It shows the decision making process of a customer, how he/she makes a final buying decision.

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INTRODUCTION
About the industry and recent trend
The country is passing through a slow-down with economic growth coming
down. Our sector is greatly affected by the general economic conditions in the
country. Due to the slow economic growth the Consumer Electronic Industry has
witnesseda remarkablegrowth over thepastfew years.Thedemand of electronics
in the Indian marketis projected to rise to US $ 400 billion by 2020. To ensurethat
supply keeps pacewith the increasein demand, the industry and the Govt. need to
work together, to make the Indian industry competitive.
The consumer electronics industry is ushering in the dawn of Convergence.
Itis theconfluence and merging of separatedmarketsof digital- based audio, video
and information technology, removing entry barriers across the market and
industry boundaries. This convergence of technologies has resulted in a greater
demand for consumer devices, be they portable, in-home (mobile phones, digital
camera) or in-car (CD/DVD players), offering multiple functions.
Since, Indiahas been trailing behind ASEANcountriesin terms of production,
quality and export of consumer appliances, performance levels of most of factors
of production such as quality manpower, capital investment, infrastructure,
technology etc., need to be enhanced through conscious policy interventions and
managerial action to boost competitiveness of the sector. In this context, an
attempt has been made to understand the productivity and competitiveness of
consumer appliances eco-systemin India and recommend policy solutions to make
the sector internationally competitive. The study also attempts to identify the
factors hindering the progress of the sector and suggest measures for enhancing
the competitiveness of the sector.
Demand in urban markets is likely to increase for products such as LED TVs,
laptops, splitACs and, beauty and wellnessproducts. Inruralmarkets,durableslike

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refrigerators as well as other home appliances are likely to witness growing
demand in the coming years. Theruralmarkethas recently experienced around 30
per centgrowthrate in demand forelectronics and homeappliances.Urban growth
is likely to be driven by new technology/innovativeproducts, lifestyleproducts and
replacement demand.
About the consumer behavior
Consumer behaviour is the study of the processes thatindividuals or groups
go through in making their purchasing choices in order to satisfy their needs.
Usuallythe buying behaviourtakesmany formsofconsumer'schoicesthat can vary
depending on a broad set of factors such as: earnings, demographics, social and
cultural factors. Beside these basic internal factors which are considered to be
influential to the buying behaviour, there are also a set of factors that would be
simulated by the external circumstances in the environment surrounding the
consumer. Itis valuable to mention that the consumer behaviour is a combination
of customer's buying awareness combined with external motivators to result in a
change in the consumer's behaviour. Satisfying customers is theultimate objective
of every marketer in all categories of goods and service. After selling a product, the
marketers may not have direct contact with the customers. The post purchase
behavior of a customer has been influenced by a number of social factors in which
the marketer may not get any direct role.

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OBJECTIVE FOR STUDY
 Understanding the consumer behaviour
towards purchasing a new household
appliance
 To know the factors which can affect the
purchase decision
 To know the consumer’s view regarding
service and after sales service
 To know various strategies used by
companies to attract consumers
 To know whether they would
recommend to other or not

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Importance of study
The study is done for getting a deep knowledge and idea about
consumer purchase decision of household electronic items. It is needed
to understand: Why consumers make the purchases that they make?
What factors influence consumer purchases? It is needed to understand
and predict buying behaviour of consumers in the marketplace. It is
concerned not only with what consumers buy, but also with why they
buy it, when and where and how they buy it, and how often they buy it,
and also how they consume it & dispose it.
Consumer research is the methodology used to study consumer
behavior. It takes place at every phase of the consumption process:
before the purchase, during the purchase, and after the purchase.
Research shows that two different buyers buying the same product may
have done it for different reasons, paid different prices, used in different
ways, have different emotional attachments towards the things and so
on.

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LIMITATIONS
It was felt that respondents did not feel encouraged
to provide accurate and honest answers.
Respondents were hesitating to provide answers that
present themselves in an unfavourable manner.
Respondents seemed unaware of the reasons for
certain answer because of lack of memory on the
subject, or even boredom.
Most of the chosen respondents did not submit their
form.

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There was a lack of time and other resources as it was
not possible to conduct surveys at large levels so it is
only limited to a particular region of Kolkata.
CONSUMER BEHAVIOUR
Consumer behaviour is the behaviour that consumers display in searching for,
purchasing, using, evaluating and disposing the products and services that they expect to
satisfy their needs. Consumer behaviour is concerned with the social and economic
impacts that purchasing and consumption behaviour has on both theconsumer and wider
society. Consumer behaviour blends elements
from psychology, sociology, social anthropology, marketing and economics,
especially behavioural economics. It examines how emotions, attitudes and preferences
affect buying behaviour. Characteristics of individual consumers such
as demographics, personality lifestyles and behavioural variables such as usage rates,
usage occasion, loyalty, brand advocacy, willingness to provide referrals, in an attempt to
understand people's wants and consumption are all investigated in formal studies of
consumer behaviour. The study of consumer behaviour also investigates the influences,
on the consumer, from groups such as family, friends, sports, reference groups, and
society in general.
While all consumers are unique, one of the most important constants among all of
us, despite our differences, is that we are all consumers. We use or consume on regular
basis food, clothing, shelter, transportation, education, equipment, vacations,

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necessities, luxuries, services and even ideas. The purchase decision we make affect the
demand for basic raw materials, for transportation and for production.
In order to succeed in any business and especially in today’s dynamic and rapidly
evolving marketplace, marketers need to know everything they can about theconsumers-
what they want, what they think, how they think, how they work and how they spend
their leisure time. They need to understand the personal and group influences that affect
consumer decisions and how these decisions are made.
CUSTOMER VALUE AND SATISFACTION
Customer value is the amount of benefits which customers get from purchasing
products and services. It can also be defined as the difference between the values
customer gains from using a product and cost of the product. Customer value is high if
the customer gains more benefits as compared to the cost of product and services and
customer value is low if the customer gains less benefits as compared to the product and
services cost.
Customer value is the amount of benefits which customers get from purchasing
products and services. It can also be defined as the difference between the values
customer gains from using a product and cost of the product. Customer value is high if
the customer gains more benefits as compared to the cost of product and services and

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customer value is low if the customer gains less benefits as compared to the product and
services cost.
In this world of extreme competition, companies with a total focus on customer
are going to be the winner. Companies must understand importance of customer
satisfaction and then build process around it. A satisfied customer will be a loyal
customer.
There are large offering of products and services available in the market. According
to various research and studies it has been confirmed that consumers will purchase
products, which given them maximum perceived value. This value comes from calculating
the cost associated with the emotional level decision like the brand image, corporate
brand, sales personnel image and functional image. If after the purchase product
performs as expected than customer is considered satisfied. A completely satisfied
customer is likely to repurchase the product and even promote the product.
IMPACT OF TECHNOLOGY ON
CONSUMER BEHAVIOUR
It’s often been said that the only thing you can count on is change. This is certainly
true in the area of retail. After all, half a century ago who could have predicted that we
would one day do much of our shopping from home through the use of computer
networks and virtual stores.

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Customers are connected
Almost everybody is living two lives, a vibrant online life and a somewhat boring
offline one. We are all connected in one platform or another through our network of
friends. We also own more than one device that keeps us updated. This means that we
thrive on being active and informed online, and Exact Target Marketing content verified
this from a study they did, whereby 91% of consumers indicated that access to content
across all devices was important.
New communication channels
In the past, a company provided customer service through emails –that did not get
prompt responses – and phone calls. These two communication tools had their own
challenges and favoured the company more; it was at their discretion what information
to give out.
Consumer expectations have changed
In the past, as a company you set the times that you were open for business, and
customers had to put up with it or stay without that particular product. Technology has
totally changed that, with the introduction of e-commerce and mobile phones, customers
can access products at anytime. They have raised expectations on what is acceptable

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customer service and what is not. As a business, you have to keep up with the changed
consumer behavior or be out of business.
Consumers now understand the power they have and will use it when not satisfied
with a service. A simple expression of their dissatisfaction on your social media that is not
responded to immediately will ignite uproar from other customers who were OK with
your products and service.
FACTORS INFLUENCING CONSUMER
BEHAVIOUR

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The consumer behaviour or buyer behaviour is influenced by several factors or
forces. They are:
1. Psychological factors
2. Social factors
3. Cultural factors
4. Economic factors
5. Personal factors
INTERNAL OR PSYCHOLOGICAL FACTORS
The buying behaviour of consumers is influenced by a number of internal or
psychological factors. The most important ones Motivation and Perception.
I) Motivation:
A need becomes a motive when it is aroused to a sufficient level of intensity. A
motive is a need that is sufficiently pressing to drive the person to act. There can
be of types of needs:
1. Biogenic needs:
They arise from physiological states of tension such as thirst, hunger
2. Psychogenic needs:
They arise from psychological states of tension such as needs for recognition,
esteem
II) Perception:
In effect, the brain makes automatic decisions as to what is relevant and what is
not. Even though there may be many things happening around you, you are
unaware of most of them; in fact, experiments have shown that someinformation

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is filtered out by the optic nerve even before it gets to the brain. People quickly
learn to ignore extraneous noises: for example, as a visitor to someone else’s
home you may be sharply aware of a loudly ticking clock, whereas your host may
be entirely used to it, and unaware of it except when making a conscious effort to
check that the clock is still running.
SOCIAL FACTORS
Man is a social animal. Hence, our behaviour patterns, likes and dislikes are
influenced by the people around us to a great extent. We always seek confirmation from
the people around us and seldom do things that are not socially acceptable. The social
factors influencing consumer behaviour are a) Family, b) Reference Groups, c) Roles and
status.
a) Family:
There are two types of families in the buyer’s life viz. nuclear family and Joint
family. The family influence on the buying behaviour of a member may be found
in two ways
i) The family influence on the individual personality, characteristics, attitudes and
evaluation criteria and
ii) The influence on the decision-making process involved in the purchase of goods
and services. In India, the head of the family may alone or jointly with his wife
decides thepurchase. So marketers should study therole and the relative influence
of the husband, wife and children in the purchase of goods and services.
b) Reference group:
A group is two or more persons who share a set of norms and whose
relationship makes their behaviour interdependent. A reference group is a group
of people with whom an individual associates. It is a group of people who strongly
influence a person’s attitudes values and behaviour directly or indirectly.
Reference groups fall into many possible grouping, which are not necessarily to be
exhaustive (i.e. non over-lapping). The various reference groups are:
i) Membership or contractual groups:

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They are those groups to which the person belongs, and interacts. These
groups have a direct influence on their member’s behaviour.
ii) Primary or normative groups:
They refer to groups of friends, family members, neighbours co-workers etc.
whom we see most often. In this case, there is fairly continuous or regular, but
informal interaction with cohesiveness and mutual participation, which result
in similar beliefs and behaviour within the group.
iii) Secondary groups:
They include religious groups, professional groups etc., which are composed of
people whom we see occasionally. These groups are less influential in
shaping attitudes and controlling behaviour but can exert influence on
behaviour within the purview of the subject of mutual interest. For example,
you can be member of a philately or literary club where you candiscuss on
mutually interesting subjects.
iv) Aspiration group:
These are group to which a person would like to join as member. These
groups can be very powerful in influencing behaviour because the individual will
often adopt the behaviour of the aspirational group in the hopes of being
accepted as a member. Sometimes the aspirational groups are better off
financially, or will be more powerful; the desire join such groups is usually
classed as ambition.
c) Roles and status:
A person participates in many groups like family, clubs, and organizations. The
person’s position in each group can be defined in tern of role and status. A role
consists of the activities that a person is expected to perform. Each role carries a
status. People choose products that communicate their role and status in society.
Marketers must be aware of the status symbol potential of products and brands.

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CULTURAL FACTORS
Kotler observed that human behaviour is largely the result of a learning process
and as such individuals grow up learning a set of values, perceptions, preferences and
behaviour patterns as the result of socialisation both within the family and a series of
other key institutions.
Cultural factors consist of a) Culture, b) Sub culture and c) Social class.
a) Culture:
Culture is the most fundamental determinant of a person’s want and behaviour.
The growing child acquires a set of values, perception preferences and behaviours
through his or her family and other key institutions. Culture influences
considerably the pattern of consumption and the pattern of decision-making.
Marketers have to explore the cultural forces and have to frame marketing
strategies for each category of culture separately to push up the sales of their
products or services.
b) Sub-Culture:
Each culture consists of smaller sub-cultures that provide more specific
identification and socialization for their members. Sub-culture refers to a set of
beliefs shared by a subgroup of the main culture, which include nationalities,
religions, racial groups and geographic regions. Many sub-Cultures make up
important market segments and marketers have to design products and marketing
programs tailored to their needs.
c) Social class:
Consumer behaviour is determined by the social class to which they belong. The
classification of socioeconomic groups is known as Socio-Economic Classification
(SEC). Social class is relatively a permanent and ordered division in a society whose
members share similar value, interest and behaviour.
ECONOMIC FACTOR

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Consumer behaviour is influenced largely by economic factors. Economic factors
that influence consumer behaviour are:
a) Personal Income:
The personal income of a person is determinant of his buying behaviour. The gross
personal income of a person consists of disposable income and discretionary
income. The disposable personal income refers to the actual income (i.e. money
balance) remaining at the disposal of a person after deducting taxes and
compulsorily deductible items from the gross income. An increase in the
disposable income leads to an increase in the expenditure on various items. A fall
in the disposable income, on the other hand, leads to a fall in the expenditure on
various items.
b) Family income:
Family income influences the buying behaviour of the family. The surplus family
income, remaining after the expenditure on the basic needs of the family, is made
available for buying shopping goods, durables and luxuries.
c) Income Expectations:
Income expectations are one of the important determinants of the buying
behaviour of an individual. If he expects any increase in his income, he is tempted
to spend more on shopping goods, durable goods and luxuries. On the other hand,
if he expects any fall in his future income, he will curtail his expenditure on
comforts and luxuries and restrict his expenditure to bare necessities.
d) Savings:
Savings also influence the buying behaviour of an individual. A change in the
amount of savings leads to a change in the expenditure of an individual. If a person
decides to save more out of his present income, he will spend less on comforts and
luxuries.
e) Liquid assets:
Liquid assets refer to those assets, which can be converted into cash quickly
without any loss. Liquid assets include cash in hand, bank balance, marketable
securities etc. If an individual has more liquid assets, he goes in for buying comforts

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and luxuries. On the other hand, if he has less liquid assets, he cannot spend more
on buying comforts and luxuries.
f) Consumer credit:
Consumer credit refers to the credit facility available to the consumers desirous of
purchasing durable comforts and luxuries. It is made available by the sellers, either
directly or indirect у through banks and other financial institutions.
PERSONAL FACTOR
Personal factors also influence buyer behaviour. The important personal factors,
which influence buyer behaviour, are a) Age, b) Occupation, c) Income and d) Life Style
a) Age:
Age of a person is one of the important personal factors influencing buyer
behaviour. People buy different products at their different stages of cycle. Their
taste, preference, etc. also change with change in life cycle.
b) Occupation:
Occupation or profession of a person influences his buying behaviour. The life
styles and buying considerations and decisions differ widely according to the
nature of the occupation. For instance, the buying of a doctor can be easily
differentiated from that of a lawyer, teacher, clerk businessman, landlord, etc. So,
the marketing managers have to design different marketing strategies suit the
buying motives of different occupational groups.
c) Income:
Income level of people is another factor which can exert influence in shaping the
consumption pattern. Income is an important source of purchasing power. So,
buying pattern of people differs with different levels of income.
d) Life Style:
Marketing managers have to design different marketing strategies to suit the life
styles of the consumers.

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BUYER’S DECISION PROCESS
Far too often, retailers think that consumer buying is randomized. That certain
products appeal to certain customers and that a purchase either happens or it doesn’t.
They approach product and service marketing in the same way, based on trial and error.

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There are six stages to the consumer buying process, and as a marketer, you can market to them
effectively.
1.Problem Recognition
Put simply, before a purchase can ever take place, the customer must have a
reason to believe that what they want, where they want to be or how they perceive
themselves or a situation is different from where they actually are. The desire is
different from the reality – this presents a problem for the customer.
2. Information Search
Once a problem is recognized, the customer search process begins. They know
there is an issueand they’re looking for a solution. If it’s a new makeup foundation,
they look for foundation; if it’s a new refrigerator with all the newest technology
thrown in, they start looking at refrigerators – it’s fairly straight forward.
3. Evaluation of Alternatives
Just because you stand out among the competition doesn’t mean a customer will
absolutely purchase your product or service. In fact, now more than ever,
customers want to be sure they’ve done thorough research prior to making a
purchase. Because of this, even though they may be sure of what they want, they’ll
still want to compare other options to ensure their decision is the right one.
4. Purchase Decision
Somewhat surprisingly, thepurchase decision falls near the middleof the six stages
of the consumer buying process. At this point, the customer has explored
multiple options, they understand pricing and payment options and they are
deciding whether to move forward with the purchase or not. That’s right, at this
point they could still decide to walk away.
5. Purchase
A need has been created, research has been completed and the customer has
decided to make a purchase. All the stages that lead to a conversion have been

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finished. However, this doesn’t mean it’s a sure thing. A consumer could still be
lost. Marketing is just as important during this stage as during the previous.
6. Post-Purchase Evaluation
Just because a purchase has been made, the process has not ended. In fact,
revenues and customer loyalty can be easily lost. After a purchase is made, it’s
inevitable that the customer must decide whether they are satisfied with the
decision that was made or not. If a customer feels as though an incorrect decision
was made, a return could take place.
CONSUMER’S DECISION STYLE
A decision-making style is defined as a "mental orientation characterising a
consumer's approach to making choices. Consumer’s decision style consistsof eight

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factors, such as price-sensitivity, quality-consciousness, brand-consciousness, novelty-
seeking, fashion-consciousness and habit. Based on these factors, the authors developed
a typology of eight distinct decision-making styles:
 Quality conscious/Perfectionist: Quality-consciousness is characterised by a
consumer’s search for the very best quality in products. Quality conscious consumers
tend to shop systematically making more comparisons and shopping around.
 Brand-conscious: Brand-consciousness is characterised by a tendency to buy
expensive, well-known brands or designer labels. Those who score high on brand-
consciousness tend to believe that the higher prices are an indicator of quality and
exhibit a preference for department stores or top-tier retail outlets.
 Recreation-conscious/ Hedonistic: Recreational shopping is characterised by the
consumer’s engagement in the purchase process. Those who score high on
recreation-consciousness regard shopping itself as a form of enjoyment.
 Price-conscious: A consumer who exhibits price-and-value consciousness. Price-
conscious shoppers carefully shop around seeking lower prices, sales or discounts and
are motivated by obtaining the best value for money
 Novelty/fashion-conscious: Consumers are characterised by their tendency to seek
out new products or new experiences for thesake of excitement, who gain excitement
from seeking new things.
 Impulsive: Impulsiveconsumers are somewhat careless in making purchase decisions,
buy on the spur of the moment and are not overly concerned with expenditure levels
or obtaining value.
 Confused (by over-choice): Consumers are characterised by the confusion caused by
too many product choices, too many stores or an overload of product information and
tend to experience information overload.
 Habitual / brand loyal: Habitual/brand loyal consumers are characterised by their
tendency to follow a routine purchase pattern on each purchase occasion.

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Risk perception and risk reduction
activities
The consumer's perceptions of risk are a major consideration in the pre-purchase
stage of the purchasing decision. Risk consists of two dimensions: consequences - the
degree of importance or the severity of an outcome and uncertainty - the consumer's
subjective assessment of the likelihood of occurrence.
If a consumer perceives a purchase to be risky, he or she will engage in strategies
to reduce the perceived risk until it is within their tolerance levels or, if they are unable
to do so, withdraw from the purchase.
Typical, risk-reduction strategies include:
 Advertising and Promotional Messages: Pay closer attention to product or brand
related promotion including advertising messages
 Shopping Around: Comparing offers and prices, inspecting the merchandise
 Buy Known Brand: Using a known, reputable brand as an indicator of quality
merchandise
 Buy from Reputable Store: Relying on a reputable retail outlet as an indicator of
quality
 Product Reviews: Reading independent reviews in main media (e.g. newspapers,
magazines), written by independent experts
 Online product reviews or consumer-generated testimonials: Reading about the
experiences of other consumers (e.g. TripAdvisor, Amazon customer reviews)
 Sampling or Limited-scale Trial: Where practical, obtaining samples, free trial or a
'test-drive' prior to purchase
 Manufacturer Specifications: Reading information provided by manufacturers e.g.
brochures or specs
 Referrals: Obtaining referrals from friends or relatives
 Sales Representatives: Talking to sales reps in retail outlets

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 Product Guarantees: Looking for formal guarantees or warranties
INTRODUCTION TO CONSUMER
ELECTRONICS
Home appliances are electrical/mechanical machines which accomplish some
household functions, such as cooling/heating, cooking or cleaning. Home appliance can
be classified into:
 Major appliance or white goods
 Small appliance
 Consumer electronics or brown goods
This division is also noticeable in the maintenance and repair of these kinds 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 may need more practical skills and "brute force" to
manipulate the devices and heavy tools required to repair them.
HISTORY
While many appliances have existed for centuries, the self-contained electric or
gas powered appliances are a uniquely American innovation that emerged in the
twentieth century. The development of these appliances is tied the disappearance of full-
time domestic servants and the desire to reduce the time consuming activities in pursuit
of more recreational time. In the early 1900s, electric and gas appliances
included washing machines, water heaters, refrigerators and sewing machines. The
invention of Earl Richardson's small electric clothes iron in 1903 gave a small initial boost
to the home appliance industry. In the Post–World War II economic expansion, the
domestic use of dishwashers, and clothes dryers were part of a shift for convenience.
Increasing discretionary income was reflected by a rise in miscellaneous home
appliances.

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In America during the 1980s, theindustry shipped $1.5 billion worth of goods each
year and employed over 14,000 workers, with revenues doubling between 1982and 1990
to $3.3 billion. Throughout this period companies merged and acquired one another to
reduce research and production costs and eliminate competitors, resulting in anti-trust
legislation.
The United States Department of Energy reviews compliance with the National
Appliance Energy Conservation Act of 1987, which required manufacturers to reduce the
energy consumption of the appliances by 25% every five years.
In the 1990s, the appliance industry was very consolidated, with over 90% of the
products being sold by just five companies. For example, in
1991, dishwasher manufacturing market share was split between General Electric with
40% market share, Whirlpool with 31% market share, Electrolux with 20% market
share, Maytag with 7% market share and Thermador with just 2% of market share.
TYPES OF APPLIANCES
 Major appliances:
Major appliances, also known as white goods, comprise major household
appliances and may include: air conditioners, dishwashers, clothes dryers, drying
cabinets, freezers, refrigerators, kitchen stoves, water heaters, washing
machines, trash compactors, microwave ovens and induction cookers.
 Small appliances:
They the small and easily carried and installed appliances. These consists of fans,
heaters, rice cookers, toasters, etc.
CHANGES IN INDUSTRY
The electronics industry has been revolutionized over the last 10 years. Market
demands and increased expectations for smart data anytime, anywhere, are at the heart
of this amazing electronics revolution. Expectations driving change are always centered
around the need for smaller, lighter, faster, and more durable products. People now
expect everything to be “smart” and for technology to conform to a rapid, fast-paced, and
constantly “connected” lifestyle.

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CURRENT SCENARIO
Electric household appliances market size is anticipated to reach 1.5 billion units
by 2023. Technological innovations accompanied by increasing obsolesce of products is
likely to drive the industry growth. Proliferating replacement needs along with rising
income levels of middle class is expected to elevate the industry demand over the forecast
period. Surge in the industry can be attributed to increasing investments in research and
development activities in order to offer better products to the consumers. In addition,
escalating consciousness for home restructuring and renovation might act as catalyst for
boosting demand of these products.
Electric household appliances are time saving equipment that makes life less
stressful and simple. It aids in providing comfort and better lifestyle by offering
convenience and utility to the consumers. The rise in demand of these appliances
depends mainly upon certain factors such as technology implied, functionality offered,
energy efficiency and aesthetics. Furthermore, growing dual source of income among
nuclear families, higher disposable income as well as increasing per capita expenditure on
lifestyle products is likely to positively impact the industry demand. Certain attributes
such as social factors, cultural factors and economic factors are estimated to have
considerable impact during the coming few years.

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The industry today is likely to witness steady inflow of expensive household
products with innovative characteristics that enables the user with superior home care
solutions and thus aids in reducing human labour. Manufacturers are now focusing on
development of smart as well as autonomous products by integrating intelligent
equipment such as electronic controls, sensors and pairing it with machine programming
concepts. Technological enhancements in product performance and efficiency of these
devices are likely to drive electric household appliances market over the forecast period.
Significant opportunities exist for electric household appliances retail market space.
Products equipped with smart grid such as refrigerators, water heaters and dish
washers are now being developed in order to facilitate customers to tackle their
electricity consumption pattern. Rising awareness towards home automation is likely to
increase the number of electric household appliances. Operators are estimated to
experience fierce competition from the retailers outside the industry. Growing
consciousness about online shopping might also hamper the industry demand. Moreover,
these smart appliances are forecast to exhibit high growth prospects owing to increasing
government initiatives for reducing energy consumption as well as ascending electricity
prices. Electric household appliances with sophisticated compact designs along with
energy efficient attributes are expected to witness eminent growth rate over the forecast
period.
Asia Pacific electric household appliances market is anticipated witness huge
demand for room A.Cs, washing machines and microwave ovens. It is likely to grow at a
CAGR of over 6.5% from 2016 to 2023. The surge in the region can be attributed to
numerous factors such as high GDP rates, increasing affluence of middle class population,
rapid urbanization, proliferating number of households, westernization of population,
improving standard of living as well as escalating disposable income.
North America, Europe and Japan are likely to witness considerable growth owing
to rising replacement needs for obsolete as well as older products in the region. As of July
2015, Australian appliance industry is anticipated to hamper its growth owing to growing
competition from low cost manufacturers from other Asian counties. High import
penetration rate coupled with competitive pricing are anticipated to hider the domestic
production of appliances.
Key players in electric household appliances market share includes BSH Bosch,
Siemens, AB Electrolux, GE Appliances & Lighting, Haier Group, Groupe SEB, Hamilton
Beach Brands, Indesit Company, Hitachi Appliances, Jarden Corporation, Panasonic
Corporation, LG Electronics Inc, Mitsubishi Electric Corporation, Samsung Electronics,

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Miele & CIE, Royal Philips Electronics NV, Spectrum Brand Holdings, Maytag Corporation
and Whirlpool Corp among others.
HOME APPLIANCE INDUSTRY
ABOUT THE HOME APPLIANCE INDUSTRY
The home appliance industry has played a major role in the growth of the
economy in theWest in the last two decades. Major players like GE, Electrolux, Whirlpool,
Phillips and Zanussi made large investments for setting up modern, large-capacity
manufacturing plants in the United States and Europe, to take advantage of economies
of scale. Japan and Korea were the other countries that made rapid strides in this
field. In 2005, approximately 210 million units of appliances were sold worldwide,
generating more than $50 billion in revenue for the manufacturers.
The global appliance industry has undergone drastic changes in recent
times. There was enormous consolidation to achieve economies of scale, product
synergies and strong brand presence. But having achieved a desired reduction in cost,
companies needed bigger markets to sell the products. In the US and most of Europe, the
home appliance market was saturated because of penetration rates that went as high as
99.5%. Declining rates of population growth in these countries also meant that the scope
of future growth was limited.

27. P a g e | 27
There were also major advancements in technology, which made the
industry a tough and highly competitive one in the West. So the appliance-
manufacturing majors needed a spurt in international business to offset the
effects of recession in one country. Thus the need to establish global foot
holds for their products became imperative which they achieved by joint
ventures, strategic alliances or Mergers and Acquisitions.
Leading appliance manufacturers in the West realized that volumes and
profits were only sustainable in a growing market. Developing countries with
high population growth rates and rapidly expanding incomes became their
targets. The emerging markets of Asia presented ideal opportunities: 80
million consumers are projected to be added here between 1994 and 2004,
against a paltry 10 million in Europe. With a projected CAGR of 10% in the next
five years in Asia, the demand potential is immense from an existing 56 million
units in 1996 to over 120 million by 2006.
As of early 1990, Electrolux of Sweden and Whirlpool of USA, the two
largest competitors in the major home appliance industry worldwide,
consolidated the number of product platforms as part of their strategy to
globalize their industry. General Electric, the third largest Competitor, limited
its commitment to globalization. Maytag dismantled its international
operations and pulled back to its domestic markets. Germany based Bosch-
Siemen moved to globalize on a smaller scale. Merloni of Italy emphasized sale
to Russia.
All the major western players entered emerging Chinese and Indian
markets in 90’s, mostly through joint ventures. Whirlpool invested U$ 200
million in China to what were originally four Joint Ventures. It invested U$ 200
in India for two acquisitions and set up a global no frost refrigerator factory at
a cost of U$ 100 million. Electrolux setup a large compressor manufacturing
factory in China and acquired four refrigerator and washer units
in India. Maytag invested U$ 70 million in China, the only operations
outside North America. GE, in contrast, formed JV’s under which products from
local manufacturers would be marketed under the GE brand. In India it had a
JV with 40% equity. However, in China, local competitors like Haier who
followed low-cost strategies, have emerged and are mounting serious
challenges to foreign competitors. This has even lead Whirlpool to sell two of

28. P a g e | 28
its four original joint ventures in China. In India, however, Whirlpool and
Electrolux (now Videocon) are deeply entrenched and have over 40% of the
market share. Presently China is the largest producer of Refrigerators in the
World with a production of 11.99 million units in 2005.
COMPETITIVE FORCES
To be a leader in a particular market or sector, firms want to match or
pre-empt the competitors’ move. These moves include expanding within major
markets being the first to introduce new products or services. The European
and US major appliance manufacturers Electrolux and Whirlpool entered the
Indian market in the mid-1990’s. LG and Samsung of Korea did not want to
leave this market to its rivals and hence made its entry in the market in
2000. Haier of China find this a lucrative market and has entered in 2005.
The survey indicates this as a strong driver for entry strategy. LG. and
Samsung, though late have been driven to go global in the appliance business.
The global drivers change with the change in business environment,
which requires a change in global strategy. In the European major appliance
industry, in the 1970s, a ‘regional standardization’ strategy was successful for
some key competitors (Levitt, 1983), but in the 19 80s the situation appears to
have turned around and the most successful strategy seemed to be ‘national’.
COST DRIVERS

29. P a g e | 29
Labor and other costs vary across countries. Manufacturing of products
in low cost or high-skill countries can increase productivity and reduce cost.
Whirlpool manufactures and ships to the US one million microwaves from
their Shunde plant in China, taking advantage of the low cost.
Global customers buy on a centralized basis, getting advantage of a
discount of large volume. Having a single global procurement agency makes it
easier for a global customer to negotiate a single global price. Rationalization
of the same material order gives a low- cost production advantage.
Whirlpool India leverages purchase of steel and plastic from global
procurement department at Benton Harbor, USA, and thus gets a better
price. Development of the global and regional products can reduce the
product development cost. Whirlpool has developed a common ‘no -frost’
refrigerator for sale in Brazil, China and India.
Our survey indicates that cost advantage has driven most of the
multinationals to go global. Whirlpool Corporation entered the European
market for cost advantage. The Japanese have recently made Thailand their
manufacturing hub for the same reason.
ADVANCES IN TECHNOLOGY
The economies of scale due to advancements in manufacturing
technology are an important driver for companies to go
global. Zanussi’s Sovergona refrigerator plant in Italy with a production
capacity of 50,000 annually was a viable facility. Due to advances in
technology, i.e. automation and robotization, the capacity was increased to
1,00,000. To sell this extra production, the company had to search new
markets in other countries.
GOVERNMENT POLICY
Government policy driver depends on the rules set by the national
governments and effects global strategy. The easing of government
restrictions and WTO regulations have set off a rush for expanded markets
participation. The US or European companies could not consider setting up an
appliance factory in India before the liberalization policy in1991. The threat of

30. P a g e | 30
the US on tariffs has prompted the Chinese manufacturer Haier to set up a
plant in US for the manufacturing of refrigerators.
However, the expert opinion survey indicates government policy to be
the least effective driver to go global, though this was a major issue in the
1980s.
MAJOR PLAYERS
Samsung India:
Samsung India commenced its operations in India in December 1995, is today a
leading provider of Consumer Electronics, IT and Telecom products in the Indian market.
Samsung India is the Regional Headquarters for Samsung’s Southwest Asia operations,
which provides employment to over 45,000 employees with around 11,500 employees
being involved in R&D.
Samsung began operations in India through its manufacturing complex located at
Noida (UP), which today houses facilities for Colour Televisions (including 3D, LED and LCD
Televisions), Mobile Phones, Refrigerators, Washing Machines and Split Air Conditioners
categories. Samsung commenced operations of its second state-of-the-art manufacturing
complex at Sriperumbudur, Tamil Nadu in November 2007. Today, the Sriperumbudur
facility manufactures Colour Televisions, Fully Automatic Front Loading Washing
Machines, Refrigerators and Split Air Conditioners. Samsung India has three R&D Centres
in India–two in NCR and one in Bangalore. While the Noida R&D Centres develops
software solutions for high-end televisions such as Plasma TVs, LCD TVs and Digital Media
Products, the other Centre is engaged in R&D solutions for product hardware. The
Bangalore R&D Centre works on major projects for Samsung Electronics in the area of
telecom, wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital
Printing and other multimedia/digital media as well as application software.
Whrilpool India:
Whirlpool, right from its inception in 1911 as first commercial manufacturer of
motorized washers to the current market position of being world's number one
manufacturer and marketer of major home appliances, has always set industry milestones

31. P a g e | 31
and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA
with a global presence in over 170 countries and manufacturing operation in 13 countries
with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht,
Laden and Ignis. Today, Whirlpool is the most recognized brand in home appliances in
India and holds a market share of over 25%.
The company boasts of resources and capabilities beyond achievable feat of any
other in the industry. Whirlpool initiated its international expansion in 1958 by entering
Brazil. However, it emerged as truly global leader in the1980s. This encouraging trend
brought the company to India in the late 1980s. It forayed into the market under a joint
venture with TVS group and established the first Whirlpool manufacturing facility in
Pondicherry.
Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into
Indian refrigerator market as well. The same year also saw acquisition of major share in
TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to
create Indian home appliance leader of the future, Whirlpool India. This expanded the
company's portfolio in the Indian subcontinent to washing machines, refrigerator,
microwave ovens and air conditioners.
LG Indian:
LG Electronics was established on October 1, 1958(As a private Company) in Korea
and in 1959, L.G.E initially started manufacturing radios, presently has operating 77
subsidiaries around the world with over 72,000 employees worldwide. It is one of the
major giants in the consumer Durable domain worldwide. The company has as many as
27 R & D centers and 5 design centers. Its Global leading products include residential air
conditioners, DVD players, CDMA handsets, home theatre systems and optical storage
systems. It is started operating in India since 1997.
Godrej Indian:
Godrej India was established in 1897, the Company was incorporated with
limited liability on March 3, 1932, under the Indian Companies Act, 1913. The Company
is one of the largest privately-held diversified industrial corporations in India. The
Company has a network of 38 Company-owned Retail Stores, more than 2,200

32. P a g e | 32
Wholesale Dealers, and more than 18,000 Retail Outlets. The Company has 53
Representative Offices in Sharjah (UAE), Nairobi (Kenya), Colombo (Sri Lanka), Riyadh
(Saudi Arabia) and Guangzhou (China-PRC).
Sony India:
Sony Corporation, Japan, established its India operations in November 1994,
focusing on thesales and marketing of Sony products in the country. In a span of 19years,
Sony India has exemplified the quest for excellence in the world of digital lifestyle
becoming the country’s foremost consumer electronics brand. With relentless
commitment to quality, consistent dedication to customer satisfaction and unparalleled
standards of service, Sony India is recognized as a benchmark for new age technology,
superior quality, digital concepts and personalized service that has ensured loyal
customers and nationwide acclaim in the industry.
Hitachi India:
Hitachi India Ltd (HIL) was established in June 1998 and engaged in marketing and
sells a wide range of products ranging from Power and Industrial Systems, Industrial
Components & Equipment, Air Conditioning & Refrigeration Equipment to International
Procurement of software, materials, and components. Some of HIL’s product range
includes Semiconductors and Display Components. It also supports the saleof Plasma TVs,
LCD TVs, LCD Projectors, Smart Boards, and DVD Camcorders.
SWOT ANALYSIS

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COMPANY PROFILE
Company Name: Continental Electric & Trading
Company
Sole Proprietor: Mr. Satya Narayan Kedia

34. P a g e | 34
Address: 26/1,Pollock Street, Kolkata- 700001
(India)
Business type: Wholesaler/Distributor/Supplier
Products Distributor and Supplier: Light, lamp, fan,
ceiling fan, stand
fan
Company History
Foundation of the company:
Continental Electric & Trading Co. began in 1955 as a small proprietorship firm for
electric fans. For next 2 years, the firm has effectively established its name in the market.
In 1981, the firm grew rapidly and today it is listed among the leading firms in the market.
Innovative Fan Suppliers:
For last three decades, Continental Electric & Trading Co. has introduced various
models and new technology lights and fans to satisfy the needs of its customers all over
the world. It has always been the first among the other light and fan dealers of that areas
to bring new and better technology lights and fans.
Awards:

35. P a g e | 35
“The Express Intelligent Enterprise Awards for Innovative IT Implementation”-2011, by
Indian Express.
“New Distributor Lexus Appliance Commendation Award”-2006, by USHA.
Success Through Quality:
Continental Electric & Trading Co. was a success due to the quality and durability
of its products in the markets, where they were introduced. To provide the most
advanced and highest product quality to its customers, the firm has continuously brought
in latest technologies.
Expanding Product Line:
As part of the mission to expand its product line, the firm started offering quality
branded products since,1958 and now the firm has diverse product range including both
lights and fans.
Objectives of the company
Firm’s Mission
Our goal is to exceed customer satisfaction through providing supreme quality
products and supply high standard products that last a lifetime.
Firm’s Philosophy

36. P a g e | 36
We aim to be the Global Market Leaders among the fan dealers and add to our
portfolio of Extraordinary Quality Home appliances, by being highly competitive on the
basis of providing unmatched Strong, Reliable and Beautifully Crafted Products.
Firm’s Values
We intend to surpass consumer loyalty through providing quality products that
lasts for longer periods.
Integrity
We are known all over the market place for our strong moral principles, not only
in providing best quality products but also with regards to our customer relationships.
Innovation
Our firm is always on the lookout for new technology and by fostering a culture of
innovation we are able to suggest the manufacturers regarding the behaviour of the
consumers.
Collaboration
Continental Electric & Trading Co. is known for its corporate culture based on
family values.
RESEARCH METHODOLOGY
TYPES OF RESEARCH METHODOLOGY

37. P a g e | 37
Qualitative :
This type of research methods involves describing in detail specific situation using
research tools like interviews, surveys and observations. Qualitative data collection
methods vary using unstructured or semi-structured techniques. Some common methods
include focus groups, individual interviews, and participation/observations. The sample
size is typically small, and respondents are selected to fulfill a given quota.
Quantitative :
This type of research methods requires quantifiable data involving numerical and
statistical explanations. It is used to quantify attitudes, opinions, behaviors, and other
defined variables to generalize results from a larger sample population. Quantitative data
collection methhelloys, face-to-face interviews, telephone interviews, longitudinal
studies, website interceptors, online polls, and systematic observations.
Correlation/Regression Analysis :
This research method involves determining the strength of the relationship
between two or more variables.
Meta-Analysis :
This research method is useful for finding out the average impact of several
different studies.
SELECTION OF APPROPRIATE METHODS
OF DATA COLLECTION
Nature, Scope and Objective of Enquiry-

38. P a g e | 38
This constitutes of the most important factor affecting the choice of a particular
method. The method selected should be such that it suits the type of enquiry that is to be
conducted. In the research, this factor is also important in deciding whether the data
already available are to be used or the data not yet available are to be collected.
Availability of Funds-
Availability of funds for the research project determines to a large extent the
method to be used for data collection. When the funds are low, the researcher have to
select a cheaper method.
Time Factor-
Availability of time is also to be taken into account in deciding a particular method
of data collection. Some methods take relatively more timewhereas with others the data
can be collected in a comparatively shorter duration.
Precision Required-
Precision required is yet another factor to be considered at the time of selecting
the method of collection of data.
RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing
research project. It details the procedures necessary for obtaining the information
needed to structure or solve marketing research problems. In simple words it is the
general plan of how you will go about your research.
The function of a research design is to ensure that requisite data in accordance
with the problem at hand is collected accurately and economically. Simply stated, it is the

39. P a g e | 39
framework, a blueprint for the research study which guides the collection and analysis of
data. The research design, depending upon the needs of the researcher may be a very
detailed statement or only furnish the minimum information required for planning the
research project.
 To achieve the objective, it was necessary to talk to the recent customers of
household electric appliance.
 For approaching the customers (both online survey and field survey) to collect
relevant information and documenting those: a questionnaire was needed. The
questionnaire was prepared by me and it was in such a manner to achieve the
objectives of the research.
TYPES OF DATA
THERE ARE BASICALLY 2 TYPES OF DATA

40. P a g e | 40
Primary Data
The data collected first hand by one (investigation/agency), is known as primary data.
In this project primary data was collected by:
 Interview method
 Questionnaire method
Secondary Data
The data which is already collected by the agencies and then used by others is called
secondary data.
In this project secondary data is collected from internet sites, newspapers and
magazines.
ABOUT THE SURVEY
The purpose of this survey is to assess the marketing
priorities/strategies, and create a benchmark for improved
services.

41. P a g e | 41
As part of the survey, respondents were supposed to state
their preferences and opinions on issues for the household
electronic products.
SAMPLE SIZE :
I havetaken samplesize of 89 consumers who haverecently
purchased household electric appliance.
SAMPLNG UNIT :
The respondents who were asked to fill the questionnaires
are the Sampling Unit. These comprise of Government
employees, businessmen, bachelors, etc.
SAMPLING AREA:
I had to collect data from the recent buyers of household
electric appliance and my area was Behala, Kolkata.
QUESTIONNAIRE
A questionnaire is a research instrument consisting of a series of questions and
other prompts for the purpose of gathering information from respondents. Although they
are often designed for statistical analysis of the responses.

42. P a g e | 42
QUESTIONNAIRE FORMAT :
Name : __________________________________________________________________ Age : _______
Sex : Male ( ) Female ( )
FamilyIncome (Monthly)
(i) Upto 20000 ( ) (ii) 20000-50000 ( )
(iii) 50000-100000 ( ) (iv) Above 100000 ( )
FamilyKind
(i) NuclearFamily( ) (ii) JointFamily( )
Questionnaire
1) What householdelectricappliance have yourecentlypurchased?
Productname : _________________________________________________________________
Brand name : ___________________________________________________________________
2) Price of the product:
(i) Upto 5000 ( ) (ii) 5000-10000 ( )
(iii) 10000-20000 ( ) (iv) Above 20000 ( )
3) Reasonsto purchase the item:
(i) Newfunctionseeninthe product( )
(ii) Betterandmodernitemsavailable ( )
(iii) Change inlifestyleandconsumerawareness( )
4) On whatbasishave youchosenthat specificbrand(please rank)?
(i) Superiorquality/Technology ( )
(ii) Price/value formoney ( )
(iii) Durability ( )
(iv) Brandimage ( )
(v) Financial ( )

43. P a g e | 43
(vi) CelebrityEndorsement ( )
(vii) Recommendedbyothers ( )
5) From where didyouknowaboutyourbrand?
(i) Printmedia ( )
(ii) Broadcastingmedia ( )
(iii) Hoarding/glowingsignboard ( )
(iv) Wordof mouth ( )
6) How manypeople of yourfamilydoinvolveinpurchasingdecisionmaking?
(i) Husband(Individual) ( )
(ii) Wife (Individual) ( )
(iii) Husband&Wife (Both) ( )
(iv) Entire family ( )
7) How muchare you satisfiedwithyourcurrentpurchase?
(i) Fully ( ) (ii) Partly ( )
(iii) NotSatisfied ( )
8) Whendidyou purchase the product?
(i) Whenpromotional schemesare open ( )
(ii) Whendemandandpricesare high ( )
(iii) Whendemandandpriceshave decreased ( )
9) What isyour opinionregardingabout‘AfterSalesService’of the product?
(i) Stronglyagree ( ) (ii) Agree ( )
(iii) Neutral ( ) (iv) Disagree ( )
(v) Stronglydisagree ( )
10) If someone inyourreference groupwantstopurchase the same product,wouldyousuggest
your companiesname?
(i) Yes ( ) (ii) No ( )
If No, thenwhy:________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

44. P a g e | 44
ANALYSIS: I have used pie charts, column graphs and some other statistical measures
to analyze the responds.

45. P a g e | 45
DATA ANALYSIS
I had made people aware about the research project I had to do. After knowing that most
of thehousehold showed interest in providing the information I needed from them. I have
collected their responding and analyzed those.
While collecting data through both field survey and online survey from the households,
many questions had been asked and had been noted down those data. Now, at the end
of the project I have analyzed the collected data. Here is some representation of my
analysis of the collected data.
INCOME DISTRIBUTION OF THE HOUSEHOLDS:
MONTHLY INCOME NO. OF PEOPLE PERCENTAGE OF PEOPLE
UPTO 20000 4 5%
20000-50000 26 29%
50000-100000 39 44%
ABOVE 100000 20 22%
UPTO 20000
5%
20000-50000
29%
50000-100000
44%
ABOVE 100000
22%
INCOME DISTRIBUTION
UPTO 20000
20000-50000
50000-100000
ABOVE 100000

46. P a g e | 46
INFERENCE:
The above income shown is the monthly income of the households I have considered
for the research.
 22% of the households earning above Rs. 1lakh mostly consistsof businessmen and
other high ranking Government employees.
 2% households earning less than Rs. 20000 are the retired persons.
WHAT ELECTRIC APPLIANCE HAVE YOU RECENTLY BOUGHT?
ITEMS
PURCHASED
AC REFRIGERATOR TV WASHING
MACHINE
GEYSER KITCHEN
APPLIANCE
SMALL
APPLIANCE
OTHER
APPLIANC
E
NO. OF
HOUSEHOLDS
10.1% 10.1% 6.7% 10.1% 5.6% 33.7% 13.5% 10.1%
INFERENCE:
 30 households had recently purchased kitchen appliance. So, it shows that most
people are influenced by new technologies that can be used in the kitchen.
9 9
6
9
5
30
12
9
0
5
10
15
20
25
30
35
ITEMS PURCHASED
ITEMS PURCHASED

47. P a g e | 47
 12 households had purchased small appliance. These are the daily using appliances
such as irons, vacuum cleaners, fans, etc.
 Other appliances include laptops, music systems, home theatres, personal care
appliances, etc.
WHAT BRAND HAVE YOU OPTED FOR?
BRAND
CHOSEN
SAMSUNG SONY GODREJ PHILIPS JBL IFB WHRILPOOL LG VOLTAS DAIKEN OTHERS
NO. OF
HOUSEHOLDS
8 4 4 13 3 3 5 8 2 2 37
INFERENCE:
It is seen that people are no longer such brand conscious. They accept all items having
good quality and which gives them value for the amount they have spent.
SAMSUNG
9%
SONY
5% GODREJ
4%
PHILIPS
15%
JBL
3%
IFB
3%WHRILPOOL
6%LG
9%
VOLTAS
2%
DAIKEN
2%
OTHERS
42%
BRANDS PURCHASED

48. P a g e | 48
PRICE OF THE PRODUCT PURCHASED:
PRICE RANGE OF THE PRODUCT (RS.) NO. OF HOUSEHOLDS PERCENTAGE
UPTO 5000 23 26%
5000-10000 19 21%
10000-20000 25 28%
ABOVE 20000 22 25%
INFERENCE:
It is seen that nowadays price is not a major issue to low and middle class people
due various installment schemes offered by the retailers and the brands stores to the
consumers.
REASONS TO PURCHASE THE APPLIANCE:
PRICE RANGE OF THE PRODUCT (RS.) NO. OF HOUSEHOLDS PERCENTAGE
NEW FUNCTION SEEN IN THE PRODUCT 28 31.11%
BETTER & MODERN ITEMS AVAILABLE 30 33.33%
UPTO 5000
26%
5000-10000
21%10000-20000
28%
ABOVE 20000
25%
PRICE RANGE OF THE PRODUCTS
UPTO 5000 5000-10000 10000-20000 ABOVE 20000

49. P a g e | 49
CHANGE IN LIFESTYLE & CONSUMER AWARENESS 46 52.22%
INFERENCE:
 Majority of the households have purchased the product due to change in their
lifestyle. So, it shows that the living standards of people are increasing as the
technology is developing.
 33.33% may had replace their old appliance since they had been using the
appliance for very long period.
 31.11% mainly consists of rich income group people who upgrade their appliance
due to new and better function seen the product.
31.11%
33.33%
52.22%
BASIS OF PURCHASE DECISION
NEW FUNCTION SEEN IN THE PRODUCT
BETTER & MODERN ITEMS AVAILABLE
CHANGE IN LIFESTYLE & CONSUMER AWARENESS

50. P a g e | 50
ON WHAT BASIS HAVE THE CONSUMERS CHOOSEN THE
BRAND?
INFERENCE:
BRAND SELECTED DUE TO SUPERIOR QUALITY AND TECHNOLOGY-
 12 persons have didn’t ranked superior quality/technology.
 59.74% were influenced by the quality and technology of the product and have
given it as their first preference for buying the appliance. This shows that the
people are very conscious regarding the quality of the product they purchased.
BRAND SELECTED DUE TO PRICE OR VALUE DERIVED BY SPENDING THE AMOUNT-
 78.7% of the respondents have ranked the above mentioned reason of selecting
the preferred brand.
SUPERIOR
QUALITY/TECH
NOLOGY
PRICE/VALUE
FOR MONEY
DURABILITY BRAND IMAGE FINANCIAL
CELEBRITY
ENDORSEMENT
RECOMMENDE
D BY OTHERS
RANK 1 46 19 2 9 2 2 2
RANK 2 17 25 9 22 3 3 1
RANK 3 5 15 20 21 3 1 7
RANK 4 3 5 24 6 6 5 9
RANK 5 2 4 3 13 12 1 9
RANK 6 1 1 3 2 6 7 7
RANK 7 3 1 0 3 3 8 9
REASONS TO OPT FOR THE PARTICULAR BRAND

51. P a g e | 51
 Most of the people have ranked this as their second preference. This shows that in
spiteof the various schemes of installments offered people are concerned with the
price factor of the item purchased.
BRAND SELECTED DUE TO DURABILITY OF THE PRODUCT-
 61 people have agreed to rank this.
 39.34% of thehouseholds have given this as their forth preference. This shows that
due to constant change in technologies people nowadays do not see the durability
of the product because they have a feeling that after few years new substitute for
the same appliance will be available in the market which they would want to
purchase.
BRAND SELECTED DUE TO THE COMPANY’S BRAND IMAGE -
Most of the people search for well-known brands due of the company’s well
established image in the markets and the sense of security felt by them after purchasing
its product.
 14.5% of the respondents ignored to rank it.
 28.95% and 27.63% have ranked this as their second and third preference for
opting the product.
BRAND SELECTED DUE TO THE SCHEMES OFFERED BY THE COMPANY WHICH WOULD
BENEFIT THE CUSTOMERS FINANCIALLY-
 Less than 50% of the respondents have ranked this.
 Most of the people have ranked this as their fifth preference. This is due to the fact
that the customers were hesitant to answer this as they didn’t want to present
themselves in an unfavourable manner.
 5.71% have ranked this as their first preference followed by 8.57% ranking as their
second preference.
BRAND SELECTED DUE TO CELEBRITY ENDORSEMENT-
Celebrity endorsements are mostly effective for the persons who are inspired by
celebrity’s lifestyle.
 Only 27 respondents have ranked this.

52. P a g e | 52
 Only 2 people have given this as their first preference for opting the brand. This
shows that the present consumers are not too much influenced only through
celebrity advertisings.
BRAND SELECTED DUE TO RECOMMENDATIONS FROM OTHERS-
People take advices from their friends and relatives before purchasing any electronic
item.
 Almost 50% have ranked this.
 20.45% have ranked this as their fourth, fifth and seventh preference.
FROM WHERE DID THE CONSUMERS KNOW ABOUT THE
BRAND?
SOURCE OF BRAND AWARENESS NO. OF HOUSEHOLDS PERCENTAGE
PRINTMEDIA 37 32%
BROADCASTMEDIA 46 39%
HOARDING/GLOWINGSIGN
BOARD
7 6%
WORD OF MOUTH 27 23%
32%
39%
6%
23%
BRAND AWARENESS
PRINT MEDIA BROADCAST MEDIA HOARDING/GLOWING SIGN BOARD WORD OF MOUTH

53. P a g e | 53
INFERENCE:
 Most of the people got to know about the brand through broadcast media and
print media. This shows that broadcast media and print media offers huge brand
recall so, these the advertisers must advertise the brands in an efficient and
attractive manner.
 Brand recall is very low through word of mouth from others and sign boards.
HOW MANY MEMBERS OF THE FAMILY ARE INVOLVED IN
THE PURCHASE DECISION MAKING?
MEMBERS INVOLVED IN PURCHASE DECISION NO. OF HOUSEHOLDS PERCENTAGE
HUSBAND 17 19%
WIFE 7 8%
HUSBAND & WIFE 30 34%
ENTIRE FAMILY 35 39%

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INFERENCE:
 In majority of the households the entire family have taken part in the decision
making process to purchase the product.
 In 36% of the households, husband and wife have made the purchasing decision.
SATISFACTION FROM BRANDS:
MEMBERS INVOLVED IN PURCHASE
DECISION
NO. OF HOUSEHOLDS PERCENTAGE
FULLY SATISFIED 73 83%
PARTLY SATISFIED 15 17%
NOT SATISFIED 0 0%
19%
8%
34%
39%
MEMEBERS INVOLVED IN THE PURCHASE
DECISION
HUSBAND
WIFE
HUSBAND & WIFE
ENTIRE FAMILY

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INFERENCE:
 None of the households are dissatisfied with their purchase, this shows how much
research they did before purchasing the product.
 83% of the respondents are fully satisfied with their recent purchase.
WHEN DID YOU PURCHASE THE PRODUCT?
FACTORS INFLUENCING PURCHASE DECISION NO. OF HOUSEHOLDS PERCENTAGE
WHEN PROMOTIONAL SCHEMES ARE OPEN 55 59%
WHEN DD & PRICES ARE HIGH 0 0%
WHEN DD & PRICES HAVE DECREASED 38 41%
FULLY
83%
PARTLY
17%
NOT SATISFIED
0%
SATISFACTION DERIVED FROM THE PRODUCT
FULLY PARTLY NOT SATISFIED

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INFERENCE:
 Most of the people purchased the appliance when promotional schemes were
given to them.
 41% of them waited for the demand and prices to decrease.
 None have purchased when the demand and prices were high.
POST PURCHASE EVALUATION:
WHEN PROMOTIONAL
SCHEMES ARE OPEN
59%
WHEN DD &PRICES
ARE HIGH
0%
WHEN DD &PRICES
HAVE DECREASED
41%
FACTORS INFLUENCING PURCHASE DECISION
WHEN PROMOTIONAL SCHEMES ARE OPEN WHEN DD & PRICES ARE HIGH
WHEN DD & PRICES HAVE DECREASED

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SATISFACTION TOWARDS
AFTER SALES SERVICES
STRONGLY
AGREE
AGREE NEUTRAL DISAGREE STRONGLY
DISAGREE
NO. OF HOUSEHOLDS 19% 37% 39% 4% 1%
INFERENCE:
 39% of the respondents haven’t yet opted for after sales services.
 37% and 19% were pretty much satisfied with the service they received from the
company service provider.
 4% and 1% of the respondent were completely dissatisfied. This is mainly because
of bad service provided by the service provider and rude behavior of the service
provider.
STRONGLY AGREE
19%
AGREE
37%
NEUTRAL
39%
DISAGREE
4%
STRONGLY DISAGREE
1%
SATISFACTION TOWARDS AFTER SALES
SERVICES
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

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WOULD YOU SUGGEST THE BRAND’S PRODUCT TO OTHERS?
SUGGESTING THE BRAND’S PRODUCT YES NO
NO. OF HOUSEHOLDS 89 0
It is seen that all the customers have said that they would suggest the brand’s
products to others irrelatively of the fact that they are satisfied with the product or not.
This was because this question in the questionnaire asked for a reason if the respondents
choose ‘no’ and people were too lazy to fill the question with sentences.
4 P APPROACH
The ‘marketing mix' also known as the four Ps is a foundation concept
in marketing. The marketing mix has been defined as the "set of marketing tools that the
firm uses to pursue its marketing objectives in the target market".

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After analyzing the data collected let us now see how the 4P’s of marketing mix
influenced the respondents to make the purchase decision.
PRODUCT:
A product refers to the tangible goods and intangible services, ideas or experiences
that satisfies the consumer's needs or wants. This also includes the after sales services
that are given along with the purchase of the product.
 Consumers nowadays days look for products that have free services.
 Respondents were very conscious regarding the appeal of the appliance before
purchasing it.
 Almost all the products had good guarantees and warranties, and was the reason
to purchase it.
PRICE:
All customers look foe value for money and are more price conscious while purchasing
a product.
 It was clearly seen that the price is not much considered by the people due to the
installment schemes offered to them.
 But at the sametime it is also seen that the consumers didn’t purchase the product
when the prices and demand was high. This shows that the consumers are ready
to pay for the products but are very conscious regarding the ups and downs in its
price.
 It was seen that the respondents were influenced by the promotional schemes
offered to them.
PROMOTION:
 Most of the consumers said that they got to about the product through television
and online ads. and also from newspapers and magazine ads.
 Most of them agreed on the fact that due continuous frequency of ads. they were
able to recall the product of that particular brand.

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 Most of the customers purchasing products above Rs. 20000 received gifts and
other discount cards for their next purchase from the stores.
DISTRIBUTION (PLACE):
Though after deciding to purchase a product consumers are ready to travel in search
of the product but stores should be located at such areas were other competitors are also
available because people always want to make comparison.
 About 80% of the respondents went to electronic stores located in places where
other stores were also available.
 Others went to local nearby stores and rest have chosen online stores to purchase
the electronics.
BUYER’S BLACK-BOX MODEL

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The buying behaviour of final consumers is influenced by various factors. These
factors or characteristics determine what is going on in the so-called black box of the
consumer. The buyer black box is the consumer’s head.
The buying behaviour is based on stimuli, coming from the environment, such as
the 4 Ps (Marketing Mix) and other environmental factors such as the DESTEP forces. The
stimuli then goes through the buyer black box, where a decision is formed. The black box
consists of two parts. This reaction on stimuli is based on the buyer’s characteristics, as
well as the buyer’s decision process. The outcome of the thinking that takes place in the
black box are the buyer’s responses. These refer to buying attitudes and preference. The
purchase behaviour is the outcome. What does the consumer buy, where, when, and in
what quantities? Finally, the relationship behaviour towards brands and companies is the
result of the things going on in the buyer black box. Thus, the black box is the central
element of the consumer buying behaviour.
FINDINGS

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 There has been a huge increase in the sale of household electric appliances in
recent times due to increase in demand, greater disposable income, discounts and
other attractive offers given by the company.
 The household electronic industry is represented by many international and local
players like Whrilpool, Samsung, Voltas, IFB, LG, Daiken, etc.
 There is huge level of competition in both international and national level.
 As the market penetrates into the core middle class segment of the urban areas, it
is expected to expand phenomenally, offering large volumes to the industry.
 With new models, products and competition, prices are driven even further down.
 Gone are the times when people bought household appliances with the intension
of using it for years together. With increasing speed of innovations and as new
technologies come in, the consumers want the latest and the best.
 Secondary data supports play an important role in the customers mind and create
awareness among the consumers.
 From the survey it was found that none of the customers buy appliance when the
demand and prices are high.
 Besides convenience and other factors, service is the key factor for the customers.
 Most of the consumers want financing scheme for purchasing the appliances.
 Customers go through an in-depth research before purchasing any product.
 Consumers are very choosy in purchasing the product.
SUGGESTIONS

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 To attract more buyers electronic appliance should offer more brands of the
product.
 Advertisings through televisions, internet videos and newspaper and magazine
print ads should be improved.
 The service provider should be properly trained in terms of the after sales service
they provide .
 Service providers should also be trained for show proper behaviours with the
customers, failing which be penalized.

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CONCLUSION
Through this project I got to know many things that are related to the purchasing
of the customers, excepting this I got to know about the various household electric
appliances available in the market and I also got to about the different promotional
schemes offered by both the brands and the retail stores.
In a country like India where every customer is price sensitive, it is not easy to give
them price satisfaction specially when they buy high priced appliances, but they can be
impressed with better product with better technology. However, the customers do
comparison before purchasing any product.
Customers get attracted with good colours and better technologies of the product.
If they find that they are getting better colour and better technology they will prefer that
brand.
The study concludes that majority of the citizens irrespective of their class can
purchase large household electronic because of the installment schemes available in the
stores.
Majority of the customers have recently purchased kitchen appliance because
there are constant changes in technology in kitchen appliance industries. New kitchen
appliances are available through which luxurious and stylish cooking can be done. Due
to this sale of kitchen appliance have increased a lot.

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BIBLIOGRAPHY
WEBSITES:
 relivingmbadays.wordpress.com
 en.wikipedia.org
 mamnagementstudyguide.com
 slideshare.net
 managementstudyguide.com
 samsung.com
 profit.ndtv.com
 shodhganga.inflibnet.ac.in
BOOKS:
 “Consumer Behaviour” by L.G. Schiffman, Leslie Lazar Kanuk and S. Ramesh
Kumar

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