A Study On Consumer Buying Pattern Towards LG Appliances At

Sunder Enterprises,Dehradun

Project Submitted to Savitribai Phule University Of Pune

In Partial Fulfilment of Requirement for the Degree of
MASTER OF BUSINESS ADMINISTRATION
BY
ABHISHEK SNEHI
(MBA Marketing)
UNDER THE GUIDANCE OF :
Mr. Sachin Mali

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH

ACADEMIC YEAR 2013-2015

CERTIFICATE

This is to certify that the Project Report titled A Study On Consumer

Buying Pattern Towards LG Appliances At Sunder
Enterprises,Dehradun which is being submitted herewith for the award of
MBA, Pune is the result of the original research work completed by Abhishek Snehi
under my supervision and guidance and to the best of my knowledge and belief the
work embodied in this Project Report has not formed earlier the basis for the award
of any degree or similar title of this or any other University or examining body.

Mr.Sachin Mali

Dr. AVADHOOT POL

Project Guide Name

Director

Place: PUNE

Date:

DECLARATION

I, the undersigned, hereby declare that the Project Report titled titled A Study
On Consumer Buying Pattern Towards LG Appliances At
Sunder Enterprises,Dehradun written and submitted by me to Sinhgad
Institute Of Business Administration And Research, Pune in partial fulfillment of the
requirement for the award of MBA in Marketing is my original work and the
conclusions drawn therein are based on the material collected by myself.

Place: Pune
Date:
Name of the Research Student: Abhishek Snehi
Sign:

ACKNOWLEDGEMENT

The satisfaction of the completion of any successful task is incomplete without

mentioning the names of the people who made it possible and whose constant
guidance and encouragement crowned our efforts with success.
I have pleasure in submitting this report and I take this opportunity to express my
sincere gratitude to all those who have helped me in this task.
I express my sincere gratitude to Mr. Chandeep Singh at Sunder Enterprises who
gave me all the vital inputs and necessary information regarding the project and the
organisation. I would like to sincerely thank my project guide Mr.Sachin Mali and our
Director
Dr Avadhoot Pol for giving me the opportunity, constant encouragement, support and
guidance and for imparting their views regarding the project.
And last but not the least, I am thankful to all the respondents who made have
valuable contributions and constructive feedbacks towards the completion of this
project.

ABHISHEK SNEHI

TABLE OF CONTENTS
EXECUTIVE SUMMARY
COMPANY PROFILE
PROBLEM STATEMENT
OBJECTIVES
RESEARCH METHODOLOGY
LIMITATIONS
CONCEPTUAL BACKGROUND
DATA PRESENTATION,ANALYSIS AND
INTERPRETATION
FINDINGS
CONCLUSION OF FINDINGS
SUGGESTIONS AND RECOMMENDATIONS
ANNEXURE
QUESTIONNAIRE
BIBLIOGRAPHY

PAGE NO.

EXECUTIVE SUMMARY

TITLE CONSUMER BEHAVIOUR TOWARDS LG TELEVISION IN

DEHRADUN

INTRODUCTION
The report on consumer behaviour of LG television , consumer physchology is most
important to study of consumer to know how people behave while purshasing, using
and disposing the product and services.its necessary for marketer to know the buying
behaviour of the consumer before marketing the product and services in order to be a
successful marketer.

The objectives of report were as follows:

The primary objective of the study is to know about the consumer behaviour towards
the LG TELEVISION.
To know the popularity of LG television in DEHRADUN City.
To know the market share of LG television in DEHRADUN City.
To know the satisfaction level of current user of LG television.

Research was undertaken by following the below research methodology:

Research problem Research design Descriptive.
Sample Universe DEHRADUN.
Sample frame : House wives.
Sample unit Each household in 4 mojor area.
Pleasant Valley,Doon Vihar,Kishanpur,Rajpur, DEHRADUN town.
Sampling Technique convience sampling method used.
Desire sample size A sample size of 100 respondent was specified.
Research instrument structured questionnaire.

CHAPTER 1

BRIEF INTRODUCTION

Introduction to LG Electronic India Pvt. Ltd.

Introduction to SUNDER ENTERPRISES

INTRODUCTION TO LG Electronic India Pvt.

Ltd.

Established In: May 1997

Managing Director (India) : Mr. K.R.Kim
Corporate Office: Plot no 51, Udyog Vihar, Surajpur Kasna Road, Greater Noida
(UP)
Manufacturing Units: Greater Noida (U.P.) & Pune (Maharashtra)
Corporate Website: http://www.lgindia.com
LG Electronics India Pvt. Ltd. Is established in 1997 and it is wholly owned
subsidiary of LG Electronics, South Korea. In India for a decade now, LG is the
market leader in consumer durables and recognized as a leading technology innovator
in the information technology and mobile communications business. LG is the
acknowledged trendsetter for the consumer durable industry in India with the fastest
ever nationwide reach, latest global technology and product innovation.
One of the most formidable brands, LGEIL has an impressive portfolio of Consumer
Electronics, Home Appliances, GSM mobile phones and IT products.

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics,

South Korea was established in January, 1997 after clearance from the Foreign
Investment Promotion Board (FIPB).
The trend of beating industry norms started with the fastest ever-nationwide launch by
LG in a period of 4 and 1/2 months with the commencement of operations in May
1997.
LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in
1998, with an investment of Rs 500 Crores. This facility manufactured Color
Televisions, Washing Machines, Air-Conditioners and Microwave Ovens.
During the year 2001, LG also commenced the home production for its eco-friendly
Refrigerators and established its assembly line for its PC Monitors at its Greater
Noida manufacturing unit. The beginning of 2003 saw the roll out of the first locally
manufactured Direct Cool Refrigerator from the plant at Greater Noida.
In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune,
Maharashtra that commences operations in October 2004. Covering over 50 acres, the
facility manufactures LED TV, GSM Phones, Color Televisions, Air Conditioners,
Refrigerators, Microwave Ovens Color Monitors.
Both the Indian manufacturing units has been designed with the latest
technologies at par with international standards at South Korea and are one of the
most Eco-friendly units amongst all LG manufacturing plants in the world.
LG has been able to craft out in ten years, a premium brand positioning in the
Indian market and is today the most preferred brand in the segment.

INTRODUCTION TO SUNDER ENTERPRISES

SUNDER ENTERPRISES is a sole trading concern and was established on 24 of

January 1989 by Mr. RACHHPAL SINGH, with an investment of Rs.1lac.
He is an eminent businessmen and great visionary. He tried his best to provide all the
types of electronic goods to fulfill the esteem needs of the customer by providing
them esteem products excellent services. SUNDER ENTERPRISES never look back
and grew steadily in every sphere of marketing.
The firm in its philosophy looks to render quality service to there customer and
provide benefits by selling there products.
In the year 1997 LG ELECTRONICS INDIA PVT. LTD. Has appointed them as
authorized dealer in DEHRADUN city. He introduces an additional capital of Rs.3
lacs to set up the LG EXCLUSIVE SHOWROOM.
SUNDER ENTERPRISES has wide market coverage and large market share in and
around DEHRADUN, which starts from Jakhan-Kishanpur-Rajpur. It covers the
places like Makkawala,Kuthalgate, etc.
SUNDER ENTERPRISES is located in the heart of DEHRADUN city opp. To
Reliance Digital,its biggest competitor.
SUNDER ENTERPRISES have number of competitors such as Frontier
Electronics,

Balaji Electronics etc. inspite of so many competitors

SUNDER

ENTERPRISES has got a large market share and most trusted enterprise in and
around DEHRADUN and has a turnover of around 3-4 lacs per month.
The firm has its staff in all 6 numbers of employees, 2 salesperson, 2 technician,
1 delivery boy and a manager.

Facilities provided by SUNDER ENTERPRISES:

They provide various facilities to the customers to fulfill there esteem needs. The
facilities provided by SUNDER ENTERPRISES are:

0% interest finance: They provide 0% interest on purchase of goods on installment

basis for the convenience of the customers.

Door to door service: They deliver the goods at customers door provide door to door

service to the customer on the purchase of goods.

After sales service: They provide after sales service for their customers when there is
any sort of major or minor problem with the products, after receiving just a call by the
customer they sent there technician to tackle the problem.

Offers:
Generally SUNDER ENTERPRISES gives special offers on the of various
occasion especially at the time of festivals like Depawali, Ramzan, etc.

Brands Available In SUNDER ENTERPRISES:

SUNDER ENTERPRISES deals with various brands, some of the major brands
are

LG
ONIDA
SAMSUNG
SONY
VIDEOCON
SANSUI
HYUNDAI

PROBLEM STATEMENT

Consumer Buying Pattern Towards LG Appliances At Sunder

Enterprises, Dehradun.

LITERATURE REVIEW

Consumer behavior
Types of buying decision behavior
The buyer decision process
Factors influencing consumer behavior

Consumer Behaviour
Definition:

According to the American Marketing Association, Consumer Behaviour is defined

as "the dynamic interaction of affect and cognition, behaviour, and environmental
events by which human beings conduct the exchange aspects of their lives."
More generally, Consumer Behaviour is the psychology behind Marketing and the
behaviour of consumers in the Marketing environment.
Cognitive Psychology and Social Psychology are the two major psychological
disciplines of Consumer Behaviour.
Cognitive Psychology is the study of mental behaviours. The Attention, Perception,
Comprehension, and Decision Making are the various aspects of cognitive
psychology that play an important role in Consumer Behaviour.
Social Psychology is the study of the manner in which the personality, attitudes,
motivations, and behaviors of the individual influence are influences by social groups.
Today, many brand marketers and advertisement agencies believe that one-to-one
marketing is a key ingredient in the marketing mix. They share the opinion that
adding a large dose of up close and personal interaction sparks consumer behaviour.
Consumer behaviour Study of how people behave when obtaining, using, and
disposing of products and services. Consumer jury test a method of testing
advertisements that involves asking consumers to compare, rank, and otherwise
evaluate the advertisement

TYPES OF BUYING-DECISION BEHAVIOUR

Consumer decision making varies with the type of buying decision. The
decisions to buy shampoo, a cricket bat, a digital television, a new car are all very
different. Complex and expensive purchases are likely to involve more buyer
deliberation and more participants.
It consist of four different buying behaviour, i.e. Complex buying behaviour,
Dissonance-Reducing buying behaviour, Habitual buying behaviour, and VarietySeeking buying behaviour.

High involvement

Significant
differences
Between
brands

Few
differences
between

Low involement

H
C
V
D
o
i
a
m
r
s
b
p
s
i
l
e
o
t
e
t
n
u
x
y
n
a
a
l
S
n
e
c
e
k
i
R
n
e
g
d
u
c
i
n
g

brands

Complex Buying Behaviour:

Complex buying behaviour involves three steps. First, the buyer develops
beliefs about the product. Second, he or she develops attitudes about the product.
Third, he or she makes a thoughtful choice. Consumers engage in complex buying

behaviour when they are highly involved in purchases and aware of significant
differences among brands. This is usually the case when the product is expensive,
bought infrequently, risky, and highly self-expensive.

Dissonance-Reducing Buying Behaviour:

Sometimes the consumer is highly involved in a purchase but sees little
difference in brand. The high involvement is based on the fact that the purchase is
very expensive, infrequent, and risky. If the consumer finds quality differences in the
brands, he or she might go for the higher price. If the consumer finds little difference,
he or she might simply buy on price or convenience.

Habitual Buying Behaviour:

It occurs under the conditions of low consumer involvement and little
significant brand difference. They simply go to store and reach for a brand. If they
keep reaching for the same brand, it is out of habit rather than strong brand loyalty.
Consumers appear to have low involvement most low-cost, frequently purchased
products.

Variety-Seeking Buying Behaviour:

Consumer undertakes variety-seeking buying behaviour in situations
characterized by low involvement but significant brand differences. Here, consumers
often do a lot of brand switching. Brand switching occurs for the sake of variety rather
than dissatisfaction.

The Buyer Decision Process

The buyer decision process consists of five stages: need recognition, information
search, evaluation of alternatives, purchase decision, and post-purchase behavior.
Clearly, the buying process starts long before actual purchase and continues long after.
Marketers need to focus on the entire buying process rather than on just the purchase
decision.

The figure implies that consumers pass through all five stages with every purchase.
But in more routine purchases, consumers often skip or reverse some of these stages.

Need Recognition:
The buying process starts with need recognitionthe buyer recognizes a
problem or need. The need can be triggered by internal stimuli when one of the
persons normal needhunger, thirst, sexrises to a level high enough to become a
drive. A need can also be triggered by external stimuli.

Information Search:

An interested consumer may or may not search for more information. If the
consumers drive is strong and satisfying product is near at hand, the consumer is
likely to buy it then. If not, the consumer may store the need is memory or undertake
an information search related to the need.

Evaluation of Alternatives:
The marketer needs to know about alternative evaluationthat is, how the
consumer processes information to arrive at brand choices. Unfortunately, consumers
do not use a simple and single evaluation process in all buying situations.

Purchase Decision:
In the evaluation stage, the consumer ranks brands and forms purchase
intentions. Generally, the consumers purchase decision will be to buy the most
preferred brand, but two factors can come between the purchase intention and
purchase decision. The first factor is attitudes of others, the second factor is
unexpected situational factor.

Post-Purchase Behaviour:
The marketers job does not end when the product bought. After purchasing
the product, the consumer will be satisfied or dissatisfied and will engage in post
purchase behavior of interest to the marketer. If the product falls short of expectations,
the customer is disappointed; if it meets expectations, the consumer is satisfied; if it
exceeds expectations, the consumer is delighted.

Factors influencing consumer behaviour

Consumers do not make their decisions in a

vacuum.

Their purchases are highly influenced by cultural, social,

personal, and psychological factors. For the most part, they are
non controllable by the marketer but must

be

taken in to account. We want to examine the

influence of each factor on a buyers

behavior.

Personal Factors:
The buyers decisions are influenced by personal factors such as the buyers age, lifecycle stage, occupation, economic circumstances, life style, and personality.

Age: people change the goods and services they buy over their life times. Tastes in
food, clothes, furniture, and recreation are often age related.

Life cycle: the stage through which families might pass as they mature over a time.
Marketers often define their target market in terms of life cycle stage and develop
appropriate products and marketing plan for each stage. Traditional family life cycle
stages include young singles and married couple with children. Non traditional stages
such as unmarried couples, singles, marring later in life, childless couple, same sex
couples, single parents, extended parents and others.

Occupation:

A persons occupation affects the goods and services bought.

Marketers try to identify the occupational groups that have an above average interest
in their products and services. A company can even specialize in marking products
needed by a given occupational group.

Economic circumstances: A persons economic circumstances will affect

economic choice. Marketers of income-sensitive goods watch trends in personal
income, savings, and interest rates. If economic indicators point to a recession,
marketers can take steps to redesign, reposition, and reprice their products closely.
Lifestyle: People coming from the same subculture, social class, and occupation may
have quite different lifestyles. Lifestyle is a persons pattern of living as expressed in

his or her psychographics. Lifestyle captures something more than the persons social
class or personality.

Psychological factors:
A persons buying choices are influenced by for major psychological factorsmotivation, perception, learning, beliefs and attitudes.

Motivation: A person has many needs at any given time. Some needs are biogenic;
they arise from psychological states of tension such as hunger, thirst, or discomfort.
Others are psychogenic; they arise from psychological states of tension such as need
of recognition, esteem, or belonging. A need becomes a motive when it is aroused to a
sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the
person to act.

Perception: A motivated person is ready to act. Perception is the process of

selecting, organizing and interpreting information inputs to produce meaning.
Perception depends not only on the physical stimuli, but also on the stimulis relation
to the surrounding field and on conditions within the individual. The key point is that
Perception can vary widely among individuals exposed to the same reality.

Learning: When person act, they learn. Learning involves changes in an

individuals behavior arising from experience. Most human behavior is learned.
Learning theorists believe that Learning is produced through the inter play of derives,
stimuli, cues, responses, and reinforcement.

Beliefs and Attitudes: Through doing and learning, people acquire beliefs and
attitudes. This in turn influences buying behavior. A belief is a descriptive though that
a person holds about something. Peoples beliefs about a product their buying
decisions.
Individual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success or
failure of the firm's marketing strategy.

Social Factors:
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, and social class.

Opinion leaders: An opinion leader is the person in informal, product-related

communication who offers advice or information about a specific product, such as
which of several brands is best or how a particular product may be used.

Roles and Family Influences: Role...things you should do based on the

expectations of you from your position within a group. People have many roles.
Husband, father, employer, etc. Individuals role are continuing to change therefore
marketers must continue to update information.
Family is the most basic group a person belongs to. Marketers must understand:
o that many family decisions are made by the family unit
o consumer behavior starts in the family unit
o family roles and preferences are the model for children's future family
o family buying decisions are a mixture of family interactions and
individual decision making
o family acts an interpreter of social and cultural values for the
individual.

Reference Groups: Individual identifies with the group to the extent that he takes
on many of the values, attitudes or behaviours of the group members. Families,
friends, sororities, civic and professional organizations. Any group that has a positive
or

negative

influence

on

persons

attitude

and

behaviour.

The degree to which a reference group will affect a purchase decision depends on an
individuals susceptibility to reference group influence and the strength of his/her
involvement with the group.

Social Class: An open group of individuals who have similar social rank. Social
class influences many aspects of our lives. Social class determines to some extent, the
types, quality, and quantity of products that a person buys or uses. Lower class people
tend to stay close to home when shopping, do not engage in much pre-purchase
information gathering. Family, reference groups and social classes are all social
influences on consumer behaviour. All operate within a larger culture

Cultural factors:
Cultural factors exert a broad and deep influence on consumer behaviour. The
marketer needs to understand the role played by the buyers culture and subculture.

Culture:

Culture is the set of basic values, perceptions, wants, and behaviors

learned by a member of society from family and other important institutions.

Every group or society has a culture, and Cultural influences on buying behavior
may vary greatly from country to country. International marketers must understand
the culture in each International market and adapt their marketing strategies
accordingly.

Sub-culture:

Culture refers to the set of values, ideas, and attitudes that are

accepted by a homogenous group of people and transmitted to the next generation.

Culture also determines what is acceptable with product advertising. Culture
determines what people wear, eat, reside and travel. Cultural values in our country
good health, education, individualism and freedom.
Culture can be divided into subcultures:
o geographic regions
o Human characteristics such as age and ethnic background.
Culture affects what people buy, how they buy and when they buy.

Understanding Consumer Buying Behavior offers consumers greater satisfaction.

We must assume that the company has adopted the Marketing Concept and are
consumer oriented

MAIN OBJECTIVES OF THE RESEARCH

To ascertain the needs/requirements of the retailers from the company

Necessary for the overall effectiveness of the business.

To analyse the communication effectiveness between the retailers,

Distributors and the company.

To ascertain the level of satisfaction of retailers from the company.

To ascertain the effectiveness of company sales persons within an allotted area.

The primary objective of the study is to known about the consumer behaviour
towards the purchase of LG television.

To know the popularity of LG television in DEHRADUN city.

To know the market share of LG television in DEHRADUN city.

To know the satisfaction level of current user of LG television

RESEARCH METHODOLOGY
The report has been prepared as per the information obtained from two
sources. They are:
1. Primary data
2. Secondary data

1. Primary data:
In primary data collection, we collect the data our self with the help of
questionnaires. The key point here is that the data we collect is unique to us and our
research and, until we publish, no one else has access to it.
There are many methods of collecting primary data and the main methods
include:

QUESTIONNAIRES:
Questionnaires are a popular means of collecting data, but are difficult to
design and often require many rewrites before an acceptable questionnaire is
produced.

INTERVIEWS:
Interviewing is a technique that is primarily used to gain an understanding of
the underlying reasons and motivations for peoples attitudes, preferences or
behaviour. Interviews can be undertaken on a personal one-to-one basis or in a group.
They can be conducted at work, at home, in the street or in a shopping centre, or some
other agreed location.

OBSERVATION:
Observation involves recording the behavioural patterns of people,
objects and events in a systematic manner.

The primary data included the information collected from the:

1. Proprietor, manager and employees of Kiran Enterprise.
2. Structured questionnaire
3. Personal interview with customers

2. Secondary data:
Secondary data includes
a. Data from various magazines
b. Internet
c. Brochures
d. Books
e. Newspapers etc

Research design:
Descriptive
Sample Universe:
DEHRADUN

Sampling plan:
Data collected has been analyzed and interpreted by using simple
percentage method and finally the data is presented in graphs and charts.

Sampling frame:

House wives.
Sample unit :
Each house hold in 4 major area: Nawayeth colony, Madina colony, Azad nager, and
DEHRADUN town.
Sampling Technique:
convience sampling method used.

Desired sample size:

A sample size of 100 respondents was specified.
Research instrument: structured questionnaire

LIMITATIONS OF THE STUDY

The study is restricted in the scope owing to the following limitations:
o The present study is subjected to following LIMITATIONS
o Times was the major limiting factor as the time allotted to conduct
survey was not enough.
o Some respondent were irresponsive.
o The research is directly concerned with the study of consumer behavior
and achieving absolute mathematical accuracy was not possible.
o Method of data collection was through personal and therefore bias
becomes a major limitation.
o Due to the time constraints all the customers were not covered.
o The sample was restricted to 100 customers, which may restrict the
scope and completion of study.
o The scope of study is restricted only to the twin cities of
DEHRADUN.
o Owing to their pre occupation some customers were unable to answer
the complete questionnaire.
o The feedback from the retailers cannot be considered as totally
accurate or perfect because of various personal and subjective
limitations.

Cost and time was also another limiting factor that affected the
study.

CHAPTER 2

CONCEPTUAL BACKGROUND
Just as with the other elements of the firm's marketing program, distribution/retailing
activities are undertaken to facilitate the exchange between marketers and consumers.
There are two basic functions performed between the manufacturer and the ultimate
consumer.
The first, called the exchange junction, involves sales of the product to the various
members
of the channel of distribution. The second, the physical distribution function, moves
products through the exchange channel , simultaneously with title and ownership.
Decisions
concerning both of these sets of activities are made in conjunction with the firm's
overall
marketing plan and are designed so that the firm can best serve its customers in the
market
place and actuality, without a channel of distribution the exchange process would be
far
more difficult and ineffective.
The key role that distribution or retailing plays is satisfying a firm's customers and
achieving a profit for the firm. From a distribution perspective, customer satisfaction
involves maximizing time and place utility to the organization's suppliers,
intermediate customers, and final customers. In short, organizations attempt to get
their products to their customers in the most effective ways. Further, as households
find their needs satisfied by an increased quantity and variety of goods, the
mechanism of exchange-i.e., the channel-increases in importance.

Evolution of Retail market channel

As consumers, we have clearly taken for granted that when we go to a supermarket
the shelves will be filled with products we want; when we are thirsty there will be a
Coke machine bar around the corner; and, when we don' t have time to shop, we can
pick-up the telephone and order from the catalogue or through the Internet. Of

course, if we give it a thought, we realize that this magic is not a given, and that
hundreds of thousands of people plan, organize, and labour long hours so that this
modern convenience is available to you, the consumer. It hasn't always been this way,
and it is still not this way in many other countries
. Perhaps a little anthropological discussion will help our understanding.
The channel structure in a primitive culture is virtually nonexistent. The family or
tribal group is almost entirely self-sufficient. The group is composed of individuals
who
are both communal producers and consumers of whatever goods and services can be
made
available. As economies evolve, people begin to specialise in some aspect of
economic activity.
They engage in farming, hunting, or fishing, or some other basic craft. Eventually,
this
specialized skill produces excess products, which they exchange or trade for needed
goods
that have been produced by others. This exchange process or barter marks the
beginning
of formal channels of distribution. These early channels involve a series of exchanges
between two parties who are producers of one product and consumers of the other.
With the growth of specialization, particularly industrial specialization, and with
improvements in methods of transportation and communication, channels of
distribution
become longer and more complex.
The channel mechanism also operates for service products. In the case of medical
care, the channel mechanism may consist of a local physician, specialists, hospitals,
ambulances, laboratories, insurance companies, physical therapists, home care
professionals, and so forth. All of these individuals are interdependent, and could not
operate successfully without the cooperation and capabilities of all the others.
Based on this relationship, we define a marketing channel as' 'sets of interdependent
organizations involved in the process of making a product or service available for use
or
consumption, as well as providing a payment mechanism for the provider."

This definition implies several important characteristics of the channel. First, the
channel
consists of institutions, some under the control of the producer and some outside the
producer's control. Yet all must be recognized, selected, and integrated into an
efficient channel arrangement.
Second, the channel management process is continuous and requires constant
monitoring
and reappraisal. The channel operates 24 hours a day and exists in an environment
where change is the norm.
Finally, channels should have certain distribution objectives guiding their activities.
The structure and management of the marketing channel is thus in part a function of a
firm's
distribution objective.

MEANING OF RETAILERS
Retail is the sale of goods and services from individuals or businesses to the end-user.
Retailers are part of an integrated system called the supply chain. A retailer purchases
goods or products in large quantities from manufacturers directly or through a
wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can
be done in either fixed locations like stores or markets, door-to-door or by delivery.
Retailing includes subordinated services, such as delivery. The term "retailer" is also
applied where a service provider services the needs of a large number of individuals,
such as for the public. Shops may be on residential streets, streets with few or no
houses or in a shopping mall. Shopping streets may be for pedestrians only.
Sometimes a shopping street has a partial or full roof to protect customers from
precipitation. Online retailing, a type of electronic commerce used for business-toconsumer (B2C) transactions and mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to
obtain necessities such as food and clothing; sometimes it is done as a recreational
activity. Recreational shopping often involves window shopping (just looking, not
buying) and browsing and does not always result in a purchase.

Companies ultimate objective is to cater the needs of customers and it is possible

through ways channels of distribution. These are:
Producer-Customer:- This is the simplest and shortest channel in which no
middlemen is involved and producers directly sell their products to the consumers. It
is fast and economical channel of distribution. Under it, the producer or entrepreneur
performs all the marketing activities himself and has full control over distribution. A
producer may sell directly to consumers through door-to-door salesmen, direct mail or
through his own retail stores. Big firms adopt this channel to cut distribution costs and
to sell industrial products of high value. Small producers and producers of perishable
commodities also sell directly to local consumers.

Producer-Retailer-Customer:- This channel of distribution involves only one

middlemen called 'retailer'. Under it, the producer sells his product to big retailers (or
retailers who buy goods in large quantities) who in turn sell to the ultimate
consumers. This channel relieves the manufacturer from burden of selling the goods
himself and at the same time gives him control over the process of distribution. This is
often suited for distribution of consumer durables and products of high value.

Producer-Wholesaler-Retailer-Customer:- This is the most common and traditional

channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are
involved. Here, the producer sells his product to wholesalers, who in turn sell it to
retailers. And retailers finally sell the product to the ultimate consumers. This channel
is suitable for the producers having limited finance, narrow product line and who
needed expert services and promotional support of wholesalers. This is mostly used
for the products with widely scattered market.
Producer-Agent-Wholesaler-Retailer-Customer:- This is the longest channel of
distribution in which three middlemen are involved. This is used when the producer
wants to be fully relieved of the problem of distribution and thus hands over his entire
output to the selling agents. The agents distribute the product among a few
wholesalers. Each wholesaler distribute the product among a number of retailers who

finally sell it to the ultimate consumers. This channel is suitable for wider distribution
of various industrial products.

TYPES OF RETAILERS:

1. Small -Scale retailers

(i) Street Stalls
(ii) Stalls in Markets or Bazaars
(iii) Co-operative Stores
(iv) Independent Shops
(v) Second-hand dealers
(vi) Hawkers & Pedlars

2. Large-scale Retailers
These may be divided into:(i) Multiple or Chain Shops.
(ii) One price shops.
(iii) Co-operative Stores.
(iv) Departmental Stores.
(v) Mail Order Business.
(vi) Self-service & Supermarkets.

FLOWS IN MARKETING CHANNELS

1. Product flow
2. Negotiation flow
3. Ownership flow
4. Information flow
5. Promotion flow

P
N
O
I
e
w
n
r
g
n
f
o
e
o
m
t
r
o
i
s
m
t
h
a
i
i
t
o
p
i
n
o
n
f
l
f
o
l
w
o
w

Retailing involves all activities required to market consumer goods and services to
ultimate consumers who are motivated to buy in order to satisfy individual and family
needs in contrast to business, institutional, or industrial use. Thus, when an individual
buys a computer at Circuit City, groceries at Safeway, or a purse at Ebags.com, a retail
sale has been made. We typically think of a store when we think of a retail sale.
However, retail sales are made in ways other than through stores. For example, retail
sales are made by door-to-door sales people.

Retailers act as a link between the company, distributor and the consumer. It performs
the following important functions:

Buying and Assembling:

It has been said that a retailer stocks wide variety of products to meet the
requirements of a large number of customers. For this purpose, the retailer has to
assemble products of different manufacturers from different wholesalers through the
process of buying. In buying these products he has to be cautious. He has to find out
the best and cheapest source of supply. Then he has to select only such of the goods
offered which would suit the need of his customers. He must purchase only in
quantities enough to meet the demands of his customers.
Warehousing and storing:
Products thus assembled have to be stored by the retailer so that they are held in
reserve stocks out of which consumers requirements are met without any interruption
by selling in small quantities.

Selling:
The ultimate purpose of retailing business is to sell these products to the consumers.
Though a retailer is sometimes referred to as buying agent of consumers, producers
and manufacturers regard retailer as a means of dispersing goods to the market and
drawing income into their hands so that they can continue their business of
production.

Assumption of Risk:

The retailer has to bear the risk of physical deterioration of goods and fall in value. A
retailer has to stock goods in anticipation of demand from his customers. This stock
must always be sufficient to meet any demand from the customers. This fact involves
risk to the extent of the stocks held by any retailer. Firstly, the products stored are
subject to the usual risks of flood and other natural calamities. Secondly, there are the
risks of flood and other natural calamities. Secondly, there are the risks of spoilage
and deterioration due to the very nature of goods. Then there is the risk of change in
fashion. Fickle mindedness of the consumers and human tendency to like change in
life together make loss of value through change in style and fashion - a very real risk
to a retail trader.
Grading and Packing:
Retailers have to sort out in different lots goods or products left ungraded by the
producer or the wholesaler. Also, they must make arrangements for proper packing of
goods which are sold loose.
Financing:Often retailers have to grant credit to consumers. Credit sale in effect
means facilitating the flow of products through the marketing channel to its ultimate
goal. Thus retailers contribute in financing the marketing process.

Supply of Market Information:

Retailers, being in touch with the consumers, are most favourably situated to study
consumers' behaviour, changes in the tastes, fashions and demand etc. Thus they
collect valuable information pertaining to the problems of marketing.
Advertising:
Retailers display goods in their stores.

CHAPTER 3
DATA ANALYSIS AND
INTERPRETATION

The data collected with the help of questionnaires is tabulated and analyzed.

1. Classification as per ownership of Television

Que.No1: Do you own a Television?

Response

No. Of Respondents

Percentage

Yes

95

95

No

Total

100

100

No. Of Respondents
100
80

No. Of Respondents
95

60
40
20

0
Yes

No

Percentage
5

Yes

No

95

From the survey it was found that 95% of homes are having television and 5%
may go for future purchase.

2. Classification as per company-wise ownership

Que.No2: which brand of Television do you own?

Company

No. Of

Percentage

Respondents
LG

44

44

ONIDA

19

19

VIDEOCON

15

15

Other

22

22

Total

100

100

No. Of Respondents
45
40
35
30
25
20
15
10
5
0

LG

ONIDA

VIDECON

Other

No. Of Respondents

Percentage

22
44

15

LG
ONIDA
VIDECON
Other

19

From above data it was found that 44% of homes are having LG TV 19% are using
Onida, 15% are using Videocon and 22% using other brands.

3. Classification based on source of information for the purchaseQue.

No 3: From where did you get information about LG tv?

Source Of Information

No. Of

Percentage

Respondents
ADVERTISEMENT

18

41

FRIENDS

11

25

RETAIL OUTLETS

12

27

OTHERS

TOTAL

44

100

No. Of Respondents
OTHERS3
12
RETAIL OUTLETS

No. Of Respondents

11
FRIENDS

18
ADVERTISEMENT

10

12

14

16

18

Percentage
7
27

41

ADVERTISEMENT
FRIENDS
RETAIL OUTLETS
OTHERS

25

From above data collected most users are influence by advertisement (i.e. 41%) 25% are
influence by family and friends, 27% of user influence by retail outlet by visiting there.

4. Classification based on main reason for purchasing

Que.No.4: what all you take in account before taking LG tv?

Reasons For Purchase

No. Of Respondents

Percentage

QUALITY

16

36

PRICE

11

25

BRAND IMAGE

14

32

OTHERS

03

TOTAL

44

100

No. Of Respondents
16
14
12
10
8
6
4
2
0

No. Of
Respondents
14

B
R
A
N
D

U
A
LI

IM
A
G

11

TY

16

Percentage
QUALITY

PRICE

BRAND IMAGE

OTHERS

7%
36%

32%

25%

From the above data 36% of user go because of quality, 25% user because of price and 32%
of user because of brand image. Most of user buy LG TV because of quality and brand image.

Model

No. Of Respondents

Percentage

L G FLATRON

23

52

L G GOLDEN EYE

18

41

L G LED

02

4.5

OTHERS

01

2.5

TOTAL

44

100

5. Classification based on model-wise ownership

Que.No.5: Which model of LG T.V do you own?

No. Of Respondents
25
20
15

23

10

18

No. Of
Respondents

TH
ER
S
O

LC

EY
LD
EN

FL
AT
R
O
G

Percentage
4.52.5

41

52

L G FLATRON
L G GOLDEN EYE
L G LCD
OTHERS

From the above data more than 50% of user is having LG Flatron, 41% of user are having LG
golden eye, 4.5% of user are having is LG LCD. More user are go for LG flatron and LG
golden eye because of economic range.

6. Classification based on size ownership

Que.No.6: Which size of LG T.V do you own?

Size Of T.V

No. Of Respondents

Percentage

15 INCH

11

25

21 INCH

31

70.5

29 INCH

02

4.5

OTHERS

00

00

TOTAL

44

100

No. Of Respondents
35
30
25

No. Of Respondents

20

31

15
10
5

11
2

0
15 INCH

21 INCH

29 INCH

OTHERS

Percentage
4.5
25

15 INCH

21 INCH

29 INCH

OTHERS

70.4

From above data 25% of user are having 15 inch and more than 70% of user are
having 29 inch because it is widely accepted model television, 4.5% are using 29
inch.

7. Classification based on duration of usage

Que.No.7: Since when you are using LG T.V?

Duration

No. Of Respondents

Percentage

LESS THAN 1 YEAR

11

25

1-2 YEAR

09

20.5

2-3 YEAR

16

36.5

4 AND ABOVE

08

18

TOTAL

44

100

No. Of Respondents
16
14
12
10
8
6
4
2
0

11

16

8
E

A
N
D

A
B
O
V

EA
R

LE
SS

23

EA
R
Y
12

TH
A
N

EA
R

No. Of Respondents

Percentage
18

25

LESS THAN 1 YEAR

1-2 YEAR
2-3 YEAR
4 AND ABOVE

36.5

20.5

From the above data nearly about 37% user are using LG TV since 2 t o3 years, nearly about
21% are using 1 to 2 years, 25% are using less than one year and 18% are user are using 4
years and above.

Satisfaction

No. Of Respondents

Percentage

FULLY SATISFIED

14

32

SATISFIED

21

48

SOME WHAT SATISFIED

09

20

NOT SATISFIED AT ALL

00

00

TOTAL

44

100

8. Classification based on level of satisfaction

Que.No.8: What is your level of satisfaction?

No. Of Respondents
NOT SATISFIED AT ALL 0

SOME WHAT SATISFIED

9
No. Of Respondents

SATISFIED

21

FULLY SATISFIED

14
0

10

15

20

25

Percentage
20

32

FULLY SATISFIED
SATISFIED
SOME WHAT
SATISFIED
NOT SATISFIED
AT ALL

48

\
From the above data 32% of users are fully satisfied with their product, nearly about 50% of
users are satisfied with their product and 20% of users some what satisfied because in this
most of users are new.

9. Classification based on occupation of respondent:

Que.No.9: What is your occupation?

Occupation

No. Of Respondents

Percentage

PROFESSION

28

28

BUSINESS

20

20

HOUSEWIWES

39

39

OTHERS

13

13

TOTAL

100

100

No of respondent
40
35
30
25
20
15
10
5
0

28
PROFESSION

20
39
BUSINESS
HOUSEWIWES

13
OTHERS

percentage
13

39

28

PROFESSION
BUSINESS
HOUSEWIWES

20

OTHERS

From the above data 39% of user are housewiwes, 28% of user are professionals, and 20% of
user are belong business.

10. Classification based on qualification of respondent:

Que.No.10: What is your qualification?

Qualification

No. Of

Percentage

Respondents
UP TO SSLC

31

31

GRADUATE

42

42

POST GRADUATE

09

OTHERS

18

18

TOTAL

100

100

10

No. Of Respondents
18

OTHERS

9
No. Of Respondents

POST GRADUATE

42

GRADUATE
31

UP TO SSLC
0

10

15

20

25

30

35

40

45

Percentage
UP TO SSLC

GRADUATE

POST GRADUATE

OTHERS

9%

18%

31%
42%

From the above data 42% of user are graduate 39%of user are upto SSLC and 9% user are
post graduate.

11. Classification based on household monthly income of respondents

Que.No.11: What is your household monthly income?

Household Income

No. Of

Percentage

Respondents
UP TO 5000

23

23

5000-10000

35

35

10000-15000

28

28

15000 AND ABOVE

12

12

TOTAL

100

100

No. Of Respondents

19
No. Of Respondents

A
N
D

A
B
O
V

15
00
0

10
00
015
00
0

U
P

TO

50
00

33

50
00
-1
00
00

50
40
30
20
10
0

Percentage
5%
UP TO 5000

19%

5000-10000

33%

10000-15000

15000 AND ABOVE

43%

From above data 43% of user belong to 5000 to 10000 income group, 33% of user are belong
to 5000 income group, 19% of user are belong to 10000 to 15000 income group and 5% of
user are belong to 15000 and above income group.

CHAPTER 4
FINDINGS, SUGGESTIONS AND
CONCLUSION

MAJOR FINDINGS

Through the survey it was found that almost 95% of the respondents are
having TV in their home.
The research shows that 44% of respondents own LG television.
The survey shows that reason buying the LG television is its quality and after
sales service.
Through massive advertisement consumer influence to purchase and switching
their brand to LG.
As per survey report shows 36% of respondent buy LG television because of
quality and 32% of respondent buy due to brand image.
By conducting survey it was found that there was only one service station and
authorised dealer in the city due to which the customer were inconvenient.

CONCLUSION OF FINDINGS
From the overall study it can be concluded that after Idea, Vodafone is doing a
satisfactory job, most of the retailers are satisfied with distributors visit, supply of
promotional activities, the DSE also has a good knowledge about the offerings and
there is clarity of communication about new tariffs and plans. However, the
companys employees have not yet provided the expected support to the retailers
which has resulted in a certain level of dissatisfaction towards the company..
Secondly, one of the important finding of the study was that there are still few areas
that the company has not tapped. Interestingly, it was found that the demand was
considerably high but then the DSE never visited the outlets. However, it must be
cited that the areas in subject were remote and away from the city.

Thirdly, it should also be taken into consideration that Idea is leading among all
cellular service providers in context of both the market share and as well as in the
aspect of trade satisfaction of retailers.
Also, one of the important findings was that retailers emphasised on their profit
margins. In this race, it was Uninor which was found to be

providing highest

commissions on recharges and consequently the retailers tend to push their products
more in order to increase their profitability.

The key findings of report was as follows :

Through the survey it was found that 95% of the respondents are having TV
in their home.
The research shows that 44% of respondents own LG television.
The survey shows that reason buying the LG television is its quality and after
sales service.
Through massive advertisement consumer are influence to purchase and
switching their brand to LG.
As per survey report shows 36% of respondent buy LG television because of
quality and 32% of respondent buy due to brand image.
By conducting survey it was found that there was only one service station and
authorised dealer in the city due to which the customer were inconvenient.

SUGGESTIONS

LG electronics is perusing the vision of becoming a true global digital leader to

achieve this. They need to improve quality of the product.
Survey conducted by me the customer was not satisfied by quality of color in the
television contrast and sound system.
The customer are not satisfied by the after sales service provided by the company due
to the delay in the after sales services provided by company.

CONCLUSION
From the study is conducted there is a 100% awareness about television is among the
population , there are 45% are LG television user in DEHRADUN city.
Complex buying behavior is involved in purchase and aware of significant, difference
among brands . LG has able to craft out in ten years a premium brand positioning in
the Indian market and is today most preferred brand in the segment.
2013-2014 has been landmark year for LG as the company achieved a monumental
target of Rs 16000 crs and reiterates its leadership in the Indian consumer durable
industry.

ANNEXURE

QUESTIONNAIRE
SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND
RESEARCH
PUNE
Dear sir/madam,
I am student of SIBAR Pune. As part of the curriculum of
MBA degree, I am conducting a survey to prepare project report on
CONSUMER BEHAVIOR TOWARDS LG TELEVISION.
Therefore I kindly request you to spare some of the precious
time to answer the following question.

1. Name:

Address: ...............................

Tel:

..........E-mail:

2. (a)Do you own Television?

Yes
If no jump to Q.No 9
(b)If yes mention its brand?

No

LG

Sony

Samsung

Other (specify)..

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

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

Friend

Retail outlets

Other (specify)

4. What all you take in account before taking LG tv?

Quality
Brand image

Price
Other (specify)

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

...

LG Flatron

L G Flatron with Golden eye

LG LCD T.V

Other (specify)..

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

21inch

32 inches

42inch

Other (specify)

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

Less than 1 year

1-2 years

2-3 years

4 and above

8. What is your level of satisfaction?

Fully satisfied

Satisfied

Some what satisfied

Not satisfied at all

9. Which brand of T.V would you go for in future?

LG

Sony

Samsung

Other (specify) ..

10.Any suggestions or recommendations on LG T.V?

Few personal questions:

11.Your occupation
Profession

Business

housewiwes

Other (specify) ..

12.Education
Up to SSLC

Graduate

Post graduate

Other (specify).

13.House hold monthly income

Up to 8000

8000-15000

15000-25000

25000 and above

THANK YOU

BIBLIOGRAPHY
BOOKS
i. Marketing Research.
Published by: Tata Mcgraw-Hill Publishing Company Limited.
Author: G.C.Beri
ii. Research Methodology
Published by: Excel Books
Author: D.K.Bhattacharyya
iii. Company Manuals
i. Principles of Marketing Philip Kotler and Gery Armstrong

ii. Marketing Research D.D. Sharma

iii. Marketing Research Green & Tull
iv. Websites:
v.
vi. www.lg.com
vii. Www.lgindia.com