Professional Documents
Culture Documents
ON
AT
Submitted By
Vineet Aggarwal
Class Roll No. - 2 YEAR MBA GENERAL 463
MBA 3rd Semester
I Piyush Goel Roll No. 2 Year MBA General 463 class M.B.A. 2 YEAR, 3 rd SEM of
Maharishi Dayanand University. Hereby declare that the summer training report entitled
"Consumer Behaviour towards Washing Machines and Refrigerator " is an original work
& same has not been submitted to any other institute for the award of any other degree
.Further, I assign the right to the university, subject to the permission from the
organization concerned, use the information and contents of the project to develop cases,
case lets, case leads, and papers for publication and/ or for use in teaching.
Signature of Candidate
2
ACKNOWLEDGEMENT
Any endeavor attempt at any level can not be satisfactory completed without the co-
operation and advice from learned persons. I have tried my best to bring up a good
project & live up to the exception of lecture. I can only express my gratitude to them
although this is inadequate for the time he spent.
PIYUSH GOEL
3
PREFACE
The main objective of project report and the project is familiarization with the necessary
theoretical inputs and to gain sufficient practical exposure to establish a distant linkage
between the conceptual knowledge acquired at the college and practicing those concepts.
The project is concerned with " Consumer Behaviour towards Washing Machines and
Refrigerator of Haier Appliances India Pvt. Ltd." My objective is to analyse Consumer
Behaviour towards Washing Machines and Refrigerator of the Company. I had also
surveyed various respondents to know their views about the Consumer Behaviour
towards Washing Machines and Refrigerator of organization.
4
Table of Contents
a) Company Profile
b) Introduction about topic
c) Significance of Study
d) Objectives of the Study
Bibliography 49-50
Annexure 51-54
5
6
HISTORY OF COMPANY
Founded in 1984, the Haier Group is today the world’s leading brand of major
household appliances and is now transforming from a traditional manufacturer to an
open entrepreneurship platform. In the era of the Internet and post e-commerce, Haier
will extend its ecosystem to social networks and community economies while enhancing
the user value of Haier products and services and instilling integrity as a core
competence throughout the Group. Haier aims to become a global leader in the era of
the Internet of Things.
1984-12-26 Zhang Ruimin, together with his leadership team, take the helm at Qingdao
General Refrigerator Factory on Xiaobaigan Road in Qingdao, China. Prior
to their arrival, the company had suffered from weak outside demand and a
demoralized staff - resulting in a loss of RMB 1.47 Million. Employees
would also not have received holiday bonuses if not for the newly arrived
Zhang Ruimin borrowing funds from local work units.
1995-07-01 In July of 1995, the Red Star Household Appliances Company was merged
into Haier Group. And, under the strategy of “digesting shock fish”, Haier
injected its own culture and activated the merged enterprise to develop
Haier into an increasingly larger scale.
1997-09-01 In September of 1997, with its entering color TV industry as the initiative,
Haier went into the industries of black household appliances and
information household appliances. And meanwhile, by way of low cost
expansion, Haier merged 18 enterprises, such as Shunde Washing Machine
Factory of Guangdong Province, Laiyang Electric Iron Factory, Fenghua
Refrigerator Factory of Guizhou Province, and Huangshan Television
Factory of Hefei, which guaranteed a larger development space for Haier’s
multi-line operation and expansion.
7
2000-01-27 During January 27th to February 1st, 2000, the 30th World Economic
Forum Annual Conference was held in Davos, Switzerland. Haier President
Zhang Ruimin was invited to attend the conference and give a speech, and
representatives from many countries were quite interested in Haier’s
practices of innovation.
2003-02-19 On February 19th, 2003, the “2003 Industrial Innovation Conference” was
held in the Hotel Continental, Yokohama. All 1,100 seats in the conference
hall were occupied. However, this year’s conference was different from
previous years because of the speech made by Haier CEO Zhang Ruimin,
the first Chinese entrepreneur invited to the conference. Head of the JMA
Research Institute Inc. (JMAR) commented: “the biggest difference
between Haier and Japanese companies is that Haier attaches great
importance to the management of people. As long as people are properly
managed, everything will go without a hitch. Thus, everything Mr. Zhang
has created is just great. If what you are doing (refers to SBU operation)
turns out to be successful, it will benefit not only Haier but also the whole
world. This will be a tremendous achievement.”
2004-11-01 In November of 2004, the world most influential financial media Financial
Times and the world largest accounting firm Price waterhorse Coopers
jointly publicized the “World Most Respectable Enterprises and
Entrepreneurs” as well as the ranking list of worldwide enterprises. And
among Chinese enterprises, Haier ranked No.1.
2010-12-14 Haier signs agreement with Shenbei New District in Shenyang to build the
Haier (Shenyang) Industry Part and Optoelectronics & IT Cluster. Haier
(Shenyang) Industry Part and Optoelectronics & IT Cluster will
manufacture mainly LEDs. Construction of the first phase will begin in
April 2011, and will be ready to begin production at the end of 2012.
2011-12-28 2011 Annual Meeting of China's Independent Innovation at the Great Hall
of the People, organized by Economic Daily. Haier chairman and CEO
Zhang Ruimin is recognized as one of China's top ten innovators. Haier
was also named one of China's top ten innovating companies because of its
management innovations, which have attracted global attention. At the
meeting, Zhang spoke on the theme of China using innovation to respond
to the changing global economic landscape, touching on new opportunities
and challenges in management innovation and management models in the
8
internet age.
2012-11-14 Closing of the 18th National Congress of the CPC. Haier Party secretary
comrade Zhang Ruimin attended the Congress as an alternate member of
the CPC Central Committee. Comrade Zhang was also an alternate member
at the 16th and 17th Party congresses.
2016-04-16 On April 16, 2016, Haier Group and China Railway Corporation signed a
comprehensive strategic cooperation agreement at Haier's headquarters in
Qingdao, bringing railway transformation into Haier's Internet ecosystem.
The two sides will jointly explore how to promote the supply-side
structural reform, accelerate the construction of modern logistics, improve
the effectiveness of supply for transportation, etc.
2017-01-14 Qingdao, China- January 14, 2017- Haier Innovation & Interaction
Conference on Ecological RenDanHeYi and Detonation of the Internet of
Things and the Second Session of the Seventh Congress of Workers and
Staff of Haier Group were held. Zhang Ruimin, Chairman and CEO of
Haier Group, attended the conference and gave the strategic guidance of Be
Confident with RenDanHeYi Model in Three Aspects.
9
BUSINESS OF THE ORGANIZATION
Products
Refrigerator
Washing Machine
Led TV
Air Conditioner
Water Heaters
Microwave Ovens
Commercial Air Conditioner
Commercial Freezers
10
International Presence
India
China
Japan
Republic of Korea
United Kingdom
Thailand
Deutschland
Australia
France
Malaysia
Italy
Indonesia
Philippines
Nederland
Vietnam
New Zealand
USA
Venezuela
Pakistan
Norway
South Africa
11
Departments of Haier Appliances India Pvt. Ltd. :
Marketing Department:
Haier should set up its stores in other countries and start introduction of their products to
the clients so that they can get good brand image. The brand should enhance the supply of
the products to their potential markets and increase the sale of their products in the new
markets. When the sale of the products will be enhanced, the company will generate more
profit from their dealings..
Planning product wise as well as region wise, product planning & control, pricing,
advertising, boosting exports, order planning & allocation, billing receiving & checking
of bills from different districts centre dispatch of material to the customer or distributor,
payment collection and accounting.
Finance Department:
The finance department manages the economics of the company. It also direct &
facilitates smooth flow of required funds in the company.
12
It ensubres supply of fund to all part of organization as when required.
It evaluates different investment proposals & selects the best among them.
It helps in exact cost calculation at all the centers.
Production Department:
Purchase Department:
Purchase department is responsible for raw material planning, release of purchase order,
vendor follow up of material, delivery at factories, and acceptance of material after QC
Report Acceptance from works & approval of the bills, payment of materials purchased.
Personal Department:
Men, materials, machine & money are regarded as the four important factors of
production. But the main factor is man power. Therefore, an effort is made by personnel
depts. to co-ordinate human & material resources in such a manner that organizational
13
objectives are achieved efficiently. Personnel Dept. Is the part of management which is
concerned with people at work & their inter personal relations.
Marketing Engineering
Finishing Materials
Packaging Warehousing
It is well known fact that if an organization looks after the welfare of people who are
serving in an organization, then these people contribute with their full efficiency & as a
result the organization should run profitable. Certain welfare activities are:
1. Canteen: - Tea, snacks & some other eatable are available here at subsidized rates.
2. Rest Places: - Attached with canteen is rest room where workers can take up their
lunch & tea etc.
3. Uniform: - All workers are given two set of uniform every year.
4. Medical: - The company has first aid room where first aid are available for the
employees.
OTHER FACILITIES
14
Apart from welfare facilities some other facilities are provided by the company
according to factory act. These are:-
1. Provident Fund (P.F.):- A 12% of employees pay is deducted per month &
at time of retirement whole amount is given to employees & workers in
the form of provident fund.
2. Gratuity Fund:- At time of retirement, a gratuity fund is also provided.
3. Bonus:- One in a year 20% bonus is provided.
4. Diwali Gift:- On Diwali company give gift to their employees.
15
16
INTRODUCTION TO PROJECT
Everybody know about Washing Machine & Refrigerator As these durable goods are the
part of human life.
Washing Machine is mainly used to wash the clothes. It is invented because Washing of
clothes require a lot of hard work but due to technology upgradation in this territory. It
has become a status symbol and a product of want.
Today, these different washing machines are provided by different companies by different
features.
Some company is providing simple washing machine with dryer, some of other providing
fully automatic. Some companies are providing Front Loading.
Refrigerator is used to store food item at a very low temperature so that food does not
destroy.
Food products are easily attacked by enzymes in summer season. So scientist think of the
product, that are stored at low temperature so that they can be safe for a longer period and
in this way, a great scientific product was invented namely Refrigerator, i.e. Fridge in
common language.
Now a days, there are different types of advanced Refrigerators that are available in the
market. Some of larger capacity, some are of eco-friendly, some are frost-free, some
make ice quickly and others maintains the hygienes of food items.
17
CONSUMER BEHAVIOUR
Consumer behaviour is the study of individuals, groups, or organizations and all the
activities associated with the purchase, use and disposal of goods and services, including
the consumer's emotional, mental and behavioural responses that precede or follow these
activities. Consumer behaviour emerged in the 1940s and 50s as a distinct sub-discipline
in the marketing area. Consumer behaviour is an inter-disciplinary social science that
blends elements from psychology, sociology, socialanthropology, ethnography,
marketing and economics, especially behavioural economics. It examines how emotions,
attitudes and preferences affect buying behaviour. Characteristics of individual
consumers such as demographics, personality lifestyles and behavioural variables such as
usage rates, usage occasion, loyalty, brand advocacy, willingness to provide referrals, in
an attempt to understand people's wants and consumption are all investigated in formal
studies of consumer behaviour. The study of consumer behaviour also investigates the
influences, on the consumer, from groups such as family, friends, sports, reference
groups, and society in general.
There are a lot of different consumer behavior research methods, for example: surveys,
focus groups, interviews, storytelling, photography, pictures, diaries, experiments, field
experiments, conjoint analysis, observations, purchase panels, database marketing etc.
Most popular types of consumer researchers are in-house marketing research
departments, external marketing research firms, advertising agencies, syndicated data
services, retailers, research foundations/trade groups, government, consumer
organizations etc. Currently academics and academic research centers are very interested
in consumer researches because there are a lot of changes and challenges, there are
changes in theories, theoretical approaches, methods and methodologies.
18
1. Secondary research involves using information that others have already put together.
2. Primary research, in contrast, is research that you design and conduct yourself. Primary
methods include surveys, focus groups, personal interviews, projective techniques,
observation, online research methods, and psychological methods.
4. Focus groups are useful when the marketer wants to launch a new product or modify
an existing one
6. Projective techniques are used when a consumer may feel embarrassed to admit to
certain opinions, feelings, or preferences
8. Online research methods. Currently scanner data is most popular method where the
information from the shops are analyzed and compared. At the same time development of
information technologies provoke development of new online methods and we are
expecting a lot of new methods in the nearest five years
19
Many authors have their own classification of factors what influence consumer behavior.
For example, David Jobber recommended such classification – Technical, Economic,
Social and Personal. Technical criteria are related to the performance of the product or
service and include reliability, durability, comfort and convenience. Economic criteria
concern the cost aspects of purchase and include price, running costs and residual values
(e.g. a trade-in value of a car). Social criteria concern the impact that the purchase makes
on the persons perceived relationships with other people, and the influence of social
norms on the person. Personal criteria concern how the product or service relates to the
individual psychologically. Self image is our personal view of us. Some people might
view themselves as young, upwardly mobile, successful executives, and wish to buy a
product that reflects that conception.
The authors agree with offered classification, but would like to add additional criteria to
each group. For example, in technical criteria the authors recommend to add also physical
dimensions of a product (like size, weight, hardness, density etc.). To economical criteria
authors recommend to add overall economical situation in a country, level of household
incomes, and other macro economical parameters. In the social criteria authors are
confident to recommend include cultural and national particularities what is dominant in
decision making process and action in every national group even in a multicultural
market. As a very important personal characteristic the authors can name intelligence
quotient. Very well known authors - William O.Bearden, Thomas N.Ingram and
Raymond W.Laforge recommended allocating factors in three groups – Social, Individual
and Situational
The most important social influences are culture, subculture, social class, family, and
interpersonal or reference group influences. Culture refers to the values, ideas, attitudes,
and symbols that people adopt t communicate, interpret, and interact as members of
society. In fact, culture describes a society’s way of life. Culture is learned and
transmitted from one generation to the next. It includes abstract elements (values,
attitudes, ideas, religion), and material elements (symbols, buildings, products, brands).
20
The process of absorbing a culture is called socialization. It continues throughout ones
life and produces many specific preferences for products and services, shopping patterns,
and interactions with others. Applied to marketing and consumer behavior, it is referred
to as consumer socialization
At the same time according to the author’s point of view the global trends are
connected with mix of cultures and lost of strict national traditions. Many international
events become a part of national celebrations. For example, Halloween day is not Latvian
national celebration, but it becomes usual. The concept of culture has two primary
implications for marketing: it determines the most basic values that influence consumer
behavior patterns, and it can be used to distinguish subcultures that represent substantial
market segments and opportunities.
Individual differences
Situational store factors within the retail environment are also important. These
store conditions include physical layout, atmospherics, location, the presence of others,
the assistance of salespeople, and in-store stimuli.
The model offered y William O.Bearden, Thomas N.Ingram and Raymond W. Laforge
does not include a lot of very important factors what influences consumer behavior.
21
Unfortunately, there are no economic factors included, therefore authors presume that this
model is constructed for market with dominate of middle-class consumers and their
incomes are stable in very long period. This model would be difficult to apply directly to
the market of Latvia or the Baltic States. But, at the same time, this model is notable,
because it contains situational factors what is not mentioned often in scientific
elaborations of other authors
Brassington Frances and Stephen Pettit are grouping all factors in four groups –
Individual, Situational, Group influences and Marketing mix. The decision-making
process is affected by a number of other more complex influences. Some of these
influences relate to the wider marketing environment.
22
Demographic factors play an important role in the consumer purchase process.
Income, age, occupation, and a myriad of other demographics can influence decision
making at every step in the process.
Another set of factors that marketers certainly hope will influence consumer
behavior is the marketing mix itself.
Much of what we know about how consumers behave is based on theories and
research from the field of psychology, the study of individual behavior. When analyzing
the process by which consumers make purchase decisions, marketers should understand
such psychological factors as motivation, perception, learning, personality, and attitudes
because they help explain the why of consumer behavior. Psychological factors are
sometimes called internal factors, that is, their influence occurs within the individual.
Because their influence is internal it cannot be observed, but must be inferred from what
people say or do.
Situational factors are all those factors particular to a time and place of
observation that do not follow from a knowledge of personal (individual) and stimulus
(choice alternative) attributes and that have a demonstrable and systematic effect on
current behavior. In other words, these factors are influences on consumer’s behavior that
aren’t related to the individual buyer or the alternatives being considered. Such factors
may affect communications situation, purchase situation, or usage situation
23
Table 1. Consumer behavior influence factors
Author Factor Samples
Kotler Cultural Culture, Subculture, Social class
Social Reference groups, Family, Roles and status
Personal Age and lifecycle stage, occupation, economic situation,
lifestyle, personality and self-concept
Psychological Motivation, perception, learning, beliefs and attitudes
Brassington Individual Personality, Perception, Motivation, Attitude
Situational Sociocultural, Technological, Economic/ Competitive,
Frances,
Political/ Regulatory
Stephen
Group influences Social class, Culture/ subculture, Reference groups,
Pettit
Family
Marketing mix Price, Product, Place, Promotion
Thomas Demographic Age, Education, Income, Race, Material status,
C.Kinnear, Household size, Gender
Marketing mix Product, Place, Price, Promotion
Kenneth
Internal/Psych Motivation, Perception, Learning, Personality, Attitudes
L.Bernhadt,
ological
Kathleen External/ Social Culture, Social class, Reference groups, Family
A.Krentler Situational Physical surroundings, Social surroundings, Temporal
perspective, Task definition, Antecedent states
At the same time authors believe that there are a lot of different possibilities to
classify factors what influence consumer behavior. Therefore in presented research
authors work out their own classification of factors for evaluation of changing behavior.
24
25
SIGNIFICANCE OF STUDY
26
27
OBJECTIVE OF STUDY
Main objective of study is to analysis the consumer behaviour toward Washing Machine
& Refrigerator.
28
29
RESEARCH METHODOLOGY
RESEARCH DESIGN
DATA SOURCES
Questionnaire: Primary
SAMPLE SIZE
30
TYPE OF RESEARCH DESIGN
The project will certain the drivers Consumer Behaviour and to find the factor which
affect purchase of Washing Machine & Refrigerator.
EXPLORATORY RESEARCH
The universe define as comprising of people who had avail, purchase for Washing
Machine & Refrigerator. Exploratory Research aimed at finding out the drivers of
consumer behaviour.
CONCLUSIVE RESEARCH
CONSTRUCT
The objective are further crystallized to determine specific constructs that essentially
define the Research Objective based on the Research Objectives, we have to measure : -
Purchase Behaviour
Post-Purchase Behaviour
31
INFORMATION NEED
Respondent’s Profile
General Information
Various consumer goods viz. Refrigerator, Washing Machine, Colour T.V. etc.
owned by respondent.
No. of Refrigerator & Washing Machine owned (Nominal Scale & multi-choice)
From where they get information about Washing Machine & Refrigerator (multi-
optional)
How much respondents are satisfied by product (multi-optional)
The Primary Sources are customer who purchase or going to purchase Washing Machine
and Refrigerator.
The Universe for the survey is the customer who researches dealer’s shop and who have
Washing Machine & Refrigerator in their home. The survey done at Rohtak and nearby
areas. In all, I collect a sample of 100. Data will be collect through administrated
questionnaires.
32
SCALING TECHNIQUES
3. 3 Point Scale
33
4. Binary Scale
5. Open End
34
35
Data analysis:-
Other 17
Data analysis:-
36
Table No.2 Reason for purchase of new Refrigerator
Options Percentage
Dont have any Refrigerator before new purchase 7
Old Refrigerator out of function/problematic 72
Better & Modern Refrigerator available 5
Storage Capacity of old REFRIGERATOR is not sufficient 16
Interpretation :- 7% peoples purchased new refrigerator because they dont have any
refrigerator at home, 72% peoples purchased refrigerator due to out of funtioning of old
refrigerator, 5% can change because modren refrigerator available and 16% can change
because of insufficient storage capacity.
Data analysis:-
37
Interpretation :- 67% peoples purchase direct cool refrigerator, 28% peoples purchase
frost free refrigerator & only 5% peoples purchase double cool refrigerator.
Data analysis:-
Table No.4 From where they know about the brand of Refrigerator
Options Percentage
Print Media 16
Broadcasting Media 42
Hording 31
Word of mouth 11
38
Interpretation :- 16% peoples know about the brand from print media, 42% by
broadcasting media, 31% by hordings & only 11% by word of mouth.
Data analysis:-
Options Percentage
Husband(individually) 18
Wife(individually) 6
Husband & Wife(Both) 67
Entire Family 9
39
Interpretation :- In 18% of cases husband can take purchase decision of a refrigerator,
in 6% of cases wife can take decision, in 67% cases both husband & wife can take
decision & only in 9% cases entire family can take purchase decision.
Data analysis:-
40
Interpretation :- 38% peoples agreed impact of celebrity endorsment in case of
refrigerator, 47% peoples stay neutral & 18% peoples disagree.
Data analysis:-
41
Interpretation :- 87% peoples interested to purchase refrigerator when promotional
schemes are open and 13% when promotional schemes not available.
42
43
FINDINGS
44
45
SUGGESTIONS
46
47
LIMITATIONS OF STUDY
1. The size of sample used in this study is small which may influence the findings &
suggestions of study.
2. The area of sample is a district of a state which may influence the findings &
suggestions of study
3. Though every caution in flowing questionnaire was taken due to human nature,
the possibility of business in the questionnaire cannot rule out.
48
49
Website & Search Engine:
https://en.wikipedia.org
http://www.yourarticlelibrary.com
Business Journals:
Business World.
Business Today
News Papers:
Times of India
Economic Times
Books Reffered:
50
51
1. Which Brand of Refrigerator you purchased?
(i) Samsung
(ii) Godrej
(iii) Haier
(iv) LG
(v) Other
Q.3. You have old REFRIGERATOR, is it Direct Cool, Frost-Free or Double Cool?
52
Q.4. From where did you know about your brand of REFRIGERATOR?
(iv) Word-of-Mouth
Q.5. How many people of your family do involve in purchasing decision making : -
Q.6. How much are you satisfied with your current purchase?
(i) Fully
(ii) Partially
(i) Agree
(ii) Neutral
(iii) Disagree
53
Q.8. When did you purchase/would like to purchase REFRIGERATOR?
Q.9. What is your opinion regarding about ‘After Sales Service’ of REFRIGERATOR?
(i) Agree
(ii) Neutral
(iii) Disagree
(i) Yes
(ii) No
54