Anway
Anway
Anway
Dr.G.VENKATESAN
ABSTRACT
People now on the threshold of the 21st century, have begun to pay more attention to their
looks and have been swayed off their feet by the various temping and promising creams. The current
day scenario in the Indian market is a complex one. There is cut-throat competition for almost every
product. Too many brands are available for each item and the stress of selection rest with the present
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day consumers. Therefore, this study analysis the consumer attitude towards the Amway cosmetics
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products. The research study has analyzed the features of Amway cosmetic products. It is assured
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that, the study would give more information, inferences and other unique features of the Amway
cosmetic products that are going to be selected by the consumers.
Key words: Consumer, Attitude, Cosmetic, Involved
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INTRODUCTION
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I. C
Consumer is the most important person, the business revolves around the consumer, and all of
us are consumers. We consume things of daily use; we also consume and buy these products
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according to our needs, preferences and buying power. These can be consumable goods, durable
goods, specialty goods or industrial goods what we buy, how we buy, where and when we buy, in
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how much quantity we buy depends on our perception, self concept, social and cultural background
and our age and family cycle, our attitudes, beliefs values, motivation, personality social class and
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many other factors that are both internal and external to us.
Consumer Attitude
Consumer attitude can be defined as the “Decision-making process and physical activity
involved in acquiring, evaluating, using and disposing of goods and services.” This definition clearly
brings out that it is not just the buying of goods/services that receives attention in consumer attitude
but, the process starts much before the goods have been acquired or bought. A process of buying
starts in the mind of the consumer, which leads to the finding of alternatives between products that
can be acquired with their relative advantages and disadvantages. This leads to internal and external
research. Then follows a process of decision-making for purchase and using the goods, and then the
post purchase attitude which is also very important, because it gives a clue to the marketers whether
his products has been a success or not.
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Cosmetics
Cosmetics in accordance with the Oxford dictionary are defined as that which “Purposes to improve
beauty”. Cosmetics may be defined as “ A substance that you put on your face or body to make it
more attractive”.
1. “Improving only the outside appearance of structure and not its basic character. Those reforms
are not merely cosmetic.
2. Connected with medical treatment that is intend to improve a person‟s appearance” – Oxford
Dictionary
Brand Loyalty
Consumers who keep on buying our product, and who do so based on a conviction that our
product is the best. This gives protection from competition and a degree of freedom on marketing
parameters such as price and distribution. Consumers will be willing to go for the product and to pay a
price premium.
Buyer/User
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The terms buyer refers to one who buys a product. But, buyer might not be the user of the
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product. For example, Seta buys pen for her friend. Seta is a buyer but her friend is a user.
Product
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The nature of the physical and service features ate of concern here. Consumer behaviour
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influences decisions regarding the size, shape, and features of the products, its packaging, the
important aspects of service, types of warranties and service programmes, types of accessories to be
offered, etc.
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Consumer Behaviour I. C
According to Kotler and Armstrong “Consumer buying behaviour refers to the buying
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behaviour of final consumer individuals and households who buy goods and services for personal
consumption”.
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Factors Influencing Consumer Behaviour
Consumers do not make decisions in a vacuum. Their purchases are strongly influenced by
Cultural factors, Social factors, Personal factors, and Psychological factors.
The Indian consumer today wants to lead a life full of luxury and comfort. He wants to live
in present and does not believe in savings for the future. An important and recent development in
India‟s consumerism is the emergence of the rural market for several basic consumer goods.
Consumer attitude is affected by lot variables, ranging from personal motivations, needs, attitudes and
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values, personality characteristics, socio-economic and cultural background, age, sex, professional
status to social influences of various kinds exerted by family, friends, colleagues and society as a
whole.
We have developed a HSSE model that is: Health, Safety, Sophistication, Environment of
Indian consumer. In this research we have found that today‟s consumer strictly follow their culture,
tradition and values, as a result of which foreign companies were forced to give an Indian touch to
them in order to succeed in India.
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4. It is helps to know about brand awareness and the necessary changes in the Amway cosmetic
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products that the consumer feel can also be looked into.
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organizations to offer children the resources they need to live, achieve, learn, and play. Hence, the
researcher wants to study the consumer attitude and Amway cosmetics products.
Statement of Problem
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Cosmetics have gained popularity with all age groups, and the markets offers variety of
cosmetics to consumers. The media plays a vital role in helping manufacturers promote and find
market for their product.
The focus is on trying to capture the market by motivating consumers and not the market.
Hence, a complete understanding as to consumer‟s preferences and attitudes to particular brand of a
product or service is necessary
This research, therefore, aims at finding out whether the consumer give any priority to
Amway cosmetics products and how far the consumers in Salem are willing to remain loyal to
Amway cosmetics products.
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1. To find out the demographic factors and examine the preference of the Amway cosmetic
products by the respondents.
2. To analyze which factor influence the respondents to buy the Amway cosmetic products.
3. To enumerate the satisfaction level of the respondents.
4. To offer the suggestions for the improvement of quality of Amway cosmetic products.
Methodology
The validity of research mainly depends on the proper method of data collection and suitable
techniques analysis.
Research Design
The research design is the arrangement of condition for collection and analysis if data in a
manner that aims to combine relevance to the research purpose with economy in procedure. The
design used in this project study is descriptive type. The descriptive type includes surveys and fact
findings, enquiries of different kinds. The major purpose of this research is description of the state
affairs, as it exists at present.
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Sampling Technique
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Sampling is the process of obtaining information about entire populations. By examining only
a part of it, convenient sampling technique is used in this from the population sample.
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Data Collection
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The task of data collection begins after a research problem has been defined and research
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design/ plan chalked out. While deciding about the method of data collection to be used for the study,
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the researcher should keep in mind two types of data viz., primary data and secondary data.
Primary Data
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The primary data are those, which are collected a fresh and thus happened to be original in
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character. The data collected from the respondents through the structured questionnaire method. First
part of the questionnaire is about the demographic factor of the respondents and the second part of the
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questionnaire refers about the research.
Secondary Data
Secondary data are those which have already been collected by someone. Secondary data
include various journals, newspapers, magazines and websites, which provide valuable information
related to the topic.
Tools of Analysis
For the purpose of present study, a detail questionnaire was framed and information collected
from 100 respondents. With the help of collected data, the following statistical tools were applied.
The tools are like., Percentage Analysis, Chi-Square analysis, Anova (F-test), and T-test.
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4. Depending on one‟s own experience, interest, will and pleasure some respondents might
have given biased information.
5. The study is only about the consumer attitudes of selected Amway cosmetic products.
REVIEW OF LITERATURE
In order to find a research gap, earlier studies relating to the consumer behavior and purchase
decisions have been thoroughly studied. The study has been identified with personal preferences on
Amway cosmetic products which are available in the study area and various research studies are also
taken into account.
The views expressed by various authors have been reviewed in broad sense so as to confine
itself for reference.
B.C.Y. Lee (2009) Supported by the growth of information technology, the virtual stores
have increased their importance in the modern marketing environment. The purpose of this research
is to investigate the relationships between consumer attitude toward virtual stores and its correlates.
A conceptual model with four postulated hypotheses is proposed and verified by empirical data. Our
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study results show that consumer risk averseness is negatively related to consumer attitudes.
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Bettman, Jamcor R. (2006) New products special sale, color broachers, new packing style
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etc, may cause the consumer to give attention stimuli in an immediate sense”.
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Zeo Diana Draelos (2006) Discussed in their article cosmetics that are appropriate for use in
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patients with rosacea and acne must be non comedogenic, nonacnegenic, nonirritating and
hypoallergenic. This requires a basic understanding cosmetic formulation and the selection of
products that meet guidelines for sensitive skin.
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Thiru K.P.K. Unni (2005) “member of the state consumer protection council in this article
on “what public distribution system viewed” that “not adhering to the business hours, not selling all
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commodities in the same day, non-display of board informing the stock, price and the black marketing
are the inherent weakness that exists even from independence and not rectified fill date”.
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Anderson(2005) Younger seemed most favourably tend to buy foreign made or foreign brand
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apparel because they were more affected by fashion and likely to try new products and famous names,
considered symbolism important, and they were less sensitive to higher prices.
Oxenfeldt, Afred R.(2005) A buyer is emotionally created i.e., the buyer on the impulse he
doesn‟t have the enough information about the products and does not made by efforts towards
economic evaluations of the products usefulness, some of the basic foundations of impulsive buying
behavior.
Srivastav (2005) While discussing the basic psychological factors, which influence the
consumer behaviour and how to motivate them through effective advertising media holds that, In
India, “Demonstration effect” has influenced the rural consumers to go in for the product, which the
urban consumer is using.
G.David and Epstenins (2005) book introduces the major issues in “Customer law and
summaries the principle governing it, they have also discussed the rules governing customer
transaction & the policies underlying these rules”
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PROFILE OF THE COMPANY
For proper understanding of the Consumer Attitude and Amway Products, a brief analysis of
the profile of Amway Corporation becomes inevitable. It would give the necessary background for the
analysis besides it would provide an answer to the question why the consumer behave in certain ways.
Amway Corporation
Amway is one of the world‟s largest direct selling companies. Founded in 1959 by Jay Van
Andel and Rich DeVos, Amway operates in more than 80 countries and territories on six continents.
Amway offers the opportunity for people to have a business of their own based on retailing beauty,
nutritional, wellness and household products and sharing the opportunity with others who will do the
same.
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Product and Services
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More than 450 unique, high-quality products carry the Amway name in the areas of nutrition,
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wellness, beauty and home. In addition, Amway distributors in selected markets sell additional brand-
name goods through local merchandise catalogues, plus a variety of services and educational
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products. All products are backed by a customer satisfaction guarantee.
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Goverence and Management
Steve Van Andel is chairman and Doug DeVos is president. The board of directors is
controlled by the Van Andel and DeVos families.
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Affiliations
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Amway is a prominent and active member of the regional and national direct selling
associations worldwide. Doug DeVos is vice-chairman of the World Federation of Direct Selling
Associations (WFDSA), and serves on the WFDSA CEO Council. He is also past chairman of the
board of directors for the U.S. Direct Selling Association. Globally, direct selling is an industry with
more than $113 billion in estimated retail sales and more than 66 million sales people.
What does the word Amway mean? Amway is an abbreviation for "American Way" and was
coined in 1959 by company founders, Jay Van Andel and Richard DeVos. Short, unique and easy to
remember, Amway has been registered as a corporate name and trademark ever since.
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Today, Amway is a multibillion-dollar international business representing freedom and
opportunity to millions of people in more than 88 countries and territories around the world. Amway
generates US $ 9.2 billion (January - December '09) in sales at estimated retail through this global
product distribution network. We offer over 3 million Business Owners the inspiration to grow those
businesses, and we work hard to provide new and better ways for them to achieve their life goals.
Awards
As vowed by Jay Van Andel the night of the 1969 disaster, Amway rebuilt the aerosol plant
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and went on. The '70s began with sales of more than $100 million at estimated retail, and kept going
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strong. After a lengthy investigation, the FTC verified that Amway is a genuine business opportunity
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and not a "pyramid."
Corporate Credentials
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1. Amway India is a wholly owned subsidiary of US $ 10.9 billion Amway Corporation, Ada,
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Michigan, USA. Amway Corporation is one of the largest Direct Selling companies in the world.
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It has a presence in 80 countries & territories.
2. Established in 1995, Amway India commenced commercial operations in May 1998 and has
emerged as the largest Direct Selling FMCG Company. The Company has its headquarters in the
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National Capital Region of India - New Delhi.
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3. Amway has invested in excess of Rs. 200 crore in India of this; Rs. 22 crores is in the form of
direct foreign investment.
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4. Amway India has 500 full time employees and has generated indirect employment for 2000
persons at all the contract manufacturer locations.
5. The Company has provided income-generating opportunities to over 550,000 active independent
Amway Business Owners.
6. Amway India provides free and unlimited training to all its distributors to help them grow their
business. Amway India conducts over 20,000 training sessions during an average 12-month
period with an attendance of over 1.5 million Amway Business Owners and prospects.
7. Amway India recorded a sales turnover of over Rs. 2130 crore in 2011, up from Rs.1790 crores in
2010.
8. Amway India is a member of the Confederation of Indian Industries (CII) and Federation of
Indian Chambers of Commerce (FICCI).
9. The World Blind Union presented an award and citation to Amway India in 2003, for its
peerless work for the blind child.
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Products
1. At present, Amway India offers over 130 products in five categories. They are Personal care
category, Home Care category, Nutrition & Wellness category, Cosmetics and Great Value
Products.
2. With the exception of Cosmetics range (Artistry) and some products in Nutrition and
Wellness category, all Amway India products and bottles are manufactured in India.
3. The products match Amway‟s global quality standards. They carry a tamper-proof seal and a
„100 per cent Money Back Guarantee'. Amway products are environment friendly, and are not
tested on animals. Amway encourages the return of its used product bottles for re-cycling and
to prevent their misuse.
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ANALYSIS AND INTERPRETATION
The problems regarding the consumer‟s attitude and Amway Product were analyzed, and the
objectives were presented in the first chapter. The important concepts used in the study were
presented in the earlier chapter. The reviews of literature were reviewed in the second chapter. The
profile of the study area, Salem city were presented in the fourth chapter. The first chapter deals with
the Introduction and design of the study. The present chapter IV deals with the results of the primary
data collected on the consumer attitude and it is discussed with the specific objectives. The fifth
chapter deals with the summary of findings and suggestions.
In this chapter, the data collected were systemically processed, tabulated and made suitable
for analysis and interpretations. It was a one-way study from the consumer‟s attitude and Amway
products in Salem city through data collected by questionnaire. A sample of 100 consumers from
Salem city was selected. The results obtained were classified, tabulated and the following analysis
was performed in fulfilling the objectives of the study.
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Descriptive Analysis
The data collected from the respondents in Salem City were classified, tabulated and
presented in simple percentage analysis as follows.
Distribution showing respondents Occupation wise Classification
The Table No.1 describes the place wise distribution of the respondents based on the
occupation. It is classified as Business, Government, Private, Professional, Student and others.
Age and Level of Satisfaction towards Amway Cosmetic Product
Null Hypothesis:
There is no association between age of the consumers and level of satisfaction about quality.
In order to find the association between the age of the consumers and the level of satisfaction about
quality, a Chi-square test was used and result of the test is shown in the following table.1
Table No. 1
Age and Level of Satisfaction towards Amway Products- Chi -square test
Calculated ‘p’ G
Factor
Chi-square value
Degrees of
freedom R
Value
Remarks
Age 8.903a 3
.O0.031 Rejected
Sources: Primary Data R
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Interpretation:
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It is noted from the above table that the „p‟ value is less than 0.05 and hence the result is
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rejected. Hence the hypothesis „age of the consumers and the level of satisfaction are not associated‟
does not hold well. From the analysis it is concluded that there is relationship between the age group
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of the consumers and the level of satisfaction about quality.
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Monthly Income and Level of Satisfaction about Price
Null Hypothesis:
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There is no association between ages of the consumers and level of satisfaction about price.
With a view to find the degree of association between income of the consumers and level of
satisfaction about price, a two-way table was prepared and the results are shown in the table. 2
Table No.2
Monthly Income and Level of Satisfaction about Price- Chi square test
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It is noted from the table.2 that the „p‟ value is less than 0.05 and hence the result is rejected.
Hence the hypothesis „income of the consumers and the level satisfaction on price are not associated‟
does not hold well. From the analysis it is concluded that there is relationship between the monthly
income of the consumers and level of satisfaction on price towards Amway product.
Table No.3
Size of Family and Level of Satisfaction on Discount Offer- Chi square test
Calculated Degrees of ‘p’
G
Factor
Chi-square value freedom
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Value
Remarks
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Hence the hypothesis „size of family of the consumers and the level of satisfaction on discount offer
are not associated‟ does not hold good. From the analysis it is or concluded that there is relationship
between the size of the family of the consumers and level of satisfaction on discount offer towards
Amway products
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Occupation and Level of Satisfaction on Brand Image
Null Hypothesis:
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There is no association between ages of the consumers and level of satisfaction on brand
image.
With a view to find the degree of association between occupation of the respondents and level
of satisfaction on brand image, a two-way table was prepared and the results are shown in the
following table. 4
Table No.4
Occupation and Level of Satisfaction on Brand Image-Chi square test
Calculated Degrees of ‘p’
Factor Remarks
Chi-square value freedom Value
Occupation 42.202a 15 .000 Rejected
Sources: Primary Data
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Interpretation:
It is noted from the above table that the „p‟ value is less than 0.01 and hence the result is
rejected at 1% level. Hence the hypothesis „occupation of the respondents and the level of satisfaction
on brand image are not associated‟ does not hold well. From the analysis it is concluded that there is
relationship between the occupation of the respondents and level of satisfaction on brand image
towards Amway products.
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Std.
Place Mean ‘t’ Value ‘p’ Value sig.
Deviation
Rural 1.45 .500
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Urban 1.69 .480
R 1.699 0.108
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significance level. From the analysis it is concluded that there is no relationship between the place of
the respondents and level of satisfaction choice of Amway products.
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Sex and Level of Satisfaction on changes in Amway Products
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Null Hypothesis H0: There is no significant difference between mean scores of level of satisfaction
on changes in Amway products and sex of respondents.
Table No.6
Test of Hypothesis: Sex and Level of Satisfaction on Changes in Amway Product
Std.
Sex Mean ‘t’ Value ‘p’ Value sig.
Deviation
Male 1.59 .498
1.854 0.070
Female 1.76 .432
Sources: Primary Data
Interpretation:
The Null Hypothesis is accepted as the computed„t‟ value is more than 0.05 value at 5%
significance level. From the analysis it is concluded that there is no relationship between the sex of
the respondents and level of satisfaction on changes in Amway products.
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Analysis of Variance (ANOVA)
Age and Level of Satisfaction on availability of Amway products
Null Hypothesis H0: There is no significant difference among mean scores of the level of satisfaction
on availability of Amway products and different age group of respondents.
ANOVA
Source of Sum of
Df Mean Square F Sig
Variation Squares
Between groups 8.351 3 2.784
5.443 .002
Within groups 49.089 96 .511
Sources: Primary Data
Interpretation:
The Null Hypothesis is accepted as calculated F is very low. Therefore it is concluded there is
no significant difference among mean scores of the level of satisfaction on availability of Amway
product and different age group of respondents.
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Summary of Findings
This chapter deals with the summary of the findings, suggestions and conclusion of the study. The
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findings are presented on the basis of different tools of analysis such as descriptive analysis, Chi-
square analysis, analysis of variance and t-test.
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1. It is concluded that there is relationship between the monthly income of the consumers and
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level of satisfaction on price towards Amway product.
2. It is or concluded that there is relationship between the size of the family of the consumers
and level of satisfaction on discount offer towards Amway products.
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3. It is concluded that there is relationship between the occupation of the respondents and level
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of satisfaction on brand image towards Amway products.
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4. It is concluded that there is no relationship between the place of the respondents and level of
satisfaction choice of Amway products.
5. It is concluded that there is no relationship between the sex of the respondents and level of
satisfaction on changes in Amway products.
6. It is concluded there is no significant difference among mean scores of the level of
satisfaction on availability of Amway product and different age group of respondents.
7. It is concluded that there is no significant difference among mean scores of the level of
satisfaction on color of Amway products and respondents with different occupational status.
Suggestions
1. “Marketing of cosmetics starts and ends with Consumer” Hence manufacturers have to
identify the trends and try to anticipate the desires of the consumer.
2. Manufacturers must be aware of their competitors so that they may be able to penetrate the
market based on quantity, quality and consumer satisfaction which will help them to retain
their consumer.
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3. Manufacturers must try to reduce price. So that they can retain their customers there by
increase their market share.
4. Consumers must be fully aware of the cosmetic market and then make a choice. This would
increase competitions and their by increase the standard and quality of production, which
would ultimately be a boom to the consumer.
5. “Consumer rule the market” hence, it is the choice of the consumers to choose a particular
brand of cosmetic and switch over to other brands of the feel that it is unsatisfactory or
inferior or on the other hand by many remain loyal to the particular brand.
CONCLUSION
The Indian Market today has been heavily loaded with variety of cosmetics. Every second
there is a new variety of cosmetics. In such situation the consumers should be very careful in selecting
their products.
The respondents seem to have a through knowledge of the market as can be seen in the way
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they select the brands. They do not hesitate to switch brands when satisfied. It would be a warning to
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the manufacturers to make necessary rectifications. Retaining the consumers to their brands is a
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challenging task for the manufacturers. So the producers must pay much attention to the quality. Since
the consumers have a wide range of brands to select their cosmetics and hence business could be lost
if quality is not maintained.
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