Air Conditioner Market in India - Consumer

Buying Behaviour

the success of a product in India is not predictable as it is very difficult for market researcher to
understand the buying behavior of a consumer in India as their purchase decision is entirely different
form needs stated. For past few years due to country’s economic growth and increasing PPP( purchasing
power parity) households form middle and lower middle segment of SEC (socio-economic category) are
able to afford consumer durables like air conditioner.

Air conditioner was once considered as a mark of luxury and only upper socio-economic category
household were able to afford it. According a Euro-monitor article disposable income of Indian
households are increasing but the air-conditioning industry is increasing at even higher rate. According
to All India Air conditioning & Refrigeration Association (AIACRA) CAGR of air conditioning system is 15-
20% which is highest among all the countries.

Penetration rate of ACs are very poor in Indian household which is less that 4%. Main reasons
behind low penetration rate are low income and load-shading in smaller cities and rural areas.
ACs have reached very small numbers of households in small cities and towns on the other side
rural market is totally untapped and it would take quite a time to penetrate in rural market.

BUYING BEHAVIOR OF AC IN INDIA

Due to increasing purchasing power parity, favorable weather conditions, growing Indian
economy, me-too attitude of Indian consumers and other factors air conditioning is strengthening
its foothold in Indian market. Buyer make an informed decision as product like ACs are very
high involvement product. To understand the buying behavior of ACs in India lets understand
the needs, usage, benefits and motivation behind purchasing this product.

Needs of AC in India

Changing lifestyle: As Indian population is moving towards service sector from manufacturing
and agriculture sector, their lifestyle have changed over this transition period. Middle class
population and above are getting habituated of comfortable life and products like ACs fit right in
place in these situation.
Hot and humid climate: Average temperature of India has been increasing over years which
demands a mode to keep the heat down. Households which can’t afford ACs they use air cooler
to keep the temperature down.

Densely populated cities and pollution: Due to increasing population and industries in cities
temperature as well as pollutants in the air are increasing, which makes living difficult in the
cities. At this point need of ACs is felt strongly.

To keep the temperature of other electronic appliances down: Many industries run on heavy
software machines which increases the temperature of room. Sometime increasing heat of rooms
and appliances lead to overheating and appliances stop working.

Social Status: For Indian consumers it is really important to keep up to the society. If one
household buys some product it triggers a chain reaction of purchase in the society to prove their
capability to own a similar product.

Fresh air and lesser noise: ACs refines the air before emitting air which keeps a room fresh and
cool. On the other hand one need not open the doors and windows for fresh air which reduces
noise level in the room. Which gives a feeling of sanity in chaotic life of overcrowded cities.

Products like ACs cater to personal need and environmental wants.

Usage of AC in India

Major customers of air conditioner are commercial sectors. Almost all the offices, malls, big and
medium sized shops or market places are equipped with ACs. Apart from these commercial
sector many household have also started consuming ACs.

Penetration of ACs in Indian household in less than 4% which is very low numbers. This number
is higher in metro or tier 1 cities. Rural market is still untouched.

ACs in India are mainly used in the summer when heat and humidity is at its peak. Most of the
Indian households are cost driven. So, unless air conditions are indeed required most of the
household refrain from using it in order to save electricity bills.

Benefits from Using ACs

Middle class in India consists major chunk of population. And this SEC category is highly driven
on cost. Though disposable income of these households are increasing these households take
every possible measure to cut down the cost of running the household.
Jain et al. have showed in his research that energy labeling have very less impact on buying
behavior of consumers. Initial price and other social benefit outweighs the benefits derived from
ACs consuming lesser power.

Benefits derived from usage of AC can be manifold which have been listed below:

Social benefits: Me-too behavior and reputation in society yields major benefits for middle class
families.

Clean and clear air: ACs help in keeping air clean in the house which reduces the chances of
getting breathing diseases.

Unaffected by weather and heat: This is the final benefit derived from using this product.

Indian consumers gives more weightage to social benefits than personal benefit. And this is the
main reason behind high growth rate of ACs in Indian market.

Motivation

Motivation can be positive as well as negative. Impact of motivating factors may be long term as
well as short term.

Need is the major motivating factor behind buying ACs it can be safety, social or esteem. For
upper class it’s more of safety than social or esteem. On the other hand. Social needs and esteem
as major driving factors.

As discussed in the earlier section, these benefits play as positive motivations for buying this
product. Apart from these factors reducing prices and new and innovative technologies are also
contributing towards positive motivation. There could be negative motivating factors as well as
discussed below:

- Polluted air may lead to perilous respiratory diseases

- Foul smell and suffocating environment may lead to strain in the relations

- Inferior image in the society

Air conditioner is a high involvement product and before making a purchase of high end product
consumers carryout a thorough research. They keep needs, benefits and price points in
consideration.

SAMSUNG: TELEVISION COMMERCIALS

Advert 1: https://www.youtube.com/watch?v=1cX4SOQdQoE “Welcome Summer”

Summers are generally vacation time for school going kids and youngsters, families also go on
holidays. The advertisement uses the same theme and shows what all people generally do in
summers (playing, hanging out with friends, eating summer food. It mainly focusses on Indian
Summers which generally means blazing hot sun.

Theme: Welcome Summer. Samsung AC, keeps Indian Summer outside

Central Character(s) Young couples and Kids
Personality and Carefree attitude of the characters irrespective of blazing hot sun and
attributes of central their motivation to enjoy
character(s)
Setting The TVC depicts that you can do whatever you want even in Indian
summers because Samsung AC is there to keep your home cool
Drama The ad begins with a lady opening the window through which sun
shows. Then guys are shown playing volley ball on the beach and then
they look at the sun and do hand action of “Come On Sun”. A lady is
shown eating watermelon and other one in an open jeep looking at the
sun with her arms wide open for the wind, kids are shown playing near
a tree. Good music is used. Towards the end, benefits of ac are
conveyed like the SVC compressor which keeps the room cool
irrespective how hot it is outside and a happy young couple is shown
sitting in living room enjoying the ambience due to Samsung ac.
Inferred Consumer The advert is aimed at young population and families with kids
Segment
Inferred Benefit This Ac comes with new(SVC) compressor which will keep the Indian
Segment Summers outside and you can continue your activities as if there was
no heat.

Cognitive & Affective Components depicted through the TVC : Cognitive components
 The clear description of new features of the AC, the revolutionary SVC compressor
 Stabiliser is not required
 Emphasises the scorching heat in India
 Cognitive elements are used only towards the end of the ad where the features of this ac
are mentioned

Cognitive & Affective Components depicted through the TVC : Affective Components
 The characters are happy and enjoying the delicacies of summer
 Need for tension reduction, Need for expression, Need for assertion, Need for
 identification, Need for modelling : The ad uses these all conveying through the activities
of the characters like their playfulness, sitting on the terrace without tension, desirable
lifestyle shown through the girl in the jeep

Communication along central & peripheral route of persuasion

• Central route – Only at the end of the advert, the features of the new ac are conveyed directly.

• Peripheral route – The characters serve this purpose by depicting how Samsung ac brings about
happiness in the lives with new technology. They are enjoying all their activities irrespective of
the weather thereby saying that Samsung ac allows you to continue with normal lifestyle and
activities.

Positive & Negative Reinforcement

• Positive Reinforcement – Respite from heat

• No negative reinforcement visible

Advert 2: https://www.youtube.com/watch?v=3jTerYStE6Q

Theme: Samsung On savings On (Ultra efficient Samsung AC’s)

Central Character(s) A young family of 4 (two school going kids)
Personality and No specific personality attribute has been used. Just a normal day in a
attributes of central Indian family’s life has been depicted
character(s)
Setting A normal day in an Indian family’s life is shown though in fast
forward mode.
Drama The ad begins with the wife opening the window(which is below the
ac), and asks the husband to get ready for work, and the kids get ready
for school. Then they have breakfast together. After they leave, the
wife sits in front of the ac to relax for a bit and then again gets busy
with household chores. Evening, everyone comes back home and
husband sits in front of the ac to relax for a moment then rushes again
to change. Everyone has dinner. The couple then has a private moment
while sitting on the sofa and are disturbed by kids. All this while the
 AC is on. Towards the end, the ad says life will continue at this pace,
but we have ultra efficient Samsung ac with multijet technology to
keep your home cool.
Inferred Consumer The advert is aimed Indian families
Segment
Inferred Benefit The families who wish to relax in their long hectic days, Samsung ac
Segment provides them that opportunity and feeling of relaxation

Cognitive & Affective Components depicted through the TVC : Cognitive components
 The clear description of new features of the AC, the savings in electricity bill
 Need for consistency, Need for Autonomy, Need for stimulation, Utilitarian need are
shown by the hectic lives of the characters and they need for some personal space and
moments of peace
 Need for stimulation is shown by the savings they make by using this ac

Affective Components
 Need for tension reduction after work, Need for expression by love between the members
of the family, Need for affiliation by the care of the mother/wife has been shown

Communication along central & peripheral route of persuasion

• Central route – The ad clearly shows how hectic lives are these days for everyone is the family
thus ac is On all through the day. Also, the benefits of the new ac (Multi Jet technology, Ultra
efficient and stabiliser) which help in saving electricity.

• Peripheral route – The moments when the family members relax, the cool air coming out of the
ac is shown around the character using animation. Hence, conveying it is the air from ac which
helps one relax.

Positive & Negative Reinforcement

• Positive Reinforcement – Ease of life -> Savings in electricity billsHappiness in the household

• No negative reinforcement visible

NEWSPAPER ADS

Newspaper Ad 1 Newspaper Ad 2
About the ad Full page ad on the new Samsung ac Full page ad on campaign “Samsung
with Triple Protection Technology: On Savings On” launched in 2013
Virus Doctor, Stabiliser free and with free services offered on purchase
UTR plus. Special summer offer of ac’s during the offer period.
with details of price of all models.
Central Route to Detailed information regarding offers Emphasis on messages like “It’s Now
Persuasion given for new variants of ac with or Never Offer”, and offers like :
description of benefits which “Free installation, 0% finance offer
consumers can logically process and and 6 free services”
evaluate while considering purchase
Peripheral Family care and protection used to Uses the term “Smart savings”
convey the new features. “Virus emphasising how smart it would be to
Doctor”, “Air that Cares”. Pictures of buy the ac now and financing it
a lady sleeping peacefully also wouldn’t be a problem.
convey the benefits indirectly.
Cognitive New features of the AC are Clearly stated benefits, however
Elements conveyed and also says how the proper details are not given. Describes
product is beneficial against impure the benefit of inbuilt inverter and
air, power fluctuations and extreme multi jet technology which helps in
heat. Prices of 4 different variants are saving electricity. The emphasis is
also mentioned with details of stores mainly on finances in this ad, from
in different areas of Mumbai. Very savings to free services offered.
informative ad as is also clearly
specifies the details of all three new
features.
Affective Uses the care aspect: “Samsung The ad is highlighted by the word
Elements AC’s care for your loved ones, just “smart” for the savings made by this
like you do”. Also, conveys how the offer.
product takes care of family against
heat and germs so that you can get
care uninterrupted
Positive Purchase => Family protection + Purchase =>Savings + Free services +
Reinforcement ( protection from impure air and Saving on electricity bill
No negative power fluctuations
visible)

MAGAZINE ADS
 Magazine Ad 1 Magazine Ad 2
About the ad Latest technology -> protection from New Silver Nano health system in
H1N1 virus apart from normal Samsung ac that gives revitalizing,
viruses. Claims Samsung ac to be a purer and cleaner air. It is not an
virus doctor. “Make your home virus Indian ad.
Free”
Central Route to Specifies the certification by 7 Health Clearly depicts the working to this ac
Persuasion associations. This ac not only protects to provide cleaner air through the
from normal viruses but also H1N1 is pictures.
stated directly.
Peripheral Except for attractive Priyanka Chopra Attractive female model and use of
Route to the ad doesn’t have anything concrete roses to emphasize the revitalising
Persuasion for low involvement user. air part
Cognitive Very High Emphasis on Product Details of parts of the ac which work
Elements features and certification by health to clean the air shown through
associations as details of all pictures to give credibility to the
associations are mentioned. product
Affective Low because it is an informative ad The use of red roses is an affective.
Elements about the new product proposition of The peaceful and calm look on
protection from h1n1. model’s face has been used.
Positive No reinforcing element as its more of No reinforcing element as its more
Reinforcement ( a factual and informative ad of a factual and informative ad
No Negative)

VOLTAS: TELEVISION COMMERCIALS

Advert 1: https://www.youtube.com/watch?v=12Fk-pmxtvc

Theme: VOLTAS All Weather AC

Central Character(s) A middle aged couple and father of the lady
Personality and attributes of The father is generally finding faults in his son-in-law
central character(s)
Setting The TVC depicts how the AC will work even in Delhi’s hot
weather and son-in-law will impress the father-in-law with the
Voltas Ac
Drama The ad begins with a father of the girl arriving. He keeps on
blaming the son-in-law for various reasons. Even blames him
for the heat in Delhi. At that point the son-in-law says now “ I
will turn the coffee into Kulfi with my Voltas All weather AC”.
It works I sticky heat, normal heat and dry heat too.
Inferred Consumer Segment The advert is aimed at middle class families
Inferred Benefit Segment This Ac works in all kinds of weather. No matter how humid it
is, the ac will serve all purposes

Cognitive & Affective Components depicted through the TVC : Cognitive components
 All Voltas ads generally convey the core value proposition of Voltas AC being suitable
for all weather conditions. In this ad too, the lead character says so
 By showing a middle class family, the ad conveys the affordability of the AC

Cognitive & Affective Components depicted through the TVC : Affective Components
 Shows the plight of all in-laws favouring their own child and finding faults in child’s
spouse
 When blamed for Delhi’s hot weather, the son-in-law says if god has given this 50
degrees how is that his fault and then is rescued by his Voltas AC and gains respect in
eyes of father-in-law

Communication along central & peripheral route of persuasion

 Central route – The lead character says that his AC is suitable for all weather conditions
and no matter what temperature God creates outside, the AC will come to rescue. This
has been conveyed using central route.
 Peripheral route – Impressing his father-in-law with the Ac, giving him respite in
Delhi’s heat, the lead character conveys the benefits of the Voltas Product indirectly. This
is because generally it is not easy to satisfy your in-laws.

Positive & Negative Reinforcement

 Positive Reinforcement – Respite from all kinds of heat

 No negative reinforcement visible

Advert 2: https://www.youtube.com/watch?v=3q7AaQcXC3g

Theme: VOLTAS AC : Savings on electricity

Central Character(s) Old parents
Personality and Middle class parents who wont be able to afford the maintenance of a
attributes of central premium product like AC
character(s)
Setting The son sends an AC to his parents. However, they have not used it as
they are worried about the bills.
Drama The ad begins with the father going to collect the parcel son has sent(
a Voltas Split Ac). However, the parents are not happy with the gift.
Son calls the mother and with her hesitant voice, he comes to know
they have not used the ac. Then they read their son’s letter which says
this new Voltas Ac saves lot if electricity and serves you with less
power usage
Inferred Consumer The advert is aimed at middle class families
Segment
Inferred Benefit There is saving on the electricity consumption
Segment
Cognitive & Affective Components depicted through the TVC :Cognitive components
 The son’s letter conveys how this new AC saves on the bill so middle class families need
not worry about the maintenance costs that come with buying the product
 The efficiency and less power usage of AC is conveyed by a voice in background

Cognitive & Affective Components depicted through the TVC : Affective Components
 Shows the plight of middle class people who are not able to use the AC worried about the
expenditure it would cost
 At the end, the mother is happy and drying her nail polish in Ac’s air showing that how
conveniently they are using the AC now

Communication along central & peripheral route of persuasion

• Central route – The character(son) who gifts the AC to his parents says that they need not
worry about the electricity bill as the AC is ultra-efficient and consumes less power.

• Peripheral route – The peripheral route is followed by initially showing worried parents and
then how happy they are with convenient use of the ac after the sons conveys ACs less power
usage. Hence, the product is affordable to lower-end consumers as well.

Positive & Negative Reinforcement

• Positive Reinforcement – Respite from heavy electricity bills

• No negative reinforcement visible

NEWSPAPER ADS

Newspaper Ad 1 Newspaper Ad 2
About the ad The new split ac from “Jagmag Desh Mera” “India ka dil, India ka
Voltas with savings upto Rs AC” This was a new campaign for Votlas
16000 and exchange ACs which has launched a series of 50 ACs
benefits. Very detailed and this to suit the wallets and requirements of our
informative ad. much heterogeneous Indian market.
Central Route to Clearly states the financial The man in the store with only one light bulb
Persuasion benefits of buying this new and wearing normal clothes is shown. They
split ac. Detailed breakup of want to eliminate the thought of paying
MRP, EMI, down payment increasing electricity bills that are often
for two models has been accompanied with the installation of an AC
shown. Customer care and plays the role of a mental blockage and
numbers are also given in prevents a customer from buying a new one.
case further clarifications They have positioned the brand as one that
are required. gives the user a feeling of "Responsible
Usage”
Peripheral It is more of direct ad except “India ka Dil. India ka AC" saying that this ac
for the happy couple which for all kinds of Indian Customers. They have
features in every Voltas Ad. shown a man in small shop, thereby
emphasizing that even lower end consumers
can afford products like AC.
Cognitive Informative about new offer Doesn’t use cognitive elements, use of
Elements on savings and exchange affective elements is higher as they want to
but limited details. Also, build the perception of “An AC for all”.
cashback offer on Citibank
card is mentioned.
Affective None Clearly uses the affective elements of
Elements patriotism, compassion and aspirations of
normal Indian Consumer. The man shown in
the ad is someone with whom lot of Indian
consumers can identify with.
Positive Purchase => Rs 16000 Purchase =>Affordable prices
Reinforcement savings, No down payment,
easy EMI option, No
processing charges

MAGAZINE ADS
 Magazine Ad 1 Magazine Ad 2
About the ad Voltas all weather air conditioners. Ad with a very low information just
It is a simple ad with not much stating the proposition of the product
clutter. Conveys 4 features of the ac that it works in all weather conditions
and shows a happy couple with next
door neighbours image
Central Route to Emphasis on term “all weather”. 4 Just a message saying that irrespective
Persuasion features specified below the picture of the weather, ac provides you
of ac. comfort
Peripheral Route A happy middle aged couple sitting Attractive female model has been
to Persuasion in the living room is featured. Not featured. She is smiling and looks at
using celebrity emphasises the comfort in her house.
product is for masses.
Cognitive Mention of 4 product features “Voltas all weather ac” the message
Elements has been written with name neha thus
saying that this is review of the
customer.
Affective The happy couple The happy and smiling girl, customer
Elements review
No reinforcement visible

CONSUMER LEVEL DATA

In order to analyze the decision process for the purchase of air conditioners, customer survey was
conducted in 2 households in Kunnamangalam. The products of our concern, Voltas and
Samsung AC were spotted in households which belonged to the SEC A2 category of the social
economic classification. The product was viewed as a luxury item in the area where the survey
was conducted and the households owning the product were one of the high income households
and exhibited great similarity in the consumption decision making process

SAMSUNG A/C

The household is 7 member household with the decision being taken by the son who is a
manager of a private firm. The household has been using the particular product for the last 1
year.

1. Identification of need: The need for the purchase of the air conditioner was identified

a. Hot climate: The purchase was made during the summer season due to the high temperature.
b. Better comfort: The manager was insistent in the installation of an AC since he was used to it
at the office also.

c. Better cleanliness: The house being on the roadside, keeping the windows was not a good
choice as all the dust was swept into the rooms quickly making it dirty. So, AC was considered
as an efficient alternative.

2. Information search

a. Internet: The customer review of the product was looked up. Further, the websites of the some
of the brands were visited to make the decision about the purchase.

b. Dealer Shop: Enquiries regarding the sale, and the complaints received of the different brands
of AC were made to the salespersons of Kannankandy home appliances shop, a renowned shop
in the town.

3. Evaluation of Alternatives

a. The different brands under consideration were LG, Daikin and Samsung. The value for money
parameter was taken as that of important parameter for comparing the 3 options.

b. A 5 star energy rating was also given priority in order to avoid high electricity bills.

c. Designs available was also taken into consideration while choosing the product

d. Compactness of the product was taken since there was a chance for house shifting in the near
future.

4. Purchase Process: Samsung was purchased due to the following reasons:

a. Samsung had service center close to the location

b. The compactness of the split AC was taken into consideration

c. TV, Microwave oven, and laptop used in the household were of Samsung brand and did not
have any major complaints till date.

d. The product was available in black and white color which was much more attractive
5. Post purchase evaluation:

a. The product has a slow pace of cooling the room, though no other major problems have
occurred so far.

b. The servicing done by the company is impressive

c. Electricity bills have surged very high during the summer season despite the 5 star rating.

VOLTAS A/C

The household under study is a 4 member family where the head of the family is a NRI and the
decision for the purchase is done by the college going son. The family has been using the product
for the last 1.5 year.

1. Identification of need: The need for the purchase of the air conditioner was identified

a. The first floor of the house was too hot especially in the summer season.

b. AC was considered to be one of the necessary items in the future with the rising temperature

2. Information search:

a. Opinion of friends: Highly positive review was obtained about the product from the peer group
of the college going son

b. Advertisements: The advertisements were noticed in order to understand the popularity of the
brand before making the choice.

3. Evaluation of Alternatives:

a. LG, Voltas and Samsung were the choices under consideration

b. Lowest price alternative was preferred.

c. Since the AC was intended for installation in the master bedroom, a higher capacity AC was
the preference
4. Purchase Process

a. Voltas AC was a relatively new launch and had promised some attractive features like
provision for switching of the display light of the AC etc. which was absent in others.

b. The brand had offered heavy discounts during a festive season when the purchase was made.

c. Brand was believed to specialize in AC and hence perceived as a better product.

d. Highly recommended by the ac dealers from where the purchase was made

5. Post purchase evaluation:

a. The product had the complaint of water leakage which was not rectified even after servicing

b. The servicing also was not commendable since there was a long delay after the complaint was
made

MANAGERIAL IMPLICATIONS: SAMSUNG

Product category aspects Brand communication

• Multi jet technology for efficient, fast
cooling, easy installation
• For efficient sleep and energy saving
• Powerful tropicalized rotary compressor at 52
degrees
• Full HD bacteria filter collects upto 60%
• 5 star rating to save on electricity bills
• No need of stabilizer with built in inverter
 Ads show youngsters enjoying the
summer sun and little kids playing at the
beach
 It conveys the message of being
carefree and be indifferent to scorching
heat outside
 It shows that AC can run all day long
suiting Indian requirements
 Virus doctor denotes keeping the dust
and germs away, keeping air fresh
 ‘smart savings’ denotes saving in form
of servicing and electricity bills
 ‘smart AC’ captures stabilizer to avoid
expenditure

Gaps in communication and perception

• According to the interviews conducted, Its perceived as a luxury item, but the ads projects itself
as very economical by showing savings

• Though the ads suggests that AC will freshen up the room in minutes, the customers faced a
delay in the performance

• Though the ads claim to reduce electricity bills, the consumers faced surging bills in summer
months

Insights WRT consumption behavior

• Consumers gave high importance to location of service centre and their quality of service
which has not been highlighted by the company in their services or communicated by means of
ads

• Misuse of rating mechanism by companies which neither shows the right size of AC nor the
electricity consumption

External influences Internal Influences

 Culture: the product places itself
as a necessity. Since the
consumer was used to it in
office, he bought one for home
as well
 Demographics: the young gets
to decide the brand of AC by
doing research
 Social status: though portrayed
as a necessity, it is perceived as
a luxury item in the locality of
interview
 Marketing activities: Samsung
markets itself as the ‘Smart AC’
which cleans air, reduces bill
&has new technology fast
cooling system
 Perception: people perceived it as an energy
efficient, fast cooling and stylish product
 Learning: customers learnt about the ‘flight jet’
compressor for fast cooling and the ‘6 step’
design for clean air
 Memory: the customer associated past
experience with other Samsung products and
extended it to the purchase of this one
 Motives: motive of purchasing this AC is
cooling during scorching summer heat and
clean air inspite of pollution by maintain low
bills
 Personality: is ‘Smart AC’ with fast cooling,
low bill, clean air
 Emotions: relaxation and happiness
 Attitude: consumers who are carefree but make
smart choices by taking care of functional
requirements ‘smart AC’ captures the inbuilt
stabilizer to avoid expenditure
MANAGERIAL IMPLICATIONS: VOLTAS

Product category aspects Brand communication

 AC comes with 1.5 ton capacity
 Wall mounted rotary compressor
 Anti fungus, anti bacterial filter
 Additional features like remote
control, LED display, sleep mode &
auto restart
 Less noise due to cross flow vane
 Hydrophilic Aluminium fin and self
grooved copper tubes
 The brand revolves around leaving an
impression even from an unexpected person
 Aimed at middle class families depicting
easily affordable
 Focusses on revamping the perception of
AC as a necessity with affordable electricity
bills instead of something flamboyant
 Suitable for people who have to face sticky
heat, dry heat & normal heat
 Highlights on the tag ‘India ka AC’ focusing
on scorching heat and tight electricity bills.
Portrays itself as ‘All weather AC’

Gaps in communication and perception

• Even though the brand clearly shows an AC for all weather, people still perceive it as only for
rising temperatures and not to control humidity or dryness

• Voltas terms itself as economical in the overall process of purchase and use, since it claims to
have better energy ratings. But, the consumer focused only the low cost feature and didn’t
include the incentive due to electricity bills

External & internal influences

External influences Internal Influences

 Culture: the product places itself as
a necessity and a problem solver no
matter what the size and location be
 Demographics: the young gets to
decide on AC brand by doing
research by either talking or going
through feedback on the net
 Social status: showcases itself as an
affordable and a necessity at
minimum cost
 Marketing activities: Voltas
 Perception: people perceived it as an energy
efficient, fast cooling and stylish product
 Learning: customers learnt about the ‘flight
jet’ compressor for fast cooling and the ‘6
step’ design for clean air
 Memory: the customer associated past
experience with other Samsung products and
extended it to the purchase of this one
 Motives: motive of purchasing this AC is
cooling during scorching summer heat and
clean air inspite of pollution by maintain low
 markets itself as ‘India ka AC’
suitable for all types of heat with
minimum electricity bills
bills
 Personality: is ‘Smart AC’ with fast cooling,
low bill, clean air
 Emotions: relaxation and happiness
 Attitude: consumers who are carefree but
make smart choices by taking care of
functional requirements ‘smart AC’ captures
the inbuilt stabilizer to avoid expenditure

Insights WRT consumption behavior

• Consumers gave high importance to location of service centre and their quality of service
which has not been highlighted by the company in their services or communicated by means of
ads

• Misuse of rating mechanism by companies which neither shows the right size of AC nor the
electricity consumption