1

Executive summery

Title – CONSUMER BEHAVIOUR TOWARDS LG TELEVISION IN BHATKAL

INTRODUCTION

The report on consumer behaviour of LG television , consumer physchology is most important to study of consumer to know how people behave while purshasing, using and disposing the product and services.its necessary for marketer to know the buying behaviour of the consumer before marketing the product and services in order to be a successful marketer.

The objectives of report were as follows:

The primary objective of the study is to know about the consumer behavior towards the LG TELEVISION.

To know the popularity of LG television in Bhatkal city.

To know the market share of LG television in Bhatkal city.

To know the satisfaction level of current user of LG television.

Research was undertaken by following the below research methodology:

Research problem -

Research design – Descriptive.

Sample Universe – Bhatkal.

Sample frame : House wives.

Sample unit – Each household in 4 mojor area.

Nawayeth colony, Madina colony, Azad nager, Bhatkal town.

Sampling Technique – convience sampling method used.

Desire sample size – A sample size of 100 respondent was specified.

Research instrument – structured questionnaire.

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The key findings of report was as follows :

Through the survey it was found that 95% of the respondents are having TV in their home.

The research shows that 44% of respondents own LG television. The survey shows that reason buying the LG television is its quality and after sales

service. Through massive advertisement consumer are influence to purchase and switching their

brand to LG. As per survey report shows 36% of respondent buy LG television because of quality and

32% of respondent buy due to brand image. By conducting survey it was found that there was only one service station and

authorised dealer in the city due to which the customer were inconvenient.

The followings were limitation of study:

1. The present study is subjected to following LIMITATIONS2. Times was the major limiting factor as the time allotted to conduct survey was not

enough.3. Some respondent were irresponsive.4. The research is directly concerned with the study of consumer behavior and achieving

absolute mathematical accuracy was not possible.5. Method of data collection was through personal and therefore bias becomes a major

limitation.

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INDEX

4

Chapter No CONTENTS Page No

1 INTRODUCTION

Introduction to LG electronic india pvt. Ltd.

Introduction to Kiran Enterprise.

05 – 10

6 – 7

8 - 10

2 COMPANY PROFILE

Growth trend of LG

Vision of the company

Strategy of the company

Milestones

Awards

11 – 27

13 – 15

16 – 18

19

20 – 25

26 – 27

3 PRODUCT PROFILE

Consumer electronics

Home appliances

Computer product

Mobile phone

28 – 37

31 – 33

34 – 36

36

37

4 LITERATURE REVIEW

Consumer behavior

Types of buying decision behavior

The buyer decision process

Factors influencing consumer behavior

38 – 48

39

40 – 41

42 – 43

44 – 48

5 OBJECTIVES OF THE STUDY 49 - 50

6 RESEARCH METHODOLOGY 51 - 53

5

CHAPTER – 1

INTRODUCTION

Introduction to LG Electronic India Pvt. Ltd.

Introduction to Kiran Enterprises

6

INTRODUCTION TO LG Electronic India Pvt. Ltd.

• Established In: May 1997

• Managing Director: Mr. Moon B. Shin

• Corporate Office: Plot no 51, Udyog Vihar, Surajpur Kasna Road, Greater Noida (UP)

• Manufacturing Units: Greater Noida (U.P.) & Pune (Maharashtra)

• Corporate Website: http://www.lgindia.com

LG Electronics India Pvt. Ltd. Is established in 1997 and it is wholly owned subsidiary of LG

Electronics, South Korea. In India for a decade now, LG is the market leader in consumer

durables and recognized as a leading technology innovator in the information technology and

mobile communications business. LG is the acknowledged trendsetter for the consumer durable

industry in India with the fastest ever nationwide reach, latest global technology and product

innovation.

One of the most formidable brands, LGEIL has an impressive portfolio of Consumer

Electronics, Home Appliances, GSM mobile phones and IT products.

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea

was established in January, 1997 after clearance from the Foreign Investment Promotion Board

(FIPB).

7

The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a

period of 4 and 1/2 months with the commencement of operations in May 1997.

LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an

investment of Rs 500 Crores. This facility manufactured Color Televisions, Washing Machines,

Air-Conditioners and Microwave Ovens.

During the year 2001, LG also commenced the home production for its eco-friendly

Refrigerators and established its assembly line for its PC Monitors at its Greater Noida

manufacturing unit. The beginning of 2003 saw the roll out of the first locally manufactured

Direct Cool Refrigerator from the plant at Greater Noida.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that

commences operations in October 2004. Covering over 50 acres, the facility manufactures LCD

TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color

Monitors.

Both the Indian manufacturing units has been designed with the latest technologies at par

with international standards at South Korea and are one of the most Eco-friendly units amongst

all LG manufacturing plants in the world.

LG has been able to craft out in ten years, a premium brand positioning in the Indian

market and is today the most preferred brand in the segment.

8

INTRODUCTION TO KIRAN ENTERPRISES

KIRAN ENTERPRISES is a sole trading concern and was established on 11th of

February 1992 by Mr. KIRAN N MANKAME, with an investment of Rs.3lacs.

He is an eminent businessmen and great visionary. He tried his best to provide all the types

of electronic goods to fulfill the esteem needs of the customer by providing them esteem

products excellent services. KIRAN ENTERPRISES never look back and grew steadily

in every sphere of marketing.

The firm in its philosophy looks to render quality service to there customer and provide

benefits by selling there products.

In the year 1997 LG ELECTRONICS INDIA PVT. LTD. Has appointed them as

authorized dealer in BHATKAL city. He introduces an additional capital of Rs.6 lacs to set up

the LG EXCLUSIVE SHOWROOM.

KIRAN ENTERPRISES is the only authorized dealer in an around BHATKAL.

KIRAN ENTERPRISES has wide market coverage and large market share in and around

BHATKAL, which starts from GANGOLLI-BHATKAL-KARWAR. It covers the towns like

Murdeshwar, Manki, Kumta, Shiroor, Bydoor, etc.

KIRAN ENTERPRISES is located in the heart of BHATKAL city opp. To K.S.R.T.C bus

stand, National highway-17 and connected with well transport system, were there is generally

good flow of public.

KIRAN ENTERPRISES have number of competitors such as PAI INTERNATIONAL,

PRITHVI ENTERPRISES, BEST SALES, SUVIDHA ELECTRONICS, CHETAN HOME

APPLIANCES, etc. inspite of so many competitors KIRAN ENTERPRISES has got a large

market share and most trusted enterprise in and around BHATKAL and has a turnover of around

35-40lacs per month.

The firm has its staff in all 15 numbers of employees, 5 salesperson, 4 technician, 2 clerks, 2

delivery boys and a manager.

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Facilities provided by KIRAN ENTERPRISES:

They provide various facilities to the customers to fulfill there esteem needs. The facilities

provided by KIRAN ENTERPRISES are:

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

convenience of the customers.

Door to door service: They deliver the goods at customer’s door provide door to door service to

the customer on the purchase of goods.

After sales service: They provide after sales service for their customers when there is any sort of

major or minor problem with the products, after receiving just a call by the customer they sent

there technician to tackle the problem.

Offers:

Generally KIRAN ENTERPRISES gives special offers on the of various occasion especially

at the time of festivals like Depawali, Ramzan, etc.

Brands Available In Kiran Enterprises:

10

Kiran enterprises deals with various brands, some of the major brands are

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

CHAPTER - 2

11

COMPANY PROFILE

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

FINANCIAL PERFORMANCE DURING LAST

DECADE

12

Growth trend of LG

13

Hyderabad, June 23 For South Korean consumer electronics major LG Electronics,

India could graph the highest growth rate in terms of sales compared with its other

markets in the last five months, beating global trends of slackened consumer spending

due to recessionary fears.

LG Electronics India Ltd (LGEIL) clocked a growth rate of 18 per cent in the last five

months compared with the corresponding period of 2008, mostly driven by increase in

sale of products in the refrigeration and AC segments, according to Mr Moon B. Shin,

Managing Director. “We are now aiming at a 25 per cent growth in our turnover for 2009

to touch about Rs 13,000 crore. Last year (2008), we had achieved a turnover of Rs

10,730 crore,” he told presspersons on the sidelines of the launch of a new LG Shoppe

here recently.

The company is poised to roll out new models in LCD and GSM handset categories in

the next three to six months in the domestic market.

LG India sales revenue up 50% this festive season

New Delhi, Nov. 6 Durables company LG Electronics said it had posted a record sales

revenue of Rs 2,535 crore for September-October, an increase of 50 per cent compared

with sales revenue for the corresponding period a year-ago.

This festival season LG Electronics recorded a 49 per cent growth in its home appliance

business, 68 per cent in refrigerators, 60 per cent growth in washing machines and over

41 per cent in microwave ovens.

The season also saw phenomenal sales, especially in the display category, which

includes conventional CRT TV and flat panel displays (PDPs, LCDs and flat screen

TVs). LG’s contribution in consumer electronics category this festive season alone has

seen a growth of 39 per cent over the corresponding period last year.

14

“The festive season has seen LG Electronics continue to generate significant growth

with a portfolio of products spread across the widest variety of price points in the

company’s history.

“We have introduced high-end products that not only provide the right technology but

also suit the new age lifestyles of Indian consumer, this also confirms consumers’

shifting preferences towards exercising affirmative choice to buy high quality reliable

products rather than bargain hunting,” said Mr Moon B. Shin, Managing Director, LGEIL

Major market players

Sumsung whirlpool Sony Philips Onida Voltas kenstar

15

Market share of LG in India

16

VISION OF THE COMPANY

LG Electronics vision for the 21st century is to become a true global digital leader through

fast growth and fast innovation and to be known as a company who can make its worldwide

customers happy through its innovative digital products and services. LG Electronics has set its

mid-term and long-term goal to rank among the top 3 electronics, information, and

telecommunication firms in the world by2010. We aim to utilize our core capabilities of product

leadership, market leadership and people leadership and enhance our corporate culture of team

work and fun workplace to achieve our mission of becoming “2 by 10”, that is, double our sales

volume and profit by year 2010.

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LG BRAND

The values

“The values are derived from the heart of LG

Corporate founding principles”

Management creating values for the customer

Philosophy management based on esteem for human dignity

Values

We are honest and responsible. We always keep the promises we make to our customers in

our bid to become the world’s most trusted brand.

Innovation

We provide the most innovative products and services. Our innovations are made not for

technology’s sake, but for our customer’s benefit. From the most basic features to the most

sophisticated technology, our products are designed to give our customer substantial value.

(Technology for customers not for engineers)

People

Respecting and caring for our customers is the driving force behind our philosophy in

human-centric product development. Respecting and caring for our employees make this a

reality.

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Passion

We are very passionate about providing products and services that satisfy the unmet needs

of the customers, as well as those potential needs of customers which they have yet to recognize.

Positioning Statement

LG strives to enhance the customer’s life (and lifestyle) with intelligent features, intuitive

functionality, and exceptional performance. Choosing LG is a form of self-expression and self-

satisfaction. Our customer will take pride in owning the amazing and take comfort in knowing

he/she made a smart, informed decision.

Brand Platform

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

“Life’s Good” Represents LG's Determination to Provide Delightfully Smart

Products That Will Make Your Life Good.

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STRATEGY OF THE COMPANY

LG Electronics is pursuing the vision of becoming a true global digital leader, attracting

customers worldwide through its innovative products and design. The company’s goal is to rank

among the top 3 consumer electronics and telecommunications companies in the world by 2010.

To achieve this, we have embraced the idea of “Great Company, Great People,” recognizing

that only great people can create a great company.

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MILESTONES

1958GoldStar (today’s LG Electronics) established

1959Korea’s first radio produced

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

1965Korea’s first refrigerator produced

1966Korea’s first black & white TV produced

1968Korea’s first air conditioner produced

1969Korea’s first washing machine produced

1974GoldStar Communications went public

1977Color TV produced

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

1980 First EU sales subsidiary in Germany (LGEWG) established

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

1984Sales surpassed 1 trillion Won

1986European-standard VCR plant established in Germany

1989Sales subsidiary and a joint production subsidiary established in Thailand

1990Ireland-based design technology center established

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

swing

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

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

(LGEIL) established

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

2000LG Information & Communications merged The world’s first Internet-enabled refrigerator

launched Global sales of refrigerators reached the number one position

2001Asynchronous IMT-2000 equipment commercialized The world’s first Internet enabled washing

machine, air conditioner, and microwave oven launched LG.Philips Displays, a joint venture

with Philips established

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2002Under the LG Holding Company system, the Company spun off to LG Electronics (LGE) & LG

Electronics Investment (LGEI) The first home network system commercialized in the global

market

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

world CDMA market Launched the world’s first Super Multi DVD Rewriter

2004EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada DTV

transmission standard by the US ATSC All in-one LG 55-inch LCD TV, the world’s first and largest among LCD

TVs, commercialized The world’s largest and first 71-inch Plasma TV commercialized The world’s first terrestrial DMB phone developed Developed Wireless Speaker Home Cinema

System

2005The world’s first DMB notebook commercialized The world’s slimmest TV commercialized

The world’s largest 102-inch Plasma TV developed LG and Nortel Networks agreed to establish

a jointventure for telecommunication network equipment Satellite-based DMB phone commercialized

The largest share seized in the global CDMA market

2006Launched the LG Shine, the second handset in the Black Label Series Globally launched the

steam washing machine and interactive TV refrigerator Developed the world’s first 100-inch LCD TV Launched the world’s largest Full HD 102-inch Plasma TV (1080p) Developed the

world’s first dual-format high-definition DiscPlayer& Drive

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2007

Date 11-JUL-07

LG presents 5 mega-pixel GSM handset – KG 920

• Innovative Twist & Slim design -180° rotating camera • 4x zoom, video recording at 30 frames/sec and much more

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Date : 12-JUL-07

LG launches India’s first Bluetooth enabled car audio system

• Enables user to share audio files from laptops and mobiles• First car audio ever which can double up as a hands-free device for cell phones

• Stylishly built and equipped with 3D display LCD screen

Date: 20-JUL-07

LG Electronics completes a successful H1 2007

Achieves 20% average growth over H1sales turnover in 2006Succeeds in further building India as an export hub with 50% growth over last year

Date: 30-AUG-2007

LG set to dazzle India with “Shine”

• Launches India’s first full metal-bodied phone from the premium Black Label series of mobile phones• Target to be amongst the top 3 players in the premium handsets category in India• Targets growth of 150 % by first quarter of 2008

Date: 04-SEP-2007

LG Electronics launches the New Slim TV-BLACK IRIS

• 30% slimmer in volume & 390 mm in depth compared to other Normal Flat TV picture tubes • New Hot & Cold finish offers high quality glossy and durable finish.

Date: 17-JUL-07

LG presents technovation at its best

• Announces Notebook Business as one of the growth engines for LG India

•LG’s IT Division plans to grow by 30% in volume terms and 20% in revenue terms for

Year 2007• Pioneers glass- free 3D viewing in India with the launch of India’s first 3D LCD monitor• Launches India’s first Notebook with Auxiliary Display and the path breaking “Desk Note”

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• Available in 32”, and 42” wide sizes• Brings together an exceptional combination of design and technology• Targets 30% market share in the FPD segment by 2007 year end• Aims to sell 5000 units by year end

Date: 24-OCT-07

LG Electronics Bags prestigious ESC Award for Export Excellence in 2005-06

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

Date: 24-DEC-07

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

Date : 12-JUL-07

LG launches India’s first Bluetooth enabled car audio system

• Enables user to share audio files from laptops and mobiles• First car audio ever which can double up as a hands-free device for cell phones

• Stylishly built and equipped with 3D display LCD screen

Date: 20-JUL-07

LG Electronics completes a successful H1 2007

Achieves 20% average growth over H1sales turnover in 2006Succeeds in further building India as an export hub with 50% growth over last year

Date: 30-AUG-2007

LG set to dazzle India with “Shine”

• Launches India’s first full metal-bodied phone from the premium Black Label series of mobile phones• Target to be amongst the top 3 players in the premium handsets category in India• Targets growth of 150 % by first quarter of 2008

Date: 04-SEP-2007

LG Electronics launches the New Slim TV-BLACK IRIS

• 30% slimmer in volume & 390 mm in depth compared to other Normal Flat TV picture tubes • New Hot & Cold finish offers high quality glossy and durable finish.

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AwardsAs LG is declared one of the most awarded brand by all. Be it the critic, the market or by

you. At LG we believe each one of these awards truly belongs to you as they are reflection of

your trust & satisfaction, not to mention our stringent quality control & process like 6 sigma to

give you the best of the products that meets global standards. For us what matters most is you &

we thank you for making us the No.1 brand.

Award Name Awarded By Year

Most Admired Company in India A&M Magazine 1998

Most Admired MNC A&M Magazine 1999

No.1 Consumer Durable Company A&M Magazine

Best Marketing Company A&M Magazine

Most Ethieal MNC Business World

Techies Award Best Flat Screen Monitor Computer World 2000

3rd Largest Exporter ESC2001 2001

Best Employer Business Today/ Hewitt Assts

Best Employer Business Today/ Hewitt Assts

2002

Enterpreneur of the year Ernst & Young

Gold Rating for Environmental Performance

CII 2003

No. 1Awareness Award. Business Today

Super Achivers Award : MD LGEIL CETMA

Green Technology Gold Award Green Tech Foundation

Best Designer Award –Art Cool Air Conditioner

Business World & NIT

VAR India User Choice Award : Monitors VAR India

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Most Admired Product – Microwave EFY 2004

Award for IT Innovation Business Today

Most Trusted Brand –CD Writers DIGIT/Jasubhai Digital Media

EFY’s Electronics Organization of the Year Award for Television

Electronics for You 2005

Consumer Durable Retailer of the Year ICICI Bank

Excellence in Corporate Leadership & Entreprerenural Spirit

CNBC TV 18

Most preferred Brand- CTV & WM CNBC Consumer Vote Awards

Maximum Imports & Third Highest Exports CONCOR

EFY Reader’s Choice Award For Microwaves

EFY

Outstanding Contribution in the field of HR CETMA

Outstanding Contribution in the field of HR MID DAY

Top Company :CDMA Handsets V & D

Top Company : Fixed Phones V & D

Best in Recruiting & Staffing RASBIC 2006

Most Preferred Brand – CTV, WM, Computer & AC

CNBC Awaaz Consumer Awards

4 P Award : Refrigerator and Air Conditioner

4Ps Power Brand Award

4P Power Brand CNBC Consumer Vote Awards

Most Trusted Brand – LCD TV, Plasma TV, AC, WM, Ref, PC

Reader’s Digest

Maximum Exports-Consumer Electronics ESC

Maximum Exports CONCOR

First Consumer Awards – CTV, Ref, WM, AC, MWO, PC

Times Group

Business World Customer Loyalty Survey : Air-conditioner & Refrigerator

Business World & IMRB 2007

Top Newsmaker – Consumer Durables Business Today & Cirrus

Most Trusted Brand – TV, AC & HA Super Brands

Reader’s Digest Trusted Brands Platinum Awards- Airconditioner

Reader’s Digest

EFY Reader’s Choice Award For IT & MWO

EFY Enterprises Pvt. Ltd.

India’s Most Trusted Brands 2007 Brand Equity

4 Ps Business & Marketing : India’s 100 Planman Consulting & ICMR

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Most Valuable Awards Ranking 

Chapter – 3

Product Profile

Mobile phone

Consumer electronics Home appliances Computer product

29

PRODUCT LINE OF LG

Consumer Electronics

Home Appliances

Computer Products

Mobile Phones

30

Product Line:

Business Areas & Main Products

Category Main Products

Consumer Electronics

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

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

Computer Products

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

31

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

Consumer ElectronicsPlasma Display:

World’s first and largest 71-inch Plasma TV

Model : 71PY10-Brightness : 800cd/ ㎡-Contrast : 1200:1 -Resolution : 1920 X 1080(Full HD) -Digital Comb Filter -DCDi -Sound -Audio Output(15WX2) with 6 speakers -Function -PIP/DW/POP

32

-Split Zoom -Zoom in&out -Interface Side A/V, S-Video in DVI, RGB, RS232C, IR

LCD TV:

Pearl Black

Model: 47LB9

-Size: 47 (119 cms)

-MRP: Rs 150000

-Designer series

-10000:1 Dynamic Contrast Ratio

-TruM – 5 millisecond response time

-Spectabright – 600 cd/m2 brightness

33

-XD Engine

-Simplink

Color Television:

• Slimagic TV

• Flatron TV

DIGITAL AUDIO VIDEO

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

34

Home Appliances

ROOM AIR CONDITIONER

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

COMMERCIAL AC

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

• ECO

35

REFRIGER ATOR

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

WASHING MACHINE

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

MICROWAVE OVEN

• Solardom Microwave

• Convection Microwave

• Grill Microwave

• Solo Microwave

VACUUM CLEANER

• Vacuum Cleaner

37

Computer Products

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

MOBILE PHONE

• Viewty

• Shine

• Dynamite

• Pulse

• Bullet

38

Chapter - 4

LITERATURE REVIEW

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

39

Consumer BehaviourDefinition:

According to the American Marketing Association, Consumer Behaviour is

defined as "the dynamic interaction of affect and cognition, behaviour, and environmental events

by which human beings conduct the exchange aspects of their lives."

More generally, Consumer Behaviour is the psychology behind Marketing and the

behaviour of consumers in the Marketing environment.

Cognitive Psychology and Social Psychology are the two major psychological

disciplines of Consumer Behaviour.

Cognitive Psychology is the study of mental behaviours. The Attention, Perception,

Comprehension, and Decision Making are the various aspects of cognitive psychology that play

an important role in Consumer Behaviour.

40

Social Psychology is the study of the manner in which the personality, attitudes,

motivations, and behaviors of the individual influence are influences by social groups.

Today, many brand marketers and advertisement agencies believe that one-to-one

marketing is a key ingredient in the marketing mix. They share the opinion that adding a large

dose of up close and personal interaction sparks consumer behaviour.

Consumer behaviour Study of how people behave when obtaining, using, and

disposing of products and services. Consumer jury test a method of testing advertisements that

involves asking consumers to compare, rank, and otherwise evaluate the advertisement

TYPES OF BUYING-DECISION BEHAVIOUR Consumer decision making varies with the type of buying decision. The decisions to buy

shampoo, a cricket bat, a digital television, a new car are all very different. Complex and

expensive purchases are likely to involve more buyer deliberation and more participants.

It consist of four different buying behaviour, i.e. Complex buying behaviour, Dissonance-

Reducing buying behaviour, Habitual buying behaviour, and Variety-Seeking buying behaviour.

High involvement Low involement

ComplexBuying

Behaviour

Variety-SeekingBuying

Behaviour

Dissonnance-Reducing

Buying Behaviour

HabitualBuying

Behaviour

41

Significant differences Between brands

Few differences between brands

Complex Buying Behaviour:

Complex buying behaviour involves three steps. First, the buyer develops beliefs about the

product. Second, he or she develops attitudes about the product. Third, he or she makes a

thoughtful choice. Consumers engage in complex buying behaviour when they are highly

involved in purchases and aware of significant differences among brands. This is usually the case

when the product is expensive, bought infrequently, risky, and highly self-expensive.

Dissonance-Reducing Buying Behaviour:

Sometimes the consumer is highly involved in a purchase but sees little difference in

brand. The high involvement is based on the fact that the purchase is very expensive, infrequent,

and risky. If the consumer finds quality differences in the brands, he or she might go for the

higher price. If the consumer finds little difference, he or she might simply buy on price or

convenience.

Habitual Buying Behaviour:

It occurs under the conditions of low consumer involvement and little significant brand

difference. They simply go to store and reach for a brand. If they keep reaching for the same

42

brand, it is out of habit rather than strong brand loyalty. Consumers appear to have low

involvement most low-cost, frequently purchased products.

Variety-Seeking Buying Behaviour:Consumer undertakes variety-seeking buying behaviour in situations characterized by

low involvement but significant brand differences. Here, consumers often do a lot of brand

switching. Brand switching occurs for the sake of variety rather than dissatisfaction.

The buyer decision processThe buyer decision process consists of five stages: need recognition, information

search, evaluation of alternatives, purchase decision, and post-

purchase behavior. Clearly, the buying process starts long before actual

purchase and continues long after. Marketers need to focus on the entire

buying process rather than on just the purchase decision.

43

The figure implies that consumers pass through all five stages with every

purchase. But in more routine purchases, consumers often skip or reverse

some of these stages.

Need Recognition:

The buying process starts with need recognition–the buyer

recognizes a problem or need. The need can be triggered by internal stimuli

when one of the person’s normal need–hunger, thirst, sex–rises to a level

high enough to become a drive. A need can also be triggered by external

stimuli.

Need Recognition

Information Search

Evaluation Of Alternatives

Purchase Decision

Postpurchase Behaviour

44

Information Search:

An interested consumer may or may not search for more information. If

the consumer’s drive is strong and satisfying product is near at hand, the

consumer is likely to buy it then. If not, the consumer may store the need is

memory or undertake an information search related to the need.

Evaluation of Alternatives:

The marketer needs to know about alternative evaluation–that is,

how the consumer processes information to arrive at brand choices.

Unfortunately, consumers do not use a simple and single evaluation process

in all buying situations.

Purchase Decision:

In the evaluation stage, the consumer ranks brands and forms

purchase intentions. Generally, the consumer’s purchase decision will be to

buy the most preferred brand, but two factors can come between the

purchase intention and purchase decision. The first factor is attitudes of

others, the second factor is unexpected situational factor.

Post-Purchase Behaviour:

The marketer’s job does not end when the product bought. After

purchasing the product, the consumer will be satisfied or dissatisfied and will

engage in post purchase behavior of interest to the marketer. If the product

falls short of expectations, the customer is disappointed; if it meets

expectations, the consumer is satisfied; if it exceeds expectations, the

consumer is delighted.

Factors influencing consumer behaviour

45

Consumers do not make their decisions in a

vacuum. Their purchases are highly influenced by

cultural, social, personal, and psychological factors.

For the most part, they are “non controllable” by the

marketer but must be taken in to account. We want to

examine the influence of each factor on a buyer’s

behavior.

Personal Factors:

The buyer’s decisions are influenced by personal factors such as the buyer’s age, life-cycle stage,

occupation, economic circumstances, life style, and personality.

Age: people change the goods and services they buy over their life times. Tastes in food,

clothes, furniture, and recreation are often age related.

Life cycle: the stage through which families might pass as they mature over a time. Marketers

often define their target market in terms of life cycle stage and develop appropriate products and

marketing plan for each stage. Traditional family life cycle stages include young singles and

married couple with children. Non traditional stages such as unmarried couples, singles, marring

later in life, childless couple, same sex couples, single parents, extended parents and others.

Occupation: A person’s occupation affects the goods and services bought. Marketers try to

identify the occupational groups that have an above average interest in their products and

services. A company can even specialize in marking products needed by a given occupational

group.

Economic circumstances: A person’s economic circumstances will affect economic choice.

Marketers of income-sensitive goods watch trends in personal income, savings, and interest

rates. If economic indicators point to a recession, marketers can take steps to redesign,

reposition, and reprice their products closely.

46

Lifestyle: People coming from the same subculture, social class, and occupation may have quite

different lifestyles. Lifestyle is a person’s pattern of living as expressed in his or her

psychographics. Lifestyle captures something more than the person’s social class or personality.

Psychological factors :

A person’s buying choices are influenced by for major psychological factors-motivation,

perception, learning, beliefs and attitudes.

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

arise from psychological states of tension such as hunger, thirst, or discomfort. Others are

psychogenic; they arise from psychological states of tension such as need of recognition, esteem,

or belonging. A need becomes a motive when it is aroused to a sufficient level of intensity. A

motive is a need that is sufficiently pressing to drive the person to act.

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

organizing and interpreting information inputs to produce meaning. Perception depends not only

on the physical stimuli, but also on the stimuli’s relation to the surrounding field and on

conditions within the individual. The key point is that Perception can vary widely among

individuals exposed to the same reality.

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

behavior arising from experience. Most human behavior is learned. Learning theorists believe

that Learning is produced through the inter play of derives, stimuli, cues, responses, and

reinforcement.

Beliefs and Attitudes: Through doing and learning, people acquire beliefs and attitudes.

This in turn influences buying behavior. A belief is a descriptive though that a person holds

about something. People’s beliefs about a product their buying decisions.

Individual learns attitudes through experience and interaction with other people. Consumer

attitudes toward a firm and its products greatly influence the success or failure of the firm's

marketing strategy.

47

Social Factors :

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family,

reference groups, and social class.

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

communication who offers advice or information about a specific product, such as which of

several brands is best or how a particular product may be used.

Roles and Family Influences: Role...things you should do based on the expectations

of you from your position within a group. People have many roles. Husband, father, employer,

etc. Individuals role are continuing to change therefore marketers must continue to update

information.

Family is the most basic group a person belongs to. Marketers must understand:

o that many family decisions are made by the family unit

o consumer behavior starts in the family unit

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

o family buying decisions are a mixture of family interactions and individual

decision making

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

Reference Groups: Individual identifies with the group to the extent that he takes on

many of the values, attitudes or behaviours of the group members. Families, friends, sororities,

civic and professional organizations. Any group that has a positive or negative influence on a

person’s attitude and behaviour.

The degree to which a reference group will affect a purchase decision depends on an individual’s

susceptibility to reference group influence and the strength of his/her involvement with the

group.

48

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

influences many aspects of our lives. Social class determines to some extent, the types, quality,

and quantity of products that a person buys or uses. Lower class people tend to stay close to

home when shopping, do not engage in much pre-purchase information gathering. Family,

reference groups and social classes are all social influences on consumer behaviour. All operate

within a larger culture

Cultural factors:

Cultural factors exert a broad and deep influence on consumer behaviour. The marketer needs to

understand the role played by the buyer’s culture and subculture.

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

member of society from family and other important institutions.

Every group or society has a culture, and Cultural influences on buying behavior may vary

greatly from country to country. International marketers must understand the culture in each

International market and adapt their marketing strategies accordingly.

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

homogenous group of people and transmitted to the next generation. Culture also determines

what is acceptable with product advertising. Culture determines what people wear, eat, reside and

travel. Cultural values in our country good health, education, individualism and freedom.

Culture can be divided into subcultures:

o geographic regions

o Human characteristics such as age and ethnic background.

Culture affects what people buy, how they buy and when they buy.

Understanding Consumer Buying Behavior offers consumers greater satisfaction. We must

assume that the company has adopted the Marketing Concept and are consumer oriented.

49

Chapter - 5

OBJECTIVES OF THE STUDY

50

OBJECTIVES OF THE STUDY

The primary objective of the study is to known about the consumer behavior towards the

purchase of LG television.

To know the popularity of LG television in Bhatkal city.

To know the market share of LG television in Bhatkal city.

To know the satisfaction level of current user of LG television.

51

Chapter - 6

RESEARCH METHODOLOGY

52

METHODOLOGYThe report has been prepared as per the information obtained from two sources. They are:

1. Primary data

2. Secondary data

1. Primary data:

53

In primary data collection, we collect the data our self with the help of questionnaires.

The key point here is that the data we collect is unique to us and our research and, until we

publish, no one else has access to it.

There are many methods of collecting primary data and the main methods include:

QUESTIONNAIRES:

Questionnaires are a popular means of collecting data, but are difficult

to design and often require many rewrites before an acceptable questionnaire is produced.

INTERVIEWS:

Interviewing is a technique that is primarily used to gain an understanding of the

underlying reasons and motivations for people’s attitudes, preferences or behaviour. Interviews

can be undertaken on a personal one-to-one basis or in a group. They can be conducted at work,

at home, in the street or in a shopping centre, or some other agreed location.

OBSERVATION:

Observation involves recording the behavioural patterns of people,

objects and events in a systematic manner.

The primary data included the information collected from the:1. Proprietor, manager and employees of Kiran Enterprise.2. Structured questionnaire3. Personal interview with customers

2. Secondary data:

Secondary data includes

a. Data from various magazines b. Internetc. Brochuresd. Bookse. Newspapers etc

54

Research design:

Descriptive

Sample Universe:

Bhatkal

Sampling plan:

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

Sampling frame:

House wives.

Sample unit :

Each house hold in 4 major area: Nawayeth colony, Madina colony, Azad nager, and bhatkal

town.

Sampling Technique:

convience sampling method used.

Desired sample size:

A sample size of 100 respondents was specified.

Research instrument: structured questionnaire

Chapter - 7

Limitation

55

Limitation

1. The present study is subjected to following LIMITATIONS2. Times was the major limiting factor as the time allotted to conduct survey was not enough.3. Some respondent were irresponsive.4. The research is directly concerned with the study of consumer behavior and achieving absolute

mathematical accuracy was not possible.5. Method of data collection was through personal and therefore bias becomes a major limitation.

56

6. Due to the time constraints all the customers were not covered.

7. The sample was restricted to 300 customers, which may restrict the scope and completion of study.

8. The scope of study is restricted only to the twin cities of Bhatkal.

9. Owing to their pre occupation some customers were unable to answer the complete questionnaire.

Chapter - 8

DATA ANALYSIS AND INTERPRETATION

57

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

1. Classification as per ownership of Television

Que.No1: Do you own a Television?

Response No. Of Respondents Percentage

Yes 95 95

58

No 5 5

Total 100 100

1

59

Yes No0

102030405060708090

100

95

5

No. Of Respondents

No. Of Respondents

95

5

Percentage

YesNo

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

for future purchase.

60

2. Classification as per company-wise ownership

Que.No2: which brand of Television do you own?

Company No. Of Respondents Percentage

L G 44 44

ONIDA 19 19

VIDEOCON 15 15

Other 22 22

Total 100 100

2

61

L G ONIDA VIDECON Other05

1015202530354045

44

19 1522

No. Of Respondents

No. Of Respondents

44

19

15

22

Percentage

L GONIDAVIDECONOther

From above data it was found that 44% of homes are having LG TV 19% are using Onida, 15%

are using Videocon and 22% using other brands.

62

3. Classification based on source of information for the purchase

Que. No 3: From where did you get information about LG tv?

Source Of Information No. Of Respondents Percentage

ADVERTISEMENT 18 41

FRIENDS 11 25

RETAIL OUTLETS 12 27

OTHERS 3 7

TOTAL 44 100

3

63

ADVERTISEMENT

FRIENDS

RETAIL OUTLETS

OTHERS

0 2 4 6 8 10 12 14 16 18

18

11

12

3

No. Of RespondentsNo. Of Respondents

41

25

27

7

Percentage

ADVERTISEMENTFRIEND’SRETAIL OUTLETSOTHERS

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

4. Classification based on main reason for purchasing

Que.No.4: what all you take in account before taking LG tv?

64

Reasons For Purchase No. Of Respondents Percentage

QUALITY 16 36

PRICE 11 25

BRAND IMAGE 14 32

OTHERS 03 7

TOTAL 44 100

4

65

QUALITY PRICE BRAND IMAGE OTHERS0

2

4

6

8

10

12

14

16

16

11

14

3

No. Of Respondents

No. Of Respondents

36%

25%

32%

7%

PercentageQUALITY PRICE BRAND IMAGE OTHERS

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

Model No. Of Respondents Percentage

L G FLATRON 23 52

66

L G GOLDEN EYE 18 41

L G LCD 02 4.5

OTHERS 01 2.5

TOTAL 44 100

5. Classification based on model-wise ownership

Que.No.5: Which model of LG T.V do you own?

5

67

L G FLATRON L G GOLDEN EYE

L G LCD OTHERS0

5

10

15

20

25

23 18

2 1

No. Of Respondents

No. Of Respondents

5241

4.5 2.5

Percentage

L G FLATRONL G GOLDEN EYEL G LCD OTHERS

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

68

6. Classification based on size ownership

Que.No.6: Which size of LG T.V do you own?

Size Of T.V No. Of Respondents Percentage

15 INCH 11 25

21 INCH 31 70.5

29 INCH 02 4.5

OTHERS 00 00

TOTAL 44 100

6

69

15 INCH 21 INCH 29 INCH OTHERS0

5

10

15

20

25

30

35

11

31

2 0

No. Of Respondents

No. Of Respondents

25

70.4

4.5

Percentage

15 INCH21 INCH29 INCHOTHERS

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

7. Classification based on duration of usage

70

Que.No.7: Since when you are using LG T.V?

Duration No. Of Respondents Percentage

LESS THAN 1 YEAR 11 25

1-2 YEAR 09 20.5

2-3 YEAR 16 36.5

4 AND ABOVE 08 18

TOTAL 44 100

7

71

LESS THAN 1 YEAR

1-2 YEAR 2-3 YEAR 4 AND ABOVE0

2

4

6

8

10

12

14

16

119

16

8

No. Of Respondents

No. Of Respondents

25

20.536.5

18

Percentage

LESS THAN 1 YEAR1-2 YEAR2-3 YEAR4 AND ABOVE

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

Satisfaction No. Of Respondents Percentage

FULLY SATISFIED 14 32

72

SATISFIED 21 48

SOME WHAT SATISFIED 09 20

NOT SATISFIED AT ALL 00 00

TOTAL 44 100

8. Classification based on level of satisfaction

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

8

73

FULLY SATISFIED

SATISFIED

SOME WHAT SATISFIED

NOT SATISFIED AT ALL

0 5 10 15 20 25

14

21

9

0 No. Of RespondentsNo. Of Respondents

32

48

20

Percentage

FULLY SATISFIEDSATISFIEDSOME WHAT SATISFIEDNOT SATISFIED AT ALL

\

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

74

9. Classification based on occupation of respondent:

Que.No.9: What is your occupation?

Occupation No. Of Respondents Percentage

PROFESSION 28 28

BUSINESS 20 20

HOUSEWIWES 39 39

OTHERS 13 13

TOTAL 100 100

9

75

PROFESSION BUSINESS HOUSEWIWES OTHERS0

5

10

15

20

25

30

35

40

28

20

39

13

No of respondent

28

20

39

13

percentage

PROFESSIONBUSINESSHOUSEWIWESOTHERS

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

76

10. Classification based on qualification of respondent:

Que.No.10: What is your qualification?

Qualification No. Of Respondents Percentage

UP TO SSLC 31 31

GRADUATE 42 42

POST GRADUATE 09 9

OTHERS 18 18

TOTAL 100 100

77

10

UP TO SSLC

GRADUATE

POST GRADUATE

OTHERS

0 5 10 15 20 25 30 35 40 45

31

42

9

18

No. Of RespondentsNo. Of Respondents

31%42%

9% 18%

PercentageUP TO SSLC GRADUATE POST GRADUATE OTHERS

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

78

11. Classification based on household monthly income of respondents

Que.No.11: What is your household monthly income?

Household Income No. Of Respondents Percentage

UP TO 5000 23 23

5000-10000 35 35

10000-15000 28 28

15000 AND ABOVE 12 12

TOTAL 100 100

11

79

UP TO 5000 5000-10000 10000-15000 15000 AND ABOVE05

101520253035404550

3343

19

5

No. Of Respondents

No. Of Respondents

33%

43%

19%

5%

PercentageUP TO 5000 5000-10000 10000-15000 15000 AND ABOVE

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

80

Chapter – 9

FINDINGS

81

FINDINGS

Through the survey it was found that almost 95% of the respondents are having TV in

their home.

The research shows that 44% of respondents own LG television.

The survey shows that reason buying the LG television is its quality and after sales

service.

Through massive advertisement consumer influence to purchase and switching their

brand to LG.

As per survey report shows 36% of respondent buy LG television because of quality and

32% of respondent buy due to brand image.

By conducting survey it was found that there was only one service station and

authorised dealer in the city due to which the customer were inconvenient.

82

CHAPTER –10

SUGGESTION AND CONCLUSION

SUGGESTIONS

83

LG electronics is perusing the vision of becoming a true global digital leader to achieve

this. They need to improve quality of the product.

Survey conducted by me the customer was not satisfied by quality of color in the

television contrast and sound system.

The customer are not satisfied by the after sales service provided by the company due to the

delay in the after sales services provided by company.

Conclusion

From the study is conducted there is a 100% awareness about television is among

the population , there are 45% are LG television user in Bhatkal city.

Complex buying behavior is involved in purchase and aware of significant,

difference among brands . LG has able to craft out in ten years a premium brand positioning in

the Indian market and is today most preferred brand in the segment.

2006 has been landmark year for LG as the company achieved a monumental target of

Rs 830 crs and reiterates its leadership in the Indian consumer durable industry.

84

Chapter – 11

APPENDIX

QUESTIONNAIREUMMER FAROOQUE R

MMM 3RD SEM

INDIRA INSTITUTE OF MANAGEMENT

PUNE

85

Dear sir/madam,

I am student of IIMP Pune. As part of the curriculum of MMM degree, I

am conducting a survey to prepare project report on “CONSUMER BEHAVIOR

TOWARDS LG TELEVISION”.

Therefore I kindly request you to spare some of the precious time to

answer the following question.

1. Name: …………………………………………………………………… Address: ……………………………………………............................... …………………………………………………………………………… Tel: ……………..........E-mail: ...………………………………………….

2. (a)Do you own Television?

Yes No If no jump to Q.No 9

(b)If yes mention its brand?

LG Onida

Samsung Other (specify)……………..

If LG television proceed, else jump to Quest no.103. From where did you get the information about LG T.V?

Advertisement Friend

Retail outlets Other (specify)……………

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

Quality Price

Brand image Other (specify)………………

86

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

LG Flatron L G Flatron with Golden eye

LG LCD T.V Other (specify)……………..

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

15inch 21 inches 29inch Other (specify) …………………

7. Since when you are using LG T.V?

Less than 1 year 1-2 years 2-3 years 4 and above

8. What is your level of satisfaction?

Fully satisfied Satisfied

Some what satisfied Not satisfied at all

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

LG Onida

Samsung Other (specify) ………………..

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

87

Few personal questions:

11.Your occupation

Profession Business

housewiwes Other (specify) ………………..

12.Education

Up to SSLC Graduate

Post graduate Other (specify)………………….

13.House hold monthly income

Up to 5000 5000-10000

10000-15000 15000 and above

THANK YOU

Chapter – 12

REFERENCE

88

REFERENCE

TEXT BOOKS

89

Principles of Marketing – Philip Kotler and Gery Armstrong

Marketing Research – D.D. Sharma

Marketing Research – Green & Tull

Websites:

www.lg.com

Www.lgindia.com