Executive Report

Chapter 01

Introduction

As a communication and information media printing has ruled the world for centuries and
it has been unbeaten industry even though so many digital and high technology products
have arrived to the world as pure substitutions to this printed documents. The area that
covered by printing has spread from a paper of a book to the huge building rapping, from
body printing to huge ships and trains. So today world printing market print more than 52
trillion square foots of printing annually and out of them more that 47.5 trillion of them
are on large format printing sector. Only 4.5 trillion of prints are place to office document
printing. So it is obvious that the large format printing industry is highly used throughout
the world even though most of the countries today have digitalized most of their task.

With the complexity of the markets and the competitiveness of products with the
globalization, all organization are influencing their customers buy benefits rather than
selling the product itself. To sell the benefits to the customer over other competitors with
a competitive advantage they have to make an additional value to their products.
Packaging making information available, make attractiveness are the key options that use
in order to make a value added product and here printing playing a wider role in
advertising.

But in other hand with this printing industry there are some disadvantages to the
environment as mainly the paper productions and the type of ink and other chemicals use
in this industry are directly effecting to increase the global warming. So with the concept
of carbon foot print most of countries have to stop or make limited their production based
on traditional printing technology and move to environment friendly printing technologies
in order to bring a value to the products while minimizing negative externalities to the
environment.

HP Latex Printing technology is 100% eco friendly printing system which has been
introduced to the world to overcome from negative externalities and currently using
throughout number of countries successfully.

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1.1 Research Topic

“Identify the factors affecting to the purchase decision of hp latex printers in Sri
Lanka”

1.2 The Background of the Problem

Today in marketing arena , advertising and promotions plays a vital role and to make
awareness, brand image, customers confident about the product and services it is highly
using even better than non other era. Different kind of Printing Medias, Electronic
Medias, Word of Mouth, and some Event Organizing have placed effectively for different
kind of product and services. Even though with the development and revolutions of the
television and computers video advertising has been playing a vital role in marketing, it is
proved that, still pictures are more effective in expressing an idea than online videos. So
even today printing market is continuing as an unbeaten industry throughout the world.

When it comes to the local printing industry in Sri Lankan market currently there are
more than 4000 printing establishments in Sri Lanka and more than 40000 of
Employments who are directly involve in printing. The annual revenue of the industry is
around two billion and 98% of the printing market is controlled by the private sector.

In recent past in Sri Lankan printing market has increased the level of involvement of
their new investment to the new technological printing in a considerable manner. Instead
of using one or two color machines today most of printing service providers is using four
color or six color machines which lead to increase the efficiency of the production in
number of times than the past.

In parallel to the development in printing industry in Sri Lanka, other support services
also have taken place towards the growth while providing a considerable number of
employment opportunities to the country. Especially as the low labour cost in Sri Lanka
market, even most of foreign investors are investing in Sri Lankan printing market while
catering to the export production industry.

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1.3The Establishment of the Problem

With effectiveness and the economic value of Printing Medias over other advertizing
methods a lots of businesses have been used to move ahead with the printing tools. So to
get the maximum sale volumes which can provide long run benefits to the printing service
providers, they are going with market penetration pricing methods with the out comes that
they return to their clients.

So as a result with the number of print establishments and over supply capabilities of
those print service providers ,all of them have to make a huge battle with competitors to
win the customers. For that they have to follow mostly market penetration pricing
method where they can expect benefits in long run by increasing the volume and number
of regular client base and at present have to be satisfied with lower margins or some
times with a break even point value which is just sufficient for survival in the market.

Latex printer series with unrivaled versatility which is introduced by Hewlett-Packard

Company (HP) is a proper solution to the existing players and new arrivals of the Sri
Lanka printing market to make fresh and innovative offers to the clients and prospects at
a premium price by enjoying considerable margins and other benefits in the present.

But when we introduce such new technology to the Sri Lankan Market ,even with number
of benefits over competitor products(printing machines) ,still it is hard to convince them
to buy those HP Latex Printers. So it is researchable situation to find the reasons that why
people are not urging to shift to such beneficial products and waiting with traditional
technologies that they were using for number of years. Hence the problem centered in this
study is to the factors affecting to the purchase decision of HP Latex Printers in Sri Lanka

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1.4 The Significance of the Problem

At present in printing market most of print service providers are well experienced and
they have a perfect knowledge about the history of their printing market and also
consequences that can be taken place in future with the current situation in printing
market. Most of print service providers still have used to enjoy the lower margins or
sometimes lay at break even points as in nature most of Sri Lankan are face to the risk in
defensive mode of approach without taking offensive actions to avoid the risk that can be
taken place with the customers’ response toward this.

To overcome from the current situation what the print service providers can do is provide
a high quality of product where non other can offer with current printing machines that
they are using in their establishments.
HP Latex Printers are 100% eco friendly with the patent where non other can match with
it unrivaled versatility in high quality and where the coated, uncoated and also fabrics can
be printed on at higher resolution by providing minimum damage to the environment.

But as unawareness, unfamiliarity of this technology and lower environmental

consideration in Sri Lankan printing market stake holders is not willing to move to new
profitable solution like this due to most of times they represent the rick averters. As most
of print service providers are doubts about the future potentials in printing markets they
always want to wait and see how others response to a particular challenge.

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1.5 The Objectives of the Report

 To identify the factors effecting to the purchase intention of HP Latex Printers in Sri
Lanka.
As it is purely visible price of the HP Latex Printers are much higher compares
to other printers in Sri Lankan printing market .but price is not the only factor
that effect to the purchase intention of this kind of heavy high end products.
So it is an objective of this research to identify other factor effecting to
purchase intention of HP Latex Printer in Sri Lanka

 To explain in detail how those factors are effecting.

Other objective is to identify how each of those factors plays their roles
towards the purchase intention and what are the reasons that those factors have
been much important in their roles.

 To explore the strategies to mitigate the effect of the identified factors.

As the HP Latex printers are eco friendly and much profitable to the printing
industry in Sri Lanka. So it is important to make some suggestions to mitigate
the negative effects of identified factors.

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1.6 The Approach to Data Collection and Analysis

1.6.1 Data collection

 Primary data:
Research approach is questionnaire. The data will be collecting through
distributing a questionnaire which is developed according to independent
variables that already have identified. In here the respondents are asked variety of
questions regarding the above for elements. Typically the questioning is
structured. But sometimes it may have to conduct few numbers of interviews to
gain some extra insights to the research and to add more value to the research
findings.

 Secondary data:
Organizational data bases, magazines, related articles, journals and the websites
will be used as the secondary data sources.

1.6.2 Data analysis

 Qualitative analysis:
With the questioner that provide to the interviewer and with the answers that they
are providing to each question in the questioner and Statistical Package for Social
Sciences (SPSS) software and MS Excel using it is able to analyze how those five
variables and in which level they are effecting to the purchase decision.

 Quantitative analysis:
Statistical Package for Social Sciences (SPSS) software and MS Excel are using
for data analysis. Descriptive statistics and mean value tables will generated by
SPSS to evaluate the demographic factors and to analyze the influencing factors
for the purchase decision for HP Latex Printers. Testing hypothesis will be
conducted to identify the relationship between each variable.
The data presentation is to be done by using tables, pie charts, bar charts where it
is necessary.

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1.7Limitations of the Study

 As the sample size is comparatively a minimum proportion of the population

sometimes it can provide a less accuracy in the outcome of the research. Because
some of interviewees will not provide most accurate data for some questions in
the questionnaire.

 Languages barriers is raised as the questioner is prepared in English and some of

interviewees may inconvenient to provide a proper answer themselves and need to
assist most of them to fill those questioners.

 As this is very uncommon situation for most of selecting interviewees, they might
be confused to provide their respond toward this.

 With the limitations in time management, only two provinces in the country are
selected (Western Province and Central Province) and that might leads to make a
poor judgment when it converts in to overall result of the population.

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1.8Outline of the Proposed Executive Report

As the core area of the research, it is focusing on identifying the factors effecting to the
purchase decision of HP Latex Printers in Sri Lanka with special reference to those who
are currently involve in large format printing in Sri Lanka. Five dependent variables are
identified and through this research it is target to explain in detail how those factors are
effecting and what are the strategies that can be implemented to mitigate the factors
which provide negative effects to the purchase decision of the population.
Chapter 01: Introduction
Outline of the report, Background of the problem, establishment of the problem,
significance of exploration of problem, objectives of the report, approach to data
collection and analysis, limitations of the research.

Chapter 02: Literature Review

The second chapter of this research report provides some theoretical background
regarding the research topic. At the final in this chapter it provided some existing
literature which related to purchases decisions and customers buying behaviors. This
theoretical background and review of literature will provide some additional assistant to
the research findings it will be convenience to carry out the research smoothly.

Chapter 03: Study Design

This chapter explains relevant concepts and conceptual frame work. And also it creates a
conceptual framework at which the research is basically carried on and it summarized the
whole research.

Chapter 04: Data Presentation and Analysis

This chapter explains the research methodology that is described in detail with population
and sample of the study, sample characteristics, sources of data, data presentation and data
analysis.

Chapter 05: Conclusion and Recommendations

The last chapter of this research report summarizes the whole research and thereby it deals
with research findings and making recommendations.

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Chapter 02

Literature Review

2.1 Black box model

According to in “Marketing” by Richard L. SandhusenEmphases that the interaction of

stimuli, consumer characteristics, decision process and consumer responses. According to
this model he says that both environmental factors (external and internal) and buyer’s
black box (buyer’s characteristics and decision process) are effecting to the buyers
respond toward the buying decision. In simply it says about the relationship between the
stimuli and the response of the customer towards it. While marketing stimulus are
intentionally planned by the companies environment stimulus are coming through the
social factors which are away from the control of the companies. Further in buyers black
box which consist with buyer characteristics and decision process which determine the
buyer’s response in a logical manner.

Table 01

According to this model marketing stimuli with is intentionally created by the market
consist of 4Ps which represent Product Price Place and Promotion while environmental
stimuli represent all the external uncontrollable factors of a organization which mainly
consist of Economic Technological Political Cultural Demographic and Natural
conditions. The common features of that stimulus are, all are visible to the outer world.

Buyers’ characteristics represent Attitudes Motivation Perception Personality Lifestyle

and Knowledge and most of them are not clearly visible to the outer world and it is hard

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to identify unless much experience on buys’ behaviors are not there. Even though in the
real world not all the purchase decisions are being taken in a logical manner, according to
this model the buys always follow a logical decision process

Buyer’s Decision Process

1. Problem Recognition
2. Information Search
3. Alternative Evaluation
4. Purchase Decision
5. Post-Purchase Behavior

By going though this Decision Process, Buy’s may response in Different manners

1. Product Choice
2. Brand Choice
3. Dealer choice
4. Purchase Timing
5. Purchase Amount

When consider about HP Latex printers again not only the buyer characteristics also
external environment factors also make a considerable effects to the purchase decision.
Most of time respondents are consider about reference points that they can have in side
the Sri Lanka since this is a new technology at all. Most of them are waiting for some
other HP printer establishments are taken place and also they are highly concern bout
marketing stimuli when they are getting decision on such expensive products. How will it
be satisfied their requirements?

2.2 Buying Situation

According to the “Strategic Marketing” by Musadiq A. Sahaf there are three major
classes in buying situation namely, Extensive Decision Making, Limited Decision
Making, and Routine Respond behavior.

2.2.1 Extensive Decision Making

When someone is to get a purchasing decision about a product where high perceived risk,
high involvement, infrequent purchasing pattern, little or no product familiarity and

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limited choice criteria he is making extensive decision about the product or service. In
this type of products buyers have to evaluate so many areas when they are evaluated
alternative. Before move to alternatives they have to collect most reliable information
from competitors. Then it will make easy to accept or reject some of the alternatives at
the initial levels.

2.2.2 Limited Decision Making

When someone is going to get a purchasing decision about a product where moderate
perceived risk, moderate involvement is sufficient, occasionally purchasing pattern & low
product familiarity he is making a limited decision about the product or service. Here the
buys expect to have much information about unfamiliar brands and compare each other to
find the best alternative for them. So normally for this kind of purchase decisions, it will
take more time and collect more information on competitive brands. Buys are ready to
spend a significant amount of time, money and other resources to gather correct and
accurate information on this kind of products.

2.2.3 Routine Respond Behavior Decision

When someone is to get a purchase decision about a product where low perceived risk,
low involvement is sufficient, frequently purchasing product and where the product
familiarity is high he is making a routine respond behavior decision about the product or
service. Most of products which are in this category often reach loyal brands easily. So
marketers often do this by building strong brand loyalty and then buys are intentionally
move for this loyal products without much comparison with competitive products.

In according to the above classification by Musadiq A. Sahaf HP Latex Printers are lay
under the “Extensive Decision Making” products where high perceive risk with the
product and need more information about the product when they are getting their
purchase decisions. The customers rarely buy these kind of products and with a purpose
of use them for longer periods.

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2.3Organizational Buying Behavior

According to “Business Marketing Management: B2B” by Michael D. Hutt and Thomas

W. Speh there are four forces influencing organizational buying behavior. They are
namely, Environment force, Organizational force, Group force and Individual force.

2.3.1 Environment force

Economic outlook (both domestic and global economy), Pace of technological changers
and Global trade relations are the illustrative dimensions of environment force.

2.3.2 Organizational force

Organizational Goals, Objectives and strategies, organizational position of purchasing are

the illustrative dimensions of organizational force.

2.3.3 Group force

Roles, relative influences, and patterns of interaction of buying decision participants are
the illustrative dimensions of group force.

2.3.4 Individual force

Job Function, past experience, and buying motives of individual decision participants are
the illustrative dimensions of individual force.

Specially this kind of product are buying by cooperate customers .They consider about
profits, Return on Investment most probably prior to the price of the product .Even
though if some particular product is considerably low in price, if it does not generate a
proper solution for their business requirements they would not make decision to buy such
product for the sake of their business’s future. Most probably in this kind of businesses
there are numbers of gate keepers regarding such products. When introduce HP Latex
printers all above four forces are affecting to their purchase decision in different level of
weight. So it is some kind of complicated situation to convince about such product to all
the level of gate keepers in a hierarchy of a cooperate body.

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Chapter 03

Study Design

3.1Conceptual framework

Based on the proceeding literature and research question, the conceptual model for this
study is shown follows. It was conducted based on relationship of some variables.
Purchase decision of customers is the dependant variable and in the scenario, price of the
machine, quality of the printed out puts, benefits of the products ,respond of the ultimate
customer (client) are the independent variables that effect to the purchase Decision.

Independent Variables

Price

Quality

Dependant Variable
Benefits Customer Purchase
Decision

Information
availability

Ultimate customer’s
respond

Figure 01

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3.2 Hypotheses

•H0 There is a (-) relationship between price and purchase decision of HP Latex
Printers

•H1 There is a (+) relationship between price and purchase decision of HP Latex
Printers

•H0 There is a (-) relationship between quality and purchase decision of HP Latex
Printers

•H2 There is a (+) relationship between quality and purchase decision of HP Latex
Printers

•H0 There is a (-) relationship between benefits and purchase decision of HP Latex
Printers

•H3 There is a (+) relationship between benefits and purchase decision of HP Latex
Printers

H0 There is a (-) relationship between information availability and purchase decision

of HP Latex Printers

•H4 There is a (+) relationship between information availability and purchase decision
of HP Latex Printers

•H0 There is a (-) relationship between ultimate customer’s respond and purchase
decision of HP Latex Printers

•H5 There is a (+) relationship between ultimate customer’s respond and purchase
decision of HP Latex Printers

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3.3 Oparationalisation

Independent Dependent Scale Question Number

variable variables

What is the level of the business in terms Q-03

of volume of printing and how will it be
Price
able to manage their cash follows
towards this HP Latex Printers
Whether the respondents consider about Q-07
price or ROI or Price of consumables in
first priorities

The amount of investment that they are Q-08

willing to do at once
How they are going to finance on Q-09
machine and ability to do so.
Whether the respondents consider about Q-07
durability and after sale service of
Quality
machine providers.
Whether ultimate customers are highly Q-14
Customers’
concern about the quality of the out come
Purchase Will the ultimate customer pay more on Q-15
Decision Quality or reject the expensive out
comes.
What are the areas that they cater Q-02
currently and opportunities they have
with HP Latex Printers.
Benefits Whether they are able to replace HP Q-04
Latex Printers for their current printing
methods.
Whether they can replace an eco friendly Q-05
Benefits
solution of printing for their existing
technologies.
Whether HP Latex can Help them to Q-06

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reduce their initial and variable cost since

A/C is not a necessity with HP Latex
Printers.
Whether they have a strong customer Q-11
base who are loyal to the business( not
price sensitive)
Information How strong they are with information Q-01
availability with the time they have began the
business
Are they respondents aware about the Q-10
Customers’ HP Latex Technology.
Purchase Are the ultimate customer know about Q-12
Decision the quality of HP Latex , Technology Eco
friendliness
Ultimate Whether the ultimate customers rely on Q-13
customers’ the respondents at all or whether they
respond want to make their requirement done by
respondents
Whether they involving, with ideas, Q-14
physically and how strong they are.
Will they value the quality and pay more Q-15
if some thing offers with higher quality
than existing.

Table 02

3.4 Sample composition

3.4.1 Total Population

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The total population for this research is consisted with 300 of large format
printing machine used print service providers in Sri Lanka. These printer service
providers are spread throughout the country unevenly and most of them are
establish in western province and again a considerable number of printers are
located in Kandy District. Other than that there is no a considerable number of
print service providers have established in rest of areas.

3.4.2 Sample size

Total Sample size will be 30 respondents. 05 of them are selected from Central
Province and 25 of them are selected from Western Province

3.4.3 Sample technique

The technique use to select the sample is "purposive". It is a non-probability
sampling technique.

Chapter 04

Data Presentation and Analysis

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4.1 Data collection

By providing the questionnaire which is attached to this executive report primary data
were collected and when collecting data ,questions were place to them to get general idea
about how the response to each independent variable as mentioned in oparationalization
table. Then for analytical purpose data were gathered to an excel sheet in according to the
way that they have responded to each element.

The collected data with analytical purpose summarized as follow.

Most of information related to local printing industry was collected from magazines,
presentations and web site of Sri Lanka Association of Printers (SLAP) and literature
review gathered from mentioned books in reference page

The collected data with analytical purpose summarized as follow.

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4.2 Data Presentation

With gathered data from the respondents by providing the questionnaire and the
discussions had with them mainly the responds were identified in related to five
independent variables (Price, Quality, Benefits, Information, Availability, & Ultimate
Customer Respond) that defined previously. By using SPSS it could define as follow.

4.2.1. Price Vs Customers Purchase Decision

When compare to other competitive products in the market HP Latex printer are
expensive and all the HP Latex Printers are roughly above Rs 4.0 million. But Price of
accessories comparatively very lower than competitors.

The criteria mentioned in the tables are analyzed to find the relationship between price
and purchase decision of HP Latex Printers .

Volume of Annual printing output

Cumulative
Frequency Percent Valid Percent Percent

Valid Less than 30000 sf 13 43.3 43.3 43.3

30000-50000sf 10 33.3 33.3 76.7

50000-100000sf 5 16.7 16.7 93.3

More than 100000 2 6.7 6.7 100.0

Total 30 100.0 100.0

Table 04
According to the facts 43.3% of respondents are printing less that 30000 square foot
annually 33.3% are printing in between 30000-50000 square foot. Only 16.7% are
printing in between 50000-100000 and the respondents who print ore that 100000 square
foot are insignificant.
With the price of the latex printers it says there are very limited numbers of responds who
can get quick ROI by investing this kind of machine.

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Cumulative
Frequency Percent Valid Percent Percent

Valid Very Important 9 30.0 30.0 30.0

Important 21 70.0 70.0 100.0

Total 30 100.0 100.0

Table 05
All the respondents have given either 1st or 2nd choice to the main factor that they are
considering, when they buy a printer.30% of them are saying it is very important to
consider about price of the printer and 70% of respondents have chosen it as the 2 nd
option. But there is no anyone who says there is not important or even who place it as an
average factor.

Factors-Price of accessories

Frequency Percent Valid Percent Cumulative Percent

Valid Very Important 7 23.3 23.3 23.3

Average 8 26.7 26.7 50.0

Not so important 1 3.3 3.3 53.3

Not Important 14 46.7 46.7 100.0

Total 30 100.0 100.0

Table 06
Only 23.3% of respondents are saying it is very important to consider about the price of
the accessories and 46.7% are saying that it is not important to consider about the price of
accessories. This shows that most of people think about the initial cash out flow and they
are not high consider about the cash out flows that they have to be bearded during their
operations due to replacements and repairs of the machines.

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Factors-ROI period

Frequency Percent Valid Percent Cumulative Percent

Valid Very Important 14 46.7 46.7 46.7

Important 9 30.0 30.0 76.7

Not so important 7 23.3 23.3 100.0

Total 30 100.0 100.0

Table 07
Again more that 75% of the respondents are saying that it is important to consider about
ROI (return on investment) period and only 23.3% are willing to on investment where
returns are taken in long terms. According to the discussions had with the respondents it
is found that instability and fluctuations in economical environment are the most
explained reasons for being in short term investment and expectations of quick ROIs.

Maximum investment in a large format printer

Cumulative
Frequency Percent Valid Percent Percent

Valid Less than 1.5m 14 46.7 46.7 46.7

1.5m-3.0m 8 26.7 26.7 73.3

3.0m-5.0m 5 16.7 16.7 90.0

More than 5.0m 3 10.0 10.0 100.0

Total 30 100.0 100.0

Table 08

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Figure 02

Around 46.7% of respondents are willing to invest less than 1.5 million in large format
printing while 16.7% respondents willing to invest in between 3.0million to 5.00 million
and only the 10% of the respondents are willing to invest over 5 million in machines.
When this compares with the prices of HP Latex Machines, only around 15% of
respondents are in feasibility of investing in such printers.

Payment method

Cumulative
Frequency Percent Valid Percent Percent

Valid Out right 5 16.7 16.7 16.7

Bank loan 6 20.0 20.0 36.7

Installments 11 36.7 36.7 73.3

Leasing 8 26.7 26.7 100.0

Total 30 100.0 100.0

Table 09

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Even though more 45% of respondents are in feasibility of buying machine in less than
1.5 million in value, only 16.7 % of total respondents are prefer to make out right
payments(paying money at once they buy the machine) and 36.7% of respondent are
willing to select installment system where it usually depend on mutual understanding of
buyer and supplier. The lowest rating has gone for bank loans and the main reason that
bank loan has taken the lowest rate is the complexity and level of encouragement from
banks to take bank loans for this kind of value where banks have limited options at a
situation where the buyer of the machines are rejecting o make the loan payments .

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4.2.2 Quality Vs Customers Purchase Decision

When compare with competitive products, the out put and durability are much higher in
HP Latex Printers and specially eco friendliness is very specific and unrivaled quality
where non of competitors who provide printers can match as HP bears patent rights of the
Latex technology.

Factors-Durability

Cumulative
Frequency Percent Valid Percent Percent

Valid Not so important 15 50.0 50.0 50.0

Not Important 15 50.0 50.0 100.0

Total 30 100.0 100.0

Table 10
There is no one found among the respondents who value the durability of a printer in
higher preference .all value the durability even under the level of average expectation of
factors consider when buying a large format printer. According to statistics 50% of
respondents are saying durability is not so important while other are saying not important.

Factors-After sales service

Cumulative
Frequency Percent Valid Percent Percent

Valid Average 22 73.3 73.3 73.3

Not so important 8 26.7 26.7 100.0

Total 30 100.0 100.0

Table 11

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Figure 03

73.3% of respondents have ranked after sales services as an average factor to consider
when buy a large format printer and 26.7% have ranked it as a not so important.

So it is clear that the quality of the machine or quality of the out put, durability of the
machine are not highly considered factors for majority of respondents when they are
making purchase decision in this industry.

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4.2.3 Benefits Vs Customers Purchase Decision

HP Latex Printers can use even in an office environment as it does not generate any bad
smell or emission to the surroundings. And it can use in normal environment conditions and
Air-condition is not an essential factor where all other competitive products bear it as a
compulsory requirement. HP Latex Printers are can be used to print both indoor and
outdoor printing materials and this is supportive even with fabric printing. So this latex
technology can place to both digital printing and screen printing while he ability to print on
small jobs of offset without incurring a high initial cost while this generates maximum
economical solution to the digital printing.

Areas catered by the respondent

Cumulative
Frequency Percent Valid Percent Percent

Valid In door 6 20.0 20.0 20.0

Out door 12 40.0 40.0 60.0

Both 12 40.0 40.0 100.0

Total 30 100.0 100.0

Table 12
According to the fact only 20% are involve only in indoor printing and respondent who
are doing out door is around 80% and respondent who are doing both indoors and out
door printing. This is a great opportunity to HP Latex printer in the market as there is no
any other printing competitor who can provide indoor quality and outdoor durability at
once.

Printing methods-Digital

Cumulative
Frequency Percent Valid Percent Percent

Valid No 5 16.7 16.7 16.7

Yes 25 83.3 83.3 100.0

Total 30 100.0 100.0

Table 13
Out of 30 respondents 25 of them are currently involved in Digital printing while involve
in screen and offset printing in more or less. So it is more than 80% of large format
printing market and as the HP Latex printers are more effect n digital printing market it
has a significant size of market to cater with HP Latex technology.

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Technology-Solvent

Cumulative
Frequency Percent Valid Percent Percent

Valid No 10 33.3 33.3 33.3

Yes 20 66.7 66.7 100.0

Total 30 100.0 100.0

Table 14

In current market structure there is not significant level of eco friendly printers are using
and more than 65% of the respondents are using solvent in system which has very bad
effects to the health and the environment too. Only the 10% of respondent are currently
using latex ink system with their printing and 40% of respondents are using Eco-Solvent
printing machines.

Need for air conditioning

Cumulative
Frequency Percent Valid Percent Percent

Valid No 5 16.7 16.7 16.7

Yes 25 83.3 83.3 100.0

Total 30 100.0 100.0

Table 15

Figure 04

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More than 80% of respondent say that Air Condition is a compulsory factor for their
currently used printing technologies and only 16.7% say that it is not compulsory. By
doing a deep observation it can be realized that the respondents who do not want air
condition for their printer are already using Latex Printers or they have move free zones
in their printing factories for ventilation purpose. When consider about the respondent
who already have latex Printers with them, it could find that they do not have much
spaces in their locations where the printer is established, most of time they have manage
to fix the printers in their office areas. So these benefits have high influence for them to
get their purchase decisions.

4.2.4 Information Availability Vs Customers Purchase Decision

Especially latex printing technology is being highlighted with parallel to Green production
and eco friendliness of the product. Most of European countries who have negative
accounts in carbon foot print are strictly prohibited to use solvent base printer to their
productions and as a result they have used to move ahead with Latex technology where no
emission of negative externalities to the environment. Even in Sri Lanka up to certain level
green productions have promoted, but most of rules and regulations which have been put
are not bring to actions efficiently.

Since when the respondent has been in the industry

Cumulative
Frequency Percent Valid Percent Percent

Valid Before 1985 5 16.7 16.7 16.7

1986-1995 7 23.3 23.3 40.0

1996-2005 7 23.3 23.3 63.3

After 2006 11 36.7 36.7 100.0

Total 30 100.0 100.0

Table 16

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Awareness of the respondent about the latex printer

Cumulative
Frequency Percent Valid Percent Percent

Valid No 19 63.3 63.3 63.3

Yes 11 36.7 36.7 100.0

Total 30 100.0 100.0

Table 17
Only 36.7% of respondents are established in this printing industry after 2006 and more
than 60% are established printers before 2006. But the awareness of the latex technology
is having with only 36.7% of the respondents and most of respondent do not have any
idea about this technology. As a percentage who knows about this technology numbers of
respondents who already use these printers are in significant level. This means that less
reliable information leads to demotivate this kind of extensive purchases. If there is
sufficient information people intend to move for such product by them self.

Are the client's of the respondents aware of the printer

Cumulative
Frequency Percent Valid Percent Percent

Valid No 24 80.0 80.0 80.0

Yes 6 20.0 20.0 100.0

Total 30 100.0 100.0

Table 18

According to the research only 20% of the clients of respondents know about the Latex
technology and the rest is unaware about the technology. Unawareness of the clients
always avoids the push demand effects to the respondents which can be generated
through their requirements.
However with the current trend in the market there is a high demand for eco friendly
product. Even the government highly encourages such brands and most of organizations

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themselves involve in relating to their CSR Projects on behalf of the social and natural
environment.

Figure 05

Figure 06

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4.2.5 Ultimate Customer Respond Vs Customers Purchase Decision

In general when customers have more information over suppliers, they have high
bargaining power and when suppliers have more information over customers, they have
high bargaining power. If clients are not come with hard involvements about the outputs,
print suppliers are not trying to push them to high quality product since most of the print
production units (printers) are depend on volume of the production rather than increasing
profit margin by each unit of production.

Table 19

Table 20

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Figure 07

Figure 08

This is another main point where respondents highly consider about. The most of
respondents says that they do not want to go beyond the customer expectation since most
of customers are consider about the cheapest product rather than best products in quality.
According to the respondents most of their clients are not loyal and shift for competitor
where they can obtain slight change in cost of their product. If customers are loyal and
ready to pay for the quality there is more opportunity for the printers to move to high
quality production rather than struggling with volume production.

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Figure 09

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4.3 Analysis of the Hypotheses

Based on above analyzed data, acceptances and rejection of following hypotheses are
made.

4.3.1 Relationship between price and purchase decision of HP Latex Printers

The answers given by respondent to Question 03 /07(7.1, 7.4 and 7.5)/08/09 are
considered in relating to the price.

According to the analysis null hypothesis (H0)is accepted that means alternative
hypothesis (H1) is rejected. It defined that there is a negative relationship between price
of the HP Latex Printers and Purchased Decision

H0 There is a (-) relationship between price and purchase decision of HP Latex

Printers.

H1 There is a (+) relationship between price and purchase decision of HP Latex

Printers.

4.3.2 Relationship between quality and purchase decision of HP Latex Printers

The answers given by respondent to Question 07(7.2 and 7.3) 14/15 are considered in
relating to the quality.

According to the analysis null hypothesis (H0) is accepted that means alternative
hypothesis (H2) is rejected. It defined that there is a negative relationship between quality
of the HP Latex Printers and Purchased Decision

H0 There is a (-) relationship between quality and purchase decision of HP Latex

Printers

H2 There is a (+) relationship between quality and purchase decision of HP Latex

Printers

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4.3.3 Relationship between benefits and purchase decision of HP Latex Printers

The answers given by respondent to Question 02/04/05/06 /11 are considered in relating
to the benefits.

According to the analysis alternative hypothesis (H3)is accepted that means null
hypothesis (H0)is rejected. It defined that there is a positive relationship between benefits
of the HP Latex Printers and Purchased Decision

H0 There is a (-) relationship between benefits and purchase decision of HP Latex

Printers

H3 There is a (+) relationship between benefits and purchase decision of HP Latex

Printers

4.3.4 Relationship between information availability and purchase decision of HP

Latex Printers

The answers given by respondent to Question 01/10/12are considered in relating to the

information availability.

According to the analysis alternative hypothesis (H4) is accepted that means null
hypothesis (H0) is rejected. It defined that there is a positive relationship between
information availability of the HP Latex Printers and Purchased Decision

H0 There is a (-) relationship between information availability and purchase decision

of HP Latex Printers

H4 There is a (+) relationship between information availability and purchase decision

of HP Latex Printers

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4.3.5Relationship between ultimate customer’s respond and purchase decision of HP

Latex Printers

The answers given by respondent to Question 13/14/15 are considered in relating to the
ultimate customer’s respond

According to the analysis alternative hypothesis (H5) is accepted that means null
hypothesis (H0) is rejected. It defined that there is a positive relationship between
ultimate customer’s respond of the HP Latex Printers and Purchased Decision

H0 There is a (-) relationship between ultimate customer’s respond and purchase

decision of HP Latex Printers

H5 There is a (+) relationship between ultimate customer’s respond and purchase

decision of HP Latex Printers

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Chapter 05

Conclusion and Recommendations

5.1 Conclusion

Latex printing system is a new profitable printing technology in the world introduced by
HP Company who has the patent rights of this latex technology. Many of the countries in
the world highly use this new technology which leads the printing market as a 100% eco
friendly product. Sri Lanka is a country where currently hold a two billion of annual
revenue from printing market and over 4000 printer service providing establishments
have taken place. The researcher uses this research to identify the factors influence to the
purchase decision of HP Latex Printer in Sri Lanka.

The research did the research identify how the predetermined five elements
(Price,Quality,Benefits,Information Availability and Ultimate Customer Respond) are
effecting to the purchase decision of HP Latex Printers in Sri Lanka. According to the
research finding following were identified by the research.

 Price of the HP latex printers compare to other competitive printer in the market is
very high, often it cost almost twice than other competitive printer in the market.
And with the unpredictability in market structures and current economical
situation most of respondents are not willing to invest more in long term
investment. According to research finding most of respondent are willing to invest
in the lowest range while most of them are prefer for installment payment plans
rather than out right at once. This explains that the price of the HP Latex printers
have negative effects on the purchase decision of Hp Latex Printers.

 Quality of the printers compare to other competitors in the market is very high and
it can be measured in mainly two aspects. There are Quality of the printers
themselves and Quality of the outputs. In both aspects HP Latex printers currently
lead the market. But according to the respondents feed backs the researcher could
identify that the most of the respondent are not highly concern about either
Quality of the Printer or the Quality of the Outcomes. Rather than the quality the
prefer to have quick Return on Investment (ROI).According to the facts it explains
that The quality of the HP latex Printers do not have positive effects on the
purchase decision of HP Latex Printers.

 HP Latex printers are with the feasibility to use for indoor printing, outdoor
printing and also in fabric printing and most of time it gives much benefits to even
offset printing to make their smaller quality jobs done it high quality while
keeping the cost at a minimum level. According to the respondents feedbacks

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most of them are involve in both indoor and outdoor printing activities while most
of some of them are doing offset and screen printing while involving digital
printing in a higher percentage. And most of respondents are currently suffering
from the bad smell and emissions which come from there currently using printing
machines and according to the discussions the researcher had with them, it could
find that it has been a main reason to increase the labour tern over day by day in
printing market. With this disadvantages in the currently using printers by
respondents and with the ability to avoid those disadvantages with HP Latex
Printers. It explains that the Benefits of the HP latex Printers have positive effects
on the purchase decision of HP Latex Printers.

 When people are to get an extensive purchase decision mainly they need more
information about the particular product or service. If the information is
insufficient or not much reliable they are not intentionally move to buy such
product. According to the respondents’ responds the most of them do not have
much knowledge about latex printing technology and when consider the
respondents who have mentioned they know about the HP Latex technology also
have just a basic awareness about the technology. Those who have already bought
Latex Printers ,they have gone deeply through information before they have taken
their purchase decision and with the after sales relationship with the Hp and Local
Service providers they are generally getting updated about the relevant
information about the technology are other upgrading large format printing
products supplies by HP. According to the respondents, their clients’ knowledge
about this technology is at a lowest level. But with the discussions, the researcher
could find that currently there is a requirement from some of their well established
clients who follow eco friendly concepts in their organizations. It explains that the
Information Availability on the HP latex Printers have positive effects on the
purchase decision of HP Latex Printers.

 Most of the respondents are cater only to the level of requirement of their clients
and do not try to up selling. As the ultimate customers are most probably not
ready to pay more and not much loyal to the respondents, they are trying to retain
their existing customers rather collecting new customers from the competition.
According to the research finding currently most of ultimate customers are not
involve in the printing outcome process highly and they are not ready to pay more
for quality. This maybe a reason due to lack of knowledge about the quality and
awareness about the eco friendly concepts by the ultimate customers of the

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respondents. It explains that the Ultimate Customer Respond of the HP latex

Printers currently do not have positive effects on the purchase decision of HP
Latex Printers .

5.2 Recommendations

With the research out comes the researcher have indentified that some factors which
negatively effect to the purchase decision of HP Latex printers. To mitigate the effects
from those factors and to influence the purchase decision of HP Latex Printer the
researcher provides the following recommendations.

 If local service providers of HP can introduce Installment Base payment scheme

to the customers with amalgamating with HP Company, for the most of customer
who have willingness but incapable to invest higher amounts in HP Latex Printers
will buy this printers.

 Most of customers are willing to replace old technologies, but due to the cost of
the initial processes, they are delaying their purchasing decisions. By introducing
buy back system to replace old printers what they are currently using. This will be
further assistance to the customers to take positive decisions relating to these
printers.

 Improving the knowledge and the awareness about the latex printing technology
and with comprehensive explanations by organizing seminars, events, exhibitions
to customers will take place to make the potential customers to buy HP Latex
Printers in Sri Lanka.

 The Most of industrial print outputs in Sri Lanka are centralized to the few
number of clients .By selecting those clients and by providing them a clear
knowledge about the advantages that they can have by using HP Latex outputs for
their businesses, it will positively affect to influence print service providers (PSP)
to print in quality and it will directly influence to the print services providers who
high depend on ultimate customers’ responds to move for this type of printers.

 As this is a technology where 100% of eco friendliness is included, by

highlighting this feature to the both customers and to their ultimate clients it will
help them to add an additional value to their businesses by using HP Latex
technology.

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 By educating and explaining to the government institutions about the Latex

Technology and emphasizing plus points that can make to the society by using
Latex Technology will be a positive method to encourage print service providers
through government involvement.

6.0 List of References

Michael D. Hutt and Thomas W. Speh (2009). Business Marketing Management:

B2B,10thed.USA:South West Cengage Learning. 71-75.

Musadiq A. Sahaf (2008). Strategic Marketing: Making Decisions For Strategic

Advantage. India: Prentice Hall . 95-103

Richard L. Sandhusen (2008). Marketing. 4th ed. New York: Barrons' Educational Series,
Inc. 238-240.

Srilanka Print Magazine July - Sep 2011 First Issue

Srilanka Print Magazine Dec - Jan 2011 Second Issue

Srilanka Print Magazine March - April 2011 Third Issue

Srilanka Print Magazine April - June 2011 Fourth Issue

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7.0 Appendices
The sample of the questionnaire that presented to the number of 30 respondents is
attached.

Company-

Name of the interviewee-

Date-

1. Since when have you been in this printing industry?

2. What are the areas that you currently catering?

In door
Out door
Both Indoor & Out door.

3. What is Volume of annual printing output in terms of square foots?

Less than 30000 square foot
30000-50000 square foot
50000-100000 square foot
More than 100000 square foot

4. What are the Printing methods that you use currently?

Screen printing
Digital printing
Offset printing

5. What kind of printing technology you are using currently?

Water base printing system

Solvent printing system

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Eco solvent printing system

Latex ink printing system.

6. Is air conditioning (A/C) is a compulsory factor for your printing location?

Yes

No

7. What are the main factors that you consider when you buy a large format printer?
(Please rate the according to your preference)
Price of the printer
Durability of the printer
After service of machine providers
Price of consumable accessories
ROI period of the machine.

8. What is the maximum amount that you ready to invest in a large format printer?
Less than 1.5 million

1.5 million -3.0million

3.0million-5.0 million

More than 5.0 million

9. What is to payment method you prefer to use when investing in large format printer?
Out right at once

Going for as bank loan

Installment payment method

Leasing Facility

10. Are you aware about the latex printing system?

Yes
No

11. Are you satisfied with the number of loyal customers that you currently cater?
Yes

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No
12. Are your clients aware about the latex printing system?
Yes
No

13. Are they willing to accept what you offer them?

Yes
No

14. What is the level of involvement of the client in the process?

Very High

High

Average

Low

Very Low

15. Are your clients ready to pay more for quality of the outcome?

Yes

No

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