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“Analysis of Consumer Behavior While Purchasing Consumer Durable”

“Analysis of Consumer Behavior While Purchasing Consumer Durable”

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Published by: shawinder_saini on Dec 24, 2009
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“Analysis of Consumer Behavior while purchasing Consumer Durable”

Presented by: Shawinder Pal Singh “A”-51 Padalia Nandan “B”-34

 To

study the Indian Consumer Durable industry.  To study the role of consumer while buying of durables.  To study the various stages of “Consumer Decision Making Process”.  To study how consumer behaves in different situations before purchasing any durable product.  To find the effectiveness of various sales promotion activities.

Sources of data collection
Primary sources  Questionnaire Secondary sources  Internet  News papers & magazines  Reference books

Research design
Sample area  Ahmedabad and Gandhinagar Target sample  consumers of Ahmedabad and Gandhinagar Sample size  200 respondents (consumers) Methods used  Convenience Sampling which is a technique of Non Probability Sampling.

 Reluctance

on the part of the respondents to provide exact details.  Lack of sufficient funds to cover the whole universe as a sample.  Limited Coverage area for survey, it was restricted to Ahmedabad and Gandhinagar City only.  There were only five major durables considered in this project

Industry Profile
Products  Television  Refrigerator  Washing machine  Air conditioner  Music system

Industry Profile (cont….)
Product wise Earning  Television:colour-Rs.91bn&B&WRs.5bn  Refrigerator:Rs.39bn  Air conditioner:Rs.24bn  Washing machine:Rs.11bn

Industry Driving factors
 Low

price to push volume  Increasing number of replacement buyers  aggressive advertising with innovative marketing schemes  Easy availability of finance (installment)  future market growth is likely to come from small towns and SEC (Social Economic Class)

 High

competition led to price erosion over the past  Increased consumer choice has reduced brand loyalty  performance of players in the industry has been characterized by declining price realizations and shrinking operating & net margins  The demand is both seasonal and cyclical

Major players
LG  Samsung  BPL  Whirlpool  Sony  National Panasonic  Godrej  Videocon  Onida  Philips

Consumer Behavior
“Consumer Behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs”  Consumer behavior focuses on how individuals makes decisions to spend their available resources like time, money and effort on consumption related items.  That includes what, why, when, where and how often they buy it, how they evaluate it after the purchase and the impact of such evaluations on future purchase and how they dispose of it.

In which way would you like to pay?
by cas h in ins tallm e nts


Which mode of payment do you prefer?

19 79 73 29

C a sh Cheque C re d it C a rd D e b it C a rd

You shop for electronics items mostly during….

13 42 8

Fe stiva ls Occa sions S e a sona l


Any Tim e

which factors do you consider while purchasing electronics items?
10 Bra nd Na m e 39 Qua lity P rice 33 47 43 S che m e s Fe a ture s Afte r sa le s S e rvice s


Does your buying decision depend on Schemes?

97 103

Ye s No

If “yes” in above question then which type of schemes
P ric e D isc o u n t 10 7 2 6 3 5 G i fts L u c k y D ra w B u n d l i n g O ffe r S c r a tc h C a r d E x c h a n g e O ffe r

From where do you gather the information?
T e l e v i si o n 37 12 5 49 41 56 R a d io N e w sp a p e r R e ta i l e r POP F rie n d s & P e e rs

How many visits of showroom do you make before buying?

14 8


1 2 3


M o r e th a n 3

How much time do you take before making a decision to purchase?
26 7 54 L e ss th a n w e e k W e e k -F o r tn i g h t F o r tn i g h t-M o n th 112 M o r e th a n M o n th

 Stocks

are pilling up at retail outlets due to the probabilities of implementation of VAT.  The peak period of the year is third quarter(octdec) which contains many festivals like Diwali, Christmas etc.  In Consumer Durables there is a high level of association of feelings and high involvement during purchase  Price and Quality of the product are the main considering factors at the time of purchase

 Television

is the main source of getting information about a product.  Price discount and Exchange offers are the most popular sales promotion activities. There is an increasing number of replacement buyers.  People prefer to purchase through cash or credit cards.  Installments are also the popular way to achieve the sales volumes.  Most of the people visit the showroom thrice before any purchase and it takes a week to fortnight time for purchase.

Consumer follows a particular path for any purchase which is known as “Decision Making” process which is shown below:






 Price

and Quality are the main features of any product so companies should try to achieve economies of scale and learning curves with higher efficiency.  There are still some areas which are under developed on which companies should try to concentrate and develop some penetrating strategies.  Giving installments at lower or zero percent interest rate would help to increase sales volumes.

 Give

advertisements associating feelings with it to position the brand name.  Sales promotions affect the sales volume so giving effective sales promotions will lead to increase in sales volumes.  Price discount and exchange offers are the most effective schemes so companies should concentrate on it instead of other schemes which are less effective.

Thank You


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