Reddy Finally Report

“A study on factors influencing Consumer purchase Decision towards LG
Electronic products
CHAPTER - 1
INTRODUCTION
1.1 Introduction:
Today’s market being very highly competitive, it is very necessary for every
marketer to analyze and understand customer perception and their satisfaction towards the
products marketed. This information can help them to formulate their marketing strategies,
so they can build higher marketing share. Lack of such information has formed a new for
the study. The company must basically understand the needs, tastes, attitudes, beliefs,
perceptions, etc.
In this world so many companies are exist. They are LG, Samsung, Sony,
Videocon, Philips, Onida, etc., and they are very much accepted by the people. But few
each company is the product catering to the needs of people reasons for acceptance And no
acceptance, satisfactory level advanced effectiveness etc., are studied so that the company
can enhance its product attributes to suit the needs and requirements of the customers.
These companies are produced the different types of products they are Television,
Refrigerator, Washing Machine, Air conditioner speaker’s etc.
This report has been mode to know “consumer purchases decision towards LG electronic
products.” All types of companies are produces the electronics. But the LG electronics are
quite different from other company Electronics.
In this modern world Electronics has become so popular that is deemed to be the best
medium of mass communication and entertainment. In these days Electronics has become
a part And parcel of our life
1.2 Theoretical background

Meaning and definition
The aim of marketing is to meet and satisfy target consumer needs and wants. The
fields of consumer behavior studies how individuals, groups, and organizations select, buy,
use and dispose of goods and services, ideas or experiences to satisfy their needs and
desires.
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Consumer Behavior is the study of individuals, groups, or organizations and the

processes they use to select, secure, use, and dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that these processes have on the consumer and
society.
The words of ProfWalterC.G.and Prof – Paul G.W. It is “the process where by

individuals decide whether, what, when, where, how and from whom to purchase goods
and services”. It encompasses the decision making process that proceeds and determine
purchase.
Understanding consumer behavior and knowing co numbers are never simple. The
marketers must study their target customers, wants, perceptions, preferences, shopping and
buying behavior.
Types of customers
1. Impulsive customers.
2. Timid or nervous customer
3. Snobbish customer
4. Deliberate customer
5. Argumentative customer
6. Price minded customer
7. Talkative customer
8. Silent customer
9. Suspicious customer
10. Women customer
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THE MAJOR FACTORS AND DETERMINANTS OF BUYER BEHAVIOUR

CULTURAL
 Cultural
 Sub culture
 Social class
SOCIAL
 Reference groups
 Opinion leader
 Family
 Role & Statuses
ECONOMIC
 Personal income
 Family income
 Income exception
 Consumer credit
 Standard of living
PERSONAL
 Age and life cycle stage
 Occupation
 Economic circumstances
 Life style
 Personality Self concept
PSYCHOLOGICAL
 Motivation
 Perception
 Leaving
 Beliefs & attitudes
 personality
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CULTURAL FACTOR
Cultural factors exert the widest and deepest influences on consumer behavior. The
roles played by the buyer’s culture, subculture and social classes are particularly
important.
a) Culture:
Culture is the most fundamental determinant of a person wants and behavior. Culture
refers to all those symbol art crafts and behavioral patterns that are passed on socially
from one generation to the next, culture are specific to the areas in which they evolve.
Culture trends have significant implications for market segmentation, product

development, advertising and merchandising, branding and packing.
b) Subculture
Each sub culture consists of smaller subcultures that provide more specific
information and socialization for its members. Sub cultures include nationalities, religions,
social group and geographical regions. Many subcultures make up important market
segments and marketers often design products and marketing programs tailored to their
needs.
c) Social class
Social classes, are relatively homogenous and enduring divisions in a society.
Which are hierarchically ordered and whose members share similar values interests and
behaviors.
Social classes do not reflect income along but also other indicators such as
occupation education and area of residence, social classes differ in their class, speech
patterns, recreational preference and many other characteristics. Social classes have
several characteristics first, persons within each social class tend to behave move alike
than persons from two different social class, second and persons are perceived according
to viz occupation, income, wealth, education and value orientation rather than any down
during their lifetime. The extent of this ability varies according to the rigidity of social
stratification in a given society.
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I. Social Factors
In addition to cultural factors consumer’s behavior is influenced by such social
factor like reference group opinion leader, family and roles and status.
a) Reference group
Reference groups are those groups, which an individual identified with to the
extent that those groups became a standard or normal, which influence his behavior,
reference group is a social and professional group that influences the individual opinions,
beliefs and aspiration. It is one that provides an individual with a sense of identity,
accomplishment and stability. Group influence is seems in brand references and choices.
b) Opinion leaders
The individual to whom such reference is made by a person or persons is the
opinion leader. The belief, preferences attitude, action and behaviour of the leader set a
trend and a pattern for others to follow in given situation. In every intimate reference
group, there is a reference person, an informal group who first tries new ideas and products
and them propagates then to his followers. Marketers very often try to catch hold of the
opinion leaders and other and other means of communication. If they succeed in selling
their ideas and products to the opinion leaders then they have sold it to the entire group of
followers behind them.
c) Family
Family is the most important consumers buying .Organization in society and it has
been researched extensively. Family members constitute the most influential primary
reference group. The family of orientation consists of ones parents and siblings. From
parents a person acquires an orientation towards religion politics and economic and a sense
of personal ambition, self-worth and love. In the case where parents live with their grown
children their influence can be substantial.
Marketers are interested in the roles and relatives influence of the husband wife
and children in the purchase of a large variety of products and service.
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d) Role And Statuses

A person participates in many groups throughout life- family, clubs organizations.
The persons position in each group can be defined in terms of role and status, a role
consists of the activities that a person is expected to perform.
Each role carries a status. A supremecourt justice has more status than a sales
manager does and sales manager has more status than office clerk, people choose products
that communicate their role and status in the society.
II ECONOMIC
The purpose of demand creation activities require not only intensifying the desire
of a person to go in for a brand but also to give him buying power which translates desire
into actual purchase. The buying power depends on following factor
a) Personal Income
Income means purchasing power. Gross income of a person is composed of
“Disposal income” & “Discretionary income”. The disposal personal income is the balance
after subtracting taxes and compulsory deduction from gross income. Any change in
disposal income will have change in consumer buying decision. Decline in disposal
income reduces the consumer spending; however, whom disposal income raises, consumer
spending not only rises but makes them to go in for more and more of luxuries.
“Discretionary income” is the income, which is available after meeting basic needs
of living. It is residual disposal income left after meeting all expenses essential to provide
a minimum subsistence needs to a family.
b) Family Income
Since, an individual is a part of his family, it is the aggregate income of all
members of the family, which determines the buying power of an individual. The surplus
income in the entire family, after deducting expenditure on basis needs of family is made
available for buying durable. The size and life style of the family also have impact on a
family – buying behavior.
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c) Income Expectation
The behavior also depends on the expectation of the future income. If a person
expects future lies in his income, he purchases durable such as car, refrigerator, sofa set
etc. If his future income is likely to decline, he will restrict current expenditure to base
necessities.
d) Liquid Asset
Liquid asset of consumer are the assets held in the money on near-money forms of
investments, for ex hard cash and bank balance, share and bonds and saving certificates.
These liquid assets are build up to buy some consumer durables on to meet unexpected
future needs or contingencies.
e) Consumer Credit
Paucity of consumer credit has its impact on consumer buying behavior. Consumer
credit takes number of shapes like deferred payment, installment, hire purchase
arrangements and the like. Easy availability of consumer credit makes the consumer to go
in far that consumer durable.
f) Standard of living
The consumer behavior has the impact on the established standard of living to
which he is accustomed. Even if the consumer income goesdown. The consumer spending
will not come down proportionately. Because, it is very difficult to come from an
established standard of living
III) PERSONAL
A buyer’s decisions are also influenced by personal characteristics. These include
the buyer’s age and stage in the life cycle, occupation, economic circumstances, life style
and personality and self-concept.
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1. Age and state in the life cycle.

People buy different goods and services over their life time. The consumption is
also shaped by the facially life cycle. The stages of the family life cycle depend upon the
financial situation and typical product interests of each group marketers of ten choose life
cycle groups as their target market.
1. Occupation
A person’s occupation also influences his or her consumption pattern. Marketers
try to identify the occupational groups that have above average interest in their products
and services.
2. Economic Circumstances:
Product choice is greatly affected by one’s economic circumstances. Peoples
economic circumstances consist of their spend able income, savings and assets, debts,
borrowings power and attitude towards spending us saving.
Marketer of the income-sensitive goods pay constant attention to trends in personal

income savings and interest rates. It economic indicator points to a recession continue to
offer value to target customer.
3. Life Style
People coming from the same subculture, social class and occupation may lead
quite different life styles. A person’s life style is the person’s pattern of living in the world
as expressed in the person’s activity interest and opinions. Marketers search for
relationships between their products and life style groups and the marketers then the brand
more clearly at the achieves life style.
4. Personality and self – concept
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Each person has a distinct personality that influences his or her buying behavior.
Personality means a person’s distinguished psychological characteristics that lead to
relatively consistent and enduring responses to his or her environment.
Personality is usually described in terms of such traits as self confidence,

dominance, autonomy, deference, sociability, defensiveness and adaptability, personality
can be useful variable in analyzing consumer behavior provided that personality types can
be classified accurately and that strong co-relation exist between certain personality type
and product or brand choices.
IV PSYCHOLOGICAL FACTORS
A person buying choices are influence by fire major psychological factors
 Motivation
A person as many need set any given time. Some needs are biogenic tension such as
hunger, thrust, discomfort other needs is psychogenic, there arise from psychological states
of tension such as the need for recognition esteem or belonging. Most psychogenic needs
are not intensive enough to motivate the person to act on them immediately. A need
becomes a motive when it is aroused to a different level of intensity, a motive is need that
is sufficiently pressing to drive the person to act.
 Perception
Perception gives the direction to be taken by the behavior. It is the meaning that
consumers give on the basis of its past experience consumers sense perceives the color
shape sound small taste etc. of its stimuli. The consumer has his own, selective exposure,
selective distortion, selective retention and selective action that is the consumer as his
own, decision whenever messages broadcast by the marketers through their promotional
tools
 Learning
When people act they learn. Learning involves changes is an individual behavior
arising from experience. Most human behavior learnt. Learning theories believe that
learning is produced through the interplay of drives, stimuli, cues response and
reinforcement.
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Drive refer to an internal state of tension, which warrants action. A “cue” is an
environmental stimulus. Response represents the person’s reaction to cues within his
environment Reinforcement is the response reward.
 Believes and attitudes

Through doing and learning people acquire believes and attitudes. There in turn
influence their buying behavior.
A belief is the description throughout that a person holds about something.

Manufactures are very interested in the believes that people carry in their heads about their
products and services. These beliefs make up product and images act on their images.
An “attitude” is a person enduring favorable or unfavorable evaluations emotional

feelings action tendencies towards some object or idea. People have attitude toward almost
everything religion, politics, clothes, music, food and soon. Attitudes put them in to frame
of mind of liking or disliking an object, moving towards or way from it. Attitudes lead
people to behave to behave in a fairly consistent way awards similar objects.
 Personality
Personality refers to the essential difference between one individual and another.
Therefore, personality consists of mannerisms., habits, action that make a person an
individual and there by serve to make him distinct from every one else. Personality
interplay of these component namely, the “id, the ego and super ego”
The “id” the source of all mental energy which drives as to action.
The “ego”, the conscious directs of “id” impulses for finding satisfaction in social
accepted manner. It represents our basic impulses and total satisfaction.
The “super ego”, the internal representation of what is socially approved our conscience
that is, it reflects our idealized behavior pattern.
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Buying decision.
We can distinguish five roles people might play a buying decision.
1. Initiator : A person who first suggest the idea of buying the product or service .
2. Influencer: A person who view or advice influences the decision.
3. Decider : A person who decides on any component of a buying decisions: whether to
buy, what to buy, how to buy, where to buy .
4. Buyer : The person who makes the actual purchase.
 User: The person who consumes or use the products or service.
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CHAPTER-2
INDUSTRY AND COMPANY PROFILE
2.1 INDUSTRY PROFILE
HISTORY
Indian electronics industry dates back to the early 1960’s . electronics was one industry
initially restricted to the development and maintenance of fundamental communications
systems including radio –broadcasting , telephonic and telegraphic communication , and
augmentation of defense capabilities .Until 1984, the electronics industry was primarily
government owned and then in 1980 ‘s witnessed a rapid growth of the electronics
industry due to sweeping economic changes, resulting in the liberalization and
globalization of the economy.
The economic transformational over world was motivated by two compelling factors – the
determination to boost economic growth, and to accelerate the development of export-
oriented industries, like the electronics industry .by 1991 in the country private
investments – both foreign and domestic were encouraged. The easing of foreign
investment norms, allowance of 100% foreign equity, reduction in custom tariffs, and
relicensing of several consumer electronic products had attract remarkable amount of
foreign collaboration and investment.
The domestic electronics industry also responded favorably to the policies of the
government the initiatives of the electronics field to private sectors enabled entrepreneurs
to establish the industry to meet demand in the market. improvements in the Indian
electronic industry have not been limited to a particular segment but encompass all its
sectors this pace made in areas of commercial software, the telecommunications,
electronics instrumentation, positioning and networking systems, and defense.
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BRIEF INTRODUCTION
Indian electronic company’s had majorly benefited from the economics liberalization
policies of the 1980’s, including the loosening of restrictions and technology and
component imports , delicensing , foreign investment, and reduction of excise duties .
output from electronics plants in india grew from Rs 1.8 billion in FY 1970 to Rs 8.1
billion in FY 1980 and to Rs 123billion in FY 1992. Most of the expansion took place in
the production of computers and consumer electronic . Indian production of computers
rose from 7,500 units in 1985 to 60,000 units in 1988 and to an estimated 2 00,000 units
in 1992 .During this period , major advances were made in the domestic computer
industry that lead to more sales . consumer electronic in india account for about 30% of
total electronics production of the country .
In 1990 the electronic production included 5 million television sets, 6 million radios , 5
million tape recorders , 5 million electronics watches recorders . The engineering sector is
large and varied and provided around 12%indias exports in the mid -1990’s . to sub sector
, electronics and motor vehicles , are most dynamic in all the sectors .
MARKET CAPITALIZATION
The Indian electronic market was at US$ 11.5 billion in 2004 , then the market world
wide over the next several years . Indian electronic industries is expected to grow at a
compound annual growth rate (CAGR ) of 23% by 2010 to reach US$ 40 billion . though
it’s total out will be for behind china electronics markets , wroth US$ 271.97 billion in
2014 , india promises a better market with the bears watching . low manufacturing costs in
skilled labor and raw materials , availability of engineering skills, and opportunity to
meet demand to in the populous Indian market, are driving it’s electronics market .
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SIZE OF INDUSTRY
In the year 2005 india’s electronics consumption was around 1.8% it is likely to touch 5.5
% in 2010. According to study conducted by ISA and frost Sullivan, india’s semi
conductor market would grow by 2.5 times . the end users products of semi conductor
would include mobile, hand sets , desk top and notebooks , PCs, etc .
TOTAL CONTRIBUTION TO THE ECONOMY/ SALES
Indian electronics industry today stands at US $ 25 Billion and is ranked 26th in the
world in terms of sales and 29th in the world in terms of production . It is growing at over
25% CAGR and is expected to be wroth US 4 158 Billion by 2015 , Electronic industry is
one of the fastest growing industries in the country and is driven by growth in key sectors
such as IT, Consumer Electronic and Telecom.
The demand for electronics is expected to be fuelled by the growth of
 Telecommunications ( 250 million subscribers by the next few years)
 PCs and Notebooks ( 5 million every year)
 Broad – Band connectivity reaching rural areas.
TOP LEADING COMPANY

Video Projectors : Phil System , Keltron Projectors, Birla 3M , Samrat Video
Vision
Colour Television : LG Electronics , Philips, Sony: Sansui, Samsung, BPL,

Videocon, Onida, Aiwa , Akai, Thompson, Panasonic.
Cameras \ Camcorders ; Sony, Canon, Olympus, Fuji film. Nikon
EMPLOYMENT OPPORTUNITIES;
According to a recent report presented by Ernst and young , the Indian domestic
demand for electronics products is expected to reach $ 125 Billion by 2014 from
the current level of $ 45 Billion annually . The primary demand drivers for the
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Indian electronics industry are sectors like telecom , defence , IT and e-
governance , automotive, consumer electronics and energy. At these demand
levels , until india create it’s own electronics product industry , the imports of
these product will create the single largest trade deficit item, which would even
be large than petroleum product. On the other hand , if these particular unique u
opportunity is utilized, it can create a large industry catering to domestics
consumption , which will help achieve self reliance in strategic sector like
telecom and defence , while leading to large exports .
LATEST DEVELOPMENT
 The Indian electronics industry constitutes less than 1% of the global
market however . demand for this Products are growing rapidly and
investments are flowing in to augment manufacturing capacity
 Today india remains a major importer of electronics materials ,

components and finished equipment amounting wroth of $ 20 Billion(Rs
84,000 crore) in 2007. The country imports electronics goods mainly from
china .
 In fast 4 years , production of computers as grown at a compounded
annual growth rate (CAGR ) OF 31% , Which is highest among the
various electronics product in india and then production is followed by
communication and broad cost equipment strategic electronics and
industrial electronics
 The consumer electronics segment has grown at a CARG of 10%in the

last five years includes a wide range of products such as DVD, VCD/
MP3playersa, television sets and microwave ovens.
 The growth in demand for telecom products has been high with india
adding two million mobile phone users every month, which serves as one
of the main reasons for the growth in production of electronic goods. This
growth is expected to continue over the decade, too.
 To attract foreign investment the government has adopted Chinese style

special economic Zones with the aim to provide islands of excellence
where the infrastructure is world standard. Fifteen –year tax breaks given
to foreign investors and SEZs are treated as foreign territories for the
purpose of trade operators, duties and tariffs.
2.2 COMPANY PROFILE

Introduction to the Company:
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LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,
South Korea was established in January, 1997 after clearance from the Foreign Investment
Promotion Board (FIPB). The trend of beating industry norms started with the fastest ever-
nationwide launch by LG in a period of 4 months with the commencement of operations in
May 1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi,
in 1998, with an investment of Rs 500 Crores. This facility manufactured Colour
Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year
2001, LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unit.
The beginning of 2003 will see roll out of the first locally manufactured Direct Cool
Refrigerator from the plant at Greater Noida.
The Greater Noida manufacturing unit line has been designed with the latest
technologies at par with international standards at Korea and is one of the most Eco-
friendly units amongst all LG manufacturing plants in the world .LG has been able to craft
out in five years, a premium brand positioning in the Indian market and is today the most
preferred brand in the segment.
During the six years of its existence in the country, LG has managed to capture a
premium brand positioning in the market through its integrity, dynamism and innovation,
making it a symbol of trust and quality. The effort has been towards providing services at
door steps of majority of households across the country. Having worked towards this the
company has 32 branch offices and 59 remote area offices in the country today.
History of the Company:
LG have a wide coverage in terms of service centers. The company presently has
179 authorized service centers backed by 23 call centers all across the coutry.This huge
network is taken care by 1,700 engineers. These service centers are spread across the
length and breadth of the country and provide a wide range of services for the company’s
home appliances, consumer electronics and IT products.
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LG India has also been taking a slew of initiatives as a part of corporate
responsibility. The company has adopted 24 villages around its Greater Noida facility. LG
extends free medical care, which comprises free checkups and free distribution of
medicines on a daily basis.
Various studies have shown that the consumer is well informed on the health
awareness front. LG was one of the first companies who recognized the emerging change
in consumer needs and decided to differentiate their products on the basis of technology
which appealed to the consumer on the basis of health benefits. Its vision was to become a
'Health Partner' for its consumers worldwide and therefore formulated its corporate
philosophy to make peoples' lives better, convenient and healthier. The CTV range offered
by LG has 'Golden Eye' technology, which senses the light levels in the room and adjusts
the picture to make it more comfortable for the eyes.
The entire range of LG air-conditioners have 'Health Air System', which not just
cools, but keeps pollution out. Similarly, microwave ovens have the 'Health Wave System',
refrigerators have the 'Preserve Nutrition System', which preserve the nutrition in food
and washing machines have 'Fabricare System', which takes the health factor down to
ones clothes. All the products offered by the company have unique technologies,
developed by its RAndD departments that give customers a healthier environment to live-
in.
The year 2005 witnessed LG becoming the fastest growing company in the
consumer electronics, home appliances and computer peripherals industry. The company
had till the month of October 2007 achieved a cumulative turnover of Rs. 5000 Crores in
India since its inception in 1997, making it the fastest ever Rs 5000 Crores clocked by any
company in the Indian consumer electronics and home appliances industry. Having
achieved this milestone, LG achieved another benchmark with the first ever sales of One
Lakh ACs (Windows and Splits) in a calendar year.
This year, LG has emerged as the leader in Colour Televisions, Semi-Automatic

Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In
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LG electronics products having set the sales target of one million units ofElectronic items
for 2007, LG has already achieved the one million mark in the month ahead of its target.
LG Electronics India is the fastest growing company in the consumer electronics, home
appliances and computer peripherals industry today. LG
LG Electronics in India turn over

Turnover for 2007 Rs. 3000 Crores
Turnover for 2012 Rs.8000 Crores
Turnover for 2013 Rs .12250 Crores
Electronics is continually providing superior technology products And value for money to
over 50 lakh households in India.
LG India Pvt. Ltd. announced their consolidated financial results for 2003 clocking
a turnover of Rs. 4,500 cr. The company has registered a phenomenal turnover growth of
36% vis-à-vis 2007 with individual contributions being 46% from CE, 44% from HA and
10% from IT. LG Electronics currently has 65 Regional Area Offices, 60 Central Area
Offices with 40 branches
Milestones:
The 1950’s
1958: Gold Star (today's LG Electronics) established
1959: Korea's first radio produced
The 1960’s
1962: Radio exported to the US and Hong Kong as Korea's first
1965: Korea's first refrigerator produced
1966: Korea's first refrigerator produced
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1968: Korea's first air conditioner produced
1969: Korea's first washing machine produced
The 1970's
1974: Gold Star Communication went public
1977: Color products produced
1978: Exports surpassed US$100 million as Korea's first in the electronics
industry
The 1980's
1980: First EU sales subsidiary in Germany (LGEWG) established
1982: Color products plant in Huntsville in the US established
1984: Sales surpassed 1 trillion Won
1986: European-standard VCR plant in Germany established.
1989: Sales subsidiary and a joint production subsidiary in
Thailand established
The 1990’s
1990: Ireland-based design technology center established.
1993: With the establishment of Huizhou subsidiary, China, Marketing
in China began Full swing.
1995: Company name changed to LG Electronics and the us based Zenith
acquired.
1997: 40-inch PDP Electronic items and the world's first IC set for LG
products developed.
India Production Subsidiary (LGEIL) established

1998: World's first 60-inch PDP products developed
1999: LG-Philips LCD, a joint venture with Philips, established.
The 2000's
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2002: LG Information and Communications merged, the word's first Internet-
enabled refrigerator launched; global sales of refrigerators reached the
number one position.
2008: Asynchronous IMT-2000 equipment commercialized; the world's first

Internet-enabled washing machine, air conditioner, and microwave oven
launched; LG-Philips CRT, a joint venture with Philips established.
2010: Under the LG Holding Company system, the Company spun off to LG
Electronics (LGE) and LG Electronics Investment (LGEI); the first
Home networking system commercialized in the global market.
2012: World's first synchronous-asynchronous IMT-2000 mobile phone developed; the

world's largest products developed; CDMA mobile handsets took the largest share
in the US CDMA market.
2013:Launched 120 Hz full HD LCD TV line, Shipped 15 millionth LG Chocolate Phone,

Led US drum washing machine market for the first time.
2014 :
 12Began mass production at E4, an OLED production line, in Paju, Korea
 10Developed the world’s narrowest 0.7mm bezel FHD LCD panel for smartphones
2015 :
 11Made investments in P10 focusing on the world’s largest OLED
 07Achieved accumulated production of 1.5 billion units of large panels for the first
time in the industry
 04Began mass production of 5.5-inch QHD Electronic items panel with AIT
technology
2016 :
Achieved DJSI(Dow Jones Sustainability Indices) world index 2016
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2017 :
 Began mass production of the 5th Gen. OLED light in Gumi, Korea
 Began mass production of the 6th Gen. plastic OLED in Gumi, Korea
 Began mass production of module assembly plant in HaiPhong, Vietnam
 Develops Worlds First 77-inch Flexible and Transparent OLED Display
2018 :
 Developed World’s First 88-inch 8K OLED Display & Worlds first 65-inch UHD
Rollable Display
 ORGANAISATION STRUCTURE
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Chief Executive Officer and Vice Chairman

Dr. Sang-Beom Han
A leading IT expert with more than 30 years of experience in the semiconductor
and display sectors, Dr. Sang-Beom Han currently serves as Chief Executive Officer and
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Vice Chairman of LG Display. Dr. Han has been credited with leading LG Display’s IT
and LG electronics products business units to positions of worldwide prominence during
his career with the company. As Head of the IT unit in 2007, Dr. Han’s team succeeded in
developing the company’s monitor and notebook PC panels into best-selling Electronic
products, advancing LG Display’s position in the global market. As Head of the LG unit in
2010, Dr. Han achieved a similar accomplishment with the successful launch of FPR (Film
Type Patterned Retarder) 3D technology and gaining stronghold on the globalLG items
panel market. Dr. Han holds a Master of Science degree in metal engineering and a Ph.D.
in material science from the Stevens Institute of Technology in New Jersey.
Date
Name Term Appointment Present Position
Appointed
CEO and Vice

Sang
2015.03.13 3Years Reappointed Chairman, LG
Beom Han
Display
CFO and Senior

Sang Don Newly
2014.03.07 3Years Vice President, LG
Kim Appointed
Display
Yu Sig Chairman of BOD,

2014.03.07 3Years Reappointed
Kang LG Academy
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Date
Name Term Appointment Present Position
Appointed
Chairman of Audit
Committee and
Joon Park 2016.03.11 3Years Reappointed Professor, School
of Law, Seoul
National University
Member of Audit
Committee and
Professor,
Information
Jin Jang 2014.03.07 3Years Reappointed
Display
Department,
Kyunghee
University
Member of Audit
Sung Sik Newly Committee and
2015.03.13 3Years
Hwang Appointed president of
Samchully Co., Ltd.
Kun Tai Newly CEO of Hans

2016.03.11 3Years
Han Appointed Consulting
2.3 PRODUCT AND DEALER PROFILE
History of LG Electronic Products

During the seven years of its existence in India, LG has earned a premium brand
positioning due to its superior quality, high product performance, revolutionary
technological delivery and warm service. In fact, today LG is recognized as a leader in
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Electronic products
setting industry norms starting with the fastest ever-nationwide reach, latest global
technology and product innovation.
During the commencement of 1839 when Alaxander Edmond becqlterre discovered

electro chemical effects of light after that during 1845 michal farady findout relationship
b/w light And electricity.
In 1873 may discover the photo conductivity, which provided on important due to
secret of practical LG products. In 1888 the research in opermany W. Hall Wiks LG
electronics products and H. Opetal worked on photo missive effect.
In 1908 it gave the most remarkable contribution which is basis of modern LG

items. He find that are of cathode tubes, magnetic cable deflected at both camera And
receiver the image of the seen to be transmitted was focused the back which was
discharged by cathode ray been tracing of a line scanning sequence.
In 1926 bared gave the first demonstration of true LG products. The piature were
formed only 30 lines repeating approximately 10 times set second. This result was not start
of LG products. By 1930 Radio corportcion of America was able to demonstrate all
electronic items and there provide soundness of suitor theoretical idea. By the time 1930
electronic items were manufactured. Important questions were setting up, basic standard
before public broad casting.
The first piature demonstration of LG items was given by J. L. Baried in 1928. He

used mechanical seaming with ripkaw disk having 3 splrag of 30 operators.
LG electronic products is technically much more complex than LG products. LG

items today is much popular And many changes have taken place the credit of LG items
invention goes to Hohan Logic Baired. Who introduced both black And white Electronic
products. LG company was produced the LG products on 1977. After this on 1988 LG was
introduce in India. In recent years is also introduced.
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Electronic products
LG electronic products models
1. LG LED TV
43UK6360PTE 49-Inch 4K Ultra HD Smart LED TV

Rs.40,700.00
2. LG Refrigerator
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Electronic products
LG 188 L 3 Star Inverter Direct-Cool Single Door Refrigerator

Rs 15,790
3.LG Washing Machine.
FHT1006HNW LG 6 kg Inverter Fully-Automatic Front Loading Washing Machine

Rs.29,390
5. LG Home theatre Speaker
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Electronic products
LG LH64B-G 4.1 Home Theater System

Rs.6,100
Working of LG Electronic products
To understand the working and principle of LG products it is essential to have knowledge

about human eyes. Human vision employer many hundreds of thousands of separate
electrical circuits in the optic nerve from retina to the brain to convey simultaneously into
dimensions.
Into dimensions the whole content of sense on which the eye is found. The since of be LG
items in first translated into in electrical image and converted into electrical signals. There
signals do not have the capability to reach loner distance, so that electrical signals do not
have the capability to reach longer distance, so there electrical signals are placed on the
carrier waves which has more capability helps to reach the linger distance. Their carrier
wave simply acts on catalysts which do not effete or change electrical waves their carrier
and electrical waves are transmitted though transmitter at the LG products station with
amplification. There waves are received by the antenna (receives) and transmitted to the
items set, there was find converter there electrical signals are converted into image signals
i.e., picture with help of picture tube.
The sequential pep production of visual image is feasible only because the visual sensor
displays persistence that is brain as of illumination for about.
One second after the sources of light is removed from the eye, it is passable to recreate
more than ten com late pictures per second And to stimulate there by motion of sense so
that it appears to be continue on.
DEALER PROFILE
Introduction:
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Balaji TV Linksis a sole trading concern started dealing with consumer electronics, in the year
1972. At that time, there was a great demand for audio and radio players.
The proprietor started his shop with the name "Balaji TV Links ". This shop was
startedMr.Vijaykumar. At 1986 G. Mr.Vijaykumar was the proprietor of the concern And enjoys
the ownership completely. Therefore, this enterprise was converted partnership into sole trading
concern. At 1994, the name was also changed to Balaji TV Links.
Balaji TV Links is established at a best place, which is convenient to the people. It is situated at
pavagada road Challakere. This is a own shop.
Balaji TV Links offers a wide range of products to the customers. The concern deals in
different brands of products of LG, VIDEOCON, BPL, PHILIPS, SAMSUNG, ONIDA,
HAIER, etc. the LG products came to be very popular in Challakere town due to good number
of dealers And their schemes.
The following are the products, which are dealt in the concern:
Color Televisions, VCD DVD players, Washing Machine, Air conditioners, Telephones,
Refrigerators, Walkmans, mobiles, music systems, Rechargeable Batteries, Stabilizers, Personal
Computers, Monitors Etc.
Capital Structure:
Firstly, the proprietor invested capital was Rs. 5,000 of which their personal investment was
40% and 60% was fulfilled by the friends and relatives. Rs. 20,00,000/- is the present capital
required.
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Management and Organization Structure:
Proprietor
Salesmen Technician
The above figure shows the clear picture of the Organization Structure of Balaji TV
Links. There are totally 3 members in the management. Mr.Muniyappa is the proprietor
and manager in this enterprise. He takes all types of duties And responsibilities of the
concern. Finally, this concern having 1 salesmen And 1 technician. The salesman
responsibilities is to sell the goods outside the concern. And the technician is to solve the
technical problems of the products.
Marketing System of Balaji TV Links:

The enterprise is having good name and reputation in the city for it is quality products and
efficient service. The concern deals with the new technology products by taking keen
consideration for the consumer’s demands in the city. The shop also undertakes advertisement in
newspapers to the people at frequent intervals. The salesmen of the enterprise demonstrates the
products to the customs And make their decision easier. It also provides after sales service for
the guaranteed products, the proprietor believes that customer satisfaction is the main motto of
the business.
OBJECTIVE:
The concern besides earning maximum profits from the business, it has the following objectives;
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1. The concern main objective is to satisfy different types of customers.
2. To offer wide range of products to the customers.
3. To deal with the nature of diversification of products dimensions, sizes, weight, quality,
shape, etc.
4. To charge fair and reasonable price for the different company products.
5. To bright up the LG items imageand attract the customers.
6. To increase the reputation of the concern.
7. To create demand for the LG products
SALES ANALYSIS:
Muniyappa is a hard worker from the beginning. After establishment of the concern, the hard
working and keen interest of the proprietor And the staff resulted in increased sales And earning
handsome profits.
SALES PERFORMANCE DURING LAST FIVE YEARS

The total sales of LG electronic products for the last five years are given in the following table.
SI. YEARS NUMBER OF UNITS SOLD
NO
1 2008 – 2009 25
2 2009 – 2010 47
3 2010 – 2011 59
4 2011 – 2012 68
5 2012 – 2013 81
6 2013 - 2014 120
7 2014 - 2015 155
8 2015 - 183
2016
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In the year 2008 – 2009, the sales of LG products were 25 unites. Then in the year 2009 – 2010,
the sales of increased from 47unites to 59 unites. And there was an increase in 12 unites in the
year 2010 – 2011.
The in the year 2014– 2015, there was an increased from 120unites to 155unites.
CHAPTER – 3
RESEARCH METHODOLOGY
3.1 REVIEW OF LITRATURE
According to Albert et al (2008), the social factors represents customers, family, social,
roles, small groups, status and reference group which causes the responses of customers
and impact their purchasing behavior. similarly according alba Hctchinson (2000), social
factors sum up the social interaction between the influential groups of people and
customers such as opinion leaders, reference groups and family members.
According to Srinivasa Rao Kasisomayajula (2013) have written an article entitled “ A

study on customer preference of LG Lap-top’’ explains that the consumers’ tastes change
rapidly. They want new models with the latest features. It is a very hard fight. Basically on
every front. The dealers push and brand pull, both players a very crucial role. Hence the
company concentrate on both fronts equally will have an upper hand over the others.
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Company’s like hp, Compaq, Lenovo, Sony and LG have practiced this very well and
leading on the sales front. The dealers have to observe that the consumers add a lot of
value for after sale and service provided by the company while making a purchase
decision. Today management of customers relationship is assuming more and more
importance and company cannot ignored this. Based on the above response , hp and
Compaq, provide better customer service as compared to others.
According to Nasrin Sultana and Dr.Sakthivel Murugan undertook a a study on “Consumer

buying behavior of home appliances with reference to LG products”. The objectives of the
study is to study the factors influencing consumer buying behavior of LG home Appliance,
to identify the customers brand preferences towards purchasing home appliance.
The study revels that consumer buying behavior is influenced by internal factors such as
demographics, psychographic , personality, motivation, knowledge, attitude, beliefs, and
feelings. Consumer behavior is concerned with consumer need for action in the direction
of satisfying his needs. The external factors which influence consumer behavior were as
follows culture, subculture, locality, family past experience, reference groups, lifestyle
and gender.
According to vijayalakshmi, S and Mahalakshmi, V (2013) have made on attempt on “ An

impact of consumer buying behavior in decision making process in purchase of electronics
home appliances in Chennai , an empirical study “ which presents consumer behavior is
study individuals, groups, or organizations and the processes they use to select, secure and
dispose products, services, experiences, or ideas to satisfy needs and the impacts that
these processes have on the consumer and society .
3.2 Statement of the Problem:

Today we have stepped into 21st century. This story witnessed a milestone in the area of
technology, once upon a time LG products was considered as a luxury but today nowhere
use finds these worlds that having a Electronic items at home is a luxurious one. LG
products is a right now providing every viewer information, which may be sports,
entertainment at our doorstep 24her a day. In this contest study is undertaken to analyze
the consumer purchases decision towards LG electronic products for purchasing this study.
An attempt has been made that whether LG company Ltd has been successful in meeting
the wants And expectations of the consumers. To understand the need of consumers And to
know their attitude towards LG products has need for study is greatly felt. Problems can be
overcome by selling the LG items sets according to consumer’s level of satisfaction.
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3.3 Need of the study: The study of consumer purchases is focus on the knowledge of
consumer is equally useful for middlemen and sales to perform their tasks effectively in
meetings consumer needs and wants successful. Thus improve the performance. Improve
the standard of living Given better quality of good and services .it play a greater Role in
the influencing the purchasing decision made by consumer.
3.4 Objectives of the study:

 To identify and understand the major factors influencing customer purchases
decisions.
 To analyze the impact to these factors on customer decisions.
 To analyze whether these factors lead to better and improved purchases.
 To give suggestions to improve purchase decisions of customers
3.5 Scope of the study:

The study is conducted to identify and major factors that can influence analyze
customer purchases decision towards LG electronics products. for the study is conducted
at Challakere town for 100 customers.
3.6 Research Methodology:

Research is defined as a careful consideration of study Regarding a particular
concern or a problem using scientific methods.
Type of Research
Descriptive Research:
Descriptive Research is research used to "describe" a situation, subject, behavior or
phenomenon it is used to answer the questions of who, what, when, where, and how to
associated with a particular Research questions or problems.
POPULATION
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A whole number of people in a country or region The total of individuals occupying an
area.
300 customers is the total population.
SAMPLING:
Sampling is a process used in stastical analysis in which a predetermined number of
observations are Taken from a smaller Population. The methodology used to sample from
a depends on the type of analysis being performed but may include simple Random
sampling or systematic sampling.
SAMPLE SIZE :
100 customers will be considered for the study.
SAMPLE METHOD:
Convenience sample
A convenience sample is made of the people who are Easy to Reach.
DATA COLLECTION:
 Primary data
Primary Data is a data that is collected by Research from first Hand sources it is the first
hand information collected from the consumer and dealers themselves.
SOURCES OF PRIMARY DATA

*Questionnaire
* Interview
 Secondary data
 Secondary data is the data that is already collected by and readily available from
other sources.
SOURCES OF SECONDARY DATA

* Company profile
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*Magazine
* Website
*Text books
*Articles
PLANS OF ANALYSIS AND INTERPRETATION

The data collected will be analyzed by the using tables and
Interpreted by using graphs, simply percentage method of analysis will be used.
TOOLS OF DATA COLLECTION

Structured questionnaire and interview will be used for collecting the dat
3.7 Limitations of the study:

 The scope of study is limited to Challakere town only.
 The Research conclusions cannot be generalized.
 The Response given by the customers might be biased.
 The study is Restricted to a sample size of 100 customers.
CHAPTER - 4
DATA ANALYSIS AND INTERPRETATION
The information collected through the survey is classified and tabulated. Preparing
appropriate table highlight the results obtained thereof. The information collected and
calculated in the form of percentage to make analysis easy. Bar diagrams and pie charts
have been shown for the better understanding of the data.
SYSTEMATIC ANALYSIS OF THE CONSUMER SURVEY:

TABLE-4.1
Table showing age group of respondents:
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NO.OF
AGE GROUP RESPONDENTS PERCENTAGE
20 – 30 44 44%
31 – 40 34 34%
41 – 50 12 12%
51 And Above 10 10%
TOTAL 100 100%
Source: Field Survey

ANALYSIS;
From the above table we can show that 44 customers belong to the age group of 20 to
30 years , 34 of the customers belong to the age group of 31 to 40 years , 12 customers
belong to the age group 41 to 50 years , 10 customers are 51 years and above.
CHART-4.1
Chart showing the age group of respondents:
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NO OF RESPONDENTS
AGE GROUP
20 – 30
31 – 40
41 – 50
51 And Above
TOTAL
Interpretation:
Majority of the customers belong to the age group of 20to 30 years.
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TABLE-4.2
Table showing sex of the respondents:
SEX NO. OF PERCENTAG

RESPONDENTS E
MALE 70 70 %
FEMAL 30 30 %
E
TOTAL 100 100 %
ANALYSIS:
70 customers are males and 30 customers are females.
CHART-4.2 Chart showing the sex of the respondents:

100%
90%
80%
70%
60%
50% FEMALE
MALE
40%
30%
20%
10%
0%
1 2
Interpretation:
Majority of the customers are males.
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TABLE-4.3
Table showing the customer electronics brands which they are dealing:
NO:
BRANDS DEALT OF PERCENTAG
RESPONDENTS E
VIDEOCON 12 12 %
LG 10 10%
SAMSUNG 10 10 %
WHIRLPOOL 6 6%
SONY 6 6%
BPL 6 6%
PANASONIC 8 8%
ONIDA 6 6%
PHILIPS 6 6%
DEAWOO 6 6%
ELECTROLUX 6 6%
GODREJ 6 6%
SHARP 6 6%
OTHERS (NEB, 6 6%
HAIER.etc.)
TOTAL 100 100%

ANALYSIS;12
Dealers prefer Videocon,10 dealers prefer LG,10 dealers prefer Samsung,6 dealers
prefer Sony,BPL, whirlpool. 8 dealers prefer Pansonic and rest of the dealers prefer
Onida, Philips, Godrej,Daewoo, Electrolux and others.
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CHART-4.3
Chart showing the customer electronics brands which they are dealing:
14
12
12
10 10
10
8
8
6 6 6 6 6 6 6
6
0
N LG L NY L C A PS X
CO NG OO BP NI ID OO LU
O SU P SO SO N I LI W O
DE M RL NA
O PH DE
A TR
VI SA HI PA EL
EC
W
INTERPRETATION:
Majority of the dealers prefer Videocon LG Samsung and Panasonic priority 5
dealership.
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TABLE-4.4:
Table showing the income group of respondents:
INCOME NO. OF PERCENTAG
GROUP RESPONDENTS E
Below – 10,000 12 12%
10,000 – 20,000 18 18%
20,000 – 30000 40 40%
30,000 – above 30 30%
TOTAL 100 100%

ANALYSIS:
From the above table 12 customers have income below Rs 10,000,18 customers have
income in the category of 10,000 to 20,000,40 customers have in the category of
20,000 to 30,000 and 30 customers have income above Rs30,000.
CHART-4.4: Table showing the income group of respondents:
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40
35
30
25
20
15
10
0
Below – 10,000 10,000 – 20,000 20,000 – 30000 30,000 – above
INTERPRETATION:
As per the survey majority of the customers belong to the income group of Rs20,000
to Rs30,000
TABLE-4.5
Table showing the brand awareness of consumers
No. Percenta
OfRespondents ge Source: Field
Survey Brand
ANALYSIS: ONIDA 20 20%
BPL 6 6%
From the table is clear that
LG 40 40%
20customers SONY 10 10% prefer Onida and
6customers BPL PHILIPS 14 14% 40 customers
SAMSUNG 10 10%
prefer LG 10 TOTAL 100 100% customers prefer
Sony 14 customers prefer Philips and 10 customers prefer Samsung.
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CHART-4.5
Chart showing the brand awareness of consume
45
40
35
30
25
20
15
10
0
ONIDA BPL LG SONY PHILIPS SAMSUNG
INTERPRETATION: Majority of the customers prefer LG Electronic products.
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TABLE-4.6:
Table showing the factors that influence to purchase LG Products
Factors No. Of Percenta
Respondents ge
PRODUCT FEATURS 3 3%
QUALITY 28 28%
BRAND 20 20 %
DURABILITY 20 20 %
PRICE 12 12%
PACKAGING 6 6%
PRODUCT 11 11%
PERFORMANCE
TOTAL 100 100%

ANALYSIY:
From the above table 3 Customers are influenced by product features 28 customers
are influenced by quality 20 customers prefer brand while Purchasing and another
prefer durabality and 12 customers are prefer price then 6 customers prefer
packaging and 11customers prefer product performance.
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CHART -4.6
Chart showing the factors that influencing to purchase LG products
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
RS Y D TY E G E
TU LI T AN LI IC IN NC
EA A R BI PR AG A
TF QU B RA CK OR
M
C DU PA F
O DU PE
R
PR CT
O DU
PR
:
INTERPRETATION;
Majority of the customers are influenced by quality, brand,durability price and

product performance to purchase the products.
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TABLE-4.7
Table showing consumer purchases decision towards LG products features:
EXCELLENT NO. OF PERCENTAG

RESPONDENTS E
BEST 44 44 %
GOOD 32 32 %
SATISFACTOR 18 18 %
Y
WORST 6 6%
TOTAL 100 100 %
ANALYSIS:
44 Customers say that the products are Excellent 32 customers say that products are
good 18 of them are satisfied and 6customers are unhappy with the products.
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Electronic products
CHART-4.7
Chart showing consumer purchases decision towards LG products features:
50
45
40
35
30
25
20
15
10
5
0
BEST GOOD SATISFACTORY WORST
INTERPRETATION:
Majority of the customers say that LG Products are best and satisfied with LG
Products.
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Electronic products
TABLE -4.8
Table showing expectation from dealers:
Facilities No. Of Percentag
Respondents e
AFTER SALE SERVICE 42 42%
INSTALMENT 6 6%
SCHEMES
PERIODIC CHECKING 8 8%
GURANTEE/ 44 44%
WARANTEE
TOTAL 100 100%
ANALYSIS:
42 Customers except after sale service from the dealers, 6 Customers prefer
Installment Schemes, and 8 customers prefer Periodic Checking, of the product for
Better performance and maintenance,44 Customers prefer GuranteeAndWarrantee
period.
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Electronic products
CHART -4.8
Chart showing expectation from dealers
50
45
40
35
30
25
20
15
10
5
0
CE ES E
VI M I NG TE
R E CK AN
E H E
LES SC CH AR
T W
SA EN DI
C /
R M EE
TE L RI
O NT
AF STA PE RA
IN GU
INTERPRETATION: Majority of the customers prefer after sale service and

gurantee/ warrantee period from dealers.
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Electronic products
TABLE-4.9
Table showing influence of buying motives
Reasons No. Percentag
OfRespondents e
NECESSAR 52 52%
Y
COMFORT 40 40%
LUXURY 8 8%
TOTAL 100 100%
ANALYSIS:
52 customers are motivated to the purchase the products because of necessity,40
customers are motivated by comfort topurchase the products, 8 customers are
motivated by luxuryto purchase the products.
CHART-4.9
Chart showing influence of buying motives
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NECESSARY
COMFORT
LUXURY
INTERPRETATION:
Majority of the customers are motivated by necessity and comfort to purchase the
product
TABLE-4.10
Table showing the customer satisfaction towards LG products
Particulars No Of Percenta
Respondents ge
Highly satisfied 70 70%
Satisfied 25 25%
Neutral 3 3%
Dissatisfied 2 2%
Highly 0 0
Dissatisfied
Total 100 100%
ANALYSIS:
70 customers are satisfied with the LG products. And 25 customers are dissatisfied.3
customers are neutral and 2 customers are dissatisfied with LG Products.
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CHART-4.10
Chart showing the customer satisfaction towards LG products:
80
70
60
50
40
30
20
10
0
d d l d
fe fe tra fe ed
s s u s sf
s at Sa
t Ne s at sa
t
ly s s
gh Di Di
Hi l y
gh
Hi
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Electronic products
INTERPRETATION:
Majority of the customers are satisfied with the LG Products
TABLE 4.11
From whom you have been referred for purchasing LG products
Particulars No of respondents Percentage

Dealers 20 20%
Friends 30 30%
Advertisements 40 40%
Others 10 10%
Total 100 100%

ANALYSIS:
By analyzing above table, We understand 20% of the customers are referred by Dealers,
30% of the customers are referred by Friends, 40% of the customers look into
Advertisements, 10% of the customers are referred by others to purchase LG Products
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GRAPH 4.11
From whom you have been referred for purchasing LG products
45
40
35
30
25
20
15
10
5
0
Dealers Friends Advertsements Others
INTERPRETATION:
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Electronic products
From the above graph, we can understand majority of the customers prefer to purchase LG
Products by advertisements.
TABLE 4.12
Purchasing power of customer based on the cost of the product.
Partculars No of respondents Percentage
5000 25 25%
10000 38 38%
20000 20 20%
30000 17 17%
Total 100 100%

ANALYSIS:
By analyzing the above table, we can understand 25% of the customers purchasing power
is based on the cost of the product is 5000, 38% of the customers purchasing power is
based on the cost of the product is 10000, 20% of the customers purchasing power is based
on the product is 20000, 17% of the customers purchasing power is based on the product is
30000.
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Electronic products
GRAPH 4.12
Purchasing power of customer based on the cost of the product.
35000
30000
25000
20000
15000
10000
5000
0
1 2 3 4
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Electronic products
INTERPRETATION:
From the above graph, we can understand majority of the customers purchasing power is
based on cost of the product is 10000.
TABLE 4.13
How would you like to purchase the LG products based on your finance options
Down payments 30 30%
EMI 45 45%
Cash 25 25%
Total 100 100%
ANALYSIS:
By analyzing above graph, we can understand 30% of the customers purchase the LG
products based on Down payment, 45% of the customers purchase the LG products based
on EMI, 25% of the customers purchase the LG products based on cash.
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GRAPH 4.13
How would you like to purchase the LG products based on your finance options
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Down payments EMI Cash
INTERPRETATION:
From the above graph, we can understand majority of the customers purchase the LG
products based on EMI.
TABLE 4.14
Offers given by the dealers towards purchase of LG Products
DVD 15 15%
GIFTS 40 40%
STABLIZER 25 25%
SPEAKERS 20 20%
TOTAL 100 100%
ANALYSIS:
From the above table it is analyzed that 15% of the customers wish to purchase LG
products because of DVD 40% of the customers purchase LG Products because of gifts
25% prefer stabilizers to purchase LG products and 20% of the customers prefer speakers
for purchase of LG Products.
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Electronic products
GRAPH 4.14
Offers given by the dealers towards purchase of LG Products
Page 60
Electronic products
45
40
35
30
25 Percentage
20 No of respondents
15
10
0
DVD GIFTS STABLIZER SPEAKERS
INTERPRETATION:
From the above graph, we can understand that majority of the customers wish to purchase
LG Products because of gifts.
TABLE 4.15
Opinion about LG products and their services
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Excellent 45 45%
Good 25 25%
Average 20 20%
Poor 10 10%
Total 100 100%
ANALYSIS:
By analyzing above table, we can understand 45% of the customers agree that LG products
and their services are excellent, 25% of the customers saythat LG products and their
services are good, 20% of the customers opine that LG products and services are average,
10% of the customers say that LG Products and services are poor
GRAPH 4.15
Opinion about LG products and their services
50
45
40
35
30
Percenatge
25
No of respondents
20
15
10
5
0
Excellent Good Average Poor
INTERPRETATION:
From the above graph, we can understand majority of the customers agree that LG
products and service are excellent.
CHAPTER - 5
FINDINGS, SUGGESTIONS AND CONCLUSIONS
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FINDINGS, SUGGESTIONS AND CONCLUSIONS
5.1 FINDINGS:
1. Majority of the customers i.e. 44% belongs to the age group of 20-30 years.
2. Majority of the customers i.e. 70% of them are male.
3. Majority of the dealers i.e. 12% prefer Videocon, LG, Samsung and Panasonic.
4. Majority of customers i.e. 40% belongs to the income group of 20000-30000.
5. Majority of the customers i.e. 40% prefer LG electronic products.
6. Majority of the customers i.e. 28% are influenced by quality, brand, durability and
price and product performance to purchase the products.
7. Majority of the customers i.e. 44% prefer to purchase LG electronic products.
8. Majority of the customers i.e. 44% prefer after sales service and gurantee/
warrantee period from dealers.
9. Majority of the customers i.e. 52% are motivated by necessity of purchasing the
products
10. Majority of the customers i.e. 72% are satisfied with LG products.
11. Majority of the customers i.e. 40% get to know about LG products from
advertisements and friends.
12. Majority of the customers i.e. 38% are aware about and come to know about LG
Products through advertisements.
13. Majority of the customers i.e. 45% prefer to purchasing power or ability isRs
10,000.
14. Majority of the customer i.e. 40% prefer to purchase the LG products based on
EMI.
15. Majority of the customer i.e. 45% wish to purchase LG products because of gifts
5.2 SUGGESTIONS
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1. LG Products has got a good brand image in the minds of customers; the company
should try to maintain that same as it is now.
2. Company should come out with innovative products.
3. As from the survey and analysis that LG products does not have the maximum
popularity among the dealers when compared to other brands. It is suggested that
the company should maintain its position in the market. By prefer pre and post
services must research.
4. After brand image, the purchase decisions of the customers are influenced by the
promotional schemes. So the company should introduce new promotional schemes
to capture the maximum sales. Festival discounts, concessions 1 to 2 free services
and repairs demo.
5. The channel of distribution must be improved. Online distributers.
6. After sale service should be given importance so that customer are attracted. 2 to 3
free services, consumer complaints should be attained immediately, intimidation
schemes about any offers given by the company to the customers on time .
5.3 CONCLUSION
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The present project study deals with the “A study on factors influencing consumer
purchases decision towards LG electronic products.” With special reference to Balaji TV
links Challakere Town.
The background of individual customers of LG products, i.e., age, income,
satisfaction level, etc.Overall result of survey have shown that the marketing of LG
products is increasing day by day when compared to other brand it needsto improve it
technology and quality continuously.
The Secrete to stay for a longer time in market is improved quality of good
affective advertisement from time to time.
LG is facing high competition from Samsung and Philips, Regular marketing
research preference and behavior.
BIBLIOGRAPHY
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BOOKS:
MARKETING MANAGEMENT:PhilipKotler, Himalya Publishers
MARKETING RESEARCH : G.C. Beri, Sapanbook house
JOURNALS:
 BUSINESS STANDARD NEWS SERVICE
NEWS PAPERS:
 ECONOMIC TIMES
 BUSINESS LINE

E-SOURCE:
www.lgezbuy.com
www.lgindia.com
QUESTIONNAIRE
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Dear Madam / Sir,
I am a Manjunatha Reddy B student in East point college of higher education
,Bangalore studying final year MBA. As a part of my academic curriculum. I have
undertaken a project work entitled "A study on factors influencing consumer purchases
decision towards LG electronic products" with special reference to Balaji TV Links,
Challakere”.I request you to kindly spare some time in responding to the below given
questions.
Yours faithfully
(Manjunathareddy B
1. Name :
2. Age group :
a) 20 – 30 b) 31 – 40
c) 41 – 50 d) above 50
3. Sex :
a) Male b)Female
4. Educational Qualification:
a) Under Graduate b) Graduate
c) Post - Graduate
5. Occupation
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Electronic products
a) Business b) Professional
c) Employee d) Other
6. Annual income?
a) Below 20000 b) 20,000 – 40,000
c) 40,000 – 60,000 d) 60,000 and above
7. Have you heard about LG products?

a) Yes b) No
8. Do you own LG products ?

a) Yes b) No
9. Which type of LG products. You prefer?

a) Black And White b) Color
10. Which branded products do you prefer?

a) Onida b) BPL
c) LG d) Sony
e) Philips f) Samsung
11. What do you consider while purchasing a LG Products?
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a) Outlook b) Quality Performance
c) Brand Loyalty d) Durability.
e) Price.
12. If yes from whom you came to know?

a) Dealers b) Friends
c) Advertisement d) Others
13. What should be the cost of the products?

a) Rs. 5,000 b) Rs. 10,000
c) Rs. 20,000 d) Rs. 30,000

14. How many installments would you like to purchase the electronic products ?
a) Down Payment b) EMI
c) CASH d
15. With what offers you wish to purchase of LG products?

a)DVD b) SPEAKERS
c) STABLIZER d) With Micro – wave
16. How many years prefer this Products?
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Electronic products
a) 5 Years b) 10 Years
c) 15 Years d) 20 Years
17. What is your opinion about LG products?

a) Best b) Good
c) Satisfactory d) Worst
18. What are the facilities you except from your dealers?
a) After Sale Services b) installment Schemes
c) Periodic Checking d) d) Guarantee and warrantee
19. What are you think of owning LG electronics set is a

a) Necessary b) b) Comfort
c) Luxury
20. Are you satisfied with LG products?
a) Yes b) No
Date: Manjunatha Reddy B

Place: Signature
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Electronic products
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“A study on factors influencing Consumer purchase Decision towards LG

1.2 Theoretical background

Consumer Behavior is the study of individuals, groups, or organizations and the

The words of ProfWalterC.G.and Prof – Paul G.W. It is “the process where by

THE MAJOR FACTORS AND DETERMINANTS OF BUYER BEHAVIOUR

Culture trends have significant implications for market segmentation, product

d) Role And Statuses

1. Age and state in the life cycle.

Marketer of the income-sensitive goods pay constant attention to trends in personal

4. Personality and self – concept

Personality is usually described in terms of such traits as self confidence,

 Believes and attitudes

A belief is the description throughout that a person holds about something.

An “attitude” is a person enduring favorable or unfavorable evaluations emotional

TOTAL CONTRIBUTION TO THE ECONOMY/ SALES

TOP LEADING COMPANY

Colour Television : LG Electronics , Philips, Sony: Sansui, Samsung, BPL,

Cameras \ Camcorders ; Sony, Canon, Olympus, Fuji film. Nikon

 Today india remains a major importer of electronics materials ,

 The consumer electronics segment has grown at a CARG of 10%in the

 To attract foreign investment the government has adopted Chinese style

2.2 COMPANY PROFILE

History of the Company:

This year, LG has emerged as the leader in Colour Televisions, Semi-Automatic

LG Electronics in India turn over

India Production Subsidiary (LGEIL) established

2008: Asynchronous IMT-2000 equipment commercialized; the world's first

2012: World's first synchronous-asynchronous IMT-2000 mobile phone developed; the

2013:Launched 120 Hz full HD LCD TV line, Shipped 15 millionth LG Chocolate Phone,

Chief Executive Officer and Vice Chairman

CEO and Vice

CFO and Senior

Yu Sig Chairman of BOD,

Kun Tai Newly CEO of Hans

2.3 PRODUCT AND DEALER PROFILE

History of LG Electronic Products

During the commencement of 1839 when Alaxander Edmond becqlterre discovered

In 1908 it gave the most remarkable contribution which is basis of modern LG

The first piature demonstration of LG items was given by J. L. Baried in 1928. He

LG electronic products is technically much more complex than LG products. LG

LG electronic products models

43UK6360PTE 49-Inch 4K Ultra HD Smart LED TV

LG 188 L 3 Star Inverter Direct-Cool Single Door Refrigerator

3.LG Washing Machine.

FHT1006HNW LG 6 kg Inverter Fully-Automatic Front Loading Washing Machine

5. LG Home theatre Speaker

LG LH64B-G 4.1 Home Theater System

Working of LG Electronic products

To understand the working and principle of LG products it is essential to have knowledge

Marketing System of Balaji TV Links:

SALES PERFORMANCE DURING LAST FIVE YEARS

3.1 REVIEW OF LITRATURE

According to Srinivasa Rao Kasisomayajula (2013) have written an article entitled “ A

According to Nasrin Sultana and Dr.Sakthivel Murugan undertook a a study on “Consumer

According to vijayalakshmi, S and Mahalakshmi, V (2013) have made on attempt on “ An

3.2 Statement of the Problem:

3.4 Objectives of the study:

3.5 Scope of the study:

3.6 Research Methodology:

SOURCES OF PRIMARY DATA

SOURCES OF SECONDARY DATA

PLANS OF ANALYSIS AND INTERPRETATION