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IRCS INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH IN SOCIAL & MANAGEMENT SCIENCES

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ISSN:2320-8236
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ISSN NO.:

2320-8236

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IRCS INTERNATIONAL JOURNAL OF


MULTIDISCIPLINARY RESEARCH IN SOCIAL &
MANAGEMENT SCIENCES
(Double Blind Peer Reviewed, Quarterly Open Access Journal)

Vol: 1, Issue: 2

APRIL-JUNE 2013

International Research Communion (IRC)


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Patron
Dr. V.C. Sinha
Ex. Vice Chancellor & Founder Director
Department of Business Administration
A.P.S. University, Rewa (M.P)
India

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Dr. R.P. Das
Professor & head, Faculty of Management Studies
Pt. Ravi Shankar University, Raipur
(C.G.). India

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Chairman of Doctoral Degree Program
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Science
Loei Rajabhat University Thailand

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American University in the Emirates (AUE)
Dubai International Academic City, Dubai,
UAE

Dr. Shiv Shankar Mishra,


Pro-Vice Chancellor of
MGAHVV
Central University, WARDHA

Dr. Raj Kumar


Professor, Faculty of
Management Studies
Banaras Hindu University
Varanasi- U.P

Dr. Rajesh Tripathi


Chairman
All India Council of Physical Education,
New Delhi

Dr. R.P. Goutam


Professor & Head, Department of Political
Science
& Public Administration,
Dr, Hari Singh Gour University, Sagar, India

Dr. M.P. Goutam


Professor & Head, Deptt. Of
Forensic Science
Guru Ghasi Das University,
Bilaspur
(C.G.) India

Dr. L.P. Pateriya


Professor & Head, Faculty
of Management Studies
GGDU, Bilaspur
(C.G.) India.

Dr. Karunesh Saxena


Professor & Head, Faculty of
Management Studies
M.L. Sukhadia University
Udaipur (Rajasthan) India

Dr. Rajeev Dubey


Professor & Head, Deptt. Of Business
Management
A.P. S. University, Rewa
(M.P.) India

Dr. I.P. Tripathi


Professor of Commerce,
Principal, Govt. P.G. College
Rewa (M.P.)

Dr. Nivedita Maitra


Professor, Deptt. Of
English & other European
Language
Dr. H.S. Gour University,
Sagar (M.P.)

EDITORS
Valentina Emilia Balas

Dr.B.Nimalathasan

Dr. Parag Dubey

Dr. Mukesh Chansoria

Assoc.Professor,
Aurel Vlaicu University of Arad,
Romania

Senior Lecturer, Department of Accounting,


Faculty of Management Studies & Commerce,
University of Jaffna, Sri Lanka.

Professor, National Institute of


Technical Teachers Training &
Research
Bhopal (M.P)
India

Professor & Diector


School of Management, LNCT
Bhopal (M.P.) India.

Managing Editor
Dr. Pratyush Tripathi
Professor, Faculty of Management Studies
VNS Group of Institutions
Bhopal (M.P.)

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Referees
Dr. Tara Singh
Professor
Department Of Psychology
Banaras Hindu University
Varanasi (U.P.)- India

Dr. Jainendra Kumar Jain


Professor
O.P. Jindal Institute of
Technology
Raigarh (C.G.)- India

Dr. Ankita Gautam


Associate Professor
(Humanities)
TIT Group of Institutions
Bhopal (M.P.)

Dr. Sunita Dwidedi


Associate Professor
School of Management
ITM University,
Gwalior (M.P.)- India

Dr. Kapil Chaturvedi


Assistant Professor
Instittue of Technology &
Management (ITM)
Nagpur (Maharashtra) - India

Dr. Bal Gopal Singh


Assistant Professor
WISDOM
Bansthali Vidyapeeth
Bansthali- Rajasthan- India

Prof. Priyanka Rawal


Assistant Professor
Institute of Professional
Education & Research
Bhopal (M.P.)

Prof. Ankur Gautam


Faculty Member
Faculty of Management Studies
Dr. H.S. Gour University,
Sagar (M.P.) - India

Prof. Ajay Mishra


Assistant Professor
JSS Institute for Women
Bhopal (M.P.) India

Mr. Ashish Gupta


Assistant Professor
Faculty of Management Studies
Dr. Hari Singh Gour University
Sagar (M.P.)

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Message From Managing Editors Desk
Philosophy of International Journal of Social and Management Sciences IJSMS guides it to map
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International Research Communion (IRC) prides itself by introducing its Journal International
Journal of Multidisciplinary Research in Social & Management Sciences; at global platform in
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International Journal of Social & Management Sciences (IJSMS) is a Quarterly, reviewed,
interdisciplinary journal of IRC. IJSMS focuses on integrating theory, research and practice in the
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and discussion informed by the results of recent and ongoing research.
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and social field and examines examples of these practices. In order to define and exemplify
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knowledge and method.

Dr. Pratyush Tripathi, Managing Editor

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Contents
S.No

Title of the Paper

Authors

Page Number

Influence of Children in The Process of Family Purchase


Decision for High, Low and Child-Centric Products

Prof. Sunita Kumar

5-16

A Study on Consumer Satisfaction at Unorganized Retail


Food Outlets in Indore city

Dr. Rajeev K. Shukla


Prof. Pradeep Bhatt
Prof.Amiya Shukla

17-23

Behaviour of Indian Currency - The Rupee in past and


a year ahead..

Poorva Sakergayen

24-28

Television as an Advertising Media in shaping Consumer


Behavior

Ms. Priyanka Rawal

29-37

The Need of Capacity budgeting and HRD for the


development of Tourism Industry

38-43

Challenges and Strategies in IT INDUSTRY in the global


perspective

Study of the impact of training on the performance


effectiveness of insurance agents at Max NewYork life
insurance Bhopal
Competency Management

Parag A. Gadve
Nikita J. Gupta
Rajesh K. Sharma
Dr. Abhaya Swarup
Rakhi Tiwari
G.sai Rekha
K.Gayathri
Dr. Kumar
Siddhartha
Dr. Ankita Goutam

53-68

8
9

Consumer perception on Organized Fast Food Retail


Outlets towards brand image in Bhopal

10

Effective Communication at Workplace

44-48
49-52

69-79
80-83

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Influence of Children in The Process of Family Purchase Decision for


High, Low and Child-Centric Products
*Sunita Kumar
Assistant Professor
Dept of Management Studies
Christ University
Bangalore , Karnataka, INDIA

Abstract:
The influence of children on the processes of family purchase decision depends on a number of parameters
and situations. Children exercise various methods to influence their parents decision of buying. This
influence varies from one product to another. It depends on the education of the parents, their profession,
income, whether the parent is single and working, or both parents work and also the family type, types of
product (high, low ,and child centric product) among others.
This research considers children in the age group of 8-12 in India. Descriptive statistics are used to
summarize variables in terms of central tendency and measures of dispersion. Reliability test has been done
using Cronbachs alpha. Pearsons product correlation, one-way ANOVA, Two-way ANOVA has been done
using SPSS version 18.0. Regression is used to prove the causality between independent variables on
dependent variable. The childrens influence is maximum for products like bicycle, Ice
Creams/chocolates/Juice and CDs/DVDs. There are a few products like CDs/DVDs, video games and hobby
activities, which are used by the whole family and still childrens influence is higher than their parents on
family purchase decision. The ANOVA analysis of parents perception of children influence indicates that
parents income impacts the childrens influence. The quadratic relation is observed between children
influence and family income.

Keywords- Childrens influence, decision, family purchase, family structure, income, high-value product,
low-value product.

INTRODUCTION
In the context of increasing competition and changing social and economic environment, it becomes
essential for the marketers to be customer-oriented. Buying behaviour of customers in the marketplace plays
a significant role in the strategic marketing planning. The recent awareness of consumer behaviour has
introduced many new dimensions in the marketing philosophy and practices. It is both, relevant and
important for every business enterprise to know its customers and understand their buying behaviour.
Family as a consuming and decision making unit is a central phenomenon in marketing and consumer
behaviour (Commuri and Gentry, 2000, p. 1).Family always plays a very important mediating function. It
combines the individual with a larger society, where the person learns various roles suitable for an adult life
(Foxall, 1977). The way children learn to become consumers in our society may be largely the result of
family influence (Ward, 1974). Since culture exerts considerable influence on the family unit, it is also likely
that cultural variables influence the socialization process of the children. The Fig. 1 highlights the stages for
children becoming a consumer.

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Figure 1: The stages for children becoming a consumer

One of the very important influences operating on family purchase behaviour is the influence of children on
the budget allocation and purchases and consumption. The birth of a child creates a demand for a wide
variety of products a couple never needed or considered purchasing previously. In addition, children
influence the purchase of many products both directly and indirectly. Thus in a child-centred culture such as
it exists in Indian society, children tend to dramatically affect family expenditures. When children are part of
a family, their influence may or may not be felt. However, it is found that the child centeredness of mothers
may increase their receptivity to the child. A similar influence is observed in other countries as shown in
Fig. 2.

Figure 2: Extent of influence of 8-14 years old in parents purchase decisions across nations
Indian culture and its impact on childrens role in family decision making

Indian society to a greater extent differs from the west in terms of family composition and structure, norms,
values, and behaviour. Hence it becomes important to understand childrens influence in the purchase
decision making in families in the Indian context (Jain and Bhatt, 2004). They not only influence markets
with regard to parental decision making on purchasing certain kinds of products, but they also act as future
consumers.
Children in India have become the most important object of research. India has one of the largest
populations of children in the world, and Indian children have substantial economic power and unique
influence of their parents.
Research indicates that children play a significant role in some family purchase decisions, and their
influence varies by-product categories and decisional stages (Moschis 1987). In general, for products in
which the child is directly involved in consumption, the child is expected to have at least some influence on
the decision. Few studies, however, have attempted to distinguish patterns of influence by a product user
(i.e., products for children, for parents, or for family use); and most studies have measured children's
influence only for the purchase of breakfast cereal, or for major family purchases. There has also been no
investigation of the relationship between product importance perceptions and children's perceived influence
on decision making by family.

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Figure 3:

This particular paper attempts to address the major research question that is, to examine the perception of the
parents about childrens influence on family purchasing decisions in relation with some factors such as the
number of children in the family, product type, parents profession, income and working status of the
parents. The analysis will allow us to ascertain if these factors are important for the childrens influence on
the familys purchasing decision and increase understanding of the relation between these factors and
childrens influence on the familys purchasing decision. This study has been conducted in India; the
findings contribute to our understanding of childrens influence on family purchasing decision in this
country and provide an opportunity to conduct cross-national studies.

LITRATURE REVIEW
Today children are not only passive observers but they have taken a considerable place in the families and
have a significant influence on parental buying decisions.
Mangleburgb (2010) evaluated parental and peer influences on teen purchase decisions by applying social
power theory, which had not been examined in the teen context. The conceptual model examined how
family socialization practices might impact teens' perceptions of social power influences from parents and
peers. For example, family communication environment may promote teens' reliance on particular bases of
social power influence. This study also examined the relationship between the bases of perceived social
power and the purchase of different types of products (e.g., luxury/necessity, public/private). Results are
generally consistent with predictions, demonstrating that teens from high socio-oriented communication
environments are subject to greater perceived peer reward/coercive and referent power, whereas teens from
high concept-oriented communication environments perceive greater parental expert and legitimate power.
Finally, perceived bases of social power influence differ depending on the type of product purchased.
Interpretations of findings and implications have been discussed.
Kaur and Medury (2010),explain in his article how urban Indian adolescents have a significant influence on
the family decision-making process. In the 11 sub decisions (six for high-technology products and five for
vacation) examined in their study, teenage childrens role in decision making was found to be more than the
mid-value in all cases except in the financial decision how much to spend. There are many other factors
which, boost newer aspirations and dictate consumptions. These factors are early consumer socialization,
busy parents, rising media influence and susceptibility to peer influences.
Schdeva (2009) mentions that a few decades ago Indians copied baby boomer from US and that most of the
families were more than two children. It was considered a matter of pride having a big and bustling family.
Now more and more couples are going for nuclear families with one child. Another important change is
related to working status where both parents are working and creating a strong financial base, and it provides
one of the best facilities International schooling, high standard of materials for the day to day activities and
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costly games, tennis, are becoming normal for the children. These factors are moving the child to the centre
of attraction for families. Now children are more often like friends to their parents.
Veloso et al. (2008) studied some parents and children in low-income families. It was observed that these
families did not buy products in bulk and had to take care of more than one child. And because of these
reasons, it is further observed that they make several trips for shopping and hence end up spending more
time in a shopping environment. Another observation is that they often take their children for shopping.
Tinson et al. (2008) suggest that the level of childrens influence correlates with the product type. This
implies that children generally have a greater influence if the product is designed for their personal
consumption than if it is a family product.
Flurry (2007) reveals that children have a greater influence when the product is designed for their personal
consumption, some research has concluded that for some family products such as family holidays or
automobiles, children, especially those living in a single-parent household, have an indirect influence on the
family decision-making process jointly. This has to do with the fact that children have an elevated, almost
equal status and will often be consulted in family product decision making.
Greenspan et al. (2002) analyses the extent of childrens influence in purchasing electronic products and
identifies the sources of influence among the children. The study concludes that children indeed have a very
strong hold in the purchase of these items as they were recognized to be the ultimate decision makers of
products such as computer software, mp3 players and PDAs whereas they had a 50% chance when it came
to other similar items such as cell phones, digital cameras and internet access. The author concluded stating
that the bread winners are no longer the decision makers of electronics in American households.
Chang and McNeal (2003) studied the children influence in China. They also looked at peer pressure aspect.
If any friend has bought any specific brand product then the child tries to get the same brand product with
more active assertiveness. In this way it increases the likelihood of childrens influence on products for
which they are the primary consumers. They observe that Chinese parents by nature and culture are mostly
consensual. The Chinese parents use to keep children in strict guidance and still allow them to choose
specific brand products. Chan and McNeal (2003, p318) presented changed theoretical framework as shown
in Figure 2.1
Family communication pattern

Choice and buying decision

Figure 4: A theoretical framework predicting family communication and buying choice and decision

A number of research findings indicate that children have a significant influence in the purchase of products
for which they are the primary consumers, such as food, toys, childrens clothes and school supplies (Atkin,
1978; Foxman and Tansuhaj, 1988, Foxman et al., 1989; Jenkins, 1979; Lee and Beatty, 2002). Various
researchers have revealed that a number of factors play a substantial role in childrens influence on parents
buying decisions across different product categories. They also have a significant influence on the purchase
of leisure activities or where the purchase decision has a personal relevance to the child (Filiatrault and
Ritchie, 1980; Szybillo and Sosanie, 1977). In contrast, children have less influence on decision making for
products that are used by the entire family, especially for high cost products, such as cars, furniture and life
insurance (Foxman and Tansuhaj, 1988). This may be explained by the fact that parents are likely to restrict
childrens involvement and also that the children may be less motivated to participate in the decision making
process as the product is not personally relevant to them (Mangleburg, 1990). This may imply that children
might not have a very strong direct influence in the purchase of a family home, as it is a high cost product to
be used by the whole family.
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Therefore, it can be concluded from the above review of literature that the problem in hand requires more
research, as it is yet an emerging phenomena in the Indian society. Indian society is still characterized by a
large proportion of rural population with joint families. Emergence of the urban population with joint as well
as nuclear families can also be seen. So a comparison of childrens influence in double income family versus
single income family or a single child nuclear family versus joint family with more children factors can
definitely yield fruitful insight in the different product categories.
A thorough analysis of the related literature reveals the fact that there is a dearth of studies specific to the
emerging markets. Most of the studies were focusing on developed countries. There is a need for more
studies with a focus on the Indian scenario.

METHODOLOGY
Statement of the problem
The researcher has made an effort to understand the degree of influence exercised by the children in family
purchase decision in the different product categories. Hence the statement of the problem is to study
Influence of Children in The Process of Family Purchase Decision for High, Low and Child-Centric
Products

Scope of the study


The study is carried out in Bangalore, a silicon city in India. The marketer will get insight on the children
influence on family purchase decision for various product categories. It will help marketer to design the
strategy to market their goods and services to tap the market more efficiently

Objectives of the study


1. To analyse childrens influence in double income family (where both parents are working)
2. To examine the level of influence on various categories of products (high/low/child) between parents
and children
3. To study the relative influence of children in family purchase decision with respect to family income,
type and the number of children.

Statement of the hypothesis


H1: The influence of parents and children for purchase of various products (categories: high-value, lowvalue, & child-centred) are same.
H2: Children from the family where both parents are working have more influence on the family purchasing
decisions than those of single parent working.
H3: Statistically, there is a linear relation between children influence and family income, family type and the
number of children.

Design of the study


This research applies a quantitative approach, and this approach has followed the deductive logic in order to
test the theory. The present study employs descriptive research design. This design is for summarizing the
set of factors and variables. The survey method is followed in this study, and a set of questionnaires was
used to collect primary data.

Variables included in the study


The variables included in the study are as follows:Dependent variable: Children influence
Independent variable: High/ Low/child centric products, Family income/type and number of children
/family working status

Data collection
Data collection was done from primary as well as secondary sources.

Primary data Questionnaires


Further it was modified and validated using a 5-point Likert scale for the present study.
The reliability test of sample data is shown in Table 1
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Table 1: The reliability test of sample data


Reliability Statistics
Cronbach's Alpha

Number of Items

.710

16

Secondary data was collected from selective sources of data like journals, websites, textbooks,
company brochures, magazines and newspapers.
Samples for the study
The present study is restricted to India only. Respondents are the parents of 8-12-year-old children and
children. This study looks at the degree of influence of children on family purchase decisions.

Sample size
For the study, 400 samples were chosen from the population which included 200 parents and 200 children
from Bangalore city. The questionnaire was administered to 400 samples, and the response rate was 390,
which includes 195 children and 195 parents.

3.11 Statistical tools and techniques


Considering the amount and nature of data for this research, it is necessary to use statistical tools.Following
descriptive and inferential statistical methods were employed in the present investigation. The statistical
techniques which are used in the study are given below in brief:

Descriptive statistics is used to summarize variables in terms of central tendency and measures of
dispersion.
Reliability test is used to check the measurement error and ensure the goodness of data.
One-way ANOVA is utilized to find the gap on various factors based on independent variables.
All the statistical methods were carried out through the SPSS for Windows (version 18.0) and for calculation
and data preparation, MS-Excel 2007 was used.

DATA ANALYSIS AND INTERPRETATION


The survey data has been analysed with descriptive statistics and percentages and one-way ANOVA. The
results have been shown in tables and figures for better interpretation.

Table 2: Decision making on the product category parents vs. children


Parents
TV
Refrigerator
Home theatre
Car
Computer/Laptop
Vacation choice
Fruits/Vegetables
Toothpaste
Newspaper
Bread
Detergent/Soap

Mean
2.32
1.53
2.33
2.59
2.56
2.83
2.86
3.25
2.05
2.49
2.35

Children
St dev
0.80
0.79
1.04
0.99
0.92
0.88
1.01
1.12
0.99
1.04
0.99

Mean
2.71
1.72
2.10
2.93
2.36
2.75
2.48
3.13
2.17
2.49
2.20

Parent-Children
St dev
0.52
0.63
0.99
0.55
0.93
0.81
0.94
0.81
0.99
0.95
0.93

Mean
6.369
2.682
5.210
7.667
6.313
7.687
7.323
10.451
4.810
6.549
5.487

St dev
2.705
1.987
3.752
3.285
3.572
3.337
3.881
5.099
3.610
4.082
3.698

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Cereals
Bicycle
Hobby activity
Video games
CDs/DVDs
Ice Creams/Chocolates/Juice

3.50
4.03
3.61
4.14
3.76
4.23

0.96
0.82
0.89
0.75
0.98
0.81

3.12
4.19
3.41
3.58
3.63
3.80

1.02
0.45
1.12
1.09
0.82
0.76

11.287
16.908
12.528
15.046
13.903
16.067

5.227
3.859
5.562
5.763
5.314
4.599

This survey analysed the decision making by parents, children, Joint (parents and children) for various
products and services. The specifics of the same are as follows:

Parents decision making: The influence was found to be maximum in the purchase of a refrigerator
(with a mean score of 1.53). This was followed by newspaper and TV (with mean scores of 2.05 and
2.35, respectively). Home theatre and detergent/soap followed with mean scores of 2.33 and 2.35
respectively where parents decided on the purchase of the product.
Childrens decision making: The influence was found the maximum in case of purchase of the bicycle
(with a mean score of 4.19). This was followed by ice creams/chocolates/juice and CDs/DVDs (with
mean scores of 3.80 and 3.63, respectively). Video games and hobby activity followed with mean scores
0f 3.58 and 3.41, respectively were children decided on the purchase of the product.
Parent-children decision making: The influence was found the maximum in case of purchase of the
bicycle (with a mean score of 16.91). This was followed by ice creams/chocolates/juice and CDs/DVDs
(with mean scores of 16.067 and 15.046, respectively). Video games and hobby activities followed with
mean scores of 13.903 and 12.528 respectively. These were joint decisions by parents, and their children
made while purchasing the product.

Hypothesis-wise analysis: Parent decision making by ANOVA


Null Hypothesis: The influence of parents and children for purchase of various products (categories: high-value, lowvalue, & child-centred) are same.

Table 3: One-way ANOVA result

High
value
products

Low
value
products

Child centred
products

Mean

Std. Deviation

Sig.

Children

195

2.43

0.43

1.368

.243

Parents

195

2.36

0.70

Total

390

2.39

0.58

Children

195

2.60

0.69

4.648

.032*

Parents

195

2.75

0.71

Total

390

2.68

0.70

Children

195

3.72

0.64

14.883

.000*

Parents

195

3.95

0.54

Total

390

3.84

0.61

Rating scale score close to 1 is parent dominated and close to 5 is child dominated

High value products: Children respondents gave this category a mean score of 2.43 while the parents
gave this a mean score of 2.36. The ANOVA table shows the F value is 1.368, and the significance
value is 0.243. Since it is >0.05, the mean difference existing between parents and children for the
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purchase of high-value products is not statistically significant at the 5% level. Thus, the null hypothesis
is accepted.
Low value products: The children respondents gave this category a mean score of 2.60 while the parents
gave this a mean score of 2.75. The ANOVA table shows the F value is 4.648, and the significance
value is 0.032. Since it is <0.05, the mean difference existing between parents and children for the
purchase of low-value products is statistically significant at the 5% level. Thus, the null hypothesis is
rejected and alternate hypothesis is accepted.
Child centred products: The children respondents gave this category a mean score of 3.72 while the
parents gave this a mean score of 3.95. The ANOVA table shows the F value is 14.883, and the
significance value is 0.000. Since it is <0.05, the mean difference existing between parents and children
for the purchase of children-cantered products is statistically significant at the 5% level. Thus, the null
hypothesis is rejected and alternate hypothesis is accepted.
Hypothesis-wise analysis: Children from the family where both parents are working have more influence on
the family purchasing decisions than those of single, working parent.

Table 4: Two-way ANOVA: Working status and number of children on parentschildren Interaction score
Descriptive Statistics
Dependent variable: parents-child interaction score
Working Status

Number of children

Mean

Std. Deviation

Both parents working

Single child

6.23

2.11

90

Two children

6.53

2.16

49

Total

6.34

2.12

139

Single child

6.06

2.23

48

Two children

4.14

0.82

Total

5.78

2.19

56

Single child

6.17

2.14

138

Two children

6.19

2.19

57

Total

6.18

2.15

195

Single parents working

Total

From the above table, it is inferred that respondents from the category of single child and two children seem
to have a high score of 6.23 and 6.53 respectively on both working-parents when compared to single
working parents. Their means are 6.17 and 6.19 respectively. In total, both working parents seem to have
influenced the parents-children interaction score, that is, children are more predominant compared to single
parent working.

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Table 5: Two-way ANOVA: Parents Interaction Score by Working Status and


Number of children
Tests of Between-Subjects Effects
Dependent Variable: Parents-child interaction score
Source

Type III
Squares

Corrected Model

Sum

of

Df

Mean Square

Sig.

40.13

13.38

2.98

0.03

Intercept

2,972.92

2,972.92

662.30

0.00

Working status of parents

37.05

37.05

8.25

0.00

Number of children

14.81

14.81

3.30

0.07

Interaction (Working status * No of child)

27.45

27.45

6.12

0.01

Error

857.36

191

4.49

Total

8,342.00

195

Corrected Total

897.48

194

R square .045

In order to justify the outcome of the mean score, two ways ANOVA is employed. In this model,
independent variables are working status of parent and the number of children; dependent variable is the
parents-children interaction score. To know the effect of working status and number of children on parentschildren interaction as main effect and interaction effect two ways ANOVA is used and shown in the above
table. Since sig. value is significant in all categories i.e. Working status, number of children and interaction
(Working status * number of children) F value showed higher in the working status category on parentschildren interaction, i.e. 8.25. But the number of children F value is 3.30 and sig. value is >.05 it is not
statistically significant. However, the interaction effect showed sig. value is <.05, it is significant. R squared
indicating the explained variance of independent variables (working status of parent and Number of children
and dependent variable) is the parents-children interaction score is 4.5%.

Correlation and Regression


Here we have tried to test the hypothesis H3. The Pearson correlation test is employed in order to know the
relation between or among the variables. In this study, correlation is used to test the relation between
parameters (X1: Family income, X2: Family type and X3: Number of children) based on the dependent
variable (Y: Children influence).
The outcome of the test ranges between -1 to 1. From table 6, out of 3 independent variables, X1 has highest
relation with Y and significant at minimum 5% level. Hence linear regression has to be tested. Remaining
two variables are showing neither relation nor significance. Hence other regression methods have to be
estimated.

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Table 6: Correlation Score


Pearson Correlation
Sig. (1-tailed)
N

Family income
.155
.015
195

Family type
.045
.267
195

Number of children
.031
.333
195

Table 7: Model Summary and Parameter Estimates

Family
Income
Family
Type
Number of
children

Equation

Model summary
R square
F

df1

df2

Sig.

Parameter estimates
Constant
b1

Linear
Quadratic
Linear
Quadratic
Linear
Quadratic

.024
.142
.002
.002
.001
.

1
2
1
1
1
.

193
192
193
193
193
.

.030
.000
.533
.533
.666
.

90.496
128.848
93.756
95.622
98.068
.000

4.777
15.938
.390
.390
.187
.

2.439
-32.495
2.799
.000
.896
.000

b2

6.418
.933
.000

Regression analysis was used to find the effect of independent variables on the dependent variable. The
results of the analysis are shown in the model summary table 7. For family income, it is seen from the table
that the R square (goodness to fit) is 14.2 %. The R square of the quadratic relation (14.2%) is better than
linear relation (2.4%) and hence the quadratic relation exists between family income and the dependent
variable. For remaining two variables (X2: Family Type and X3: Number of children), neither showing any
relations (quadratic relation and linear relation) nor significance.
Hence dependent variable Y can be expressed in terms of X1: Family income as
Y = a (128.848) + b1 (-32.495)* X1 + b2 (6.418)* X12

(1)

Figure 5: Graph of Y (children influence) in terms of X1 (Family income)

From Fig.4, the influence decreases till the family income 3 lakh and after that influence increases. As
family income starts increasing, the influence of children on family decision making increases.
Hence, statistically there is no linear relation between children influence and family income, family type and
the number of children, although the quadratic relation exists between children influence and family income.

SUMMARY AND CONCLUSION


Major findings of the study

Table 2 indicates that for products like refrigerator, newspaper and TV, home theatre and
detergent/soap, which are used by the entire family, parents take a major decision to buy these products.
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Table 2 indicates that for products like bicycle, ice creams/chocolates/juice and CDs/DVDs, video
games and hobby activity, both children and parents believe that children have been influenced more in
purchasing these products.
Table 2 indicates that the combined influence of parent and children is maximum for products like
bicycle, ice creams/chocolates/juice and CDs/DVDs.
For high value products, parents influence more than children in purchase decisions.
For low value and child centric products, children influence more than parents.
Children have more influence in the families where both parents work, when compared to families
where only one parent works.
Child's influence depends on family income as quadratic equation.
Child's influence does not depend on family type and number of children.

SUGGESTIONS
This study has different implications for marketers, parents and children. For all three of them there is a
clear indication that children influence exists, although it depends on various other factors. Based on the
findings the suggestions are as follows:

The bicycle is mostly influenced by children irrespective of different family type or employment status
or family income.
Higher value products like TV and car are also getting children attention across different families
irrespective of income and number of working members.
Marketers should advertise for products during the childs viewing hours and not traditional business
hours. To find about the TV viewing habits, a detailed investigation is essential.

SUGGESTIONS FOR FURTHER STUDY

Influence of children on other products and services needs to be studied.


Western literature has given a broad insight of family influences in childrens behaviour. The literature
has focused only on fatherchild or mother-child relationship. The influences of siblings would give a
broader picture and deeper understanding of family influences in children purchase decision. Hence,
further research required in this area.
Further research should also be carried out on indirect influence children would have on family
purchase decision. This would help to understand the family as a socialisation agent in more detail.
There seems to be no research on which brands influence childs purchase decision. Further research
should be done on childrens awareness of the brand and what particular element persuaded them to
purchase that particular brand.

CONCLUSION
The children influence is analysed from various aspects. The low/high-value products as well as directly
used by children are taken for the study. For low value products and products directly used by children, it is
mostly decided by children themselves. The descending order of influence for products are Bicycle, Ice
Creams/Chocolates/Juice, CDs/DVDs, Video games, Hobby activity, Toothpaste, Cereals, Car, Vacation
choice and TV.
The children are the centre of attraction in any family irrespective of country and culture. They have been
participating in all activities of the family. In the same way, they have been voicing their opinion for
purchase of various products. Products directly used by children are mostly decided by children themselves.
There are few family products where children influence is observed higher.

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A Study on Consumer Satisfaction at Unorganized Retail Food Outlets


in Indore city
Dr. Rajeev K. Shukla
Professor,
Shri Vaishnav Institute of Technology and
Science, Indore (M.P.)

Prof. Pradeep Bhatt


Faculty,
Shri Vaishnav School of Business
Management, SVITS, Indore

Prof.Amiya Shukla
Faculty,
Shri Vaishnav School of Business
Management, SVITS,Indore

Abstract
Demand of prepared food significantly increased in recent time due to time concern and test of the food.
The satisfaction is in the food industry not depending only on the test of the food but consciousness of
healthiness, cleanliness and way of offering services are becoming more important issues at food outlets.
Food related services like food quality & variety, ambiance at food outlet, proper sitting arrangements,
parking facilities all such factors have highly influenced on consumers visiting decision to food outlet. The
present study analyzes the consumers food satisfaction level and revealed the consumers perception towards
important product attributes and service offerings of selected Food Outlets and Tiffin centers in Indore city
of Madhyapradesh.
Findings of the study revealed that consumers at unorganized food outlets have major concerns for quality of
foods, pricing, parking facility and cleanliness at food outlets. It was revealed that consumers at unorganized
food outlets have limited concerns about the billing facility and kids entertainment facility is very important
influencing factors for those who visit with their children. Findings of the study would help the unorganized
food outlets in formulating competitive product and service strategies aimed at providing higher level of
consumer satisfaction, thus increasing their market and profit share.
Key words Food Outlets, Customer Satisfaction, Service Offerings, Location, Ambience

Introduction
After education, it is the Food and Beverage (F&B) industry that consumes the maximum share of
disposable incomes in India. Moreover, with three-fourth of population being young, India is emerging
as one of the fastest growing fast food markets in the world. According to the National Restaurant
Association of India (NRAI) 2010 report, the fast food industry in India is currently estimated at Rs
8,000 crore and is growing at a CAGR of 35 to 40.
India is the second largest producer of food and holds the potential to be the biggest on global food and
agriculture canvas, according to a Corporate Catalyst India (CCI) survey. The food industry in India
comprises the food production industry and the food processing industry. The food processing industry is
one of the largest in India it is ranked fifth in terms of production, consumption, export and expected
growth. The Indian food industry is projected to grow by US$ 100 billion to US$ 300 billion by 2015,
according to a report by a leading industry body and Technopak. The industry, estimated at US$ 200 billion
in 2006-07, is projected to reach US$ 300 billion by 2015. During the period, the share of processed food in
value terms is expected to increase from 43 per cent to 50 per cent. There are 85,000 bakery units, of which
75,000 operate in unorganized sector occupying 65% of the market share. Bread production is estimated to
be 3.75 million tonnes p.a. which would be worth approximately Rs. 4500 Cr. of which 55 % is contributed
by the organized sector. The growth rate for the last 5 years is around 6 % (by volume).
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Change in life style, spending pattern and higher disposable incomes are key drivers for increasing share of
food outlets. Unorganized food outlets are the part of that industry. In India unorganized food outlets have
very large amount of their servings. They deal in the all type of food whether it is from India or any foreign
culture. We can found unorganized food outlets anywhere, like; at the square, on any street, or any place of
the city. The availability of such outlets in variant formats is increasing day by day.
Consumer Food Satisfaction is very important term in the food industry. It covers all the aspects of industry
which relate consumer. In the industry perception of consumer is not only stick on taking food for hunger; it
is now become tasteful, qualitative, services, the way of providing that product. Competition is the now
playing very crucial role and it becomes necessary to gauge the preferences of consumers for the successful
operation of unorganized food outlet. The present study is about the food industry which deals in ready to
eat food and related services. In Indore, there is large number of organization who is providing food
facility. Some of food outlets like APNA SWEETS, HOTEL GURUKRIPA, 56 DUKAN etc and many
Tiffin centers are very famous and they are providing lot of facility to satisfy their customer.

Brief Review of Literature


Hanson (2002) concluded in his study that the shortened lunch hours and the fast pace of life have forced
people to find quicker meal solutions. Due to this, the fast food industry has developed rapidly.
Park (2004), in his study, made it very clear that consumers eat outside to save their time, satisfy their
hunger, for pleasure, to transform their moods and for social interaction. Anita (2007) found that Indian
consumers are passionate about FFOs as they offer fun and change. She identified the three important
dimensionsproduct, service delivery and quality dimensionwhich significantly influence the consumers.
Consumers gave more weight age for taste and quality, followed by hygiene and ambience.
A study by Agnes et al. (2004) revealed that the waiting time, staff attitude, food quality and variety
significantly influence and affect customer satisfaction. Cuma et al. 2007 found that the price of the fast
food, health issues, preference of kids, and other demographic variables, such as income, age, size of the
house hold, considerably influence the frequency of consuming fast food. Jacobs, Latham, & Lee (1998),
have studied that customer-company relationship is based on a continuum wherein both "always-a-share"
and "lost-for-good" relationships occupy the two extremes of the continuum. In an "always-a-share"
relationship, transactions are arms-length and discreet. Customers are valuable and at the same time,
replaceable. On the other hand, in a "lost-for-good" relationship, the probability that the customer will
purchase again from the same company is extremely low when the customer decides to terminate the use of
a product due to product defects or problems.
According to Rust, Subramanian and Wells (1992), customer satisfaction brings many benefits as satisfied
customers are not very price sensitive, buy additional products, are less influenced by competitors and stay
loyal longer. They also stated that customer satisfaction has been deemed directly to affect customer
retention and companies market share.

Objective of the Study


The primary objective of the study was to gauge consumers preferences towards selected food outlets.
The sub objectives were:

To identify key factors that influences consumer preferences towards unorganized food outlets.
To know the food preferences of consumers visiting the food outlets.
To study the differentiating perception of consumers for selected food outlets.

Research Methodology
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Research Type - The nature of research work was Descriptive in nature.
Sampling Type - Convenience sampling (Non Probabilistic) was used for the study.
Sample Size -

Data collected from 300 respondents of food outlets of Indore city.

Sampling Unit -

Visitors of selected food outlets and Tiffin centers were considered as


sampling unit for the study.

Area of Research - The study was limited to the respondents from the Indore city.
Data Collection
Secondary Data - Books, internet websites, magazines, journals etc are used as source of secondary data
collection.

Primary Data - Primary data for the study was collected through self structured questionnaire comprising
of 25 items. Reliability of questionnaire checked with the help of Cronbacks alpha coefficient, alpha value
was 0.764. Validity of questionnaire checked with the help of expert in the field. Customer satisfaction
survey was conducted during the period from 20/05/2012 to 05/06/2012. The questionnaire feeling
technique was used for 300 customers of selected unorganized food outlets in Indore city. The customer of
food outlets were selected randomly for this purpose and result were concluded as per the objectives of this
research.

Tools For Data Analysis - Mean, Standard Deviation and Frequency distribution methods were used for
data analysis.

Results and Discussions


Table A: Age Profile of the Respondents
Valid

up to 20 yrs
20-35 yrs
35-50 yrs
> 50 yrs
Total

Frequency
53
217
26
4
300

Percent
17.7
72.3
8.7
1.3
100.0

Cumulative Percent
17.7
90.0
98.7
100.0

Table A shows that major visitor of food outlets were between the ages of 20 to 35 year they were 72.3% of
the total sample. Up to 20 years age group were 17.7% and 35-50 years age group were 8.7%.
Table B: Income Profile of the Respondents
Valid

up to 10000
10000-20000
20000-30000
> 30000
Total

Frequency
40
82
106
72
300

Percent
13.3
27.3
35.3
24.0
100.0

Cumulative Percent
13.3
40.7
76.0
100.0

This Table B exhibits that respondents in the income group of up to 10000/- were just 13.3%. Where
income group 20000/- to 30000/- were 35.3%. On the other hand 10000/- to 20000/- and more then 30000/income group of the respondents were 27.3% and 24% respectively.

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TABLE: C Occupation Profile of the Respondents
Frequency
Valid

Self emplouyed
Govt employee
Pvt employee
Student
Others
Total

Percent
42
15
77
145
21
300

Cumulative Percent
14.0
5.0
25.7
48.3
7.0
100.0

14.0
19.0
44.7
93.0
100.0

Table C indicates that major visitors at food outlets are students (48.3%). Where Pvt. Employee was 25.7%
and Self employed were 14%. Govt. employee and others were just 5% and 7% respectively.
TABLE: D Food Outlets Form Where Data Were Collected
Valid

Tiffin Center
Apna Sweets
Hotel Gurukripa
56 Dukan
Total

Frequency
80
72
76
72
300

Percent
26.7
24.0
25.3
24.0
100.0

Cumulative Percent
26.7
50.7
76.0
100.0

Table D shows that all four different food outlets have approximately equal no. of consumers, who were the
respondents of the study.
TABLE: E Source of Information
Valid

word of mouth
Radio
News paper magazines
Hoardings
Total

Frequency
211
20
27
42
300

Percent
70.3
6.7
9.0
14.0
100.0

Cumulative Percent
70.3
77.0
86.0
100.0

Table E indicates that consumers of food outlets mostly get information through word of mouth (70.3%).
Hoardings contribute 14% to keep consumers inform about the outlet. Radio and News Paper & magazines
just contribute 6.7% and 9% respectively.

Table:F Overall Mean and Standard Deviation of Consumer preferences


Promotional activities of Food outlets influence my visit decision
Prices charged at Food outlets influence my visit decision
Location of Food outlets influence my visit decision
Quality of meal served at Food Outlets influence my visit decision
Ambience at Food Outlets influence my visit decision
Cleanliness at Food Outlets influence my visit decision
Variety of meals offered at Food Outlets influence my visit decision
Taste difference in meals served at Food Outlets influence my visit decision
The way of offering services at Food Outlets influence my visit decision
Polite, helpful & attentive staffs at Food Outlets influence my visit decision
Prompt services offered by Food Outlets influence my visit decision
Attention to customer complaints at Food Outlets influence my visit decision
Interiors of Food Outlets influence my visit decision
Waiting facility available at Food Outlets influence my visit decision
Parking facility available at Food Outlets influence my visit decision
Billing facility available at Retail Food Outlets influence my visit decision
Seating arrangements available at Food Outlets influence my visit decision
Kids entertainment facility at Food Outlets influence my visit decision

Mean
3.57
3.48
3.89
4.23
4.00
4.28
4.12
4.12
3.99
3.96
3.84
3.79
3.69
3.68
3.84
3.75
3.91
3.22

Standard Deviation
.949
1.01
.87
.68
.76
.77
.75
.73
.73
.85
.77
.87
.91
.90
.90
.82
.86
2.09

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Findings of the Table F can be interpreted as

Consumers at Unorganized food outlets were almost agreed that promotional activities helped them
in their visiting decision to retail outlets and consumers were found to be consistent in their opinion.
It was observed that Price charged at food outlets was not considered as very important factor by the
consumers. However, respondents were not consistent in their opinion. It indicated that price might
be considered as an important factor by some of the consumers in making their visit decision to
retail food outlets and it may not be an important factor for some others.
Consumers moreover agreed that Location of Food outlets influences their visit decision.
Quality was considered as major factor by almost all the respondents that it influences their visit
decision to any food outlet.
It was also found that consumers at food outlets were agreed that the ambience of food outlets
influences their visiting decision and the respondents were consistent in their opinion.
Cleanliness was also considered as major factor by almost all the respondents that it influences their
visit decision to any food outlet.
Consumers have concerns about the variety of food offered at food outlet to visit any food outlet.
And the consumers were consistent in their opinion.
Test difference in served food at outlets also influences the visiting decision to any food outlets by
the consumers. And the consumers are more consistent with their opinion.
Consumers were agreed that the way of offering the services at food outlets influences their visiting
decision
Consumers were agreed that Polite, helpful & attentive staffs at Food Outlets influences their visit
decision to food outlet.
It was observed that Prompt services offered at Food Outlets influences consumers visit decision.
And the consumers are consistent with their opinion.
Consumers have shown less concern for the interiors of food outlets when they visit the food outlet.
However, the consumers are not as consistent with their opinion. It indicate that some consumers
may be influenced by the interiors of food outlets
It was found that waiting facility available at food outlets makes less concern for the consumers in
visiting any food outlet. However, the consumers are not as consistent with their opinion.
Consumers shown concerned for parking facility available at food outlets for visiting the food outlet.
However, the consumers are not consistent with their opinion.
It was found that seating arrangements available at food outlets have concern of consumers for
influencing their visit decision. However, the consumers were not consistent in their opinion.
Consumers have shown relatively less concern for the availability of kids entertainment facility at
Food Outlets for their visiting decision. However respondents were found to be highly inconsistent
in their opinion. It revealed that it is a very important issue for the visitor having children where as
the unmarried visitors were least concern for this.

Conclusion
It was found that consumers at unorganized food outlets have major concern of quality and cleanliness
available provided by food outlets. Price and promotion is another factor of which consumers have shown
the importance that helps them in taking visit decision. Study also found that consumers at unorganized food
outlets have limited concerns about the billing facility and kids entertainment facility is very important
influencing factors for those who visit with their children.
Findings of the study has re-instated the fact that Quality and variety of food with good price is not a fad but
a long term reality that directly affects the satisfaction level of consumers. The finding of the research
revealed that Consumers visiting unorganized food outlet considers variety and quality of food as basic
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requirement for visiting the outlets, quality means not just good services but cost effective and efficient
services.

REFERENCE:
1.

Anita Goyal, N.P. Singh, (2007) "Consumer perception about fast food in India: an exploratory study", British Food Journal, Vol. 109 Iss: 2,
pp.182 195.
2. Agnes K.Y, Law, Y.V. Hui and Xiande Zhao (2004), "Modeling repurchase frequency and customer satisfaction for fast food outlets",
International Journal of Quality & Reliability Management, Vol. 21, No. 5, pp. 545-563.
3. Cuma AKBAY, Gulgun (YILDIZ) TIRYAKI, and Aykut GUL. "Consumer characteristics influencing fast food consumption in Turkey"
Food Control 18 (2007): 904-913.
4. Hanson & Chong Xiang, 2002. "The Home Market Effect and Bilateral Trade Patterns," NBER Working Papers 9076, National Bureau of
Economic Research, Inc.
5. Jacobs, Latham, & Lee (1998), The Relationship of Customer Satisfaction to Strategic Decisions, Journal of Managerial Issues, 1092),
165-174.
6. Kotler,Keller,Koshy,Jha, Marketing Management A South Asian Perspective, Pearson, 13th Edition, 2008.
7. Park, C. (2004). Consumer values of eating-out and fast restaurant consumption in Korea. International Journal of Hospitality
Management, 23, pp 8794.
8. Rust, R. T., Subramanian, B. and Wells, M., 1992. Making complaints a management tool. Marketing Management 1 (3), 41- 45.
9. William G. Zikmund, Business Research Methods, 7th edi. Cengage Learning, India.
10. www.marketing-trends-congress.com/2007_cp/Materiali/Paper/Fr/Hansen.pdf
11. http://www.ibef.org/industry/foodindustry.aspx

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Behaviour of Indian Currency - The Rupee in past and a year


ahead
Poorva Sakergayen
Asst. Professor, Dept. of Maangement
Sagar Institute of Research, Technology & Science
Bhopal (M.P.)

Abstract
Money is not an organic creature but its value keeps changing with the society and its economic
conditions. One rupee in 1947 is not the same as one rupee today, both in terms of appearance and
purchasing power. The value of a country's currency is linked with its economic conditions and
policies. This paper throws light on the behavior of The Indian Currency i.e. Rupee. In the past year, many
activities have been noticed at international level and some how it affected the rupee value as well. This
paper covers the reasons of downfall of rupee in the past year and the movement which can be expected in
current and future years..

Introduction
Money is the value assigned to a commodity, a piece of paper, a coin or electronic data (think online
banking and credit cards). It can be of different types-commodity money, representative money, fiat money
and commercial bank money. Gold coins, cocoa beans, cattle or anything that has a value of its own and is
used as a medium of exchange is commodity money. The use of commodity money is similar to barter,
except that the commodity used is widely accepted and can be easily handled. Representative money is
token coins and notes that can be exchanged for a fixed amount of precious metals or other commodities. In
contrast, fiat money's value is imposed by the government, which makes refusal of payments made in the
notified legal tender, in the form of currency notes and coins, illegal.
The value of a currency depends on factors that affect the economy such as imports and exports, inflation,
employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange
reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices and
geopolitical conditions.
Income levels influence currencies through consumer spending. When incomes increase, people spend more.
Higher demand for imported goods increases demand for foreign currencies and, thus, weakens the local
currency.
Balance of payments, which comprises trade balance (net inflow/outflow of money) and flow of capital, also
affects the value of a country's currency.A country that sells more goods and services in overseas markets
than it buys from them, has a trade surplus. This means more foreign currency comes into the country than
what is paid for imports. This strengthens the local currency, Another factor is the difference in interest rates
between countries. Let us consider the recent RBI move to deregulate interest rates on savings deposits and
fixed deposits held by non-resident Indians (NRIs). The move was part of a series of steps to stem the fall in
the rupee. By allowing banks to increase rates on NRI rupee accounts and bring them on a par with domestic
term deposit rates, the RBI expects fund inflows from NRIs, triggering a rise in demand for rupees and an
increase in the value of the local currency The RBI also fixes the statutory liquidity ratio, that is, the
proportion of money banks have to invest in government bonds, and the repo rate, at which it lends to banks.
While an increase in interest rates makes a currency expensive, changes in cash reserve and statutory
liquidity ratios increase or decrease the quantity of money available, impacting its value.

Rupee Appreciation & Depreciation 2012-2013


The rupee has been falling of late raising questions as to where will it eventually go? The rupee has been
weak right since the financial year began, which was to begin with more on account of the policies
announced relating to retrospective taxation and GAAR (General Anti Avoidance Rule).
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However, once clarity was brought in, there was a tendency for the rupee to stabilize at a stronger range in
September and October as foreign funds flowed in, which was helped further by the positive sentiment
unleashed by the policy announcements of the government relating to FDI. In November, the rupee has
fallen, and while uncertainty relating to the USA elections did play a role, the fundamentals internally are
not that strong.

Rupee Movement
The rupee has been falling since April and was stable in July-August (Graph 1), before strengthening in
September and October, after which it has declined. The decline on a point to point basis is however high at
8.2%.

(Source: www.exchange-rates.org)
Rupee Exchange Rate 2013
Besides sentiment, which is difficult to quantify, the exchange rate is driven by basic forces of and demand
and supply for foreign exchange or dollars as well as extraneous international forces
such as the
movement in the dollar vis-a-vis the euro.

The euro- dollar impact


One factor that affects the exchange rate is the developments in the dollar-euro rates (Graph 2). The graph
below shows, as the dollar rose against the euro till July, the rupee declined. As the dollar declined
subsequently, the rupee recovered till around October. In November however, with the dollar declining, the
rupee also fell indicating

(Source: www.exchange-rates.org)
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Cause of Rupee Depreciation


The FII factor
FII inflows have declined by $ 82 mn in November (up to 20th), which can be directly related to the falling
rupee in recent times. This was primarily due to net outflows of $ 580 mn in equity while debt inflows were
positive at $ 498 mn. Quite clearly the state of flux in the international markets has affected the flow of
funds. On a monthly basis, it can be observed from Graph 3 below that the period of rupee depreciation was
also the phase when the FII inflows were weak, which were primarily on account of the uncertainty on the
tax issues. Their heightened flows subsequently did help to firm up the rupee.

(Source: RBI)

ECBs (External Commercial Borrowings)


ECB approvals (which would translate into flows in the course of the year) have been at the same level
in the first half of the year at around $ 18 bn. This has lent a modicum of stability to the forex capital
inflows.
Foriegn Direct Investment
FDI flows during the first 5 months of the year were much lower at $ 8.2 bn as against $ 20.6 bn last
year. This has been one of the negative factors which have driven the rupee down in terms of lower
supply of dollars.

Six main reasons for the steady slump in the value of India's currency:
Huge Trade Deficit
Since India imports more goods (in value terms) than it exports, it results in a huge imbalance in trade, or
what is called a trade deficit. In the financial year ending March 2012, the deficit zoomed to $185bn
(118bn) compared with the original estimate of $160bn. India's Commerce Secretary Rahul Khullar has
predicted that the trade deficit may be slightly lower in 2012-13, due to falling global crude prices and recent
government curbs on gold imports. A $1 per barrel decrease in crude price reduces the country's deficit by
$900m at existing import volumes.
Lower Capital Inflows
Although India has become an attractive destination which can woo foreign capital as well as money from
non-resident citizens, it is not enough to make up for the trade deficit. In 2011-12, India received foreign
direct investment of more than $30bn, in addition to a net inflow of $18bn from foreign institutional
investors in stocks and bonds. But uncertainty about India's commitment to economic reforms, retrospective
taxes, and policy paralysis within the government have forced foreigners to either postpone their investment
decisions, or take money out of Indian stock markets.
High Current Account Deficit
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The country's current account deficit - a broader measure of the trade deficit - has also ballooned due to the
above reasons. In 2011-12, this deficit was more than $74bn, a huge jump from less than $46bn a year ago.
In 2012-13, it may be even higher at $77bn.The result is that India's foreign exchange reserves have dropped
from a peak of $320bn in September 2011 to $290bn now.
Devaluation Pressure
In such a situation, more people tend to sell rupees to buy dollars (or any other foreign currency that they
require).Importers scamper for dollars to cater for their needs to buy goods abroad. Exporters cannot bring in
enough dollars; in fact, they keep their foreign earnings abroad as they expect the rupee to fall further.
Meanwhile, foreign investors increase the demand for dollars as they convert their rupee assets into dollars
to take their money out. This demand-supply gap between the dollar and the rupee leads to devaluation.
Low Growth and High Inflation
This trend is accentuated by low growth and high inflation in India. After annual economic growth of nearly
9% in 2009-10 and 2010-11, the country is likely to grow at 6.5% in 2011-12.The expectations for 2012-13
are not too encouraging. Couple this with high inflation due to high food and fuel prices. The rate of
inflation may rise this year to double digits if the government is unable to curb its fiscal deficit. In this
scenario, most foreigners as well as Indians tend to take money abroad, or keep it away from India. Global
investors are also nervous about investing abroad in nations such as India due to the economic crisis in their
respective countries. That has added further selling pressure on the rupee.
Rupee Speculation
The Reserve Bank of India's bid to sell dollars in the open market to restrict the rupee slide has failed in the
past few weeks and months.Once currency traders and speculators realize that India's central bank is unable
to manage its exchange rate, and reduce the adverse impact on its currency, they may enter the market in a
big way to sell the rupee.As a result, the rupee may devalue more than it should.Experts, who a few weeks
ago predicted that the Indian currency might stabilize at 55 rupees to the dollar, now say this may happen at
60 rupees.

Future outlook for Rupee in 2013

Trade deficit will widen as exports will be subdued given low growth in two major regions: Euro and
USA. The fiscal cliff in USA and austerity in euro region may slowdown growth in 2012 and early
2013. The current account balance will be under pressure and would be in the region of 3.7-3.8% of
GDP for the year provided oil prices do not raise sharply.
Oil imports have increased despite stable prices meaning thereby that demand has increased,
which will pressurize the trade balance. The Gaza crisis and its resolution would hold the key
here.
FII inflows may be expected to continue and the passage of certain bills in the winter session of
the Parliament could stabilize these flows.
ECB flows could help to get in the dollars and RBI policy on the same will be useful especially in a
situation where global interest rates will be attractive. However forex risk will be an important factor
here.
FDI will continue to be weak this year as outflows from the developed world would be low given
the economic conditions. FII funds will have to compensate for the same.
Sentiment would play a role in two ways:
Changes in policies and economic numbers would work in the short run.
RBI action will be critical. As of now the RBI has maintained that it will intervene only in case
there is extreme volatility.
On the whole it is expected that the capital flows will help to cover the current account deficit and the
rupee will remain in the range of Rs 54-56/$ for most part of the year. The deviations would be only
temporary in either direction. Looking at the forex derivative markets, the December contract is in the
range of Rs 55-55.50/$ while that for March is around Rs 56. It may be conjectured that the market too
is looking at a similar range.
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Conclusion
In this scenario, it says that although the pressure on current account will ease to some extent, due to lower
global crude oil prices and declining gold imports, muted foreign inflows will maintain the depreciation
pressure on the rupee.
Vulnerability of the rupee arises from a widening current account deficit, declining import cover of
foreign exchange reserves, a high private corporate debt servicing burden and slower growth. The shock
element as yet, however, is less severe this time than in 2008-09 as a global crisis of the magnitude of
Lehman episode (which triggered huge capital outflows) has been avoided so far, the report states.
Higher the vulnerability, greater is the impact of a shock on the currency. Even a lower shock, therefore,
resulted in swift depreciation of currency in the last few months, it cites.

References

Johri Devika, Miller mark. Devaluation of the Rupee: Tale of Two Years, 1966 and 1991. State, Market & Economy 84-90
Aggarwal Anmol. Rupee Depreciation: Probable Causes and Outlook. STCI Primary Dealer Ltd 21 Dec 2011:1-9
Sumanjeet Singh (2009). Depreciation of the Indian Currency: Implications for the Indian Economy. AIUB Bus Econ Working Paper Series,
No 2009-04,
Swati Bhatt (2011). Big dangers from a declining rupee. The NEW York timesUnited Nations Conference on Trade and Development
(UNCTAD), Economic Development in Africa Report 2010
Due, P., Sen, P. (2006) Capital flow Volatility and Exchange Rates: The Case of India Central for
Development Economics, Department of Economics, Delhi School of Economics. (Working
Paper No. 144).
Edwards, S. (2001) Exchange Rate Regimes, Capital Inflows and Crisis Prevention, NBER and
University of California (Working Paper).
Harberger, A. (2004), Economic Adjustment and the Real Exchange Rate, in S. Edwards and
L.Ahamed (eds.), Economic Adjustment Exchange Rates in Developing Countries, University of Chicago Press, 10, 308-321.

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TELEVISION AS AN ADVERTISING MEDIA IN SHAPING


CONSUMER BEHAVIOR
Ms. Priyanka Rawal
Assistant Professor
Institute of Professional Education & Research
Bhopal (M.P.)

ABSTRACT
In the modern era the main purpose of marketing is not finding and persuading people to buy what a
company produces, but satisfying the consumer, which is the quintessence of consumer orientation.
Identifying the communication pathways which influence consumer behaviour is an essential marketing
communications activity, the ultimate goal being the creation of marketing messages to reach target
audiences through the most appropriate channels. With an increase in global competition, technological
advances, and fast informed customers, it is important for businesses to make a powerful impact on target
audiences and markets. An advertisement plays an imperative role in the marketing of products as it
provides a buying power for various product operations by affecting the behaviour of consumers. The
influence of media on consumer behaviour is profound where billions of dollars are spent in advertising each
year indicate to the impact of media on consumer purchasing and buying preferences. Media use in
advertising is purposely designed to elicit a change in consumer action, belief and perception and is a part of
our daily lives that we don't even realize it's influencing us in many ways. Media unabashedly woos us to
purchase products we don't need and trust wholly with product claims that are exaggerated. Television
advertising offers the advantage of reaching large numbers in a single exposure and even today has its
relevance in consumer decision making.
Keywords: Media, Consumer behaviour, Television advertising, brand, Communication.

TELEVISION AS A MEDIUM OF ADVERTISING IN INDIA


Advertising was originated from a Latin word advertire which means to turn to. Advertising is an
impersonal communication of messages on the subject of ideas, products and services from manufacturers,
wholesalers and retailers to a targeted group of existing and potential customers, with a view to educate and
influence them to take action in a manner desired by the sponsor of the message. Advertising has been
promising great importance as the powerful tool on the marketing of goods and services by both the
industrial and non- industrialized nations.
Television plays a foremost role in the flow of information and is equipped with the command to persuade
people, their opinions and their beliefs. Being a medium that is visual , its impact transcends the social and
educational background of its audience; more so, in a country like India, which is very diverse television
still dominates the Media & Entertainment landscape as the favoured choice of entertainment. Television has
now become an important source of entertainment, news and views to public both literate and illiterate,
living in cities and villages and young and old. Due to its greater flexibility in designing the advertising
copy, wide coverage and appeal to the customers, television has become a significant media of advertising.
Television is used extensively by manufacturers of consumer products to advertise their products & services
offering extra benefit of greater flexibility in designing and reaching consumers over newspapers. Being
mainly a source of entertainment, television is watched by literate as well illiterate people and hence has a
wider reach than other media forms. It is more flexible as the advertisement can make use of more features
than newspapers and radio .Time of advertising can also be decided in such a way that the advertisement is
watched by the utmost number of people. Television like newspaper is not appropriate for advertising
industrial products or products used by special categories of people such as doctors, players, and lawyers
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etc. The boom in electronic media commenced with the introduction of colour transmission of television in
the year 1984 to coincide with the Asian games hosted by India.
Television is often called "king" of the advertising media, since a majority of people spend more hours
watching TV per day than any other medium as it combines the use of sight, color, sound and motion which
works in arousing interest among viewers. TV has proven its influential power in influencing human
behavior time and time again along with being the "king" of advertising costs. The Internet may snatch all of
the attention these days, but Television is still the media king. For small businesses, however, the barriers to
using TV ads can be discouraging; airtime can be very costly, and good commercials are difficult and pricey
to create.

PROS AND CONS OF TELEVISION ADVERTISING


When you advertise on TV, your commercial is not only competing with other commercials, but is also in
competition with the other elements in the viewer's environment as well. The viewer may choose to get a
snack during the commercial break, go to the washroom or have a conversation about what they just saw on
the show they were watching. Even if your commercial is being aired, viewers may never notice it unless it
is creative enough to capture their attention. This is the reason why it becomes extremely important to
consider the kind of commercial you are going to create and how you want your audience to be affected.
With proper research, you can tailor your ad campaigns to reach a targeted audiences, or even new
audiences. Though television advertising can prove extremely effective, much depends on the quality,
frequency and airing time of advertisements Consumers, especially younger ones like teens, seem to turn
more to substitute sources of entertainment, such as MP3 players or watching shows online. With people
watching traditional television less often, fewer people will view your Television ad and thus there is a
growing need for making television ad campaigns more creative and engaging as compared to other Medias.
Advertisers should spend money on a good commercial in the beginning so that it will pay dividends in the
end. Television reaches very large and has the following consequences:
Advertising on television can give a product or service instant validity and prominence as compared

to other media vehicles.


Television ads can be targeted upon a varied customer base as per program timings. Children can be

reached during cartoon programming; working class can be targeted during later hours of the day
once they are back from their work place and on weekends, housewives during the afternoon soap
operas and farmers during the morning agricultural reports.
TV offers the greatest possibility for creative advertising. With a camera, you can take your
audience anywhere and show them almost anything they want to visualize. With the features of both
audibility and visibility Television ads create a very strong impression in the viewers.
The "Show and Tell" Effect: Advertisements aired on small screen allows you to show and tell a
broad audience about your business, product, or service being offered. While both online and print
media offer some of the same advantages, TV advertising still offers the best way to tell your brand
story in an engaging, consumer-friendly manner. In advertising, it often takes multiple touch points
to influence consumers' purchasing behavior and through Television ads it is easier to accomplish
that quickly, converting more potential buyers into paying customers
TV Reaches a Bigger Audience: TV reaches a much larger audience than local newspapers and
radio stations, during a short span of time. The increasing number of cable TV channels offers a
chance to purchase lower-cost ads that still reach specific demographic groups. Whether your
business needs to reach young people, children, senior citizens, women that can be working of
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housewives, or even minority communities, chances are there are channels that are a good fit for
your advertisements.
TV Adds Instant Credibility: TV commercials allow you to convey your message with picture,
resonance, and movement, all of which can combine to provide your business a big dose of instant
credibility. It is the fact that a Television ad that has been cleverly copyrighted can actually take on a
life of its own, particularly when combined with social media tools such as Twitter, Face book and
YouTube.
TV Adds Personality: If your brand wants to get a strong connect with your customers Television
ads give you an opportunity to be creative and to give your business a real sense of personality
which in turn builds a loyal consumers that keeps coming back for more.

AN INTRODUCTION TO CONSUMER BEHAVIOUR


In the marketing context, the term consumer along with the act of purchase itself also refers to the patterns
of aggregate buying which include pre-purchase and post-purchase actions. Growing awareness of a need or
want, and a search for and evaluation of information about the products and brands that might satisfy it
consists of pre-purchase activity. Post-purchase activities include the assessment of the purchased item in
use and the diminution of any anxiety which accompanies the purchase of high-priced and infrequentlybought items.
Consumer behaviour involves the psychosomatic processes that consumers go through in recognizing their
needs, finding ways to solve those needs, deciding whether to purchase a product or not, understand and
gathering information, and lastly leading to a purchase decision. Consumer behaviour can be defined as the
behaviour of consumers in deciding to buy or not to buy a product, to dispose it or not those products which
satisfy their needs (Schiffman and Kanuk, 1995, Chunawalla, 2000,).Understanding consumer Behaviour
and knowing customers are never simple as they may state their needs and wants but act otherwise. They
may not be in touch with their deeper motivations and may respond to influences that change their mind at
the last minute. Nevertheless, marketers must study their target customers wants, perceptions, preferences,
and buying behaviour. Studying consumers provides clues for developing new products, product features,
prices, channels, messages, and other marketing-mix elements.

LITERATURE REVIEW
Of all marketing weapons, due to its immense exposure advertising has leading impact on viewers mind
(Katke, 2007). Marketing mix is all about understanding the 4 Ps i.e. product, price, place and promotion;
where advertising is a component of promotional mix, which creates awareness about product and
services. In modern time, no company can become a market leader unless they do lot of investment in
promotional purposes (Hussainy et al., 2008). An advertiser aims to reach potential customers and creates
impact on their buying behaviour (Ayanwale et al., 2005 and Adelaar et al., 2003). Advertising is a nonpersonal paid form of communication by an identified sponsor to persuade or influence behaviour where
ideas, concepts, products or services, and information, are promoted through media that has features of
having visual, verbal as well as text to persuade people to buy (Ayanwale et al., 2005 and Bovee, et al.
1995). Adelaar et al. (2003) explained that behaviour is shaped by an emotional response, which is formed
by pleasure, arousal and dominance.
Advertising, in all its forms, plays an imperative role in informing peoples choices of products and services
(Sachiko, 2004). New media, largely the internet, has apparently become a very important source of
information today. Earlier researches have proved that television advertisement is the significant tool of
diffusing the communication and has an important role in the development of young peoples consumer
behaviour. (Peter & Olson 1994). A television ad chiefly focuses on creating brand awareness, giving a
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sense of necessity to own a product, to build recognition for the product and to remind customers to come
back. Hoffman and Karuk (2004) clarified the meaning of consumer behaviour as the behaviour that
consumer behave in the form of acquiring, buying, using, evaluating, or product/service consuming so as to
fulfil his/her own need. It is also considered to be the study of the decision making of a consumer in
spending both monetary and non monetary resources, for consuming products and services that include
what, why, when ,where and how often to buy. The terminology for actual buying behaviour is that
consumer in reality purchases the product or services (Adelaar et al., 2003). To determine the factors that
have an influence on consumer to act in a particular way but in different situation is the basic objective of
consumer buying behaviour is (Ayanwale et al., 2005).Television advertising is a highly economical
media and the best selling ever invented having a very strong potential advertising impact unparalleled by
any other media (Saxena, 2005). As it is perceived as a combination of audio and video features; provides
products with instant validity along with offering greatest possibility for creative advertising television has
an advantage over other mediums (Kavitha, 2006). Over a longer period of time, the Television set has turn
out to be a permanent fixture in all upper and middle class households, and it is also commonly seen even in
the poorer society of urban areas and rural households (Shah & DSouza, 2008). Partly due to low literacy
rate the advertisers find it more useful to use television rather than print media to reach their consumers
(Ciochetto, 2004). TV advertising not only impacts and changes emotions but give significant message that
exerts a far reaching influence on the daily livelihood of people (Kotwal et al, 2008). Advertisers through
television can reach a whole gamut of consumers in a less time duration.
The introduction and diffusion of television for many scholars (McLuhan, 1964), has been one of the more
socially significant events of the 20th century. Television has ceaselessly changed our families and the way
we elect our leaders, set social policy and view ourselves in relation to others. This is perhaps because
television has supplemented reading and interpersonal narrative as our prime means of story-telling and
myth-delivery (Silverstone 1991) and has thus necessarily changed our culture (McLuhan,1964). Across
diverse theoretical formulations, television is extensively acknowledged as a powerful agent of socialization.
In India, televisions being the most powerful advertising medium with the highest reach where it reaches an
audience that constitutes 54% of the population. Television, as a medium, with its vividly demonstrating
product attributes and persuasively explaining their corresponding consumer benefits can be an extremely
effective medium. Furthermore, it can dramatically portray user and usage imagery, brand personality and
other intangibles.

ATTENTION CONCENTRATION BY COMMERCIALS


Like in the visual arts, advertising tries to focus and direct viewers attention with an aim to point attention
at certain parts of the depicted scene, and direct it across scenes in an orchestrated approach to let the
projected narrative unfold (Solso 1994). Consumers can be better retained behaviourally if commercials are
able to catch hold of their attention which will ultimately prevent ad commercial avoidance. This is
consistent with art theorys (Arnheim 1988) which gives an emphasis on centers of gravity that
contemplate the viewers eyes on the essentials in paintings, statues or buildings, and with speculations in
advertising (Heeter and Greenberg 1985, Perse 1998) that audience who have less focused attention towards
the advertisement do not enthusiastically follow the ad script and may come to a decision to zap away.
Berlyne (1971) in aesthetic psychology, distinguished two types of visual attention termed specific and
diversive exploration, that an individual watcher can express when he/she perceives artful stimuli, and
speculated that each would be reflected in divergent patterns of eye fixations. To seek out detailed
information specific exploration would lead to concentrated eye fixations on specific locations of the visual
scene depicted in an advertisement. Diversive exploration would lead to distributed eye-fixations across
larger regions of the scene to look for new stimulation. A desirable bottom-up control of consumers focal
attention by stimulus characteristics (Itti 2005) is reflected by a dense pattern of eye-fixations which leads to
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concentrated attention and with all consumers held together by the commercial the chances of commercial
avoidance will be low.
To engage and to prevent viewers from channel switching television, film and advertising producers tailor
the visual complexity of commercials and other video stimuli (Lang et al. 2005). The amount of visual
material in separate scenes (momentary) (Donderi 2006), and the pacing of scenes across the commercial
(dynamic) (Germeys and dYdewalle 2007) jointly determines the overall visual complexity of commercials
at any point in time. All non-representational perceptual information, such as colors, lines, contrasts refer to
visual complexity (Itti 2005). Pacing indicates the speed at which different scenes are presented in dynamic
stimuli (Lang 2000) which is reflected in discontinuities in the video stream and accomplished by cuts and
edits (Bolls et al. 2003, Germeys and dYdewalle 2007, Lang 2000).It was observed that younger compared
to older consumers and males compared to females generally zap more when gender and age are considered
as demographic factors (Cronin 1995, Heeter and Greenberg 1985).Thus branding activity in commercials
and attention concentration of consumers mutually have an influence on the moment-to-moment commercial
avoidance decisions of consumers.

DRAMA AND COMMUNICATION IN TELEVISION ADVERTISING


Human existence depends on the ability to inform others or convince them to take some action which
usually they will not do. As we develop and grow, we also learn to pay attention and respond to messages
conveyed by others (Arens, 2004:8). In todays business world, it would undeniably be a miracle to go
through a day without coming in contact with advertising be it directly or indirectly (Mackay, 2005).
Advertising becomes a meaningless profession if it is devoid of words and images. Messages then, are the
juice of advertising and communication is its bottom line and its very essence (Mitchell, N. Moriarty, S. &
Wells, W., 2009).Television advertising makes use of drama to communicate to its audiences and to create
awareness regarding the brand because of its ability to affect the thought process of the viewers by bringing
reality on screen. After the idea/theme has been established in the creation of a television advertisement, a
script writer is necessary and the casting depends on the director whose accountability is to creatively realise
the script. Sometimes the television advertisement may just be an expression of dance instead of containing
dialogues; depending on the kind of picture director has in his mind as he works with other members of the
production team.
Brecht (1977) the great theoretician was the first to emphasize the need for drama to be quotable and to
convey messages which can be easily remembered and reproduced phrases, gestures, and images Television
as a medium of promotion is of considerable power and significance which plays a crucial role in most
peoples daily lives. Even though a generation has fully grown with it, however television is still a
moderately new technology. Advertisers see television as an imperative and impactful medium which takes
products right into the homes where it will be seen by prospective buyers and other their family members
who have an influence on purchase. Advertising can be understood as an ideological system that not only
speaks about the world of products, but even paints pictures of them which is highly persuasive. Television
advertisement through its association with dramatic communication has been able to accomplish its aim.

APPEALS IN ADVERTISEMENTS
One of the most basic elements associated with an advertising strategy is the choice of an appeal (Turtley
and Kelly, 1997). An advertising appeal refers to the move towards attracting the attention of consumers
and/or to persuade their feelings toward the brand to purchase it finally. Advertisers make use of different
types of advertising appeals to influence the consumer response. Conventionally there are two types of
appeal, i.e. emotional appeal and rational appeal. According to Davies, 1992 (as cited by Sandin and
kslompolo, 2004), rational appeals are informative as compared to psychological appeals that are
considered as being emotional in nature.
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Emotional appeal: Emotional appeals try to stir up customers emotions which can encourage and motivate
product purchase. By using different emotions in their communication, companies try to make consumers
feel related to the product (Kotler P., et al., 2008). Advertisers have an opinion that this appeal works best
for brands that do not hold opposing views markedly from competing brands (Dejesus N., 2007).
Rational appeal: Rational appeals have a tendency to relate to the self-interest of the viewers and illustrate
that the product will produce the looked-for benefit (Kotler et al, 2008). Dejesus (2007) states that such
appeal emphasize upon the features and characteristics of the products required by the consumers. Recent
research has shown that both the appeals can be effective, but their effectiveness varies by context. Chandy
et al., 2001 (as cited by Sandin and kslompolo, 2004) define other areas where emotional and rational
appeals have a propensity to differ from each other: knowledge, market age and luxury and necessity items.
Although emotional and rational appeals focus on different consumer needs, they may coexist amicably and
in certain product categories were it may be necessary for advertisers to make use of several appeals one
advertisement.
Persuasive advertisements need to provide convincing information that need to lessen the purchase risks and
discriminate the product from its competitors. Chandy et al. (2001) state that although emotions may express
warm feelings and arouse favourable brand attitudes, these attitudes may perhaps not lead to choices of
products about which the consumers are not up to date with. Even so, when consumers are previously aware
of a brand and have pre-existing approach towards it, they are less motivated to process information about it.
Afterwards they may disapprovingly respond to information-focused advertisement due to satiation,
tediousness or irritation (Sandin and kslompolo, 2004).
According to Stout and Rust, 1993 (as cited by Sandin and kslompolo, 2004) females and people who are
older in age are more liable to feel compassion for emotional messages in advertisements and as a outcome
view the advertised brand more favourable than the competitors brand being advertised using rational
appeal. Researchers suggest that informational advertisements would be more successful and effective in
younger markets since younger consumers are unfamiliar with the product and its key attributes.
One of the existing fundamental assumptions in consumer behaviour research is that individuals time and
again purchase products for their individually perceived values rather than their primary functions
(Stvkov, Stejskal & Toufarova, 2008). Though the products basic functions are important, but the
contemporary role of a product is more than its basic use-value (Solomon, 2004). Frequently, consumers do
not rate products according to their core, instead they lay more emphasis on the particular products qualities
which is often known as a real product and the extended product, which represents the set of intangible
factors that confer a preferred perceived advantage on the consumer which comprises of the image,
consultancy, and after-sale service (Foret & Prochzka, 2007).

FACTORS INFLUENCING CONSUMER BEHAVIOUR


The stimulus-response model, also known as the black box model is a well-developed and tested model of
consumer buyer behaviour which contains the characteristics of buyers and the decision process
determining the buyers response. The black box model explains the interaction among consumer
characteristics, stimuli, decision processes and consumer responses. The stimuli can be distinguished
between interpersonal stimuli or intrapersonal stimuli i.e. within people (Sandhusen, 2000, pp. 218-219).
The black box model focuses on the relationship between the stimuli and consumer responses and is related
to the black box theory of behaviourism, where processes inside a consumer are not to prime concern.
Marketing stimulus are intended and created by firms, whereas the environmental stimulus is generated by
social factors, based on the political, economic, and cultural circumstances that exist in a society.

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The Black Box Model of Consumer Behaviour. Adapted from Marketing by W. Keegan, S. Moriarty, T. Duncan, 1992, p. 193. Englewood
Cliffs, NJ: Prentice-Hall.

The aim of marketing management is to determine the thoughts that keep moving in the mind of the
customer which is considered as the black box. The buyers characteristics have an influence on how he/she
perceives the stimuli and the decision-making process determines the consumer buying behaviour being
undertaken. There are many factors which have an impact on a consumers purchasing decisions and buying
behaviour; the classification of which has been given in table 1 in the form of literature review.

Table 1. Factors Affecting Consumer Buying Behaviour Literature Review


Researcher

Major factors

Enis (1974)
Cross and Peterson (1987)
Dibb and Etal (1991)
Cohen (1991)
Zikmond and Amico (1993)
McCarthy and Perreault (1993)
Narayyana and Raol (1993)
Keegan (1995)
Setlow (1996)
Stanton (1997)
Lancaster and Reynold (1998)
Kotler and Armstrong (2007)
Straughan and Roberts (1999)
Pride and Ferrell (2000)

personal factors, social factors


social factors, physical factors
personal factors, social factors, physical factors
marketing mix, physical factors
social factors, environmental factors, individual factors
physical factors, social factors
physical factors, social factors, cultural factors
social factors, cultural factors, economic factors, geographic factors
personal factors, marketing mix, environmental factors
social factors, physical factors, attitudinal factors
physical factors, social factors, cultural factors
physical factors, social factors, cultural factors, personal factors
demographic factors, lifestyle
social factors, physical factors, attitudinal factors

Own elaboration based on Obaidat, 1995; Stvkov, Stejkal, Toufarov, 2008; Suleiman, 2000.

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TELEVISION ADVERTISEMENT IMPACT ON REPETITION, CELEBRITY
ENDORSEMENT AND PERCEIVED QUALITY ON CONSUMER BUYING
Television and advertising collectively present a lethal combination and has become an integral part of
modern society as it is the most convenient way to reach not only adult consumers but also the youth. Young
people are manipulated by advertisement campaigns which promise that the product will do something
special to satisfy their needs and wants thereby transforming their life. The impact of television as a media
vehicle is very important because of its vast potential as an audio-visual communicator to a large customer
base. Television enables the marketer to communicate by employing attention grabbing trick such as Jingles,
humour, attractive and lovely music, lyrics that create an emotional connect with consumers and repeated
messages to display ideas to a widely scattered audience. Advertisements are among the most noticeable of
the marketing strategy and it not only alters human emotions but gives subliminal message about the
company and its products. The impact of the advertisements in influencing the behaviour of people is more
affected by television as a promotional tool than the print media or radio.
The perceived quality of a product, celebrities endorsing the brand and repetition of advertisements are some
of the major factors that consumers consider in order to judge the product superiority and excellence which
ultimately influences consumers to buy that brand. Advertisers need to be aware regarding the frequency of
media which will enable them to get positive responses from consumers along with knowing how many
times the brand should be given an exposure so as to create a strong brand image in consumers mind which
will eventually lead them to purchase. According to a research conducted by Krugman (1972), the first
exposure that an television commercial gives to the consumers raises the curiosity levels among them ; and
the second exposure leads to an evaluation and in third exposure customer finally decides that whether
product needs to be purchased or not. As per Vakratas and Ambler (1999), which had a correlation with the
study of Krugman (1972), one to three exposures are sufficient for purchase. According to Lewis and Kurt
(1936) for Perceived quality, shopper is willing to pay a premium price for owning a brand.

CONCLUSION
Television advertising, once viewed as the mainstay of advertising media outlets, is facing several
challenges from alternative media ,one being Internet and the invasion of technology devices, such as
digital video recorders, that have empowered customers to be more choosy on the advertisements they
view. Yet because it is a mass medium capable of being seen by almost anyone, television lacks the ability
to deliver an advertisement to extremely targeted clientele compared to other media outlets. In an
attempt to improve their targeted efforts Television networks working in the pay-to-access arena, such as
those with channels on cable and satellite television, are introducing more narrowly themed programming
gearing to address the needs of specific interest groups to appeal to selective audiences. As long as TV is
viewed as the main driver of brand awareness, TV will grow its revenue base. Television truly attracts the
attention of the people due to its multimedia and interactive nature integrating visual, motion and sound.
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The Need of Capacity budgeting and HRD for the development of


Tourism Industry
Parag A. Gadve
Asst. Professor, Dept. of Management Studies,
Sipna's College of Engineering & Technology,
Amravati. (M.S.)

Nikita J. Gupta
Asst. Professor, Dept. of Management Studies,
Sipna's College of Engineering & Technology,
Amravati. (M.S.)

Abstract:
Tourism has a long industry chain and is of special significance to simulating employment,
promoting foreign trade and transforming the mode of development. It has a less volatility compare
to other industries. Developing tourism has become a top priority of a number of a countries and
regions today. It will be a good strategy for integrating India with the world. India's size,
geography, terrain, history and people make it a country with immense resource potential, as far as
tourism concern. But by looking the present scenario of Indian tourism, inadequate HRD policies
and inefficient strategies to find out the capacity of region is one of the causes behind the absence
towards tourism development. Development and sustainability of tourism industry is dependent
upon mainly capacity of the tourist place and its proper capacity budgeting and proper planning of
HRD. It requires developing the adequate strategies and policies by the Government and the ability
of citizens residing in the part; to convert the opportunities in to accomplishment of goals of
earning and improve the standard of living. Research may be useful to find the solution to it.
Key Words: Capacity budgeting, transformation, Foreign trade.

Introduction:
The world tourism organization defines tourists as people travelling to and staying in places
outside their usual environment for not more than one consecutive year for leisure, business and
other purposes.
In todays technologically developed era by the venture of upgraded communication and
transportation facilities whole world shrink in a unite. Quality of people leaving in one part is
influence because of these to visit other part. It increase the opportunities to develop a tourism as a
long industry chain to plug it as a weapon of employment creation; economically development,
opportunities for wealth distribution, recreation of exhausted mind and by that a tool for peace and
not only national but international brotherhood.
If the strategies are used in right direction tourism may prove as a largest and fastest growing,
dynamic, multidisciplinary industry grouping. Here Right direction means planning and adopting
HRD strategies and capacity budgeting concern to todays scenario tourism industry is flourishing
and looking towards trend it may continue in future also. To in-cash all this opportunities there is
stronger need of capacity budgeting by providing supply and demand of tourism growth. To
motivate the personals how are they playing different roles with different responsibilities, need to
bring the human resource development in tourism industry.
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1. Strategy for Integrating India with the World:
Tourism in the past had been major source of buoyancy for invisible earnings. It makes a
significant contribution to the economies of the nation. Tourism will help to earn foreign currencies
and reduce balance of payments deficit. There is considerable potential for much higher direct
foreign Investment, provided we maintain positive stance towards FDI. However, more recently,
growth of tourist arrivals and earnings has not been so healthy. This has occurred despite efforts at
the Central and State levels to accelerate the growth of tourism in India. These efforts need to be
intensified. Airport system, transit route, tourist agents, Tour group, the Internet, travel companies,
lodging and restaurants, local communities need to be greatly improved.
2. Impact on Quality of Life:
Tourism may impose significance costs on a destination if it reduces quality of life. This sometimes
happens when a destination is not prepared for a large number of visitors. Some of these negative
effects include traffic congestion, increased crime rates, noise and air pollution, vandalism,
excessive demand on public facilities and water supplies as well as overcrowding of beaches,
forests, and parks that results in the destruction of plants and wildlife and re-education in visitor
and resident enjoyment.
Yet quality of life is highly subjectively matter. It can be viewed from many perspectives- number
of entertainment options available to residents, ease of movement in and around the area, presence
or absence of smog & advertising signs, availability and crowding of public transportation, road
congestion, and so on.
3. Capacity Budgeting Through analyzing Cost and Benefits of Tourism:
Large cities depend extensively on tourism. However, the benefits of a large tourism sector are
debatable. Using resources to build a tourism sector means fewer resources for other sector. These
costs must be included when estimating tourisms effect on a city, region, state, or nation. As said
earlier, tourism is a source of invisible earnings. Related to it to achieve the positive benefits to
tourism industry it is essential to determine the capacity of tourism places by setting the
preliminary standard for the performance which may be termed as capacity budgeting to rate the
capacities SWOT of the tourist places may be performed.
One method to determine the net effects of the tourism sector is called a cost-benefit analysis. The
basic questions asked in a cost-benefit analysis are, Do the short-term economic benefits of
providing this services outweigh the economic cost? and what are the effects on long-term
growth?
It is clear that cost for tourism as well as income from tourism is huge, though the earnings may be
invisible but it can be analysed by supply and demand of the tourism in nation. The amount,
however, are subject to definitions and to reliability and interpretations of the data collected. We
look at some way to measure the costs and benefits of tourism, how to increase income and we
attempt to discover who benefits and by how much.
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Fig 1: Supply & Demand for Capacity Budgeting


Opportunity Cost & Tourism:
When calculating the costs of tourism, it is important to include the opportunity cost. The
opportunity cost of a resource is its value in its next best use. If you have to use it for a resource,
and you can only choose one, the opportunity cost is the value of the resource in its second use, the
one you did not choose. To give an easy example: you either have the option to go to class
tomorrow morning or to sleep in. If you choose to go to class, you do so at the expense of forgone
sleep. If you choose to sleep in, then your opportunity forgone is learning something in class.
Opportunity cost is one of the most important concepts in economics, yet it often overlooked when
running the number because it is not an expense. Travel and Tourism Consumption represents the
value of products and services that has been consumed by visitors. It is the basic demand side
aggregate used to construct an explicitly defined production side Industry equivalent for
comparison to other industries. Travel and tourism consumption includes the following: personal
travel and tourism, business travel, government expenditure for visitor services such as cultural (art
museums), recreational (national park), or clearance (immigration/ customs) to individual visitors,
visitors exports, which include spending by international visitors on goods and services. As shown
in Fig:2, utilization (stands for the money spent by consumers on goods and services, direct
utilization or indirect), Investment (from individuals or businesses who invest for profitable return),
Government Spending ( Spend money on developing tourism in a region, spending for employment
opportunity, promotion, planning and regulation, infrastructure HRD etc.), Inbound tourism ( it is
an export because it involves the flow of money into the national economy from outside), Imports
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(part of national income that is not spent on domestically produced goods or services and tourist
and tourism businesses imported buying goods and services, the indirect generation of tourism is
not achieved locally) all these five heads are necessary to evaluate for estimating the optimum
opportunity cost for capital budgeting.

Fig 2: Computing Components for opportunity cost.

Fig 3: SWOT in tourism Industry

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HRD policies for the development of Tourism Industry:
1. Performance assessment: Performance assessment of the human resource as per the need of
tourism development. It consists of a formal procedure used in the organizations to evaluate
personalities, contributions and potentials of employees. In similar way, to know the potential
or capacity of the tourist places with respect to its location, facilities, amenities, brand,
reputation, etc. method of performance appraisal in human resource development (HRD) can
play a vital role.
2. Potential Appraisal: Potential This technique aims at development of latent abilities. This is
the process of developing in the employees, capacities to perform new roles and
responsibilities. In tourism industry continuous potential appraisal of tourism places is very
essential to increase customer loyalty / repeat. A sound human resource and financial resource
required proper estimate of capacity of place. The main objective of potential appraisal is to
ensure good match between the job and employees. We can say it proper capacity budgeting
3. Counseling and monitoring: Performance counseling and monitoring means the help given
by a superior to his subordinate in improving the latters performance. Tourism industry can
be divided into two types developing tourism and developed tourism. Here developed tourism
country, nation, state, etc. can play a role of superior to counseling and for monitoring the
developing tourism country, nation, state, etc. to ensure the proper development of tourism
industry. Here the need of tourism businesses merger acquisitions, agreements foreign tourism
agencies are required to invite the Foreign Direct Investment (FDI).
4. Education: Education is an investment in the tourism development process which gives
dividends both in short and long run. The ultimate goal of education is improving competence
of the employees, businessmens and of local communities for raising the standards of tourism
in the nation. These efforts need to be intensified on the areas like viz. airport system, transit
route, tourist agents, tour group, the Internet, travel companies, lodging and restaurants, local
communities need to be improved significantly.
5. Building Morale and Motivation among the Employees of an Organization: The
organization must give constant evidence to the belief that human resources in the
organization are the key to development. This requires proper motivation of the employees
which provides a base for the management functions of planning and organizing. This HRD
plan is best suitable for the residential at the tourist places. Their morale and motivation is
very essential for the development and increase the capacity of the tourist place. Leiper in his
research strongly advises a holistic approach to tourism. A system approach to tourism
includes local communities and residents of areas receiving tourist.
6. Quality Circle: In the language of human resource development, a quality circle is a small
group of employees doing similar or related work who meet regularly to identify, analyze and
solve product related problems and to improve general relations. This kind of quality circles
plays a vital role for the sustainability of rural tourism. By providing the proper knowledge
they can help to shift the unproductive rural tourism into a significant foreign income earning
avenue.
4. Conclusion:
Looking towards the opportunities beneath in tourism industry it becomes hourly need to
develop strategies on capacity budgeting and human resource development. Their by the
national balance of payment, foreign exchange trade, FDI can improve and the people may
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motivate to utilize their capacities for completing their responsibilities to bring the development
in tourism industry which robotically results in healthier economic state.
It is also a need to recognize the various scientific and statistical tools of financing and capacity
budgeting of tourist places, so why there may be adequate utilization of the same by avoiding
drawbacks of under or over utilization of the capacity of place.

Reference:
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K.K. Sharma, Manging Tourist Destination, Kanishka Publishers, Distrbutors, New Delhi, 2001
Foster Dougleas, Travel and Tourism Management, Macmillan Publication, London, 1985.
K.K. Dewett & J. Verma, Elementary Theory of Economics, Sultan Chand & Sons Publication, New Delhi
Bill Taylor & Gautum Sinha, Research Methodology A guide for Research in Management & social Science, Eastern Economy Edition
Datta- Sundaram, Indian Economy, S.Chand and Company, New Delhi, 1998.
Ruddar Datt & K. P. M. Sunharan, Indian Economy, S. Chand Publication
A. N. Agrawal, Indian Economic Problem & Development Planning, New Age pvt. Ltd. 27 th edition 2001
Report (2009-2010); Ministry of Tourism; Government of India; New Delhi.
Krishna A.G.; 1993; Case Study on the efforts of tourism on culture and the environment: India, Jaisalpur, Kahjuraho an Goa.
H. Lalnunmawia; 2010, Development and impact of tourism industry in India.
Gail Dexter, Sept 17, 1999, The Power of Cultural Tourism, Resource Planning & Management Inc.
Ms. Terry Smith, March 30, 200,1 Final Report, Market analysis for horticultural tourism in Ontario.
Prof. K. Subbaraman, Dr. Nitin Nayak; 2008, Pune as a preferred Medical Tourist Destination in India for Foreigners; Journal of IMS
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www.indiatourism.com
www.maharashtratourism.gov.in
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www.forbes.com/travel/
www.tourismplace.blogspot.com/2008/04/tourism-is-not-wolds-largest-industry.html
www.iittm.org/

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CHALLENGES AND STRATEGIES IN IT INDUSTRY IN THE


GLOBAL PERSPECTIVE
PROF. RAJESH KUMAR SHARMA
ASSISTANT PROFESSOR,
VNS INSTITUTE OF MANAGEMENT, BHOPAL,

DR. ABHAYA SWARUP


World Bank Consultant (Energy), Bhopal (M.P)

Abstract
With the advent of the globalization the competition in the field of Information Technology has
intensified multifold. The phenomenal growth of the IT industry has brought about new
challenges and great opportunities for the IT companies. Those companies that can successfully
counter the challenges would be the leaders. Now the time has come to develop new advantages.
Sustaining business on a global scale is more difficult than operating. India is one of the fastest
growing IT markets in the world, the fastest growing market in the Asia-Pacific region. The
country has also the fastest growth in Internet usage in this region. India today has a substantial
share in the developed world, amongst those involved in information technology (IT) software
and services.
This article meticulously presents the major challenges before the Indian IT industry in the
present scenario. It throws light on the opportunities available for the Indian IT industry and how
the Indian IT companies can take the advantage to compete globally with the help of various
strategies.
The I.T. industrys contribution to the Indian GDP has increased from 1.4% in 1989-1999 to 3%
in 2003-2004. The different companies in India contribute to the export revenue and they have
been ranked on the basis of their contribution which is revealed from the table no 1.The Indian
I.T. industry includes hardware, peripherals, networking, training, domestic and export market
for software and services and BPO . Indian software and services industry global delivery model
neared towards offshore outsourcing expected to account for Rs 33,000 crore in 2003-2004,
onsite services will touch 22,500 crore in same period. This is revealed from the table no.2 that
reveals the data for the onsite and offshore exports. In 2003-2004, total revenues of the Indian
software and services industry were US$15.9 billion, with domestic revenues of US$ 3.4 billion
which are expected to grow to US$20.5 billion and US$4.2 billion respectively. In 2003-2004
the total value of software and services export grew at 30.5% with revenues of $ 12.5 billion or
Rs 55,500 crore accounting for an increase of 20.4% over the previous year which are expected
to grow to30-32% in exports enhancing revenues to reach US$ 16.3 billion. The table no.3
provides the information about it. The I.T. and electronics exports registered a growth of 22%
showing exports of Rs 63,200 crore in 2003-2004.The Indian I.T. industrys has been constantly
increasing the European share in total software and services exports. Indian companies are trying
to explore Japan, Germany, France and Asia Pacific.Indias share in the world software and
service market was just 1.82% in 2001-2002, 2.09% in 2002-2003 which increased to 2.4% in
2003-2004. Information technology enabled services accounted for Rs.16, 380 crore showing a
growth of 45%. Hardware exports grew by 37.5% reaching Rs. 7,700 crores and software and
services accounted for Rs.55, 500 crore expots. Share of I.T. in the total Indian exports is 21.3%
accounting for 2.64% of the GDP which is projected to grow to 7% of GDP and 35% of exports
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by 2008.Government estimates that by time exports potential would be of the range of $ 57-$65
billion accounting to 6% share of the global market.
Keyword - Strategies, Structure Services, Opportunities, Challenges.

Introduction
According to Nasscom ITES-BPO exports contribution is likely to be $ 21-24 billion by
2008.According to Nasscom study I.T.services exports is expected to touch $28-30 billion by the
year 2008 and ITES will account for $21-24 billion and product and technology services industry
will contribute around $8-10 billion to overall revenues. According to Govt. data 70% of Indian
software exports was to North America during 2003-2004 which accounts for over 55% of the
global I.T. spend. European Union was second with 22.25% of total export North America
accounting for 80% of the business remaining dominant market for ITES BPO services.I.T.
software and services market in India continued to be driven by exports exhibiting a growth in
2003-2004. Close to 60% of the revenues of the overall I.T., software and services market were
accounted for exports increasing from Rs 461 billion (US$9.55 billion) in 2002-2003 to US$
12.2 billion in 2003-2004.The etable no. The export segment, which logged in revenues of
Rs.461 billion. ITES-BPO industry grew at 52.3% during 2003 2004.Indian continued to
expand its presence in two of 10 major I.T. services line--Custom application development and
maintenance and application outsourcing accounted for nearly 88%of the total exports in 20032004.Indian companies have begun moving up the value and are offering services in I.T.
consulting, system integration, IT outsourcing, network consulting and integration. Indias key
advantage in the global IT and ITES-BPO industry is the availability of an abundant, high quality
and cost-effective pool of skilled knowledge workers. The skills in demand include software
analysts, domain specialists, information security, integration specialists, database
administrators, network specialist and communication engineers, data warehousing and
semiconductor design.81 percent of all software professionals have a graduate degree or above
13 percent are M.Tech, MBA, CA, ICWA, 67 percent are B.Tech, BE or MCA. 20 percent are
diploma-holders or graduates. The table no. 4 provides the complete detail about it. The Indian
I.T. market accounts for the 12.5% of the software and services exports, 3.75% of the hardware,
peripherals and networking, 0.26% by the training and the remaining 3.4% of the domestic,
software and services . The figure no. 1 in the form of pie diagram depicts it.

STRUCTURE OF INDIAN SOFTWARE AND SERVICES INDUSTRY


The Indian I.T. services industry comprises-- large, global companies and small start-ups, Indian
companies and multinationals.
Tier 1 companies (i.e. the top 5 firms) accounting for 32% of total software exports;
benefited from customers recent scaling of operations.
Tier 2 companies (with revenues of between Rs.1 billion and Rs.10 billion) accounting
for about 24% of the industry, facing the challenge of differentiation from tier 1 players.
The revenues of these companies are under pressure because of fierce bidding by those in
Tier 1.
MNC back-ends accounting for about 26% of the industry.
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Focused companies (about 3-4% of the industry) include those with a focus on a
particular domain /service line /products, who are facing the challenge of cutbacks in key
markets such as telecom, and managing to diversify their offerings.
Small companies, with revenues of less than Rs 1 billion, accounting for 12-14 % of the
market, and many have witnessed a slow growth due to excessive dependence on staff
augmentation. The table no.5 clearly reveals the structure of various exporting
companies.
OPPORTUNITIES:
Following are the opportunities
1.

Scope in new service lines:

Application development and application outsourcing are the two service lines tapped by the
Indian I.T. services industry. New service lines which are expected to be tapped by the Indian
I.T. companies include packaged software support and installation, I.T. consulting, network
infrastructure management, systems integration, IS outsourcing, I.T. training and education
targeting.
2.

Targeting under penetrated countries:

Markets in Japan and Western Europe need to be penetrated by the Indian industry, which offer
$5-6 billion in export potential to Indian industry. Other geographies like Canada, Netherlands,
Sweden and Australia, France, Italy are also high growth geography for Indian companies in the
coming years.
3.

Penetrating high potential sectors:

Indian companies have focused on three areas services, telecom and manufacturing that account
for 45% of the industrys revenue today. Indian companies need to aggressively target under
penetrated areas like retail, telecom, service providers and healthcare, which offer great
opportunities for the industry.
4.

Tapping product centric opportunities:

India has been able to capture 0.2% of US$ 180 billion market. There are vast opportunities
waiting to be tapped in the areas such as embedded software, development and delivery of
specialized components, tapping offshore product developments.
5.Internet and E-commerce:

E-commerce having great potential in India and Internet access being now liberalized, Indian IT
firms are eager to tap the internet and services market. Goldman Sachs Asia predicted more than
9 million Internet users and 400 ISPs till 2004 .IDC (India) predicted the growth of Indian ebusiness revenues from US$14 billion to $162 million in 2001 and more in years to come. Ecommerce would give opportunity to small and medium Indian enterprises to project their
capability globally and thus participate more proactively in such ventures. The handicraft,

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textiles, art and other industries could find an ideal medium through internet. E-commerce is the
IT tool that can do wonders to the Indian economy in many fields.
6. Employment:

One of the most appealing opportunity aspect of this sector is to provide employment
opportunities According to Gartner group the employment opportunity potential is immense.
Germany needs 20,000 professionals and has instituted immigrant policies such as Green card
for professionals. France signed a memorandum of understanding with the Indian chamber of
commerce and is keen to hire 10,000 Indian software engineers and 50,000 technicians. Ireland
has instituted free visa to over 10,000 software engineers from India.

SWOT ANALYSIS OF I.T.INDUSTRY


The SWOT analysis reveals that the Indian I.T. industry needs to focus on the weaknesses like
low level of infrastructure, Geo political risks and try to convert them into their strengths .The
opportunities like searching and penetrating high potential areas and expansion of exports
overseas should be grapped to grow in todays global scenario. The strengths such as high
qualified and abundant workforce and robust project management experience should always be
kept in mind while entering the global market, which will provide a confidence in competing
with the rivals. In todays world of cutthroat competition the industry need to be aware of the
threats like --recession in market and competition at domestic and global level in business and
salary packages, which might affect the overall functioning of the I.T. industry. The Table no. 6
describes the various aspects related to the SWOT analysis.

CHALLENGES
The Indian I.T. services industry, one of the fastest growing industries in the country, is
confronting new challenges. The industry has grown at a compound annual growth rate of nearly
50% over the past decade, but an anti-outsourcing wave looming on the horizon threatens to
wreak havoc on the sunshine exports.
1.If the Indian I.T. has to grow tenfold or more than there is need of ten times the amount of
capital to be deployed today. In order to be commensurate with respect to the task the technology
has to be cost effective.
2. The mind set should be global so that high quality and cost effective solutions to be provided
to the customers. Having a global mindset means willing to exploit the software products
through resources available within the competitive environment.
3. The innovative thinking is very important in order to survive. There is need to straddle
technologies, domains and processes and create a self-sustaining process to docation so
continuously.
4. Branding must be the key factor in the value appropriation strategy. Today Indian I.T. industry
has created its Indian software brand therefore India should look for its own brand and build and
sustain it.
5. There is need to form alliances and collaboration to work within India and with other global
organizations as partners. This would help to make, buy and sell on a global basis.
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6. There is also need to increase the management and leadership talent and to build the
entrepreneurs for the future.
7. Human talent is required to make all dreams true. The talent should be well trained to harness
their talent to compete globally.

STRATEGIES
According to Fiegenbaum, Hart and Schendel (1996), a firms performance and competitive
advantage depends on three dimensionsinternal capabilities, external conditions and time.
These three important dimensions of competitive strategy need to be analyzed by the companies.
they have also explained the four types of organizations according to their internal and external
adaptability.
A company having low internal adaptation competencies but high external competency is an
externally focused company. Such companies take into considerations the external occurrences
ignoring internal adaptation. Therefore such company should develop its strategic capabilities by
recruiting better people, modern technology.
An adaptive company has high internal and external adaptation competencies. For a company to
be globally competitive a company should be an adaptive type of company.
An internally focused company is one which has high internal adaptation and low external
competencies. therefore such type of company focuses on internal efficiencies ignoring the
external competencies .It should focus on customer satisfaction stakeholders demands and
domestic competencies.
A company is called a stagnant company if it has both low internal and external adaptation
competencies. Such company does not understand the internal capabilities and the external
environment in which it operates. It requires hard work to improve its both the competitors.
So for the Indian I.T. industry to be globally competitive, it is important that it should focus on
both internal and external competencies both. The table no. 7 shows the different types of
strategies. Therfore Indian I.T.industry must focus upon
Reducing risk through engagement with stakeholders
Increasing revenues by reducing environmental impacts and benefiting local economy.
Improving access to capital through proper governance.
Better human resource management.
To improve the infrastructure.
Today India is recognized worldwide for its consistent growth and development in IT industry.
The best brains are putting in their efforts to help the Indian IT industry soar to greater heights of
success. The Indian IT companies can overcome the barriers while entering into the global
market by making proper use of the human skills and creativity. If the company wants to succeed
in the world market then it must re-evaluate its internal environment by focusing on the human
skills in order to accommodate the changes taking place in the environment Thus the IT industry

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has immense potential for steering the growth of countrys economy by tapping the potential
fully by tackling the challenges fully.
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Reddy ,G. Sreenivasa ,Dasari , Ravi , Indian IT Industry-Status ,Challenges And Outlook, JIMS 8M ,April-june,2005,p-22-39.

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Nasscom .org

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Srinivas , R.S., Rao U.S., A Strategic Framework to Compete in the Liberalised Economy, IMA TATA International Management
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NASSCOM-MCKINSEY REPORT ,Robust Growth For Indian IT Services And IT Enabled Services Industry ,Monday, June 10, 2002.

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Chakraborty ,C. ,Jayachandran ,C., Indian Software Industry : Structure,Trends and Constraints, Readings in Service Management ,
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Ramadori ,S., Chief Executive Officer, Tata Consultancy Services, Address to the Inaugural Session of NASSCOM 2002 , Sustaining
Growth-Indian Industry,Feb 5, 2002.

commerce and Information Technology ,Vol 5

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Study of the impact of training on the performance effectiveness of


insurance agents at Max NewYork life insurance Bhopal
Ms. Rakhi Tiwari
Asst. Professor
Technocrats Group of Instituions
Bhopal (M.P.)

Abstract:
Today insurance has become a great mechanism that helps to reduce and mange the uncertainties
of life. Any unfortunate event in human life will deprive them with the financial benefits. Thus
insurance can help the individuals to face any adverse or unpleasant situation by providing
protection and preventing loss, collective bearing of risk. Assessment of risk and certainly. It
also serves as a means of savings and investment, source of earnings and risk free trade for the
insurer. The purpose of this study is to find out the performance effectiveness of the insurance
agents in form filling, Illustrations and portal session before and after training. It also deals with
analyzing the impact of inconvenience on the performance effectiveness of the insurance agents
during the various sessions.
Introduction
Insurance industry has always been a growth oriented. The history of insurance in India back to
the year 1818 when the original life insurance company was formed in Kolkata. In the insurance
industry, the term agent is ordinarily applied to a person engaged by the insurer to produce new
business. The insurance act defines an Insurance agent as one who is licensed under section 42 of
that Act and it is paid by way of commission or otherwise in the consideration of his soliciting or
procuring insurance business relating to the continuance, renewal or revival of policy of
insurance. He is, for all purpose, an authorized salesman for the insurance and needs and needs a
license. One of the important functions of the insurance agent is to provide full fledged
information to the insurer and assure him about his candidature in the organization. In order to
do so the agent are to ne efficient in registering a candidate. He/She should be highly efficient in
form filling portal and illustration services.
About the organization:
Max New York Life Insurance is a multi business corporate a joint venture between New York
Life, a fortune 100 company and Max India Limited, one of the Indias leading multi business
corporation. Max New York Life Insurance is a key player in life insurance, Health care, clinical
research and specialty packaging product in India. New York life is a leader in insurance
business. Its branch in Bhopal is incorporated in the year 2000, is one of the Indias leading
private life insurance companies. The company office both Individual and group life insurance
solutions. It has established a wide range of networks highly aligned with its values of financial
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responsibilities. Max New York Life has identified individual agents as its primary channel of
distribution. The agents advisers are given in house training to insure uninterrupted services to
its customers.
Objectives of the study
1. To analyses the performance effectiveness of insurance agents in the area of form
filling , portal and illustration session of insurance policies at Max NewYork life
insurance Bhopal.
2. To identify the problems and there complexities that an insurance agents face
during form filling , portal and illustration session of registering insurance
policies by the insurance advisors at Max NewYork life insurance Bhopal.
Research Methodology
The convenience sampling method is used to conduct a survey on insurance agents to determine
there performance effectiveness before training and after training in respective sessions viz form filling illustration and portal sessions.
Data collection:
The study has taken assistance of both the primary and secondary source of data for the purpose
of data collection. The primary source of data is collective through questionnaire method. The
questionnaire is designed in an structural manner. The study undertakes the consideration of
three factors like form filling, portal access, and Illustration sessions, to judge the performance
effectiveness of agents. The secondary source of data involves the data from companys
magzines, websites and diary.
Time period:
The study conducted between the time period of 2012- 2013.
Data Analysis:
The data were carefully analyzed and interpreted to fulfill the real purpose of research. The data
is then analyzed by chi-square test( 2 )The hypothesis is framed and conclusions are drawn to
solve the research problem. The null and alternative hypotheses are as follows:H1=0:
There is no significant difference between the performance effectiveness of insurance agent
before and after training in portal sessions.
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H2 =0
There is no significant difference between the performance effectiveness of insurance agent
before and after training in Illustration sessions.
H3=0
There is no significant difference between the performance effectiveness of insurance agent
before and after training in form filling sessions.
The performance effectiveness of insurance agents are determined on the basis of form
filling, portal and Illustration expertise of the insurance agents.
Sample size:
30 insurance agents were selected based on convenience sampling method.
Data analysis and interpretation
Values of chi-square test
S.No.

Session

Degree of
freedom

Level of
Calculated
significance
value

Table
value

Hypothesis
Accepted

Rejected

1.

Portal

5%

11.58

9.48

Rejected

2.

Illustration

5%

11.88

9.48

Rejected

3.

Form filling

5%

10.136

9.48

Rejected

H1=0
There is no significance difference between the performance effectiveness of insurance agents
before and after training in portal session.
Interpretation:
The data analysis interprets that the calculated value 2 is (11.58) found to be greater than
the tabulated value of 2 (9.48) at 5% level of significance and 4 degree of freedom. Therefore
null hypothesis is rejected which reveals that there is a significance difference between
performance effectiveness of insurance agents before and after training in portal sessions.
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Interpretation during a survey many respondent admire that there performance is


restricted down in form filling session as they face many problems. Bur according to them there
is a surprise improvement in the reward and recognition of agents after training. The efficiency
to use portal system helps them in bringing more policy related to due date of installments and
policy taken by the client.
H2=0
There is no significance difference between the performance effectiveness of insurance
agents before and after training in Illustration session.
The value of 2 test at 4 degree of freedom is found to be 11.88 greater than the tabulated
value 9.48. The null hypothesis is rejected at 5% level of significance which means that there is
no significant difference between performance effectiveness of insurance agents before and after
Illustration session
Interpretation:
The interaction with the insurance agents reveals that after training they found themselves
to be well trained in imparting knowledge to the insurance about the plans, riders and sum
assured with there policies.
H3=0
There is no significant difference between the performance effectiveness of insurance
agents in form filling session before and after training. Since the calculated value of 2 at 4
degree of freedom is found to be 10.136 which is greater then the tabulated value (9.488), the
null hypothesis is rejected which means that there is a significant difference between the
performance effectiveness of insurance agents before and after form filling session.

Conclusion:
During the research study at Max Life New York Insurance it is found that training is proved to
be an effective tool to upgrade the knowledge, skills and attitude of agents required to absorb
effective changes in the organization. The proper knowledge imparted during training session
acted as a catalyst agent to bring attitudinal as well as job related change in the insurance
advisors in the session of form filling, portal and Illustration session. Therefore an organization
should feel the importance of running training program with a great zeal of sincerity and attempt.
References:
1.
2.
3.
4.
5.

Aswthappa. K, Organizational behavior, Himalaya Publishing House, Mumbai, 5 th Revised edition 2000, PP 316-354.
Davis, Keith, Human behavior at work, Tata Mc Grawhill Publishing Co, Ltd, New Delhi, 1975.
Rao.P.S.V, 2005, Human resource management text and cases, New Delhi Excel books Publication. New Delhi
Newstrom. W. John, Organizational behavior, Human Behavior at work, Tata Mc Grawhill, 12th Edition. 2007
Gupta.S.R, Sharma .D.B, Bhalla, S.N, Principles and Practice of Management ,Kalayni Publishers, New Delhi, 7 th revised and
enlarged edition 2002.
a.
Websites: www.irda.gov.in

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COMPETENCY MANAGEMENT
G.sai Rekha
Associate professor
Institute Of Aeronautical Engineering
Dundigal

K.Gayathri
Assistant professor
Institute Of Aeronautical Engineering
Dundigal

ABSTRACT
The employees have to be motivated by the top management so that they can improve themselves
through the training given to them. Competency is the emotional intelligence of an employee.
When an employee is suffering emotionally there should be moral support from the manager as
well as from the colleagues. The organization must introduce Employee development Program
accordingly to the level of employees, because relation between the level of training and level of
employees should match. EDP includes counseling employees on how to deal with other
employees, managers, handling conflicts at the work place, and improving the inner talents.
There should be job rotation process in the organization so that the employees should not be
bored of their routine work. By doing this employees will have knowledge about all the activities
in their organization. The organization should also conduct entertainment activities for the
employees to relax and also give them the opportunity to participate in fun activities.
KEY WORDS: competency, components, models, competency mapping, process, strategy,
management
INTRODUCTION
In today's competitive world it is becoming very important to build on the competitive activities
of the business, particularly regarding what competencies a business needs to have in order to
compete in a specific environment. Top management is identifying corporate core competencies
and working to establish them throughout the organization. Human Resource Development
Builds competency based models that drive business results. Competency modeling addresses
the development of people from process design through succession. But most of the
organizations of all sizes are still struggling with defining, designing and implementing
competency model projects. The process is completely customizable. The decisions of
competency design are driven by number of organizational factors, including management
philosophy, customer requirements, business needs and in-place processes. These factors vary
from one organization to another, requiring a customized approach to competencies in the
workplace. Customization is essential to the overall success of competency efforts, since every
organization must integrate.
COMPETENCY
The work related skills and behavior needed to effectively perform in a role. Core competencies
are required for all role profiles. Specific competencies are required for some role profiles.
Competence is a standardized requirement for an individual to properly perform a specific job. It
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encompasses a combination of knowledge, skills and behavior utilized to improve performance.


More generally, competence is the state or quality of being adequately or well qualified, having
the ability to perform a specific role.
For instance, management competency includes the traits of systems thinking and emotional
intelligence, and skills in influence and negotiation. A person possesses a competence as long as
the skills, abilities, and knowledge that constitute that competence are a part of them, enabling
the person to perform effective action within a certain workplace environment. Therefore, one
might not lose knowledge, a skill, or an ability, but still lose a competence if what is needed to
do a job well changes.
Competence is also used to work with more general descriptions of the requirements of human
beings in organizations and communities. Examples are educations and other organizations who
want to have a general language to tell what a graduate of an education must be able to do in
order to graduate or what a member of an organization is required to be able to do in order to be
considered competent. An important detail of this approach is that all competences have to be
action competences, which means you show in action, that you are competent. In the military the
training systems for this kind of competence is called artificial experience, which is the basis for
all simulators
The FIVE LEVELS proposed by Dreyfus and Dreyfus were:
1. Novice: Rule-based behavior, strongly limited and inflexible
2. Experienced Beginner: Incorporates aspects of the situation
3. Practitioner: Acting consciously from long-term goals and plans
4. Knowledgeable practitioner: Sees the situation as a whole and acts from personal
conviction
5. Expert: Has an intuitive understanding of the situation and zooms in on the central
aspects
COMPONENTS OF COMPETENCY
There are four major components of competency:
1. SKILL: capabilities acquired through practice. It can be a financial skill such as budgeting, or
a verbal skill such as making a presentation.
2. KNOWLEDGE: understanding acquired through learning. This refers to a body of information
relevant to job performance. It is what people have to know to be able to perform a job, such as
knowledge of policies and procedures for a recruitment process.
3. PERSONAL ATTRIBUTES: inherent characteristics which are brought to the job,
representing the essential foundation upon which knowledge and skill can be developed.
4. BEHAVIOR: The observable demonstration of some competency, skill, knowledge and
personal attributes. It is an essentially definitive expression of a competency in that it is a set of
action that, presumably, can be observed, taught, learned, and measured.
DEFINITION BY Collin, 1989
Competence is shown in action in a situation in a context that might be different the next time
you have to act. In emergency contexts, competent people will react to the situation following
behaviors they have previously found to succeed, hopefully to good effect. To be competent you
need to be able to interpret the situation in the context and to have a repertoire of possible actions
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to take and have trained in the possible actions in the repertoire, if this is relevant. Regardless of
training, competence grows through experience and the extent of an individual to learn and
adapt. However, there has been much discussion among academics about the issue of definitions.
The concept of competence has different meanings, and continues to remain one of the most
diffuse terms in the management development sector, and the organizational and occupational
literature
The process of competence development is a lifelong series of doing and reflecting. As
competencies apply to careers as well as jobs, lifelong competency development is linked with
personal development as a management concept. And it requires a special environment, where
the rules are necessary in order to introduce novices, but people at a more advanced level of
competence will systematically break the rules if the situation requires it. This environment is
synonymously described using terms such as learning organization, knowledge creation, selforganizing and empowerment.
The Occupational Competence movement was initiated by David McClelland in the 1960s with a
view to moving away from traditional attempts to describe competence in terms of knowledge,
skills and attitudes and to focus instead on the specific self-image, values, traits, and motive
dispositions (i.e. relatively enduring characteristics of people) that are found to consistently
distinguish outstanding from typical performance in a given job or role. It should be noted that
different competences predict outstanding performance in different roles, and that there is a
limited number of competences that predict outstanding performance in any given job or role.
Thus, a trait that is a "competence" for one job might not predict outstanding performance in a
different role.
Nevertheless, as can be seen from Raven and Stephenson, there have been
important[peacock term] developments in research relating to the nature, development, and
assessment of high-level competencies in homes, schools, and workplaces.
Competency model
History:
Competencies are characteristics which drive outstanding performance in a given job, role or
function. A competency model refers to a group of competencies required in a particular job and
usually number 7 to 9 in total. The number and type of competencies in a model will depend
upon the nature and complexity of work along with the culture and values of the organization in
which the work takes place.
Since the early 70s, leading organizations have been using competencies to help recruit, select
and manage their outstanding performers after Dr David McClelland, Harvard Business School
Professor of Psychology, found that traditional tests such as academic aptitude and knowledge
tests, did not predict success in the job.

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More recent research by individuals such as Daniel Goleman in Emotional Intelligence and
Richard Boyatzis, in The Competent Manager, have reinforced and emphasized the importance
of competencies as essential predictors of outstanding performance.
A competence model, also known as a competency framework, uses the five competences
described earlier. These will support the primary tasks and the job specific tasks. Together these
tasks reflect the purpose of the job.
COMPETENCY MODEL:
Competency model is a set of competencies that include the key behaviors required for excellent
performance in a particular role.
DESIGN DECISION
In term of grand design, competency model should be guided by firms strategy which is shaped
by four factors: vision & mission, stakeholder requirements, market realities and core capabilities
of the firm.
In a more technical design, competency model development should be determined in the process
of design decision. In this stage, one should discuss the design of the model with clients, based
on their specific needs and expected outcomes of the competency model.
The following are some factors that need to be considered in deciding the design of the
competency model.
1.CONTEXT:
Competencies are actually context bound. They answer the question What does a superior
performer look like in a specific setting? In other words, effective competencies are linked to a
particular organizational target or goal. Therefore, depending on the context, the design of
models may be geared toward: the total organization (e.g., core competencies or values) an
entire function (e.g., finance, human resources) a specific role (e.g., HR generalist) a specific
job (e.g., compensation analyst)
2.LEVEL OF ORIENTATION:
This factor deals with the level of orientation of the model: will the model reflect future or
current job requirements. The degree of future orientation depends on how the organization plans
to apply the model and the pace and nature of changes occurring within the organization. If an
organization decides that their model will be based on future requirements, they might use future
performance needs (i.e., benchmark data; best practices) to create competencies.
3.LEVEL OF COMPLEXITY:
Two other critical factors should be considered in developing competencies the length of models
and the degree of complexity and detail described in behavioral indicators. Frequently,
competency initiatives fail because models are too long and too detailed or because organizations
spend too much time and too many resources researching and editing behaviors. Consequently,
organizations fail to provide a simple framework to users in a timely manner. Models that work
best follow the 80-20 rule. They provide the 20% of behaviors that drive 80% of excellent
performance.
4.THE MODEL SHOULD BE LINKED TO STRATEGY:
Effective competency models support and contribute to the company's and the function's strategy
and goals. For instance, if a goal of the company is to transcend functional barriers, the model
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needs to describe the behaviors that demonstrate that competency. Likewise, if a goal is
ensuring that all employees communicate and work together effectively, the model should
describe the behaviors that demonstrate that competency.
5.THE MODEL SHOULD BE COMPANY SPECIFIC:
Unlike many job descriptions, competency models are not easily transferable among companies.
Competencies needed for a company are determined by the company's unique characteristics,
such as culture, strategy, size, and industry. This is true even of the competencies needed for a
position common to many companies, such as the job of a financial analyst. The competencies
required of a financial analyst at an automobile manufacturer are vastly different from those
required of a financial analyst at a health care company, for instance.
6.THE DEVELOPED MODEL SHOULD BE FLEXIBLE:
A good competency model functions as a performance management tool. It provides enough
detail to distinguish between employees who are operating at different levels of proficiency. It
also helps a company articulate why an employee is at the current level and the competencies
needed to advance. In this sense, a competency model is prescriptive, yet it must not be too
binding. It needs to be flexible enough to accommodate differing approaches to success, simple
enough to be easily understood, and readily adaptable to changing business environments.
7.THE MODEL SHOULD BE FUTURE-ORIENTED:
Competency models with a forward-looking perspective stimulate organizational change. Rather
than defining competencies in the context of "tasks," or how a job has traditionally been carried
out, useful competencies articulate how the job is evolving and will best be performed in the
future. Not only does this approach increase a model's shelf life, it ensures that employees have
enough time to understand what the required competencies are and to develop them.
BENEFITS OF USING COMPETENCY MODEL
There are some useful benefits of using competency model for the company, managers, and
employees as well for the company.
FOR THE COMPANY
Reinforce corporate strategy, culture, and vision. Establish expectations for performance
excellence, resulting in a systematic approach to professional development, improved job
satisfaction, and better employee retention. Increase the effectiveness of training and
professional development programs by linking them to the success criteria (i.e., behavioral
standards of excellence). Provide a common framework and language for discussing how to
implement and communicate key strategies. Provide a common understanding of the scope and
requirements of a specific role. Provide common, organization-wide standards for career levels
that enable employees to move across business boundaries.
FOR MANAGERS:
Identify performance criteria to improve the accuracy and ease of the hiring and selection
process. Provide more objective performance standards. Clarify standards of excellence for
easier communication of performance expectations to direct reports. Provide a clear foundation
for dialogue to occur between the manager and employee about performance, development, and
career-related issues.

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FOR EMPLOYEES:
Identify the success criteria (i.e., behavioral standards of performance excellence) required to be
successful in their role. Support a more specific and objective assessment of their strengths and
specify targeted areas for professional development. Provide development tools and methods for
enhancing their skills. Provide the basis for a more objective dialogue with their manager or team
about performance, development, and career related issues. Competency mapping is one of the
most accurate means in identifying the job and behavioral competencies of an individual in an
organization .Competency mapping should not be seen as just another means to apportion and
dispense rewards. All the stakeholders must see in the exercise an opportunity for long-term
growth. The key is to look at competency mapping as going beyond mere processes. And to see
in it an exercise that has a significant and lasting value to individuals as well as to the
organization.
COMPETENCY MAPPING
Competency mapping can also be done for contract or freelance workers, or for those seeking
employment to emphasize the specific skills which would make them valuable to a potential
employer.
Competency mapping also requires some thought, time, and analysis, and some people simply
may not want to do the work involved to sufficiently map competencies.
The value of competency mapping and identifying emotional strengths is that many employers
now purposefully screen employees to hire people with specific competencies. They may need to
hire someone who can be an effective time leader or who has demonstrated great active listening
skills. Alternately, they may need someone who enjoys taking initiative or someone who is very
good at taking direction. When individuals must seek new jobs, knowing ones competencies can
give one a competitive edge in the job market.
Usually, a person will find themselves with strengths in about five to six areas. Sometimes an
area where strengths are not present is worth developing. In other cases, competency mapping
can indicate finding work that is suited to ones strengths, or finding a department at ones
current work where one's strengths or needs as a worker can be exercised.
A problem with competency mapping, especially when conducted by an organization is that
there may be no room for an individual to work in a field that would best make use of his or her
competencies. If the company does not respond to competency mapping by reorganizing its
employees, then it can be of little short-term benefit and may actually result in greater
unhappiness on the part of individual employees. A person identified as needing to learn new
things in order to remain happy might find himself or herself in a position where no new training
is ever required. If the employer cannot provide a position for an employee that fits him or her
better, competency mapping may be of little use.
However, competency mapping can ultimately serve the individual who decides to seek
employment in an environment where he or she perhaps can learn new things and be more
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intellectually challenged. Being able to list competencies on resumes and address this area with
potential employers may help secure more satisfying work. This may not resolve issues for the
company that initially employed competency mapping, without making suggested changes. It
may find competency mapping has produced dissatisfied workers or led to a high worker
turnover rate.
DEFINITION:
According to Boyatzis(1982) A capacity that exists in a person that leads to behaviour that
meets the job demands within parameters of organizational environment, and that, in turn brings
about desired results is crucial
(Mc Lagan, 1997). A competency is an area of knowledge or a skill that for producing key
outputs
Competency mapping is a process through which one assesses and determines ones strengths
as an individual worker and in some cases, as part of an organization.
COMPETENCY MAPPING PROCESS:
There are about five stages while performing competency mapping. The following are the five
stages discussed in detail.
FIRST STAGE:
The first stage of mapping requires understanding the vision and mission of the organization.
SECOND STAGE:
Second stage requires understanding from the superior performers the behavioural as well as the
functional aspects required to perform job effectively.
THIRD STAGE:
Third stage involves thorough study of the BEI Reports/ Structured Interview Reports.
Identification of the competency based on competency frame work. Measurement of
competency. Required levels of competency for each job family. Development of dictionary
which involves detail description of the competency based on the indicators. Care should be
taken that the indicators should be measurable and gives objective judgment.
FOURTH STAGE:
a. This stage requires preparation for assessment.
b. Methods of assessment can be either through assessment centers or 360 Degree Feedback
c. If assessment centre is the choice for assessment then tools has to be ready
beforehand.
i.
Tools should objectively measure the entire competency required.
ii. Determine
the
type
of
the
tools
for
measuring
competency
iii. Prepare the schedule for assessment
iv.
Training to the assessor should indicate their thorough understanding of the competencies
and the tools and also as to how the behavior has to be documented.
FIFTH STAGE:
This stage involves conducting assessment centre. Usually it is a two day program which would
involve giving a brief feedback to the participant about the competencies that has been assessed
and where they stand to.
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SIXTH STAGE:
Sixth stage involves detailed report of the competencies assessed and also the development plan
for the developmental areas.

RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the investigation of


matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe. Research can use the scientific
method, but need not do so.
Scientific research relies on the application of the scientific method, a harnessing of curiosity.
This research provides scientific information and theories for the explanation of the nature and
the properties of the world around us. It makes practical applications possible. Scientific research
is funded by public authorities, by charitable organizations and by private groups, including
many companies. Scientific research can be subdivided into different classifications according to
their academic and application disciplines.
Research methodology is a way to systematically solve the research problem. The research
methodology in the present study deals with research design, data collection methods, sampling
methods, survey, analysis and interpretations.
RESEARCH DESIGN

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.
A well structured questionnaire is framed.
Data is collected from the employees of KARVY.
Findings are made and necessary suggestions and recommendations are given.
DATA SOURCES
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There are two types of data collection namely primary data collection and secondary data
collection.
PRIMARY DATA
The primary data is defined as the data, which is collected for the first time and fresh in nature,
and happen to be original in character through field survey.
Primary data collection, you collect the data yourself using methods such as interviews and
questionnaires. The key point here is that the data you collect is unique to you and your research
and, until you publish, no one else has access to it.
There are many methods of collecting primary data and the main methods include:
questionnaires
interviews
focus group interviews
observation
diaries
critical incidents
Portfolios.
SECONDARY DATA

The secondary data are those which have already been collected by someone else and have been
passed through statistical process. The secondary data for this study are already available in the
firm's internal records, annual report, broaches, and company's website.
In research, Secondary data is collecting and possibly processing data by people other than the
researcher in question. Common sources of secondary data for social science include censuses,
large surveys, and organizational records (Mintel). In sociology primary data is data you have
collected yourself and secondary data is data you have gathered from primary sources to create
new research. In terms of historical research, these two terms have different meanings. A
primary source is a book or set of archival records. A secondary source is a summary of a book
or set of records.
Advantages to the secondary data collection method are - 1) it saves time that would otherwise
be spent collecting data, 2) provides a larger database (usually) than what would be possible to
collect on ones own However there are disadvantages to the fact that the researcher cannot
personally check the data so it's reliability may be questioned.
DATA COLLECTION METHOD
The data collection method used in this research is survey method. Here the data are
systematically recorded from the respondents.
RESEARCH TOOL
A structured questionnaire has been prepared to get the relevant information from the
respondents. The questionnaire consists of a variety of questions presented to the respondents for
their despondence. The various types of questions used in this survey are:
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Open ended questions


Closed ended questions
Multiple choice questions
SAMPLE UNIT
The employees of KARVY are the sample unit in the survey.
STATISTICAL METHODS USED
Bars & charts
Pie diagrams
DATA ANALYSIS & INTERPRETATION
(1) How ready is your organization to go in for competency mapping?
Table 1

Chart 1:

Yes

No

No Response

28

Interpretation 1:
From the diagram it is clear that 90 % of the employees agree that organization is going for
competency mapping while 10 % of the employees are not sure.
2.) Does your top management believe that competencies can be developed through
continuous effort and intervisions?
Table 2:

Chart 2:

Yes

No

No Response

25

Interpretation 2:
81% of the employees are agreed with the company 19 % of the employee says they disagree with the
organization

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3). Is your top management willing to invest time and effort in building competencies of
your employees on a continuous basis?
Table 3:
Chart 3:

Yes

No

No
Response

26

Interpretation 3:
70% of the employees agree that company is investing time and effort to build competencies
where 6.6% say no and others gave no response to the question
4) Does your top management believe in building a competency-based organization?
Table 4:

Chart 4:

Yes

No

No Response

25

Interpretation 4:
80% of the employees believe that their company is a competency based organization through
which it is giving a competition to its opponents
10% does believe that the organization has to provide more opportunities so that there is personal
growth as well as organization growth and 10% of the employees have no answer
5) Does your organization intend to coach employees for future careers or well laid career
paths?

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Table 5:

Chart 5:

Yes

No

No response

27

Interpretation 5:
90% of the employees believe that organization is giving them the opportunity to grow in their
career where as 10% of the employees say that there are no career paths of their choice
6) Is your training based on scientific or at least systematic identification of competency
gaps and competency needs?
Table 6:

Chart 6:

Yes

No

No Response

25

Interpretation 6:
80 % of the employees agree the training they are undergoing to build up their competencies is
scientific and systematic. 20% of employees are not satisfied with the training activities which
they are undergoing
7). Does your performance appraisal have a measure of competencies separately for each
individual level or function or group of jobs?
Table 7:

Chart 7:

Yes

No

No Response

25

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Interpretation 7:
80% of the employees say that performance appraisal is individual based. The company believes that
when performance appraisal is individual based then only they can assess the capabilities of every
employee and can provide training accordingly.10% of employees disagree with this and the other 10%
did not respond to the question.

8).Does promotion or promotion policy in your organization require some form of


competency assessment?
Table 8:

Chart 8:
Yes

No

No Response

24

Interpretation 8:
80 % of the employees find that promotion policy is based on competency assessment. So that the right
person is given a pat on the shoulder through this promotion policy and made way for the others to
perform well.15% of the employee disagree with the policy and the remaining 5% of the employees are in
doubt.

9). Does your organization have adequate opportunity to recognize and retain people other
than promotion?
Table 9:

Chart 9:

Yes

No

No Response

30

Interpretation 9:
All the employees agree that promotion is not the only way to retain and recognize employees.
They are different ways in which employees are recognized by the organization. Because of those
ways the employees have been retained in the company for so long years

10) Does your top management believe in using multi-rater assessment or 360 degree
feedback for employee development?

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Table 10:

Chart 10:

Yes

No

No Response

29

Interpretation 10:
96% of the employees agree that their organization is following 360 degree feedback for employee
developments and 4% of the employees are not in a position to say whether they are assessed through 360
degree feedback or any other method but they say that they are assessed through one of the methods.

11) Is the team work in your organization of high order?


Are the top level managers capable of performing their integrating roles well?
Table 11:

Chart 11:

Yes

No

Doubtful

30

Interpretation 11:
100% of the employees believe that their top managers are performing their roles and responsibilities up
to their expectation. Because of which they are aware of the each and every activity which is taking place
in the organization and with the organization. The employees and the top managers believe in team work.

12) Does your organization value talent and excellence?


Table 12:

Chart 12:

Yes

No

No response

23

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Interpretation 12:
76% of the employees agree that their organization gives importance to talent and excellence. Due to this
recognization only the employees are satisfied with the promotion policy and the training given to them.

13).Is your organization good in execution of projects or ideas once decided, rather than
abandoning them in middle?
Table 13:

Chart 13:

Yes

No

No Response

29

Interpretation 13:
90% of the employees are happy because the ideas or any suggestions given to the top management
regarding any operation or activity in the organization is consider and implemented if it is suitable and
appropriate for the problem. 10% of the employees unable to judge whether their ideas are considered or
not.

14) Does your organization have a culture of using task forces and work groups for various
tasks?
Table 14:

Chart 14:
Yes

No

No Response

29

Interpretation 14:
96% of employees say that the organization believe in team work so that the employees who are lacking
in any aspect can clarify their doubts with the help of their colleagues. But when they perform
individually they cannot have a clear idea of the work. Because of these team work and tasks forces the
job is completed on time and employee relationship can be improved. The left 4% didnt respond

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15) Does your organization encourage innovation and scientific ways of doing things?
Table 15:

Chart 15:

Yes

No

No Response

30

Interpretation 15:
The employees are satisfied by the encouragement given by the organization when they perform a job in
more innovative or scientific way which will reduce the time, cost , and energy for the organization.

16) Is your organization system drive rather than being rampant with aphorism and
convenience based decision-making?
Table 16:

Chart 16:
Yes

No

No Response

30

Interpretation 16:
Yes the company is a system drive rather than a rampant. 100% employees say that the organization is
running systematically on the basis of the rules framed by the top management by taking the suggestions
from the employees so that there is no uncomfort for the employees at the same time maintaining the
standards to achieve the required position in the market.

LIMITATION OF THE SURVEY


1. The questionnaires were filled be 30 employees working in one the units of the KARVY. So the
scope of sample findings was less.
2. The questionnaire was filled by 30 employees of different designations. So the point of view of
employees differs as per their designations.
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3. The questionnaires are related to the sample employees related to different competencies, so some
of the questionnaires filled by the employees who have less competencies cannot be called
reasonable.
4. Many a times the employees may not be really conscious or may not be bothered about the
questionnaire. This may create a problem in the research.
5. As the study was done within a limited time, investigator could not select a sufficiently large
sample for the study.
6. The study is confined to limited period i.e. 45 days

FINDINGS
1. Total sample of the employees considered are male and many are between age group of 35-40.
Most of the respondents are have professional qualification.
2. Most of the employees have different years of long association with the organization.
3. Almost all the employees are satisfied with the process of performance appraisal which is carried
out in the organization, only few employees are dissatisfied with the process
4. The opinion about the training programs conducted by the organization is almost better,
according to majority of the employees.
5. Almost all the employees are satisfied with the promotion policy provided by the organization.
The promotion policy is based on the competencies assessments
6. Most of the employees agree that there are given recognisation in one way or the other
7. All the employees agree that they are individually assessed and are working as team for the
achievement of the organizational goals.
8. Few of the employees say that the organization should still improve techniques for their career
development.
9. Employees have to be given the required training & development in the areas where they are
lacking.
10. Few employees do not participate in the training classes due to lack of interest.

CONCLUSION
The present study was conducted at KARVY in HYDERABAD. The aim was to find the competencies,
skills required to perform the job of the employees. This was done using a detailed questionnaire. The
study revealed that the employees with unskilled are low than the employees with competencies
prevailing in the organization.
At the end of the study, we can conclude that though there are employees with fewer competencies they
can be reduced by giving proper training & development activities and rotating them through different job
activities so that they can gain knowledge about the all the operations in the company. The company has
to improve its training and development techniques so that it can achieve competent employees which
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will make them be competent to its direct opponents. The organization with high competency employees
is a good sign of development and can retain its place in the global market.

BIBLIOGRAPHY
BOOKS:
1.
2.

Research Methodology Methods & techniques by C.R. KOTHARI, New Age international publishers, New Delhi-110 002.
Competency

Management-

practitioners

Guide

by

R.Palaniappan,

Specialist

Management

Resources

Sdn

Bhd

3.
The Handbook of competency mapping: understanding, designing and implementing competency models in the organizations by Seema
Sanghi
INTERNET:
http://www.wisegeek.com/what-is-hr.htm
http://www.articlesbase.com/human-resources-articles/competency-mapping-999753.html
http://www.citehr.com/
http://www.jagooindia.com/
http://www.addedv.com/
http://www.authorstream.com/
http://www.knowledgework.wordpress.com/
http://www.scribd.com/

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Consumer perception on Organized Fast Food Retail Outlets towards


brand image in Bhopal
Dr. Kumar Siddhartha
Associate Professor
Faculty of Management Studies
VNS Group of Instituions
Bhopal (M.P.)

ABSTRACT
India is the worlds second largest producer of food next to china, and has the potential being the
biggest with the readymade food sector. The total food production in India may likely to double
in the next ten years and there is an opportunity for large investments in food.
Indias readymade food processing sector covers snacks and other eatables along with fruits and
vegetables, milk and milk products, alcoholic beverages, protein food etc, the most promising
sub sectors includes snacks and recepies like burgers, sandwiches, pizzas, chicken fries and
roasts at different outlets clubbed with different soft drink butting, confectionery manufacture,
fast food, ready to eat breakfast. The young generations who are a part of college academic
world are the prime consumers. This may be thoroughly studied and addressed to strengthen the
business by providing the right mix to the focused market. The changed lifestyle and perception
has given strong reason and logic to the players of organised sector in this category to understand
the dynamics of the behavior of market. The mode of offers made by different Fast Food Outlets
(FFOs) at Bhopal has been able to identify it gradually and improving their brand image as the
perception and preferences of target consumers has been noticed carefully. The study has been
descriptive in nature and has discussed the reason why does this consumer segment visit an FFO
at Bhopal. Moreover it sincerely demands how a player can communicate its different values
attached to the FFO to the target consumers.
Key Words: Perception, Brand image, Fast Food Outlets, Nutritional values, Hygiene,
Choice & Preferences, Descriptive study, Bhopal
INTRODUCTION
Fast food is the term given to food that can be prepared and served very quickly. While any meal
with low preparation time can be considered to be fast food, typically the term refers to food sold
in a restaurant or store with preheated or precooked ingredients, and served to the customer in a
packaged form for take-out/take-away. The term "fast food" was recognized in a dictionary
by MerriamWebster in 1951.
Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food
restaurants (also known as quick service restaurants). Franchise operations which are part
of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations
Ready Food (Automated Fast Food) ,the concept picked up and became popular with a slogan
less work for mothers and changed into a culture in most of the households. The concept of

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gaining acceptance was also found in serving the customers in cars and trains. It was followed by
white castle which was basically into producing hamburgers. The fast food formula was so
successful that it attracted big food chains such as McDonalds(1940), Burger King and TV
Dinner (1950), Kentucky Fried Chicken (KFC, 1962), Taco Bell(1962), Wendys (1972) to be a
part of the fast food industry.
Globalization, factors such as economic crisis, political unrest, imbalances in income
distribution, environmental degradation and a plethora of other factors tend to increase the
challenges and threats faced by companies and nations. While these factors can be threats to a
business, marketers try continuously to convert them into opportunities. Owing to the economic
liberalization and increased buying power, the complexity of the Indian consumer has deepened
considerably and rendered a host of buying choices available in the market place. Busy work
style and more women entering the workforce has, thrown open opportunities to fast food outlets
to cater to the basic need of consuming food. The emergence of women workforce and
increasing career opportunities have forced women to concentrate more on imparting quality
time to children and family after their work hours. This has made household activities a second
priority. Changing lifestyle and expectations of the consumers have forced the Fast Food Outlets
to restructure their premises and deliver more value added services and varieties to consumers.
Fast food outlets (FFOs) are take-away or take-out providers, often with a "drive-through"
service which allows customers to order and pick up food from their cars; but most also have a
seating area in which customers can eat the food on the premises.
Nearly from its inception, fast food has been designed to be eaten "on the go", often does not
require traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets
include fish and chips, sandwiches, pizzas, hamburgers, fried chicken, french fries, chicken, tacos,
pizza, hot dogs, and ice cream, although many fast food restaurants offer "slower" foods
like chili, mashed potatoes, and salads.
Traditional street food is available around the world, usually from small operators and
independent vendors operating from a cart, table, portable grill or motor vehicle. Common
examples include Indian vendors serving PawBhajee, Momose etc,Vietnamese noodle vendors,
Middle Eastern falafel stands, New York City Hot Dog Carts, and Taco Trucks Turo-Turo
vendors (Tagalog for point) are a feature of Philippine life. Commonly, street vendors provide a
colorful and varying range of options designed to quickly captivate passers-by and attract as
much attention as possible.
Modern commercial fast food is often highly processed and prepared in an industrial fashion, i.e.,
on a large scale with standard ingredients and standardized cooking and production methods. It is
usually rapidly served in cartons or bags or in a plastic wrapping, in a fashion which minimizes
cost. In most fast food operations, menu items are generally made from processed ingredients
prepared at a central supply facility and then shipped to individual outlets where they are
reheated, cooked (usually by microwave or deep frying) or assembled in a short amount of time.
This process ensures a consistent level of product quality, and is key to being able to deliver the
order quickly to the customer and eliminate labor and equipment costs in the individual stores.
Because of commercial emphasis on speed, uniformity and low cost, fast food products are often
made with ingredients formulated to achieve a certain flavor or consistency and to preserve
freshness.
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Any branded fast food restaurant (outlet) is recognised both by its quality food stuffs, reception
and appeasement of customers, lesser time involved and the minimal service attached to it, so
referred to as fast food. Almost all branded fast food restaurants (outlets) are restaurant chains or
franchise operations, and standardized raw food stuffs are shipped to each restaurant from central
locations. Depending on the locale, multiple street vendors may specialize in specific types of
food characteristic of a given cultural or ethnic tradition. Alike Indian culture, it is typical for
street vendors to call out prices, sing or chant sales-pitches, play music, or engage in other forms
of Street Theratics in order to engage prospective customers. In some cases, this can garner
more attention than the food
Define Fast Food:
Denition 1. Fast food have been dened by Bender and Bender (1995) as a general term used
for a limited menu of foods that lend themselves to production-line techniques; suppliers tend to
specialize in products such as hamburgers, pizzas, chicken, or sandwiches.
.Denition 2. In Data Monitors (2005) survey the fast food market is dened as the sale of food
and drinks for immediate consumption either on the premises or in designated eating areas
shared with other foodservice operators, or for consumption elsewhere.
Denition 3. As per the free dictionary fast food is inexpensive food, such as hamburgers and
fried chicken, prepared and served quickly.
Denition 4. According to Merriam-Webster online dictionary fast food is designed for ready
availability, use, or consumption and with little consideration given to quality or signicance.
REVIEW OF LITERATURE:
India being at the seventh place, is among the top ten markets for weekly fast food consumption
among the countries of Asia-Pacic region. Over 70 per cent of urban Indians consume food
from take-away restaurants once a month or more frequently. Survey indicates that Pizza Hut is
the most preferred fast food outlet in India. Identifying the drivers for preference of one-brand
over another, the survey results indicate that Indians (66 per cent) are amongst the consumers
who consider hygiene and cleanliness their most important criterion for selection. A total of 24
per cent of Indians use the quality of service as a decision making criterion to purchase a fast
food brands offering and 22 per cent rely on their perception of whether a take-away brand
offers them healthy food options.
The factors considered for choosing a fast food outlet, there are research studies towards the
nutritional value of fast food. A survey of more than 9,000 consumers nationwide in US has
shown that about 25 percent of those who eat fast foods and drink sugary, carbonated soft drinks
generally consume more calories, fats, carbohydrates, added sugars and proteins than those who
do not (Bowman, 2005).
According to the study of McNeal et al. (1980), respondents felt that meals were moderately
nutritious and a good food buy, but they were fattening and contained harmful additives. These
ndings further indicate that although the consumers perceive the nutritional aspects of fast food
meals to be important, they often ignore the aspects in practice.
Brown et al. (2000) emphasized the need for nutritional awareness and fast food preferences of
young consumers during adolescent years. Davies and Smith (2004) have analysed the

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importance of nutritional values of fast food and also information printed /disclosed by the fast
food providers
Hanson (2002) said that the shortened lunch hours and the fast pace of life have forced people to find
quicker meal solutions. Due to this, the fast food industry has developed rapidly.

Park (2004), in his study, made it very clear that consumers eat outside to save their time, satisfy
their hunger, for pleasure, to transform their moods and for social interaction.
A study by Agnes et al.(2004) revealed that the waiting time, staff attitude, food quality and
variety significantly influence and affect customer satisfaction.
Adams (2005) paper outlines the bases for establishing fast food industry responsible for obesity
as articulated in litigation against fast food chains in US.
In Indian context, there is high concern towards health in twenty-rst century. Health related
articles do mention to consume more fruits, vegetables, water and to consume less or nil of junk
food including fast food being high on fat and calories.
A research study by Monika and Morven (2005) found that four factorsbrand value, nutritional
value, ethical value and food quality influence the purchase behavior of the consumers.
News article by Barker (2006) indicates that Indians are facing the problem of obesity and
among kinds of food fast food is one of the reasons for the same. However, there is gap of a
particular research in Indian context to have a link between the health problems and fast food
consumption.
Anita (2007) found that Indian consumers are passionate about FFOs as they offer fun and
change. She identified the three important dimensionsproduct, service delivery and quality
dimensionwhich significantly influence the consumers. Consumers gave more weightage for
taste and quality, followed by hygiene and ambience.
Cuma et al., 2007 found that the price of the fast food, health issues, preference of kids, and
other demographic variables, such as income, age and size of the household, considerably
influence the frequency of consuming fast food.
Tassalina and Augustine (2007) found that food choices were influenced by health/nutritional
benefits (60.8%), safety/sanitation (60.0%), and thepriceof menu (55.8%), and celebration of a
special occasion (60.8%) was the most popular reason for eating out.
A study by Maria (1994) found that Chinese consumers prefer American fast food because of
their taste, packaging and service speed. However, the American fast foods were lacking in
variety and the ad appeals were not effective. The study also found that the Chinese got
introduced fast food by their relatives and friends.
According to Susan (1992), food type and food quality are the main reasons for consumers to
choose a particular restaurant. The study also highlighted that restaurant style and atmosphere
also attract the customers.
The three segments-students and middle-aged and older people with moderate incomeprefer
restaurants based on their style of living but college students were considered for the study.
Mona et al., (1998) studied the same grounds and found that the type of food and the quality are
the key factors in determining consumer loyalty towards a particular restaurant. The study also
highlighted that the meal experience is enhanced by tangible things in the restaurant

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SIGNIFICANCE OF STUDY
The literature review indicates that customer satisfaction, consumer buying behaviors have been
discussed at length but the services gaps available have been overlooked.
A tremendous growth in fast food sector is now essential to cover service delivery attached with
the offers and, along with the consumer expectations in the areas of tangibles, reliability,
responsiveness, assurance and empathy.
As these service dimensions are prime requirement of all fast food outlet as they generate interest
to know the expectation and perception of the consumers before and after the delivery of service.
This study helps the Fast Food Outlets in understanding their brand image. It also points on
operational and policy based issues.
This paper discusses what customer perception and loyalty elements towards outlets brand
image is, their comparative differentials comparing traditional vending, and how to ask, compel
and persuade customers to affirm positive perception and loyalty towards the organized Fast
Food processing Outlets (FFO) in Bhopal, Madhya Pradesh. Fast food is a very fast growing
industry in world as well as in India especially in urban areas (small and large cities). No much
research material is available on customer perception, satisfaction and consumption pattern and
preferences in India is available.
This paper is based on descriptive study and is an effort to minimise that gap through the
literature in the context of Bhopal, M.P.
OBJECTIVE OF STUDY:
The objectives of this study are as follows:
1) To identify the factors affecting the perception, choice and purchase decision of Madhya
Pradesh consumers (college going youngsters) for fast food and its outlets (FFO).
2) To study the consumption pattern towards fast foods particularly with respect to the
frequency of visits and choice of fast food outlets.
RESEARCH METHODOLOGY:A descriptive study was carried out involving interaction with consumers to understand the
factors influencing and guiding the perception and choice of branded fast food outlets and to
identify the service gaps, if any. Several factors had been identified which influenced the
consumers perception and choice of Fast Food Outlets. Also the key factors influencing the
consumer perception and choice of branded Fast Food Outlets (FFOs) and identifies the service
gaps in their operations. In this context, the aforesaid objectives were set for the study.
1. First step, the author studied and tried to explore the factors influencing the consumer
perception regarding branded fast food outlets.
2. Second step of the research, the service gaps with regard to expectation and perception
are explored.
3. Third step of the study, the demographic (age and income) influence on fast food
(available with a particular brand) preference has been discussed.
To estimate importance of various factors affecting the choice of fast food outlets by Indian
young college going consumers multivariate statistical tools have been applied. In addition, the
authors analysed the consumption patterns, impact of hygiene and nutritional values and rating of

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various attributes of McDonalds and Nirulas out of many available in Bhopal including
U.S.Pizza, McDonald, Pizza Hut, and Dominos.
Perception & Preferences have been playing crucial role in supporting and strengthening a brand.
Hence the topic under study has been pivoting around it. It includes all reasons why a young
consumer visit and select a fast food outlet (FFO).Keeping this in view the primary data have
been organised on different factors like, time visit to an FFO, variety, hygiene, taste, ambience at
FFO, price, service and locations. If all factors on an average is in FFOs favor, the particular
brand will enjoy the high consumer traffic at its outlets.
SAMPLING:
State of Madhya Pradesh (India) is gradually witnessing an encouraging move in consumer
lifestyle, choice criteria, preferences, eating habits caused by social and stature shift of
consumers. Bhopal possesses mix of all sort of consumer behaviors available in Madhya Pradesh
so can be a representative of Madhya Pradesh Population. Hence, population of Bhopal has taken
under study by the author.
Samples Units: Sample for the study consisted of youth segment (indicated as consumer
in this study) in the age group of 18 to 32 years.
Convenience samples are drawn from Bhopal region among the college students.
Denition of convenience samples includes only one dimension i.e. easy access to the sample
units otherwise it was random selection of individuals from a large number of customers visiting
the fast food outlets. This segment of population was selected on the basis of their adoption of
modern lifestyle pattern inclined towards eating outside (hangouts) and socializing with friends.
Sample Size: As the study is exploratory in nature, a sample size of 250 thought to be an
adequate one. Accordingly 250 respondents from the target population were approached
to ll in the questionnaire and were interviewed at the spot. Out of 250 only 185
respondents data were valid. The difference includes no response from respondents,
incomplete or errorful information
TOOLS ANDS TECHNIQUES:To know the response author has used the personal interview and questionnaire methods in
sample survey. Data were collected from the targeted customer in malls, e.g. D.B.City, Bitton
Market, or in fast food outlets across city. Questionnaires were served to them with a request to
ll at the spot. Sincere care has been taken to reduce possible biases in selecting the young
customers for the purpose of data collection by way of asking certain questions to them in
relation with their eating habits and demographic prole. Author exercised a thorough analysis
for each lled-in questionnaire to check the consistency of data provided by targeted customer
specically for customers who had lled the questionnaire when they were with their peers. The
incomplete questionnaires were found and rejected by the authors.
Questionnaire scope: demographics( age only) of the respondent, behaviour of visiting fast food
outlets e.g. time of the day, getting home delivery, peers pressure, nutritional values, factor
affecting outlet selection, price, hygiene comparison, source of information,etc.
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Fast Food Outlets Selection:


There are six organized fast food outlets in Bhopal region that is McDonalds, Pizza Hut, Amer
Bakery Hut, Dominos, KFC, and U.S.Pizza as mentioned in the introduction.
However, in the sample of this study most of the customers/visitors were contacted at McDonald,
Dominos, Pizza Hut & KFC.
Major Players and their Products:
Dominos- Pizza, Feasts, Sides, Sandwich, fire grilled burgers,
McDonald- Burgers, French Fries, Ice creams, Shakes & Cold drinks
Amer Bakery- Burgers, French Fries, Plated Meal, Ice creams, Shakes & Cold drinks
Kentucky Fried Chicken (KFC) - Chicken, plated Meal, KFC famous Bowls, Flavors &
Snacks, Sandwich, Desserts, Sides, Salads, etc
Rating fast food outlets features
In order to identify major features of eating outlets selection, the data were collected on six
interesting characteristics of fast food outlets ( use of Likert Scale):
1.
2.
3.
4.

(1) Ambience and hygiene


(2) Price.
(3)Food taste and quality
(4)Variety of food.
(5)Service speed
(6) Location.
SOURCE OF DATA COLLECTION:Primary Source: Interviewing customers
Questionnaire.
Secondary Source: Books
Research publications
Official sites of the companies
RESEARCH DESIGN:
Exploratory study for the research topic involved interaction with consumers to identify the
factors influencing the perception and choice of fast food outlets in order to establish and support
their band image. Also it was carried out for the purpose to study the probable service gaps. It
was found that many factors influenced the customers choice and perception of Fast Food
Outlets. This created an interest in identifying the key factors influencing the consumer
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perception on Fast Food Outlets and also identifies the service gaps in their operations. In view
of these, the aforesaid objectives were set for the study. In the first phase, an exploration of the
factors influencing the consumer perception, choice and preference of fast food outlets is studied.
In the second phase of the research, the service gaps with respect to expectation and perception
was explored. In the third phase of the study, the demographic (age and income) influence on
fast food preference has been discussed.
DATA ANALYSIS METHODS:
Statistical analysis e.g. descriptive statistical analysis and frequency distribution was performed
on Data available. This analysis was applied to categorized data. For scaled data, reliability
analysis has been applied. Author has done reliability analysis in order to identify inconsistencies
in the data set. Amer Bakery has not been taken for study and analysis, though it witnesses high
footfalls, it is not alike these two names in fast food business model (Retail chain & franchisee)
Table 1. Frequency distribution of the respondents for visiting FFO for snacks, lunch, dinner

No. of Times

Lunch

Snacks

Dinner

Frequency

Frequency

Frequency

Never visited

22

11.9

19

10.3

41

22.2

Once a month

27

14.6

29

15.7

30

16.2

1-2 times a month

42

22.7

43

23.2

19

10.3

1-2 times a week

33

17.8

39

21.1

37

20.0

3 times a week & more


Missing data

10
51

5.4
27.6

21
34

11.4
18.4

15
43

8.1
23.2

185

100

185

100

185

100

Data concludes: going for snacks and lunch preferred time is close to each other for visiting fast
food outlet followed by dinner. Young consumers of fast foods visit fast food outlets one to two
times in a week or in a month. It is not a regular behavior of their eating habits as it changes
because of frequent office and college events. It is not a regular behaviour of their eating habits
as it changes because of frequent office and college events.
TABLE 2. Frequency distribution of the respondents for visiting particular outlet

Name of Fast Food Outlet


Dominos'
McDonalds
Pizza Hut
KFC

Visit Frequency
69
113
98
44

Data concludes: Mc Donald is most favored FFO ; followed by Pizza Hut lying close to it and
next Dominos' and KFC in sequence.
TABLE 3 Frequency distribution of the respondents w.r.t. their orders from home (home delivery)

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Name of FFO
McDonalds
KFC
Pizza Hut
Dominoes
No order is placed

Frequency
34
18
52
47
43

TABLE 4. Distribution of the respondents based on individual's influence on decision to select FFO

Influencers
Friends / peers
Relatives
Neighbors
Other visitors

Frequency
183
12
4
4

Data Concludes: variety of the Questions in the Questionnaire Checking with the stimuli/ies
influencing consumer decision to select FFOs. It explains the maximum influence (90.14% of
respondents) of friends/Peers followed by relatives and others.
TABLE 5. Rating of attributes of FFO to select eating points

Features & Attributes


Ambience and hygiene
Price.
Food taste and quality
Variety of food
Service speed
Location

Rating
4.12
3.96
4.47
4
4
3.69

Data concludes: Taste & quality of food is of high priority for consumers followed by ambience
& hygiene, price, service speed, varieties and location consumers are attracted more with taste,
ambience & hygiene. Location is not so important for this age group of consumers.
TABLE 6. Reasons for eating out at FFO

For Fun

89

For Change

76

Family Outing

15

Time saving

Data concludes: mostly young Indian consumers do visit a FFO either for a fun or change.
TABLE 7: Rating Nutritional Values of FFO (distribution of respondents)

Rating of Nutritional Values


Minimum
Adequate
Healthy food
Total

Frequency
n
103
74
8
185

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%
55.7
40.0
4.3
100

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Data concludes : majority of young consumers feel that there is inadequate nutritional values at
FFO.
TABLE 8: Rating nutritional value and hygiene factors

Rating of Nutrin'l values & Hygiene factors


Nutritional Values
Hygiene factors

Rating Scores
2.67
4.1

Data concludes: young consumers are more concern and aware about the nutritional values and
hygiene factors of FFO. Hygiene factor is of their prime concern as they behaved high (4.1 out of
5)on the scale.

Findings
The eating habits of youngsters are inuenced by many factors like home environment,
educational environment, accessibility and availability of fast food providers, and social
environment. In addition, emerging features of independence in their eating habits, divergence of
food preferences at home and at fast food outlets, awareness on nutritional values and ambience
of place affects their visit and like for fast food outlets. The results of data analysis with respect
to these issues of food consumption behaviour of youngsters vis--vis fast food outlets are
presented as following.
Demographics of the respondents (data were collected with respect to demographics of
the youngsters) i.e.
Educational background (science, arts, commerce MBA and engineering stream),
Age (18-22 years, 23-27 years and 28-32 years).
Marital status was ignored as none was found married during interview.
A total of 93.6 per cent respondents (= 173.16) were in 21-27 years age category. It
means there was not much variation in case of age.
Another 6.4% (=11.84 units) fall in rest of age category.
49.03 percent respondents (= 90.70 units) were from the art and commerce stream.
44 per cent (= 81.4 units) from the engineering and MBA stream.
The rest (=12.90 units) were from science and other backgrounds that do not cause
signicant difference either way
Respondents sample (173.6 +11.84 = 185=100%)
ADVERTISING & PROMOTIONAL INFORMATION:

Author asked the fast food consumers to express their views on availability about maintaining
hygiene conditions in and around kitchen, around eating areas, about nutritional charts and its
impact on their visits to fast food outlets. Almost 80 % of the consumers are of the view that fast
food outlets must provide information on hygiene conditions. A total of 74% of the consumers
pointed out that such information will increase their frequency of visiting fast food outlets. In
addition 53 per cent consumers want to have nutritional chart of every food items served should
to be displayed by fast food outlets. Interesting part of the ndings is about preference of fast
food versus home cooked food. A total of 89 per cent of the consumers prefer home cooked food
in comparison to fast food outlets food. The major reasons cited by the consumers are:
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They know what is prepared and how but not sure about fast food outlets;
Home food is more nutritious, delicious, tasty, fresh, clean and healthy for body;
Home food is cooked as per our needs, personal liking;
Home cooked food has low fat contents.
Fast food outlets food is heavy for wallet and stomach;
Ambience at home is better as we can enjoy the way we want
Fast food outlets food is for fun, change, entertainment of the friends and sometime for
convenience (especially for working women);
Fast food outlets food may be harmful;
Majority of these customers believe that television (59%) is the best choice for advertising for
fast food outlets followed by newspapers (8%), cinema halls (21%), magazine (12%) and others.
Among others, means of advertising suggested by the consumers are:
Mobile phones (9%);
Social networking (11% )
Radio musical channels (23%);
Handbills and discount coupons (7%);
Hoardings on the roads (6%);
Billboards & banners (4%);
Reference of friends (19%); and
Word-of-mouth (21%), etc.

Conclusion:
Consumer acceptance of food served by fast food outlets is critically important for the
future growth of FFO. Though the rating of FFO features under study on choice and
preferences is significantly understood as youngsters (consumers) visit FFOs for fun,
change and entertaining their peers but certainly not as a substitute of homemade food.
Comparing the rating scores of attributes, among big names in FFO e.g. Mc Donald,
Pizza Hut, Dominos, etc. at Bhopal indicates that consumer select an FFO based on their
choice and preference. It has significantly strengthened the brands of FFO in the city.
Consumers demanded more information through their choice media on significant values
they look for in a brand or a product at FFO.
It has been concluded and suggested that the mode of media (i.e. societal and viral
marketing) indicates its significant value which can attract the young segment in order to
facilitate their hangout needs and appetite.
Based on this analysis we can say that with more and more acceptability of FFO and
change in lifestyle, competing among FFOs w.r.t. quality of foods and service will be
prominently considered in future.
REFERENCES
1.
2.
3.
4.

Adams, R. (2005), Fast food, obesity and tort reform: an examination of industry responsibility for public health, Business and
Society Review, Vol. 110 No. 3, pp. 297-320.
Barker, K. (2006), Fast food greases Indias way to fat, Chicago Tribune, available at: www.chicagotribune.com/news
Bender, A.E. and Bender, D.A. (1995), A Dictionary of Food and Nutrition, Oxford University Press, Oxford.
Bowman, S.A. (2005), Agricultural research, Science Update, Vol. 53 No. 1, p. 23.

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Brown, K., McIlveen, H. and Strugnell, C. (2000), Nutritional awareness and food preferences of young consumers, Nutrition &
Food Science, Vol. 30 No. 5, pp. 230-5.
Data Monitor (2005), Fast food in Asia-Pacic: industry prole, available at: www.datamonitor.com
Davies, G.F. and Smith, J.L. (2004), Fast food: dietary perspectives, Nutrition & Food Science, Vol. 34 No. 2, pp. 80-2.
Gupta, M. (2003), Small town India on fast food express, Express: Hotelier & Caterer, September 8,available at:
www.expresshotelierandcaterer.com/20030908/foodservice01.shtml
Kara, A., Kaynak, E. and Kucukemiroglu, O. (1995), Marketing strategies for fast-food restaurants: a customer view, International
Journal of Contemporary Hospitality Management, Vol. 7 No. 4, pp. 16-22.

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Effective Communication at Workplace


Dr.Ankita Goutam
Associate Professor (Humanities)
Technocrats group of Instituions
Bhopal (M.P.)
Once a human being has arrived on this earth, communication is the largest single
factor determining what kinds of relationships he makes with others and what
happens to him in the world about him.
Virginia Satir

Effective communication can be defined as;


'Passing relevant information, in a style and form that is clearly understandable, to the right person at the
right time.

Abstract
We are social beings gathered and filled with the people around us, and to exist ourselves we
communicate with each other .In our personal lives ,we need others to share and exchange our
views, solve problems ,we need them for friendship ,comfort, ,love and security ,and at
workplace in order to achieve our goals and objectives. To achieve these goals we need to
communicate with each other. It is the glue that holds a society together. The better we are at
communication, the more effective we are at achieving our hopes and dreams (Alessandra,
Hunsaker, 1993).
The present study aims at investigating the diverse forms of communication particularly in
English if practiced effectively will help the employees in the diverse workplace settings.
Effective communication in the workplace plays a prominent role in developing long lasting
rapport with the members ,which will also lead to a work in progress The paper further focuses
on the fact that communication in the workplace can take many forms and has a lasting effect on
employee motivation. If employees feel that communication from management is effective, it
can lead to feelings of job satisfaction, commitment to the organization and increased trust in the
workplace.

INTRODUCTION
Fundamental and vital to all managerial functions, communication is a means of transmitting
information and making oneself understood by another or others. It is the glue that holds a
society together .The ability to effectively communicate with other people is an important
skill. Through communication, people reach some understanding of each other, learn to like
each other, influence one another, build trust, and learn more about themselves and how
people perceive them. People who communicate effectively know how to interact with others
flexibly, skillfully, and responsibly, but without sacrificing their own needs and integrity.
The ability to communicate enables people to form and maintain personal relationships. And
the quality of such relationships depends on the caliber of communication between the
parties (Brennan, 1974).
Workplace communication skills has become the most desired aspect in organizations,
wherein employees are urged to improve their spoken and listening skills, along with their
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body language. This article deals with improving interpersonal communication skills in the
work environment. The effective tips mentioned here provide readers on how to make good
verbal communication a seamless part of their work life. The importance of verbal (oral and
written) communication is a major challenge for managers because they are responsible for
providing information, which results in efficient and effective performance in organizations
.It is the creation or exchange of thought ,ideas, emotions, and understanding between
sender(s) and receiver(s). It is essential to building and maintaining relationships in the
workplace. Communication is considered to be the backbone of todays multi-cultural
business world .Although managers spend most of their time communicating (eg. sending or
receiving information), one cannot assume that meaningful communication occurs in all
exchanges (Dunn, 2002). Once a memorandum, letter, fax, or e-mail has been sent, many are
inclined to believe that communication has taken place. However, communication does not
occur until and unless information and understanding have passed successfully between
sender and the intended receiver.
It is a significant part of a managers job. In todays team-oriented workplace, the development
of good interpersonal communication skills is an important key to success. Effective
communication in the workplace happens with effort, that effort must include participation and
agreement between supervisors and employees because everyone has similar goals and
everyone must work with the other to achieve the goals .To build the competence and
commitment of employees, a professional has to communicate effectively. Through effective
communication, a manager can mobilize the employees behind an organizations vision and
inspire a conscious and concerted team effort to attain the vision. Effective communication
demands that the parties involved in communication have a shared and clear appreciation of the
various definitions and parameters about which information is being exchanged. According to
Achieve Solutions Value Options (a service for managed behavioral health care), a sense of
common purpose can be the key in getting along with your coworkers. If you do not understand
your departments or organizations goals and objectives, ask your boss. If you and your
coworkers focus on common purpose, tasks become easier and results more predictable.
In the spring of 2006, the Conference Board, Corporate Voices for Working Families, the
Partnership for 21st Century Skills, and the Society for Human Resource Management surveyed
human resource professionals to determine what skills are necessary for a professional to meet
the needs of tomorrows workforce . The report noted that, the five most frequently reported
applied skills considered very important for any professional are :
Professionalism/Work Ethic
(83.4 percent),
Teamwork/Collaboration
(82.7 percent),
Oral Communication
(82.0 percent)
Critical Thinking/ Problem Solving
(72.7percent), and
Written Communication
(71.5 percent)
(Casner-Lotto & Barrington,2006, p. 20).
Communication skills are one of the officers most important weapons on the street. While many
hours of instruction are provided on firearms, most officers will use their firearms infrequently
throughout their careers. In contrast ,effective communication skills are essential on a daily
basis,yet very little emphasis is placed on this important skill in most academy training (NCBI,
n.d., p. 2).
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Employees are the organizations brain cells, and communication represents the nervous system
that carries information and shared meaning to vital parts of the organizational body. Effective
communication brings knowledge into the organization and disseminates it to employees who
require that information. Effective communication minimizes the silos of knowledge problem
that undermines an organizations potential and ,in turn, allows employees to make more
informed decisions about corporate actions .
Effective communication is one of the most critical goals of organizations (Spillan, Mino, &
Rowles, 2002). Recent research evidence suggests that an effective manager is one who spends
considerable time on staffing, motivating, and reinforcing activities (Luthans, Welsh, & Taylor,
1988). In contrast if there is an internal communication gap existed within an organization there
is usually a breakdown in the way information is been sent from the sender to the receiver.
A study based upon conversations among the customer service representatives tells that if there
is an internal communication gap it becomes difficult for anyone to effectively achieve goals.
The customer service representative and/or unit leaders main responsibility is to relay
information to the peoples with whom the organization serve. If changes are not communicated
with the employees than they may risk the chance of giving the incorrect information among the
colleagues.
Communication barriers can pop-up at every stage of the communication process and have the
potential to create misunderstanding and confusion. To be an effective communicator and to get
your point across without misunderstanding and confusion, your goal should be to lessen the
frequency of these barriers at each stage of this process with clear, concise, accurate, well
planned communications (Fowler & Manktelow, 2005).
Skilled communicators are able to build rapport with coworkers and business associates, which
can help to complete the project efficiently and successfully. They know whose expertise to tap
when they need assistance and are adept at resolving conflicts and building consensus among
team members while achieving the goal (USA Today, 2002).
The skill of listening too plays an important role when we talk about "upward communication."
There are many avenues through which management can send messages downward through a
business organization, but there are few avenues for movement of information in the upward
direction (Nichols & Stevens, 1999).
Unclear communication not only results in errors and missed deadlines, but also lies at the root
of many other serious workplace issues, such as low employee morale and poor job performance.
Managers should invest the necessary time to ensure that project goals and instructions are free
of ambiguity and foster an environment that encourages the open exchange of ideas (USA
TODAY, 1999). By successfully getting your message across, you convey your thoughts and
ideas effectively, if not done successfully , causing a communication breakdown and creating
roadblocks that stand in the way of your goals-both personally and professionally (Fowler &
Mankelow, 2005) may deteriorate the performance of both a communicator and communicatee.
To get through these barriers and gaps , make the performance effective in the working place
some tips are suggested to help managers to bridge any communication gap were (Fortune
1994):
1. Listen actively for the subtext of people's words.
2. Persuade rather than command.
3. Target your words to your audience.
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4. React to content, not to people's manner of expressing themselves.


5. Let people know that criticism is welcome.
6. Make your intentions clear before acting.
7. Assume that people take responsibility for what they say.
It is very much necessary to get your message across successfully, as/since it leads to
progressing. To do this, you must understand what your message is, what audience you are
sending it to and how it will be perceived. You must also weigh-in the circumstances your
communications, such as situational and cultural context (Fowler & Mankelow, 2005).Consistent
inattention to communication, its functions and malfunctions, hampers the efficiency and
profitability of organizations and stifles the development of those who inhabit them. As long as
we ignore, rationalize, or deny our failures as communicators, for that long will we shrink from
responsibility rather than grow toward our intellectual, emotional and contributive potential.
(Breman, 1974).)
Conclusion
Communication is the glue that holds a society together because it is important in every aspect of
our lives. In order for any relationship to work properly we have to learn to communicate
effectively with each other. The importance of communication hasn't changed from the time in
which John Brennan wrote The Conscious Communicator in 1974 to the time Shel Holtz wrote
Corporate Conversations in 2004. The fact still remains that in order for any business whether
entrepreneur, partnerships or corporate offices or academics to succeed we have to communicate
with someone to voice our ideas.
In our working environment, we need each other in order to achieve our goals
and objectives. It is a self-evident fact that workplace communication plays a vital role in
employee motivation and performance, as real changes are taking place in modern organizations
which confront the new reality of tighter staffing, increased workloads, longer hours and a
greater emphasis on performance, risk-taking and flexibility. Employee communications have a
crucial role to play in the management effort to reorient employees perplexed by changes, or
inform and motivate those who adapt more readily. Within this general need to communicate
there exists the specialized requirement for effective communication as an outcome of managing
an organizations employee relations.
None of these goals can be achieved without communication as it is the heart of the
business, is the most important of all entrepreneurial skills. The destiny of the business depends
on the quality of your relationships. Your ability to transmit information helps both clients and
employees feel they can communicate with and ultimately trust you (Black Enterprise, Charles,
1998, pg 116).
The literature review tells about the importance of internal communication.It provided the
researcher with background information on the different ways and the different styles of
communication. Needless to say, face-to-face communication seemed to remain the number one
style of communicating within organizations. Research has also found that a lack of
communication within an organization can decrease productivity, lower moral and be the cause
of other serious workplace issues. The development of a strategic internal communication
strategy and its implementation can provide a number of benefits to organizations, such as
keeping employees motivated and engaged, and sharing clear, consistent messages with
employees in a timely manner (Black Enterprise, Clemons, pg 46).
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Todays organizations are run by multi and cross-functional teams which show little
tolerance for unquestioned authority. To deal with this situation, the art of persuasion and the
effort to find the correct emotional match with your audience is necessary. This match means
that it is not enough for communication to be a one-way ticket (Torrington and Hall 1991). There
has to be downward and upward communication. Effective downward communication allows
decisions taken by the management of the organization to be converted into action by employees,
also boosts teamwork, trust, better relations, productivity and fewer chances of rumors and
miscommunication. Furthermore, it allows for a consistency of action, and it may stimulate a
greater commitment on the part of employees. Upward communication helps managers to
understand both business and personal issues that affect employees. In addition, creative
suggestions from employees help management in decision making and improvement of the
organization.
REFERENCES
[1] Alessandra, T & Hunsaker, P. (1993). Communication at Work. Fireside, Simon & Schuster, New York, NY.
[2] Brennan, J. (1 974). The Conscious Communicator; making communication work in the workplace. Addison-Wesley Publishing Co. Reading,
MA
[3] Charles, K. (1998). Peak Performance the art of Communication. [Electronic version]. Black Enterprise. August 1998, pl17(1)
[4] Clernons, J. (2003). Avoiding a communication breakdown: keeping employees informed benefits business. [Electronic version]. Black
Enterprise, Sept 2003 v34 i2 p46
[5] D'Aprix, R. (1996). Communicating for Change: connecting the workplace with the marketplace. Jossey-Bass Publishers. San Francisco, CA.
[6] Fink, A & Kosecoff, J. (1 998). How to Conduct Surveys a Step by Step Guide. Sage Publications, Thousand Oaks.
[7] Galvin, R. (1996). Communication: the lever of effectiveness and productivity. (Managing Innovation). [Electronic version]. Daedalus. Spring
1996 v125 n2 p137(10).
[8] Holtz, S. (2004), Corporate Conversations:a guide to crafting effective and appropriate internal communications. Arnacom, New York, NY.
[9] Nucifora, A. (2003). Employees are customers too. The Business Journal. Retrieved June 19,2005 from EbscoHost.
[10] MSN Encarta Premium (2005). Retrieved May 2005 from http:// www.msn.com MsnEncarta Premium
Magazine Center (2005). Communicating well on the Job[Electronic version]. USA Today. November
2002. v 1 3 1 i260 p 9(1). RetrievedMay 2005 from http://www.encarta.msn.com
[11] MsnEncarta Premium Magazine Center (2005). Poor Communication Stifles Productivity [Electronic version]. USA Today. September
1999. v128 i2652 p9. Retrieved May 2005 from http: www.encarta.msn.com.
[12] Salant, P & Dillman, D (1994). How to Conduct your own Survey. John Wiley & Sons, Inc. New York, NY.
[13] Schonfeld, E. (1994). Communication goes flat. Fortune. September 5, 1994 v130 n5 p16(1).
[14] Surveyconsole. (2005). Retrieved May 2005, from http://www.surveyconsole.com
[15] Tannen, D. (1994). Talking from 9 to 5: how women 's and men 's conversational styles affect who gets heard, who gets credit, and what gets
done at work. W. Morrow

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