Analysis of Consumer Behaviour & measuring customer satisfaction

SUBMITTED BY: !"A#ES$ %U"BA&I

IICS,PUNE

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

Analysis of Consumer Behaviour & measuring customer satisfaction

ACKNOWLEDGEMENT

I have had a golden opportunity of being a part of Eure+a (or,es -t. /towards fulfilling the requirement of summer training. The helping hand co-operative and easy by which I was accepted to this family was by itself hearing experience. I am greatly obliged to Ms.Sama kulkarni Director, II C , !une for providing me the right "ind of opportunity and facilities to complete this venture. #y heartfelt than"s to my respected $aculty %uide namely Prof. Vijay Rao without his continuous help the pro&ect would not have been materiali'ed in the present form. (is valuable suggestions helped me at every step. I ta"e this opportunity to express our graduate towards the () division as whole. I am extremely than"ful to Mr. Shrijith )egional (ead of *ure"a $orbes +td. for this "ind permission to carry out the study for the organi'ation.

, mere than" would be an inadequate world to express my true gratitude towards Mr. Ashish Tondon & Ms. Betsy Varghese . ()D officer- he has been guiding force behind the fulfillment of pro&ect. I would be failing in our duty if I don.t than" all staff member of / + +td. for sharing their precious time and "nowledge with me.

(Pravesh)

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

Analysis of Consumer Behaviour & measuring customer satisfaction

||****************** CONTENTS ******************||

Sr/ &o/ */ 0/ 4/ 6/ 9/ 1/ ;/ 2/ 3/ *:/ **/ T'!IC Intro.uction of Consumer Dura,le in.ustry $istory of Eure+a (or,es -t./ 'vervie5 of Eure+a (or,es -t./ Eure+a (or,es -t./ 7artnershi7s 8com7any8 Bran. Intro.uction of Eure+a (or,es -t./ Current scenario S<'T analysis ',=ective) (in.ings -imitation 'f Stu.y "ecommen.ations !age &o/ 12 3 *4 *6 *1 00 02 03 46 49 6: 6* 60 92 10 14 16 19 1; ;: ;*

Bi,liogra7hy

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

Analysis of Consumer Behaviour & measuring customer satisfaction

Introduction Of Consumer Durable Industry

Before the li,erali>ation of the In.ian economy) only a fe5 com7anies li+e ?elvinator) %o.re=) All5yn) an. #oltas 5ere the ma=or 7layers in the consumer .ura,les mar+et) accounting for no less than 3:@ of the mar+et/ Then) after the li,erali>ation) foreign 7layers li+e -%) Sony) Samsung) <hirl7ool) Dae5oo) Ai5a came into the 7icture/ To.ay) these 7layers control the ma=or share of the consumer .ura,les mar+et/ Consumer .ura,les mar+et is eA7ecte. to gro5 at *: *9@ in 0::; 0::2/ It is gro5ing very fast ,ecause of rise in living stan.ar.s) easy access to consumer finance) an. 5i.e range of choice) as many foreign 7layers are entering in the mar+et/ 'n the fli7 si.e) the 7resence of a large num,er of 7layers in the consumer .ura,les mar+et sometimes results in eAcess su77ly/
The top 10 players in consumer durables sector are:

&o+ia In.ia -% Electronics In.ia -t./ !hili7s In.ia Titan In.ustries Samsung In.ia Electronics <hirl7ool A77liances Siemens Sony In.ia #i.eocon In.ustries Blue star

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

Analysis of Consumer Behaviour & measuring customer satisfaction

History Of Eure a !orbes

Eureka Forbes) 7art of the Shapoorji Pallonji Group's Forbes Gokak ,ase. in Mum,ai is an In.ian consumer a77liances com7any/ Eure+a (or,es 5as the first to intro.uce .omestic 5ater 7urifiers the A"ua#uard - mo.el as 5ell as vacuum cleaners to In.ia in the *32:s The com7any o7erates in over 30 cities in In.ia an. em7loys over 1)::: in.ivi.uals/

To intro.uce 7reviously un+no5n 7ro.ucts to a society in 5hich nation5i.e commercial cam7aigns 5ere im7ossi,le) the com7any 7ioneere. .irect selling/ The cor7s of suit cla. Eure+a (or,es salesmen 5ere a tremen.ous success/ They are no5 AsiaBs largest .irect selling organisation 5ith a 9)::: strong .irect sales force touching */09 million In.ian homes an. a..ing *)9:: customers .aily/Such 5as the success of Eure+a (or,es that Aquaguard has ,ecome a synonym for 5ater 7urifier in In.ia/

*320 Eureka Forbes) starte. in 1982) 5hich .e7en.e. on technology 7rovi.e. ,y S5e.en for ma+ing vacuum cleaners an. air 7urifiers) has gro5n into a "s/2:: crore com7any em7loying nearly 2::: 7eo7le) they 7ointe. out/ The com7any is the largest .irect selling organisation an. has ,een consi.ere. as one among the most a.mire. consumer .ura,le com7anies in the country/ The com7any has also .ra5n u7 7lans for .iversification to manufacture 7ro.ucts aime. at Bsmart homes 8safe homes/

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

Analysis of Consumer Behaviour & measuring customer satisfaction

O$er$ie% Of Eure a !orbes

COM&AN' O(E)(IEW Eure+a (or,es) -t./ offers 5ater 7urification systems) vacuum cleaners) an. air 7urifiers/ The com7any also offers security solutions) inclu.ing home security systems) intrusion alarm systems) access control systems) fire alarm systems) an. surveillance systems/ In a..ition) it offers in.ustrial solutions) such as in.ustrial 5ater 7urifiers) commercial an. in.ustrial vacuum cleaners) har. floor cleaning an. maintenance machines) high 7ressure cleaners) an. cleaning an. hygiene 7ro.ucts/ Eure+a (or,es offers its 7ro.ucts through .ealers an. institutional sales net5or+/ The com7any 5as incor7orate. in *34* an. is ,ase. in Mum,ai) In.ia/ Eure+a (or,es) -t./ o7erates as a su,si.iary of (or,es & Com7any -t./

Eure a !orbes
I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E 1

Analysis of Consumer Behaviour & measuring customer satisfaction

&artners*i+s ,rand
Eureka Forbes Partnerships International Partnership Allian e -uA an. its 7artner com7anies Eure+a (or,es In.ia) AMC Classic South Africa) Aerus ElectroluA US) an. the (or,es -uA %rou7 S5it>erlan. to.ay em7loy over *1B::: 7eo7le in sales) a.ministration) research an. .evelo7ment/ <ith a customer ,ase of over 0: Million -uA an. its alliance 7artners 7romote some of the 5orl.Bs lea.ing ,ran.s in .irect sales/ The -uA !artnershi7 Alliance 5ith its uniCue s7irit an. its focus on 7eo7le an. the .irect sales of innovative 7ro.ucts to.ay runs sales o7erations in many 7arts of the 5orl./

Eure+a (or,es

(or,es -uA

-uA International

AMC Coo+5are

Aerus

Asia !acific) Mi..le East

Eastern Euro7e) Africa) Asia

<estern an. Eastern Euro7e) Africa) South America

South Africa) Mauritius

&orth America

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

Analysis of Consumer Behaviour & measuring customer satisfaction

&roducts

!! A"ua#uar$ Total Ato%

!! A"ua#uar$ Total SENSA

!! A"ua#uar$ Classi

!! A"ua#uar$ Inte#ra &i-'i(e

!! A"ua#uar$ Co%pa t

!! A"ua#uar$ Total )e*i*a

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

Analysis of Consumer Behaviour & measuring customer satisfaction

!! A"ua#uar$ +ooster

!! A"ua#uar$ Total INFINITI

!! A"ua#uar$ &i-Flo

!! A"ua#uar$ Total )O P)OTEC,

Introduction Of Eure a !orbes LtdI&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E 3

Analysis of Consumer Behaviour & measuring customer satisfaction

Eureka Forbes - Startin# Fro% The S rat h Eure+a (or,es follo5e. the glo,ally Btrie. an. teste.B .irect selling route for mar+eting its 7ro.ucts in In.ia) thus ,ecoming one of the first .irect selling com7anies in In.ia/ #acuum cleaners an. 5ater 7urifiers 5ere rather ne5 conce7ts for In.ian consumers) 5ho ha. till then follo5e. only the tra.itional metho.s of cleaning an. filtering/ Therefore) Eure+a (or,es ha. to first esta,lish the conce7t of vacuum cleaners an. 5ater 7urifiers in In.ia ,efore it coul. sell BEure+aB as a ,ran./ The com7any ,elieve. that its core strength 5as its 7eo7le/ It em7loye. .ynamic) highly motivate. in.ivi.uals) calle. BEurocham7s)B 5ho 7ro=ecte. the image of BThe frien.ly man from Eure+a (or,es/B Thus) for the average In.ian consumer) Eure+a (or,es ,ecame synonymous 5ith the smartly .resse. salesman 5ho came to their houses an. cleane. u7 things in a =iffy or sho5e. ho5 air85ater 7urifiers 5ere in.is7ensa,le/ Eurocham7s initially targete. the metros ,ut soon ,egan visiting smaller cities an. to5ns also/ C-))ENT SCENA)IO The consumer .ura,les mar+et in In.ia is value. at US D 6/9 ,illions currently/ In 0::1) micro5ave ovens an. air con.itioners registere. a gro5th of a,out 09@/ (rost free refrigerators have registere. significant gro5th as many ur,an families are re7lacing their ol. refrigerators/ "efrigerator sales amounte. to 6/0 millions in 0::1) 5hereas the 7ro.uction of the refrigerators 5ent u7 ,y *;@ as com7are. to the 7rece.ing year/ <ashing machines) 5hich have al5ays seen 7oor gro5th) have seen reasona,le gro5th in 0::1/ More an. more In.ians are no5 ,uying electrical a77liances .ue to change in electricity scenario/ The 7enetration level of color televisions ECT#sF is eA7ecte. to increase 4 times ,y 0::;/

S5ot Analysis

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

*:

Analysis of Consumer Behaviour & measuring customer satisfaction

O,.ECTI(E
I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E **

Analysis of Consumer Behaviour & measuring customer satisfaction 0b&ective

CONSUMER BEHAVIOR:
T$E !SYC$'-'%Y '( MA"?ETI&% The o,=ectives of this 7ro=ect re7ort are: The stu.y of consumers hel7s firms an. organi>ations im7rove their mar+eting strategies ,y un.erstan.ing issues such as ho5

The 7sychology of ho5 consumers thin+) feel) reason) an. select ,et5een .ifferent alternatives Ee/g/) ,ran.s) 7ro.uctsFG The 7sychology of ho5 the consumer is influence. ,y his or her environment Ee/g/) culture) family) signs) me.iaFG The ,ehavior of consumers 5hile sho77ing or ma+ing other mar+eting .ecisionsG -imitations in consumer +no5le.ge or information 7rocessing a,ilities influence .ecisions an. mar+eting outcomeG $o5 consumer motivation an. .ecision strategies .iffer ,et5een 7ro.ucts that .iffer in their level of im7ortance or interest that they entail for the consumerG an. $o5 mar+eters can a.a7t an. im7rove their mar+eting cam7aigns an. mar+eting strategies to more effectively reach the consumer/

There are four main a77lications of consumer ,ehavior:

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

*0

Analysis of Consumer Behaviour & measuring customer satisfaction

The most o,vious is for marketing strategy Hi/e/) for ma+ing ,etter mar+eting cam7aigns/ (or eAam7le) ,y un.erstan.ing that consumers are more rece7tive to foo. a.vertising 5hen they are hungry) 5e learn to sche.ule snac+ a.vertisements late in the afternoon/ By un.erstan.ing that ne5 7ro.ucts are usually initially a.o7te. ,y a fe5 consumers an. only s7rea. later) an. then only gra.ually) to the rest of the 7o7ulation) 5e learn that E*F com7anies that intro.uce ne5 7ro.ucts must ,e 5ell finance. so that they can stay afloat until their 7ro.ucts ,ecome a commercial success an. E0F it is im7ortant to 7lease initial customers) since they 5ill in turn influence many su,seCuent customersI ,ran. choices/ A secon. a77lication is publi poli y/ In the *32:s) Accutane) a near miracle cure for acne) 5as intro.uce./ Unfortunately) Accutane resulte. in severe ,irth .efects if ta+en ,y 7regnant 5omen/ Although 7hysicians 5ere instructe. to 5arn their female 7atients of this) a num,er still ,ecame 7regnant 5hile ta+ing the .rug/ To get consumersI attention) the (e.eral Drug A.ministration E(DAF too+ the ste7 of reCuiring that very gra7hic 7ictures of .eforme. ,a,ies ,e sho5n on the me.icine containers/ !o ial marketing involves getting i.eas across to consumers rather than selling something/ Marty (ish,ein) a mar+eting 7rofessor) 5ent on sa,,atical to 5or+ for the Centers for Disease Control trying to re.uce the inci.ence of transmission of .iseases through illegal .rug use/ The ,est solution) o,viously) 5oul. ,e if 5e coul. get illegal .rug users to sto7/ This) ho5ever) 5as .eeme. to ,e infeasi,le/ It 5as also .etermine. that the 7ractice of sharing nee.les 5as too ingraine. in the .rug culture to ,e sto77e./ As a result) using +no5le.ge
*4

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

Analysis of Consumer Behaviour & measuring customer satisfaction of consumer attitu.es) Dr/ (ish,ein create. a cam7aign that encourage. the cleaning of nee.les in ,leach ,efore sharing them) a goal that 5as ,elieve. to ,e more realistic/ As a final ,enefit) stu.ying consumer ,ehavior shoul. ma+e us ,etter consumers/ Common sense suggests) for eAam7le) that if you ,uy a 16 liCui. ounce ,ottle of laun.ry .etergent) you shoul. 7ay less 7er ounce than if you ,ought t5o 40 ounce ,ottles/ In 7ractice) ho5ever) you often 7ay a si>e premium ,y ,uying the larger Cuantity/ In other 5or.s) in this case) +no5ing this fact 5ill sensiti>e you to the nee. to chec+ the unit cost la,els to .etermine if you are really getting a ,argain/

There are several units in the mar+et that can ,e analy>e./ 'ur main thrust in this course is the onsumer/ $o5ever) 5e 5ill also nee. to analy>e our o5n firmIs strengths an. 5ea+nesses an. those of ompeting "irms/ Su77ose) for eAam7le) that 5e ma+e a 7ro.uct aime. at ol.er consumers) a gro5ing segment/ A com7eting firm that targets ,a,ies) a shrin+ing mar+et) is li+ely to consi.er re7ositioning to5ar. our mar+et/ To assess a com7eting firmIs 7otential threat) 5e nee. to eAamine its assets Ee/g/) technology) 7atents) mar+et +no5le.ge) a5areness of its ,ran.sF against 7ressures it faces from the mar+et/ (inally) 5e nee. to assess con.itions Ethe mar+eting environmentF/ (or eAam7le) although 5e may have .evelo7e. a 7ro.uct that offers great a77eal for consumers) a recession may cut .eman. .ramatically/

Information Search an. Decision Ma+ing Proble% )e o#nition.J 'ne mo.el of consumer .ecision ma+ing involves several ste7s/ The first one is problem re ognitionJJou reali>e that something is not as it shoul. ,e/J !erha7s) for eAam7le) your car is getting more .ifficult to start an. is not accelerating 5ell/JJJ The secon. ste7 is in"ormation sear hJJhat are some alternative 5ays of solving the 7ro,lemJJ You might ,uy a ne5 car) ,uy a use. car) ta+e your car in for re7air) ri.e the ,us) ri.e a taAi) or ri.e a s+ate,oar. to 5or+/J The thir. ste7 involves evaluation o" alternatives#$ A s+ate,oar. is ineA7ensive) ,ut may ,e ill suite. for long .istances an. for rainy .ays/JJ (inally) 5e have the pur hase stage) an. sometimes a 7ost 7urchase stage Ee/g/) you return a 7ro.uct to the store ,ecause you .i. not fin. it satisfactoryF/J In reality) 7eo7le may go ,ac+ an. forth ,et5een the stages/J (or eAam7le) a 7erson may resume alternative i.entification .uring 5hile evaluating alrea.y +no5n alternatives/
I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E *6

Analysis of Consumer Behaviour & measuring customer satisfaction

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

*9

Analysis of Consumer Behaviour & measuring customer satisfaction

!INDING/ A,O0T Eure a !orbes LtdQuestionarre:

Name: Address: Type of house: Flat / Bunglow

1. What is your source of drin ing water ! a" Borewell #" $orporation Water c" $an Water

%. Are you satisfied with the water which you drin daily ! a" &es #" no

'. What are the precautions do you ta e to purify the water ! a" Boiling #" (urifier c" No method

). *a+e your any family mem#er #een suffering / suffered from any disease! a" &es #" no

,. -o you now that unpurified water causes ./0 diseases! I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E *1

Analysis of Consumer Behaviour & measuring customer satisfaction

a" &es #" no

1. What is your monthly medical e2penses 3in 4s.5 ! a" %,/ to ,// #" ,// to 6,/ c" 6,/ to 1/// d" 71///

6. -o you ha+e a water purifier ! a" &es #" no

.. 8f no 9 what are the reasons of not ha+ing water purifier !

:. What are the criteria you will loo for while #uying a water purifier! a" Features #" (rice c" Benefits d" Brand

1/.What are the different #rands of Water (urifier you are aware of ! a" (ure it #" A;uaguard c" <ero / B d" =ent

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

*;

Analysis of Consumer Behaviour & measuring customer satisfaction

%. Are you satisfied with the water which you drin daily ! a" &es #" no

!indin#1 &eo+le don2t understand t*e le$el of satisfaction3 t*at2s %*y t*ey re+lied as suc* a+art from t*is /atellite is t*e most educated area so *ere I found most satisfaction-

'. What are the precautions do you ta e to purify the water ! a" Boiling #" (urifier c" No method

!indin#1 Most of t*e +eo+le of Naroda area don2t use +urifiers as lac of no%led#e of %ater related +roblems as %e can see t*e +eo+le of satellite *a$e t*is no%led#eI&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E *2

Analysis of Consumer Behaviour & measuring customer satisfaction

). *a+e your any family mem#er #een suffering / suffered from any disease! a" &es #" no

!indin#1 T*at is t*e reason %*y %e found ma4imum +eo+le sufferin# in Naroda

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

*3

Analysis of Consumer Behaviour & measuring customer satisfaction

,. -o you now that unpurified water causes ./0 diseases! a" &es #" no

!indin#1 T*is is t*e most interestin# "uestion %*ere %e sa% +eo+le do not no% t*at 567 diseases are caused by un+urified %ater-

1. What is your monthly medical e2penses 3in 4s.5 ! a" %,/ to ,// #" ,// to 6,/ c" 6,/ to 1/// d" 71///

!indin#1 We can tell +eo+le t*at you can sa$e your #eneral medical e4+enses by usin# %ater +urifier 8Creatin# need9

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

0:

Analysis of Consumer Behaviour & measuring customer satisfaction

8. If no , what are the reasons of not having water purifier ? Reasons like

No need No requirement Cant Afford Havent thought Havent reali ed

!indin#1 &eo+le %*o no% about t*e %ater related +roblems t*ey usin# %ater +urifier certainly- Ot*ers are #i$in# t*eir o%n dramatic ans%er

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

0*

Analysis of Consumer Behaviour & measuring customer satisfaction

:. What are the criteria you will loo for while #uying a water purifier! a" Features #" (rice c" Benefits d" Brand

!enefits "ri#e !enefits !enefits '

"ri#e !enefits "ri#e

$ %aninagar & $ Naroda & $ (a)armati &

!rand ' *eatures$(atellite&

!indin# 1 No matter be it any area3 all ot*er criteria are follo%in# benefits- In ad$anced area I sa% +eo+le are o+tin# for ,rand as %ell-

1/.What are the different #rands of Water (urifier you are aware of ! a" (ure it #" A;uaguard c" <ero / B d" =ent

!indin# 1 A"ua#uard is nearly *a$e become synonyms for %ater +urifier but in ad$ertisin#38Tele$ision Commercials9+eo+le )e also obser$in# brands li e KENT3 WHI)L&OOL3&0)E IT etc--

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

00

Analysis of Consumer Behaviour & measuring customer satisfaction

LIMITATION O! /T0D'

-IMITATI'&S
The present study is sub&ected to following +I#IT,TI01 .

2. #ethod of data collection was through personal interview and therefore

bias becomes a ma&or limitation.

3. Due to the time constraints all the customers were not covered. 4. The sample was restricted to 56 customers, which may restrict the scope
and completion of study.

7. 0wing to their pre occupation some customers were unable to answer the
complete questionnaire.

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

04

Analysis of Consumer Behaviour & measuring customer satisfaction

)ECOMMENDATION
Recommendations:
In this section I would be giving some recommendations on the basis of the survey wor" and it8s findings plus on the basis of some general "nowledge about the area where the survey wor" was done9 0verall *ure"a $orbes as a brand is tremendous and the customer are satisfied by the quality, style, design, color and all other features provided by *ure"a $orbes. /ut still there are minor areas where *ure"a $orbes is still lac"ing: )ecommendations are9

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

06

Analysis of Consumer Behaviour & measuring customer satisfaction

,I,LIOG)A&H'
/ibliography
This section throws light upon those internet sites and boo"s from where help has been ta"en from to ma"e this pro&ect report <not in entirely=. These have been listed below9 Internet sites9

555/eure+afor,es/co/in
I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E 09

Analysis of Consumer Behaviour & measuring customer satisfaction 555/google/co/in 555/5i+i7e.ia/com

I&DI"A I&STITUTE '( CA"EE" STUDIES ) !U&E

01