...& Strategy,July-Dec.2010 Vol.1No.1 CONSUMER PURCHASE OF CONSUMER DURABLES: A FACTORIAL STUDY Hitesh D. Vyas,Ph.D., Bhavnagar University,India ABSTRACT “Many things that were considered as luxuries till about ten years ago have become necessities for most people today.” And in case of household goods consumption it has happened also, as scooter were luxury at once becomes necessity now. The present study is focused on a study of important factors and sources of information in purchase of consumer durables. This is an exploratory study using primary data collected through purposive sampling method with an adequate sample size of 100 household respondents of Bhavnagar city. It reveals that Company or Brand Name, guarantee / warrantee, Price, and After Sales Service are the important factors in purchase of durables. While, sources of important information authorized dealers’ shop, technical expert advice, role of TV as media and influence of friends, relatives and neighbors found important in purchase of durables by respondents. Keywords: Consumer Behaviour, Durable Products, Important Factors, Sources of Information, Buying Decisions. INTRODUCTION Marketing is seen as the whole business from the point of view of its final result, that is, from the customer’s point of view (Peter Drucker, 1986). The consumer is king in age of consumerism (McGuire, 2000). The term consumer behaviour defines as, state “the behaviour of consumers in deciding to buy or use or not to buy or...
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...The Consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. Instruments such as kitchen appliances (microwave ovens, grinders etc) are also included in this category. This industry includes all those goods which are durable i.e. products whose life expectancy is at least 3 years. These products are hard goods that cannot be used up at once. According to recent industry reports, the steadily growing market for consumer durables is estimated at Rs. 300 billion. Segmentation of the Consumer Durables Industry: The consumer durables industry can be broadly classified into 2 segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods. The key product lines under each segment are as follows: Titan, the market leader in watches and branded jewelry, has clocked the highest Net Sales CAGR of 34% over the last 6 years. It has thecompetitive advantage of a strong brand, which has helped it become the market leader. Using the right segmentation & smart branding strategies, Titan has successfully captured the watch and jewelry market. It has also managed to maintain a good Net Profit Margin of 6% TTK Prestige, the market leader in pressure cookers and kitchen solutions, has registered the highest CAGR of 74% in Net Profit over a 6-year period. 1) Rise in Disposable Income: The demand for consumer durables...
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...CONSUMER DURABLES December 2008 www.ibef.org CO N S U M E R D U R A B L E S December 2008 The Indian Consumer Durables Industry can be segmented into three key groups Consumer Durables White Goods • Refrigerators • Washing Machines • Air Conditioners • Speakers and Audio Equipments www.ibef.org CO N S U M E R D U R A B L E S December 2008 The Indian Consumer Durables Industry can be segmented into three key groups Consumer Durables Kitchen Appliances/Brown Goods • Mixers • Grinders • Microwave Ovens • Iron • Electric Fans • Cooking Range • Chimneys www.ibef.org CO N S U M E R D U R A B L E S December 2008 The Indian Consumer Durables Industry can be segmented into three key groups Consumer Durables Consumer Electronics • Mobile Phones • Televisions • MP3 Players • DVD Players • VCD Players www.ibef.org CO N S U M E R D U R A B L E S December 2008 Several key trends are driving growth in the sector Income growth and availability of financing • Disposable income levels are rising and consumer financing has become easier Increased affordability of products • Advanced technology and increasing competition are narrowing the price gap and the once expensive appliances are becoming cheaper Increasing share of organised retail • Urban and rural market are growing at the annual rates of seven per cent to 10 per cent and 25 per cent respectively with organised retail expected to garner about 15 per cent share by 2015 from the...
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...APPENDICES LIST OF TABLES Table No. 1 2 Title General information of selected samples of different landholdings Place of purchase of food items by farm families of different landholdings Frequency and mode of purchase of food items by farm families of different landholdings Place of purchase of clothing by farm families of different landholdings Frequency and mode of purchase of clothing by farm families of different landholdings Mode of purchase of consumer durables by farm families of different landholdings Rank matrix of common top factors considered for purchasing of food, clothing and consumer durables Rank matrix of common top problems faced for purchasing of food, clothing and consumer durables Coping up practices to solve problems faced by the selected landholding families while purchasing food, clothing and consumer durables Percentage distribution of coping up practices by the selected samples while buying food, clothing and consumer durables Source of information for purchasing of consumable goods and consumer durables for farm...
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...PROJECT REPORT ON “THE CHANGING INDIAN CONSUMER DURABLES INDUSTRY-AN OUTLOOK” SUBMITTED TO: Prof. Samarendra Mahapatra SUBMITTED BY: Roshan Kanoo (08DM076) INSTITUTE OF MANAGEMENT AND INFORMATION SCIENCE BHUBANESWAR 1|Page ACKNOWLEDGEMENT This report is an outcome of mutual support and guidance of many persons towards whom I am indebted. I express my profound reverence and heartfelt gratitude to Prof. S.Mahapatra who suggested me proper guidelines towards the project and for his unconditional co-operation and kind support in preparing the report and doing the activities required for the same. 2|Page TABLE OF CONTENTS SL. NO. 1 1.1 1.2 2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.3 4 4.1 4.2 5 5.1 5.2 5.3 6 6.1 6.2 6.3 7 8 HEADINGS OVERVIEW Key Growth Drivers for Consumer Durables Major Hurdles and Challenges INDUSTRY ANALYSIS Industry Classification Success in the Industry would depend on the following factors Profiles of Key Consumer Durable players Opportunities and Challenges CONSUMER ANALYSIS Consumer Classes Changing Attitude of Today’s Customers Marketer’s Response to Consumer Attitude MARKET ANALYSIS Consumer Electronics Household Appliances PRODUCT ANALYSIS Television Consumer Electronics Market in India – CTV CTV Industry Post Liberalisation COMPETITION ANALYSIS Competition Overview India as an Emerging Force in Television Market Market Measurement and Forecasting THE ROAD AHEAD CONCLUSION PAGE NO. 4 4 5 6 6 7 7 10 11 11 12 13 14 14 15 16 16 18 18 20 20...
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...Ghalla Bhansali Stock Brokers Pvt. Ltd. 21st April, 2010 Consumer Durables The Indian consumer durables industry has witnessed a considerable change in the past couple of years. Changing lifestyle, higher disposable income coupled with greater affordability and a surge in advertising has been instrumental in bringing about a sea change in the consumer behavior pattern. This industry consists of durable goods used for domestic purposes such as televisions, washing machines, refrigerators, microwave ovens, mobile phones etc. The growth in the consumer durables sector has been driven primarily by factors such as the boom in the real estate & housing industry, higher disposable income, emergence of the retail industry in a big way coupled with rising affluence levels of a considerable section of the population. As per a survey conducted by FICCI on the Indian consumer durables industry, a shift in consumer preferences towards higher‐end, technologically advanced branded products has been quite discernable. This shift can be explained by narrowing differentials between the prices of branded and unbranded products added with the high quality of after sales service provided by the branded players. The shift has also been triggered by the availability of foreign branded products in India owing to lower import duties coupled with other liberal measures as introduced by the government...
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...PROJECT REPORT ON FACTORS AFFECTING CONSUMER PURCHASE INTENTION TOWARDS CONSUMER DURABLES (A COMPERATIVE STUDY OF LG & VIDECON) UNDER GUIDANCE Prof. S.k.Chadha In the partial fulfillment of the requirements of the Final Project for the degree of Masters in Business Administration Submitted By Navdeep MBA International Business University Business School Panjab University, Chandigarh ACKNOWLEDGEMENT I am overwhelmed with pleasure and deep sense of gratitude towards University Business School, Chandigarh for giving me such an opportunity to do the research project which has opened my vision towards rich experience of the theory implications and practical applications studied in the MBA course. I express a heartfelt thanks to my guide Prof. S.K.Chadha who has helped me in choosing and doing this...
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...PROJECT ON STRATEGIC MANAGEMENT – 1 THE CONSUMER DURABLES INDUSTRY 9/3/2010 KRISHNAN. K (09FT-122) SANCHIT GUPTA (09FT-133) SAUMYA SHARMA (09FT-139) SURESH HARI (09FT-157) TRIPURAJ SINGH (09FT-164) ABHIRAM V (09FT-178) EXECUTIVE SUMMARY The report studies the consumer durables industry in India. The report is divided into two parts 1. The industry analysis 2. The corporate analysis INDUSTRY ANALYSIS: The report covers the following details on the consumer durables industry. * Market Value * Market Segmentation * Macroeconomic indicators * Competitive forces * Market forecast * Competition * Key drivers * Challenges CORPORATE ANALYSIS The company that has been analysed is Samsung Electronics. Samsung electronics is the flagship subsidiary of the Samsung group. The reason we chose Samsung is that it is also conglomerate similar to AVG group with diversified interests in manufacturing, shipping, petrochemicals and financial services. The company has been able to venture successfully in alien businesses and soon become a major player in the industry. Since its entry in India in 2002, there has been no looking back for the company. It has grown from strength to strength. It is now one of the largest companies in consumer electronics and is also among the most profitable ones. It is now the leader in the TV market and is among the top three in most of the consumer durables segment. It has eight subsidiaries...
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...was selling to was the one on the go. With his innovative zip lock resealable bag it appealed to a new market, which would put this snacks to go in the Market development. It can also be used as a penetration to the existing customers who previously enjoyed nuts but now can enjoy the convenience of the snacks in a busy setting. 3. Their study revealed, “that most consumers who preferred resealable packaging would switch brands and pay more for the food protection, convenience, and freshness that resealable packaging offered.” In their case, over half of the their respondents preferred nuts in a resealable packaging, and for those who ate nuts more often, most “believed that it was important to preserve the freshness of the food, to keep it from drying out and becoming stale, and that the package should be easy to open and close.” From that information provided, Sathers’ commissioned a nationally recognized marketing research firm to conduct focus groups and personal interviews, this would provide them with greater depth on usage patterns. (Conducted in Chicago, 1994) They were interested in how consumers (who qualified for the focus...
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...perspective, e-commerce is the ability to deliver products, services, information, or payments via networks such as the Internet and the World Wide Web. 2. From an interface perspective, e-commerce involves various information and transaction exchanges: business-to-business, business-to-consumer, consumer-to-consumer. 3. From a business perspective, e-commerce includes activities that directly support commerce electronically by means of networked connections. 4. From an online perspective, e-commerce is an electronic environment that makes it possible to buy and sell products, services, and information on the Internet. 5. From a structural perspective, e-commerce involves various media: data, text, web pages, Internet telephony, and internet desktop video. 6. As a market, e-commerce is a worldwide network. A local store can open a Web storefront and find the world at its doorstep-customers, suppliers, competitors, and payment services. E-business: Connecting critical business systems and constituencies directly via the Internet, Extranets, and Intranets. It goes beyond a web site on the Internet to affect all aspects of business, from strategy and process to trading partners and the ultimate consumer. It combines the resources of traditional information systems with the global reach of the Web. E-business enables organizations to accomplish the following goals: 1. Reach new markets. 2. Create new products and services. 3. Build customer...
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...Human Resource Roles and Responsibilities Human resource roles and responsibilities are changing because business trends are changing. Technology, e-business, ethics, and globalization are changing the way companies do business and therefore, the human resource management need to make changes to keep up with the new trends. Globalization and Technology During the past century companies have made changes to the way human resource department’s run. Many companies created jobs overseas, which slowed down the hiring in the United States (Noe, R., Hollenbeck, J., Gerhart, B. & Wright, P., 2004). Companies are finding to survive they must compete in international markets and fend off their competitors. Companies are also outsourcing and offshoring the workload in order to compete and pay employees lower pay. Technology is constantly advancing forward. In today’s business world technology is changing rapidly and human resource department find they need to move with it. These days few companies use paper for job applications now businesses rely on the internet which combines data from several sources into a single site. Shared service centers consolidate different human resource functions into a single location (Noe, et al, 2004). Diversity and E-Business Diversity in the U.S. labor force is growing in racial, ethnic, and gender terms. Many U.S. companies have already committed themselves to ensuring they recognize the diversity of their internal labor force and use it to gain...
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...H-E-B grocery store https://www.heb.com/ fits the category of a non – news organization that utilizes social media feeds alongside traditional media feeds. Mixed media is the best way to describe H-E-B online communication (i.e. identified as a mixture of owned media, paid media shared/social media and earned media). The organization has its own website (owned media pg. 175) that allows the company to have control over information disseminated out to both its internal and external publics (pg. 118). When it comes to paid media (pg. 176), H-E-B paid to have control over 60 seconds of air time during the 2018 super bowl. Its commercial in this case demonstrated corporate advertising (pg. 176) as it promoted its annual contest Quest for Texas...
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...Joshua Tollison Phase 4 Individual Project MGM310-1204B-01 Bari Courts 23 December 2012 If I were to start an e-business the main thing I would focus on would be functionality of the site and ease to make customers feel comfortable and confident about shopping with my storefront. By this I mean designing a site that gives customers several options for the products they are shopping for; along with that my customers would have access to multiple pictures of every product available, and a detailed description of the item they are interested in. My customers would also be able to compare similar items by their available options and provide a side by side analysis. The main thing for my e-business though would be the superior customer service that is provided to my clients by means of email, live chat, and a customer service hotline if you would prefer to talk to a representative. One of the final details that would make my site superior to others would be a hassle free return policy that even included return shipping for those who need to return their products for any reason. To be able to make this dream come true there are several other factors that I will be discussing throughout this paper as I present my business plan for establishing my storefront. I. E-Commerce Infrastructure Just as brick and mortar companies have an infrastructure to help them succeed in business, so do e-businesses. By having the correct infrastructure in place allows a company to run...
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...in technology and way of life. One of the most significant forces driving this development is the ability to record and deliver information across distances and at rates expanding exponentially. This is also referred to as the information age. Digital technology has changed the economy. The new terminology being used is e-marketing where the primary source of value creation for consumers has shifted from physical goods to services and information. This does not mean that everything we previously knew about business becomes irrelevant and obsolete, but it does mean that significant changes in business environment justify new approaches to thinking of the best marketing strategy and management. In summary E-commerce can be defined as an exchange of goods and services between parties, individuals and organizations as well as the electronically based intra and inter organizational activities that facilitate such exchanges.(Dave.C.,2007,p,4) There are four categories of E-commerce:- a) Business to business b) Business to consumer c) Consumer to business d) Consumer to consumer Most business still carries out the traditional ways of conducting business. This is by having a physical address where they have their products and services and translations are made there. Due to the new dot com community and ways of doing business many businesses have taken up the opportunity of conducting business online. This is because of the benefits brought about by...
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...1. Introduction Electronic commerce has become an attractive market to the world, and the emerging business opportunities are now becoming a major factor in world economics. Although, investment through e-commerce channels returns high profits, but like many IT systems, it could lead business organizations to a risky situation or failing to deliver expected returns. The main cause of this is the inconsistency between the system design and the desired requirements or for the misunderstanding between IT professionals and business experts. Therefore, to design e-commerce system, a communication pattern is needed either between system developers and business owner, or between customers and the online business system. Moreover, e-commerce system should be adapted with the whole business environment such as business norms and behavior, customer practice, business rules and government policy. However, Semiotic that is ‘the science of signs’ has brought many approaches to facilitate the process of understand signs’ meaning. The approach of organizational semiotic defied the organization as a group of social norms and emphasizes on the people and their role and responsibility in order to merge them when analyzing and designing information system (Stamper et al, 2004). For e-commerce systems, there is a necessity of clear meaning for each symbol, icon and image because almost all transactions done through the web system without human agent involvement. Therefore, semiotic...
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