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CUSTOMER PREFERENCE

FOR
SUNSILK SHAMPOO

REPORT CONTENT
1.0 INTRODUCTION
1.1
1.2
1.3
1.4
1.5

Background
Research Problem
Research Objectives
Research Questions
How You Will Benefit From This Report

2.0 LITERATURE REVIEW


3.0 METHODOLOGY
3.1 Conceptualizing frame work
3.2 Operationalization of variables
4.0 PRESENTATION OF FINDINGS
4.1 The age ranges of the respondents
4.2 No. of times that the respondents use Sunsilk shampoo

per week

4.3 What respondents think about the price levels of Sunsilk Shampoo?
4.4 Indicated levels of agreement for the following statements
4.5 Do you like the colour of currently using Sunsilk shampoo?
4.6 What do you expect by using a shampoo?
4.7 How satisfied are you with Sunsilk to meet your needs?
4.8 What influence you to buy Sunsilk?

5.0 FINDINGS AND DISCUSSION


5.1 What is the average level of preference towards Sunsilk shampoo?
5.2 What is the most significant variable affect for the level of preference?
5.3 What is the relationship between the affected reasons and the level of
preference?
5.4 What are the potential benefits that customers expect from Sunsilk shampoo?

6.0 CONCLUSIONS AND RECOMMENDATIONS


7.0 REFERENCE
8.0 APPENDIX
8.1 Questionnaire for Sunsilk Preferred Customers

1.0

INTRODUCTION

1.1

Background
This report takes an overview of the research that conducted in order to identify
the preference level of customers towards Sunsilk shampoo as a brand.
When it comes to brands of shampoo in Sri Lanka, Sunsilk has been considered
as Sri Lankas No: 01 shampoo brand for its capabilities to provide longer,
smoother and straight silky hair. This brand is also the strongest brand in Asia and
it is said to be available over 80 countries all over the world.
The brands most recent marketing campaign is the co- creation collaboration in
which 7 hair experts around the world would answer to every hair issues and
come up with the best solutions for the problem.
The new range of products is as follows:
Sunsilk dream soft and smooth
Sunsilk hair fall solution
Sunsilk damaged hair re construction
Sunsilk Stunning Black Shine
Sunsilk believes that the secrets to beautiful hair should not be locked behind the
salon door. So they have worked with seven internationally renowned hair experts
to create salon quality products for every girl, whoever she is, wherever she lives,
whatever her hair type.
This research was carried out to identify the customer preference for Sunsilk as a
brand. Now Sunsilk is being positioned as Sri Lankas No: 01 Shampoo brand and
this research report will help to identify he customer preference level and the
significant reasons for customer preference as well as the relationship between
those significant factors and the level of preference .The research findings will
definitely help in designing new product mix for current and the potential
customers which satisfy their needs better than ever.

1.2

Research Problem
To study customer preference level towards sunsilk shampoo.

1.3

Research Objectives

To determine the average level of preference towards Sunsilk shampoo.


To identify the effective reasons for the determined level of preference.
To identify the most significant variable affect for the level of preference.
To identify the relationship between the affected reasons and the level of

preference.
To recognize the potential benefits that customers expect from Sunsilk
shampoo.

1.4

Research Questions

What is the average level of preference towards Sunsilk shampoo?


What are the effective reasons for the determined level of preference?
What is the most significant variable affect for the level of preference?
What is the relationship between the affected reasons and the level of

preference?
What are the potential benefits that customers expect from Sunsilk
shampoo?

1.5

How You Will Benefit From This Report


Since this report provides detailed consumer insights into Sunsilk shampoo it is
an invaluable resource to executives, organizations looking to make marketing
decisions.
This report is an important tool to companies in the natural & organic personal
care products market, as well as those looking to enter this emerging market. It

provides detailed insights into consumer preference and expectations towards


these products. The report gives a thorough understanding of consumer
preference, enabling companies & retailers to develop marketing programmes,
distribution strategies and position products.
The report is useful for CEO s and senior managers to ensure that new or existing
products are correctly marketed and meet consumer expectations.
Marketing managers & executives to identify consumers needs, wants,
preferences and expectations. Such information can enable successful marketing
programmes and promotional activities to be developed that meet consumer hot
spots.
It is also helpful for business development executives to understand the market
and identify opportunities for new or existing products.
Advertising & marketing agencies working on advertising and promotional
campaigns are another party who is going to be benefitted through this research
report. It can help reach consumer hot spots by developing targeted and effective
marketing communications.
It is also beneficial for research & development executives to develop and
formulate new products based on consumers needs and expectations.

2.0

LITERATURE REVIEW
The literature review section reveals that the used variables are abstracts from the
prevailing theories and the previous related researches. Those abstracts are clearly
shown here and it supposes that this research is not biased.
Theory of Consumer Decision Making Process
This theory says that how the customers decide to purchase products. According
to this theory consumers can be divided in to three categories based on their ways
of decision making. They are Extensive problem solving, Limited problem
solving, and Routinized response behaviour.

At the level of Extensive problem solving, consumers need a great deal of


information to establish a set of criteria to be considered when preferring for a
specific brand. At the level of Limited problem solving, consumers have already
established the basic criteria for evaluating various brands but they search for
more additional brand information to discriminate among various brands of a
product category. Routinized response behaviour talks that consumers have
experience with the product category and a well established set of criteria with
which to evaluate the brands they are considering. They simply review what they
already know.
Apart from that, this theory also describes four models of consumers with
different views .First one is economic view .Under this view consumer is
considered to be a rational person in terms of being aware of all available product
alternatives and ranking those alternatives according to the benefits and
advantages and identifying the best alternative.
Next, cognitive view .it says that a consumer is a problem solver. Consumers
search for goods that fulfill their needs and enrich their lives.

Preference Formation Model (PFM)

Preference is formed when the customer is bonded to your company through the
establishment of a mutual benefit. Successful companies therefore go beyond
delivery of a commodity or service; they pursue the development of a relationship
with their customers. This bonded relationship will be more likely to survive
competitive attacks than the mere purveying of goods or services or an over
reliance on aggressive pricing models.
One of the components of the Preference Formation Process is the development of
a Preference Formation Profile. This profile breaks out the required attributes of
each stage of preference formation.
The profile further differentiates the required attributes of preference into emotive
or functional attributes and defines each as attractor, satisfier or expectant. The

PFM results in a likelihood of preference formation index (PFI) which represents


the strength of preference for a given product/service. We have found that the
preference formation index (a standardized score ranging from one to one
hundred) can range dramatically given the market and population under
consideration. When the index is weak (seventy-five or below) it means that
while the elements of preference are in play there is a reasonable amount of
indifference toward the preference target.
R.L. Oliver (1994) observed that customer satisfaction results from a process of
internal evaluation that actively compares expectations before purchase of a
product or service with perceived performance during and at the conclusion of a
purchase experience. The deployment of the theory of reasoned action as a model
for preference formation explains why such evaluation takes place. Satisfaction
is a product of the alignment between prescribed functional and emotive
performance elements and the ability of the company to meet the performance
expectations. Sustained preference is a product of meeting these requirements
over time.
What we have referred to as functional and emotive performance elements Oliver
defines as evaluative elements (expectants, satisfiers and attractors) that, in
turn, comprise a single product or service evaluative experience.

Sustained

preference can be thought of as a series of experience interactions that are


continuously being modified as the components of preference are modified over
time.
According to a research done by J. Jeffrey Inman, Leigh Mcalister, Wayne
D. Hoyer (1990), the promotional price cuts and promotion signals serve as
persuasive appeals in support of choosing a particular brand, the ELM model
posits a continuum of the ways choice attitudes might change as a result of
exposure to a promotion. At one end of the continuum, termed the central route to

persuasion, the consumer diligently, actively, and cognitively evaluates


information central to the particular evaluation.
Promoting a brand with both a promotion signal and a price cut will, on average,
increase the likelihood that an individual will choose that brand.
The presence of a promotion makes the selection of the promoted brand more
likely. Further, it seems that for some consumers, the promotion signal alone
represents a sufficiently significant change in the choice condition to induce a
shift in choice behavior toward the promoted brand. For some consumers, however, a concomitant price cut is needed.

Gregory S. Carpenter and Kent Nakamoto (1989) explain in their research


that consumer preference towards a product may differ because of the product
attributes. They say that the learning process of the customers form a preference
towards particular brand. First customers have a trial purchase and if the
customers are satisfied with the product attribute customers repurchase the
product and doing so the preference is formed. As a result, consumer preferences
are likely to evolve through time, updated through heuristic judgment processes.
Leon Schiffman and Leslie Kanuk.(2009) expresses in his book consumer
behavior the application of the Theory of Reasoned Action Model.
The model is designed to provide a better understanding of how consumer
preference is formed and, correspondingly, to provide the means to accurately
predict consumer preference behavior.
The important contribution of the reasoned action model is the realization that
consumers utilize the model in all purchase experiences to a lesser or greater
extent. Of equal importance is the realization that the components used to make a
preference decision are also the ones employed by a consumer to evaluate the
performance success of the product or service purchased and the company

responsible for them. Therefore, as the components of preference change, the


elements influencing satisfaction change accordingly.

The relationship is

dynamic and fluid therefore static or predetermined satisfaction analytic packages


often miss the most important elements of preference and can create a false sense
of security on the part of companies who think that since their customer
satisfaction scores are high they must in turn have relatively loyal customers.

3.0

METHODOLOGY
Type of the research conducted is a descriptive research, in which the major
objective is to identify and describe the level of customer preference towards
Sunsilk shampoo.
The respondents who were taken in to account in terms of gathering information
were randomly selected. The respondents were selected using a non probability
sampling technique, which is known as convenience sampling technique. The
respondents were selected based on the researchers convenience. The selected
sample size was 50 respondents. Well prepared questionnaire was used in terms of
gathering information. The questionnaire was distributed among the Sunsilk
shampoo preferred customers.

3.1

Conceptualizing frame work


Independent variables
price
Attribute
Need
Knowledge
Promotion

Dependent variable

Customer preference towards


shampoo

3.2

Operationalization of variables

Concept

Variables

Price

Attribute
Customer preference
towards Sunsilk
shampoo

4.0

Need

Indicators
High price
value for money
affordable price
fragrance
package
colour
Smoothening of hair
To prevent hair fall
To avoid dandruff
To reconstruct damaged hair

Measurement

Nominal scale

Likert scale

Nominal scale

Knowledge

Experience
information

Nominal scale

promotion

advertising

nominal scale

PRESENTATION OF FINDINGS

4.1 The age ranges of the respondents

12%
30%
22%

16-20
21-25
26-30
30-40

36%

According to the pie chart shown above Sunsilk is mostly preferred by the customers who
are within the age range of 21-25.Secondly 16-20.It shows that Sunsilk is mostly
preferred by young girls .But Sunsilk target market spreads from 16-40.However there is
a considerable preference level from the other two age ranges too.

4.2 No. of times that the respondents use Sunsilk shampoo per week

25

20

20
15

13

12

10
5

5
4

Customers use Sunsilk shampoo in average at least once a week .Most of the customers
that is 20 customers use shampoo twice a week. It shows that customer consumption is at
a higher level. As the customers are satisfied with their needs they prefer to use Sunsilk
more. There are also a considerable number of customers using Sunsilk three times a
week.

4.3 What respondents think about the price levels of Sunsilk Shampoo?

45

39

40
35
30
25
20
15

10

10
5

high price

value for money

affordable price

Most of the customers that is 39 customers think that the price of Sunslk is actually value
for money. They think so because Sunsilk satisfy their needs and it is worth for them for
the price they pay. Therefore customers never hesitate to buy Sunsilk shampoo again and
again. It increases the level of preference and it causes for the increasement of sales too.

4.4 Indicated levels of agreement for the following statements

I like the fragrance of Sunsilk very much


40
35
30
25
20
15
10
5
0

37
6

1
0

A large number of customers prefer the fragrance of Sunsilk shampoo. 43 customers that
is 86% of customers prefer Sunsilk fragrance while 6 customers (12%) do not rely on
fragrance.

The bottle of Sunsilk shampoo is very convenient to use


35
30
25
20
15
10
5
0

33

13
2
1

4
2

2 customers (4%) strongly agreed and 33 customers (66%) agreed with the given
statement and it shows that they prefer the current package of Sunsilk shampoo, but some
considerable numbers of customers do not care about the package. That is 13 customers
(26%).

I check the ingredients of Sunsilk shampoo when buying


30
25
20
15
10
5
0

26
11

Customers are intelligent and now they put a considerable amount of effort in identifying
healthy products. It is shown in the above chart.11 customers that is22% strongly care on
ingredients while 26 customers (52%) also check the ingredients of Shampoo.

Average preference level of Fragrance, package and ingredients

100%
90%

86%

80%

70%

70%

74%

60%

Average level of preference

50%
40%
30%
20%
10%
0%

fragrance

package

ingredients

variables affect for preference

The overall conclusion regarding these three variables Fragrance, package and
ingredients shows the customers are affected by these three variables to prefer for Sunsilk
shampoo. It shows that 86%, 70%, and74% of the sample customers prefer for those
variables and it led for a higher preference level.

4.5 Do you like the colour of currently using Sunsilk shampoo?

yes

no

44

This statistics show that the customers prefer the colour of currently using Sunsilk
shampoo brand. That is 44 customers (88%). But (12%) of customers need to have
another colour instead of current colour. Most of those customers had mentioned that they
prefer to have shampoo in white colour.

4.6 What do you expect by using a shampoo?

25

22

20
15

15

10
5

7
4

The above figure shows the types of needs the each customer expects from a shampoo.
Most of the customers that is 22 customers (44%) expect to smoothen their hair and
secondly 15 customers(30%) to have a black shiny hair. Sunsilk satisfies both these needs
through their products Sunsilk Dream Soft & Smooth and Sunsilk Black Shiny Hair. So it
reflects that customers prefer to buy Sunsilk because Sunsilk satisfy their needs.

4.7 How satisfied are you with Sunsilk to meet your needs?

45
40
35
30
25
20
15
10
5
0

40

2
0

This figure further shows that customers are satisfied with Sunsilk to meet their needs.
(12%) say that they are very satisfied and majority (80%) say that they are satisfied. This
says that as the customers are well satisfied and therefore they prefer to buy Sunsilk very
much.
In the same manner there are 2 customers (4%) that have still no satisfaction of Sunsilk.
But it is inconsiderable in comparing to the no: of customers that are satisfied with

Sunsilk. There are also another two customers who are neither satisfied nor unsatisfied. It
might be due to the affecting variable for them to buy. Because some customers showed
in the research that they do not pay attention to the need satisfaction.

4.8 What influence you to buy Sunsilk?


30

24

25
20

14

15
10
5

7
1

This figure shows that customers prefer to buy Sunsilk because of their self experience
(48%) and because of the recommendations given by the friends and neighbours (28%).
Promotion campaigns have a less effect on consumer preference as well as advertising.

Figure 4.1 to 4.8 presented the analyzed data and information gathered from the
questionnaire. The next part will show how the information support to get answers for the
following research questions and the findings of this research.

What is the average level of preference towards Sunsilk shampoo?


What are the effective reasons for the determined level of preference?
What is the most significant variable affect for the level of preference?
What is the relationship between the affected reasons and the level of

preference?
What are the potential benefits that customers expect from Sunsilk
shampoo?

5.0 FINDINGS AND DISCUSSION


5.1 What is the average level of preference towards Sunsilk shampoo?
100%
90%
80%
70%

Average level
of preference
towards
Sunsilk

92%

88% 86%
70%

88%
74%

60%

48%

50%
40%
30%

24%

20%
10%
0%

variables affect on preference

Considering all the independent variables affect for the level of customer preference, the
following factors are reflected.

92% of the customers prefer Sunsilk because of the need satisfaction they get
from Sunsilk and it is the most significant variable affect for the level of
preference.
Customers also have a 88% average preference level towards Sunsilk in terms of
price and colour .Customers believe that the price of Sunsilk is value for money
and the current colours of Sunsilk is also preferred by the customers.
Fragrance, package and ingredients also possess a considerable level of
preference among the customers.
There is a 48% average level effect towards the preference level from the past
experience of the customers.
There is a less effect that is 24% effect from promotions towards the preference
level of Sunsilk.

5.2 What is the most significant variable affect for the level of
preference?

4%

price

10% package need


fragrance
29%

4%

past experience

promotions

53%

colour

ingredients

This figure shows the factors that customers give priority in preferring for Sunsilk. The
most significant variable affect for customer preference is their need satisfaction (53%).
That tells the customers prefer to buy Sunsilk as satisfy their needs in using a shampoo.
Secondly customers pay attention to the price levels (29%). As Sunsilk is actually value
for money, customers prefer to buy Sunsilk rather buying another brand. But customers
never give priority for colour, promotion and package when buying shampoo.
As well they pay a considerable attention for ingredients that are 10%.

5.3 What is the relationship between the affected reasons and the level
of preference?
Price
When it comes to price customers preference level is high because of the affordable price
levels of Sunsilk. Customers give 29% priority in selecting shampoo. In the case of
Sunsilk most customers (78%) believe paying money is worth for Sunsilk.

Fragrance

A large number of customers prefer the fragrance of Sunsilk shampoo. 86% customers
prefer Sunsilk fragrance while 12% customers do not rely on fragrance. But 96% of
customers do not give priority foe fragrance when buying Sunsilk.

Package
4% customers strongly agreed and 66%customers agreed that it is convenient to use the
bottle of shampoo. It shows that they prefer the current package of Sunsilk shampoo, but
some considerable number of customers does not care about the package. That is
26%customers.But customers never give priority to the package in buying Sunsilk.

Need satisfaction
12% say that they are very satisfied and majority 80% says that they are satisfied. This
says that as the customers are well satisfied and therefore they prefer to buy Sunsilk very
much. In the same manner customers give priority (53%) for need satisfaction when
buying Sunsilk.

Colour
88% customers prefer the colour of currently using Sunsilk shampoo brand. But 12%)of
customers need to have another colour instead of current colour. Most of those customers
had mentioned that they prefer to have shampoo in white colour. As well as the package
they never

consider the colour of shampoo when buying.

Ingredients

Customers are intelligent and now they put a considerable amount of effort in identifying
healthy products. 22% customers strongly care on ingredients while 52% customers also
check the ingredients of Shampoo.

Past experience
48% percent of customers prefer Sunsilk because of their past experience .They believe
Sunsilk provides enough satisfaction so they prefer to buy Sunsilk.

Promotion
Customers never rely on promotion when buying Sunsilk. So promotion has a less effect
on customer preference level towards Sunsilk.

5.4 What are the potential benefits that customers expect from Sunsilk
shampoo?
Most of the customers had mentioned that they are really satisfied with Sunsilk.
Customers are satisfied with the new co creation and they believe that Sunsilk satisfy
their all hair problems.
But majority wanted to have a Sunsilk shampoo to prevent dandruff

6.0 CONCLUSIONS AND RECOMMENDATIONS


The following conclusions along with the recommendations can be drawn through this
research.
There is a higher level of customer preference level in terms of Sunsilk shampoo.
The customers prefer Sunsilk shampoo as it satisfies their expected need.
Secondly customers care on price.
The most significant variable that affect for the level of preference is need
satisfaction.

There is a considerable negative attitude towards the package .So the management
should consider on providing a convenient package.
Customers gather information through their friends and neighbours rather than
advertising or promotion campaign. So promotion mix should be changed in to
direct marketing.
According to the research done on consumer preference level consumers are
happy with the brand but the company need to increase more community based
awareness and also by using blogs.
Innovation, implementation, cost reduction to offer best competitive price and
execution should be the strategy for continuation to be the market leader.
The company should introduce a new product mix for cleanness and remove
dandruff.
It is better to find out innovative means of promotions like forming a special
association or some distinct group which will help maintain its brand equity and
loyalty.
Company should maintain its quality with constant improvements as customers
expect the high quality.
Company can survive if they come up with new varieties according to market
needs and maintain a competitive pricing.

7.0 REFERENCE
Basic Structural Model of Customer Preference Formation, (2009),Leon Schiffman and
Leslie Kanuk. Consumer Behavior, Nineth edition, published by

Pearson Prentice

Hall,South Asia.

Consumer Preference Formation and Pioneering Advantage, (Aug.1989) Gregory


S.Carpenter and Kent Nakamoto. Journal of Marketing Research,
Vol. 26,Published by American Marketing Association.

Developing Customer Insight: The Determination of Customer Preference.


www.icrsurvey.com

Promotion Signal: Proxy for a Price Cut? (Jun. 1990), J. Jeffrey Inman, Leigh McAlister,
Wayne D. Hoyer.The Journal of Consumer Research, Vol. 17, Published by: The
University of Chicago Press.
Research for Head and Shoulders (2007), Vikram B. Thadeshvar, Rohan
Tamrkar,Sailendra Sharma

8.0 APPENDIX
8.1 Questionnaire for Sunsilk Preferred Customers
1) What is your age range? Put a tick [].
16-20

21-25

26-30

30-40

2) How many times do you use Sunsilk shampoo per week? Put a tick [].
Once a week
Twice a week
Three times a week
More than three times a week
3) What reasons affect you to prefer for Sunsilk shampoo? Rank 1-8 according to
your priority.

statement

neither
strongly
strongly
agree
agree
disagree disagre
agree
nor
e
disagree

I like the fragrance of


Sunsilk very much
The bottle of Sunsilk
shampoo is very convenient
to use.
I check the ingredients of
Sunsilk when buying

price
fragrance
package
need satisfaction
colour
ingredients
past experience
Promotions
4) What do you think about the price levels of Sunsilk shampoo? Put a tick [].
high price
value for money
affordable price

5) Indicate your level of agreement for the following statements. Put a tick [].

6) What is the colour of your currently using Sunsilk shampoo?


Do you like that colour?

Yes

No

If not, what colour do you prefer to in your shampoo?

7) What do you expect by using a shampoo to wash your hair? Put a tick [].
Smoothening of hair
Black shiny hair
To prevent hair fall
To avoid dandruff
To construct damaged hair

8) How satisfied are you with Sunsilk to meet your needs that you mentioned in the
Q: (07)? Put a tick [].
very satisfied

satisfied
neither satisfied nor unsatisfied
unsatisfied
very unsatisfied

9) What influence you to buy Sunsilk? Put a tick [].


Advertising
Friends and neighbours
promotion campaigns
Self experience

10) Please suggest some other benefits you prefer to have from Sunsilk in the future.

Thank you for your favourable response

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