CHAPTER – I

INTRODUCTION

1.1. INTRODUCTION

Economic strength of a country lies in its ability employ all its

available resources gainfully. This would be possible only when there is a
steady and effective demand for goods and services, which is the pre-conditions
for the ability and willingness of the people to purchase or pay for such goods
and services. Ultimately, consumption function is center of all economic
activities, which is largely influenced by Consumer Behaviour.

An understanding of the economic, psychological and sociological

characteristics of the consumers and their motives attitudes, cognitions and
personalities can help to discover new market opportunities, to provide a
sharper segmentation of the market and meaningful product differentiations and
to formulate marketing strategies based on consumer responses as a major
variable. In brief, the understanding of consumer preferences and emotions are
important determinants for the success of the marketers and all that could vitiate
influence the decisions relating to the identifications of opportunities, product
policy, channels of distribution, pricing, personal selling and promotional
strategies. Thus the marketing concept is more consumers oriented. Hence, the
study of consumer behaviour is basic to all marketing activities.

At any moment of time, there are hundreds of thousands of products

being manufactured and marketed. These products are marketed with a view to
satisfying various human needs. Broadly speaking, the activities undertaken by
an organizations towards the satisfaction of human needs are called marketing
activities. In any given market, different producers offer the same or similar
product to satisfy the same or similar needs of the consumers. For this they

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differentiate their products, by different brand names, and different packing
designs.

In the past, the producers produced goods according to their

discretion. Competition in the market was not so intense. It was enough, if the
producer informed when his products would be ready and what would be the
price. Long gone are the days when success for a marketer was measured
simply in how many sales they made each day. Now, in most marketing
situations, marketing success is evaluated not only in terms of sales figures but
also by how long a marketer retains good customers. Consequently marketer’s
efforts to attract customers do not end when a customer’s makes a purchase. It
continues in various ways for, hopefully, a long time after the initial purchase.

In today’s market, business exists only to satisfy human needs.

Therefore, business must first find out what the consumers want and then
produce goods according to the needs of the consumers. Only such products
should be produced which best satisfy consumer needs and at a profit to the
maker. What is offered for sale should be determined by the buyer rather than
the seller has become a necessity that products are brought together to a central
location for the purpose of exchange. Thus markets have come into existence.

Consumer behaviour

Consumer behaviour is defined as ‘the behaviour exhibited by people

in planning, purchasing and using goods and services’. A consumer has to take
a number of decisions like ‘how much to spend, on what, where to buy, how to
buy from whom to buy, etc. This involves both physical and mental behaviour.
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 consumer’s buying behaviour. Finally this knowledge aced
as an imperative tool in the hands of marketers to forecast the future buying

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behaviour of customers and devise four marketing strategies in order to create
long term customer relationship. All the behaviour of human beings during the
purchase may be termed as “buyer behaviour”. “The process whereby
individuals decide whether, what, when how and from whom to purchase goods
and services can be termed as the customer’s or the buyer’s behaviour.”

The term ‘Consumer behaviour’ refers to the “behaviour that

consumers display in searching for, purchasing, using, evaluating, and disposing
the products and services that they expect will satisfy their needs.” The entire
set of actions, including inaction and contra-action, undertaken by called
consumer behaviour. A study of consumer behaviour is very complex as it
embraces “psychological, social, and physical behaviour of all potential
consumers as they become aware of, evaluate, consume and tell others about
products and services.”

Buyer, customer and consumer

The term “buyer” or “customer” is used to signify the entity actually

engaged in the act of exchanging goods and services for money. He may or
may not be the ultimate user of these things, depending upon whether the goods
have been bought for his own consumption or for purpose of reselling or
reprocessing and selling. The term buyer is therefore, a much wider term than
the term “consumer” which signifies only the ultimate use of the goods and
services. Even in goods bought for ultimate consumption, the prospective
consumer of a given purchase and the person making the often two different
people. In many cases, the purchase is made for a household and the buyer is
only one of those who will share its use.

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Factors influencing consumer behaviour

Consumer behaviour is influenced by a number of factors. These could

be classified broadly into four categories.

A. Cultural factors
Cultural is the symbol and artifacts created by people and handed
down from generation to generation as determinants and regulators of human
behaviour in a society. In other words, the faiths, beliefs and trusts that people
have on social relations and activities are moulded over centuries by the
behaviour of ancestors, which are preserved and passed on from generation to
generation. That way, how producers and consumers in India behave is simply
a reflection of their culture.

B. Social factors

Social factors include reference groups, family and roles and status.
Of these there are a number of groups within the reference groups. Every
person is subjected to the primary group and the secondary group. The former
refers to the members in a family, neighbours, friends and others.

I. Personal factors

Personal factors include, age of the buyer, his life cycle stage,
occupation, economic status, life style and personality. It is well known that
age is an important determinant of buyer behaviour. For instance, when a
person is young he has all the interests and desires to use new products or
services, whereas in the old age, a person thinks more in a balanced way and
then takes a decision. While price used to be a major influencing factor in the
old age, for young persons, price is not at all a consideration. Persons of
different age groups are guided by different priorities and factors.

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II. Psychological factors

The Psychological factors could be discussed with reference to

motivation, perception, learning and beliefs and attitudes. One of the basic
psychological factors is the need or felt deprivation of consumers. That is, each
person has a specific need. Unless the manufacturer has the ability to study this
need of a consumer, he would not be able to make his product relevant to the
consumer. Each consumer is different in several respects and so their needs
would also be different.

Stages involved in buyer decision-making and the buying process

The stages through which a buyer passes to reach a buying decision

are problem identification or recognition, information search, evaluation of
alternative, purchase decision and post-purchase behaviour. This implies that
the buying process begins, long before the actual purchase.

1. Problem recognition

In this first stage, the consumer would recognize the need for a
product, which will satisfy his particular desire. He would then think about his
position, if he gets the product and his position without that product. Usually
the need is triggered either by an external or internal stimuli. By undertaking a
detailed research, a marketer should be able to determine (a) what kind of felt
needs or problems arose and (b) what brought them about and (c) how they led
a consumer to a particular product. Majority of the product / services in the
market are either developed or conceived only from such intensive research.

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2. Information Search

Once the customer recognizes his need, he may or may not search for
more information. If the need were so intense, the consumer would get hold of
the particular product, which will satisfy the need, whereas if it is not so intense,
then he may simply store the need in his memory. If the consumer is no the
search for information, he may first make a less series search, which is called as
heightened attention. Regarding the sources of information, a consumer may
make use of (a) personal sources like family, friends, neighbours and
acquaintances, (b) commercial sources like advertising, sales persons, dealers,
packaging, displays, etc., (c) public sources which consists of mass media,
consumer rating organization, etc. and (d) experiential sources which means the
actual handling, examining and the using of the product. A marketer should
study the sources of information available to the consumers and those that are
effective.

3.Evaluation of alternatives

In this stage, the consumer has the information about different brands
of the same product. He has to make an ultimate choice among the various
brands. For this he has to evaluate each product with reference to certain
criteria. In this process of evaluation, first he sees a product as a bundle of
attributes. He would pay maximum attention to these attributes that are
connected with his needs. Then, he attaches different weights to the relevant
attributes. Thirdly, the consumer is likely to develop a set of brand belief where
each brand stands on each attribute. This is what is called the brand image.

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4. Purchase decision

Evaluation of competitive brands leads the consumer to rank his

preference for various brands. On this basis he forms his purchase intentions. It
is obvious that he would purchase the most preferred product first. For
example, while applying for a cell phone connection, a consumer studies
various alternatives and finally when he ranks them.

5. Post- Purchase behaviour

In this stage, the consumer having bought the product might be

satisfied or dissatisfied. If the product has met his expectation, he might be
satisfied and it has not, he might be dissatisfied. Consumer normally develop
their expectation based on the information that they get through advertisements,
television stories, sponsored events, exaggerated claims of the manufacturers,
experience of other, etc. If a product falls short of these expectations, then the
consumer would feel dissatisfied

Buying motives

You purchase a product, because of certain motives. Motives refer to

thought, urge, strong feeling, emotion, drive etc. They make a buyer to react in
the form of a decision. Motives induce a consumer to purchase a particular
product. The motives may be generally controlled by economic, social,
psychological influences etc. When a consumer buys a product, his aims are
desire for security, rest, comfort, curiosity, self-preservation, fashion etc.
People Purchase products urged by mental and economic forces, which create a
desire; and this desire is satisfied by the articles displayed for sale.

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a) Inherent and learned motives

Motives generated by physiological needs like hunger, thirst are

inherent motives. Motives arising out of desire for social recognition are
learned motives. Needs arising out of desire for social recognition are learned
motives. Needs arising out of religion social values and education.

b) Product motives

It includes all the reasons that prompt a consumer to buy a particular

product in preference product in preference to another. They may be: (a)
primary product motives, (b) selective product motives. These arise due to
limited income. Ex: an office clerk wants to buy a dining table but his wife
prefers a DVD. His decisions on brand, size, model, etc., are the selective
motives.

c) Patronage motives

These are influences which make a consumer buy at a particular retail

store. Some of them are convenience of location of store, reputation of the
store, efficiency of salesmen, prices charged, services offered, product variety,
storage appearance.

d) Emotional motives

They include hunger, thirst, comfort, safety and security of loved

ones, status, prestige, pride, etc. Ex: film actresses are used to advertise
cosmetic and soaps.

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e) Rational motives

These are based on conscious reasoning ex. Automobile

manufacturers emphasize on the operating economy of his model. It is usual to
see in the advertisement for two wheelers the manufacturers to specify the
mileage that the vehicle can give. Some of the other rational motives are: low
price, economical and efficient operation, dependability, durability,
convenience, utility, etc., of a product.

1.2Statement of the problem

What is important for a marketer to best achieve his goals, is to

acquire vivid understanding of consumer behaviour, the patterns, the factors
affecting and the objectives for the behaviour. The main role the marketer is to
satisfy needs and wants of the customers. This can only be done by the study of
consumer is the marketer takes into consideration on the likes and dislikes of
the consumer and he produces the goods and services accordingly. The more
the consumer behaviour is learnt, the more the needs and wants of the customers
are fulfilled.

1.3Needs of the study

The planners of the enterprises need to know about the changes taking
place in economy in order to adjust the supply to the demand of different goods.

In common parlance, demand is considered in physical terms. But in

actual practice, demand for a product is affected by many of the factors which
can be termed as psychological or behavioural factors. In respect of brand
attributes of the product advertisement, availability, servicing in respect of
durables are the important factors which influences the demand for the product.

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 In order to study this it is not the product alone but also the benefits of
the buyer believe that or expect from the same product. There is now almost no
well-known international brand, which does not have a presence in India.
Never has the Indian consumer had such a wide variety to choose from. The
competition is fierce and consumer has benefited, not just by price slashes but
deferred payment schemes, old for new exchange option, home deliveries, gifts
and extended free service.

1.4 Objectives of the study

The study based on the following objective

 To identify the factor that influenced buyer behaviour on durable goods.

 To analyse reasons for the current use of particular brands and to appraise
the causes for the switch over to some other brand.
 To access the socio-economic and psychological behaviour factors
influencing the consumer buying decisions.
 To present an appropriate consumer purchase behaviour model useful to
the marketers.
 To study the major findings to make appropriate suggestions for the same
problem.

1.5 Area of the study

Tiruchirappalli is an administrative district in the state of Tamil Nadu

in India. The district headquarters are located at Tiruchirappalli. The
Tiruchirappalli district was formed on 1965. Agriculture is the main occupation
of the people in the district. Now the major cultivation is Banana, totally 40%
in Tamil Nadu i.e. first place in Tamil Nadu. The district for administrative
purpose has been divided into 12taluk which is further sub-divided into four
blocks viz. Tiruchirappalli. The district comprises 89 village panchayats,

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19panchayats and 3municipality. The district collector of Tiruchirappalli
district is Dr. K.S. PalanisamyIAS. The research area is Manachanalur,
Mannarpuram, Manapparai, K.K. Nagar, Abinimangalam.

1.6Scope of the study

The study aims at focusing on consumer’s behaviour for durable

goods. Hence it is necessary to concentrate on consumer’s behaviour for their
pre, and post-purchase activities. How they obtained information, how they
compared it, and aspects they considered important, who are the decision
makers and how they are influenced, by whom they get influenced. There are
many sides of consumer’s behaviour that possibly needs elaboration, but this
study concentrates on individual consumer’s purchase behaviour regarding the
purchase of durable goods. The data has been collected for three of the
following durable products, namely refrigerator, washing machine, and
television. This research study is exploratory in nature – moreover, the area of
the study is confined to Tiruchirappalli District. The study focuses on urban &
rural population. It is cover the area where consumer residing in Tiruchirappalli
District taken of convenience sampling method.

1.7 Research design

The study is descriptive in nature, descriptive study attempts to obtain

in complete and accurate descriptive of a situation. The methodology involved
in this design mostly qualitative in nature producing descriptive data.

1.8 Research methodology

A structured and scientific way to solve the problems under the study
is main purpose of research methodology. It includes all the tools irrefutable.
The area under study, the determination of the sample size and various

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statistical tools used to analyse the data in order to follow a structured path of
conducting the study.

1.9Sampling

A sample is a representative part of the population. Convenience

sampling method was followed for the study. The research has decided to select
a sample size of 60 household respondents for different brands of product
preferred by consumers. 30 respondents have been selected from each area of
Tiruchirappalli district. Only five areas have been selected for Manachanallur.

Among the consumer durables, three products were selected namely

colour television, refrigerator and washing machine, because all the three
products are commonly used both by the households and working women.

1.10 Hypotheses of the study

The study is based on the following hypotheses.

 There is no significant relationship between age groups and Brand

possessed for Refrigerator.
 There is no significant relationship between age groups and Brand
possessed for Washing machine.
 There is no significant relationship between age groups and Brand
possessed for Television.

1.11 Period of the study

The dissertation study covered a period of year 2015-2016.

1.12 Collection of data

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 Both primary and secondary data has been collected for the study.

Primary data

The primary data were collected directly from the sample consumer
through a well-devised interview schedule. Incomplete and inaccurate
responses were dropped out, and only the respondents having three durable
goods namely refrigerator, washing machine and television were taken as the
sample for the purpose of the study. For data collection, researcher visited the
respondents at their homes more than once, because many respondents were
busy in their work.

The data were collected from the sample customers with the help of
interview schedule. Then they were classified and codified. They were
tabulated as per statistical rules. For the purpose of analysis, tools such as chi-
square were used for testing the hypotheses. Charts also used for the purpose of
exhibiting the data in a simple manner.

Secondary data

The secondary data for the study were collected from books, journals,
research articles, magazines, reports, newspaper and websites. The researcher
also visited the library of Indian Institute of Management, Bangalore for the
collection of materials.

1.13 Limitation of the study

There are so many limitations to collected the data

 Sometimes respondents were unwilling to answer and it was difficult to

convince them to convince them to answer all the questions.

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 The study based on the reported responses evoked through the schedules and
direct interview techniques rather on direct observation of what consumers
actually do in their purpose process.
 No specific theoretical model on consumer behaviour is applied in this
present study.
 Even though are so many consumer durables, the study confines only to
refrigerator, television and washing machine. The branded products alone
are taken for the study. The various models and varieties are not taken into
consideration.

1.14 chapter scheme

This thesis is divided in to five chapters.

Chapter one deals with introduction.

Chapter two deals with review of related literature.

Chapter three deals with consumer durable goods-on overview.

Chapter four deals with data analysis and interpretation.

Chapter five deals with findings, suggestions, and conclusion.

CHAPTER – II
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 REVIEW OF LITERATURE

The earlier studies on consumer behaviour, purchasing pattern and

the evolution of the modern open market conditions were extensively reviewed.
Available past studies focused on these areas published in various research
journals covering both general concept as well as application of consumer
behaviour was examined.

1. Pickering J. (1978) in this article, attempts to draw together

some main implications arising from studying usage of survey data forecasting
the demand for durable. He pointed out that re-interview tests are important,
shedding light on the influences on consumer demand, by perhaps identifying
respects in which purchasers and non-purchasers differ. He suggests that
predictive models, which have some foundation, stand a better chance of
confident usage. He points out that some studies appear to show cross-sectional
investigations perform reasonably well in explaining individual household
behaviour, both in terms of level of outlay on consumer durables and in
identifying purchasers of particular commodities and describe overall patterns
of result in more general terms and to draw them together by focusing
specifically on what they suggest about the nature of individual behaviour and
decisions regarding consumer durable.

2.Subramanyam, Ramakrishna Rao and

RamamohanRao(1982) conducted a survey on consumer goods marketing in
Visakhapatnam by taking a sample of 300 household equally distributed among
employees, business people and professionals. The main objectives of the
survey were a) to review the expenditure pattern of the consumers in
Visakhapatnam and, b) to examine the buying-habits of the consumers relating
to groceries, clothes and electrical appliances. The study found a direct
relationship between monthly income, level of education, size of the family,

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structure of the family, life-style and the consumer behaviour. Interestingly, the
influence of social groups was very low in case of grocery purchases, while it
was very significant in electrical appliances.

3.Gilles Laurent and Jean – Noel Kapferer (1985)analysed

consumer involvement profiles. They found there is more than one kind of
consumer involvement. Depending on the antecedents of involvement (e.g., the
product’s pleasure value, the product’s sign or symbolic value, risk importance
and probability of purchase error), consequences on consumer behaviour differ.
The author therefore recommended measuring an involvement profile, rather
than a single involvement level.

These conditions are based on an empirical analysis of 14 product

categories, which includes durable consumer goods like television, washing
machine, vacuum cleaner and irons.

4.PraneshMisra(1987) conducted a survey on ownership of

consumer durable products in three metropolises – Bombay, Delhi and Madras
– by taking a sample of 7500 households in 1985. The survey was conducted to
make a comparative analysis of the findings of an earlier study conducted by a
Market Research Organization (1978). The main conclusion of the survey was
the standard of living as judged by the level of ownership of durable products
has improved during 1978-1985 in the three metros.

5. Kaleen Mohammed Khan(1988) examined the role of reference

group in influencing purchase decision. This study reveals that reference group
can be classified based on function or purpose, degree of participation, type of
membership. Further it reveals that the reference group can have differential
influences i.e., motivational influence (informational reference, utilitarian
references and value expressive reference), and influence on product and brand
choice.

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 6.Akshay R. Raoand Kent B. Monroe(1989) investigated
experimentally the influence of price, brand name and/or store name on buyer’s
evaluations of product quality. The study suggests that for consumer products
the relationship between price and perceived quality and between brand name
and perceived quality are positive and statistically significant. However, the
positive effect of store name on perceived quality is small and not statistically
significant. Further, the type of experimental design and the strength of the
price manipulation are shown to significantly influence the observed effect of
price on perceived quality.

7.Barbara E. Kahn and Therese A. Louie(1990)analysed the

effect of price promotions on brand choice behaviour for variety-seeking and
last-purchase-loyal consumers. The author investigated how in-store
promotions affect the market share after the promotions have been retracted.
They found that the effect of promotion is contingent on both the choice
patterns of subjects-whether or not subjects switch among brands – and the
ubiquity of promotions in a product category. If only one brand is being
promoted and subjects are generally loyal to the last brand purchased, brand
choice probability declines from pre-promotion levels once the promotion is
withdrawn. However, if subjects tend to switch among brands in the absence of
promotions, or if several brands are being promoted, this decline is mitigated
and/or does not occur.

8. Barry L. Bayus(1991) examined the consumer durable

replacement behavior. This study was conducted to develop a better
understanding of the timing of consumer durable replacement purchases. The
demographic characteristics, attitudes and perception s and search behaviour of
consumers who replace a product during the early and late parts of its lifetime
were examined. Results based on univariate and multivariate analyses of
replacement buyers of new automobiles indicate that early replacement buyers

17
are more concerned with styling and image and less concerned with costs than
late replacement buyers. Further, early replacers have higher income, but lower
levels of educational achievement and occupational status, than late replacer
does.

9.William L. Wilkie(1994)analysed the family influences on

consumer behavior. The author analysed various levels of the family influence
on consumer behaviour. He discussed about the classification of families:
nuclear and extended family, the consumer socialization, and the various level
of family and finally the various stages of family life cycle. Family decisions
are of crucial importance for marketers of products such as homes, automobiles,
education, and durable goods. Within a family there are different roles that
have to be filled by members. These include consumer roles, in which
specialization can occur by product as well as stage of decision-making.

10. Francis J. Mulhern and Daniel T. Padgett(1995) studied the

relationship between retail price promotion and regular price promotion and
regular price purchases. The authors match actual purchases of individual
shoppers with an in-store survey to determine the relationship between regular
price and promotion purchasing. The results show a significant, positive who
identify the promotion as one of their reasons for visiting store, three-fourths
make regular price purchase. On an average, these shoppers spend more money
on regular price merchandise than on promotion merchandise. Also the results
show that shoppers visiting the store for the promotion are no less profitable to
the store than other shoppers.

11. Raju G and K. Sasikumar(1995) examined the impact of size

of household on saving behavior of the households. This study concludes the
saving of households is one of the most important social factors influencing the
saving behavior of households. Consumption expenditure of the households to

18
a certain is determined by the size of the household, while the number of
earning numbers is a major factor in determining the income of the households.

12. ShyamBabuVyas(1996) studies the influence of family on

consumer behavior. This article classifies the family into many types based on
nature-nuclear family and extended family, based on income earning-high,
middle and low income group, based on living place – urban, semi urban and
rural family. Further, the variation seen in decision making in the family –
husband, wife, joint or syncretism and autonomic or independent dominant
types. Based on the need of a family member, the role of individual member
may act as an initiator, an information collector, an influencing person, a
decision-maker, a purchaser and/ or the final consumer of a product.

13. ShyamBabuVyas(1997) studied the culture and consumer

behavior. In that, he discussed on various aspects and elements of culture i.e.,
material culture, social institutions, cultural values, subculture, socialization,
influence of the family, influence of reference groups etc.

14. DobharShailesh(1999) indicates that the member of urban

family may consume individually, but the choice is not women’s influence in
household decision making is increased now. Buying decisions regarding
durables area taken by both is husband and wife. Income and education also
play an important role in it.

15. Gray A. Knight (1999) in his article, “Consumer Preferences

for Foreign and Domestic Products” observes that firms will fail if they adopt a
strategy of using consumer preference for home produced goods to cover up
inadequacies. But firms with good products at a competitive price should make
clear where their product is made. “Made in America” emblazoned on packing
or referred to in advertising will remind consumers of that fact and encourage
them to make the patriotic choice without compromising their expectations in

19
terms of quality, price and technology. Compared to imported goods,
consumers appear to prefer domestically manufactured goods and are often
willing to pay a higher price for them. It is only when imported goods are of
significantly superior quality that consumer will pay more to obtain them.

16. SrinivasaRaghavan T.C.A(1999) discussed ‘the battle of brands’.

In white goods-refrigerators washing machine etc., and television sets where,
after some early hesitation, the consumer has rejected foreign brands in favour
of Indian ones, Indian brands continue to account for well over 80 per cent of
the market with MNC brands like Compaq and IBM gobbling up another 24 per
cent. The rest fall to unbranded assembled personal computers. Could this
happen with other products too? As mentioned earlier to give value for money.
This is the critical element in brand survival because, Indian or Foreign, unless
the consumer is satisfied that his money is well spent, he will not stay loyal to a
brand. Liberalization in India has not led to wholesale destruction of Indian
brands. The key to success, Indian brand managers are realizing, is in quality
and value for money.

17. Losarwar S.G(2002) studied ‘Consumer Behavior towards

durable products – A study with reference to Marathwada region’. This study
covering major issues relating to selected five durable products (Television,
Washing machine, Refrigerator, Mixer, grinder and Fan) like socio-economic
profile, role of family and referenced groups, life style, brand awareness, factors
influencing, buying motives, effectiveness of promotional plans. The data
collected through questionnaires from 200 respondents were analysed and
interpreted with the help of statistical tools such as average, rank correlation
coefficient, chi-square test etc. At the end major findings and marketing
strategy related to the study were presented.

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 18. Madhavi C.(2003) has pointed out in her article that the product is
not merely an item but a bundle of values. People buy products only because
they have value associated with them. The values may be comfort, safety,
pride, economy etc. Therefore, manufacturers must develop products, which
meet the buyer’s expectations. The values in general, depend on product
attributes like prices, timeliness, quality, image etc., but all the attributes are
important for a product success.

19. Dr. SatyaSundaram I. (2003) in his article states that the rising
middle class has boosted the demand for consumer durable. Approximately 192
million urban and rural households have access to television even though only
42 per cent of these own TV sets. Samsung India offers 15 conventional
televisions, eight Plano digital flat TVs, two projection TVs and a 106.7cm
(42inch) plasma display panel. The company has also introduced home theatre
system which includes a DVD player with an in-built amplifier and channel
speakers.

20. Pravin C. Srivastava (2004) in his article, “Indian Consumer

Durable Industry” states that the size of the consumer electronics industry in
India is estimated approximately Rs.80 billion of the total market. Out of this
Rs.80 billion market, colour television constitutes Rs.70 bi8llion and black and
white TV approximately Rs.10 billion.

Reference:

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1. Pickering .J. “The Durable Purchasing behaviour of the individual
household”. European Journal of Marketing. Vol.12. issue: 2, 1978, pp.
178-193.
2. Subramanyam G. Ramakrishna Rao B. and RamaohanRao K. ‘Consumer
Goods Marketing’. The Economic Times. 28 the to 30th June 1982, p.5.
3. Gilles Laurent and Jean – Noel Kapferer. Journal of Marketing Research.
Vol.XXII, Feb, 1985. pp.41-53.
4. PraneshMisra, “The revolution in Consumer Durables”, Business India.
Dec.29 1987, pp. 97-98
5. Kaleem Mohammed Khan, Marketology, July – September 1988, pp 29-32.
6. Akshay R. Rao and Kent B. Monroe, Journal of Marketing Research: Vol.
XXVI: August 1989. pp.351-357.
7. Barbara E. Kahn and Therese A. Louie, Journal of Marketing Research.
Vol. XXVII. Aug.1990.pp.279-89
8. Barry L. Bayus, Journal of Marketing, Vol. 55, Jan. 1991. pp.42-51.
9. William L. Wilkie, Family Influences on consumer Behaviour, John Wiley
& Sons, New York, 1986, pp. 1-21.
10.Francis J. Mulhern and Daniel T. Padgett, Journal of Marketing. Vol. 59,
Oct. 1995, pp. 83-90.
11.Raju G and K. sasikumar, “Impact of size of household on saving
behaviour of the households: a Case study, Southern Economist, August I,
1995, pp. 5-6.
12.ShyamBabuVyas The family and Consumer Behavior, The M.A.R.C.
Group (Marketing, advertising & Research Constancy Group), Jodhpur,
India, 1996, pp.191-200.
13.ShyamBabuVyas, Culture and consumer Behavior, the M.A.R.C. Group,
Jodhpur, India, 1997, pp.106-126.
14.DobharShailesh, ‘’NUF gen marketing of selling to the new urban family’’,
Business Today, 8(9), 1999, pp.68-81.

22
15.Gary A. Knight, ‘’Consumer Preferences for Foreign and Domestic
products, The journal of Consumer Marketing, Vol. 16, Issue 2,p.151,
1999.
16.SrinivasaRaghavan T.C.A., ‘’The Battle of Brands” Indian Business
Through the Ages, FICCI, Oxford University Press, Delhi, 1999, pp.290-
291.
17.Losarwar S.G. ‘Consumer Behavior towards Durable Products – A study
with reference to Marathwada region, Indian Journal of Marketing,
November 2002, pp. 6-9.
18.Madhavi C., “Managing customer relationship”, Indian Journal of
Marketing, Vol. XXXVIII, March 2003, pp.22.
19.Dr.SatyaSundaram I., “Television Industry: Pressure on margins,” Facts for
you, January 2003, page-9.
20.Pravin C. Srivistava, Indian Consumer Durable Industry, TV Veopar
Journal, Vol. XIX, No.2 February 2004, Page.26.
21.PreetaHemangVyas, “Managing consumer sales promotion in the durable
goods sector,” Advertising Express, June 2005, P.34.
22.Seshadri V., “Consumerism with reference to selected home appliances.”
Mittal Publications, New Delhi, 2006, P.90.
23.Indumathi V.M. Raveendran N., Sivakumar S.D., and Balaji P., “Consumer
Buying Behaviour of Processed Spice Products,” Indian Journal of
Marketing, Vol. XXXVII, No.8, August 2007.
24.Illias K., “A study of consumer behaviour towards durable products (with
specific reference to television users) in Thiruvananthapuram district in
Kerala,” January 2008, Bharathidasan University, Tiruchirappalli. Ph.D.
Thesis.

CHAPTER-III

23
 CONSUMER DURABLE GOODS – ON OVERVIEW

In the past food, clothing and housing were the main concern of
most people; many could not even afford even the sample luxury of possessing
a radio or a television set. Since then remarkable changes have occurred; goods
and services have multiplied a hundredfold. High pressure salesmanship, credit
selling and other methods of selling have replaced the method of cash payment
on delivery.

Necessities today include many products and services that our

forefathers could have never thought of. The individual is therefore faced with
problems that were non-existent in earlier years. There are complicated goods
and complicated transactions, neither of which he can fully understand. He is
also subjected to continuous and sophisticated advertising and sales methods
some of them misleading and all of them encouraging him to particular product.
It stands to reason that the person who buys them occasionally.

Household appliances refer to various devices and equipment’s

used in a household to reduce manual human labour content and to remove the
drudgery in working and to make household activities speedy, tidy and variety
of such household appliances like Mixer, Grinders, Refrigerators, Vacuum
Cleaners, Heaters, Air-Conditioners, Sewing machines, Washing machines,
Electrical gas stove and Micro ovens. To make home life enjoyable and
entertaining as well as economical, we have audio and video players, home
theatre and music system. The researcher has selected durable goods like
Refrigerators, Television, and Washing machine.

A product is a bundle of satisfactions that a consumer buys. It

represents solution to consumer problems. It is a combination of tangible and

24
intangible benefits. For example, a refrigerator is not just merely steel, plastic,
frozen gas, brand name, number of doors, etc., but also involves factors like
installation, delivery, dealer network, after sales service, etc. it also connotes
status in developing countries like India. Similar is the case with other products
like television, music System, washing machine, personal computer, etc. Thus,
want satisfying products are broadly classified under consumer durables and
non-durables. Both the categories differ kin respect of various parameters like
unit price, usage pattern and durability of the product, concerns of the
consumers and the complexity in the purchase decision process.

As such, consumer durables differ from non-durables essentially in

that the former normally are not consumed while using them, whereas the latter
are consumed in the process of usage. Consumer durables are mainly
characterized by high unit cost, ling life, and consequently low frequency of
purchase. Hence, high level of involment, mental homework proceeds in a
systematic way in the search, analysis and interpretation of information. An
intensive preparation both psychologically and emotionally is found in the
decision-making process as compared to the purchase of many non-durables
where the behavior is more impulsive in nature.

Definition of durable goods

In economic, a durable goods or hard goods is a good that does not

quickly wear out, or more specifically, one that yields utility over time rather
than being completely consumed in one use. Items like bricks could be
considered perfectly durable goods, because they should theoretically never
wear out. Highly durable goods such as refrigerator, cars, or mobile phones
usually continue to be useful for three or more years of use, so durable goods
are typically characterized by long periods between successive purchases.
Examples of consumer durable goods include cars, household goods (home

25
appliances, consumer electronics, furniture, etc.), sports equipment, firearms
and toys.

The term ‘durable appliances’ may include goods with a longer

period of use. “Durable goods are distinguished from miscellaneous goods by
having a longer, expected life-time use (roughly one year or more) though some
petty durables such as pens, torches, spectacles and walking sticks as well as
books by convention are included among durable goods”. Television sets,
Washing machine, Mixture, Grinders, Refrigerators and Pressure Cookers are
prominent home appliances normally in use in most of the urban households.

To understand the dynamics of brands Aaker provides a frame

work called equity. Brand equity refers to a “set of assets and liabilities linked
to a brand, its name and symbol that add to or subtract from the value provided
by a product or service to a firm and or to that firm’s competitors”.

Marketing strategy for consumer durables

The ultimate objective of marketing strategy is to motivate the

customer to buy a product. A marketing strategy that creates awareness, desire,
demand and ultimately effect, the sale, i.e., the psychological desire gets backed
by money-is-thereby, converted into demand and the act of buying takes place
can be called the best or suitable strategy.

Marketing is a game of warfare, when a large number of sellers and

buyers are operating in the market under conditions of perfect competitions.
This number may be limited under conditions of monopolistic / imperfect
competition from national as well as multinational giants to the cutting edge
state, for almost all products falling under the category of consumer durables
and as such decisions regarding marketing strategy prove crucial for the very
existence of business.

26
 As the present study is related to consumer response and
behavioral pattern in respect of, 1) Refrigerator, 2) washing machine, and 3)
television, specific guidelines and approaches need to be developed because of
the behavioural study conducted by the researcher. These are as following:

• Background Survey: A company desirous of launching a new

product for selling or promoting the sales of existing product either in new
market should conduct a preliminary survey of the relevant territory. The
survey should normally include a study of family background, income,
expenditure, habits and the like. The surveys also evaluate, competitive brands,
so as to enable it to formulate its own strategy.

• Creation of Product Awarencess: The first and foremost task in

planning, a marketing strategy for a consumer durable product like Refrigerator,
Washing machine, Vacuum Cleaner, Television and Computer to create the
awareness of existence of a particular brand in the market. This can be done by
means of advertisement campaigns, organization of showcases, and display
activities. What methods are to be followed will depend upon the merits of the
situations and the nature of the product to be sold.

• Creation of Desire: Having made the customer aware of the

existence of a product, in the market, it becomes necessary to create a desire in
the mind of the buyer. Some sentimental appeal to the psyche of the customer
is needed for the purpose. This can be effected way of proper training. Sales
persons should visit the customers from home to home.

• Creation of Demand: A desire needs to be converted into demand.

This can happen only if desire is backed by money. At this point, for the
marketing strategy to be effective it can be equipped and supported with some
financial schemes. Majority of the respondents covered by the present study are

27
in a state of transition from traditional to modern lifestyles. Often they are
aware of the product, they desire it buy they lack financial support. If some
financial scheme is made available, marketing strategy for consumer durables
will be more effective.

• Competitive outlook: as a part of the marketing strategy, it is also

necessary to impress upon the prospective buyer, reasons why he should buy a
particular product only and not one of the competitive brands. Here, the
qualitative aspect and price competitiveness should be impressed upon the
buyer.

• Creation of Glamour: Marketing strategy for consumer durables

must be able to create some attractions and glamour for the product. The buyer
in a rural area has inclination towards modernization and therefor, socio-
analytic factor, which appeals to dignity, prestige and ego, is found to be
effective. Therefore, effective marketing strategy in question should create such
socio- analytic images.

Criteria for evaluation for buying durable goods

Price

In poor countries like India often alternative evaluation is done on

price consideration which one can afford. For instance, in case of detergent,
house or a car, first consumer decides the range which is in his reach or
affordability or his willingness to spend upon a product. Then he examines
those brands which are within his range. Many companies succeed because of
low price. Japan after Second World War captured many markets in different
countries because of low price. Now China is applying the same tactics for
capturing the markets all around the world.

28
Brand

In most of the markets for each product, a number of brands are

available for almost any product including rice, wheat flour , tea, coffee,
vegetables, pickles, mobile, to mention a few. The consumers give due
weightage to brand reputation aspects and feel that a product which has higher
market share than others is rated high in choice making by a consumer, be it an
FMCG, consumer durables, services or others. Therefore, marketers are always
on alert to increase the market share.

Attributes

Different products have different attributes like taste, flavor,

fragrance, durability, performance and so on. In case of products like basmati
rice, tea, toothpaste and cosmetics brand is a very important factor. But in India
many unbranded products are sold largely on price consideration, especially in
rural markets. But their colour, small, quality, shape are also considered.

Experience

The prior experience about a product or service is an important

factor to use it again or to use it. If one has good experience on one product, he
may not consider other brand and most likely will purchase it again unless
better products have been introduced in the market and consumer feels better
than tried product or service.

Familiarity

The familiarity about a product depends on a considerable extent

on the advertisement, friends, relatives and family members. In evaluation the

29
consumer considers only those brands which are known to him which is
different from those in his personal experience.

Trade-off

There are positive and negative aspects about a product or service.

The consumer will select that product which has more positive points than
negative points. He, in other words, trades off negative aspects with positive
aspects and product must have net positive to be considered for purchase.

Number of alternatives to be considered

At present in India for the products and many services there are a
number of alternatives with the exception of railways and electricity and to a
certain extent communication services. It is not possible for an average
consumer to consider all of them before making a choice. Therefore, he decides
to restrict his choice to a few models/brands. Normally average consumers
restrict his choice to three or four to a maximum five brands.

Advertisement

The consumer has to be only aware but families about a product so

that it may be included for alternate consideration. This important job is done
by advertisements. Consumers of certain products feel that advertised products
are better and they discard those products which are not advertised frequently.
Some consumers feel that heavily advertised products are better than less
advertised products.

Accessibility

Accessibility is an important criterion for certain products and

services. For example, one will buy sweets from a nearby shop specially when
there is some unexpected guest even if quality is inferior. Similarly for

30
provisions one looks to nearby shops but some shops have started making
supplies of order given on telephone at home but this service could not
overcome the problem of accessibility, for those consumers who buy only after
seeing the product.

Memory

The memory of a consumer is a store of information, experience,

quality, price and many evaluations are memory based. Those factors which
catch consumer’s eyes are memory factors and decisions of choice are made on
the basis of impressions about various alternative products. But often memory
of majority of consumers is short which is called working memory, only very
limited number of consumers have sharp and long memory.

Objective of purchase

Some products and services can buy by different consumers with

different objective. Some products are purchased for utility and some others for
show or status. If one is throwing a party on the occasion of daughter’s
marriage one will serve the best possible foods and drinks. But on some other
occasion the same consumer will he can easily afford.

Quality

The quality is an important factor in deciding to buy a particular

brand or not. In case of industrial machinery and raw materials and kin case of
consumer durables quality is an important selecting criterion. The same is true
for hospitals and many other services in order that consumer gets the right
quality and are not cheated. Various countries have laid down standards for
quality. In India, BIS has fixed standards.

Beliefs

31
 Beliefs are subjective evaluations which have been formed
overtimes based on culture, experience, religion region. If consumer believes
that ‘A’ shop is good for grocery, ‘B’ restaurant is good for lunch or dinner, ‘C’
picture hall is good for watching movies, and he will use this belief for purchase
or utilizing the services. If someone believes that foreign brands are better than
domestic brands he will buy them only. This criterion plays an important role
in India. Hence the marketer constantly makes consumers believe that this
product is the best.

Performance

The consumer wants to evaluate how a performs, be it a consumer

durable or service. If in his judgment out of ten alternatives, product X has a
reputation for performance, he will like to buy that product even if the price is
higher. The evaluation is based on information with the consumers and his
relatives and friends experience. This information is also collected from survey
reports and other sources.

Consistency

The consumer prefers to purchase only the brands which remain

constantly good in quality and do not reduce the quality with the passage of
time. Therefore certain producers have maintained same quality to be supplied
consistently. But in spite of this fact, many Indian producers do not maintain
consistency and they suffer.

Features

The consumers are also attracted by special features of a products,

whether it is ready-to-eat food, insurance policy or durables. As special features

32
don influence the purchase, it is necessary to introduce them but consumer
judges to what extent these claims are true.

Tail

In case of daily use products like soaps, detergents, shampoos, tea,

pickles, pan masala and many other consumable, the consumers may buy a
product for trial. In order to help consumers in this regard, companies have
introduced small trial packs. If consumer likes a product on trial, he becomes
the permanent customer. It is often thought that trial is possible only in the case
of FMCG but no one can have trial drive for automobiles and after trial if he is
satisfied he can decide to buy their products some companies also provides free
sample trial sand some hold free trial stalls in certain events. For instance-
Nescafe Coffee. The above is only illustrative list of criteria which a consumer
may decide to consider evaluating a product or services.

Refrigerator

In days gone by fruits, milk, vegetables and meat were available

for purchase fresh and every household had the necessary time and patience to
purchase them for daily use as they were fast moving world such leisurely
purchase is not possible and purchase.

Also modern science has brought about revolutionary changes in

the preservation of freshness and usability of even perishable items like milk
and fruits. Modern refrigerator and deep-freeze facilities have made the market
for even perishable international and extended main self-life over a longtime
span.

Refrigerators are now available with various manufacturers with

many new facilities in different capacities and models at affordable prices.
Easy payment schemes are also available; prompt after sales services are

33
provided. So, Refrigerators are now popular even among rural rich and middle
class householders to preserve prepared food not consumed immediately. The
refrigerator demand for peaks at two distinct periods during the year i.e., just
before the summer season and during the festival season are is the lowest during
the monsoon season. The key sales drivers are image, after sales service,
promotion (price and warranty period), features and aesthetics. The major
players in the Indian market are Godrej-GE, Whirlpool, (formerly Kelvinator of
India), Voltas, Videocon International, BPL, Electrolux, LG and Samsung.
Among them Godrej, Kelvinator and Allwyn were very popular brand earlier as
they enjoyed and undisputed market standing for well over 30 years, BPL,
Videocon, Whirlpool, LG, Electrolux and Samsung comparatively though, are
making waves in the market with innovative features and packages.

Washing machine

The washing machine, which had made its appearance in India

during the second half of the 80’s, has emerged as another important domestic
appliance in every homes. This is onhe product which contrary to the
expectations of marketing pundits has gained quick acceptance by the Indian
housewives. To start with, relying on gut feeling Videocon went ahead with the
launch of semi-automatic washing machine in 1989. The washing machine
market witnessed spectacular growth during 1990-2000. By 1994-95 nearly
three million households had one, and some 5.5 lakh families were changing the
existing old one with a new one. Thanks to technological advancement, a lot of
product up gradation has taken place in that the earlier versions of manual and
semi-automation machines gave way to automatic machine with dryer facilities.

In recent years, in almost all magazines and TV programs, washing

machines a are regularly advertised. Established companies such as Videocon,

34
BPL, LG, Samsung, IFB, TVS, Whirlpool, Washotex and Godrej. There was a
period in history when washing machine run on gasoline engines and had to be
kick started, occasionally causing grievous injuries to the used. In the twentieth
century, technology improved by leaps and bounds, consigning these dangerous
machines to the museums. The quality of the wash provided is a necessary
aspect, which all leading manufacturers advertise relish. There are several
washing programs available for the used, all of which can be set to their
convenient. The market is generally segmented on the basi8s of the type of
washing programs available for the used, all lof which can be set to their
convenient. The market is generally segmented on the basis of the type of
washing machines ranging from a minimum of 3kg to 6kg. The major factors
are pri8ce, model brand and technology and features available.

Television

In present day television has nationalized entertainment. Some

twenty years ago if people wanted any entertainment they had to go out of their
houses to cinema halls or auditoriums to view films, drams or to hear music
recitals. This was not possible for all household as it involved much
expenditure not only on particular entertainment but also the extra cost of
transport and food. Taking children out was another problem.

CHAPTER – IV

DATA ANALYSIS&INTERPRETATION

Table – 4.1

35
 Gender No. of Respondents Percentage
Male 29 49.00
Female 31 51.00
Trans Gender 0 0
Total 60 100
Sources: Primary data

From the above table it is clear that, out of 60 respondents, 51.00

per cent are female and 49.00 per cent are male respondents.

Hence the majority of the respondents are Female.

Chart – 4.1 Sex of the respondents

Percentage

60 51
49

50

40 Percentage

30

20

10
0
0
Male Female Trans Gender

Table – 4.2 Age of respondents

Age No. of respondents Percentage

Up to 25 Yrs 15 25.00
26-35 yrs 13 21.67

36
 36-45 yrs 15 25.00
Above 46 yrs 17 28.33
Total 60 100

Sources: Primary data

From the above table it is clear that, 28.33 per cent of the respondents
are in the age group of above 46 years, 25.00 per cent of the respondents belong
to the age group of 36 – 45 years, 21.67 per cent of the respondents belong to
the age group of 26-35 years.Hence the majority of the respondents belong to
the age group of above 46 years

Chart – 4.2 Age of respondents

37
 Percentage

25
28.33
Up to 25 Yrs
26-35 yrs
36-45 yrs
Above 46 yrs

21.67
25

Table – 4.3 Educational qualification of the respondents

Age No. of respondents Percentage

School level 31 52.00

Under graduate 11 18.00

Post graduate 13 22.00

Others 5 8.00
Total 60 100

Sources: Primary data

The above table shows that, 52.00 per cent of the respondents are under
school level, 22.00 per cent of the respondents are under post graduate level,
18.00 per cent of the respondents are under graduate level, and 8.00 per cent of
the respondents are other category

Chart– 4.3

38
 Educational qualification of the respondents

Percentage

60 52

50

40
Percentage

30 22
18
20
8
10

0
School level Under graduate Post graduate Others

Table – 4.4

Occupational status of the respondents

Status No. of respondents Percentage

Government 10 17.00

Government Aided 2 3.00

Private 15 25.00

House wife 19 32.00

Professional 11 18.00

Others 3 5.00

Total 60 100

Sources: Primary data

39
 From the above table shows that 32.00 per cent of the respondents are
house wife, 25.00 per cent of the respondents are private, 18.00 per cent of the
respondents are professional, 17.00 per cent of the respondents are government,
3.00 per cent of the respondents are government aided, and 5 per cent of the
respondents are others.

Hence the majority of the respondents are house wife.

Chart – 4.4 Occupational status of the respondents

Percentage

5
17 Government
18 Government Aided
3 Private
House wife
Professional
Others
25
32

40
Table – 4.5 Marital status of the respondents

Marital status No. of respondents Percentage

Married 45 75.00
Un married 15 25.00
Total 60 100

Sources: Primary data

From the above table it is clear that, 75.00 per cent of the respondents are
married, and 25.00 per cent of the respondents are unmarried.

Hence the majority of the respondents are married.

Chart – 4.5 Marital status of the respondent

Percentage

25
Un married
Percentage

75
Married

0 10 20 30 40 50 60 70 80

Table 4.6 Family size of the respondents

41
 No. of
Family size Percentage
respondents
1-3 12 20.00
4-6 45 75.00
7-9 3 5.00
Total 60 100

Sources: Primary data

From the above table it is clear that, 75.00 per cent of the respondents
belong to the family size of 4-6, 20.00 per cent of the respondents belong to the
family size of 1-3, and 5.00 per cent of the respondents belong to the family size
of 7-9.

Hence majority of the respondents belong to the family size of 4-6

Chart - 4.6 Family size of the respondents

Percentage
75
80

70

60

50 Percentage

40
20
30

20
5
10

0
Below 3 4 to 6 7 to 9

Table – 4.7 Income level of the respondents

42
 Monthly Income No of respondents Percentage

less 15000 22 36.67

16000-20000 21 35.00
21000-25000 9 15.00
above 26000 8 13.33
Total 60 100

Sources: Primary data

From the above table it is clear that, 36.67 per cent of the respondents are
earning below Rs.15,000 while 35.00 per cent of the respondents earn between
Rs.16,000-20,000, 15.00 per cent of respondents earn between Rs.21,000-
25,000, and 13.33 per cent of the respondents are earning above Rs.26,000.

Hence the majority of the respondents are earning below Rs.15,000.

Chart – 4.7 Income level of the respondents

43
 Percentage

13.33
less 15000
36.67 16000-20000
15 21000-25000
above 26000

35

Table – 4.8 Sources of Information

Sources of
No. of respondents Percentage
Information
Family member 15 25.00
Friends and relatives 12 20.00
Dealer information 7 11.67
Advertisement 22 36.67
Other sources 4 6.67
Total 60 100

Sources: Primary data

From the above table it is clear that, 22.00 per cent of the respondents got
information from advertisement, 15.00 per cent of the respondents got
information from through family members, 12.00 per cent of the respondents
got information from through friends and relatives, 7.00 per cent of the

44
respondents got information from dealer information, and 4.00 per cent of the
respondents got information from other sources.

Hence the majority of the respondents got information from

Advertisement.

Chart – 4.8 Sources of Information

Percentage

6.67
Family member
25 Friends and relatives
Dealer information
Advertisement
36.67
Other

20

11.67

45
 Table 4.9

Media awareness by the respondents

Media No. of respondents Percentage

TV 12 54.55
Magazine 4 18.18
news paper 2 9.09
Radio 2 9.09
Other 2 9.09
Total 22 100
Sources: Primary data

From the above table it is clear that, 54.55 per cent of the respondents got
the product awareness through television, as television has become the most
popular media of human kind. It is also the indispensable device in our daily
life. 18.18 per cent of the respondents got awareness through magazine, 9.09
per cent of the respondents got awareness through newspaper, radio and others.

Hence the majority of the respondents got the product awareness through
Television.

46
 Chart - 4.9 Media awareness by the respondents

Percentage
60 54.55

50

40
Percentage
30
18.18
20
9.09 9.09 9.09
10

0
TV Magazine news paper Radio Other

Table 4.10 Reason for the use of durable goods

Reasons for the Uses of

No. of respondents Percentage
durable goods

Convenience 24 40.00
Status symbol 9 15.00
Time saving 13 21.67
To reduce physical strain 14 23.33
Total 60 100

Sources: Primary data

47
 From the above table it is clear that, 40.00 per cent of the respondents
uses durable goods for the purpose convenience, 23.33 per cent of the
respondents uses for to reduce physical strain, 21.67 per cent of the respondents
uses for time saving, 15.00 per cent of the respondents uses for status symbol.

Hence the majority of the respondents uses the durable goods for the
convenience purpose.

Chart - 4.10

Reason for the use of durable goods

Percentage

23.33 Convenience
Status symbol
40 Time saving
To reduce physical strain

21.67

15

48
 CHAPTER-V

FINDINGS, SUGGESTIONS AND CONCLUSION

Findings

 Out of 60 sample respondents selected for the study, majority

(51 per cent) of the respondents are female.
 Majority (28.33 per cent) of the respondents belong to the age group
above 46 years.
 Majority (52 per cent) of the sample respondents come under school
level.
 Regarding the possession of consumer durable goods according to
occupation. (32 per cent) of the respondents are house wife.
 It is found that, majority of (75 per cent) of the respondents are married.
 Majority (75 per cent) of the respondents belong to the family size of 4-6
members.
 Majority (36.67 per cent) of the respondents receiving less than
Rs.15,000 Income level.
 Majority (36 per cent) of the respondents prefer whirlpool refrigerator
because, whirlpool refrigerators possessed many features, that is standard
interior lighting and crisper drawers as well as ice makers and water
dispenserswhirlpool does well in offering numerous models for
household use.
 Majority (53.33 per cent) of the respondents prefer Whirlpool washing
machine, because it saves from unexpected high repair cost, easy
available of spare parts, transferable facility, convenience assured and
unlimited service.

49
Suggestions

Suggestions – to the consumers

1. Before going for buying, the purchasers can decide about needed commodity
with the help of expert’s knowledge.
2. Consumer should be aware of the new products introduced in the market and
compare the product with its features, prices, quality and the number of
shops available to have the product.
3. They should be capable of identifying duplicated products and should avoid
purchasing unnecessary items. Purchase is to be made on the basis of the
quality, income and according to the budget.
4. Consumer must know the popular shop which sells the standard products at
reasonable prices with excellent service. They should give importance to the
date of manufacturing, ISI marks, the brand choice and other details.
5. They should bargain and clarify their doubts about the brand of product,
before buying proper planning is essential that is credit facilities discounts
available etc.,

Suggestions – to the manufacturers

1. Durable product manufactures should focus their attention on the sources of

information from where the consumers get information about the products
namely refrigerator, washing machine and television, and promote their
products through these sources.
2. The exclusive dealers whose products are not so popular will have to find
out the reasons why their brands are not preferred by the customers as much
as their competitor’s products and try to improve their product that suit the
requirements of their customers.
50
Conclusion

Hence in this digital world, durable goods are no longer a luxury item.
The marketer should see that consumer durables are made available at various
outlets for the consumers. Understanding consumer behavior is a vital aspect of
marketing. Marketers need to understand the role of involvement and habit,
information processing and the concept of life values in consumer behavior as
well as cultural determinants. Marketers should also try to establish suitable
channels of distribution to help consumers to purchase products with least
effort.

The market for consumer durables is becoming more competitive now a

day. Therefore, the producer of durable products should understand consumer
interest much to find higher sale of their products. The study concludes that the
competitive market provides opportunity on one hand and threats on the other
hand to both consumer and the producer, it is quite important to improve core
products with value addition to enrich customer satisfaction more in the similar
price range. The appliances like refrigerator, TV, and washing were once
considered as life purchase but now people become more open to the idea of
exchanging their old appliances for new ones.

51
BIBLIOGRAPHY

Books

1. Goderage S.P., Marketing of Consumer Durables, in marketing

Management & Indian economy, edi. S. Neelamegam, New Delhi: Vikas
Publish House Private Ltd., 1975.
2. Gupta, C.B and Dr.Rajan Nair N. Marketing Management, Sultan Chand
and sons, New Delhi.
3. Gupta, Pal S.L., and Sumitra. Consumer Behavior-an Indian Perspective,
Text and cases, Sultan Chand and sons, New Delhi, 2001.
4. Jain, P.C., Monika Bhatt, Consumer Behavior in Indian Context, S.
Chand & Company Ltd., New Delhi, 2003.
5. Kotler, Philip, Marketing Management-analysis, Planning,
Implementation and Control, Prentice Hall of India Pvt. Ltd., New Delhi,
1994.
6. Philip Kotler, Marketing Management, North Western University,
Prentice Hall of India private limited, New Delhi, 1999.
7. R.S.N. PillaBhavathi Modern Marketing S. Chand & Company ltd., New
Delhi.
8. Dr. P. Ravilochanan Marketing Research Margham Publications,
Chennai, 2006.
9. Seshadri V. Consumerism with reference to selected home appliances,
Mittal Publications, New Delhi, 2006.
10.Suja R. Nair, Consumer Behaviour (Text and Cases), Himalaya
Publishing House, Mumbai, 1999.

52
Journals

1. Business Line, Feb. 12, 2002

2. Mallikarjuna K ‘Consumer behavior towards durable products a
studywith reference Marathwada region’, Indian journal of
marketing,Vol.XXXII. August 2002.
3. Pickering J., “The durable purchasing behavior of the individual
household”, European Journal of Marketing, Vol.12, Issue 2, 1978.
4. VenkataramaRaju, D. Saravanan, S. “A study on Consumer Behaviour
in the marketing of a house hold appliance in Chennai city of Tamil
Nadu state”, Indian Journal of Marketing, Vol. XXXV, No.3, March
2005.

Websites

1. http://aut. Researchgateway.ac.nz
2. http://en.wikipedia.org/wiki/Tiruchirapalli
3. http://www.britannica.com/bps/additional content/18/37808712/A-
Strategic-Household-Purchase-Consumer-House-Buying-Behavior.
4. http://www.investorwords.com/1600/durable-goods.html
5. http://www.learnmarketing.net/consumer.htm
6. http://www.wisegeek.com/what-are-consumer-durables.htm

53
 ASTUDY ON CONSUMER BEHAVIOUR TOWARDS
DURABLE GOODS IN TIRUCHIRAPPALLI

QUESTIONARIE

1. Name of the respondent

2. Address
3. Gender a) Male b) Female c) Trans Gender
4. Age
a) Up to 25 b) 26 – 35 c) 36 – 45

d)Above 46

5. Educational qualification
a) School level b) Under graduate
b) Post graduate d) Others
6. Occupation
a)Government b) Govt. Aided c) House wife
d) Private e) Professional f) Others

7. Marital status

a) Married b) Un married c) Others

8. Family size

a) 1 – 3 b) 4 – 6 c) 7 -9 d) Above 10 members

9. Monthly income

a) Less than Rs.15000 b) Rs.16000 – Rs.20000

c) Rs.21000 – Rs.25000 c) Above Rs.26000

54
10. Do you possess durable goods?

a) Refrigerator b)Washing machine c) Television

11. Which brands do you possess?

Refrigerator Washing machine Television

12. State the capacity of your brand?

Refrigerator Washing machine Television

(liters) (k.g) (inches)

13. How did you become aware of the above brand?

a) Through family members b) Friends & relatives

c) Dealer information d) Advertisement e) Others

14. If advertisement, specify the media?

a) Television b) Magazine c) News paper

d) Radio e) Others

55
15. Which factor influenced you to purchase a particular brand?

Attributes Refrigerator Washing Television

machine

16. Who is the decision maker of purchasing durable goods?

a) Self b) Husband

b) Wife d) Parent e) Others

17. Mode of purchase?

Mode Refrigerator Washing machine Television

Cash
Instalment
Credit card
Other

56