CONSUMER SATISFACTION TOWARDS

LG TELEVISION
A case study of Gorur Electronics, Shimoga

CONTENTS

1. INTRODUCTION
2. COMPANY PROFILE
3. FIRM PROFILE
4. PRODUCT PROFILE
5. LITERATURE REVIEW
6. DATA ANALYSIS AND INTERPRETATION
7. FINDINGS, SUGGESTION AND CONCLUSION

APENDIX
 Questionnaire
 Reference

1
Chapter 1

INTRODUCTION
 Introduction
 Objectives of the study
 Scope of study
 Methodology
 Limitation

2
INTRODUCTION
Marketing is of special importance in the modern management of
business. Marketing covers all business activity which is necessary for
ascertainment market demand, planning product availability, effecting
transfer of ownership of products and providing for their physical
distribution.
The modern marketing is considered to be “consumer oriented”.
The main aim of modern business is to satisfy the consumer behaves
differently in the different situations and the primary functions of business
are to create and maintain the satisfied customer.

Marketing is a social – economic process. Social responsibilities

personal obligations of people and economic process, which involves the
exchange of goods and services and their values determined in terms of
money.

Hence, marketers are called upon to anticipate changes in

marketing environment involving risks, difficulties and uncertainties. The
customer taste differs and hence the forecast of changes, marketing plan
and programmes can be attained only by day – to – day report, which
involves present condition and demand in the market. Only such report
can help the market to attempt for the change and obtain the desired goals.

A report is collection of data or things going on in and around the

market place about the product, they are marketing. Such report may help

3
the marketer to modify changes or to adopt a particular marketing
strategy.

As a case study, and part or subject of BBM course, my subject

holds with the study of “Marketing of Television Sets”. Undertaking by
Sadhana Trading Company, Shimoga. My work in this project is to know
details regarding the project history i.e., Television history, his working its
marketing and other details.

LG Televisions are more distinct Televisions when compared to the

other Televisions. Due to its increasing popularity in market, I have got
an opportunity to select the topic and to study the various marketing
aspects of the product.

Objectives of the study

 The primary objective of the study is to known about the consumer
behavior towards the purchase of LG television.
 To know the popularity of LG television in Shimoga city.
 To know the market share of LG television in Shimoga city.
 To know the satisfaction level of current user of LG television.
 The sales and marketing of LG Televisions with special reference to
citizens of Shimoga.
 To know the competitors to the product.
 To give suggestion for the improvement of marketing of LG
Televisions.

Scope of study
Televisions have become an up launching media of mass
communication, entertainment and even for education.

4
 The scope of study of this project report is confined to Shimoga
City only. This project is purely done for academic reasons. The time
and budget allotted for conducting the study is limited. Never the less I
do highlight the significant aspects of marketing strategy used for the
growth of sales of LG Televisions. The study was conducted to know the
competitive environment while making LG Televisions. As the time was
limited the persons interviewed were also limited.

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 people’s

5
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
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:
Shimoga
Sampling plan:
Data collected has been analyzed and interpreted by using simple
percentage method and finally the data is presented in graphs and charts.

6
Sampling frame:
House wives

Sample unit :
Each house hold in 4 major area: Gandj Bazar, Ravindra Nagar,
Vidynagar, N.T Road Shimoga .

Sampling Technique:
convience sampling method used.

Desired sample size:

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

7
Limitation
The present study is subjected to following limitations
 Times was the major limiting factor as the time allotted to conduct
survey was not enough.
 Some respondent were irresponsive.
 The research is directly concerned with the study of consumer
behavior and achieving absolute mathematical accuracy was not
possible.
 Method of data collection was through personal and therefore bias
becomes a major limitation.
 Due to the time constraints all the customers were not covered.
 The sample was restricted to 100 customers, which may restrict the
scope and completion of study.
 The scope of study is restricted only cities of Shimoga.
 Owing to their pre occupation some customers were unable to answer
the complete questionnaire.

8
Chapter - 2
COMPANY PROFILE
 Introduction to LG Electronic India Pvt. Ltd
 Growth trend of LG
 Vision of the company
 Strategy of the company
 Milestones
 Awards

9
 COMPANY PROFILE

INTRODUCTION TO LG Electronic India Pvt. Ltd

Established In: May 1997
Managing Director: Mr. Moon B. Shin
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).

10
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 LCD 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.

11
Growth trend of LG
Hyderabad, June 23 For South Korean consumer electronics major
LG Electronics, India could graph the highest growth rate in terms of
sales compared with its other markets in the last five months, beating
global trends of slackened consumer spending due to recessionary fears.
LG Electronics India Ltd (LGEIL) clocked a growth rate of 18 per
cent in the last five months compared with the corresponding period of
2008, mostly driven by increase in sale of products in the refrigeration
and AC segments, according to Mr Moon B. Shin, Managing Director.
“We are now aiming at a 25 per cent growth in our turnover for 2009 to
touch about Rs 13,000 crore. Last year (2008), we had achieved a
turnover of Rs 10,730 crore,” he told presspersons on the sidelines of the
launch of a new LG Shoppe here recently.
The company is poised to roll out new models in LCD and GSM
handset categories in the next three to six months in the domestic market.

LG India sales revenue up 50% this festive season

New Delhi, Nov. 6 Durables company LG Electronics said it had
posted a record sales revenue of Rs 2,535 crore for September-October, an
increase of 50 per cent compared with sales revenue for the corresponding
period a year-ago.
This festival season LG Electronics recorded a 49 per cent growth
in its home appliance business, 68 per cent in refrigerators, 60 per cent
growth in washing machines and over 41 per cent in microwave ovens.
The season also saw phenomenal sales, especially in the display
category, which includes conventional CRT TV and flat panel displays

12
(PDPs, LCDs and flat screen TVs). LG’s contribution in consumer
electronics category this festive season alone has seen a growth of 39 per
cent over the corresponding period last year.
“The festive season has seen LG Electronics continue to generate
significant growth with a portfolio of products spread across the widest
variety of price points in the company’s history.
“We have introduced high-end products that not only provide the
right technology but also suit the new age lifestyles of Indian consumer,
this also confirms consumers’ shifting preferences towards exercising
affirmative choice to buy high quality reliable products rather than
bargain hunting,” said Mr Moon B. Shin, Managing Director, LGEIL

Major market players

 Sumsung
 whirlpool
 Sony
 Philips
 Onida
 Voltas
 Kenstar

13
Market share of LG in India

14
VISION OF THE COMPANY
LG Electronics vision for the 21 st century is to become a true global
digital leader through fast growth and fast innovation and to be known as a
company who can make its worldwide customers happy through its
innovative digital products and services. LG Electronics has set its mid-
term and long-term goal to rank among the top 3 electronics, information,
and telecommunication firms in the world by2010. We aim to utilize our
core capabilities of product leadership, market leadership and people
leadership and enhance our corporate culture of team work and fun
workplace to achieve our mission of becoming “2 by 10”, that is, double
our sales volume and profit by year 2010.

LG BRAND
The values
“The values are derived from the heart of LG Corporate founding
principles”

Management creating values for the customer

Philosophy management based on esteem for human dignity
Values
We are honest and responsible. We always keep the promises we
make to our customers in our bid to become the world’s most trusted
brand.
Innovation

15
 We provide the most innovative products and services. Our
innovations are made not for technology’s sake, but for our customer’s
benefit. From the most basic features to the most sophisticated
technology, our products are designed to give our customer substantial
value. (Technology for customers not for engineers)
People
Respecting and caring for our customers is the driving force behind
our philosophy in human-centric product development. Respecting and
caring for our employees make this a reality.
Passion
We are very passionate about providing products and services that
satisfy the unmet needs of the customers, as well as those potential needs
of customers which they have yet to recognize.
Positioning Statement
LG strives to enhance the customer’s life (and lifestyle) with
intelligent features, intuitive functionality, and exceptional performance.
Choosing LG is a form of self-expression and self-satisfaction. Our
customer will take pride in owning the amazing and take comfort in
knowing he/she made a smart, informed decision.
Brand Platform
The LG brand comprises four basic elements: Values, Innovation,
People, and Passion.
“Life’s Good” Represents LG's Determination to Provide
Delightfully Smart Products That Will Make Your Life Good.

STRATEGY OF THE COMPANY

16
LG Electronics is pursuing the vision of becoming a true global digital
leader, attracting customers worldwide through its innovative products
and design. The company’s goal is to rank among the top 3 consumer
electronics and telecommunications companies in the world by 2010. To
achieve this, we have embraced the idea of “Great Company, Great
People,” recognizing that only great people can create a great company.

MILESTONES
1958: GoldStar (today’s LG Electronics) established
1959: Korea’s first radio produced
1962: Radio exported to the US and Hong Kong as Korea’s first
1965: Korea’s first refrigerator produced
1966: Korea’s first black & white TV produced
1968: Korea’s first air conditioner produced
1969: Korea’s first washing machine produced
1974: GoldStar Communications went public
1977: Color TV produced
1978: Exports surpassed US$100 million, a first for Korea’s electronics
industry
1980: First EU sales subsidiary in Germany (LGEWG) established
1982: Color TV plant established in the US in Huntsville, Alabama
1984: Sales surpassed 1 trillion Won
1986: European-standard VCR plant established in Germany
1989: Sales subsidiary and a joint production subsidiary established in
Thailand
1990: Ireland-based design technology center established

17
1993
With the establishment of Huizhou subsidiary in China(LGEHZ),
marketing in China took full swing

1995
Company name changed to LG Electronics and US-based Zenith acquired

1997
40-inch Plasma TV and the world’s first IC set for DTVs developed India
production subsidiary (LGEIL) established
1998
World’s first 60-inch Plasma TV developed 1999 LG.Philips LCD
established

2000
LG Information & Communications merged The world’s first Internet-
enabled refrigerator launched Global sales of refrigerators reached the
number one position
2001
Asynchronous IMT-2000 equipment commercialized The world’s first
Internet enabled washing machine, air conditioner, and microwave oven
launched LG.Philips Displays, a joint venture with Philips established
2002
Under the LG Holding Company system, the Company spun off to LG

18
Electronics (LGE) & LG Electronics Investment (LGEI) The first home
network system commercialized in the global market

2003
World’s first synchronous-asynchronous IMT-2000 mobile phone
developed The world’s first 76-inch Plasma TV developed CDMA
mobile handsets took the largest share in the US and world CDMA market
Launched the world’s first Super Multi DVD Rewriter
2004
EVSB, the next-generation DTV transmission technology, chosen to be
the US/Canada DTV transmission standard by the US ATSC All in-one
LG 55-inch LCD TV, the world’s first and largest among LCD TVs,
commercialized The world’s largest and first 71-inch Plasma TV
commercialized The world’s first terrestrial DMB phone developed
Developed Wireless Speaker Home Cinema System

2005
The world’s first DMB notebook commercialized The world’s slimmest
TV commercialized The world’s largest 102-inch Plasma TV developed
LG and Nortel Networks agreed to establish a joint venture for
telecommunication network equipment Satellite-based DMB phone
commercialized The largest share seized in the global CDMA market

2006
Launched the LG Shine, the second handset in the Black Label Series
Globally launched the steam washing machine and interactive TV

19
refrigerator Developed the world’s first 100-inch LCD TV Launched the
world’s largest Full HD 102-inch Plasma TV (1080p) Developed the
world’s first dual-format high-definition Disc Player& Drive

2007
LG presents 5 mega-pixel GSM handset – KG 920
• Innovative Twist & Slim design -180° rotating camera
• 4x zoom, video recording at 30 frames/sec and much more
LG launches India’s first Bluetooth enabled car audio system
• Enables user to share audio files from laptops and mobiles
• First car audio ever which can double up as a hands-free device for cell
phones
• Stylishly built and equipped with 3D display LCD screen

LG presents technovation at its best

• Announces Notebook Business as one of the growth engines for LG
India
•LG’s IT Division plans to grow by 30% in volume terms and 20%
in revenue terms for Year 2007
• Pioneers glass- free 3D viewing in India with the launch of India’s
first 3D LCD monitor
• Launches India’s first Notebook with Auxiliary Display and the path
breaking “Desk Note”
LG Electronics completes a successful H1 2007

20
Achieves 20% average growth over H1sales turnover in 2006
Succeeds in further building India as an export hub with 50% growth over
last year

LG set to dazzle India with “Shine”

• Launches India’s first full metal-bodied phone from the premium Black
Label series of mobile phones
• Target to be amongst the top 3 players in the premium handsets category
in India
• Targets growth of 150 % by first quarter of 2008

LG Electronics launches the New Slim TV-BLACK IRIS

• 30% slimmer in volume & 390 mm in depth compared to other Normal
Flat TV picture tubes
• New Hot & Cold finish offers high quality glossy and durable finish.

LG Unveils India’s first ever Digital USB Plus TV – A technological

Marvel
• Enables users to enjoy digital music, photos and movies directly from
other digital devices, such as Multimedia cards, USB thumb drive,MP3
player,PCs, iPod, Cameras, Handy cams etc
• Targets to further consolidate it’s market leadership in the CTV segment
by aiming for 30% by 2007 year end

2009
LG Unveils Pearl Black LCD series in the Indian Market

21
• Available in 32”, and 42” wide sizes
• Brings together an exceptional combination of design and technology
• Targets 30% market share in the FPD segment by 2007 year end
• Aims to sell 5000 units by year end

LG Electronics Bags prestigious ESC Award for Export Excellence in

2006-10
• Wins award for excellence in Exports of Electronic Hardware for 2005-
2006
• Targets exports of USD 250 Mn for calendar year 2009.

•Launches its first 5 mega pixel camera phone

•Viewty boasts several ‘world first’ features such as fastest recording
speed and optimum functionality
•Targets growth of 200% by 2010

Awards
As LG is declared one of the most awarded brand by all. Be it the critic,
the market or by you. At LG we believe each one of these awards truly
belongs to you as they are reflection of your trust & satisfaction, not to
mention our stringent quality control & process like 6 sigma to give you
the best of the products that meets global standards. For us what matters
most is you & we thank you for making us the No.1 brand.

22
Award Name Awarded By
Most Admired Company in India A&M Magazine
Most Admired MNC A&M Magazine
No.1 Consumer Durable Company A&M Magazine
Best Marketing Company A&M Magazine
Most Ethieal MNC Business World
Techies Award Best Flat Screen Monitor Computer World
3rd Largest Exporter ESC2001
Best Employer Business Today/ Hewitt Assts
Best Employer Business Today/ Hewitt Assts
Enterpreneur of the year Ernst & Young
Gold Rating for Environmental Performance CII
No. 1Awareness Award. Business Today
Super Achivers Award : MD LGEIL CETMA
Green Technology Gold Award Green Tech Foundation
Best Designer Award –Art Cool Air Conditioner Business World & NIT
VAR India User Choice Award : Monitors VAR India
Most Admired Product – Microwave EFY
Award for IT Innovation Business Today
Most Trusted Brand –CD Writers DIGIT/Jasubhai Digital Media
EFY’s Electronics Organization of the Year Electronics for You
Award for Television
Consumer Durable Retailer of the Year ICICI Bank
Excellence in Corporate Leadership & CNBC TV 18
Entreprerenural Spirit
Most preferred Brand- CTV & WM CNBC Consumer Vote Awards
Maximum Imports & Third Highest Exports CONCOR
EFY Reader’s Choice Award For Microwaves EFY
Outstanding Contribution in the field of HR CETMA
Outstanding Contribution in the field of HR MID DAY
Top Company :CDMA Handsets V&D
Top Company : Fixed Phones V&D
Best in Recruiting & Staffing RASBIC
Most Preferred Brand – CTV, WM, Computer CNBC Awaaz Consumer
& AC Awards
4 P Award : Refrigerator and Air Conditioner 4Ps Power Brand Award 23
4P Power Brand CNBC Consumer Vote Awards
Most Trusted Brand – LCD TV, Plasma TV, Reader’s Digest
24
 CHAPTER – 3

FIRM PROFILE

25
 AGENCY PROFILE
1. Details of Agency. H.O.

Name And Resisted Gorur Electronic Company Ltd,

1 Address of Head
Office
2 Date of incorporation 01-04-1942
3 Nature of activities Retailing/whole selling
4 Working hours 10 A.M. to 9.30 P.M.
Number of workers in 15
5
H.O.
6 Partners Mr.G.N.GOVINDARAJU.
Mr.G.B.KESHAV.
7 Branches SHIMOGA.
BANGALORE.
MANGALORE.
HAVERI.

26
 Organization chart

SR. MANAGER

MR. SHANKER SINGH

FLOUR MANAGER

MR. JULIUS BRITTO

FRONT OFFICE BACK OFFICE

COMMERCIAL MATERIAL
COUNTER
EXECUTIVE MANAGER
[KITCHEN APPLIANCES]

SALES SUPERVISION

2.COUNTER

[ELECTRONIC GOODS]

SALES SUPERVISOR

3. COUNTER

[HOME APPLIANCES]

SALES SUPERVISOR
4. COUNTER

CUSTOMER CARE

5. COUNTER

WHOLE SELLING

27
1. Gorur Electronic Company Pvt. Ltd was formed under the partnership
of Mr.G.N. GOVINDARAJU, Mr. G.B.KESHAV.
The main idea behind starting this concern was to deal in domestic
and irrigation pumps of the best quality. In its preliminary stage, the
company dealt with.
Only best pumps and switch gears, water the dealing was extended
to TV’s, Kitchen appliances, VCR/VCP’s Mobile Phones, Air coolers etc.
On 9th March 1987, it opened a retail show room under name.
GORUR ELECTRONICS CO, (which seems to be the best letter of the
names of the five partners) at Church complex, K.M. Marg, UDUPI. In
the year 1992 another branch was opened at Mangalore.
Mr.G.N.Govindaraju is Managing Director and all partners are
directors.
1. Introduction and history of near A.A. circle, NEHRU Road, Shimoga.

GORUR ELECTRONICS CO, Shimoga is the branch of Gorur

Electronics Company, pvt, Ltd. It is situated at A.A. circle, Nehru Road,
Shimoga. It was established on 12-11-1998, with the main objectives of
selling consumer goods and also it deals in all types of electrical
appliances and household articles. It is very well recognized as “the
house wife’s dream shop”. It has become center of attraction.
Most of the decisions were taken Mr. SHANKER SINGH, the Sr.
manager. The major decisions relating to GORUR were taken at H.O. Sr.
Manager control both front offices as well as back office through floor
manager. Authority is delegated to all the supervisors.
GORUR is a large-scale retail organization resembling of departmental
store, comprising different line of goods such as washing machine, TV’s,
Audios, VCP, VCR’s, home appliances, water heaters etc. To deal with
wide range of products. GORUR is well equipped with qualified and
trained work force

28
MANAGEMENT & CONTROL OF THE FIRM
Mr. G.N.GOVINDARAJU, managing director and all other
directors are Mr. G.B.KESHAV, All are playing major role in making
major decisions of the GORUR ELECTRONICS CO, Shimoga retail
outlet. They will get day today information about the activities of the
outlet. They control the human resources, material, financial activities of
the firm. Rest of the time the decisions relating to the cut let were taken
by Sr. Manager, who use to control both front office as well as back office
through floor manager, Authority delegated to all counter supervisors to
take the decisions regarding the sale of the products. They are responsible
for keeping necessary display and required stock ready to sell.
Objectives of the Gorur Electronics co, Shimoga
1. Earning adequate profit:

The firm is aimed at earning that margin of profit, which is

sufficient to cover its cost of running stay in business.
2. Attraction of consumers:

The firm tries in every possible way to attract the consumers. For this,
it makes substantial investments on advertising and sales promotional
activities.
3. Providing the consumer the branded goods of various companies of

course, in different colors, qualities.

4. Marketing prompt, regularly and timely payment of taxes.

5. Establishment of a democratic and socialistic society by giving special

attention to the worker and neglected sections of the society and by

ensuring social justice.

29
6. Avoidance of profiteering and anti social practices.

7. Maintaining clearness within and outside premises.

8. Development of human resources.

9. Contribution rewards social welfare by increasing in Government

bonds. This amount is used by the Government for the welfare of the

society.

Sales promotional efforts

Special officers and free gifts so as to meet growing needs of the

consumers and to increase sales of the company makes grand offer viz.

1. Annual grand sale

Every year on 9th, 10th, and 11th of March “Gorur” undertaken grand
sales where in goods are sold at great margin of discounts existing
contests will be help for purchases made over and about Rs. 4000 and free
gifts may give up to range of 4,000 Rupees. This annual sale is in fact
undertaken as Gorur birth anniversary sale and is called as
“DEEPOTHSAVA”.

2. Monsoon Dhamaka
This grand sale is made during the month of June.

3. Diwali grand sale

In the midst of colorful lights and crackers, this sale is conducted.

4. Gorur is a channel of distribution

30
 Gorur Electronic Company Pvt Ltd acts as a middleman i.e., large
quantities and sell them to dealers and customers is small lots through
their showroom.

As it is a large – scale retail organization, it is concerned not only

with the function of buying and selling of goods. The other important
functions performed by Gorur Electronics Company Pvt Ltd are.

 Assembling goods from various suppliers

It collects different varieties of goods from different suppliers and
assembles them in the showroom for sale to dealers and consumers.

 Estimation of consumer demand

The company estimates the consumer demand with the help of item
wise sales analysis, estimates future sales and places orders accordingly.

 Dispersion
Goods – collected and held in showroom are distributed and sold to
the dealers and customer who are widely scattered over different areas to
meet their needs and requirements.

 Storing
The goods are purchased are stored in warehouses to protect them
from all sorts of deterioration. Also they hold records of stocks and
maintain uninterrupted supply products to consumers in all
circumstances.

 Risk bearing

31
 The company after purchasing goods from the suppliers bear the
risks, arising preference at buyers, fire, theft and deterioration as long as
they are not sold.

Problems of agency

1. Heavy stock of inventory

The company is facing the problem of huge stock of inventory on
account of existence of many brands too many colours and too many
models in the same line of goods.

2. Inadequate ware house

The warehouse is not big enough to keep the inventories from
deterioration. Since they are dealing largely in valuable electric item their
protection from any sort of deterioration is a must.

3. Finance difficulty
Being a partnership firm it experiences the difficulty of raising
capital. This obstructs them from extending some useful services to the
customers, which are essential for its future growth and expansion.

Services offered by the Company

1. The Company keeps ready stock of varieties of products. So

consumers can buy varieties of products whenever they need.
2. The company bear more risk than the dealers from risks connected
with price fluctuations or any natural calamities.
3. Many dealers buy goods on credit and make the payments when their
customers clear their accounts. Thus, the Company enables the dealers
to carry on their trading with minimum working capital.

32
4. The Company act on innovator by bringing into the notice of
customers new products introduced in the market.
5. The Company provide some useful services to the dealers and
consumers like free home delivery, credit facilities for purchasing etc
to keep them in connection with the business.
6. Since the showroom “GORUR” is having various department. Each
having a single life of products. It serves most of the needs of the
consumers at one single place.

33
Chapter 4
Product Profile
 Consumer electronics
 Home appliances
 Computer product
 Mobile phone

34
Introduction
The LG TV is an alternative to the conventional cathode ray
televisions that till very recently were the mainstay of all television sets.
However, because of advances in television technology it has now
become possible to create new types of television sets such as the plasma
LG TV that provides much sharper images and more vibrancy of colors
and when the television broadcast is in high definition the image and
sound produced by plasma sets are truly outstanding. Different Aspect
Ratios In most cases plasma LGTV sets come with 16:9 aspect ratio
which is a vast improvement over the conventional 4:3 aspect ratio that
comes with all standard television sets. All these features do not come
cheap and so if you are looking to buy a plasma LGTV set you should be
willing to spend two thousand dollars or more and in fact the really
expensive ones cost much more and are believed to be in the region of as
much as fifteen thousand dollars and even more.

35
Product Line:

Business Areas & Main Products

Category Main Products

Consumer LCD TV , Plasma Display , Display Panel, Color

Electronics Television, Home Theatre System, Music system, DVD
Recorder/Player, MP3 & MP4 Player
Home Appliances Room Air Conditioner, Commercial Air Conditioner ,
Refrigerator, Washing Machine, Dishwasher, Microwave,
Vacuum Cleaner
Computer Laptop, Personal Computer, LCD monitor, CRT monitor,
Products Optical Storage Devices

Mobile Phone Premium trend setter phone , Camera Phone , Music Phone ,
Color Screen GSM Handset

36
Consumer Electronics
Plasma Display:

World’s first and largest 71-inch Plasma TV

Model : 71PY10
-Brightness : 800cd/㎡
-Contrast : 1200:1
-Resolution : 1920 X 1080(Full HD)
-Digital Comb Filter
-DCDi
-Sound
-Audio Output(15WX2) with 6 speakers
-Function
-PIP/DW/POP
-Split Zoom

37
-Zoom in&out
-Interface Side A/V, S-Video in DVI, RGB, RS232C, IR

LCD TV:

Pearl Black
Model: 47LB9
-Size: 47 (119 cms)
-MRP: Rs 150000
-Designer series
-10000:1 Dynamic Contrast Ratio
-TruM – 5 millisecond response time
-Spectabright – 600 cd/m2 brightness

38
-XD Engine
-Simplink

Color Television:
• Slimagic TV
• Flatron TV

DIGITAL AUDIO VIDEO

• 6.1 inch AV receiver

• Home Theatre
System
• Music System
• DVD Player

39
Home Appliances
ROOM AIR CONDITIONER

• Split Invertor AC
• Split Art Cool AC
• Floor Standing AC
• Multi Split AC
• Hot and Cold AC
• Split AC
• Window AC

COMMERCIAL AC

• Ductable Type AC
• Cassatte Type AC
• Multi V Plus (VRF)
• MPS
• ECO

40
REFRIGER ATOR

• Side by Side Refrigerator

• Frost Free Refrigerator
• Direct Cool Refrigerator

WASHING MACHINE
• Dish Washer
• Washer Dryer
• Front Load Washing Machine
• Top Load Washing Machine
• Semi Automatic Washing Machine

MICROWAVE OVEN

• Solardom Microwave
• Convection Microwave
• Grill Microwave
• Solo Microwave

VACUUM CLEANER

41
 • Vacuum Cleaner

Computer Products

• Notebook PC
• Desktop PC
• Monitor
• Optical Storage Device

MOBILE PHONE
• Viewty
• Shine
• Dynamite
• Pulse
• Bullet

42
Chapter 5
LITERATURE REVIEW

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

43
 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

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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 Variety-Seeking buying behaviour.

High involvement Low involement

Significant differences Between brands

Few differences between brands

45
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

46
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.

47
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 recognition–the buyer
recognizes a problem or need. The need can be triggered by internal
stimuli when one of the person’s normal need–hunger, thirst, sex–rises 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 consumer’s 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 evaluation–that 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 consumer’s purchase decision will be
to buy the most preferred brand, but two factors can come between the

48
purchase intention and purchase decision. The first factor is attitudes of
others, the second factor is unexpected situational factor.
Post-Purchase Behaviour:
The marketer’s 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
buyer’s behavior.
Personal Factors:
The buyer’s decisions are influenced by personal factors such as the
buyer’s age, life-cycle 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

49
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 person’s 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 person’s 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 person’s
pattern of living as expressed in his or her psychographics. Lifestyle
captures something more than the person’s social class or personality.
Psychological factors:
A person’s buying choices are influenced by for major psychological
factors-motivation, 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.

50
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 stimuli’s 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
individual’s 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. People’s 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

51
 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 a person’s attitude and behaviour.

The degree to which a reference group will affect a purchase

decision depends on an individual’s 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

52
 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 buyer’s 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.

53
 Chapter - 6
DATA ANALYSIS AND
INTERPRETATION

54
 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 5 5
Total 100 100

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

55
2. Classification as per company-wise ownership

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

Company No. Of Respondents Percentage

LG 44 44
ONIDA 19 19
VIDEOCON 15 15
Other 22 22
Total 100 100

56
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.

57
3. Classification based on source of information for the purchase

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

Source Of Information No. Of Respondents Percentage

ADVERTISEMENT 18 41
FRIENDS 11 25
RETAIL OUTLETS 12 27
OTHERS 3 7
TOTAL 44 100

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.

58
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 7
TOTAL 44 100

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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.

5. Classification based on model-wise ownership

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

Model No. Of Respondents Percentage

L G FLATRON 23 52

L G GOLDEN EYE 18 41

L G LCD 02 4.5

OTHERS 01 2.5

TOTAL 44 100

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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.

61
6. 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

62
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
7. Classification based on level of satisfaction
Que.No.7: What is your level of satisfaction?

63
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 somewhat satisfied because in this most of users are new.

8. Classification based on occupation of respondent:

Que.No.8: What is your occupation?

Occupation No. Of Respondents Percentage

64
PROFESSION 28 28
BUSINESS 20 20
HOUSEWIWES 39 39
OTHERS 13 13
TOTAL 100 100

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

65
9. Classification based on qualification of respondent:
Que.No.9: What is your qualification?

Qualification No. Of Respondents Percentage

UP TO SSLC 31 31
GRADUATE 42 42
POST GRADUATE 09 9
OTHERS 18 18
TOTAL 100 100

66
From the above data 42% of user are graduate 39%of user are upto SSLC
and 9% user are post graduate.

10. Classification based on household monthly income of respondents

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

Household Income No. Of Respondents Percentage

UP TO 5000 23 23
5000-10000 35 35
10000-15000 28 28
15000 AND ABOVE 12 12
TOTAL 100 100

67
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.

68
 Chapter 7
FINDINGS, SUGGESTION AND CONCLUSION

69
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.

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.

70
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 Shimoga 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.

2010 has been landmark year for LG as the company achieved a

monumental target of Rs 830 crs and reiterates its leadership in the Indian
consumer durable industry.

71
 QUESTIONNAIRE

Dear sir/madam,
I am student of Govt first grade college, Shimoga. As part of the curriculum of
BBM degree, I am conducting a survey to prepare project report on “CONSUMER
PERCEPTION TOWARDS LG TELEVISION A CASE STUDY GORUR
ELECTRICAL, SHIVAMOGGA.
Therefore I kindly request you to spare some of the precious time to answer the
following question.

Your`S
HARISHA B

1. Name: ……………………………………………
Address: ……………………...............................
Tel: ……………..........
E-mail:
2. Your occupation
Profession Business
Housewiwes Other (specify) ………………..
3. Education
Up to SSLC Graduate
Post graduate Other (specify)………………….
4. House hold monthly income
Up to 5000 5000-10000
10000-15000 15000 and above

5. Do you own Television?

Yes No
6. Mention the brand?
LG Onida
Samsung Other (specify)……………..

72
7. From where did you get the information about LG T.V?
Advertisement Friend
Retail outlets Other (specify)……………
8. What all you take in account before taking LG tv?
Quality Price
Brand image Other (specify)……………
9. Which model of LG T.V do you own?
LG Flatron L G Flatron with Golden eye
LG LCD T.V Other (specify)……………..
10.Which size of LG T.V do you own?
15inch 21 inches
29inch Other (specify) …………………
11.Since when you are using LG T.V?
Less than 1 year 1-2 years
2-3 years 4 and above
12.What is your level of satisfaction?
Fully satisfied Satisfied
Somewhat satisfied Not satisfied at all
13.Which brand of T.V would you go for in future?
LG Onida
Samsung Other (specify) ………………..
14.Have you seen the television advertisement on LG
Yes [ ] no [ ]
15.Yes, how you felt?
Excellent [ ] Good [ ]
Attractive [ ] Satisfactory [ ]
16.What is your opinion about LG t.v
good [ ] excellent [ ]
not good [ ] satisfactory [ ]
17.Are you satisfied with performance of LG t.v
yes [ ] no [ ]
18.If no in what aspect
price [ ] sound [ ]
quality [ ] picture [ ]
other [ ]
19.For what purpose you have purchase the t.v

73
 entertainment [ ]
Standard [ ]
educative [ ]
other purpose [ ]
20.Any suggestions or recommendations on LG T.V?
……………………………………………………………

74
 REFERENCE

TEXT BOOKS
Principles of Marketing – Philip Kotler and Gery Armstrong
Marketing Research – D.D. Sharma
Marketing Research – Green & Tull

Websites:
www.lg.com
Www.lgindia.com

75