Color Television Industry

A PROJECT REPORT ON “CONSUMER BUYING BEHAVIOR FOR COLOUR TELEVISIONS’’

In Partial Fulfillment Of The Degree Requirements Towards The

MASTER OF BUSINESS ADMINISTRATION Submitted By:

Submitted To:

Shikha Tandon

Mr.SureshKashyap

Roll No. 244221063

Session 2003-2004

Lovely Institute of Management Phagwara

ACKNOWLEDGEMENT

This work has been a result of valuable guidance and supervision of Mr. Suresh Kashyap, an ideal teacher and a true guide. I don’t have the words to express the deep-felt gratitude which I owe him. He rendered invaluable help and guidance to me during my project and remained a continuous source of information and motivation for me. He deserves my special thanks for his most constructive suggestions and healthy criticism through out my MBA. I feel enriched by his invaluable guidance. Finally what ever I’m is all due to my parents who have always been a constant source of guidance, inspiration, and optimism for me. I would also like to thank my friends for their support and encouragement through out my project report. With so much able guidance it is difficult to offer any excuse for the shortcomings that might follow. How ever the faults solely are my responsibility.

SHIKHA TANDON

TABLE OF CONTENTS

S.NO.

TITLE

1.

INTRODUCTION TO THE PROJECT

2.

OBJECTIVES

3.

RESEARCH METHODOLOGY

4.

CTV INDUSTRY

5.

CONSUMER DECISION MAKING

6.

NEED OF THE STUDY

7.

LIMITATION

8.

DATA ANALYSIS AND INTERPRETATION

9.

CONCLUSION

10.

RECOMMENDATION

11.

ANNEXURE

•

BIBLIOGRAPHY

•

QUESTIONNAIRE

INTRODUCTION

Two movies a week at the theatre, getting together with friends and relatives, playing cards, listening to the radio and may be reading were the only available outlets for the consumer to pass their time before the introduction of television. By the late 70’s consumer demands were becoming strident aspirations and expectations began out growing available options The culmination of this was in 1982(when the colour television was introduced and the network was partially expended) and 1984 (with the one transmitter a day expansion) However these changes perhaps were more the results of political considerations rather than meeting the consumer demand for change. The magazine boom of the mid 70’s had limited impact as it was catering to more or less the homogeneous group of people dictated by language, style, and content. But for the first time in country, TV a single medium was reaching out nationally. Radio while the forerunner did not have the same impact. The advantage of TV since 1984 was that it could be received through out the country. It therefore operated as a catalyst in defining social moves of the times. Being a truly mass medium it drew viewership from all stratas of the society. Each individual picked what he or she wanted from the medium. The advent of satellite and cable TV has now totally changed the situation. With satellite programmes are beamed to many countries at the same time. Operating in a protected economy Indian advertisers have a no market outside the borders of India. But consumers have no such restrictions They are more happy to adopt the latest entertainment media. Consumers now demand quality as never before. The best available internationally is preferred to Indian as economy liberalizes. An even more suitable change is imminent. Consumers have begun to think international and over time behave international. Consumers and technology are marching hand in hand today. IT is thus incumbent upon the marketers, manufacturers, advertisers, and agencies to

understand this new consumer and keep pace or face the alternative of being left behind. To establish their standing in the market they have to be constantly on the search for customers and have to find out what consumer buy , how much can they pay and what is being made available to them by the competitors not only in India but internationally too.

COLOR TELEVISION INDUSTRY

Television has recorded a phenomenal growth in India. It has become an accepted part of our daily life in very short span. Television is affecting customers, domestic routines, educational techniques and entertainment pattern. In the recent past television was luxury item meant for rich people only but now a days, it is considered as necessity by most of the people. However the role of audio visual media of communication for a country like India with large population, high illiteracy and vast area assumes critical importance and television can be regarded as harbinger of social, economic, and cultural development. Television combines in it all the benefit of the radio, newspaper and cinema and therefore it is the most popular media for education, information and entertainment. Before understanding any market adventure, it is important to understand the industry. Therefore, it is useful to study background of TV industry of India briefly. The first demonstration of actual television was made in 1925-27 by J.Lbaird and C.F Jenkins. The Black and White TV broadcast was introduced in UK in 1937. A color sequential system developed by Columbia Broadcasting service was adopted in U.S.A. in 1950 for coloured T.V. transmission. After a great deal of internal debate, the government of India decided to introduce television in the year 1959. Commercial production of T.V. sets was started in 1970. Later on doordarshan

stations

was

set

up

in

Bombay(1972),

Amritsar(1973),

Srinagar(1973), Calcutta(1975), Madras(1975) and Lucknow(1975).

HISTORICAL DEVELOPMENT IN INDIA The 80’s The 80’s saw the industry growing at a fast rate of 30% per annum. The years following the 1982 Asian games saw an exponential rise in growth, which coincided with the setting up of Doordarshan kendras in many parts of the country. Moreover, the government adopted a policy of encouraging the sector, which saw the birth of many TV companies namely Weston, Dyanora and Televista. Even state government owned companies like Uptron, Keltron and Meltron came up. By 1989, there were over 200 TV companies with sales of 5.2mn sets. The 90’s The early years of the 90’s decade saw TV sales falling to 4mn units due to a high tax regime. However, with the onset of the liberalization era, the year 1993 saw a reversal in fortunes for the industry with both import duties and excise duties being slashed. Accompanying it was a rise in the general purchasing power of the populace, a greater variety in TV software (with the coming in of foreign satellite channels) and a strong rise in replacement demand. Sales touched almost 9mn units in 1998. This period also saw the entry of MNC’s. The years 1998 and 1999 have seen events like, the large pay-out to the government staff through the implementation of the 5th Pay Commission, World Cup 1999 and the success of the rabi crop. These events have changed the face of the CTV industry, which realized a growth of 29-30% for the last two years. In fact, for LG, (official sponsor of the World Cup 1999) this was the most successful brand building exercise, as the company saw a 95% growth in 1999.

THE PRESENT SCENARIO

CTV market has grown by around 30% to 5mn units (inclusive of sales during World Cup in) FY2000. After an accelerated performance in the last two years, The Rs75bn the industry has seen a slow growth of just 10% in this year (JanuaryApril2000). While some players have seen a steady decline in sales, a few others have performed exceptionally well. Brands like Philips, Sony, Aiwa have seen their market shares dipping continuously, while the Korean multinationals, LG and Samsung, are on a rampage, having shown a commendable performance, contrary to the overall CTV industry performance. BPL has held its leadership in FY2000 by sacrificing margins with a 20.3% market share, despite the onslaught of multinationals. BPL volume sales increased by 35% to 1.18mn units for FY2000 whereas net sales increased by 4% only. The company showed a jump in CTV exports by 148%. However, the company did not perform well in the 1QFY2001 with its sales dipping by 25% to Rs. 3,720.5mn. Most of the players are slashing prices and taking a re-look at their schemes. Prices are down by more than 20% and industry majors predict a sharper fall by 8% in the next two years. However, reduction in prices is not a viable option in the long run, and will definitely affect the profit margins. Contrary to this, LG has priced its products 10% higher than the market price and still managed to be the largest brand in consumer electronics and white goods for April 2000 by achieving sales of Rs1.95bn

Year

CTV sales

1988

1.3

1989

1.2

1990

1.2

1991

0.88

1992

0.83

1993

1.1

1994

1.3

1995

1.8

1996

1.91

1997

2.2

1998

2.65

1999

4.4 CTV Sales

LIST OF COMPANIES IN CTV INDUSTRY

S.No. BRAND

MKT

PUNCH LINES

SHARE 1.

SAMSUNG

17%

“Digital”

2.

VIDEOCON

12.4%

“Bring home the leader”

3.

LG

14.5%

“Digital LG”

4.

SONY

18.1%

“Flatter than the flattest flat”

5.

AIWA

8%

“Intelligence Embedded”

6.

ONIDA

7%

“Neighbors Envy Owners Pride”

7.

BPL

5%

“Believe in the Best”

8.

PHILIPS

7%

“Lets Make things better”

9.

SANSUI

5%

“Better than the best”

10.

OTHERS

13.0%

……………

CONSUMER BEHAVIOR The aim of marketing is to meet and satisfy target customers’ needs and wants. The field of consumer behaviour studies how individuals, groups, and

organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. The consumer buyer behaviour is the buying behaviour of final consumer–individuals and households who buys goods and services for personal consumption. Understanding consumer behaviour and “knowing customers” are never simple. Customers may state their needs and wants but act otherwise. They may not be in touch with their deeper motivations. They may respond to influences that change their mind at the last minute. Nevertheless, marketers must study their target customers’ wants, perceptions, preferences, and shopping and buying behavior: Studying consumers provides clues for developing new products, product features, prices, channels, messages, and other marketing-mix elements. A Model of Consumer Behavior At one time, marketers could understand consumers through the daily experience of selling to them. But the growth of companies and markets has removed many marketing managers from direct contact with customers. Increasingly, managers have had to rely on the 7 O’s framework for consumer research to answer the following key questions about any market: Who constitutes the market?

Occupants

What does the market buy?

Objects

Why does the market buy?

Objectives

Who participates in the buying?

Organizations

How does the market buy?

Operations

When does the market buy?

Occasions

Where does the market buy?

Outlets

The starting point for understanding buyer behavior is stimulus-response model shown below. Marketing and environmental stimuli enter the buyer’s consciousness. The buyer’s characteristics and decision process lead to certain

purchase decisions. The Marketer’s task is to understand what happens in the buyer’s consciousness between the arrival of outside stimuli and the buyer’s purchase decisions. They must answer two questions:

• How do the buyer’s characteristics-cultural, social, personal, and psychological-influence buying behavior?

• How does the buyer make purchasing decisions?

Marketing stimuli Product

Other stimuli

Buyer’s

Buyer’s decision

Buyer’s

Economic

characteristics process Cultural Problem

decision Product choice

Price

Technological

Social

Recognition

Brand choice

Place

Political

Personal

Information search Dealer choice

Promotion

Cultural

Psychological

Evaluation

Purchase Timing

Decision

Purchase amount

Post Purchase Behaviour

THE BUYER DECISION PROCESS

The buyer decision process consist of Five Stages-: Need recognition, information search, evaluation of alternatives, purchase decision, and post purchase behaviour. Clearly the buying process starts long before actual purchase and continues long after. Marketer need to focus on the entire buying process rather than on just the purchase decision. 1. NEED RECOGNITION- The first stage of the buyer decision process in

which the consumer recognizes a problem or need. 2. INFORMATION SEARCH- The stage of the buyer decision process in

which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search. 3. EVALUATION OF ALTERNATIVES - The stage of the buyer decision

process in which the consumer uses information to evaluate alternative brands in the choice set. 4. PURCHASE DECISION- The stage of the buyer decision process in

which the consumer actually buys the product. 5. POST PURCHASE BEHAVIOUR-The stage of the buyer decision

process in which the consumer take further action after purchase based their satisfaction or dissatisfaction.

MARKETING MIX Marketing mix can be defined as the set of controllable tactical marketing tools – product, price, place, promotion-that the firm may blend to produce the response it wants in the target market. PRODUCT-Product means the goods and services combination the company offers to the target market. In case of color television it includes variety, quality, design feature, brand name, packaging, services that are offered along with the television. PRICE- It is the amount of money the customer have to pay to obtain the product (CTV). It includes list price, discount, allowances, payment period, credit terms. PLACE- It includes company activities that make the product available to target consumers. Channels, coverage, assortments, locations, inventory, transportation, logistics becomes the part of place PROMOTION- Promotion means activities that communicate the merits of the product and persuade target consumer to buy it. various promotional activities are advertising, personal selling, sales promotion, public relations.

FACTORS AFFECTING CONSUMER BEHAVIOR Consumer purchases are influenced strongly by cultural, social, personal, and psychological characteristics. For most marketer cannot control such factors, but they must take them into account. (a) CULTURAL FACTORS Cultural factors exert the broadest and deepest influence on the consumer behavior the marketer needs to understand the role played by the buyer’s culture, subculture, and social class. (i) Culture- the set of basic values, perception, wants and behavior learned by the member of the society from family and other important institutions. (ii) Subculture- a group of people with shared values system based on common life experiences and situations. (iii) Social class- relatively permanent and division in a society house members share a similar values, interests, and behavior. (b) SOCIAL FACTORS A consumer’s behavior is influenced by social factors, such as the consumer’s small group, family and social roles and status (i) Group- Two or more people who interact to accomplish individual l

or mutual goals.

(ii) Family- The family members (husband, wife, children) can strongly influence buyer behavior (iii) Role and Status- Role consist of the activities people are expected to perform according to the persons around them. Status reflect the general esteem given to it by the society. People often choose the products that show their status in the society.

(c) PERSONAL FACTOR A buyer decision also are influenced by personal characteristics such as the buyer’s age life style, and life cycle stage, occupation ,economic situation , lifestyle , and personality and self concept. (i) Age and Life cycle stage- People change the goods and services they buy over their lifetime. Tastes of the people undergo change with their age. Family life cycle- the stages through which families might pass as they mature over time. (ii)

Occupation – A person’s occupation also affect the goods and services they bought

(iii)

Life Style- A person’s pattern of living as expressed in his/her activities, interest, and opinion.

(iv)

Personality-A person’s distinguishing psychological characterstics that lead to relatively consistent and lasting responses to his or her own environment.

(d)

PSYCHOLOGICAL FACTORS A person’s buying choices are influenced by four major psychological

factors: motivation, perception, learning, and beliefs and attitudes. (i) Motivation- A need that is sufficiently pressing to direct the person to seek satisfaction of the need. (ii) Perception- The process by which people select, organize, and interpret information to form a meaningful picture of the world. (iii) Learning- Changes in the individual’s behavior arising from experience. (iv) Beliefs and Attitude- Belief is a descriptive thought a person hold about something. Attitude is a person’s consistently favorable or unfavorable evaluation, feelings, and tendencies towards an object or idea.

RESEARCH METHODOLOGY 1. Primary data collection- The information was collected by the way of face

to face interviews. This method was adopted to make the survey interactive and also awareness enhancing. 2. Research-Survey 3. Research instrument- Structured Questionnaire. 4. Area covered/scope of the study- Jalandhar city and Nakodar . 5. Sample Size-100 6. Sample Unit- Businessman, Professional, Govt. employees, Students,

Housewives. 7. Sample Procedure- Convenience Sampling 8. Contact Method-Personal Interview Method

GENDER Male

%OF RESPONDENTS 58

Female

MARITAL STATUS

42

%OF RESPONDENTS

Married Unmarried

62 38

AGE

%OF RESPONDENTS

20-25

36

26-40

32

40.55

32

EDUCATION

%OF RESPONDENT

Post-graduate

26

Graduate

49

Matriculate

13

Others

12

OCCUPATION

%OF RESPONDENT

Businessman

26

Professional

21

Govt. employee

15

Student

20

Housewife

18

MONTHLY HOUSEHOLD INCOME

%OF RESPONDENTS

Up to Rs. 5000

9

Rs.5001-10000

14

Rs. 10001-15000

54

More than Rs.15000

21

NEED OF THE STUDY

This study will help the dealers to know that which factors influence the consumers most and at the same time which source of information influence their buying decision. This research can be useful as source of information for similar projects. My study will help the customers to know which brand of CTV to select as there are number of brands which are available in the market.

OBJECTIVES OF THE STUDY

The buying behavior of the consumer with regard to CTV is influenced by number of external and internal factors and this study attempts to know about the consumer buying behavior and at the same time what factors do the consumers have in their mind before they make up their mind to purchase a CTV so the main aim of my study was:1. To determine factors that influence the buying behavior of consumer. 2. To determine the most preferred brand. 3. To find out reasons and analysis for the most preferred brand. 4. To determine the most preferred features that the consumers look for while the selection of any brand. 5. To have an idea about the future purchase plan of the consumers. 6. To determine the level of satisfaction with regard to services provided by the retailers and brand already owned by the consumer. 7. To determine the promotional schemes that attracts the consumer the most. 8. To know whether CTV are bought on a particular occasion or purchases are need driven.

LIMITATION

Although sincere efforts were made by me to collect the maximum, most authentic and relevant information even then this study may have the following limitations:1. This study cannot be generalized for all the consumers of CTV since the universe under study in my research was limited to Jalandhar and Nakodar city. 2. All the results and conclusion have been drawn on the basis of information provided by the respondent so there is the possibility of “individual bias” on the part of respondent. 3. Time was an another limiting factor 4. The method used for data collection is convenience sampling method therefore ‘drop in’ or go through error might have crept in . 5. Buying behavior is an attitudinal which need specialized knowledge of the area so there is a chance of interpretational error. .

FINDINGS AND ANALYSIS PRODUCT ATTRIBUTES /FACTORS WHICH AFFECTED THE CUSTOMER’S CHOICE OF BRAND Product attribute /factors has been divided into three categories i.e. critical/most significant factors-means factors that were considered by seventy or more than seventy respondents while purchasing existing brand of CTV. Moderately significant factors-it includes factors that were considered by 50 to70 respondents while purchasing existing brand of CTV. Third category is of Less Significant factors it includes those attributes that were considered by less than 50 respondents. a) Critical/Most Significant Product Attributes/Factors: This category includes After-Sales- Services, Better Quality and Brand Image as 82,80&72 respondents considered these while buying CTV. b) Moderately Significant Product Attributes/Factors This category includes Warranty Advanced Technology, Picture quality, Sound output and attractiveness with 68,66,63,60$58 considering these while they purchased CTV /selected brand. These factors may be termed as maintenance factors, presence of these factor doesn’t increases preference much but absence of these can significantly lead to decrease in brand preference. c) Less significant product Attributes /Factors Easy availability, Foreign Made, Graphic Equalizers. On Screen display, Built in video Game, Child Lock, Low price are in this category as 48, 48, 38, 35, 32, respondents considered these while buying the CTV’s.

Easy availability is less significant as CTV is a high entertainment value item and respondent can neglect it while buying CTV. Thus several people purchase CTV from neighboring cities neglecting dealers from their own cities. This factor is critically for daily use items. Availability of credit is least significant, as customer is not going to buy the brand, which he/she doesn’t like even if credit is available. S. No. 1. 2. 3. 4. 5. 6.

Attributes Low Price Brand Image High Quality Easy Availability Attractiveness Any other

No. of Respondents 32 72 80 48 63 40

Any other

Attractiveness

Easy Availability

High Quality

Brand Image

Low Price

90 80 70 60 50 40 30 20 10 0

If Customers are Satisfied or Not:

25% Yes No 75%

Customer Satisfaction with the Brand Owned:

S.NO.

Reason for

No. of

Reasons for

1.

satisfaction Good

respondents 74

dissatisfaction Poor 8

2.

performance Good picture

61

performance Bad picture

and sound

No. of respondents

6

quality

3

output Better after

44

Poor after sale

11

4

sale service Good looks

56

service Ordinary

0

46

Looks ……………

…………

5

Any Other

Reason for satisfaction 80

74

70 61

no of respondents

60

56

50

46

44

40

30

20

10

0 Good performance

Good picture and sound output

Good after sale service Reason

Good looks

More sound output

Po or pe rf o rm an Ba ce d pi ct ur Po e qu or al af i ty te rs al es se rv ic e O rd in ar y lo Le ok ss s so un d ou tp ut O bs ol et e m od el

No of respondents

Reasons for dissatisfaction

16

10

8

6

2

0 15

14

12 11

8 6

4 4

0

Reasons

BRAND PREFERENCE FOR CTV’S:

“A brand is a name, item, sign, symbol or design or a combination of them, intended to identify the goods or services of one sellers or group of sellers and to differentiate them from those of competitors.” Thus a brand identifies the seller or market. Under trademark law , the seller is granted exclusive rights to the use of the brand name in property. Brands vary in the amount of power and value they have in the market place. Brand preference means that the consumer would select that particular brand over others. A powerful brand is to have a high brand equity. Survey reveals that Sony, Samsung and LG have the high brand preference. Philips, Videocon, Onida enjoy moderate preference. Akai, Aiwa, Sansui has got low brand preference.

Brand preference for Thomson among consumers is minuscule .Sony and Samsung have high preference because of their excellent performance in terms of quality and high brand loyalty build over the years. Philips has been able to build high preference due to aggressive promotional campaign and excellent service backup.

S. no.

Brand name

Rating score

Rank

1. 2. 3. 4. 5.

SONY SAMSUNG LG VIDEOCON ANY OTHER

850 810 778 728 …..

1 2 3 4 …….

860 840 820 800 780 760 740 720 700 680 660 SONY

SAMSUNG

LG

VIDEOCON

ATTRACTIVENESS OF PROMOTIONAL SCHEME:

Survey has revealed that out of 100 respondents 53 i.e. 53%have responded that discount offers attract them most. While 27%and 20%have responded that exchange offer and free gift attract them most. High attraction for discount after signifies the price conscious market. Low attraction for free gift can be attributed to consumer’s belief that companies add up the cost of gift in the cost of actual product.

S.No.

Scheme Type

No. of respondents

1. 2. 3.

Discount offer Exchange offer Free gift

53 27 20

PROMOTIONAL SCHEMES 60

53

% OF RESPONDENT

50

40

30

27 20

20

10

0 discount offer

exchange offer SCHEMES

freegift

INFLUENCE OF PERSON ON BUYING DECISION

Family members influence the consumer behavior in two ways. Firstly the consumer is affected by his environment

which is influenced by his family

members ,secondly most of the products are purchased for use at the residence and family members have assay in the purchase decision .

Sr. no 1. 2. 3. 4

Decision makers Spouse Children Friends Others

No. of respondent 40% 30% 23% 7%

influence of person on buying decision 45% 40%

40%

%of respondents

35% 30%

30%

23%

25% 20% 15% 10%

7%

5% 0% housewives

children

friends

person

others

BEST CTV (CUSTOMER VIEW) The respondents were asked that which is the best ctv on the basis of size of the tv. 21” ctv was found to be the most preferred as 52% of the respondents were in its favor. 38% of the respondent preferred 14 to 20” ctv, 8% preferred 25 to 29” ctv and 2% preferred 34” ctv.

S.no.

Size of TV 1. 2. 3. 4.

14-20” 21” 25-29” 34”

No of respondent(%) 38 52 8 2

BEST ctv 60% 52%

%of respondents

50%

40%

38%

30%

20%

8%

10%

2% 0%

14-20"

21"

25-29"

SIZE OF CTV

34"

REASONS FOR BUYING FROM A PARTICULAR SHOWROOM Table shows out of 100 respondents 26 i.e. 26%have pointed out that they have purchased their CTV from a particular showroom because of the competitive price. Authorized dealership has occupied second position as 25%respondents pointed out it as the reason for buying CTV from a particular showroom. Third position has been occupied by better services with 20%respondents pointing it out as reason for buying from a particular showroom. 14&13 have pointed out pleasing nature &good reputation as most important factor in this context. Credit facility has got very low rating as only two respondents have pointed out credit facility as main factor. CTV is one time purchase for most of the households &it is costly as well as high utility item, thus they prefer to buy it from authorized dealer. It is the cost factor which makes competitive price important purchase of CTV (unlike consumer product)is one time purchase, thus customer can neglect pleasing nature if other factors favor particular showroom.

S. No.

Reason 1. 2. 3. 4. 5. 6.

Competitive Price Authorised Dealer Pleasing Nature Good Reputation Better Service Credit Facility

No.of Respondents 26 25 14 13 20 2

th

Reasons tf

di

tio n

ac ilit y

20

cr e

ta

rs ev ic e

pu

14

t te

re

re

15

be

od

25

tu

er

e

no. of respondent %

26

go

na

ic

al

pr

de

iv e

is ed

tit

sin g

or

m pe

pl ea

au

co

Reasons for buying from a particular showroom

30

25 20

13

10

5 2

0

SOURCES OF INFORMATION ABOUT CTV The survey has revealed that out of 100 respondents 43 i.e. 43% of the respondent came to know about the particular Brand from the friends, 23 i.e. 23% from relatives 10% from newspaper, 85 each from hoardings, noticed while walking, and others .so it is clear that friends and relatives are important source of information as compare to others.

S. NO. 1 2 3 4 5

Sources of information Word of mouth TV Ads Print Ads Hoarding Others

No. of respondent(%) 43 23 20 8 6

sources of information about showroom 50

45

43

40

% of respondents

35

30

25

23

20

15 10 10

8

8

8

Hoarding

Noticed w hile w alking

Others

5

0 Friends

Relatives

New spaper

sources

SOURCES OF INFORMATION ABOUT BRAND

Brand selection is one of the most important decision for the customer tv is generally one time purchase item so consumer will like to select the brand after taking in view the recommendation of others as different brands have different positioning in the mind of the consumer so he/she will like to go for a brand which will be recommended by others in order to reduce the chances of post-purchase dissonance. Word of mouth is the most crucial factor in brand selection, recommendations from family members come at second, tv advertisement and news paper occupies fourth position and hoardings are at fourth position

S.NO. 1 2 3 4 5

Source of information Word of mouth Hoarding Tv advertisement Print Ads Others

No of respondent(%) 40 4 8 8 5

Sources of information

WORD OF MOUYH

OTHERS 2% RECOMMENDATIONS FROM FAMILY MEMBERS 33%

HOARDING WORD OF MOUYH 40%

TV AD NEWSPAPER/MAGAZINE VIDEOCASETTES

VIDEOCASETTES 5% NEWSPAPER/MAGAZIN E 8%

HOARDING TV AD 4% 8%

RECOMMENDATIONS FROM FAMILY MEMBERS OTHERS

PURCHASE OCCASION: The revealed that most of the purchases are need driven as 43%of the respondents have replied that they have bought CTV when needed and there was not any specific occasion .27%bought on marriage occasion again these purchases are need driven as at the time of marriage CTV is purchased for dowry purpose.

S.NO. 1 2 3 4

Purchase occasion Discount Marriage Festival/New Year Others

No. of respondents(%) 23 27 7 43

Purchase Occasion

Discount 23% Others 43%

Festival/new year 7%

Marriage 27%

BRAND OWNED: The survey revealed that brand owned by the maximum number of respondent is Sony while Samsung occupies second position ,LG holds third position, fourth position is hold by Videocon and then others.

S.No. 1 2 3 4 5

45 40

Brand owned Sony Samsung LG Videocon Others

No of respondents(%) 40 25 20 5 10

40

35 30

25

25

20

20 15

10

10

5

5 0 Sony

Samsung

LG

Videocon

Others

SUMMARY AND CONCLUSIONS

This study attempts to know about the consumer buying behavior with regard to CTVs. What factors do the consumers have in their mind before they make up their mind to purchase a CTV, this study finds to gain insight into these factors. It has been observed from survey that Sony enjoys highest penetration level, as 40% respondents own Sony, Samsung comes second as 25% respondent owns it. Majority of CTV owned by the respondent (about 77%) are of capacity 21”, 20% are of size 25”. Most of the Indian consumer purchases are need driven. 43% of the respondents have replied that they bought CTV when need and there was not any specific occasion. 27% bought on marriage occasion, again these purchase s are need driven as at the time of marriage CTV is purchased for dowry purpose. When it comes to source of information for the selection of showroom it has been observed that friends and relatives are the major source of information about the showroom.. Out of 100 respondents 43 and 33 relied on friends and relatives (respectively) as source of information. Thus for selecting showroom consumer relies on the personal sources than the impersonal sources like advertisement, hoarding, newspaper etc. Again as a source of information for brand choice consumer relies heavily on word of mouth and recommendation of family members. Survey

has revealed that 40% of respondents relied on word of mouth and 33%on recommendations of family members. Spouse has been found to be most influential during purchase decision of CTVs. Majority of respondents have pointed out that they bought CTV from particular showroom because of competitive prices and authorized dealership. This has been confirmed from the rating of factors affecting choice of showroom/retailer as authorized dealer and competitive price are two top factors. When it comes to the selection of showroom after sales service is less important than above two factors as it (after sale service) is considered to be the responsibility of company. After sale service is usually provided by the company. After sale service, high quality, brand image, child lock are the most significant factors influencing choice of brands with rating score more than 700. Attractiveness of model, picture quality, advanced technology, warranty and looks have been found to be the moderately significant with rating score between 500-700. Availability of credit, easy availability, low price, foreign make and graphic equalizers are less important factors with rating score less than 500. This pattern has been confirmed from the analysis of factor that influenced the respondents while buying their existing brand of CTV. Child lock, video games which lies in less significant category according to the analysis of factors which influenced customers while selecting their existing brands comes to most significant category from of attributes. This can be attributed to the fact that most of the existing CTVs (about 88%) have been purchased after (1991), before that only 12%had purchased CTVs.

It has been clearly depicted from the study that level of satisfaction among consumer is very high. Out of 100 respondents 83 i.e. 83%are satisfied from the service of the showroom. So far as the satisfaction from the brand /model owned 81 i.e.81%are satisfied. Good performance, picture quality and good after sale service are the most important reasons for the high level of satisfaction among the consumer. 15 out of 19 are dissatisfied consumers pointed out that obsolete model as a reason for their dissatisfaction. From this we can interpret that taste for more features is growing among consumers. Sony and Samsung are found to be the most preferred brands, Whereas preference for Videocon is minuscule. LG and Philips enjoy moderate preference. Aiwa and Akai are less preferred brands. In terms of popularity (brand recall test) Sony has been found to be most popular brand with weighted mean of (first, second, third)20.66 Samsung and LG comes second and third respectively in popularity with weighted average 15.66 and 13.66 respectively. Thus Sony and Samsung can be attributed to these fact that these two are very old and reliable in CTV market. Popularity of Samsung is high because of the aggressive advertisement campaign by the company.

RECOMMENDATIONS

1) Sony, LG, Samsung, Philips have been able to dominate the market with simple, brief and heart winning messages. So by giving more importance to the composition of the messages the companies can increase their impact on the consumers. 2) To attract consumers the company should improve the quality of their CTV. The advertisement copies should stress on the quality of the brands, their superiority, highlighting technological, features, and the wide network of after- sale- services. 3) The present study reveals that the ‘Brand Name’ has most important bearing on the minds of the consumer at the time of deciding their choice of brand of color TV there fore every effort should be made through advertisement to build up and strengthen the brand image. 4) Proper feedback should be undertaken by the marketer in order to find out the loopholes in their performance and undertake all possible actions to overcome the same. 5) The role of advertisement as the study has highlighted needs to be appreciated. Since attractive well-planned advertisement campaign can play a very vital role in the increasing the share of brand in the CTV market. Every manufacturing organization should have a separate ‘advertisement cell’ with intelligent and experienced marketing professional who should be made responsible of making advertisements more attractive .eye catching and purposeful.

ANNEXURE RATING TECHNIQUE In this rating technique used respondents has to rate each and every attribute factor on 10 point rating scale. Rating score by each and every respondent for a particular attribute/factor is added to get final score for that attribute. That final score is known as Rating Score. Because every respondent has to allot score from 10 and sample is of 100 respondents. Thus final score of each and every attribute is out of 1000. E.g.:- Respondent 1,2,3,4,…….100 rate low price as 4,5,7,9………100 th score then addition of all scores will give final score of low price out of 1000. RANKING TECHNIQUE In this scores have been attached with every rank. The following table shows Ranks and their score attached with respect to rank given by respondents. Rank Score

1 10

2 9

3 8

4 7

5 6

6 5

7 4

8 3

9 2

10 1

11 0

Now using scores relative to each rank final score is calculated as in rating technique.

QUESTIONNAIRE Dear Respondent, I am a student of MBA in the Lovely Institute of Management of affiliated to the Punjab technical university. I am carrying out a survey on “Consumers’ Buying Behavior towards Color Televisions”. Kindly help me in this survey by filling the following questionnaire. The information provided by you will be kept confidential and for academic research only. Thanks, Shikha Tandon. Q1.

Name the brands of CTVs which you can recall first? (a)

Q2.

(b)

(c)

Which brand of CTV do you own? (a) Name ………(b) Size………(c)Year of purchase…………

Q3

On which occasion you bought CTV? (a) New Year

(b) Festival

(c) Marriage

(d) Discount Offer (e) Any Other Q5

What were the information sources used by you while selecting the brand of CTV? (a) Word of mouth

(b) Hoarding

(c) TV advertisement

(d) Print ads

(e) Any others(Specify)

Q5

Who influenced your decision the most to buy a particular brand of CTV?

Q6

(a) Spouse

(b) Children

(c) Friends

(d) Any other

Which of the following factors influence you while buying particular brand of CTV(please tick as many as possible) (a) Low price

(b) Brand image

(c) Better quality

(d) Easy availability

(e) Attractiveness of the model

(f) Any Other(Please Specify)

Q7. Are you satisfied with the service / after –sale- service ? (a) Yes

(b) No

Q8. (I)

Are you satisfied with the brand or model you bought? Yes 

(II)

No 

If no then tick as many as possible:(a) Poor performance



(b) Poor after sale service



(c) Model looks obsolete



(d) Picture quality



(e) Any other (specify)



(III) If yes tick as many as possible:(a) Good performance



(b) Good after sale service



(c) Picture quality



(d) Better looks



(e) Any other

Q9.

`



Rank the following according to your preference. (a) Samsung

(b) LG

(d) Videocon

(e) Any other

(c) Sony

Q10. What attracts you more? (a) Free gifts

(b) Discount factor

DEMOGRAPHIC PROFILE : NAME: AGE: OCCUPATION: ADDRESS:

(c) Exchange offer

BIBLIOGRAPHY

The Bibliography is a list of books, magazines, journals, newspapers etc, pertinent to the research, which the researcher has consulted. 1. Philip Kotler- Marketing Management 2. DD Sharma- Research Methodology 3. Purchase Behavior For Consumer Durables unpublished MBA Research Project Report, PU, Chd. 4. Schiffman & Kanuk, Consumer behavior New Delhi,, PHI Pvt. Ltd. 5. Internet Search.