Analysis of Consumer

Behavior while purchasing

Consumer Durable
Presented by:
Shawinder Pal Singh A-51
Padalia Nandan B-34

Objectives
To

study the Indian Consumer Durable

industry.
To study the role of consumer while buying
of durables.
To study the various stages of Consumer
Decision Making Process.
To study how consumer behaves in
different situations before purchasing any
durable product.
To find the effectiveness of various sales
promotion activities.

Sources of data collection

Primary sources
Questionnaire
Secondary sources
Internet
News papers & magazines
Reference books

Research design
Sample area

Ahmedabad and Gandhinagar

Target sample

consumers of Ahmedabad and

Gandhinagar
Sample size

200 respondents (consumers)

Methods used

Convenience Sampling which is a

technique of Non Probability Sampling.

Limitations
Reluctance

on the part of the

respondents to provide exact details.
Lack of sufficient funds to cover the
whole universe as a sample.
Limited Coverage area for survey, it
was restricted to Ahmedabad and
Gandhinagar City only.
There were only five major durables
considered in this project

Industry Profile
Products
Television
Refrigerator
Washing machine
Air conditioner
Music system

Industry Profile (cont.)

Product wise Earning
Television:colour-Rs.91bn&B&WRs.5bn
Refrigerator:Rs.39bn
Air conditioner:Rs.24bn
Washing machine:Rs.11bn

Industry Driving factors

Low

price to push volume

Increasing number of replacement
buyers
aggressive advertising with innovative
marketing schemes
Easy availability of finance (installment)
future market growth is likely to come
from small towns and SEC (Social
Economic Class)

KEY ISSUES
High

competition led to price erosion

over the past
Increased consumer choice has reduced
brand loyalty
performance of players in the industry
has been characterized by declining
price realizations and shrinking
operating & net margins
The demand is both seasonal and
cyclical

Major players
LG
Samsung
BPL
Whirlpool
Sony
National Panasonic
Godrej
Videocon
Onida
Philips

Consumer Behavior
Consumer Behavior is defined as the
behavior that consumers display in searching
for, purchasing, using, evaluating and disposing
of products and services that they expect will
satisfy their needs
Consumer behavior focuses on how individuals
makes decisions to spend their available
resources like time, money and effort on
consumption related items.
That includes what, why, when, where and how
often they buy it, how they evaluate it after the
purchase and the impact of such evaluations on
future purchase and how they dispose of it.

In which way would you like to

pay?

Which mode of payment do you

prefer?

You shop for electronics items

mostly during.

which factors do you consider

while purchasing electronics
items?

Does your buying decision depend

on Schemes?

If yes in above question then

which type of schemes

From where do you gather the

information?

How many visits of showroom do

you make before buying?

How much time do you take before

making a decision to purchase?

Findings
Stocks

are pilling up at retail outlets due to

the probabilities of implementation of VAT.
The peak period of the year is third
quarter(oct-dec) which contains many
festivals like Diwali, Christmas etc.
In Consumer Durables there is a high level
of association of feelings and high
involvement during purchase
Price and Quality of the product are the
main considering factors at the time of
purchase

 Television

is the main source of getting

information about a product.
Price discount and Exchange offers are the
most popular sales promotion activities.
There is an increasing number of
replacement buyers.
People prefer to purchase through cash or
credit cards.
Installments are also the popular way to
achieve the sales volumes.
Most of the people visit the showroom thrice
before any purchase and it takes a week to
fortnight time for purchase.

Consumer follows a particular path for any purchase

which is known as Decision Making process which is
shown below:

NEED
RECOGNITIO
N

INFORMATIO
N SEARCH

POSTPURCHASE
BEHAVIOR

EVALUATION OF
ALTERNATIVES

PURCHASE
DECISION

SUGGESTIONS
Price

and Quality are the main features of

any product so companies should try to
achieve economies of scale and learning
curves with higher efficiency.
There are still some areas which are
under developed on which companies
should try to concentrate and develop
some penetrating strategies.
Giving installments at lower or zero
percent interest rate would help to
increase sales volumes.

SUGGESTIONS (cont.)
Give

advertisements associating feelings

with it to position the brand name.
Sales promotions affect the sales volume
so giving effective sales promotions will
lead to increase in sales volumes.
Price discount and exchange offers are
the most effective schemes so companies
should concentrate on it instead of other
schemes which are less effective.

Thank You

SHAWINDER PAL
SINGH
NICM,GANDHINAGAR