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Dissertation Interim Report

A STUDY ON CONSUMERS BRAND PREFERENCE IN


SELECTING ELECTRONIC APPLIANCES(Refrigerator) IN
BHUBANESWAR, ODISHA

As a partial fulfillment of the recruitment for the degree of


Mater of Bussiness Administration

SUBMITTED BY:
AJIT KU. SAHOO
Regd No. 1461301084

SUBMITTED TO:
DR. SOUMYA MISHRA
(Dept. of HR )

INSTITUTE OF BUSSINESS & COMPUTER


STUDIES
SIKSHA O ANUSANDHAN UNIVERSITY,
BHUBANESWAR

CONTENTS

1.

Introduction

2.

Research Objectives

3.

Research Methodology

4.

REVIEW OF LITERATURE

5.

Plan of Study

6.

References

INTRODUCTION
Today a consumer is exposed to wide brands. In this competitive world every company strives
hard to attract customer to their brand but some succeed while some fail in their effort to grab
them. Now days consumer have become brand conscious and they exhibit high brand preference
and choice while purchasing product especially in urban market. So success of brand lies in their
ability to stand out on the crowded shelf and touch the customer. The brand success comes at
expense of others. The choices are an exercise in elimination. The essential question surrounding
the concept of choice are: why and how a brand is chosen while others are rejected? This
necessitates the understanding of dynamics of customer and its relationship with the brand. The
brand stewards of valued brand exhibit greater knowledge of customers than rest of the packs,
because success is the only yardstick that measures how well the brand connects with the
customer in the targeted group.

SOCIAL IMPACT
Much social impact is behind here on purchasing any electronic products by the house wife. In
that few would be inevitable: i. Neighbours Products
The Neighbours in apartments or colonies are mingling with each other very close like one
family. They even share every minute thing with the neighbours according to the relationship. In
such a condition, the electronic products arealso made an example to purchase the same or alike
one. This not only brings happiness but also the competent in the lifestyle in the particular putup.
ii. Visual Media
In Coimbatore, the local TV channels are advertising many products and services from the local
made to the international brand. The multi dimensional view of these electronics products
enhances the idea of a wife to purchase it. The pricewhich they mentioned in the does not have
much negativeimpact. Because the manufacturers very well identified thatthe cost of the product
could match with the purchasing capacity of the consumer.
iii. Store Atmosphere

Show rooms like LG and Sony are all showing a richambience inside which the consumers
especially the homemakers would prefer a better place to purchase the electronic products. The
expandable view of the store has given an opportunity for the consumers to relax purchase of
commodities. In addition to this, it is fashion that some electronic showrooms are opening cafes
and lounges inside the showroom to boost their brands and warm up to future customers.
iv. Exhibition
The women of the house who is attracted by seeing all the brands of electronic goods at one
place. Of course in the city there are more than 50 best showrooms can come to one place to
display their products for the perusal of the customers. The exhibition is the one place which is
viable to fulfill the meetings in between the electronic sellers and buyers [6]. From mixi to wet
grinders, from head phone to wireless speakers, every things is available at the discounted prices.
This attribute pull the women of the house towards the exhibition. The choices are more, very
fabulous varieties, andexpected features in the products makes very happy .

OBJECTIVES:

To know the brand preference of the customer for the selected electronic brands in
Bhubaneswar city.
To identify the sources of awareness.
To study the factors which are influencing brand preferences for different brands.

LIMITATION

Only a short span of time period have been used to collect the data.

SCOPE OF THE STUDY:


METHODOLOGY:

Primary data was collected for the research study in Bhubaneswar. The major reason for
choosing Bhubaneswar was its demographic nature and Bhubaneswar being consider to be an
important city of Odisha.
RESEARCH DESIGN:

The research design for the study is descriptive. Consumers of various age and income groups
have been interviewed for research survey using structured question.
SAMPLE DESIGN AND SAMPLE SIZE:

Sample technique used for the study was convenience sampling and the sample size was 100.
The instrument used was questionnaire which includes open ended and close ended questions.
Personal interview was conducted among the target respondent
TOOL USED FOR THE STUDY:

a. Frequencies analysis
b. Ratio Statistics and investigation
c. One way ANOVA
d. Weighted estimation (Weight Least Square Analysis)
e. Two step Cluster Analysis
f. Factor Analysis
g. X-Bar, R, chart for cases of units
Percentage analysis Method:

It refers to a special kind of ratio with the help of absolute figures, it will be difficult to interpret
any meaning from the collected data, but when percentage are found out then it becomes easy to
find relative difference between two or more attributes.
Percentage= No. of Respondents/ Total no. of respondents *100

REVIEW OF LITERATURE :
The study endeavors to find out brand preference of consumers of mostly used consumer
durables and also to assess their satisfaction level. In this context several literature on brand
preference of consumer durables and customer satisfaction on brand and consumer durables are
studied.
Ramesh Sardar (2012)conducted a study on brand preference of passenger cars in Aurangabad
district with the objective of finding out the factors influencing the brand preference of
passenger cars and also to assess the profile of passenger car consumers. The study was also
intended to analyze the satisfaction level of consumers of passenger cars. A total of 150
respondents from Aurangabad district of Maharashtra was taken as sample. The study found that
personal factors like age, educational qualification, gender, occupation, income status had
significant influence over factors affecting brand preference. The study also found that 70% of
the respondents were satisfied with the car which they were using.
P.sathyapriya, R.P. Suganesh (2011) conducted a study on factors influencing brand preference
of passenger cars among existing car owners. The objectives of the study were to identify
brands of cars preferred by prospective consumers and also to understand factors that influence
their choice in different segments of cars. The study also intended to assess the impact of

demographic variables on the brand. Of passenger car preferred. A total of 603 samples were
taken from Chennai. The study found that Maruti was the most preferred brand in mid car
segment while Hero Honda was the most preferred brand in premium car segment. The study
also found that performance safety and brand name of cars were the most influential factors in
their purchase decision making. Age and income did have a direct role to play in influencing
brand preference.
Most of the previous researches in this field were conducted to identify the factors influencing
brand preference and also to find out the satisfaction level of consumers for any one consumer
durable or consumer durables in general. But the researcher has not come across any study where
endeavor was given to understand the factors influencing brand preference and to judge the
satisfaction level of consumers for mostly used consumer durables in a household. The present
study endeavours to compensate that gap.
India is one of the fastest growing markets of the world. The potential not only lies in the urban
India but in the rural India too (Joginder Singh, 2011). The study has been carried out to
differentiate the buying behavior of rural households from that of urban households. Three
durable goods from three different product categories; Television (entertainment product),
Refrigerator (home appliance), and an Automobile (two wheeler, motorcycle and car/jeep) have
been selected for study. The overall conclusion was that there was no significant differences
could be observed between rural and urban consumers in terms of their; timing of purchase,
buying the same brand of other durable, number of items, and duration of planning before
buying. A study on consumer behavior of woman with special reference to durable goods in
Coimbatore city has been conducted in Tamil Nadu. The researcher concluded the result that
education plays an important role in shopping behavior and higher income group respondents
shop as and when they like. Family influences on consumers behavior have a greater extent
while purchasing the branded products (Dr. S. Sarvana 2010). The following research states that
majority of the respondents prefer to purchase products from departmental store rather than any
other shop. This paper specifies and estimates a dynamic model of consumer preferences for
new durable goods with persistent heterogamous consumer tastes, rational expectations about
future products and repeat purchases over time (Oksana Mont , Kate Power, 2010 ). Most new
consumer durable goods, particularly consumer electronics, are characterized by relatively high
initial prices followed by rapid declines in prices and improvement in quality. The evolving
nature of attributes suggests the importance of modeling dynamics in estimating consumer
preferences. We estimate the model on the digital camcorder industry using a panel data set on
price, sales and characteristics. In a research entitled "Marketing of electronic products in India
with special reference to computer and television industries", electronic product is looked upon
by most people almost as a natural phenomenon beyond people's control. Many people have
accepted marketing of electronic products as their career and electronic products have greater
effect an society (Bansh. Hari, 2002). Attitude of people towards marketing is positive and
marketing of electronic products powerful enough to promote consumers cultures & value. The

world of today is changing fast. Especially after the opening up of the economy, the pace of
change that India and its people are experiencing in their socio-cultural milieu is mind boggling
(Luh, Ding-Bang, 2000). India, with its wide diversity, offers a fascinating scope to study the
host of changes which developmental activities have brought about in its social & economical
framework. While it is possible to get some estimates of the macro changes taking place in India,
it is impossible to get any accurate measures of the subjective experiences that proceed,
accompany or follow such changes. However, the fact remains that the profile of the Indian
market is vastly different from what it was earlier. Although these changes are difficult to
measure at the micro level, nevertheless, they have been of great significance to marketers.
People from same subculture, social class, and occupation may lead quite different lifestyles
(Philip Kotler and Kevine Lane keller, 2006). Lifestyle is the persons pattern of living in the
world as expressed in activities, interests, and opinions. Lifestyle portrays the whole person
interacting with his or her environment. Lifestyle helps marketers to classify products according
to the activities interest, and opinion. Since most of customer is achievement- oriented. Therefore
the marketers may aim the brand more clearly at the achiever lifestyle. Empirical evidence from
the automobile industry suggests that cars are experience goods: consumers do not have
complete information about some characteristics of cars, and can only learn about them after
buying and trying them out (G. Martin Paredes, 2006). This would explain the significant
dispersion of customer loyalty among car brands. It was proposed that a dynamic model to study
markets for durable experience goods where trade in used goods is allowed and experience is
idiosyncratic.
The study about effect of creative and innovative marketing strategies on
buying process of consumers of electronic Goods resulted that the ultimate user of a product or
a service are consumers (Shishupal Singh Bhadu and Prangya Priyadarshani Harsha, 2010). This
paper is an attempt to elaborate the various factors that influences buying decision process of
consumers and the effect of marketing strategies on their buying behavior. The findings of the
result help marketers to understand the effect of innovative marketing strategies in framing
marketing policies for the global consumer of their global product. With a new durable goods
appearing, the price of old type tends to decrease and the performance of the new type tends to
be improved (Gautam Gowrisankaran, HEC Montr'eal, Marc Rysman, 2009).Thus consumers
with purchasing desire have two choices of buying a new one or the old one. A discrete time
Markov decision process model is presented first with the consumer reserve prices to different
durable generations as states, whose objective is to maximize consumer's purchasing value. The
higher the reserve price, the more probable the consumer purchases the product in a higher
price.With a new durable goods appearing, the price of old type tends to decrease and the
performance of the new type tends to be improved (Ovidiu I. Moisescu, Babes-Bolyai, 2008).
The firm's position on the market is determined by the value offered by selling its products or
offering its services, the public relations depending on the customers' perception of the value of
the product or service offered to them, and the position occupied in relation to the competitors is
determined by the level of the product's prices and advantages offered by the competition (Junxiu
Jia Rong Du Qiying Hu, 2007). The price and the value-price ratio are two fundamental variables
of which the firm's survival depends in the competitive environment. TV and advertising

together present a lethal combination and has become an integral part of modern society (Junxiu
Jia Rong Du Qiying Hu, 2007). It is the most convenient route to reach not only adult consumers
but also the adolescents. Adolescents are manipulated by advertisement promise that the product
will do something special for them which will transform their life. The results revealed that
advertisements played a vital role in introducing a new product in the family list & making better
choice during shopping. The girls utilized their pocket money received every month for
shopping. The main items purchased from the pocket money were- food, cosmetics, gifts and
cards. The parents choice and advice was important in their purchase decision. Institute of
Developing Economies, There is a difference in development processes between China and
India. Although the Chinese and Indian electrical and electronics industries were both in
technological backwardness, it is known that the Chinese local firms have, in comparison with
the Indian local firms, grown remarkably through fierce competition among themselves
(Giuseppe Bertola, Luigi Guiso, Luigi Pistaferri, 2005). In the present study it had been taken up
the Chinese and Indian TV markets as a representative product in the industries and investigates
the subject of competition as a driver in the promotion of local industrial development. The
influence of gender, age, education, and income on the likelihood to purchase over the Internet is
empirically examined (Andrew Caplin, John Leahv, 2004). Findings show that these variables
significantly influence the likelihood to purchase over the Internet and can be used to profile,
segment, and target markets and develop public policies to bridge the digital divide. Brand
awareness, as one of the fundamental dimensions of brand equity, is often considered to be a
prerequisite of consumers' buying decision, as it represents the main factor for including a brand
in the consideration set (Syed H. Akhter, 2002). Brand awareness can also influence consumers'
perceived risk assessment and their confidence in the purchase decision, due to familiarity with
the brand and its characteristics. This paper tries to reveal, on one hand, the importance of
unaided brand awareness when it comes to consumers' buying decision and, on the other hand,
the importance of aided brand awareness when assessing the perceived risk associated with the
purchase. In a research entitled "Marketing of electronic products in India with special reference
to computer and television industries", electronic product is looked upon by most people almost
as a natural phenomenon beyond people's control. Many people have accepted marketing of
electronic products as their career and electronic products have greater effect an society (Bansh.
Hari, 2002). Attitude of people towards marketing is positive and marketing of electronic
products powerful enough to promote consumers cultures & value. The world of today is
changing fast. Especially after the opening up of the economy, the pace of change that India and
its people are experiencing in their socio-cultural milieu is mind boggling (Luh, Ding-Bang,
2000). India, with its wide diversity, offers a fascinating scope to study the host of changes which
developmental activities have brought about in its social & economical framework. While it is
possible to get some estimates of the macro changes taking place in India, it is impossible to get
any accurate measures of the subjective experiences that proceed, accompany or follow such
changes. However, the fact remains that the profile of the Indian market is vastly different from
what it was earlier. Although these changes are difficult to measure at the micro level,
nevertheless, they have been of great significance to marketers

DATA ANALISYS AND INTERPRITATION


1. Acc. To family income
upto 5000
5000-7500
8000-10000
above 10000

5
10
15
70

monthly income
upto 5000

5000-7500

8000-10000

above 10000
5%10%
15%

70%

INTERPRITATION
1. From the above data it is clear that 70% of the customers are having monthly
income more than 10000, 15% having between 8000 to 10000, 10 % having
between 5000 to 7500 and only 55 having less than 5000.

2. Acc. To having refrigerator

yes
no

95
5

having a refrigerator
yes

no

5%

95%

INTERPRITATION
FROM THE ABOVE DATA IT IS SHOWN THAT 95% of customer are having
refrigerator.

3. Acc. To Brand of Refrigerator

LG
VIDEOCON
WHIRLPOOL
SAMSUNG

15
5
20
60

Brand of refrigerator customer have


LG

VIDEOCON

WHIRLPOOL

SAMSUNG

15%
5%
60%

20%

INTERPRITATION
From the above data it is clear that 60% of customers are using Samsung ,20% are using
whirlpool,5% are using Videocon and 15% are using LG.

4. Long do you own this Refrigerator

Less than six month


Six month
One year
Two year
More than 2 years

5
20
70
2

how long the refrigerator is used


Less than six month

Six month

One year

Two year

More than 2 years


2% 3%5%
20%
70%

INTERPRITATION
From the above data it is clear that 70% of customers are using the same refrigerator more than 2
years, 20% are for 2 years , 5% are for 1 year , 3% are for six months and only 2 % are for less
than 6 months.

5. AWARENESS ABOUT THE REFRIGERATOR

20

Newspaper
Magazines
TV

5
70
5

Through Friends

other

source of information about the brand of refrigerator


Newspaper

Magazines

Through Friends

other

5%

TV

20%
5%

70%

INTERPRITATION
From the above data it is clear that 70% of correspondents are aware of the brand of refrigerator
from TV , 20% from newspaper , 5% from magazine & friends.

6. factor influencing in your buying decision

60

Brand image
Price
Quality
After sales service

3
30
6

factor influencing buying decision


Brand image

Price

Quality

After sales service

6%
30%
3%

61%

INTERPRITATION
From the above data it is clear that 61% of correspondents are influenced by the brand image,
30% are influenced by the quality,6% are influenced by the after sales service and 3% are
influenced by the price.

7. ACC. To influence of buying

Self
Friends
Family members
Others

2
13
75
10

influence of buying
Self

Friends

Family members

Others

10% 2% 13%

75%

INTERPRITATION
From the above data it is clear that 75% of correspondents are influenced by the family member
while buying , 13% are y their friends , 10% are from others and 2 % by self.

8. SATISHFACTION WITH THE PERFORMANCE

85

Fully satishfied
Unsatishfied
Un decided
Less satishfied

5
6
4

satishfaction level
Fully satishfied

Unsatishfied

5%

Un decided

Less satishfied

6% 4%

85%

INTERPRITATION
From the above data it is clear that 85% customers are satishfied, 5% are unsatishfied , 6% are
undecided and 4 % are less satisfied.

9. best electronic service provider


15

Lg
Whirlpool
Videocon
Samsung
Other

Lg

Whirlpool

Videocon

1%

3
1
80
1

Samsung

15%

Other

3%
1%

80%

INTERPRITATION
From the above data it is clear that 80% people agred that Samsung is the best service provier,
15% agreed that whirlpool is the best service provider , 3% said Videocon and only 1% said
Videocon and other.

10. Acc. To view about brand image


FOR WHRILPOOL
very good
good
average
low
worst

2
15
74
8
1

very good
good
average
low
worst

0
35
49
15
1

very good
good
average
low
worst

8
70
15
5
2

very good
Good
Average
Low
Worst

84
4
10
2
0

FOR VIDEOCON

FOR LG

FOR SAMSUNG

whrilpool
very good

good

low

worst

average

1% 2%
8%
74%

15%

videocon
very good

good

low

worst

average

1%
35%

15%
49%

LG
very good
low

good

worst
5%
15%
2% 8%
70%

SAMSUNG
average

very good
low

good

average

worst
10%
2%
4% 84%

INTERPRITATION
FROM THE ABOVE PIE CHART IT IS CLEAR THAT 74% CUSTOMER SAID THAT
WHRILPOOL IS GOOD ,49% CUSTOMER SAID THAT VIDEOCON IS GOOD ,70% OF
CUSTOMER SAID LG IS GOOD AND 84% PEOPLE SAID THAT SAMSUNG IS GOOD.

11. ACC. TO THE PRICE


FOR WHRILPOOL
VERY HIGH
HIGH
AVERAGE
LOW
VERY LOW

75
5
10
6
4

FOR VIDEOCON
VERY HIGH
HIGH
AVERAGE
LOW
VERY LOW

25
20
35
15
5

FOR LG
VERY HIGH
HIGH
AVERAGE
LOW
VERY LOW

45
20
15
12
8

FOR SAMSUNG
VERY HIGH
HIGH
AVERAGE
LOW
VERY LOW

10
15
65
8
2

WHRILPOOL
VERY HIGH

HIGH

LOW

VERY LOW
6%
10%
5%

AVERAGE

VIDEOCON
VERY HIGH

HIGH

LOW

VERY LOW

4%

5%
15% 25%
35% 20%

75%

SAMSUNG

LG
VERY HIGH

HIGH

LOW

VERY LOW
12% 8%
15%
20%

AVERAGE

AVERAGE

45%

VERY HIGH

HIGH

LOW

VERY LOW

AVERAGE

2%
10%
8%
15%
65%

INTERPRITATION
75% OF CUSTOMER SAID THAT WHRILPOOL PRICE IS HGH , 35% CUSTOMER SAID
THAT VIDEOCON PRIVE IS AVERAGE , 45% CUSTOMER SAID THAT LG PRICE IS
VERY HIGH AND 65 % CUSTOMER SAID THAT SAMSUNG PRICE IS AVERAGE.

12. VIEWS ABOUT QUALITY OF THE BRAND


FOR WHRILPOOL
very good
good
average
low
worst

2
15
74
8
1

FOR VIDEOCON
very good
good
average
low
worst

0
35
49
15
1

FOR LG
very good
good
average
low
worst

8
70
15
5
2

FOR SAMSUNG
very good
Good
Average
Low
Worst

84
4
10
2
0

whrilpool
very good

good

low

worst

average

1% 2%
8%
74%

15%

videocon
very good

good

low

worst

average

1%
35%

15%
49%

LG
very good
low

good

worst
5%
15%
2% 8%
70%

SAMSUNG
average

very good
low

good

average

worst
10%
2%
4% 84%

INTERPRITATION
FROM THE ABOVE PIE CHART IT IS CLEAR THAT 74% CUSTOMER SAID THAT THE
QUALITY OF WHRILPOOL IS GOOD ,49% CUSTOMER SAID THAT VIDEOCON IS
GOOD ,70% OF CUSTOMER SAID LG IS GOOD AND 84% PEOPLE SAID THAT
SAMSUNG IS GOOD.

13.IF any of other brand offer you any attractive scheme will you
go for that brand

Yes
no

5
95

switching to other brand


yes

no

5%

95%

INTERPRITATION
95% customers said that they will not switch their brand.

FINDINGS

About 70% of the customers are having monthly income more than 10000, 15% having
between 8000 to 10000, 10 % having between 5000 to 7500 and only 55 having less than
5000.
95% of customer are having refrigerator.
60% of customers are using Samsung ,20% are using whirlpool,5% are using Videocon
and 15% are using LG
70% of customers are using the same refrigerator more than 2 years, 20% are for 2 years ,
5% are for 1 year , 3% are for six months and only 2 % are for less than 6 months.
that 70% of correspondents are aware of the brand of refrigerator from TV , 20% from
newspaper , 5% from magazine & friends
61% of correspondents are influenced by the brand image, 30% are influenced by the
quality,6% are influenced by the after sales service and 3% are influenced by the price.
75% of correspondents are influenced by the family member while buying , 13% are y
their friends , 10% are from others and 2 % by self.
85% customers are satishfied, 5% are unsatishfied , 6% are undecided and 4 % are less
satisfied.
80% people agred that Samsung is the best service provier, 15% agreed that whirlpool is
the best service provider , 3% said Videocon and only 1% said Videocon and other.
74% customer said that whrilpool is good ,49% customer said that videocon is good ,70%
of customer said lg is good and 84% people said that samsung is good.
75% of customer said that whrilpool price is hgh , 35% customer said that videocon prive
is average , 45% customer said that lg price is very high and 65 % customer said that
samsung price is average
74% customer said that the quality of whrilpool is good ,49% customer said that
videocon is good ,70% of customer said lg is good and 84% people said that samsung is
good.
95% customers said that they will not switch their brand

SUGGESTION