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A study of Consumer Behavior Strategies Towards Household Electronic Goods in Delhi


Need for the Study....................................................................................................................7
REVIEW OF THE LITERATURE........................................................................................8
Rationale of the study............................................................................................................15
Objectives of the study...........................................................................................................16
Company Profile.....................................................................................................................17
Research Methodology...........................................................................................................19
Expected Contribution...........................................................................................................20
Future Research.....................................................................................................................20

Consumer behaviour refers to the activities in which people acquire, consume and dispose
products and services (Blackwell et al., 2001). Owing to the proliferation of brands in the
recent decades, there is a growing number of research conducted in the field of consumer
buying behaviour. However, most of them concentrate on a single country study, regardless of
the importance of cross-country comparisons which will inspire innovative ideas for
understanding the fast-changing consumer habits. This dissertation is going to investigate the
differences of British and Chinese in purchasing clothes under the influence of brand image.
Due to the rapid changes in the global market and the increased competition experienced
between firms, Brand Management has become more important. Good brand management
brings about clear differentiation between products, ensures consumer loyalty and preferences
and may lead to a greater market share.
Aaker (1991) is of the view that establishing and managing brand should not be taken to be
the core operating target for most industries but should also be seen as a source of
competitiveness. In other words, value is added to a brand when the brand is able to compete
successfully with other brands.
Many researchers (Aaker 1991&1996, Keller 1993, Lasser 1995, Yoo & Donthun 2001,
Prasad & Dev. 2000 etc) have been interested in the concept and measurement of brand
equity because of the necessity in todays marketplace to develop, maintain and use product
branding to acquire a certain level of competitive advantage. According to Ailawadi et al.,
(2003, p. 1), this has led to various points of view on brand equity dimensions, the factors
that effect it, the perspective from which it should be studied as well as how to measure it.
Brands are highly regarded as an important source of capital for most business. The term
brand has different meaning attached to it; a brand can be defined as a name, logo, symbol
and identity or a trademark. Prasad and Dev. (2000) also states that a brand can be seen to
include all tangible and intangible attributes that a business stands for. Despite the fact that
lots of global and local brands of different products have been used to measure brand equity,
survey on brand equity in the service industry have not been fully explored. Prasad and Dev.
(2000) presented a study that shows that the easiest method for hotels to recognize and
distinguish themselves in the mind of their customers is through branding. Low and Lamb Jr
(2000) also stated that in service market, the main brand is the firms brand while in packaged
goods market, the main brand is seen to be the product brand.
A powerful brand will enhance a customers attitude strength of the product association of a
brand. Attitude strength is developed by experience with the product. According to Keller
(1993), customer awareness and association influences inferred attributes, perceived quality
and finally result to brand loyalty. He went further to say that the advantage of this

dimensionality of customer-based brand equity is that it allows marketing managers to study

how their marketing programs enhance their brand values in the minds of customers.
Brand name and what a brand stands for are the core values for most holiday hotel. If
properly managed, it will increase the competitive advantage of the holiday hotel. The basic
attribute of a holiday hotel are also important for a holiday hotel to excel because the
strength of a brand commonly provide the fundamental steps for differentiating between
several competitors. Majority of the holiday hotels have distinguishable brand identifiers, for
example Trident golden arches is easily recognized by customers.
Kotler et al (2005, p.549) defined a brand as a name, term, sign, symbol, design or a
combination of these that identifies the makers or seller of the product or services.
According to Kapferer (2004), a brand is a name that has the power to influence a buyer. He
went further to say that this influence could be as a result of a set of mental association and
relationship built up over time among customers or distributors.
Brand equity
Aaker (1991) stated that brand equity can be referred to as a set of brand assets and
liabilities linked to a brand, its name and symbol that add to or subtract from the value
provided by a product or service to a firm and/or to that firms customers.
Brand loyalty
Aaker (1991 p.39) defined Brand loyalty as the attachment that a customer has to a brand.
It can also be seen as consumers preference to purchase a particular brand in a product class
and this could be as a result of the consumer awareness about that particular brand.
Brand image
Brand image is referred to as consumer perceptions about the brand or how they view it.
According to Keller (1993), brand image is also seen as a symbolic construct created within
the minds of people and consist of all the information and expectations associated with a
product or service.
Brand Awareness
Keller (2003) stated that Brand awareness can be referred to as the ability of a consumer to
distinguish a brand under various conditions. Keller (2003) also noted that brand awareness is
built and increased by familiarity with the brand as a result of repeated vulnerability which
eventually leads to consumers experience with the brand. Consumers experience of a
particular brand could either be by hearing, seeing, or thinking about it and this will help the
brand to stick in their memory.
What is Consumer Buying Behavior?
Definition of Buying Behavior:
Buying Behavior is the decision processes and acts of people involved in buying and using
Need to understand:
why consumers make the purchases that they make?

what factors influence consumer purchases?

the changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm
needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when
and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.

Consumer behaviour is affected by many uncontrollable factors. Just think, what influences
you before you buy a product or service? Your friends, your upbringing, your culture, the
media, a role model or influences from certain groups?
Status and Culture
Culture is one factor that influences behaviour. Simply culture is defined as our attitudes and
beliefs. But how are these attitudes and beliefs developed? As an individual growing up, a
child is influenced by their parents, brothers, sister and other family member who may teach
them what is wrong or right. They learn about their religion and culture, which helps them
develop these opinions, attitudes and beliefs (AIO) . These factors will influence their
purchase behaviour however other factors like groups of friends, or people they look up to
may influence their choices of purchasing a particular product or service. Reference groups
are particular groups of people some people may look up towards to that have an impact on
consumer behaviour. So they can be a singer like the Lady Gaga or your immediate family
members. Opinion leaders are those people that you look up to because your respect their
views and judgements and these views may influence consumer decisions. So it maybe a
friend who works with the IT trade who may influence your decision on what computer to
buy. The economical environment also has an impact on consumer behaviour; do consumers
have a secure job and a regular income to spend on goods? Marketing and advertising
obviously influence consumers in trying to evoke them to purchase a particular product or
People's social status will also impact their behaviour. What is their role within society? Are
they Actors? Doctors? Office worker? and mothers and fathers also? Clearly being parents
affects your buying habits depending on the age of the children, the type of job may mean
you need to purchase formal clothes, the income which is earned has an impact. The lifestyle
of someone who earns 250000 would clearly be different from someone who earns 25000.
Also characters have an influence on buying decision. Whether the person is extrovert (out
going and spends on entertainment) or introvert (keeps to themselves and purchases via
online or mail order) again has an impact on the types of purchases made.
Maslows Hierarchy of Needs
Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in
life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to
meet basic psychological needs of hunger and thirst. When this has been met they then move
up to the next stage of the hierarchy, safety needs, where the priority is with job security and

knowing that you have a regualar income. Social needs come in the next level of the
hierarchy, the need to belong or be loved is a natural human desire and people strive for this
belonging. Esteem need is the need for status and recognition within society, status
sometimes drives people, the need to have a good job title and be recognised or the need to
Self-actualisation the realisation that an individual has reached their potential in life. The
point of self-actualisation is down to the individual, when do you know you have reached
your point of self-fulfilment?
But how does this concept help an organisation trying to market a product or service?
Well as we have established earlier within this website, marketing is about meeting needs and
providing benefits, Maslows concept suggests that needs change as we go along our path of
striving for self-actualisation. Supermarket firms develop value brands to meet the
psychological needs of hunger and thirst. Harrods develops products and services for those
who want have met their esteem needs. So Maslows concept is useful for marketers as it can
help them understand consumer needs and wants.
Types of buying behaviour.
There are four typical types of buying behaviour based on the type of products that intends to
be purchased.
1. Complex buying behaviour is where the individual purchases a high value brand and
seeks a lot of information before the purchase is made.
2. Habitual buying behaviour is where the individual buys a product out of habit e.g. a
daily newspaper, sugar or salt.
3. Variety seeking buying behaviour is where the individual likes to shop around and
experiment with different products. So an individual may shop around for different
breakfast cereals because he/she wants variety in the mornings!
4. Dissonance reducing buying behaviour is when buyers are highly involved with the
purchase of the product, because the purchase is expensive or infrequent. There is
little difference between existing brands an example would be buying a diamond ring,
there is perceived little difference between existing diamond brand manufacturers.
There are five stages of consumer purchase behaviour
Problem/Need Recognition
Information search.
Evaluation of purchases.
Purchase decision.
Post purchase behaviour.
Culture has an impact on the company and the way products are developed. Marketers should
take into account Maslows hierarchy of needs when putting together their product idea.
Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase. All

consumer decisions do not always include all 6 stages, determined by the degree of
complexity...discussed next.
The 6 stages are:
1. Problem Recognition(awareness of need)--difference between the desired state and
the actual condition. Deficit in assortment of products. Hunger--Food. Hunger
stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know you were
deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you
need a new pair of shoes.
2. Information search-o Internal search, memory.
o External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources
A successful information search leaves a buyer with possible alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is
o chinese food
o indian food
o burger king
o klondike kates etc
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer
wants or does not want. Rank/weight alternatives or resume search. May decide that
you want to eat something spicy, indian gets highest rank etc.
If not satisfied with your choice then return to the search phase. Can you think of
another restaurant? Look in the yellow pages etc. Information from different sources
may be treated differently. Marketers try to influence by "framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package, store,
method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive
Dissonance, have you made the right decision. This can be reduced by warranties,
after sales communication etc.
After eating an indian meal, may think that really you wanted a chinese meal instead.

Need for the Study

While the fastest growth and development of retailing environment, understanding the psyche
of customer is critical for todays business and environment. Aggregate or macro level
information may mislead, so understanding at individual customer level is desirable. It is
generally observed that customers have a wide range of choices for purchasing apparels and
they have no clear vision to what they buy. Todays consumption in young Indian consumer
has no limits - they work hard and spend money for more non-essential products and it is
been a driving factor and evolution in the electronics products.


Over the last few years, retail has become one of the fastest growing sectors in the Indian
economy. Though the country has the highest retail outlet density in the world, Indian retail
sector is highly fragmented and organised retail in the country is at very nascent stage.
Organised retailing accounts for less than 5% of the retailing industry in India. Therefore,
there is no real retail revolution in India since the industry is still in a stage of infancy. The
organized retail industry in India is expected to grow 25-30% annually and is projected to
attain USD 23 billion by 2010 (FICCI, 2005). Retailing is gradually inching its way towards
becoming the next boom industry. Consumers are the major beneficiaries of the retail boom.
Indian consumer is changing rapidly. They now have a choice of a wide range of products,
quality and prices. Organised retailing is changing the whole concept of shopping in terms of
consumer buying behaviour. In such a scenario, consumer decision making is of great interest
for consumer educators and marketers interested in serving the consumer (Canabal, 2002).
Therefore, there is clearly a need for research on this issue in India. In this study, an attempt
was made to study the consumer decision-making styles in shopping malls of India.
Retailers and marketers often seek to learn how and why people shop. The consumer
decision-making process is a complex phenomenon. The purchase of goods or services
includes a number of factors that could affect each decision.
Decision making is more complex and even more important for consumers today than in the
past. Consumers are besieged by advertising, news articles, and direct mailing that provide an
abundance of information, much of it with mixed messages. In addition, increases in the
number and variety of goods, stores, and shopping malls, and the availability of multi
component products and electronic purchasing capabilities have broadened the sphere for
consumer choice and have complicated decision making (Hafstrom et al., 1992) Sproles and
Kendall (1986) define a consumer decision making (CDM) style as "a mental orientation
characterising a consumer's approach to making choices." Broadly speaking, there are three
types of approaches in studying consumer decision-making styles: the psychographic/lifestyle
approach, which identifies hundreds of characteristics related to consumer behavior; the
consumer typology approach, which classifies consumers into several types; and the
consumer characteristics approach, which focuses on different cognitive dimensions of
consumer decision making ( Fan et al., 1998).
In the extant consumer behaviour literature, most studies assume that all consumers approach
shopping with certain decision-making traits that combine to form a consumer's decisionmaking styles. Academicians and researchers have long been interested in identifying these
underlying decision styles of shoppers. For example, consumers are identified as economic
shoppers, personalizing shoppers, ethical shoppers, apathetic shoppers, store-loyal shoppers,
recreational shoppers, convenience shoppers, price-oriented shoppers, brand-loyal shoppers,
name-conscious shoppers, problem solving shoppers, quality shoppers, fashion shoppers,

brand conscious shoppers and impulse shoppers. (Bellenger and Korgaonkar 1980; Darden
and Reynolds 1971; Stone 1954, Williams, Painter, and Nicholas 1978, Moschis 1976;
Stephenson and Willett 1969, Gehrt and Carter 1992, Jacoby and Chestnut 1978, Lumpkin
1985). ( Hiu, A.Y. et al., 2001).
Using the consumer characteristics approach, Sproles (1985) developed a 50-item instrument
to profile the decision making styles of consumers. Using data collected from 111
undergraduate women in two classes at the University of Arizona and employing a factor
analysis technique, Sproles (1985) found six consumer decision-making style traits He named
and described these traits: (1) Perfectionism, (2) Value Conscious, (3) Brand Consciousness,
(4) Novelty-Fad-Fashion Consciousness, (5) Shopping Avoider-Time Saver-Satisficer (6)
Confused, Support-Seeking Decision-Maker. In a later study, Sproles and Kendall (1986)
developed a comprehensive instrument called Consumer Style Inventory (CSI) to measure
consumer decision making styles. The instrument was administered to 482 students in 29
home economics classes in five high schools in the Tucson, Arizona area. (ref. Fan, J.X.,
1998). This instrument measures eight mental characteristics of consumer's decision making:
perfectionism, brand consciousness, novelty-fashion consciousness, recreational, price-value
consciousness, impulsiveness, confused by over choice, and brandloyal/ habitual, (ref.
Mitchell, Vincent-Wayne, 2001).
Characteristics of Eight Consumer Decision- Making Styles
1. Perfectionist/high quality-conscious consumer : decision style of consumers who
systematically search for the best quality products possible. Consumers have high standards
and expectations for consumer goods, and are concerned with the function and quality of
2. Brand consciousness : decision style of consumers concerned with getting the most
expensive, well-known brands. They feel that price is an indicator of quality.
3. Novelty and fashion conscious : decision style of consumers who like new and innovative
products and who gain excitement from seeking out new things. They are conscious of new
fashions and fads.
4. Recreational and shopping conscious : decision style of consumers who take pleasure in
shopping and who shop just for the fun of it.
5. Price conscious : decision style of consumers who are concerned with getting lower prices.
They are likely to be comparison shoppers.
6. Impulsiveness/careless : decision style of consumers who never plan their shopping and
tend to buy spontaneously.
They are not concerned about how much money they spend.

7. Confused by over choice : decision style of consumers who feel they have too many brands
and stores to choose from and who likely experience information overload in the market.
Consumers find the marketplace confusing, view brands as alike, and seek help from friends
8. Habitual/brand loyal: decision style of consumers who are apt to have favorite brands and
stores. They shop at the same stores and tend to buy the same brands each time.
According to Sproles & Kendall (1986) identification of these characteristics among
consumers "helps to profile an individual consumer style, educate consumers about their
specific decision making characteristics, and counsel families on financial management".
Consumer Style Inventory (CSI) developed by Sproles & Kendall (1986) was used by many
researchers to study the consumer decision making styles. Some of the research are briefly
described below.
Hafstrom et al. (1992) used the CSI to identify the decisionmaking styles of Korean students.
They confirmed seven of the eight factors using Sproles & Kendall's analytical methods and
conceptual framework. The only factor that was not confirmed was 'novelty fashion
consciousness. They attributed this to possible links between 'brand consciousness' and
'fashion consciousness among young Korean consumers.
Hiu et al. (2001) administered the CSI to 387 adult consumers in China. Their findings
indicate that five decision-making styles are valid and reliable in Chinese culture. These
styles were perfectionist, novelty-fashion conscious, recreational, price conscious, and
confused by over choice.
Fan and Xiao (1998) used a modified CSI with Chinese students. They clearly identified five
dimensions of consumer decision making styles : brand consciousness; time consciousness;
price consciousness; quality consciousness; and information utilization.
Walsh et al. (2001) confirmed seven factors of consumer decision-making styles for German
consumers. These factors were brand consciousness, perfectionism, recreational/ hedonism,
confused by overchoice, impulsiveness, noveltyfashion consciousness, variety seeking.
Durvasula etal. (1993) administered the CSI on 210 undergraduate business students at a
large university in New Zealand. They found eight consumer decision making styles.
These styles are perfectionist, brand conscious, noveltyfashion conscious, recreational
shopping conscious, price value conscious, impulsive, confused by over-choice, and habitual/
Canabal, M.E. (2002) investigated the decision making styles of South Indian Consumers
utilizing Customer Style Inventory. Using data collected from 173 college students from two
institutions of higher education in the city of Coimbatore, South India, Canabal (2002)
identified five decision making styles of South Indian. These styles are (1) Brand Conscious
Style, (2) High Quality Conscious / Perfectionist Style, (3) Confused by Overchoice Style, (4)
Impulsive / Brand Indifferent Style, and (5) Recreational Shopper Style.

Consumer behaviour is the study of when, why, how, and where people do or do not buy a
product. It blends elements from psychology, sociology, social anthropology and economics.
It attempts to understand the buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics and behavioural
variables in an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Research has shown that consumer behavior
is difficult to predict, even for experts in the field. Relationship marketing is an influential
asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship
management, personalisation, customisation and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.
Each method for vote counting is assumed as social function but if Arrows possibility
theorem is used for a social function, social welfare function is achieved. Some specifications
of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity,
homogeneity and weak and strong Pareto optimality. No social choice function meets these
requirements in an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a logical relation
with the ranks. Marketing provides services in order to satisfy customers. With that in mind,
the productive system is considered from its beginning at the production level, to the end of
the cycle, the consumer (Kioumarsi et al., 2009).
Black box model
The black box model shows the interaction of stimuli, consumer characteristics, decision
process and consumer responses. It can be distinguished between interpersonal stimuli
(between people) or intrapersonal stimuli (within people) The black box model is related to
the black box theory of behaviourism, where the focus is not set on the processes inside a
consumer, but the relation between the stimuli and the response of the consumer. The
marketing stimuli are planned and processed by the companies, whereas the environmental
stimulus are given by social factors, based on the economical, political and cultural
circumstances of a society. The buyers black box contains the buyer characteristics and the
decision process, which determines the buyers response.
The black box model considers the buyers response as a result of a conscious, rational
decision process, in which it is assumed that the buyer has recognized the problem. However,
in reality many decisions are not made in awareness of a determined problem by the

Information search
Once the consumer has recognised a problem, they search for information on products and
services that can solve that problem. Belch and Belch (2007) explain that consumers
undertake both an internal (memory) and an external search.
Sources of information include:
Personal sources
Commercial sources
Public sources
Personal experience
The relevant internal psychological process that is associated with information search is
perception. Perception is defined as "the process by which an individual receives, selects,
organises, and interprets information to create a meaningful picture of the world".
Consumers' tendency to search for information on goods and services makes it possible for
researchers to forecast the purchasing plans of consumers using brief descriptions of the
products of interest.

The selective perception process

Stage Description

Selective exposure consumers select which promotional messages they will expose
themselves to.

Selective attention consumers select which promotional messages they will pay
attention to.

Selective comprehension consumer interpret messages in line with their beliefs,

attitudes, motives and experiences.

Selective retention consumers remember messages that are more meaningful or

important to them.

The implications of this process help develop an effective promotional strategy, and select
which sources of information are more effective for the brand.
Information evaluation

At this time the consumer compares the brands and products that are in their evoked set. How
can the marketing organization increase the likelihood that their brand is part of the
consumer's evoked set? Consumers evaluate alternatives in terms of the functional and
psychological benefits that they offer. The marketing organization needs to understand what
benefits consumers are seeking and therefore which attributes are most important in terms of
making a decision. It also needs to check other brands of the customers consideration set to
prepare the right plan for its own brand.

Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The marketing
organization must facilitate the consumer to act on their purchase intention. The organization
can use a variety of techniques to achieve this. The provision of credit or payment terms may
encourage purchase, or a sales promotion such as the opportunity to receive a premium or
enter a competition may provide an incentive to buy now. The relevant internal psychological
process that is associated with purchase decision is integration. Once the integration is
achieved, the organization can influence the purchase decisions much more easily.
There are 5 stages of a consumer buying process.they are: The problem recognition stage,
meaning the identification of something a consumer needs. The search for information, which
means you search your knowledge bases or external knowledge sources for information on
the product. The possibility of alternative options, meaning whether there is another better or
cheaper product available. The choice to purchase the product and then finally the actual
purchase of the product. This shows the complete process that a consumer will most likely,
whether recognisably or not, go through when they go to buy a product.
Post purchase evaluation
The EKB model was further developed by Rice (1993) which suggested there should be a
feedback loop, Foxall (2005) further suggests the importance of the post purchase evaluation
and that it is key because of its influences on future purchase patterns.
Other influences
Consumer behaviour is influenced by internal conditions such as demographics,
psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and
feelings. Psychological factors include an individuals motivation, perception, attitude and
belief, while personal factors include income level, personality, age, occupation and lifestyle.
Behaviour can also be affected by external influences, such as culture, sub-culture, locality,
royalty, ethnicity, family, social class, past experience reference groups, lifestyle, market mix

Why do we need to learn about consumer buying behavior? The simple answer is that no
longer can we take the customers for granted. Consumer buying behavior determines how
our consumers decide to buy our product and what are the various factors responsible for this
Out of 11000 new products introduced by 77 companies, only 56% are present after 5 years.
Only 8% of new product concepts offered by 112 leading companies reached the market. Out
of that 83% failed to meet marketing objectives. What we need to understand here is why
consumers make the purchases that they make, what factors influence consumer purchases
and changing factors in our society
The central focus of marketing is the consumer. To devise good marketing plans, it is
necessary to examine consumer behavioral attributes and needs, lifestyles, and purchase
processes and then make proper marketing-mix decisions. The study of Consumer behavior
includes the study of what they buy, why they buy, how they buy, when they buy, from where
they buy, and how often they buy. An open-minded consumer-oriented approach is imperative
in todays diverse global marketplace so a firm can identify and serve its target market,
minimize dissatisfaction, and stay ahead of competitors. Final consumers purchase for
personal, family, or household use.
Major Factors affecting consumer buying behavior
Cultural factors affecting consumer buying behaviour: Cultural factors have a significant
impact on customer behavior.Culture is the most basic cause of a persons wants and
behavior. Growing up, children learn basic values, perception and wants from the family and
other important groups. Marketers are always trying to spot cultural shifts which might
point to new products that might be wanted by customers or to increased demand.
Social factors affecting consumer buying behaviour: A customers buying behavior is also
influenced by social factors, such as the groups to which the customer belongs and social
Each culture contains sub-cultures groups of people with share values. Sub-cultures can
include nationalities, religions, racial groups, or groups of people sharing the same
geographical location. Sometimes a sub-culture will create a substantial and distinctive
market segment of its own. For example, the youth culture or club culture has quite
distinct values and buying characteristics from the much older gray generation
Similarly, differences in social class can create customer groups. In fact, the official six social
classes in the UK are widely used to profile and predict different customer behavior. In the
UKs socioeconomic classification scheme, social class is not just determined by income. It is
measured as a combination of occupation, income, education, wealth and other variables

Supermarkets operate in an increasingly competitive environment. The rapid growth of

alternative retail formats has transformed not only the competitive structure of the industry,

but also the way in which consumers shop. The biggest challenge to the industry is coming
from none other than the world's largest retailer: Wal-Mart. Although a relatively new player,
Wal-Mart through its supercenter format has become the nation's largest grocer and is cited
by supermarket managers as their biggest concern in the coming years. Despite the dramatic
proliferation of supercenters, relatively little is known about the impact it has on the
performance of a traditional grocery store or how it changes consumer buying behavior. This
paper provides an empirical study of entry by a Wal-Mart supercenter into a local market.
Using a unique frequent shopper database from a supermarket, we study the impact of WalMart's entry on household purchase behavior. The database records purchases for over 10,000
households before and after Wal-Mart's entry.

Rationale of the study

How do you decide which particular product or service to purchase? It could be that your
Blu-Ray DVD player stops working and you now have to look for a new one; otherwise you
will not be able to play your Blu-Ray films So you have a problem or a new need. This is the
first step in the consumer buying process.
So we have a problem, our Blu-Ray player no longer works and we need to buy a new one.
What is the solution? Yes go out and purchase a new one, but which brand? Shall we buy the
same brand as the one that blew up? Or stay clear of that just in case the new player
experiences the same problems as the old one? Consumer often go on an information search
to help them choose their product. Sources of information include family, friends, retail staff
and in this digital age the internet. The internet contains information about products
(specifications), product reviews and online product forums. Information search may involve
a visit to a retail store to view products that the consumer is interested in purchasing. In our
example the consumer is on an information search to solve an immediate problem; they
intend to make a purchase at the end of the process. Consumers also acquire and store
information for future purchases. Firms will take such consumers into account when
designing their marketing strategies, in the hope that when such a consumer is ready to buy
they will use the "stored" information about their product into account and buy their products.
So what Blu-Ray DVD player do we purchase? Will it be a Sony, Toshiba or Samsung
player? Consumers often create a point system in their minds where products are scored
based on how many of their features appeal to them. So for one customer, brand may be more
important then price and for another customer product appearance may be important. In the
case of a DVD player consumers may be reviewing sound and picture quality. An evaluation
system is particularly useful when there is a large number of options. Marketing strategies
will try and influence this stage of the process by highlighting product features that they think
will appeal to consumers. Appealing product features will be emphasised on product
packaging, promotional materials and the manufacturer's websites.

After the evaluation process consumers will select the product they would like to purchase.
Once product may be a clear winner or the consumer may have to reprioritise their criteria to
help them select a product. The job of the seller is to ensure that the purchase process is
simple and effective. Even at this stage the purchaser could change their mind and select a
competitor product or cancel the purchase altogether. A long queue, impolite sales staff or
complicated sales process can all dissuade consumers from buying. Even if a consumer buys
on this occassion a negative buying experience could stop them buying in the future.
Therefore sellers need to make the buying process as simple and enjoyable as possible to
safeguard this and future purchases.
Post Purchase Behaviour
Ever have doubts about the product after you purchased it? Research shows that this feeling
is a common post purchase behaviour. Manufacturers of products clearly want purchasers to
feel proud of their purchase, so that they will purchase from them again and recommend them
to family and friends. It is therefore just as important for manufacturer's promotions to
reassure purchasers, as it is for them to attract new customers. Promotions should make
puchasers feel that they have bought their product from a strong and reputable organisation
with "good" products.

Objectives of the study

To understand some of the driving factors of consumerism
To understand the buying decision by individual
To study the attributes or sensory feelings of consumers towards Indian and western
To know whether and how some demographic variable of the respondents have influence in
buying brand or non-branded electronics products.
To know the role of family members, friends and peers in information search about the
To understand the lifestyle and consumption pattern of Indian consumers and what the
future might look like.

Company Profile
LG Electronics Inc. is a South Korean multinational electronics company headquartered in
Yeouido-dong, Seoul, and a member of the LG Group, employing 83,000 people working in
119 local subsidiaries worldwide. With 2013 global sales of USD 53.1 billion (KRW 58.14
trillion), the company operates its business through five divisions: Home Entertainment,
Mobile Communications, Home Appliance, Air Conditioning and Energy Solution, and
Vehicle Components. CEO of LG Electronics is Bon-joon Koo, who assumed the role of Vice
Chairman of LG Electronics on 1 October 2010. In 2011, LG Electronics was the world's
second-largest television manufacturer.
LG Electronics' products include televisions, home theater systems, refrigerators, washing
machines, computer monitors, wearable device, smart appliance and smartphones.
LG Electronics launched an OLED TV in 2013 and 65-inch and 77-inch sizes in 2014.LG
Electronics introduced its first Internet TV in 2007, originally branded as "NetCast
Entertainment Access" devices. They later renamed the 2011 Internet televisions to "LG
Smart TV" when more interactive television features were added, that enable the audience to
receive information from the Internet while at the same time watching conventional TV
In November 2013, a blogger discovered that some of LG's smart TVs silently collect
filenames from attached USB storage devices and program viewing data, and transmit the
information to LG's servers and LG-affiliated servers. Shortly after this blog entry went live,
LG disabled playback on its site of the video, explaining how its viewer analytics work, and
closed the Brightcove account the video was hosted on.By December 2013, the page itself
was removed from LG's website.
LG's remote uses Hillcrest Labs' Freespace technology to allow users to change channels
using gestures and Dragon NaturallySpeaking technology for voice recognition.
As of 2014, LG is using webOS with a ribbon interface with some of its smart TVs. LG
reported that in the first eight months after release, it had sold over 5 million webOS TVs.
Mobile devices
LG Electronics manufactures a wide range of smartphones and tablet devices.Other than the
G3, LG officially unveiled the curved smartphone, G Flex, on 27 October 2013. LG has
released it in South Korea in November 2013, and later announced releases in Europe, the
rest of Asia, and North America At Consumer Electronics Show in January 2014, LG
announced an U.S. release for the G2 across several major carriers. In 2015, LG has released
LG G4 globally in late May through early June.


In 2014, LG revealed three new additions to the G series of tablets, which each include LG's
Knock Code feature, allowing users to unlock devices with a series of taps. The tablets also
feature Q Pair which allows tablets to sync up with a smartphones, and for phone calls and
text messages passed on to the tablet in real time.
Smart watches
LG and Google announced the Android Wear-based smartwatch, the LG G Watch, that was in
June 2014. In August 2014, the LG G Watch R that has a round face (similar to the Moto 360)
was released. The LG Watch Urbane that LG's third Android Wear-based smart watch has
released in April 2015. This is the first device to support new features such as Wi-Fi, and new
parts of Android Wear's software interface, like the ability to draw emoji to friends.
Rolly keyboard
In 2015, LG announced the first Bluetooth keyboard that folds up along the four rows of keys
that can be tossed in a purse or pocket. The rolly keyboard is made of solid plastic. Two tiny
plastic arms fold out from the end of the keyboard to support a tablet or smartphone, and it
can toggle between two different Bluetooth-connected devices at a time. Battery life is an
expected three months on a single AAA battery.
Home appliances

LG manufactures and sells home appliance products such as refrigerators, washers and
dryers, vacuum cleaners, kitchen appliances, and residential air conditioners. In June 2014,
LG Electronics also announced the launch of its smart appliances with HomeChat
messaging service in South Korea. HomeChat employs.

Research Methodology
For this study items were adapted from Consumer Style Inventory (CSI) developed by
Sproles and Kendall (1986). CSI items were adopted from various available articles i.e.
Mitchell, Vincent-Wayne (2001); Wesley et al. (2006) and Canabal, M.E. (2002). All of these
were five point Likerttype scales in which respondents were asked to indicate their level of
agreement (1 = strongly disagree to 5 = strongly agree). Lastly, the questionnaire also
consisted questions to solicit demographic information of the respondents such as gender,
age, education, household income and marital status. Questionnaire was hand carried and
personally explained to respondents by the interviewers. Interviewers gave instructions for
completing the questionnaire and waited while respondent independently filled out
The research will be done at LG.
The research design is descriptive design.
Primary Data- The primary data was collected from the customer by administering a
structured questionnaire.
Secondary Data- Apart from primary data collected, the data collected from the web and
Likert scale is used in the questionnaire.
Customers of LG
100 Customers
A total number of 100 customers were selected randomly from LG.So the sampling type is
simple random sampling.
Diagrams, graphs, pie charts, ANOVA, Factor analysis etc will be used for data analysis.

Expected Contribution
To significantly contribute in the field of consumer behavior towards electronic products. The
study will provide with the recommendations for the companies to increase the sales and for
the consumers to make better decisions.

Future Research
The further research can be carried out for some other products like apparel, rural consumers
etc and at international level a comparison study can be conducted.

Chapter Scheme
Chapter 1


Chapter 2

Theoretical Background

Chapter 3

Review of literature

Chapter 4

Research Methodology

Chapter 5

Company Profile

Chapter 6

Data Analysis

Chapter 7


Chapter 8


Chapter 9


Chapter 10


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