“Analysis of Consumer

Behavior while purchasing

Consumer Durable”
Presented by:
Shawinder Pal Singh “A”-51
Padalia Nandan “B”-34
 Objectives
 To study the Indian Consumer Durable
industry.
 To study the role of consumer while
buying of durables.
 To study the various stages of “Consumer
Decision Making Process”.
 To study how consumer behaves in
different situations before purchasing any
durable product.
 To find the effectiveness of various sales
promotion activities.
Sources of data collection
Primary sources
 Questionnaire

Secondary sources
 Internet
 News papers & magazines
 Reference books
 Research design
Sample area
 Ahmedabad and Gandhinagar
Target sample
 consumers of Ahmedabad and
Gandhinagar
Sample size
 200 respondents (consumers)
Methods used
 Convenience Sampling which is a
technique of Non Probability Sampling.
 Limitations
 Reluctance on the part of the
respondents to provide exact details.
 Lack of sufficient funds to cover the
whole universe as a sample.
 Limited Coverage area for survey, it
was restricted to Ahmedabad and
Gandhinagar City only.
 There were only five major durables
considered in this project
 Industry Profile
Products
 Television
 Refrigerator
 Washing machine
 Air conditioner
 Music system
 Industry Profile (cont….)
Product wise Earning
 Television:colour-Rs.91bn&B&W-
Rs.5bn
 Refrigerator:Rs.39bn
 Air conditioner:Rs.24bn
 Washing machine:Rs.11bn
 Industry Driving factors
 Low price to push volume
 Increasing number of replacement buyers
 aggressive advertising with innovative
marketing schemes
 Easy availability of finance (installment)
 future market growth is likely to come from
small towns and SEC (Social Economic Class)
 KEY ISSUES
 High competition led to price erosion
over the past
 Increased consumer choice has
reduced brand loyalty
 performance of players in the industry
has been characterized by declining
price realizations and shrinking
operating & net margins
 The demand is both seasonal and
cyclical
 Major players
 LG
 Samsung
 BPL
 Whirlpool
 Sony
 National Panasonic
 Godrej
 Videocon
 Onida
 Philips
 Consumer Behavior
 “Consumer Behavior is defined as the behavior
that consumers display in searching for, purchasing,
using, evaluating and disposing of products and
services that they expect will satisfy their needs”
 Consumer behavior focuses on how individuals
makes decisions to spend their available resources
like time, money and effort on consumption related
items.
 That includes what, why, when, where and how
often they buy it, how they evaluate it after the
purchase and the impact of such evaluations on
future purchase and how they dispose of it.
In which way would you like to
pay?

73
by cas h
in ins tallm e nts
127
Which mode of payment do you
prefer?

19 C a sh
79
Cheque

73 C re d it C a rd

D e b it C a rd
29
You shop for electronics items
mostly during….

Fe stiva ls
13
42 Occa sions

S e a sona l
8
137
Any Tim e
which factors do you consider
while purchasing electronics
items?

Bra nd Na m e
28 10 39 Qua lity
P rice
33 43 S che m e s

47 Fe a ture s
Afte r sa le s S e rvice s
Does your buying decision depend
on Schemes?

97
Ye s
103
No
If “yes” in above question then
which type of schemes

P ric e D isc o u n t
7 G i fts
10
2 L u c k y D ra w
B u n d l i n g O ffe r
3 S c r a tc h C a r d
6 5
E x c h a n g e O ffe r
From where do you gather the
information?

T e l e v i si o n
37 56 R a d io
12 N e w sp a p e r
R e ta i l e r
5
49 41 POP
F rie n d s & P e e rs
How many visits of showroom do
you make before buying?

14 8 1
25
2

3
153
M o r e th a n 3
How much time do you take before
making a decision to purchase?
7
26
54
L e ss th a n w e e k

W e e k -F o r tn i g h t

F o r tn i g h t-M o n th

M o r e th a n M o n th
112
 Findings
 Stocks are pilling up at retail outlets due to the
probabilities of implementation of VAT.
 The peak period of the year is third quarter(oct-
dec) which contains many festivals like Diwali,
Christmas etc.
 In Consumer Durables there is a high level of
association of feelings and high involvement
during purchase
 Price and Quality of the product are the main
considering factors at the time of purchase
 Television is the main source of getting
information about a product.
 Price discount and Exchange offers are the
most popular sales promotion activities.
There is an increasing number of
replacement buyers.
 People prefer to purchase through cash or
credit cards.
 Installments are also the popular way to
achieve the sales volumes.
 Most of the people visit the showroom thrice
before any purchase and it takes a week to
fortnight time for purchase.
Consumer follows a particular path for any purchase
which is known as “Decision Making” process which is
shown below:

NEED INFORMATIO EVALUATION OF

RECOGNITIO N SEARCH ALTERNATIVES
N

POSTPURCHASE PURCHASE
BEHAVIOR DECISION
 SUGGESTIONS
 Priceand Quality are the main features of
any product so companies should try to
achieve economies of scale and learning
curves with higher efficiency.
 There are still some areas which are
under developed on which companies
should try to concentrate and develop
some penetrating strategies.
 Giving installments at lower or zero
percent interest rate would help to
increase sales volumes.
 SUGGESTIONS (cont….)
 Give advertisements associating feelings with it to
position the brand name.
 Sales promotions affect the sales volume so giving
effective sales promotions will lead to increase in
sales volumes.
 Price discount and exchange offers are the most
effective schemes so companies should
concentrate on it instead of other schemes which
are less effective.
Thank You

SHAWINDER PAL
SINGH
NICM,GANDHINAGAR