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Volume-6, Issue-2, March-April 2016


International Journal of Engineering and Management Research
Page Number: 401-406

A Study of Consumer Buying Behavior in Organized Retail Sector:


Electronic Industry (Samsung Televisions)
Dr. Irfan Siddiqui1, Dr. Ujjwal M. Mishra2
1,2
Associate Professor Sinhgad College of Engineering, Department of Management Studies, Pune, INDIA

ABSTRACT 1.The psychology of how consumers think, feel, reason,


Organized retailing is changing the entire and select between different
perception of shopping in terms of buying behavior. alternatives (e.g., brands, products);
Increased household incomes, education, convenience of 2. The psychology of how the consumer is influenced by
getting all useful items under one roof and payment through his or her environment (e.g.,
card are some of the factors responsible for inclination of
culture, family, signs, media);
consumer’s towards organized retail. The objective of this
study is to analyze consumer shopping behavior in retail 3.The behavior of consumers while shopping or making
stores at Ranchi city. The data for this study was collected other marketing decisions;
through self administered questionnaire and face to face 4. Limitations in consumer knowledge or information
intercepts of shoppers at reliance mart and big bazaar. The processing abilities influence
objective of this study is to analyze the consumer shopping decisions and marketing outcome;
behavior dimensions and to measure the significance of 5. How consumer motivation and decision strategies differ
demographic variables on shopping behavior. between products thatdiffer in their level of importance or
interest that they entail for the consumer.
Keywords--- Consumer behavior, consumer purchase 6. How marketers can adapt and improve their marketing
preference campaigns and marketing
strategies to more effectively reach the consumer.

I. INTRODUCTION II. CURRENT SCENARIO


Consumer behavior is the study of how people In recent years the electronic industry is growing
buy, what they buy, when they buy and why they buy. It at a brisk pace. It is currently worth US$ 32 Billion and
blends elements from psychology, sociology, socio according to industry estimates it has the potential to reach
psychology, anthropology and economics. It attempts to US$ 150 billion by 2010. The largest segment is the
understand the buyer decision making process, both consumer electronics segment. While is largest export
individually and in groups. It studies characteristics of segment is of components. The electronic industry in India
individual consumers such as demographics, constitutes just 0.7 per cent of the global electronic
psychographics, and behavioral variables in an attempt to industry. The electronics market of India is one of the
understand people's wants. It also tries to assess influences largest in the world and is anticipated to US$ 400 billion
on the consumer from groups such as family, friends, in 2022 from US$ 69.6 billion in 2012. The market is
reference groups, and society in general. Belch and Belch projected to grow at a compound annual growth rate
(2007) define consumer behavior as the process and (CAGR) of 24.4 per cent during 2012-2020.
activities people engage in when searching for, selecting, Total production of electronics hardware goods in
purchasing, using, evaluating, and disposing of products India is estimated to reach US$ 104 billion by 2020. The
and services so as to satisfy their needs and desires. The communication and broadcasting equipment segment
study of consumer behavior helps firms and organizations constituted 31 per cent, which is the highest share of total
improve their marketing strategies by understanding issues production of electronic goods in India in FY13, followed
such as, by consumer electronics at 23 per cent.

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Electronic exports from India was expected to handset brand in India, it leads in the smart phone segment
reach US$ 8.3 billion in FY13, a CAGR of 27.9 per cent in India.
during FY07–12. Technological improvements and Samsung India has won several awards and
competitively cost effectiveness are main drivers for recognitions for both its corporate initiatives as well as its
demand of Indian electronics products abroad. product innovations in Audio Visual, Home Appliance, IT
The Government of India has set up Electronic and Telecom Product categories.
Hardware Technology Parks (EHTPs), Special Economic Apart from development of innovative
Zones (SEZs) and a brought about a favorable climate for technology, Samsung places great importance on acting as
foreign direct investment (FDI). It has also increased a responsible corporate citizen in the communities where it
liberalization and relaxed tariffs to promote growth in the operates. Its CSR programs respond to the social and
sector. In addition, the government gave its green signal to environmental needs and seek to give back to communities
the Modified Special Incentive Package Scheme (MSIPS) that support the company. In 2009, Samsung launched the
under which the central government will be offering up to company’s Corporate Social Responsibility initiative
US$ 1.7 billion in benefits to the electronics sector in next ‘Samsung Hope Project’ with projects in the areas of
five years. education, culture, sports, social welfare and community
The growing customer base and the increased development. Each program, under the Hope Project,
penetration in consumer durables segment has provided uniquely addresses the needs of individual com-munities
enough scope for the growth of the Indian electronics while emphasizing on innovations for development of the
sector. Also, digitization of cable could lead to increased community including education, technology, engineering
broadband penetration in the country and open up new and IT technical training.
avenues for companies in the electronics industry. The Company’s CSR initiatives such as Samsung
Smart Class and Samsung Technical Schools have been
III. SAMSUNG ELECTRONICS IN recognized by several reputed organizations, and the
INDIA Company has won accolades from these projects aimed at
giving back to the society.
Samsung Electronics commenced its operations in
India in December 1995 and is to-day a leading provider of IV. LITERATURE REVIEW
Consumer Electronics, IT and Telecom products in the
Indi-an market. Samsung India is the Regional The various studies related to consumer behaviors
Headquarters for Samsung’s South West Asia operations, in India and abroad are being referred by the researcher.
which provides employment to over 45,000 employees The general field is one which has been extensively
with around 11,500 employees being involved in R&D. studied, and the research is discussed and reviewed by
Samsung began operations in India through its Wahyuningsih and Chris Dubelaar (2004) in his paper
manufacturing complex located at Noida (UP), which ‘Consumer Behavior and Satisfaction’ of Monash
today houses facilities for Colour Televisions (including University. In their studies they have concluded that To
3D, LED and LCD Televisions), Mobile Phones, satisfy their customers, companies need to identify clearly
Refrigerators, Washing Machines and Split Air each segment of consumers whether they are passive,
Conditioners categories. Samsung commenced operations rational-active, or relational dependent consumers. This is
of its second state-of-the-art manufacturing complex at because these three types of consumer perceive their levels
Sriperumbudur, Tamil Nadu in November 2007. Today, of satisfaction differently. Since rational active and
the Sriperumbudur facility manufactures Colour relational dependent consumers are very sensitive about
Televisions, Fully Automatic Front Loading Washing their feelings and expectations, companies need to
Machines, Refrigerators and Split Air Conditioners. communicate and increase their performance continuously.
Samsung India has three R&D Centres in India–two in A study by (Christensen 1999) shows that out shopping is
NCR and one in Bangalore. While the Noida R&D Centres inversely related to the size of the town of residence. Some
develops software solutions for high-end televisions such researchers have viewed shopping as a leisure activity (e.g.
as Plasma TVs, LCD TVs and Digital Media Products, the Jackson 1991, Newby 1993). Other relevant studies
other Centre is engaged in R&D solutions for product address the interaction between the physical infrastructure
hardware. The Bangalore R&D Centre works on major and consumers’ choice of retail outlets. Even though
projects for Samsung Electronics in the area of telecom, Fernie (1997) does not treat consumer preferences as a
wireless terminals and infrastructure, Networking, SoC separate issue, his work seems likely to provide inspiration
(System on Chip) Digital Printing and other for the present study. Fernie looked at the retail changes in
multimedia/digital media as well as application software. the United Kingdom and included a consideration of the
Samsung India is a market leader in product logistical consequences of the developments there. The
categories like LED TVs, LCD TVs, Slim TVs and Side Robert V Kozinets& John F Sherry studies (2002) have
by Side Refrigerators. While it is the second largest mobile explained the flagship brand stores as an increasingly

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popular venue used by marketers to build relationships


with consumers. They have stated that , as we move VI. RESEARCH METHODOLOGY
further into an experience economy in the new millennium,
retailers are refining the flagship brand store into new “Research is the systematic design, collection,
forms such as the themed retail brand store. This new form analysis and reporting of data and findings relevant to a
not only promotes a more engaging experience of the specific situation or problem”. In the current study
brand’s essence but also satisfies consumers looking for research is carried out by formulating the questionnaire. To
entertainment alongside their shopping. Douglas D. Davis attain the objectives widely prevalent questionnaire
and Edward L. Millner (2004) studies have concluded that method was adopted first of all a pilot testing has been
series of purchase decisions for chocolate bars given (a) taken with the help of questionnaire to evaluate the
“rebates” from the listed price, (b) “matching” quantities correctness of the questionnaire. After that the revised
of chocolates for each bar purchased, and (c) simple price questionnaire was prepared.
reductions, participants purchase significantly more
chocolate bars under a “matching” sales format than under VII. RESEARCH DESIGN
a comparable “rebate” format. In attention to the net
consequences of decisions, as well as some “rebate Descriptive Research design is used in the current
aversion”, explain the preference for matching discounts. study.
Journal of Business and Retail Management Research For the purpose of study the researcher selected Kudal City
(JBRMR) Vol 7 Issue 1 October 2012 A Journal of the belonging to Maharashtra state of India.
Academy of Business and Retail Management (ABRM)
• Sampling Method:
Carrie Heilman (2002) has examined the impact of in-store
Simple random sampling was used for the purpose of
free samples on short and long-term purchasing behavior.
research by the researcher.
They suggest that the population of in-store samplers can
• Sample unit:
be divided into three segments based on their motives for
Retailer, dealer and distributors where treated as sample
sampling: “Information Seekers”, “Party Goers,” and
unit.
“Opportunists,” and propose that short- and long-term
shopping behavior differs across these three segments • Sample Size:
post-sample. They had conduct an in-store experiment and The sample size of 125 was selected by researcher
find support for their theory and hypotheses The consisting of retailer, dealer and distributor.
researchers have tried to explain the consumer behavior
and promotional strategies adopted by retailers. They have VIII. DATA COLLECTION
explained that consumer spending pattern varies with retail
formats of the retailers. Also researchers have mentioned Method Of Data Collection
that consumers select the outlet on the basis of product In order to study the consumer buying behavior
offerings. regarding the purchase of Samsung televisions with respect
to other companies in Kudal city both primary and
V. STATEMENT OF PROBLEM secondary data was collected.
Data Analysis:
“Study on consumer buying behavior towards Since data collected is nonparametric in nature
Samsung televisions with reference to Kudal city in therefore data analysis is done using CHI SQUARE test at
Sindhudurg 5%
Objectives: Significance level (α=0.05). Null hypothesis is
1. To know about consumer buying behavior rejected where α≤0.05 & it is accepted when α>0.05.
towards Samsung televisions. SPSS software is used to analyze data.
2. To identify factors which influence customers
while they make their decisions IX. DATA ANALYSIS
3. To know perception of people towards Samsung
TV. Sources that influenced respondents to buy Samsung
Scope : televisions
1. This report will help to understand the consumer H0: There is no influence of various factors in buying
behavior towards purchasing a new TV. Samsaung TV
2. This report provides a frame of mind of people, H1: There is influence of various factors in buying
what are the expectations of consumers. Samsaung TV

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Table No:1.1
Response No. of respondents Percentage

Advertisement 25 20

Family,Friend and relatives 70 56

Shape and size 18 14.4

Price 12 9.6

Total 125 100


Chi-Square Test
Frequencies
Sources of Influence
Observed N Expected N Residual
Advertisement 25 31.3 -6.3
Freinds Relatives 70 31.3 38.8
Shape and Size 18 31.3 -13.3
Price 12 31.3 -19.3
Total 125
Test Statistics
Sources of
Influence
Chi-Square 66.776a
df 3
Asymp. Sig. .000

Analysis Size of Samsung televisions preferred


In the above table it can be observed that the chi H0: There is no relation between size of television and
square value of 66.77 is significant at 3 degrees of preference
freedom, showing there is significant difference in H0: There is a relation between size of television and
expected and observed frequencies. Therefore we reject preference
the null hypothesis and conclude that various media
sources have différent level of influence on the Customer.

Table No:1.2
Size of Samsung TV No. of respondents Percentage

19”-29” 10 8

32”-39’ 25 20

40”-43” 70 56

20 16

Total 125 100

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Size of TV
Observed N Expected N Residual
19”-29” 10 31.3 -21.3
32”-39" 25 31.3 -6.3
40”-43” 70 31.3 38.8
Less Important 20 31.3 -11.3
Total 125

Test Statistics
Size of TV
Chi-Square 67.800a
df 3
Asymp. Sig. .000

Analysis observed frequencies. Therefore we reject the null


In the above table it can be observed that the chi hypothesis and conclude that size of the TV affects
square value of 67.8 is significant at 3 degrees of freedom, preference of customers.
showing there is significant difference in expected and Level of satisfaction

Table No:1.3
Response No. of respondents Percentage

Fully satisfied 20 16

Satisfied 50 40

Somewhat satisfied 10 8

Not satisfied 20 16

Least satisfied 25 20

Total 125 100

120

90

60
No. Of Respondents Percentage

30

0
Fully Satisfied Somewhat Not Least
Satisfied Satisfied Satisfied Satisfied

Interpretation
Maximum number of customers were satisfied with Samsung televisions as per the survey.

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X. FINDINGS 3. Dealer can start after sales service for the TV so that
more customers get attracted for buying TV.
1. It was found that maximum number of people own a TV
and that of Samsung brand. REFERENCES
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New Kid On The Block. Marketing Intelligence

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