The document provides an executive summary of a report on consumer behavior towards LG televisions in Bhatkal, India. It outlines the objectives of the study, which were to understand consumer behavior, the popularity of LG televisions, their market share, and customer satisfaction levels. Research methodology included a descriptive design with a sample of 100 respondents through convenience sampling across four major areas. Key findings showed that 95% of respondents owned a TV, 44% owned an LG TV, and the top reasons for purchasing LG were quality and after-sales service.

1. Executive summery<br />Title – CONSUMER BEHAVIOUR TOWARDS LG TELEVISION IN BHATKAL<br />INTRODUCTION<br />The report on consumer behaviour of LG television , consumer physchology is most important to study of consumer to know how people behave while purshasing, using and disposing the product and services.its necessary for marketer to know the buying behaviour of the consumer before marketing the product and services in order to be a successful marketer.<br />The objectives of report were as follows:<br />The primary objective of the study is to know about the consumer behavior towards the LG TELEVISION.<br />To know the popularity of LG television in Bhatkal city.<br />To know the market share of LG television in Bhatkal city.<br />To know the satisfaction level of current user of LG television.<br />Research was undertaken by following the below research methodology:<br />Research problem - <br />Research design – Descriptive.<br />Sample Universe – Bhatkal.<br />Sample frame : House wives.<br />Sample unit – Each household in 4 mojor area.<br />Nawayeth colony, Madina colony, Azad nager, Bhatkal town.<br />Sampling Technique – convience sampling method used.<br />Desire sample size – A sample size of 100 respondent was specified. <br />Research instrument – structured questionnaire.<br />The key findings of report was as follows :<br />Through the survey it was found that 95% of the respondents are having TV in their home.

2. The research shows that 44% of respondents own LG television.

3. The survey shows that reason buying the LG television is its quality and after sales service.

4. Through massive advertisement consumer are influence to purchase and switching their brand to LG.

5. As per survey report shows 36% of respondent buy LG television because of quality and 32% of respondent buy due to brand image.

6. By conducting survey it was found that there was only one service station and authorised dealer in the city due to which the customer were inconvenient.

7. The followings were limitation of study:

8. The present study is subjected to following LIMITATIONS

9. Times was the major limiting factor as the time allotted to conduct survey was not enough.

10. Some respondent were irresponsive.

11. The research is directly concerned with the study of consumer behavior and achieving absolute mathematical accuracy was not possible.

12. Method of data collection was through personal and therefore bias becomes a major limitation.INDEX<br />Chapter NoCONTENTSPage No1INTRODUCTIONIntroduction to LG electronic india pvt. Ltd.Introduction to Kiran Enterprise.05 – 106 – 78 - 102COMPANY PROFILEGrowth trend of LGVision of the companyStrategy of the companyMilestones Awards 11 – 2713 – 15 16 – 18 19 20 – 25 26 – 27 3PRODUCT PROFILEConsumer electronicsHome appliances Computer productMobile phone28 – 3731 – 33 34 – 36 36374LITERATURE REVIEWConsumer behaviorTypes of buying decision behaviorThe buyer decision processFactors influencing consumer behavior38 – 4839 40 – 4142 – 4344 – 48 5OBJECTIVES OF THE STUDY49 - 506RESEARCH METHODOLOGY51 - 537LIMITATION54 - 558DATA ANALYSIS AND INTERPRETATION56 - 78 9FINDINGS79 - 80 10SUGGESTION AND CONCLUSION 81 - 8211APENDIX83 - 86 12REFERENCE87 - 88<br />CHAPTER – 1 <br />INTRODUCTION<br />Introduction to LG Electronic India Pvt. Ltd.<br />Introduction to Kiran EnterprisesINTRODUCTION TO LG Electronic India Pvt. Ltd.<br />114300066675<br />• Established In: May 1997<br />• Managing Director: Mr. Moon B. Shin• Corporate Office: Plot no 51, Udyog Vihar, Surajpur Kasna Road, Greater Noida (UP)<br />• Manufacturing Units: Greater Noida (U.P.) & Pune (Maharashtra)<br />• Corporate Website: http://www.lgindia.com<br />LG Electronics India Pvt. Ltd. Is established in 1997 and it is wholly owned subsidiary of LG Electronics, South Korea. In India for a decade now, LG is the market leader in consumer durables and recognized as a leading technology innovator in the information technology and mobile communications business. LG is the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide reach, latest global technology and product innovation.<br />One of the most formidable brands, LGEIL has an impressive portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT products.<br />LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB).<br />The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and 1/2 months with the commencement of operations in May 1997.<br />LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens.<br />During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.<br />In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that commences operations in October 2004. Covering over 50 acres, the facility manufactures LCD TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color Monitors.<br />Both the Indian manufacturing units has been designed with the latest technologies at par with international standards at South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world.<br />LG has been able to craft out in ten years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment.<br />INTRODUCTION TO KIRAN ENTERPRISES<br /> KIRAN ENTERPRISES is a sole trading concern and was established on 11th of February 1992 by Mr. KIRAN N MANKAME, with an investment of Rs.3lacs.<br /> He is an eminent businessmen and great visionary. He tried his best to provide all the types of electronic goods to fulfill the esteem needs of the customer by providing them esteem products excellent services. KIRAN ENTERPRISES never look back and grew steadily in every sphere of marketing.<br /> The firm in its philosophy looks to render quality service to there customer and provide benefits by selling there products.<br /> In the year 1997 LG ELECTRONICS INDIA PVT. LTD. Has appointed them as authorized dealer in BHATKAL city. He introduces an additional capital of Rs.6 lacs to set up the LG EXCLUSIVE SHOWROOM. <br /> KIRAN ENTERPRISES is the only authorized dealer in an around BHATKAL.<br /> KIRAN ENTERPRISES has wide market coverage and large market share in and around BHATKAL, which starts from GANGOLLI-BHATKAL-KARWAR. It covers the towns like Murdeshwar, Manki, Kumta, Shiroor, Bydoor, etc.<br /> KIRAN ENTERPRISES is located in the heart of BHATKAL city opp. To K.S.R.T.C bus stand, National highway-17 and connected with well transport system, were there is generally good flow of public.<br /> KIRAN ENTERPRISES have number of competitors such as PAI INTERNATIONAL, PRITHVI ENTERPRISES, BEST SALES, SUVIDHA ELECTRONICS, CHETAN HOME APPLIANCES, etc. inspite of so many competitors KIRAN ENTERPRISES has got a large market share and most trusted enterprise in and around BHATKAL and has a turnover of around 35-40lacs per month.<br /> The firm has its staff in all 15 numbers of employees, 5 salesperson, 4 technician, 2 clerks, 2 delivery boys and a manager.<br />Facilities provided by KIRAN ENTERPRISES: <br /> They provide various facilities to the customers to fulfill there esteem needs. The facilities provided by KIRAN ENTERPRISES are:<br />0% interest finance: They provide 0% interest on purchase of goods on installment basis for the convenience of the customers.

13. Door to door service: They deliver the goods at customer’s door provide door to door service to the customer on the purchase of goods.

14. After sales service: They provide after sales service for their customers when there is any sort of major or minor problem with the products, after receiving just a call by the customer they sent there technician to tackle the problem. Offers:<br /> Generally KIRAN ENTERPRISES gives special offers on the of various occasion especially at the time of festivals like Depawali, Ramzan, etc.<br />Brands Available In Kiran Enterprises:<br /> Kiran enterprises deals with various brands, some of the major brands are<br />LG

15. ONIDA

16. SAMSUNG

17. SONY

18. VIDEOCON

19. GODREJ

20. ELECTROLUX

21. SANSUI

22. HYUNDAI

23. PHILIP

24. VOLTAS

25. SHARP

26. KENSTAR

27. WESTER

28. WHIRPOOL, etcCHAPTER - 2 <br />COMPANY PROFILE<br />Growth trend of LG

29. Vision of the cpmpany

30. Strategy of the company

31. Milestones

32. Awards FINANCIAL PERFORMANCE DURING LAST DECADE<br />Growth trend of LG<br />Hyderabad, June 23 For South Korean consumer electronics major LG Electronics, India could graph the highest growth rate in terms of sales compared with its other markets in the last five months, beating global trends of slackened consumer spending due to recessionary fears.<br />LG Electronics India Ltd (LGEIL) clocked a growth rate of 18 per cent in the last five months compared with the corresponding period of 2008, mostly driven by increase in sale of products in the refrigeration and AC segments, according to Mr Moon B. Shin, Managing Director. “We are now aiming at a 25 per cent growth in our turnover for 2009 to touch about Rs 13,000 crore. Last year (2008), we had achieved a turnover of Rs 10,730 crore,” he told presspersons on the sidelines of the launch of a new LG Shoppe here recently.<br />The company is poised to roll out new models in LCD and GSM handset categories in the next three to six months in the domestic market.<br />LG India sales revenue up 50% this festive season<br />New Delhi, Nov. 6 Durables company LG Electronics said it had posted a record sales revenue of Rs 2,535 crore for September-October, an increase of 50 per cent compared with sales revenue for the corresponding period a year-ago.<br />This festival season LG Electronics recorded a 49 per cent growth in its home appliance business, 68 per cent in refrigerators, 60 per cent growth in washing machines and over 41 per cent in microwave ovens.<br />The season also saw phenomenal sales, especially in the display category, which includes conventional CRT TV and flat panel displays (PDPs, LCDs and flat screen TVs). LG’s contribution in consumer electronics category this festive season alone has seen a growth of 39 per cent over the corresponding period last year.<br />“The festive season has seen LG Electronics continue to generate significant growth with a portfolio of products spread across the widest variety of price points in the company’s history.<br />“We have introduced high-end products that not only provide the right technology but also suit the new age lifestyles of Indian consumer, this also confirms consumers’ shifting preferences towards exercising affirmative choice to buy high quality reliable products rather than bargain hunting,” said Mr Moon B. Shin, Managing Director, LGEIL<br />Major market players<br />Sumsung

33. whirlpool

34. Sony

35. Philips

36. Onida

37. Voltas

38. kenstarMarket share of LG in India<br />VISION OF THE COMPANY<br /> LG Electronics vision for the 21st century is to become a true global digital leader through fast growth and fast innovation and to be known as a company who can make its worldwide customers happy through its innovative digital products and services. LG Electronics has set its mid-term and long-term goal to rank among the top 3 electronics, information, and telecommunication firms in the world by2010. We aim to utilize our core capabilities of product leadership, market leadership and people leadership and enhance our corporate culture of team work and fun workplace to achieve our mission of becoming “2 by 10”, that is, double our sales volume and profit by year 2010.<br />LG BRAND<br />The values<br />“The values are derived from the heart of LG <br />Corporate founding principles”<br />Management creating values for the customer<br />Philosophy management based on esteem for human dignity <br />Values<br /> We are honest and responsible. We always keep the promises we make to our customers in our bid to become the world’s most trusted brand.<br />Innovation<br /> We provide the most innovative products and services. Our innovations are made not for technology’s sake, but for our customer’s benefit. From the most basic features to the most sophisticated technology, our products are designed to give our customer substantial value. (Technology for customers not for engineers)<br />People <br /> Respecting and caring for our customers is the driving force behind our philosophy in human-centric product development. Respecting and caring for our employees make this a reality.<br />Passion <br /> We are very passionate about providing products and services that satisfy the unmet needs of the customers, as well as those potential needs of customers which they have yet to recognize.<br />Positioning Statement <br /> LG strives to enhance the customer’s life (and lifestyle) with intelligent features, intuitive functionality, and exceptional performance. Choosing LG is a form of self-expression and self-satisfaction. Our customer will take pride in owning the amazing and take comfort in knowing he/she made a smart, informed decision. <br />Brand Platform <br /> The LG brand comprises four basic elements: Values, Innovation, People, and Passion.<br /> “Life’s Good” Represents LG's Determination to Provide Delightfully Smart Products That Will Make Your Life Good.<br />STRATEGY OF THE COMPANY<br />LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products and design. The company’s goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by 2010. To achieve this, we have embraced the idea of “Great Company, Great People,” recognizing that only great people can create a great company.<br />MILESTONES<br />1958GoldStar (today’s LG Electronics) established1959Korea’s first radio produced1962Radio exported to the US and Hong Kong as Korea’s first1965Korea’s first refrigerator produced1966Korea’s first black & white TV produced1968Korea’s first air conditioner produced1969Korea’s first washing machine produced1974GoldStar Communications went public1977Color TV produced1978Exports surpassed US$100 million, a first for Korea’s electronics industry<br />1980 First EU sales subsidiary in Germany (LGEWG) established<br />1982Color TV plant established in the US in Huntsville, Alabama<br />1984Sales surpassed 1 trillion Won1986European-standard VCR plant established in Germany1989Sales subsidiary and a joint production subsidiary established in Thailand1990Ireland-based design technology center established 1993With the establishment of Huizhou subsidiary in China(LGEHZ), marketing in China took full swing1995Company name changed to LG Electronics and US-based Zenith acquired1997 40-inch Plasma TV and the world’s first IC set for DTVs developed India production subsidiary (LGEIL) established<br />1998World’s first 60-inch Plasma TV developed 1999 LG.Philips LCD established2000LG Information & Communications merged The world’s first Internet-enabled refrigerator launched Global sales of refrigerators reached the number one position2001Asynchronous IMT-2000 equipment commercialized The world’s first Internet enabled washing machine, air conditioner, and microwave oven launched LG.Philips Displays, a joint venture with Philips established<br />2002Under the LG Holding Company system, the Company spun off to LG Electronics (LGE) & LG Electronics Investment (LGEI) The first home network system commercialized in the global market2003World’s first synchronous-asynchronous IMT-2000 mobile phone developed The world’s first 76-inch Plasma TV developed CDMA mobile handsets took the largest share in the US and world CDMA market Launched the world’s first Super Multi DVD Rewriter<br />2004EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada DTV transmission standard by the US ATSC All in-one LG 55-inch LCD TV, the world’s first and largest among LCDTVs, commercialized The world’s largest and first 71-inch Plasma TV commercialized The world’s first terrestrial DMB phone developed Developed Wireless Speaker Home Cinema System<br />2005The world’s first DMB notebook commercialized The world’s slimmest TV commercialized The world’s largest 102-inch Plasma TV developed LG and Nortel Networks agreed to establish a jointventure for telecommunication network equipment Satellite-based DMB phone commercialized The largest share seized in the global CDMA market<br />2006Launched the LG Shine, the second handset in the Black Label Series Globally launched the steam washing machine and interactive TV refrigerator Developed the world’s first 100-inch LCD TV Launched the world’s largest Full HD 102-inch Plasma TV (1080p) Developed the world’s first dual-format high-definition DiscPlayer& Drive <br />2007<br />Date: 11-JUL-07LG presents 5 mega-pixel GSM handset – KG 920 • Innovative Twist & Slim design -180° rotating camera • 4x zoom, video recording at 30 frames/sec and much more Date: 12-JUL-07LG launches India’s first Bluetooth enabled car audio system• Enables user to share audio files from laptops and mobiles• First car audio ever which can double up as a hands-free device for cell phones • Stylishly built and equipped with 3D display LCD screenDate: 17-JUL-07LG presents technovation at its best• Announces Notebook Business as one of the growth engines for LG India•LG’s IT Division plans to grow by 30% in volume terms and 20% in revenue terms for Year 2007• Pioneers glass- free 3D viewing in India with the launch of India’s first 3D LCD monitor• Launches India’s first Notebook with Auxiliary Display and the path breaking “Desk Note” Date: 20-JUL-07 LG Electronics completes a successful H1 2007Achieves 20% average growth over H1sales turnover in 2006Succeeds in further building India as an export hub with 50% growth over last yearDate: 30-AUG-2007 LG set to dazzle India with “Shine”• Launches India’s first full metal-bodied phone from the premium Black Label series of mobile phones• Target to be amongst the top 3 players in the premium handsets category in India• Targets growth of 150 % by first quarter of 2008 Date: 04-SEP-2007 LG Electronics launches the New Slim TV-BLACK IRIS• 30% slimmer in volume & 390 mm in depth compared to other Normal Flat TV picture tubes • New Hot & Cold finish offers high quality glossy and durable finish. Date: 18-SEP-2007LG Unveils India’s first ever Digital USB Plus TV – A technological Marvel • Enables users to enjoy digital music, photos and movies directly from other digital devices, such as Multimedia cards, USB thumb drive,MP3 player,PCs, iPod, Cameras, Handy cams etc• Targets to further consolidate it’s market leadership in the CTV segment by aiming for 30% by 2007 year end Date: 09-OCT-2007 LG Unveils Pearl Black LCD series in the Indian Market <br />• Available in 32”, and 42” wide sizes• Brings together an exceptional combination of design and technology• Targets 30% market share in the FPD segment by 2007 year end• Aims to sell 5000 units by year end <br />Date: 24-OCT-07<br /> LG Electronics Bags prestigious ESC Award for Export Excellence in 2005-06<br />• Wins award for excellence in Exports of Electronic Hardware for 2005-2006• Targets exports of USD 250 Mn for calendar year 2007. <br />Date: 24-DEC-07<br />•Launches its first 5 mega pixel camera phone•Viewty boasts several ‘world first’ features such as fastest recording speed and optimum functionality•Targets growth of 200% by 2008 <br />Awards<br />As LG is declared one of the most awarded brand by all. Be it the critic, the market or by you. At LG we believe each one of these awards truly belongs to you as they are reflection of your trust & satisfaction, not to mention our stringent quality control & process like 6 sigma to give you the best of the products that meets global standards. For us what matters most is you & we thank you for making us the No.1 brand.<br />Award Name Awarded ByYearMost Admired Company in IndiaA&M Magazine1998Most Admired MNCA&M Magazine1999No.1 Consumer Durable CompanyA&M MagazineBest Marketing CompanyA&M MagazineMost Ethieal MNCBusiness WorldTechies Award Best Flat Screen MonitorComputer World20003rd Largest ExporterESC20012001Best EmployerBusiness Today/ Hewitt AsstsBest EmployerBusiness Today/ Hewitt Assts2002Enterpreneur of the yearErnst & YoungGold Rating for Environmental PerformanceCII2003No. 1Awareness Award.Business TodaySuper Achivers Award : MD LGEILCETMAGreen Technology Gold AwardGreen Tech FoundationBest Designer Award –Art Cool Air ConditionerBusiness World & NITVAR India User Choice Award : MonitorsVAR IndiaMost Admired Product – MicrowaveEFY2004Award for IT InnovationBusiness TodayMost Trusted Brand –CD WritersDIGIT/Jasubhai Digital MediaEFY’s Electronics Organization of the Year Award for TelevisionelevisionElectronics for You2005Consumer Durable Retailer of the YearICICI BankExcellence in Corporate Leadership & Entreprerenural SpiritCNBC TV 18Most preferred Brand- CTV & WMCNBC Consumer Vote AwardsMaximum Imports & Third Highest ExportsCONCOREFY Reader’s Choice Award For MicrowavesEFYOutstanding Contribution in the field of HRCETMAOutstanding Contribution in the field of HRMID DAYTop Company :CDMA HandsetsV & DTop Company : Fixed PhonesV & DBest in Recruiting & StaffingRASBIC2006Most Preferred Brand – CTV, WM, Computer & ACCNBC Awaaz Consumer Awards4 P Award : Refrigerator and Air Conditioner4Ps Power Brand Award4P Power BrandCNBC Consumer Vote AwardsMost Trusted Brand – LCD TV, Plasma TV, AC, WM, Ref, PCReader’s DigestMaximum Exports-Consumer ElectronicsESCMaximum ExportsCONCORFirst Consumer Awards – CTV, Ref, WM, AC, MWO, PCTimes GroupBusiness World Customer Loyalty Survey : Air-conditioner & RefrigeratorBusiness World & IMRB2007Top Newsmaker – Consumer DurablesBusiness Today & CirrusMost Trusted Brand – TV, AC & HASuper BrandsReader’s Digest Trusted Brands Platinum Awards- AirconditionerReader’s DigestEFY Reader’s Choice Award For IT & MWO EFY Enterprises Pvt. Ltd.India’s Most Trusted Brands 2007Brand Equity4 Ps Business & Marketing : India’s 100 Most Valuable AwardsPlanman Consulting & ICMR Ranking <br />Chapter – 3 <br />Product Profile<br />Consumer electronics

39. Home appliances

40. Computer product

41. Mobile phonePRODUCT LINE OF LG<br />Consumer Electronics

42. Home Appliances

43. Computer Products

44. Mobile PhonesProduct Line:<br />Business Areas & Main ProductsCategoryMain ProductsConsumer ElectronicsLCD TV , Plasma Display , Display Panel, Color Television, Home Theatre System, Music system, DVD Recorder/Player, MP3 & MP4 PlayerHome AppliancesRoom Air Conditioner, Commercial Air Conditioner , Refrigerator, Washing Machine, Dishwasher, Microwave, Vacuum CleanerComputer ProductsLaptop, Personal Computer, LCD monitor, CRT monitor, Optical Storage DevicesMobile PhonePremium trend setter phone , Camera Phone , Music Phone , Color Screen GSM Handset<br />Consumer Electronics<br />257175396875Plasma Display:<br />World’s first and largest 71-inch Plasma TV<br /> Model : 71PY10-Brightness : 800cd/㎡ -Contrast : 1200:1 -Resolution : 1920 X 1080(Full HD) -Digital Comb Filter -DCDi -Sound -Audio Output(15WX2) with 6 speakers -Function -PIP/DW/POP -Split Zoom -Zoom in&out -Interface Side A/V, S-Video in DVI, RGB, RS232C, IR <br />LCD TV:<br />38100-3175<br />Pearl Black <br />Model: 47LB9<br />-Size: 47 (119 cms) <br />-MRP: Rs 150000 <br />-Designer series-10000:1 Dynamic Contrast Ratio-TruM – 5 millisecond response time-Spectabright – 600 cd/m2 brightness-XD Engine-Simplink <br />Color Television:<br />-3810041910<br />• Slimagic TV • Flatron TV <br />DIGITAL AUDIO VIDEO <br />-3873515875<br />• 6.1 inch AV receiver• Home Theatre System• Music System• DVD Player<br />Home Appliances<br />ROOM AIR CONDITIONER<br />19050114935<br />• Split Invertor AC• Split Art Cool AC• Floor Standing AC• Multi Split AC• Hot and Cold AC• Split AC• Window AC<br />19050479425COMMERCIAL AC <br />• Ductable Type AC• Cassatte Type AC• Multi V Plus (VRF)• MPS• ECO <br />REFRIGER ATOR <br />19050111760<br />• Side by Side Refrigerator• Frost Free Refrigerator• Direct Cool Refrigerator<br />HYPERLINK \"
http://www.in.lge.com/Product/Products-WM.aspx?id=55&cat=Washing%20Machines\"
<br />WASHING MACHINE<br />19050-1270• Dish Washer• Washer Dryer• Front Load Washing Machine• Top Load Washing Machine• Semi Automatic Washing Machine<br />MICROWAVE OVEN<br />-2857564135<br /> • Solardom Microwave<br /> • Convection Microwave<br /> • Grill Microwave<br /> • Solo Microwave<br />-29210443230VACUUM CLEANER<br /> • Vacuum Cleaner<br />Computer Products<br />1905099060<br />• Notebook PC• Desktop PC• Monitor• Optical Storage Device<br />19050437515MOBILE PHONE<br /> • Viewty • Shine • Dynamite • Pulse <br /> • Bullet<br />Chapter - 4<br />LITERATURE REVIEW<br />Consumer behavior

45. Types of buying decision behavior

46. The buyer decision process

47. Factors influencing consumer behaviorConsumer Behaviour<br />Definition:<br /> According to the American Marketing Association, Consumer Behaviour is defined as \"
the dynamic interaction of affect and cognition, behaviour, and environmental events by which human beings conduct the exchange aspects of their lives.\"
<br /> More generally, Consumer Behaviour is the psychology behind Marketing and the behaviour of consumers in the Marketing environment. <br /> Cognitive Psychology and Social Psychology are the two major psychological disciplines of Consumer Behaviour.<br /> Cognitive Psychology is the study of mental behaviours. The Attention, Perception, Comprehension, and Decision Making are the various aspects of cognitive psychology that play an important role in Consumer Behaviour. <br /> Social Psychology is the study of the manner in which the personality, attitudes, motivations, and behaviors of the individual influence are influences by social groups. <br /> Today, many brand marketers and advertisement agencies believe that one-to-one marketing is a key ingredient in the marketing mix. They share the opinion that adding a large dose of up close and personal interaction sparks consumer behaviour.<br /> Consumer behaviour Study of how people behave when obtaining, using, and disposing of products and services. Consumer jury test a method of testing advertisements that involves asking consumers to compare, rank, and otherwise evaluate the advertisement<br />TYPES OF BUYING-DECISION BEHAVIOUR<br /> Consumer decision making varies with the type of buying decision. The decisions to buy shampoo, a cricket bat, a digital television, a new car are all very different. Complex and expensive purchases are likely to involve more buyer deliberation and more participants. <br /> It consist of four different buying behaviour, i.e. Complex buying behaviour, Dissonance-Reducing buying behaviour, Habitual buying behaviour, and Variety-Seeking buying behaviour. <br /> <br /> High involvement Low involement <br />115252588265<br />Significant differences Between brands<br />Few differences between brands <br />Complex Buying Behaviour: <br /> Complex buying behaviour involves three steps. First, the buyer develops beliefs about the product. Second, he or she develops attitudes about the product. Third, he or she makes a thoughtful choice. Consumers engage in complex buying behaviour when they are highly involved in purchases and aware of significant differences among brands. This is usually the case when the product is expensive, bought infrequently, risky, and highly self-expensive.<br />Dissonance-Reducing Buying Behaviour: <br /> Sometimes the consumer is highly involved in a purchase but sees little difference in brand. The high involvement is based on the fact that the purchase is very expensive, infrequent, and risky. If the consumer finds quality differences in the brands, he or she might go for the higher price. If the consumer finds little difference, he or she might simply buy on price or convenience.<br />Habitual Buying Behaviour:<br /> It occurs under the conditions of low consumer involvement and little significant brand difference. They simply go to store and reach for a brand. If they keep reaching for the same brand, it is out of habit rather than strong brand loyalty. Consumers appear to have low involvement most low-cost, frequently purchased products.<br />Variety-Seeking Buying Behaviour:<br />Consumer undertakes variety-seeking buying behaviour in situations characterized by low involvement but significant brand differences. Here, consumers often do a lot of brand switching. Brand switching occurs for the sake of variety rather than dissatisfaction.<br />The buyer decision process<br />The buyer decision process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Clearly, the buying process starts long before actual purchase and continues long after. Marketers need to focus on the entire buying process rather than on just the purchase decision.<br />The figure implies that consumers pass through all five stages with every purchase. But in more routine purchases, consumers often skip or reverse some of these stages. <br />Need Recognition:<br /> The buying process starts with need recognition–the buyer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person’s normal need–hunger, thirst, sex–rises to a level high enough to become a drive. A need can also be triggered by external stimuli.<br />Information Search:<br />An interested consumer may or may not search for more information. If the consumer’s drive is strong and satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need is memory or undertake an information search related to the need.<br />Evaluation of Alternatives:<br />The marketer needs to know about alternative evaluation–that is, how the consumer processes information to arrive at brand choices. Unfortunately, consumers do not use a simple and single evaluation process in all buying situations.<br />Purchase Decision: <br />In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer’s purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and purchase decision. The first factor is attitudes of others, the second factor is unexpected situational factor.<br />Post-Purchase Behaviour:<br />The marketer’s job does not end when the product bought. After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in post purchase behavior of interest to the marketer. If the product falls short of expectations, the customer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted.<br />Factors influencing consumer behaviour<br />59690299085 <br /> Consumers do not make their decisions in a vacuum. Their purchases are highly influenced by cultural, social, personal, and psychological factors. For the most part, they are “non controllable” by the marketer but must be taken in to account. We want to examine the influence of each factor on a buyer’s behavior. <br />Personal Factors: <br />The buyer’s decisions are influenced by personal factors such as the buyer’s age, life-cycle stage, occupation, economic circumstances, life style, and personality.<br />Age: people change the goods and services they buy over their life times. Tastes in food, clothes, furniture, and recreation are often age related.<br />Life cycle: the stage through which families might pass as they mature over a time. Marketers often define their target market in terms of life cycle stage and develop appropriate products and marketing plan for each stage. Traditional family life cycle stages include young singles and married couple with children. Non traditional stages such as unmarried couples, singles, marring later in life, childless couple, same sex couples, single parents, extended parents and others.<br />Occupation: A person’s occupation affects the goods and services bought. Marketers try to identify the occupational groups that have an above average interest in their products and services. A company can even specialize in marking products needed by a given occupational group.<br />Economic circumstances: A person’s economic circumstances will affect economic choice. Marketers of income-sensitive goods watch trends in personal income, savings, and interest rates. If economic indicators point to a recession, marketers can take steps to redesign, reposition, and reprice their products closely. <br />Lifestyle: People coming from the same subculture, social class, and occupation may have quite different lifestyles. Lifestyle is a person’s pattern of living as expressed in his or her psychographics. Lifestyle captures something more than the person’s social class or personality.<br />Psychological factors:<br />A person’s buying choices are influenced by for major psychological factors-motivation, perception, learning, beliefs and attitudes.<br />Motivation: A person has many needs at any given time. Some needs are biogenic; they arise from psychological states of tension such as hunger, thirst, or discomfort. Others are psychogenic; they arise from psychological states of tension such as need of recognition, esteem, or belonging. 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.<br />Perception: A motivated person is ready to act. Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. Perception depends not only on the physical stimuli, but also on the stimuli’s relation to the surrounding field and on conditions within the individual. The key point is that Perception can vary widely among individuals exposed to the same reality.<br />Learning: When person act, they learn. Learning involves changes in an individual’s behavior arising from experience. Most human behavior is learned. Learning theorists believe that Learning is produced through the inter play of derives, stimuli, cues, responses, and reinforcement.<br />Beliefs and Attitudes: Through doing and learning, people acquire beliefs and attitudes. This in turn influences buying behavior. A belief is a descriptive though that a person holds about something. People’s beliefs about a product their buying decisions. <br /> Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy.<br />Social Factors:<br />Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, and social class. <br />Opinion leaders: An opinion leader is the person in informal, product-related communication who offers advice or information about a specific product, such as which of several brands is best or how a particular product may be used.<br />Roles and Family Influences: Role...things you should do based on the expectations of you from your position within a group. People have many roles. Husband, father, employer, etc. Individuals role are continuing to change therefore marketers must continue to update information. <br />Family is the most basic group a person belongs to. Marketers must understand: <br />that many family decisions are made by the family unit <br />consumer behavior starts in the family unit <br />family roles and preferences are the model for children's future family <br />family buying decisions are a mixture of family interactions and individual decision making <br />family acts an interpreter of social and cultural values for the individual. <br />Reference Groups: Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviours of the group members. Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a person’s attitude and behaviour.The degree to which a reference group will affect a purchase decision depends on an individual’s susceptibility to reference group influence and the strength of his/her involvement with the group. <br />Social Class: An open group of individuals who have similar social rank. Social class influences many aspects of our lives. Social class determines to some extent, the types, quality, and quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping, do not engage in much pre-purchase information gathering. Family, reference groups and social classes are all social influences on consumer behaviour. All operate within a larger culture<br />Cultural factors:<br />Cultural factors exert a broad and deep influence on consumer behaviour. The marketer needs to understand the role played by the buyer’s culture and subculture.<br />Culture: Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.<br /> Every group or society has a culture, and Cultural influences on buying behavior may vary greatly from country to country. International marketers must understand the culture in each International market and adapt their marketing strategies accordingly.<br /> <br />Sub-culture: Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in our country good health, education, individualism and freedom. <br /> Culture can be divided into subcultures: <br />geographic regions <br />Human characteristics such as age and ethnic background. <br />Culture affects what people buy, how they buy and when they buy. <br /> Understanding Consumer Buying Behavior offers consumers greater satisfaction. We must assume that the company has adopted the Marketing Concept and are consumer oriented.<br />Chapter - 5<br />OBJECTIVES OF THE STUDY<br />OBJECTIVES OF THE STUDY<br />The primary objective of the study is to known about the consumer behavior towards the purchase of LG television.

48. To know the popularity of LG television in Bhatkal city.

49. To know the market share of LG television in Bhatkal city.

50. To know the satisfaction level of current user of LG television.Chapter - 6<br />RESEARCH METHODOLOGY<br />METHODOLOGY<br />The report has been prepared as per the information obtained from two sources. They are:<br />Primary data

51. Secondary data1. Primary data: <br />In primary data collection, we collect the data our self with the help of questionnaires. The key point here is that the data we collect is unique to us and our research and, until we publish, no one else has access to it. <br />There are many methods of collecting primary data and the main methods include:<br />3810047625QUESTIONNAIRES: <br />Questionnaires are a popular means of collecting data, but are difficult to design and often require many rewrites before an acceptable questionnaire is produced. <br />161925-171450 INTERVIEWS:<br /> Interviewing is a technique that is primarily used to gain an understanding of the underlying reasons and motivations for people’s attitudes, preferences or behaviour. Interviews can be undertaken on a personal one-to-one basis or in a group. They can be conducted at work, at home, in the street or in a shopping centre, or some other agreed location.<br />38100182880<br />OBSERVATION:<br /> Observation involves recording the behavioural patterns of people, objects and events in a systematic manner.<br />The primary data included the information collected from the:<br />Proprietor, manager and employees of Kiran Enterprise.

52. Structured questionnaire

53. Personal interview with customers2. Secondary data:<br />Secondary data includes<br />Data from various magazines <br />Internet<br />Brochures<br />Books<br />Newspapers etc<br />Research design:<br /> Descriptive<br />Sample Universe:<br /> Bhatkal<br />Sampling plan:<br />Data collected has been analyzed and interpreted by using simple percentage method and finally the data is presented in graphs and charts.<br />Sampling frame:<br />House wives.<br />Sample unit : <br />Each house hold in 4 major area: Nawayeth colony, Madina colony, Azad nager, and bhatkal town.<br />Sampling Technique:<br />convience sampling method used.<br />Desired sample size:<br />A sample size of 100 respondents was specified.<br />Research instrument: structured questionnaire<br />Chapter - 7<br />Limitation <br />Limitation<br />The present study is subjected to following LIMITATIONS

54. Times was the major limiting factor as the time allotted to conduct survey was not enough.

55. Some respondent were irresponsive.

56. The research is directly concerned with the study of consumer behavior and achieving absolute mathematical accuracy was not possible.

57. Method of data collection was through personal and therefore bias becomes a major limitation.

58. Due to the time constraints all the customers were not covered.

59. The sample was restricted to 300 customers, which may restrict the scope and completion of study.

60. The scope of study is restricted only to the twin cities of Bhatkal.

61. Owing to their pre occupation some customers were unable to answer the complete questionnaire.Chapter - 8<br />DATA ANALYSIS AND INTERPRETATION<br />The data collected with the help of questionnaires is tabulated and analyzed.<br />1. Classification as per ownership of Television<br /> Que.No1: Do you own a Television?<br />ResponseNo. Of RespondentsPercentageYes9595No55Total100100<br />1<br />From the survey it was found that 95% of homes are having television and 5% may go for future purchase.<br />2. Classification as per company-wise ownership<br />Que.No2: which brand of Television do you own?<br />CompanyNo. Of RespondentsPercentageL G4444ONIDA1919VIDEOCON1515Other2222Total100100<br /> <br />2<br />From above data it was found that 44% of homes are having LG TV 19% are using Onida, 15% are using Videocon and 22% using other brands.<br />3. Classification based on source of information for the purchase<br /> Que. No 3: From where did you get information about LG tv?<br />Source Of InformationNo. Of RespondentsPercentageADVERTISEMENT1841FRIENDS1125RETAIL OUTLETS1227OTHERS37TOTAL44100<br />3<br />From above data collected most users are influence by advertisement (i.e. 41%) 25% are influence by family and friends, 27% of user influence by retail outlet by visiting there. <br />4. Classification based on main reason for purchasing<br />Que.No.4: what all you take in account before taking LG tv?<br />Reasons For PurchaseNo. Of RespondentsPercentageQUALITY1636PRICE1125BRAND IMAGE1432OTHERS037TOTAL44100<br />4<br />From the above data 36% of user go because of quality, 25% user because of price and 32% of user because of brand image. Most of user buy LG TV because of quality and brand image.<br />ModelNo. Of RespondentsPercentageL G FLATRON2352L G GOLDEN EYE1841L G LCD 024.5OTHERS012.5TOTAL44100<br />5. Classification based on model-wise ownership<br />Que.No.5: Which model of LG T.V do you own?<br />5<br />From the above data more than 50% of user is having LG Flatron, 41% of user are having LG golden eye, 4.5% of user are having is LG LCD. More user are go for LG flatron and LG golden eye because of economic range.<br />6. Classification based on size ownership<br />Que.No.6: Which size of LG T.V do you own?<br />Size Of T.VNo. Of RespondentsPercentage15 INCH112521 INCH3170.529 INCH024.5OTHERS0000TOTAL44100<br />6<br />From above data 25% of user are having 15 inch and more than 70% of user are having 29 inch because it is widely accepted model television, 4.5% are using 29 inch.<br />7. Classification based on duration of usage<br />Que.No.7: Since when you are using LG T.V?<br />DurationNo. Of RespondentsPercentageLESS THAN 1 YEAR11251-2 YEAR0920.52-3 YEAR1636.54 AND ABOVE0818TOTAL44100<br />7<br />From the above data nearly about 37% user are using LG TV since 2 t o3 years, nearly about 21% are using 1 to 2 years, 25% are using less than one year and 18% are user are using 4 years and above.<br />SatisfactionNo. Of RespondentsPercentageFULLY SATISFIED1432SATISFIED2148SOME WHAT SATISFIED0920NOT SATISFIED AT ALL0000TOTAL44100<br />8. Classification based on level of satisfaction<br />Que.No.8: What is your level of satisfaction?<br />8<br />\<br />From the above data 32% of users are fully satisfied with their product, nearly about 50% of users are satisfied with their product and 20% of users some what satisfied because in this most of users are new. <br />9. Classification based on occupation of respondent:<br /> Que.No.9: What is your occupation?<br />OccupationNo. Of RespondentsPercentagePROFESSION2828BUSINESS2020HOUSEWIWES3939OTHERS1313TOTAL100100<br />9<br />From the above data 39% of user are housewiwes, 28% of user are professionals, and 20% of user are belong business.<br />10. Classification based on qualification of respondent:<br /> Que.No.10: What is your qualification?<br />QualificationNo. Of RespondentsPercentageUP TO SSLC3131GRADUATE4242POST GRADUATE099OTHERS1818TOTAL100100<br />10<br />From the above data 42% of user are graduate 39%of user are upto SSLC and 9% user are post graduate.<br />11. Classification based on household monthly income of respondents <br />Que.No.11: What is your household monthly income?<br />Household IncomeNo. Of RespondentsPercentageUP TO 500023235000-10000353510000-15000282815000 AND ABOVE1212TOTAL100100<br />11<br />From above data 43% of user belong to 5000 to 10000 income group, 33% of user are belong to 5000 income group, 19% of user are belong to 10000 to 15000 income group and 5% of user are belong to 15000 and above income group. <br />Chapter – 9<br />FINDINGS<br />FINDINGS<br />Through the survey it was found that almost 95% of the respondents are having TV in their home.

62. The research shows that 44% of respondents own LG television.

63. The survey shows that reason buying the LG television is its quality and after sales service.

64. Through massive advertisement consumer influence to purchase and switching their brand to LG.

65. As per survey report shows 36% of respondent buy LG television because of quality and 32% of respondent buy due to brand image.

66. By conducting survey it was found that there was only one service station and authorised dealer in the city due to which the customer were inconvenient.CHAPTER –10 <br />SUGGESTION AND CONCLUSION<br />SUGGESTIONS<br /> LG electronics is perusing the vision of becoming a true global digital leader to achieve this. They need to improve quality of the product.<br /> Survey conducted by me the customer was not satisfied by quality of color in the television contrast and sound system.<br />The customer are not satisfied by the after sales service provided by the company due to the delay in the after sales services provided by company.<br />Conclusion<br /> From the study is conducted there is a 100% awareness about television is among the population , there are 45% are LG television user in Bhatkal city.<br /> Complex buying behavior is involved in purchase and aware of significant, difference among brands . LG has able to craft out in ten years a premium brand positioning in the Indian market and is today most preferred brand in the segment. <br /> 2006 has been landmark year for LG as the company achieved a monumental target of Rs 830 crs and reiterates its leadership in the Indian consumer durable industry. <br />Chapter – 11 <br />APPENDIX<br />QUESTIONNAIRE<br />UMMER FAROOQUE R<br />MMM 3RD SEM <br />INDIRA INSTITUTE OF MANAGEMENT <br />PUNE<br />Dear sir/madam,<br /> I am student of IIMP Pune. As part of the curriculum of MMM degree, I am conducting a survey to prepare project report on “CONSUMER BEHAVIOR TOWARDS LG TELEVISION”.<br /> Therefore I kindly request you to spare some of the precious time to answer the following question. <br />Name: ……………………………………………………………………

67. Address: ……………………………………………...............................

68. ……………………………………………………………………………

69. Tel: ……………..........E-mail: ...………………………………………….

70. (a)Do you own Television?

71. Yes No

72. If no jump to Q.No 9

73. (b)If yes mention its brand?

74. LG Onida

75. Samsung Other (specify)……………..

76. If LG television proceed, else jump to Quest no.10

77. From where did you get the information about LG T.V?

78. Advertisement Friend Retail outlets Other (specify)……………<br />What all you take in account before taking LG tv?

79. Quality Price

80. Brand image Other (specify)………………

81. Which model of LG T.V do you own?

82. LG Flatron L G Flatron with Golden eye

83. LG LCD T.V Other (specify)……………..

84. Which size of LG T.V do you own?

85. 15inch 21 inches

87. 29inch Other (specify) …………………

88. Since when you are using LG T.V?