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ROLL NO 28051
SOCIALIZATION PROCESS DURABLE INDUSTRY
AMITESH MISHRA | s
consumer durable Industry.
SUBMITTED TO: - MR. PRASHANT VERMA SUBMITTED BY:-AMITESH MISHRA 28051 PGDM 2008-10
I would like to thank to my Mr. PRASHANT VERMA for his help and guidance in the production of this dissertation.
TABLE OF CONTENTS
Executive summary Significance of study Introduction
Sector Financials Objective of study Scope of study: Research methodology Limitations SWOT Analysis Classification of Consumer Durables Sector Future Scenario Scope Consumer Markets Growth of Niche Segments and E-commerce Consumer durable majors bid to fix region-specific problems Consumer Socialization: How do children become consumers Challenges Facing the Consumer Electronics Industry
Duty cut to spur consumer durables industry likely socialization Media and socialization Analysis of questionnaire Conclusion References .
SIGNIFICANCE OF STUDY This project will tell us that how the socialization process is important in consumer durable products. How it affects the purchasing power in case of consumer goods. What are the factors that influence the decision of buying . what factors do they consider. To find out how do consumers decide and what do they look for while buying an electrical appliance or any other consumer goods.
TCL Corporation is also planning to establish a $22 million manufacturing facility in India. as many foreign players are entering in the market. Samsung. only a few companies like Kelvinator. accounting for no less than 90% of the market. Consumer durables market is expected to grow at 10-15% in 2007-2008. foreign players like LG. Daewoo. Aiwa came into the picture. has announced its extension plan in 2006. and Sony. after the liberalization. It is growing very fast because of rise in living standards. LG Electronics India Ltd. There has been strong competition between the major MNCs like Samsung. Godrej. Videocon has acquired Electrolux brand in . and Voltas were the major players in the consumer durables market. these players control the major share of the consumer durables market. The Indian companies like Videocon Industries and Onida are also planning to expand.INTRODUCTION Before the liberalization of the Indian economy. LG. Then. Allwyn. Sony. and wide range of choice. Today. The company is going to invest $250 million in India by 2011 and is planning to establish a manufacturing facility in Pune. easy access to consumer finance. Whirlpool.
and LG Electronics India Ltd. and Mexico. According to is uppli Corporation (Applied Market Intelligence). . China. and color televisions (CTVs). and Sony. with the acquisition of Thomson Displays by Videocon in Poland. split air conditioners. such as Samsung. country's fiscal policy has encouraged Indian consumer electronic industry. Also. LG. The reduction on import duty in the year 2005-06 has benefited many companies. Ltd. the company is marking its international presence. fully automatic washing machines.India. These companies import their premium end products from manufacturing facilities that are located outside India. are now focusing on rural areas also. Indian consumers are now replacing their existing appliances with frost-free refrigerators. Some companies like Samsung Electronics Co. These companies are introducing gift schemes and providing easy finance to capture the consumer base in rural areas. which are boosting the sales in these categories.
4% 6.9 .6% 940m -4.9% Employed (ROCE) Growth in 2005-06 Consumer Durables Air Conditioner Refrigerator Microwave Ovens Washing Machines Color Televisions (CTVs) Black & White Televisions Clock Growth 20-25% 5-10% 25% 5-10% 15-20% -20% 10% 23.019m 1.9% 37.0 31/03/2003 30.SECTOR FINANCIALS In Rs 31/03/2002 Sales Sales Growth Gross Profit Margin Profit After Tax (PAT) PAT Growth Market Capitalization P/E Ratio Return on Capital 13.5% 2.3% -1.202m -209.359m -7.331m 10.392m 7.096m 43.6 31/03/2004 43.3% 2.787m 7.7% 1.100m -19.1% 6.2% 4.
Watch VCDs Consumer Electronics (Overall) 10% 30% 9% .
OBJECTIVE OF STUDY The main objective of study is to find out that how the socialization is important in deciding consumer durable and what are the important factors for an individual in deciding consumer durables. .
SCOPE OF STUDY This study will help us to find the factor which influence the decision of buying and it will also highlight the social behaviour importance of .
.” Primary data collection methods 1st step: Pilot survey: research started through pilot survey in which i have drafted 5 questions which carries both open ended as well as close ended questions. In this we study the various steps that are generally adopted by a researcher in pursuing the research. Dealt is often better than overconfidence for it leads to inquiry. collecting the facts of data. analyzing the fact and reaching certain conclusion either in the form of solutions towards the concerned problem or in the form of certain generalizations for some theoretical formulation.RESEARCH METHODOLOGY Research methodology stands for the ways & means that we adopt for conducting research. Research methodology consist of enunciating the problem. & inquiry leads to invention. “All progress is born of enquiry. formulating the hypothesis.
2nd step: Questionnaire: In questionnaire i have drafted 10 questions to check the risk factor of people. comparative study or common size method etc. Questionnaire which i have drafted is objective. • Statistical tools: . pie charts. These are: - . bar charts etc. In this research study we have used both accounting as well as statistical tools. These are: • Accounting tools: .Here we can use trend analysis.Here we can use graphs. 3rd step: Survey Apart from questionnaire i have done surveys Secondary data collection methods ● websites annual report magazines/journals News papers/business magazine ● ● ● Tools and techniques: There are two types of tools and techniques are used for the data analysis.
Pie charts and bar charts and graphs.• • Accounting Tools: . .Comparative Study Statistical Tools: .
LIMITATIONS • • sample was small limited to a particular regin .
organized sector has increased its share in the market vis a vis the unorganized sector. In recent years. Low purchasing power of consumers Opportunities 1. increase in purchasing power of consumers.e. Poor government spending on infrastructure 4.SWOT ANALYSIS Strengths 1. Demand is seasonal and is high during festive season 2. Weaknesses 1. Presence of established distribution networks in both urban and rural areas 2. In India. Demand is dependent on good monsoons 3. . 2. Increase in income levels. i. Unexploited rural market 3. Rapid urbanization 4. the penetration level of white goods is lower as compared to other developing countries. Presence of well-known brands 3.
5. Higher import duties on raw materials imposed in the Budget 2007-08 2. Easy availability of finance Threats 1. Cheap imports from Singapore. China and other Asian countries .
water heaters.2 millions in 2006. camcorders. Clocks and Watches 5. built-in appliances. vacuum cleaners. Hi-Fi. In 2006. non-kitchen appliances. Moulded Luggage includes plastics. Frost-free refrigerators have registered significant growth as many urban families are replacing their old refrigerators. Refrigerator sales amounted to 4. White Goods include dishwashers. whereas the production of the refrigerators went up by . washing machines. personal care products. microwave ovens and air conditioners registered a growth of about 25%. Mobile Phones The consumer durables market in India is valued at US $ 4.CLASSIFICATION OF CONSUMER DURABLES SECTOR Consumer durables Sector can be classified as follows: 1.5 billions currently. 4. music players. 3. portable audio. cameras. Consumer Electronics includes VCD/DVD. etc. etc. color televisions (CTVs). 2. air conditioners. microwaves. kitchen appliances. home theatre. tumble dryer. refrigerators.
.17% as compared to the preceding year. which have always seen poor growth. Washing machines. have seen reasonable growth in 2006. The penetration level of color televisions (CTVs) is expected to increase 3 times by 2007. More and more Indians are now buying electrical appliances due to change in electricity scenario.
For example. the penetration level of various countries is: India Brazil China US France Japan 24% 11% 98% 333% 235% 250% Demand and Penetration Level of White Goods in India . government support. in case of color televisions (CTVs). fall in prices due to increased competition. The penetration level of consumer durables is very low in India. growth in consumer base of rural sector. a good growth is projected in the future. improvements in technology. reduction in customs duty. emergence of doubleincome families. This translates into vast unrealized potential.FUTURE SCENARIO With easy availability of finance. the consumer durables industry is growing at a fast pace. availability of disposable incomes. too. Given these factors. growth of media. as compared with other countries. rise in temperatures.
In billions SCOPE In terms of Purchasing Power Parity (PPP).000 149 per 1.72 million 2009-2010 13.000 319 per 1.43 million 2005-2006 8. the demand for Electronic Appliances is projected to grow exponentially at a compounded annual growth rate (CAGR) of 30%.14 million per 1.1995-1996 Demand Penetration level 3. India is the 4th largest economy in the world and is expected to overtake Japan in the near future to become the 3rd largest.000 451 households households households In a study conducted by Frost & Sullivan and commissioned by India Semiconductor Association (ISA). Indian consumer goods .
The urban market has now largely become a product replacement market.5% for refrigerators and washing machines respectively. There are a lot of young people in India in different income categories.400.thirds of its population is below the age of 35. who are earning US$ 4. Rural areas have the penetration level of only 2% and 0.6 million in 2000. And there are 6 million rich households in India.US$ 21.market is expected to reach $400 billion by 2010. The rural market is growing faster than the urban market.2 million in 2007 as against 14. The upper-middle and highincome households in urban areas are expected to grow to 38. as it accounts for 70% of the Indian population. The urban market and the rural market are growing at the annual rates of 7%-10%and 25% respectively.800 a year. There are 56 million people in middle class. India has the youngest population amongst the major countries. Nearly two. The bottom line is that Indian market is changing rapidly and is showing unprecedented business opportunity . and nearly 50 % is below 25. Rural sector offers huge scope for consumer durables industry.
Indian incomes are likely to grow three-fold over the next two decades and India will become the world's fifth-largest consumer market by 2025.CONSUMER MARKETS Last Updated: February 2009 Sustained Momentum As rapid socio-economic changes sweep across India. moving up from its position in 2007 as the 12thlargest consumer market. . the country is witnessing the creation of many new markets and a further expansion of the existing ones. With above 300 million people moving up from the category of rural poor to rural lower middle class between 2005 and 2025. Mr Kamal Nath. Such developments in India's markets are expected to create major opportunities for Indian companies and multinationals (MNCs) alike and further fuel consumer demand in India. rural consumption levels are expected to rise to current urban levels by 2017. Despite the gloom in the global markets. India will continue to be the second fastest growing economy in the world and according to the Indian Minister for Commerce and Industry. According to a study by the McKinsey Global Institute (MGI). the Indian economy may well grow at over 7 per cent in 2008-09.
Moreover. . riding on the boom in organised retail sector. according to the National Council for Applied Economic Research (NCAER) estimates. Sales of daily consumption items went up by 5-10 per cent and the FMCG business increased by 18. The firms included in the analysis were from sectors like automobiles. approximately 315 hypermarkets are expected to come into existence in tier-I and tier-II cities across India by the end of 2011. says a joint study by consultancy firm KPMG and industry body. ASSOCHAM.8 per cent. consumer durables and retail among others. while the consumer durable segment also recorded strong volume growth in the second quarter of the 2008-09 fiscal. fast moving consumer goods (FMCGs).66. from 58 per cent in 1995-96 and 25 per cent currently. In an analysis (carried out by Economic Times) of the top 50 consumer goods and services firms.Further. textiles. The study states that 212 Indian towns are capable of sustaining the development of such hypermarkets in 2008. only 14 per cent households in India will have annual household incomes of less than US$ 921. it was seen that the June quarter of 2008-09 saw a sales growth of 24 per cent (year-onyear) compared to last year. by 2012.
"We have not witnessed any pressure so far. On similar lines. In fact the festival period saw a growth of 40-50 per cent." Mayank Pareek. with most Indian companies denying any cutbacks from consumers. Marico's CEO-Consumer Products. said. we've seen good growth of about 25 to 30 per cent on a same-store basis. we've seen no drop. "At both Big Bazaar and ezone. "We've seen four distinct phases in 2008.Despite the prevailing gloom across global markets. CEO of Future Group's ezone. optimistic lot. Marketing and Sales. "In our categories. with the highest ever retail sales. August to October saw some weakening. expensive products like LCD televisions and laptops are witnessing higher growth than their cheaper counterparts. Then October was huge. Maruti Suzuki India. Saugata Gupta. said. LG Electronics' Sales and Marketing Director. Then again November sales dropped only to again rise in December". Indian consumers and companies continue to be a confident. April to June went okay. V Ramachandran. In fact." ." said Manoj Kumar. Executive Officer. said. In the FMCG sector players continue to report good sales figures.
Rural Consumers Rural India has provided a beacon of hope to India Inc amidst the prevailing economic slowdown." FMCGs have seen over 20 per cent demand in rural markets ahead of the 17-18 per cent growth in urban India. with FMCG. and even candies saw more growth in rural markets than urban. mainstay categories like hair oils. . Tata Motors. Maruti. the rural consumer is spending like never before. senior fellow at the National Council for Applied Economic Research (NCAER) said. Buoyed by a plenteous harvest. Samsung. Beverage major Coca-Cola India has already introduced a largescale retail programme tailor-made for tier II and tier III towns. toothpastes. Similarly. " Most corporate who have expected sales of 30-40 per cent from the smaller markets now hope to net in more than 60 per cent of their sales turnover from rural India. Sansui. Hero Honda. According to AC Nielsen. shampoos. cars. Nestle and P&G are other major corporates who are increasing their rural focus. Dr Rajesh Shukla. M&M. twowheelers and consumer durables accounting for a significant part of his spending. skin creams and lotions. Philips. liberal loan-waivers and a growing middle class. LG.
by 2012. Currently estimated at US$ 17. Further. as per an NCAER report. According to a report jointly released by the Confederation of Indian Industry (CII) and Ernst & Young. the ‘lower middle income' group in rural areas has nearly doubled. Further. The overall number of rural households is estimated to grow to 153 million in 2009-10 from 135 million in 2001-02. FMCG The FMCG sector has been registering double-digit growth in sales since the last couple of years. it is the one of the most promising sectors in India.83 million in the quarter-ending June 2008. The mobile boom has now also hit rural India.The growing consumption is the result of a growing middle class base in these areas.44 billion. compared to urban areas.72 per cent to touch 70. around 100 million (40 per cent) are expected to be from rural areas. . of the next 250 million Indian wireless users. Mobile phones in rural India increased by around 13. This major consumer base accounts for 41 per cent of the Indian middle class having access to 58 per cent of the total disposable income. rural India will have an over 60 per cent share of the total telecom subscriber base.
companies like ITC. Godrej Agrovet and DCM Shriram among others are growing rapidly in rural areas and. IDFC SSKI Securities has predicted a revenue growth of 18 per cent in the third quarter of 2008-09. "The overall FMCG market. have recorded robust growth rates. the Indian FMCG industry is likely see robust 15 per cent growth in the third quarter of 200809 against the corresponding period last year. In rural areas. My expectation is that the industry will register a 25 per cent sales growth in Q3 2008-09." "I think the Indian FMCG industry's sales growth should be good in Q3. may outdo their urban counterparts like Reliance Fresh and the Future Group-owned Food Bazaar chain. compared to 14. . Chairman of the Godrej Group. According to a FMCG sectoral report by Angel Broking. Tremendous growth is being recorded by value-added and aspirational products.In spite of the economic slowdown. said." he further said. Adi Godrej. Further. companies will be seeing profits in terms of margin expansions due to the correction in global commodity prices. both urban and rural. an analyst firm.5 per cent during 2007-08. These products are estimated to propel the FMCG industry to grow by 16 per cent (in sales) during 2008-09. in fact.
Significantly. they have acquired about 15 companies and have spread their presence in more than a dozen countries. companies like Coca Cola India. Emami and Dabur. The luxury products market in . In the past three years. the concept of three core meals fast vanishing. and Dabur are venturing into this market and are bringing out new product packaging for the segment. With changing lifestyles. the market for luxury brands is growing annually at a compound average growth rate (CAGR) of about 35 per cent. the manufacture of luxury items in India can grow to US$ 500 million. ITC. four major acquisitions were made by three firms—Godrej Consumer Products (GCPL). which is emerging as a new section in the FMCG sector. India is set to become a manufacturing hub for global luxury brands over the next four to five years. The report stated that with the core strengths in India's manufacturing sector.Another promising trend is the growth of 'out-of-home consumption'. According to a FICCI-Yes Bank report. Luxury Products With the rapidly increasing number of millionaires in India. In 2008. several Indian FMCG companies have also been aggressively exploring global markets through both acquisitions and alliances.
7.India was estimated in excess of US$ 500 million and is likely to grow at a CAGR of 28 per cent to reach US$ 1. The market is likely to further grow to 10. greater product awareness and affordable pricing have been instrumental in changing the pattern and amount of consumer expenditure leading to robust growth of consumer durables industry. Industry experts believe that the top-end consumer electronics segment in India is growing by 8-10 per cent annually. . From 5.2 billion by 2010. The market is expected to double by 2015.000 units in 2006. BMW and Audi are expecting improved sale figures in 2009.5 billion. Consumer Durables A combination of changing lifestyles. with consumers choosing to buy Indian made models by foreign car makers. Global brands like Louis Vuitton and Frette are planning to set up their manufacturing base in India. Leading luxury car makers like Mercedes-Benz India. touching US$ 2.000 units by 2010. higher disposable income. Car imports fell in 2008.500 luxury cars were sold in 2008.
Similarly. four-door and six-door refrigerators) from our US-based factory. Korean major Samsung is planning to launch LCD-led live emitting diode (LED) TVs at US$ 1433. LG. LG Electronics India is also planning to introduce air conditioners with new technology compressors and revamped designs. and Blu-ray technology home theatres and cameras in 2009. 92 per cent the CEOs surveyed were expecting sales to increase by 10 per cent during 2008-09. Besides. A flurry of hi-technology durables are expected to be introduced in the US$ 4. Haier Appliances India. Haier and Videocon are among companies planning new product launches in the coming months. Samsung. along with air conditioners with technological compressors and new designs." Videocon Industries will also launch high-end LCD TVs and plasma TVs. . "For the coming season. Director and CEO . we will also launch ACs with a new look and feel. we plan to import 'dual-tech' larger capacity (two-door. said.According to a snap poll carried out by the Confederation of Indian Industry (CII). Pranay Dhabhai.09 billion Indian durables market by March-April in 2009.
. Whirlpool is targeting a 22 per cent share of the US$ 430. while sales in the utility-vehicle segment rose by 31 per cent.Shantanu Das Gupta. sales rose by more than 17 per cent in the car segment.23 million washing machine market in India by the end of 2009 and is launching a range of new products with an investment of US$ 4 million for the same. across all category. air conditioners and microwaves where we are not as strongly positioned as in the refrigerator category. During April 2008. Whirlpool of India Limited (WIL) revealed. Vice President-marketing. compared to the corresponding month last year." "In the product development area the investment in India. the fourth largest commercial vehicle market. India is the second largest two-wheeler market in the world. Automobiles Presently. the 11th largest passenger car market and is expected to be the third largest automobile market by 2030. will be in the region of US$ 25-30 million in the next two years." added Dasgupta. "We plan to increase WIL's market share across the four categories of home appliances to 20 per cent plus by 2010 with more emphasis on washing machines.
In January 2009. luxury cars have posted high double digit growth in India in 2008. big auto companies registered positive car sales. even with the global auto industry being affected by the economic slowdown. Its last biggest dispatch of 65. . Maruti's dispatches to domestic dealers increased 5.6 per cent to 67. Even Hero Honda registered double digit growth in its volume shipment. car sales from manufacturers to dealers were expected to stage a recovery in January 2009. clearing the stocks piled up at dealerships. reviving hopes of an upturn in demand. its highest ever. after dealers took on new stocks after selling off a huge inventory pile-up during December 2008.216 cars took place way back in November 2007.005 units during the month. In the luxury segment. Even though the auto industry witnessed slowdown in more recent times. India's leading automaker registered a 20 per cent net sales growth for the June 2008 quarter and it also posted 12 per cent growth in volume terms. Maruti posted retail sales of 76.700 vehicles in December. Maruti Suzuki India achieved its highest-ever domestic and total sales in January this year.Maruti Suzuki.
Consumer Electronics The rapidly growing consumer electronics market in India has spurred many leading manufacturers of the world to get into partnerships with local companies to set up shop in the country. Skoda Auto and Volkswagen.625 cars (46 per cent growth). .60 million second plant at Bidadi. Indian auto majors. Hong Kong's surface mount technology (SMT) company WKK. Bajaj Auto. Daimler Motors. Describing India as one of the promising emerging markets Toyota Motor Corporation is going ahead with its US$ 655.500 units in 2008 against an estimated 2. 240 trucks (53 per cent growth) and 16 bus chassis. Similarly Audi India registered a growth of 201 per cent at 1.050 units in 2008 against 349 units in 2007. BMW India sold over 2. Singapore's Mydata (SMT) and USA's Indium (solder paste). Tata Motors and M&M are already offering loans through their own finance subsidiaries. Global auto makers are still bullish on India. are entering the US$ 4.50 billion auto loan market in the country.000 units. To drive sales.Mercedes Benz India has registered robust growth in 2008 with 3. near Bangalore. Companies planning to enter India include Japanese testing firm Saki.
an electronics market research firm. has projected that the Indian audio/video consumer electronics industry will grow to US$ 6.59 billion by 2011. . growing at a CAGR of around 10 per cent.Supply.
Online shopping has opened up new avenues and the survey found that books (46 per cent). with credit cards being the preferred mode of payment.37 million modular kitchen segment is seeing a growth of 40 per cent. the US$ 307. According to a global online survey by A C Nielsen. As broadband connectivity grows in India according to the Telecom Regulatory Authority of India (TRAI) India had 4. electronic equipments (29 per cent). Companies like Philips Consumer Lifestyle and Bajaj Lighting are looking at continued investments in the segment. The energy-efficient lighting solutions market witnessed 30 per cent growth in the year 2008.73 million broadband internet connections at the end of August 2008 online purchasing is growing. Likewise. Amongst many other companies.GROWTH OF NICHE SEGMENTS AND ECOMMERCE Companies offering niche services within lighting for example energy-efficient lighting and interior design are witnessing growth and are looking at fresh investments. tours and hotel reservations (24 per . a staggering 78 per cent of Indians (who access internet) make purchases online. is also planning to foray into the market and launch a new kitchens division. a leading tile manufacturer. H&R Johnson.
Indian consumers are also becoming more aware about the finer nuances of nutritional panels and labels. According to the Nielsen global online consumer survey. Indians have emerged as the third biggest credit card users globally for online purchases.cent). Consumer Confidence The Indian consumer remains one of the most upbeat globally. a remarkable 30 points above the global average of 84. India tops in the Asia-Pacific region in its . With 59 per cent. a market research company revealed that Indians are "the most optimistic lot globally who think that their country will be out of the economic recession in the next twelve months. videos/DVDs/games (23 per cent). and music (20 per cent) are some of the categories in which Indians made online purchases. conducted by Nielsen. In fact. clothing/accessories/shoes (21 per cent). India was at the top of the survey with 114 points. carried out by Nielsen in April 2008. Furthermore. and 51 per cent of the Indians surveyed believed that they would be out of the recession in 12 months. The Nielsen Global Consumer Confidence study. around 59 per cent Indians said that they noticed packaged goods' labels containing nutritional information." stated the biannual report. event tickets (23 per cent).
They don’t see their company or their industry as high tech. . This is why I have been fascinated with the success Christine Whittemore of Solutia has had with her personal business blog. Take carpeting for instance. Ms. or particularly cutting edge in short. Flooring the Consumer. and not promoted as high-touch – even though carpet engages the senses more than many home products.” Far from being cutting edge in retailing or marketing. The online consumer survey was carried out in 51 markets from Europe. “It’s not high-tech. White more agrees the carpet marketing environment is traditional. Asia-Pacific. Using social media in a traditional industry: Flooring the Consumer Blog A lot of businesses still struggle with how to use social media effectively to communicate with their end consumers. North America and West Asia. and have been keen to ask her a few questions.understanding of nutritional labels. or sexy. I can't remember when I have seen this industry featured in a marketing magazine. Manufacturers and wholesalers of consumer durables might well consider themselves in this situation. they just don’t see the fit of social media for their situation.
price is often a more dominant feature than fashion or design in messaging. These are seriously good statistics for a blog of this type. So carpeting is a market few would see as ripe territory for new media. and is now ranked as #108 on the Ad Age top marketing blogs. the blog is achieving business results. Below. Whittemore is the Director for InStore Innovation for the Wear-Dated carpet fiber division of Solutia. Ms. a $3. .8 Billion company with 6000 employees. More importantly. Her work involves training. and has over 800 subscribers. as you'll see in the coming posts. Seriously good statistics Flooring the Consumer was launched in June 2006. authors of the Carpetology blog. Stay tuned as we find out more about bringing social media to the marketing of a carpet manufacturer. The same team "elf themselves" at the Office Max site. and thought leadership at retail for the flooring industry. The company manufactures nylon fibers that go into residential carpet. presentations.
After attending a Columbia Business School conference on marketing innovation. and she felt these had become “inefficient” as a communication tool in any event. Ms. there was minimal budget for a traditional newsletter.” In addition to this challenge.Born out of frustration with traditional marketing The blog was born out of Ms. Whittemore’s frustration with traditional marketing to achieve her business objectives. “I had been flirting with the notion of a blog actively for 9 months prior to taking that step because I was so frustrated with traditional marketing. Whittemore says she realized “most of . had things to share with my audience of flooring retailers and retail salespeople. and couldn’t get published fast enough and frequently enough by the trade press.
is a community-oriented. and these are the ones that Flooring the Consumer reaches. While the consumers are online. There are retailers keen to reinvent the experience. is a consumer blog about all things carpet. The blogs each have a distinct audience.” She took her content ideas and her sense of urgency to work. . but were also cutting edge marketers… and true innovators. and that keep the author motivated.the people in the room not only blogged. and Facebook activity. not just carpeting There are now three blogs as well as a Twitter feed. Carpetology. Flooring the Consumer is targeted to the trade. The Smoke Rise Blog. The third blog. launched in December 2007. About consumers and retailing. and addresses topics such as marketing to women. not all the retailers are. and the blog was born. more personal blog. the retail experience and consumers in general. however.
the industry is targeting a growth of 2.5 million. 12 THE consumer electronics and durables industry is now tackling the issue of uneven growth experienced within the four regions of the country. For refrigerators. the industry is targeting a growth of 3. The colour television category is expected to clock sales of 9.75 lakh units. up from eight million units in 2003. up from 2. Feb 13. The industry has initiated a debate to address stagnation and region-specific problems. In the microwave oven category.4 million units during the previous year.5 million units in 2004. while for washing machines the industry is hoping to record a sale of 1. up from 1. . 2004 Richa Mishra New Delhi . The market condition is largely determined by demographic behaviour and differential tax regimes across States. up from 3.4 lakh units in the previous year. Feb.CONSUMER DURABLE MAJORS BID TO FIX REGION-SPECIFIC PROBLEMS Hindu business line Friday.5 million units.85 million units. a Consumer Electronics & TV Manufacturers Association (CETMA) official said.
In the CTV category. . the Flat TV category is expected to grow from 12-13 per cent to 20 per cent. West zone experienced a growth of 12 per cent as against a 17 per cent growth experienced by the North. "To examine the problems faced by the industry in each region and the factors that can push growth. the official said. we have started brainstorming sessions among players. The reasons for this includes the fact that products are more expensive in the West zone due to higher sales tax. The first of such sessions was held in Chennai last December followed by another in Mumbai this January. "West zone has been experiencing marginal negative growth compared with the North. players need to address some macro issues." the CETMA official told Business Line.The flat TV category and the frost-free refrigerator segment are where the industry expects to maximise growth. To attain these figures. the West zone recorded marginal growth in washing machines and less than 20 per cent in microwave ovens. Elaborating on some region-specific problems. industry representatives said. In fact." When compared with the growth of around 10 per cent in the Northern market for washing machines and over 25 per cent in the microwave oven category.
Earlier. as trade is an interface between industry and consumer. however. . The industry has been trying to address these issues and logistical problems. the issue of capacity fragmentation due to exemptions enjoyed by units set up in Uttaranchal and Himachal Pradesh is a concern. leading to economies of scale and quality being affected. It is necessary to maintain a healthy relationship between industry and trade. The lowest penetration.In the North zone. companies used to have one plant manufacturing more than a lakh units but due to these sops. the CETMA official said. is experienced in the East. they have set up more than one plant. Consumer electronics (CTVs and ACs) are not a priority when compared with the home appliances category in the Southern market.
This is true even of a newborn baby. Socialization has no end. Even though it is more intense in infancy and childhood. learning and adjusting to new situations is a part of the whole lifecycle. The child is active in this process. as e.g. Boys are socialized in different ways than girls. the school. In modern society we even have to go through periods of re-socialization in some respects. it is not the same for every one. There are also a lot of competing influences already in a child’s primary socialization. and so on. Although socialization is a process everyone has to go through. The same differences could be discerned between ethnic communities. socialization could briefly be described as the process whereby an infant gradually becomes a member of society and acquires the skills that are required to function in the culture he or she is born into. Early on the family – the primary or main socializing agency has to compete with other agencies of socialization. . which has biological needs or demands which affect those taking care of it. Families from different social classes socialize their children in different ways. peer-groups or the media.CONSUMER SOCIALIZATION: HOW DO CHILDREN BECOME CONSUMERS To begin with.
As I said earlier socialization is an unfinished process. 410). we are not born as consumers. Or. true. put in other words. . The real problem starts when we ask what kind of knowledge or skills it is that is required in this respect. consumption presupposes at least knowledge and skills. knowledge about the act of consumption.Consumer socialization could be defined in different ways. And at least one thing is certain: although we are born with needs. but if it does we can easily conclude that there is no end to this2process. However. if this is what is required no one will ever become fully socialized as a consumer. include all of those things. Irrespective of the fact that consumer socialization continues the whole life process. And this is. it is something we become. prizes or the legal rights of consumers? It could. of course.g. it has to start and develop from a certain point in childhood. attitudes and skills relevant to their functioning in the marketplace” (Lowery & Fleur 1988. of course. been defined as “the developmental process by which young people acquire the knowledge. Is it e. Certainly. p. This holds true for consumer socialization as well. This seems to be a reasonable definition on an abstract level. In advertising research it has e.g. this is not a major problem when it comes to define or understand consumer socialization from a child’s perspective. commodities.
it will not except in rare cases be part of an institutionalized or consciously pedagogical process guided by some sort of curriculum. Hence. That is. In the social and cultural settings in which a child is born and comes to maturity. This could e. is born into a social context where consumption plays an important role. at least in present days societies. And if we look to later stages in an . consumer socialization will furthermore have an informal character.g.The question is then: when does this socialization start? Obviously there is no clear point in the development of a child that can be depicted as the “start” or beginning of its consumer socialization. consumer socialization in many cases presupposes and is built upon prior or other forms of socialization. The same is true if we consider the ability that has been called media literacy. but nevertheless is something that is required of any consumer in the present society. be illustrated by the ability to read. The first is that every child. Before the child could make sense of TV ads he or she must have acquired some basic skills in reading and decoding media texts. which is scarcely considered as a trait in consumer socialization. The second is that it is in many cases impossible to distinguish clearly between the knowledge and skills that children require to function as consumers from other forms of abilities. There are two main reasons for this.
Bjurstrom 1997. economic as well as social and cultural. This understanding of the influence of different types of family background is common knowledge. In this way. al. Jorgensen et. and presumably this is one factor which explains why the age at which children themselves begin to purchase consumer goods varies. But nevertheless this transition from dependent to independent consumption marks an important step in the consumer socialization of any child in contemporary societies. attitudes and practices from infancy to adolescence and even beyond those lifestages. 1992. social class.individual’s life formal socialization in the form of some kind of consumer schooling is still rare in most countries. education and so forth.g. Therefore. differences in economic.g. p. . 345ff). Probably those differences also affect when children begin their careers as independent consumers. income. as e. social and cultural capital among families affects a child’s consumer values. The conditions for letting children consume on their own are of course better in prosperous than in poor families. correlate with children’s and youth’s views on consumption and advertising (see e. Thus the first informal patterns which affects a child’s consumer socialization in contemporary societies will be determined by a complex set of factors. it comes as no surprise that indicators of family background.
This process even accelerated dramatically in e. To become a fully independent or sovereign consumer is still and in some respects even more so than before – a part of being adult. p. this does not mean that they do not have their own money to spend. means that the disposable income often is less as well as the possibilities to raise it compared to having a job. . Only that this money to a larger extent than before comes from loans to study and other forms of subsidiary funds. Even if children are free to spend their pocket money on whatever they choose at an early age they are still dependent on their parents to do so until 3 their late teenage years in most contemporary societies. when the rate of young people aged 16 to 19 years in the labor force decreased to about 25 percent and the rate of those aged 20 to 24 to about 60 percent (Ungdomsstyrelsen 1997. Although the decline seems to have stabilized – and even reversed slightly – in the last three-four years it still shows that most young people spend their time studying until they reach the age of twenty or beyond. 21). Of course. And this.Until the age however where someone start to earn his or her own money this independence is still some kind of semi-dependence. in turn.g. The main reason for this is that young people’s entrance into the labor market successively has been postponed to higher ages. Sweden in the 1990s.
which marks an interruption in people’s everyday life. basic food products. Overall consumption is an activity filled with pleasure as well as discomfort. pointless to discuss consumer socialization or any impact of consumption without some notion of what it means to consume. However. Certainly.So.g. one could conclude that most young people become autonomous consumers at a relatively late age today. 1998). any attempt to make a clear distinction between productive and consumptive activities is fraught with difficulty. of course. but can also be something extraordinary. But what is consumption? It is. but most of their daily shopping does not follow this model (see Miller 1998 and Miller et al. as e. And in this sense there is still a strong relationship between production and consumption in contemporary post-industrial societies. Ever since the nineteenth century consumption has primarily been seen as an expression of hedonism or a pleasurable leisure activity. people shop for fun. The purchase of common goods. . Consumption is often a dull everyday activity. which has contributed to disguise the fact that it is often experienced as a kind of labor in people’s everyday life. must rather be seen as a part of the everyday labor that transcends the logic of market exchange.
Nevertheless. Although this is far from an exhaustive definition of consumption. In the Swedish language this is even confirmed by the word handla. 2000. which is the most commonly used word for “purchase” or “buy”. al. use and disposal of goods or services (Bjurström et.Consumption According to the Concise Oxford Dictionary the word “consumption” refers to the “purchase and use of goods”. it nevertheless points to the fact that it is an activity or practice. This meaning is still present. but also means to “act”. Window-shopping even confirms that this process can become an end in itself. But far from all selection processes result in purchases. The purchase not only confirms that the customers have made their choice. p. 2001). purchase. However. According to this definition the purchase is the moment that fulfils the consumption process. Seen as a modern practice. al. etymologically the word “consumption” is derived from Latin’s consu´mere. but also transforms them into the rightful owners and users of the goods chosen with an implicit responsibility for the future disposal of 4 it. 42ff and Becker et. which means to “devour” something. consumption covers a wide range of acts or moments which distinctively could be described as the selection. even if you only consume something with your eyes . although the word “consumption” covers a wider semantic field in modern languages.
g. And the moment of use may vary in time from seconds to years and in some cases even last for several generations. a flea-market or a second-hand shop.g. each of the fou of consumption contains a variety of possible acts. in a shop or from the advice of a good friend. A hamburger is literally consumed immediately. You may e. as e. select the goods from a TV ad. namely as a gift. The latter case also illustrates one way to dispose an item. Most probably though this re-introduction will be on a different market than where it was originally introduced. while a TV set or a car is used for years and objects like furniture or jewelry may be passed over from generation to generation. The realization of a commodity’s use value may. an auction. Actually. But items that . You may pay for it in cash. traded in exchange for other goods.and do not complete the whole consumption process it could still be seen as a part of it. sold or given away as gifts. Actually. of course. be very different depending on what kind of goods you have bought. there seems to be four main types of disposal of consumer goods: either they may be destroyed. on account or by credit card. If an item used for a while is sold it once again becomes a commodity and is re-introduced into the logic of market exchange.
But they still live on.are traded in exchange for other objects or given away as gifts will break with the logic of market exchange. not least because I believe that such a perspective prevents a more thoroughly understanding of the process of consumer socialization. By this I do not mean to deny the importance of such traits. Barter exchange is a quite dominant feature of the so-called black or gray market and gifts are constantly given and received in contemporary societies. presumption that the end result of this process should be the creation of homo economicus. Historically both precede the rise of modern market exchange. Foremost because a pure economic understanding often rests on the implicit. calculating and wellinformed consumer who operates in the market economy. This also means that I will break with a strictly economic understanding of consumption. the role played by the gift economy is certainly one of them. but only to emphasize that there are aspects of consumer socialization that are not visible to the eye of homo economicus. the rational. but nevertheless normative. . Here I will argue that gift exchange plays a central role in consumer socialization. The former follows the logic of bartering and the latter the logic of gift exchange. Both barter and gifts have the character of pre-modern or even archaic exchange forms.
abolish the archaic forms of gift exchange. and is still a practice that follows a different economic. The main reason for this is that commodity exchange is universalistic and thus more autonomous in relation to social and cultural contexts than gift exchange. they are also as Mauss (1990 p. not least . money replaced the rules governing an ongoing circulation of gifts and thereby created the prerequisite for the rise of a strictly economic market. At least it dates back to 1924 when Marcel Mauss’ (1990) well-known and influential study Essai sur le don (Essay on the gift) was published. Compared to the logic of giving and receiving gifts the logic of commodity exchange is quite simple.Gift and commodity economy It is hardly a new discovery that gifts follows a different logic of exchange than commodities. social and cultural logic than the exchange of commodities. Gift-giving has remained a common practice even in industrial and post-industrial 5 societies. But the rules do not only vary. and therefore vary considerably from context to context. The forms and rules of the latter are always deeply socially and culturally embedded. By focusing on gift-giving practices in archaic societies Mauss came to the conclusion that the market did not arise with the invention of money. however. Rather. The successive rise of an economic market did not. 13ff) was the first one to point out partly contingent and unconscious to those who follow them.
appreciation. . devotion. commodity economy on interest in a narrow economic sense. sacrifice. but give rise to conjoined feelings of pleasure and displeasure or comfort and discomfort. In expressing feelings like these the gift economy contradicts the values of the commodity economy. and so forth. This also reflects that in contrast to commodities the exchange of gifts is based on and confirms interpersonal relationships which can be described in terms of complex feelings of love.when it concerns the obligation to return presents. In this way gifts and presents are not only a blessing. Gift economy is based on disinterestedness. which are based on the exchange of equivalent economic values and the maximization of economic profit.
Low awareness of consumer electronics products in rural India. consumers want some guarantee for the product that they are buying. Presence of gray market in consumer electronics products. but continues till the end of guarantee period.CHALLENGES FACING THE CONSUMER ELECTRONICS INDUSTRY With the increase in price wars due to the entry of new players in the market and increase in manufacturing capacity by some original manufacturers. Most importantly. They want the product that is easy-to-handle. the profitability and margins of the companies are adversely affected. and availability of wide range of choices. The role of electronic companies doesn't end on the sale of the product. good in quality and low in price. . Companies need to increase focus on product differentiation to address various segmental specific needs. They look for the product that can be used for many years. especially in DVD player. Poor distribution network in semi-urban and rural areas. With the increase in access to Internet information. consumers have become quite smart. music players.
which could translate into a reduction of between 5 per cent and 10 per cent in prices at retail outlets.DUTY CUT TO SPUR CONSUMER DURABLES INDUSTRY LIKELY February 25. 2008 In a bid boost the consumer durables industry that has lately become a drag on the broader economy. Chidambaram has already asked the public sector banks to make available more credit for housing and consumer durables. tuner and other parts is adversely . alarmed by the economic slowdown in the second half of the current fiscal. from the coming budget. the Rs 35. Given this backdrop. The general consensus. particularly a contraction of 1. Chidambaram would announce cut duties. In fact. is that a moderate duty cut to 12 per cent could be in the offing. chances are that Finance Minister P. among others. however.3 per cent in the consumer durable industry during the April-December period. The industry is of the opinion that 10 per cent customs duty on critical inputs such as CPT. Industry bodies like the Consumer Electronics & Appliances Manufacturers Association have sought a cut in excise duty from 16 per cent to 8 per cent.000-crore consumer durables industry is expecting tax rationalisation.
Vivek Mishra.5 per cent. they want the customs duty on inputs to be placed at par with the customs duty on finished products.” said Ravinder Zutshi. a partner at Ernst & Young. copper and steel from 0-10 per cent at present to zero per cent. Manufacturers are seeking reduction of customs duty on basic raw materials such as plastic. while a similar duty on LCD and plasma panels is equal to import duty on finished TV sets. consumers are looking forward to better technology and as such there is great potential in India for telecom. “With the economy on a high and changing lifestyles. aluminum. the central sales tax (CST) rate could be reduced from 3 per cent to 2 per cent.5 per cent to 2 per cent. sales and marketing. Samsung India. “Manufacturing of LCD TVs will get a fillip if the customs duty on panels of LCD TVs is brought down to zero per cent. LG Electronics India. Deputy Managing Director. he said. A budget supporting these . According to V Ramachandran. and the peak import duty on raw materials from the current 7. expects a reduction in the customs duty rate for both consumer and non-consumer goods from the current 10 per cent to 7. In view of duty-free import of colour TV sets from Thailand.affecting it. Also. digital displays and information technology. director.
while the bottled water industry is looking for a reduction in excise duty from 16 per cent to 4 per cent . Meanwhile. the food processing industry is hoping for exemption from the existing central sales tax of 3 per cent. Likewise. the industry is hoping for the central value-added tax (CENVAT) on detergents is reduced to 8 per cent from 16 per cent at present. For instance. the fast-moving consumer goods (FMCG) industry is also looking for some tax reliefs from the budget.industries will act as a catalyst in increasing production of such high tech products”. in view of promoting cleanliness and hygiene.
values. For the individual it provides the skills and habits necessary for acting and participating within their society. For the society. values. and actions appropriate to individuals as members of a particular culture. For example if a child saw his/her mother expressing a discriminatory opinion about a minority group. language and symbols is the ‘means by which social and cultural continuity are attained Types Primary socialization Primary socialization occurs when a child learns the attitudes. attitudes. then that child may think this behavior is acceptable and could continue to have this opinion about minority groups. inducting all individual members into its moral norms.SOCIALIZATION The term socialization is used by sociologists. Secondary socialization Secondary socialization refers to the process of learning what is appropriate behavior as a member of a smaller . social roles. social psychologists and educationalists to refer to the process of learning one’s culture and how to live within it. motives.
and involves smaller changes than those occurring in primary socialization. This occurs throughout the human life cycle (Schaefer & Lamm. . entering a new profession. Resocialization can be an intense experience. relocating to a new environment or society. with the individual experiencing a sharp break with their past. 1992: 113). Developmental socialization Developmental socialization is the process of learning behavior in a social institution or developing your social skills.group within the larger society. Anticipatory socialization Anticipatory socialization refers to the processes of socialization in which a person "rehearses" for future positions. occupations. and needing to learn and be exposed to radically different norms and values. and social relationships. It is usually associated with teenagers and adults. An example might be the experience of a young man or woman leaving home to join the military. eg. Resocialization Resocialization refers to the process of discarding former behavior patterns and accepting new ones as part of a transition in one's life.
1. students in a college class).Agents of Socialization Agents of socialization are the people and groups that influence our self-concept. Work Place. 4.g.. determining one's attitudes toward religion and establishing career goals. Peer groups. 3. Education is the agency responsible for socializing groups of young people in particular skills and values in society. Peers refer to people who are roughly the same age and/or who share other social characteristics (e. Family is responsible for. . Education. among other things. emotions. The Mass Media. attitudes. and behavior. 5. 2. The Family. Other Agents: Religion. The State.
wrote about the importance of inculcating members of the US Coastguard with a set of values to do with responding to commands and acting in unison without question. Later scholars accused these theorists of socialization of not recognizing the importance of the mass media which. the mass media were regarded merely as sources of information and entertainment rather than moulders of personality. There was concern about the link between television and the education and socialization of children it continues today but when it came to adults. they were wrong to overlook the importance of mass media in continuing to transmit the culture to adult members of society. Johnson (1961). but they treated it as a form of specialized education.MEDIA AND SOCIALIZATION Theorists like Parsons and textbook writers like Ely Chinoy (1960) and Harry M. yet Parsons and others wrote of culture as something stable into which children needed to be introduced but . According to these scholars. They realized that socialization continued in adulthood. by the middle of the twentieth century were becoming more significant as a social force. Johnson (1961) recognized that socialization didn’t stop when childhood ended. In the middle of the twentieth century the pace of cultural change was accelerating. for example.
the appropriate patterns of emotional response and the modes of perception. the requisite skills and knowledge’ as Chinoy (1961: 75) put it.which adults could simply live within. Some sociologists and theorists of culture have recognized the power of mass communication as a socialization device. . An alternative view is that it is a learning process whereby we all learn how to behave in certain situations and the expectations which go with a given role or status in society. beliefs. As members of society we need to continually refresh our ‘repertoire of habits. Dennis McQuail recognizes the argument: The media can teach norms and values by way of symbolic reward and punishment for different kinds of behaviour as represented in the media. and values. Thus the media are continually offering pictures of life and models of behaviour in advance of actual experience.
ANALYSIS OF QUESTIONNAIRE Q1 If you were to buy a large electrical appliance such as a colour TV or dishwasher would you expect the manufacturer to provide a warranty? 90 80 70 60 50 40 30 20 10 0 Yes No Series1 Yes No 90 10 As it can be seen from the data above that 90% of the people look for warranty while buying any electrical appliance. . Since electrical appliances are subject to repairing customers look for guarantee as it provides them the satisfaction.
Q2 how long would you expect that warranty to be? Less than one year One year Two years 37 20 10 Three years Four years Five years 10 10 0 More than five years 5 Varies by manufacturer 2 Varies by retailer 6 Don’t know 0 .
.Ø Less than one Ø year One Ø Two year years Ø Three Ø Four years years Ø Five years Ø More than five Ø years Varies manuf Ø Varies by acture Customers also expect the guarantee provided to them to be long enough.
.Q 3Have you heard of extended warranties? Yes No 80 20 80 70 60 50 40 30 20 10 0 Ø Yes Ø No Series1 More than 80% of the people are aware of the extended warranties.
Q4 Extended warranties may be offered to people who buy electrical goods so the goods can be repaired free of charge beyond the period of the manufacturer’s basic guarantee. . The retailers occupied the top most position followed by the manufacturers. What types of company offer extended warranties? Manufacturers Retailers/shops Insurance companies Other answers (SPECIFY) Don’t know 40 45 5 0 10 Ø Don’t know 5 Ø Other answers (SPECIFY) 4 Ø Insurance companies 3 Ø Retailers/shops 2 Ø Manufacturers 1 0 20 40 60 Series1 A survey conducted also showed the major companies which offered the extended warranties.
. are there any differences between these types of warranties? Yes 1 No 2 10 15 Don’t know 3 75 Ø Yes 1 Ø No 2 Ø Don’t know 3 Not much people are aware about that extended warranties are backed by insurance products. As far as you know.Q 5 Extended warranties may include warranties backed by insurance and warranties that are service contracts.
Q 6 Which of these types of appliance do you think are most reliable is that will last the longest before needing repairs? Brown goods such as 40 colour TVs White goods such as 25 dishwashers Fridges or freezers 25 PCs or game consoles 10 Don’t know 0 .
45 40 35 30 25 20 15 10 5 0 Ø Brown Ø White Ø Fridges or Ø PCs or goods such goods such freezers 3 game as colour as consoles 4 TVs 1 dishwashers 2 Ø Don’t know 5 Series1 According to the survey on electrical appliance the tv lasts the longest. .
As it can be seen 45% of the people look for durability as compared to 35% who go for price.Q7 what all do you look when u go to buy an electrical appliance Price Durability Quality 35 45 20 Ø Price Ø Durability Ø Quality When customers go to buy a product they look mostly for durability of the appliance and later comes the price. .
. om . m un ic at io n sk ills Series1 on vi nc in g an dl in g Ø H Ø S ol vi ng Ø C .Q8 How can a salesperson affect electrical sales Convincing power 45 Handling pressure 23 Solving problems customer 17 Communication skills 15 50 40 30 20 10 0 po we r pr es su re cu st om Ø er C p.
Salesperson has always a major role to play in the sales of any product. Thus the sales person needs to be very effective and effiecient and also customer friendly. . communication skills and handling pressure that converts the decision into sales. It is convincing power.
Who take the decision whenever you go to take the consumer durable? Men Women 65 35 Ø Men Ø Women It is generally the men who influence the decision of purchasing a product. .Q9.
which are looked upon while buying a product. What is the most important factor in consumer durable? Price Quality Service Durability 15 35 25 25 35 30 25 20 15 10 5 0 Ø Price Ø Quality Ø Serv ice Ø Durability Series1 There are various parameters. .Q10. But the quality attains the highest place followed by the service and price.
It is convincing power. Customers also expect the guarntee provided to them to be long enough There are various parameters which are looked upon while buying a product. Salesperson has always a major role to play in the sales of any product. But the quality attains the highest place followed by the service and price It is generally the men who influence the decision of purchasing a product.CONCLUSION As it can be seen from the data above that 90% of the people look for guarantee while buying any electrical appliance. As it . Thus the sales person needs to be very effective and effiecient and also customer friendly. When customers go to buy a product they look mostly for durability of the appliance and later comes the price. Since electrical appliances are subject to repairing customers look for guarantee as it provides them the satisfaction. communication skills and handling pressure that converts the decision into sales.
consumers have become quite smart. They look for the product that can be used for many years. According to the survey on electrical appliance the tv lasts the longest. The role of . Not much people are aware about that extended warranties are backed by insurance products.5 billions currently. The consumer durables market in India is valued at US $ 4. Most importantly. More than 80% of the people are aware of the extended warranties. good in quality and low in price.2 millions in 2006. microwave ovens and air conditioners registered a growth of about 25%. In 2006. consumers want some guarantee for the product that they are buying. Frost-free refrigerators have registered significant growth as many urban families are replacing their old refrigerators. Refrigerator sales amounted to 4. and availability of wide range of choices.can be seen 45% of the people look for durability as compared to 35% who go for price. whereas the production of the refrigerators went up by 17% as compared to the preceding year With the increase in access to Internet information. They want the product that is easy-to-handle.
electronic companies doesn't end on the sale of the product, but continues till the end of guarantee period. Highly involved customers tend to process product information at deeper levels of understanding than the ones with low
involvement. For example educated parents in urban areas are highly involved in baby food purchase decisions than rural uneducated parents. They also retain this information for long time. In this case marketers need to provide information cues to help the consumers to retrieve information from memory. But when the target is low involvement consumers, marketers should make the necessary information as accessible as possible at the time of selection and buying of the product.
www.pondiuni.org/DDE/consumer%20Behaviour.pdf http://www.abcjmp.com/jump2/? affiliate=nhost&subid=2733&terms=socialisation %20process%20in%20consumer%20durable%20industry http://www.naukrihub.com/india/consumerdurables/overview/classification/electronics/challenges/
Questionnaire Q1 If you were to buy a large electrical appliance such as a colour TV or dishwasher would you expect the manufacturer to provide a guarantee? Yes No
Q2 And how long would you expect that guarantee to be? Less than one year One year Two years Three years Four years Five years More than five years Varies by manufacturer Varies by retailer Don’t know
Q 3Have you heard of extended warranties? Yes No
Q4 Extended warranties may be offered to people who buy electrical goods so the goods can be repaired free of charge beyond the period of the manufacturer’s basic guarantee. What types of company offer extended warranties? Manufacturers 1 Retailers/shops 2 Insurance companies 3 Other answers (SPECIFY) 4 Don’t know 5
Q 5 Extended warranties may include warranties backed by insurance and warranties that are service contracts. As far as you know, are there any differences between these types of
warranties? Yes 1 No 2 Don’t know 3
Q 6 Which of these types of appliance do you think are most reliable ie that will last the longest before needing repairs? Brown goods such as colour TVs 1 White goods such as dishwashers 2 Fridges or freezers 3 PCs or game consoles 4 Don’t know 5 Q7 What all do you look when u go to buy an electrical appliance Price Durability Quality Q8 How can a salesperson affect electrical sales Convincing power Handling pressure Solving customer problems Communication skills Q9 who take the decision whenever u go to purchase a consumer durable products Men .
Women Q10 what is the most important factor in consumer durables Price Quality Service Durability .
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