0% found this document useful (0 votes)
139 views58 pages

Consumer Behaviour Towards Consumer Durable Goods: A Case Study of Vijaypur District

This document provides an introduction to a case study on consumer behavior towards consumer durable goods in Vijaypur District, India. It discusses how the Indian consumer durables industry has grown due to changing lifestyles and incomes. The objectives of the study are to examine pre-purchase behavior, usage rates of durable goods, and factors influencing purchasing patterns in rural areas of Vijaypur District. A survey was conducted of 200 respondents across 5 talukas to understand their consumer behavior.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
139 views58 pages

Consumer Behaviour Towards Consumer Durable Goods: A Case Study of Vijaypur District

This document provides an introduction to a case study on consumer behavior towards consumer durable goods in Vijaypur District, India. It discusses how the Indian consumer durables industry has grown due to changing lifestyles and incomes. The objectives of the study are to examine pre-purchase behavior, usage rates of durable goods, and factors influencing purchasing patterns in rural areas of Vijaypur District. A survey was conducted of 200 respondents across 5 talukas to understand their consumer behavior.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 58

"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

INTRODUCTION

As rapid socio-economic changes sweep across India, the country is witnessing the
creation of many new markets and a further expansion of the existing ones. With over 300
million people moving up from the category of rural poor to rural lower middle class between
2005 and 2025, rural consumption levels are expected to rise to current urban levels by 2017.
Consumer durables involve any type of products purchased by consumers that are manufactured
for long-term use. As opposed to many goods that are intended for consumption in the short
term, consumer durables are intended to endure regular usage for several years or longer before
replacement of the consumer product are required. Just about every household will contain at
least a few items that may be properly considered to be of a consumer durable nature. A
combination of changing lifestyles, higher disposable income, greater product awareness and
affordable pricing have been instrumental in changing the pattern and amount of consumer
expenditure leading to robust growth of consumer durables industry.

The Indian consumer durables industry has witnessed a considerable change over the last
few years. Changing lifestyle and higher disposable income coupled with boom in the real estate
and housing industry and a surge in advertising have been instrumental in bringing about a sea
change in the consumer behaviour pattern. Consumer durables involve any type of product
purchased by consumers that is manufactured for long-term use. As opposed to many goods that
are intended for consumption in short term, consumer durables are intended to endure regular
usage for several years or longer before their replacement is required. Just about every household
contains at least a few items that may be considered to be of consumer durable nature. With India
being the second fastest growing economy having a huge consumer class, consumer durables
have emerged as one of the fastest growing industries in India.
OBJECTIVES OF THE STUDY:

The basic objective of enquiring the potentiality of rural markets in Vijayapur District in
Karnataka and include:

1. The pre-purchase rural consumer behaviour towards consumer goods


2. The usage rate of consumer durable products in rural areas in vijaypur district

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

3. To identify the role of various socio-economic, cultural and psychological factors that
influences the purchasing pattern of rural consumers;
4. Finally, to suggest some measures for effective implementation of marketing strategies
by various consumer durable goods companies.

METHODOLOGY:

The study mainly based on primary data. Samples size selected for the study is 200
respondents of the selected consumer durables in Vijayapur, Basavan Bagewadi, Sindgi, Indi,
and Muddebihal five talukas of the District. Samples are drawn on convenience sampling
technique/ method. The data for the study are drawn sample respondents through questionnaires
and schedules. Required information were also collected from dealers, wholesalers, retailers.
Collected information from the sample respondents on consumer behaviour on consumer
durables are classified, tabulated & graphed and analyzed in a systematic manner. While
analyzing data simple percentages and ratios are used, and for clear understanding charts like
simple bar charts and column charts are used.
The present study is analytical in nature. The relevant necessary relevant information has been
collected from sample respondents through questionnaires and schedules for the time period
2015-16.

NEED FOR STUDY:


Consumer behavior is not as simple as what many think. It is highly complex and cannot

predict about how consumers will react towards products while buying it. To understand the

buying behavior of rural consumers, we must go into the factors that influence their choice,

buying behavior and finally the decision making. The factors include: Social Environment,

Cultural Environment, Education, Occupation, Media and Involvement of the users. Consumers

usually have a number of alternative solutions to choose from and, depending upon the

complexity of the purchase, will either be multi-attribute decision-making or based on decision

heuristics. Depending on the degree of involvement and whether a habit has been formed or not,

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

four types of buying decision emerge: complex decisions, brand loyalty, limited decisions, and

inertia. Consumer Behavior is important in the academic world for two good reasons. First,

academics disseminate knowledge about consumer behavior to students while they teach and

secondly academics generate knowledge about consumer behavior when they consider research

focusing on how consumers act, think, and feel when acquiring, using, and disposing of

offerings.

STATEMENT OF THE PROBLEM:

Rural consuming system and its evolution are different from that of urban

consumption. Material propensity in the rural India due to the effect of liberalization and

globalization resulted in increased production and improved transportation and communication

facilities. Increased rural development investment had increased the purchasing power of the

rural folks. The increased purchasing power changes the dynamics of rural consumption

behavior. Thus it is worth to examine how the rural consumers are being motivated, how far

these determinants offer urban consumers and how for the socio-economic and cultural factors

are influencing the rural consumers. A thorough understanding of rural consumer behavior

would help in identifying different market segments and to evolve suitable marketing strategies

for effectively penetrating and thereby to command a respectable share in rural markets.

SCOPE OF THE STUDY:

The dynamics of the rural consumer behavior are highly a complex area. Hence, the

scope of the present is confined to buying habits, satisfaction level and post purchase behavior of

customers. The area covered under this study is limited to the Vijayapur District.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

LIMITATIONS OF THE STUDY:


1. The study is confined to some villages of Vijayapur district only.
2. The study mainly relies on primary data.
3. Only 200 random sample respondents of Vijayapur district are used to collect data.
4. Convenience sampling method is used to select the data which is subject to sampling
errors.
5. Simple tools of data analysis are used to analyze the data.
6. The resources used in the research process ware also less.

PROFILE OF VIJAYAPUR DISTRICT:


Vijayapur District is a district in north Karnataka in southern India. The city
of Vijayapur is the headquarters of the district, and is located 530 km northwest of Bangalore.
Vijayapur is well known for the great monuments of historical importance built during the Adil
Shahi dynasty.

Geography:

Vijayapur District has an area of 10541 square kilometers. It is bounded on the east
by Gulbarga District, on the southeast by Raichur District, on the south and southwest by
Bagalkot District, and on the west by Belgaum District, and by the Maharashtra of Sangli on the
northwest and Sholapur on the north, Sangli on the north-west (both of Maharastra state).

It consists 5.49% of Karnataka state area. It lies between 15 x 50 and 17 x 28 North


Latitude and 74 x 54 and 76 x 28 East Longitude. The administrative headquarters and chief
town is Vijayapur.

Devisions:

Vijayapur District is divided into five talukas and 199 panchayat villages.


 Vijayapur, with forty-six panchayat villages,
 Basavana Bagewadi, with thirty-eight panchayat villages,
 Sindagi, with forty panchayat villages,
 Indi, with forty-four panchayat villages, and,
 Muddebihal, with thirty-one panchayat villages.

Demographics:

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

According to the 2011 census Vijayapur district, Karnataka has a population of


2,175,102, roughly equal to the nation of Latvia or the US state of New Mexico. This gives it a
ranking of 210th in India (out of a total of 640). The district has a population density of 207
inhabitants per square kilometre (540/sq mi) .Its population growth rate over the decade 2001-
2011 was 20.38%. Vijayapur has a sex ratioof 954 females for every 1000 males, and a literacy
rate of 67.2%.
Vijayapur District has a population of 1,806,918 (2001 census), an increase of 17.63%
since the 1991 census. The district is 21.92% urban.
Vijayapur district is accessible by both highways and rail. The National highway 13
passes through the district in the eastern and central parts. Via Muddebihal and Vijayapur. The
taluka towns are well connected by state highways and district roads. The railway line
connecting Solapur in Maharashtra and Hubli passes through the center of the district, via Indi
and Basavan Bagewadi.

TOPOGRAPHY:

Geographically, the district lies in the tract of the Deccan Plateaus. The lands of the
district can be broadly divided into three zones: the northern belt consisting of the northern parts
of Vijayapur Taluka of Indi and Sindagi; the central belt consisting of Vijayapur city; the
southern belt consisting of the rich alluvial plains of the Krishna Rivers parted from the central
belt by a stretch of barren Trap. The northern belt is a succession of low rolling uplands without
much vegetation, gently rounded and falling into intermediate narrow valleys. The upland soil
being shallow, the villagers are generally confined to the banks of the streams and are far away
from one another. The Don Volley has plains and consists of rich tracts of deep black soil
stretching from west to east. Across the Krishna River is a rich plain crossed from west to east by
two lines of sandstone hills. Further south towards Badami and South-West to east by two lines
of sandstone hills. Further south towards Badami and South West of Hunagund, the hills increase
the number and the black soil gives way to the red.

Economic activities:

The District is predominantly an agricultural belt. Besides this, dairy, poultry, seep/goat
rearing, sericulture, Horticulture activities are being pursued by the population. The district has
tremendous market potential for mass consumer goods, semi durables, durables industrial raw
materials, intermediate products, capital goods, agricultural implements, etc. The undivided
Vijayapur District finds 12th place in terms of number of registered SSI units in the state as of

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

March 1995. The District Rural Industries Project (DRIP) which is under implementation from
1999-2000 has shown good progress during first years.

Banking Network:

The District is served by 81 branches of Commercial Banks (including one Hi-Tech.


Agril, Finance Branch of Canara Bank) 41 Branches of Vijayapur Grameen Bank, 23 Branches
of Vijayapur DCCB and 5 PCARDBs. Besides, the KSFC is also functioning in the district with
its branch at Vijayapur.

CHAPTER NO –II
PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

INDUSTRY PROFILE

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

CONSUMER DURABLES
Consumer durables refer to those consumer goods that do not quickly wear out and yields
utility over a long period of time. Some of the popular and common examples of these kinds of
items are electronic goods, kitchen appliances, home furnishings and leisure equipments etc.

CONSUMER DURABLES INDUSTRY IN INDIA


1. OVERVIEW OF CONSUMER DURABLES MARKET
India is expected to become the fifth largest consumer durables market in the world by
2025. The consumer electronics market is expected to increase to USD 400 billion by 2020. The
production is expected to reach USD 104 billion by 2016.The sector is expected to double at 14.7
per cent compound annual growth rate (CAGR) to USD 12.5 billion in FY15 from USD 6.3
billion in FY10.
Share in the Indian consumer durables market (FY2015)

35%

Rural
Urban

65%

Urban markets account for the major share (65 per cent) of total revenues in the
consumer durables sector in the country. Demand in urban markets is expected to increase for
non-essential products such as LED TVs, laptops, split ACs and, beauty and wellness products.
In rural markets, durables like refrigerators as well as consumer electronic goods are likely to

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

witness growing demand in the coming years as the government plans to invest significantly in
rural electrification.

Size of Consumer Durables Market in India


(Figures in USD Billions)
14

12.5
12

10

8
7.3 7.3
6.3
6
5.2
4.7
4.2
4 3.8

0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY15E

The Government of India has increased liberalization which has favored foreign direct
investments (FDI). Also, policies such as National Electronics Mission and digitization of
television and setting up of Electronic Hardware Technology Parks (EHTPs) are expected to
boost the growth of this sector.
The consumer durables market is anticipated to expand at a CAGR of 14.8 per cent to
USD 12.5 billion in FY15. Also, the demand from rural and semi-urban areas is projected to
expand at a CAGR of 25 per cent to USD 6.4 billion in FY 15, with rural and semi-urban
markets likely contributing majorly to consumer durables sales.
KEY CATEGORIES OF CONSUMER DURABLES

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Indian Consumer Durables segment can be segmented into three groups:

CATEGORIES

WHITE BROWN CONSUMER


GOODS GOODS ELECTRONICS
WHITE GOODS BROWN GOODS CONSUMER ELECTRONIC
 Air conditioners  Microwave Ovens  TVs
 Refrigerators  Cooking Range  Audio and video
 Washing Machines  Chimneys systems
 Sewing Machine  Mixers  Electronic accessories
 Watches and clocks  Grinders  PCs
 Cleaning equipment  Electronic fans  Mobile phones
 Other domestic  Irons  Digital cameras
appliances  DVDs
 Camcorders

2. MAJOR PLAYERS
Samsung India
Samsung India commenced its operations in India in December 1995, today enjoys a
sales turnover of over USD 1 billion in just a decade of operations in the country. Samsung
design centres are located in London, Los Angeles, San Francisco, Tokyo, Shanghai and Romen.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Samsung India has its headquartered in New Delhi and has a network of 19 Branch Offices
located all over the country. The Samsung manufacturing complex housing manuf acturing
facilities for Colour Televisions, Colour Monitors, Refrigerators and Washing Machines is
located at Noida, near Delhi. Samsung CMade in India' products like Colour Televisions, Colour
Monitors and Refrigerators are being exported to Middle East, CIS and SAARC countries from
its Noida manufacturing complex. Samsung India currently employs over 1600 employees, with
around 18% of its employees working in Research & Development.

Whirlpool India
Whirlpool was established in 1911 as first commercial manufacturer of motorized
washers to the current market position of being world's number one manufacturer and marketer
of major home appliances. The parent company is headquartered at Benton Harbor, Michigan,
USA with a global presence in over 170 countries and manufacturing operation in 13 countries
with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and
Ignis. Today, Whirlpool is the most recognized brand in home appliances in India and holds a
market share of over 25 per cent. The company owns three state-of -the-art manufacturing
facilities at Faridabad Pondicherry and Pune.

LG India
LG Electronics was established on October 1, 1958 (As a private Company) and in 1959,
LGE started manufacturing radios, operating 77 subs idiaries around the world with over 72,000
employees worldwide it is one of the major giants in the consumer durable domain worldwide.
The company has as many as 27 R & D centers and 5 design centers. Its global leading products
include residential air conditioners, DVD players, CDMA handsets, home theatre systems and
optical storage systems.

Godrej India

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Godrej India was established in 1897. The company was incorporated with limited
liability on March 3, 1932, under the Indian Companies Act, 1913. The Company is one of the
largest privately-held diversified industrial corporations in India. The Company has a network of
38 Company-owned Retail Stores, more than 2,200 wholesale dealers, and more than 18,000
retail outlets. The company has Representative Offices in Sharjah (UAE), Nairobi (Kenya),
Colombo (Sri Lanka), Riyadh (Saudi Arabia) and Guangzhou (China-PRC).
Sony India
Sony Corporation, Japan, established its India operations in November 1994. In India,
Sony has its distribution network comprising of over 7000 channel partners, 215 Sony World and
Sony Exclusive
outlets and 21 direct branch locations. The company also has presence across the country with 21
company owned and 172 authorized service centres.

Hitachi India
Hitachi India Ltd (HIL) was established in June 1998 and engaged in marketing and sells
a wide range of products ranging from Power and Industrial Systems, Industrial Components &
Equipment, Air Conditioning & Refrigeration Equipment to International Procurement of
software, materials and components. Some of HIL's product range includes Semiconductors and
Display Components. It also supports the sale of Plasma TVs, LCD TVs, LCD Projectors, Smart
Boards and DVD Camcorders.

3. GOVERNMENT INITIATIVES
The Indian Government is majorly concerned about the development of rural markets and
hence, keeps introducing policies and initiatives to encourage their growth.
In a bid to make economic development inclusive, the Indian Government has initiated many
schemes and programs that aim at improving the standard of living in India villages or rural
areas. For instance, the Government launched a time-bound business plan for action called
Bharat Nirman for enhancing the infrastructure in hinterlands. Under this program, action is
proposed in the areas of Water Supply, Housing, Telecommunication and Information
Technology, Roads, Electrification and Irrigation. The other initiatives are:

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

 National Policy on Electronics (NPE) 2012 was launched with an objective to transform
India into a global hub for Electronic System Design and Manufacturing (ESDM) and to
expand the manufacturing base of electronic products in India. Key goals for 2020 are to
attract investment of USD 100 billion, enhance exports to USD 80 billion, achieve a
turnover of USD 400 billion and create employment of around 28 million
 As per Foreign Trade Policy (2015-2020), the Focus Product Scheme, Market Linked
Focus Product Scheme and Focus Market Scheme are now under a single MEIS scheme.
Export of notified goods (includes Ac parts and compressors, refrigerating equipment
compressors, fully automatic washing machines and color TV) and Asia-Oceania block)
will be payable as percentage of realized FOB value (in free foreign exchange).
Moreover, there will be a provision for higher level of rewards under MEIS scheme for
export items with high domestic content and value addition.

 According to the Modifies Special Incentives Package Scheme (MSIPS) the government
will reimburse certain taxes and duties for 10 years, amounting to 20% (SEZs) to 25%
(non-SEZs) of capital investment. However, white goods are not covered in this scheme
and are in the draft MSIPS document.
 Zero duty EPCG scheme allows import of capital goods for pre-production, production
and post-production (including CKD/SKD thereof as well as computer software systems)
at zero Customs duty. As per the Foreign Trade Policy 2015-20 the specific export
obligation under EPCG scheme where capital goods are procured from indigenous
manufacturers has been reduced to 75% from 90% in order to promote domestic capital
goods manufacturing industry.
 An Electronics development fund of USD 2 billion has been created to promote
innovation, intellectual property creation, product commercialization etc.

4. CHALLENGES, OPPORTUNITIES & FUTURE PROSPECTS

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

The consumer durables sector in India is one that will be passing through some very
interesting times. On the one hand there is substantial scope for expansion as the favorable
demographics of India are a positive for the sector.
On the other hand there are many factors which pose as a challenge to this industry, some
of these challenges are:

 Tax and duty structure:


India's taxation system is unusually complex, especially where indirect taxes are concerned.
While income tax, excise and customs duty are set by the Central Government, states and
municipalities also levy their own taxes.

 Limited scale and quality:


Most of the suppliers of raw material and components in India do not have the scale to cater
to the substantial demand in the industry, making them less cost competitive as compared to
imports. Moreover, the quality of inputs is not as competitive to Chinese or other SE Asian
counterparts. This has led various global majors to scale down operations in the country.

 Increasing competition:
Indian manufacturers face strong competition from Chinese and other SE Asian counterparts
which have a huge supply base and installed capacities. Moreover, China government provides
numerous subsidies for manufacturing unit development which the Indian government is unable
to match.

 Capital intensive nature of business:


Cost of production in India is higher as compared to China and other SE Asian countries due
to high finance costs. Moreover, given the frequently changing energy efficient norms
manufacturers will need to invest substantial amounts for products with high rating. The cost of
capital at 12%-14% is much higher than the global average of 5%
 Infrastructure Deficiency:

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

India's spend on infrastructure was only 7.2% of its GDP in 2012. The basic infrastructure for
any industry comprises good roads, power, water, telecommunications, finance, raw materials,
components, and logistics. In India, these facilities are not up to the mark even in established
industrial estates.

 Domestic markets are growing at a brisk pace with continued dependence on imports.
About 30-35% electronic components required for local equipment manufacturing are
available from domestic sources. For semiconductors, there is almost 100% dependence
on imports.
 Inverted Duties due to dual use of Inputs such as Plastics, Copper, Aluminum, etc
continue to plague hardware manufacturers. Specific items are covered under Customs
Notification 25/99, although the procedure for claiming this benefit is extremely
convoluted and time taking.
 Domestic Taxes and Levies impose Fiscal Disabilities with very high indirect taxes.
 Cascading impact of CST on components detrimental for finished products
manufacturing
 High cost of Finance, Power and Logistics/ Regulatory and Procedural problems add to
disabilities estimated at 7-8%. This discourages capital intensive, high value add
investments in manufacture of components / parts which require high and long term
investments necessitating a supportive fiscal and infrastructural environment.

SWOT Analysis
 Strengths
a. Presence of established distribution networks in both urban and rural areas
b. Presence of well-known brands
c. In recent years, organized sector has increased its share in the market vis a vis the
unorganized sector.

 Weaknesses
a. Demand is seasonal and is high during festive season
b. Demand is dependent on good monsoons

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

c. Poor government spending on infrastructure


d. Low purchasing power of consumers

 Opportunities
a. In India, the penetration level of white goods is lower as compared to other developing
countries.
b. Unexploited rural market
c. Rapid urbanization
d. Increase in income levels, i.e. increase in purchasing power of consumers
e. Easy availability of finance

 Threats
a. Higher import duties on raw materials imposed
b. Cheap imports from Singapore, China and other Asian countries

Future Prospects
India is emerging as the third largest internet market and its e-commerce business is
likely to touch Rs 40 billion (USD 742.76 million) in 2015 against Rs 12 billion (USD 222.83
million) at present.
Also, with mobiles becoming a major medium for advertising and content delivery,
every three out of four users in the country are expected to access the net throug h a mobile
phone by 2015. During 2012-22, cumulatively around USD 500 billion of ad spend is expected
to happen on mobile phones, according to industry estimates.
Moreover, companies in the last decade have positioned tea and coffee as recreational products,
which have majorly attracted younger population. Growing at a compounded annual growth rate
(CAGR) of 20 per cent, it is expected to touch Rs 330 billion (USD 6.13 billion) by 2015 from
the current level of Rs 195 billion (USD 3.62 billion) (in 2011). Domestic coffee outlets, which
have a lot of appeal for the new generation, are set to double over 2012-15, majorly driven by the
foray of global players such Starbucks and Dunkin' Donuts in India.

Definition of Rural marketing:

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

There is no official definition of what constitutes a rural area. However, an urban area is
defined as per the Census of India as “all places with a municipality, corporation, cantonment or
a notified town area” and “all other places satisfying the following criteria: (a) minimum
population of 5000, (b) at least 75 percent of male working population in non-agricultural
pursuit, and (c) density of population of at least 400 persons per square kilometer”. Therefore, an
area that does not satisfy the criteria specified above can be considered a rural area. For study
purpose, rural marketing has been as any marketing activity in which one dominant participant is
from a rural area.

For the purpose of defining the domain of rural marketing, “rural” and “urban” can be
visualized on a continuum, consisting of three broad groups, namely, rural, and urban. The
construct called rural is the overlap between rural and urban, with physical features closer to
urban areas and proximity to large urban centers, but with deep rural sociological moorings. The
domain of rural marketing, thus, can be seen in a two-dimensional space as a flow of goods,
services, and ideas from one area to another, except in the case of urban to urban flow.
According to the National Commission on Agriculture – “Rural Marketing is a process which
starts with a decision to produce a saleable farm commodity and it involves all the aspects of
market structure or system, both functional and institutional, based on technical and economic
considerations, and includes pre and post harvest operations, assembling, grading, storage,
transportation and distribution”.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

CHAPTER NO - III
CONCEPTUAL FRAMEWORK

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

CONSUMER BEHAVIOUR
An Overview
Consumer behaviour is comparatively a new field of study which evolved just after the
Second World War. The seller’s market has disappeared and buyers market has come up. This
led to paradigm shift of the manufacturer‘s attention from product to consumer and specially
focused on the consumer behaviour. The evaluation of marketing concept from mere selling
concept to consumer-oriented marketing has resulted in buyer behaviour becoming an
independent discipline. The growth of consumerism and consumer legislation emphasizes the
importance that is given to the consumer. Consumer behaviour is a study of how individuals
make decision to spend their available resources (time, money and effort) or consumption related
aspects (What they buy? When they buy?, How they buy? etc.).
The heterogeneity among people makes understanding consumer behaviour a challenging task to
marketers. Hence marketers felt the need to obtain an in-depth knowledge of consumers buying
behaviour. Finally this knowledge acted as an imperative tool in the hands of marketers to
forecast the future buying behavior of customers and devise four marketing strategies in order to
create long term customer relationship.
Consumer Behaviour
It is broadly the study of individuals, or organisations and the processes consumers use to
search, select, use and dispose of products, services, experience, or ideas to satisfy needs and its
impact on the consumer and society.
Customers versus Consumers
The term ‘customer‘is specific in terms of brand, company, or shop. It refers to person
who customarily or regularly purchases particular brand, purchases particular company‘s
product, or purchases from particular shop. Thus a person who shops at Bata Stores or who uses
Raymonds clothing is a customer of these firms. Whereas the ‘consumer‘is a person who
generally engages in the activities - search, select, use and dispose of products, services,
experience, or ideas.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Consumer Motives
Consumer has a motive for purchasing a particular product. Motive is a strong feeling,
urge, instinct, desire or emotion that makes the buyer to make a decision to buy. Buying motives
thus are defined as those influences or considerations which provide the impulse to buy, induce
action or determine choice in the purchase of goods or service. These motives are generally
controlled by economic, social, psychological influences etc.

Motives which Influence Purchase Decision


The buying motives may be classified into two:
i. Product Motives
ii. ii Patronage Motives

I. Product Motives Product motives may be defined as those impulses, desires and
considerations which make the buyer purchase a product. These may still be classified on
the basis of nature of satisfaction:
a) Emotional Product Motives
b) Rational Product Motives

NATURE OF MOTIVE PURCHASE DECISION

Desire for money Purchasing when price falls down

Vanity Getting costly Items, to be admired by others

Fear Purchasing Insurance policy

Pride Purchasing premium products

Fashion Rural people imitate urban

Possession purchasing antiques

Health Purchasing health foods .membership in health clubs


Comfort Purchasing micro-oven, washing machine, mixy

Love and affection Purchasing gift items

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Emotional Product Motives are those impulses which persuade the consumer on the basis of his
emotion. The buyer does not try to reason out or logically analyse the need for purchase. He
makes a buying to satisfy pride, sense of ego, urge to initiate others, and his desire to be unique.
Rational Product Motives are defined as those impulses which arise on the basis of logical
analysis and proper evaluation. The buyer makes rational decision after chief evaluation of the
purpose, alternatives available, cost benefit, and such valid reasons.
II. Patronage Motives
Patronage motives may be defined as consideration or impulses which persuade the buyer to
patronage specific shops. Just like product motives patronage can also be grouped as emotional
and rational.
Emotional Patronage Motives those that persuade a customer to buy from specific shops,
without any logical reason behind this action. He may be subjective for shopping in his favourite
place.
Rational Patronage Motives are those which arise when selecting a place depending on the
buyer satisfaction that it offers a wide selection, it has latest models, offers good after-sales
service etc. Knowledge of buyer motives of consumers is useful for marketers to anticipate
market trends and formulate effective marketing strategies.
Need for Study of Consumer Behaviour
The study of consumer behaviour helps everybody as all are consumers. It is essential for
marketers to understand consumers to survive and succeed in thes competitive marketing
environment. The following reasons highlight the importance of studying consumer behaviour as
a discipline.

CONSUMER INVOLVEMENT
Some consumers are characterized as being more involved in products and shopping than
others. A consumer who is highly involved with a product would be interested in knowing a lot
about it before purchasing. Hence he reads brochures thoroughly, compares brands and models
available at different outlets, asks questions, and looks for recommendations. Thus consumer
involvement can be defined as heightened state of awareness that motivates consumers to seek
out, attend to, and think about product information prior to purchase.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

CAUSES OF CONSUMER INVOLVEMENT


The factors that influences consumer involvement include personal, product and situational.
Personal Factors
Self-concept needs and values are the three personal factors that influence the extent of
consumer involvement in a product or service. The more product image, the value symbolism
inherent in it and the needs it serves are fitting together with the consumer self- image, values
and needs, the more likely the consumer is to feel involved in it. Celebrities for example share a
certain self-image, certain values, and certain needs. They tend to use products and services that
reflect their life style. They get highly involved in purchasing prestigious products like designer
wear, imported cars, health care products etc.
Product Factors
The consumer involvement grows as the level of perceived risk in the purchase of a good
or service increases. It is likely that consumers will feel more involved in the purchase of their
house than in the purchase of tooth paste, it is a much riskier purchase.
Product differentiation affects involvement. The involvement increases as the number of
alternatives that they have to choose from increases. This may be due to the fact that consumers
feel variety which means greater risk.
The pleasure one gets by using a product or service can also influence involvement.
Some products are a greater source of pleasure to the consumer than others. Tea and coffee have
a high level of hedonic (pleasure) value compared to, say household cleaners. Hence the
involvement is high.
Involvement increases when a product gains public attention. Any product that is socially
visible or consumed in public, demands high involvement. For example, involvement in the
purchase of car is more than the purchase of household items.
Situational Factors
The situation in which the product is brought or used can generate emotional
involvement. The reason for purchase or purchase occasion affects involvement. For example,
buying a pair of socks for you is far less involved than buying a gift for a close friend.
Social pressure can significantly increase involvement. One is likely to be more self
conscious about the products and brands one looks at when shopping with friends than when
shopping alone.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

The need to make a fast decision also influences involvement. A consumer who needs a
new refrigerator and sees a ‘one- day- only sale‘ at an appliances retailer does not have the time
to shop around and compare different brands and prices. The eminence of the decision heightens
involvement. The involvement is high when the decision is irrevocable, for example when the
retailer does not accept return or exchange on the sale items.
Thus involvement may be from outside the individual, as with situational involvement or
from within the individual as with enduring involvement. It can be induced by a host of personal-
product-and situation related factors, many of which can be controlled by the marketer. It affects
the ways in which consumers see, process, and send information to others.

TYPES OF INVOLVEMENT
The two types of involvement are:
a) Situation
b) Enduring

Involvement has various facets of consumer behaviour such as search for information,
information processing, and information transmission.
Situational Involvement
Situational involvement is temporary and refers to emotional feelings of a consumer,
experiences in a particular situation when one thinks of a specific product.
Enduring Involvement
Enduring involvement is persistent over time and refers to feelings experienced toward a
product category across different situations. For example, holiday- makers renting a resort for
their trip are highly involved in their choice, but their involvement is temporary. Whereas
involvement of a person whose hobby is bike racing endures overtime and affects his responses
in any situation related to pre-purchase, purchase and post- purchase of sport bikes. It is observed
that involvement is triggered by special situation in the case of holiday makers, but in the second
case, in comes from, and is a part of the consumer.
The contrast between situational and enduring involvement is important. When marketers
measure involvement they examine the extent to which it can be induced by the product or

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

selling situation. After noticing the type of involvement they are facing, marketers work to
control products or selling situations.

EFFECTS OF CONSUMER INVOLVEMENT


Involvement with the product makes consumers process product-related information
more readily. This information is processed thoroughly; hence, it is retained for a longtime.
Because of this the consumers become emotionally high and tend to engage in extended problem
solving and word- of-mouth communications. These result into three categories: search for
information, processing information, and information transmission.
Customers who are highly involved tend to search for information and shop around more
when compared with low involvement customers. For example, the customer who is highly
involved with cars and thinks about buying it is likely to gather information. He sees for
alternative models to figure the advantages and disadvantages of each. The more they are
involved, the more they learn about the alternatives with in that category. To gather the
information they use various sources. One such behaviour is to shop around, where they visit
various outlets and talk to sales people. The customers of this kind should be encouraged by
retailers to visit the outlets to know, and compare various models to meet information needs.

Processing of Information
Processing of information means depth of comprehension, extent of cognitive
elaboration, and the extent of emotional arousal of information as discussed below.

Depth of Comprehension
Highly involved customers tend to process product information at deeper levels of
understanding than the ones with low involvement. For example educated parents in urban areas
are highly involved in baby food purchase decisions than rural uneducated parents. They also
retain this information for long time. In this case marketers need to provide information cues to
help the consumers to retrieve information from memory. But when the target is low
involvement consumers, marketers should make the necessary information as accessible as
possible at the time of selection and buying of the product.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Extent of Cognitive Elaboration


Highly involved customers think more about product choices than consumers with low
involvement. Their deep understanding involves support arguments and / or counter arguments.
That is, highly involved consumers tend to generate cognitive responses either in support of the
product information or against the information provided by the marketers.
If we talk of the previous example, marketing baby food products, the product all though
effective may have significant side effects like obesity. Educated parents are likely to give this
the great deal of thought before giving it to their children. To ensure that the parents generate
positive thoughts, the marketers have to mention a quality argument that the product benefits
outweigh its negative effects. If the arguments are less informed and not persuasive, it is likely to
produce negative thoughts resulting in an unfavorable attitude towards the product.

Level of Emotional Arousal


Highly involved consumers are more emotional than less involved consumers.
The highly involved react more strongly to the product-related information which may
act for or against marketers. This is because the negative interpretation is likely to be
exaggerated more number of times causing the customers to reject the product.
Information Transmission
Transmission of information is the extent to which greatly involved customers send
information about the product to others. This is done usually through word-of-mouth
communication. The researchers have shown that if consumers are highly involved they talk
about the product frequently than others. Satisfied consumers are likely to speak favorable about
the product, while unsatisfied speak negatively. Therefore, marketers catering to highly involved
consumers should attempt to enhance consumer satisfaction and decrease dissatisfaction. For
example, customer happy with ONIDA television communicates the same to others through
word-of-mouth.

CONSUMER DECISION MAKING PROCESS

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

The most important environment in which firms operate is their customer environment
because the basic belief of marketing oriented company – that the customer is the centre around
which the business revolves. Therefore, marketing people need to understand the processes that
their customers go through when making decision.
The consumer decision making process involves series of related and sequential stages of
activities. The process begins with the discovery and recognition of an unsatisfied need or want.
It becomes a drive. Consumer begins search for information. This search gives rise to various
alternatives and finally the purchase decision is made. Then buyer evaluates the post purchase
behavior to know the level of satisfaction. The process is explained below with the help of
diagram.

STEPS IN DECISION MAKING PROCESS

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-Purchase Behaviour

 Need Recognition
When a person has an unsatisfied need, the buying process begins to satisfy the needs. The need
may be activated by internal or external factors. The intensity of the want will indicate the speed

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

with which a person will move to fulfill the want. On the basis of need and its urgency, forms the
order of priority. Marketers should provide required information of selling points.
 Information Search
Identified needs can be satisfied only when desired product is known and also easily
available. Different products are available in the market, but consumer must know which product
or brand gives him maximum satisfaction. And the person has to search out for relevant
information of the product, brand or location. Consumers can use many sources e.g., neighbors,
friends and family. Marketers also provide relevant information through advertisements,
retailers, dealers, packaging and sales promotion, and window displaying. Mass media like news
papers, radio, and television provide information. Now a days internet has become an important
and reliable source of information. Marketers are expected to provide latest, reliable and
adequate information.

 Evaluation of Alternatives
This is a critical stage in the process of buying. Following are important elements in the
process of alternatives evaluation
a. A product is viewed as a bundle of attributes. These attributes or features are used for
evaluating products or brands. For example, in washing machine consumer considers
price, capacity, technology, quality, model and size.
b. Factors like company, brand image, country, and distribution network and after-sales
service also become critical in evaluation.
c. Marketers should understand the importance of these factors to consumers of these
factors to consumers while manufacturing and marketing their products.
 Purchase Decision
Outcome of the evaluation develops likes and dislikes about alternative products or
brands in consumers. This attitude towards the brand influences a decision as to buy or not to
buy. Thus the prospective buyer heads towards final selection. In addition to all the above
factors, situational factors like finance options, dealer terms, falling prices etc., are also
considered.
 Post- Purchase Behaviour

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

This behaviuor of consumer is more important as for as marketer is concerned. Consumer


gets brand preference only when that brand lives up to his expectation. This brand preference
naturally repeats sales of marketer. A satisfied buyer is a silent advertisement. But, if the used
brand does not yield desired satisfaction, negative feeling will occur and that will lead to the
formation of negative attitude towards brand. This phenomenon is called cognitive dissonance.
Marketers try to use this phenomenon to attract user of other brands to their brands. Different
promotional-mix elements can help marketers to retain his customers as well as to attract new
customers.
CONSUMER DECISION RULES
These are generally referred to as information processing strategies. These are procedures
that help consumers to evaluate various options and reduce the risk of making complex decisions
by providing the guidelines. Decision rules have been broadly classified into two categories:
1. Compensatory Decision Rules: Consumers evaluate brand or model in terms of each attribute
and computes a weighted score for each brand. The computed score reflects the brand‘s relative
merit as a potential purchase choice. The assumption is that consumer will select the brand that
scores highest among alternative brands. The unique feature of this rule is that it balances the
positive evaluation of a brand on one attribute to balance out a negative evaluation on some other
attribute. For example, positive attribute like high fuel efficiency is balanced with the negative
evaluation of high maintenance cost.
2. Non-compensatory Decision Rules: In contrast to the above rule non-compensatory rules do
not allow consumers to balance positive evaluation of a brand on one attribute against negative
evaluation on some other attribute. There are three types of non-compensatory rules.
Conjunctive Decision Rule: In conjunctive decision rule the consumer establishes a different,
minimally acceptable level as a cut off point for each attribute. In this the option is eliminated for
further consideration if a specific brand or model falls below the cutoff point on any attribute.
Disjunctive Rule: It is the ‘mirror image’ of conjunctive rule. Here the consumer establishes a
separate minimally acceptable cut off level for each attribute. In this case if an option meets or
exceeds the cut off establishes for any one attribute it is accepted.
Lexicographic Decision Rule: In this rule the consumer initially ranks the attributes in terms of
perceived relevance or importance. Later he compares different alternatives in terms of the single

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

attribute that is considered most important. On this top ranked alternative, regardless of the score
on any other attribute, if one option scores sufficiently high it is selected and the process ends.
LEVELS OF CONSUMER DECISION MAKING
The consumer decision making process is complex with varying degree. All purchase
decisions do not require extensive effort. On continuum of effort ranging from very high to very
low, it can be distinguished into three specific levels of consumer decision making:
1. Extensive Problem Solving (EPS)
2. Limited Problem Solving (LPS)
3. Routine Problem Solving (RPS)
1. Extensive Problem Solving (EPS): When consumers buy a new or unfamiliar product it
usually involves the need to obtain substantial information and a long time to choose. They must
form the concept of a new product category and determine the criteria to be used in choosing the
product or brand.
2. Limited Problem Solving (LPS): Sometimes consumers are familiar with both product
category and various brands in that category, but they have not fully established brand
preferences. They search for additional information helped them to discriminate among various
brands.
3. Routine Problem Solving (RPS): When consumers have already purchased a product or
brand, they require little or no information to choose the product. Consumers involve in habitual
and automatic purchases.

CONSUMER BEHAVIOUR AND MARKETING IMPLICATIONS


The study of consumers helps firms and organizations improve their marketing strategies
by understanding issues such as how
 The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products, and retailers);
 The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
 The behavior of consumers while shopping or making other marketing decisions;
 Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

 How consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer; and
 How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

The basic belief of marketing-oriented company is that the customer is the hub around which
the business revolves. Therefore, understanding what makes people in general buy and what
makes your customer in particular buy is a vital part of business success. Market itself means –
customer, around whom all marketing strategies are formulated and implemented. In order to
meet competition at the market place, the marketing managers are using various methods to add
value to the final product which will reach the hands of the consumers. It means in ever changing
marketing environment, there is a growing concern or awareness among marketers to go for a
careful study of the consumer behaviour around which all marketing activities are made.
Following are the key marketing implications of consumer behaviour.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

 CONSUMER BEHAVIOUR AND MARKETING STRATEGIES


Understanding the consumer behavior is the basic for marketing strategy
formulation. Consumers’ reaction to this strategy determines the organization success or
failure. In this competitive environment Organizations can survive only by offering more
customer value - difference between all the benefits derived from a total product and all
the costs of acquiring those benefits - than competitors. Providing superior customer
value requires the organization to do a better job of anticipating and reacting to the
customer needs than the competitor. Marketing strategy is basically the answer to the
question: How will company provide superior customer value to its target market? The
answer to this question requires formulation of marketing - mix – product, price, place
and promotion - strategies. The right combination of these elements meets customer
expectation and provides customer value. For example, marketer of a bike must know the
customers performance expectations, desired service, Price willing to pay, information he
seeks and after-sales service to provide superior customer value.
 CONSUMER BEHAVIOUR AND MARKET SEGMENTATION
The most important marketing decision a firm makes is the selection of one or
more segments to focus their marketing effort. Marketers do not create segments but they
find it in the market place. Market segmentation is the study of market place in order to
discover viable group of consumers who are homogeneous in their approach in selecting
and using goods or services. Since market segment has unique needs, a firm that develops
a product focusing solely on the needs of that segment will be able to meet the target
group desire and provides more customer value than competitor. For example, right
segment for ‘Femina‘magazine is educated urban women. The success of this magazine
depends on their understanding of the urban woman.
 CONSUMER BEHAVIOUR AND PRODUCT POSITIONING
Product positioning is placing the product, service, company, or shop in the mind
of consumer or target group. Through positioning marketers seek the right fit between a
product and desired customer benefits. The right positioning means understanding the
consumer perception process in general and perception of company‘s product in
particular. For example, Samsung brand is perceived as premium brand by few customers

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

and value-driven brand by others in the market, but marketer must find out what makes
their target market to perceive differently and position it accordingly.
 CONSUMER BEHAVIOUR AND MARKETING RESEARCH
Studying consumer behavior enables marketing researchers to predict how
consumers will react to promotional messages and to understand why they make the
purchase decision they do. Marketers realized that if they know more about the consumer
decision making criteria, they can design marketing strategies and promotional messages
that will influence consumers more effectively. The importance of consumer behaviour
made marketers to think of a separate branch in marketing research - Consumer research,
to deal exclusively for consumer related issues. The current focus of consumer research is
on study of underlying needs and motives in taking purchase decisions, consumer
learning process and attitude formation process.
 CONSUMER BEHAVIOUR AND NON-PROFIT AND SOCIETAL MARKETING
A sound knowledge of consumer behaviour can help the organizations that sell
ideas and concepts of social relevance. Institutions that promote family planning, AIDS
free society, governmental agencies, religion orders and universities also appeal to the
public for their support in order to satisfy some want or need in society. The knowledge
about potential contributors, what motivate their generosity, how these motives can be
effectively appealed is useful for the organizations involved in these activities.
 CONSUMER BEHAVIOUR AND GOVERNMENTAL DECISION MAKING
To major areas where consumer behavior study helps government is in policy
making on various services, and in designing consumer protection legislation. The
knowledge of people‘s attitudes, beliefs, perceptions and habits provides adequate
understanding of consumers.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

CHAPTER - IV
ANALYSIS AND INTERPRETATION

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Meaning of Analysis:
Analysis is the process of breaking a complex topic or substance into smaller parts to gain a
better understanding of it.
Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the
goal of discovering useful information, suggesting conclusion and supporting decision making.
Data analysis has multiple facts and approaches, encompassing diverse techniques under a
variety of names in different business, science and social science domains.
Meaning of Interpretation:
The task of interpretation is not an easy job; rather it requires a great skill on the part of
researcher. Interpretation is an art that one learns through practice and experience. The
researcher may, at times, seek the guidance from experts for accomplishing the task of
interpretation.
Interpretation refers to the task of drawing inferences from the collected facts after an analytical
and or experimental study. In fact, it is a search for broader meaning of research findings.
Interpretation is essential for the simple reason that the usefulness and utility of research findings
lie in proper interpretation. It is being considered a basic component of research process.
It is through interpretation that the researcher can well understand the abstract principle that
works beneath his findings. Interpretation leads to the establishment of explanatory concepts that
can serve as a guide for future research studies.
Researcher must accomplish the task of interpretation only after considering all relevant factors
affecting the problem to avoid false generalization. He must be in no hurry while interpreting
results, for quite often the conclusions, which appear to be all right at the beginning, may not at
all be accurate.

Table -4.1 Age wise Distribution of respondents

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Age group Number of respondents Avg. age of Respondents


26-30 Year 84 42%
31-35 Year 54 27%
36-40 Year 34 17%
41-50 Year 18 9%
51 & above 10 5%
Total 200 100%
Source: Field Survey

Age wise Distribution of respondents

5%
9%
26-30 Year
31-35 Year
42% 36-40 Year
17% 41-50 Year
51 & above

27%

Interpretation:
Table & graph reveals that the respondents and the percentage of response received from each of
the age group. The maximum of respondents were from the age group of 26-30 years having a
percentage of 42%. The age group of 31-35 follows at a percentage of 21%. Thirdly we have the
age group of 36-40 years 17%. Following the above comes 41-50 years with 10% & 51 above
year’s age group with 10% respondents.
From the above table it is clear that maximum respondents were from the age group of
26-30 that 42%.

Table -4.2 Gender-wise Distribution of respondents


Gender Number of respondents Avg. % of Respondents

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Male 130 65%

Female 70 35%

Total 200 100%

Source: Field Survey

Gender-wise Distribution of respondents

35%
Male
Female

65%

Interpretation:
Table no-4.2 shows the percentage of male & female respondents to the survey made on
the home appliances. The percentage of male respondents was 65% & percentage of the female
respondents was 35%.

Table-4.3 Income-wise Distribution of respondents

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Income Group Number of respondents Avg. % of Respondents


Rs.0 to 1,00,000 52 26%

Rs.1,00,000 to 3,00,000 100 50%

Rs.3,00,000 to 5,00,000 48 24%

Rs.5,00,000 to 10,00,000 0 0%

Rs.10,00,000 above 0 0%

Total 200 100%

Source: Field Survey

Income-wise Distribution of respondents

24% 26%
Rs.0 to 1,00,000
Rs.1,00,000 to 3,00,000
Rs.3,00,000 to 5,00,000
Rs.5,00,000 to 10,00,000
Rs.10,00,000 above

50%

Interpretation:
Table No-4.3 reveals that the maximum number of respondents were from the income
group of Rs 100,000-300,000 per annum forming 50% of the total respondents, following the
above respondents from the income group of Rs 0-100,000 per annum forming 26% of the total
respondents. Then we have respondents from the income group of 300,000-500,000 per annum
and they are from 24% of the total respondents to the survey. The income groups Rs 500,000-10,
00,000 and 10, 00,000& above per annum have none of respondents.

Table – 4.4 Distribution of Durable Products possession Time


Duration of possession of Number of respondents Avg. % of Respondents

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

durable products
1 year 32 16.0

2 year 52 26.0

3 years & above 116 58.0

Total 200 100

Source: Field study

Interpretation:

Thus it is evident that a large number of rural respondent consumers were in possession
of consumer durables more than three years ago i.e., 58% of respondents have been enjoying
such consumable for above 3 years. 26% of respondents have been enjoying such consumables
for 2 years, and only 16% of respondents have been enjoying such consumables for 1 year.
Finally a large number of rural respondent’s consumers were in possession of consumer durables
more than three years ago.

Distribution of Durable Products possession Time


70%

60% 58%

50%

40%

30% 26%

20% 16%

10%

0%
1 year 2 year 3 years & above

Table –4.5 Distribution of need feeling time of respondents


Duration Number of respondents Avg. % of Respondents

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

1 month 21 10.5

2 month 56 28

6 Months & above 123 61.5

Total 200 100

Source: Field study

Distribution of need feeling time of respondents


70.00%
61.50%
60.00%
50.00%
40.00%
30.00% 28.00%

20.00%
10.50%
10.00%
0.00%
1 month 2 month 6 Months & above

Interpretation:

Before buying costly durables a consumer feels need for the same. Above table presents
in summary form the responses on how long ago before purchasing the same the respondents felt
the need.
From the Table No-4.5, It is evident that nearly two-third of respondents felt the need for six
months or more than that before buying the durable goods. While more than one-tenth of
respondents felt the need just for only one month before purchasing the consumer durables,
nearly two-third (61.5%) of respondents felt the need for the durables for six or more months
before purchasing the same, and 28.% of respondents felt the need for the durables for two
months before purchasing the same. And only 10.5% of respondents felt the need for these goods
only for one month before purchasing their desired durables. They might belong to the upper
income group of the respondents but most of the respondents felt such need for more than six
months before purchasing durables.

Table –4.6 Distribution of time lag between need feeling and buying decision

Time lag Number of respondents Avg. % of Respondents

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

No lag 22 11.0
1 – 2 months 29 14.5
2 – 6 months 76 38.0
6 & above months 73 36.5
Total 200 100
Source: Field Survey
Interpretation:

Usually a consumer does not purchase the durables immediately after feeling the need for
the same; he takes time and ponders over the issue. We can get an idea about how much a rural
consumer usually takes for pondering over the issue with the help of above table 5.
Thus, it is evident that more than one-third respondents took two to six months and
another more than one-third respondents took six or more months for pondering over selecting
their desired brands. Only 11% respondents and 14.5% of respondents purchased their selected
brands just below two months take time to purchase, they might be rich people. But it appears
that almost nearly 75% of the respondents took more than two months to be engaged in actual
purchase.
In fact, rural people are very cautious before purchasing the durable. They pondered over
the issue several times before purchasing the article. It might be due to the fact that they have
little scope of earning additional money outside their usual sources. In other words, for them
marginal utility of money is very high, so they are very cautious.

Distribution of time lag between need feeling and buying decision


40% 38% 37%
35%
30%
25%
20%
15%
15% 11%
10%
5%
0%
No lag 1 – 2 months 2 – 6 months 6 & above months
Table – 4.7 Statement of importance assigned to different sources of information

Sources of Information Number of respondents Avg. % of Respondents

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Market dominated sources 40 20.0


Neutral sources 08 4.0
Personal Sources 152 76.0
Total 200 100
Source: Field Survey

Statement of importance assigned to different sources of


information
80%
60%
40% 76%
20%
20% 4% Avg. % of Respondents
0%
s s es
ce r ce rc
ur ou u
so la s So
ed r al
at ut so
n
in Ne r
m Pe
t do
ke
ar
M

Interpretation:
Before purchasing, a consumer collects information about the desired product from various
sources. But all the survey is not equally important to him. These sources may be grouped under
three broad divisions. They are:
a. Market dominated sources, like advertisements, displays, etc.
b. Neutral (i.e., independent) sources like reports published by government or non-
government bodies, and
c. Personal sources like discussion with friends, relatives, etc.
Table NO 4.7 Shows that responses of the selected rural consumers as to the importance they
attach to the sources are tabulated above table 6 Statement of importance assigned to deference
of rate. Thus it appears that 76% of the respondents assign the biggest importance to the personal
sources of information. Neutral sources have a little impact on the respondents. It is evident that
rural people depend mostly on primary contacts and not on secondary contacts. This finding
collaborates with that idea. They are not aware of neutral sources of information like data
provided by government agencies or research institutes. Even though 20% respondents depend
on market-dominated sources like advertisements, sales men’s suggestions, majority of the

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

respondents depend on personal sources of information. Hence even though financial positions
of the rural consumers have been developed, their basic features of reality are not yet minimized.

Table -4.8. Distribution of pre-purchase and purchase visits to shops for information search

Nature of Visits Number of respondents Avg. % of Respondents


Pre-purchase visit 71 35.5
Visit at purchase time only 129 64.5
Total 200 100
Source: Field Survey

Distribution of pre-purchase and purchase visits to shops for information search


70.00%
64.50%

60.00%

50.00%

40.00%
35.50%

30.00%

20.00%

10.00%

0.00%
Pre-purchase visit Visit at purchase time only

Interpretation:
It is often stated that rural people are cautious and they visit shops several times for
information search before they actually purchase goods. But from the field study it is reached
that the situation is a bit different for rural people. Responses on the issue are tabulated in above
table 4.8.
Thus it appears that only less than two-fifth of the respondents visited shops more than
once for information search. Other three-fifth respondents have reported that since they purchase
branded goods, they rely on the honesty of the store- owners that they do not like to enquire
much about the product on the floor of the shops.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

But information should be examined from different angles. Pre-purchase visits to shops
are required for information search. More a person is skeptic, more he enquires. Hence,
respondents may think that more pre-purchase visits may indicate his suspicious nature, his
abundant leisure time. That is why they may reply in such a manner. But if their responses are
taken on face value, it may be inferred that the products they purchase are standard ones, and the
shops they visit are dependable since they take much time in information search, it is of no use
investing shops before purchasing. Whatever may be the interpretations, it is a fact that rural
consumers have become prudent.

Table-4.9. Particulars showing the sample respondent about important factor in buying
Sl. Nature of Units Number of respondents Avg. % of
No Respondents
1 Price 68 34.0
2 Quality 64 32.0
3 Brand Image 35 17.5
4 Service Availability 13 6.5
5 Promotion Programs 17 8.5
6 Other Reasons 03 1.5
Total 200 100
Source: Field Survey

Particulars showing the sample respondent about important factor in buying

40%
35% 34.00%
32.00%
30%
25%
20% 17.50%
15%
10% 8.50%
6.50%
5% 1.50%
0%

Interpretation:

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Table-4.9 shows the sample respondents about important factor in buying process. They
are price, quality, brand image, service availability, promotion program and other reasons.
This evident shows that 34% of respondents prefer price, 32% of respondents prefers quality,
17.5% of respondents prefer providing, 6.5%respondnets prefer service availability, 8.5% of
respondents prefer promotion program and 1.5% respondents prefers other reasons. Finally price
and quality play a vital role in buying process in rural areas.

Table – 4.10 Particulars showing the sample respondents about factors influence to buy
Preference Factors influence Number of respondents Avg. % of Respondents
to buy
Role model 06 3.0
Colleagues & friends 94 47.0
Neighbors 78 39.0
Other Reasons 22 11.0
Total 200 100
Source: Field Survey

Particulars showing the sample respondents about factors influence to buy


50% 47%
45%
40% 39%

35%
30%
25%
20%
15%
11%
10%
5% 3%
0%
Role model Colleagues & friends Neighbors Other Reasons

Interpretation:

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Table No.4.10 shows the sample respondents about factors influence to buy products.
Those factors are role model, colleagues and friends, neighbors and other persons. This evident
shows clearly that 3.% of respondents influenced by role model, 47.0% of respondents
influenced by friends, 39% of respondents influenced by neighbors, and 11.0% of respondents
influenced by other persons for purchasing goods.

Table –4.11 Particulars showing the sample respondents about their kitchen hold products
in selected areas
Sl. Product Number of Respondents Avg. % of Respondents
No Having Not-having Having Not-having
1 Gas Stove 168 32 84.0 16.0
2 Maxi 93 107 46.5 53.5
3 Grinder 47 153 23.5 76.5
4 Micro oven 09 191 4.5 195.5
5 Cooker 98 102 49.0 51.0
Total 200 100
Source: Field Survey

Particulars showing the sample respondents about their kitchen hold products in
selected areas
250

200 195.5

150 Having
Not-having

100
84
76.5

53.5 49 51
50 46.5

23.5
16
4.5
0
Gas Stove Maxi Grinder Micro oven Cooker

Interpretation:

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Thus, this table shows the sample respondents about the kitchen hold products. In this
category we have taken 5 types of kitchen hold products like gas stove, mixy, grinder, micro-
oven and cooker. Among them 84.0% have gas stoves, 46.5% have mixers, 23.5% have grinders,
4.5% have micro-ovens and 49.0% have cookers.
Thus it is evident that most of the respondents have gas stove, mixy, cooker in rural areas. It
depends on their economic status.

Table –4.12 Particulars showing the sample respondents about their household products in
selected study area
Sl. Product Number of Respondents Avg. % of Respondents
No Having Not-having Having Not-having
1 Washing Machine
32 168 16.0 84.0
2 Air Conditioner
-- 200 -- 100
3 Air Cooler
02 198 1.0 99.0
4 Fans
178 22 89.0 11.0
5 T.V.
186 14 93.0 7.0
6 DVD/CD Player
27 173 13.5 86.5
7 Camera
27 173 13.5 86.5
8 Tape Recorder
96 104 48.0 52.0
9 Iron Box
74 126 37.0 63.0
10 Wall Clock
168 32 84.0 16.0
Total 200 100
Source: Field Survey
Interpretation:
This table shows the sample respondents about the house hold products in selected study
area. In this category we have taken 10 types of household products like washing machine, air
conditioner, air cooler, fans, T.V, DVD / CD player, camera, tape recorder, iron box and wall
clock. Among them, 16% of respondents have washing machine, 0.0% of respondents have air
conditioner, 1% of respondents have air cooler, 89.0% respondents have fans, 93.0% of

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

respondents have TV, 13.5% of respondents have CD players, 48.0% of respondents have tape
recorders, 37.% of respondents have iron boxes and 84.2% of respondents have wall clocks.

Table –4.13 Particular showing the sample respondents about their transport products in
selected areas

Sl. No Product Number of Respondents Avg. % of Respondents


Having Having Having Not-having
1 Bicycle 187 13 93.5 6.5
2 Luna/ Moped 81 119 40.5 59.5

3 Scooter 40 160 20.0 80.0

4 Motor Cycle 54 146 27 73.0

5 Four Wheeler 1 199 0.5 99.5

Total 200 100


Source: Field Survey
Interpretation:
This table shows the sample respondents about the transport products in selected study
areas. In this category we have taken 5 types of products. They are bicycle, moped, scooter,
motorcycle and four wheelers. Among them 93.5% of respondents have bicycle, 40.5% of
respondents have mopeds, 20% of respondents have scooters, 27% of respondents have motor
cycles and 0.5% of respondents have four wheelers.
So we can clearly observe that bicycles, mopeds and motor cycle have only potential in rural
areas.
Table –4.14 Particular showing the sample respondents about their personal use products
in selected areas
Sl. Product Number of Respondents Avg. % of Respondents
No Having Not Having Having Not-having
1 Cell Phone/ Mobile 32 168 16.0 84.0
2 Wrist Watches 156 64 78 .0 22.0
3 Shoes 108 92 54.0 46.0
4 Computers 12 188 6.0 94.0
Total 200 100
Source: Field Survey
Interpretation:
This table shows the sample respondents about their personal use products in selected
areas. In this category we have taken 4 types of products like cell phones/ mobiles, wristwatches,

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

shoes and computers. Among them 16.0% of respondents have mobiles, 78% of respondents
have wristwatches, 54.0% of respondents have shoes and 6% of respondents have computers.
So this is the evident that in rural area wristwatches and shoes only have potential in this
category.

Table- 4.15 Distribution of persons shouldering shopping responsibility


Sl. Persons shouldering shopping Number of Avg. % of
No responsibility Respondents Respondents
1 Head of family alone 109 54.5
2 Head of family sharing with other 91 45.5
members
Total 200 100
Source: Field Survey

Distribution of persons shouldering shopping responsibility

Head of family alone


46% Head of family sharing with other
members
55%

Interpretation:
In developed countries usually elderly lady family member shops most of the goods that
family needs. But the developing countries, particularly in rural areas, it is not so. Here in most
cases head of a family performs this activity. Actual practices in this regard reveled from this
study are stated in the above table.

Table No-4.12 reveals the buying durable goods, majority (54.5%) of the respondent’s
buy the goods individually, but in 45.5% cases they buy jointly with other members of the
family. In such cases they become more cautions, that is why, they want to purchase durable
goods in association with other family members.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Awareness of the Various Brands of Consumer Durables


Consumer durables are normally more valued, high priced products and not frequently
purchased products. While purchasing these consumer durables brand awareness is one of the
significant factor which provides assurance of quality, good performance and durability. The
more awareness are familiarity of brands of the durables indicates that customers are more
conscious and they well known about different company’s products.

Table- 4.16 Awareness of the Various Brands of Consumer Durables


Consumer Durable Brand I Brand II Brand III
Possessed
Respondents (%) Respondents (%) Respondents (%)
Fan\Iron Box 183 100 155 84.69 140 76.50
CD Player 157 100 149 87.26 135 82.16
TV\Computer 181 100 173 95.50 141 77.90
Washing Machine 73 100 50 68.49 35 47.94
Refrigerator 87 100 62 71.26 37 42.50
Source: Field Survey

Interpretation:

The above table shows that the awareness of the various brands of consumer durables of
the respondents. In the case of more familiar, more and highly frequently visible consumer
durables like fan/iron box and TV, consumers well aware of more than three brands of
companies. In case of TV/Computer brand awareness among the respondents is very high.
In the case of CD player brand awareness among the respondents is very on an average. The
respondents know about other brands which markets same consumer durables which they have
purchased. In the case of washing machine, refrigerator brand awareness among the respondents
is very low only purchased brand known by all the respondents. It is rarely found that
consumers’ familiarity with other same products brands of the durables.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Table – 4.17 Distribution of factors influencing the selection of brand


Sl. Preference Factors influence to buy Number of Avg. % of
No Respondents Respondents
1 Advertisements 49 24.5
2 Showcase display 26 13.0
3 Word-of-mouth 90 45.0
4 Earlier experience 07 3.5
5 Salesman & other 28 14.0
Total 200 100
Source: Field Survey

Distribution of factors influencing the selection of brand


50.00%
45.00%
45.00%
40.00%
35.00%
30.00%
24.50%
25.00%
20.00%
15.00% 13.00%
10.00%
5.00% 3.50%

0.00%
Advertisements Showcase display Word-of-mouth Earlier experience

Interpretation:
Factors like advertisements in T.V, showcase displays, word-of-months, earlier
experience, and salesmen of a brand. But to a consumer all the factors are not considered equally
important. Relative importance of the consumers have assigned for these factors by the
consumers. Thus it is evident that for Table No-4.14 that 45% of respondents gave importance to
the opinion of others for selecting the brands of durables and 24.5% of respondents for
advertisements, 14% based on showcase displays and 14.5% based on advice of salesmen and

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

others. Only 3.5% of respondents depended on earlier experience. Since most of the respondents
are influenced by opinion of others in selecting brands.

Opinions about the Statements

Respondent’s opinion regarding purchase of selected consumer durables helps to


marketers to build their strategies according to customer views. The opinions collected regarding
taking Expert opinion before purchase, credit facility expectation, attraction towards local
manufacturing consumer durables, consideration of other factor while purchasing and stick to
well known existed brands.

Table4.18- Opinions about the Statements


TOTAL
RESPONSES YES (%) NO (%)
(%)
I take experts opinion before buying the durables 93 [186] 07 [14] 100 [200]
I stick to well-known brands of durables 83 [166] 14 [28] 100 [200]
I prefer credit facility in installments 81 [162] 19 [38] 100 [200]
I take time and consider various factor before buying the 84 [168] 16 [32] 100 [200]
durables
I prefer locally manufactured durable goods 38 [76] 62 124] 100 [200]
Source: Field Survey
Note: Figures Shown in Brackets are Number of Respondents

Interpretation:
Table No 4.18 shows that the factor attributed in the process of buying durables. Here
186 respondents i.e. 93% of respondents take experts opinion before buying the durables a rest of
14 respondents i.e. 7% are not take experts opinion before buying the durables. Then 166
respondents were go to stick to well known brands of durables and remaining 28 respondents i.e.
14% of respondents are not go through the durable brands. Then 166 (i.e. 81%) of respondents
prefer credit facility in installments and remaining 38 respondents (i.e. 19%) do not prefer credit
facility installment payment.
Though respondents to take time and consider various factors before buying the durables.
Hence 168 (i.e. 84%) of respondents have not considered various factors remaining 32 (i.e. 16%)
of respondents have not considered various factors in buying the durables. Finally 76(i.e. 38%)
respondents prefer locally manufactured durable goods and resting 124 i.e. 62% of respondent
are not prefer locally manufactured durable goods.

Post-Purchase Reactions of Respondents

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

Post purchase behaviors or reactions of the consumers are very important factors for the
sellers in formulating their future marketing strategies. This aspect is more relevant for dealers in
consumer durables: since such products have the characteristics of repeat use for a longer period
of time.
Table-4.19, Post-Purchase Reactions of Respondents
REACTIONS NO.OF RESPONDENTS PERCENTAGE%
SATISFIED & USING NOW 163 81.50
NOT SATISFIED BUT 17 08.50
RETAINED
NOT SATISFIED SO RESOLD 11 05.50
NOT SATISFIED SO 09 04.50
SCRAPPED
TOTAL 200 100
Source: Field Survey

POST-PURCHASE REACTIONS OF RESPONDENTS


90.00%
81.50%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
8.50% 5.50%
10.00% 4.50%
0.00%

Interpretation:
Table No-4.19 reveals that post purchase reactions of respondents. Out of 200
respondents 163 respondents are satisfied and using the purchased durables i.e. 81.50 percentage
with all the sample consumer durables. It means that after through enquiry as to quality, price,
durability, performance, etc., the sample durables have been bought by the respondents covered
under the study. Dissatisfaction and complaints are rarely found in the selected durables only 17
respondents are not satisfied but retained i.e. 8.50%.11 respondents i.e.5.50% are not satisfied so
resold. 9 respondents i.e. 4.50% are not satisfied so scraped.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

CHAPTER - V
FINDINGS
SUGGESTIONS
CONCLUSION

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

FINDINGS:

1. Large numbers of rural respondent consumers were in possession of consumer durables


more than three years ago i.e., 58% of respondents have been enjoying such consumable
for above 3 years.
2. Nearly two-third (61.5%) of respondents felt the need for six months or more than that
before buying the durable goods. While more than one-tenth of respondents felt the need
just for only one month before purchasing the consumer durables.
3. More than one-third respondents took two to six months and another more than one-third
respondents took six or more months for pondering over selecting their desired brands.
Only 11% respondents and 14.5% of respondents purchased their selected brands just
below two months take time to purchase, they might be rich people. But it appears that
almost nearly 75% of the respondents took more than two months to be engaged in actual
purchase.
4. 76% of the respondents assign the biggest importance to the personal sources of
information. Neutral sources have a little impact on the respondents. It is evident that
rural people depend mostly on primary contacts and not on secondary contacts.
5. Only less than two-fifth of the respondents visited shops more than once for information
search. Other three-fifth respondents have reported that since they purchase branded
goods, they rely on the honesty of the store- owners that they do not like to enquire much
about the product on the floor of the shops.
6. Price and quality play a vital role in buying process in rural areas.
7. 3.% of respondents influenced by role model, 47.0% of respondents influenced by
friends, 39% of respondents influenced by neighbors, and 11.0% of respondents
influenced by other persons in purchasing durable goods.
8. Most of the respondents have gas stove, mixy, cooker in rural areas. It depends on their
economic status.
9. 89.0% respondents have fans, 93.0% of respondents have TV, 13.5% of respondents have
CD players, 48.0% of respondents have tape recorders, 37.% of respondents have iron
boxes and 84.2% of respondents have wall clocks.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

10. 93.5% of respondents have bicycle, 40.5% of respondents have mopeds, 20% of
respondents have scooters, 27% of respondents have motor cycles and 0.5% of
respondents have four wheelers.
11. Majority (54.5%) of respondents buys the goods individually, but in 45.5% cases they
buy jointly with other members of the family.
12. In case of TV/Computer brand awareness among the respondents is very high.
13. In the case of CD player brand awareness among the respondents is very on an average.
14. In the case of washing machine, refrigerator brand awareness among the respondents is
very low.
15. 45% of respondents gave importance to the opinion of others for selecting the brands of
durables and 24.5% of respondents for advertisements, 14% based on showcase displays
and 14.5% based on advice of salesmen and others. Only 3.5% of respondents depended
on earlier experience. Since most of the respondents influenced by opinion of others in
selecting brands.
16. 93% of respondents take experts opinion before buying the durables
17. 81% of respondents prefer credit facility in installments
18. 38% respondents prefer locally manufactured durable goods.
19. Majority (81.50%) respondents are satisfied and using the purchased durables.

SUGGESTIONS:

1. Modify the product to market it more suitable for the needs/usage conditions of rural
consumer.
2. Develop entirely new products for rural markets.
3. To capture durable market share, the organizations has to consider the pull strategy and push
strategies in rural market.
4. To promote the consumer durable products in markets better to use mixed strategies of
promotional techniques in rural market.
5. To select best pricing method for durables, by considering demand of the product,
competition, infrastructure facilities, economic conditions of particular rural areas.
6. By conducting the campaigns, exhibitions and trade fairs to crate the awareness about
products and brads.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

7. Arrange customer care units it all areas for clarifying and giving the information about their
products.
8. By considering the density of people, the organizations have to establish or open new sales
outlets.
9. To encourage social activities for development of rural areas for brand loyalty.
10. Consumer –seller relationship in rural areas is an interesting area of study. Such a study will
help in identifying the factors responsible for enhancing sales and consumption in rural areas.
CONCLUSION:
Indian consumer demographic profile is changing with large young population, rising
personal income, increase in education class, advancement in technology, rural development
offering enormous scope for consumer durable market. The aspiration of ease in work and
increase in standard of living scales up product demand like TV, Refrigerator, Computer,
washing machine, kitchen appliances in the market.
Ease of information access across all consumer segments has brought fundamental shifts
in Indian consumer behavior. The study revel that changing economic and social features has
created a great impact on consumer buying behavior. They are fully aware about the product and
brand with their features and price. Durable company should study these trends and work out
their strategies for sustained growth.
Success in the long-term will require firms to develop a wide and robust distribution
network, differentiate their products in areas of relevance to the consumer and innovate in the
areas of promotion, product financing, etc. The product and approach to market need to be
customized to suit the unique needs of the Indian Rural market.

BIBLIOGRAPHY

1. Ahmed, Shamim (1991), Rural Marketing in India, Ashish Publishing House, New Delhi.
2. Aneja, Rajendra K. (2000), Impact of Liberalization on Marketing and Distribution in
India, ASSOCHAM, Delhi.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

3. Bhandari, Ladbhi P. (1978), Communication for Social Marketing: A Study in Family


Planning, Macmillan, Delhi.
4. Das, V. Mukunda (1985), Rural Market for Consumer durables in India. Institute of Rural
Marketing, Anand.
5. Dogra, B.S. (1990), Marketing Management and Rural Marketing . Commonwealth
Publishers, Delhi.
6. Emsinger, Douglas (1972), Rural India in Transition, All India Panchayat Parishad, New
Delhi.
7. Ganguly, A.S. (1983), The Growing Rural Market in India. Hindustan Lever Ltd.,
Bombay.
8. Krishnamacharyulu, C.S.G & Rama Krishnan, L. (2002), Rural Marketing, Pearson
Education, Delhi.
9. Mamoria, C.B. & Joshi, R.L. (1962) Principles and Practice of Marketing in India, Kitab
Mahal, Allahabad.
10. National Council of Applied Economic Research (NCAER) (1998), Indian Market
Demographics Report, 1998, NCAER, New Delhi.
11. Rajagopal (1993), Indian Rural Marketing, Rawat Publications, Delhi.

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN
"CONSUMER BEHAVIOUR TOWARDS CONSUMER DURABLE GOODS: A CASE STUDY OF VIJAYPUR DISTRICT"

CHAPTER - I
INTRODUCTION

PG DEPT. OF STUDIES IN COMMERCE SHRI SANGAMESHWAR ARTS AND COMMERCE COLLEGE, CHADACHAN

You might also like