Consumer Buying Behaviour in Godrej Home Appliances

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SUMMER INTERNSHIP REPORT

ON

“Consumer Buying Behaviour of Godrej Appliances”

SUBMITTED TO

PANJAB TECHNICAL UNIVERSITY

JALANDHAR

In Partial fulfillment of the award of Degree


of

MASTER IN BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY: SUBMITTED TO:-


SUNNY JASWAL MISS SUPREET KAUR
MBA-IIIrd LECT. IN MARKETING
ROLL NO-95162239050

(2010-2011)
SATYAM INSTITUTE OF MANAGEMENT &
TECHNOLOGY

ACKNOWLEDGEMENT

I am indebted to Mr. Niladri S. Chatterjee, Dy. Manager,


Direct Sales, Appliance division, Godrej & Boyce Mfg.
Co. Ltd. mohali, for giving me an opportunity to work as a
summer project trainee in this esteemed organization. His
knowledge and experience was a great motivating factor.
This effort would not have been possible without his able,
efficient, valuable and timely advice, insights and thoughts. I
am very much thankful to sir for his valuable guidance and
support.

I take this opportunity to express my heartfelt gratitude to


my faculty guide Prof. Kailash ch. nayak, Faculty of
Marketing, Niis Institute Of Business Administration,
Biju Patnaik University Of Technology (BPUT). I am thankful
to sir for his valuable support and guidance throughout the
project.

I am also thankful to Mr.Pradeep Das, Direct sales, Godrej


Appliance for his assistance and support, I am equally
grateful to each and every member of Godrej & Boyce Mfg.
Co. Ltd. ,mohali for their whole-hearted co-operation in
completing this project in stipulated time.

I extend my sincere thanks to all Distributors, Wholesalers


who helped me for my project.

Last but not the least, I would like to thank my family


members and friends whose unbounded support facilitated
the successful completion of the project.
DECLARATION

I am Sunny Jaswal of 1st Year MBA, satyam Institute Of management and


Technology, hereby declare that the project titled
“Consumer Buying Behaviour of Godrej Appliances” was done by me under
the guidance of
Prof. Kailash Ch. Nayak, Faculty of Marketing, Biju Patnaik University, Mr.
Niladri S. Chatterjee, Dy.Manager, Direct sales,
Appliance Division, Godrej & Boyce Mfg. Co. Ltd, mohali, during 15th June,
2010 to 12th july, 2010.

I also declare that this project has not been submitted for the award of any
other degree, diploma, literature or recognition earlier.

Place :- mohali Sunny jaswal

Date:
TABLE OF CONTENT

CONTENTS PAGE NO

CHAPTER-1 EXECTIVE SUMMARY 4-5

CHAPTER-2 INTRODUCTION TO PROJECT 6-7

CHAPTER-3 INTRODUCTION TO COMPANY 8-9

CHAPTER-4 CORPORATE PROFILE 10-16

CHAPTER-5 GODREJ GROUP OF COMPANY 17-21

CHAPTER-6 CONSUMER BUYING BEHAVIOUR 22-34

CHAPTER-7 DATA ANALYSIS & INTERRETION 35-40

CHAPTER-8 FINDINGS 41

CHAPTER-9 RECOMMENDATION 42
CHAPTER-10 QUESTIONNAIRES 43-50

CHAPTER-11 REFERENCES 51

Executive Summary

(A) Project Title

“Consumer Buying Behaviour of Godrej Appliances in the Patiala Market”.

(B) Project Location


Godrej & Boyce Mfg. Co. Ltd. - Appliances Division, mohali.
(C) Objectives

1.To know the reach of the Godrej Appliances in different private


organizations, institution, govt., homes etc and who is their competitor, who
is the market leader etc.

2. Describe the level of involvement and types of


Consumer problem-solving processes.

3. Recognize the stages of the consumer buying


Decision process.

4. Explain how situational influences may affect


the consumer buying decision process
.
5. Understand the psychological influences that
may affect the consumer buying decision
process.
6. Be familiar with the social influences that affect
the consumer buying decision.

D) Research Methodology:-The research was mainly of primary research


consisting of descriptive research and exploratory research. The secondary
research consisted of literature search and Internet search.

1. Introduction to Project

i. Scope of Project

• The very purpose which the company has laid down has given us
enough guidelines to design the scope of the project. The project
would discuss:
• The market share of Godrej Appliances in different sectors, to find out
the competitor and market leader in this category.

• Which factor influence the selling, what the institution and consumer
looks before they purchase the Godrej Appliances?

• How Godrej can increase the market share.

ii. Limitations

• Retailers never had the luxury of time to offer, therefore our conversation
was brief. It would be unfair if we fail to mention that, some retailers were
very helpful and Cooperative.
• The institution survey sometimes experienced reduced seriousness.

• The no. of Appliances and the brand they were using sometimes
were given in approximation by the person answered as he/she was
not the concerned authority.

• The no of institution surveyed might not be the correct


representation of the market.

iii. METHODOLOGY

I did my project in two phases one was exploratory survey and other was
descriptive survey.

Exploratory Research

Exploratory Research was done before I started my descriptive research in


order to get the detailed idea about the consumer appliances industry.
This was also necessary for finding about the data related to the other brands
in appliance.
Some of the main objectives for doing Exploratory Research are mentioned
below:

• Study of literature published on consumer appliance industry.

• Identifying competitors and their details.

• Research on innovations of other brands in appliance segment.

• Observation of display of merchandise and in-store promotions of


other brands.
• In depth interview of retailers and the company representative.

Descriptive Research

Descriptive research was done in Patiala over one month. This was done
using the structured questionnaire.

INTRODUCTION

TO

THE COMPANY

We are today one of the largest engineering and consumer products company
in the country having varied interests from engineering to personal care
products. We are also one of the most respected corporate houses known for
our philanthropy and initiation of labour reforms besides being recognized
for our values of fair, transparent and ethical dealings.

Godrej India has seen both the post and pre independence days as it got
established in 1897. It started its business with locks manufacturing and at
present it a provider of wide variety of services in India, like doors, furniture,
locks, software development, beverages, chocolates, chemicals for industries,
home appliances etc.
The website on different associates gives full details on the dealers, their
locations and maintenance tips on each product manufactured by Godrej
India. Godrej has captured a consumer market in India at large scale with its
brands like Soaps, Toiletries, Hair Care, Household Care, Fabric Care, Baby
Care and Keyline Brands.
Godrej and Boyce ltd deals in both the consumer products as well as
industrial products. Both have wide ranges of products in it. From appliances
to personal care in consumer products while the storage solution, machine
tool service, agro products, chemicals etc comes in the industrial products
category. Recently it has announced to increase the number of retail stores
from 49 to 100 by 2010. Investment of Rs 20 crore will be made to make it a
success.
Godrej Appliances Ltd. brings out refrigerators, washing machines, air-
conditioners, microwave ovens, and DVD players in India with the latest
technology. Every consumer good comes with price range and variety to
serve absolutely all the strata of the society. Fully sensing the need and
demand of the market of IT in India Godrej Infotech Limited provides IT
solutions like the development of software, e solutions development,
customization & ERP. It also provides database outsourcing and consultancy
services

Godrej Industries ltd. manufactures Oleo chemicals. Over two dozens of


industries in India use the chemicals made by Godrej industries. They all in
all make more than hundred of such chemicals. Besides this it also produces
edible oil, vanaspati and bakery fats, and deals in medical diagnostic and real
estate. The name of this associate was Godrej Soaps Limited till March 31,
2001. It is big exporter of products to 40 different countries. Product has
quality that of international standard and yet at competitive price.
Company's' profile shows that Godrej Properties ltd a real estate arm of
Godrej Group is doing wonders in residential sector in India. it is coming up
with property project in Bangalore. The projects worth Rs. 850 corer under
the name of Godrej
Woodsman Estate. It has 840 two and three bedroom apartments with all the
modern facilities. It is trying hard to capture the residential real estate market
in Bangalore. Earlier it constructed apartment in Mumbai and Pune.

Godrej Beverages and Foods Ltd., an associate of Godrej Industries has


shaken hands with The Hershey Company of North America (leading name
in Chocolate and confectionery) to make and distribute confectionaries,
beverages and snacks across the India. Godrej Sara lee ltd. manufactures
products those save you and your loved one. Like mosquito repellents,
goodnight, hit, jet etc are manufactured by Godrej Sara Lee Limited.

Godrej Group is a name that works with quality and supply Consumer
Durable goods like doors, Almirahs, furniture, home appliances, Industrial
Products like chemicals, Real Estate Projects like Residential Apartments in
Bangalore, Pune and Mumbai, Agri Products and so on. Godrej has
workforce of approximately 20,000 to fulfill its aim and vision and has left
no stone unturned to reach at the zenith. India with 400 million populations
uses at least one product of Godrej in a day. With one more flag of Godrej
Properties in Godrej Group it will really command the real estate in India.

Corporate Profile

The Company celebrated its centenary in 1997. In 1897 a young man named
Ardeshir Godrej gave up law and turned to lock-making.

. Ardeshir went on to make safes and security equipment of the highest order,
and then stunned the world by creating toilet soap from vegetable oil.

His brother Pirojsha Godrej carried Ardeshir's dream forward, leading Godrej
towards becoming a vibrant, multi-business enterprise.
Pirojsha laid the foundation for the sprawling industrial garden township
(ISO 14001- certified) now called Pirojshanagar in the suburbs of Mumbai.

Godrej touches the lives of millions of Indians every day. To them, it is a


symbol of enduring ideals in a changing world.

Mission & Vision:-


Mission:-

• Godrej Mission is to operate in existing and new businesses which


capitalize on the Godrej brand and corporate image of reliability and
integrity.

• Godrej objective is to delight our customer both in India and abroad.

• We shall achieve this objective through continuous improvement in


quality, cost and customer service.

• We shall strive for excellence by nurturing, developing and


empowering our employees and suppliers.

• We shall encourage an open atmosphere, conducive to learning and


team work.

• Values:-
• Commitment to quality
• Customer Orientation
• Dedication & Commitment
• Discipline
• Honesty & Integrity
• Learning Organization
• Openness & Transparency
• Respect/Care & Concern for People
• Teamwork Trust

Incorporation

Established in 1897, the Company was incorporated with limited liability on


March 3, 1932, under the Indian Companies Act, 1913.

Sales-Subsidiaries and Affiliates


The Company is one of the largest privately-held diversified industrial
corporations in India. The combined Sales (including Excise Duty) of the
Company, its subsidiaries and affiliates, during the Fiscal Year ended March
31, 2008, were about Rs. 90,000 million (US$ 1,900 million).

Board of Directors

Chairman & Managing Director:- J. N. Godrej.

Other Executive Directors:- P. D. Lam, K. A. Palia.

Non-executive Directors:- A. B. Godrej, N.B. Godrej,


F. P. Sarkari, P. P. Shah,
A. Ramachandran

Shareholders

Since its inception, the Company is controlled by the GODREJ family based
in Mumbai, India. Its shares are not listed on any Stock Exchange. About
one-fourth of the Company's share capital is held by Pirojsha Godrej
Foundation, a public charitable trust.

Branches (Sales & Service) And Branded Retail Chain


(Godrej Lifespace)
• Mumbai Ahmadabad, Bhopal, Dombivli, Indore, Jabalpur, Nashik,
Pune, Raipur, Thane.

• New Delhi, Chandigarh, Faridabad, Ghaziabad, Gurgaon, Jaipur,


Jalandhar, Jammu, Kanpur, Lucknow, Noida.

• Chennai, Bangalore, Coimbatore, Hyderabad, Kochi, Secunderabad,


Trivandrum, Visakhapatnam.
• Kolkata , Bhubaneswar, Guwahati, Ranchi, Patna
The Company has a network of 60 Company-operated GODREJ
LIFESPACE Retail Stores, more than 2,200 Wholesale Dealers, and
more than 18,000 Retail Outlets. The Company has Representative
Offices in Sharjah (UAE), Riyadh (Saudi Arabia) and Guangzhou
(China-PRC).

Employees
10,200 (including 2,000 in Sales and Service)

Bankers
Central Bank of India, Union Bank of India, Citibank N.A., ICICI Bank Ltd.,
State Bank of Patiala, and Axis Bank Ltd.

Appliances

1958. 1st Indian Company to manufacture Refrigerators.


1987. Pioneered PUF (Polyurethane Foam) Technology in India.

1989. First company to introduce PUF (Polyurethane Foam).

1989. Introduces India's first and only 100% CFC, HCFC ,HFC free

refrigerators.

1989. First company to sell 10 million appliances.

1994. 1st Company in India to sell 10 million appliances.

1995. Obtains ISO 9001 Certification

.
1996. Launches Washing Machines by commissioning a new
manufacturing set-up at Shirwal –State-of-art Manufacturing Plant starts
operation at Mohali.

1997. Launches Air Conditioners - Obtains ISO 14001 certification.

2000. First Durable Company in India to launch Branded Customer


Service – SMARTCARE.

2001. Launches Pentacool Refrigerators with Revolutionary Five Sides


Cooling.
2002. 1st and only Company in India to make its Entire Refrigerator
Range Green ( 100% CFC, HCFC & HFC free).
2004. Godrej Refrigerator awarded the Super Brand Status. Declared No.
1 in Business world Consumer Delight Survey.

2005. Launches Microwave Ovens and DVD players. Declared the Most
Preferred Brand In CNBC Awaaz Consumer Awards.

2006. Launches Eon Refrigerators with Cool Shower Technology that


are adjudged the Best Design in Consumer Durables Category at Business
world NID Design Awards.
1st Company in India to introduce Steam Microwave oven.

Declared the Most Trusted Refrigerator Brand in India by


Reader’s Digest.

2007. Godrej Refrigerators win ‘Trusted Brand – Gold’ award for the
second consecutive year from Readers Digest consumer survey.

Godrej Refrigerators adjudged ‘Most Preferred Brand’ award for the


third consecutive year as per the CNBC Consumer Awaaz Survey.
GODREJ GROUP OF COMPANIES
Godrej and Boyce Mfg. Co. Ltd

Godrej & Boyce manufactures a spectrum of consumer products and


industrial products. The Consumer products include Appliances
(Refrigerators, Washing Machines, Air Conditioners, Microwaves, and DVD
Players), Locks , Furniture, Security Equipment, Office Automation,
Conferencing Solutions, and vending Machines. Industrial Products include
Storage Solutions, Automated Warehousing, Material Handling Equipment,
Process Equipment, Precision Components & Systems, Machine Tool
Service, Electrical & Electronic, Tooling, and Construction Material &
Services.

Godrej Consumer Products Ltd (GCPL)


(GCPL) Incorporated on 29th November, 2000
Godrej Consumer Products Ltd.(GCPL) is a major player in the Indian
FMCG market with leadership in personal, hair, household and fabric care
segments. The company employs 950 people and has three state-of-the-art
manufacturing facilities at Malanpur (M.P.) Guwahati (Assam) and Baddi
(H.P.).

Godrej’s focus is on providing our customers with innovative, value for


money solutions for meeting their daily needs and improving the quality of
their life. This is achieved through the brands the company markets.

Godrej are among the largest marketer of toilet soaps in the country with
leading brands such as CINTHOL, FAIRGLOW, GODREJ NO 1.
FAIRGLOW brand, India's first Fairness soap, has created marketing history
as one of the most successful innovations.

Godrej are the leader in the hair colour category in India and have a vast
product range from GODREJ RENEW COLOUR SOFT LIQUID HAIR
COLOURS, GODREJ LIQUID & POWDER HAIR DYES to GODREJ
KESH KALA OIL, NUPUR based Hair Dyes.

Godrej Industries Ltd (GIL)


GIL was established in 1897
Godrej Industries Limited is India's leading manufacturer of oleochemicals
and makes more than a hundred chemicals for use in over two dozen
industries. It also manufactures edible oils, vanaspati and bakery fats.

GIL is a member of the Godrej Group, which was established in 1897 and
has since grown into a US$1.875 billion conglomerate.

The company was called Godrej Soaps Limited until March 31, 2001.

Thereafter, the consumer products division got de-merged into Godrej


Consumer Products Limited, and the residual Godrej Soaps became Godrej
Industries Limited.

This led to the formation of two separate corporate entities: Godrej Consumer
Products and Godrej Industries.

Besides its three businesses, Godrej Industries also runs four divisions —
Corporate Finance, Corporate HR, Corporate Audit and Assurance and
Research and Development — which operate on behalf of the entire Godrej
Group.

GIL has built a strong manufacturing base capable of delivering international


quality products at competitive prices.

It operates two plants, one at Valia in the Indian state of Gujarat and a
second at Vikhroli in suburban Mumbai. The company's products are
exported to 40 countries in North and South America, Asia, Europe,
Australia and Africa, and it leads the Indian market in the production of
fatty acids, fatty alcohols and AOS.
Godrej Products
Consumer products

Godrej Consumer Products Ltd.(GCPL) is a major player in the Indian


FMCG market with leadership in personal, hair, household and fabric care
segments. The company is among the largest marketers of toilet soaps in the
country and has a leadership position in the hair colour category in India.

1. Appliances

2. Locks

3. Furniture

4. Security equipment

5. Office automation

6. Conferencing solution

7. Soaps & personal care

8. Food

9. Aircare

10. Household insecticides

11. Housing

12. Vending machine


Industrial products
Godrej offers an entire spectrum of industrial solutions from storage to
material handling to construction to process equipment and many, many
more.

Whether clients are looking for standard equipment or custom engineering


solutions, the first name is Godrej.

1. Storage solution

2. Automated warehousing

3. Material handling equipment

4. Process equipment

5. Precision components & systems.

6. Machine tool service

7. Electrical & electronic services

8. Tooling

9. IT solution

10. PLM solution

11. Medical diagnostics

12. Agro product

13. Chemicals

14. Construction material & services.


Consumer Buying Behaviour

Possibly the most challenging concept in marketing deals with understanding


why buyers do what they do (or don’t do). But such knowledge is critical for
marketers since having a strong understanding of buyer behavior will help
shed light on what is important to the customer and also suggest the
important influences on customer decision-making. Using this information,
marketers can create marketing programs that they believe will be of interest
to customers.
As you might guess, factors affecting how customers make decisions are
extremely complex. Buyer behavior is deeply rooted in psychology with
dashes of sociology thrown in just to make things more interesting. Since
every person in the world is different, it is impossible to have simple rules
that explain how buying decisions are made. But those who have spent many
years analyzing customer activity have presented us with useful “guidelines”
in how someone decides whether or not to make a purchase.
In fact, pick up any textbook that examines customer behavior and each
seems to approach it from a different angle. The perspective we take is to
touch on just the basic concepts that appear to be commonly accepted as
influencing customer behavior. We will devote two sections of the Principles
of Marketing tutorial to customer behavior. In this section we will examine
the buying behavior of consumers (i.e., when people buy for personal
reasons) while in section 4 we will examine factors that influence buyer’s
decisions in the business market.
This tutorial includes the following topics:
1. Consumer Buying Behavior
2. Types of Purchase Decisions
3. Why Consumers Buy
4. What Influences Purchasing
5. Internal: Perceptual Filter
6. Internal: Knowledge and Attitude
7. Internal: Personality and Lifestyle
8. Internal: Roles and Motivation
9. External: Culture and Groups
10. External: Situation
11. How Consumers Buy
12. Purchase Decision Steps 1 and 2
13. Purchase Decision Steps 3, 4 and 5

Types of Consumer Purchase Decisions

Consumers are faced with purchase decisions nearly every day. But not all
decisions are treated the same. Some decisions are more complex than others
and thus require more effort by the consumer. Other decisions are failry
routine and require little effort. In general, consumers face four types of
purchase decisions:
• Minor New Purchases – these purchases represent something new to a
consumer but in the customer’s mind is not a very important purchase in
terms of need, money or other reason (e.g., status within a group).
• Minor Re-Purchases – these are the most routine of all purchases and often
the consumer returns to purchase the same product without giving much
thought to other product options (i.e., consumer is brand loyalty).
• Major New Purchases – these purchases are the most difficult of all
purchases because these are important to the consumer but the consumer
has little or no previous experience making the purchase . This type of
decision often (but not always) requires the consumer to engage in an
extensive decision-making process.
• Major Re-Purchase - these purchase decisions are also important to the
customer but the customer feels more confident in making the decision
since they have experienced purchasing the product in the past.
For marketers it is important to understand how consumers treat the purchase
decisions they face. If a company is targeting customers who feel a purchase
decision is difficult (i.e., Major New Purchase), their marketing strategy may
vary greatly from a company targeting customers who view the purchase
decision as routine. In fact, the same company may face both situations at the
same time; for some the product is new, while other customers see the
purchase as routine. The implication of buying behavior for marketers is that
different buying situations require different marketing efforts.
Why Consumers Buy

As we discussed in Part 1: What is Marketing ? customers make purchases in


order to satisfy needs. Some of these needs are basic and must be filled by
everyone on the planet (e.g., food, shelter) while others are not required for
basic survival and vary depending on the person.

It probably makes more sense to classify needs that are not a necessity as
wants or desires.

In fact, in many countries where the standard of living is very high, a large
portion of the population’s income is spent on wants and desires rather than
on basic needs.

In this tutorial when we mention the consumer we are referring to the actual
buyer, the person spending the money.

But is should also be pointed out that the one who does the buying is
not necessarily the user of what is bought and that others may be involved
in the buying decision in addition to the actual buyer.

So understanding consumer purchase behavior involves not only


understanding how decisions are made but also understanding the dynamics
that influence purchases.
What Influences Purchasing

As we discussed the decision-making process for consumers is anything but


straight forward. There are many factors that can affect this process as a
person works through the purchase decision. The number of potential
influences on consumer behavior is limitless. However, marketers are well
served to understand the KEY influences. By doing so they may be in a
position to tailor their marketing efforts to take advantages of these
influences in a way that will satisfy the consumer and the marketer
(remember this is a key part of the definition of marketing).

INFLUENCES ON CONSUMER PURCHASING


For the purposes of this tutorial we will break these influences down into
three main categories: Internal, External and Marketing. However, those
interested in learning more about customer buying activity may want to
consult one or more consumer behavior books where they will find additional
methods for explaining consumer buying behavior.
Perceptual Filter

Perception is how we see ourselves and the world we live in. However, what
ends up being stored inside us doesn’t always get there in a direct manner.
Often our mental makeup results from information that has been consciously
or unconsciously filtered as we experience it, a process we refer to as a
perceptual filter.
To us this is our reality, though it does not mean it is an accurate reflection
on what is real. Thus, perception is the way we filter stimuli (e.g., someone
talking to us, reading a newspaper story) and then make sense out of it.
Perception has several steps.
• Exposure – sensing a stimuli (e.g. seeing an ad)
• Attention – an effort to recognize the nature of a stimuli (e.g. recognizing it
is an ad)
• Awareness – assigning meaning to a stimuli (e.g., humorous ad for
particular product)
• Retention – adding the meaning to one’s internal makeup (i.e., product has
fun ads)
How these steps are eventually carried out depends on a person’s approach to
learning. By learning we mean how someone changes what they know, which
in turn may affect how they act. There are many theories of learning, a
discussion of which is beyond the scope of this tutorial, however, suffice to
say that people are likely to learn in different ways. For instance, one person
may be able to focus very strongly on a certain advertisement and be able to
retain the information after being exposed only one time while another
person may need to be exposed to the same advertisement many times before
he/she even recognizes what it is. Consumers are also more likely to retain
information if a person has a strong interest in the stimuli. If a person is in
need of new car they are more likely to pay attention to a new advertisement
for a car while someone who does not need a car may need to see the
advertisement many times before they recognize the brand of automobile.
Marketing Implication:
Marketers spend large sums of money in an attempt to get customers to have
a positive impression of their products. But clearly the existence of a
perceptual filter suggests that getting to this stage is not easy. Exposing
consumers to a product can be very challenging considering the amount of
competing product messages (ads) that are also trying to accomplish the same
objective (i.e., advertising clutter).
This can often happen due in part to competitive activity (e.g., comparison
advertisements). Finally, getting the consumer to give positive meaning to
the message they have retained requires the marketer make sure that
consumers accurately interpret the facts about the product.
Knowledge
Knowledge is the sum of all information known by a person. It is the facts of
the world as he/she knows it and the depth of knowledge is a function of the
breadth of worldly experiences and the strength of an individual’s long-term
memory. Obviously what exists as knowledge to an individual depends on
how an individual’s perceptual filter makes sense of the information it is
exposed to.
Marketing Implications:
Marketers may conduct research that will gauge consumers’ level of
knowledge regarding their product. As we will see below, it is likely that
other factors influencing consumer behavior are in large part shaped by what
is known about a product. Thus, developing methods (e.g., incentives) to
encourage consumers to accept more information (or correct information)
may affect other influencing factors.

Attitude
In simple terms attitude refers to what a person feels or believes about
something. Additionally, attitude may be reflected in how an individual acts
based on his or her beliefs. Once formed, attitudes can be very difficult to
change. Thus, if a consumer has a negative attitude toward a particular issue
it will take considerable effort to change what they believe to be true.
Marketing Implication:
Marketers facing consumers who have a negative attitude toward their
product must work to identify the key issues shaping a consumer’s attitude
then adjust marketing decisions (e.g., advertising) in an effort to change the
attitude.
For companies competing against strong rivals to whom loyal consumers
exhibit a positive attitude, an important strategy is to work to see why
consumers feel positive toward the competitor and then try to meet or beat
the competitor on these issues. Alternatively, a company can try to locate
customers who feel negatively toward the competitor and then increase
awareness among this group.
Personality
An individual’s personality relates to perceived personal characteristics that
are consistently exhibited, especially when one acts in the presence of others.
In most, but not all, cases the behaviors one projects in a situation is similar
to the behaviors a person exhibits in another situation. In this way
personality is the sum of sensory experiences others get from experiencing a
person (i.e., how one talks, reacts). While one’s personality is often
interpreted by those we interact with, the person has their own vision of their
personality, called self concept, which may or may not be the same has how
others view us.
Marketing Implication:
For marketers it is important to know that consumers make purchase
decisions to support their self concept. Using research techniques to identify
how customers view themselves may give marketers insight into products
and promotion options that are not readily apparent. For example, when
examining consumers a marketer may initially build marketing strategy
around more obvious clues to consumption behavior, such as consumer’s
demographic indicators (e.g., age, occupation, income). However, in-depth
research may yield information that shows consumers are purchasing
products to fulfill self-concept objectives that have little to do with the
demographic category they fall into (e.g., senior citizen may be making
purchases that make them feel younger). Appealing to the consumer’s self
concept needs could expand the market to which the product is targeted.
Lifestyle
This influencing factor relates to the way we live through the activities we
engage in and interests we express. In simple terms it is what we value out of
life. Lifestyle is often determined by how we spend our time and money.
Marketing Implication:
Products and services are purchased to support consumers’ lifestyles.
Marketers have worked hard researching how consumers in their target
markets live their lives since this information is key to developing products,
suggesting promotional strategies and even determining how best to
distribute products. The fact that lifestyle is so directly tied to marketing
activity will be further examined as we discuss developing target market
strategies (See Part 5 – Targeting Markets).
Roles
Roles represent the position we feel we hold or others feel we should hold
when dealing in a group environment. These positions carry certain
responsibilities yet it is important to understand that some of these
responsibilities may, in fact, be perceived and not spelled out or even
accepted by others. In support of their roles, consumers will make product
choices that may vary depending on which role they are assuming. As
illustration, a person who is responsible for selecting snack food for an office
party his boss will attend may choose higher quality products than he would
choose when selecting snacks for his family.
Marketing Implication:
Advertisers often show how the benefits of their products aid consumers as
they perform certain roles.
Typically the underlying message of this promotional approach is to suggest
that using the advertiser’s product will help raise one’s status in the eyes of
others while using a competitor’s product may have a negative effect on
status.
Motivation
Motivation relates to our desire to achieve a certain outcome. Many internal
factors we have already discussed can affect a customer’s desire to achieve a
certain outcome but there are others.
For instance, when it comes to making purchase decisions customers’
motivation could be affected by such issues as financial position (e.g., can I
afford the purchase?),
time constraints (e.g., do I need to make the purchase quickly?), overall
value (e.g., am I getting my money’s worth?), and perceived risk (e.g., what
happens if I make a bad decision).
Marketing Implication:
Motivation is also closely tied to the concept of involvement, which relates to
how much effort the consumer will exert in making a decision. Highly
motivated consumers will want to get mentally and physically involved in the
purchase process
. Not all products have a high percentage of highly involved customers
(e.g., milk) but marketers who market products and services that may lead to
high level of consumer involvement should prepare options that will be
attractive to this group. For
instance, marketers should make it easy for consumers to learn about their
product (e.g., information on website, free video preview) and, for some
products, allow customers to experience the product (e.g., free trial) before
committing to the purchase.
EXTERNAL INFLUENCES
Consumer purchasing decisions are often affected by factors that are outside
of their control but have direct or indirect impact on how we live and what
we consume.
Culture
Culture represents the behavior, beliefs and, in many cases, the way we act
learned by interacting or observing other members of society. In this way
much of what we do is shared behavior, passed along from one member of
society to another. Yet culture is a broad concept that, while of interest to
marketers, is not nearly as important as understanding what occurs within
smaller groups or sub-cultures to which we may also belong. Sub-cultures
also have shared values but this occurs within a smaller groups. For instance,
sub-cultures exist where groups share similar values in terms of ethnicity,
religious beliefs, geographic location, special interests and many others.
Marketing Implication:
As part of their efforts to convince customers to purchase their products,
marketers often use cultural representations, especially in promotional
appeals. The objective is to connect to consumers using cultural references
that are easily understood and often embraced by the consumer. By doing so
the marketer hopes the consumer feels more comfortable with or can relate
better to the product since it corresponds with their cultural values.
Additionally, smart marketers use strong research efforts in an attempt to
identify differences in how sub-culture behaves. (e.g., new products, new
sales channels, added value, etc.).
Other Group Membership
In addition to cultural influences, consumers belong to many other groups
with which they share certain characteristics and which may influence
purchase decisions. Often these groups contain opinion leaders or others who
have major influence on what the customer purchases. Some of the basic
groups we may belong to include:
• Social Class – represents the social standing one has within a society
based on such factors as income level, education, occupation
• Family – one’s family situation can have a strong effect on how
purchase decisions are made
• Reference groups – most consumers simultaneously belong to many
other groups with which they associate or, in some cases, feel the need to
disassociate.

Marketing Implications:
Identifying and understanding the groups consumers belong to is a key
strategy for marketers. Doing so helps identify target markets, develop new
products, and create appealing marketing promotions to which consumers
can relate. In particular, marketers seek to locate group leaders and others to
whom members of the group look for advice or direction.
These opinion leaders, if well respected by the group, can be used to gain
insight into group behavior and if these opinion leaders accept promotional
opportunities could act as effective spokespeople for the marketer’s products.
Situation
A purchase decision can be strongly affected by the situation in which people
find themselves. Not all situations are controllable, in which case a consumer
may not follow their normal process for making a purchase decision.
For instance, if a person needs a product quickly and a store does not carry
the brand they normally purchase, the customer may choose a competitor’s
product.
Marketing Implications:
Marketers can take advantage of decisions made in uncontrollable situations
in at least two ways. First, the marketers can use promotional methods to
reinforce a specific selection of products when the consumer is confronted
with a particular situation. For example, automotive services can be
purchased that promise to service vehicles if the user runs into problems
anywhere and at anytime. Second, marketers can use marketing methods that
attempt to convince consumers that a situation is less likely to occur if the
marketer’s product is used. This can also be seen with auto products, where
marketers explain that using their product will prevent unexpected damage to
their vehicles.
How Consumers Buy
So now that we have discussed the factors influencing a consumer’s decision
to purchase, let’s examine the process itself. This process is presented in a
sequence of 5 steps as shown below.
However, whether a consumer will actually carryout each step depends on
the type of purchase decision that is faced. For instance, for minor re-
purchases the consumer may be quite loyal to the same brand, thus the
decision is a routine one (i.e., buy the same product) and little effort is
involved in making a purchase decision. In cases of routine, brand loyal
purchases consumers may skip several steps in the purchasing process since
they know exactly what they want allowing the consumer to move quickly
through the steps. But for more complex decisions, such as Major New
Purchases, the purchasing process can extend for days, weeks, months or
longer. So in presenting these steps marketers should realize that, depending
on the circumstances surrounding the purchase, the importance of each step
may vary.

1. Need/Want/Desire is Recognized
In the first step the consumer has determined that for some reason he/she is
not satisfied (i.e., consumer’s perceived actual condition) and wants to
improve his/her situation (i.e., consumer’s perceived desired condition). For
instance, internal triggers, such as hunger or thirst, may tell the consumer that
food or drink is needed.
External factors can also trigger consumer’s needs. Marketers are particularly
good at this through advertising, in-store displays and even the intentional
use of scent (e.g., perfume counters).
At this stage the decision-making process may stall if the consumer is not
motivated to continue (see Motivation above). However, if the consumer
does have the internal drive to satisfy the need they will continue to the next
step.
2. Search for Information

Assuming consumers are motivated to satisfy his or her need, they will next
undertake a search for information on possible solutions.
The sources used to acquire this information may be as simple as
remembering information from past experience.
(i.e., memory) or the consumer may expend considerable effort to locate
information from outside sources (e.g., Internet search, talk with others, etc.).
How much effort the consumer directs toward searching depends on such
factors as: the importance of satisfying the need, familiarity with available
solutions, and the amount of time available to search.
To appeal to consumers who are at the search stage, marketers should make
efforts to ensure consumers can locate information related to their product.
For example, for marketers whose customers rely on the Internet for
information gathering, attaining high rankings in search engines has become
a critical marketing objective.
3. Evaluate Options
Consumers’ search efforts may result in a set of options from which a choice
can be made.
It should be noted that there may be two levels to this stage. At level one the
consumer may create a set of possible solutions to their needs
(i.e., product types) while at level two the consumer may be evaluating
particular products (i.e., brands) within each solution.
For example, a consumer who
needs to replace a television has multiple solutions to choose from such as
plasma, LCD and CRT televisions. Within each solution type will be
multiple brands from which to choose. Marketers need to understand how
consumers evaluate product options and why some products are included
while others are not. Most importantly, marketers must determine which
criteria consumers are using in their selection of possible options and how
each criterion is evaluated. Returning to the television example, marketing
tactics will be most effective when the marketer can tailor their efforts by
knowing what benefits are most important to consumers when selecting
options (e.g., picture quality, brand name, screen size, etc.) and then
determine the order of importance of each benefit.

4. Purchase
In many cases the solution chosen by the consumer is the same as the product
whose evaluation is the highest. However, this may change when it is
actually time to make the purchase. The “intended” purchase may be altered
at the time of purchase for many reasons such as: the product is out-of-stock,
a competitor offers an incentive at the point-of-purchase
(e.g., store salesperson mentions a competitor’s offer), the customer lacks the
necessary funds
(e.g., credit card not working), or members of the consumer’s reference
group take a negative view of the purchase
(e.g., friend is critical of purchase).
. For example, Internet retailers have worked hard to prevent consumers from
abandoning online purchase (i.e., online shopping carts) by streamlining the
checkout process. For marketers whose product is not the consumer’s
selected product, last chance marketing efforts may be worth exploring, such
as offering incentives to store personnel to “talk up” their product at the
checkout line.
5. After-Purchase Evaluation
Once the consumer has made the purchase they are faced with an evaluation
of the decision. If the product performs below the consumer’s expectation
then he/she will re-evaluate satisfaction with the decision,
which at its extreme may result in the consumer returning the product while
in less extreme situations the consumer will retain the purchased item but
may take a negative view of the product.
Such evaluations are more likely to occur in cases of expensive or highly
important purchases.
To help ease the concerns consumers have with their purchase evaluation,
marketers need to be receptive and even encourage consumer contact.
Customer service centers and follow-up market research are useful tools in
helping to address purchasers’ concerns.
As we’ve seen, consumer purchasing is quite complex.
DATA ANLYSIS OF CONSUMER SURVEY

The last step in any research program is to analyses and


interprets the collected data with the help of appropriate
tools. Unless and until the collected data are not analyzed
and interpret the data is not of any use so the analysis and
interpretation part of the study is most important. The
analysis of the data collected in present study is as follows:

Table No. 5.1 Customers already used any product of Godrej

Customer are Yes No


already using
58% 42%
product of Godrej

Figure No. 5.1 Customers already used any product of Godrej


Interpretation:- As per our market survey most of the 58%customer said
that they already used electronics product of Godrej.

Table No. 5.2 Most preferable customer brand

Customer Videoco LG Samsun Godrej


preference n g
brand
16% 35% 22% 27%

Figure No. 5.2 Most preferable customer brand


Interpretation:-From the above diagram, LG is most preferable brand
among all the brands and being a market leader with 35%.after that godrej
followed the leader with 27%.

Table No. 5.3 Reason for purchasing a product

Reason for Price Servic Brand Feature Influenc


purchasing e image s e by
a product others
28 18 22 20 12

Figure No. 5.3 Reason for purchasing a product


Interpretation:-From the above diagram, we come across that the Price is
the main factor which influences the consumer buying process. After that it is
followed by Brand image, features, service of the company. At last purchase
decision of consumer get more influence by the others.

Table No. 5.4 you have any Godrej home appliances.

Godrej Water Refrigerat AC Washin DVD Micr


home purifie or g player o
appliance r Machin wave
. e

2% 40% 13% 22% 13% 10%

Figure No. 5.4 you have any Godrej home appliances


Interpretation:- It is to be found that most of the people having Godrej
Refrigerator, after that Godrej Washing machine, then they use Ac,and most
of the people are not aware of Godrej Microwave and water purifier.Thats
why it have very low percentage.

Table No. 5.5 Awareness about Godrej Home appliances

figure No. 5.5 Awareness about Godrej Home


appliances
Interpretation:- From the above table shows that 96% of people aware
about Godrej Refrigerator.70% of people knowing about the washing
machine,60% microwave,25% AC,20% DVD Player and 5% of people aware
on Water purifier.

FINDING

After completing the survey and analyzing the responses of the


persons , we came across the following facts: -

• A large number of consumer are using Godrej equipment like AC’s,


Refrigerator and are quite satisfied with the performance of the
appliances.
• Majority of the respondents in the survey were found reluctant about
giving details to us.

• Existing customers of Godrej are satisfied with after sales services, with
few exceptions.

• Customer think that brand name of the company can influence their
purchase decision.

RECOMMENDATIONS
Based on our descriptive research on retailers and institution in the Patiala
market we have some recommendations for Company. Also through whole
project duration we did some observational study and literature review and
we found that there are some factors which can help the company to build a
brand in national market.

Some of the recommendations are as follows:-


1) Company should organize free checkup camp for big institution like
educational institution, hotels and hospitals, so that it will increase the
loyalty of the institution.

2) Company should give Quotation for different slabs of different


quantity at the best possible price for consolidated quantity.

3) Competitors are giving the appliance in credit, which is one of the


main factors which determine the purchase. Companies take post dated
cheque from the institution. GODREJ should also follow the same
tactics.

4) Most of the institutions get the post sales service quickly. So it is better
to increase the number of voluntary service for differentiation.

5) Exclusive stores should be opened for GODREJ appliance similar to


GODREJ INTERIO.

6) Palm plate should be distributed with business newspaper and other


popular newspaper.

7) The company should position itself as a life style Brand through


advertisement in leading newspaper.

8) Company gives more emphasis on heavy advertising.

Questions for the survey


Dear Sir/madam, I am a MBA student from satyam Institute Of management and
technology, nokodar and doing a project on Consumer Buying Behaviour of Godrej
Appliances. Your response is highly valuable. I would be grateful if you could help me by
filling it up honestly and legitimately. I assure that any information provided will be solely
used for academic purpose and will be kept confidential. No answers are right or wrong;
give the answers which you feel are the best.

Consumer buying behavior / need analysis on appliances


We would be thankful if you share some of your valuable opinion
regarding the following questionnaire.

Name of the
Respondent

Address Tel. No

Flat/House City

Int. Name Date

Gender Occupatio
n

Q.1. Could you please tell me which age-group do you fall into?

Less than 20 1 20-35 2 36-46 3 More than 45 4


years Years Years years

Q.2. Could you please tell me what is your Qualification?


Undergraduate 1 Post graduate 3 Others

Graduate 2 Doctorate 4

Q.3. Could you please tell me what is your occupation?

Business 1 Government employee 2 Private Sector 3


employee

Others

Q.4. Could you please tell me which income group do you fall into?

Less than 1 1 3 Lakh – 5 3 More than 8 Lakh 5


Lakh Lakh

1 Lakh – 3 2 5 Lakh – 8 4
Lakh Lakh

Q.5. Could you please tell me the numbers of members in yours family?

1-2 1 3-4 2 5-6 3 6-7 4 More than 7 5

Q.6. Could you please tell me, have you ever used Godrej Refrigerator?

Yes 1 Continue No 2 Continue from


Q. p2
Q.7. Could you please tell me, how did you come to know about Godrej
Refrigerator?

Print media (News paper, 1 Internet 3 Friends 5


Magazine)

Television advertisement 2 Dealer/distribut 4 Others


or

Q.8. Could you please tell me, do you think that Godrej Refrigerator are value
for money?

Yes 1 No 2

Q.9. Could you please tell me , since how long have you been using Godrej
Refrigerator?

Less than 1 1 6 month – 1 3 More than 5 years 5


month year

1 month – 6 2 1 year – 5 4
month years

Q.10. Could you please tell me, which one of the following factors influenced
you to choose the godrej Refrigerator?

Price 1 Income level 3 Friends advice 5


Prestige 2 Image 4 Features 6

Q.11. could you please, rank the following characteristics of Refrigerator, Rank
1 being the highest
Design

Quality

Price

Features

Brand name

After sale service

Q.12. Could you please tell me, how far is Godrej show room from your house?

0 - 1 km 1 1 – 3 kms 2 3 – 5 kms 3 Above 5 kms 4

Q.13. Could you please tell me, if you get an opportunity to buy a new
Refrigerator, will you prefer Godrej Refrigerator again?

Yes 1 No 2

Q.14. Could you please tell me, do you recommend Godrej Refrigerator to
your friends and relatives?

Yes 1 No 2

Q.15. Which other appliances of Godrej are you aware of?

Air – condition Microwave

Washing Machine DVD players


Q.16. How did you come to know about these products?

News paper Ads TV Ads

Display at shop Seen at friend place

Others

Thank you !!
If coded “No” in Q.6, ask the following questions.
Q.1. which other appliances of Godrej are you aware of?

Air – condition Microwaves

Washing machine DVD players

Q.2. How did you come to know about these products?

Newspaper Ads TV ads

Display at shop Seen at friend place

Others

Q.3. Could you please tell me, which brand of refrigerator are you using?

LG Videocon Akai

Samsung Whirlpool Electrolux

Others

Q.4. Did you get a chance to see the Godrej Appliances when you were
buying?

Yes 1 No 2

Q.5. Could you please tell me the reason for using this particular brand?
Design 1 Quality 2 Brand name 3

Price 4 Features 5 After Sale service 6

Dealer Advice 7 Friends 8 Offer/Scheme 9


Advice

Others

Q.6. Could you please share your experience with the Refrigerator?

Excellent 1 Good 2

Average 3 poor 4

Q.7. Could you please tell me, will you like to buy Godrej appliances in future?

Yes 1 No 2

Q.8. Do you like Godrej appliances Advertisements?

Excellent 1 Good 2

Average 3 Poor 4

Q.9. Can you remember the model/Actor in Godrej Advertisement?

Kajol 1 Preeti Zinta 2

Katrina 3 Abhishek Bachaan 4


Thank you !!

REFERENCES

1. Kotler, Philip and Keller, K.L. (2007), “Marketing


management
2. Electronic Reference: Official website of GODREJ

www.godrej.com

www.godrejappliances.com

www.godrejdirect.com

http://.wikipedia.org/wiki/Bhubaneswar

http://www.google.com

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