A

DISSERTATION REPORT

ON

STUDY OF CONSUMER SATISFACTION IN WHITE GOODS

PRODUCTS OF LG AND SAMSUNG

SUBMITTED BY

ASHISH KUMAR GUPTA

Batch: 2004--06

INSTITUTE OF TECHNOLOGY & SCIENCE

Mohan Nagar, Ghaziabad—201007

ACKNOWLEDGEMENT
 I would like to take this opportunity to thank all the people who have
directly or indirectly helped me in this dissertation project.

My spell with this great and coveted organization was an experience that
will go a long way in molding my corporate behavior.

I would first like to extend my sincere thanks to Prof Aashif Haleem, my

project guide for providing me with the opportunity of working on this
dissertation project which has helped me a lot in gaining some real (live)
industry exposure. I would also like to thank my project guide Prof Satish
Kumar of Institute of Technology & Science, Ghaziabad for giving me his
expert guidance and encouragement at various stages of this project. Last but
not the least; I would like to thank Prof. Sapna Rakesh for providing me
various insights and guidance both in dissertation project and through out
my PGDM course, which certainly have helped me evolve as a more
matured individual with a more holistic perspective to life.

On a special note, I would like to thanks all the faculty/staff members of the
Institute of Technology and Science, Ghaziabad for all their support
extended to the students at all point of time.

PGDM FINAL PROPOSAL,

DISSERTATION
Name: Ashish Kumar Gupta Home tel. no: 0519-2227256

Date: 17-04-2006 Mobile no: 09350933969

Proposed Title:

A study of consumer satisfaction in white goods products of LG and

Samsung.

Reasons for choice:

Till the early nineties in the area of marketing whole effort was focused on
fine – tuning the four 'P's : product, price, place and promotion. It was only
in the early nineties that a few marketers began realizing that companies
basically existed to serve consumers - and that the consumer did not exist
merely to buy a company's products.

LG and Samsung both are the big name in the white goods product
manufacturing company from South Korea. Both are equally strong, global
company, and more or less with equal presence in Indian market. So it will
be quite rational to compare these two brands.

Issue to be address:

♦ What are the factors that affect the consumer satisfaction?

♦ Determining the factors affecting the consumer satisfaction.

♦ What is the magnitude of those factors regarding the consumer

satisfaction?

Research project aims:

♦ The overall purpose of this work is to analyze the level of satisfaction of

consumer of LG and Samsung.
♦ To develop insight about the factors involved in consumer satisfaction
related to white goods product in the transition phase of globalization.

Objective:

The research will provide an invaluable opportunity to conduct a research

and practicing the theoretical knowledge while perusing PGDM and
examining them against the ground realities.
For me, being ‘Marketing’ specialization
student it will provide me a golden opportunity to gain first hand
information in depth knowledge about consumer behavior and issues related
to consumer satisfaction.

Tentative method of Research:

For this research I am concentrating on developing questionnaire and

retrieving information. Apart from it I will also secondary data, mainly taken
from journals, newspapers and Internet will also be taken into account.

Potential problems:

♦ Reluctant ness of prospective subject to give time for filling

questionnaire.

♦ Financial and time constraints are making me to compromise to some

extent.

Thanking You,

Ashish Kumar Gupta

PGDM (2004-06)
Sec.-B

TABLE OF CONTANT
 Title Page No.
1. Executive Summery ……….……….………..….. 04
2. Introduction

• Consumer Satisfaction ……….………………08

• Home Appliance ……….……….………..…..09

3. LG India ……….……….……….……….…….…12
4. Samsung ……….……….……….……….…….…19
5. Objective of Study ……….……….……….…..…23
6. Research Methodology ……….……….…………24
7. Sampling Procedure ……….……….……….……26
8. Methodology ……….……….……….……….…..27
9. Hypothesis Testing & Statistical Analysis………. 28
10. Observation & Keep Findings ……….……….…..33
11. Conclusion ……….……….……….………..……38
12. Limitations ……….……….……….………..……39
13. Bibliography ……….……….……….……………40
14. Annexure ……….……….……….……….…..….41

Executive Summary

The project A study of consumer satisfaction in white goods products of LG and

Samsung will be based on the comparison between LG and Samsung consumer
satisfaction.

♦ What are the factors that affect the consumer satisfaction?

♦ Determining the factors affecting the consumer satisfaction.

♦ What is the magnitude of those factors regarding the consumer satisfaction?

This project has been structured in the following manner.

This is followed by scope of research and sample design, which

encompasses the following:

HYPOTHESIS:
There is no significance difference between consumer satisfaction of LG and
Samsung’s white goods products.

RESEARCH METHODOLOGY

SCOPE OF RESEARCH AND SAMPLE DESIGN

1. Scope of Research
The scope of research can be classified across two aspects:
(a) Target Market:
The Study is restricted to the Sahibabad and Ghaziabad region. Target
region is one of the industrialized locations and densely populated with
middle class family.
(b) Target Respondents:
The Study is focused to the owner’s of the white goods products of LG and
Samsung.
2. Sample Design

 Universe: Sahibabad, Ghaziabad.

 Population: consumer of white goods movers across Sahibabad and

Ghaziabad in Uttar Pradesh.

  Sample Size: A sample size of 40 has been taken for this study. 20

consumers for LG and 20 consumers for Samsung.

The key determinants of the sampling universe are:
o Consumers feedback
o Self Generated responses
o Existing and well informed Universe

3. Method of hypothesis testing

My sample size was small (n < 30), independent and equally populated
mean. For the hypothesis testing t-test was used as statistical tool. A t-test
can be used for comparison of two population means in order to establish
whether there is any significant difference between two population
means, provided the following conditions are met:

4. Survey and Data Collection:

Primary data was collected through formal structured questionnaires, which
were administered personally. The structured format ensured greater control
over responses and facilitated easy tabulation, editing and analysis.

In last a projection was also maid with the help of Bar diagram of ms office.
 Introduction
Consumer Satisfaction
Marketing is about identifying and satisfying consumer wants and needs.
What we need to think about more carefully is, once we have produced a
satisfied consumer, will it do us any good? Will that make the consumer
more loyal, will it complete the hoped-for progression from prospect through
consumer to advocate for our products or services?
These are questions to which the answer is - probably not. In spite of
the huge amounts of money spent on measuring consumer satisfaction by
companies, market research is failing to predict consumer loyalty.
Many consumer satisfaction surveys are transaction-focused but fail to
examine commitment to the brand and bonding. Satisfied consumers will still
shop around, for all sorts of reasons most of which have little to do with the
products or services that they have been provided with elsewhere. Some of
these may be to do with convenience, some to do with availability, others to
do with policy. We have come across instances where a consumer has almost
begged a company to lower its prices to match those of its competitor. The
consumer was extremely satisfied with the service that the company had
provided over the past year, in this case in financial services. The consumer
was told that their preferred company could not compete on price, as to do so
was outside policy limits. It would seem that not every company is even
interested in retaining its satisfied customers!
 Home appliance
A major appliance is a large machine which accomplishes some routine
housekeeping task, which includes purposes such as cooking, food
preservation, or cleaning, whether in a household, institutional, commercial
or industrial setting. An appliance is differentiated from a plumbing fixture
because it uses an energy input for its operation other than water, generally
using electricity. An object run by a watermill, however, would be
considered an appliance.

Major appliances are differentiated from small appliances because they are
large, difficult to move, and generally fixed in place to some extent. They
may be roughly divided into refrigeration equipment, stoves, washing
equipment, and miscellaneous.
Types of appliances

Appliances are divided into white goods and brown goods.

• Brown goods are typically household electrical entertainment

appliances such as:
o CD and DVD players,
o televisions,
o camcorders
o HiFi and Home cinema

• White goods comprise major household electrical appliances

including:
o air conditioner
o breadmaker
o dishwasher
o dryer
o freezer and refrigerator
o furnace, also known as a central heating boiler
o stove, also known as range, oven, cooking plate, or cooktop
o vacuum cleaner.
o water heater
o washing machine

Brown goods were traditionally finished with wood, or looked like wood, or
bakelite; at least televisions and music systems were. This is now rather rare,
but the name has stuck, even for goods that are unlikely ever to have been
provided in a wooden case (e.g. camcorders). White goods were typically
painted or enamelled white, and many of them still are. The addition of new
items to these categories shows that the categories still serve a purpose in
marketing (consumers rarely use the terms), perhaps because they divide
into traditional gender roles in the house suggesting "gadget/novelty/power"
marketing for brown goods and "practicality/reliability" marketing for white
goods.

This division is also noticeable in the service area of this kind of products.
Brown goods usually require high technical knowledge and skills (which get
more complex with time, such as going from a soldering iron to a hot-air
soldering station), while white goods need more practical skills and "brute
force" to manipulate the devices and heavy tools required to repair them.

Brown goods are almost always serviceable down to "component-level"

(integrated circuits, transistors, etc), whereas in white goods, usually whole
modules (motor, thermostat, controller board) are changed and not repaired.
There is usually a problem with microwave ovens, which are considered
white goods, because these sell alongside refrigerators and dishwashers, but
microwave ovens contain complex electronic boards (the clock and
controller) which white-good servicemen refuse to repair (as they don't have
the training or tools required to do so). Some brands consider microwave
ovens white goods, and send whole boards for replacement, and some
consider microwaves to be like brown goods, and have them repaired by
such technicians. Personal care products (electric shavers and depilators), are
considered a separate line, and usually are not serviced, but completely
exchanged.
 LG India

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 and 1/2 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 saw the roll out of the first locally
manufactured Direct Cool Refrigerator from the plant at Greater Noida.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune,

Maharashtra that commences operations in October this year. Covering over
50 acres, the facility manufactures Color Televisions, Air Conditioners,
Refrigerators, Washing Machines Microwave Ovens Color Monitors and
GSM phones.

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 eight years, a premium brand positioning in
the Indian market and is today the most preferred brand in the segment.

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 'PN 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 R&D departments that
give consumers a healthier environment to live-in.

The year 2001 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 2001 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.

In Colour Televisions having set the sales target of one million units of
Color Televisions for 2002, LG has already achieved the one million mark in
the month ahead of its target. In 2003, LG has emerged as the leader in
Colour Televisions, Semi Automatic Washing Machines, Air Conditioners,
Frost-Free Refrigerators and Microwaves Ovens. In the year 2004, LGEIL
achieved unprecedented sales efficiency both in Direct Cool and Frost Free
segment and sold more than 1 million units of refrigerators outperforming
industry expectations.

LG Electronics India is the fastest growing company in the consumer

electronics, home appliances and computer peripherals industry today. LG
Electronics is continually providing superior technology products & value
for money to more than 50 lakh households in India.

The company has achieved a turnover of Rs 6500 crore in 2004 and aims to
touch a turnover of 10 Billion US Dollars by 2010 and commands an
enviable position in the GSM mobile phone market. It has already started
manufacturing of GSM phones in its plant at Pune.

LG India has also been taking on a slew of initiatives as a part of Corporate

Social Responsibility. LGEIL is proud to have adopted about 24 villages
around our Greater Noida facility. LG extends Free Medical Care, which
comprises of free check ups and a free distribution of medicines on a daily
basis. LGEIL is also generating self-employment opportunities for the
people in the form of tailoring, knitting etc. in addition to all this, LG also
sends veterinary doctors regularly to these villages. Besides all this, LG
India is one of the very few companies in the country that has an internal
Energy, Environment, Safety and Health Department. This function caters to
activities like Energy Conservation, Environmental Issues, Work Place Fire
and Safety as well as Occupational Health for the benefit of the employees.

Products
 Air conditioner
 Microwave Oven
 Vacuum cleaner
 Washing Machines
 Refrigerator

Air conditioner
 Washing Machines

 WD-14124RD - Front Loader Washing Machine

MRP :Rs 41290
List :Rs 39790

 WD-10155F - Front Loader Washing Machine

MRP :Rs 29990
List :Rs 28590

 WD-10150F - Front Loader Washing Machine

MRP :Rs 28990
List :Rs 27590

 WD-10165TP - Front Loader Washing Machine

MRP :Rs 28500
List :Rs 26490

 WD-10160TP - Front Loader Washing Machine

MRP :Rs 27500
List :Rs 25490

 WD-15265TP - Front Loader Washing Machine

MRP :Rs 24990
List :Rs 24590

 WD-15180TP - Front Loader Washing Machine

MRP :Rs 23990
List :Rs 23590

 WD-85290NP - Front Loader Washing Machine

MRP :Rs 20990
List :Rs 20590
 WD-85260NP - Front Loader Washing Machine
MRP :Rs 19990
List :Rs 19590
Microwave Oven

 MS-2331BR - 23L Solo, Dial and Tactile Button, 320mm turntable

MRP : Rs 6490
List : Rs 5790

 MS-2342AE -23 Ltrs ,Epoxy Coated, 3 Auto Cook Menus and 4 Auto Defrost
Menus
MRP : Rs 5490
List : Rs 5190

 MS-1921HE - 19L,1000W Microwave Ovan

MRP :Rs 3890
List :Rs 3690

 MS-1911HE - Solo Microwave

MRP :Rs 3590
List :Rs 3390
 Refrigerator

 GR-F268JTT - Three Door Bottom Freezer

MRP :Rs 130000
List :Rs 120000

 GR-P267FTB -Home Bar

MRP :Rs 125000
List :Rs 112500

 GR-L207DTZ -Ice and Water Dispenser

MRP :Rs 85000
List :Rs 79000

 GR-B207DBC -Dios Side by Side

MRP :Rs 59990
List :Rs 55000

 GL-263TMX -SFF Technology

MRP :Rs 15500
List :Rs 14600

 GL-263DM. - SFF Technology

MRP :Rs 13900
List :Rs 13100

 GL-233TM. - SFF Technology

MRP :Rs 12400
List :Rs 11900

 GL - 233DM - SFF Technology

 MRP :Rs 11800
List :Rs 11100

Samsung India is the hub for Samsung’s South West Asia Regional
operations. The South West Asia Regional Headquarters looks after the
Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan
besides India. Samsung India which commenced its operations in India in
December 1995, today enjoys a sales turnover of over US$ 1Bn in just a
decade of operations in the country.

Headquartered in New Delhi, Samsung India has a network of 19 Branch

Offices located all over the country. The Samsung manufacturing complex
housing manufacturing facilities for Colour Televisions, Colour Monitors,
Refrigerators and Washing Machines is located at Noida, near Delhi.
Samsung ‘Made in India’ products like Colour Televisions, Colour Monitors
and Refrigerators are being exported to Middle East, CIS and SAARC
countries from its Noida manufacturing complex.

Samsung India currently employs over 1600 employees, with around 18% of
its employees working in Research & Development.

GROWING TO BE THE BEST:- Samsung India aims to be the ‘Best

Company’ in India by the Year 2006. ‘Best Company’ in terms of both the
internal workplace environment as well as the external context in which the
Company operates. Samsung aims to grow in India by contributing to the
Indian economy and making the lives of its consumers simpler, easier and
richer through its superior quality products.

“Our aim is to gain technological leadership in the Indian marketplace even

as our goal is to earn the love and respect of more and more of our Indian
consumers.”

Mr S.H. Oh, President & CEO

Samsung South-West Asia Regional Headquaters
Manufacturing:

Samsung’s state of the art highly automated manufacturing facilities are

located at the Company’s sprawling Noida Complex. Enjoying the Number
1 position amongst all Samsung subsidiaries in terms of productivity and
having been ranked as the subsidiary with the ‘Best Quality System’,
Samsung India prides itself for its Manufacturing Value Innovation.

The manufacturing capacities of the Samsung products manufactured in

India (as of Year 2004) are :
PRODUCT CAPACITY DETAILS
CTV 1.5 million Curved & Flat TVs
Colour Monitor 1.5 million CRT & TFT LCD Monitor
Refrigerator 0.6 million Frost-free and Conventional Refrigerators
Washing Machine 0.5 million Fully Automatic and Semi Automatic
AC 0.4 million Window and Split ACs

Samsung India is working with and contributing to the development of the

domestic component industry in the country. The Company is working with
its partners to improve their product quality and processes. Thus, Samsung
vendors are sent to different Samsung subsidiaries to meet the Samsung
overseas vendors in order to benchmark their own processes. Samsung is
also training its vendors on eco-partnership so that the components
manufactured by them are ‘eco friendly’ as per ROHS norms.

Samsung products manufactured in India currently enjoy an average

localization level of over 50%.

Awards:

 Manufacturing Value Innovation – Gold Award for Productivity,

Cost, Speed at the Visual Display Plant – November 2004.
 Management Innovation Award – December 2004
 Samsung Quality Award – November 2004 for Colour Television &
Colour Monitor Plants
 Samsung Innovation Award – November 2004 for Refrigerator Plant.
From being a virtually unknown entity in the Year 1995, brand Samsung
today enjoys an awareness of over 95% and a positive opinion of around
80% in the country today (source: BAS 2004). Sports Marketing and
Entertainment Marketing have been the key elements of the Company’s
Brand Marketing Strategy. Samsung has very successfully leveraged its
association with Cricket and Cinema in the form of ‘Team Samsung’ and
‘Samsung IIFA Award’. Samsung India sponsored the high profile
‘Samsung Cup’ Indo-Pak Cricket Series in the Year 2004. ‘Team Samsung’
or Samsung’s team of celebrity cricketers endorsing Samsung products has
been successfully used to create more awareness for Samsung products.

To further reinforce its lifestyle positioning, Samsung has been associated

with the Lakme India Fashion Week (LIFW) for its Mobile Phones. The
Company used the LIFW-2005 as a platform to launch its D-500, World’s
Best Mobile Phone in the Indian market.

Samsung considers 'After Sales Service' as a key differentiator for Samsung

products. In order to deliver prompt and easily accessible service, Samsung
India has set up a widespread network of company owned as well as
Authorized Service Centers to service its consumers. The Samsung Service
Plazas, as the Company owned Service Centres are called, are a first in the
industry.

To satisfy the needs of its Home Appliance consumers, Samsung has set up
state-of-the-art Home Appliance Service Centres in 19 cities that are
equipped with latest testing and measuring equipments for servicing only
Home Appliance products.

Speed, Smile, Sure’ is the motto for Samsung Service, as the Company
seeks to satisfy more and more of its consumers with prompt and accurate
service. The company adheres to a turnaround time of 24 hours within the
city where the Samsung Service Centre is located. A Service Helpline
number 30308282 gives access to Samsung Service throughout the country.
Samsung India organises a Free Service Camp on an All India basis, every
year, for proactively reaching out to consumers and servicing their Samsung
products.
10 second to loose a consumer, 10 years to gain them back’ forms the
guiding principle for Samsung Service Team as it strives to satisfy the
growing expectations of Indian consumers.

Products
 Microwave Oven
 Refrigerator
 Air Conditioner
 Washing Machine

Refrigerator

Direct Cool

RA20KV Premium , 195Litres

SilverNano™ Technology, Big Bio-Fresh Zone
Bar Handle , Rs. 9,500

RA20IV Economy Plus, 195 Ltrs.

Bar Handle,Adjustable Wire Shelves
Dial Temperature Control , Rs. 9,100

RA18KV Premium ,180 Ltrs.

Big Bio-Fresh Zone, Bar Handle
Adjustable Wire Shelves, Rs. 8,800

RA18IV Economy Plus, 180 Ltrs.

Bar Handle, Adjustable Wire Shelves
Dial Temperature Control, Rs. 8,500

OBJECTIVE OF STUDY
Professional Objectives

The project A study of consumer satisfaction in white goods products of LG and

Samsung will be based on the comparison between LG and Samsung consumer
satisfaction.

♦ What are the factors that affect the consumer satisfaction?

♦ Determining the factors affecting the consumer satisfaction.

♦ What is the magnitude of those factors regarding the consumer satisfaction?

Personal Objective

Personal objectives in this project are to gain experience of working in the market and
interacting with people and knowing their views as consumer. Enhancing the indirect
learning about the market and consumer behaviour is another objective which will be
helpful further in future in the field of marketing.

HYPOTHESIS:

There is no significance difference between consumer satisfaction of LG and

Samsung’s white goods products.
 RESEARCH METHODOLOGY
SCOPE OF RESEARCH AND SAMPLE DESIGN

1. Scope of Research

The scope of research can be classified across two aspects:

(a) Target Market:

The Study is restricted to the Sahibabad and Ghaziabad region. Target

region is one of the industrialized locations and densely populated with
middle class family.

(b) Target Respondents:

The Study is focused to the owner’s of the white goods products of LG and
Samsung.
2. Sample Design

 Universe: Sahibabad, Ghaziabad.

 Population: consumer of white goods movers across Sahibabad and

Ghaziabad in Uttar Pradesh.

 Sample Size: A sample size of 40 has been taken for this study. 20

consumers for LG and 20 consumers for Samsung.

The key determinants of the sampling universe are:

o Consumers feedback
o Self Generated responses
o Existing and well informed Universe
 Sampling procedure

Single stage Non-random convenience sampling was undertaken to

obtain information promptly and inexpensively. The sample size
of 40 was taken. The respondents were contacted mainly at their
home and the questionnaire was administered by me in person
and the doubts regarding questions were cleared.

Method of Analysis and Interpretation

Microsoft Office was used during project for analyzing the results and
preparing graphs, which were prepared especially for the survey, Microsoft
Word was used for designing the Questionnaire and Microsoft Excel was
used for analysis of data gathered. Data was recorded on regular basis and
the results were obtained at the end from which inferences were drawn. In
order to minimize the error in result and obtaining result in tabular and
systematic manner, I had used computer.

Method of hypothesis testing

My sample size was small (n < 30), independent and equally populated
mean. For the hypothesis testing t-test was used as statistical tool. A t-test
can be used for comparison of two population means in order to establish
whether there is any significant difference between two population
means, provided the following conditions are met:
1. Each population is approximately normally distributed.
2. Sample size taken from each population is small (n < 30), but
sample do not have to be equal in size.
3. The two samples are independent (unrelated).
 METHODOLOGY

 Survey and Data Collection:

Primary data was collected through formal structured questionnaires,
which were administered personally. The structured format ensured
greater control over responses and facilitated easy tabulation, editing
and analysis.

Steps involved in this process are as follows:

 First step was the literature review about the research topic and
then the preliminary proposal was prepared. For all this inter
net, news paper was explored.

 The next step involved was selecting research topic and

assessing the feasibility of topic regarding research and
developing hypothesis for which I contacted my menter Prof.
Satish kumar and Prof. Ashif Haleem.

 Then, questionnaire for the interview was prepared. It was the

most critical and important phase. The whole research and it
relevance was based on the right questionnaire.

 The next step was to interview.

 Then, all data gathered was sorted, compiled and arranged for
analysis.

 The next step was testing the hypothesis. Since sample size was
small independent so I chose the t-test for testing the
hypothesis.
 Hypothesis Testing and Statistical Analysis

HYPOTHESIS:

There is no significance difference between consumer satisfaction of LG and

Samsung’s white goods products.

Steps involved in t- test

1. The degrees of freedom is sum of the degrees of freedom for

each sample. Where is the sample size of population 1
(Samsung) and (LG) is the sample size from population 2, the
number of degrees of freedom would be expressed as :

2. The two standard deviations and calculated from the two

samples of and respectably are pulled together to form a single
estimate of the population standard deviation where, is
calculated as
3. Then the statistic t is calculated by the following formula:

Where,

= mean of the first sample.

= mean of the second sample.

= size of the first sample.

= size of the second sample.

= pooled estimate of population standard deviation as calculated

above.
This calculated t-statistics is compared with the critical t score from the
table at given level of significance and degrees of freedom
and a decision is made whether to accept or reject a null hypothesis.
 Response Response
of of LG
Item Samsung consumers
consumers (Y)
(X)
1 20 -3 9 24 2 4
2 23 0 0 22 0 0
3 21 -2 4 22 0 0
4 25 2 4 24 2 4
5 27 4 16 24 0 0
6 26 3 9 17 5 25
7 20 -3 9 22 0 0
8 23 0 0 17 5 25
9 20 -3 9 21 -1 1
10 25 2 4 22 0 0
11 27 4 16 24 2 4
12 22 -1 1 23 1 1
13 20 -3 9 25 3 9
14 23 0 0 22 0 0
15 23 0 0 25 3 9
16 20 -3 9 17 5 25
17 24 1 1 23 1 1
18 27 4 16 22 0 0
19 25 2 2
20 20 -3 9

∑ X=460 ∑Y =396
∑ ∑
=129 =112

SAMSUNG: LG.

∑x

= 460 = 23 = =
20
 Conclusion:

The critical t-score find from the table for a two-tailed test with α =0.05 and
df =36 is given as 1.96.
Since our calculated value of t = 1.426 is smaller than critical t-value of
1.96.

So the null hypothesis is accepted and it is conformed that There is no

significance difference between consumer satisfaction of LG and Samsung’s
white goods products.
 OBSERVATIONS AND KEY FINDINGS

1. Complaint handling of the brand.

18
16
14
12 Excellent
very good
10
Good
8
Fair
6
Poor
4
2
0
LG SAMSUNG

Inferences drawn:
By the above bar diagram it is clear that the complaint handling of both the
brand is quite satisfactory. Most of the consumers using Samsung consider
that the brand’s complaint handling is excellent & very good. On the other
hand LG consumers are also quite satisfied with the service provided.
2. Did the consumers find in product what they were looking for?

12

10

8
LG
6
SAMSUNG
4

0
1 2 3 4 5 NOT AT
EXECTLY ALL

Inferences drawn:
Most of the consumers of both the brand have responded positively but consumers of
Samsung are more satisfied with the features of their white goods product they are using.
Few consumers of LG are not satisfied with features of the product they are using.

3. Consumers using the brand since.

9
8
7
6
5 LG
4 SAMSUNG
3
2
1
0
5 Yr.or 3 Yr. or 2 yr. or 1 Yr. or 6 months
above above above above or above
4. Number of white goods product consumers are using.

SAMSUNG

One
Two
3 or more

LG

0 5 10 15 20

5. Consumers’ buying intention in next six month regarding the brands.

14

12

10
Definotely will buy
8 Probably will buy
Undecided
6
Probably will not buy
4 Definetly will not buy

0
LG SAMSUNG

Inferences drawn:
If we see the bar diagram it is clear that there is very less consumer loyalty in the white
goods product and the consumers are supposed to analyze every possible option and they
are indecisive about their further buying. A bunch of consumer is definitely not going to
buy the Samsung and LG products. On the other hand a substantial bunch of consumer is
definitely going to purchase the LG product.

4. Perception of consumers regarding ‘white goods products of this brand as

value for money’.

12

10

8
LG
6
SAMSUNG
4

0
1 Exactly 2 3 4 5 Not at
all
7. Consumers’ experience with the brand.

12

10

6 SAMSUNG
LG
4

0
Excellent Very Good Fair Poor
good

Inferences drawn:
If we see the Bar diagram it is evident that the overall experience of LG and
Samsung’s consumers satisfaction is average or more than average but
Samsungs consumers experience with the product is excellent while the
none LG consumer has responded as excellence experience.
 CONCLUSION

Before I conclude I would like to share the key learning I derived from this project. This

has been enumerated below as follows: -

 The learning specific to this project has been that it provided us with a real
exposure to the market of white goods and its consumers level of satisfaction.

 People have different personalities and different attitudes and therefore good
communication is required to approach the consumers.

 Gaining in-depth knowledge about the consumers behaviour and white goods
business in India as-well-as consumer loyalty.
 LIMITATIONS

Limitations of the survey and research conducted are as follows:

 The sample size chosen for interview was small in size (30). If the
sample size would have been large, the study will be more accurate and
near to reality as the confidence limit will be more.
 Another limitation was the scope of research is limited to Shahibabad and
Ghaziabad only, as personal interview couldn’t be conducted in more
areas due to inconvenience.
 The questionnaire prepared for interviews has limitations also; the
questionnaire can’t cover the whole complexity of the topic. The
questionnaire covers some important points only.
 BIBLIOGRAPHY

The majority of the project has been primarily our own research, findings
and endeavor. Wherever the support of the Internet and books has been
taken, the name of sites and books used are as mentioned below: -

Business research methodology

C.R. Kothari

Marketing research An applied orientation ( 4th edition) --

Naresh K. Malhotra

Marketing Management (11th edition)

Philip Kotlar

www.lgindia.com

www.samsung.com

www.google.co.in
Annexure
 QUESTIONNAIRE FOR THE STUDY OF CONSUMER
SATISFACTION IN WHITE GOODS

Name of the respondent: ___________________________ Brand using: Samsung / LG

Mob / Telephone no:-
Location:

1. How do you see the compliant handling of the brand?

Excellent Very Good Good Fair Poor

1 2 3 4 5

2. Did you find what you were looking for?

Exactly Not at all

1 2 3 4 5

3. Since when have you been using this brand?

Last 5 years Last 3 years Last 2 years Last 1 year Last 6 months
or above or above or above or above or above
1 2 3 4 5

4. How many white goods product of this brand you are using?

Three or more Two One

1 2 3

5. Do you intend to buy a new white goods product of this brand with in next six
months?

Definitely Probably Undecided Probably will Definitely will

will buy will buy not buy not buy
1 2 3 4 5

6. Do you think the products of this brand are value for money?

Exactly Not at all

1 2 3 4 5

7. How is your experience with this brand?

Excellent Very good Good Fair Poor

1 2 3 4 5