Consumer Buying Behaviour Toward LG’s Oven In

A study on Consumer Buying Behaviour toward LG’s oven in Surat city

Prof. V. B. Shah Institute Of Management-VNSGU 1

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.

INTRODUCTION



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$4,400-

US$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.



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

KOREA SAMSUNG

HYUNDAI

TCL CHINA

HAIER

PHILIPS HOLLAND OSKAR

NATIONAL

ONIDA

VIDEOCON

BPL

GODREJ

VOLTAS

IFB

http://www.gallawa.com/microtech/magnetron.html



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 Public

Founded 1947

Founder Koo In-Hwoi

Headquarters Seoul, South Korea

Area served Worldwide

Key people Koo In-Hwoi

(Founder)

Koo Bon-Moo

(Chairman & CEO)

Yu Sig Kang

(Vice Chairman & Co-CEO)

Juno Cho (EVP & COO)

Industry Conglomerate

Products Electronics, chemicals, telecommunications, engineering

Revenue US$ 89.5 billion (2010) , 48.24 billion (2011)

Net income US$ 5.8 billion (2010) , 1.1 billion (2011)

http://en.wikipedia.org/wiki/GoldStar

http://en.wikipedia.org/wiki/Category:Types_of_companies

http://en.wikipedia.org/wiki/Public_company

http://en.wikipedia.org/wiki/1948

http://en.wikipedia.org/wiki/Entrepreneur

http://en.wikipedia.org/wiki/South_Korea

http://en.wikipedia.org/wiki/Entrepreneur

http://en.wikipedia.org/wiki/Vice_president

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/Conglomerate_%28company%29

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Electronics

http://en.wikipedia.org/wiki/Chemical_substance

http://en.wikipedia.org/wiki/US$

http://en.wikipedia.org/wiki/Net_income




Total assets US$ 62.0 billion (2010)

, 28.7 billion (2011)

Employees 186,000 (2009) , 29,554 (2011)

Subsidiaries 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.

http://en.wikipedia.org/wiki/Asset


http://en.wikipedia.org/wiki/Subsidiary

http://en.wikipedia.org/wiki/LG_Electronics

http://en.wikipedia.org/wiki/LG_Display

http://en.wikipedia.org/wiki/LG_Telecom

http://en.wikipedia.org/wiki/LG_Chem

http://en.wikipedia.org/wiki/LG_Life_Sciences

http://en.wikipedia.org/wiki/LG_Solar_Energy

http://www.lgcorp.com/



MILESTONES

[Table-2]

Year Content

1958 Founded as GoldStar

1960’s

Produces Korea's first radios, TVs, refrigerators, washing machines,

and air conditioner

1995 Renamed LG Electronics

Acquires US-based Zenith

1997

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

1998 Develops world's first 60-inch plasma TV

1999 Establishes LG Philips LCD, a joint venture with Philips

2000

Launches world's first Internet refrigerator

Exports synchronous IMT-2000 to Marconi Wireless of Italy

Significant exports to Verizon Wireless in U.S.

2001

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

2002

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

2003

Enters Northern European and Middle East GSM handset market

Achieves monthly export volume above 2.5 million units (July)

Top global CDMA producer

2004

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

2005

Becomes fourth-largest supplier of the mobile handsets market

worldwide

Develops world's first 3G UMTS DMB handset, 3G-based DVB-

Hand Media FLO

DMB Phone with time-shift function and DMB notebook computer

Establishes LG-Nortel, a network solution joint venture with Nortel



2006

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

2007

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

2008

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

2009

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™

Awards

[Table-3]

Award Name Awarded By Year

Most Admired MNC A&M Magazine 1999

No.1Consumer Durable Company A&M Magazine 1999

Gold Rating for Environmental Performance CII 2003

No. 1Awareness Award Business Today 2003

Most Admired Product – Microwave EFY 2004

Most preferred Brand- CTV & WM CNBC Consumer

Vote Awards 2005

Business Leadership Award in Consumer Durable

Sector NDTV 2007

EFY Reader's Choice Awards 2008 –Microwaves EFY 2008



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) Exhibitions are conducted from time to time.

2) Society and college activities are conducted.

3) Hoarding, Posters, banners are used so as to grab the attention of the costumers.

4) Day to day advertisement in leading newspaper.

5) Discount at festival time.

6) For dealer relationship they arrange dealer meeting at several time in the year

7) 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.



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, organization

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 customer’s or the buyer’s 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.

Theoretical Background

UTIVE SUMMERY



MEANING:-

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.



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



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 brand’s

features, and motivate store personnel and others to influence the final brand

choice.



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



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.



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 buyer’s satisfaction is a function of closeness between the buyer’s

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.



2.4 Factors Influencing Buyer’s 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.



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



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



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 people’s 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.



3.1 Problem Definition

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.”

PROBLEM DEFINITION

UTIVE SUMMERY



3.2 Scope of the Study

Researcher has selected the subject entitle “Consumer buying behavior toward LG’s

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.”



3.3 Objectives of the Study

1) Primary Objective:

The main objective of this project is to study the consumer buying behaviour

towards LG’s oven in Surat city.

2) Secondary Objective:

To know the buying criteria of customers when they go for purchase LG’s

oven.

To know what is the association between brand and income, brand and status.



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.



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 6

th 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.



4.1 Introduction

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.

RESEARCH METHODOLOGY

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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 the”who, 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:



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.



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.



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.



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 : Surat city

Survey Time : 6th January to 6

th 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.



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.



Q:-1 Do you have oven?

[Table-4]

Response No. of Respondents Percentage

Yes 171 68.40%

No 79 31.60%

Total 250 100%

[Chart-1]

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 don’t have any microwave oven.

DATA ANALYSIS

UTIVE SUMMERY

Yes68%

No32%

Do you have oven?



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

[Table-5]


Yes 59 74.68%

No 20 25.32%

Total 79 100%

[Chart-2]

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.

Yes, 74.68%

No, 25.32%

If no, then would you like to purchase oven in

future?



Q:-2 Which other branded companies you are aware of oven in the market?

(Choose multiple answers)

[Table-6]

Company Name No. of Respondents Percentage

LG 210 91.30%

Godreg 168 73.04%

Samsung 175 76.09%

Sharp 49 21.30%

Panasonic 106 46.09%

Electrolux 69 30.00%

Sanyo 57 24.78%

Others 77 33.48%

Total 230 100%

[Chart -3]

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 LG’s microwave oven while 21.30 %

( i.e., 49) respondent are aware about Sharp’s microwave oven.

0

50

100

150

200

250 210

168 175

49

106

6957

77

No. of

Res

pon

den

ts

Company Name

Which other branded companies you are aware of

oven in the market? (Choosemultiple answers)



Q:-3 Which company’s oven would you like to purchase in future from above

mentioned company?

[Table - 7]

Company Name No. of Respondents Percentage

LG 171 74.35%

Godreg 11 4.78%

Samsung 29 12.61%

Sharp 0 0.00%

Panasonic 7 3.04%

Electrolux 4 1.74%

Sanyo 4 1.74%

Others 4 1.74%

Total 230 100%

[Chart – 4]

Interpretation:-

From the research researcher found that most of respondent want to purchase LG’s

and Samsung microwave oven in near future while other company’s oven like

Godreg, Panasonic, Electrolux, Sanyo, Sharp, Onida, bajaj,and etc are very less

demand in the future .

0

20

40

60

80

100

120

140

160

180

LG Godreg Samsung Sharp Panasonic Electrolux Sanyo Others

171

11

29

07 4 4 4

No. of

Res

pon

den

t

Company Name

Which company’s oven would you like to purchase in

future from above mentioned company?



Q:-4 Main reason for selecting the oven of above mentioned company?

[Table-7]

[Chart -4]

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.

Attribute/ Reason No. of Respondents Percentage

reasonable price 178 77.39%

Design 71 30.87%

Scheme 85 36.96%

Maintenance 72 31.30%

Durability 53 23%

After sales service 107 46.52%

Low electricity

consumption 104 45.22%

Total 230 100%

0

50

100

150

200

resonabal

price

Design Scheme Maintenance Durability After sales

service

Low

electricity

consumption

178

7185

7253

107 104

No. of

Res

pon

den

ts

Attribute

Main reason for selecting the oven of above

mentioned company



Q:-5 Who influence in your decision for purchasing oven?

[Table-8]

Variable No. of Respondents Percentage

Family member 77 33.48%

Friends 17 7.39%

Relative 27 11.74%

Advertisement 45 19.57%

Neighbor 52 22.61%

Any other 12 5.22%

Total 230 100

[Chart-5]

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.

0

20

40

60

8077

17

27

4552

12

No. of

Resp

on

den

ts

Attribut

Who influence in your decision for purchasing oven?



Q:-6 What important criteria you consider while purchasing oven?

(Rank 1 to 8 in descending order)

[Table-9]

Attribute 8 7 6 5 4 3 2 1 Total

Price 87 62 39 16 5 4 4 13 230

Size 14 13 10 12 32 37 68 44 230

Design 3 8 12 27 67 60 32 21 230

Electricity

Consumption 38 44 59 33 22 14 9 11 230

Durability 15 11 7 21 33 20 43 80 230

Maintenance 20 18 19 26 27 47 49 24 230

Scheme 22 34 40 42 33 24 18 17 230

After Sales

Service 31 40 43 53 11 24 8 20 230

[Chart - 6]

Interpretation:-


(i.e., 87) has given 8th rank to the price and 34.78 % (i.e., 80) has given 1

st rank to the

durability. So, company should more conscious about the price rather than durability.

0

20

40

60

80

100

No. of

Res

pn

den

se

Attributes

What important criteria you consider while

purchasing oven?

8

7

6

5

4

3

2

1



Q:-7 From which source you have seen the advertisement of your above

mentioned company for oven?

[Table-10]

Attribute No. of Respondents Percentage

TV 60 26.09%

Hoardings 31 13.48%

News paper 66 28.70%

Radio 41 17.83%

Other 32 13.91%

Total 230 100%

[Chart -14]

Interpretation:-


(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.

0

10

20

30

40

50

60

70

TV Hoardings News paper Radio Other

60

31

66

41

32

No. of

Res

pon

den

ts

Attribut

From which source you have seen the advertisement

of your above mentioned company for oven?



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

[Table-11]


Yes 158 68.70%

No 72 31.30%

Total 230 100%

[Chart -15]

Interpretation:-


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.

Yes69%

No31%

Does you select the brand according to your income

level?



Q:-9 Does you select the brand for status purpose?

[Table-12]

Attributes No. of Respondents Percentage

Always 73 31.74%

Sometimes 104 45.22%

Never 53 23.04%

Total 230 100

[Chart -16]

Interpretation:-


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.

0 20 40 60 80 100

Always

Sometimes

Never

73

104

53

No. of Respondents

Att

rib

ut

Does you select the brand for status purpose?



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

[Table-13]

Attribut No. of Respondents Percentage

Retail store 46 20.00%

Authorized dealer 72 31.30%

Hyper marts (malls) 50 21.74%

Company’s outlet 34 14.78%

Franchise 28 12.17%

Total 230 100%

[Chart -17]

Interpretation:-


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.

0

20

40

60

80

Retail store Authorized

dealer

Hyper

marts

(malls)

Company’s

outlet

Franchise

46

72

50

3428

No.

of

Resp

on

den

ts

Attribut

Where would you like to purchase oven?



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

[Table-14]

Variable No. of Respondents Percentage

Good after sales service 67 29.13%

Near to home 44 19.13%

Provide good financial schemes 74 32.17%

Have good co-operative staff 30 13.04%

Others 15 6.52%

Total 230 100%

[Chart-18]

Interpretation:-

Interpretation:-


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.

0

10

20

30

40

50

60

70

80

Good after sales service

Near to home Provide good financial schemes

Have good co-operative

staff

Others

67

44

74

30

15

No. of

Res

pon

den

ts

Attribut

Why you prefer oven from the above mentioned

place?



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 LG’s 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 = 𝑝−𝑃

𝑃𝑄/𝑛

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

ǀZcalǀ = 2.1402

Ztab = 1.96 ∴ Zcal > Ztab

So, Ho is reject ex. 80% of customer are ready to purchase LG’s oven in future.

HYPOTHESIS TESTING

UTIVE SUMMERY



From the research researcher had finds 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 LG’s 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 LG’s and Samsung microwave oven

while other company’s 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 LG’s 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.

FINDINGS

UTIVE SUMMERY



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



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.

SUGGESTIONS

UTIVE SUMMERY



After the completing research on the topic of “Consumer Buying Behaviour towards

LG’s Oven” it can be conclude that majority of customers which are ready to buy the

LG’s oven.

As LG is the largest oven manufacturing company in India. Maximum numbers of

visitor are preferred to buy the LG Company’s 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

Company’s oven which is good sign for the company.

It can be concluding that the brand image of LG is very good in the customer’s mind

so that they are competing other players.

CONCLUSION

UTIVE SUMMERY

Consumer Buying Behaviour Toward LG’s Oven In

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