Transcript of "A Study on Students Buying Behavior towards Laptops"
1AProject reportOn“A study on Student’s Buying Behaviour towardslaptops”In partial fulfillment for the requirements of project study course in twoyear full-time masters of business administrationSubmitted to:Prof. Parnika JhaSubmitted by:Shashank Tripathi (112)Batch 2011-2013S. K. Patel Institute of Management & Computer StudiesGandhinagarApril, 2013
2CERTIFICATEThis is to certify that Mr. Shashank Tripathi, student of S.K Patel Institute of Managementand Computer Studies, have successfully completed his Grand Project on “A study onStudent’s Buying Behaviour towards laptops” in partial fulfillment of curriculumrequirements for the award of MBA degree under Kadi Sarva VishwaVidhyalaya University.This is their original work and has not been submitted elsewhere.____________________Prof.Sandhya HarkawatComprehensive Project InchargeDate: _________________Place: Ahmedabad____________________Prof. Bhavin PandyaDirectorProf. Parnika JhaInternal Project Guide
3DECLARATIONI, Shashank Tripathi (112) student of Semester IV in S.K Patel Institute of Management andComputer Studies, hereby declare that I had successfully completed this project on “A studyon 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 suchwork 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 sourceshas been duly acknowledged in this project report.Shashank Tripathi
4ACKNOWLEDGEMENTI hereby convey my deep acknowledgement to all those who made it possible for me tocomplete 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, heartfeltsupport, 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 thisdissertation work would not have been successfully completed.
5ABSTRACTA customer is anyone makes regular purchases from a company or a store, while a consumeris one who makes any transactional decisions of economic nature including buying of goodsand services. Consumer can be both personal consumer who buy for his or her own personand family consumption and organizational consumer which could include nongovernmentalorganization, political groups, companies and governments. Consumer behavior is the studyof 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 buyingbehavior of the ultimate consumer. Buying Behavior is the decision processes and acts ofpeople 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 purchasedecision of laptop. And the findings of this first objective will provide the basis for thesecond research objective in the study. Secondly, it is intended to find out whether there aredifferences among consumer groups of a laptop company with respect to the importancegiven to the factors influencing consumers’ laptop purchases. The customer base of acompany consists of three groups of consumers stayers (those who had never switched from aprevious brand), satisfied switchers (those who switched for reasons other thandissatisfaction) and dissatisfied switchers (those who switched because they were dissatisfiedfrom their previous brand).This study, thus looks into the understanding of the attitudes ofthese three different groups of customers which plays an important role when implementingeffective and feasible retention and loyalty strategies. Furthermore, it is also crucial tounderstand whether there are differences among these groups in terms of the factors affectingtheir future laptop purchases when they are upgrading their laptops.
6Executive SummaryLaptops are an integral part of today’s student’s study kit. And with a plethora ofbrands inundating the market, each trying to differentiate itself from the other in terms offeatures, style, etc and trying to entice the buyer with attractive offers, the decision ofzeroing on the laptop has become a gruesome exercise for the student. The very nature ofthe product encourages the prospective buyer to go through all the stages of a typicalbuying process. That is the reason that i have taken up to study the consumer buyingbehaviour for laptop buying.The primary objective of the project can be satisfied progressively by satisfyingthe secondary research objectives which are determining the factors, mapping thecustomer profile & perceptual mapping. A primary research based on questionnaires andanalytical processing of the response will be conducted to fulfill the research objectiveswherever the secondary data is not available.
7Table of ContentParticulars Page No.CHAPTER 1 INTRODUCTION 81.1 INTRODUCTION 81.2 THE IMPORTANCE OF CONSUMER BEHAVIOUR 81.3 THE REASON FOR INTRODUCING A MODEL OFCONSUMER BEHAVIOUR91.4 THE MAJOR INFLUENCE FACTORS ONCONSUMER BEHAVIOUR91.4.1 CULTURAL FACTORS 91.4.2 SOCIAL FACTORS 101.4.3 PERSONAL FACTORS 101.4.4 PSYCHOLOGICAL FACTORS 111.5 THE BUYING DECISION PROCESS 121.6 THE IMPORTANCE OF BUYING 141.7 BRAND AWARENESS AND ITS EFFECT ONCONSUMER BEHAVIOUR151.8 PERCEIVED QUALITY AND ITS EFFECT ONCONSUMER BEHAVIOUR161.9 BRAND ASSOCIATION AND ITS EFFECT ONCONSUMER BEHAVIOUR181.10 BRAND LOYALTY AND ITS EFFECT ONCONSUMER BEHAVIOUR19CHAPTER 2 LITERATURE REVIEW 21CHAPTER 3 RESEARCH METHODOLOGY 233.1 RESEARCH OBJECTIVE 233.2 SCOPE OF STUDY 233.3 RESEARCH DESIGN 233.4 SAMPLE DESIGN 243.5 LIMITATIONS 24CHAPTER 4 DATA ANALYSIS & DATAINTERPRETATION25CHAPTER 5 CONCLUSION 55CHAPTER 6 FINDINGS 56CHAPTER 7 LIMITATIONS 57CHAPTER 8 RECOMMENDATIONS 58CHAPTER 9 ANNEXURE 59CHAPTER 10 BIBLIOGRAPHY 62
8CHAPTER-1INTRODUCTION1.1.IntroductionThis provides a context for the research topic. It begins with the demonstrate of the definitionof consumer behaviour as well as a model of consumer behaviour. Then it will illustrate thedifferent factors that influence the consumer behaviour as well as the buying decision processin order to understand the essence of consumer behaviour. After that, the emphasis will be onbrand field. The effect of brand on consumer behaviour will be discussed based on its fourcomponents 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 behaviourThe definition of consumer behaviourThere 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 activitiesthat people engage in when selecting, purchasing, using, and disposing of products andservices so as to satisfy needs and desires”. He further explained that there are seven keys toconsumer 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 thoseacts of individuals directly involved in obtaining and using economic goods and servicesincluding the decision processes that precede and determine these acts”. That is to say,consumers behaviour involve with the mental procedure and physical acts towards themultiply goods and services. In addition, in Arnould, Price and Zinkhan’s (2004, p23) pointof view, “consumer behaviour is people acquiring, using, and disposing of products, services,ideas, or experiences”. In other words, consumer behaviour includes several physical andmental activities stages refer to the products or services.
91.3.The reason for introducing a model of consumer behaviourAccording to these definitions, we can say that consumer response is often the ultimate test ofwhether or not a marketing strategy will succeed. As Kotler (2000) said the most importantthing is to forecast where customers are moving, and to be in front of them. Thus, the moreunderstanding of the consumer behaviour, the more successful marketing strategies will bemade (Solomon et al, 2002). In earlier times, marketers could understand consumers wellthrough the daily experience of selling to them. However, as firms and markets have grownin size, many marketing decision makers have lost direct contact with their customers andmust now turn to consumer research.In order to study consumers we need to learn more about consumer buying behaviour, suchas who buys? How do they buy? When do they buy? Why do they buy? Therefore, theresearch of customers’ behaviour is necessary and significant. A model of consumer buyingbehaviour is a representation of the phenomena it is intended to designate-that is, it specifiesthe 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 throughmarketing problems and its explanations can gain in ability to predict outcomes undervarying sets of circumstances” (Kollat et al,1970, p4). Apparently consumers could beaffected by marketing stimuli such as price, place, promotion and environmental stimuliwhen they move on step by step in the decision process towards a final buying decision, andthe fact is consumers always may say one thing but do another because a variety ofinfluences are the cause of certain actions undertaken by consumers. Thus, this study has tofocus 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 veryinfluential in development of consumer behaviour theory and knowledge.1.4.The Major Influence Factors on Consumer BehaviourAccording to Kotler’s (2003) model, consumer purchases are influenced strongly by cultural,social, personal and psychological characteristics. Generally speaking, marketers cannotcontrol such factors, but they must take them into account because these factors affect howindividual consumers react to the different stimuli that firms send out through theircommunication. The marketer’s task is to understand what happens in the buyer’sconsciousness and the buyer’s decision making process. Thereby, this section will focus ondemonstrating the factors affecting buying behaviour according to Kotler (2003).1.4.1.Cultural FactorsCultural factors exert deep influence on consumer behaviour. Culture is the basis for aperson’s wants and behaviour (Kotler, 2003). Culture refers to “a set of values, ideas,artefacts and other meaning symbols that help individuals communicate, interpret andevaluate as members of society” (Blackwell, Miniard, and Engel, 2001, p362). It affects theconsumers shaping the attitudes, feelings, biases, and opinions, which enable marketers to
10interpret or even predict the reaction of consumers to specific marketing strategies. Thus, it isvital for firms to be aware of culture, even its trends and changes. (Baker,2000) and gives riseto new marketing opportunities and threats ( Lancaster and Massingham, 1993).1.4.2.Social FactorsA 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 affectconsumer response, firms must take them into account when designing their marketingstrategies.For one thing, reference group has significant influences on the individual’s product andbrand purchases. “Reference group are groups that serve as direct or indirect points ofcomparison 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 butalso have effect on individual’s attitude and self-concept, which in turn influence actualbrand 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 economicsand a sense of personal ambition, self-worth and love”. Even if the buyer no longer interactsvery much with his or her parents, the family can still significantly influence the buyer’sbehaviour. Walters and Paul (1970) suggested that the importance of the family arises for tworeasons: many products are purchased by multiple consumers acting as a family unit; evenwhen an individual makes purchases, other members of the family may heavily influence thebuying decision of the individual.What is more, the person’s position in each group can be defined in terms of both role andstatus. A role consists of the activities that people are expected to perform according to thepersons around them, which influence the person’s buying behaviour (Kotler,2000). Eachrole carries a status reflecting the general esteem given to it by society. People often chooseproducts that show their status in society. For example, the role of a manager has morestatues than the role of student, as a manager, the person will buy the kind of product thatreflects her of his role and status.1.4.3. Personal FactorsA 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 andSiva, 1993). People in the different ages have different needs. A brand must be
11understandable to the age group to which the product or service is targeted and should bedelivered 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, whichare related to their occupation (Kotler, 2003). Therefore, the marketers need to consider theright occupational groups as the production and marketing target. A company can evenspecialise in making products needed by a given occupational group. For example, computersoftware 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, socialclass and occupation may have quite different lifestyles and it can vary significantly indifferent countries. By knowing the target consumers’ lifestyle will help in productdevelopment and advertising.Equally important, economic circumstances greatly affect product choice. Since the incomeis not only the consideration factor for the consumption demand, but also the determinantsfactor for the preference, companies need to continuously track the trends of the personalincome over the target potential consumers towards the designed product (Baker, 1996).Therefore, income level is a useful variable to explore the consumer buying behaviour andbrand decision while buying a product.Different people have distinct personalities that influence their buying behaviours and certainbrand choices (Kolter, 2003). Personality refers to the unique psychological characteristicsthat 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 producttype, but not the final brand choice.Finally, self-concept is the way a person views himself/herself (Kotler, 2003). In otherwords, it is the perceptions that contribute to and reflect their identities: that is, ‘we are whatwe are’. Marketers can predict the response of the customer towards the brand image byanalyzing the target consumer’s self concept thereby helping the marketing mix.1.4.4.Psychological FactorsA 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 seeksatisfaction” (Kotler & Keller, 2006,p184). In other words, it leads consumers to pursue
12particular goals because they are socially valued (Buchanan & Hucaynski, 1997). Therefore,motivation is the condition of being motivated (Walter & Paul, 1970). Thus, Marketers needto identify what needs the consumer is trying to satisfy. Here we introduce one motivationtheory 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 atparticular times. The key point is that human needs are arranged in a hierarchy. He classifiedthe 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 minimumlevel, before the next level of needs becomes important. This theory helps marketersunderstand how various products and brands fit into the plans, goals and lives of potentialconsumers.Secondly, a motivated person is ready to act. How the person acts is influenced by his or herperception 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 andSteiner, 1964, p67). Two people with the same motivation and in the same situation may actquite 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 andreinforcement. It tells marketers to build up demand for a brand associating it with strongdrives, 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 oftarget products (Kotler). Therefore, marketers need to do the effort to communicate a positivebelief of a product or brand for the costumers.1.5.The Buying Decision ProcessAs introduced above, the consumer’s choice results from the complex interplay of cultural,social, personal and psychological factors. Although the marketer cannot influence many ofthese factors, they still can be useful in identifying interested buyers and in shaping productsand appeals to serve their needs better. Therefore, it is necessary to introduce consumerbuying decision process, by which marketers can monitor the process to develop theeffective marketing mix by utilizing stimuli and factors to guide consumers to certainproducts.
13In a buying decision process, a consumer will pass through five stages as shown below.ProblemRecognitinInformationSearchEvaluation ofalternativesPurchaseDecisionPost purchaseBehaviourFigure: Buyer decision processAs shown in the figure above, the buying process starts when consumer recognises a problemor need, which is triggered by internal or external stimuli (Kotler, 2003). In other words, theparticular consumer recognizes she or he needs to buy something to solve problems she or hefaces. This will drive the potential buyer to search and gather information about the productsthat will solve the particular problems. According to Kotler(2003), This stage can be dividedinto two levels, which are milder level and active level. At the former level, consumerssimply receipt the information about the product; at the second level, consumers are morelikely 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-ratingorganizations) 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 theirfeatures. As Jobber (2004) points out that the objective of information search is to build upthe 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 theproduct or service whose attributes are perceived to best satisfy the need. Namely, it is abrand evaluation stage.According to Assael (1992), in this stage, consumers will use information to associate brandsthey are aware of with their desired benefits and they will prefer the brand that they expectwill give the most satisfaction based on the benefits they seek. The outcome of brandevaluation is the awareness brands set narrow down to the small range of considerationbrands 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 attitudestowards the attributes and benefits of a brand has a positive impact on the brand choice. Afterthe 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 mostpreferred brand or product which they believe may satisfy them.
14After purchasing the product, the consumer will experience some level of satisfaction ordissatisfaction. In post-consumption evaluation. In this stage, the satisfaction of theconsumption will result in the storing evaluation in memory and refer to them in futuredecisions. 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 beforethe 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 purchasedecision. Although buyers may skip or reverse some stages of the model, the model capturesthe full range of considerations that arise when a consumer faces making a new purchase.1.6.The Importance of BrandingA successful brand is one which creates and sustains a strong, positive and lasting impressionin the mind of a buyer (Kotler,2003). As Doyle (1998.p.77) claims “a successful brand is aname, symbol, design or some combination, which identifies the product of a particularorganization as having a sustainable differential advantage”.That is to say a successful brand is a substantial asset to the companies. Emperical reportshows that Microsoft estimate value is $57 billion and that of IBM is $44 billion and estimatethe brand value of Coca-Cola is $84 billion, (Morris, 1996). There is no doubt that thosecompanies are benefited from its branding strategies. In fact, branding is defined as theenterprise of creating added value in the minds of consumers, which is to build perceivedvalues beyond the observable physical value of the product, and thus differentiating theproduct in a highly competitive environment (Aaker, 1995).The aim of branding is to help customers to identify products that are relevant for them, andso take much of the anxiety out of decision making (Harris, 2002). As the businessenvironment is teemed with competition and more sophisticated customers, superior productswith only physical attributes is not enough to maintain and attract consumers. Thus, firmsmust build effective branding strategies to help consumers organize their knowledge aboutcertain products and service, and convince the customers what are firm’s meaningfuladvantages among the different brands.As Hankinson and Cowking (1996) argued to build up a strong brand is one of the ways inwhich a company can develop and sustain advantage over its competitors, and therebymaintain or increase its sales or market share. In other words, the stronger the consumeridentification of the brand, the stronger the relationship firms have with consumers andtherefore the brand effect on purchase. In fact, branding can be seen as a process of buildingand developing corresponding marketing strategies based on firms’ resource and capabilityaiming to communicate certain brand to targets effectively an consistently therebyinfluencing the consumer behaviour (Jones, 1986).
15Thus, in a competitive market environment, firms need to strengthen the relationshipbetween the consumer and the brand as that reflects the fit between the consumer’s ownphysical and psychological needs and the brand’s functional attributes and symbolic values asperceived by the consumer. Hence, firms need to create customer-based brand equity (a topicexplored 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 ofmarketing strategy. Thus, it is necessary to discuss how brand equity affects consumersbuying behaviour.1.7.Brand awareness and its effect on consumer behaviour1.7.1.What is brand awareness?According to Aaker (1991, p61), brand awareness is “the ability of a potential buyer torecognize 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 retrievedunder some situations. Aaker further points out that Awareness is measured according to thedifferent 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 experiencewith the brand, brand recall refers to the consumer’s ability to retrieve the brand frommemory when given the product category as a cue”.In the agreement, Baker (2000) states that brand awareness refers to the strength of presenceof a brand in the consumers mind and the extent to which they are able to recognize or recalla brand name. In other words, the brand awareness is how much consumer’s familiar with thebrand. Moreover, Hoeffler and Keller (2002) argues that brand awareness is more than justcustomers 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 Kotlerand Keller (2006) said it is consumers’ ability to identify the brand under differentconditions, as reflected by their brand recognition or recall performance.1.7.2.Brand awareness effect on consumer behaviourAccording to Aaker (1991), brand awareness has significant impact on the consumer buyingbehaviour. Firstly, a high level of awareness of a brand that consumers have, the high levelthe brand will be considered when they choose to buy (Aaker,1991). It is because in relationto the consumer buying process, brand awareness plays an important role when haveintention to buy something for needs. Pitta and Katsanis (1995) point out that in the classicconsumer behaviour model, consumers who recognize a problem needed to be served alwaysengage in routine product choice when they have high level of that product category’s brandawareness; in more specific it is related to the brand recall, or at least considering that brandas alternative product choice. That is to say, on the one hand, consumers always are passiverecipient of product information and are reluctant to spend much time and effort for choosing
16brand (Hoyer 1984).Therefore, the brand awareness will lead them to choose most familiar brand that they haveknowledge of; on the other hand, in fact, in the consumer decision making process,consumers always have many alternatives to be considered. Because recall determines whichalternatives are generated, those not recalled cannot be part of the consideration set ofproducts, 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 theawareness 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 theconsumer’s mind will have an advantage, which will be considered to buy. The same point isalso presented by Kotler and Keller (2006) that is a high level of brand awareness mightaffect 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 awarenessis sufficient to result in more favourable consumer response, for example, consumers aremore likely to base their choices merely on familiar brands.Second, brand awareness provides a brand with a sense of familiarity, which is brandrecognition and people like the familiar (Keller,1998). In other words, the consumers will bestimulated 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 whenfirm develop sub-brand for products, the more awareness of host-brand will lead to theacceptance of this sub-brand.This will result in the increase of the sales. Diet Coke is a good example, which sales benefitsfrom the Coke brand. Therefore, the more the consumer is aware of the product, the greaterthe possibility that the consumer will purchase the product (Grover and Sinvasan, 1992).Briefly, brand awareness offers the effectively competitive difference among the productsthat have the similar features.1.8.Perceived quality and its effect on consumer behaviour1.8.1.What is perceived quality?Perceived quality can be defined as “the customer’s perception of the overall quality orsuperiority of a product or service with respect to its intended purpose, relative toalternatives” (Aaker, 1991 p7). It is a higher-level abstraction rather than a specific attributeof a product. Various attributes and relevant benefits create a perception of quality inconsumer’s mind. In other words, perceived quality is the consumer’s judgement about aproduct’s overall excellence or superiority. It is a significant factor in building brand equity(Keller, 1998).
171.8.2.Perceived quality effect on consumer behaviourAccording to Aaker (1991), first of all, a brand’s perceived quality provides the value forconsumers to buy such brand’s products. It is because consumers always make buyingdecisions rely on the feeling of the basic characteristics of the product to which the brand isattached such as the reliability of the product since they always cannot experience the productbefore they buy it.Namely, perceived quality is related to the consumer purchasing decision making process. Inother words, consumer always prefer to donate less time and effort for gaining theinformation which can assess the products’ quality, as a result, the observation of the certainbrand 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 theinformation about the product’s quality. Thus, perceived quality becomes the important factoraffecting the final brand choice. On the other hand, through the buying decision makingprocess, the perceived quality can contribute to the evaluation stage (Keller, 1998). Theconsideration sets of the brands will be narrow down when the above conditions occurs. Inthe agreement, Sethuraman and Cole (1997) assert that perceived quality is central to thetheory that a strong perceived quality adds value to consumers’ purchase evaluations andwilling to pay for a brand.Secondly, a perceived quality may result in a willingness of consumer for buying a brand fora 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 higherthen others.Therefore, it will create a premium profits for the firm compared to other firms, which canindeed provide resources with which to reinvest in the brand, such as R&D activities, brandenhancing activities. As Sethuraman and Cole (1997) state that perceived quality explains aconsiderable portion of the variance in the price premium consumers are willing to pay forwell-known brands.Moreover, perceived quality can also be meaningful to retailers, distributors, and otherchannel members (Aaker,1996). Obviously, the channel members are motivated to carrybrands that are well-regarded, which customers want. Therefore, well perceived quality willgain 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 thebrand name to enter new product categories (Aaker,1996). In other words, well brand withrespect to perceived quality will have higher success probability than a weaker brand in termsof brand extension as the consumer would appreciate that brand’s product, which in turnelicits more purchasing behaviour.
18Briefly, perceived quality is usually at the heart of what consumers are buying, enhancedperceived quality adds a convincible reason for consumers to make final purchase decision.1.9. Brand association and its effect on consumer behaviour1.9.1.What is brand association?Aaker (1991, p109) claims that “brand association is the category of a brand’s implicationswhich include anything ‘linked’ in memory to a brand”. Keller (1998) defines brandassociations as informational nodes linked to the brand in consumer’s mind, which willtransfer the meaning to consumer for that brand. Aaker (1996) further argues that a set ofbrand associations compose the brand image, which is organized in some meaningful way.Moreover, Keller (1998) states that brand association can be classified into three majorscopes including attributes, benefits, and attitudes. According to Keller (1998), attributesrefer to descriptive characteristics that consumers think of in the mind towards certainbrand’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 theoffer of a brand’s products, namely, it is the perception of consumers about what the productscan do for them; attitudes are defined as the overall evaluation of a brand, which is mostimportant in consumer’s brand choice decision making.Lamb Jr and Low (2000) further argues that brand association can be measured by the brandimage, brand attitude and perceived quality. The brand image is defined by the Dobni andZinkhan (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 theperceptions 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 conceptand 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 andorganisational associations (Aaker, 1996). Aaker (1996) argued that the first one is linked tothe 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 throughusing the brand because consumers have multiple roles, which result in a consumer feelingthat the brand is relevant to my kind of product (Keller, 1998). The third one can reflectsomething about the producer’s value or represent a certain culture, and is often the base fordifferentiation and consumer preferences (Aaker,1996).
191.9.2.Brand association effect on consumer behaviourAccording to Aaker (1991), brand association can help customer process information. In thereality, consumers may not have process and access to perceive or obtain some facts aboutthe brands, and to communicate such things may high cost for the companies. Therefore, thebrand with high level of association will contribute to facilitate consumer for gaining themeaning 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 inmind of consumers. However, it depends on the past marketing investment towards thatbrand. On the other hand, brand association can help consumers retrieve the informationabout certain brand (Aaker,1991). That is to say, if a brand associates with something, theconsumer will easily reflect such things in the mind when they confront the brand in somesituations.Brand association also involve product attributes or customer benefits that provide a specificreason to buy and use the brand (Aaker,1991).They also represent a basis for purchase decisions and brand loyalty. For example, Colgateprovides clean, white teeth. Some associations influence purchase decisions by providingcredibility and confidence in the brand. That is to say, customers regard the brand associationto some extent as references, which making them feel more comfortable for purchasing thatbrand. As Kolter (2003) further argued that the brand associations convey not only theconcept 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 leadconsumers to specific brand (Aaker,1991). Namely, not only the recognition of the fulfilmentof needs of the certain product can trigger the consumer buying behaviour but also theabstract needs for express consumer’s emotion from the brand. (Dobni and Zinkhan 1990).1.10.Brand loyalty & its effect on consumer behaviour1.10.1.What is brand loyalty?Brand loyalty has been defined as the inclination of a customer to keep on purchasing thesame brand (Collin et al, 1991). Dick and Basu (1994) stated that brand loyalty is the strengthof 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 samebrand in a specific service or product category as brand loyalty. Gilbert (2003) defined it asconsumers 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 onebrand of product or service again and again. Aaker (1991) argued that brand loyalty of the
20consumer base is the core of a brand’s equity, which is critical to maintain brand equity.1.10.2.Brand loyalty effect on consumer behaviourOn 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 thanto hold a current one. It is because potential new customers usually lack motivation to changefrom current brands as change a brand often has risks from them. Reichheld (1996) arguedthat a successful brand introduces stability into the business, once customers have made adecision about a brand and its associations, they are often loyal to that brand, continue to buyit in the future, recommend it to friends, and choose the products over others, even those withbetter 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 asother companies enter the market. It is because the loyal consumer will insist to the brandthey 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 marketshare and the less vulnerable it will be to competitive.Moreover, brand loyalty can help firms attracting new customers. Keller (1998) states that acustomer base with segments that are satisfied and others that like the brand can provideassurance to a prospective customer, especially when the purchase is somewhat risky. It isbecause the acceptance of the brand by a group of existing customers can be an effectivemessage through world of mouth effect. It can also create brand awareness from the customerbase, 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 followingwill allow the firm time needed for the product improvements to be matched or neutralized asloyal, satisfied customers will not be looking for new products, and thus may not learn ofadvancement.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 featuresor lower prices.
21CHAPTER 2LITERATURE REVIEWLaptop & PC Industry is expected to grow fast in developing countries like India & chinabecause of changes in government policies. In 2005, Indian government removed theimport 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 & notebookpersonal computers have been installed in 2010 and thus India has estimated to cross 52million till Dec 2010 for total installation of both.IDC is India’s quarterly PC sales marker, for the quarter ending in Oct-Dec 2010, itsuggested 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 withcompare to 3rdquarter it has decreased by 7% because of High inflation & low industrialgrowth. (Shinde J.) According to Vadlamani S.(2011), Desktop & laptop market hasachieved the growth of 6% (2.6 million units) in India in first quarter of 2011. the growthwas driven by laptop vendor by 23%. Top five brands are Dell, HP, Acer, Lenovo andHCL with combined market share of 57.5%.IDC(2011) wrote that, in the second quarter of 2011, the sales of laptop & desktops hasdecreased by 4.2% at 2.44 million units, compared to Q1 2011; Dell has again leaded themarket share by 17.4%, while top 5 companies cumulating 60% market share; companies aretargeting tier-3 & tier-4 cities now through large-format retails.According to Pinki Sharma, The entire study shows that Laptop usage is very much popularin between the students whether their residential status is urban and rural. It’s the present daydemand to run hand with the latest technology. This technology not only simplify studentstask but it also seem to morale boost up of the students. Students found themselves connectedwith 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 eachother. These are the factors controlled by external environments like the following form thebasis 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 Other Influences (which are not categorised by any of the above six, likegeographical, political, economical, religious environment, etc.).According to Rinal B.Shah, The research was aimed to examine the applicability of Aaker’sconceptual 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’smodel, it was found that perceived quality and brand loyalty had a significant positive directeffect on brand equity. It had the strongest impact which indicated the essential role ofdevelopment of perceived quality and brand loyalty in minds of customers to build brandequity for laptop brands.Wahida Farzana said, The purpose of the study is to explore how consumers’ psychologicalfactors (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 sourcesof information. In this particular case, they choose newspaper and websites to build up theirperception. Though newspaper and websites play the vital role for organizing, evaluatinginformation, 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 factorswhich impact the buying behavior of the post graduates students.According to Adrijit Basu, There is cut throat competitions in the market on price front andso they have to find out better quality and low cost product. The characteristic of this specificindustry 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 productlife cycle are the challenges that laptop manufacturing companies will have to face.
23CHAPTER 3RESEARCH METHODOLOGY3.1. Research Objective3.1.1. 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 DesignThe research design is Descriptive studies. Descriptive studies are well structured, they tendto 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 suchas age, profession. When the researcher is interested in knowing the proportion of people in givenpopulation who have behaved in a particular manner, making projection of certainthings.
24The objective of this kind of study is to answer the why, who, what, when and how of thesubject under consideration.I have taken descriptive because my research includes the knowing the behavior of customertowards Laptop. I have analyzed how people of various age groups respond towards laptop ortheir perception towards laptop.Data collectionPrimary data collected: Online QuestionnairesSecondary data collected: InternetResearch instruments: Questionnaire3.4. Sample designSample size: 100Sampling type: For this purpose of research Convenient/non probability sampling approach has been used. Non probabilitysampling is arbitrary and subjectiv3.5. Limitations Respondents were reluctant to share their experience accurately. Few Customers are hesitate to deliver some information due to the time wasted in theproviding the same. Due to time constraints it is not possible to cover vast area. So that survey has limitedto Kadi Sarva Vishwavidyalaya, Gandhinagar.
25Chapter 4Data Analysis And Data Interpretation4.1. Section-1: Consumer profile As per the graph above,the 78% of the population are Males and 22% are the females.Male78%Female22%Q.1 : Gender:MaleFemale
26 As per the graph above,the 3% of the population fall in 16-20 age group, 94% of the population is falling in21-25 age group and 3% of the population is falling in 25 & above age group.3943010203040506070809010016-20 21-25 Above 25Q.2 : Age:1. 16-202. 21-253. Over 25
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.MBA48%BBA18%BCA12%MCA3%B.Tech11%B.Pharm1%Others7%Q.3 : Please indicate the course you are in?1. M.B.A2. M.C.A3. B.C.A4. B.B.A5. B.Pharm6. B.Tech7. Others
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. Yes2. Noyes no
294.2. 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 brandsin the market and 10% are not sure about it.Stongly agree22%agree68%neutral8%Disagree1%Strongly Disagree1%Q.5 : Do you recognize most of the famouslaptop brand in the market?
30 As per the graph above,85% of respondents are agreed with the question, that they prefer the famous brandsin the market and 15% are not sure about it or disagreed with it.Stongly agree5%agree80%neutral6%Disagree8%StronglyDisagree1%Q.6 : In the case that there are many laptopbrands in the market, you would prefer theone is well-known?
31 As per the graph above,66% of the respondents are agreed with the question that they will choose the famousbrand inspite the other brands offer the same features and 22% of the respondents areneutral and the rest 12% of the respondents says that they disagree with the question.Stonglyagree11%agree55%neutral22%Disagree12%StronglyDisagree0%Q.7 : You will choose a well-known brand whenthe other brands offer similar feature orprice?
32 As per the graph above,56% of the respondents are agreed with the question that well known brands presentsadvance in innovation whereas 35% of the respondents remains neutral and 9% of therespondents disagree with the question.Stonglyagree9%agree47%neutral35%Disagree8%Strongly Disagree1%Q.8 : Do you agree well-known brands presentadvance in innovation?
33 As per the graph above,71% of the respondents are agreed that well known brands represents the betterquality whereas 24% of respondents remain neutral and the rest 5% disagree with thequestion.Stongly agree17%agree54%neutral24%Disagree4%Strongly Disagree1%Q.9 : Do you agree well-known brandsrepresent better quality?
34 As per the graph above,55% of the respondents are agreed with the question that they will purchase a wellknown brand even they need to pay the price premium whereas 35% of therespondents remains neutral and 10% of the respondents are disagreed with this.Stongly agree14%agree41%neutral35%Disagree10%StronglyDisagree0%Q.10 : You will purchase a well-known brandbecause well-known brands represent betterquality and service even you need to pay a pricepremium?
35 As per the graph above,54% of the respondents are agreed that branded laptops can match their lifestylewhere 32% of the respondents remains neutral and 14% of the respondents showedtheir disagreeness.Stongly agree12%agree42%neutral32%Disagree14%Strongly Disagree0%Q.11: Do you agree a well-known laptop brandcan match your lifestyle?
36 As per the graph above,51% of the respondents are agreed with the question whereas the 36% of therespondents remains neutral and 13% of the respondents disagreed to it.Stongly agree9%agree42%neutral36%Disagree13%StronglyDisagree0%Q.12 : Do you agree the well-known brandspresent better value (such as attributes,services) for money over competitors?
37 As per the graph above,69% of the respondents are agreed that the well known brands reflect their self imageand personality whereas 18% stayed neutral and the rest 13% of the respondents aredisagree with this question.Stonglyagree9%agree60%neutral18%Disagree12%StronglyDisagree1%Q.13 : Do you agree the well-known brands’image can somewhat reflect your own self-image and personality?
38 As per the graph above,19% of the respondents are agree that they will rely on the brands image in doing theirdecisions whereas 45% of the respondents remains neutral and 36% are disagreed.Stongly agree4%agree15%neutral45%Disagree36%Strongly Disagree0%Q.14 : You will rely on the laptop’s brand imagethan its actual attributes in decision making?
39 As per the graph above,31% of the respondents are agreed that they buy laptops on the special occasionswhereas 20% of the respondents are neutral and 49% of the respondents are disagreedwith it.Stonglyagree9%agree22%neutral20%Disagree31%Strongly Disagree18%Q.15 : You prefer to buy the laptop on specialoccasions?
40 As per the graph above,20% of the respondents are agreed that they buy the laptop online without seeing inperson whereas 20% of the respondents remains neutral and 60% of the respondentssays that they will not buy laptop without seeing in person.Stongly agree3%agree17%neutral20%Disagree33%Strongly Disagree27%Q.16 : Do you mind buying online withoutseeing the laptop in person?
41 As per the graph above,48% of the respondents are agreed to that laptops looks & stylishness are important tothem whereas 23% of the respondents remains neutral and 29% of the respondentsdisagreed.Stongly agree20%agree28%neutral23%Disagree21%Strongly Disagree8%Q.17 : The laptops looks and stylishnessimportant to you?
42 As per the graph above,80% of the respondents are agreed with the question that they search the variousfactors before buying whereas 12% of the respondents are neutral and 8% of therespondents are disagree.Stongly agree29%agree51%neutral12%Disagree8%Strongly Disagree0%Q.18 : Before purchasing, you search forvarious factors of laptop like attributes, priceetc from various sources like internet, friendsetc?
43 As per the graph above,74% of the respondents are agreed that they are satisfied with their past purchasewhere as 21% remains neutral and 5% are disagreed with the question.Stongly agree18%agree56%neutral21%Disagree5%Strongly Disagree0%Q.19 : You are satisfied with your past purchasefor a laptop?
44 As per the graph above,67% of the respondents are agreed with the question whereas 26% remains neutraland 7% are disagreed with it.Stongly agree14%agree53%neutral26%Disagree6%Strongly Disagree1%Q.20 : You will recommend your friends withyour favourite laptop brand when they considerpurchasing a laptop?
45 As per the graph above,42% of the respondents are agreed that they will buy the same brand on their netpurchase whereas 46% of the respondents remains neutral and 12% of the respondentssaid no.Stongly agree10%agree32%neutral46%Disagree12%Strongly Disagree0%Q.21 : You would buy the same brand of laptopwhen you consider purchasing a secondlaptop?
46FACTOR/VARIABLES Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Question9 Question10 Question11 Question12 Question13 Question14 Question15 Question16 Question17/MISSING LISTWISE/ANALYSIS Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Question9Question10 Question11 Question12 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 StatisticsMean Std. Deviation Analysis NDo you recognize most of the famous laptopbrand in the market.4.0769 .67937 78In the case that there are many laptopbrands in the market, you would prefer theone is well-known.3.8846 .78923 78
47You will choose a well-known brand whenthe other brands offer similar feature orprice.3.6667 .83225 78Do you agree well-known brands presentadvance in innovation.3.5513 .81619 78Do you agree well-known brands representbetter quality.3.8077 .80675 78You will purchase a well-known brandbecause well-known brands represent betterquality and service even you need to pay aprice premium.3.5897 .85942 78Do you agree a well-known laptop brand canmatch your lifestyle.3.5256 .87867 78Do you agree the well-known brands presentbetter value (such as attributes, services) formoney over competitors.3.4744 .83315 78Do you agree the well-known brands’ imagecan somewhat reflect your own self-imageand personality.3.6410 .85241 78You will rely on the laptop’s brand imagethan its actual attributes in decision making.3.0256 .82138 78You prefer to buy the laptop on specialoccasions.2.6282 1.21793 78Do you mind buying online without seeing thelaptop in person.2.3462 1.12616 78The laptop’s looks and stylishness importantto you.3.3333 1.23443 78Before purchasing, you search for variousfactors of laptop like attributes, price etc fromvarious sources like internet, friends etc.4.0256 .85241 78You are satisfied with your past purchase fora laptop.3.8718 .76207 78
48You will recommend your friends with yourfavourite laptop brand when they considerpurchasing a laptop.3.7179 .83584 78You would buy the same brand of laptopwhen you consider purchasing a secondlaptop.3.4103 .82864 78KMO and Bartletts TestKaiser-Meyer-Olkin Measure of Sampling Adequacy. .698Bartletts Test of Sphericity Approx. Chi-Square 451.028df 136Sig. .000CommunalitiesInitial ExtractionDo you recognize most of the famous laptop brand in themarket.1.000 .623In the case that there are many laptop brands in themarket, you would prefer the one is well-known.1.000 .700You will choose a well-known brand when the other brandsoffer similar feature or price.1.000 .701Do you agree well-known brands present advance ininnovation.1.000 .676Do you agree well-known brands represent better quality. 1.000 .555You will purchase a well-known brand because well-knownbrands represent better quality and service even you needto pay a price premium.1.000 .589
49Do you agree a well-known laptop brand can match yourlifestyle.1.000 .601Do you agree the well-known brands present better value(such as attributes, services) for money over competitors.1.000 .594Do you agree the well-known brands’ image can somewhatreflect your own self-image and personality.1.000 .749You will rely on the laptop’s brand image than its actualattributes in decision making.1.000 .565You prefer to buy the laptop on special occasions. 1.000 .485Do you mind buying online without seeing the laptop inperson.1.000 .603The laptop’s looks and stylishness important to you. 1.000 .725Before purchasing, you search for various factors of laptoplike attributes, price etc from various sources like internet,friends etc.1.000 .723You are satisfied with your past purchase for a laptop. 1.000 .769You will recommend your friends with your favourite laptopbrand when they consider purchasing a laptop.1.000 .750You would buy the same brand of laptop when youconsider purchasing a second laptop.1.000 .611Extraction Method: Principal Component Analysis.
51Component MatrixaComponent1 2 3 4 5You will purchase a well-known brand becausewell-known brands represent better quality andservice even you need to pay a price premium..746Do you agree well-known brands representbetter quality..666Do you agree well-known brands presentadvance in innovation..661Do you agree a well-known laptop brand canmatch your lifestyle..615
52You would buy the same brand of laptop whenyou consider purchasing a second laptop..594Do you agree the well-known brands presentbetter value (such as attributes, services) formoney over competitors..591Do you agree the well-known brands’ imagecan somewhat reflect your own self-image andpersonality..563 .542You will choose a well-known brand when theother brands offer similar feature or price..525The laptop’s looks and stylishness important toyou..512Do you mind buying online without seeing thelaptop in person..709Before purchasing, you search for variousfactors of laptop like attributes, price etc fromvarious sources like internet, friends etc.-.632You will rely on the laptop’s brand image thanits actual attributes in decision making..542In the case that there are many laptop brandsin the market, you would prefer the one is well-known.-.523You are satisfied with your past purchase for alaptop..723You will recommend your friends with yourfavourite laptop brand when they considerpurchasing a laptop..559 .561You prefer to buy the laptop on specialoccasions..514Do you recognize most of the famous laptopbrand in the market..505Extraction Method: Principal Component Analysis.
53a. 5 components extracted.Rotated Component MatrixaComponent1 2 3 4 5Do you agree well-known brands present advance in innovation. .794You will choose a well-known brand when the other brands offersimilar feature or price..769In the case that there are many laptop brands in the market, youwould prefer the one is well-known..693Do you agree well-known brands represent better quality. .634Do you agree the well-known brands’ image can somewhat reflectyour own self-image and personality..859Do you agree a well-known laptop brand can match your lifestyle. .737The laptop’s looks and stylishness important to you. .647You will purchase a well-known brand because well-known brandsrepresent better quality and service even you need to pay a pricepremium.You are satisfied with your past purchase for a laptop. .875You will recommend your friends with your favourite laptop brandwhen they consider purchasing a laptop..826You would buy the same brand of laptop when you considerpurchasing a second laptop..647You will rely on the laptop’s brand image than its actual attributes indecision making..636Do you recognize most of the famous laptop brand in the market. -.599You prefer to buy the laptop on special occasions.
54Before purchasing, you search for various factors of laptop likeattributes, price etc from various sources like internet, friends etc..792Do you mind buying online without seeing the laptop in person. -.622Do you agree the well-known brands present better value (such asattributes, services) for money over competitors.Extraction Method: Principal Component Analysis.Rotation Method: Varimax with Kaiser Normalization.a. Rotation converged in 8 iterations.Component Transformation MatrixComponent 1 2 3 4 51 .633 .594 .483 .110 .0252 -.144 .279 -.276 .674 -.6083 -.419 -.260 .828 .214 -.1584 -.633 .707 .003 -.238 .2095 -.050 -.046 -.067 .656 .749Extraction Method: Principal Component Analysis.Rotation Method: Varimax with Kaiser Normalization.After performing the factor analysis, there are some points which are focused. They are asfollows:- As KMO value is 0.698 which is approximately equal to 7, we can say that the data isadequate. Through the rotated component matrix, the factors we can extract are:I. Brand AwarenessII. Perceived QualityIII. Brand Loyalty
55CHAPTER-5CONCLUSIONHere, 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 whichis 94% and rest from 16-20 &25 above are having just 3-3%. Around 65% students areagreeing 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 toagree 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 alaptop to them. From the study I can say that mostly management and engineering studentsare having the need of laptop and rest of them do have but not as compare to managementstudents.
56CHAPTER-6FINDINGSThe consumer decision-making process and resulting preferences and buying behaviour areinfluenced by internal– as well as external factors. The internal factors consist of factors suchas needs and motivation. Students indicated that they have physical needs for food (groceriesand fast food) as well as clothing. They also value friendship (social needs) and want toimprove their education. These basic and more advanced needs are the driving force behindthe shopping behaviour of students. Other factors like age, lifestyle, learning and personalityalso play a role. Emotions, like the experiencing of guilt after an unplanned purchase, alsoinfluence 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 firstchoice is friends, followed by family members.II. The majority of students usually do not buy the same brands as their friends orfamily members.III. Students indicated that they usually play the roles of informationsearchers/gatherers and product users in their households.IV. Students search for information to obtain a better price and when they plan to buyexpensive products.V. The majority of students’ decision-making style is quality consciousness, followedby price sensitiveness and services orientation.VI. Students make use of the brand first and outlet second sequence in their decision-making.
57CHAPTER-7LIMITATIONSIn 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 thesample. Under time and financial constraints, the study was performed only with asmall portion of the population for the whole population. This may influence thegeneralizability of the samples and may get the incorrect results. Secondly, the selection of the survey location has limitation. Only KSV Ghandhinagaris selected for conducting the survey. Therefore, the result would be representative ofthe users of the specific area rather than of the target population as a whole becausedifferent cities may reflect different consumer behaviour. Moreover, the Likert scale adopted in the questionnaire might limit the range ofoptions. Closed questions could cause bias by forcing respondents to choose betweencertain alternative corresponding to their personal views on a particular subject. In addition, in this study, only quantitative method is used to do the research andstatistic analysis is used to examine the topics. Thus, the result may be not depthenough. 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 wererandom selected, thus, the respondents might, intentionally or unintentionally provideinaccurate answers to the questions. Thus the findings may not be accurate. However, care was taken throughout the study to reduce the negative impact of theseLimitations essentially the need for further research is recognized.
58CHAPTER-8RECOMMENDATIONS Retailers should make use of reference group influences by focusing on friends andfamily 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 agegroup, and steer away from advertising campaign with themes like blending in orbeing like everyone else. For examples, slogans like “Be your own person” or “ Forthe 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 sellingexpensive products. Retailers should make use of their knowledge of decision-making styles to segmentthe market, to do niche marketing and better understand the market. Retailers shouldensure that their quality, price and services are better than the competition, in order togain a bigger share of the student market. Retailers should use weekends for new product launches, competitions or promotionalcampaigns.
59ANNEXUREQUESTIONNAIREI am an M.B.A student of the S.K.Patel Institute of Management & Computer Studies in theGandhinagar, and conducting a survey related to my dissertation that is about “A study onStudent’s Buying Behaviour towards laptops”. I would appreciate it if you would fill out thequestionnaire. Please read the following questions carefully and tick the most appropriateanswers. Thank you.Section1: Consumer profile1) Gender:1. Male2. Female2) Age:1. 16-202. 21-253. Over 253) Please indicate the course you are in?1. M.B.A2. M.C.A3. B.C.A4. B.B.A5. B.Pharm6. B.Tech7. Others4) Do you own a laptop now?1. Yes2. No
60Section 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 agree16. Do you mind buying onlineSr. no Questions StronglydisagreeDisagree Neutral Agree Stronglyagree5. Do you recognize most of thefamous laptop brand in themarket?6. In the case that there are manylaptop brands in the market, youwould prefer the one is well-known?7. You will choose a well-knownbrand when the other brands offersimilar feature or price?8. Do you agree well-known brandspresent advance in innovation?9. Do you agree well-known brandsrepresent better quality?10. You will purchase a well-knownbrand because well-known brandsrepresent better quality and serviceeven you need to pay a pricepremium?11. Do you agree a well-known laptopbrand can match your lifestyle?12. Do you agree the well-knownbrands present better value (suchas attributes, services) for moneyover competitors?13. Do you agree the well-knownbrands’ image can somewhatreflect your own self-image andpersonality?14. You will rely on the laptop’s brandimage than its actual attributes indecision making?15. You prefer to buy the laptop onspecial occasions?
61without seeing the laptop inperson?17. The laptop’s looks and stylishnessimportant to you?18. Before purchasing, you search forvarious factors of laptop likeattributes, price etc from varioussources like internet, friends etc?For respondents who own laptop already19. You are satisfied with your pastpurchase for a laptop?20. You will recommend your friendswith your favourite laptop brandwhen they consider purchasing alaptop?21. You would buy the same brand oflaptop when you considerpurchasing a secondlaptop?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