2017

[MARKETING LIVE PROJECT REPORT]

 LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT

DWARKA SECTOR-11, NEW DELHI

MARKETING RESEARCH TERM PROJECT ON:

STUDYING PERCEPTION AND FACTORS AFFECTING

BUYING PATTERNS OF CONSUMERS IN INDIAN
TELEVISION MARKET

SUBMITTED BY: SUBMITTED TO:

GROUP 8, SECTION B: DR. GAURAV JOSHI,
SANCHIT JOSHI 104/2016 FACULTY,
Y.J.S. RAKESH 105/2016 MARKETING RESEARCH,
AANCHAL 106/2016 LBSIM, NEW DELHI
ROHIT GADIYA 107/2016
ARPIT SARAWAGI 108/2016
BHAVUK GUPTA 109/2016

March, 2017
LETTER OF TRANSMITTAL

To: Dr. Gaurav Joshi. Date: 16.03.2017

From: Group 08, Section B, Batch 2016-18

Subject: STUDYING PERCEPTION AND FACTORS AFFECTING BUYING PATTERNS OF
CONSUMERS IN INDIAN TELEVISION MARKET.

Respected Sir,
We, Group 8, hereby, submit to you the Term Project Report on Studying perception and
factors affecting buying patterns of consumers in Indian television market.
We also declare that the content of this report is our original work and has not been
submitted to any other university or institute either in full time or part time for the award
of any degree, diploma or fellowship.

Yours sincerely,
Group 08, Section B
Batch 2016-18
Lal Bahadur Shastri Institute of Management
New Delhi
ACKNOWLEDGEMENT

Behind every achievement lies a deep sea of gratitude to those who have extended their
support & without whom it would have been very difficult to accomplish the task
successfully. To them we lay the words of gratitude.

We are really thankful for the support and help of all group members.

We would like to express the deepest appreciation to our mentor Dr. Gaurav Joshi, for his
guidance and constant supervision as well as for providing necessary information
regarding the project and for his support in completing the project.
 Table of Content

No. Topic
1 Title

2 Introduction

3 Literature review

4 Overview of Indian Television Market (Qualitative

Research)
5 Research -

1. Method of data collection

2. Instrument and technique used

3. Data analysis strategy

4. Factor Analysis

5. Multi-dimensional Scaling

6. Perceptual Mapping

7. Conclusion and Limitations of the study.

Introduction
Management problem
We have assumed that an organization abc want to enter into Indian television market.
It is thinking about launching new television brand. Management problem is to decide
whether go ahead with the project or not. Market analysis and Competition analysis was
carried out to decide feasibility and current market conditions.

Marketing problem
Indian television market is very diverse in terms of income levels, demographics and
culture. So marketing problem is to decide perception of consumer towards various
brands present in the market and factors affecting buying behaviour of consumer.

Literature Review
We studied 24 research papers on the given topic. They were already mentioned in the
research proposal. TV penetration reached 68.9% (118.26 million) of TV households by
end-2015, and is expected to climb to 77.2% (136.34 million) by end-2016. Massive uptake
is forecast, with 98.0% penetration (198.71 million) expected by 2021.
So, there is massive scope for expansion.
Overview of Indian Television Market -
As per the Porters Five Force Analysis, the following is the understanding of
the competition in the industry.

Competitive Rivalry:
Continuous innovation leads to intense rivalry.
Homogeneity in product and low switching cost.

Threat of New Entrants:

Highly capital intensive.
Major players have developed brand equity.
Brand Loyalty is moderate.
Substitute Products:
Technological advancements.
Buyers have huge propensity to substitute.

Bargaining Power of the Suppliers:

Product differentiation is very low.
By changing the input, firms cannot drastically differentiate on price.

Bargaining Power of the Customers:

Use of internet to get all the information enables the customers to be
powerful.
Buyers switching cost is very less.

Major Players:
1. Samsung:
Samsung India commenced its operations in India in December 1995,
today enjoys a sales turnover of over USD 1 billion in just a decade of
operations in the country. Samsung design centres are located in
London, Los Angeles, San Francisco, Tokyo, Shanghai and Romen.
Samsung India has its headquartered in New Delhi and has a network
of 19 Branch Offices located all over the country. The Samsung
manufacturing complex housing manufacturing facilities for Colour
Televisions is located at Noida, near Delhi. Samsung Made in India
products like Colour Televisions, Colour Monitors and Refrigerators are
being exported to Middle East, CIS and SAARC countries from its Noida
manufacturing complex. Samsung India currently employs over 1600
 employees, with around 18% of its employees working in Research &
Development.

2. LG:

LG Electronics was established on October 1, 1958 (As a private

Company) and in 1959 operating 77 subsidiaries around the world with
over 72,000 employees worldwide it is one of the major giants in the
consumer durable domain worldwide. The company has as many as 27
R & D centers and 5 design centers. Its global leading products include
residential air conditioners, DVD players, CDMA handsets, Television
sets, home theatre systems and optical storage systems.

3. Sony:

Sony Corporation, Japan, established its India operations in November

1994. In India, Sony has its distribution network comprising of over
7000 channel partners, 215 Sony World and Sony Exclusive outlets and
21 direct branch locations. The company also has presence across the
country with 21 company owned and 172 authorized service centres.
Research design

1. Method of data collection

Data is of two type

1. Primary Data- Primary data is the data which is collected first hand specially for
the purpose of study. It is collected for addressing the problem at hand. Thus,
primary data is original data collected by researcher first hand.
2. Secondary data- Secondary data is the data that have been already collected by
and readily available from other sources. Such data are cheaper and more quickly
obtainable than the primary data and also may be available when primary data can
not be obtained at all.

Data Collection Methods or Types of Research -

Qualitative Research- Qualitative Research is generally undertaken to develop an initial

understanding of the problem. It is non statistical in nature. It uses an inductive method,
that is, data relevant to some topics are collected and grouped into appropriate
meaningful categories. The explanations are emerged from the data itself. It is used in
exploratory research design and descriptive research also. Qualitative data comes into a
variety of forms like interview transcripts; documents, diaries and notes made while
observing. There are two main methods for collecting Qualitative data -

Given the qualitative nature of some aspects of the objectives, we will conduct exploratory
research.

A review of academic and trade literature to identify the relevant characteristics of

a TV that influence consumer purchase intentions.
Interviews with experts to determine the trends, such as emergence of new types of
TVs and shifts in consumer preference patterns.
A review of literature to determine the factors that consumers consider important
in selecting a TV brand.
Quantitative Research- Quantitative Research quantifies the data and generalizes the
results from the sample to the population.

We propose to use Survey method wherein a structured questionnaire will be floated to the
respondents and their responses will be recorded in online or offline forms. This technique
will be used due to certain reasons, viz., a questionnaire is easy to administer, reliable data
is obtained and coding, analysis and interpretation of data are relatively simple.
3. Data analysis strategy

FACTOR ANALYSIS is a useful tool for investigating variable relationships for complex
concepts such as socioeconomic status, dietary patterns, or psychological scales. It allows
researchers to investigate concepts that are not easily measured directly by collapsing a
large number of variables into a few interpretable underlying factors. The key concept of
factor analysis is that multiple observed variables have similar patterns of responses
because they are all associated with a latent (i.e. not directly measured) variable. For
example, people may respond similarly to questions about income, education, and
occupation, which are all associated with the latent variable socioeconomic status. In every
factor analysis, there are the same number of factors as there are variables. Each factor
captures a certain amount of the overall variance in the observed variables, and the factors
are always listed in order of how much variation they explain.

The eigenvalue is a measure of how much of the variance of the observed variables a factor
explains. Any factor with an eigenvalue 1 explains more variance than a single observed
variable.

It can also prove to be useful when a lengthy questionnaire needs to be shortened, but still
retain key questions. Factor analysis indicates which questions can be omitted without
losing too much information.

MULTI DIMENTIONAL SCALING (MDS) - The purpose of multidimensional scaling

(MDS) is to provide a visual representation of the pattern of proximities (i.e., similarities
or distances) among a set of objects. For example, given a matrix of perceived similarities
between various brands of air fresheners, MDS plots the brands on a map such that those
brands that are perceived to be very similar to each other are placed near each other on the
map, and those brands that are perceived to be very different from each other are placed
far away from each other on the map.
Primary Research -

Sampling Technique used

Convenience Sampling, a type of Non-probability sampling technique was used.

Calculation of Sample Size-

Sample size=[p(1-p)*Z^2]/e^2
P=population proportion
E=Error (0.05 at 95% C.I)
The population proportion found out to be 77.2% through secondary research
www.researchandmarkets.com
The sample size came out to be 271, so we took 301 samples.

Questionnaire floated is attached.

Questionnaire Reliability Testing - We had floated questionnaire to 35 people for

testing reliability of the questionnaire. Since value of Cronbachs Alpha is greater
than 0.5, questionnaire is reliable.

Objective of Factor Analysis

To determine the underlying factors which affects consumers television buying behavior.

Correlation Matrix and its validation

To check weather factor analysis is the right method for this research purpose or
not, we have studied correlation matrix.
We have used Bartletts test of sphericity to check correlation between variables.
KMO measure of sampling adequacy has been used to ensure that sample size is
enough for the research.
Bartlett's test of sphericity

Hypothesis Selected variables are uncorrelated in the population.

15 variables are identified from secondary research and are mentioned in the
questionnaire.
The approximate chi-square statistic comes out to be = 1160.702 and significance
= 0.000 (it is less than .05) at degree of freedom = 105

Results Hypothesis is rejected. Variables are correlated.

KMO Statistic

It is a test for sample size adequacy.

Value of KMO statistic is = 0.778 (It is greater than 0.5)
So, it shows that sample size is adequate.
Sample size is = 301.
Principle Component Method

We have used Principle component Method for factor analysis. It considers total
variance in the data.
Extraction represents total variance caused by that particular question in all the
components selected.
It shows R square of regression.

Determining number of factors/components

Eigen values represents total variance explained by each factor.

Factors having eigen value more than 1 are selected, hence 4
components are selected.

Table is on the next page.-

Component Matrix -
Component Matrix tells us about the correlation coefficient between variables and factors
selected.

Rotated Component Matrix

We rotate the component matrix, so that it can be easily interpreted.

In this the variance explained by the individual factors is redistributed by rotation.
Orthogonal rotation method is used, where axes are maintained at right angles.
In orthogonal rotation, Varimax procedure is used. It results in factor which are
uncorrelated.

Reliability Test For Factors selected (Cronbach Alpha)

Component/Factor 1

After Sales Services- (i.e. Warranty Period and Other accessories offered)

Since Cronbachs alpha is greater than 0.6, this factor is reliable.

 Component/Factor 2 - Brand Awareness -

Since Cronbachs alpha is greater than 0.6, this factor is reliable.

Component/Factor 3 - Picture and Sound Quality

Since Cronbachs alpha is greater than 0.6, this factor is reliable.

Component/Factor 4 Price and Discounts Offered

Since Cronbachs alpha is greater than 0.5, this factor is reliable.

 Multi-Dimensional Scaling using Discriminant Analysis Method
MDS is a technique used for Brand Positioning.

Test of equality of group Means (Wilks lambda)- If the value is closer to zero it
shows better discriminating power of that characteristic/attribute.

Components 1, 2 and 4 are able to discriminate significantly here. Sig. value also
shows the same.

Eigen Value - It represents Variance explained by each function.

From the values of lambda and eigen value, we can conclude that only function 1
and 2 are suitable for further studies.
Wilks Lambda For Functions

Value of lambda close to zero indicate group means are different. Wilks lambda is
proportion of the total variance not explained by the differences among the group.

Standardized Canonical Discriminant Function Coefficients -

Unstandardized coefficients provide less indication of relative contribution of

variable to the overall discriminating function.
But highest value of standardized coefficients for particular attribute on a function
indicates the higher loading of the same on that function.

Functions at Group Centroids

This table gives us canonical variable means by group. This table is used to plot
brands on the attributes plot (perceptual plot.)

Perceptual Map- it is drawn with the help of two tables 1) Functions at group centroid.

2) Standardized Canonical discriminant function coefficient table

Perceptual
1.500
Map
After Sales Services
1.000 (Warranty Period
& other
accessories) Micromax, 0.620
0.500
Samsung
Price and Discounts
Sony, 0.213 Offered, 0.254
0.000
-3.000 -1.500 0.000 Picture and Sound
1.500 3.000
Picture & Sound Quality, -0.220
quality -0.500 Brand Awareness, -
0.574

-1.000

LG, -1.261
-1.500

-2.000
After Sales services and Brand awarenes

Dimension 1 (X-axis) is representing picture and sound quality.

Dimension 2 (Y-axis) is representing after sales services (warranty and
guarantee period) and Brand awareness.
Conclusion We can say that Sony and Samsung have Picture and Sound quality
as Unique Selling Preposition. Whereas LG has Brand Awareness and After sell
services as Unique Selling Preposition.

The gap present in the market is that Not many brands are concentrating
on price and discounts as well as after sells services. We can capitalise on this gap
and launch our product.

Limitation of the study -

The time and resources available at hand were limited and hence it was
the major limitation for the study.