Lg Tv Project.docx

Executive summery Title – CONSUMER BEHAVIOUR TOWARDS LG TELEVISION IN BHATKAL INTRODUCTION The report on consumer behaviour of LG television , consumer physchology is most important to study of consumer to know how people behave while purshasing, using and disposing the product and services.its necessary for marketer to know the buying behaviour of the consumer before marketing the product and services in order to be a successful marketer.

The objectives of report were as follows: The primary objective of the study is to know about the consumer behavior towards the LG TELEVISION. To know the popularity of LG television in Bhatkal city. To know the market share of LG television in Bhatkal city. To know the satisfaction level of current user of LG television.

Research was undertaken by following the below research methodology: Research problem Research design – Descriptive. Sample Universe – Bhatkal. Sample frame : House wives. Sample unit – Each household in 4 mojor area. Nawayeth colony, Madina colony, Azad nager, Bhatkal town. Sampling Technique – convience sampling method used. Desire sample size – A sample size of 100 respondent was specified. Research instrument – structured questionnaire.

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The key findings of report was as follows :

 Through the survey it was found that 95% of the respondents are having TV in their home.  The research shows that 44% of respondents own LG television.  The survey shows that reason buying the LG television is its quality and after sales service.  Through massive advertisement consumer are influence to purchase and switching their brand to LG.  As per survey report shows 36% of respondent buy LG television because of quality and 32% of respondent buy due to brand image.  By conducting survey it was found that there was only one service station and authorised dealer in the city due to which the customer were inconvenient.

The followings were limitation of study:

1. The present study is subjected to following LIMITATIONS 2. Times was the major limiting factor as the time allotted to conduct survey was not enough. 3. Some respondent were irresponsive. 4. The research is directly concerned with the study of consumer behavior and achieving absolute mathematical accuracy was not possible. 5. Method of data collection was through personal and therefore bias becomes a major limitation.

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INDEX

Chapter No

CONTENTS

1

INTRODUCTION Introduction to LG electronic india pvt. Ltd. Introduction to Kiran Enterprise.

COMPANY PROFILE

2

Growth trend of LG Vision of the cpmpany Strategy of the company Milestones

Page No

05 – 10 6–7 8 - 10

11 – 27 13 – 15 16 – 18 19 20 – 25

Awards 26 – 27

PRODUCT PROFILE

3

Consumer electronics Home appliances Computer product Mobile phone

4

LITERATURE REVIEW

28 – 37 31 – 33 34 – 36 36 37

38 – 48

3

Consumer behavior

39

Types of buying decision behavior

40 – 41

The buyer decision process

42 – 43

Factors influencing consumer behavior

44 – 48

5

OBJECTIVES OF THE STUDY

49 - 50

6

RESEARCH METHODOLOGY

51 - 53

7

LIMITATION

54 - 55

8

DATA ANALYSIS AND INTERPRETATION

56 - 78

9

FINDINGS

10

SUGGESTION AND CONCLUSION

81 - 82

11

APENDIX

83 - 86

12

REFERENCE

87 - 88

79 - 80

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CHAPTER – 1

INTRODUCTION 

Introduction to LG Electronic India Pvt. Ltd.



Introduction to Kiran Enterprises

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INTRODUCTION TO LG Electronic India Pvt. Ltd.

• Established In: May 1997 • Managing Director: Mr. Moon B. Shin • Corporate Office: Plot no 51, Udyog Vihar, Surajpur Kasna Road, Greater Noida (UP) • Manufacturing Units: Greater Noida (U.P.) & Pune (Maharashtra) • Corporate Website: http://www.lgindia.com LG Electronics India Pvt. Ltd. Is established in 1997 and it is wholly owned subsidiary of LG Electronics, South Korea. In India for a decade now, LG is the market leader in consumer durables and recognized as a leading technology innovator in the information technology and mobile communications business. LG is the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide reach, latest global technology and product innovation. One of the most formidable brands, LGEIL has an impressive portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT products. LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB).

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The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and 1/2 months with the commencement of operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida. In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that commences operations in October 2004. Covering over 50 acres, the facility manufactures LCD TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color Monitors. Both the Indian manufacturing units has been designed with the latest technologies at par with international standards at South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world. LG has been able to craft out in ten years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment.

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INTRODUCTION TO KIRAN ENTERPRISES KIRAN ENTERPRISES is a sole trading concern and was established on 11th of February 1992 by Mr. KIRAN N MANKAME, with an investment of Rs.3lacs. He is an eminent businessmen and great visionary. He tried his best to provide all the types of electronic goods to fulfill the esteem needs of the customer by providing them esteem products excellent services. KIRAN ENTERPRISES never look back and grew steadily in every sphere of marketing. The firm in its philosophy looks to render quality service to there customer and provide benefits by selling there products. In the year 1997 LG ELECTRONICS INDIA PVT. LTD. Has appointed them as authorized dealer in BHATKAL city. He introduces an additional capital of Rs.6 lacs to set up the LG EXCLUSIVE SHOWROOM. KIRAN ENTERPRISES is the only authorized dealer in an around BHATKAL. KIRAN ENTERPRISES has wide market coverage and large market share in and around BHATKAL, which starts from GANGOLLI-BHATKAL-KARWAR. It covers the towns like Murdeshwar, Manki, Kumta, Shiroor, Bydoor, etc. KIRAN ENTERPRISES is located in the heart of BHATKAL city opp. To K.S.R.T.C bus stand, National highway-17 and connected with well transport system, were there is generally good flow of public. KIRAN ENTERPRISES have number of competitors such as PAI INTERNATIONAL, PRITHVI ENTERPRISES, BEST SALES, SUVIDHA ELECTRONICS, CHETAN HOME APPLIANCES, etc. inspite of so many competitors

KIRAN ENTERPRISES has got a large

market share and most trusted enterprise in and around BHATKAL and has a turnover of around 35-40lacs per month. The firm has its staff in all 15 numbers of employees, 5 salesperson, 4 technician, 2 clerks, 2 delivery boys and a manager.

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Facilities provided by KIRAN ENTERPRISES: They provide various facilities to the customers to fulfill there esteem needs. The facilities provided by KIRAN ENTERPRISES are: 

0% interest finance: They provide 0% interest on purchase of goods on installment basis for the convenience of the customers.



Door to door service: They deliver the goods at customer’s door provide door to door service to the customer on the purchase of goods.



After sales service: They provide after sales service for their customers when there is any sort of major or minor problem with the products, after receiving just a call by the customer they sent there technician to tackle the problem.

Offers: Generally KIRAN ENTERPRISES gives special offers on the of various occasion especially at the time of festivals like Depawali, Ramzan, etc.

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Brands Available In Kiran Enterprises: Kiran enterprises deals with various brands, some of the major brands are

              

LG ONIDA SAMSUNG SONY VIDEOCON GODREJ ELECTROLUX SANSUI HYUNDAI PHILIP VOLTAS SHARP KENSTAR WESTER WHIRPOOL, etc

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CHAPTER - 2

COMPANY PROFILE     

Growth trend of LG Vision of the cpmpany Strategy of the company Milestones Awards

11

FINANCIAL PERFORMANCE DURING LAST DECADE

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Growth trend of LG Hyderabad, June 23 For South Korean consumer electronics major LG Electronics, India could graph the highest growth rate in terms of sales compared with its other markets in the last five months, beating global trends of slackened consumer spending due to recessionary fears. LG Electronics India Ltd (LGEIL) clocked a growth rate of 18 per cent in the last five months compared with the corresponding period of 2008, mostly driven by increase in sale of products in the refrigeration and AC segments, according to Mr Moon B. Shin, Managing Director. “We are now aiming at a 25 per cent growth in our turnover for 2009 to touch about Rs 13,000 crore. Last year (2008), we had achieved a turnover of Rs 10,730 crore,” he told presspersons on the sidelines of the launch of a new LG Shoppe here recently. The company is poised to roll out new models in LCD and GSM handset categories in the next three to six months in the domestic market.

LG India sales revenue up 50% this festive season New Delhi, Nov. 6 Durables company LG Electronics said it had posted a record sales revenue of Rs 2,535 crore for September-October, an increase of 50 per cent compared with sales revenue for the corresponding period a year-ago. This festival season LG Electronics recorded a 49 per cent growth in its home appliance business, 68 per cent in refrigerators, 60 per cent growth in washing machines and over 41 per cent in microwave ovens. The season also saw phenomenal sales, especially in the display category, which includes conventional CRT TV and flat panel displays (PDPs, LCDs and flat screen TVs). LG’s contribution in consumer electronics category this festive season alone has seen a growth of 39 per cent over the corresponding period last year.

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“The festive season has seen LG Electronics continue to generate significant growth with a portfolio of products spread across the widest variety of price points in the company’s history. “We have introduced high-end products that not only provide the right technology but also suit the new age lifestyles of Indian consumer, this also confirms consumers’ shifting preferences towards exercising affirmative choice to buy high quality reliable products rather than bargain hunting,” said Mr Moon B. Shin, Managing Director, LGEIL

Major market players       

Sumsung whirlpool Sony Philips Onida Voltas kenstar

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Market share of LG in India

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VISION OF THE COMPANY

LG Electronics vision for the 21st century is to become a true global digital leader through fast growth and fast innovation and to be known as a company who can make its worldwide customers happy through its innovative digital products and services. LG Electronics has set its mid-term and long-term goal to rank among the top 3 electronics, information, and telecommunication firms in the world by2010. We aim to utilize our core capabilities of product leadership, market leadership and people leadership and enhance our corporate culture of team work and fun workplace to achieve our mission of becoming “2 by 10”, that is, double our sales volume and profit by year 2010.

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LG BRAND

The values “The values are derived from the heart of LG Corporate founding principles”

Management

creating values for the customer

Philosophy

management based on esteem for human dignity

Values We are honest and responsible. We always keep the promises we make to our customers in our bid to become the world’s most trusted brand.

Innovation We provide the most innovative products and services. Our innovations are made not for technology’s sake, but for our customer’s benefit. From the most basic features to the most sophisticated technology, our products are designed to give our customer substantial value. (Technology for customers not for engineers)

People Respecting and caring for our customers is the driving force behind our philosophy in human-centric product development. Respecting and caring for our employees make this a reality.

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Passion We are very passionate about providing products and services that satisfy the unmet needs of the customers, as well as those potential needs of customers which they have yet to recognize.

Positioning Statement LG strives to enhance the customer’s life (and lifestyle) with intelligent features, intuitive functionality, and exceptional performance. Choosing LG is a form of self-expression and selfsatisfaction. Our customer will take pride in owning the amazing and take comfort in knowing he/she made a smart, informed decision.

Brand Platform The LG brand comprises four basic elements: Values, Innovation, People, and Passion.

“Life’s Good” Represents LG's Determination to Provide Delightfully Smart Products That Will Make Your Life Good.

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STRATEGY OF THE COMPANY LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products and design. The company’s goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by 2010. To achieve this, we have embraced the idea of “Great Company, Great People,” recognizing that only great people can create a great company.

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MILESTONES 1958 GoldStar (today’s LG Electronics) established 1959 Korea’s first radio produced

1962 Radio exported to the US and Hong Kong as Korea’s first

1965 Korea’s first refrigerator produced

1966 Korea’s first black & white TV produced

1968 Korea’s first air conditioner produced

1969 Korea’s first washing machine produced

1974 GoldStar Communications went public

1977 Color TV produced

1978 Exports surpassed US$100 million, a first for Korea’s electronics industry

1980 First EU sales subsidiary in Germany (LGEWG) established

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1982 Color TV plant established in the US in Huntsville, Alabama

1984 Sales surpassed 1 trillion Won

1986 European-standard VCR plant established in Germany

1989 Sales subsidiary and a joint production subsidiary established in Thailand

1990 Ireland-based design technology center established

1993 With the establishment of Huizhou subsidiary in China(LGEHZ), marketing in China took full swing

1995 Company name changed to LG Electronics and US-based Zenith acquired

1997 40-inch Plasma TV and the world’s first IC set for DTVs developed India production subsidiary (LGEIL) established

1998 World’s first 60-inch Plasma TV developed 1999 LG.Philips LCD established

2000 LG Information & Communications merged The world’s first Internet-enabled refrigerator launched Global sales of refrigerators reached the number one position

2001 Asynchronous IMT-2000 equipment commercialized The world’s first Internet enabled washing machine, air conditioner, and microwave oven launched LG.Philips Displays, a joint venture with Philips established

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2002 Under the LG Holding Company system, the Company spun off to LG Electronics (LGE) & LG Electronics Investment (LGEI) The first home network system commercialized in the global market

2003 World’s first synchronous-asynchronous IMT-2000 mobile phone developed The world’s first 76-inch Plasma TV developed CDMA mobile handsets took the largest share in the US and world CDMA market Launched the world’s first Super Multi DVD Rewriter

2004 EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada DTV transmission standard by the US ATSC All in-one LG 55-inch LCD TV, the world’s first and largest among LCD TVs, commercialized The world’s largest and first 71-inch Plasma TV commercialized The world’s first terrestrial DMB phone developed Developed Wireless Speaker Home Cinema System

2005 The world’s first DMB notebook commercialized The world’s slimmest TV commercialized The world’s largest 102-inch Plasma TV developed LG and Nortel Networks agreed to establish a joint venture for telecommunication network equipment Satellite-based DMB phone commercialized The largest share seized in the global CDMA market

2006 Launched the LG Shine, the second handset in the Black Label Series Globally launched the steam washing machine and interactive TV refrigerator Developed the world’s first 100-inch LCD TV Launched the world’s largest Full HD 102-inch Plasma TV (1080p) Developed the world’s first dual-format high-definition Disc Player& Drive

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2007 Date: 11-JUL-07

LG presents 5 mega-pixel GSM handset – KG 920 • Innovative Twist & Slim design -180° rotating camera • 4x zoom, video recording at 30 frames/sec and much more

Date

: 12-JUL-07

LG launches India’s first Bluetooth enabled car audio system • Enables user to share audio files from laptops and mobiles • First car audio ever which can double up as a hands-free device for cell phones

• Stylishly built and equipped with 3D display LCD screen Date : 17-JUL-07

LG presents technovation at its best • Announces Notebook Business as one of the growth engines for LG India •LG’s IT Division plans to grow by 30% in volume terms and 20% in revenue terms for Year 2007 • Pioneers glass- free 3D viewing in India with the launch of India’s first 3D LCD monitor • Launches India’s first Notebook with Auxiliary Display and the path breaking “Desk Note”

Date: 20-JUL-07 LG Electronics completes a successful H1 2007 Achieves 20% average growth over H1sales turnover in 2006 Succeeds in further building India as an export hub with 50% growth over last year

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Date: 30-AUG-2007 LG set to dazzle India with “Shine” • Launches India’s first full metal-bodied phone from the premium Black Label mobile phones • Target to be amongst the top 3 players in the premium handsets category in India • Targets growth of 150 % by first quarter of 2008

series of

Date: 04-SEP-2007 LG Electronics launches the New Slim TV-BLACK IRIS • 30% slimmer in volume & 390 mm in depth compared to other Normal Flat TV • New Hot & Cold finish offers high quality glossy and durable finish.

picture tubes

Date: 18-SEP-2007 LG Unveils India’s first ever Digital USB Plus TV – A technological

Marvel

• Enables users to enjoy digital music, photos and movies directly from other digital devices, such as Multimedia cards, USB thumb drive,MP3 player,PCs, iPod, Cameras, Handy cams etc • Targets to further consolidate it’s market leadership in the CTV segment by aiming for 30% by 2007 year end

Date: 09-OCT-2007 LG Unveils Pearl Black LCD series in the Indian Market • Available in 32”, and 42” wide sizes • Brings together an exceptional combination of design and technology • Targets 30% market share in the FPD segment by 2007 year end • Aims to sell 5000 units by year end

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Date: 24-OCT-07 LG Electronics Bags prestigious ESC Award for Export Excellence in

2005-06

• Wins award for excellence in Exports of Electronic Hardware for 2005-2006 • Targets exports of USD 250 Mn for calendar year 2007.

Date: 24-DEC-07 •Launches its first 5 mega pixel camera phone •Viewty boasts several ‘world first’ features such as fastest recording speed and functionality •Targets growth of 200% by 2008

optimum

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Awards As LG is declared one of the most awarded brand by all. Be it the critic, the market or by you. At LG we believe each one of these awards truly belongs to you as they are reflection of your trust & satisfaction, not to mention our stringent quality control & process like 6 sigma to give you the best of the products that meets global standards. For us what matters most is you & we thank you for making us the No.1 brand. Award Name

Awarded By

Year

Most Admired Company in India

A&M Magazine

1998

Most Admired MNC

A&M Magazine

1999

No.1 Consumer Durable Company

A&M Magazine

Best Marketing Company

A&M Magazine

Most Ethieal MNC

Business World

Techies Award Best Flat Screen Monitor

Computer World

2000

3rd Largest Exporter

ESC2001

2001

Best Employer

Business Today/ Hewitt Assts Business Today/ Hewitt Assts Ernst & Young CII

Best Employer Enterpreneur of the year Gold Rating for Environmental Performance No. 1Awareness Award.

2003

Business Today

Super Achivers Award : MD LGEIL

CETMA

Green Technology Gold Award

Green Tech Foundation

Best Designer Award –Art Cool Air Conditioner VAR India User Choice Award : Monitors

Business World & NIT

Most Admired Product – Microwave

EFY

Award for IT Innovation

Business Today

Most Trusted Brand –CD Writers

DIGIT/Jasubhai Digital Media Electronics for You

EFY’s Electronics Organization of the Year Award for Television Consumer Durable Retailer of the Year

2002

VAR India 2004

2005

ICICI Bank

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Excellence in Corporate Leadership & Entreprerenural Spirit Most preferred Brand- CTV & WM Maximum Imports & Third Highest Exports

CNBC TV 18 CNBC Consumer Vote Awards CONCOR

EFY Reader’s Choice Award For Microwaves Outstanding Contribution in the field of HR

EFY

Outstanding Contribution in the field of HR

MID DAY

Top Company :CDMA Handsets

V&D

Top Company : Fixed Phones

V&D

Best in Recruiting & Staffing

RASBIC

Most Preferred Brand – CTV, WM, Computer & AC 4 P Award : Refrigerator and Air Conditioner 4P Power Brand

CNBC Awaaz Consumer Awards 4Ps Power Brand Award

Most Trusted Brand – LCD TV, Plasma TV, AC, WM, Ref, PC Maximum Exports-Consumer Electronics

CETMA

2006

CNBC Consumer Vote Awards Reader’s Digest ESC

Maximum Exports

CONCOR

First Consumer Awards – CTV, Ref, WM, AC, MWO, PC Business World Customer Loyalty Survey : Air-conditioner & Refrigerator Top Newsmaker – Consumer Durables

Times Group

Most Trusted Brand – TV, AC & HA

Super Brands

Reader’s Digest Trusted Brands Platinum Awards- Airconditioner EFY Reader’s Choice Award For IT & MWO India’s Most Trusted Brands 2007

Reader’s Digest

4 Ps Business & Marketing : India’s 100 Most Valuable Awards

Planman Consulting & ICMR Ranking

Business World & IMRB

2007

Business Today & Cirrus

EFY Enterprises Pvt. Ltd. Brand Equity

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Chapter – 3 Product Profile  Consumer electronics  Home appliances  Computer product

 Mobile phone

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PRODUCT LINE OF LG

 Consumer Electronics  Home Appliances  Computer Products  Mobile Phones

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Product Line:

Business Areas & Main Products Category

Main Products

Consumer Electronics

LCD TV , Plasma Display , Display Panel, Color Television, Home Theatre System, Music system, DVD Recorder/Player, MP3 & MP4 Player

Home Appliances Room Air Conditioner, Commercial Air Conditioner , Refrigerator, Washing Machine, Dishwasher, Microwave, Vacuum Cleaner

Computer Products

Laptop, Personal Computer, LCD monitor, CRT monitor, Optical Storage Devices

Mobile Phone

Premium trend setter phone , Camera Phone , Music Phone , Color Screen GSM Handset

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Consumer Electronics Plasma Display:

World’s first and largest 71-inch Plasma TV Model : 71PY10 - Brightness : 800cd/㎡ -Contrast : 1200:1 -Resolution : 1920 X 1080(Full HD) -Digital Comb Filter -DCDi -Sound -Audio Output(15WX2) with 6 speakers -Function -PIP/DW/POP -Split Zoom -Zoom in&out -Interface Side A/V, S-Video in DVI, RGB, RS232C, IR

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LCD TV:

Pearl Black Model: 47LB9 -Size: 47 (119 cms) -MRP: Rs 150000 -Designer series -10000:1 Dynamic Contrast Ratio -TruM – 5 millisecond response time -Spectabright – 600 cd/m2 brightness -XD Engine -Simplink

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Color Television: • Slimagic TV • Flatron TV

DIGITAL AUDIO VIDEO

• 6.1 inch AV receiver • Home Theatre System • Music System • DVD Player

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Home Appliances ROOM AIR CONDITIONER

• Split Invertor AC • Split Art Cool AC • Floor Standing AC • Multi Split AC • Hot and Cold AC • Split AC • Window AC

COMMERCIAL AC • Ductable Type AC

• Cassatte Type AC • Multi V Plus (VRF) • MPS • ECO

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REFRIGER ATOR • Side by Side Refrigerator • Frost Free Refrigerator • Direct Cool Refrigerator

WASHING MACHINE • Dish Washer • Washer Dryer • Front Load Washing Machine • Top Load Washing Machine • Semi Automatic Washing Machine

MICROWAVE OVEN • Solardom Microwave • Convection Microwave • Grill Microwave • Solo Microwave

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VACUUM CLEANER • Vacuum Cleaner

Computer Products • Notebook PC • Desktop PC • Monitor • Optical Storage Device

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MOBILE PHONE • Viewty • Shine • Dynamite • Pulse • Bullet

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Chapter - 4 LITERATURE REVIEW

   

Consumer behavior Types of buying decision behavior The buyer decision process Factors influencing consumer behavior

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Consumer Behaviour Definition: According to the American Marketing Association, Consumer Behaviour is defined as "the dynamic interaction of affect and cognition, behaviour, and environmental events by which human beings conduct the exchange aspects of their lives." More generally, Consumer Behaviour is the psychology behind Marketing and the behaviour of consumers in the Marketing environment. Cognitive Psychology and Social Psychology are the two major psychological disciplines of Consumer Behaviour. Cognitive Psychology is the study of mental behaviours. The Attention, Perception, Comprehension, and Decision Making are the various aspects of cognitive psychology that play an important role in Consumer Behaviour. Social Psychology is the study of the manner in which the personality, attitudes, motivations, and behaviors of the individual influence are influences by social groups. Today, many brand marketers and advertisement agencies believe that one-to-one marketing is a key ingredient in the marketing mix. They share the opinion that adding a large dose of up close and personal interaction sparks consumer behaviour. Consumer behaviour Study of how people behave when obtaining, using, and disposing of products and services. Consumer jury test a method of testing advertisements that involves asking consumers to compare, rank, and otherwise evaluate the advertisement

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TYPES OF BUYING-DECISION BEHAVIOUR Consumer decision making varies with the type of buying decision. The decisions to buy shampoo, a cricket bat, a digital television, a new car are all very different. Complex and expensive purchases are likely to involve more buyer deliberation and more participants. It consist of four different buying behaviour, i.e. Complex buying behaviour, DissonanceReducing buying behaviour, Habitual buying behaviour, and Variety-Seeking buying behaviour.

High involvement

Significant differences Between brands

Few differences between brands

Low involement

Complex

Variety-Seeking

Buying

Buying

Behaviour

Behaviour

DissonnanceReducing

Habitual

Buying Behaviour

Behaviour

Buying

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Complex Buying Behaviour: Complex buying behaviour involves three steps. First, the buyer develops beliefs about the product. Second, he or she develops attitudes about the product. Third, he or she makes a thoughtful choice. Consumers engage in complex buying behaviour when they are highly involved in purchases and aware of significant differences among brands. This is usually the case when the product is expensive, bought infrequently, risky, and highly self-expensive.

Dissonance-Reducing Buying Behaviour: Sometimes the consumer is highly involved in a purchase but sees little difference in brand. The high involvement is based on the fact that the purchase is very expensive, infrequent, and risky. If the consumer finds quality differences in the brands, he or she might go for the higher price. If the consumer finds little difference, he or she might simply buy on price or convenience.

Habitual Buying Behaviour: It occurs under the conditions of low consumer involvement and little significant brand difference. They simply go to store and reach for a brand. If they keep reaching for the same brand, it is out of habit rather than strong brand loyalty. Consumers appear to have low involvement most low-cost, frequently purchased products.

Variety-Seeking Buying Behaviour: Consumer undertakes variety-seeking buying behaviour in situations characterized by low involvement but significant brand differences. Here, consumers often do a lot of brand switching. Brand switching occurs for the sake of variety rather than dissatisfaction.

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The buyer decision process The buyer decision process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Clearly, the buying process starts long before actual purchase and continues long after. Marketers need to focus on the entire buying process rather than on just the purchase decision.

Need Recognition Information Search Evaluation Of Alternatives Purchase Decision Postpurchase Behaviour

The figure implies that consumers pass through all five stages with every purchase. But in more routine purchases, consumers often skip or reverse some of these stages.

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Need Recognition: The buying process starts with need recognition–the buyer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person’s normal need– hunger, thirst, sex–rises to a level high enough to become a drive. A need can also be triggered by external stimuli.

Information Search: An interested consumer may or may not search for more information. If the consumer’s drive is strong and satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need is memory or undertake an information search related to the need.

Evaluation of Alternatives: The marketer needs to know about alternative evaluation–that is, how the consumer processes information to arrive at brand choices. Unfortunately, consumers do not use a simple and single evaluation process in all buying situations.

Purchase Decision: In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer’s purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and purchase decision. The first factor is attitudes of others, the second factor is unexpected situational factor.

Post-Purchase Behaviour: The marketer’s job does not end when the product bought. After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in post purchase behavior of interest to the marketer. If the product falls short of expectations, the customer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted.

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Factors influencing consumer behaviour Consumers do not make their decisions in a vacuum. Their purchases are highly influenced by cultural, social, personal, and psychological factors. For the most part, they are “non controllable” by the marketer but must be taken in to account. We want to examine the influence of each factor on a buyer’s behavior.

Personal Factors: The buyer’s decisions are influenced by personal factors such as the buyer’s age, life-cycle stage, occupation, economic circumstances, life style, and personality.

Age: people change the goods and services they buy over their life times. Tastes in food, clothes, furniture, and recreation are often age related.

Life cycle: the stage through which families might pass as they mature over a time. Marketers often define their target market in terms of life cycle stage and develop appropriate products and marketing plan for each stage. Traditional family life cycle stages include young singles and married couple with children. Non traditional stages such as unmarried couples, singles, marring later in life, childless couple, same sex couples, single parents, extended parents and others.

Occupation: A person’s occupation affects the goods and services bought. Marketers try to identify the occupational groups that have an above average interest in their products and services. A company can even specialize in marking products needed by a given occupational group.

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Economic circumstances: A person’s economic circumstances will affect economic choice. Marketers of income-sensitive goods watch trends in personal income, savings, and interest rates. If economic indicators point to a recession, marketers can take steps to redesign, reposition, and reprice their products closely. Lifestyle: People coming from the same subculture, social class, and occupation may have quite different lifestyles. Lifestyle is a person’s pattern of living as expressed in his or her psychographics. Lifestyle captures something more than the person’s social class or personality.

Psychological factors: A person’s buying choices are influenced by for major psychological factors-motivation, perception, learning, beliefs and attitudes.

Motivation:

A person has many needs at any given time. Some needs are biogenic; they

arise from psychological states of tension such as hunger, thirst, or discomfort. Others are psychogenic; they arise from psychological states of tension such as need of recognition, esteem, or belonging. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act.

Perception:

A motivated person is ready to act. Perception is the process of selecting,

organizing and interpreting information inputs to produce meaning. Perception depends not only on the physical stimuli, but also on the stimuli’s relation to the surrounding field and on conditions within the individual. The key point is that Perception can vary widely among individuals exposed to the same reality.

Learning:

When person act, they learn. Learning involves changes in an individual’s

behavior arising from experience. Most human behavior is learned. Learning theorists believe that Learning is produced through the inter play of derives, stimuli, cues, responses, and reinforcement.

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Beliefs and Attitudes:

Through doing and learning, people acquire beliefs and attitudes.

This in turn influences buying behavior. A belief is a descriptive though that a person holds about something. People’s beliefs about a product their buying decisions. Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy.

Social Factors: Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, and social class.

Opinion leaders:

An opinion leader is the person in informal, product-related

communication who offers advice or information about a specific product, such as which of several brands is best or how a particular product may be used.

Roles and Family Influences:

Role...things you should do based on the expectations

of you from your position within a group. People have many roles. Husband, father, employer, etc. Individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand: o

that many family decisions are made by the family unit

o

consumer behavior starts in the family unit

o

family roles and preferences are the model for children's future family

o

family buying decisions are a mixture of family interactions and individual decision making

o

family acts an interpreter of social and cultural values for the individual.

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Reference Groups:

Individual identifies with the group to the extent that he takes on

many of the values, attitudes or behaviours of the group members. Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a person’s

attitude

and

behaviour.

The degree to which a reference group will affect a purchase decision depends on an individual’s susceptibility to reference group influence and the strength of his/her involvement with the group.

Social Class:

An open group of individuals who have similar social rank. Social class

influences many aspects of our lives. Social class determines to some extent, the types, quality, and quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping, do not engage in much pre-purchase information gathering. Family, reference groups and social classes are all social influences on consumer behaviour. All operate within a larger culture

Cultural factors: Cultural factors exert a broad and deep influence on consumer behaviour. The marketer needs to understand the role played by the buyer’s culture and subculture.

Culture:

Culture is the set of basic values, perceptions, wants, and behaviors learned by a

member of society from family and other important institutions. Every group or society has a culture, and Cultural influences on buying behavior may vary greatly from country to country. International marketers must understand the culture in each International market and adapt their marketing strategies accordingly.

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Sub-culture:

Culture refers to the set of values, ideas, and attitudes that are accepted by a

homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in our country good health, education, individualism and freedom. Culture can be divided into subcultures: o

geographic regions

o

Human characteristics such as age and ethnic background.

Culture affects what people buy, how they buy and when they buy. Understanding Consumer Buying Behavior offers consumers greater satisfaction. We must assume that the company has adopted the Marketing Concept and are consumer oriented.

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Chapter - 5 OBJECTIVES OF THE STUDY

49

OBJECTIVES OF THE STUDY The primary objective of the study is to known about the consumer behavior towards the purchase of LG television. To know the popularity of LG television in Bhatkal city. To know the market share of LG television in Bhatkal city. To know the satisfaction level of current user of LG television.

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Chapter - 6 RESEARCH METHODOLOGY

51

METHODOLOGY The report has been prepared as per the information obtained from two sources. They are: 1. Primary data 2. Secondary data

1. Primary data: In primary data collection, we collect the data our self with the help of questionnaires. The key point here is that the data we collect is unique to us and our research and, until we publish, no one else has access to it. There are many methods of collecting primary data and the main methods include:

QUESTIONNAIRES: Questionnaires are a popular means of collecting data, but are difficult to design and often require many rewrites before an acceptable questionnaire is produced.

INTERVIEWS: Interviewing is a technique that is primarily used to gain an understanding of the underlying reasons and motivations for people’s attitudes, preferences or behaviour. Interviews can be undertaken on a personal one-to-one basis or in a group. They can be conducted at work, at home, in the street or in a shopping centre, or some other agreed location.

OBSERVATION: Observation involves recording the behavioural patterns of people, objects and events in a systematic manner.

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The primary data included the information collected from the: 1. Proprietor, manager and employees of Kiran Enterprise. 2. Structured questionnaire 3. Personal interview with customers

2. Secondary data: Secondary data includes a. b. c. d. e.

Data from various magazines Internet Brochures Books Newspapers etc

Research design: Descriptive Sample Universe: Bhatkal

Sampling plan: Data collected has been analyzed and interpreted by using simple percentage method and finally the data is presented in graphs and charts.

Sampling frame: House wives. Sample unit : Each house hold in 4 major area: Nawayeth colony, Madina colony, Azad nager, and bhatkal town. Sampling Technique: convience sampling method used.

Desired sample size: A sample size of 100 respondents was specified. Research instrument: structured questionnaire

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Chapter - 7 Limitation

54

Limitation 1. 2. 3. 4.

The present study is subjected to following LIMITATIONS Times was the major limiting factor as the time allotted to conduct survey was not enough. Some respondent were irresponsive. The research is directly concerned with the study of consumer behavior and achieving absolute mathematical accuracy was not possible. 5. Method of data collection was through personal and therefore bias becomes a major limitation. 6. Due to the time constraints all the customers were not covered. 7. The sample was restricted to 300 customers, which may restrict the scope and completion of study. 8. The scope of study is restricted only to the twin cities of Bhatkal. 9. Owing to their pre occupation some customers were unable to answer the complete questionnaire.

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Chapter - 8 DATA ANALYSIS AND INTERPRETATION

56

The data collected with the help of questionnaires is tabulated and analyzed.

1. Classification as per ownership of Television Que.No1: Do you own a Television?

Response

No. Of Respondents

Percentage

Yes

95

95

No

5

5

Total

100

100

57

1

No. Of Respondents 100 90 80 70 60 50 40 30 20 10 0

95

No. Of…

5 Yes

No

Percentage 5

Yes No 95

From the survey it was found that 95% of homes are having television and 5% may go for future purchase.

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2. Classification as per company-wise ownership Que.No2: which brand of Television do you own?

Company

No. Of Respondents

Percentage

LG

44

44

ONIDA

19

19

VIDEOCON

15

15

Other

22

22

Total

100

100

59

2

No. Of Respondents 50 40

No. Of Respondents

30 20

44

10

19

15

ONIDA

VIDECON

22

0

LG

Other

Percentage 22

LG 15

44

ONIDA VIDECON Other

19

From above data it was found that 44% of homes are having LG TV 19% are using Onida, 15% are using Videocon and 22% using other brands.

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3. Classification based on source of information for the purchase Que. No 3: From where did you get information about LG tv?

Source Of Information

No. Of Respondents

Percentage

ADVERTISEMENT

18

41

FRIENDS

11

25

RETAIL OUTLETS

12

27

OTHERS

3

7

TOTAL

44

100

61

3

No. Of Respondents 3

OTHERS

No. Of… 12

RETAIL OUTLETS FRIENDS

11 18

ADVERTISEMENT 0

5

10

15

20

Percentage 7

41

27

ADVERTISEMENT

FRIEND’S RETAIL OUTLETS OTHERS 25

From above data collected most users are influence by advertisement (i.e. 41%) 25% are influence by family and friends, 27% of user influence by retail outlet by visiting there.

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4. Classification based on main reason for purchasing Que.No.4: what all you take in account before taking LG tv?

Reasons For Purchase

No. Of Respondents

Percentage

QUALITY

16

36

PRICE

11

25

BRAND IMAGE

14

32

OTHERS

03

7

TOTAL

44

100

4

63

No. Of Respondents 20 15 10

14

16 11

No. Of Respondents

5 3

0 QUALITY

PRICE

BRAND IMAGE

OTHERS

Percentage QUALITY

PRICE

BRAND IMAGE

OTHERS

7% 36%

32%

25%

From the above data 36% of user go because of quality, 25% user because of price and 32% of user because of brand image. Most of user buy LG TV because of quality and brand image.

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5. Classification based on model-wise ownership Que.No.5: Which model of LG T.V do you own?

Model

No. Of Respondents

Percentage

L G FLATRON

23

52

L G GOLDEN EYE

18

41

L G LCD

02

4.5

OTHERS

01

2.5

TOTAL

44

100

65

5

No. Of Respondents 25

20 15 10

23

No. Of Respondents

18

5 2

0

1

L G FLATRON L G GOLDEN EYE L G LCD

OTHERS

Percentage 4.5 2.5

L G FLATRON 41

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L G GOLDEN EYE L G LCD OTHERS

From the above data more than 50% of user is having LG Flatron, 41% of user are having LG golden eye, 4.5% of user are having is LG LCD. More user are go for LG flatron and LG golden eye because of economic range.

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6. Classification based on size ownership Que.No.6: Which size of LG T.V do you own?

Size Of T.V

No. Of Respondents

Percentage

15 INCH

11

25

21 INCH

31

70.5

29 INCH

02

4.5

OTHERS

00

00

TOTAL

44

100

67

6

No. Of Respondents 35 No. Of…

30 25

20 15

31

10 5

11 2

0 15 INCH

21 INCH

29 INCH

0 OTHERS

Percentage 0 4.5 25 15 INCH 21 INCH 70.4

29 INCH

OTHERS

From above data 25% of user are having 15 inch and more than 70% of user are having 29 inch because it is widely accepted model television, 4.5% are using 29 inch.

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7. Classification based on duration of usage Que.No.7: Since when you are using LG T.V?

Duration

No. Of Respondents

Percentage

LESS THAN 1 YEAR

11

25

1-2 YEAR

09

20.5

2-3 YEAR

16

36.5

4 AND ABOVE

08

18

TOTAL

44

100

69

7

No. Of Respondents

20

No. Of… 15 10 16 5

11

9

8

0 LESS THAN 1 YEAR

1-2 YEAR

2-3 YEAR

4 AND ABOVE

Percentage 18

25 LESS THAN 1 YEAR 1-2 YEAR 2-3 YEAR 4 AND ABOVE

36.5

20.5

From the above data nearly about 37% user are using LG TV since 2 t o3 years, nearly about 21% are using 1 to 2 years, 25% are using less than one year and 18% are user are using 4 years and above.

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8. Classification based on level of satisfaction Que.No.8: What is your level of satisfaction?

Satisfaction

No. Of Respondents

Percentage

FULLY SATISFIED

14

32

SATISFIED

21

48

SOME WHAT SATISFIED

09

20

NOT SATISFIED AT ALL

00

00

TOTAL

44

100

71

8

NOT SATISFIED AT ALL 0

No. Of Respondents No. Of Respondents

SOME WHAT SATISFIED

9

SATISFIED

21

FULLY SATISFIED

14 0

5

10

15

20

25

Percentage 0 20

FULLY SATISFIED SATISFIED 32

48

SOME WHAT SATISFIED NOT SATISFIED AT ALL

\ From the above data 32% of users are fully satisfied with their product, nearly about 50% of users are satisfied with their product and 20% of users some what satisfied because in this most of users are new.

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9. Classification based on occupation of respondent: Que.No.9: What is your occupation?

Occupation

No. Of Respondents

Percentage

PROFESSION

28

28

BUSINESS

20

20

HOUSEWIWES

39

39

OTHERS

13

13

TOTAL

100

100

73

9

No of respondent

40

30 20 28

10

39

20

13

0 PROFESSION

BUSINESS

HOUSEWIWES

OTHERS

percentage 13

28 PROFESSION BUSINESS

39

20

HOUSEWIWES OTHERS

From the above data 39% of user are housewiwes, 28% of user are professionals, and 20% of user are belong business.

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10. Classification based on qualification of respondent: Que.No.10: What is your qualification?

Qualification

No. Of Respondents

Percentage

UP TO SSLC

31

31

GRADUATE

42

42

POST GRADUATE

09

9

OTHERS

18

18

TOTAL

100

100

75

10

No. Of Respondents OTHERS

18

POST GRADUATE

No. Of…

9

GRADUATE

42

UP TO SSLC

31 0

10

20

30

40

50

Percentage UP TO SSLC

GRADUATE

9%

POST GRADUATE

OTHERS

18%

31% 42%

From the above data 42% of user are graduate 39%of user are upto SSLC and 9% user are post graduate.

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11. Classification based on household monthly income of respondents Que.No.11: What is your household monthly income?

Household Income

No. Of Respondents

Percentage

UP TO 5000

23

23

5000-10000

35

35

10000-15000

28

28

15000 AND ABOVE

12

12

TOTAL

100

100

77

11

No. Of Respondents

50 40

No. Of…

30 20

43

33

10

19 5

0 UP TO 5000

5000-10000

10000-15000

15000 AND ABOVE

Percentage UP TO 5000

5000-10000

10000-15000

15000 AND ABOVE

5% 19%

33%

43%

From above data 43% of user belong to 5000 to 10000 income group, 33% of user are belong to 5000 income group, 19% of user are belong to 10000 to 15000 income group and 5% of user are belong to 15000 and above income group.

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Chapter – 9 FINDINGS

79

FINDINGS  Through the survey it was found that almost 95% of the respondents are having TV in their home.  The research shows that 44% of respondents own LG television.  The survey shows that reason buying the LG television is its quality and after sales service.  Through massive advertisement consumer influence to purchase and switching their brand to LG.  As per survey report shows 36% of respondent buy LG television because of quality and 32% of respondent buy due to brand image.  By conducting survey it was found that there was only one service station and authorised dealer in the city due to which the customer were inconvenient.

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CHAPTER –10 SUGGESTION AND CONCLUSION

81

SUGGESTIONS

LG electronics is perusing the vision of becoming a true global digital leader to achieve this. They need to improve quality of the product.

Survey conducted by me the customer was not satisfied by quality of color in the television contrast and sound system.

The customer are not satisfied by the after sales service provided by the company due to the delay in the after sales services provided by company.

Conclusion From the study is conducted there is a 100% awareness about television is among the population , there are 45% are LG television user in Bhatkal city.

Complex buying behavior is involved in purchase and aware of significant, difference among brands . LG has able to craft out in ten years a premium brand positioning in the Indian market and is today most preferred brand in the segment.

2006 has been landmark year for LG as the company achieved a monumental target of Rs 830 crs and reiterates its leadership in the Indian consumer durable industry.

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Chapter – 11 APPENDIX

QUESTIONNAIRE UMMER FAROOQUE R MMM 3RD SEM

83

INDIRA INSTITUTE OF MANAGEMENT PUNE Dear sir/madam, I am student of IIMP Pune. As part of the curriculum of MMM degree, I am conducting a survey to prepare project report on “CONSUMER BEHAVIOR TOWARDS LG TELEVISION”. Therefore I kindly request you to spare some of the precious time to answer the following question. 1. Name: …………………………………………………………………… Address: ……………………………………………............................... …………………………………………………………………………… Tel: ……………..........E-mail: ...…………………………………………. 2. (a)Do you own Television? Yes If no jump to Q.No 9 (b)If yes mention its brand?

No

LG

Onida

Samsung

Other (specify)……………..

If LG television proceed, else jump to Quest no.10 3. From where did you get the information about LG T.V? Advertisement

Friend

Retail outlets

Other (specify)……………

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4. What all you take in account before taking LG tv? Quality

Price

Brand image

Other (specify)………………

5. Which model of LG T.V do you own? LG Flatron

L G Flatron with Golden eye

LG LCD T.V

Other (specify)……………..

6. Which size of LG T.V do you own? 15inch

21 inches

29inch

Other (specify) …………………

7. Since when you are using LG T.V? Less than 1 year

1-2 years

2-3 years

4 and above

8. What is your level of satisfaction? Fully satisfied

Satisfied

Some what satisfied

Not satisfied at all

9. Which brand of T.V would you go for in future? LG

Samsung

Onida Other (specify) ………………..

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10.Any suggestions or recommendations on LG T.V? …………………………………………………………… …………………………………………………………… ……………………………………………………………

Few personal questions: 11.Your occupation Profession

Business

housewiwes

Other (specify) ………………..

12.Education Up to SSLC

Graduate

Post graduate

Other (specify)………………….

13.House hold monthly income Up to 5000

5000-10000

10000-15000

15000 and above

THANK YOU

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Chapter – 12 REFERENCE

87

REFERENCE TEXT BOOKS

Principles of Marketing – Philip Kotler and Gery Armstrong Marketing Research – D.D. Sharma Marketing Research – Green & Tull

Websites:

www.lg.com Www.lgindia.com

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