Z Score,T Score, Percential Rank and Box Plot Graph
A Study on Students Buying Behavior towards Laptops
1. 1
A
Project report
On
“A study on Student’s Buying Behaviour towards
laptops”
In partial fulfillment for the requirements of project study course in two
year full-time masters of business administration
Submitted to:
Prof. Parnika Jha
Submitted by:
Shashank Tripathi (112)
Batch 2011-2013
S. K. Patel Institute of Management & Computer Studies
Gandhinagar
April, 2013
2. 2
CERTIFICATE
This is to certify that Mr. Shashank Tripathi, student of S.K Patel Institute of Management
and Computer Studies, have successfully completed his Grand Project on “A study on
Student’s Buying Behaviour towards laptops” in partial fulfillment of curriculum
requirements for the award of MBA degree under Kadi Sarva VishwaVidhyalaya University.
This is their original work and has not been submitted elsewhere.
____________________
Prof.Sandhya Harkawat
Comprehensive Project Incharge
Date: _________________
Place: Ahmedabad
____________________
Prof. Bhavin Pandya
Director
Prof. Parnika Jha
Internal Project Guide
3. 3
DECLARATION
I, Shashank Tripathi (112) student of Semester IV in S.K Patel Institute of Management and
Computer Studies, hereby declare that I had successfully completed this project on “A study
on Student’s Buying Behaviour towards laptops” in the academic year 2011-2013.
I declare that this submitted work is done by me and to the best of my knowledge; no such
work has been submitted by any other person for the award of degree or diploma.
I also declare that all the information collected from various secondary and primary sources
has been duly acknowledged in this project report.
Shashank Tripathi
4. 4
ACKNOWLEDGEMENT
I hereby convey my deep acknowledgement to all those who made it possible for me to
complete this project, by extending their support and continuous co-operation.
I would like to acknowledge the consistent encouragement extended by Dr. Bhavin Pandya,
Director of S.K.Patel Institute of Management & Computer Studies.
My sincere gratitude to Professor Parnika Jha whose constant guidance, efforts, heartfelt
support, suggestions and consideration helped me in the successful completion of this project.
Finally, I would like to thank my friends and SKPIMCS batch mates without whom this
dissertation work would not have been successfully completed.
5. 5
ABSTRACT
A customer is anyone makes regular purchases from a company or a store, while a consumer
is one who makes any transactional decisions of economic nature including buying of goods
and services. Consumer can be both personal consumer who buy for his or her own person
and family consumption and organizational consumer which could include nongovernmental
organization, political groups, companies and governments. Consumer behavior is the study
of how individuals, group, and organizations select, buy, use, and dispose of goods, services,
ideas, or experiences to satisfy their needs and wants. Buying Behavior refers to the buying
behavior of the ultimate consumer. Buying Behavior is the decision processes and acts of
people involved in buying and using products which includes social and mental processes.
This study was undertaken in order to find out the factors influencing consumer’s purchase
decision of laptop. And the findings of this first objective will provide the basis for the
second research objective in the study. Secondly, it is intended to find out whether there are
differences among consumer groups of a laptop company with respect to the importance
given to the factors influencing consumers’ laptop purchases. The customer base of a
company consists of three groups of consumers stayers (those who had never switched from a
previous brand), satisfied switchers (those who switched for reasons other than
dissatisfaction) and dissatisfied switchers (those who switched because they were dissatisfied
from their previous brand).This study, thus looks into the understanding of the attitudes of
these three different groups of customers which plays an important role when implementing
effective and feasible retention and loyalty strategies. Furthermore, it is also crucial to
understand whether there are differences among these groups in terms of the factors affecting
their future laptop purchases when they are upgrading their laptops.
6. 6
Executive Summary
Laptops are an integral part of today’s student’s study kit. And with a plethora of
brands inundating the market, each trying to differentiate itself from the other in terms of
features, style, etc and trying to entice the buyer with attractive offers, the decision of
zeroing on the laptop has become a gruesome exercise for the student. The very nature of
the product encourages the prospective buyer to go through all the stages of a typical
buying process. That is the reason that i have taken up to study the consumer buying
behaviour for laptop buying.
The primary objective of the project can be satisfied progressively by satisfying
the secondary research objectives which are determining the factors, mapping the
customer profile & perceptual mapping. A primary research based on questionnaires and
analytical processing of the response will be conducted to fulfill the research objectives
wherever the secondary data is not available.
7. 7
Table of Content
Particulars Page No.
CHAPTER 1 INTRODUCTION 8
1.1 INTRODUCTION 8
1.2 THE IMPORTANCE OF CONSUMER BEHAVIOUR 8
1.3 THE REASON FOR INTRODUCING A MODEL OF
CONSUMER BEHAVIOUR
9
1.4 THE MAJOR INFLUENCE FACTORS ON
CONSUMER BEHAVIOUR
9
1.4.1 CULTURAL FACTORS 9
1.4.2 SOCIAL FACTORS 10
1.4.3 PERSONAL FACTORS 10
1.4.4 PSYCHOLOGICAL FACTORS 11
1.5 THE BUYING DECISION PROCESS 12
1.6 THE IMPORTANCE OF BUYING 14
1.7 BRAND AWARENESS AND ITS EFFECT ON
CONSUMER BEHAVIOUR
15
1.8 PERCEIVED QUALITY AND ITS EFFECT ON
CONSUMER BEHAVIOUR
16
1.9 BRAND ASSOCIATION AND ITS EFFECT ON
CONSUMER BEHAVIOUR
18
1.10 BRAND LOYALTY AND ITS EFFECT ON
CONSUMER BEHAVIOUR
19
CHAPTER 2 LITERATURE REVIEW 21
CHAPTER 3 RESEARCH METHODOLOGY 23
3.1 RESEARCH OBJECTIVE 23
3.2 SCOPE OF STUDY 23
3.3 RESEARCH DESIGN 23
3.4 SAMPLE DESIGN 24
3.5 LIMITATIONS 24
CHAPTER 4 DATA ANALYSIS & DATA
INTERPRETATION
25
CHAPTER 5 CONCLUSION 55
CHAPTER 6 FINDINGS 56
CHAPTER 7 LIMITATIONS 57
CHAPTER 8 RECOMMENDATIONS 58
CHAPTER 9 ANNEXURE 59
CHAPTER 10 BIBLIOGRAPHY 62
8. 8
CHAPTER-1
INTRODUCTION
1.1.Introduction
This provides a context for the research topic. It begins with the demonstrate of the definition
of consumer behaviour as well as a model of consumer behaviour. Then it will illustrate the
different factors that influence the consumer behaviour as well as the buying decision process
in order to understand the essence of consumer behaviour. After that, the emphasis will be on
brand field. The effect of brand on consumer behaviour will be discussed based on its four
components in order to analyze how brand is very important in the consumer decision-
making process therefore influencing the consumer behaviour.
1.2.The importance of consumer behaviour
The definition of consumer behaviour
There is no doubt that the customer is essential for the firm in the marketing field. Wllkie
(1994, P.14) stated that “consumer behaviour is the mental, emotional, and physical activities
that people engage in when selecting, purchasing, using, and disposing of products and
services so as to satisfy needs and desires”. He further explained that there are seven keys to
consumer behaviour, which are:
1) Consumer behaviour is motivated;
2) Consumer behaviour includes many activities;
3) Consumer behaviour is a process;
4) Consumer behaviour varies in timing and complexity;
5) Consumer behaviour involves different roles;
6) Consumer behaviour is influenced by external factors;
7) Consumer behaviour differs for different people.
Moreover, Blackwell, Miniard, and Engel (2001, p6) defines “consumer behaviour as those
acts of individuals directly involved in obtaining and using economic goods and services
including the decision processes that precede and determine these acts”. That is to say,
consumers behaviour involve with the mental procedure and physical acts towards the
multiply goods and services. In addition, in Arnould, Price and Zinkhan’s (2004, p23) point
of view, “consumer behaviour is people acquiring, using, and disposing of products, services,
ideas, or experiences”. In other words, consumer behaviour includes several physical and
mental activities stages refer to the products or services.
9. 9
1.3.The reason for introducing a model of consumer behaviour
According to these definitions, we can say that consumer response is often the ultimate test of
whether or not a marketing strategy will succeed. As Kotler (2000) said the most important
thing is to forecast where customers are moving, and to be in front of them. Thus, the more
understanding of the consumer behaviour, the more successful marketing strategies will be
made (Solomon et al, 2002). In earlier times, marketers could understand consumers well
through the daily experience of selling to them. However, as firms and markets have grown
in size, many marketing decision makers have lost direct contact with their customers and
must now turn to consumer research.
In order to study consumers we need to learn more about consumer buying behaviour, such
as who buys? How do they buy? When do they buy? Why do they buy? Therefore, the
research of customers’ behaviour is necessary and significant. A model of consumer buying
behaviour is a representation of the phenomena it is intended to designate-that is, it specifies
the elements and represents the nature of the relationships between them (Blackwell,
Miniard, and Engel, 2001). “It is a frame of reference that guides market researchers through
marketing problems and its explanations can gain in ability to predict outcomes under
varying sets of circumstances” (Kollat et al,1970, p4). Apparently consumers could be
affected by marketing stimuli such as price, place, promotion and environmental stimuli
when they move on step by step in the decision process towards a final buying decision, and
the fact is consumers always may say one thing but do another because a variety of
influences are the cause of certain actions undertaken by consumers. Thus, this study has to
focus on Kotler’s Model since it is most relevant to the purpose of this study. Moreover,
some of the references here appear to be dated, but they are used here because they are very
influential in development of consumer behaviour theory and knowledge.
1.4.The Major Influence Factors on Consumer Behaviour
According to Kotler’s (2003) model, consumer purchases are influenced strongly by cultural,
social, personal and psychological characteristics. Generally speaking, marketers cannot
control such factors, but they must take them into account because these factors affect how
individual consumers react to the different stimuli that firms send out through their
communication. The marketer’s task is to understand what happens in the buyer’s
consciousness and the buyer’s decision making process. Thereby, this section will focus on
demonstrating the factors affecting buying behaviour according to Kotler (2003).
1.4.1.Cultural Factors
Cultural factors exert deep influence on consumer behaviour. Culture is the basis for a
person’s wants and behaviour (Kotler, 2003). Culture refers to “a set of values, ideas,
artefacts and other meaning symbols that help individuals communicate, interpret and
evaluate as members of society” (Blackwell, Miniard, and Engel, 2001, p362). It affects the
consumers shaping the attitudes, feelings, biases, and opinions, which enable marketers to
10. 10
interpret or even predict the reaction of consumers to specific marketing strategies. Thus, it is
vital for firms to be aware of culture, even its trends and changes. (Baker,2000) and gives rise
to new marketing opportunities and threats ( Lancaster and Massingham, 1993).
1.4.2.Social Factors
A consumer’s behaviour is also influenced by social factors, such as reference group, family,
and social roles and status (Kotler, 2003). Because these social factors can strongly affect
consumer response, firms must take them into account when designing their marketing
strategies.
For one thing, reference group has significant influences on the individual’s product and
brand purchases. “Reference group are groups that serve as direct or indirect points of
comparison or reference in forming a person’s attitudes or behaviour” (Kolter 2003, p196).
Indirect or direct reference groups include family, friends and neighbours. Bearden and Rose
(1990) pointed out that reference group not only lead an individual to new behaviours but
also have effect on individual’s attitude and self-concept, which in turn influence actual
brand preference and choice. Therefore, in other words, references lead the market trends
(Kotler, 2000).
For another thing, family members can strongly influence buyer behaviour. Kotler (2003,
p179) pointed out that “family influences one’s orientations toward politics and economics
and a sense of personal ambition, self-worth and love”. Even if the buyer no longer interacts
very much with his or her parents, the family can still significantly influence the buyer’s
behaviour. Walters and Paul (1970) suggested that the importance of the family arises for two
reasons: many products are purchased by multiple consumers acting as a family unit; even
when an individual makes purchases, other members of the family may heavily influence the
buying decision of the individual.
What is more, the person’s position in each group can be defined in terms of both role and
status. A role consists of the activities that people are expected to perform according to the
persons around them, which influence the person’s buying behaviour (Kotler,2000). Each
role carries a status reflecting the general esteem given to it by society. People often choose
products that show their status in society. For example, the role of a manager has more
statues than the role of student, as a manager, the person will buy the kind of product that
reflects her of his role and status.
1.4.3. Personal Factors
A buyer’s decision is also influenced by personal characteristics such as the buyer’s age,
occupation, economic situation, lifestyle and personality and self-concept (Rowley, 1997).
The age of the buyer is one of the major factors influencing individual’s purchases(Cole and
Siva, 1993). People in the different ages have different needs. A brand must be
11. 11
understandable to the age group to which the product or service is targeted and should be
delivered through a medium used by members of that group (Wells et al, 1992).
On the other hand, a person’s occupation can affect the goods and services bought.
Occupational groups usually have above average interest in the products and services, which
are related to their occupation (Kotler, 2003). Therefore, the marketers need to consider the
right occupational groups as the production and marketing target. A company can even
specialise in making products needed by a given occupational group. For example, computer
software firms will design different products for brand managers, accountants, engineers,
lawyers and doctors.
Moreover, “lifestyle is a person’s pattern of living as expressed in his or her activities,
interests and opinions” (Kotler, 2003, p183). People coming from the same subculture, social
class and occupation may have quite different lifestyles and it can vary significantly in
different countries. By knowing the target consumers’ lifestyle will help in product
development and advertising.
Equally important, economic circumstances greatly affect product choice. Since the income
is not only the consideration factor for the consumption demand, but also the determinants
factor for the preference, companies need to continuously track the trends of the personal
income over the target potential consumers towards the designed product (Baker, 1996).
Therefore, income level is a useful variable to explore the consumer buying behaviour and
brand decision while buying a product.
Different people have distinct personalities that influence their buying behaviours and certain
brand choices (Kolter, 2003). Personality refers to the unique psychological characteristics
that lead to relatively consistent and lasting responses to one’s own environment (Kolter,
2003). “It is described in terms of such traits as self-confidence, dominance, autonomy,
deference, sociability, defensiveness, and adaptability” (Kassarjian, 1981,p410). However,
Chisnall (2001) proposed that personality may influence the decision to buy a certain product
type, but not the final brand choice.
Finally, self-concept is the way a person views himself/herself (Kotler, 2003). In other
words, it is the perceptions that contribute to and reflect their identities: that is, ‘we are what
we are’. Marketers can predict the response of the customer towards the brand image by
analyzing the target consumer’s self concept thereby helping the marketing mix.
1.4.4.Psychological Factors
A number of complex behaviour factors lie in psychological factors including perception,
motivations, attitudes and learning (Kotler, 2003).
Firstly, “a motive is a learned need that is sufficiently pressing to direct the person to seek
satisfaction” (Kotler & Keller, 2006,p184). In other words, it leads consumers to pursue
12. 12
particular goals because they are socially valued (Buchanan & Hucaynski, 1997). Therefore,
motivation is the condition of being motivated (Walter & Paul, 1970). Thus, Marketers need
to identify what needs the consumer is trying to satisfy. Here we introduce one motivation
theory in order to understand human motivation, which is often used by marketers.
Maslow’s theory: Maslow (1970) illustrated that people are driven by particular needs at
particular times. The key point is that human needs are arranged in a hierarchy. He classified
the human’s needs to five levels, which are psychological needs, safety needs, social needs,
self-esteem needs and self-actualization. Maslow argues that the lower down the needs lie,
the more basic they are and the basic physical needs have to be satisfied, at least to minimum
level, before the next level of needs becomes important. This theory helps marketers
understand how various products and brands fit into the plans, goals and lives of potential
consumers.
Secondly, a motivated person is ready to act. How the person acts is influenced by his or her
perception of the situation. “Perception is the process by which an individual selects,
organises and interprets inputs to create a meaningful picture of the world.” (Bereson and
Steiner, 1964, p67). Two people with the same motivation and in the same situation may act
quite differently because they perceive the situation differently.
Thirdly, learning describes changes in an individual’s behaviour arising from experience
(Kotler, 2003). Learning occurs through the interplay of drives, stimuli, cues, responses and
reinforcement. It tells marketers to build up demand for a brand associating it with strong
drives, using motivation cues, and providing positive reinforcement (Coupey and Nakamoto,
1988).
In addition, belief is a descriptive thought that a person holds about something (Kotler, 2003).
People tend to act and response to the product according to their belief towards the image of
target products (Kotler). Therefore, marketers need to do the effort to communicate a positive
belief of a product or brand for the costumers.
1.5.The Buying Decision Process
As introduced above, the consumer’s choice results from the complex interplay of cultural,
social, personal and psychological factors. Although the marketer cannot influence many of
these factors, they still can be useful in identifying interested buyers and in shaping products
and appeals to serve their needs better. Therefore, it is necessary to introduce consumer
buying decision process, by which marketers can monitor the process to develop the
effective marketing mix by utilizing stimuli and factors to guide consumers to certain
products.
13. 13
In a buying decision process, a consumer will pass through five stages as shown below.
Problem
Recognitin
Information
Search
Evaluation of
alternatives
Purchase
Decision
Post purchase
Behaviour
Figure: Buyer decision process
As shown in the figure above, the buying process starts when consumer recognises a problem
or need, which is triggered by internal or external stimuli (Kotler, 2003). In other words, the
particular consumer recognizes she or he needs to buy something to solve problems she or he
faces. This will drive the potential buyer to search and gather information about the products
that will solve the particular problems. According to Kotler(2003), This stage can be divided
into two levels, which are milder level and active level. At the former level, consumers
simply receipt the information about the product; at the second level, consumers are more
likely looking for the product information actively, such as online searching, visiting stores,
reading materials and phoningfriends.
Kolter(2003) also points out that the information source could be fell into four groups:
personal(family, friends, neighbours, acquaintances); commercial(advertising, web sites,
sales persons, dealers, packaging, displays); public(mass media, consumer-rating
organizations) and experiential(handling, examining, using the product). As a result of that,
the potential buyer becomes acquainted with some of the brands in the market and their
features. As Jobber (2004) points out that the objective of information search is to build up
the awareness set- that is, the array of brands that may provide a solution to the problem.
After that, consumers move into third stage-evaluation of alternative. In this stage,
Preferences among the brands in the choice set will be formed. The evaluation is based on the
product or service whose attributes are perceived to best satisfy the need. Namely, it is a
brand evaluation stage.
According to Assael (1992), in this stage, consumers will use information to associate brands
they are aware of with their desired benefits and they will prefer the brand that they expect
will give the most satisfaction based on the benefits they seek. The outcome of brand
evaluation is the awareness brands set narrow down to the small range of consideration
brands then into smaller range of choice set (Blackwell, et.al,2001).
Kotler (2003) further points out that in this stage, the customer’s beliefs and attitudes
towards the attributes and benefits of a brand has a positive impact on the brand choice. After
the brands evaluation stage, the intention to buy a specific brand will be made, in this stage,
five sub-decisions will be made: brand, dealer, quantity, timing and payment method
(Kotler,2003). Then, the consumer will execute a purchase intention to buy the most
preferred brand or product which they believe may satisfy them.
14. 14
After purchasing the product, the consumer will experience some level of satisfaction or
dissatisfaction. In post-consumption evaluation. In this stage, the satisfaction of the
consumption will result in the storing evaluation in memory and refer to them in future
decisions. On the contrary, when experiences and performance fall short of expectations,
dissatisfaction occurs (Blackwell, Miniard, and Engel p.80, 2001).
This model of buying decision process emphasizes that the buying process starts long before
the actual purchase and has consequences long after the purchase. This is as Francesco (1966)
said it encourages the marketer to focus on the buying process rather than on the purchase
decision. Although buyers may skip or reverse some stages of the model, the model captures
the full range of considerations that arise when a consumer faces making a new purchase.
1.6.The Importance of Branding
A successful brand is one which creates and sustains a strong, positive and lasting impression
in the mind of a buyer (Kotler,2003). As Doyle (1998.p.77) claims “a successful brand is a
name, symbol, design or some combination, which identifies the product of a particular
organization as having a sustainable differential advantage”.
That is to say a successful brand is a substantial asset to the companies. Emperical report
shows that Microsoft estimate value is $57 billion and that of IBM is $44 billion and estimate
the brand value of Coca-Cola is $84 billion, (Morris, 1996). There is no doubt that those
companies are benefited from its branding strategies. In fact, branding is defined as the
enterprise of creating added value in the minds of consumers, which is to build perceived
values beyond the observable physical value of the product, and thus differentiating the
product in a highly competitive environment (Aaker, 1995).
The aim of branding is to help customers to identify products that are relevant for them, and
so take much of the anxiety out of decision making (Harris, 2002). As the business
environment is teemed with competition and more sophisticated customers, superior products
with only physical attributes is not enough to maintain and attract consumers. Thus, firms
must build effective branding strategies to help consumers organize their knowledge about
certain products and service, and convince the customers what are firm’s meaningful
advantages among the different brands.
As Hankinson and Cowking (1996) argued to build up a strong brand is one of the ways in
which a company can develop and sustain advantage over its competitors, and thereby
maintain or increase its sales or market share. In other words, the stronger the consumer
identification of the brand, the stronger the relationship firms have with consumers and
therefore the brand effect on purchase. In fact, branding can be seen as a process of building
and developing corresponding marketing strategies based on firms’ resource and capability
aiming to communicate certain brand to targets effectively an consistently thereby
influencing the consumer behaviour (Jones, 1986).
15. 15
Thus, in a competitive market environment, firms need to strengthen the relationship
between the consumer and the brand as that reflects the fit between the consumer’s own
physical and psychological needs and the brand’s functional attributes and symbolic values as
perceived by the consumer. Hence, firms need to create customer-based brand equity (a topic
explored in the next section) by branding to obtain the competitive advantages.
Consequently, a high degree of brand equity among the consumers is an important goal of
marketing strategy. Thus, it is necessary to discuss how brand equity affects consumers
buying behaviour.
1.7.Brand awareness and its effect on consumer behaviour
1.7.1.What is brand awareness?
According to Aaker (1991, p61), brand awareness is “the ability of a potential buyer to
recognize or recall that a brand is a member of a certain product category”. That is to say,
brand awareness is the capability of knowledge and identification of certain brand retrieved
under some situations. Aaker further points out that Awareness is measured according to the
different ways in which consumers remember a brand, ranging from recognition to recall to
‘top of mind’ to dominant (Aaker, 2002). As Chernatony and McDonald (2003,p444) said
“brand recognition refers to the consumer’s ability to recall previous exposure or experience
with the brand, brand recall refers to the consumer’s ability to retrieve the brand from
memory when given the product category as a cue”.
In the agreement, Baker (2000) states that brand awareness refers to the strength of presence
of a brand in the consumers mind and the extent to which they are able to recognize or recall
a brand name. In other words, the brand awareness is how much consumer’s familiar with the
brand. Moreover, Hoeffler and Keller (2002) argues that brand awareness is more than just
customers knowing the brand name, it may to some extent refers to the customers’
knowledge about the certain brand such as name, logo as well as its association. As Kotler
and Keller (2006) said it is consumers’ ability to identify the brand under different
conditions, as reflected by their brand recognition or recall performance.
1.7.2.Brand awareness effect on consumer behaviour
According to Aaker (1991), brand awareness has significant impact on the consumer buying
behaviour. Firstly, a high level of awareness of a brand that consumers have, the high level
the brand will be considered when they choose to buy (Aaker,1991). It is because in relation
to the consumer buying process, brand awareness plays an important role when have
intention to buy something for needs. Pitta and Katsanis (1995) point out that in the classic
consumer behaviour model, consumers who recognize a problem needed to be served always
engage in routine product choice when they have high level of that product category’s brand
awareness; in more specific it is related to the brand recall, or at least considering that brand
as alternative product choice. That is to say, on the one hand, consumers always are passive
recipient of product information and are reluctant to spend much time and effort for choosing
16. 16
brand (Hoyer 1984).
Therefore, the brand awareness will lead them to choose most familiar brand that they have
knowledge of; on the other hand, in fact, in the consumer decision making process,
consumers always have many alternatives to be considered. Because recall determines which
alternatives are generated, those not recalled cannot be part of the consideration set of
products, thus, the recalled brand will have the advantage to be the opportunity last choice.
Thus, brand awareness is crucial to getting into this consideration set as the brand lacks of the
awareness may not has the opportunity to be considered for buying.
For example, if a consumer wants to buy a laptop, the first brands that come up to the
consumer’s mind will have an advantage, which will be considered to buy. The same point is
also presented by Kotler and Keller (2006) that is a high level of brand awareness might
affect consumer choices among brands in the consideration set and the product category,
even if there are no other associations linked to those brands. That is to say, brand awareness
is sufficient to result in more favourable consumer response, for example, consumers are
more likely to base their choices merely on familiar brands.
Second, brand awareness provides a brand with a sense of familiarity, which is brand
recognition and people like the familiar (Keller,1998). In other words, the consumers will be
stimulated by the familiarity of such brand when they want to purchase something. Moreover,
brand awareness can serve to brand extension (Hoyer and brown, 1990). That is to say when
firm develop sub-brand for products, the more awareness of host-brand will lead to the
acceptance of this sub-brand.
This will result in the increase of the sales. Diet Coke is a good example, which sales benefits
from the Coke brand. Therefore, the more the consumer is aware of the product, the greater
the possibility that the consumer will purchase the product (Grover and Sinvasan, 1992).
Briefly, brand awareness offers the effectively competitive difference among the products
that have the similar features.
1.8.Perceived quality and its effect on consumer behaviour
1.8.1.What is perceived quality?
Perceived quality can be defined as “the customer’s perception of the overall quality or
superiority of a product or service with respect to its intended purpose, relative to
alternatives” (Aaker, 1991 p7). It is a higher-level abstraction rather than a specific attribute
of a product. Various attributes and relevant benefits create a perception of quality in
consumer’s mind. In other words, perceived quality is the consumer’s judgement about a
product’s overall excellence or superiority. It is a significant factor in building brand equity
(Keller, 1998).
17. 17
1.8.2.Perceived quality effect on consumer behaviour
According to Aaker (1991), first of all, a brand’s perceived quality provides the value for
consumers to buy such brand’s products. It is because consumers always make buying
decisions rely on the feeling of the basic characteristics of the product to which the brand is
attached such as the reliability of the product since they always cannot experience the product
before they buy it.
Namely, perceived quality is related to the consumer purchasing decision making process. In
other words, consumer always prefer to donate less time and effort for gaining the
information which can assess the products’ quality, as a result, the observation of the certain
brand might be a determination of the final decision making (Aaker,1996).
Occasionally, consumers may not be able to possess the access or not be able to judge the
information about the product’s quality. Thus, perceived quality becomes the important factor
affecting the final brand choice. On the other hand, through the buying decision making
process, the perceived quality can contribute to the evaluation stage (Keller, 1998). The
consideration sets of the brands will be narrow down when the above conditions occurs. In
the agreement, Sethuraman and Cole (1997) assert that perceived quality is central to the
theory that a strong perceived quality adds value to consumers’ purchase evaluations and
willing to pay for a brand.
Secondly, a perceived quality may result in a willingness of consumer for buying a brand for
a price premium. That is to say, if a brand’s perceived quality is good in mind of customers,
then the customer may be more willing to buy such brand even the brand’s price is higher
then others.
Therefore, it will create a premium profits for the firm compared to other firms, which can
indeed provide resources with which to reinvest in the brand, such as R&D activities, brand
enhancing activities. As Sethuraman and Cole (1997) state that perceived quality explains a
considerable portion of the variance in the price premium consumers are willing to pay for
well-known brands.
Moreover, perceived quality can also be meaningful to retailers, distributors, and other
channel members (Aaker,1996). Obviously, the channel members are motivated to carry
brands that are well-regarded, which customers want. Therefore, well perceived quality will
gain greater trade cooperation and support (Keller, 1998) and in turn adds the customer base.
In addition, perceived quality can be exploited by introducing brand extensions, using the
brand name to enter new product categories (Aaker,1996). In other words, well brand with
respect to perceived quality will have higher success probability than a weaker brand in terms
of brand extension as the consumer would appreciate that brand’s product, which in turn
elicits more purchasing behaviour.
18. 18
Briefly, perceived quality is usually at the heart of what consumers are buying, enhanced
perceived quality adds a convincible reason for consumers to make final purchase decision.
1.9. Brand association and its effect on consumer behaviour
1.9.1.What is brand association?
Aaker (1991, p109) claims that “brand association is the category of a brand’s implications
which include anything ‘linked’ in memory to a brand”. Keller (1998) defines brand
associations as informational nodes linked to the brand in consumer’s mind, which will
transfer the meaning to consumer for that brand. Aaker (1996) further argues that a set of
brand associations compose the brand image, which is organized in some meaningful way.
Moreover, Keller (1998) states that brand association can be classified into three major
scopes including attributes, benefits, and attitudes. According to Keller (1998), attributes
refer to descriptive characteristics that consumers think of in the mind towards certain
brand’s product, which is formed by product-related attributes, non-product-related attributes,
feeling and experiences, and brand personality; benefits is related how consumers value the
offer of a brand’s products, namely, it is the perception of consumers about what the products
can do for them; attitudes are defined as the overall evaluation of a brand, which is most
important in consumer’s brand choice decision making.
Lamb Jr and Low (2000) further argues that brand association can be measured by the brand
image, brand attitude and perceived quality. The brand image is defined by the Dobni and
Zinkhan (1990) is the reasoned or emotional perceptions consumers attach to specific brands.
In line with the Dohni and Zinkhan, Keller (1998, p93) suggest that “brand image is the
perceptions about a brand as reflected by the brand associations held in consumer memory”.
Up to the present, we can find that the brand association is related to the consumer’s concept
and feeling about the belief that attributable to the brand. It can also see as brand identity,
which can be divided in three perspectives in the brand: value, brand personality and
organisational associations (Aaker, 1996). Aaker (1996) argued that the first one is linked to
the functional benefits of the brand, which are the performance capabilities of the product.
The second one can enable people to express their own self, or dimensions of the self through
using the brand because consumers have multiple roles, which result in a consumer feeling
that the brand is relevant to my kind of product (Keller, 1998). The third one can reflect
something about the producer’s value or represent a certain culture, and is often the base for
differentiation and consumer preferences (Aaker,1996).
19. 19
1.9.2.Brand association effect on consumer behaviour
According to Aaker (1991), brand association can help customer process information. In the
reality, consumers may not have process and access to perceive or obtain some facts about
the brands, and to communicate such things may high cost for the companies. Therefore, the
brand with high level of association will contribute to facilitate consumer for gaining the
meaning of the brand. For example, the Volvo brand always is associated with safety,
however, such meanings is difficult for customers to perceive before they have experience.
Therefore, Volvo is benefited from such brand association for retrieving the information in
mind of consumers. However, it depends on the past marketing investment towards that
brand. On the other hand, brand association can help consumers retrieve the information
about certain brand (Aaker,1991). That is to say, if a brand associates with something, the
consumer will easily reflect such things in the mind when they confront the brand in some
situations.
Brand association also involve product attributes or customer benefits that provide a specific
reason to buy and use the brand (Aaker,1991).
They also represent a basis for purchase decisions and brand loyalty. For example, Colgate
provides clean, white teeth. Some associations influence purchase decisions by providing
credibility and confidence in the brand. That is to say, customers regard the brand association
to some extent as references, which making them feel more comfortable for purchasing that
brand. As Kolter (2003) further argued that the brand associations convey not only the
concept but also the meaning of the product in terms of how it fulfils a customer’s needs.
What is more, brand association create positive attitudes and feelings, which can lead
consumers to specific brand (Aaker,1991). Namely, not only the recognition of the fulfilment
of needs of the certain product can trigger the consumer buying behaviour but also the
abstract needs for express consumer’s emotion from the brand. (Dobni and Zinkhan 1990).
1.10.Brand loyalty & its effect on consumer behaviour
1.10.1.What is brand loyalty?
Brand loyalty has been defined as the inclination of a customer to keep on purchasing the
same brand (Collin et al, 1991). Dick and Basu (1994) stated that brand loyalty is the strength
of the relationship between an individual’s attitude towards a brand and repeat purchasing.
Schiffman and Kanuk (1997) described a consistent preference and purchase of the same
brand in a specific service or product category as brand loyalty. Gilbert (2003) defined it as
consumers purchasing the same brand of product on most occasions or on a regular basis.
Therefore, as the definitions above-mentioned, brand loyalty exist when a customer buy one
brand of product or service again and again. Aaker (1991) argued that brand loyalty of the
20. 20
consumer base is the core of a brand’s equity, which is critical to maintain brand equity.
1.10.2.Brand loyalty effect on consumer behaviour
On the one hand, brand loyalty will lead consumers to purchase the same brand’s products
(Aaker, 1991), which will in turn reduces the marketing costs of doing business. Kolter et al
(2000) argued that it costs the average company six times more to attract a new customer than
to hold a current one. It is because potential new customers usually lack motivation to change
from current brands as change a brand often has risks from them. Reichheld (1996) argued
that a successful brand introduces stability into the business, once customers have made a
decision about a brand and its associations, they are often loyal to that brand, continue to buy
it in the future, recommend it to friends, and choose the products over others, even those with
better features or lower prices. Consequently, it will increase the profitability for the firm.
On the other hand, brand loyalty can contribute to the maintaining of the market share as
other companies enter the market. It is because the loyal consumer will insist to the brand
they previously choose as they are risk aversion and want to avoid swishing cost. As Raj
(1985) said the more loyal customers the firms have, the more stable the brand’s market
share and the less vulnerable it will be to competitive.
Moreover, brand loyalty can help firms attracting new customers. Keller (1998) states that a
customer base with segments that are satisfied and others that like the brand can provide
assurance to a prospective customer, especially when the purchase is somewhat risky. It is
because the acceptance of the brand by a group of existing customers can be an effective
message through world of mouth effect. It can also create brand awareness from the customer
base, which in turn path a way for attracting new customers (Punj, 2004).
Finally, brand loyalty provides a firm with time to respond to competitive moves
(Aaker,1991). For example, if a competitor develops a superior product, a loyal following
will allow the firm time needed for the product improvements to be matched or neutralized as
loyal, satisfied customers will not be looking for new products, and thus may not learn of
advancement.
Briefly, brand loyalty will result in consumers continue to buy the brand in the future,
recommend it to friends, and choose the products over others, even those with better features
or lower prices.
21. 21
CHAPTER 2
LITERATURE REVIEW
Laptop & PC Industry is expected to grow fast in developing countries like India & china
because of changes in government policies. In 2005, Indian government removed the
import duties on Laptops, which resulted in growth of 94% in 2005. (Physorg.com, 2006)
Cyber Media Research (2011) study states that nearly 10 million desktop & notebook
personal computers have been installed in 2010 and thus India has estimated to cross 52
million till Dec 2010 for total installation of both.
IDC is India’s quarterly PC sales marker, for the quarter ending in Oct-Dec 2010, it
suggested that Indian PC market had found recovery from the effect of global recession.
Compared to last quarter of 2009, Laptop market has seen the growth of 49%, while with
compare to 3rd
quarter it has decreased by 7% because of High inflation & low industrial
growth. (Shinde J.) According to Vadlamani S.(2011), Desktop & laptop market has
achieved the growth of 6% (2.6 million units) in India in first quarter of 2011. the growth
was driven by laptop vendor by 23%. Top five brands are Dell, HP, Acer, Lenovo and
HCL with combined market share of 57.5%.
IDC(2011) wrote that, in the second quarter of 2011, the sales of laptop & desktops has
decreased by 4.2% at 2.44 million units, compared to Q1 2011; Dell has again leaded the
market share by 17.4%, while top 5 companies cumulating 60% market share; companies are
targeting tier-3 & tier-4 cities now through large-format retails.
According to Pinki Sharma, The entire study shows that Laptop usage is very much popular
in between the students whether their residential status is urban and rural. It’s the present day
demand to run hand with the latest technology. This technology not only simplify students
task but it also seem to morale boost up of the students. Students found themselves connected
with the entire world with the help of Laptops.
According to Dr. Nilesh B. Gajjar, The study of Consumer Behaviour is quite complex,
because of many variables involved and their tendency to interact with & influence each
other. These are the factors controlled by external environments like the following form the
basis of external influences over the mind of a customer (outer circle).
Culture, and Sub-culture,
Social Class, and Social Group,
Family, and Inter-Personal Influences,
22. 22
Other Influences (which are not categorised by any of the above six, like
geographical, political, economical, religious environment, etc.).
According to Rinal B.Shah, The research was aimed to examine the applicability of Aaker’s
conceptual framework of customer-based brand equity for laptop brands in Indian market.
Here the findings don’t support completely to the entire brand equity dimensions of Aaker’s
model, it was found that perceived quality and brand loyalty had a significant positive direct
effect on brand equity. It had the strongest impact which indicated the essential role of
development of perceived quality and brand loyalty in minds of customers to build brand
equity for laptop brands.
Wahida Farzana said, The purpose of the study is to explore how consumers’ psychological
factors (Motivation, perception, and attitude) are associated with brand equity (brand loyalty,
brand association, perceived quality, and brand awareness) of laptop. The result revealed that,
consumers’ motivation to use laptop and brand association criteria work separately .
Like other products, consumers’ perception for choosing laptop relies upon different sources
of information. In this particular case, they choose newspaper and websites to build up their
perception. Though newspaper and websites play the vital role for organizing, evaluating
information, they rarely help them to choose the brand.
According to Vijay R. Kulkarni, Brand & Features, Price, Visibility & Service Center,
Reliability & Responsiveness, Warranty, Guarantee & After Sales Service, are the factors
which impact the buying behavior of the post graduates students.
According to Adrijit Basu, There is cut throat competitions in the market on price front and
so they have to find out better quality and low cost product. The characteristic of this specific
industry is that the marketing defines, creates and forms the goods and their target groups.
Ability to meet changing technology, customer’s needs and styling and shortening product
life cycle are the challenges that laptop manufacturing companies will have to face.
23. 23
CHAPTER 3
RESEARCH METHODOLOGY
3.1. Research Objective
3.1.1. Primary objective
A study on Student’s Buying Behavior towards laptops.
3.1.2. Secondary objective
To know the preference of students while purchasing of laptops.
To know the perception of students towards laptops.
To study the buying pattern of students while purchasing of laptops.
3.2. Scope of the study
This report is limited to survey area in kadi sarva vishwavidyalaya, Gandhinagar.
3.3. Research Design
The research design is Descriptive studies. Descriptive studies are well structured, they tend
to be rigid and its approach cannot be changed every now and then.
Descriptive studies are undertaken in many circumstances.
When the researcher is interested in knowing the characteristics of certain groups such
as age, profession.
When the researcher is interested in knowing the proportion of people in given
population who have behaved in a particular manner, making projection of certain
things.
24. 24
The objective of this kind of study is to answer the why, who, what, when and how of the
subject under consideration.
I have taken descriptive because my research includes the knowing the behavior of customer
towards Laptop. I have analyzed how people of various age groups respond towards laptop or
their perception towards laptop.
Data collection
Primary data collected: Online Questionnaires
Secondary data collected: Internet
Research instruments: Questionnaire
3.4. Sample design
Sample size: 100
Sampling type: For this purpose of research Convenient/
non probability sampling approach has been used. Non probability
sampling is arbitrary and subjectiv
3.5. Limitations
Respondents were reluctant to share their experience accurately.
Few Customers are hesitate to deliver some information due to the time wasted in the
providing the same.
Due to time constraints it is not possible to cover vast area. So that survey has limited
to Kadi Sarva Vishwavidyalaya, Gandhinagar.
25. 25
Chapter 4
Data Analysis And Data Interpretation
4.1. Section-1: Consumer profile
As per the graph above,
the 78% of the population are Males and 22% are the females.
Male
78%
Female
22%
Q.1 : Gender:
Male
Female
26. 26
As per the graph above,
the 3% of the population fall in 16-20 age group, 94% of the population is falling in
21-25 age group and 3% of the population is falling in 25 & above age group.
3
94
30
10
20
30
40
50
60
70
80
90
100
16-20 21-25 Above 25
Q.2 : Age:
1. 16-20
2. 21-25
3. Over 25
27. 27
As per the graph above,
48% of students are from MBA, 3% from MCA,12% from BCA, 18% from BBA,
11% from B.Tech, 1% from B.Pharm and 7% are from other courses.
MBA
48%
BBA
18%
BCA
12%
MCA
3%
B.Tech
11%
B.Pharm
1%
Others
7%
Q.3 : Please indicate the course you are in?
1. M.B.A
2. M.C.A
3. B.C.A
4. B.B.A
5. B.Pharm
6. B.Tech
7. Others
28. 28
As per the graph above,
78% students have laptop and rest 22% are not having a laptop.
78%
22%
Q.4 : Do you own a laptop now?
1. Yes
2. No
yes no
29. 29
4.2. Section-2:
Please select the answer that most corresponds to your opinion in each question.
1. Strongly disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree
As per the graph above,
90% respondents are agreed with the question, that they recognize the famous brands
in the market and 10% are not sure about it.
Stongly agree
22%
agree
68%
neutral
8%
Disagree
1%
Strongly Disagree
1%
Q.5 : Do you recognize most of the famous
laptop brand in the market?
30. 30
As per the graph above,
85% of respondents are agreed with the question, that they prefer the famous brands
in the market and 15% are not sure about it or disagreed with it.
Stongly agree
5%
agree
80%
neutral
6%
Disagree
8%
Strongly
Disagree
1%
Q.6 : In the case that there are many laptop
brands in the market, you would prefer the
one is well-known?
31. 31
As per the graph above,
66% of the respondents are agreed with the question that they will choose the famous
brand inspite the other brands offer the same features and 22% of the respondents are
neutral and the rest 12% of the respondents says that they disagree with the question.
Stongly
agree
11%
agree
55%
neutral
22%
Disagree
12%
Strongly
Disagree
0%
Q.7 : You will choose a well-known brand when
the other brands offer similar feature or
price?
32. 32
As per the graph above,
56% of the respondents are agreed with the question that well known brands presents
advance in innovation whereas 35% of the respondents remains neutral and 9% of the
respondents disagree with the question.
Stongly
agree
9%
agree
47%
neutral
35%
Disagree
8%
Strongly Disagree
1%
Q.8 : Do you agree well-known brands present
advance in innovation?
33. 33
As per the graph above,
71% of the respondents are agreed that well known brands represents the better
quality whereas 24% of respondents remain neutral and the rest 5% disagree with the
question.
Stongly agree
17%
agree
54%
neutral
24%
Disagree
4%
Strongly Disagree
1%
Q.9 : Do you agree well-known brands
represent better quality?
34. 34
As per the graph above,
55% of the respondents are agreed with the question that they will purchase a well
known brand even they need to pay the price premium whereas 35% of the
respondents remains neutral and 10% of the respondents are disagreed with this.
Stongly agree
14%
agree
41%
neutral
35%
Disagree
10%
Strongly
Disagree
0%
Q.10 : You will purchase a well-known brand
because well-known brands represent better
quality and service even you need to pay a price
premium?
35. 35
As per the graph above,
54% of the respondents are agreed that branded laptops can match their lifestyle
where 32% of the respondents remains neutral and 14% of the respondents showed
their disagreeness.
Stongly agree
12%
agree
42%
neutral
32%
Disagree
14%
Strongly Disagree
0%
Q.11: Do you agree a well-known laptop brand
can match your lifestyle?
36. 36
As per the graph above,
51% of the respondents are agreed with the question whereas the 36% of the
respondents remains neutral and 13% of the respondents disagreed to it.
Stongly agree
9%
agree
42%
neutral
36%
Disagree
13%
Strongly
Disagree
0%
Q.12 : Do you agree the well-known brands
present better value (such as attributes,
services) for money over competitors?
37. 37
As per the graph above,
69% of the respondents are agreed that the well known brands reflect their self image
and personality whereas 18% stayed neutral and the rest 13% of the respondents are
disagree with this question.
Stongly
agree
9%
agree
60%
neutral
18%
Disagree
12%
Strongly
Disagree
1%
Q.13 : Do you agree the well-known brands’
image can somewhat reflect your own self-
image and personality?
38. 38
As per the graph above,
19% of the respondents are agree that they will rely on the brands image in doing their
decisions whereas 45% of the respondents remains neutral and 36% are disagreed.
Stongly agree
4%
agree
15%
neutral
45%
Disagree
36%
Strongly Disagree
0%
Q.14 : You will rely on the laptop’s brand image
than its actual attributes in decision making?
39. 39
As per the graph above,
31% of the respondents are agreed that they buy laptops on the special occasions
whereas 20% of the respondents are neutral and 49% of the respondents are disagreed
with it.
Stongly
agree
9%
agree
22%
neutral
20%
Disagree
31%
Strongly Disagree
18%
Q.15 : You prefer to buy the laptop on special
occasions?
40. 40
As per the graph above,
20% of the respondents are agreed that they buy the laptop online without seeing in
person whereas 20% of the respondents remains neutral and 60% of the respondents
says that they will not buy laptop without seeing in person.
Stongly agree
3%
agree
17%
neutral
20%
Disagree
33%
Strongly Disagree
27%
Q.16 : Do you mind buying online without
seeing the laptop in person?
41. 41
As per the graph above,
48% of the respondents are agreed to that laptops looks & stylishness are important to
them whereas 23% of the respondents remains neutral and 29% of the respondents
disagreed.
Stongly agree
20%
agree
28%neutral
23%
Disagree
21%
Strongly Disagree
8%
Q.17 : The laptop's looks and stylishness
important to you?
42. 42
As per the graph above,
80% of the respondents are agreed with the question that they search the various
factors before buying whereas 12% of the respondents are neutral and 8% of the
respondents are disagree.
Stongly agree
29%
agree
51%
neutral
12%
Disagree
8%
Strongly Disagree
0%
Q.18 : Before purchasing, you search for
various factors of laptop like attributes, price
etc from various sources like internet, friends
etc?
43. 43
As per the graph above,
74% of the respondents are agreed that they are satisfied with their past purchase
where as 21% remains neutral and 5% are disagreed with the question.
Stongly agree
18%
agree
56%
neutral
21%
Disagree
5%
Strongly Disagree
0%
Q.19 : You are satisfied with your past purchase
for a laptop?
44. 44
As per the graph above,
67% of the respondents are agreed with the question whereas 26% remains neutral
and 7% are disagreed with it.
Stongly agree
14%
agree
53%
neutral
26%
Disagree
6%
Strongly Disagree
1%
Q.20 : You will recommend your friends with
your favourite laptop brand when they consider
purchasing a laptop?
45. 45
As per the graph above,
42% of the respondents are agreed that they will buy the same brand on their net
purchase whereas 46% of the respondents remains neutral and 12% of the respondents
said no.
Stongly agree
10%
agree
32%
neutral
46%
Disagree
12%
Strongly Disagree
0%
Q.21 : You would buy the same brand of laptop
when you consider purchasing a second
laptop?
46. 46
FACTOR
/VARIABLES Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Questio
n9 Question10 Question11 Questio
n12 Question13 Question14 Question15 Question16 Question17
/MISSING LISTWISE
/ANALYSIS Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Question9
Question10 Question11 Question
12 Question13 Question14 Question15 Question16 Question17
/PRINT UNIVARIATE INITIAL CORRELATION KMO EXTRACTION ROTATION
/FORMAT SORT BLANK(.5)
/PLOT EIGEN
/CRITERIA MINEIGEN(1) ITERATE(25)
/EXTRACTION PC
/CRITERIA ITERATE(25)
/ROTATION VARIMAX
/SAVE REG(ALL)
/METHOD=CORRELATION.
- - - - - - - - - - - - - - - - - - - - - - - - F A C T O R A N A L Y S I S - - - - - - - - - - - - - - - - - - - - - - - -
Factor Analysis
[DataSet0]
Descriptive Statistics
Mean Std. Deviation Analysis N
Do you recognize most of the famous laptop
brand in the market.
4.0769 .67937 78
In the case that there are many laptop
brands in the market, you would prefer the
one is well-known.
3.8846 .78923 78
47. 47
You will choose a well-known brand when
the other brands offer similar feature or
price.
3.6667 .83225 78
Do you agree well-known brands present
advance in innovation.
3.5513 .81619 78
Do you agree well-known brands represent
better quality.
3.8077 .80675 78
You will purchase a well-known brand
because well-known brands represent better
quality and service even you need to pay a
price premium.
3.5897 .85942 78
Do you agree a well-known laptop brand can
match your lifestyle.
3.5256 .87867 78
Do you agree the well-known brands present
better value (such as attributes, services) for
money over competitors.
3.4744 .83315 78
Do you agree the well-known brands’ image
can somewhat reflect your own self-image
and personality.
3.6410 .85241 78
You will rely on the laptop’s brand image
than its actual attributes in decision making.
3.0256 .82138 78
You prefer to buy the laptop on special
occasions.
2.6282 1.21793 78
Do you mind buying online without seeing the
laptop in person.
2.3462 1.12616 78
The laptop’s looks and stylishness important
to you.
3.3333 1.23443 78
Before purchasing, you search for various
factors of laptop like attributes, price etc from
various sources like internet, friends etc.
4.0256 .85241 78
You are satisfied with your past purchase for
a laptop.
3.8718 .76207 78
48. 48
You will recommend your friends with your
favourite laptop brand when they consider
purchasing a laptop.
3.7179 .83584 78
You would buy the same brand of laptop
when you consider purchasing a second
laptop.
3.4103 .82864 78
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .698
Bartlett's Test of Sphericity Approx. Chi-Square 451.028
df 136
Sig. .000
Communalities
Initial Extraction
Do you recognize most of the famous laptop brand in the
market.
1.000 .623
In the case that there are many laptop brands in the
market, you would prefer the one is well-known.
1.000 .700
You will choose a well-known brand when the other brands
offer similar feature or price.
1.000 .701
Do you agree well-known brands present advance in
innovation.
1.000 .676
Do you agree well-known brands represent better quality. 1.000 .555
You will purchase a well-known brand because well-known
brands represent better quality and service even you need
to pay a price premium.
1.000 .589
49. 49
Do you agree a well-known laptop brand can match your
lifestyle.
1.000 .601
Do you agree the well-known brands present better value
(such as attributes, services) for money over competitors.
1.000 .594
Do you agree the well-known brands’ image can somewhat
reflect your own self-image and personality.
1.000 .749
You will rely on the laptop’s brand image than its actual
attributes in decision making.
1.000 .565
You prefer to buy the laptop on special occasions. 1.000 .485
Do you mind buying online without seeing the laptop in
person.
1.000 .603
The laptop’s looks and stylishness important to you. 1.000 .725
Before purchasing, you search for various factors of laptop
like attributes, price etc from various sources like internet,
friends etc.
1.000 .723
You are satisfied with your past purchase for a laptop. 1.000 .769
You will recommend your friends with your favourite laptop
brand when they consider purchasing a laptop.
1.000 .750
You would buy the same brand of laptop when you
consider purchasing a second laptop.
1.000 .611
Extraction Method: Principal Component Analysis.
51. 51
Component Matrix
a
Component
1 2 3 4 5
You will purchase a well-known brand because
well-known brands represent better quality and
service even you need to pay a price premium.
.746
Do you agree well-known brands represent
better quality.
.666
Do you agree well-known brands present
advance in innovation.
.661
Do you agree a well-known laptop brand can
match your lifestyle.
.615
52. 52
You would buy the same brand of laptop when
you consider purchasing a second laptop.
.594
Do you agree the well-known brands present
better value (such as attributes, services) for
money over competitors.
.591
Do you agree the well-known brands’ image
can somewhat reflect your own self-image and
personality.
.563 .542
You will choose a well-known brand when the
other brands offer similar feature or price.
.525
The laptop’s looks and stylishness important to
you.
.512
Do you mind buying online without seeing the
laptop in person.
.709
Before purchasing, you search for various
factors of laptop like attributes, price etc from
various sources like internet, friends etc.
-.632
You will rely on the laptop’s brand image than
its actual attributes in decision making.
.542
In the case that there are many laptop brands
in the market, you would prefer the one is well-
known.
-.523
You are satisfied with your past purchase for a
laptop.
.723
You will recommend your friends with your
favourite laptop brand when they consider
purchasing a laptop.
.559 .561
You prefer to buy the laptop on special
occasions.
.514
Do you recognize most of the famous laptop
brand in the market.
.505
Extraction Method: Principal Component Analysis.
53. 53
a. 5 components extracted.
Rotated Component Matrix
a
Component
1 2 3 4 5
Do you agree well-known brands present advance in innovation. .794
You will choose a well-known brand when the other brands offer
similar feature or price.
.769
In the case that there are many laptop brands in the market, you
would prefer the one is well-known.
.693
Do you agree well-known brands represent better quality. .634
Do you agree the well-known brands’ image can somewhat reflect
your own self-image and personality.
.859
Do you agree a well-known laptop brand can match your lifestyle. .737
The laptop’s looks and stylishness important to you. .647
You will purchase a well-known brand because well-known brands
represent better quality and service even you need to pay a price
premium.
You are satisfied with your past purchase for a laptop. .875
You will recommend your friends with your favourite laptop brand
when they consider purchasing a laptop.
.826
You would buy the same brand of laptop when you consider
purchasing a second laptop.
.647
You will rely on the laptop’s brand image than its actual attributes in
decision making.
.636
Do you recognize most of the famous laptop brand in the market. -.599
You prefer to buy the laptop on special occasions.
54. 54
Before purchasing, you search for various factors of laptop like
attributes, price etc from various sources like internet, friends etc.
.792
Do you mind buying online without seeing the laptop in person. -.622
Do you agree the well-known brands present better value (such as
attributes, services) for money over competitors.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 8 iterations.
Component Transformation Matrix
Component 1 2 3 4 5
1 .633 .594 .483 .110 .025
2 -.144 .279 -.276 .674 -.608
3 -.419 -.260 .828 .214 -.158
4 -.633 .707 .003 -.238 .209
5 -.050 -.046 -.067 .656 .749
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
After performing the factor analysis, there are some points which are focused. They are as
follows:-
As KMO value is 0.698 which is approximately equal to 7, we can say that the data is
adequate.
Through the rotated component matrix, the factors we can extract are:
I. Brand Awareness
II. Perceived Quality
III. Brand Loyalty
55. 55
CHAPTER-5
CONCLUSION
Here, in this study the respondents are the students. The respondents are 100 in which 78%
are male and 22% are females. Most of the respondents fall in the 21-24 age category which
is 94% and rest from 16-20 &25 above are having just 3-3%. Around 65% students are
agreeing to their knowledge of brand awareness, in terms of perceived quality there is 50%
respondents who are agreeing whereas around 45% of respondents are giving their vote to
agree on brand association and on brand loyalty the number is upto 45%.
The students prefer to buy the laptops when reach in the college or when there is a need for a
laptop to them. From the study I can say that mostly management and engineering students
are having the need of laptop and rest of them do have but not as compare to management
students.
56. 56
CHAPTER-6
FINDINGS
The consumer decision-making process and resulting preferences and buying behaviour are
influenced by internal– as well as external factors. The internal factors consist of factors such
as needs and motivation. Students indicated that they have physical needs for food (groceries
and fast food) as well as clothing. They also value friendship (social needs) and want to
improve their education. These basic and more advanced needs are the driving force behind
the shopping behaviour of students. Other factors like age, lifestyle, learning and personality
also play a role. Emotions, like the experiencing of guilt after an unplanned purchase, also
influence their behaviour.
External factors consist of culture, social class, and family/household and reference groups.
One of the important external factors is groups (friends & family).
I. The majority of students like to shop with shopping companions. Their first
choice is friends, followed by family members.
II. The majority of students usually do not buy the same brands as their friends or
family members.
III. Students indicated that they usually play the roles of information
searchers/gatherers and product users in their households.
IV. Students search for information to obtain a better price and when they plan to buy
expensive products.
V. The majority of students’ decision-making style is quality consciousness, followed
by price sensitiveness and services orientation.
VI. Students make use of the brand first and outlet second sequence in their decision-
making.
57. 57
CHAPTER-7
LIMITATIONS
In this research, there are some limitations caused by the following reasons.
Firstly, the main limitation of the research is generated from the small size of the
sample. Under time and financial constraints, the study was performed only with a
small portion of the population for the whole population. This may influence the
generalizability of the samples and may get the incorrect results.
Secondly, the selection of the survey location has limitation. Only KSV Ghandhinagar
is selected for conducting the survey. Therefore, the result would be representative of
the users of the specific area rather than of the target population as a whole because
different cities may reflect different consumer behaviour.
Moreover, the Likert scale adopted in the questionnaire might limit the range of
options. Closed questions could cause bias by forcing respondents to choose between
certain alternative corresponding to their personal views on a particular subject.
In addition, in this study, only quantitative method is used to do the research and
statistic analysis is used to examine the topics. Thus, the result may be not depth
enough. This also caused the discussion of findings may not so accurate and in detail.
Finally, as the survey was conducted in a laptop market and the respondents were
random selected, thus, the respondents might, intentionally or unintentionally provide
inaccurate answers to the questions. Thus the findings may not be accurate.
However, care was taken throughout the study to reduce the negative impact of these
Limitations essentially the need for further research is recognized.
58. 58
CHAPTER-8
RECOMMENDATIONS
Retailers should make use of reference group influences by focusing on friends and
family in their advertising strategies, and personal selling strategies. For example:
“Bring along a friend!”
Retailers should focus on the individuality of students, which is typical of this age
group, and steer away from advertising campaign with themes like blending in or
being like everyone else. For examples, slogans like “Be your own person” or “ For
the individual.” should appeal to students.
Retailers need to supply the relevant price information for example, retailer price,
discount or payment options, about their products, especially if they are selling
expensive products.
Retailers should make use of their knowledge of decision-making styles to segment
the market, to do niche marketing and better understand the market. Retailers should
ensure that their quality, price and services are better than the competition, in order to
gain a bigger share of the student market.
Retailers should use weekends for new product launches, competitions or promotional
campaigns.
59. 59
ANNEXURE
QUESTIONNAIRE
I am an M.B.A student of the S.K.Patel Institute of Management & Computer Studies in the
Gandhinagar, and conducting a survey related to my dissertation that is about “A study on
Student’s Buying Behaviour towards laptops”. I would appreciate it if you would fill out the
questionnaire. Please read the following questions carefully and tick the most appropriate
answers. Thank you.
Section1: Consumer profile
1) Gender:
1. Male
2. Female
2) Age:
1. 16-20
2. 21-25
3. Over 25
3) Please indicate the course you are in?
1. M.B.A
2. M.C.A
3. B.C.A
4. B.B.A
5. B.Pharm
6. B.Tech
7. Others
4) Do you own a laptop now?
1. Yes
2. No
60. 60
Section 2:
Please select the answer that most corresponds to your opinion in each question.
1. Strongly disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree
16. Do you mind buying online
Sr. no Questions Strongly
disagree
Disagree Neutral Agree Strongly
agree
5. Do you recognize most of the
famous laptop brand in the
market?
6. In the case that there are many
laptop brands in the market, you
would prefer the one is well-
known?
7. You will choose a well-known
brand when the other brands offer
similar feature or price?
8. Do you agree well-known brands
present advance in innovation?
9. Do you agree well-known brands
represent better quality?
10. You will purchase a well-known
brand because well-known brands
represent better quality and service
even you need to pay a price
premium?
11. Do you agree a well-known laptop
brand can match your lifestyle?
12. Do you agree the well-known
brands present better value (such
as attributes, services) for money
over competitors?
13. Do you agree the well-known
brands’ image can somewhat
reflect your own self-image and
personality?
14. You will rely on the laptop’s brand
image than its actual attributes in
decision making?
15. You prefer to buy the laptop on
special occasions?
61. 61
without seeing the laptop in
person?
17. The laptop’s looks and stylishness
important to you?
18. Before purchasing, you search for
various factors of laptop like
attributes, price etc from various
sources like internet, friends etc?
For respondents who own laptop already
19. You are satisfied with your past
purchase for a laptop?
20. You will recommend your friends
with your favourite laptop brand
when they consider purchasing a
laptop?
21. You would buy the same brand of
laptop when you consider
purchasing a second
laptop?
22) When are you buying or did you buy the laptop and how long do you want it to last?
Comment :
Thank you for your cooperation
62. 62
BIBLIOGRAPHY
Websites:
www.google.com
www.altavista.com
en.wikipedia.org/wiki/Consumer_behaviour
www.learnmarketing.net/consumer.htm
www.theglobaljournals.com/ijar/file.php?val=MTAzNQ==
Research Papers:
I. garph.co.uk/IJARMSS/Sep2012/4.pdf
II. http://digitallibrary.srmuniv.ac.in/dspace/handle/123456789/8120
III. http://www.aims-international.org/aims10/AIMS10Proceedings/PDF/P701-done.pdf
IV. http://raijmr.com/wp-content/uploads/2013/03/2_10-15-Dr.-Nilesh-B.-Gajjar.pdf
V. www.gcbe.us/.../...