A study on Consumer Buying Behaviour toward LGs oven in Surat city

INTRODUCTION
1.1 Industry Profile Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. The consumer electronics segment, which has grown at a compounded annual growth rate (CAGR) of 10% in the last five years, includes a wide range of products such as DVD, VCD/MP3 players, television sets and microwave ovens. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is

growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market with the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

1.1.1 Scope of industry

1. In term of purchasing power parity (ppp), India is the 4th largest economy in the world and overtake Japan in the near future become the 3rd largest. 2. Indian consumer durable market is expected to reach $400 billion by on 2010 India has the youngest population amongst the major countries. There are lots of people in the different income categories nearly the two third population is below the age of 35 and nearly 50% is below 25. 3. There are 56 million people in middle class, who are earning US$4,400US$21,800 a year. And there are 6 million rich household in India. 4. The upper-middle and high-income household in urban areas are expected to grew to 38.2 million in 2007 as against 14.6 million in 2000.

1.1.2 Opportunity of industry

1. In India the penetration level of white goods is lower as compared to other developing countries. 2. Unexploited rural market. 3. Rapid urbanization. 4. Increase in income level, i.e. increase in purchasing power of consumers. 5. Easy availability of finance.

1.1.3 Threats of industry

Higher import duties on row materials. Cheap imports from Singapore, China and from other Asian countries.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

1.1.4 A Brief History of the Microwave Oven Like many of today's great inventions, the microwave oven was a by-product of another technology. It was during a radar-related research project around 1946 that Dr. Percy Spencer, a self-taught engineer with the Raytheon

Corporation, noticed something very unusual. He was testing a new vacuum tube called a magnetron (we are searching for a picture of an actual 1946 magnetron), when he discovered that the candy bar in his pocket had melted. This intrigued Dr. Spencer, so he tried another experiment. This time he placed some popcorn kernels near the tube and, perhaps standing a little farther away, he watched with an inventive sparkle in his eye as the popcorn sputtered, cracked and popped all over his lab.

Brands in consumer electronics sector

MNCs LG SAMSUNG HYUNDAI TCL CHINA HAIER PHILIPS HOLLAND OSKAR KOREA NATIONAL ONIDA VIDEOCON BPL GODREJ VOLTAS IFB

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

1.2 Company profile

LG Corp. founder Koo In-Hwoi established Lak-Hui Chemical Industrial Corp. in 1947.In 1952; Lak-Hui (pronounced "Lucky", currently LG Chem.) became the first Korean company to enter the plastics industry. As the company expanded its plastics business, it established GoldStar Co., Ltd., (currently LG Electronics Inc.) in 1958. Both companies Lucky and Goldstar merged and formed Lucky-Goldstar. The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States. [Table-1]

Company profile
Type Founded Founder Headquarters Area served Key people Koo In-Hwoi (Founder) Public 1947 Koo In-Hwoi Seoul, South Korea Worldwide Koo Bon-Moo (Chairman & CEO) Yu Sig Kang (Vice Chairman & Co-CEO) Juno Cho (EVP & COO) Industry Products Revenue Net income Conglomerate Electronics, chemicals, telecommunications, engineering US$ 89.5 billion (2010) , 48.24 billion (2011) US$ 5.8 billion (2010) , 1.1 billion (2011)

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Total assets Employees Subsidiaries US$ 62.0 billion (2010) , 28.7 billion (2011) 186,000 (2009) , 29,554 (2011) LG Electronics, LG Display, LG Telecom, LG Chem., LG Life Sciences, LG Solar Energy, Website www.lgcorp.com

VISION Global Top 3 by 2010 Global Top 3 Electronic/Telecommunication company\ GROWTH STRATEGY Fast innovation, Fast growth CORE COMPETENCY Product leadership, Market leadership, People leadership CORPORATE CULTURE No excuse, we not I, Fun workplace SLOGAN "Life's Good" represents LG's determination to provide delightfully smart Products that will make your life good.

1.2.1 History of Company

The history of LG Electronics has always been surrounded by the company's desire to create a happier, better life. LG Electronics was established in 1958 and has since led the way into the advanced digital era thanks to the technological expertise acquired by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

MILESTONES

[Table-2] Year 1958 1960s 1995 1997 1998 1999 2000 2002 2004 2005 Content Founded as GoldStar Produces Korea's first radios, TVs, refrigerators, washing machines, and air conditioner Renamed LG Electronics Acquires US-based Zenith World's first CDMA digital mobile handsets supplied to Ameritech and GTE in U.S. Achieves UL certification in U.S. Develops world's first IC set for DTV Develops world's first 60-inch plasma TV Establishes LG Philips LCD, a joint venture with Philips Launches world's first Internet refrigerator Exports synchronous IMT-2000 to Marconi Wireless of Italy Significant exports to Verizon Wireless in U.S. GSM mobile handset Exports to Russia, Italy, and Indonesia Establishes market leadership in Australian CDMA market Launches world's first Internet washing machine, air conditioner, and microwave oven Under LG Holding Company system, separates into LG Electronics and LG Corporation Full-scale export of GPRS color mobile phones to Europe Establishes CDMA handset production line and R&D center in China Enters Northern European and Middle East GSM handset market Achieves monthly export volume above 2.5 million units (July) Top global CDMA producer EVSB, the next-generation DTV transmission technology, chosen to be the U.S./Canada Industry standard by the US ATSC Commercializes world's first 55" all-in-one LCD TV Commercializes world's first 71" plasma TV Develops world's first Satellite- and Terrestrial-DMB handsets Becomes fourth-largest supplier of the mobile handsets market worldwide Develops world's first 3G UMTS DMB handset, 3G-based DVBHand Media FLO DMB Phone with time-shift function and DMB notebook computer Establishes LG-Nortel, a network solution joint venture with Nortel

2001

2003

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2006 2008 LG Chocolate, the first model in LG's Black Label series of premium handsets, sells 7.5 million units worldwide Develops the first single-scan 60" HD PDP module and 100-inch LCD TV Establishes strategic partnership with UL Acquires the world's first IPv6 Gold Ready logo Launches the industry's first dual-format, high-definition disc player and drive Launches 120Hz Full HD LCD TV Demonstrated the world-first MIMO 4G-Enabled technologies with 3G LTE Won contract for GSMA's 3G campaign Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives." Posted No.1 spot in US frontloading washers in 5 consecutive quarters Unveiled the world's first Bluetooth headset combined mobile phone Unveiled the world's first Blu-ray network storage Developed the world's first LTE mobile modem chip Recorded over 100 million units of LG air conditioners in accumulated sales Became second-largest LCD TV provider worldwide Became third-largest supplier of mobile handsets market worldwide Became Global Partner and Technology Partner of Formula One

2007

2009

Awards [Table-3] Award Name Most Admired MNC No.1Consumer Durable Company Gold Rating for Environmental Performance No. 1Awareness Award Most Admired Product Microwave Most preferred Brand- CTV & WM Business Leadership Award in Consumer Durable Sector EFY Reader's Choice Awards 2008 Microwaves Awarded By A&M Magazine A&M Magazine CII Business Today EFY CNBC Consumer Vote Awards NDTV EFY Year 1999 1999 2003 2003 2004 2005 2007 2008

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Distribution and Marketing The company has number of dealers and warehouses. They have LG exclusive shops. For the marketing of the products a number of activities are followed 1) 2) 3) 4) 5) 6) 7) Exhibitions are conducted from time to time. Society and college activities are conducted. Hoarding, Posters, banners are used so as to grab the attention of the costumers. Day to day advertisement in leading newspaper. Discount at festival time. For dealer relationship they arrange dealer meeting at several time in the year LG divide dealer in gold silver etc. category to know the performance of the dealers. 8) They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG air conditioners. 9) LG also uses the radio FM for the promotion activities.

10) Also provide coupon and scratch cards for festive season.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Theoretical Background
UTIVE SUMMERY
2.1 Concept of Buying Behaviour The main purpose of Marketing is to satisfy our target customer need and wants toward the particular product or services which are our customer need. After knowing their need and wants about any product or services then need to identify their buying behaviour for buying the product or service. Decided which bases customers are purchase the product like product attractiveness lower price, Durability of Product etc. In the buying the product customer think something and do something at last movement of buying product and services so need to know the behaviour of customer for buying any product or services.

DEFINITION:-

The field of consumer behaviour studies how individuals, groups and, o rganization select, buy, use, and dispose of the goods, services, ideas, or experiences to satisfy their needs and desires. The process whereby individuals decide whether, what, when, how, from whom to purchase goods or services can be termed as the customers or the buyers behaviour.

Understanding consumer behaviour and knowing customer is never simple. Customers may say one thing but do another. They may not be in touch with their deeper motivations. They may respond to influence that change their minds at the last minute. Small companies, such as a corner grocery store, and huge corporations, such as whirlpool, stand to profit from understanding how and why their customers buy.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

M EANING:-

Almost all the products, which are available to buyers, have a number of alternative suppliers; i.e. substitute products are available to consumers, who make a decision to buy products. Therefore, a seller, most of his time, seeks buyers and tries to please them. In order to be successful, a seller is concerned with many elements like when, how, why, from, where, what, who. Who is the consumer? What do consumers buy? From where do consumes buy? Why do consumers buy? How do consumers buy? When do consumers buy? A buyer makes a purchase of a particular product or a particular brand and this can be termed product buying motives. And the reason behind the purchase from a particular seller is patronage motives. The selection or choice of the products or services by consumers greatly determines the fate of the producers. As such, the marketer must know the consumer, more and more. In order to manufacture the products, this gives them satisfaction. If one makes out the marketing programme, neglecting the consumer behaviour, one will naturally invite failure. A careful study of consumer behaviour will facilitate the marketer in determining the size, form, style, color, package, brand etc. The buyer may take a decision whether to save or spend the money. When he decides to spend, then there are many problems as to what to purchase, because needs are numerous, which leads to ranking the needs the needs in terms of priority. Then, the problems are consumption problems where to buy, how to buy, from whom to buy etc.

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Need to Understand Consumer Buying Behavior:

Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society.

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A firm needs to analyze buying behaviour for:

Buyers reactions to a firms marketing strategy has a great impact on the firms success.

The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

Objectives Determine how cultural, social, personal, and psychological factors influence consumer buying behaviour. Describe how the consumer makes a purchasing decision.

How and Why Consumers Buy Cultural factors Social factors Personal factors Psychological factors

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

2.2 Types of Consumer Buying Behaviour

Marketers also need to be aware that consumer decision making varies with the type of buying decision. The decisions to buy toothpaste, a tennis racket, a personal computer, and a new car are all very different. In general, complex and expensive purchases are likely to involve more buyer deliberation and more participants. As shown in Table 3.2, henry Assael distinguished four types of consumer buying behavior, based on the degree of buyer involvement and the degree of differences among brands

(Types of consumer buying behaviour)

I.

Complex buying behaviour applies to high-involvement products such as personal computers. Buyers may not know what attributes to consider in these products, so they do research. Knowing this, marketers can help educate buyers about product attributes, differentiate and describe the brands features, and motivate store personnel and others to influence the final brand choice.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

II. Dissonance-reducing buyer behaviour applies to high-involvement products such as carpeting. Carpeting is expensive and self-expressive, yet the buyer may consider most brands in a given price range to be the same. After buying, the consumer might experience dissonance after noticing certain disquieting features or hearing favourable things about other brands. Marketers should therefore supply beliefs and evaluations that help consumers feel good about their brand choices. III. Habitual buying behaviour applies to low-involvement products such as salt. Consumers keep buying the same brand out of habit, not due to strong brand loyalty, because they are passive recipients of information conveyed by advertising. Ad repetition creates brand familiarity rather than brand conviction. Marketers of such products can use price and sales promotions to entice new customers to try their products.

IV.

Variety-seeking buying behaviour applies to low-involvement products such as cookies. In this category, consumers switch brands often because they want more variety. The market leader will therefore try to encourage habitual buying behaviour by dominating the shelf space, keeping shelves stocked and running frequent reminder ads. Challenger firms will encourage variety seeking by offering lower prices, coupons, free samples, and ads that offer reasons for trying something new

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A study on Consumer Buying Behaviour toward LGs oven in Surat city 2.3 Buying Decision Process
There are the following consumers buying decision process. 1. Problem Reorganization: The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a particular need. By gathering information from a number of consumers, Marketers can identify the most frequent stimuli that spark an interest in a product category. They can then develop marketing strategies that trigger consumer interest 2. Information Search: The consumer tries to collect information regarding various products/services. Through gathering information, the consumer learns about completing brands and their features. Information may be collected from magazines, catalogues, retailers, friends, family members, business associations, commercial, chamber of commerce, telephone directory, trade fair etc. Marketer should find out the source of information and their relative degree of importance to the consumer. Personal Sources: Family, friends, neighbors, as quittances. Commercial Source: Advertising, sales persons, dealers, packaging, displays. Public Sources: Mass media, consumer, rating organizations. Experimental Sources: Handling, Examine, Using the product. 3. Evaluation of Alternatives: There is no single process used by all consumers or by one consumer in all buying situations. There is several decision evaluation processes, some basic concepts are: First, the consumer is trying to satisfy need. Second, the consumer is looking for certain benefits from the product solutions. The marketer must know which criteria the consumer will use in the purchase decision.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city 4. Choice of Purchasing Decision:
From among the purchase of alternatives, the consumer makes the solution. It may be to buy or not to buy. If the decision is to buy, then other additional decisions are: Which types of oven he must buy? From whom to buy a oven? How the payment to be made? And so on

The marketer up to this stage has tried every means to influence the purchase behaviour, but the choice is properly consumers. In the evaluation stage the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to but the most preferred brand. 5. Post-purchase Behaviour: After purchase the product, the consumer will experience the same level of product. The marketer's job not end when the product is buying must monitor post- purchase satisfaction, Post-purchase action, Post-purchase use and disposal. i. Post purchase satisfaction: The buyers satisfaction is a function of closeness between the buyers expectation and the product's perceiver performance. The larger the gap between expectation and performance, the greater the consumer dissatisfaction. ii. Post-purchase action: The consumer's satisfaction or dissatisfaction with the product influence subsequent behaviour. If the consumer satisfied, he or she will exhibit a higher probability of purchasing the product again. Dissatisfaction consumer may abandon and return the product. iii. Post-purchase use or disposal: The marketer should also monitor new buyers use and dispose of the product. If the consumer store the product in a close, the product is probably not very satisfying. If the consumer throws the product away, the marketer needs to know how they dispose of it; especially it can be hurt the environment.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

2.4 Factors Influencing Buyers Behaviour

A consumer buying behaviour is influence by several factors which are explained as below: 1. Cultural factors: Culture, sub culture and social class are particularly important in buying behaviour a) Culture: Culture is the most fundamental determinant of a person's wants and behaviour. The growing child acquires a set of values, perceptions, Preferences and behaviours through his or her family and other key institutions. It affects consumer boxing behaviour because different culture plays major role in buying goods. b) Subculture: Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subculture includes nationalities, religions racial groups and geographic regions. When subcultures group large and affluent enough, companies often design specialized marketing programs to serve them. Many subcultures make up important market segments. c) Social Class: Social Classes reflect not only income, but other indicators such as occupation, education and area of residence. Social Classes differ in dress, speech patterns, recreational preferences and many other characteristics. Social Classes are relatively homogeneous and enduring disunions in a society, which are hierarchically ordered and whose members share similar values, intermits and behaviour. Social classes differ in media preferences, magazines, books and TV.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

2. Social Factors: A consumer's behaviour is influenced by social factors such as reference groups, Family and social roles and statuses. a) Reference Groups: A person's reference groups consist of all the groups that have a direct or indirect influence on the person's attitudes or behaviour groups having a direct influence on a person are called membership groups. b) Family: The family is the most important consumer-buying organization in society and family members constitute the most influential primary reference groups. Marketer is interested in the roles and relative influence of the husband, wife and children in the purchase of products. c) Roles and Statuses: A person participates in many groups, family, clubs, and organizations. The person's position in each of the activities a person is expected to perform. Each role carries a status. 3. Personal Factors: A buyer's decisions are also influenced by personal characteristics. This includes the following.

a) Age and stage in the life style:

A person buys different goods and services over a life-time. Consumption is shaped by the family life-cycle. Marketer often chooses life-cycle groups as their target market. Marketers pay close attention to changing life circumstances.

b) Occupation and Economic Circumstances:

Occupation also influences a person's consumption pattern. A marketer can also specialize its products and services for certain occupational groups. A product choice

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

is greatly affected by economic circumstances: spend able income, savings and assets, debts, borrowing, power and attitudes towards spending and saving.

c) Life Style:
A life-style is a person's pattern of living in the world as expressed in activities, interests and opinions. Life style portrays the "whole person" interacting with his or her environment. Marketers search for relationships between their products and life style groups

d) Personality and self concepts:

Each person has personality characteristics that influence his or her buying behavior. By, personality, we mean a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. Personality can be a useful variable in analyzing consumer brand choices. Related to personality is a person's self-concept. 5. Psychological Factors: A person's buying choices are influenced by for major factors as above. a) Motivation: A person has many needs at any given time. 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. b) Learning: Learning involves changes in an individual's behaviour arising from experience. Most human behaviour is learned. Learning theorists believe that learning is produced through the interplay of drives, stimuli, cues responses and reinforcement. c) Perception: How to motivated person actually acts is influenced by his or her perception of situation. Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. People can

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

emerge with different perceptions of the same object because of three perceptive processes: Selective attention Selective distortion Selective retention d) Beliefs and attitude: Through doing and learning people acquire beliefs and attitudes. These in turn influence buying behaviour. A belief is a descriptive thought that a person holds about sometime peoples beliefs about a product or brand influence their buying decision process. So the marketers have to know which beliefs & attitude affect the selling of the products.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city PROBLEM DEFINITION

3.1 Problem Definition UTIVE SUMMERY

Problem identification is one of the most important parts in taking out a project report. As the problems are not indentified in correct manner a survey will not able to understand or it will be very difficult for him to bring out the proper data and information from the project will know all the problems, his work will become easier and he will come out an appropriate data. A research problem, in general, refers to some difficulty which a researcher experiences in the context of either a theoretical or practical situation and wants to obtain a solution for the same. A problem is one which requires a researcher to find out the best solution for the given problem i.e. to find out by which course of action the objective can be attained optimally in the context of a given environment.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

3.2 Scope of the Study

Researcher has selected the subject entitle Consumer buying behavior toward LGs Oven in Surat city so the scope is limited to Surat city and has not considered the entire Surat city due to the time limitation of two months. So it is difficult to approach the entire population of Surat city. So Researcher has selected 250 respondents by using convenience sampling method. My demographic analysis and interpretation based on 250 samples. Cross tabulation of respondent who are interested to buy microwave oven are 230 respondents Taken in to consideration. My project is based on knowing the consumer buying behavior of oven at Madhuram plaza.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

3.3 Objectives of the Study

1) Primary Objective: The main objective of this project is to study the consumer buying behaviour towards LGs oven in Surat city. 2) Secondary Objective: To know the buying criteria of customers when they go for purchase LGs oven. To know what is the association between brand and income, brand and status.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

3.4 Importance of the Study

It provides the required information about the consumer behavior for buying microwave Oven It will inform the management about the purchasing criteria of customer towards the Microwave Oven It makes aware to the management about the future preferences of consumer towards Oven. It State the different attribute of people which influence them for buying microwave Oven. It gives the information to the company as which is the most selling brand in the market for Oven.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

3.5 Limitations of the Study

The limitations of the study are as follows The study should cover only few area of surat city for survey. The time limit for the project is only 2 months i.e. 6th January to 6th March 2012 The study contains only convenience samples because of limited time. There are possibilities for getting wrong response from respondents. It is very difficult to collect all the information for future in short time. As the sample size is very small so the project may not give perfect result.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city RESEARCH METHODOLOGY

4.1 Introduction

UTIVE SUMMERY

Marketing research is the function which links the consumer, customer and public to the marketers through information used to identify and define marketing, opportunities and problems, generates refine and evaluate marketing actions; Monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues; designs the method for collection information manages and implements the data collection process; analysis the results and communication the findings and their implication. Research Definition: "Research is careful inquiry or examination to discover new information and relationship and to expand and to verify existing knowledge". A careful investigation or inquiry especially through search for new facts in any branch of knowledge Redman and Mory define the research as A systematized effort to gain new knowledge Research always starts with questions or a problem. Its purpose is to find answers to questions through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studies.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

4.2Research Design
"Research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance." - Kelinger From definition it is evident that research design is more or less a blueprint of research A research design is the specification of the methods and procedures for acquiring the information needed. It is the overall operational pattern or framework of the project that stipulates what information is to be collected from which sources by what procedures. - Green and Tull There are mainly three types of research design which are as follows: a) Exploratory b) Descriptive c) Casual a) Exploratory research is focus on the discovery of ideas. Exploratory research is carried out to define problems and developed hypothesis to be tested later. An exploratory study is generally based on the secondary data that are reading available. It does not have a formal and rigid design as the researcher may have to change his focus of direction, depending on the availability of new ideas and relationship among variables. b) Descriptive research is a fact- finding investigation. It is more specific than an exploratory study, as it has focus on particular aspects or dimension for formulating more sophisticated study. but it can only describe thewho , what, when, where and how of situation, not what caused it. The main purpose of descriptive study is to describe market characteristics or function. There are two types of descriptive research design; Cross sectional study: Longitudinal study:

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

c) Casual research helps in determined cause and effect relationship. Between two or more variables. The present study seeks to find out the consumers attitude towards buying of microwave oven. The study also aims at finding out the bottlenecks and the drawbacks of the marketing set up of Madhuram Plaza .So this makes the study a descriptive one.

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4.2 Research instruments

Research instruments is the tool by which the researcher can do research on specific problems or objective. The most popular research instruments for collections data is "Questionnaire" for a particular investigation. It is simple for a molded set of questions presented to respondents for their answers. Due to this flexibility, it is most common instrument used to collect the primary data. During the pre-testing of questionnaire, Researcher seen the reaction of respondents and suggestions required to make change in research instrument. In the research, questionnaire contains three types of questions: Open-ended Questions: It is helpful in knowing what is uppermost in the mind of the respondent. It gives complete freedom to the respondent. Dichotomous Questions: It has only two answers in the form 'Yes' or 'No', 'True' or 'False', 'Use' or 'Do not use'. So the respondent does not feel boring during the interview. Multiple-Choice Questions: In this, the respondent is offered two or more choice.

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4.4 Data Collection Method

The sources of data collection methods are as follows: A) Primary data: The primary data can be collected by three methods as: (a) Questionnaire Method (b) Observation Method (c) Experimental Method In this survey, Researcher has used questionnaire for collecting primary data. Questionnaire Method: A questionnaire method was prepared to test the sample from population. The consumers were approached individually as well as in small group by the researcher in record book. The surveys consist of gathering data by interview is a limited no. of people selected from a group. The focus group conducted to many parameters evolved on which the questionnaire was frame. This was later debugged with the help of role-play among the students to find out the loophole in the questionnaire and role-play also helped to carry-out the research effectively and efficiently. Finally the questionnaire was approved by the organization and survey was conducted to collect the data. B) Secondary data: Secondary data are these which are already collected by someone for some purpose and are available for the present study. For this study, Secondary data are already collected by the company's records and other library's books. When the secondary data are insufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as a basis for comparison with the primary data that have been collected by questionnaire.

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4.5 Sampling Plan

Sampling is processes of obtaining the information about the entire population by examine a part of it. The effectiveness of the research depends on the sample size selected for the survey purpose. a) Define the Population:
Element : Potential user of microwave oven

Sampling unit : User of microwave oven Extent Survey Time : Surat city : 6th January to 6th March, 2012.

b) Sample size: For the purpose of proper survey, there is need of perfect research instruments to find out sample size for more accurate result about buying behavior of oven. Statically formula for sample size is: n=p x q (z/e) ^2 Where, n = sample size P = Probability of interested customer q=1-P e = Tour able error z = level of confidence n = p x q (z/e) ^2 = 0.80 x 0.20 (1.96 / 1.05) ^2 = (0.16) (39.2) ^2 = 0.76 x 156.64 = 245.86 From calculation M = 245.86 is found but n = 250 has been taken for simplicity of the study.

Prof. V. B. Shah Institute Of Management-VNSGU

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

c) Sample Procedure: Method for choosing the representative respondents call for in this stage, i.e., how should the respondents is chosen? The sampling procedure indicates how the sample units (250) are to be selected. The researcher has used Convenience Sampling Method for surveying.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city DATA ANALYSIS UTIVE SUMMERY
Q:-1 Do you have oven? [Table-4] Response Yes No Total No. of Respondents 171 79 250 Percentage 68.40% 31.60% 100%

[Chart-1]

Do you have oven?

No 32%

Yes 68%

Interpretation:The above chart represents 68.40 %( i.e., 171 out of250) respondents have microwave oven and 31.60 %( i.e., 79 out of 250) respondent dont have any microwave oven.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

(II) If no, then would you like to purchase oven in future? [Table-5] Response Yes No Total No. of Respondents 59 20 79 Percentage 74.68% 25.32% 100%

[Chart-2]

If no, then would you like to purchase oven in future?

Yes, 74.68% No, 25.32%

Interpretation:From the above chart, researcher found that out of 79 respondent 74.68 % (i.e., 59) respondent like to purchase oven in near future. While out of 79 respondent 25.32% (i.e., 20) respondents are not interested to purchase oven in future.

Prof. V. B. Shah Institute Of Management-VNSGU

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-2 Which other branded companies you are aware of oven in the market? (Choose multiple answers)

[Table-6] Company Name LG Godreg Samsung Sharp Panasonic Electrolux Sanyo Others Total [Chart -3] No. of Respondents 210 168 175 49 106 69 57 77 230 Percentage 91.30% 73.04% 76.09% 21.30% 46.09% 30.00% 24.78% 33.48% 100%

Which other branded companies you are aware of oven in the market? (Choosemultiple answers)
250 210 168 175 106

No. of Respondents

200 150 100 50 0

49

69

57

77

Company Name

Interpretation:From the above chart, the researcher can conclude that there are out of 230 respondent 91.30 % ( i.e., 210) respondent are aware about LGs microwave o ven while 21.30 % ( i.e., 49) respondent are aware about Sharps microwave oven.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-3 Which companys oven would you like to purchase in future from above mentioned company? [Table - 7] Company Name LG Godreg Samsung Sharp Panasonic Electrolux Sanyo Others Total No. of Respondents 171 11 29 0 7 4 4 4 230 Percentage 74.35% 4.78% 12.61% 0.00% 3.04% 1.74% 1.74% 1.74% 100%

[Chart 4]

Which companys oven would you like to purchase in future from above mentioned company?
180 160 140 120 100 80 60 40 20 0 171

No. of Respondent

29
11 0
Samsung Sharp

4
Sanyo

4
Others

LG

Godreg

Panasonic Electrolux

Company Name

Interpretation:From the research researcher found that most of respondent want to purchase LGs and Samsung micro wave oven in near future while other companys oven like

Godreg, Panasonic, Electrolux, Sanyo, Sharp, Onida, bajaj,and etc are very less demand in the future .

Prof. V. B. Shah Institute Of Management-VNSGU

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-4 Main reason for selecting the oven of above mentioned company? [Table-7] Attribute/ Reason reasonable price Design Scheme Maintenance Durability After sales service Low electricity consumption Total No. of Respondents 178 71 85 72 53 107 104 230 Percentage 77.39% 30.87% 36.96% 31.30% 23% 46.52% 45.22% 100%

[Chart -4]

Main reason for selecting the oven of above mentioned company

No. of Respondents
200 150 107 100 50 0
resonabal price Design Scheme Maintenance Durability After sales service Low electricity consumption

178

104

71

85

72 53

Attribute

Interpretation:From the above chart, the researcher can found that out of 230 respondents 71.20% (i.e., 178) are price sensitive while selecting the company. And 42.80% respondent are view after sales service, 41.60% respondent are view electricity consumption, 34% respondent are view scheme, 28.80% respondent are view maintenance, 28.40% respondent are view design, 21% respondent are view durability while selecting the company.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-5 Who influence in your decision for purchasing oven? [Table-8] Variable Family member Friends Relative Advertisement Neighbor Any other Total No. of Respondents 77 17 27 45 52 12 230 Percentage 33.48% 7.39% 11.74% 19.57% 22.61% 5.22% 100

[Chart-5]

Who influence in your decision for purchasing oven?

77 80 No. of Respondents 60 40 17 20 0 27 12 45 52

Attribut

Interpretation:From the above chart, the researcher can found that out of 230 respondents 33.48 % (i.e., 77) are consulting family member while purchasing microwave oven. And 22.64% respondent are consulting neighbour,19.57 % respondent are consulting advertisement, 11.74 % respondent are consulting relative, 7.39 respondent are consulting friends, 5.22 % respondent are give other factors like internet, own decision while purchasing microwave oven.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-6 What important criteria you consider while purchasing oven? (Rank 1 to 8 in descending order) [Table-9] Attribute Price Size Design Electricity Consumption Durability Maintenance Scheme After Sales Service [Chart - 6] 8 87 14 3 38 15 20 22 31 7 62 13 8 44 11 18 34 40 6 39 10 12 59 7 19 40 43 5 16 12 27 33 21 26 42 53 4 5 32 67 22 33 27 33 11 3 4 37 60 14 20 47 24 24 2 4 68 32 9 43 49 18 8 1 13 44 21 11 80 24 17 20 Total 230 230 230 230 230 230 230 230

What important criteria you consider while purchasing oven?

No. of Respndense
100 80 60 40 20 0 8 7 6 5 4

3
2 1

Attributes

Interpretation:From the above chart, the researcher can found that out of 230 respondents 37.83 % (i.e., 87) has given 8th rank to the price and 34.78 % (i.e., 80) has given 1st rank to the durability. So, company should more conscious about the price rather than durability.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-7 From which source you have seen the advertisement of your above mentioned company for oven?

[Table-10] Attribute TV Hoardings News paper Radio Other Total No. of Respondents 60 31 66 41 32 230 Percentage 26.09% 13.48% 28.70% 17.83% 13.91% 100%

[Chart -14]

From which source you have seen the advertisement of your above mentioned company for oven?
No. of Respondents
70 60 50 40 30 20 10 0 60 66

41 31 32

TV

Hoardings

News paper

Radio

Other

Attribut

Interpretation:From the above chart, the researcher can found that out of 230 respondents 28.70 % (i.e., 66) are known about oven from news paper and 13.48% (i.e., 31) respondents are known about oven from hoardings. So, company should give the priority to the news paper for advertisement this indirectly increase the goodwill of the company in competitive market.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-8 Does you select the brand according to your income level?

[Table-11] Response Yes No Total No. of Respondents 158 72 230 Percentage 68.70% 31.30% 100%

[Chart -15]

Does you select the brand according to your income level?

No 31%

Yes 69%

Interpretation:From the above chart, researcher found that out of 230 respondent 68.70 % (i.e., 158) respondent select the brand according to their income level. While out of 230 respondent 31.30% (i.e., 72) respondent are not select the brand according to their income level.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-9 Does you select the brand for status purpose? [Table-12] Attributes Always Sometimes Never Total No. of Respondents 73 104 53 230 Percentage 31.74% 45.22% 23.04% 100

[Chart -16]

Does you select the brand for status purpose?

Never Attribut

53

Sometimes

104

Always

73

20

40 No. of Respondents

60

80

100

Interpretation:From the above chart, researcher found that out of 230 respondent 31.74 % (i.e., 73) respondent select the brand for their status. And out of 230 respondent 45.22% (i.e., 104) respondent are sometimes select the brand for their status. While 23.04% (i.e., 73) respondent never varied about their status.

Prof. V. B. Shah Institute Of Management-VNSGU

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-10 Where would you like to purchase oven?

[Table-13] Attribut Retail store Authorized dealer Hyper marts (malls) Companys outlet Franchise Total No. of Respondents 46 72 50 34 28 230 Percentage 20.00% 31.30% 21.74% 14.78% 12.17% 100%

[Chart -17]

Where would you like to purchase oven?

80 No. of Respondents 60 40 20 0 Retail store Authorized dealer Hyper marts (malls) Attribut Companys Franchise outlet 46 72 50 34 28

Interpretation:From the above chart, researcher found that out of 230 respondent 31.30 % (i.e., 72) respondent says that they are interested to purchase oven from authorized dealer. While out of 230 respondent 12.17% (i.e., 28) respondent are interested to purchase oven from franchise.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

Q:-11 Why you prefer oven from the above mentioned place?

[Table-14] Variable Good after sales service Near to home Provide good financial schemes Have good co-operative staff Others Total No. of Respondents 67 44 74 30 15 230 Percentage 29.13% 19.13% 32.17% 13.04% 6.52% 100%

[Chart-18]

Why you prefer oven from the above mentioned place?

80 70 60 50 40 30 20 10 0 74

67
44 30 15

No. of Respondents

Good after Near to home Provide good sales service financial schemes

Have good co-operative staff

Others

Attribut

Interpretation:From the above chart, researcher found that out of 230 respondent 32.17 % (i.e., 74) respondent prefer good financial schemes from the seller. While out of 230 respondent 29.13% (i.e., 67) respondent prefer good after sales service from the seller, out of 230 respondent 19.13% (i.e., 44) respondent like to purchase oven from particular shop because it near to home, out of 230 respondent 13.04% (i.e., 30) respondent prefer good after co-operative staff from the seller.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city HYPOTHESIS TESTING UTIVE SUMMERY Formulation of Hypothesis:
The researcher has taken 230 sample sizes for the survey. The researcher found that out of 230 respondents 171 respondents are going for the LGs oven.

H0: 80% consumers go for LG ovens H1: 80% consumers do not go for oven n = 230 p = x/n = 171/228 = 0.7435
/

Zcal =

Where, x = No. of respondents n = number of total respondent p = probability of satisfied respondents q = probability of unsatisfied respondents z = score associated with confident level 0.7435 0.80 0.80 0.20/230 0.0565 0.0264

= =

Zcal = 2.1402 Ztab = 1.96 Zcal > Ztab So, Ho is reject ex. 80% of customer are ready to purchase LGs oven in future.

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A study on Consumer Buying Behaviour toward LGs oven in Surat city FINDINGS
From the research researcher UTIVE had finds SUMMERY some of the findings related to service to the customer which summaries as follow:

From the research, the researcher has found out that 80 % of respondent are
ready to purchase LGs microwave oven which is the good sign for the company. 68.40% of the respondent have oven and out of 79 respondents 74.68 %( i.e.59) are want to purchase the oven in near future. In research most of respondent have LGs and Samsung microwave oven while other companys oven like Godreg, Panasonic, Electrolux, Sanyo, Sharp, Onida, Bajaj,and etc are very less. From the research researcher had found that 84% of respondent aware about the LGs oven. 71.20% of the respondent are price sensitive while selecting the company and 42% of the respondent are view after sales services and 41.60% of the respondent are view electricity consumption. 33.48% of the respondent influence by family member while purchasing microwave oven. 37.82 %( i.e.87) of the respondent give highest rank as important criteria for purchasing oven. 28.70% (i.e.66) of the respondent seen the advertisement of oven in news paper and 26.09% seen the advertisement in T.V. 68.70% (i.e. 158) of the respondents are selecting the brand according to their income level. 45.22 %( i.e.104) of the respondents say that they are neutral about status while selecting the brand.

Prof. V. B. Shah Institute Of Management-VNSGU

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A study on Consumer Buying Behaviour toward LGs oven in Surat city

31.30 %( i.e.72) of the respondents would like to purchase oven from the authorized dealer. 32.17%(i.e. 74) of the respondent are expected good financial schemes from the seller while 29.13% (i.e67) of the respondent expected good after sales service

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A study on Consumer Buying Behaviour toward LGs oven in Surat city SUGGESTIONS UTIVE SUMMERY
It is always difficult to suggest suggestions to anyone. As per the findings and data interpretation, researcher wants to suggest the following matters: Company and dealer are suggested to concentrate on advertising print Media like news paper, Magazines, and advertising Banner. So it can help both them to increases their sales because 28.70% respondent are know about oven from the news paper. The company should provide good financial scheme and good after sales service because 32.17% respondent are expect good financial scheme and 29.17% respondent are expect good after sales service. No. of Competitors entered in the market so Consumers are shifting towards others. So researcher wants to suggest concentrating on consumer by creating more dealers in city. Dealers are advice to provide better quality after sales service to retain consumer and for mouth publicity. Company should try its best to make a good brand image in the mind of customers and competitors. Because mouth publicity is best when large number of competitor are in the market.

Prof. V. B. Shah Institute Of Management-VNSGU

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A study on Consumer Buying Behaviour toward LGs oven in Surat city CONCLUSION UTIVE SUMMERY
After the completing research on the topic of Consumer Buying Behaviour towards LGs Oven it can be conclude that majority of customers which are ready to buy the LGs oven. As LG is the largest oven manufacturing company in India. Maximum numbers of visitor are preferred to buy the LG Companys oven because they provide satisfactorily service to his customer. In short the company has to build strong brand awareness and credibility among its customers. Researcher also concludes that about 80% of customers are ready to buy the LG Companys oven which is good sign for the company. It can be concluding that the brand image of LG is very good in the customers mind so that they are competing other players.

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