Consumer Behaviour Towards Sale Promotion On Colgate Toothpaste at Udaipur
Consumer Behaviour Towards Sale Promotion On Colgate Toothpaste at Udaipur
FACULTY OF MANAGEMENT
Pacific Academy of Higher Education and Research
Pacific Hills, Airport RoadPratap Nagar Extension
Udaipur 313003
Declaration
Date:
i
Preface
Consumer King - There is deep truth in this statement. At present the success of any
company depends on customer satisfaction. To satisfy consumers, companies must
know about consumer behaviour. Under these circumstances, it is very difficult to
understand consumers because of changes in technological innovation and changes in
lifestyle. According to the view given by the researchers, there are two factors that
influence consumers such as internal and external factors. It is difficult to classify
consumers based on traditional demographic factors and unless their thought processes
and purchasing behaviour are solely the decisions made on the design and packaging of
products, brands and distribution channels tend to be inaccurate. With the inevitability
of a big change on the horizon. Indian companies must learn from their Western
counterparts, not only to identify the source, timing and direction of change affecting
India, but also from new competencies and perspectives that will be able to respond to
these changes, broadly and effectively.
ii
ACKNOWLEDGEMENT
It is not possible to prepare a project report without assistance & encouragement of other
people. This one is certainly no exception. On the very outset of this report, I would like
to extend my sincere & heartfelt obligation towards all the personages who have helped
me in this endeavour. Without their active guidance, help, cooperation & encouragement,
I would not have headway in the project.
I am ineffably indebted to Shivoham Singh for conscientious guidance and
encouragement to accomplish this assignment. I am extremely thankful and pay my
gratitude to my faculty MR. Shivoham Singh for her valuable guidance and support on
completion of this project in its presently.
I extended my gratitude to Pacific Institute of Management for giving me this
opportunity. I also acknowledge with a deep sense of reverence, my gratitude towards my
parents and member of family& friends, who has always supported me morally as well as
economically.
At last but not least gratitude goes to all of my friends who directly or indirectly helped
me to complete this Dissertation.
iii
Content
Chapter 1 Introduction 1-7
Chapter 5 Bibliography 30
iv
Chapter: 1
Introduction
Consumer Behaviour is termed as the behaviour consumers seek for the purchase,
use, evaluation, and disposal of products, services, and ideas that they expect will
meet their needs. The study of consumer behaviour is not only related to what
consumers buy, but also why they buy it, when and how they buy it, and how often
they buy. It is concerned with learning the specific meanings that the product has for
consumers. Consumer research occurs at every stage of consumption, before
purchase, during purchase, and after purchase.
As a consumer we all are unique and uniqueness is reflected in the consumer pattern
and the process. The study of the consumer behaviour provides us with the reason
why consumers differ from one another in buying using products and services. We
receive stimuli from the environment and the specifies of the marketing strategies of
different products and strategies of different products and services, and respond to
these stimuli in terms of either buying or not buying product. In between the stage
of recieving the stimuli and responding to it, the consumer goes through the process
of making the decision.
The scope of consumer behaviour includes not only the actual buyer and the act of
his purchase, but also the different roles played by different individuals and their
influence on the final purchase decision. Personal consumer behaviour is influenced
by economic, social, cultural, psychological and personal factors.
A consumer is an ultimate buyer. However, the term buyer is broader than
consumer. There are two category of Buyers namely, individual Consumer and
Business Buyer. An Individual consumer buys for a personal consumption. But a
business buyer buys thing for the manufacturing other products or for reselling or
for the use in the running of his enterprise.
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The study of consumer behaviour is concerned not only with what consumers buy,
but also with why they buy it, when and how they buy it, and how often they buy it.
It is concerned with learning the specific meaning that products hold for consumers.
Consumer research takes place at every phase of consumption process, before the
purchase, during the purchase and after the purchase.
The study of consumer behaviour is concerned not only with what consumers
buy,but also with why they buy it, when and how they buy it, and how often
they buy it. It is concerned with learning the specific meanings that products hold
for consumers. Consumer research takes place at every phase of consumption
process, before the purchase, during the purchase and after the purchase.
Sale Promotion
Sales promotion is a part of promotional mix. Sales promotion refers to the activities
which supplement and co-ordinate personal selling and advertising to attract
customers to buy a product. Sales promotion methods include displays,
demonstrations, expositions, exhibitions and other non-recurrent selling efforts
which aim at impelling spot buying action by prospective customers.
Sale promotion techniques are indirect and non-personal. Sales promotion activities
are more common for consumer’s goods marketing than for industrial goods.
Consumers are attracted by displays, packaging and publicity. Sales promotion
devices are also a source of information to the customers.
Sales promotion refers to the activities which supplement and co-ordinate personal
selling and advertising to attract customers to buy a product. Sales promotion
methods include displays, demonstrations, expositions, exhibitions and other non-
recurrent selling efforts which aim at impelling spot buying action by prospective
customers.
Sales promotion devices can include premiums, coupons, contests temporary price
reduction, free goods, letters to trade, literature, educational material, displays and
trade shows. Sales promotion takes into consideration the communication gaps that
always exist between the producer and the consumer. Sales Promotion should
therefore be closely coordinated with advertising and personal selling.
2
Sale Promotion – 7 Tools of Sales Promotion
A variety of sales promotion types are available to the small business owners. Some
of them are discussed below. Some authors also term them as tools of sales
promotion.
5. Fairs and Exhibitions – Display of goods in fairs and exhibitions also leads to sales
promotion. Now-a-days, fairs and exhibitions are held at national and international
levels. In such exhibitions, there is not only product promotion, but the industrialists
also get some innovative ideas which prompt them to develop their products for
benefit of all.
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7. Free Goods – This is also an important sales promotion device meant for the
middlemen. In this method, the middlemen get few goods free of cost, particularly
after crossing the minimum limit.
1. Increasing Competition
Advertising, personal selling and other methods of promotion produce slower sales
response compared to sales promotion. Sales promotions are mostly for short
duration, for a specified period, leading to a sense of urgency in consumers to buy
now. This creates an immediate positive impact on sales.
In many product categories, there is a proliferation of brands; many of them are line
extensions and me-too brands. Most brands are being perceived by consumers to be
more or less similar within a given price range because of the inability of
manufacturers to develop truly differentiated products. Under these circumstances,
advertising messages are unable to strongly influence the consumers’ perceptions
and create brand franchise. As a result of these perceptions of similarity among
brands, marketers have no way but to compete on the basis of extra benefit offered
through sales promotion. Competing companies struggle to capture market share by
using every tool likely to bring sales success.
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5. Consumer Acceptance
All the advertising media have become quite expensive. Audio-visual medium, which
is considered as the most effective for short-duration ads, may cost in excess of
rupees One lakh for a ten second exposure during prime time. In many cases,
consumers have reached a point of boredom due to excessive advertising on TV.
Some consumers even consider advertising as an intrusion into their privacy, leading
to zapping (surfing channels). Firms with small budgets cannot compete with big
companies, which spend huge sums of money on advertising. For these small budget
firms, sales promotion is a more cost-effective promotion method to produce sales
results.
Retailers and wholesalers have become powerful and find themselves in a position
to demand extra facilities from the companies. They Channel members demand
more incentives to get the desired results. Manufacturers do not seem to have any
alternatives but to concede to their demands, keeping in view the competitive
market conditions. In shopping malls like Globus and Lifestyle, decent margins have
to be paid to them in order to have shelf visibility for your brand.
Towards achieving the long-term profit goals, manufacturers try to attain high sales
volume. Brand managers and product managers find themselves under pressure to
achieve short-term sales results for the sake of their careers.
History
“William Colgate & Company” was started in 1806. William Colgate was a maker of
soap and candle by himself. The firm began selling bars in regular weights in the
1840s. The company was well-run as “Colgate & Company” under the managing of
his son, “Samuel Colgate” after the death of William Colgate. His son Colgate
introduced a perfumed soap in 1872, by the name of “Cashmere Bouquet” and then
5
in 1873 the firm introduced toothpaste, aromatic toothpaste sold in jars. In 1908
they initiated mass selling of toothpaste in tubes.
Colgate-Palmolive has extended been in fierce opposition with Procter & Gamble,
the world’s largest soap and detergent maker. P&G introduced its Tide laundry
detergent shortly after World War II, and thousands of consumers turned from
Colgate’s soaps. When P&G started putting fluoride in its toothpaste after that the
Colgate lost its figure one place in the toothpaste market. In the commencement of
television, Colgate-Palmolive wished to compete with Procter & Gamble as a sponsor
of soap operas. The company sponsored many events in part; they were for the most
part famous for being the full sponsor of the entertainment in instalments The
Doctors.
Today, Colgate has frequent subsidiary organizations with a leg on each side of 200
countries, but it is publicly scheduled in only two, the United States and India.
The Indian oral care market has shown significant growth over the years. The market
is primarily driven by changes in the lifestyle of Indian consumers, demand for
premium products, and increase in disposable income and awareness of hygiene and
hygiene. Increased awareness about oral hygiene has created a huge demand for
premium and innovative products in metros and urban cities. The penetration rate of
oral care products is higher in urban areas than in rural areas. Low penetration rates
in the rural sector provide latent opportunities for global and domestic players to
increase their oral care products presence in India. As a result, players are now
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concentrating more in cities and villages to increase sales penetration of their
products. Rural Indian consumers have started transitioning from toothpaste and
toothbrushes to tooth powder. Premium products such as mouthwash have gained
popularity among upper middle class consumers. Although the market is growing
rapidly, the per capita consumption of oral care products in India is much lower than
in countries like UA, China etc.
According to "Indian Oral Care Market Review, 2016-2022", the oral care market is
classified into five main categories. Toothpaste, toothbrush, tooth powder,
mouthwash and others. Toothpaste dominates the space as it is a major product for
Indians in their daily hygiene care and their heavy presence in urban and rural India.
The toothpaste market is divided into two types of products - white and ordinary gel.
Regarding its benefits, toothpaste is also divided into standard / normal, herbal /
natural, sensitivity and beauty and whiteness. Amidst all this, the demand for herbal
toothpaste in the country is increasing and is currently a preferred trend among
consumers and companies, who are trying to launch more and more herbal variants.
Toothbrushes are the second largest category in the oral care market. They have two
types of products, one is manual and the other is electric and battery powered.
Manual toothbrushes have great potential in the Indian oral care market, while
electric toothbrushes are a type of specialty product where many wealthy people
use them.
Mouthwash is included in the premium category and as a secondary product for oral
hygiene. Consumers turn to mouthwash products for better oral hygiene. Other
products such as tongue cleaner and dental floss are gradually developing in the
Indian market. Some global players such as Colgate Palmolive India, Hindustan
Unilever, Gillette India Limited (P&G), GSK Consumer Healthcare and Johnson &
Johnson have strong presence in India. Dabur India and PatanjaliAyurved are the
only two strong domestic players in the market.
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Chapter: 2
Research Methodology
A broad definition of research is given by Martyn Shuttle worth- “In the broader
sense of the world, the definition of research includes any gathering of data,
information and facts for the advancement of knowledge”.
Methodology:
The Process used to collect information and data for the purpose of making business
decisions. The Methodology may include Publication research, interviews, surveys
and other research techniques and could include both present and Historical
Information.
Types of Research
Quantitative research
Qualitative research
Qualitative research is the approach usually associated with the social constructivist
paradigm which emphasises the socially constructed nature of reality. It is about
recording, analysing and attempting to uncover the deeper meaning and significance
of human behaviour and experience, including contradictory beliefs, behaviours and
emotions. Researchers are interested in gaining a rich and complex understanding of
people’s experience and not in obtaining information which can be generalized to
other larger groups.
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Research Design:
Area of Study:
I have covered only Udaipur City for the filling of the questionnaires of which it
consists of 20 questions and the topic is Consumer Behaviour towards Sale
Promotion on Colgate Toothpaste.
Sample:
The sample is the collection of elements or objects that process the information
sought by the researcher and about which inferences are to be made. It includes
population who are of any age.
Sample Design:
Sample design refers to the means by which one selects the primary units for data
collection and analysis appropriate for a specific research question.
Sample Size:
The sample size which is chosen is 100. It denotes the number of elements to be
included in the study.
1. Primary Sources:
A primary source is an original object or document- the raw material or
first-s hand information. Primary sources include historical and legal
documents, eyewitness accounts, results of experiments, statistical data,
pieces of creative writing and art objects. Some of the two Primary sources
are:
• Questionnaires:
The questionnaire is made for the consumer feedback for new
products such as new Colgate Toothpaste.
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• Observation:
The observation was used to find out the various promotional
activities carried out by the Colgate.
2. Secondary Sources:
A Secondary Source is something written about a primary source.
Secondary sources include comments on, interpretation of, or discussions
about the original material. One can think of secondary sources as second-
hand information.
Guideline Report:
Literature Review:
Research Objectives
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Scope of the Study:
• The research focuseson the several features of the Colgate toothpaste and to
know the suggestion of the user which may help the company inn further
development of the Colgate toothpaste.
• To know the kind of offers offered by the Colgate toothpaste.
• To know the sale promotional schemes whether it is increasing or not.
Limitations of Study:
• There was a limited span of time for the project work in which the study of
‘Sale Promotion activities carried out for the Colgate toothpaste’ is to be
done.
• The project is restricted only to Colgate toothpaste.
• The limitation for the study of promotional Activities carried out for Colgate
in Udaipur region only.
• Under the study illiterate people are excluded.
• People were hesitant to disclose the true facts.
The chi square test is one of the simplest and most widely used non parametric tests
in statistical work. It makes no assumptions about the population being sampled.
The quantity 𝑥2 describes the magnitude of discrepancy between theory and
observation, i.e., with the help of 𝑥2 test we can know whether a given discrepancy
between theory and observation can be attributed to chance or whether it results
from the inadequacy of theory to fit the observed fit the observed facts. If 𝑥2 is
zero, it means the observed and expected frequencies completely coincide. The
greater the value of 𝑥2, the greater would be the discrepancy between observed and
expected frequencies. The formula for computing chi-square is:
𝑥2= ∑(𝑂−𝐸)2 /𝐸
O = Observed Frequency
E= Expected or theoretical Frequency
The calculated value of 𝑥2 is compared with the table value of 𝑥2 for given degrees
of freedom at specified level of significance. If the calculated value of 𝑥2 is greater
than the table value, the difference between theory and observation is considered to
be significant, i.e., it could not have arisen due to fluctuations of simple sampling. On
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the other hand, if the calculated value of 𝑥2 is less than the table value, the
difference between theory and observation is not considered significant, i.e., it could
have arisen due to fluctuation of sampling.
The following five basic conditions must be met in order for chi-square analysis to be
applied:
To facilitate its many applications, the chi square distribution has been extensively
tabulated. The table of areas found in the appendix gives value of 𝑥2 for various
probabilities and various degree of freedom. The value of α is given in the column
headings, the degrees of freedom v are given in the rows and the body of the table
gives the 𝑥2 values. As depicted in the following figures, the value of 𝑥2 in the
appendix table are given for various combination of b and 1-α.
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Chapter: 3
The data has been collected with the help of questionnaire. And it has been analysed
and interpreted with help of tale along with relevant descriptions. Appropriate
treatment has been done to the raw and logical conclusions are drawn based on the
feelings
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Table 2: Consumer Brushing Pattern:
Once
twice
Thrice
Interpretation: With a view to finding the brushing frequency of consumer, the data
pertaining to this is presented in table 2. An examination of the data reveals that
40% of the consumers brushing once. 58.57% of the consumers brushing twice, and
1.42% brushing thrice. So the frequency of brushing was higher in Udaipur city as
per the dentist advice 2 times brushing.
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Table 3: Frequency of Purchase
Once 58 82.85
Twice 11 15.71
More than Two 1 1.42
Once
Twice
More than
Two
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Table 4: Most Preferred Brands:
Interpretation: With a view to finding the most preferred brand of the consumer, the
data pertaining to this is presented in table 4. An examination of the
table reveals that most of the people using Colgate, Dabur, Pepsodentand other
products. As per the respondents 53.33% using the Colgate brand.
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Table 5: Usage of ToothPaste Brand
Interpretation: With a view to finding the Usage of toothpaste brand, the data
pertaining to this is presented in table 5. An examination of table reveals that most
of the consumers used two brands.
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Table 6: Factor that makes consumer to buy toothpaste
Interpretation: With a view to finding the factor which consumer to buy toothpaste,
the data pertaining to this is presented in table 6. An examination of table reveal
that, consumers were influenced by price, availability, and packaging. Of the total
respondents 34.28% of them are influenced by price, while 22.85% & 25% are
influenced by availability and packaging, and All of above and others are influence by
28.57% and 25% respectively. When the respondents were asked to mention the
factors which motivate them to buy a particular brand of toothpaste their replies are
mostly price and availability.
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Table 7: Preference of toothpaste
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Table 8: Preference of Attribute
Healthy Tooth & Germs Long Lasting Freshness Prevention of Tooth Decay
Whiteness Use of Normal herbs
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Table 9: Person who influenced consumer to purchase toothpaste
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Table 10: Which mode of promotion consumer gets attached
Advertisement 45 64.28
Celebrity 5 7.15
Banner 0 0
Others 20 28.57
Interpretation: With a view to finding the most preferred brand of the consumer, the
data pertaining to this is presented in table 10. An examination of the table reveals
that, most of the consumer preferred advertisement and other. Majority of the
respondents 64.28% preferred advertisements and 28.57% of the respondents
preferred other mode of promotion. Advertisement creates attention and stimulates
the consumer to buy particular brand.
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Table 11: Factors which makes consumer to buy toothpaste
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Table 12: Switching to other brand
Interpretation: With a view to finding switching to other brand, the data pertaining
to this is presented in table 12. An examination of the table reveals that, most of the
consumers switch to other brand due to strong schemes of brand, next factor was
consumer brand is not available and advertisement impact, price rise of current
brand and to try new one, etc. In this analysis 50% respondents changed to the
brand due to the schemes of the brand, 14.28% respondents changed due to
consumer brand is not available, 21.42% respondents changed due to advertisement
impact, 7.14% respondents changed due to price rise of the current brand and 5.71%
respondents changed due to try new option.
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Table 13: Way to buying toothpaste
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Class Intervals Frequency Mid value FM
7-18 14 20 280
19-30 26 28.57 742.82
31-45 12 15.71 188.52
45 Above(70) 18 21.42 385.56
∑f=n= 70 ∑Fm = 1597
∑𝑓 = 𝑛 = 70∑𝑓𝑚 = 1597
∑𝑓𝑚 1597
Mean= = = 17.74
∑𝑓 70
∑f=n=70
Standard Deviation= 𝝈2
∑𝐟(𝑴−𝑴𝒆𝒂𝒏)𝟐 3414.1
𝝈2 = = = 49.47
𝐧−𝟏 69
𝝈 = √49.47 = 7.03
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Chi-Square Test
Cross Table
O E (𝑶 − 𝑬)𝟐 (𝑶 − 𝑬)𝟐 /𝑬
25 24 1 0.0416
14 13.2 0.64 0.0484
1 4.8 14.44 3.0083
0 0 0 0
15 16 1 0.0625
8 8.8 0.64 0.0727
5 3.2 3.24 1.0125
0 0 0 0
TOTAL(∑) 4.246
D.F. = (C-1)*(R-1)
DF. = (2 − 1) ∗ (4 − 1)
Chi-Square= 𝑥 2 = 7.81, V= 3
The table value of 𝑥 2 for 3 D.F. at 5% level of significance is 7.81. The calculated
value of 𝑥 2 is Less than the table value. The null hypothesis is accepted. Factors of
respondents have significant relationship with preference of toothpaste.
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Chapter:4
Findings
• The analysis reveals that the close significance relationship between the
period of purchasing of the respondents and the opinions about the
purchasing of Brand. Most of the respondents are using Colgate Strong
Teeth.
• The consumer will also buy the product on the basis of previous purchase.
• Advertisement is the most effective media for the product in the market
which will cover majority of the viewer-ship. The second place shows the
Public Relations is the most effective medium for the product in the market.
• Buy One get one free is the most kind of offers to the respondents likely
purchase another brand of toothpaste.
• There exists a close significant relationship between the period of purchasing
of the respondents and the level of satisfaction of the product.
• Respondents are the people how they view the sale promotion activities of
the Colgate Toothpaste. Most of the respondents are highly satisfied due to
the good quality.
Suggestions
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Conclusion
Consumer Behaviour is not exactly predicted one, somewhat it is predicted with the
help of research activity. Starting and ending of the survey ends with only one
statement ‘consumer is king’. So the companies concentrate in analysing the
requirement of people thoroughly to satisfy and retaining the consumer.
This study revealed that consumer awareness of toothpaste is less in Udaipur city.
Oral care market offers huge potential as penetration an d per capita consumption
of oral care product is very low in India. However, rising per capita income and
increasing awareness is driving demand of oral care products, the dentist population
is also in India.
For promoting the product consumption and creating awareness government has
taken initiative like dental health camps. Manufactures have used advertising
campaigns to promote higher consumption of toothpaste. Creating the awareness is
a part of social responsibility of the company. Most of the consumer are ready to
accept the suggestion of dentist, so the government is also responsible for
appointing more dentists to create awareness.
There are some important factors considered by the consumer for decision making.
Brand image, advertising, ad offer play an important role in purchasing toothpaste,
sometime based on the offer the consumer compares with competitor product and
select the best one. Product attribute also analysed by the consumer for deciding a
brand. Switching of one product to other company product is mainly based on
advertisement, brand name, packaging, availability of product, price rise, etc. So the
companies analyse all these factors and find out the best suitable tools for
promoting their toothpaste in India.
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Chapter:5
Bibliography
Books:
Researches:
• https://www.scribd.com/doc/51431994/Customer-toward-preference-
varioustoothpastebrand
• https://www.worldwidejournals.com/paripex/recent_issues_pdf/2013/July/J
u ly_2013_1374047994_e453d_61.pdf
• http://www.pbr.co.in/2013/2013_month/May/7.pdf
• http://iosrjournals.org/iosr-jbm/papers/ncibppte-volume-5/51.pdf
• http://ijariie.com/AdminUploadPdf/A_STUDY_ON_CUSTOMER_ATTITUDE_T
OWARDS_COLGATE_TOOTHPASTE_WITH_REFERENCE_TO_COIMBATORE_DIS
TRICT_ijariie73 08.pdf
30
Chapter:6
Questionnaire
Dear Sir/Mam,
I am RashikTandon pursuing MBA 2nd Year from “Pacific Institute of
Management, Udaipur-313004”, doing my project on “Consumer Behaviour towards
Sale Promotion on Colgate Toothpaste.” So kindly spare your valuable time in
responding time in responding to the questionnaire which would help me to conduct
my project in time.
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7. What factors lead to switch to another brands?
o Price rise of current brand
o Better packaging of another brands
o Schemes offered by another brands
o Non availability of my brand
8. If you ever had any dental problems what steps do you take to improve
them?
o Doctors prescribe toothpaste
o I never have had a dental problem
o Other (please specify)
9. Have you ever used Meswak toothpaste?
o Yes
o No
10. How would you suggest toothpaste companies to Increase sales?
11. Which brand of Colgate toothpaste did you most recently purchase?
o Colgate Max Fresh
o Colgate VedShakti
o Colgate Herbal
o Colgate Active Salt
o Colgate Visible White
o Colgate Strong teeth
12. How satisfied were you in terms of product effectiveness the last time you
used Colgate toothpaste?
o Satisfied
o Dis-satisfied
o Very Dis-satisfied
o Not Sure
13. How many times have you purchase Colgate in the last six months?
o 1-2
o 3-4
o 5-6
o 7-8
o 9-10
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14. What kind of offers would most likely make you purchase another brand of
toothpaste?
o Loyalty Points
o Price Reduction
o Coupons
o Buy one get one free
o None of the above
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