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Submitted in partial fulfilment for the award of the degree
Master of Business Administration
Chhattisgarh Swami Vivekananda Technical University, Bhilai
Submitted by,
MBA Semester II
Session -2010-11
APPROVED BY GUIDED BY
DR.SUMITA DAVE PROF.SAKET RANJAN PRAVEER
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Shri Shankaracharya
Mahavidyalaya
DECLARATION
I the undersigned solemnly declare that the report of the
research work entitled A study on consumer purchase intention
towards AC in Raipur is based on my own work carried out
during the course of my study under the supervision of prof.saket
Ranjan Praveer
I assert that the statements made and conclusions drawn
are an outcome of my research work. I further declare that to the
best of my knowledge and belief the report does not contain any
part of any work which has been submitted for the award of MBA
degree or any other degree/diploma/certificate in this University
or any other University of India or abroad.
_________________
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(Signatureof the
Candidate)RUCHI RAI
ENROLLME
NT NO-
CERTIFICATE
This is to certify that the work incorporated in the report
is a record of research work carried out by
bearing Enrollment No.: under my/our
guidance and supervision for the part fulfillment for the award of
MBA Degree of Chhattisgarh Swami Vivekanand Technical
University, Bhilai (C.G.), India.
To the best of my knowledge and belief the Report
i) Embodies the work of the candidate him/herself,
ii) Has duly been completed,
iii) Is up to the desired standard both in respect of contents
and language for external viva.
______
___________
(Signature
of the
Supervisor
)
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I would like to sincerely express my gratitude to Dr. Sumita
Dave , Head of Department of MBA, SSMV, Bhilai (C.G.), whose
encouragement and keen interest couples with valuablesuggestion, served a lot in the successful completion of the
work.
I am privileged to acknowledge the meticulous guidance
received from her. Although being very busy she helped me in
going about the project.
My heartiest is due to all my teachers for helping me, and
developing my skills by encouraging me all the time for study andproject work. I thank all my respondents, and my friends who
were kind enough to provide necessary data required for the
study.
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TABLE OF CONTENTS
Declaration by the Student
Certificate from the Supervisor / Company
Acknowledgments
Chapter 1. Introduction to the study
a. Explanation of the subject
b. Literature Review
Chapter 2. Company Profile / Industry Profile
Chapter 3. Research Methodology
a. Objectives
b. Research Plan
c. Sampling Plan
d. Data Collection
e. Descriptive Statistics
Chapter 4. Data Tabulation, Analysis and Results
a. Type of Analysis used and Why
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b. Results of the Analysis
Chapter 5. Findings of the study
Chapter 6. Recommendations
Chapter 7. Limitations
Chapter 8. Conclusions
References
Appendices
a. Research Progress Report
b. Questionnaire used
CHAPTER :1
INTRODUCTION TO TH E
STUDY
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The pupose of this report is to provide a background
understanding of what factors affect the purchase
intention of AC in raipur with a view to develop
marketing strategies.
With the help of this research I have tried to find out
the significant impact of factors such as
price,brand,quality,after sale service and warranty on
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the purchase intention of consumers while purchasing
AC.
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CHAPTER :2
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INDUSTRY PROFILE
AIR CONDITIONERS
The ongoing economic buoyancy in India .despite globaleconomic melt down has offered opportunities for rapid growth
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of consumer durable industry, and in particularly airconditioners and refrigeration industry.
In general, there are different types of air conditioners, but thebroader classification was room air conditioners andcommercial range of air conditioners.
The room air conditioners category consists of both the windowand split ACs for the use in residential and commercial spaces.The commercial air conditioning comprises of the ductable split
ACs to large sized chillers. This segment comprises of retail
chains, MNCs, IT/ITeS sectors, BPOs, call centres, institutes,
malls, etc. The market is of around Rs 3,600 crore, and is
growing at the rate of approximately 25 per cent annually.
INDUSTRY OVERVIEW
The size of the air-conditioner industry in India is about Rs 2,000crore. The industry can be sub-divided into non-ducted andducted products. The demand for non-ducted products --window air-conditioners and mini-splits -- comes from bothhouseholds and corporates. The demand for ducted products --central plants, packaged air-conditioners and ducted splits -- isonly from the corporates
SAMSUNG AIR CONDITIONERS
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WHIRLPOOL AIR CONDITIONERS
ELECTROLUX AIR CONDITIONERS
LG AIR CONDITIONERS
VOLTAS AIR CONDITIONERS
VIDEOCON AIR CONDITIONERS ONIDA AIR CONDITIONERS
GODREJ AIR CONDITIONERS
CARRIER AIR CONDITIONERS
SANYO AIR CONDITIONERS
AKAI AIR CONDITIONERS
HITACHI AIR CONDITIONERS
BAJAJ AIR CONDITIONERS
KORYO AIR CONDITIONERS
SENSEI AIR CONDITIONERS KENSTAR AIR CONDITIONERS
BIRLA LIFESTYLE AIR COOLERS
BLUESTAR AIR CONDITIONERS
HAIER AC
OTHERS
PORTABLE AC-
Can be moved from room to room
No need for professional installation
Some are only suitable as personal coolers rather thanroom coolers
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SPLIT AC
Very quiet operation
Attractive and aesthetic designs
Offers more flexibility on where to locate the outsidecomponent than wall model
Can cool open-plan areas well
WINDOW MOUNTED AC
Can cool single rooms well
Single unit
Requires lesser upfront cost as installation is simple
Smaller units can be plugged into existing power points
http://indiahometips.com/images/ac/split-air-conditioner.jpghttp://indiahometips.com/images/ac/portable-air-conditioner.jpg7/31/2019 Final_report Ruchi Rrv
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DUCTED AIR CONDITIONERS
Energy efficient Can be designed with multiple zones so you can cool all of
the home or just specific areas
Offers flexibility as to where noise generating equipment islocated
REVERSE CYCLE AIR CONDITIONERS
One system for heating and cooling
http://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/window-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpg7/31/2019 Final_report Ruchi Rrv
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Cheapest form of heating system
Creates the least amount of carbon dioxide
BRITISH THERMAL UNIT- This is the standard measure of heat
energy. Manufacturers classify the
size, or capacity, of an air-conditioning unit in terms of Btu/h.
COOLING CAPACITY- Most ACs are rated in BTU per hour or
by tonnage. It depends upon various
factors such as average ambience temperature, the size of room,
exposure of walls to sunlight, etc.
http://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpghttp://indiahometips.com/images/ac/ducted-air-conditioner.jpg7/31/2019 Final_report Ruchi Rrv
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COMPRESSOR TYPES The compressor is the ACs most
Important component. It helps in the
cooling process and can be of 3 type- reciprocating, rotary and
scroll.
ENERGY EFFICIENCY RATIO (EER )- its the ratio of its cooling
Capacity to the electricity it
consumes under standard operating conditioners. The higherthe EER ratio, the better chance you have against getting a
helluva electricity bill!
CHAPTER:3
LITERATURE REVIEW
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CONSUMER BEHAVIOUR
It is that behaviour that consumer display in searching for,Purchasing, using, evaluating and disposing of products and
services that they expect will satisfy their needs. Consumer
behaviour focuses on how individuals make decision to spend
their available resources (time, money, effort) on consumption
of related items that includes what they buy, when they buy it,
where they buy it, how often they use it, how they evaluate it
after the purchase, the impact of such evaluation on future
purchases and how often they dispose it of.
CULTURAL FACTORS
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Culture
Sub culture
Social classSOCIAL FACTORS
Reference groups
Family
Roles and statusPERSONAL FACTORS
Age and life cycle stages
Occupation
LifestylePSYCHOLOGICAL FACTORS
Motivation
Perception
Learning
Belief and attitudes
PRICE-
Price is one element of marketing mix that produces
revenue, the other elements produce costs. Prices are perhaps
the easiest element of the marketing program to adjust, product
features, channels and even promotion take more time. Price
also communicates to the market the ongoing companys
intended value positioning of its product or brand. A well
designed and marketed product can command a price premium
and reap big profits (by PHILIP KOTLER AND KEVIN LANE
KELLER page 431)
To manufacturer, price represents the quality
of money received by the firm or the seller for its product. Price
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determines the capability of a customer to buy. (by Rajan
Saxena page 321)
J.P. BOUCHAUD said that a potential powerful
way to assist consumers in making dynamic decision is todisclose price information to them before they shop.
QUALITY-
Quality is a multi dimensional concept that
cannot be easily defined or measured, a distinction can be made
between objective quality and perceived quality. Objective
quality refers to the actual technical excellence of the productthat can be verified and measured (MONROE AND KRISHMAN
1985) in contrast; perceived quality is the consumers judgment
about a products overall excellence or superiority
(ZEITHAML 1988)
AFTER SALE SERVICE-
The level of after sale service is
usually only applicable when making larger purchases, such as
white goods. If buying a car, you would know that there are
specialists that can fix it, if it broke down, in addition you would
expect there to be some kind of warranty in place. Before
making larger purchases consumer should always consider the
level, and quality, of the after sale service
(www.allprojectreports.com)
BRAND-The consumers choice is influenced by many
surrogates of whom the simplest one is a brand name. Although
there may be equally satisfying products, the consumer when
satisfied with some brand does not want to spend additional
effort to evaluate the other alternative choices. once he or she
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liked a particular brand ,he or she tends to stay with it, unless
there is a steep rise in the price or a discernible better quality
product comes to his/her knowledge, which prompts the
consumer to switch the brand.(www.allprojectreports.com)
WARRANTY-
Product warranties perform important functions
for marketers, serving as a persuasive sales variable (Kendall
and Russ 1975) and protecting sellers from unreasonable claims
by product users (Udell and Anderson 1968).
According to Darden and Rao (1977) warranties
serve to increase consumer satisfaction by reducing
dissonance.
On the other hand, Perry and Perry (1976) contend that
warranties reduce consumer feelings of risk.
(www.acrwebsite.org)
HISTORY OF AIR CONDITIONERS
The AC has been around for over a thousand years. The earliest
type of AC device was in ancient Rome supposedly where the
scientists invented it to cool down the buildings. The way the
scientists and builders made these ac for the buildings was
building cisterns and wind towers. The cisterns were large pools
of water and when it became hot the water would evaporate into
cool air and then the wind towers would blow the air into the
building. Because the buildings were subject to extraordinary
heat they had to find a way to cool down the environment.
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In 1881, naval engineers constructed a box-like structure
containing cloths saturated with melted ice water, where a fan
blew hot air overhead. This contraception was able to lower a
room by 20 degrees Fahrenheit but consumed half a million
pounds of ice in two months time.
A close ancestor to the modern AC units was first made in 1902
by an American engineer by the name of Willis Carrier. The
machine at that time was called Apparatus for treating air and
was built for the Sackett - Wilhelms lithographing and publishing
co. in Brooklyn, New York. Chilled coils were used in the
machine to cool air and lower humidity to 55%, although theapparatus was made with enough precision that the humidity
level desired was adjustable.
After the invention by Carrier, AC began to bloom. They first hit
the industrial buildings such as printing plants, textile mills,
pharmaceutical manufacturers, and a few hospitals. The first air-
conditioned home was that of Charles gates, son of Gambler
John bet a million gates, in Minneapolis in 1914. However,
during the first wave of their installation, Carriers AC units were
large, expensive, and dangerous due to the toxic ammonia that
was used as coolant.
Presently with the help of technology and electricity the boom of
AC devices have began to take effect. They have made many
aircon units to choose from, permanent outside AC, residential
and commercial AC. With people who have a place that they live
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and cant afford residential air conditioning, a portable AC is a
key thing to have and requires no permanent installation. The
difference from permanent air conditioning and portable is that
with one you can move the cool air wherever you go but with the
permanent installation you dont have that luxury.
With the history of air conditioning and the many ways ACs have
evolved, there are great ways to keep anyone cool during the
summer. From ancient Rome in the 1800s to the hospitals
where people are sick; air conditioning is a necessity not only
during the summer but year around considering how hot it may
be.
Air conditioners have re-defined the home comfort. In simple
terms, these home appliances are designed to replace the hot air
in a room with nice and cool air. ACs allow you to control the
room temperature, humidity, and the air quality making living in
hot climate very comfortable.
Not too long ago ACs at home was considered a luxury item.
Buying an AC was certainly beyond aam aadmis imagination.
An AC was considered an expensive purchase for most middle
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class households in India and having it at home remained a far
stretched dream.
Not any more! This is one luxury item everyone wants to laytheir hands on now. Its not very difficult to find the reasons
behind this change in mindset.
The prices for AC have diminished and technologicalinnovations have made them energy efficient, less noisyand lighter.
An AC at home apart from controlling the temperaturealso keeps a check on relative humidity while takingcare of room ventilation and air distribution.
The AC installation has become painless and themaintenance cost is also within reach
CHAPTER : 4
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve theresearch problem. In it the researcher studies the various steps thatare generally adopted by researcher in studying his research problemalong with the logic behind them. It is necessary for the researcher todesign his methodology for his problem as the same may differ fromproblem to problem. Thus, when a researcher talks of researchmethodology; he not only talks about the research methods but alsoconsider the logic behind the methods he use in the context of hisresearch study and explain why he is using a particular method or
technique and why he is not using others so that research results arecapable of being evaluated either by researcher himself or by others.
1.STATEMENT OF THE PROBLEM
A study on factors affecting consumer purchase intention
towards AC in raipur
2.OBJECTIVE OF THE STUDY
to identify the factors affecting the consumer purchase
intention .
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to find out the significance of the impact of identified
factors on consumer purchase intention
to suggest strategies to the marketing policy makers.
3.POPULATION
Population refers to the total of items about whichinformation is desired. The attributes that are the object ofthe study are referred to as characteristics and the unitspossessing them are called as elementary units. Theaggregate of such units is generally described aspopulation. The population is the specific group of peoplewhich forms the pivotal of research. To achieve theobjective the city of Raipur was selected.
4.RESEARCH DESIGN
5.SAMPLE
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RESEARCH PLAN
Research Design: Descriptive
Research Method Used Survey
Research Technique Used QuestionnaireData Collection Raipur
Sampling Plan Simple Random
No. of samples collected 100
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Measure Item Number of Respondents
Age
60 2
Income
(in lakhs)
< 1.5 77
1.5-2.99 13
3-54.50 5
>4.5 5
Gender Male 51
Female 49
Occupation
student 72
Businessperson
8
service 9
profession
7
household
4
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with the help of factor analysis it is found that the
loading of variables was appropriate
(rotated comp matrix table)
I have used cluster analysis technique for data analysis.
The number of clusters were 3 for data analysis
After the cluster analysis following annova table shows the
significance level of independent variables.
( annova table)
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1. As per the cluster analysis with the help of annova table it
is found that all the independent variables , price, brand ,
after sale service, quality and warranty are significant.
2. these factors are significantly responsible for purchase
intention towards AC in raipur
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1. since the sample out of the population was 100 , the
conclusion cannot be generalised for the whole raipur city.
2. the respondent were not willing to answer
3. the time for the study was limited
4. some respondents had language problem
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The topic A study on factors affecting the consumer purchaseintention towards AC in Raipur revolves around the factors andelements that influence the purchase intention of the consumer. Thestudy was made out to know what are the factors that had influencedor up to what impact had influenced the intention of consumers. Thestudy also focused to know the changed thinking of consumers
towards AC in changing scenario of economic growth of the nation.The Indian consumer is very much conscious about the quality andprice. The purpose behind study is to know the consumers likingsand disliking and the factors influencing their decisions and to knowhow long consumer think AC as a necessity or luxurious item in thechanging scenario of economic growth. The study was focused toknow what are the factors which influences the consumer purchaseintention.
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