Consumer Buying Behaviour in Godrej Home Appliances

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SUMMER INTERNSHIP REPORT

ON

Consumer Buying Behaviour of Godrej

Appliances

SUBMITTED BY

Maman Panda

Regd. No. 0806995043

UNDER THE GUIDANCE OF

Prof. Kailash ch.Nayak Mr. Niladri S.Chatterjee

Faculty of Marketing, Dy.Manager,Direct sales,

NIBA, Bhubaneswar Appliance Division,

Godrej & Boyce Mfg. Co.Ltd

Bhubaneswar

NIIS INSTITUTE OF BUSINESS ADMINISTRATION(NIIS.)

Approved by AICTE, Ministry of HRD, Govt. of India

BIJU PATNAIK UNIVERSITY OF TECHNOLOGY

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ACKNOWLEDGEMENT

I am indebted to Mr. Niladri S. Chatterjee,Dy. Manager, Direct Sales, Appliance division,Godrej & Boyce Mfg. Co. Ltd. Bhubaneswar,for giving me an opportunity to work as asummer project trainee in this esteemedorganization. His knowledge and experiencewas a great motivating factor. This effort wouldnot have been possible without his able,efficient, valuable and timely advice, insightsand thoughts. I am very much thankful to sir forhis valuable guidance and support.

I take this opportunity to express my heartfeltgratitude to my faculty guide Prof. Kailash ch.

nayak, Faculty of Marketing, Niis Institute OfBusiness Administration, Biju Patnaik UniversityOf Technology(BPUT). I am thankful to sir for hisvaluable support and guidance throughout theproject.

I am also thankful to Mr.Pradeep Das, Direct

sales, Godrej Appliance for his assistance andsupport, I am equally grateful to each andevery member of Godrej & Boyce Mfg. Co. Ltd.,Bhubaneswar for their whole-hearted co-

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operation in completing this project instipulated time.

I extend my sincere thanks to all Distributors,Wholesalers who helped me for my project.

Last but not the least, I would like to thank myfamily members and friends whose unboundedsupport facilitated the successful completion ofthe project.

DECLARATION

I, Maman Panda of 1st Year MBA, Niis InstituteOf Business Administration, Biju PatnaikUniversity Of Technology(BPUT) , herebydeclare that the project titled Consumer

Buying Behaviour of Godrej Applianceswas done by me under the guidance of Prof.Kailash Ch. Nayak, Faculty of Marketing, BijuPatnaik University, Mr. Niladri S. Chatterjee,Dy.Manager, Direct sales, Appliance Division,Godrej & Boyce Mfg. Co. Ltd, Bhubaneswar,during 29th June, 2009 to 12th August, 2009.

I also declare that this project has not beensubmitted for the award of any other degree,diploma, literature or recognition earlier.

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Place: BhubaneswarMaman Panda

Date:(Regn: 0806995043)

TABLE OF CONTENT

1.Executive Summary2.Introduction to project3.Introduction to company4.Corporate Profile5.Godrej group of company6.Consumer Buying Behaviour

7.Data analysis & interpretation8.Findings9.Recommendation1o.Questionnaries11.References

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Executive Summary

(A) Project Title

Consumer Buying Behaviour of Godrej Appliances in the

Bhubaneswar Market.

(B) Project Location

Godrej & Boyce Mfg. Co. Ltd. - Appliances Division,Bhubaneswar.

(C) Objectives

1.To know the reach of the Godrej Appliances in differentprivate organizations, institution, govt., homes etc and who

is their competitor, who is the market leader etc.2. Describe the level of involvement and types of

Consumerproblem-solvingprocesses.

3.Recognize the stages of the consumerbuying

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decision process.

4. Explain how situational influences may affect

the consumerbuying decision process.

5. Understand the psychological influences that

may affect the consumerbuying decision

process.

6. Be familiar with the social influences that affect

the consumerbuying decision.

(D) Research Methodology

The research was mainly of primary research consisting ofdescriptive research and exploratory research. Thesecondary research consisted of literature search andInternet search.

1. Introduction to

Project

i. Scope of Project

The very purpose which the company has laid down

has given us enough guidelines to design the scope ofthe project. The project would discuss:

The market share of Godrej Appliances in differentsectors, to find out the competitor and market leader in

this category.

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Which factor influence the selling, what the institutionand consumerlooks before they purchase the Godrej

Appliances.

How Godrej can increase the market share .

ii. Limitations

Retailers never had the luxury of time to offer, therefore ourconversation was brief. It would be unfair if we fail to

mention that, some retailers were very helpful andCooperative.

The institution survey sometimes experienced reducedseriousness.

The no. of Appliances and the brand they were usingsometimes were given in approximation by the personanswered as he/she was not the concerned authority.

The no of institution surveyed might not be the correct

representation of the market.

iii. METHODOLOGY

I did my project in two phases one was exploratory surveyand other was descriptive survey.

Exploratory Research

Exploratory Research was done before I started mydescriptive research in order to get the detailed idea about

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the consumer appliances industry. This was also necessaryfor finding about the data related to the other brands in

appliance. Some of the main objectives for doingExploratory Research are mentioned below:

Study of literature published on consumer appliance

industry.

Identifying competitors and their details.

Research on innovations of other brands in appliance

segment.

Observation of display of merchandise and in-store

promotions of other brands.

In depth interview of retailers and the company

representative.

Descriptive Research

Descriptive research was done in Bhubaneswar over onemonth. This was done using the structured questionnaire.

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INTRODUCTION

TO

THE COMPANY

We are today one of the largest engineering and consumerproducts company in the country having varied interests

from engineering to personal care products. We are also oneof the most respected corporate houses known for our

philanthropy and initiation of labour reforms besides being9


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software, e solutions development, customization & ERP. Italso provides database outsourcing and consultancy services

Godrej Industries ltd. manufactures Oleo chemicals. Overtwo dozens of industries in India use the chemicals made byGodrej industries. They all in all make more than hundredof such chemicals. Besides this it also produces edible oil,vanaspati and bakery fats, and deals in medical diagnostic

and real estate. The name of this associate was GodrejSoaps Limited till March 31, 2001. It is big exporter of

products to 40 different countries. Product has quality that

of international standard and yet at competitive price.

Company's' profile shows that Godrej Properties ltd a realestate arm of Godrej Group is doing wonders in residential

sector in India. it is coming up with property project inBangalore. The projects worth Rs. 850 crore under the name

of Godrej Woodsman Estate. It has 840 two and threebedroom apartments with all the modern facilities. It is

trying hard to capture the residential real estate market inBangalore. Earlier it constructed apartment in Mumbai and

Pune.

Godrej Beverages and Foods Ltd., an associate of GodrejIndustries has shaken hands with The Hershey Company of

North America (leading name in Chocolate and

confectionery) to make and distribute confectionaries,beverages and snacks across the India. Godrej Sara lee ltd.manufactures products those save you and your loved one.

Like mosquito repellents, goodnight, hit, jet etc aremanufactured by Godrej Sara Lee Limited.

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Godrej Group is a name that works with quality and supplyConsumer Durable goods like doors, Almirahs, furniture,home appliances, Industrial Products like chemicals, RealEstate Projects like Residential Apartments in Bangalore,Pune and Mumbai, Agri Products and so on. Godrej hasworkforce of approximately 20,000 to fulfill its aim and

vision and has left no stone unturned to reach at the zenith.India with 400 million populations uses at least one productof Godrej in a day. With one more flag of Godrej Properties

in Godrej Group it will really command the real estate in

India.

Corporate Profile

The Company celebrated its centenary in 1997. In 1897 ayoung man named Ardeshir Godrej gave up law and turned

to lock-making. Ardeshir went on to make safes andsecurity equipment of the highest order, and then stunned

the world by creating toilet soap from vegetable oil.

Ardeshir Godrej Pirojsha Godrej

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His brother Pirojsha Godrej carried Ardeshir's dreamforward, leading Godrej towards becoming a vibrant, multi-

business enterprise. Pirojsha laid the foundation for thesprawling industrial garden township (ISO 14001- certified)now called Pirojshanagar in the suburbs of Mumbai. Godrejtouches the lives of millions of Indians every day. To them,

it is a symbol of enduring ideals in a changing world.

Mission & Vision:-

Mission:-

Godrej Mission is to operate in existing and new

businesses which capitalize on the Godrej brand andcorporate image of reliability and integrity.

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Godrej objective is to delight our customer both in

India and abroad.

We shall achieve this objective through continuous

improvement in quality, cost and customer service. We shall strive for excellence by nurturing, developing

and empowering our employees and suppliers.

We shall encourage an open atmosphere, conducive to

learning and team work.

Values:-

Commitment to Quality

Customer Orientation Dedication & Commitment

Discipline

Honesty & Integrity

Learning Organisation

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Openness & Transparency

Respect/Care & Concern for People

TeamworkTrust

Incorporation

Established in 1897, the Company was incorporated withlimited liability on March 3, 1932, under the Indian

Companies Act, 1913.

Sales-Subsidiaries and Affiliates

The Company is one of the largest privately-held diversifiedindustrial corporations in India. The combined Sales

(including Excise Duty) of the Company, its subsidiaries

and affiliates, during the Fiscal Year ended March 31, 2008,were about Rs. 90,000 million (US$ 1,900 million).

Board of Directors

Chairman & Managing Director: J. N. GodrejOther Executive Directors: P. D. Lam, K. A. Palia, V. M.

Crishna, A. G. VermaNon-executive Directors: A. B. Godrej, N. B. Godrej, K. N.

Petigara, B. A. Hathikhanavala,F. P. Sarkari, P. P. Shah, A.Ramachandran

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Shareholders

Since its inception, the Company is controlled by theGODREJ family based in Mumbai, India. Its shares are not

listed on any Stock Exchange. About one-fourth of theCompany's share capital is held by Pirojsha Godrej

Foundation, a public charitable trust.

Branches (Sales & Service) And Branded Retail Chain

(Godrej Lifespace)

Mumbai, Ahmedabad, Bhopal, Dombivli, Indore,Jabalpur, Nashik, Pune, Raipur, Thane

New DelhiI, Chandigarh, Faridabad, Ghaziabad,Gurgaon, Jaipur,Jalandhar, Jammu, Kanpur, Lucknow,

Noida Chennai, Bangalore, Coimbatore, Hyderabad, Kochi,

Secunderabad,Trivandrum, Visakhapatnam Kolkata , Bhubaneswar, Guwahati, Ranchi, PatnaThe Company has a network of 60 Company-operatedGODREJ LIFESPACE Retail Stores, more than 2,200

Wholesale Dealers, and more than 18,000 RetailOutlets. The Company has Representative Offices in

Sharjah (UAE), Riyadh (Saudi Arabia) and Guangzhou(China-PRC).

Employees

10,200 (including 2,000 in Sales and Service)

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Bankers

Central Bank of India, Union Bank of India, Citibank N.A.,ICICI Bank Ltd., State Bank of Patiala, and Axis Bank Ltd.

Appliances

1958 -1st Indian Company to manufacture Refrigerators.1987 - Pioneered PUF (Polyurethane Foam) Technology in

India.1989 - First company to introduce PUF ( Polyurethane

Foam)1989 - Introduces India's first and only 100% CFC, HCFC,

HFC free refrigerators1989 - First company to sell 10 million appliances

1994 - 1st Company in India to sell 10 million appliances.1995 - Obtains ISO 9001 Certification

1996 - Launches Washing Machines by commissioning anew manufacturing set-up at Shirwal State-of-art

Manufacturing Plant starts operation at Mohali.

1997 - Launches Air Conditioners - Obtains ISO 14001certification.

2000 - First Durable Company in India to launch BrandedCustomer Service - SMARTCARE

2001 - Launches Pentacool Refrigerators withRevolutionary Five Side Cooling.

2002 - 1st and only Company in India to make its Entire

Refrigerator Range Green (100% CFC, HCFC & HFC free).2004 - Godrej Refrigerator awarded the Super Brand Status.Declared No. 1 in Businessworld Consumer Delight

Survey.2005 - Launches Microwave Ovens and DVD players.Declared the Most Preferred Brand in CNBC Awaaz

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Consumer Awards.2006 - Launches Eon Refrigerators with Cool Shower

Technology that are adjudged the Best Design in ConsumerDurables Category at Businessworld NID Design Awards.

- 1st Company in India to introduce Steam Microwave

Oven.- Declared the Most Trusted Refrigerator Brand in

India by Readers Digest.2007 - Godrej Refrigerators win Trusted Brand Gold

award for the second consecutive year from Readers Digest

consumer survey- Godrej Refrigerators adjudged Most Preferred

Brand award for the third consecutive year as per theCNBC Consumer Awaaz Survey

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GODREJ GROUP OF COMPANIES

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Godrej and Boyce Mfg. Co. Ltd

Godrej & Boyce manufactures a spectrum of consumerproducts and industrial products. The Consumer productsinclude Appliances (Refrigerators, Washing Machines, Air

Conditioners, Microwaves, and DVD Players), Locks,Furniture, Security Equipment, Office Automation,

Conferencing Solutions, and vending Machines. IndustrialProducts include Storage Solutions, Automated

Warehousing, Material Handling Equipment, ProcessEquipment, Precision Components & Systems, Machine

Tool Service, Electrical & Electronic, Tooling, andConstruction Material & Services.

Godrej Consumer Products Ltd (GCPL)

(GCPL) Incorporated on 29th November, 2000

Godrej Consumer Products Ltd.(GCPL) is a major player inthe Indian FMCG market with leadership in personal, hair,

household and fabric care segments. The company employs

950 people and has three state-of-the-art manufacturing

facilities at Malanpur (M.P.) Guwahati (Assam) and Baddi

(H.P.).

Godrejs focus is on providing our customers withinnovative, value for money solutions for meeting their

daily needs and improving the quality of their life. This is

achieved through the brands the company markets.

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Godrej are among the largest marketer of toilet soaps in the

country with leading brands such as CINTHOL,

FAIRGLOW, GODREJ NO 1. FAIRGLOW brand, India's

first Fairness soap, has created marketing history as one ofthe most successful innovations.

Godrej are the leader in the hair colour category in India

and have a vast product range from GODREJ RENEW

COLOURSOFT LIQUID HAIR COLOURS, GODREJ

LIQUID & POWDER HAIR DYES to GODREJ KESH

KALA OIL, NUPUR based Hair Dyes.

Godrej Industries Ltd(GIL)

GIL was established in 1897

Godrej Industries Limited is India's leading manufacturer of

oleochemicals and makes more than a hundred chemicals

for use in over two dozen industries. It also manufactures

edible oils, vanaspati and bakery fats.

GIL is a member of the Godrej Group, which was

established in 1897 and has since grown into a US$1.875

billion conglomerate. The company was called Godrej

Soaps Limited until March 31, 2001. Thereafter, the

consumer products division got de-merged into Godrej

Consumer Products Limited, and the residual Godrej Soaps

became Godrej Industries Limited. This led to the formation

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of two separate corporate entities: Godrej Consumer

Products and Godrej Industries.

Besides its three businesses, Godrej Industries also runs

four divisions Corporate Finance, Corporate HR,

Corporate Audit and Assurance and Research and

Development which operate on behalf of the entire

Godrej Group.

GIL has built a strong manufacturing base capable of

delivering international quality products at competitive

prices. It operates two plants, one at Valia in the Indian state

of Gujarat and a second at Vikhroli in suburban Mumbai.

The company's products are exported to 40 countries in

North and South America, Asia, Europe, Australia and

Africa, and it leads the Indian market in the production of

fatty acids, fatty alcohols and AOS.

Godrej Products

Consumer products

Godrej Consumer Products Ltd.(GCPL) is a major player inthe Indian FMCG market with leadership in personal, hair,

household and fabric care segments. The company is among

the largest marketers of toilet soaps in the country and has a

leadership position in the hair colour category in India.22


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1. Appliances

2. Locks

3. Furniture

4. Security equipment

5. Office automation

6. Conferencing solution

7. Soaps & personal care

8. Food

9. Aircare

10. Household insecticides

11. Housing

12. Vending machine

Industrial products:

Godrej offers an entire spectrum of industrial solutions fromstorage to material handling to construction to processequipment and many, many more. Whether clients arelooking for standard equipment or custom engineering

solutions, the first name is Godrej.

1. Storage solution

2. Automated warehousing

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3. Material handling equipment

4. Process equipment

5. Precision components & systems.

6. Machine tool service

7. Electrical & electronic services

8. Tooling

9. IT solution

10. PLM solution

11. Medical diagnostics

12. Agro product

13. Chemicals

14. Construction material & services.

GODREJ DIRECT

It is a division of GODREJ appliance, where companysrepresentatives go directly to the customer and fulfill the

requirement. It is a initiative towards CRM. It has started itsoperation in 2002 by selling contracts and AMCs. But

looking at the need of the customer and after understandingthe customer in a better way we have started selling

appliances from 2005.Presently it has its operation in 15branches.

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NCR,Mumbai,Chennei,Kolkata,Lucknow,Jaipur,Hyderabad,Pune,Bangalore,Ahemedabad,Bhopal,Chandigarh,Cochin,C

oimbatore and Bhubaneswar.National head is Mr.Rajinder Kool

Zonal manager (ME)-Mr.Bharat Bhusan AgarwalZonal Manager (SW)-Mr.Sumit Malik

GODREJ DIRECT, BHUBANESWAR

Started operation in may 2008

It has 2 division telecalling and D2D.in D2D 10 executivesare there who put up camps in different location and visit to

the homes in that locality. The average knocks per executiveis 35 to 40.in telecalling 4 executives are there who call tothe existing customer and generate the leads and the sales

executive follow up the leads.

Consumer B uying B eha viour25


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Possibly the most challenging concept in marketing dealswith understanding why buyers do what they do (or dont

do). But such knowledge is critical for marketers sincehaving a strong understanding of buyer behavior will helpshed light on what is important to the customer and alsosuggest the important influences on customer decision-making. Using this information, marketers can create

marketing programs that they believe will be of interest tocustomers.

As you might guess, factors affecting how customers makedecisions are extremely complex. Buyer behavior is deeplyrooted in psychology with dashes of sociology thrown in

just to make things more interesting. Since every person inthe world is different, it is impossible to have simple rules

that explain how buying decisions are made. But those whohave spent many years analyzing customer activity havepresented us with useful guidelines in how someone

decides whether or not to make a purchase.

In fact, pick up any textbook that examines customerbehavior and each seems to approach it from a different

angle. The perspective we take is to touch on just the basicconcepts that appear to be commonly accepted as

influencing customer behavior. We will devote two sectionsof the Principles of Marketing tutorial to customer behavior.

In this section we will examine the buying behavior of

consumers (i.e., when people buy for personal reasons)while in section 4 we will examine factors that influence

buyers decisions in the business market.

This tutorial includes the following topics:

1. Consumer Buying Behavior26


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2. Types of Purchase Decisions

3. Why Consumers Buy

4. What Influences Purchasing

5. Internal: Perceptual Filter

6. Internal: Knowledge and Attitude

7. Internal: Personality and Lifestyle

8. Internal: Roles and Motivation

9. External: Culture and Groups

10. External: Situation

11. How Consumers Buy

12. Purchase Decision Steps 1 and 2

13. Purchase Decision Steps 3, 4 and 5

Types of Consumer Purchase Decisions

Consumers are faced with purchase decisions nearly everyday. But not all decisions are treated the same. Some

decisions are more complex than others and thus requiremore effort by the consumer. Other decisions are failry

routine and require little effort. In general, consumers facefour types of purchase decisions:

Minor New Purchases these purchases represent

something new to a consumer but in the customers mindis not a very important purchase in terms of need, moneyor other reason (e.g., status within a group).

Minor Re-Purchases these are the most routine of allpurchases and often the consumer returns to purchase the

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same product without giving much thought to otherproduct options (i.e., consumer is brand loyalty).

Major New Purchases these purchases are the most

difficult of all purchases because these are important tothe consumer but the consumer has little or no previousexperience making the purchase . This type of decision

often (but not always) requires the consumer to engage inan extensive decision-making process.

Major Re-Purchase - these purchase decisions are alsoimportant to the customer but the customer feels more

confident in making the decision since they haveexperienced purchasing the product in the past.

For marketers it is important to understand how consumerstreat the purchase decisions they face. If a company is

targeting customers who feel a purchase decision is difficult(i.e., Major New Purchase), their marketing strategy may

vary greatly from a company targeting customers who viewthe purchase decision as routine. In fact, the same company

may face both situations at the same time; for some theproduct is new, while other customers see the purchase as

routine. The implication of buying behavior for marketers isthat different buying situations require different marketing

efforts.

Why Consumers BuyAs we discussed in Part 1: What is Marketing?, customersmake purchases in order to satisfy needs. Some of these

needs are basic and must be filled by everyone on the planet(e.g., food, shelter) while others are not required for basic

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survival and vary depending on the person. It probablymakes more sense to classify needs that are not a necessity

as wants or desires. In fact, in many countries where thestandard of living is very high, a large portion of the

populations income is spent on wants and desires ratherthan on basic needs.

In this tutorial when we mention the consumer we arereferring to the actual buyer, the person spending the

money. But is should also be pointed out that the one whodoes the buying is not necessarily the user of what is bought

and that others may be involved in the buying decision inaddition to the actual buyer. While the purchasing process in

the consumer market is not as complex as the businessmarket, having multiple people involved in a purchasedecision is not unusual. For example, in planning for a

family vacation the mother may make the hotel reservationsbut others in the family may have input on the hotel choice.Similarly, a father may purchase snacks at the grocery store

but his young child may be the one who selected it from thestore shelf.

So understanding consumer purchase behavior involves notonly understanding how decisions are made but alsounderstanding the dynamics that influence purchases.

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What Influences Purchasing

As we discussed the decision-making process for consumersis anything but straight forward. There are many factors that

can affect this process as a person works through thepurchase decision. The number of potential influences on

consumer behavior is limitless. However, marketers are wellserved to understand the KEY influences. By doing so theymay be in a position to tailor their marketing efforts to takeadvantages of these influences in a way that will satisfy theconsumer and the marketer (remember this is a key part of

the definition of marketing).

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For the purposes of this tutorial we will break theseinfluences down into three main categories: Internal,External and Marketing. However, those interested in

learning more about customer buying activity may want toconsult one or more consumer behavior books where they

will find additional methods for explaining consumerbuying behavior.

For the most part the influences are not mutually exclusive.Instead, they are all interconnected and, as we will see,work together to form who we are and how we behave.

For each of the influences that are discussed we will providea basic description and also suggest its implication to

marketers. Bear in mind we only provide a few marketingimplications for each influence; clearly there are many

more.

INTERNAL INFLUENCES

We start our examination of the influences on consumerpurchase decisions by first looking inside ourselves to see

which are the most important internal factors that affecthow we make choices.

Perceptual Filter

Perception is how we see ourselves and the world we livein. However, what ends up being stored inside us doesnt

always get there in a direct manner. Often our mentalmakeup results from information that has been consciouslyor unconsciously filtered as we experience it, a process we

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refer to as a perceptual filter. To us this is our reality, thoughit does not mean it is an accurate reflection on what is real.Thus, perception is the way we filter stimuli (e.g., someone

talking to us, reading a newspaper story) and then makesense out of it.

Perception has several steps.

Exposure sensing a stimuli (e.g. seeing an ad)

Attention an effort to recognize the nature of a stimuli(e.g. recognizing it is an ad)

Awareness assigning meaning to a stimuli (e.g.,

humorous ad for particular product)

Retention adding the meaning to ones internal makeup(i.e., product has fun ads)

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How these steps are eventually carried out depends on apersons approach to learning. By learning we mean how

someone changes what they know, which in turn may affect

how they act. There are many theories of learning, adiscussion of which is beyond the scope of this tutorial,however, suffice to say that people are likely to learn indifferent ways. For instance, one person may be able to

focus very strongly on a certain advertisement and be ableto retain the information after being exposed only one timewhile another person may need to be exposed to the sameadvertisement many times before he/she even recognizes

what it is. Consumers are also more likely to retaininformation if a person has a strong interest in the stimuli. If

a person is in need of new car they are more likely to payattention to a new advertisement for a car while someone

who does not need a car may need to see the advertisementmany times before they recognize the brand of automobile.

Marketing Implication:

Marketers spend large sums of money in an attempt to getcustomers to have a positive impression of their products.

But clearly the existence of a perceptual filter suggests thatgetting to this stage is not easy. Exposing consumers to a

product can be very challenging considering the amount ofcompeting product messages (ads) that are also trying to

accomplish the same objective (i.e., advertising clutter). So

marketers must be creative and use various means to delivertheir message Once the message reaches consumer it must

be interesting enough to capture the their attention (e.g., talkabout the products benefits). But attending to the message

is not enough. For marketers the most critical step is the one

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that occurs with awareness. Here marketers mustcontinually monitor and respond if their message becomesdistorted in ways that will negatively shape its meaning.This can often happen due in part to competitive activity

(e.g., comparison advertisements). Finally, getting theconsumer to give positive meaning to the message they

have retained requires the marketer make sure thatconsumers accurately interpret the facts about the product.

Knowledge

Knowledge is the sum of all information known by a

person. It is the facts of the world as he/she knows it and thedepth of knowledge is a function of the breadth of worldlyexperiences and the strength of an individuals long-term

memory. Obviously what exists as knowledge to anindividual depends on how an individuals perceptual filter

makes sense of the information it is exposed to.

Marketing Implications:

Marketers may conduct research that will gauge consumerslevel of knowledge regarding their product. As we will seebelow, it is likely that other factors influencing consumer

behavior are in large part shaped by what is known about aproduct. Thus, developing methods (e.g., incentives) to

encourage consumers to accept more information (or correctinformation) may affect other influencing factors.

AttitudeIn simple terms attitude refers to what a person feels or

believes about something. Additionally, attitude may bereflected in how an individual acts based on his or her

beliefs. Once formed, attitudes can be very difficult to

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change. Thus, if a consumer has a negative attitude toward aparticular issue it will take considerable effort to change

what they believe to be true.

Marketing Implication:Marketers facing consumers who have a negative attitudetoward their product must work to identify the key issues

shaping a consumers attitude then adjust marketingdecisions (e.g., advertising) in an effort to change the

attitude. For companies competing against strong rivals towhom loyal consumers exhibit a positive attitude, an

important strategy is to work to see why consumers feelpositive toward the competitor and then try to meet or beatthe competitor on these issues. Alternatively, a company can

try to locate customers who feel negatively toward thecompetitor and then increase awareness among this group.

Personality

An individuals personality relates to perceived personal

characteristics that are consistently exhibited, especiallywhen one acts in the presence of others. In most, but not all,cases the behaviors one projects in a situation is similar tothe behaviors a person exhibits in another situation. In this

way

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personality is the sum of sensory experiences others getfrom experiencing a person (i.e., how one talks, reacts).While ones personality is often interpreted by those we

interact with, the person has their own vision of theirpersonality, called self concept, which may or may not be

the same has how others view us.


For marketers it is important to know that consumers makepurchase decisions to support their self concept. Using

research techniques to identify how customers view

themselves may give marketers insight into products andpromotion options that are not readily apparent. Forexample, when examining consumers a marketer may

initially build marketing strategy around more obvious cluesto consumption behavior, such as consumers demographic

indicators (e.g., age, occupation, income). However, in-depth research may yield information that shows consumers

are purchasing products to fulfill self-concept objectivesthat have little to do with the demographic category they fallinto (e.g., senior citizen may be making purchases that make

them feel younger). Appealing to the consumers selfconcept needs could expand the market to which the

product is targeted.

Lifestyle

This influencing factor relates to the way we live throughthe activities we engage in and interests we express. Insimple terms it is what we value out of life. Lifestyle isoften determined by how we spend our time and money.


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Products and services are purchased to support consumerslifestyles. Marketers have worked hard researching how

consumers in their target markets live their lives since thisinformation is key to developing products, suggesting

promotional strategies and even determining how best todistribute products. The fact that lifestyle is so directly tiedto marketing activity will be further examined as we discussdeveloping target market strategies (See Part 5 Targeting

Markets).

Roles

Roles represent the position we feel we hold or others feelwe should hold when dealing in a group environment. Thesepositions carry certain responsibilities yet it is important tounderstand that some of these responsibilities may, in fact,

be perceived and not spelled out or even accepted by others.In support of their roles, consumers will make product

choices that may vary depending on which role they areassuming. As illustration, a person who is responsible for

selecting snack food for an office party his boss will attendmay choose higher quality products than he would choose

when selecting snacks for his family.


Advertisers often show how the benefits of their productsaid consumers as they perform certain roles. Typically the

underlying message of this promotional approach is tosuggest that using the advertisers product will help raiseones status in the eyes of others while using a competitors

product may have a negative effect on status.

Motivation

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Motivation relates to our desire to achieve a certainoutcome. Many internal factors we have already discussedcan affect a customers desire to achieve a certain outcome

but there are others. For instance, when it comes to makingpurchase decisions customers motivation could be affected

by such issues as financial position (e.g., can I afford thepurchase?), time constraints (e.g., do I need to make thepurchase quickly?), overall value (e.g., am I getting my

moneys worth?), and perceived risk (e.g., what happens if Imake a bad decision).


Motivation is also closely tied to the concept ofinvolvement, which relates to how much effort the

consumer will exert in making a decision. Highly motivatedconsumers will want to get mentally and physically

involved in the purchase process. Not all products have ahigh percentage of highly involved customers (e.g., milk)

but marketers who market products and services that maylead to high level of consumer involvement should prepare

options that will be attractive to this group. For

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instance, marketers should make it easy for consumers tolearn about their product (e.g., information on website, freevideo preview) and, for some products, allow customers to

experience the product (e.g., free trial) before committing tothe purchase.

EXTERNAL INFLUENCES

Consumer purchasing decisions are often affected by factorsthat are outside of their control but have direct or indirect

impact on how we live and what we consume.

Culture

Culture represents the behavior, beliefs and, in many cases,the way we act learned by interacting or observing othermembers of society. In this way much of what we do is

shared behavior, passed along from one member of societyto another. Yet culture is a broad concept that, while of

interest to marketers, is not nearly as important asunderstanding what occurs within smaller groups or sub-

cultures to which we may also belong. Sub-cultures alsohave shared values but this occurs within a smaller groups.For instance, sub-cultures exist where groups share similarvalues in terms of ethnicity, religious beliefs, geographic

location, special interests and many others.


As part of their efforts to convince customers to purchasetheir products, marketers often use cultural representations,

especially in promotional appeals. The objective is toconnect to consumers using cultural references that are

easily understood and often embraced by the consumer. Bydoing so the marketer hopes the consumer feels more

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comfortable with or can relate better to the product since itcorresponds with their cultural values. Additionally, smart

marketers use strong research efforts in an attempt toidentify differences in how sub-culture behaves. These

efforts help pave the way for spotting trends within a sub-culture, which the marketer can capitalize on through newmarketing tactics (e.g., new products, new sales channels,

added value, etc.).

Other Group Membership

In addition to cultural influences, consumers belong to

many other groups with which they share certaincharacteristics and which may influence purchase decisions.Often these groups contain opinion leaders or others who

have major influence on what the customer purchases.Some of the basic groups we may belong to include:

Social Class represents the social standing one haswithin a society based on such factors as income level,

education, occupation Family ones family situation can have a strong

effect on how purchase decisions are made

Reference groups most consumers simultaneouslybelong to many other groups with which they associate

or, in some cases, feel the need to disassociate.

MarketingImplications:

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Identifying and understanding the groups consumers belongto is a key strategy for marketers. Doing so helps identify

target markets, develop new products, and create appealingmarketing promotions to which consumers can relate. In

particular, marketers seek to locate group leaders and othersto whom members of the group look for advice or direction.These opinion leaders, if well respected by the group, canbe used to gain insight into group behavior and if these

opinion leaders accept promotional opportunities could actas effective spokespeople for the marketers products.

Situation

A purchase decision can be strongly affected by thesituation in which people find themselves. Not all situationsare controllable, in which case a consumer may not followtheir normal process for making a purchase decision. Forinstance, if a person needs a product quickly and a store

does not carry the brand they normally purchase, thecustomer may choose a competitors product.

Marketing Implications:

Marketers can take advantage of decisions made inuncontrollable situations in at least two ways. First, themarketers can use promotional methods to reinforce aspecific selection of products when the consumer isconfronted with a particular situation. For example,

automotive services can be6

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purchased that promise to service vehicles if the user runsinto problems anywhere and at anytime. Second, marketers

can use marketing methods that attempt to convince

consumers that a situation is less likely to occur if themarketers product is used. This can also be seen with autoproducts, where marketers explain that using their product

will prevent unexpected damage to their vehicles.

How Consumers Buy

So now that we have discussed the factors influencing aconsumers decision to purchase, lets examine the process

itself. This process is presented in a sequence of 5 steps asshown below.

However, whether a consumer will actually carryout eachstep depends on the type of purchase decision that is faced.For instance, for minor re-purchases the consumer may bequite loyal to the same brand, thus the decision is a routineone (i.e., buy the same product) and little effort is involved

in making a purchase decision. In cases of routine, brandloyal purchases consumers may skip several steps in the

purchasing process since they know exactly what they wantallowing the consumer to move quickly through the steps.

But for more complex decisions, such as Major NewPurchases, the purchasing process can extend for days,weeks, months or longer. So in presenting these steps

marketers should realize that, depending on thecircumstances surrounding the purchase, the importance ofeach step may vary.

1. Need/Want/Desire is Recognized

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In the first step the consumer has determined that for somereason he/she is not satisfied (i.e., consumers perceivedactual condition) and wants to improve his/her situation

(i.e., consumers perceived desired condition). For instance,internal triggers, such as hunger or thirst, may tell the

consumer that food or drink is needed. External factors canalso trigger consumers needs. Marketers are particularly

good at this through advertising, in-store displays and eventhe intentional use of scent (e.g., perfume counters). At thisstage the decision-making process may stall if the consumer

is not motivated to continue (see Motivation above).

However, if the consumer does have the internal drive tosatisfy the need they will continue to the next step.

2. Search for Information

Assuming consumers are motivated to satisfy his or herneed, they will next undertake a search for information on

possible solutions. The sources used to acquire thisinformation may be as simple as remembering informationfrom past experience (i.e., memory) or the consumer may

expend considerable effort to locate information fromoutside sources (e.g., Internet search, talk with others, etc.).

How much effort the consumer directs toward searchingdepends on such factors as: the importance of satisfying theneed, familiarity with available solutions, and the amount oftime available to search. To appeal to consumers who are at

the search stage, marketers should make efforts to ensureconsumers can locate information related to their product.For example, for marketers whose customers rely on the

Internet for information gathering, attaining high rankingsin search engines has become a critical marketing objective.

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3. Evaluate Options

Consumers search efforts may result in a set of optionsfrom which a choice can be made. It should be noted that

there may be two levels to this stage. At level one theconsumer may create a set of possible solutions to their

needs (i.e., product types) while at level two the consumermay be evaluating particular products (i.e., brands) within

each solution. For example, a consumer who

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needs to replace a television has multiple solutions tochoose from such as plasma, LCD and CRT televisions.Within each solution type will be multiple brands from

which to choose. Marketers need to understand howconsumers evaluate product options and why some products

are included while others are not. Most importantly,marketers must determine which criteria consumers areusing in their selection of possible options and how each

criterion is evaluated. Returning to the television example,marketing tactics will be most effective when the marketercan tailor their efforts by knowing what benefits are most

important to consumers when selecting options (e.g., picturequality, brand name, screen size, etc.) and then determine

the order of importance of each benefit.

4. Purchase

In many cases the solution chosen by the consumer is thesame as the product whose evaluation is the highest.

However, this may change when it is actually time to makethe purchase. The intended purchase may be altered at thetime of purchase for many reasons such as: the product isout-of-stock, a competitor offers an incentive at the point-

of-purchase (e.g., store salesperson mentions a competitorsoffer), the customer lacks the necessary funds (e.g., credit

card not working), or members of the consumers referencegroup take a negative view of the purchase (e.g., friend is

critical of purchase). Marketers whose product is mostdesirable to the consumer must make sure that the

transaction goes smoothly. For example, Internet retailershave worked hard to prevent consumers from abandoning

online purchase (i.e., online shopping carts) by streamlining

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the checkout process. For marketers whose product is notthe consumers selected product, last chance marketing

efforts may be worth exploring, such as offering incentivesto store personnel to talk up their product at the checkout

line.

5. After-Purchase Evaluation

Once the consumer has made the purchase they are facedwith an evaluation of the decision. If the product performs

below the consumers expectation then he/she will re-evaluate satisfaction with the decision, which at its extreme

may result in the consumer returning the product while inless extreme situations the consumer will retain thepurchased item but may take a negative view of the product.

Such evaluations are more likely to occur in cases ofexpensive or highly important purchases. To help ease theconcerns consumers have with their purchase evaluation,

marketers need to be receptive and even encourageconsumer contact. Customer service centers and follow-up

market research are useful tools in helping to addresspurchasers concerns.

As weve seen, consumer purchasing is quite complex.

8

DATA ANLYSIS OF CONSUMER SURVEY

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Q1. Have you already used any product of Godrej ?

As per our

market

survey most

of the

58%customer

said that

they already

used electronics product of Godrej.

Q2. Which brand you like most?

Videocon LG Samsung Sony Goderj

48

Customer are already

using product ofGodrej

Yes No

58% 42%


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Customer

preference

brand

Videocon LG Samsung Godrej

16% 35% 22% 27%

From the above diagram,LG is most preferable brand

among all the brands and being a market leader with

35%.after that godrej followed the leader with 27%.

Q3. Which factors influence you to purchase a product?

Price, Service,

Brand image, Features,

Influence by other,

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Reason for

purchasing

a product

Price Service Brand

image

Features Influence

by others

28 18 22 20 12

From the above diagram, We come across that the Price is

the main factor which influence the consumer buying

process. After that it is followed by Brand

image,features,service of the company.At last purchase

decision of consumer get more influence by the others.

Q4. Do you have any Godrej home appliances?

Refrigerator AC Washing Machine Microwave water

purifier DVD player

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Godrej

home

appliance.

Water

purifier

Refrigerator AC Washing

Machine

DVD

player

Microwave

2% 40% 13% 22% 13% 10%

It is to be found that most of the people having Godrej

Refrigerator, after that Godrej Washing machine, then they

use Ac,and most of the people are not aware of Godrej

Microwave and water purifier.Thats why it have very low

percentage.

Q5. Do you aware about Godrej Home appliances?

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52

Refriger

ator

Ac

Washing

Machine

Water

Purifier

Micro

Woven

DVDPlayer

96%

50%

70%

5%

25%

15%


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From the above table shows that 96% of people awareabout Godrej Refrigerator.70% of people knowing about

the washing machine,60% microwave,25% AC,20%DVD Player and 5% of people aware on Water purifier.

FINDING

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After completing the survey and analyzing the responses of

the persons , we came across the following facts: -

A large number of consumer are using Godrej

equipment like ACs, Refrigerator and are quitesatisfied with the performance of the appliances.

Majority of the respondents in the survey were found

reluctant about giving details to us.

Existing customers of Godrej are satisfied with after

sales services, with few exceptions.

Customer think that brand name of the company caninfluence their purchase decision.

RECOMMENDATIONS

Based on our descriptive research on retailers and institutionin the Bhubaneswar market we have some

recommendations for Company. Also through whole projectduration we did some observational study and literature

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review and we found that there are some factors which canhelp the company to build a brand in national market.

Some of the recommendations are as follows:-1) Company should organize free checkup camp for big

institution like educational institution, hotels andhospitals, so that it will increase the loyalty of the

institution.2) Company should give Quotation for different slabs of

different quantity at the best possible price forconsolidated quantity.

3) Competitors are giving the appliance in credit, which isone of the main factors which determine the purchase.Companies take post dated cheque from the institution.

GODREJ should also follow the same tactics.4) Most of the institutions get the post sales service

quickly. So it is better to increase the number ofvoluntary service for differentiation.

5) Exclusive stores should be opened for GODREJappliance similar to GODREJ INTERIO.

6) Palm plate should be distributed with business newspaperand other popular newspaper.

7) The company should position itself as a life style Brandthrough advertisement in leading newspaper.

8) Company gives more emphasis on heavy advertising.

Questions for the survey55


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INSTITUTION NAME:

LOCATION:

Dear Sir/madam, I am a MBA student from Niis Institute Of Business Administration(NIIS.), Bhubaneswar and doing a project on

Consumer Buying Behaviour of Godrej Appliances. Your response is highly valuable. I would be grateful if you could help me by

filling it up honestly and legitimately. I assure that any information provided will be solely used for academic purpose and will be kept

confidential. No answers are right or wrong; give the answers which you feel are the best.

Consumer buying behavior / need analysis on appliances

We would be thankful if you share some of your valuable opinion regarding the following

questionnaire.

NAME: CONTACT NO:

AGE: ADDRESS:

OCCUPATION:

1. Family size

Less than 4 members ( ) 4-6 members ( )

More than 6 members ( )

2. Which product of you have purchased and when?

Refrigerator ( )_______ microwave ( )__________

Washing machine ( )______ D.V.D player ( )__________

None of above ( )______ water purifier ( )__________

3. Do you know about Godrej products?

Refrigerator ( ) microwave ( )

Washing machine ( ) D.V.D player ( )

None of above ( ) water purifier ( )

4. From where would you like to buy products?

Multi brand outlet ( ) Direct marketing ( ) Retail store

( )

5. Which factor influences you to purchase products?

Company brand name ( ) promotional activities ( )

Product feature ( ) price ( )

Service ( ) influence by other ( )

6. When you prefer to buy a product?

Exchange offer ( ) discount offer ( )

Sales offer ( ) other ( )

7. Have you ever use Godrej appliances?

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Once ( ) always ( ) never ( )

8. Satisfaction level with your products?

Extremely unsatisfied ( ) somehow unsatisfied ( )

Satisfied ( )somehow satisfied ( )

Extremely satisfied ( )

9. Which brand you like most?

LG ( ) SAMSUNG ( ) GODREJ ( )

VIDEOCON ( ) OTHER ( )

10. View about Godrej and its products?

____________________________________________________________________________________________________________

______

REFERENCES

1. Kotler, Philip and Keller, K.L. (2007), Marketingmanagement

2.Electronic Reference: Official website of GODREJwww.godrej.com

www.godrejappliances.comwww.godrejdirect.com

3. Electronic Reference:http://.wikipedia.org/wiki/Bhubaneswar

4. Electronic Reference:http://www.google.com

57
http://www.godrej.com/http://www.godrejappliances.com/http://www.godrejdirect.com/http://www.google.com/http://www.godrej.com/http://www.godrejappliances.com/http://www.godrejdirect.com/http://www.google.com/


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Consumer Buying Behaviour in Godrej Home Appliances

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