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“Dissertation Report”
ON
CONSUMER PREFERENCE IN SELECTED BRANDS
(WHIRLPOOL, VIDEOCON, LG) OF 200 Lts REFRIGERATORS
ON THE BASIS OF PRICE, BRAND NAME, QUALITY & AFTER
SALES SERVICES IN THE REGION OF
YAMUNA NAGAR
Submitted to
Kurukshetra University,
Kurukshetra in partial fulfilment
for the degree of Master of
Business Administration (Session
2005-2007)
ACKNOWLEDGEMENT
(Diwas Menroy)
EXECUTIVE SUMMARY
In today scenario, every company wants to compete with others to
remain in the market. So it is very necessary for the company to know
what are the needs and wants of the customer, what is the preference
of customer. It is very important for a company to know which product
is preferred by the customer on which basis.
In the earlier part of the project I have discussed about the Consumer
& the preference of consumer. I have also discussed about the
introduction of the refrigerator.
This research is carried out using primary data. The method that i have
used is questionnaire technique to get the data from the customer.
The sample size is of hundred customer of Yamuna Nagar those are
using refrigerator.
From this study, I have found that LG was having major market share
in terms of Refrigerator as comparison to others. There were 46% of
the people those were having LG Refrigerators.
INDEX
1. Certificate
2. Acknowledgement
3. Executive Summary
4. Index
5. Introduction
6. Objective of the study
7. Literature Review
8. Research Methodology
a. Sampling & Sample Design
b. Analytical Tools
c. Data Collection
d. Hypothesis Testing
e. Limitations of the study
9. Result & Discussions/Findings
10. Recommendation
11. Bibliography
12. Annexure
INTRODUCTION
…
INTRODUCTION
The topic of research here is “Consumer preference in selected
brands (Whirlpool, Videocon, LG) of 200 lts Refrigerators on the
basis of Price, Brand name, Quality & After sales Services in the
region of Yamuna Nagar”.So the project is to study the Preference of
the consumers.
Here the term ‘consumer’ means the end user of the product who not
only consumes the product but also gives the feedback to the
company.
The traditional view point has been to define consumer strictly in terms
of economic goods and services. This position holds the consumers
are potential purchasers of product and services offered for sale
Consumer Behavior
It may be defined as” the decision process and the physical activities
individuals engage in when evaluating, acquiring, using or disposing of
goods and services.
The Consumer Behavior research goes far beyond the facts
of consumer preferences and encompasses all of the behaviors that
consumers display in searching for purchasing, using, evaluating and
disposing of products and services that they expect would satisfy their
need.
One "official" definition of consumer behaviour is "The study of
individuals, groups, or organizations and the processes they use to
select, secure, use, and dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that these processes have on
the consumer and society." Although it is not necessary to memorize
this definition, it brings up some useful points:
Consumer Preference
Introduction to Refrigerator
In the year ending in March '06, the annual turnover of the company for
its Indian enterprise was Rs.1,375 Crores. According to IMRB surveys
Whirlpool enjoys the status of the single largest refrigerator and
second largest washing machine brand in India.
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG
Electronics, South Korea was established in January, 1997 after
clearance from the Foreign Investment Promotion Board (FIPB).
The trend of beating industry norms started with the fastest ever-
nationwide launch by LG in a period of 4 and 1/2 months with the
commencement of operations in May 1997. LG set up a state-of-the art
manufacturing facility at Greater Noida, near Delhi, in 1998, with an
investment of Rs 500 Crores. This facility manufactured Colour
Televisions, Washing Machines, Air-Conditioners and Microwave
Ovens. During the year 2001, LG also commenced the home
production for its eco-friendly Refrigerators and established its
assembly line for its PC Monitors at its Greater Noida
manufacturing unit. The beginning of 2003 saw the roll out of the
first locally manufactured Direct Cool Refrigerator from the plant at
Greater noida.
The Greater Noida manufacturing unit line has been designed with the
latest technologies at par with international standards at Korea and is
one of the most Eco-friendly units amongst all LG manufacturing plants
in the world
MARKET SHARE
OBJECTIVE
OF THE
STUDY…
customers.
To examine Preference of consumer in Selected Brands
(Whirlpool, Videocon , LG ) of 200 Lts. Refrigerators on the
Basis of Price, Brand Name and Quality.
To find out the market share of these three brands in the market
To find the extent of brand loyalty that exists among Refrigerator
user.
To study the brand awareness of Refrigerator among the
Refrigerators-
Price.
Quality.
Brand Awareness
To study the affect of after sales services on
purchasing of refrigerators
LITERATURE
REVIEW…
LITERATURE REVIEW
Research:
Research methodology:
Data collection includes the type of data & the source of data that we
used while doing a project.
The data is collected from both primary and secondary sources.
PRIMARY DATA
Primary data is the data which is new .we use the primary source to
collect the primary data. Primary source include personal meeting/
interviewing method . As a primary Source of data I have filled the
questionnaires from different customer who were using different
brands of refrigerators of 200 lts ( Whirlpool, Videocon , LG ).
QUESTIONNAIRE
SECONDARY DATA
The data which is already in existence is known as secondary data.
Secondary sources include websites, brochures of the respective
companies, various papers, and magazines published from time to
time. Historical documents and other sources of published information.
SAMPLING DESIGN
It includes size of sample & the technique that we used for selecting
the different items from the sample. A sampling design is a definite
plan for obtaining a sample from a given population. It refers to the
technique that the researcher adopts in selecting items for the sample.
Sample size
By sample size we mean that the number of people to be selected
from the population to make a sample. A sample size should be
sufficient enough that can serve our purpose.
It should have Efficiency, Flexibility, and Reliability.
My sample size is of 100 people of Yamuna Nagar those are using the
refrigerator.
Sample unit
Sample technique
This is the type of technique that one uses to select the items
for the sample. The sampling method that I have used is
JUDGEMENT SAMPLING. Which is a type of Non Probabilistic
sampling.
ANALYTICAL TOOL
The tool that I have applied on my research report is
Multidimensional scaling & Correlation analysis.
Correlation Analysis
Types:
Correlation is classified in several different ways. Three of the most
important ways are
Positive or negative
Simple partial or multiple
Linear or non-linear
Correlation
3400-1890
=
6200-900 13500-3939
= 1510
5300 9561
1510
=
72.8 × 97.78
1510
=
7118.4
r= 0.2121
HYPOTHESIS TESTING
The chi-square test is one of the most simplest and widely used non-
parametric test in statistical work. The symbol is Greek letter chi. It was
first used by Karl Pearsons in the year 1990. the quantity chi-square
describes the magnitude of the discrepancy between theory and
observation
Chi-square= Σ(O-E)2
E
Where O=observed frequency
And E=expected frequency
Degree of freedom:
While comparing the calculated value of chi square with the table
value, we have to determine the degree of freedom. By degree of
freedom we mean the number of classes to which the values can be
assigned arbitrary or will without violating the restriction or limitations
placed.
H0 = let us take the hypothesis that brand image, Price, quality, after sale service and looks
do not influence the customer in their buying decision.
H1= let us take the hypothesis that brand image, Price, quality, after sale service and looks
influence the customer in their buying decision
Observed frequency table:
42×100
E11= =21
200
51×100
E12= = 25.5
200
75×100
E13= =37.5
200
17×100
E14= =8.5
200
15×100
E15= =7.5
200
42×100
E21= =21
200
51×100
E22= = 25.5
200
75×100
E23= =37.5
200
17×100
E24= =8.5
200
15×100
E25= =7.5
200
χ2 = {(O-E) 2}
= 18.502
E
Since the tabulated value of χ2.05 = 9.49 is less than the calculated
value of χ2 so, we reject the null hypotheses (H0).
Hence it is proved that brand image, Price, quality, after sale service
and looks influence the customer in their buying decision
LIMITATIONS OF THE STUDY
100 46 38 16
16%
46% LG
Whirlpool
Videocon
38%
INTERPRETATION: from my survey, I have found that LG was
having major market share in terms of Refrigerator as comparison to
others. There were 46% of the people those were having LG
Refrigerators.
40 38
35
30 27
No of Persons
25
19
20 Series1
16
15
10
0
News papers Magazines Through friends others
100 25 40 24 11
45
40
40
35
No. of Persons
30
25 24
25 Series1
20 Series2
15 11
10
5
0
Brand image Price Quality After Sales
Services
INTERPRETATION: the factors that were responsible for choosing a
particular product was found to be price, Brand name & quality.
There were 40% of the people those said that price has influenced
them more while buying.
21% 15%
Self
Friends/relatives
26% Family members
38% others
100 31 28 41
31%
41% Fully aware
Less aware
Unaware
28%
40
35
35
30 28
no of persons
25
21
20 Series1
15
9
10 7
5
0
Brand Image Price Quality After sales Style/looks
service
INTERPRETATION: the factors that were responsible for choosing a
particular Brand Of refrigerator was found to be price, Brand name &
quality.
There were 36% of the people those said that price has influenced
them more while buying a refrigerator
50
No. of persons
40
30
Series1
20
10
0
Fully Satisfied Undeciced Less poor
Satisfied satisfied
INTERPRETATION: on asking that whether the customers were satisfied with the
overall performance of the refrigerator, only about 13% reported that they were
Less satisfied whereas about 43% said they are satisfied with the performance of
the refrigerator.
According to you which company gives the most beneficial
schemes to the Customers?
100 38 31 14 17
40 38
35
31
30
No of Persons
25
20 17 Series1
14
15
10
0
LG Whirlpool Videocon other
INTERPRETATION: on asking that which company provides the most beneficial
schemes to the customer , only about 17% of the people were in the favor of other
companies . 38% of the people were in the favor of LG.
100 37 63
37%
Yes
No
63%
INTERPRETATION: it is clearly seen that if a company offers more attractive
schemes then only 37% will go for that brand & 63% of the people will not go for
tat brand.
SUGGESTIONS…
SUGGESTIONS
On the basis of the survey conducted by me, following suggestions are
to be considered:
BIBLIOGRAPHY
…
BIBLIOGRAPHY
Research methodology, methods and techniques by Kothari C.R,
www.videoconworld.com/consumer-durables/home-
www.whirlpoolindia.com/product_details.aspx?
2007)
ANNEXURE…
QUESTIONNAIRE
“Consumer Preferences in selected brands
(Whirlpool, Videocon, LG) of 200 lts refrigerators
on the basis of Price, Brand name ,Quality &
After sales Services”
Name: - Gender:-
Place: - Age:-
Occupation: - Income:-
5. How did you come to know about your brand /model of Refrigerator?
Newspaper Magazines Through Friends Others
11. According to you which company gives the most beneficial schemes to the
Customers?
LG
Whirlpool
Videocon
Other
12. What are your views about brand image of following brands of
Refrigerator?
Whirlpool
Videocon
LG
13. What are your views about Price of following brands of Refrigerator?
Very High High Average Low Very Low
Whirlpool
Videocon
LG
14. What are your views about Quality of following brands of Refrigerator?
Whirlpool
Videocon
LG
15. If any of other brands of Refrigerator offers you any attractive scheme, will
you go for that brand?
Yes No
Independence tests between the rows and columns in the contingency table:
Chi-square test:
Decision:
At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of
independence between the
rows and the columns.
In other words, the dependence between the rows and the columns is significant.
Decision:
At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of
independence between the rows
and the columns.
In other words, the dependence between the rows and the columns is significant.
Value DF p-value
Chi-square 18.504 4 0.001
Wilks' G² 24.330 4 < 0.0001
Coefficient Value
Pearson's Phi 0.304
Cramer's V 0.304
Tschuprow's T 0.215
Contingency coefficient 0.291
Theil's U (R|C)
Theil's U (C|R)
Averaged Theil's U
Goodman and Kruskal tau (R|C) 0.093
Goodman and Kruskal tau (C|R) 0.012
Averaged Goodman and Kruskal tau 0.052
Multidimensional Scaling (MDS)
Factors/Group Group 1 Group 2 Group 3 Group 4 Group 5
Brand name 10 8 2 2 2
Quality 9 8 4 2 1
Price 13 10 5 2 4
After sales
services 2 4 2 1 2
others 1 2 1 1 2
Observation coordinates:
8 2 2 2
8 0 0.766 6.644 8.271
2 0.766 0 7.370 8.750
2 6.644 7.370 0 8.969
2 8.271 8.750 8.969 0
8 2 2 2
8 0 0.000 6.000 8.000
2 0.000 0 8.000 9.000
2 6.000 8.000 0 9.000
2 8.000 9.000 9.000 0
In the case of the absolute model, the disparities are equal than the dissimilarities
Residual distances:
8 2 2 2
8 0 0.766 0.644 0.271