wide range of

needs like they provide companionship, security and opportunity to discuss

the matter, which they can’t with the family members.

Friend’s opinions and preferences are very important for influencing an

individual’s behaviour in determining the products or brands he/she actually

selects.

Formal Social Groups

Formal social groups, as the name says, lack intimate relationship and they

serve different function for an individual. Person joins this group to fulfill

goals like making new friends, pursuing special interest, etc. This type of

group interests marketers because often consume products together, can

discuss products or brand or stores informally with other members and

sometimes can even copy the consumption behaviour of other members

whom they admire.

Consumer relevant group could be any person or any group that a consumer

may ask for to help him / her buying a particular product. Many a times,

consumers are confused in buying some products. These products could be

of same utility, same price, different brand, etc. At such times, consumer

does not really know what to buy which brand to buy and at what price to

buy. So, here comes the need for consumer relevant groups.



Influence of social and economic classes

Consumer behaviour is influenced by environment in which one lives. A

number of factors such as culture, social class, personal influences, family,

religion and his situation affect the decision process. Amongst them social

class has great impact on consumer behaviour.

Social class can be described as “divisions within society composed of

individuals sharing similar values, interest and behaviour.”

Two-category social class scheme divides the society in two classes based

on profession or level of income i.e.

Blue collar (workers) and white collar (office jobs) understand the buying

behaviour of consumers, occupation of people is to be studied as people of

same profession are expected to behave in a similar manner. All chartered

accountants, all lawyers, all architects behave similarly. However, they may

not be having same outlook. For example, the income of a lawyer varies

between Rs.5000 per month to Rs.30 lakh per month. A doctor may earn

Rs.100 per day to Rs.10000 per day. These income differences make big

differences in their behaviour as a consumer.

Classification of social class

Occupation



To in one class marketer may not be able to get much advantage in

marketing. Therefore along with occupation there is further division based

on income. Persons of some occupation are therefore subdivided into various

classes based on income.

Education

The level of education also affects the behaviour as a consumer. An illiterate

man has no interest in newspapers; books and magazines but people with

high education need these products regularly. In the matter of other products,

consumption also differs widely, therefore sometimes it is desirable to

classify as per level of education.

Income

The income of an individual or family plays an important role in his

behaviour as a consumer. The demand of products for rich, high income,

middle income, low income and poor differs widely and therefore it is most

important criteria for social classification. But people even in same bracket

behave differently based on many other factors such as place of their

residence (urban, rural) or even state. Even people with same education,

occupation and income behave differently in different regions due to cultural

factors, climate, traditions, social customs, etc.

Religion



Religion is another factor, which influences the behaviour, as a consumer

too consumption of certain products is tobacco in some religion but

permitted in other irrespective of other factors. Jains, Brahmins, Agrawals

generally will not eat meat but it is openly consumed by many other classes.

Sikhs will not consume tobacco and cigarettes. Not only in the matter of

eating religion also affects consumption in other ways. People of different

religion have different festivals when they are gee and happy and buy new

things for self, family and for gifting. These factors affect their behaviour as

a consumer and are very important for marketer.

Life style of various social classes

The life style that is consumer behaviour of various social classes differs

widely. A person in lowest class is able to buy only the bare minimum

requirements of life. In India and some other countries there are people

living below the poverty line. This class is not able to meet even basic

minimum and live on the many of state and/or social organization for their

shelter, education of children and meeting their day-to-day requirements. On

the other extreme there are rich people either because of historical factors

like zamindars and the like. But researchers have established that lifestyle of

one social class in terms of attitude towards life; activities, behaviour and

beliefs tend to be similar. On this basis researchers segregate them in

different classes.



The decision process of individuals, families and classes are influenced by a

number of factors such as culture, social class, personal influence, region,

religion, level of income and profession, etc. In society there are divisions

based on their values, interests and behaviours and people of homogenous

natures, values, culture, interest and religion often are considered social

class. But most of the marketers have measured social class on their

economic status, profession and income. They do not consider religion,

region and other social factors very important. But generally there is an

agreement that “social classes are very broad groupings of individuals which

hold roughly similar status levels in the society.”

Influence of family in decision-making

Normally what one understands from family is husband, wife and their

children living with them in western civilization. But in India the family is

much more extended and includes all those persons who are related by

blood, marriage or adoption and reside together but often does not include

those who are residing but have close blood relations.



The role and functions of the family depends upon education, lifestyle,

family income, etc. The basic functions of family are economic well being

of members, provide emotional support, establish suitable life style for the

family and ensure proper socialization of family members, which includes

consumer socialization.

Regarding consumer decisions there are four types of parents namely

authoritarian parents, reflecting parents, democratic parents and permissive

parents. The decision-making depends to a great extent on item to be

purchased, its usage and the price.



BUYER BEHAVIOUR

Buyer behaviour model

How does a consumer make a purchase decision? What are the factors that

influence this process? How do these factors interact among themselves?

To explain in a very simple manner, say a boy feels thirsty. He wants a drink

of water. While grabbing a bottle of water, his eyes fall on the bottle of

Pepsi. Will he pick the Pepsi? What made his mother stock Pepsi at home?

Was it meant for the kid or was it meant for the guests arriving at 4 p.m.

A large amount of work has been done in the area of buyer behaviour.

Models have been developed to explain the various factors that influence

purchase behaviour.



At the heart of any buyer behaviour model is the buying process:

Need recognition

Information research

Evaluation of alternatives

Selection of Brand and Outlet

Post-purchase Reactions

The first stage refers to the need recognition. This is basically what the

consumer wants. What does the consumer needs? In the earlier example in

can be explained as the need for quenching thirst.

The second stage refers to the information search. This basically involves

your network, your sources. This will include what all drinks are available

for quenching your thirst. This will include water, soft drinks, sherbets, etc.

The third stage refers to evaluation of alternatives. This will include all the

alternatives you have and which of them is most promising in terms of your

needs.



The fourth stage refers to selection of Brand and Outlet. This is basically out

of the alternatives which brand have you selected to go in for and out of the

various outlets available, from where you are planning to buy your selected

product. This also includes buying the product.

The fifth or the last stage is the Post-purchase Reactions. This basically

includes your reaction towards the product you purchased. This stage will

show whether you are satisfied with the product or not.



How to predict buyer behaviour

This is a very important question for marketers and it has been the objective

of most personality research. Psychologists and other behavioural scientists

have theorized that personality characteristics should predict brand or store

preference and other types of buyer’s activity. We can classify them into two

major categories:

1. Consumer innovativeness and their susceptibility to interpersonal

influence.

2. Cognitive personality factors and interrelated consumption and

possession traits.

Consumer innovativeness and their susceptibility to interpersonal

influence

There are various personality traits that have helped in differentiating

between consumer innovator and non-innovators.

Consumer innovativeness means now receptive consumers are to new

products / services so that both consumers and marketers can be benefited

from the right innovation. For measuring the researchers have designed

certain instruments because personality – trait measure provides insights into

the nature of consumer’s willingness to innovate.

Dogmatic persons are those who display rigidity towards the unfamiliar and

toward information that is contrary to their own established beliefs.

Consumers who are low in dogmatism are more likely to prefer innovative



products to established alternatives. In contrast, highly dogmatic consumers

are more likely to choose established rather than innovative product

alternatives.

Variety – novelty seeking are of many types: exploratory purchase

behaviour (brand switchers for experiencing new brands), vicarious

exploration (where the consumer stores about the new information), and

use innovativeness i.e. where the consumer uses already adopted product on

a new or novel way.

Consumer researchers are also interested in knowing the traits of the

consumers who are likely to be responsive to the influence of others.

According to this theory, there are three types of interpersonal influence:

• Information influence –the tendency to accept information from

others as evidence about reality.

• Value – expressive influence – the consumers desire to enhance their

standing with others by being similar to them.

• Utilitarian influence – the consumers confirms with the wishes of

others in order to obtain a reward or avoid punishment.

Cognitive Personality factors and interrelated consumption and

possession traits

It is very interesting for the researchers to know how cognitive personality

factors influence various aspects of consumer behaviour. There are two

types of cognitive personality traits.



• Visualize v/s verbalizes – Visualizes are those who prefer visual

information and products that stress the visual and verbalizes are those

who prefer written or verbal information and products.

• Need for Cognition (NC) – Need for Cognition measures a persons

craving for or enjoyment of thinking. It is seen through research that

consumers who are high in NC are more likely to see that part of an

ad first that is rich in product – related information are unresponsive

to the contractual or peripheral aspects of the ad, such as the model or

the situation in which the product is used.

The failure of personality measures to predict consumer behaviour has given

rise to new approaches. First, is to study the personality of brands rather than

of people. Second is to develop broader behavioral concepts that are likely to

be better targets for market segmentation.

Consumers not only ascribe personality traits to products or services, they

also tend to associate personality factors with specific colours. For example,

yellow is associated with “novelty” and black means “sophistication”.

Therefore, wishing to create a sophisticated personal or a premium image

use labeling or packaging that is primarily black. In some cases, various or

even brands are associated with a specific colour with personality - like

connotations. For instance, Coco-cola is associated with red, which connotes

excitement.



Decision-making

When one decides to buy a particular product it is an economic decision and

expectations play an important role. One expects best of performance,

durability, and dependability from a product or a service. Expectancy can be

defined as “a monetary belief concerning the likelihood that a particular act

will be followed by a particular outcome.” Act is the decision to buy a

particular service or product and outcome is satisfaction or dissatisfaction

from use/consumption of purchased products or service. Finally there are a

number of alternatives for each product or service. The consumer has to

decide which one should be bought. In case of consumer non-durables

choice is immense. Be it shampoo, soap, wheat flour, cosmetics, garments or

consumer durables like car, refrigerator, washing machine, T.V., computer

or something else or services like restaurant, finance, doctor or others having

long life, degree of involvement is high.

The degree of involvement depends upon the level of knowledge,

information, psychology, culture and social system for the same product in

different settings. The involvements are ego involvement, commitment,

communication, involvement, purchase importance and extent of

information research.

The decision making process is a process where by a buyer decides to

purchase a particular product out of various available alternatives. The buyer

expects best of performance, durability and dependability, which he



evaluates from a product. The process of selection and final selection is

known as buying decision making.



PURCHASES

Methods of purchases

The method of purchase depends upon the product to be purchased and

purchase intentions. The purchases can be fully planned, partially planned or

unplanned.

Fully planned purchases

Most of the purchases of consumer durables like T.V., cars, refrigerators,

cooking range are fully planned. Similarly purchases of durables like house

property, insurance policy are fully planned. They are normally purchased

after proper evaluation of the product. In these cases consumer decides in

advance what product model and what brand he will buy. The author survey

in Delhi suggests that 90 percent of purchases of durables and consumer

durables are fully planned.

The next category of purchases is daily consumption items for which a list

of products to be purchased is decided before visiting a shop or a store i.e.

shopping list is decided before stepping out of the house. But very often the

brand is decided at the shop after looking around; only in few items the

brand is also predetermined but the decision sometimes is changed after

visiting the shop/store on the recommendation of the retailer/shop keeper or

by seeing the product.



Partially planned purchases

In this category those items fall which consumer intents to buy but does not

make a shopping list before visiting the store/shop. In this group often the

decision on the quantity to be purchased is decided by seeing the prices, the

display of packaging and the mood of the consumer at the time of purchase.

For instance, a consumer may decide before visit to the shop that what items

he wants to purchase like soap, tea, wheat flour, vegetable oil but the

quantity and the brand is decided at the store. If consumer finds that there

are discounts or sales promotion schemes, he may decide to buy larger

quantities than otherwise intended.

Unplanned purchases

Those purchases, which are made spontaneously without prior planning, are

called unplanned purchases. In such items advertisements, display,

discounts, sales promotion schemes, free coupons, lottery gifts, etc. induce a

consumer to purchase them when otherwise he has no intention to buy.

Home purchases from sales persons are largely of this nature as well as

certain purchases at the store. But study done in Delhi suggest that only 10

percent of purchases fall in this group.

Unplanned purchases occur “when a consumer experiences a sudden, often

powerful and persistent urge to buy something immediately. The impulse to

buy is hedonically complex and may stimulate emotional conflict. Also,

impulse buying is prone to occur with diminished regard to consequences”.

For example, a person from South India visits Delhi in December/January



unaware of weather. When after arrival in Delhi he feels cold, he is forced to

buy a woollen jacket. A person from Delhi when visits Kerela in

July/August without knowing that it rains heavily there all the time, he is

forced to buy an umbrella or a raincoat. This is also situational influence on

purchase decision.

When one visits a store and sees that certain products are at 80 percent

discount or ‘one is free with one’ or there is a scope of winning a lottery the

consumer puts aside ‘shopping list’ and purchases such a product, thinking

that it is bargain purchase and its advantage must be taken. This is

spontaneous purchase.

Sometimes one is influenced by sudden excitement and stimulation to

purchase a product suddenly. When one sees a store and finds a product,

which he was urging to buy for, long immediately buys it, thinking that it

may not be available when actually he will need it.

When one visits a fair, exhibition or mela almost 100 percent of purchases

are unplanned. People in India visit many fairs and melas where they go

with the intention to buy certain goods but neither have they decided in

advance their purchase basket nor they have shopping list. If they find

something attractive to purchase either price wise, quality wise or product

wise or they see some new product purchases are made spontaneously

without any prior plan.



The unplanned purchases can be under following circumstances:

Spontaneous.

Power compulsion and intensity to acquire a product.

Excitement and stimulation.

Situational influence.

Purchase in fairs, exhibitions.



Company Profile



Samsung Group

The Samsung Group (Korean: Samsung Group) is the world'slargest conglomerate. It is South Korea's largest chaebol andcomposed of numerous international businesses, all united under the Samsung brand, including Samsung Electronics, the world'slargest electronics company, Samsung Heavy Industries, one of theworld's largest shipbuilders and Samsung Engineering & Construction, a major global construction company. These three

multinationals form the core of Samsung Group and reflect itsname - the meaning of the Korean word Samsung is "tristar" or "three stars".

The Samsung brand is the best known South Korean brand in theworld and in 2005, Samsung overtook Japanese rival Sony as theworld's leading consumer electronics brand and became part of thetop twenty global brands overall. It is also the leader in manydomestic industries, such as the financial, chemical, retail and

entertainment industries. Samsung's strong influence in SouthKorea is visible throughout the nation, and is sometimes called the‘Republic of Samsung’.

http://en.wikipedia.org/wiki/Korean_language

http://en.wikipedia.org/wiki/Conglomerate_(company)

http://en.wikipedia.org/wiki/South_Korea

http://en.wikipedia.org/wiki/Chaebol

http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Samsung_Electronics

http://en.wikipedia.org/wiki/Electronics

http://en.wikipedia.org/wiki/Samsung_Heavy_Industries

http://en.wikipedia.org/wiki/Shipbuilder

http://en.wikipedia.org/wiki/Samsung_Engineering_%26_Construction



http://en.wikipedia.org/wiki/South_Korean

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Sony

http://en.wikipedia.org/wiki/Consumer_electronics

http://en.wikipedia.org/wiki/Finance

http://en.wikipedia.org/wiki/Chemical_substance

http://en.wikipedia.org/wiki/Retailing

http://en.wikipedia.org/wiki/Entertainment




http://en.wikipedia.org/wiki/Chaebol

http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Samsung_Electronics


http://en.wikipedia.org/wiki/Samsung_Heavy_Industries

http://en.wikipedia.org/wiki/Shipbuilder




http://en.wikipedia.org/wiki/South_Korean

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Sony


http://en.wikipedia.org/wiki/Finance

http://en.wikipedia.org/wiki/Chemical_substance

http://en.wikipedia.org/wiki/Retailing

http://en.wikipedia.org/wiki/Entertainment



Background

Currently helmed by Lee Soo-bin, CEO of Samsung Life Insurance, it has been run by generations of one of the world'swealthiest families, formerly by chairman Lee Kun-Hee, the thirdson of the founder, Lee Byung-Chull. Samsung Group also ownsthe Sungkyunkwan University, a major private university in SouthKorea, with many of its graduates being employed by SamsungGroup affiliates.

Many major South Korean corporations such as CJ Corporation,Hansol Group, Shinsegae Group and Joong-Ang Ilbo dailynewspaper were previously part of the Samsung Group, split apart

by the government in order to prevent Samsung from becoming too powerful. Many leading companies in South Korea, notably MP3 player manufacturer iriver and search engine portal Naver , wereestablished by ex-Samsung employees. A large number of SouthKorean firms, particularly those in the electronics industry, aredependent on Samsung for the supply of vital components or rawmaterials such as semiconductor chips or LCD panels. This has ledto continued allegations of price fixing and monopolistic practices.

Samsung Group accounts for more than 20% of South Korea's totalexports, with strong government support, including the ability to

http://en.wikipedia.org/wiki/Lee_Soo-bin

http://en.wikipedia.org/wiki/Samsung_Life_Insurance


http://en.wikipedia.org/wiki/Lee_Kun-Hee

http://en.wikipedia.org/wiki/Lee_Byung-chull

http://en.wikipedia.org/wiki/Sungkyunkwan_University

http://en.wikipedia.org/wiki/CJ_Corporation

http://en.wikipedia.org/wiki/Hansol

http://en.wikipedia.org/wiki/Shinsegae

http://en.wikipedia.org/wiki/Joong-Ang_Ilbo

http://en.wikipedia.org/wiki/Antitrust

http://en.wikipedia.org/wiki/MP3_player


http://en.wikipedia.org/wiki/Iriver

http://en.wikipedia.org/wiki/Search_engine

http://en.wikipedia.org/wiki/Naver


http://en.wikipedia.org/wiki/Price_fixing

http://en.wikipedia.org/wiki/Lee_Soo-bin



http://en.wikipedia.org/wiki/Lee_Kun-Hee


http://en.wikipedia.org/wiki/Sungkyunkwan_University


http://en.wikipedia.org/wiki/Hansol



http://en.wikipedia.org/wiki/Antitrust



http://en.wikipedia.org/wiki/Iriver

http://en.wikipedia.org/wiki/Search_engine

http://en.wikipedia.org/wiki/Naver


http://en.wikipedia.org/wiki/Price_fixing



access unlimited amount of funds from major banks in SouthKorea. In many domestic industries, Samsung Group is the solemonopoly dominating a single market, its revenue as large as somecountries' total GDP. In 2006, Samsung Group would have been

the 34th largest economy in the world if ranked, larger than that of Argentina. The company owns or has taken over so many mid tosmall sized businesses that it is often called a 'colonial empire' or 'hungry dinosaur'. The company has a powerful influence on thecountry's economic development, politics, media and culture,

being a major driving force behind the Miracle on the Han River ;many businesses today use its international success as a role model

History

http://en.wikipedia.org/wiki/GDP

http://en.wikipedia.org/wiki/Miracle_on_the_Han_River

http://en.wikipedia.org/wiki/GDP

http://en.wikipedia.org/wiki/Miracle_on_the_Han_River



1938-1969 SAMSUNG's beginnings

On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won.

At the start, his business focused primarily on trade export, sellingdried Korean fish, vegetables and fruit to Manchuria and Beijing.In little more than a decade, SAMSUNG — which means "threestars" in Korean — would have its own flour mills andconfectionery machines, its own manufacturing and sales

operations and ultimately evolve to become the modern globalcorporation that still bears the same name today.

• 1938: Lee Byung-Chull founded his small business as'Samsung Store' at Daegu

• 1950: Lee Byung-Chull founded Samsung trading companyin Seoul (YPM)

• 1951: SAMSUNG Moolsan established (now SAMSUNGCorporation)

• 1953: Samsung starts sugar production, which has since beenspun off into the CJ Corporation

• 1958: Ankuk Fire & Marine Insurance acquired (renamedSAMSUNG Fire & Marine Insurance in October 1993)

• 1963: The first Shinsegae department store opens in Seoul


http://en.wikipedia.org/wiki/Daegu


http://en.wikipedia.org/wiki/Sugar




http://en.wikipedia.org/wiki/Daegu


http://en.wikipedia.org/wiki/Sugar





• 1963: DongBang Life Insurance acquired (renamedSAMSUNG Life Insurance in July 1989)

• 1964: Samsung starts Tongyang Broadcasting Company

(TBC), which later merged with KBS• 1965: Samsung starts the Joong-Ang Ilbo daily newspaper,

which is no longer affiliated with the company• 1966: Joong-Ang Development established (known today as

SAMSUNG Everland)• 1969: Samsung Electronics was founded• 1969: SAMSUNG-Sanyo Electronics established (renamed

SAMSUNG Electro-Mechanics in March 1975 and mergedwith SAMSUNG Electronics in March 1977)

LG Group

http://en.wikipedia.org/wiki/Korean_Broadcasting_System


http://en.wikipedia.org/wiki/Korean_Broadcasting_System




The LG Group is South Korea's third largest conglomerate that produces electronics, chemicals, and telecommunications productsand operates subsidiaries like LG Electronics, LG Telecom, ZenithElectronics and LG Chem in over 80 countries. LG Groupsponsors the LG Cup Baduk Tournament.

LG Group founder Koo in Hwoi established Lak Hui ChemicalIndustrial Corp. in 1947. In 1952, Lak Hui (pronounced "Lucky",currently LG Chem) became the first Korean company to enter the

plastics industry. As the company expanded its plastics business, itestablished GoldStar Co., Ltd., (currently LG Electronics Inc.) in1958.

In 1959, Goldstar produced South Korea's first radio. Manyconsumer electronics were sold under the brand name GoldStar,while some other household products (not available outside SouthKorea) were sold under the brand name of Lucky. The Lucky

brand was famous for its hygiene products line such as soaps andHi-Ti laundry detergents, but most associated with its Lucky andPerioe toothpaste.


http://en.wikipedia.org/wiki/Conglomerate


http://en.wikipedia.org/wiki/Chemicals

http://en.wikipedia.org/wiki/Telecommunications

http://en.wikipedia.org/wiki/LG_Electronics

http://en.wikipedia.org/wiki/LG_Telecom

http://en.wikipedia.org/wiki/Zenith_Electronics


http://en.wikipedia.org/wiki/LG_Chem

http://en.wikipedia.org/wiki/LG_Cup_(Go)

http://en.wikipedia.org/wiki/Go_(board_game)

http://en.wikipedia.org/wiki/GoldStar


http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Soaps

http://en.wikipedia.org/wiki/Toothpaste


http://en.wikipedia.org/wiki/Conglomerate


http://en.wikipedia.org/wiki/Chemicals

http://en.wikipedia.org/wiki/Telecommunications

http://en.wikipedia.org/wiki/LG_Electronics

http://en.wikipedia.org/wiki/LG_Telecom



http://en.wikipedia.org/wiki/LG_Chem

http://en.wikipedia.org/wiki/LG_Cup_(Go)

http://en.wikipedia.org/wiki/Go_(board_game)

http://en.wikipedia.org/wiki/GoldStar


http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Soaps

http://en.wikipedia.org/wiki/Toothpaste



In 1995, it was renamed "LG", the abbreviation of "LuckyGoldStar". More recently, the company associates its tagline"Life's Good", with the letters LG. In January 2009 LG was able to

buy the domain name LG.com - It is now among the list of large

corporations to own a two letter domain name.. The amount of thetransaction remains confidential.

http://en.wikipedia.org/wiki/Single-letter_second-level_domains#Two-letter_domain_names

http://en.wikipedia.org/wiki/Single-letter_second-level_domains#Two-letter_domain_names



History

•

Lak Hui Chemical Industrial Corp. establishedCompany produces Lak Hui cream (cosmetic)

•

Cosmetics lab founded•

Lak Hui begins producing the first plastic dailynecessities in Korea

•

Lak Hui Industry (currently LG International Co.)established

•

Lak Hui develops Lak Hui dental cream, the firstcream-type toothpaste in Korea

•

Lak Hui produces the first PVC pipe in Korea•

Goldstar Co., Ltd., established•

Goldstar produces the first radio in Korea



Videocon Group

Videocon is an industrial conglomerate with interests all over theworld and based in India. The group has 17 manufacturing sitesin India and plants in China, Poland, Italy and Mexico. It is also

the third largest picture tube manufacturer in the world.The Videocon group has an annual turnover of US$ 4.1 billion,

making it one of the largest consumer electronic and homeappliance companies in India. Since 1998, it has expanded its

operations globally, especially in the Middle East.In India the group sells consumer products like Colour Televisions,

Washing Machines, Air Conditioners, Refrigerators,Microwave ovens and many other home appliances, selling

them through a Multi-Brand strategy with the largest sales andservice network in India.Videocon Group brands include

Sansui, Toshiba, Electrolux, Kenstar, Next etc. Videocon is oneof the largest CPT Glass manufacturers in the world, operatingin Mexico, Italy, Poland and China. An important asset for the

group is its Ravva oil field with one of the lowest operating

costs in the world producing 50,000 barrels of oil per day.


http://en.wikipedia.org/wiki/India


http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Poland

http://en.wikipedia.org/wiki/Italy

http://en.wikipedia.org/wiki/Mexico

http://en.wikipedia.org/wiki/Picture_tube

http://en.wikipedia.org/wiki/US$

http://en.wikipedia.org/wiki/Consumer_electronic

http://en.wikipedia.org/wiki/Home_appliance


http://en.wikipedia.org/wiki/Middle_East




http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Poland

http://en.wikipedia.org/wiki/Italy

http://en.wikipedia.org/wiki/Mexico

http://en.wikipedia.org/wiki/Picture_tube

http://en.wikipedia.org/wiki/US$

http://en.wikipedia.org/wiki/Consumer_electronic



http://en.wikipedia.org/wiki/Middle_East



History

Major Achievements of Videocon Industries

Ltd:

• The largest panel production facility in the world under oneroof providing very high economies of scale

• One of the world's largest and most respected CRT glassmanufacturers

•

Firing the largest furnace of its kind in the world with a tank size of 3300 sq ft• One of the few companies in the world to convert sand to TV• One of the largest and most acknowledged CPT manufacturer

in the world• Manufactured India's first rust-free Washing Machine



RESEARCH METHODOLOGY

Research methodology deals with thevarious methods of research.

Research methodology overall includesthe research design, data collection methodand analysis procedure which are used toexplore the insight information from theresearch problem.

Research methodology helps in carrying out the project report in by analyzing the variousresearch findings collected through the datacollection methods



Data Analysis & Interpretation

• What would you rate your satisfaction level of the white

products you are currently using?

[This analysis is based on below 1.2 income group]

On the basis of above analysis this income group is more satisfiedwith LG products in comparison to Samsung and Videocon.

SAMSUNG L.G VIDEOCON OTHERS

SATISFIED 40 45 36 15

DELIGHTED 35 38 29 10

NOT




[This analysis is based on 1.2-1.5 income group]

0

10

20

30

40

50

60

70

80


SATISFIED

DELIGHTED

NOT SATISFIED




NOT








NOT SATISFIED 24 20 56 79

0

10

20

30

40

50

60

70

80


SATISFIED

DELIGHTED

NOT SATISFIED



[This analysis is based on below 2.5 above income group]




NOT


0

10

20

30

40

50

60

70

80

90


SATISFIED

DELIGHTED

NOT SATISFIED



Total satisfaction level of all income group.


SATISFIED 40.5 46.25 24.25 13.25

DELIGHTED 36.5 37.75 22 8.5

NOT

SATISFIED 23 16 53.5 78.25

0

10

20

30

40

50

60

70

80


SATISFIED

DELIGHTED

NOT SATISFIED



• How would you rate the after sales service of white products you are currently using?





NOT


0

10

20

30

40

50

60

70

80


SATISFIED

DELIGHTED

NOT SATISFIED







NOT


0

10

20

30

40

50

60

70

80


SATISFIED

DELIGHTED

NOT SATISFIED



[This analysisis based on 1.5-2.5 income group]

0

10

20

30

40

50

60

70

80


SATISFIED

DELIGHTED

NOT SATISFIED




NOTSATISFIED 26 10 64 75







NOT


0

10

20

30

40

50

60


SATISFIED

DELIGHTED

NOT SATISFIED





SATISFIED 41.75 48 27.25 18

DELIGHTED 33.75 38.5 17.25 10.5

NOT

SATISFIED 24.5 13.5 55.25 71.5

0

10

20

30

40

50

60

70

80


SATISFIED

DELIGHTED

NOT SATISFIED



• Now please think about the features & benefits of the product itself. How satisfied are you with the product?





NOT


0

10

20

30

40

50

60

70

SAMSUNG VIDEOCON

SATISFIEDDELIGHTED

NOT SATISFIED







NOTSATISFIED 20 13 47 69

0

10

20

30

40

50

60

70


SATISFIED

DELIGHTED

NOT SATISFIED







NOT


0

10

20

30

40

50

60

70


SATISFIED

DELIGHTED

NOT SATISFIED





SATISFIED 43 48 29.5 17.5

DELIGHTED 34.5 38.75 21 14

NOT

SATISFIED 22.5 13.25 49.5 68.5

0

10

20

30

40

50

60

70


SATISFIED

DELIGHTED

NOT SATISFIED



• Will you Use\Purchase product again?



DEFINITELY WILL 35 38 29 10

MIGHT or MIGHT

NOT 40 45 36 15

PROBABLY WILL

NOT 25 17 35 75

0

10

20

30

40

50

60

70

80

SAMSUNG VIDEOCON

DEFINITELY WILL

MIGHT or MIGHT NOT

PROBABLY WILL NOT






MIGHT or MIGHT

NOT 43 48 23 14

PROBABLY WILL NOT 19 17 60 77

0

10

20

30

40

50

60

70

80

SAMSUNG VIDEOCON

DEFINITELY WILL

MIGHT or MIGHT NOT

PROBABLY WILL NOT






MIGHT or MIGHT NOT 39 41 23 13PROBABLY WILL NOT 24 20 56 79

0

10

20

30

40

50

60

70

80

SAMSUNG VIDEOCON

DEFINITELY WILL

MIGHT or MIGHT NOT

PROBABLY WILL NOT






MIGHT or MIGHT

NOT 40 51 16 11

PROBABLY WILL

NOT 24 10 73 82

0

10

20

30

40

50

60

70

80

90

SAMSUNG VIDEOCON

DEFINITELY WILL

MIGHT or MIGHT NOT

PROBABLY WILL NOT





DEFINITELY WILL 36.5 37.75 19.5 8.5

MIGHT or MIGHT

NOT 40.5 46.25 24.5 13.25

PROBABLY WILL

NOT 23 16 56 78.25

0

10

20

30

40

50

60

70

80

SAMSUNG VIDEOCON

DEFINITELY WILL

MIGHT or MIGHT NOT

PROBABLY WILL NOT



• How likely are you to recommend product to others?



DEFINITELY WILL RECOMMEND 41 45 23 8

NOT SURE 39 37 39 22PROBABLY WILL NOT

RECOMMED 20 18 38 70

0

10

20

30

40

50

60

70

SAMSUNG VIDEOCON

DEFINITELY WILL

RECOMMEND

NOT SURE

PROBABLY WILL NOTRECOMMED






NOT SURE 27 26 41 39

PROBABLY WILL NOT


0

10

20

30

40

50

60

SAMSUNG VIDEOCON

DEFINITELY WILL

RECOMMEND

NOT SURE

PROBABLY WILL NOT

RECOMMED






NOT SURE 37 32 18 41

PROBABLY WILL NOT


0

10

20

30

40

50

60

70

SAMSUNG VIDEOCON

DEFINITELY WILL

RECOMMEND

NOT SURE

PROBABLY WILL NOT

RECOMMED






NOT SURE 17 15 11 21

PROBABLY WILL NOT RECOMMED 34 26 57 61

0

10

20

30

40

50

60

70

SAMSUNG VIDEOCON

DEFINITELY WILL

RECOMMEND

NOT SURE

PROBABLY WILL NOT

RECOMMED





DEFINITELY WILL RECOMMEND 45.25 52.25 24.5 10

NOT SURE 30 27.5 27.25 30.75

PROBABLY WILL NOTRECOMMED 24.75 20.25 48.25 59.25

0

10

20

30

40

50

60

SAMSUNG VIDEOCON

DEFINITELY WILL

RECOMMEND

NOT SURE

PROBABLY WILL NOT

RECOMMED



• Overall how satisfied are your with product?



EXTREMELY SATISFIED 37 38 21 16

VERY SATISFIED 39 44 31 18

UNSATISFIED 24 18 48 66

0

10

20

30

40

50

60

70


EXTREMELY SATISFIED

VERY SATISFIED

UNSATISFIED





EXTREMELY


VERY SATISFIED 41 47 29 16


0

10

20

30

40

50

60

70

80


EXTREMELY SATISFIED

VERY SATISFIED

UNSATISFIED



[This analysis is based on 1.5-2.5 income group]SAMSUNG L.G VIDEOCON OTHERS

EXTREMELY


VERY STISFIED 41 49 21 19


0

10

20

30

40

50

60

70


EXTREMELY

SATISFIED

VERY STISFIED

UNSATISFIED





EXTREMELY


VERY STISFIED 43 52 29 21


0

10

20

30

40

50

60


EXTREMELY

SATISFIED

VERY STISFIED

UNSATISFIED





EXTREMELY SATISFIED 35.25 38.5 17.25 13.25

VERY STISFIED 41 48 27.5 18.5

UNSATISFIED 23.75 13.5 55.25 68.25

0

10

20

30

40

50

60

70


EXTREMELY

SATISFIED

VERY STISFIED

UNSATISFIED



Result / Findings

Through the deep comparative analysis of three brands namelySAMSUNG, LG and VIDEOCON, we have come to a conclusionthat:

LG leads among the rest of the competitors.

General mass which include the majority of middle class prefer LG for there better value for money and best productsat reasonable prices.

However SAMSUNG alienates and lead in quick

introduction of new technologies but it some how also raisesthe cost of production resulting high selling price of products.



Although VIDEOCON came first with a better management polices but didn’t adapted it with passing time and morecompetitive market.



Recommendation / Conclusion

In the field of services provide by theses MNC’s they should

enhance it with great value to satisfy the consumer and for winning there loyalty.

These company’s are spending extravagantly on their advertisement project, instead they should place their extravagant expenditure to escalate their quality of products.

The keen observation has come out with a result that in thethird generation era the consumer should be facilitated with24 x7 online support and guideline centre through Toll freenumber.

Introduce more promotional schemes and should offer morefree offers to attract the consumer.

All the companies have same policies regarding benefits sothey should come with some unique benefits.

These company should open an exclusive Showroom, so thatcustomers can get knowledge about there upcoming products.



Limitations

Due to shortage of time the study was restricted.

According to the sample size, the findings might only be

suggestive and not conclusive.

Sample was chosen according to convenience and suchsample might not be the representative of the universe.



Bibliography

Web sites:

www.marketingteacher.com

www.bized.ac.uk

www.ihec.net

www.busmgt.ulst.ac.uk

www.austrainer.com

Books:

Understanding Consumers – By M.G.Parameswaram.

Consumer Behaviour – By P.C. Jain and Monica Bhatt.

Newspapers:

The Times of India

The Economic Times

Mid Day

`



Annexure – QUESTIONNAIRE

Annexure

QUESTIONNAIREPart ADear Sir / Madam,

We are conducting a survey and have prepared a questionnaire for that and

would sincerely request you to fill it. We thank you for your co-operation.

To start with, may I have the pleasure to know some details about you.

Name: ___________________________________________________

Occupation: Service [ ] Business [ ] Professional [ ]

Income (lakhs):◘ below 1.2 ◘ 1.2-1.5 ◘ 1.5-2.5 ◘ 2.5 & above

Contact No: ________________

Interviewer’s Name: _______________ Date Of Interview: _______________

Thank You



Part BQUESTIONNAIRE

•

Which company’s product you own

Television Washing Machine Refrigerator

SAMSUNG

VIDEOCONLGOTHERS

• How long have you used the product :

Below 1 year 1 to 1.5 1.5 to 2.5 2.5 above

Never Used

• When you are going to purchase a white product, which type of person\medium

you would like to concern?

Family Friend’s Colleague’s Newspaper

Magazine Internet Catalog Any other

• Rank the factors, which make you, decide on the white products to use from 1 to

5 with 1 being the lowest and 5 being the highest.

After Sales Service Brand Durability Comfortable

Looks Price Performance Others



• Which name should come into your mind while choosing?

Television Washing Machine Refrigerator

SAMSUNG

VIDEOCONLG

OTHERS

Why ____________________________________

• What would you rate your satisfaction level of the white products you are

currently using?

SAMSUNG LG VIDEOCON OTHERS

Satisfied

Delighted

Not Satisfied

• How would you rate the after sales service of white products you are currently

using?


Satisfied

Delighted

Not Satisfied

• Now please think about the features & benefits of the product itself. How satisfiedare you with the product


Satisfied

Delighted

Not Satisfied



• Will you Use\Purchase product again?


Definitely WillMight or Might NotProbably Will Not

• How likely are you to recommend product to others?


Definitely Will Recommend

Not Sure

Probably Will Not Recommend

• Overall how satisfied are your with product?


Extremely Satisfied

Very Satisfied

Unsatisfied

• Any further suggestion related to the white product you are currently using:

final repot (2)

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