MBA Summer Internship Project Report

SUMMER INTERNSHIP PROJECT REPORT 2013

IBS HYDERABAD Page 1

A REPORT ON

““STUDY ON FACTORS INFLUENCING CAPABILITY AND USABILITY OF CONSUMER DURABLES-LG BRAND SHOP MOT [MOMENT OF TRUTH] ON CONSUMER BEHAVIOUR “

BY: PRATEEK TYAGI 12BSPHH010735

IBS HYDERABAD



A REPORT ON

“STUDY ON FACTORS INFLUENCING CAPABILITY AND USABILITY OF CONSUMER DURABLES-LG BRAND SHOP MOT [MOMENT OF TRUTH] ON CONSUMER BEHAVIOUR “

BY: PRATEEK TYAGI 12BSPHH010735

A Report submitted in partial fulfillment of the requirements of MBA Program of IBS Hyderabad

COMPANY NAME: LG Electronics India Private Limited

Date of Submission: May 24, 2013



TABLE OF CONTENTS

i. AUTHORIZATION…..……............................................................................................... .6

ii. ACKNOWLEDGEMENT ...................................................................................................7

iii. EXECUTIVE SUMMARY .................................................................................................8-9

1. INTRODUCTION ................................................................................................................10

1.1 BACKGROUND ............................................................................................................10

PURPOSE OF MARKETING RESEARCH..............................................................……..11

1.2 OBJECTIVE..........................................................................................................……….12

1.3. METHODOLOGY ....................................................................................................... 12-13

1.4. SCOPE AND LIMITATION ....................................................................................... 13-14

2. INDUSTRY ANALYSIS ..................................................................................................... 15

2.1. OVERVIEW OF CONSUMER DURABLES SECTOR........................................... 15

3. COMPANY ANALYSIS ..................................................................................................... 16

3.1. COMPANY PROFILE ……………………...........................................................................16-20

3.2. HISTORY ......................................................................................................................21-25

4. PROJECT SPECIFIC ANALYSIS .................................................................................... 26

4.1 ABOUT VISUAL MERCHANDISING........................................................................ 26

4.1.1. OBJECTIVE ........................................................................................................27

4.1.2. METHODOLOGY…………………………….………………………....................................... 28-29

4.1.3. ANALYSIS…........................................................................................................ 30-33

4.1.4. FINDINGS ............................................................................................................ 34-36

4.1.5 SUGGESTIONS..................................................................................................... 37-40

4.2 EMPLOYEE SERVICE BEHAVIOUR........................................................................ 41

4.2.1.OBJECTIVE……………....................................................................................... 42

4.2.2.METHODOLOGY………………….………....................................................... .43

4.2.3.ANALYSIS……………………………………….………………................................................... 44-50

4.2.4.FINDINGS……………………………………….…………..........................................................51

4.2.5. SUGGESTIONS ……………………………..................................................................... 52-53

4.3 MEASURING CUSTOMER SATISFACTION...........................................................54-59

4.3.1.OBJECTIVE……………………………………………………..................................................... 54

4.3.2.METHODOLOGY................................................................................................. 60-61



4.3.3.ANALYSIS…………………………….................................................................. 62-69

4.3.4.FINDINGS............................................................................................................ ..70

4.3.5. SUGGESTIONS………………………………………........................................................ .71-73

5. OUTCOME/CONTRIBUTION .......................................................................................... 74

6. LEARNING FROM SIP ...................................................................................................... 75

7. REFERENCES .....................................................................................................................76



LIST OF TABLES

TABLE 1: TABLE FOR USAGE OF VISUAL MERCHANDISING........................................ 30

TABLE 2: CORELATION TABLE................................................................................................49

LIST OF FIGURES

FIGURE 1: FIGURE OF VARIOUS MOMENT OF TRUTH……............................................10

FIGURE 2: FIGURE OF MARKET SHARE OF LG………………......................................... 25

FIGURE 3: FIGURE OF MODEL 1 OF POP COMMUNICATION........................................ 28

FIGURE 4: FIGURE OF MODEL 2 OF POP COMMUNICATION........................................ 28

FIGURE 5: FIGURE OF COMBINED MODEL OF POP COMMUNICATION.................... 33

FIGURE 6: FIGURE OF SERVICE BEHAVIOUR QUALITIES………................................. 43

FIGURE 7: FIGURE OF CUSTOMER SATISFACTION FRAMEWORK............................. 56

FIGURE 8: FIGURE OF NET PROMOTER SCORE…………………………………………..71



AUTHORIZATION

This is to authorize that the project report titled ―Study on factors influencing capability and

usability of Consumers Durables-LG Brand shop MOT [Moment Of Truth] on Consumer

Behaviour‖ is an original Research work done by Mr. Prateek Tyagi, Enrollment Number –

12BSPHH010735, MBA 2012 – 2014, IBS Hyderabad, during his Summer Internship at LG

ELECTRONICS PRIVATE LIMITED,INDIA. This work is submitted in the partial fulfillment

of the requirement of MBA program of IBS Hyderabad.

This work has not been submitted to any other university or Organisation for assessment or

award.

Faculty Guide: Company Guide:

Prof. Satya Prasad Mr. Vishal Giri

Faculty Marketing Manager [Ghaziabad]

IBS Hyderabad LG Electronics, India



ACKNOWLEDGEMENT

It gives me immense pleasure to present this project report on ―Study on factors influencing

capability and usability of Consumers Durables-LG Brand shop MOT [Moment Of Truth] on

Consumer Behaviour‖ carried out at LG ELECTRONICS PRIVATE LIMITED, INDIA in

partial fulfilment of the M.B.A. Program at IBS Hyderabad.

No work can be carried out without the help and guidance of various people. I am happy to take

this opportunity to express gratitude to those who have been helpful to me in completing this

project report.

At the outset I would like to thank my company guide Mr. Vishal Giri, Marketing Manager,

Ghaziabad who allowed me to undertake the project and helped me at every point throughout the

tenure of the project. Mr. Vishal Giri has played a versatile role, by being both a friend and a

mentor. He patiently listened to my difficulties, tried to sort them out and gave me valuable

suggestions and remarks to make my project a more meaningful one. His guidance has made me

learn a lot about the marketing domain. He constantly motivated me to overcome the hurdles and

difficulties in the project. I am grateful for the time he spent on this project out of his busy

schedule.

I would be failing in my duty if I do not express my deep sense of gratitude to Prof. Satya

Prasad, Faculty Guide IBS Hyderabad, without his guidance it would not have been possible for

me to complete this project work.

Lastly I would like to thank my parents, friends, fellow interns and well-wishers who encouraged

me to do this research work and all those who contributed directly or indirectly in completing

this project to whom I am obligated to even though anonymously.

Prateek Tyagi



EXECUTIVE SUMMARY

I Prateek Tyagi, student of IBS HYDERABAD have done my summer internship at LG

Electronics Private Limited, India and prepared the following project ―Study on factors

influencing capability and usability of Consumers Durables-LG Brand shop MOT [Moment Of

Truth] on Consumer Behaviour‖ says the various Moment of Truth that the Customer encounter

when entering into the brand shop .Various Moment of Truth that the customer encounters are

Visual Merchandising or Point of Display over the products, Employee Behaviour with the

Customers and after that Measuring the Customer Satisfaction that Customer get after interacting

with the Moment of truth they encounter.

The main Objective of the given project was to study the impact of MOT [Moment of Truth] on

Customer Buying Behaviour and observing SSE‘s [Shop Sales Executives] Behaviour in dealing

with Customers and also analyzing and measuring the Customer Satisfaction and Experience.

This project basically deals with the Evaluation of Individual Brand shop of LG on the basis of

MOT [Moment Of Truth] and Shop Sales Executives behavioural aspects.

The following project required visiting at the various Brand Shops [8 in number] in Ghaziabad

and Noida and their observing the various activities like how the salesperson behaves with their

Customers, what sort of tactics or skills they employ while dealing with the different customers.

How customers move in the shop, what they think before buying any product, what they want

from the salesman to tell them and finally what role does the Visual Merchandising plays in

providing information to the customers. This in turn gave us a brief overview of how the

company is performing in maintaining the brand image and consumer perception in this segment.

In brief we will be evaluating the extent to which the image of the company, quality of the

product, variants that it offer and value for money that it provides to the customers affects the

purchasing decision of the buyer.

Purpose of this project is to give an actionable approach to making Customer Satisfaction to

work in an Organisation favour to re-cast it as a positive, enabling effect rather than a negative,

revenue stealing one. This project worked out on an approach that provides direction to the

people who are responsible for the Organisation performance improvement, process re-alignment

and assuring ―Outside In‖ thinking at all levels of business. The project also analysed the various

Moment Of Truth‘s or the various touch-points through which the Customers and Organisation

come into contact and what effect that Point Of Contact have on the decision of the Customer.

The project involved sitting at the various Brand Shops of LG in Ghaziabad and Noida and their

observing the effects of the Moments of Truth and measuring how satisfy are the Customers and

after Qualitatively Observation, interpreting the Observations and data 0collected by using

Quantitative Methods.



The Project is all about the combination of 3-Dimensions: The Customers, Insight Teams and

Managers and Employee Taking Actions and the project will aim at to how model for how to

better meet their needs. The findings and observations helped out the company in aligning

customer information with the engaged workforce in creating High impact action plan in

improving Customer experience level and increasing the revenues. Through this better

communication of what Customer is saying helped in highlighting the critical customer action

plans and from the future perspective project will deploy a consistent process for taking actions

and provide the necessary support so that teams know what to do and why to do.

It also focused on Co-relating the MOT [Moment of Truth] score card and SSE‘s behavioural

score and measuring its impact on the Sell-out of Company and Fulfilling Customer satisfaction

and retaining the Industrial Relations.

After the detailed study, ―Effect of Visual Merchandising on Consumer Buying Behaviour‖ was

done and various measures that could improve the shop environment and that could increase the

foot-fall in the shop were suggested. After analyzing the effect of POP communication,

Employee behaviour analysis as the second Moment Of Truth was done. Therefore, all the Shop

sales executives at the Brand Shop of LG were interviewed regarding the various behavioural

questions and their responses were recorded. At the end ―Measuring the customer satisfaction or

customer experience‖ was executed. For this Net Promoter Score was used and it was calculated

and it come out to be 54.4% which is very satisfactory.



INTRODUCTION

BACKGROUND

To undertake marketing effectively, businesses need information – information about customer

wants, market demand, competition, distribution channels etc. This information needs to be

updated regularly because businesses operate in a dynamic environment, characterized by

frequent:

1).Changes in technology – enabling new products and new production processes.

2).Changes in consumer tastes – meaning that the demand for some products will decline,

whilst others will grow more popular.

3).Changes in the product ranges of competitors – the introduction of new rival products or

changes in pricing policies can greatly influence the demand for a product

4).Changes in economic conditions – an improvement or worsening of the economic climate

will have an impact on incomes on a national or regional level. Different products may be

affected differently.

Purpose of Marketing Communication

Marketing Communication can help a business do one or more of the following:

1). Gain a more detailed understanding of consumers’ needs – marketing consumer can help

firms to discover consumers‟ opinions on a huge range of issues, e.g., views on products‟ prices,

packaging, recent advertising campaigns .

2). Reduce the risk of product/business failure – there is no guarantee that any new idea will

be a commercial success, but accurate and up-to-date information on the market can help a

business make informed decisions, hopefully leading to products that consumers want in

sufficient numbers to achieve commercial success.

3). Forecast future trends – marketing communication can not only provide information

regarding the current state of the market but it can also be used to anticipate future

customer needs. Firms can then make the necessary adjustments to their product portfolios and

levels of output in order to remain successful.

Purpose of this project is to give an actionable approach to making Customer Satisfaction to

work in an Organisation favor to re-cast it as a positive, enabling effect rather than a negative,

revenue stealing one. This project will work out an approach that provides direction to the people

who are responsible for the Organisation performance improvement, process re-alignment and

assuring ―Outside In‖ thinking at all levels of business.



Part of value in a company‘s specific product or service comes in the experience created. Well-

trained and experienced employees providing a high quality service to the customers forms an

important aspect of customer experience and earning his loyalty. Above all ―Products are created

in the factory but Brands are created in the mind‖ and creating a brand solely depends on what

experience customer gains while interacting with an Organisation.

Generally, Organisation thinks that they know what their Customers want. They want a

Predictable and Satisfactory experience. They want Organisation to meet their expectations each

and every time they interact. They want the company to do the work and then they want to get on

with their lives. So the question arises why does the customer satisfaction and experience

inconsistency problem exist? If the customer doesn‗t want that and Organisation don‗t want it

either, then where is the disconnect happening? Certainly creating and propagating the problem

is not the company‘s intent. Organisation intent is just the opposite. The problem isn‗t how much

effort company is putting out. Organisation put out a lot of effort in connection with their

customers and in improving the experience they have with them.

The problem is in how an Organisation is trying to improve the customer experience.

Organisations are using the wrong Suggestions, the wrong approach, even the wrong thinking.

How pervasive is this condition? Even the best product and finest service companies are losing

customers everyday for lack of a simple understanding – the impact that Moments of Truth have

on their customers. Everyday customers touch their business and leave dissatisfied. In most cases

it‗s not the product, the price, the selections or even the service. It‗s something far more

insidious, and it‗s taking revenue away from Organisation every single day – but it doesn‗t have

to. It‗s the customer experience and it‗s not what Company think it is nor is it what company

want it to be. In fact, it‘s probably thought that customer experience is solid, cohesive, reliable

and predictable; the truth is that it‘s not. There are some loop-holes and those loop-holes are

called Moments of Truth and they affect customers profoundly. They determine the experience

of the customer and they dictate the degree of consistency or inconsistency of the experience

being delivered. For most Organisations they are a continual drain on resources and the number

one reason for customer attrition.

So ,the project is all about analyzing the various Moment Of Truth‘s or the various touch-points

through which the Customers and Organisation come into contact and what effect that Point Of

Contact have on the decision of the Customer. This project will involve sitting at the various

Brand Shops of LG in Ghaziabad and Noida and their observing the effects of the Moments of

Truth and measuring how satisfy are the Customers and after Qualitatively Observation,

interpreting the Observations and data 0collected by using Quantitative Methods.



Following is a diagram depicting the various Moments Of Truth: Each and Every Customer

Contact is a Moment Of Truth:

FIGURE 1

OBJECTIVE

The main Objective of the given project is to study the impact of MOT [Moment of Truth] on

Customer Buying Behaviour and observing SSE‘s [Shop Sales Executives] Behaviour in dealing

with Customers and also analyzing and measuring the Customer Satisfaction and Experience.

This project basically deals with the Evaluation of Individual Brand shop of LG on the basis of

MOT [Moment Of Truth] and Shop Sales Executives behavioural aspects.

It also focuses on Co-relating the MOT [Moment of Truth] score card and SSE‘s behavioural

score and measuring its impact on the Sell-out of Company and Fulfilling Customer satisfaction

and retaining the Industrial Relations.

METHODOLOGY

1).Project has been divided into two phases. In the first phase the observation and data collection

and feedback to be given on Brand Shop and the second phase will focus on the impact of

feedback, observations, data collected over the sellout of products of the company which is to be

measured.

Management

and Staff

Customer

Service

Repair and

Maintanence

Technical

Support

Sales

Administratio

-n

Visual

Merchandising



2).Project commence by visiting the different Brand Shops of LG in Ghaziabad and Noida region

and observing the Ambience of the shop, Branding [both Internal and External],Visual

Merchandising Correctness and Footfall in the shop.

3).Data Collection starts by Observing and analyzing the various aspects by using the primary

data collection methods which includes Questionnaire regarding the Customer Satisfaction,

Employee Satisfaction, Employee Knowledge Regarding the products and Indirect Oral

Interviews with Employees, Customers and Schedule methods and some real –time Experiments.

4).Besides Primary data collection methods, Secondary collection methods which include

analyzing the past sales data by observing past sales record and MOT log Book.

5).After applying Qualitative Measures data and findings collected will be analysed and

interpreted by using the quantitative Methods for providing the analytical aspect to the findings.

Method include Net Promoter Score [Measure of Customer Loyalty]

SCOPE AND LIMITATION

SCOPE

1).This project helped in finding out the various moment of truth that the customer encounter

during their interaction with the company, hence company can use the findings to improve where

it is lagging.

2).Analysis of the customer responses help in bringing out the areas where the company is doing

very well and also areas in which it needs to be cautious about.

3).Marketing Managers can identify market opportunities and develop targeted promotion plans

for various products sold under different categories.

4).It will also help the Organisation to make an action plan for those shops where Moment Of

Truth quality is not good.

5).It helps to know the strengths and weaknesses of the company and company can involve better

strategies to overcome the weak areas.

6).As this project includes extensive study of various factors influencing the buying decision of

the customer it will also help to rectify those factors where company is lagging behind against their

competitors.

7).New ideas will be suggested to make better marketing strategies to remain leader in the market.



LIMITATIONS

1).Many people might not take part in research study leaving the research with insufficient and

incomplete data. Also, more reliable sources of data than what is included in the report might not

be available thus leading to second best information.

2).The secondary data used pertaining to sales figure of modern format stores would be limited.

3).Responsive bias might also be there due to lack of awareness of the brand.

4).Geographical limitation would also be there.

5).Interviewer judgment is used to fill the questionnaire according to the responses given by

customers.

6).The brand level penetration study is limited because the project is only dealing with only few

products and not the entire range of products available.



INDUSTRY ANALYSIS

COMPANY PROFILE

VISION

Global Top 3 by 2011

Global Top 3 Electronic/Telecommunication Company

GROWTH STRATEGY

―Fast innovation, Fast growth‖

CORE COMPETENCY

―Product leadership, Market leadership, People leadership‖

CORPORATE CULTURE

No excuse, ―we‖ not ―I‖, Fun workplace

SLOGAN

"Life's Good" represents LG's determination to provide delightfully smart products that will

make your life good.

The LG Electronics Life's Good signature consists of the LG logo, seal, and the

slogan, "Life's Good" set in Charlotte sans typeface curved around the LG symbol.

The curving of the slogan reinforces LG's personality and uniqueness. The

consistent usage of this signature clearly establishes the unique identity of the



company and unifies every division and product from LG Electronics acro ss the

globe.

THE SYMBOL

The symbol of LG is the face of future. The letter ―L‖ and ―G‖ in a circle symbolizes world,

future, youth, humanity & technology. LG philosophy is based on humanity. It also represents

LG‘s efforts to keep close relationship with our customers around the world.

The symbol consists of two elements:

1).The logo is LG gray

2).The stylized image of human face in the unique LG red color.

The slogan of LG is ―Life‘s Good‖. It expresses ―Brand‘s Value, Promises, Benefits,

Personality‖.

THE PARTNERSHIP

LG Electronics chooses to promote harmony and build constructively on a labor-management

relationship rather than an employee-employer relationship. This illustrates that management and

workers are not in a vertical relationship, but in a horizontal one.

This culture is necessary for LG Electronics as it strives to become one of the world's top

companies. Such a relationship is transformed into a value-creation relationship whereby both

parties endeavor to address mutual problems and create new values together.

STRATEGIC ALLIANCE

LG Electronics is making technical advances and identifying business opportunities through

various associative relationships with some of the world's leading companies. LG Electronics is

striving to become number one in the world by mingling in various business and technological

fields and making strategic alliances with world famous companies. "Strategic association

between corporations," in which companies with different infrastructures cooperate in the fast-

developing 21st century business field, is of key significance in terms of strengthening the

existing industry and creating a new one.



HISTORY OF COMPANY

The company was originally established in 1958 as Gold Star, producing radios, TVs,

refrigerators, washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the

abbreviation of LG was derived. The current "Life's good" slogan is abbreviated as LG. Before

the corporate name change to LG, household products were sold under the brand name of Lucky,

while electronic products were sold under the brand name of Gold Star. The Gold Star brand is

still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United

States.

GLOBAL OPERATIONS

LG Electronics is playing an active role in the world market with its assertive global business

policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around

82,000 executive and employees.

LG GROUP

1). LG. LCD

2). LG Chemical

3). LG Telecom

4). LG Power com

5). LG Twins

BUSINESS AREAS AND MAIN PRODUCTS

1).CDMA Handsets

2).GSM Handsets

3).3G Handsets

4).Cellular Phones

DIGITAL APPLIANCE

1). Air Conditioners

2). Refrigerators

http://en.wikipedia.org/wiki/LG.Philips_LCD

http://en.wikipedia.org/wiki/LG_Chemical

http://en.wikipedia.org/wiki/LG_Telecom

http://en.wikipedia.org/wiki/LG_Powercom

http://en.wikipedia.org/wiki/LG_Twins

http://en.wikipedia.org/wiki/Air_conditioning

http://en.wikipedia.org/wiki/Refrigerator



3). Microwave Ovens

4). Washing Machines

5). Vacuum Cleaners

6). Home Net

7). Compressors for Air Conditioners and Refrigerators

DIGITAL DISPLAY

1). Plasma TV

2). LCD TVs

3). Micro Display Panel TV

4). Monitors

5). PDP Modules

6). OLED Panels

7). USB Memory

8). Flat Panel Computer Monitors

DIGITAL MEDIA

1). Home Theater Systems

2). DVD Recorders

3). Super Multi DVD Rewriters

4). CD±RW

5). Notebook PC

6). Desktop PC

7). PDAs

8). PDA Phones,

9) MP3 Players,

http://en.wikipedia.org/wiki/Microwave_oven

http://en.wikipedia.org/wiki/Washing_machine

http://en.wikipedia.org/wiki/Vacuum_cleaner

http://en.wikipedia.org/wiki/Compressors

http://en.wikipedia.org/wiki/Liquid_crystal_display_television

http://en.wikipedia.org/wiki/Computer_Monitors

http://en.wikipedia.org/wiki/Home_cinema

http://en.wikipedia.org/wiki/DVD_recorder

http://en.wikipedia.org/wiki/Digital_audio_player



LG Electronics will do its best to create new products and services with an open mind, while

developing new technologies and business fields through various associations with some of the

world's most successful companies. In Feb. 2007 LG Electronics and Yahoo formed a strategic

alliance. Yahoo mobile services will be available from LG mobile. This service is targeting 10

million LG mobile phones in over 70 countries. In Mar. 2007 LG Electronics and Google formed

a strategic alliance. Both companies will work together to release, market, and offer LG mobile

phones with Google services like search engine, map, email, and blogs.

THE INTERNAL CULTURE OF LG

LG practices four cultures:

1).Learning Culture

2).Boundary less Environment

3).A Carrier

4).Growth

According to LG, the Learning Culture continuously helps the employee to learn more and more

to develop the habit of continuous learning.

Boundary less Environment means that there is no difference between the levels of employees.

There is transparency between the work and mutual understanding between all the employees.

Carrier is highly growing in LG and one who is the employee can develop their carrier largely. A

new comer will feel fully comfortable in the company and for a new comer the company is very

helpful in the overall growth of personality.

Growth in LG is very high for those who are in the company and for those who want to join in

LG. The company is growing with fast innovation and the Blue Ocean strategy is one of the

examples of growth.

MISSION

The mission of LG is to provide the customers with utmost satisfaction through leadership. The

fundamental policy of development is to secure product leadership that the Customers may have

the utmost satisfaction.

PRODUCT LEADERSHIP

LG is focusing on six development areas to become the product leader.



1). New Machine

2). Reliability

3). Conventional Installation

4). Environment Friendly Product

5). Low Noise & Vibration

6). Energy Saving

QUALITY INNOVATION

The policy of quality assurance is to provide customers with utmost satisfaction by supplying

zero defects.

LG proceeds in a hierarchal manner. It is named as ―LG WAY‖.

From top to bottom:

No.1 LG – is the VISION

―Jeong-Do‖ Management is LG‘s unique application to ethics. LG will succeed through fair

management practices and constantly developing our business skill.

A) Honest with our customer

b) Providing great values to customer through constant innovation & and development.

c) Equal opportunities

d) Equal Treatment

Management Principle: Creating value for customer



LG INDIA

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). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998,

with an investment of Rs 500 Crores. LG corporate office is located at Plot no.51, Udyog Vihar,

Kasna Road, Greater Noida, India. This facility manufactured Color Televisions, Washing

Machines, Air-Conditioners and Microwave Ovens. Company is setting up a chain of exclusive

premium showrooms. LG plans to launch 60 premium Brand Shoppes by the end of the first

quarter of this year. At present, LG has a total of 83 LG stores across the country, of which 45

are shoppes and 38 are exclusive stores. Brand shops will be placed in the premium segment and

the target audience will comprise buyers interested in premium and high end products.

LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more

interactive environment and additional lifestyle orientation on display so that the customer can

actually experience the LG products in his or her own home settings.

LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is planning

a brand new image. To attract inspirational and young consumers across India, company will roll

out a new marketing strategy. The exercise will cost the company Rs 360 Cr.

LG Electronics India is the fastest growing company in the consumer electronics, home

appliances, and computer peripherals industry today. LG Electronics is continually providing,

superior technology products & value for money to more than 50 lakhs households in India

Prominent consumer electronic company, LG Electronics Inc. has said that it expects the sale of

its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing director of LG

Electronics India has said that the company has earmarked 4.8 billion rupees for investment

purpose in India this year. The said money will be used to market as well as manufacture new

products.

LG Electronics, which is originally a South Korean Company with branch in India, informed that

its sales of GSM mobile phones, color televisions, air conditioners and other household goods in

the Indian market was to the tune of 95 billion rupees ($2.4 billion) in 2007. As per Shin's

estimate, the sales in 2008 would be around 110 billion rupees.

In order to achieve its target, Shin said LG Electronics will concentrate on catering to the high-

end consumer market which will help boost sales this year. India churns out six (6) per cent of

LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries.



ANALYSIS OF CONSUMER DURABLES INDUSTRY

CONSUMER DURABLES

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej

and Voltas were the major players in the consumer durables market, accounting for no less than

90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung,

Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major

share of the consumer durables market.

Consumer durables market is expected to grow at 10-15% in 2012-2013. It is growing very fast

because of rise in living standards, easy access to consumer finance, and wide range of choice,

as many foreign players are entering in the market

With the increase in income levels, easy availability of finance, increase in consumer

awareness, and introduction of new models, the demand for consumer durables has increased

significantly. Products like washing machines, air conditioners, microwave ovens, color

televisions (CTVs) are no longer considered luxury items. However, there are still very few

players in categories like vacuum cleaners, and dishwashers

Consumer durables sector is characterized by the emergence of MNCs, exchange offers,

discounts, and intense competition. The market share of MNCs in consumer durables sector is

65%. MNC's major target is the growing middle class of India. MNCs offer superior technology

to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local

market, their well-acknowledged brands, and hold over wide distribution network. However, the

penetration level of the consumer durables is still low in India.

CLASSIFICATION OF CONSUMER DURABLES

Consumer electronics include DVD, home theatre, music player, color television (CTVs),

cameras, camcorders, portable audio etc.

1).White goods include dishwashers, air conditioners, heaters, washing machines, refrigerators,

vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances,

Tumble dryer, personal care product etc.

2).Mould luggage which include plastics.

3).Clocks and watches.

4).Mobile phones



SCOPE

1).In term of purchasing power parity, India is the 4th largest economy in the world and

overtake Japan in the near future become the 3rd largest.

2).Indian consumer durable market is expected to reach $400 billion by on 2013.

3).India has the youngest population amongst the major countries. There are lot of people in the

different income categories nearly the two third population is below the age of 35 and nearly

50% is below 25.

4).There is 56 million people in middle class, who are earning us$4,400-US$21,800 a year. And

there are 6 million rich household in India.

5).The upper-middle and high-income household in urban areas are expected to grew to 38.2

million in 2013 as against 14.6 million in 2000.

OPPORTUNITY

1).In India the penetration level of white goods is lower as compared to other developing

countries.

2).Unexploited rural market.

3).Rapid urbanization.

4).Increase in income level, i.e. increase in purchasing power of consumers.

5).Easy availability of finance.

THREATS

1).Higher import duties on row materials.

2).Cheap imports from Singapore, China and from other Asian countries.



BRANDS IN CONSUMER DURABLE SECTOR

MNCs NATIONAL REGIONAL

LG ONIDA CROWN

SAMSUNG VIDEOCON SALORA

HYUNDAI BPL T-SERIES

TCL GODREJ WESTON

HAIER VOLTAS BELTAK

PHILIPS IFB OSKAR

PANASONIC

SHARP

HITACHI

SANSUI

WHIRLPOOL

ELECTROLUX

Consumer durables sector is characterized by the emergence of MNCs, exchange offers,

discounts, and intense competition. The market share of MNCs in consumer durables sector is

65%. MNC's major target is the growing middle class of India.

MNCs offer superior technology to customers are LG, SAMSUNG the two Korean companies

has been maintaining the lead in the industries with LG being leader in almost all the categories.

The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent, is investing Rs

360 Cr on brand-building and other marketing initiatives and around Rs 140 Cr on research and

development, besides launching new platforms in information technology and related areas.



MARKET SHARE OF LG IN CONSUMER DURABLES

FIGURE 2



PROJECT SPECIFIC ANALYSIS

Visual Merchandising or Point Of Purchase Communication

About:

Point of Purchase (POP) is the place where a customer is about to buy the product. This is the

crucial point where the exchange takes place. It offers the last chance to remind or attract

customers.POP acts as a Virtual Salesperson. It has been found that a high level of brand

awareness does not always translate into sales. Shoppers do take into consideration the

information they acquire in shops, in addition to relying on out of shop communication. POP

communication also makes shoppers to stay at the outlet for a longer duration leading to

increased spending. It explores the phenomenon with the help of using two main variables:

A).Level of information search

B).Shop benefits sought.

Visual merchandising is the art and science of displaying and presenting product on the Sales

floor and in the windows with the purpose to increase store traffic and sales volume. Along with

store design, it is a key component of store‘s unique identity and best form of advertising.

Through them organisation are able to communicate to customers their brand‘s identity, what is

unique and special about their offering and what makes their shop better than other stores. Like

in advertising, the message has to be clear and consistent because if it is not, companies will end

up attracting the wrong customers or deliver the wrong product and experience to them. If store

looks and feels high end but if products are not than it might discourage mid to low-income level

target customers from checking the shop out because they associate the expensive look with high

price merchandise. At the same time, the customers that will attract, the more affluent ones, will

most likely not buy because selection doesn‘t meet their expectations for pricier, more luxurious

products. When deciding how to present product in store, always remember that visual

merchandising is an extension of store‘s customer service. That is why when planning for r

store‘s look and feel and product presentation, there is the need to have a proper effective visual

merchandising.



OBJECTIVE

In spite of a considerable expenditure on point of purchase material by companies, there is a lack

of an established method of measuring the effectiveness of its communication. The following

project is an attempt to define and measure the extent of usage of POP by consumers while

shopping. This project is aimed at understanding the phenomenon and developing a method to

measure the usage of POP communication by consumer while shopping in the shop.



METHODOLOGY POP communication would depend on:

(a).Extent of information required by the shoppers.

(b).Type of shop visited.

Major values sought by shoppers are convenience, merchandise variety, price, service and

ambience. The shops were classified as Convenience, Variety [Modern Trade] and Experience.

The Project has been primarily carried out to find out the effects of the level of information

search and the shop benefit on the usage of POP communication in the shopping process. It also

explored the role of shopping involvement on usage of POP communications.

For measuring the effectiveness of POP Communication scales for usage of POP communication

and shopping involvement were developed. Questionnaires were prepared which include the

questions which helped in understanding the motivations of customers with regard to shopping.

One experiment was performed which involved watching out the various customers in the shop

and then asking questions about their experience inside the shop.

Model for POP Communication

MODEL 1:

FIGURE 3

MODEL 2:

FIGURE 4

Level of Information Search

Shop Benefit

Usage of POP

Communication

Level of Information Search

Shop Benefit

Involvement with

Shopping



HYPOTHESIS DEVELOPMENT

Visual Merchandising Communication

H0: Visual Merchandising Communications would vary with extent of Information Search at the

store.

H1: Visual Merchandising Communications would vary with the type of Benefit offered by the

store.

H2: Information Search and Store Benefit together will have an effect on Visual Merchandising

Communication

Scale for Measuring Views of Customers towards Visual Merchandising

Communication:

For measuring the views of Customer towards the effect of Visual Merchandising a

questionnaire consisted of 19 items was prepared. Questionnaire consisted of two options Yes

and No. 50 respondents intercepted outside various stores and some of the responses were taken

online. The scale showed Cronbach alpha[It tells about the reliability and consistency] score of

0.75. Total valid sample of 50 were used. The KMO measure of sampling adequacy indicated a

value of 0.91 and was found significant at p <0.000.

Testing the Hypothesis

In this phase respondents were first asked to give their opinions on the statements defining scale

of Visual Merchandising Communications. The experiment was designed as a within sample

factorial design. A Sample size of 50 was taken and they have to give their response back on the

questions being asked. Based upon the choices which comprises of Yes or No, Total of 950

Responses were recorded. Of the 950 responses 600 responses were Yes and 450 responses were

No. Hence Variance was calculated for each question separately. Putting the value one for Yes

and zero for No After that Cronbach alpha was calculated which comes out to be .75 and Top

Ten questions which received most number of Yes, were taken out the 19.

.



ANALYSIS

TEST FOR USAGE OF VISUAL MERCHANDISING COMMUNICATION

EFFECT VALUE F DEGREE

OF

FREEDOM

SIGNIFICANCE

1).INFORMATION

SEARCH

.301 1 09.74 2 .000

2).STORE

EXPERIENCE

.402 71.42 2 .000

3).INFORMATION

SEARCH*STORE

EXPERIENCE

.125 17.91 4 .000

TABLE 1

The effect of Information Search and Store Benefit on POP Communications had been studied in

this project:

1). Based on the Wilk‘s Lambda and F scores, it was found that the effect of store benefit and

information search on the usage of Visual Merchandising communication was significant.

2). Also there was a significant interaction effect between store benefit and information search.

Based on the analysis tests results for information search with F (2, 98) = 109.974 the association

was found to be significant at p <.001. The hypothesis that POP communications changes with

information search at the store was supported.

3).Similarly, the value for store benefit F (2, 98) = 71.423 was found significant at p <.001

supporting the hypothesis that the usage POP communications differs across various types of

store benefit was supported.

4).The combined effect of Information Search and Store Benefit with F (4, 96) = 17.907 was also

found to be significant at p <.001. Information search and store benefit seem to have a combined

effect on POP communications usage.

5).We infer that usage of Visual Merchandising communication actually differed across three

levels of information search .The usage of POP communications seems to differ across the three

levels of store benefit i.e. convenience, variety, experience. Thus a significant difference in usage

of POP communications across various different shopping scenarios was found.



Classification of Stores Based on Visual Merchandising Communication

Usage by Shoppers

The study in the following project has brought out that the usage of POP Communication is a

function of several variables. Different combinations of these variables create different shopping

situation and consumers tend to differ in their information usage behaviour. This leads to

classifying stores based on the information requirements of the shopper. The nine such scenarios

are described below:

1). Low Involvement Shopping at Convenient Shops:

In the proposed Model, the first box depicts a buying situation where the involvement of the

shopper is very low and the effort they expend is also low. The shopper comes to the shop asking

for the product by the category name. The choice of shop is based on the convenience of

location. The POP communication in such a situation is very helpful in affecting brand switch.

Packaging would be the most potential communication tool. A prominent display of the product

would give the ‗touch and feel‘ confidence. The Brand Shop would keep the product at eye level

and near the counter. Posters, danglers and attractive packaging would be the POP Suggestions

to grab the attention of shoppers.

2). Low Involvement Shopping at Variety Shops [Modern Trade]

The customer wants to have more variety and thus looks for a shop that provides more options

and is also conveniently located. In this situation the shopper asks for a brand but does not mind

switching if the preferred brand is not available. The idea is to buy from the same shop and not to

take the trouble to go to other shops. Since involvement is low, it is a challenge for the sales-man

to differentiate sufficiently to attract shopper‘s attention. Shop location, better frontage and glow

signboards, kiosks and window dressing play a major role in attracting shoppers and inducing

them to come inside the shop.

3). Low Involvement Shopping at Experience Shops

In this situation, the shopper is shop-loyal and due to low involvement with the product he does

not want to put any extra effort to buy a brand. Such shoppers are more prone to unplanned

buying and with little persuasion will buy more products. The shoppers in such shops enjoy the

benefits such as shop association, easy purchase process, familiarity with the place and friendly

sales people. The Brand shop owner should make shoppers to try more products. The shopper

has to be given information about new products through sales people and interactive kiosks to

effectively communicate about shop brands, new schemes and bargains. The owner should try to

retain the shopper for the longest possible time for increased purchases.



4). Medium Involvement Shopping at Convenient Shops

In this case, the shopper is more involved than in the previous case, but would prefer to buy from

a shop that is conveniently located. The shopper wants best use of shopping time and effort. Thus

shop owner one has to help the shopper choose a brand through eye-catching posters and

attractive packaging. Apart from the convenient location of the shop, the owner must plan the

product collection as per the requirements of local customers.

5). Medium Involvement Shopping at Variety Shops [Modern Trade]

The shopper has a medium level of involvement in buying and is looking for options in terms of

benefits derived from the shop. The basic behaviour is variety in shopping. Shop location is of

importance and so is the external appearance of the shop. Apart from that, the owner has to make

sure that the shopper is engaged. The shopper would prefer a brand that offers a better bargain.

Since the shopper is in a comparison mode any communication in this line such as leaflets that

provide necessary information will be sought. The challenge is to get the mind as well as wallet

share by providing on tangible benefits such as schemes and price discounts. Category

management is an important function in such shops.

6). Medium Involvement Shopping at Experience Shops

In this case, the shopper has already decided upon the shop and would aim to seek variety within

the chosen shop. The communication challenge is to provide the required information and reduce

confusion by making the buying process more personal and involving. The shopper will spend

more time in the shop. Shopping in such cases is a planned process. This provides the owner an

opportunity to push his products. The strategy here is to offer better service and provide add-on

intangible benefits.

7). High Involvement Shopping at Convenient Shops

In this type of shopping, the shopper is seeking a particular brand and is also ready to put more

effort to buy it. A shop that is conveniently located and stocks the required product will gain

more visit of such shoppers. Due to easy availability and high visibility, the communication at

the shop reinforces the shopper‘s belief in the brand and enhances brand value.

8). High Involvement Shopping at Variety Shops

Shoppers visiting such shops have already decided on the brand that they wish to buy. However,

they would like to reassure themselves by collecting information about competing brands. Thus

the retailer has to provide information for comparison and let the shopper re-evaluate the

decision. In this case, if the shopper gets more value for the same price, he will switch; otherwise

he will stick to the original brand choice, even when other brands are offering the same features



at a lower price. The strategy would be to provide tangible information to project strengths

through the salesperson, product demonstrations, information brochures and interactive kiosks.

Shops dealing in premium cosmetics, high end durable goods and lifestyle shops dealing in

branded products would come in this category.

9). High Involvement Shopping at Experience Shops

Here, both the shop and brand are pre-decided and there is high loyalty towards them. The

shopper prefers shops that give the best identification with the self-image of the shopper.

Exclusive branded showrooms would fall in this category. Here the retailer has to project the

shop as a destination. Shopping at such shops has greater entertainment and social value. The

communication challenge would be to make shopping more enjoyable and memorable. The

retailer should give personal attention to shoppers and should know the likes and dislikes of an

individual shopper. Atmospherics, spatial visual and merchandising should be used to induce

longer stays by shoppers.

Combined Proposed Model for Visual Merchandising Communication:

FIGURE 5

Level of Information

Search

Usage of POP

Communication

Shopping Involvement

Shop Format



FINDINGS

Findings from the project are as follows:

1).Customers did not seem to use much POP communication while making purchase decisions at

the shop.

2).The extent of the use of POP communication is different for different format of the shop.

3).With increase in the frequency of visits to the shop, the use of POP decreased and frequent

buyers did not find POP helpful in their buying decisions while occasional buyers and inquirers

found POP helpful. First timers to the shop relied more on the shop sales executive for their

information search.

4).Visual Merchandising tends to affect unplanned purchase more as compared to planned

purchase.



Statements for Measuring the Usage of POP Communication

Initial Statements – POP Communication

1. POP materials in the shop were informative.

2. POP materials in the shop attracted my attention.

3. POP materials in the shop reminded me of buying something that I did not plan.

4. The displays were not very well arranged.

5. Displays in the shop created clutter.

6. While passing though the product I got information about a product.

7. The merchandise display at the shop made me feel the benefit of its usage.

8. The in‐shop display at the shop helped me in my final decision.

9. The merchandise display at the shop provided me with more choice.

10. In‐shop display at the shop facilitated my decision to buy.

11. I will re‐visit the shop because it has attractive merchandise displays.

12. The merchandise display at the shop has made me buy unnecessary things.

13. The decorative display of the merchandise has made the product expensive.

14. The merchandise display made me switch from one brand to another.

15. The display in the shop made me spend more time in the shop.

16. I like to come to this shop because of its looks and display.

17. I always check for new information provided by the displays at the shop.

18. I generally buy more quantity of product due to the good display.

19. One of important criteria for selection of shop to buy is its looks and ambience.



Final Statements

1). POP display made me buy more quantity of product.

2). POP display and ambience made me select this shop.

3). POP display in the shop was informative.

4). POP display in the shop attracted my attention.

5). POP display in the shop reminded me of buying something I did not plan

6). POP display at the shop made me feel the benefit of a product‘s usage.

7). POP display at the shop has made me buy unnecessary things.

8). POP display of has made the merchandise look expensive

9).POP display made me switch from one brand to another.

10). POP display made me aware of a particular product while passing through the

Product



VISUAL MERCHANDISING COMMUNICATION

Purpose, Challenge, Strategy and Suggestions

Shop Benefit:

1).Convenience

Information Search: Low

Purpose: Minimize idle time

Communication Challenge: Grabbing attention

Strategy: a).Immediate sighting

b).Touch and feel

Suggestions: a).Eye catching Posters

b).Danglers

c).Attractive packaging

2).Variety [Modern Trade]


Purpose: Minimize shop search

Communication Challenge: Attract shopper to the shop

Strategy: Differentiate from similar shops.

Suggestions: a). Better frontage

b). Glow sign boards

c). Better lighting inside the shop

d). Kiosks

3).Experience:


Purpose: Win back shop loyalty

Communication Challenge: To build one to one relationship with the shopper

Strategy: a).Personalized attention

b). Induce unplanned purchase



Suggestions: a).Friendly and suggestive sales person

b) Display near the waiting line

c). Interactive kiosks

SHOP BENEFIT

1). Convenience

Information Search: High

Purpose: Enhance Brand Sell out

Communication Challenge: Reinforce Brand Image

Strategy: Integrate with main communication

Suggestions: a). Large and creative displays

b).Attractive packaging

c) Window Displays



Purpose: Allow Comparison

Communication Challenge: To provide better communication for Competition

Strategy: Provide tangible information to project strengths

Suggestions: a). Use the salesperson

b). Product Demonstrations

c) Information brochures

d).Interactive Kiosks

3).Experience


Purpose: Make the shop as a Destination

Communication Challenge: Making shopping enjoyable and memorable

Strategy: a). Personalized Attention

b). Inducing longer stay



Suggestions: a). Ambience

b). Space

c). Visual Merchandising

d). Interactive Kiosks

SHOP BENEFIT:

1). Convenience

Involvement: Medium

Purpose: Optimization of time and effort

Communication Challenge: Help choose the product

Strategy: a). Provide information about various products of the brand

b). Touch and feel

Suggestions: a). Eye‐catching posters and danglers

b). Attractive packaging

c). Display at eye level or on the counter

d). Testing samples


Involvement: Medium

Purpose: Provide limited choices

Communication Challenge: How to get shopper‘s mind

Strategy: a). Focus on own strengths

b) Offer schemes

c). Bundle offers

Suggestions: a).Provide comparison leaflets highlighting product features prominently

b). Price discounts

c). Posters/banners offering schemes.

3).Experience

Involvement: Medium



Purpose: Induce shopper to indulge

Communication Challenge: Make buying more personal and involving

Strategy: a). Offer better services

b). Provide intangible benefits

Suggestions: a). Better show room management

b). Put impulse products near cash counters

c). Put seating near waiting line

d). Special attention to ladies and children

e). TV for engaging shoppers



EMPLOYEE SERVICE BEHAVIOUR

About While few scholars debate the importance of doing things to improve the quality of the buyer–

seller relationship, little is known about what salespeople can do after the point of the initial sale

to enhance customer satisfaction and trust. On the basis of exploratory study which comprises of

interviews across professional selling people and asking the customers about their views about

their interaction with the sales-man, following were the set of behaviours, referred to here as

―salesperson service behaviours.‖ Using data gathered from 100 customers, the effect of these

behaviours on customer satisfaction and trust can be analysed. The results of the study indicate

that these salesperson service behaviours are important in building trust and customer

satisfaction, which in turn lead to increases in customer share of market.

Service Quality in today‘s competitive business environment, salespeople is expected to make

sales targets and build long-term, profitable business relationships. Thus, relational selling means

building strong relationship which should be long lasting is important. Relationship selling takes

place with the primary goal of securing, building, and maintaining long-term relationships with

profitable customers. Managers who use outcome-based control leave salespeople to achieve

results using their own strategies without particular regard to how their salespeople achieve the

results while in case of behaviour-based control requires managers to be more active in

monitoring and directing the operations of their sales force .Without identifying which

salesperson service behaviours (SSBs) are important , sales managers cannot guide and direct

their salespeople, and salespeople are left with little idea of how to behave.



OBJECTIVE Objective of the following study is to do two things: First, through verbal interviews with shop

sales executives at LG Brand Shop and asking the views of customers by giving them the

questionnaire and also contacting with salespeople from other brands, this study attempts to

identify the salesperson behaviours that both salespeople and customers seems to be most crucial

when servicing customers in buyer–seller exchanges.

Secondly, findings from the study in the relational selling, relationship marketing, and consumer

service quality develop a comprehensive framework that demonstrates how engaging in these

SSBs enables salespeople to improve relationship quality. A primary goal of this research is to

address what constitutes the relevant set of SSB‘s for SSE‘s.



METHODOLOGY

In the current context, the term ―service behaviours‖ does not refer to behaviours that sales

people employ to close initial sales but rather the behaviours that salespeople engage in after the

point of the initial sale. Such behaviours are ongoing and are aimed at nurturing and developing

the exchange relationship.

To determine which SSBs buyers and sellers consider most relevant when servicing a customer

in buyer–seller exchanges, as a first step, I reviewed the literature on relational selling, service

quality, and relationship marketing. Next, I performed a series of qualitative verbal interviews

with salesperson. This approach integrated detailed literature search, both within and outside the

field of marketing and sales, with qualitative information gathering via interviews and

behavioural questionnaires.

Interviews with buyers and sellers across several LG Brand Shops consistently indicate the

importance of five SSBs:

1).Diligence

2).Information communication

3).Inducements

4).Empathy

5).Sportsmanship.

By examining the effect of SSB‘s in a competitive context, this study provides insight into how

customers truly evaluate salespeople and make related buying decisions.

Model of the effect of salesperson service behaviours on relationship quality and share of

Customer and loyalty: FIGURE 6

SALESMAN SERVICE BEHAVIOUR RELATIONSHIP BUILDING

DILIGENCE

IINFORMATION

INDUCEMENT

SATISFACTION

EMPATHY

SPORTSMAN

SHIP

TRUST

CUSTOMER SHARE AND

LOYALTY



ANALYSIS

Qualitative analysis

To ensure that measures adopted are satisfactory and reflect the full scope of SSBs, I, began the

study in the following way:

1).I conducted an initial round of informal verbal interviews with salespeople and customers.

2).Upon contacting with 20 SSE‘s from different brand shops, I began the interviews by having

sales person freely discussing the different types of Service Sales Behaviours they employed.

Each interview provided a general list of service behaviours, and then I asked them to speak

more extensively about which of these behaviours they considered most important.

3).Because our eventual sampling frame for this research was consumer durables sales, I spoke

with around 20 sales people of this sector.

4).I also talked to some customers and gave them a set of Behavioural questionnaire which

consist of the set of five behavioural qualities that sales person should possess. 50 customer

responses were taken into account.

5).In total, 72 respondents participated in the interview, which generated a good amount of

information. The semi structured interviews lasted 20 minutes on average. All interviews and

discussions were written down and subjected to further analysis.

6).Although all respondents were interview on a one-to-one basis, interview expressed

remarkable consistency in their responses. Respondents revealed that several service behaviours

are particularly important and they should be adopted by each and every salesperson.

7).Using available theoretical, classification of these behaviours, was done into five specific

categories of behaviours that appeared consistently:

1).Diligence

2).Information Communication

3).Inducements

4).Empathy

5).Sportsmanship.

A).DILIGENCE

Diligence, as a composite of two types of behaviour: responsiveness and reliability. Interview

revealed that in today’s hypercompetitive business environment; sales representatives must

provide their service in a timely manner for customers to consider it dependable and accurate.



RESULT Results of interviews revealed that SSE‘s that were diligent demonstrate both reliability and

responsiveness include returning phone calls, following up on commitments, fulfilling customer

requests, and remaining available when needed.

B).INFORMATION COMMUNICATION

Information communication is regularly relaying product information to the customer in a clear

and concise manner. It includes providing updated information on products like training on new

applications and product usage, customizing presentations to demonstrate particular points and

product claims, and continually telling a clear case for the product by drawing comparisons

between it and competitive offerings.

RESULT

Respondents indicated that one of the most important components of providing salesperson

services is communicating information, and customers agreed that it must provide the entire sales

process and not merely stop when they begin purchasing.

C).INDUCEMENTS

Inducements can be defined as a behaviour aimed at personalizing the relationship with a

customer .Respondents suggested that inducements include remembering and recognizing

personal events, providing lunch, giving gifts at holiday time, and doing special favors for the

customer.

RESULT

Responses from the customers suggested that such service behaviours provide an incentive, or an

inducement, for maintaining the relationship with the salesperson. Customers revealed that such

inducements ―brighten their day‖ and can ―differentiate‖ one salesperson from another.

D).EMPATHY

Empathy can be defined as a salesperson‘s demonstration of interest and concern for the welfare

of the customer. Empathetic behaviours include inquiring about matters that are personally

relevant to the customer, offering support and encouragement when others are having

difficulties, and offering help when others encounter problems.

RESULT

During interviews, salespeople consistently insisted that it is important to demonstrate that they

care for their customers and ―feel their pain.‖ Respondents repeated that salespeople must

demonstrate a strong willingness to help customers and make an effort to understand them.



E).SPORTSMANSHIP

Sportsmanship can be defined as a salesperson‘s willingness to tolerate less-than-ideal

circumstances without demonstrating negativism. In the context of the customer relationship,

sportsmanship means demonstrating good social judgment and professionalism during client

interactions. It includes waiting patiently to meet with the customer, accepting setbacks in a

good-natured manner, and not speaking badly about competing firms or sales representatives.

RESULT

Qualitative interviews suggest that it is just as important for salespeople to employ

sportsmanship behaviours with customers and fellow sales person also

These five categories of behaviours are important because they help nurture the customer

relationship. Both the relationship selling and the relationship marketing literature streams

emphasize the importance of developing and tending to the exchange relationship and suggest

that trust and satisfaction are important components in assessing the quality of the buyer–seller

exchange.

RELATIONSHIP QUALITY

The quality of the exchange relationship can be assessed in terms of the buyer‘s trust in the

salesperson and the satisfaction he or she has with the exchange. Trust represents a willingness to

rely on an exchange one has confidence. Findings suggest that trust is associated with buyer

perceptions of higher relationship quality and increased customer share.

Several studies using the Consumer Durables as a sampling frame use share of customer as an

outcome measure. Here it is used to represent the percentage of a customer‘s total purchases in a

specific product category filled by a particular salesperson‘s product.



QUANTITATIVE ANALYSIS

Hypothesis Development Salesperson service behaviour is important in nurturing the buyer–seller relationship, hence this

study focuses that each salesperson service behaviour affects relationship quality. Some of these

behaviours (diligence, information communication, and inducements) directly affect satisfaction,

while others (empathy and sportsmanship) directly affect trust.

Hypothesis 1

Salesperson diligence has a positive effect on overall satisfaction.

Hypothesis 2

Information communication has a positive effect on overall satisfaction.

Hypothesis 3

Inducements have a positive effect on overall satisfaction

Hypothesis 4

Empathy has a positive effect on buyer trust in the salesperson.

Hypothesis 5

Sportsmanship has a positive effect on buyer trust in the salesperson.

Hypothesis 6

Overall satisfaction has a positive effect on buyer trust in the salesperson.

Hypothesis 7

Customer satisfaction has a positive effect on share of customer.

Hypothesis 8

Trust in the salesperson has a positive effect on share of customer.

Hypothesis Testing

The next step was to test the hypothesis. The results showed that the hypothesized model fit the

data well and all significant relationships were in the hypothesized direction, providing evidence

for the validity. Substantial proportions of variance of the criterion variables were accounted for

by the hypothesized influences when equations were tested it estimated that the information, for

trust and satisfaction did not change significantly. Seven of the eight hypothesized relationships

were accepted. Diligence, Information Communication and inducements were significantly

related to satisfaction.



Materials and Methods We have sales representatives in the consumer durables industry. There are several reasons for

our sample choice:

1).First, the consumer durables industry provides an ideal setting for examining the buyer–seller

exchange. It is possible to obtain the information about satisfaction of consumers in this industry.

2).A final advantage to examining salespeople in this particular context is that the consumer

durables category is extremely competitive. Although branded products compete with one

another in this category, they are generally considered highly substitutable .This likely leads to

salespeople having a significant influence on the prescribing patterns of the consumers, in

contrast to a situation in which the products are different.

Measures 1).To develop the measures used in this study review of the relevant literature on service quality,

customer contact service, and relationship marketing was done. Adaptation of a measure for trust

in the salesperson from a scale was performed. Development of the measures for assessing

several salesperson service quality components like diligence, information communication, and

inducements was also performed.

2).Thus in addition to assisting in the development of the salesperson service behaviour

dimensions, our qualitative interviews helped us refine our measures. On the basis of these

interviews, all resulting scales were seven-point scales, labeled by strongly disagree (1) and

strongly agree (7).

3).This include an eight-item scale for diligence, four-item scales for both information

communication and inducements, a three-item scale for empathy, and a five-item scale for

sportsmanship. For customer satisfaction, a two-item measure to assess overall satisfaction with

the salesperson and the salesperson‘s company was used.

4).Since data was collected using a single questionnaire from customers, the opportunity to

examine the relative effect of sales representative ratings of the dimensions of sales service

quality diligence, information communication, inducements, empathy, and sportsmanship and

the relative effect of ratings of relationship quality trust and satisfaction on share of customer

was available.

5).The ratings of the competitors in the model was not done but hypothetically it can be done by

subtracting the average rating of the competitors on the service quality item from the rating of

the focal[LG] company. For example, if a customer rated the focal[LG] representative as a 4 on a

scale item for responsiveness and if the two competitors received ratings of 2 and 4 on the same



item, the adjusted score for the representative on that responsiveness item would be equal to 4 –

[(2+ 4)/2)] or +1.

6).By ignoring competitor ratings, the following study observed only that the first customer rates

the focal company‘s sales representative lower than the competitor and thus would expect a

higher customer share for the second customer. However, when considering the competition, the

researcher would realize that the two customers observe no real differences across the sales

representatives. If the inclusion of the competition would have been their then it may appear that

the first customer receives relatively poor service from the competing companies‘ sales

representatives, while the second customer receives relatively outstanding service from the two

competitors. When viewing this situation in the absence of competitive information, it provides

the opportunity to concentrate on one Organisation only.

INTERPREATATION

CORELATION TABLE

VARIABLE 1 2 3 4 5

1).DILIGENCE _

2).INFORMATION .92 _

3).EMPATHY .88 .91 _

4).SPORTSMANSHIP .58 .72 .88 _

5).INDUCEMENT .89 .92 .78 .86 _

6).SATISFACTION .90 .88 .82 .67 .77

TABLE 2

CRONBACH ALPHA FOR ALL VARIABLES:

1).DILIGENCE: .82

2).INFORMATION SEARCH: .77

3).EMPATHY: .78

4).SPORTSMANSHIP: .88

5).INDUCEMENT: .78

6).SATISFACTION: .71

7).TRUST: .90



To examine the proposed effects of sales service quality, hypothesis was tested by using

Correlation based technique:

1).First we calculated the Cronbach alpha to examine the adequacy and internal consistency of

the measurement component and to evaluate the validity of the constructs.

2).Second, estimation of hypothesis was performed. Each condition was tested one at a time, to

test the mediating processes implicit in the model. Before running the analyses, we considered

the ratings of the salesperson on all dimensions of sales service quality and the two dimensions

of relationship quality. Thus, we examined all relationships.

3).One covariate was also used in the study: length of relationship with the customer. This

covariate was added to satisfaction, trust in both the hypothesized model. Addition of the

covariate was done to control for differences across buyer–seller relationships that go beyond

sales service quality. Length of relationship with the customer was measured on the basis of

discussions with Shop Sales Executive.



RESULT

1).The results indicate that the hypothesis were significant at p < 0.01.

2).Comparative Fit Index [CFI]=0.95, root mean square error of approximation=0.06.

3).The correlations among the constructs along with one index of construct reliability. The index

included was Cronbach‘s alpha, which is a measure of internal consistent reliability and also the

measure of the average variance extracted from the items by each construct. It indicates that the

constructs are all reliably measured and achieve a reasonable level of validity.

4).Specifically, in terms of reliability, Cronbach‘s alphas for each scale were all above at the

recommended level of 0.70 for newly developed scales. With regard to validity, all the

correlations between sales service quality constructs were significantly less than one, and the

shared variance between any two constructs i.e. the square of their correlation was always less

than the average variance explained by the construct can result in problems with reliability and

validity due to possible range restriction issues.

5).All of the above mentioned statistics are indications that we did not experience problems as a

result of difference scoring.

6).Support for seven of our eight hypothesized relationships was seen. Diligence, Information

Communication, and inducements were significantly related to satisfaction

7).The current study attempted to address the question, how can salespeople build the relational

nature of the buyer–seller exchange in a profit for company context? The effects of SSBs on

customer satisfaction and trust assessed from the customers‘ perspective and on the objective

outcome measure share of customer.

8).In this study data in the context of sales representatives was analysed. Findings suggest that

salesperson diligence, information communication, and inducements directly affect buyer

satisfaction with the salesperson and indirectly affect trust through satisfaction.

9). Empathy and sportsmanship had a significant, direct effect on buyer trust in the salesperson.

Sportsmanship also had a direct effect on satisfaction, which indicates that the buyer may

perceive sportsmanship behaviours as both transient and enduring. Inducements directly affected

not only satisfaction.



CONSTRUCTS USED 1).Diligence (1=strongly disagree, and 7=strongly agree)

a).Never too busy to respond promptly to my special requests.

b).Makes sure I can reach him/her when I need something important.

c).Returns calls promptly whenever he/she is unavailable.

d).Provides information I request in a timely manner.

e).Satisfies me with the volume and frequency of sample deliveries.

f).Makes sure that I can always reach him/her within 24 hours.

g).Provides his/her services at the time he/she promises to do so.

h).Keeps good records of our past interactions.

2).Information communication (1=strongly disagree, and 7=strongly agree)

a).Makes objective comparisons between drugs.

b).Frequently uses reprints to support his/her claims.

c).Uses company brochures to emphasize points.

d).Acknowledges the strengths and weaknesses of his/her drug.

3).Inducements (1=strongly disagree, and 7=strongly agree)

a).Will sometimes do little things like give out holiday presents.

b).Consistently remembers birthdays and anniversaries.

c).Remembers my spouse‘s and children‘s names and asks about them.

4).Empathy (1=strongly disagree, and 7=strongly agree)

a).Always demonstrates a sincere interest in people.

b).Displays a caring attitude toward others.

c).Is always ready to help when others encounter problems.



5).Sportsmanship (1=strongly disagree, and 7=strongly agree)

a).Waits patiently to speak with me .

b).Does not bad mouth competitive reps or their firms or products.

c)Does not get upset when a detail or meeting ends prematurely.

d).Maintains composure when others are critical of his/her products or firm.

e).Follows my office procedures such as how to stock the sample cabinet.

6).Trust (1=strongly disagree, and 7=strongly agree)

a).Is very trustworthy.

b).Never tries to mislead me.

c).Instills confidence in his/her integrity.

d). Is always honest in his/her dealings with me.

7).Satisfaction (1 = strongly disagree, and 7 = strongly agree)

a).Overall, I am extremely satisfied with this company.

b).Overall, I am extremely satisfied with this company‘s salespeople.



MEASUREMENT OF CUSTOMER SATISFACTION

Introduction Project-based Organisations place a lot of emphasis on customer satisfaction, and rightly so, as

customer satisfaction is the key for improving these companies‘ internal processes. People tend

to rate service higher when delivered by people they like than by people they don‘t like. At the

end everything company do is for the customer and measuring customer satisfaction is necessary

for improving the areas where company is lagging behind.

OBJECTIVE OF THE STUDY

In addition to Measuring the Effect of Visual Merchandising and the Salesperson service qualities that

they should possess that next phase of the project is to measure the Customer Satisfaction and

perception about LG. It focuses on the factors that help in attaining Customer Satisfaction and loyalty.

The factors are as follows:

A).To know what attracts customers to LG.

B).To have knowledge about the overall Quality of products at LG.

C). To understand what the customers think about the Sales person.

D). To know the Product Offerings at LG.

E). To study the Product Aspects at LG.

F). To understand customers perception about the advertisement of LG.

G). To know the customers perception about After Sales of LG.

H). To know how likely the customers to visit the store in the future.

I). To know if the customers will recommend the store to their friends and colleagues.



THEORETICAL FRAMEWORK

―IT IS NO LONGER ENOUGH TO SATISFY CUSTOMERS.YOU MUST DELIGHT

THEM.MEASURING SATISFACTION.‖ -P.KOTLER.

Although the customer centered firm seeks to create high customer satisfaction that is not its

main goal. If the company increases customer satisfaction, by lowering its price increasing its

services, the results may be lower profit. When customers rate their satisfaction with an element

of companies performance-say, delivery-the need to recognize that customers vary in how they

define goods delivery. It could mean early delivery, on-time delivery, order completeness, and so

on. Yet if the company had to spell out every element in detail, customers would face a huge

survey questionnaire. The company must also understand that two customers can report being

―highly satisfied‖ for different reasons. One may be easily satisfied most of the time and other

might be hard to please but was pleased on this occasion. Companies need to be specially

concerned today with their customer satisfaction level because today technology provides a tool

for consumers to spread bad word of mouth as well as good word of mouth to the rest of the

word. Today companies are facing their toughest competition ever. The companies can

outperform the competition if they can move from one product and sales philosophy to a

marketing philosophy.

Following are some of the findings about what customers had to say about their experiences.

Some key findings include the following:

1).In earning their loyalty, customer‘s rate their quality of interactions with an Organisation as

important as to the quality of the goods or services purchased.

2).In contrast, investing in employee training and Internet-based sales and support has generally

had a more positive effect, improving customer experiences more.

3).Post-sales service/support activities are the most likely to generate a ―memorable‖ experience,

Either positive or negative, because of the strong emotions that often result in problem situations.

4).Memorable experiences build loyalty—78 percent of customers in the survey recommended

the company to a friend or colleague, and 19 percent increased their purchases.

5). ―Well-trained and helpful employees‖ is the top attribute of companies that provide

―consistently excellent‖ customer experiences.



CUSTOMER SATISFACTION FRAMEWORK

FIGURE 7

RELIABILITY

RESPONSIVENESS

ASSURANCE

EMPATHY

TANGIBLES

SERVICE

QUALITY

PRODUCT

QUALITY

PRICE

SITUATIONAL

FACTORS

CUSTOMER

SATISFACTION

PERSONAL

FACTORS



DEFINING CUSTOMER VALUE AND SATISFACTION

Over 38 years ago, Peter Ducker observed that a company‘s first task is ―to create customers‖.

However, customers face a vast array of product and brand choices, prices, and suppliers. How

do they make their choices? We believe that customers estimate which offer will deliver the most

value. Customers are the value maximizers, within the bounds of search, cost and limited

knowledge, mobility and income. They form an expectation of value and act upon it. Whether or

not the offer lives up to the value expectation, affects both satisfaction and repurchase

probability.

Organisations that apply total customer experience principles have the following features in

common:

1).Anticipating and fulfilling customer needs and wants better than competitors do.

2).Providing real customer experiences.

3).Providing a real emotional experience

4).Providing experience as a distinct market offering

5).Utilizing experiences as interaction

6).Changing experiences into engaging memories

Comparison between the elements of the marketing mix and the elements of

the total customer satisfaction:

There is a strong correlation between the elements of the customer experience and those of the

marketing mix. The difference between the two lies in the more strategic and holistic approach to

customer experience and more focus on looking at the interaction with the customer from the

customer's point of view which includes elements such as customer expectations, measurement

and strategy.

Elements of the total the Marketing Mix Customer Experience

1).People

2).Culture

3).Strategy

4).Measurement

5).Channel approach

6).Customer expectations

7).Marketing and brand

8). Processes



9).Customer Service

Elements of Marketing Mix:

1).Product

2). Price

3).Place

4).Promotion

5).People

6).Process

7).Physical evidence



TOTAL CUSTOMER SATISFACTION AS DIFFERENTIATOR

Product, price, service and customer experience are described as possible differentiators in

marketing. The researcher had showed through literature study how product, price, service and

customer experience were identified as differentiators. Product, price and service have all been

utilized as possible differentiators.

1).The traditional differentiators of product, price and quality are becoming less important every

day. Differentiating in terms of price, quality and delivery is no longer a sustainable business

strategy. Products and services have become too similar and, as we suffer from "the blight of the

bland". Customer experience is the next competitive battleground to provide a source of

sustainable differentiation.

In the modern economy, customer experience is the only differentiator. Product, price, people

and technology are all similar. The meaningful aspects customers remember, over and above

products, are the feel for and the perception of the Organisation and the brand. "It is therefore the

customer experience that makes you different"

2).Organisations competes best when they combine functional and emotional benefits in their

offerings. Emotional bonds between organisations and customers are difficult for competitors to

sever. A growing number of organisations are systematically applying principles and tools

related to customer experience management to strengthen customer loyalty. Unlike many product

or service enhancements, the holistic nature of these experiential designs makes them very

difficult for competitors to copy

The arguments by the various writers and experts on customer experience in the literature studies

above illustrates that the total customer experience which includes product, price and service can

differentiate one organisation from a next, leading to a competitive advantage.



RESEARCH METHODOLOGY

A). Research Design

Research design means adopting that type technique of research which is most suited for the

research and study of the problem. For the study and the research of the problem proper material

has to be selected and collected for the investigation. ―A research design is the arrangement of

conditions for collection and analysis of data in a manner that aims to combine relevance to the

research purpose with economy in procedure.‖

In order to know about market image of LG it was necessary to interact with the customer. The

sample taken comprised of respondents from Ghaziabad and Noida city. A questionnaire had to

be designed to collect valuable information from the customer. The questionnaire which was

prepared was designed suitably to meet the objective of research work.

B).Nature of Research

In this project report I have undertaken exploratory research which provides the initial

framework for understanding how various Moment Of Truth affect Customer Satisfaction and

analyzing that affect through quantitative type of study.

C).Type of Questions

The questions in the questionnaire asked to the customers of LG Brand Shop were Straight

Forward and Limited Probing.

D).Type of Questionnaire

The questionnaire in this project report is straight forward and formalized.

E).Type of Analysis

The analysis done for measuring satisfaction is statistical.

F).Sources of Data

Primary data:

The Primary data are those data which are collected fresh and for the first time and thus happen

to be original in character. The primary data was collected through the questionnaire. The

primary data sources include copies of questionnaire.



Secondary data:

The secondary data are those which have already been collected by someone else and which

have been passed through the statistical process. Secondary data was collected through company

websites. Some of the web sites www. Lg.com/.org,www.lgretail.com and some catalogs i.e.

management research review.

Primary Data Collection:

a).Research Technique

Survey method as a research technique, is used for measuring customer satisfaction.

b).Contact Method

Contact method used was personal interaction with the customers outside the shop and giving

them the questionnaire and asking about their shopping experiences.

G).Sampling Plan:

a). Population

The population covered in this project report refers to the customers who visited at the LG Brand

Shop or who have purchased the product years.

b). Sample Size

The sample size undertaken for this particular study is 50 respondents.

c). Sample Element

The respondents contacted in this study were those who have purchased the products from LG or

were about to purchase.

d). Sample Duration

Duration of the survey undertaken is from the month of April to May, 2013.

H). Research Instrument

Questionnaires containing both open ended and close ended questions were used as a research

instrument in this particular study.



DATA ANALYSIS AND INTERPRETATION

1).Before purchasing the product did u compare it with some other stores?

YES NO

RESPONDENTS 61 39

INTERPRETATION:

The above pie chart represents that about 61% of the respondents said yes that they compared

their products before purchasing and 31% said no. Most of the customers compare products /

various brands before making a purchase decision.

2).Compared to what other stores charge for similar merchandise, how would you rate the price

you paid for?

LOW PRICED MODERATE

PRICED

HIGH PRICED VERY HIGH

PRICED

RESPONDENTS 38 40 13 9

61

39

RESPONDENTS

YES

NO



INTERPRETATION:

38 respondents said it was low priced & 40 customers said the price was moderate, 13 said that

products were high priced & 9 customers said they were very highly priced.

3). what is the main reason for your purchase of this product from LG and not at the other stores?

PROXIMITY

TO

HOME/OFFICE

PRICE VARIETY

OF

PRODUCTS

REPUTATION PREIOUS

EXPERIENCE

RESPONDENTS 20 30 20 5 25

Interpretation:

21 respondents said they purchased the products because the shop was near either to their home

or office, 30 customers said because of moderate price, 20 customers said because of the range of

products, 5 customers said because of the reputation of the store, 25 customers said their

previous experience was good.

4).How would you rate the overall Product Offering? By Product offering we mean, the range,

availability etc.

39

13

41

9

RESPONDENTS

LOW PRICE

HIGH PRICE

MODERATE PRICE

VERY HIGH PRICE

20

30205

25

RESPONDENTS

PROXIMITY TO HOME/OFFICE

PRICE

VARIETY OF PRODUCTS

REPUTATION

PREVIOUS EXPERIENCE



EXCELLENT GOOD FAIR POOR


INTERPRETATION:

The above graph represents that about 32 respondents said Excellent about Product offerings,

40% i.e. 40 respondents said good, 15 customers said fair & 13% respondent said poor.

5).How would you rate the Physical Aspects of the Store in terms of its design, layout, space and

ambience excluding the product offering?



32%

40%

15%

13%

RESPONDENTS

EXCELLENT

GOOD

FAIR

POOR

20%

52%

19%

9%

RESPONDENTS

EXCELLENT

GOOD

FAIR

POOR



Interpretation:

About 20 respondents said excellent about the Physical Aspect of the store, 52 respondents said

good, 19 respondents said Fair and 9 said poor.

6). Based on all your experiences you had through all your visits to the store, how would you rate

the Sales Personnel (in terms of overall appearance, courtesy, helpfulness etc)



INTERPRETATION:

About 33 respondents said excellent about the SALES PERSON qualities of the store, 44

respondents said good, 15 respondents said Fair and 8 said poor.

7). How would you rate the Overall Quality of the shopping experience at LG?



33%

44%

15%

8%

RESPONDENTS

EXCELLENT

GOOD

FAIR

POOR



INTERPRETATION:

About 19 respondents said excellent about the Overall quality of the shop,60 respondents said

good, 14 respondents said Fair and 7 said poor.

8).Based on your experiences, how would you rate the overall quality of Advertising of LG?



INTERPRETATION:

About 20 respondents said excellent about advertising of LG,40 respondents said good, 21

respondents said Fair and 19 said poor.

9).Have you taken any After Sales Support from LG (By after Sales Service Support, we mean

Delivery, Installation, Demo etc)?

YES NO

RESPONDENTS 73 37

19%

60%

14%

7%

RESPONDENTS

EXCELLENT

GOOD

FAIR

POOR

20%

40%

21%

19%

RESPONDENTS

EXCELLENT

GOOD

FAIR

POOR



Interpretation:

73% of the total respondents said they took After Sales Support from LG & 37% respondents

said no.

10).Based on the experience, how would you rate the overall After Sales Support of LG?



Interpretation:

Out of 100 respondents, 72 said After Sales Support was excellent, 19 said it was good 9 said it

was fair and 1 said poor.

11). If a friend or colleague were to ask you to recommend a shopping store for Consumer

Electronics & Durables, what is the likelihood that you would recommend LG?

66%

34%

RESPONDENTS

YES

NO

72%

19%

8% 1%

RESPONDENTS

EXCELLENT

GOOD

FAIR

POOR



RECOMMEND NOT RECOMMEND

RESPONDENTS 71 29

INTERPRETATION:

Out of 100 respondents 71 said that they will recommend LG to their friends and relatives while

29 said that they will not recommend.

12).Do you believe that LG helps you in buying?

YES NO

RESPONDENTS 82 18

INTERPRETATION:

Out of 100 respondents, 82 respondents said that LG makes their shopping experience better,

easier and memorable, while 18 do agree upon this.

71%

29%

RESPONDENTS

RECOMMEND

NOT RECOMMEND

82%

18%

RESPONDENTS

YES

NO



ANALYSIS

From the survey done with the help of questionnaire, the following findings were analysed:-

1).From the research conducted, before purchasing the products from the LG Brand Shop few

customers compared the price from other stores and most of these customers were those who

were buying first time from LG as per told by them.

2).From the survey conducted most of the customers about 41 out of 100 customers thought that

LG provide moderately priced products As compared to other brands

3). 31% of the total respondents said they purchased the products from LG because it was either

close by to their house [Convenient Store] or office. and 30% said because of the price structure

of LG.

4).More than 50% of total respondent said they liked the overall shopping experience at LG

because of the effective salesperson effective communication through the display information

placed over the products and ambience of the shops.

5).52% of the Customers who purchased products which accounts for more than half of the total

sample surveyed which helps in earning customer loyalty.

6).From the survey done it is found that majority of the customers about 35% said that they were

somewhat likely to recommend the store to their friends or colleague [This result will help in

calculating the Net Promoter Score]

7).Majority of the respondents about. 57 said that the Product offering at was good, and 32

respondents said it was excellent.

8).Amongst the customers surveyed 50% said that the physical aspect of the store was excellent

and 42% said it was good. It shows that physical Aspect which is also a Moment of Truth for

customers have positive impact on customer mindset

9).Majority of the customers gave a positive reply about the advertisements of LG, 50

respondents said it was good and 24 said it was Poor. As seen from the results half of the sample

population is happy with the promotional advertising of LG and find out quite attractive.

10).From the survey conducted 48% i.e. 62 respondents said that the Sales Personnel were good

and effective and well behaved. Hence the other Moment Of Truth i.e. Sales-person impact over

Customer buying Behaviour have a positive impact over customers.

11). Out of the 100 respondents 60 respondents said that they had taken after sales support and it

was quick, timely and effective which shows LG Commitment for the better after Sales Service..



SUGGESTIONS

After conducting the study, it was found that LG has a good reputation in the market; at the

same time it is maintain a good brand image. Most of the customers are satisfied with the

products of LG. Following are few suggestions as per my side after conducting the Survey and

analyzing the findings:

1.).There is a scope to improve the overall quality of products. By overall quality I mean the

product offerings, ambience, product display etc. Although most of the shops were good, had a

great ambience and all the products were well displayed but some shops need to be furnished and

need to improve on the above parameters.

2).All the Salesperson were effective and efficient and had knowledge about the products, about

their advantages and about their features. But the only problem they are facing is the untimely

calls from the Corporate office for questioning them which some-times create obstacle in their

work. So this issue needs to be solved so that they could more effectively attend the Customer

3).LG have an excellent after sales support which states that within 2 days, I technical person

will be send to the problem place and only one hour will be taken to solve it but at some shops

there was complaint of unavailability of the technical person at the required time which results

into bad image of company on consumer mind so this issue need attention..

4).The store should seek a constant feedback from the customers so as to understand the

customer‘s feelings regarding the product and services and also to incorporate changes if any.

5).The store should have a data base of customer‘s birthdays and anniversaries, etc. and apart

from sending cards in the festive season; they should also send cards on these special occasions.

This could create a sense of inducement in the customer minds and they will feel valued



NET PROMOTER SCORE

Method of Measuring Customer Satisfaction

It is a discipline by which companies profitably grow by focusing on their customers. It is a

survey based on the golden rule. It basically states that 80% of the companies believe that

Customers are satisfied with the moment of truth they faced while interacting with the

Organisation, these customers comes under the category of “BELIEVERS” but the golden rule

states that only 8% of these 80% Companies , customers agree upon it and they are called as

“ACHEIVERS”

Calculations of Net Promoter Score:

GOAL: Protect profits by protecting your Moment Of Truth

1).Promoters = 9-10[Loyal enthusiasts who keep buying and urge their friends to do the same].

2).Passives = 7-8[Satisfied but can be easily wooed by the competition]

3).Detractors = 0-6[Unhappy customers trapped in a bad relationship].

FIGURE 8

Promoters will:

1. Buy more from you.

2. Market for you (word of mouth).

3. Tell you how to improve your business.

NET PROMOTER SCORE=%PROMOTERS - %DETRACTORS



CALCULATING NET PROMOTER SCORE

For calculating Net Promoter Score, responses of the Customers from the survey conducted were

taken into account. Following were the questions which were taken for measuring the attitude of

customer from the questions of the survey conducted:

1).Before purchasing the product did u compare it with some other stores?

2).What is the main reason for your purchase of this product from LG and not at the other stores?

3).How would you rate the Physical Aspects of the Store in terms of its design, layout, space and

ambience excluding the product offering?

4).Based on the experience, how would you rate the overall After Sales Support of LG?

5).If a friend or colleague was to ask you to recommend a shopping store for Consumer

Electronics & Durables, what is the likelihood that you would recommend LG?

6).Do you believe that LG helps you in buying?

ASSUMPTIONS:

1).We will assume answers like Yes, No, Excellent, Good equivalent.

2).Though only 100 customers were taken but their responses for each and each and every

question will be counted separately.

CALCULATION:

Promoters were those persons who had responded yes, good, excellent and Detractors were those

who were opposite to promoters.

Total Number of Promoters: 390

Total Number of Detractors: 118

Total Number of Customers: 500

NET PROMOTER SCORE: %PROMOTERS - %DETRACTORS

: 78% - 23.6%

: 54.4%



Therefore, Net Promoter Score is 54.4% which is more than 50% which means that LG provides

better experience to the customers and help in their shopping and create a memorable shopping

experience and customers are satisfied to a large extent.



OUTCOME/CONTRIBUTION

1).With this research LG got a strong base for making its business plans in the near future.

2).By concentrating more on some specific MOMENT OF TRUTH, LG 5its sales by at least 5%.

3).Company can identify its weak areas in order to increase its market share.

4).It helps in identifying the gap between the various things that create hindrance in creating

better customer experience.

5).My contribution to this project is that after doing my survey the company observed the various

suggestions for improving the communication through Visual Merchandising and implementing

the various qualities that salesperson should possess.



LEARNING FROM SIP

1). During my internship, I was able to learn about various strategies that any Consumer Durable

Company makes use of with respect to Brand Shops.

2). Having discussions with the management at Brand Shops, I learnt about the ‗Terms of Trade‘

on the basis of which deals are done between the managements of the company and the store .

3).I also got to know about the customer expectations from the Brand.

4).Having discussions with the sales person, I came to know about qualities and tactics they

employ while dealing with the customer.

5).Effect of Visual Merchandising on the consumer buying behaviour was duly analysed and

understood.

6).During sales analysis I learnt about various reasons because of which, the sale of any product

may rise or fall.

7). I was also able to learn the measures taken, regarding how to rectify any sort of unexpected

situations, which may arise.

8). Apart from this, after working for three months at LG, I was able understand more about

corporate culture and Organisational behaviour.



REFERENCES

a). LG, Retrieved from http://en.wikipedia.org/wiki/lg

b).LG Electronics, Retrieved from http://www.lg.com

c).LG Organisation, Retrieved from http://lg.com/organisation

d).MARITZ, 2003.The Three Dimensions of Customer Experience Management. [Online] New York:

Ross

Available from: http://www.maritzresearch.com [Accessed April 1, 2013]

e).REKETTYE, 2001.Quantitative methods for measuring customer satisfaction in Brand shops. P.H.D

Thesis, University of Pecs, Hungary

f).Consumer Perception, Retrieved from http://www.businessdictionary.com/definition/customer-

perception.html

g).Importance of Marketing Research, Retrieved from http://www.knowthis.com/principles-of-marketing-

tutorials/marketing-research/importance-of-marketing-research/

h).Market Research-need and purpose. Retrieved from tutor2u:

http://tutor2u.net/business/marketing/research-need-purpose.html

http://en.wikipedia.org/wiki/lg

http://www.lg.com/

http://lg.com/organisation

http://www.businessdictionary.com/definition/customer-perception.html

http://www.businessdictionary.com/definition/customer-perception.html

http://www.knowthis.com/principles-of-marketing-tutorials/marketing-research/importance-of-marketing-research/

http://www.knowthis.com/principles-of-marketing-tutorials/marketing-research/importance-of-marketing-research/

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