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Submitted to Sri Krishnadevaraya University, Anantapur In partial fulfillment of the requirement for the award of degree of Bachelor of Business Management By SYED MANSOOR PASHA Under the guidance of Mr. K. JAYAPRAKASH, M.com Faculty member Department of Commerce & Management Studies
CERTIFICATE
This is to certify that this is the bonafied project work entitled
A STUDY ON CONSUMER SATISFACTION TOWARDS DELL LAPTOPS IN KURNOOL CITY carried out by S. Mansoor Pasha, Registered No 8625130 for the year 2009-10 in
partial fulfillment of the requirement for the award of degree of Bachelor of Business Management from Sri Krishnadevaraya University, Anantapur
Principal
Examiners 1.
2. Project Guide
S.J.D.C, Kurnool
Mr. Syed Mansoor Pasha, a final year Bachelor of Business Management student of St. Josephs degree college, A STUDY ON
Kurnool in partial fulfillment for the award of degree of Bachelor of Business Management has done his project entitled KURNOOL CITY under my guidance.
All the details collected and furnished by him are true and original to my knowledge.
S.J.D.C, Kurnool
BONAFIDE CERTIFICATE
I here by declare that the project report entitled a study on Consumer satisfaction towards DELL LAPTOPS in Kurnool city under the guidance of Mr. K. Jayaprakash, M.com, lecturer in Management studies and this is submitted to St. Josephs Degree College, Kurnool affiliated to Sri Krishnadevaraya University, Anantapur and is drafted by me and is original of own.
ACKNOWLEDGEMENT
I express my heart full and sincere thanks to Miss Y. Showrilu Reddy, Principal, St Josephs Degree College, Kurnool for her motivation and support. I express my gratitude to project guide Mr. K. Jayaprakash lecturer in Management studies.
I also thank all the lecturers of the management department continuous for their valuable and suggestions full support and for
encouragement
S.J.D.C, Kurnool
CONTENTS Chapter-1
INTRODUCTION HISTORY COMPANY PROFILE PRODUCT PROFILE
Chapter-2
OBJECTIVES RESEARCH METHODOLOGY LIMITATIONS
Chapter-3
CONSUMER SATISFACTION
Chapter-4
DATA ANALYSIS & INTERPRETATION
Chapter-5
FINDINGS SUGGESTIONS QUESTIONNAIRE BIBLIOGRAPHY
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S.J.D.C, Kurnool
INTRODUCTION
In 2001, Dell Computer became the worlds largest personal computer vendor, continuing to gain market share and post profits in an industry struggling with slumping sales and billions of dollars in losses. Dell sells 90% of its PCs directly to the final customer, largely bypassing there seller channel that accounts for most of the worlds PC sales. This direct customer relationship is the key to Dells business model, and provides distinct advantages over the indirect sales model. Dells direct relationship with the customer allows it to tailor its offerings to customer needs, offer add-on products and services, and use the Internet to offer a variety of customer services. In addition, Dells PCs are built to customers specifications upon receipt of an order, giving Dell additional advantages over indirect PC vendors who must try to forecast demand and ship products based on those forecasts. Dells direct sales and build to-order model has achieved superior performance in the PC industry in terms of inventory turnover, reduced overhead, cash conversion, and return on investment. Dells business model is simple in concept, but very complex in execution. Building PCs to order means that Dell must have parts and components on hand to build a wide array of possible configurations with little advance notice. In order to fill orders quickly, Dell must have excellent manufacturing and logistics capabilities supported by information LAPTOPS that enable it to substitute information for inventory. The demands of Dells model have led it to adopt a new organizational structure referred to as a virtual company or value web (Figure 1). It is marked by a focus on a few key strategic activities, and extensive outsourcing of non-strategic activities. Dell works closely with external partners to produce its PC products and to offer its customers an array of additional products and services that add value and allow Dell to capture a larger share of the customers IT spending.
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To manufacture its products, Dell coordinates a global production network that spans the Americas, Europe and Asia, combining in-house final assembly with heavy reliance on outside suppliers and contract manufacturers.
Manufacturing of printed circuit board assemblies (PCBAs), subassemblies (box builds), and some final products (mainly notebook PCs) is handled by contract manufacturers or original design manufacturers such as SCI, Solectron, Celestica, Hon Hai, Quanta and Arima. Like other PC makers, Dell relies on outside suppliers for components and peripherals such as disk drives, CD-ROM drives, semiconductors, add-on cards, monitors, keyboards, mice and speakers. Its PCs can be bundled with standard software such as Microsoft Office or with specialized software requested by corporate customers.
Dell relies on outside partners for services such as Laptop integration, installation, on-site repairs and consulting. Partners include Wang, Unisys, IBM and BancTec. It also works with resellers who support Dell hardware and receive referral fees for recommending Dell to customers.
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History :
In 1996, Dell began selling computers via its web site Introduced the 316LT, the companys first notebook computer in 1989 Joined the top-five computer Laptop makers worldwide in 1993 Earning appr. $1 million per day 7 months after the launch of dell.com in 1996 Introduced E-Support, an online tool to provide technical support to customers 1999 1999, Dell overtook Compaq to become the largest seller of personal computers in the US 2007, Dell set a goal of becoming the greenest technology company on Earth for the long term. The company launched a zero-carbon initiative For the first time, Dell achieves No. 1 ranking in global market share in 2001 2003, name was changed to "Dell Inc." 2006, Dell purchased the computer hardware manufacturer Alienware January 2007, started a turnaround plan that promises to yield $3 billion in annual savings over the next three years.
Dell Structure :
It conducts operations worldwide, and manages business in three geographic regions: Americas region, based in Round Rock, Texas, covers the U.S., Canada, and Latin America. Europe, Middle East and Africa (EMEA) region, based in Bracknell, England, covers Europe, the Middle East, and Africa. Asia Pacific-Japan (APJ), based in Singapore, covers the Asian countries of the Pacific Rim as well as Australia, New Zealand, and India.
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Acquisition :
September 8th 1999 - First acquisition Converge Net Technologies. May 8th 2006 Acquired Alienware, a specialty computer desktop manufacturer, integrated it into the company's high-end product line. It introduced several new items to Dell products, including AMD microprocessors. To prevent cross-market products, Dell continues to run Alienware as a separate entity but still a wholly-owned subsidiary. January 28th 2008 - Acquired EqualLogic to gain a foothold in the ISCSI storage market. It was the largest acquisition of $1.4 billion .Integrating EqualLogic's products into the company drove manufacturing prices down. It extended Dell's leadership in simplifying IT for customers and partners. 2008 Three acquisitions, EqualLogic, The Networked Storage Company, and Message One 1999-2000 - Purchased stakes in four companies (NaviSite, Com2001.com, Fast Search & Transfer, Netyear Group). Divested two companies, in 2000 and 2008.
Major customers:
large corporations, government agencies medical and educational institutions small business individuals
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Coming products :
New PowerEdge Servers New Enterprise Computing Portfolio Innovation Aids Recovery Ultra-Thin Laptop, Adamo
Financials :
Revenue in the QY 09 fell 16% from the same period a year ago to $13.4 billion. Profits plummeted 48% to $351 million, or 18 cents a share, from $679 million, or 31 cents a share. Revenues of $61,133 million during the financial year ended February 2008, an increase of 6.5% over 2007. Operating profit of the company was $3,440 million in FY2008, an increase of 12.1% over 2007 Net profit was $2,947 million in FY2008, an increase of 14.1% over 2007
Recent Developments :
In January 2009, Dell announced that they will withdraw all manufacturing from Limerick and move it to its new plant in the Polish city of Lodz by January 2010. Raised their cost-reduction target to $4 billion. Dell also announced that it aimed to become a "one-percent company," giving away 1 % of pretax profits to education and digital inclusion projects mainly in emerging markets, by February 2010.
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Company profile
Dell Inc. (Dell) is a technology company that designs, develops, manufactures, markets, sells, and supports a range of products. Its product categories include mobility products, desktop personal computers (PCs), software and peripherals, servers and networking, services, and storage. The Company manages its business in four operating segments: Americas Commercial; Europe, Middle East and Africa (EMEA) Commercial; Asia Pacific-Japan (APJ) Commercial, and Global Consumer. During the fiscal year ended January 30, 2009 (fiscal 2009), the Company acquired the Networked Storage Company. In April 2008, the Company completed the acquisition of Message One, Inc., a company engaged in providing software-as-aservice (SaaS)-enabled, enterprise-class, e-mail business continuity, compliance, archiving and disaster recovery services. In January 2009, the Company acquired the Microsoft IT consulting and solutions segments of Allin Corporation.
Dell is one of the leading technology companies, offering a broad range of products, including desktop PCs, servers, networking products, storage, mobility products, software and peripherals, and services. The company operates in the Americas, EMEA and Asia Pacific. It is headquartered in Round Rock, Texas and employs 78,900 people including 2,400 temporary employees. The company recorded revenues of $61,101 million during the financial year ended January 2009 (FY2009), a decrease of 0.1% over 2008.The operating profit of the company was $3,190 million in FY2009, a decrease of 7.3% over 2008. Its net profit was $2,478 in FY2009, a decrease of 15.9% over 2008.
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Key Specs:
Processor: 2.4GHz Intel Core 2 Duo P8600 Memory: 3GB RAM Storage: 320GB hard drive Optical Drive: None (optional) Screen: 14 inches (1,366x768 native resolution) Graphics: Nvidia GeForce 9400M G (256MB) Weight: 4.85 pounds (with eight-cell battery, as tested) Dimensions (HWD): 0.8x13.2x9 inches Operating System: Windows Vista Home Premium Edition (64-bit)
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Key Specs:
Processor: 2GHz Core 2 Duo T7300 Memory: 2GB DDR2 Storage: 160GB hard drive Optical Drives: 8x DVDRW Display: 14.1-inch TFT Graphics: nVidia GeForce Go 8400 GS (128MB) Operating System: Windows Vista Home Premium
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Key Specs:
Processor: 1.6GHz Intel Atom Z530 Memory: 1GB RAM Storage: 160GB hard drive Optical Drive: None Screen: 10.1 inches (1,024x600 native resolution) Graphics: Integrated Intel GMA 500 Weight: 2.9 pounds Dimensions (HWD): 1.3x10.3x7.2 inches Operating System: Windows XP Home Edition (32-bit)
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Key Specs:
Processor: 2.2GHz Core 2 Duo T7500 Memory: 2GB DDR2 Storage: 160GB hard drive Optical Drives: Double-layer DVDRW Display: 13.3-inch wide-screen TFT Graphics: nVidia GeForce Go 8400 GS (128MB) Operating System: Microsoft Windows Vista Home Premium
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Key Specs:
Processor: 1.6GHz Turion 64 X2 TL-50 Memory: 2GB DDR2 Storage: 60GB hard drive Optical Drives: Double-layer DVDRW Display: 15.4-inch TFT Graphics: Integrated ATI Radeon Xpress 1150 Operating System: Windows Vista Home Premium
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OBJECTIVES
The objectives of the Dell Company are as follows 1. To determine up to what extent the Dell has satisfied the consumers 2. To know the mode of purchase by the customers. 3. To know the type of usage made by consumers. 4. The services rendered by the dealer should be determined. 5. To determine the company and its dealers attachments with consumers. 6. To determine the place of Dell with respect to various companies. 7. To determine the consumer satisfaction with regard to price and technology.
To know whether the consumers are aware of all the products released by the company.
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RESEARCH METHODOLOGY
Research refers to search for knowledge. It is an art of the scientific investigation. Research comprises definite problem. The research design ascetically states the procedures of data collection and analysis of information relevant to the problem.
I have selected my study in descriptive research which includes surveys, facts, findings, and enquiries. The method used for present study was survey method. Data was collected from fields survey by the personal interviews with consumers. Primary data was collected with the help of questionnaire for analysis.
MARKETING
RESEARCH
IS
THE
LAPTOPATIC
DESIGN,
COLLECTION, ANALYSIS, AND REPORTING OF DATA AND FINDINGS RELEVANT TO A SPECIFIC MARKETING SITUATION FACING THE COMPANY. Effective Marketing Research Marketing research is determined through the following steps Step 1: Define the problem and research objectives The first step for the marketing research is to define the problem carefully and agree on the research objectives. Not all research projects can be specific in their objectives. Some research is explained its goal is together a preliminary data to shed light on the real nature problem and to suggest positive solution or new idea. Some research id descriptive it seem to certain magnitudes. Step 2: Developing the research plan It aims for developing the most effective plan for gathering the needed information. Design a research plan based on the data sources, research approaches and contact methods. Data collection For quantitative research, the primary data collection is the questionnaires.
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Primary data The primary data is collected through questionnaires, which form the major part of the project. Secondary data The secondary data is readily available from the Dealers, news magazines. Data like company profile and organization procedures are obtained from the office. Consumers are often reluctant to take the time to respond to survey. For this reason researchers have found the questionnaires which may be interesting, unambiguous, easy to complete and generally non-burdensome in order to motivate respondents to answer truthfully and completely. Research Instruments Marketing researchers have a choice of two main research instruments in collecting primary data from questionnaires. Questionnaires This part is being explained briefly in the following theories of approach they are SAMPLING PLAN after deciding on the research approach and the instruments. The marketing researchers must design a sampling plan. This plan comprise of three parts 1. Sample Size 2. Sample Unit 3. Sample Procedure Sampling An integral component of research design is the sampling plan. Specifically it addresses three questions. Whom to survey(The sampling unit), How many to survey (sampling size), and How to select them(The sampling procedure). Sampling Unit The sampling units for the study consisted of respondents from all walks of life, either sex, different age groups, different income group and so on, but all residents of KURNOOL CITY. Sampling Size Considering the nature and extent of the study and with the time constraints, a sample size of 100 consumers was chosen. Sampling Procedure Simple random sampling method has been adopted for the study. In random sampling each element of the population has an equal chance of being selected for the sample.
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LIMITATIONS
Apart from the needs and importance of the study, there are limitations also. The limitations are as follows: 1. The study is confined only to Kurnool city and not the customers around the world. 2. Time factor is the main limitation of the study. 3. The methods used in this project are random sampling methods and the result obtained may not be fully accurate and believable. 4. The research has been centered to only 100 customers rather than millions of people. 5. Some of the customers are not interested to give the accurate information about the product. 6. This study is based on the figure available and the information given by the customers.
The conclusions drawn are subjected to the information provided by various buyers contacted.
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Satisfaction
Satisfaction is a person feeling of pleasure or disappointment resulting from comparing the products received performance is or (out come) in relation to his or her expectations. As this definition makes clear satisfaction is a function of received performance and expectations. With the performance falls sharp expectations, the customer is dissatisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. Mini companies are aiming for high satisfactions because customers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfactions or delights create an emotional brand with the brand. Not just rational performance the result is high customer loyalty Xeroxes senior managers believes that a very satisfied or delighted customer is worth tenth times as much to the company as a satisfied customer. A very satisfied customer is likely to stay with Xerox many more years and buy more than a satisfied customer. A customers decision to be loyal or to defect is the some of many small encounters with the company. Consulting from forum corporation says that in order for all this small encounters to add up to customers loyalty, companies need to create a branded customer experience in addition to customer value expectations and satisfactions companies need to monitor their competitors performance in this areas. For example a company was pleased to find 80% of his customers said they were satisfied. Then the CEO found out that its leading competitors attended a 90% customer satisfaction score. He was further dismayed when he learned that this competitor was aiming to reach a 95% satisfaction score. Although the customer centered firm seeks to create high customer satisfaction, its main goal is not to maximize customer satisfaction. If the company Dept., of Commerce & Management S.J.D.C, Kurnool
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increases customer satisfaction by lowering its prices or increasing its services, the result may be lower profits. The company might be able to increase its profitability by means other than increased satisfaction (for example, by improving manufacturing processes are investing more in R & B), also the company has many stake holders including employers, dealers, suppliers and stock holders. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other partners. Ultimately the company must operate on philosophy that it is trying to deliver faction to other stake holders within the constraints of its total resources.
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6. Costs less to serve than new customers because transactions are reutilized. Thus a company would be wise to measure customer satisfaction regularly. The company could phone recent buyers and inquire how many are highly satisfied, satisfied, indifferent and dissatisfied. Consumer Satisfaction Today in the consumer driven economy, all firms are engaged in a rat race to attract customers and build a long-term relationship with their loyal customers. The key to customers loyalty is through customer satisfaction. A satisfied customer will act as a spoke person of the companys product, and bring in more buyers. There is the Pareto principle or the 80/20 rules; it says 80 percent of one thing comes from 20 percent of another. That is to say a small percentage of loyal customers will lend a large weight to the companys sales.
So marketers have to ensure customers value satisfaction. For this they have to ensure: Products are developed to meet consumer requirements. Brands are positioned so as to convey distinctiveness. Communications are used to convey to consumer to experience that goes on using a value added product. Delivery to reinforce the promptness in making available to the consumers a value added product. Relationships are built to offer lifetime customer value to enable the consumer to experience value satisfaction. All the efforts of the marketers at trying to understand buying motives, organizing buying behavior and working out suitable promotional strategy to suit the consumer behavior are to ensure consumer satisfaction. In todays competitive environment, where companies are adopting various methods to whom the prospective consumers, marketers have to make all efforts to understand all the complexities which go into the buying behavior and frame marketing programs suitable to the target market.
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SWOT ANALYSIS
STRENGTHS No inventory buildup Acquition with Equalogic Quality product and service Whole world focus Brand name Customer service Cost efficiency Direct sell model=customization + fast + delivery + low cost Winning culture latest technology First mover advantage e-commerce capabilities: www.dell.com Build to order manufacturing process Product design + after sales service Expert Supply Chain Management OPPORTUNITIES Network-internet, intranet and extranet Developing nations market Low costs and growing advanced technology Growth in business, education and government markets Global wide access to customers and market. Expansion Increasing income of consumers Globalization WEAKNESSES No proprietary technology High dependency on component suppliers Occasional product recall. Eg. In 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires. unable to switch supply dues to the lack of large suppliers in the World high attrition rates among visitors to Dell.com No physical presence of service centers. slow in introducing fancy features Lack of innovation
THREATS Competition Currency fluctuation in countries outside the US Political instability Tariff trade barriers Recession
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USAGE OF LAPTOPS BY DIFFERENT TYPE OF PROFESSIONALS
Inference
According to the survey, the above table indicates that, 30(30%) of respondents are Employees, 30(30%) of respondents are Businessmen, 30(30%) are Students, and 10(10%) are other professionals who are using LAPTOPS. From the above table we can conclude that Employees and Businessmen are using LAPTOPS effectively than compared to the Students and Other professionals.
Source: Questionnaire
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Percentage
Inference
From the above table we can state that 70(70%) of respondents acquire Desktop LAPTOPS, and 30(30%) of respondents use LAPTOPS. The majority of the respondents are using desktop computers.
Source: Questionnaire
Dept., of Commerce & Management S.J.D.C, Kurnool
20000-25000
15000-20000
10000-15000
10
15
20
25
30
35
Inference
According to the survey, the above table indicates that 25 (25%) of respondents income level is 10000-15000, 22 (22%) of respondents income level is 15000-20000, 30(30%) of respondents income level is 20000-25000 and 23(23%) of respondents income level is above 25000.
Source: Questionnaire
S.J.D.C, Kurnool
Percentage
Inference
From the opinion of the respondents stated in the above table, 46(46%) acquire the DELL LAPTOPS through Cash basis, 18 (18%) of respondents purchase DELL through credit basis 36(36%) of respondents purchase DELL through Installments.
Source: Questionnaire
S.J.D.C, Kurnool
Inference
The above table states that 18(18%) of respondents prefer DELL due to Price factor, 42(42%) of respondents prefer DELL due to its Quality, 23(23%) voted for Configuration, and 17(17%) voted for Services. Most of the respondents i.e., 54% prefer DELL because of its good quality.
Source: Questionnaire
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Inference
According to the survey, the above table states that, 41(41%) of respondents are Highly Satisfied with DELL, 22(22%) of respondents are Moderately Satisfied, 31(31%) of respondents are Satisfied, and 6(6%) are Not Satisfied. Overall the satisfaction of respondents is more which a good sign is for the DELL makers.
Source: Questionnaire
S.J.D.C, Kurnool
Inference
Above table indicates that, 34(34%) of respondents purchase DELL due to the influence of Friends, 21(21%) of respondents are influenced by relatives, 36(36%) of respondents are influenced by Advertisements, and 9(9%) are influenced by Other factors.
Source: Questionnaire
Dept., of Commerce & Management S.J.D.C, Kurnool
Inference
From the above table we can obtain the opinion of the respondents about the prices of DELL. 10(10%) of respondents replied that the price of DELL is Very High, 16(16%) said High, 44(44%) of respondents voted the price of DELL is Medium, and 30(30%) of respondents said the price is Low.
Source: Questionnaire
S.J.D.C, Kurnool
Inference
According to the survey, the above table indicates that, 39(39%) of respondents are Highly Satisfied with the quality of DELL, 21(21%) are Moderately Satisfied, 34(34%) of respondents are Satisfied with the quality, and 6(6%) are Not Satisfied with the quality of DELL. From the survey done, we can state that more number of respondents are Satisfied with the quality of DELL.
Source: Questionnaire
S.J.D.C, Kurnool
Inference
According to the survey, the above table indicates that, 28(28%) of respondents said that sales promotional activities of DELL are Very Impressive, 17(17%) of respondents said Moderately Impressive, 36(36%) of respondents replied as Impressive, and 19(19%) of respondents are Not Impressive with the sales promotional activities of DELL.
Source: Questionnaire
S.J.D.C, Kurnool
Inference
From the above table we indicates that, 36(36%) of respondents said that the Advertisements of DELL are Excellent, 35(35%) of respondents said that the Ads of DELL are Good, 19(19%) of respondents said the Ads are Fair, and the remaining 10(10%) of respondents said that the Ads are Poor. Overall study states that the advertisements are proving effective in the sales promotion of DELL.
Source: Questionnaire
S.J.D.C, Kurnool
Inference
According to the survey, the above table indicates that, 37(37%) of respondents feel Excellent after sales service of DELL, 35(35%) said they feel Good, 19(19%) said Fair, and 9(9%) of respondents said Poor. Source: Questionnaire
S.J.D.C, Kurnool
Inference
From the above table indicates that, 80(80%) of customers want to suggest DELL Laptop to others they are satisfied with the brand, and 20(20%) of consumers dont want to suggest DELL Laptop to others as they are not much satisfied with DELL brand.
Source: Questionnaire
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Findings
1. It is found that most of the consumers are purchasing through cash basis 2. It is found that most of consumers are very much satisfied with the quality of Dell. 3. It is found that the influencing factor for the consumers to purchase Dell is through Advertisements. 4. The survey indicates that majority of the consumer wants to suggest Dell to others . 5. The advertisements of Dell are excellent. 6. The opinion of the consumer about the after sales services of Dell is good. 7. The sales promotional activities of Dell are good and further can be improved and maintained longer to capture more market share 8. It is found that most of the consumers need more colourful LAPTOPS.
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SUGGESTIONS
The following are the suggestions given by the consumers at the time of the survey conducted. 1. The Dell should improve its quality. 2. The Dell should reduce its prices. 3. The Dell should improve its post sale services. 4. The Dell should maintain its Brand image. 5. The Dell should improve its Sales promotional activities. 6. The Dell should launch a new model of product at regular intervals. 7. DELL Company should follow the promotional activities more like offers which generally increase the sales. 8. The company and its dealers should increase the attachments with the customers.
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Questionnaire
Name: Age: Gender: 1. What is your profession
4. What is your Income level per month 15,000 -20,000 5. What is your mode of purchase
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10. To what extent are you satisfied with quality of Dell Not satisfied 11. What is your opinion about sales promotional activities Of Dell Very Impressive Moderately Impressive Impressive Not Impressive 12. What is your opinion on Advertisements of Dell Excellent Good Fair Poor 13. What is your opinion after sales services of Dell Excellent Good Fair Poor 14. Would you suggest Dell Laptop to purchase any one else
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BIBLIOGRAPHY
REFERANCE BOOKS:
MARKETING MANAGEMENT: V.S.RAMASWAMY AND S.NAMAKUMARI GEORGE E.BELCH & MICHAEL A. PHILIP KOTHKER & GARY ARMSTRONG WWW.DELL.COM WWW.GOOGLE.COM WWW.COMPUTERSHOPPER.COM
WEBSITES:
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