SUMMER INTERNSHIP REPORT ON

Consumer Buying Behaviour of Godrej Appliances

SUBMITTED BY
Maman Panda Regd. No. 0806995043

UNDER THE GUID N!E "#

Prof. Kailash ch.Nayak Cha""erjee Faculty of Marketing, NIBA, Bhubaneswar $t

r. Niladri !. Dy.Manager, Direct sales, Appliance Division, Go re! " Boyce Mfg. #o. Bhubaneswar

NIIS INSTITUTE "# BUSINESS

&&'o(ed )*

DMINISTR TI"N$NIIS.%

I!TE+ M,n,-.'* o/ HRD+ Go(.. o/ Ind,a

BI0U P TN I1 UNI2ERSITY "# TE!HN"3"GY

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ACKNOWLEDGEMENT
I a% in ebte to r. Niladri !. Cha""erjee, Dy. Manager, Direct &ales, Appliance ivision, Godrej # Boyce fg. Co. $"d. Bhubaneswar, for giving %e an opportunity to work as a su%%er pro!ect trainee in this estee%e organi'ation. (is knowle ge an e)perience was a great %otivating factor. *his effort woul not have been possible without his able, efficient, valuable an ti%ely a vice, insights an thoughts. I a% very %uch thankful to sir for his valuable gui ance an support. I take this opportunity to e)press %y heartfelt gratitu e to %y faculty gui e Prof. Kailash ch. nayak, Faculty of Marketing, Niis Institute +f Business A %inistration, Bi!u ,atnaik -niversity +f *echnology.B,-*/. I a% thankful to sir for his valuable support an gui ance throughout the pro!ect. I a% also thankful to r.Pradeep %as, Direct sales, Go re! Appliance for his assistance an support, I a% e0ually grateful to each an every %e%ber of Go re! " Boyce Mfg. #o. $t . ,Bhubaneswar for their whole1hearte co1
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operation in co%pleting stipulate ti%e.

this

pro!ect

in

I e)ten %y sincere thanks to all Distributors, 2holesalers who helpe %e for %y pro!ect. $ast but not the least, I woul like to thank %y fa%ily %e%bers an frien s whose unboun e support facilitate the successful co%pletion of the pro!ect.

DECLARATION
I, aman Panda of 3st 4ear MBA, Niis Institute +f Business A %inistration, Bi!u ,atnaik -niversity +f *echnology.B,-*/ , hereby eclare that the pro!ect title Consumer Buying Behaviour of Godrej Appliances was one by %e un er the gui ance of Prof. Kailash Ch. Nayak, Faculty of Marketing, Bi!u ,atnaik -niversity, r. Niladri !. Cha""erjee, Dy.Manager, Direct sales, Appliance Division, Godrej # Boyce fg. Co. $"d, Bhubaneswar, uring 56th 7une, 5886 to 35th August, 5886. I also eclare that this pro!ect has not been sub%itte for the awar of any other egree, iplo%a, literature or recognition earlier.
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Place4 B56)ane-7a'

Maman Panda
Date4

(Regn: 0806995043)

TABLE OF CONTENT 1.Executi e Su!!a"# $.I%t"&'ucti&% t& ("&)ect *.I%t"&'ucti&% t& c&!(a%# +.C&"(&"ate P"&,ile -.G&'"e) ."&u( &, c&!(a%# /.C&%0u!e" Bu#i%. Be1a i&u" 2.Data a%al#0i0 3 i%te"("etati&% 4.Fi%'i%.0 5.Rec&!!e%'ati&% 1&.6ue0ti&%%a"ie0 11.Re,e"e%ce0
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Executive Summary
(A) Project Title

Consumer Buying Behaviour of Godrej Appliances in the Bhubaneswar Mar et!"

(B) Project Location

Godrej # Boyce Mfg" Co" $td" % Appliances &ivision' Bhubaneswar"

(C) Objectives

(")o now the reach of the Godrej Appliances in different private organi*ations' institution' govt"' homes etc and who is their competitor' who is the mar et leader etc" +" Describe the level of involvement and types of Consumerproblem-solvingprocesses. 3.Recognize the stages of the consumer buying
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decision process. 4. Explain how situational influences may affect the consumer buying decision process. 5. Understand the psychological influences that may affect the consumer buying decision process. 6. Be familiar with the social influences that affect the consumer buying decision.
(&) Research Methodology

)he research was mainly of primary research consisting of descriptive research and e,ploratory research" )he secondary research consisted of literature search and -nternet search"

8. In.'od69.,on .o P'o:e9.
i. Scope of Project )he very purpose which the company has laid down has given us enough guidelines to design the scope of the project" )he project would discuss. )he mar et share of Godrej Appliances in different sectors' to find out the competitor and mar et leader in this category"

/hich factor influence the selling' what the institution and consumerloo s before they purchase the Godrej Appliances"

0ow Godrej can increase the mar et share "

ii. Limitations
1etailers never had the lu,ury of time to offer' therefore our conversation was brief" -t would be unfair if we fail to mention that' some retailers were very helpful and Cooperative"

)he institution survey sometimes e,perienced reduced seriousness" )he no" of Appliances and the brand they were using sometimes were given in appro,imation by the person answered as he2she was not the concerned authority"

)he no of institution surveyed might not be the correct representation of the mar et"

iii. METHO OLO!" - did my project in two phases one was e,ploratory survey and other was descriptive survey" E#ploratory Research 3,ploratory 1esearch was done before - started my descriptive research in order to get the detailed idea about
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the consumer appliances industry" )his was also necessary for finding about the data related to the other brands in appliance" 4ome of the main objectives for doing 3,ploratory 1esearch are mentioned below. 4tudy of literature published on consumer appliance industry" -dentifying competitors and their details" 1esearch on innovations of other brands in appliance segment" 5bservation of display of merchandise and in%store promotions of other brands" -n depth interview of retailers and the company representative"

escriptive Research &escriptive research was done in Bhubaneswar over one month" )his was done using the structured 6uestionnaire"

INTRODUCTION TO THE COMPANY

/e are today one of the largest engineering and consumer products company in the country having varied interests from engineering to personal care products" /e are also one of the most respected corporate houses nown for our philanthropy and initiation of labour reforms besides being
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recogni*ed for our values of fair' transparent and ethical dealings" Godrej -ndia has seen both the post and pre independence days as it got established in (789" -t started its business with loc s manufacturing and at present it a provider of wide variety of services in -ndia' li e doors' furniture' loc s' software development' beverages' chocolates' chemicals for industries' home appliances etc" )he website on different associates gives full details on the dealers' their locations and maintenance tips on each product manufactured by Godrej -ndia" Godrej has captured a consumer mar et in -ndia at large scale with its brands li e 4oaps' )oiletries' 0air Care' 0ousehold Care' :abric Care' Baby Care and ;eyline Brands" Godrej and Boyce ltd deals in both the consumer products as well as industrial products" Both have wide ranges of products in it" :rom appliances to personal care in consumer products while the storage solution' machine tool service' agro products' chemicals etc comes in the industrial products category" 1ecently it has announced to increase the number of retail stores from <8 to (== by +=(=" -nvestment of 1s += crore will be made to ma e it a success" !odrej $ppliances Ltd" brings out refrigerators' washing machines' air%conditioners' microwave ovens' and &>& players in -ndia with the latest technology" 3very consumer good comes with price range and variety to serve absolutely all the strata of the society" :ully sensing the need and demand of the mar et of -) in -ndia Godrej -nfotech $imited provides -) solutions li e the development of
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software' e solutions development' customi*ation # 31?" -t also provides database outsourcing and consultancy services Godrej -ndustries ltd" manufactures 5leo chemicals" 5ver two do*ens of industries in -ndia use the chemicals made by Godrej industries" )hey all in all ma e more than hundred of such chemicals" Besides this it also produces edible oil' vanaspati and ba ery fats' and deals in medical diagnostic and real estate" )he name of this associate was Godrej 4oaps $imited till March @(' +==(" -t is big e,porter of products to <= different countries" ?roduct has 6uality that of international standard and yet at competitive price" CompanyAsA profile shows that Godrej ?roperties ltd a real estate arm of Godrej Group is doing wonders in residential sector in -ndia" it is coming up with property project in Bangalore" )he projects worth 1s" 7B= crore under the name of Godrej /oodsman 3state" -t has 7<= two and three bedroom apartments with all the modern facilities" -t is trying hard to capture the residential real estate mar et in Bangalore" 3arlier it constructed apartment in Mumbai and ?une" Godrej Beverages and :oods $td"' an associate of Godrej -ndustries has sha en hands with )he 0ershey Company of Corth America (leading name in Chocolate and confectionery) to ma e and distribute confectionaries' beverages and snac s across the -ndia" Godrej 4ara lee ltd" manufactures products those save you and your loved one" $i e mos6uito repellents' goodnight' hit' jet etc are manufactured by Godrej 4ara $ee $imited"
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Godrej Group is a name that wor s with 6uality and supply Consumer &urable goods li e doors' Almirahs' furniture' home appliances' -ndustrial ?roducts li e chemicals' 1eal 3state ?rojects li e 1esidential Apartments in Bangalore' ?une and Mumbai' Agri ?roducts and so on" Godrej has wor force of appro,imately +='=== to fulfill its aim and vision and has left no stone unturned to reach at the *enith" -ndia with <== million populations uses at least one product of Godrej in a day" /ith one more flag of Godrej ?roperties in Godrej Group it will really command the real estate in -ndia" %orporate Profile )he Company celebrated its centenary in (889" -n (789 a young man named Ardeshir Godrej gave up law and turned to loc %ma ing" Ardeshir went on to ma e safes and security e6uipment of the highest order' and then stunned the world by creating toilet soap from vegetable oil"

$rdeshir !odrej

Pirojsha !odrej

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0is brother ?irojsha Godrej carried ArdeshirAs dream forward' leading Godrej towards becoming a vibrant' multi% business enterprise" ?irojsha laid the foundation for the sprawling industrial garden township (-45 (<==(% certified) now called ?irojshanagar in the suburbs of Mumbai" Godrej touches the lives of millions of -ndians every day" )o them' it is a symbol of enduring ideals in a changing world"

Mission & 'ision()

Mission() Godrej Mission is to operate in e,isting and new businesses which capitali*e on the Godrej brand and corporate image of reliability and integrity"
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 Godrej objective is to delight our customer both in -ndia and abroad" /e shall achieve this objective through continuous improvement in 6uality' cost and customer service" /e shall strive for e,cellence by nurturing' developing and empowering our employees and suppliers" /e shall encourage an open atmosphere' conducive to learning and team wor " 'al*es()

Commitment to Duality Customer 5rientation &edication # Commitment &iscipline 0onesty # -ntegrity $earning 5rganisation
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 5penness # )ransparency 1espect2Care # Concern for ?eople )eamwor )rust

+ncorporation 3stablished in (789' the Company was incorporated with limited liability on March @' (8@+' under the -ndian Companies Act' (8(@" Sales)S*bsidiaries and $ffiliates )he Company is one of the largest privately%held diversified industrial corporations in -ndia" )he combined 4ales (including 3,cise &uty) of the Company' its subsidiaries and affiliates' during the :iscal Eear ended March @(' +==7' were about 1s" 8='=== million (F4G ('8== million)" ,oard of irectors Chairman # Managing &irector. H" C" Godrej 5ther 3,ecutive &irectors. ?" &" $am' ;" A" ?alia' >" M" Crishna' A" G" >erma Con%e,ecutive &irectors. A" B" Godrej' C" B" Godrej' ;" C" ?etigara' B" A" 0athi hanavala':" ?" 4ar ari' ?" ?" 4hah' A" 1amachandran
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Shareholders 4ince its inception' the Company is controlled by the G5&13H family based in Mumbai' -ndia" -ts shares are not listed on any 4toc 3,change" About one%fourth of the CompanyAs share capital is held by ?irojsha Godrej :oundation' a public charitable trust" ,ranches -Sales & Service. $nd ,randed Retail %hain -!odrej Lifespace. Mumbai' Ahmedabad' Bhopal' &ombivli' -ndore' Habalpur' Cashi ' ?une' 1aipur' )hane Cew &elhi-' Chandigarh' :aridabad' Gha*iabad' Gurgaon' Haipur'Halandhar' Hammu' ;anpur' $uc now' Coida Chennai' Bangalore' Coimbatore' 0yderabad' ;ochi' 4ecunderabad')rivandrum' >isa hapatnam ;ol ata ' Bhubaneswar' Guwahati' 1anchi' ?atna )he Company has a networ of I= Company%operated G5&13H $-:34?AC3 1etail 4tores' more than +'+== /holesale &ealers' and more than (7'=== 1etail 5utlets" )he Company has 1epresentative 5ffices in 4harjah (FA3)' 1iyadh (4audi Arabia) and Guang*hou (China%?1C)"

Employees (='+== (including +'=== in 4ales and 4ervice)

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,an/ers Central Ban of -ndia' Fnion Ban of -ndia' Citiban C"A"' -C-C- Ban $td"' 4tate Ban of ?atiala' and A,is Ban $td" $ppliances (8B7 %(st -ndian Company to manufacture 1efrigerators" (879 % ?ioneered ?F: (?olyurethane :oam) )echnology in -ndia" (878 % :irst company to introduce ?F: ( ?olyurethane :oam) (878 % -ntroduces -ndiaAs first and only (==J C:C' 0C:C' 0:C free refrigerators (878 % :irst company to sell (= million appliances (88< % (st Company in -ndia to sell (= million appliances" (88B % 5btains -45 8==( Certification (88I % $aunches /ashing Machines by commissioning a new manufacturing set%up at 4hirwal K 4tate%of%art Manufacturing ?lant starts operation at Mohali" (889 % $aunches Air Conditioners % 5btains -45 (<==( certification" +=== % :irst &urable Company in -ndia to launch Branded Customer 4ervice % 4MA1)CA13 +==( % $aunches ?entacool 1efrigerators with 1evolutionary :ive 4ide Cooling" +==+ % (st and only Company in -ndia to ma e its 3ntire 1efrigerator 1ange Green ((==J C:C' 0C:C # 0:C free)" +==< % Godrej 1efrigerator awarded the 4uper Brand 4tatus" &eclared Co" ( in Businessworld Consumer &elight 4urvey" +==B % $aunches Microwave 5vens and &>& players" &eclared the Most ?referred Brand in CCBC Awaa*
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Consumer Awards" +==I % $aunches 3on 1efrigerators with Cool 4hower )echnology that are adjudged the Best &esign in Consumer &urables Category at Businessworld C-& &esign Awards" % (st Company in -ndia to introduce 4team Microwave 5ven" % &eclared the Most )rusted 1efrigerator Brand in -ndia by 1eaderLs &igest" +==9 % Godrej 1efrigerators win M)rusted Brand K GoldL award for the second consecutive year from 1eaders &igest consumer survey % Godrej 1efrigerators adjudged MMost ?referred BrandL award for the third consecutive year as per the CCBC Consumer Awaa* 4urvey

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!O RE0 !RO1P O2 %OMP$3+ES

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!odrej and ,oyce Mfg. %o. Ltd Godrej # Boyce manufactures a spectrum of consumer products and industrial products" )he Consumer products include Appliances (1efrigerators' /ashing Machines' Air Conditioners' Microwaves' and &>& ?layers)' $oc s' :urniture' 4ecurity 36uipment' 5ffice Automation' Conferencing 4olutions' and vending Machines" -ndustrial ?roducts include 4torage 4olutions' Automated /arehousing' Material 0andling 36uipment' ?rocess 36uipment' ?recision Components # 4ystems' Machine )ool 4ervice' 3lectrical # 3lectronic' )ooling' and Construction Material # 4ervices" !odrej %ons*mer Prod*cts Ltd -!%PL.
-!%PL. +ncorporated on 45th 3ovember6 4777

Godrej Consumer ?roducts $td"(GC?$) is a major player in the -ndian :MCG mar et with leadership in personal' hair' household and fabric care segments" )he company employs 8B= people and has three state%of%the%art manufacturing facilities at Malanpur (M"?") Guwahati (Assam) and Baddi (0"?")" GodrejLs focus is on providing our customers with innovative' value for money solutions for meeting their daily needs and improving the 6uality of their life" )his is achieved through the brands the company mar ets"
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Godrej are among the largest mar eter of toilet soaps in the country with leading brands such as C-C)05$' :A-1G$5/' G5&13H C5 (" :A-1G$5/ brand' -ndiaAs first :airness soap' has created mar eting history as one of the most successful innovations" Godrej are the leader in the hair colour category in -ndia and have a vast product range from G5&13H 13C3/ C5$5F145:) $-DF-& 0A-1 C5$5F14' G5&13H $-DF-& # ?5/&31 0A-1 &E34 to G5&13H ;340 ;A$A 5-$' CF?F1 based 0air &yes"

!odrej +nd*stries Ltd-!+L. !+L 8as established in 9:5; Godrej -ndustries $imited is -ndiaAs leading manufacturer of oleochemicals and ma es more than a hundred chemicals for use in over two do*en industries" -t also manufactures edible oils' vanaspati and ba ery fats" G-$ is a member of the Godrej Group' which was established in (789 and has since grown into a F4G("79B billion conglomerate" )he company was called Godrej 4oaps $imited until March @(' +==(" )hereafter' the consumer products division got de%merged into Godrej Consumer ?roducts $imited' and the residual Godrej 4oaps became Godrej -ndustries $imited" )his led to the formation
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of two separate corporate entities. Godrej Consumer ?roducts and Godrej -ndustries" Besides its three businesses' Godrej -ndustries also runs four divisions N Corporate :inance' Corporate 01' Corporate Audit and Assurance and 1esearch and &evelopment N which operate on behalf of the entire Godrej Group" G-$ has built a strong manufacturing base capable of delivering international 6uality products at competitive prices" -t operates two plants' one at >alia in the -ndian state of Gujarat and a second at >i hroli in suburban Mumbai" )he companyAs products are e,ported to <= countries in Corth and 4outh America' Asia' 3urope' Australia and Africa' and it leads the -ndian mar et in the production of fatty acids' fatty alcohols and A54"

!odrej Prod*cts %ons*mer prod*cts Godrej Consumer ?roducts $td"(GC?$) is a major player in the -ndian :MCG mar et with leadership in personal' hair' household and fabric care segments" )he company is among the largest mar eters of toilet soaps in the country and has a leadership position in the hair colour category in -ndia"
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1" Appliances

+" $oc s @" :urniture <" 4ecurity e6uipment B" 5ffice automation I" Conferencing solution 9" 4oaps # personal care 7" :ood 8" Aircare (=" 0ousehold insecticides ((" 0ousing (+" >ending machine +nd*strial prod*cts( Godrej offers an entire spectrum of industrial solutions from storage to material handling to construction to process e6uipment and many' many more" /hether clients are loo ing for standard e6uipment or custom engineering solutions' the first name is Godrej" (" 4torage solution +" Automated warehousing
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@" Material handling e6uipment <" ?rocess e6uipment B" ?recision components # systems" I" Machine tool service 9" 3lectrical # electronic services 7" )ooling 8" -) solution (=" ?$M solution ((" Medical diagnostics (+" Agro product (@" Chemicals (<" Construction material # services" !O RE0 +RE%T -t is a division of G5&13H appliance' where companyLs representatives go directly to the customer and fulfill the re6uirement" -t is a initiative towards C1M" -t has started its operation in +==+ by selling contracts and AMCs" But loo ing at the need of the customer and after understanding the customer in a better way we have started selling appliances from +==B"?resently it has its operation in (B branches"

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CC1'Mumbai'Chennei';ol ata'$uc now'Haipur'0yderabad' ?une'Bangalore'Ahemedabad'Bhopal'Chandigarh'Cochin'C oimbatore and ,h*banes8ar" Cational head is Mr"1ajinder ;ool Oonal manager (M3)%Mr"Bharat Bhusan Agarwal Oonal Manager (4/)%Mr"4umit Mali !O RE0 +RE%T6 ,H1,$3ES<$R Started operation in may 477: -t has + division telecalling and &+&"in &+& (= e,ecutives are there who put up camps in different location and visit to the homes in that locality" )he average noc s per e,ecutive is @B to <="in telecalling < e,ecutives are there who call to the e,isting customer and generate the leads and the sales e,ecutive follow up the leads"

Consumer B uying B eha viour

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?ossibly the most challenging concept in mar eting deals with understanding why buyers do what they do (or donLt do)" But such nowledge is critical for mar eters since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decision% ma ing" Fsing this information' mar eters can create mar eting programs that they believe will be of interest to customers" As you might guess' factors affecting how customers ma e decisions are e,tremely comple," Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to ma e things more interesting" 4ince every person in the world is different' it is impossible to have simple rules that e,plain how buying decisions are made" But those who have spent many years analy*ing customer activity have presented us with useful guidelines! in how someone decides whether or not to ma e a purchase" -n fact' pic up any te,tboo that e,amines customer behavior and each seems to approach it from a different angle" )he perspective we ta e is to touch on just the basic concepts that appear to be commonly accepted as influencing customer behavior" /e will devote two sections of the ?rinciples of Mar eting tutorial to customer behavior" -n this section we will e,amine the buying behavior of consumers (i"e"' when people buy for personal reasons) while in section < we will e,amine factors that influence buyerLs decisions in the business mar et" )his tutorial includes the following topics. (" Consumer Buying Behavior
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+" )ypes of ?urchase &ecisions @" /hy Consumers Buy <" /hat -nfluences ?urchasing B" -nternal. ?erceptual :ilter I" -nternal. ;nowledge and Attitude 9" -nternal. ?ersonality and $ifestyle 7" -nternal. 1oles and Motivation 8" 3,ternal. Culture and Groups (=" 3,ternal. 4ituation ((" 0ow Consumers Buy (+" ?urchase &ecision 4teps ( and + (@" ?urchase &ecision 4teps @' < and B Types of %ons*mer P*rchase ecisions Consumers are faced with purchase decisions nearly every day" But not all decisions are treated the same" 4ome decisions are more comple, than others and thus re6uire more effort by the consumer" 5ther decisions are failry routine and re6uire little effort" -n general' consumers face four types of purchase decisions. P Minor Cew ?urchases K these purchases represent something new to a consumer but in the customerLs mind is not a very important purchase in terms of need' money or other reason (e"g"' status within a group)" P Minor 1e%?urchases K these are the most routine of all purchases and often the consumer returns to purchase the
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same product without giving much thought to other product options (i"e"' consumer is brand loyalty)" P Major Cew ?urchases K these purchases are the most difficult of all purchases because these are important to the consumer but the consumer has little or no previous e,perience ma ing the purchase " )his type of decision often (but not always) re6uires the consumer to engage in an e,tensive decision%ma ing process" P Major 1e%?urchase % these purchase decisions are also important to the customer but the customer feels more confident in ma ing the decision since they have e,perienced purchasing the product in the past" :or mar eters it is important to understand how consumers treat the purchase decisions they face" -f a company is targeting customers who feel a purchase decision is difficult (i"e"' Major Cew ?urchase)' their mar eting strategy may vary greatly from a company targeting customers who view the purchase decision as routine" -n fact' the same company may face both situations at the same timeQ for some the product is new' while other customers see the purchase as routine" )he implication of buying behavior for mar eters is that different buying situations re6uire different mar eting efforts" <hy %ons*mers ,*y As we discussed in ?art (. /hat is Mar etingR' customers ma e purchases in order to satisfy needs" 4ome of these needs are basic and must be filled by everyone on the planet (e"g"' food' shelter) while others are not re6uired for basic
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survival and vary depending on the person" -t probably ma es more sense to classify needs that are not a necessity as wants or desires" -n fact' in many countries where the standard of living is very high' a large portion of the populationLs income is spent on wants and desires rather than on basic needs" -n this tutorial when we mention the consumer we are referring to the actual buyer' the person spending the money" But is should also be pointed out that the one who does the buying is not necessarily the user of what is bought and that others may be involved in the buying decision in addition to the actual buyer" /hile the purchasing process in the consumer mar et is not as comple, as the business mar et' having multiple people involved in a purchase decision is not unusual" :or e,ample' in planning for a family vacation the mother may ma e the hotel reservations but others in the family may have input on the hotel choice" 4imilarly' a father may purchase snac s at the grocery store but his young child may be the one who selected it from the store shelf" 4o understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases"

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<hat +nfl*ences P*rchasing As we discussed the decision%ma ing process for consumers is anything but straight forward" )here are many factors that can affect this process as a person wor s through the purchase decision" )he number of potential influences on consumer behavior is limitless" 0owever' mar eters are well served to understand the ;3E influences" By doing so they may be in a position to tailor their mar eting efforts to ta e advantages of these influences in a way that will satisfy the consumer and the mar eter (remember this is a ey part of the definition of mar eting)"

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31

:or the purposes of this tutorial we will brea these influences down into three main categories. -nternal' 3,ternal and Mar eting" 0owever' those interested in learning more about customer buying activity may want to consult one or more consumer behavior boo s where they will find additional methods for e,plaining consumer buying behavior" :or the most part the influences are not mutually e,clusive" -nstead' they are all interconnected and' as we will see' wor together to form who we are and how we behave" :or each of the influences that are discussed we will provide a basic description and also suggest its implication to mar eters" Bear in mind we only provide a few mar eting implications for each influenceQ clearly there are many more"

+3TER3$L +32L1E3%ES /e start our e,amination of the influences on consumer purchase decisions by first loo ing inside ourselves to see which are the most important internal factors that affect how we ma e choices" Percept*al 2ilter ?erception is how we see ourselves and the world we live in" 0owever' what ends up being stored inside us doesnLt always get there in a direct manner" 5ften our mental ma eup results from information that has been consciously or unconsciously filtered as we e,perience it' a process we
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refer to as a perceptual filter" )o us this is our reality' though it does not mean it is an accurate reflection on what is real" )hus' perception is the way we filter stimuli (e"g"' someone tal ing to us' reading a newspaper story) and then ma e sense out of it" ?erception has several steps" P 3,posure K sensing a stimuli (e"g" seeing an ad) P Attention K an effort to recogni*e the nature of a stimuli (e"g" recogni*ing it is an ad) P Awareness K assigning meaning to a stimuli (e"g"' humorous ad for particular product) P 1etention K adding the meaning to oneLs internal ma eup (i"e"' product has fun ads) @

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0ow these steps are eventually carried out depends on a personLs approach to learning" By learning we mean how someone changes what they now' which in turn may affect how they act" )here are many theories of learning' a discussion of which is beyond the scope of this tutorial' however' suffice to say that people are li ely to learn in different ways" :or instance' one person may be able to focus very strongly on a certain advertisement and be able to retain the information after being e,posed only one time while another person may need to be e,posed to the same advertisement many times before he2she even recogni*es what it is" Consumers are also more li ely to retain information if a person has a strong interest in the stimuli" -f a person is in need of new car they are more li ely to pay attention to a new advertisement for a car while someone who does not need a car may need to see the advertisement many times before they recogni*e the brand of automobile" Mar eting -mplication. Mar eters spend large sums of money in an attempt to get customers to have a positive impression of their products" But clearly the e,istence of a perceptual filter suggests that getting to this stage is not easy" 3,posing consumers to a product can be very challenging considering the amount of competing product messages (ads) that are also trying to accomplish the same objective (i"e"' advertising clutter)" 4o mar eters must be creative and use various means to deliver their message 5nce the message reaches consumer it must be interesting enough to capture the their attention (e"g"' tal about the productLs benefits)" But attending to the message is not enough" :or mar eters the most critical step is the one
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that occurs with awareness" 0ere mar eters must continually monitor and respond if their message becomes distorted in ways that will negatively shape its meaning" )his can often happen due in part to competitive activity (e"g"' comparison advertisements)" :inally' getting the consumer to give positive meaning to the message they have retained re6uires the mar eter ma e sure that consumers accurately interpret the facts about the product" =no8ledge ;nowledge is the sum of all information nown by a person" -t is the facts of the world as he2she nows it and the depth of nowledge is a function of the breadth of worldly e,periences and the strength of an individualLs long%term memory" 5bviously what e,ists as nowledge to an individual depends on how an individualLs perceptual filter ma es sense of the information it is e,posed to" Mar eting -mplications. Mar eters may conduct research that will gauge consumersL level of nowledge regarding their product" As we will see below' it is li ely that other factors influencing consumer behavior are in large part shaped by what is nown about a product" )hus' developing methods (e"g"' incentives) to encourage consumers to accept more information (or correct information) may affect other influencing factors" $ttit*de -n simple terms attitude refers to what a person feels or believes about something" Additionally' attitude may be reflected in how an individual acts based on his or her beliefs" 5nce formed' attitudes can be very difficult to
35

change" )hus' if a consumer has a negative attitude toward a particular issue it will ta e considerable effort to change what they believe to be true" Mar eting -mplication. Mar eters facing consumers who have a negative attitude toward their product must wor to identify the ey issues shaping a consumerLs attitude then adjust mar eting decisions (e"g"' advertising) in an effort to change the attitude" :or companies competing against strong rivals to whom loyal consumers e,hibit a positive attitude' an important strategy is to wor to see why consumers feel positive toward the competitor and then try to meet or beat the competitor on these issues" Alternatively' a company can try to locate customers who feel negatively toward the competitor and then increase awareness among this group" Personality An individualLs personality relates to perceived personal characteristics that are consistently e,hibited' especially when one acts in the presence of others" -n most' but not all' cases the behaviors one projects in a situation is similar to the behaviors a person e,hibits in another situation" -n this way <

36

personality is the sum of sensory e,periences others get from e,periencing a person (i"e"' how one tal s' reacts)" /hile oneLs personality is often interpreted by those we interact with' the person has their own vision of their personality' called self concept' which may or may not be the same has how others view us" Mar eting -mplication. :or mar eters it is important to now that consumers ma e purchase decisions to support their self concept" Fsing research techni6ues to identify how customers view themselves may give mar eters insight into products and promotion options that are not readily apparent" :or e,ample' when e,amining consumers a mar eter may initially build mar eting strategy around more obvious clues to consumption behavior' such as consumerLs demographic indicators (e"g"' age' occupation' income)" 0owever' in% depth research may yield information that shows consumers are purchasing products to fulfill self%concept objectives that have little to do with the demographic category they fall into (e"g"' senior citi*en may be ma ing purchases that ma e them feel younger)" Appealing to the consumerLs self concept needs could e,pand the mar et to which the product is targeted" Lifestyle )his influencing factor relates to the way we live through the activities we engage in and interests we e,press" -n simple terms it is what we value out of life" $ifestyle is often determined by how we spend our time and money" Mar eting -mplication.
37

?roducts and services are purchased to support consumersL lifestyles" Mar eters have wor ed hard researching how consumers in their target mar ets live their lives since this information is ey to developing products' suggesting promotional strategies and even determining how best to distribute products" )he fact that lifestyle is so directly tied to mar eting activity will be further e,amined as we discuss developing target mar et strategies (4ee ?art B K )argeting Mar ets)" Roles 1oles represent the position we feel we hold or others feel we should hold when dealing in a group environment" )hese positions carry certain responsibilities yet it is important to understand that some of these responsibilities may' in fact' be perceived and not spelled out or even accepted by others" -n support of their roles' consumers will ma e product choices that may vary depending on which role they are assuming" As illustration' a person who is responsible for selecting snac food for an office party his boss will attend may choose higher 6uality products than he would choose when selecting snac s for his family" Mar eting -mplication. Advertisers often show how the benefits of their products aid consumers as they perform certain roles" )ypically the underlying message of this promotional approach is to suggest that using the advertiserLs product will help raise oneLs status in the eyes of others while using a competitorLs product may have a negative effect on status" Motivation
38

Motivation relates to our desire to achieve a certain outcome" Many internal factors we have already discussed can affect a customerLs desire to achieve a certain outcome but there are others" :or instance' when it comes to ma ing purchase decisions customersL motivation could be affected by such issues as financial position (e"g"' can - afford the purchaseR)' time constraints (e"g"' do - need to ma e the purchase 6uic lyR)' overall value (e"g"' am - getting my moneyLs worthR)' and perceived ris (e"g"' what happens if ma e a bad decision)" Mar eting -mplication. Motivation is also closely tied to the concept of involvement' which relates to how much effort the consumer will e,ert in ma ing a decision" 0ighly motivated consumers will want to get mentally and physically involved in the purchase process" Cot all products have a high percentage of highly involved customers (e"g"' mil ) but mar eters who mar et products and services that may lead to high level of consumer involvement should prepare options that will be attractive to this group" :or B

39

instance' mar eters should ma e it easy for consumers to learn about their product (e"g"' information on website' free video preview) and' for some products' allow customers to e,perience the product (e"g"' free trial) before committing to the purchase" E>TER3$L +32L1E3%ES Consumer purchasing decisions are often affected by factors that are outside of their control but have direct or indirect impact on how we live and what we consume" %*lt*re Culture represents the behavior' beliefs and' in many cases' the way we act learned by interacting or observing other members of society" -n this way much of what we do is shared behavior' passed along from one member of society to another" Eet culture is a broad concept that' while of interest to mar eters' is not nearly as important as understanding what occurs within smaller groups or sub% cultures to which we may also belong" 4ub%cultures also have shared values but this occurs within a smaller groups" :or instance' sub%cultures e,ist where groups share similar values in terms of ethnicity' religious beliefs' geographic location' special interests and many others" Mar eting -mplication. As part of their efforts to convince customers to purchase their products' mar eters often use cultural representations' especially in promotional appeals" )he objective is to connect to consumers using cultural references that are easily understood and often embraced by the consumer" By doing so the mar eter hopes the consumer feels more
40

comfortable with or can relate better to the product since it corresponds with their cultural values" Additionally' smart mar eters use strong research efforts in an attempt to identify differences in how sub%culture behaves" )hese efforts help pave the way for spotting trends within a sub% culture' which the mar eter can capitali*e on through new mar eting tactics (e"g"' new products' new sales channels' added value' etc")" Other !ro*p Membership -n addition to cultural influences' consumers belong to many other groups with which they share certain characteristics and which may influence purchase decisions" 5ften these groups contain opinion leaders or others who have major influence on what the customer purchases" 4ome of the basic groups we may belong to include. P 4ocial Class K represents the social standing one has within a society based on such factors as income level' education' occupation P :amily K oneLs family situation can have a strong effect on how purchase decisions are made P 1eference groups K most consumers simultaneously belong to many other groups with which they associate or' in some cases' feel the need to disassociate"

Mar eting-mplications.
41

-dentifying and understanding the groups consumers belong to is a ey strategy for mar eters" &oing so helps identify target mar ets' develop new products' and create appealing mar eting promotions to which consumers can relate" -n particular' mar eters see to locate group leaders and others to whom members of the group loo for advice or direction" )hese opinion leaders' if well respected by the group' can be used to gain insight into group behavior and if these opinion leaders accept promotional opportunities could act as effective spo espeople for the mar eterLs products" Sit*ation A purchase decision can be strongly affected by the situation in which people find themselves" Cot all situations are controllable' in which case a consumer may not follow their normal process for ma ing a purchase decision" :or instance' if a person needs a product 6uic ly and a store does not carry the brand they normally purchase' the customer may choose a competitorLs product" Mar eting -mplications. Mar eters can ta e advantage of decisions made in uncontrollable situations in at least two ways" :irst' the mar eters can use promotional methods to reinforce a specific selection of products when the consumer is confronted with a particular situation" :or e,ample' automotive services can be I

42

purchased that promise to service vehicles if the user runs into problems anywhere and at anytime" 4econd' mar eters can use mar eting methods that attempt to convince consumers that a situation is less li ely to occur if the mar eterLs product is used" )his can also be seen with auto products' where mar eters e,plain that using their product will prevent une,pected damage to their vehicles" Ho8 %ons*mers ,*y 4o now that we have discussed the factors influencing a consumerLs decision to purchase' letLs e,amine the process itself" )his process is presented in a se6uence of B steps as shown below" 0owever' whether a consumer will actually carryout each step depends on the type of purchase decision that is faced" :or instance' for minor re%purchases the consumer may be 6uite loyal to the same brand' thus the decision is a routine one (i"e"' buy the same product) and little effort is involved in ma ing a purchase decision" -n cases of routine' brand loyal purchases consumers may s ip several steps in the purchasing process since they now e,actly what they want allowing the consumer to move 6uic ly through the steps" But for more comple, decisions' such as Major Cew ?urchases' the purchasing process can e,tend for days' wee s' months or longer" 4o in presenting these steps mar eters should reali*e that' depending on the circumstances surrounding the purchase' the importance of each step may vary" 9. 3eed?<ant? esire is Recogni@ed
43

-n the first step the consumer has determined that for some reason he2she is not satisfied (i"e"' consumerLs perceived actual condition) and wants to improve his2her situation (i"e"' consumerLs perceived desired condition)" :or instance' internal triggers' such as hunger or thirst' may tell the consumer that food or drin is needed" 3,ternal factors can also trigger consumerLs needs" Mar eters are particularly good at this through advertising' in%store displays and even the intentional use of scent (e"g"' perfume counters)" At this stage the decision%ma ing process may stall if the consumer is not motivated to continue (see Motivation above)" 0owever' if the consumer does have the internal drive to satisfy the need they will continue to the ne,t step" 4. Search for +nformation Assuming consumers are motivated to satisfy his or her need' they will ne,t underta e a search for information on possible solutions" )he sources used to ac6uire this information may be as simple as remembering information from past e,perience (i"e"' memory) or the consumer may e,pend considerable effort to locate information from outside sources (e"g"' -nternet search' tal with others' etc")" 0ow much effort the consumer directs toward searching depends on such factors as. the importance of satisfying the need' familiarity with available solutions' and the amount of time available to search" )o appeal to consumers who are at the search stage' mar eters should ma e efforts to ensure consumers can locate information related to their product" :or e,ample' for mar eters whose customers rely on the -nternet for information gathering' attaining high ran ings in search engines has become a critical mar eting objective"
44

A. Eval*ate Options ConsumersL search efforts may result in a set of options from which a choice can be made" -t should be noted that there may be two levels to this stage" At level one the consumer may create a set of possible solutions to their needs (i"e"' product types) while at level two the consumer may be evaluating particular products (i"e"' brands) within each solution" :or e,ample' a consumer who 9

45

needs to replace a television has multiple solutions to choose from such as plasma' $C& and C1) televisions" /ithin each solution type will be multiple brands from which to choose" Mar eters need to understand how consumers evaluate product options and why some products are included while others are not" Most importantly' mar eters must determine which criteria consumers are using in their selection of possible options and how each criterion is evaluated" 1eturning to the television e,ample' mar eting tactics will be most effective when the mar eter can tailor their efforts by nowing what benefits are most important to consumers when selecting options (e"g"' picture 6uality' brand name' screen si*e' etc") and then determine the order of importance of each benefit" B. P*rchase -n many cases the solution chosen by the consumer is the same as the product whose evaluation is the highest" 0owever' this may change when it is actually time to ma e the purchase" )he intended! purchase may be altered at the time of purchase for many reasons such as. the product is out%of%stoc ' a competitor offers an incentive at the point% of%purchase (e"g"' store salesperson mentions a competitorLs offer)' the customer lac s the necessary funds (e"g"' credit card not wor ing)' or members of the consumerLs reference group ta e a negative view of the purchase (e"g"' friend is critical of purchase)" Mar eters whose product is most desirable to the consumer must ma e sure that the transaction goes smoothly" :or e,ample' -nternet retailers have wor ed hard to prevent consumers from abandoning online purchase (i"e"' online shopping carts) by streamlining
46

the chec out process" :or mar eters whose product is not the consumerLs selected product' last chance mar eting efforts may be worth e,ploring' such as offering incentives to store personnel to tal up! their product at the chec out line" C. $fter)P*rchase Eval*ation 5nce the consumer has made the purchase they are faced with an evaluation of the decision" -f the product performs below the consumerLs e,pectation then he2she will re% evaluate satisfaction with the decision' which at its e,treme may result in the consumer returning the product while in less e,treme situations the consumer will retain the purchased item but may ta e a negative view of the product" 4uch evaluations are more li ely to occur in cases of e,pensive or highly important purchases" )o help ease the concerns consumers have with their purchase evaluation' mar eters need to be receptive and even encourage consumer contact" Customer service centers and follow%up mar et research are useful tools in helping to address purchasersL concerns" As weLve seen' consumer purchasing is 6uite comple,"
8

$T$ $3L"S+S O2 %O3S1MER S1R'E"

47

Q1. Have you already used any product of Godrej ?

#ustomer are already usin" product of Godrej

Yes 58%

No 42%

As per our mar et survey most of the B7Jcustomer said that they already used electronics product of Godrej"

Q2. Which brand you like most? Videocon G !amsun" !ony Goderj

48

#ustomer preference brand

Videocon 1$%

G &'%

!amsun" 22%

Godrej 2(%

:rom the above diagram'$G is most preferable brand among all the brands and being a mar et leader with @BJ"after that godrej followed the leader with +9J"

Q&. Which factors influence you to purchase a product? )rice* !ervice* +rand ima"e* ,eatures* -nfluence by other*
49

.eason for purchasin" a product

)rice 2/

!ervice 1/

+rand ima"e 22

,eatures -nfluence by others 20 12

:rom the above diagram' /e come across that the ?rice is the main factor which influence the consumer buying process" After that it is followed by Brand image'features'service of the company"At last purchase decision of consumer get more influence by the others"
Q1. 2o you have any Godrej home appliances? .efri"erator 3# Washin" 4achine purifier 2V2 player 4icro5ave 5ater

50

Godrej home appliance.

Water .efri"erator purifier

3#

Washin" 4achine

2V2 player

4icro 5ave

2%

10%

1&%

22%

1&%

10%

-t is to be found that most of the people having Godrej 1efrigerator' after that Godrej /ashing machine' then they use Ac'and most of the people are not aware of Godrej Microwave and water purifier")hats why it have very low percentage"

;5. Do *o6 a7a'e a)o6. God'e: Home a&&<,an9e-=

51

Re/',ge' a.o' 9 >a-5,ng Ma95,ne >a.e' P6',/,e' M,9'o >o(en D2D P<a*e'

96? 50? @0? 5? A5? 85?

52

:rom the above table shows that 8IJ of people aware about Godrej 1efrigerator"9=J of people nowing about the washing machine'I=J microwave'+BJ AC'+=J &>& ?layer and BJ of people aware on /ater purifier"

2+3 +3!
53

After completing the survey and analy*ing the responses of the persons ' we came across the following facts. %

A large number of consumer are using Godrej e6uipment li e ACLs' 1efrigerator and are 6uite satisfied with the performance of the appliances" Majority of the respondents in the survey were found reluctant about giving details to us" 3,isting customers of Godrej are satisfied with after sales services' with few e,ceptions" Customer thin that brand name of the company can influence their purchase decision"

RE%OMME3 $T+O3S Based on our descriptive research on retailers and institution in the Bhubaneswar mar et we have some recommendations for Company" Also through whole project duration we did some observational study and literature
54

review and we found that there are some factors which can help the company to build a brand in national mar et" 4ome of the recommendations are as follows.% () Company should organi*e free chec up camp for big institution li e educational institution' hotels and hospitals' so that it will increase the loyalty of the institution" +) Company should give Duotation for different slabs of different 6uantity at the best possible price for consolidated 6uantity" @) Competitors are giving the appliance in credit' which is one of the main factors which determine the purchase" Companies ta e post dated che6ue from the institution" G5&13H should also follow the same tactics" <) Most of the institutions get the post sales service 6uic ly" 4o it is better to increase the number of voluntary service for differentiation" 5) 3,clusive stores should be opened for G5&13H appliance similar to G5&13H -C)31-5" 6) ?alm plate should be distributed with business newspaper and other popular newspaper" 9) )he company should position itself as a life style Brand through advertisement in leading newspaper" 7) Company gives more emphasis on heavy advertising"

D*estions for the s*rvey

55

INSTITUTI"N N ME4 3"! TI"N4

&ear 4ir2madam' - am a MBA student from Ciis -nstitute 5f Business Administration(C--4")' Bhubaneswar and doing a project on Consumer Buying Behaviour of Godrej Appliances" Eour response is highly valuable" - would be grateful if you could help me by filling it up honestly and legitimately" - assure that any information provided will be solely used for academic purpose and will be ept confidential" Co answers are right or wrongQ give the answers which you feel are the best" !on-6me' )6*,ng )e5a(,o' B need ana<*-,- on a&&<,an9e>e 7o6<d )e .5anC/6< ,/ *o6 -5a'e -ome o/ *o6' (a<6a)<e o&,n,on 'ega'd,ng .5e /o<<o7,ng D6e-.,onna,'e. N ME4 GE4 "!!UP TI"N4 8. #am,<* -,Ee 3e-- .5an 4 mem)e'- $ % Mo'e .5an 6 mem)e'- $ % A. >5,95 &'od69. o/ *o6 5a(e &6'95a-ed and 75en= Re/',ge'a.o' $ %GGGGGGG m,9'o7a(e $ %GGGGGGGGGG $ %GGGGGGGGGG 4F6 mem)e'- $ % !"NT !T N"4 DDRESS4

>a-5,ng ma95,ne $ %GGGGGG D.2.D &<a*e' None o/ a)o(e $ %GGGGGG

7a.e' &6',/,e' $ %GGGGGGGGGG

3. Do *o6 Cno7 a)o6. God'e: &'od69.-= Re/',ge'a.o' $ % m,9'o7a(e $ %

>a-5,ng ma95,ne $ % None o/ a)o(e $ %

D.2.D &<a*e' $ % 7a.e' &6',/,e' $ %

4. #'om 75e'e 7o6<d *o6 <,Ce .o )6* &'od69.-= M6<., )'and o6.<e. $ % $ % D,'e9. ma'Ce.,ng $ % Re.a,< -.o'e

5. >5,95 /a9.o' ,n/<6en9e- *o6 .o &6'95a-e &'od69.-= !om&an* )'and name $ % P'od69. /ea.6'e Se'(,9e $ % $ % &'omo.,ona< a9.,(,.,e- $ % &',9e ,n/<6en9e )* o.5e' $ % $ %

6. >5en *o6 &'e/e' .o )6* a &'od69.= EH95ange o//e' Sa<e- o//e' $ % $ % d,-9o6n. o//e' $ % o.5e' $ %

@. Ha(e *o6 e(e' 6-e God'e: a&&<,an9e-=

56

"n9e $ %

a<7a*- $ %

ne(e' $ %

8. Sa.,-/a9.,on <e(e< 7,.5 *o6' &'od69.-= EH.'eme<* 6n-a.,-/,ed $ % Sa.,-/,ed EH.'eme<* -a.,-/,ed 9. >5,95 )'and *o6 <,Ce mo-.= 3G $ % S MSUNG "THER $ % $ % G"DRE0 $ % -ome5o7 6n-a.,-/,ed $ % $ % -ome5o7 -a.,-/,ed $ % $ %

2IDE"!"N $ %

80. 2,e7 a)o6. God'e: and ,.- &'od69.-= GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG GGGGGG

&'('&'NC'!
1. Kotler, Philip and Keller, K. . (2007), IMa'Ce.,ng managemen. 2.9lectronic :eference; !""i#ial $e%&ite o" '!(R)* $$$.godre+.#o, $$$.godre+applian#e&.#o, $$$.godre+dire#t.#o, <. 9lectronic :eference; http;==.wikipe ia.org=wiki=Bhubaneswar >. 9lectronic :eference; http:--$$$.google.#o,
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