SYNOPSIS

Problem: Consumer Buying Behavior & Brand

Loyalty in Consumer Durables (Segment: Color
TV) LG

Vs Others

Importance of studying this topic:

This study will give important insight of customer who goes to buy consumer
durables mainly Color TV in showrooms. What does he thinks while purchasing a
Color TV, what factors influence his decisions of purchasing TV? A seller in
showroom does not know what all goes in the mind of consumer when he enters
his shop to purchase TV. They have to rely on trial and error basis this research
will tell factors influencing consumer behavior and brand loyalty towards a brand.
This can help to convert maximum of potential customer into buyers.
It can help companies to direct its marketing mix efforts such that the consumer is
positively inclined to buy a companies product.

Hypothesis
-Brand loyalty and consumer behavior associated with other devices of the same
brand are held constant.
- Samples collected are representative of the entire population.
-Modern consumer is conscious and awareness is high. He/she is more curious
about product quality, price and features offered.

-Being in Indian context family plays an important role.

Reference Study
-Google
-Annual sales report
- Newspapers (Economic Times)
- Survey conducted by FICCI (FEDERATION OF INDIAN CHAMBERS OF COMMERCE
AND INDUSTRY) on Indian consumer durable industry.

Objective
-Basic objective of the project is to identify, how consumer react in today's
changing economic and globalization conditions towards High End consumer
Durables, more focus is given to consumer buying behavior while purchasing color
televisions.
- To judge if any Brand loyalty exists in the consumers towards a brand and what
factors influence consumer buying behavior and brand loyalty. For this actual
survey is to be done from people in Delhi and NCR.

Limitations
-Within the tech sector, the market for handheld devices like smart phones and
tablets is playing an increasingly important role in shaping consumers overall
awareness of brands.
-The research is limited to Delhi region.
-Among technology companies, those with a broader portfolio of products and
services, like Samsung, are better positioned to score many points in the survey
than companies like Sony, Apple, which doesnt make refrigerators or videogame
consoles.

-As consumer behavior and preferences are changing very rapidly, a failure to
keep up with the data regarding changes could result in a sudden and steep
decline in brand awareness of a company.

Background
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo
appeared. Today, few of these players control the major share of consumer
durable market.
Consumer durables market is growing very fast because of rise in living standard,
easy access to consumer finance, and wide range of choice, as many foreign
players are entering in the market.
With the increase in income levels, easy availability of finance, increase in
consumer awareness, and introduction of new models, the demand for consumer
durables has increased significantly. Products like washing machines, air
conditioners, microwave ovens, color televisions (CTVs) are no longer considered
luxury items. However, there are still very few players in categories like vacuum
cleaners, and dishwashers.
Consumer durables sector is characterized by the emergence of MNCs, exchange
offers, discounts, and intense competition. The market share of MNCs in
consumer durables sector is 65%. MNCs major target is the growing middle class
of India and increasing floating population. MNCs offer superior technology to the
consumer whereas the Indian companies compete on the basis of firm grasp of
the local market, their well-acknowledged brands, and hold over wide distribution
network. However, the penetration level of the consumer durables is still low in
India.

Scope of the research

 Taking into consideration overall view of the situation, project helps to

understand the role of Consumer Buying Behavior for Color Televisions.

Factors affecting consumer decision making and brand loyalty.
Understand the role of the brand loyalty in consumer durables.
Study the position of leader in the segment.

Methods of data collection

Primary sources - A primary source is a document, speech, or other sort of
evidence written, created or otherwise produced during the time under study. It
provides first-hand information.
-Questionnaire
-Interaction with people
(Sample units: Individual consumers, family members and friends.
Sampling Method: Random sampling)
Secondary sources- Information that has been already gathered (often
interpreted) by other researchers and recorded in books, articles, and other
publications. Contrast with primary source.
-Internet
-Business magazines and reports
-Newspaper, surveys and journals

Techniques for data interpretation:

Correlation and regression- The goal of a correlation analysis is to see whether
two measurement variables are interdependent or co-related, and to quantify the
strength of the relationship between the variables X and Y, whereas regression
expresses the relationship in the form of an equation (Regression is a way of

describing how one variable, the outcome, is numerically related to predictor

variables.)
For example, in students taking a Maths and English test, we could use
correlation to determine whether students who are good at Maths tend to be
good at English as well, and regression to determine whether the marks in English
can be predicted for given marks in Maths.

Observation:
LG Electronics is playing an active role in the market with its active business
policy.
LG India ha outperformed in all segment of consumer durable and consumer
electronic market. For most of the consumer LG is having maximum recall
value.
Consumer purchases are influenced strongly by cultural, social, personal and
psychological characteristics. For most marketers cannot control such factors,
but they must take them into account.
Quality ,design features, brand name, packaging, variety and services offered
have a bearing on consumer behavior and brand recall.
Quality is the most important factor in brand recall.
Consumers are not very sure about their association with a particular brand.
Only 44.19% consumers respond positively. Probably some consumer wants
to try a different brand next time. Changing market environment and
globalization is shifting consumer focus from being brand loyal.
For color TV as a product, it is a complex decision making process. Many
consumers would like to do a lot of information processing from various
sources. Consumers dont mind doing a show room surveys, going through
various news papers, magazine, active search of information is also involved
from internet.

Bibliography:
-

www.google.com
www.wikipedia.com
Business today
Economic Times
www.lgindia.com
www.business.mapsofindia.com