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1.1 INTRODUCTION TO THE STUDY
Consumer
Consumer is the central point and all the marketing activities revolve around him.
Manufactures produce what the consumer wants. As the customers’ behavior differ from persons
to persons, customer purchase an article as a consequence of certain mental and economic forces
creating desires or wants, which can be satisfied by the articles afford for purchase. In a market,
customer is considered to be king. heir needs and wants are unlimited. Customer’s preference
depends upon the nature of customer. he customer once purchase a mobile, if it gives
satisfaction to them, again they give reference to same mobiles service.
!ervice provider should fulfill needs and wants of customers, hey are e"pecting good
quality and lower prices from provider. If the cannot give satisfaction to the customers, they will
go for other mobile. he growth of business depends on customer satisfaction. he customer’s
e"pectations are changing day to day. #ence the customer’s preferences are not constant.
In economics, consumers are individuals or households that $consume$ goods and
services generated within the economy. !ince this includes %ust about everyone, the term is a
political term as much as an economic term when it is used in everyday speech. ypically when
businesspeople and economists talk of $consumers$ they are talking about person&as&consumer,an aggregated commodity item with little individuality other than that e"pressed in the buy'not
buy decision. #owever there is a trend in marketing to individuali(e the concept. Instead of
generating broad demographic and psychographic profiles of market segments, marketers are
engaging in personali(ed marketing, permission marketing, and mass customi(ation.
In standard microeconomic theory, a consumer is assumed to have a budget which can be
spent on a range of goods and services available on the market. )nder the assumption of
rationality, the budget allocation is chosen according to the preference of the consumer, i.e. to
ma"imi(e his or her utility function. In time&series models of consumer behaviour, the consumer
may also invest a proportion of their budget in order to gain a greater budget in future periods.
his investment choice may include either fi"ed rate interest or risk&bearing securities.
http://www.knowledgerush.com/kr/encyclopedia/Economics/http://www.knowledgerush.com/kr/encyclopedia/Economics/http://www.knowledgerush.com/kr/encyclopedia/Marketing/http://www.knowledgerush.com/kr/encyclopedia/Demographic/http://www.knowledgerush.com/kr/encyclopedia/Psychographic/http://www.knowledgerush.com/kr/encyclopedia/Psychographic/http://www.knowledgerush.com/kr/encyclopedia/Market_segment/http://www.knowledgerush.com/kr/encyclopedia/Personalized_marketing/http://www.knowledgerush.com/kr/encyclopedia/Permission_marketing/http://www.knowledgerush.com/kr/encyclopedia/Permission_marketing/http://www.knowledgerush.com/kr/encyclopedia/Mass_customization/http://www.knowledgerush.com/kr/encyclopedia/Microeconomic/http://www.knowledgerush.com/kr/encyclopedia/Budget/http://www.knowledgerush.com/kr/encyclopedia/Market/http://www.knowledgerush.com/kr/encyclopedia/Preference/http://www.knowledgerush.com/kr/encyclopedia/Utility/http://www.knowledgerush.com/kr/encyclopedia/Time-series_model/http://www.knowledgerush.com/kr/encyclopedia/Interest/http://www.knowledgerush.com/kr/encyclopedia/Marketing/http://www.knowledgerush.com/kr/encyclopedia/Demographic/http://www.knowledgerush.com/kr/encyclopedia/Psychographic/http://www.knowledgerush.com/kr/encyclopedia/Market_segment/http://www.knowledgerush.com/kr/encyclopedia/Personalized_marketing/http://www.knowledgerush.com/kr/encyclopedia/Permission_marketing/http://www.knowledgerush.com/kr/encyclopedia/Mass_customization/http://www.knowledgerush.com/kr/encyclopedia/Microeconomic/http://www.knowledgerush.com/kr/encyclopedia/Budget/http://www.knowledgerush.com/kr/encyclopedia/Market/http://www.knowledgerush.com/kr/encyclopedia/Preference/http://www.knowledgerush.com/kr/encyclopedia/Utility/http://www.knowledgerush.com/kr/encyclopedia/Time-series_model/http://www.knowledgerush.com/kr/encyclopedia/Interest/http://www.knowledgerush.com/kr/encyclopedia/Economics/
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In the conte"t of mental health, consumer is also a term applied to describe a person
living with mental illness. Concern over the best interests of consumers has spawned much
activism, as well as incorporation of consumer education into the school curriculum. *ne non&
profit publication active in consumer education is Consumer +eports.
ithin many selling companies $consumer$ has come to be a derogatory term. Meaning
$purchaser of products who is not very intelligent.$ his is in contrast to the meaning of
customer . hich is defined as an intelligent purchaser who has power in the purchasing
relationship between buyer and seller.
Consumer satisfaction
Customer satisfaction is an ultimate aim of all economic activity. Customer is the largest
economic group who are affected by public and private economic decision. Customer satisfaction
is an ultimate aim of any business. -oth survival and growth of depend on customer satisfaction.
he customer satisfaction is the relationship between the customers’ e"ception and the
mobile perceived performance. If it e"ceeds them, the customer is highly satisfied if it falls short
the customer is dissatisfied. A satisfied customer is more likely to purchase the mobile ne"t time
and will say good things about the mobile to others. According to marketers, /A satisfied
customer is our best advertisement.0 he marketing systems goal should be to ma"imi(e
consumption, Customer satisfaction. he marketing systems goals should be to ma"imi(e life
quality of customer goods and services but also the quality of environment.
Customer satisfaction deals with the characteristics of human behavior. Marketing
belongs to human behavior as it deals with buying decisions. he Advertisement copy writer has
to study psychology behind human behavior in respect of satisfaction of his wants. Consumer
satisfaction is a method by which we study the needs of the customers and what they think about
the services provided and in general in the terms of 1quality, cost, time and services2 and in this
we find better ways no how the satisfaction can be evaluated and making the services better.
Consumer behavior
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Consumer behavior refers to the behavior that consumers display in searching for
purchasing, using, evaluating and disposing of products and services that they e"pect will satisfy
their needs. he study of consumer behavior is the study of how individuals make decisions to
spend their available resources1 time,money,effort2 on consumption related items it includes the
study of what they buy,why they buy,when they buy it, where they buy it,how often they buy it
and how often they use it.
he wealth of products and services produced in a country make our economy strong.
Almost all the products, which are available to buyers, have a number of alternative
suppliessubstitute products are available to consumers, who make a decision to buy products.
herefore, a seller most of his time, seeks buyers and tries to please them. A buyer make a
purchase of a particular product or a particular brand and this can be termed /product buying
motives0. And the reason behind the purchase from a particular seller is /patranoge motives0.
hen a person gets his pay packet, and if he is educated, sits down along with his wife
and prepares a family budget, by appropriating the amount to different needs. It may happen that
after a trip to the market, they might have purchased some items, which are not in budget, and
thus there arises a deviation from the budgeted items and e"penditure. he deviation is due to the
new needs because of the arrival of new products, better display of products,credit facilities,
behavior of salesman,competitive priceetc.,
he new needs may arise because the son has a friend shoe in his mind,the daughter has a
friend’s dress in her mind, the wife has been thinking about a particular sari or he himself has
been thinking about the design of the drawing hall at his friend’s house etc. all the behavior of
human beings during the purchase may be termed as /buyer behavior0. /he process whereby
individuals decide whether, what, when,how and from whom to purchase goods and services can
be termed as the customer’s or the buyer’s behavior0.
he buyer may take a decision whether to save or spend the money. hen he decides to
spend, then there are many problems as to what to purchase, because needs are numerous, which
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lead to ranking the needs in terms of priority. hen, the problems are consumption problems&
where to buy, how to buy, from whom to buy etc.,
Factors infuencin! consumer behaviour"
he individual determinants that effect consumer behaviour are3
Motivation and involvement
Attitudes
4ersonality and self concept
5earning
Information processing
he e"ternal influences or factors are3
Cultural influences
!ub&cultural influences
!ocial class influences
!ocial group influences
6amily influences
4ersonal influences
INDI#IDU$% DETER&IN$NTS
&otivationa an' invovement
In a society, different consumers e"hibit different consumer behaviour because have
unique sets of needs. Motivation is that internal force that activates some needs and provides
direction of behaviour towards fulfillment of these needs. hile talking of motivation, we cannot
afford to forget the Maslow’s #ierarchy of needs which tells us about the primary and secondary
needs.
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6irst the biological needs of hunger, thirst, shelter are satisfied then the safety needs and
then the psychological desires of being accepted in society, seeking status, esteem, etc. are
satisfied. Involvement refers to the personal relevance or importance of a product or a service
that a consumer perceives in a given situation. 7epending on the value and personal interest, a
consumer can have a high or low involvement. 6or a professional tennis player, the choice of a
tennis racket is made with great care. #e sees the weight, si(e, grip and tension of the strings etc.
$ttitu'es
hese are our learned predispositions towards people, ob%ects and events. Attitudes are
responsible for our responses and are not inborn but are learnt from people around us. *ur
attitudes influence our purchase decisions and consumer. A person having a carefree attitude will
buy an ob%ect without much involvement. 4eople who want to play safe and avoid risk taking,
will go for a safe investment. 4eople, who want convenience and are short of domestic help, will
have a positive attitude towards canned and fro(en foods.
(ersonait) an' sef conce*t
It is the sum total of our mental, physical and moral qualities and characteristics that are
present in us and that make us what we are. Consumers try to buy the products that match their
personality. 4eople wanting to look manly will buy products with a macho appeal, which would
enhance their image and personality. 4eople, who give emphasis on comfort and care, will
purchase comfort products and so on. If one wants to emulate a film star his choice will be
different from others.
%earnin! an' &emor)
8very day we are e"posed a wide range of information, but retain only a small portion of
it. e tend to remember the information that we are interested in or, that is important to us. In a
family different member of the family are interested in different types of information which they
individually retain. Mothers retain information regarding household items. 6ather retains
information regarding his interest in cars, motor cycles and other ob%ects. Children are interested
in ob%ects of their interest like amusement parks, %oy rides, -arbie dolls, etc.
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*ur motives, attitudes, personality filters the information. 9eeping only relevant
information in our minds and, keeping the others out. his is known as selective retention. e
retain in our memory only selective information that is of interest to us.
Information *rocessin!
All consumers’ analyses and process the information they receive. hese are activities
that a consumer engages in, while gathering, assimilating and evaluate selective information and
this reflects on their motives, attitudes and personality and self concept. !ame information can be
evaluated in a different manner by different individuals. he most common e"ample is a glass
half filled with a liquid. It can be interpreted as /half empty0 or half full. he first is a pessimistic
view and the other is an optimistic view of processing the information.
E+TERN$% EN#IRON&ENT$% F$CTORS $FFECTIN, CONSU&ER -EH$#IOUR
Cutura factors
Cultural factors have the broadest and deepest influence on customer behavior.
a Cuture
Culture is the most fundamental determination of a person’s wants and behavior. he
growing acquires a set of perception, preferences and behavior through a process of sociali(ation
involving the family and other factors. A child growing up in the America as e"posed to the
following3 achievement and success, activity efficiency and practically, progress, material,
comfort, individualism, freedom.
b Sub cuture
8ach culture contains smaller sub cultures, or groups of people with shared value systems
based on common life e"periences and situations. subcultures includes nationality, religions,
racial groups and geographical regions. Many subcultures make up important market segments,
and marketers often design products and marketing programs tailored to their needs. hese
factors will affect her food preferences, clothing choices, recreation activities and career goals.
6our types of sub culture are differentiated
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:ationality group3
It has group or collection of some nation.
+eligious group3
It has group of some community peoples
+acial groups
;rouping on their race or caste
;eographical area
;rouping the buyers on an area wise
b Socia cass
Almost every society has some form of social class structure. !ocial classes are society’s
relatively permanent and ordered divisions whose members share similar values, interest, and
behaviours. !ocial class is not determined by a single factor, such as income, but is measured as
a combination of occupation, income, education, wealth and other variables. !ocial classes show
distinct product and brand preferences in areas such as clothing, home furnishings, leisure
activity, and automobiles.
Socia factors
Consumer behavior is also influenced by such social factors as reference groups, family
and social roles and status. Consumer wants, learning, motives etc. are influenced by opinion
leaders, person
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b Fami)
6amily members constitute the most influential primary reference groups shaping a
buyers behavior, we can distinguish between to families in the buyers’ life. he family is the
most important consumer buying organi(ation in society and it has been researches e"tensively.
Marketing are interested in the roles and relative influences of the husband, wife and
children in the purchase of a large variety of products and services. #usband dominates&5IC,
automobiles and =. ife dominate&washing machine, carpeting non&room furniture, kitchen
user soaps, powders. 8qual&vacation, housing, outside.
c Roes an' status
A participates in many groups throughout life&family, clubs, and organi(ation. he
person’s position in each group can be desired in terms of role and status. A role consist of the
activities that a person is e"pected to perform according to the persons around him.
(ersona factors
A buyer’s decisions are also influenced by personal characteristics notably the buyer’s
age, occupation, economic circumstances, life style and personality and self&concepts.
a $!e
4eople buy different goods and services over their lifetime. hey eat by food in the early
years, most foods. In the growing and mature years peoples tastes in clothes, furniture and
recreation is also age related.
b Occu*ation
4erson’s consumption patterns are also influenced by his occupation. A labour looks for
wore clothes, wore shoes, lunch bo"es. A company president will by e"pensive suits, air travel,
country club, membership marketers try to identify the occupational groups that none above
average interest in their products and services. Companies can even speciali(ed occupational
groups.
c Economic circumstances
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4roduct choice is greatly affected by ones economic circumstances consist of their
spendable income, savings and assets, borrowing power. It economic indicators point the
recession marketers can take steps to design, reposition and reprise their products. !o they
continued to appeal to target.
' %ife st)e
4eople coming from the same culture, social class and occupation may lead quite
different lifestyles. A person’s lifestyle is the person pattern of living in the world as e"pressed in
the person’s activities.
e (ersonait) an' sef conce*t
8ach person has a distinct personality that will influence his buying behavior. -uying
personality is meaning the persons distinguishing psychological characteristics that lead to
relatively consist and enduring responses to his environment. 4ersonality can be useful variable
in analy(ing consumer behavior, provided that personality types can be classified and that strong
correlation e"ists between certain personality types and products or brand choices.
(s)choo!ica factors
A person buying choices are influenced by four ma%or psychological factors motivation,
perception, learning and beliefs and attitudes.
a &otivation
A person has many needs at given time. !ome needs biogenic. hey arise from
psychological status of tension such as hunger thirst, discomfort, other needs are
psychologicalogenic. hey arise from psychological status of tension such as the need for
recognition esteem or belonging a need become motive when it is aroused to a sufficient level of
intensity.
b (erce*tion
A motivated is ready to act. #ow the motivated person actually acts in influenced by is
perceptional at the situation. 4erception is desired as the process by which in individual selects,
organi(e and interprets information inputs to create a meaningful picture of the world.
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c %earnin!
hen people act, they learn describes changes in an individuals behavior arising from
e"perience. 5earning theory teaches marketer that they can build up demand for a product by
associating it with strong dives, using motivating cause and priding positive reinforcement.
' -eiefs an' attitu'es
hrough acting and learning, people acquiring beliefs and attitudes. his in turn influence
their buying behaviour. A belief is a descriptive thought that a persons old about something. these
beleifs based on knowledge, opinion, or faith. Manufacturers are very interested in the
beliefs that people carry in their products and services. hese beliefs make product and brand
image and people act on their images.
An attitude describe a persons enduring favourable and unfavourable cognitive
evaluations, emotional feelings and action tendencies towards some ob%ector idea people have
attitude towards almost every thing, religions policies, clothes, music, food.
RE#IE/ OF %ITER$TURE
*verall customer satisfaction is generally considered to be a multi&attribute model
1oodruff, Cadotte and >enkins,?@B2. Components of overall satisfaction 1!A*=8+A552
that have been e"amined include product satisfaction 1e.g., *liver ?@@B #omburg and +udolph
DEE?2, interpersonal satisfaction 1e.g., 5ele and !heth ?@ Manning and +eece DEE?2,
satisfaction with the price of the offering1e.g., Anderson ?@@F2,and satisfaction with vendor
performance 1e.g., !heth ?EGB2
+esearchers have sought greater understanding of the overall satisfaction construct in
industrial markets by e"amining the phenomenon in different situation. In a study of consumer
can be simultaneously satisfied with one or more components of satisfaction related to a specific
offering while being dissatisfied with other components of satisfaction for that same offering.
hus, while e"periencing relatively high overall satisfaction, a customer might be e"tremely
dissatisfied with one or more aspects of that offering.
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8"tensive research into the factors influencing customer satisfaction has been conducted
in consumer markets 1e.g., !preng et al.?@@F3 !wan and *liver ?@@? *liver swan ?@@
Churchil and !urprenant ?@D2, but relatively little such research has been conducted in
industrial markets. In spite of this dearth of research, 4atterson, >ohnson, and !preng 1?@@G2 find
that industrial buyers, like consumers, consider multiple attributes when evaluating overall
satisfaction.
hile industrial buyers weight their %udgments differently than consumers, the
disconfirmation paradigm is applicable in -D- markets 14atterson, >ohnson and !preng, ?@@G2.
In the e"pectancy& disconfirmation model of customer satisfaction, the most widely accepted and
studied model 14atterson, >ohnson and !preng, ?@@G2, customers compare their perceptions of
performance 1not ob%ective actual performance2 with their pre&purchase e"pectations to form
%udgments about the e"perience 1*lshavsky and !preng, ?@@2.
hen e"pectations are met, i.e., when perceived performance is lose to e"pectations,
little conscious thought is given to the process. #owever, when perceived performance is higher
1lower2 than the e"pected level of performance, e"pectations are said to be disconfirmed. hen
e"pectations are lower 1higher2 than perceived performance, satisfaction 1dissatisfaction2 is
e"perienced.
According to 9einingham, Munn, and 8vans 1DEEB, p. BG2, /both practitioners and
academics have accepted the premise that customer satisfaction results in customer behavior
patterns that positively affect business results.0 hile it is highly argued that retaining current
customers is easier than attracting new ones, as it would normally cost DE times more to attract
new customers rather than keeping e"isting ones per Carson +esearch Consulting, Inc. report.
Continuous customer satisfaction from the offered product will lead to an easy purchase decision
every time the need for these products and services arises. hus, customers tend to become loyal
to these providers, where their satisfaction helps to increase customer loyalty, reducing the need
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to allocate marketing budget to acquire new customers, where their word&of&mouth will also
bring potential customers, increasing revenue and profit.
According to #oyer and MacInnis 1DEE?2, satisfied customers form the foundation of any
successful business as customer satisfaction leads to repeat purchase, brand loyalty, and positive
word of mouth.
As positive and negative feelings can coe"ist, customers may like parts of the service while
re%ecting other parts.
According to illard #om !atisfaction is the state felt by a person who has e"perienced a
performance 1or outcome2 that has fulfilled his or her e"pectations. !atisfaction is thus a function
of relative levels of e"pectation and perceived performanceH8"pectations are formed on the
basis of past e"periences with the same or similar situations, statements made by friends and
other associates, and statements made by the supplying organi(ation. 19otler Clarke, ?@G2.
According to 9ano Model heory of customer satisfaction. -asically 9ano saw three
types of customer satisfaction3 required 1basic quality also threshold requirements2, more is
better 1performance quality2 and delighter 1e"citement quality2.
Customers e"pectations change over time. *ften what was once enough to delight a customer
1remote control for a =2 becomes e"pected. *nce a feature is e"pected the organi(ation gets no
credit for providing it they only risk a negative reaction if they fail to provide it.
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AndrewMennie,;eneralManager,e;ain 8ver wondered how much customer satisfaction
is worthJ e all know and accept that it is a strategic goal for all organisations involved in the
delivery of customer service
Ket in all my e"perience as a professional in this arena, I have never come across a
customer services director who could articulate the financial value of customer satisfaction to
their business. Conversely, I have never met a Customer !ervice 7irector who wasn’t measured
on it. #ow bi(arre. -ig business is happy to measure it but doesn’t know what it’s worth.
According to &ichae D. 0ohnson
?2 customi(ation is more important than reliability in determining customer satisfaction,
1D2 customer e"pectations play a greater role in sectors in which variance in production and
consumption is relatively low, and
1B2 customer satisfaction is more quality&driven than value& or price&driven. he authors
conclude with a discussion of the implications of AC!I for public policymakers, managers,
consumers, and marketing in general
According to *
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According to Thomas %eutbecher /his pro%ect work deals with a customer satisfaction survey,
conducted in a cafL in downtown #elsinki. he main ob%ective is to find weak points of the
business from a customer perspective in order to give recommendations for optimising the
companies performance0.
,ossar) Enton)"
he e"tent to which a customer’s e"pectations of product quality, service quality, and price are
met.
oter"
Customer satisfaction is the measure of how well our 4+*7)C!, !8+=IC8,
!)44*+ and 8:;A;8M8: are able to meet the customer 848CAI*:!.
Customer satisfaction is a measure of how well ourH
4+*7)C!& 4roducts including physical products and services.
!8+=IC8& Customer service post sale. his includes responding to customer queries and issues.
!)44*+& +epair, maintenance and upkeep of your products post sales.
8:;A;8M8:8& 8ngaging with customer, apart from the above mentioned conte"ts 1product,
service and support2. his includes offering new products, schemes, up&sell and cross&sell.
,ar) S. ,oo'man"
http://www.grin.com/profile/1759/thomas-leutbecherhttp://www.grin.com/profile/1759/thomas-leutbecherhttp://www.grin.com/profile/1759/thomas-leutbecher
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7efining customer satisfaction is a very important undertakingNone that even the most
customer&focused companies, fail to do. If we don’t define it carefully, how can we monitor and
measure it, let alone produce it on a consistent and reliable basisJ
oter2 (hii*"
;oal&oriented, integrated philosophy practiced by producers of goods and services that
focuses on satisfying the needs of consumers over the needs of the producing company. he
marketing concept holds that the desires and needs of the target market must be determined and
satisfied in order to successfully achieve the goals of the producer
O-0ECTI#E OF STUDY
he main ob%ectives of the study is to reveal the customer satisfaction about Acer
laptop. o study the customers satisfaction towards product quality, price, after sales service of
the company. o study the opinion of customers regarding product and services of Acer laptop.
o study customers perception of product quality.
o identify the effect of advertisement
Analy(ing the problem faced by customers in the company.
o propose recommendations'suggestions for improvement.
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SCO(E OF THE STUDY
he scope of the study is limited to !alem town.
It is focused on the satisfaction of the customers towards AC8+ laptop
he survey investigates the customer satisfaction on the brands equality, quality, price,
awareness, and other attitude related to the product towards the company and industry at
large. his study also looks at customer satisfaction levels on quality of both product and
service availed.
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%I&$T$TION OF THE STUDY
he study restricts itself within !alem town.
he study assumes that the information was given by the customer without any bios.
he study is done based on the opinions of the sample taken at random, the si(e of which
is ?EE.
he researcher found it difficult to collect the questionnaire, since some of the
respondents did not give proper response in the sales point.
he customers did not respond properly during peak hours. he pro%ect was only for B months. !o there was time constraint.
RESE$RCH ÐODO%O,Y
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INTRODUCTION
+esearch Methodology is a systematic way to solve a research problem It includes
various steps that are generally adopted by a researcher in studying the problem along with the
logic behind them. he present study was conducted at AC8+ 5A4*4 in !alem town.
RESE$RCH DESI,N
/A +esearch 7esign is the arrangement of conditions for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with the economy in
procedure0. he research design adopted for the studies is descriptive design. he researcher has
to describe the present situation in order to know the behavior of the consumers. #ence
descriptive research study is used. 7escriptive research can only report what has happened and
what is happening.
(ERIOD OF STUDY
he duration taken by the researcher for the data collection and analysis regarding the customer
satisfaction of AC8+ 5aptop in !alem town is for three months.
ÐOD OF CO%%ECTION
he study basically uses primary and secondary data. 4rimary data means data which is fresh
collected data. 4rimary data mainly been collected through personal interviews, surveys etc.
!econdary data means the data that are already available. ;enerally speaking secondary data iscollected by some organi(ations or agencies which have already been processed when the
researcher utili(es secondary data the process of secondary data collection and analysis is called
desk research. !econdary data provides economy in time and cost. It is easily available and
unbiased. !econdary data may either be published data or unpublished data. 6or this study
secondary data were collected from the annual reports of the company and from the company
website. he study depends mainly on the primary data and secondary data namely the te"t
books, %ournals, newspapers, maga(ines and internet.
S$&(%IN,
(O(U%$TION
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