Project Report on

CUSTOMER PREFERENCE TOWARDS VARIOUS

AIR-CONDITIONER BRANDS
Submitted in the partial fulfilment of the course work
of XI Economics
(2017-18)

Submitted to:- Submitted by:-

Mr. Giridhar Gopal Sahib Singh
(P.G.T. Economics) Roll.no.-36
(G.P.S) XI-Comm. /B

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 Declaration

I, Sahib Singh, do hereby declare that the project titled customer preference

towards various Air conditioner brands is an original piece of work prepared by me.

It is not copied one and has not been submitted to any board/university earlier. While

preparing this project, I have followed all the guidelines issued by CBSE in this

regard.

(Sahib Singh)

XI-comm. /B

Roll.No-36

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 Certificate

It is to certify that the project titled Customer preference towards various Air

Conditioner Brands prepared by Sahib Singh is an original piece of work and

submitted for the partial fulfilment of course work of XI-economics prescribed by

CBSE, the student has worked under my supervision and carried out the original

work.

(Giridhar Gopal)

(P.G.T. Economics)

(G.P.S)

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 Acknowledgement

Every project big or small is successful largely due to the effort of a number of

wonderful people who have always given their valuable advice or lent a helping

hand. I sincerely appreciate the inspiration; support and guidance of all those people

who have been instrumental in making this project a success.

I, Sahib Singh, the student of Gobindgarh Public School (MandiGobindgarh), am

extremely grateful to my teacher Mr. Giridhar Gopal for the confidence

bestowed in me and entrusting my project entitled Customer preference on various

Air Conditioner Brands.

At this juncture I feel deeply honoured in expressing my sincere thanks to Mr. Manoj

kumar (H.O.D Economics dept.) for making the resources available at right time and

providing valuable insights leading to the successful completion of my project.

Last but not the least I place a deep sense of gratitude to my family members and

my friends who have been constant source of inspiration during the preparation of

this project work.

(Sahib Singh)

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 CONTENTS

S. No. Contents Page No.

Acknowledgement

Declaration

Certificate

1 Introduction

2 Major Players of the Industry

3 Research Methodology

4 Analysis and Interpretation

5 Findings

6 Suggestions

7 Conclusion

8 Annexure

INTRODUCTION

Meaning of customer

A customer is an individual or business that purchases the goods or services

produced by a business.Attracting customers is the primary goal of most public-

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facing businesses, because it is the customer who creates demand for goods and
services. Businesses often compete through advertisements or lowered prices to
attract an ever-larger customer base.

Meaning of customer preference

Definition: Preferences refer to certain characteristics any consumer wants to have in

a good or service to make it preferable to him. This could be the level of happiness,
degree of satisfaction, utility from the produc etc.

Description: Preferences are the main factors that influence consumer demand.
Economists study preferences to perceive the demand for each commodity and the
future implications it may cause.

Factors affecting customer preference

Consumer preferences describe the reasons for the choices people make when
selecting products and services. Analyzing the factors that determine consumer
preferences helps businesses target their products towards specific consumer
groups, develop new products and identify why some products are more successful
than others.

Advertising

Advertising plays an important role in consumer preference, especially for non-

durable goods such as food or magazines. Advertising informs consumers of
available goods and services and also shapes their impressions of these products.
Advertising can also create demand; for example, a consumer may not have wanted
a new cell phone until he saw flashy new phones on TV.

Social Institutions

Social institution, including parents, friends, schools, religion and television shows
also influence consumers' preferences. For example, kids might want to have the
same toys their schoolmates have, while young adults may purchase the same
products their parents used to buy.

Cost

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Consumers usually choose to purchase more of a good if the price falls. For
example, a sale or reduced prices may increase consumption of a good. On the
other hand, an increase in price may cause reduced consumption, especially if the
good has available substitutes.

Consumer Income

Consumers often desire more expensive goods and services when their income
increases. If they suffer a decrease in income, they are more likely to choose less
expensive goods and services. For example, a business selling luxury goods, such
as jewellery, will probably be more successful in a high-income areathan a low-
income area.

Available Substitutes

If a product has several substitutes -- alternative products that consumers may

choose instead a particular brand of product -- consumers will be more sensitive to
changes in price. However, if consumers do not perceive similar products to be
effective substitutes -- for example, consumers who do not think Coke and Pepsi are
equally delicious -- they will be less likely to switch to a substitute based on price.
This concept is called the price elasticity of demand.

Customers buying behavior is enormous, and highlights the importance of the

customer at the center of the marketer's universe. Each customer is unique with
different needs and wants and buying choices and habits are influenced by habit,
and choice that are in turn tempered by psychological and social drivers that affect
purchase decision processes. It is a complex multidimensional variable. Customer
buying behavior is critical for influencing not only product purchase decisions but
also important marketing decisions for commercial firms, nonprofit organizations, and
regulatory agencies. Applications of customer buying behavior decisions lie on
marketing strategies, regulatory policies, social marketing, and informed individual.
Buying Behavior is the decision processes and acts of people involved in buying and
using products. Customer buying behavior is the sum total of a consumer's attitudes,
preferences, intentions and decisions regarding the consumer's behavior in the
marketplace when purchasing a product or service. The study of customer behavior

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draws upon social science disciplines of anthropology, psychology, sociology and
economics.

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 MAJOR PLAYERS OF THE INDUSTRY

Voltas

The Indian AC major Voltas is the most favourite AC brand of Indian people. It is
offered by an Indian conglomerate the Tata Group. The product is manufactured by
Voltas Limited, a subsidiary of the Tata Group, headquartered in Mumbai,
Maharashtra. The Voltas ACs are famous for their performance and high durability.
Voltas All Weather Smart ACs are becoming increasingly popular day by day. Voltas
is popular in India as well as abroad alike. The price range of Voltas is Rs. 25,000
Rs. 55,000. Some of the most popular Voltas AC models are mentioned below:

Voltas All Weather AC

Voltas Jade- 5 Star (Y Series)
Voltas Zenith- 5 Star (Ya Series)
Voltas Classic- 5 Star (Yu Series)
Voltas Magna- 5 Star (Y Series)
Samsung

This South Korean private conglomerate is spreading its wings in India further and
further everyday. The air conditioners from Samsung are amongst the most sought
after and most popular in India. Samsung ACs are famous for their features and the
level of comfort they offer. The prices range of Samsung is Rs. 20,000 Rs. 70,000.
Some of the most famous Samsung AC models are mentioned below:

Triangle Inverter AC
AR18JV5DAWKNNA 1.5 TR
AR18JC5HATPNNA
AR18JV5HATQNNA

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Daikin

Daikin is a Japanese major operating for almost a century now. This speaks volumes
of Daikin's success in the world market. The brands popularity has increased
manifold ever since it started operating in India. The brand owes its popularity to its
high-quality products and affordable rates. The prices range of Daikin ACs is Rs.
18,000 Rs. 50,000. Some of the widely sold AC models from Daikin are mentioned
below:

FTXR Series
FTXG Series
FTXR Series
DTKM Series
ATKM Series
LG

Another South Korean brand that enjoys great command in Indian consumer
appliances market is LG. LG's air conditioners are appreciated for quality. Apart from
that, great service and performance, affordable price and smart cooling are what LG
boasts of. The price range of LG air conditioners varies between Rs. 18,000 and
78,000. Some of the most popular AC models from LG are mentioned below:

BSA18IMA
BS-Q186C8A4
BSA12IMA
BS-Q126B8R8

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Whirlpool

Whirlpool is a multinational manufacturer of home appliances based in Michigan,

United States. Whirlpool entered India in 1987 and has grown to be one of the most
favourite brands as far as home appliances are concerned. Whirlpool air conditioners
rely on the turbo cooling technology to deliver high performance. The price range of
Whirlpool ACs is Rs. 32,000 Rs. 55,000. The most popular Whirlpool AC models
are mentioned below:

FANTASIA INV (1.5 T)

FANTASIA INV (1 T)
3D COOL DLX III (2 T) 3 Star
MAGICOOL DLX III (1.5 T) 3 Star
Videocon

Videocon is an Indian multinational major manufacturer of consumer electronics and

a household name in India. It was founded in 1979 and is headquartered in Mumbai,
Maharashtra. Videocon not only makes excellent air conditioners but also is rated
amongst the best in the industry in terms of refrigerators, TVs, microwave ovens and
so on. The prices of Videocon ACs start from Rs. 20,000 and go till Rs. 68,000.
Some of the best Videocon AC models are mentioned below:

VSQ55.DT3-MUA
VSA55.RW1-MAA
VSA55.WW1-MAA
VSN55.RV1-MDA

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Blue Star

Founded in 1943, Blue Star is one of the oldest consumer electronics companies
based in India. The company started off with reconditioning refrigerators and air
conditioners. The company feels proud of having catered to the cooling needs of a
large number of residential, commercial and corporate customers by providing best
air-conditioning services. The price range of Blue Star ACs begins from Rs. 22,000
and ends at Rs. 1,00,000. Some of the most popular Blue Star AC models are
mentioned below:

CNHW09CAF 0.75 Ton Split AC

5HW12SC 1 Ton Split AC

Hitachi

Hitachi is a famous consumer electronics conglomerate from Japan founded in 1920

and based in Tokyo, Japan. It offers some of the most energy efficient air
conditioners. Quality air conditioners are something that Hitachi thrives on. Its ACs
have features like anti-bacterial koukin filter and auto climate technology. The price
range of Hitachi ACs is Rs. 25,000 Rs. 70,000. Some of the widely sold Hitachi
models are mentioned below:

Zunoh 300f
Zunoh 200f
Kaze Neo
Kashikoi 400i
Kashikoi 200i
Summer TM

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Haier

Haier from China is rated amongst the leading consumer electronic brands in India. It
produces, sells and markets a wide range of consumer goods such as air
conditioners, refrigerators, washing machines and the likes. Haier ACs are lauded for
their excellent cooling, longevity and superior performance. Moreover, low energy
consumption and reliability are the features that set Haier apart from the rest. Haier
ACs prices range is Rs. 18,000 Rs. 45,000. Some of the most trusted Haier AC
models are mentioned below:

HSU-18CKCS(R2D)
HSU-13CNFG5N
HSU-24CXAS3N-BWNA
O General

Bureau of Energy Efficiency has honoured O General with five stars for its energy
saving features. It commands a great deal of trust in all quarters of Indian consumer
electronics. It is a joint venture of Japan's Fujitsu General and Dubai's ETA-ASCON
STAR formed in 2000. It ensures excellent cooling service to its users on a
consistent basis. O General ACs price range is Rs. 25,000 Rs. 60,000. Some of
the most popular O General AC models are mentioned below:

ASGA09BMTA - 0.75 Ton

ASGA12BMTA - 1.0 Ton
ASGA18FMTA - 1.5 Ton
ASGA24FMTA - 2 Ton
ASGA18FTTA - 1.5 Ton

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 RESEARCH METHODOLOGY

Objectives of the study

The research study tends to follow some specific objectives

The objectives of this study are:-

To know the personal views of people regarding choices among various

branded Air Conditioners.

To study which branded Air Conditioner is mostly preferred by people as per

their choices.
Comparison between various branded Air Conditioners
Find out the factors influencing peoples choice at the time of purchasing Air

Conditioner.

Type of research-exploratory research

Instrument used-questionnaire

Sample size- 40

Type of sampling- convenience sampling

LIMITATIONS

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 While surveying I encountered some problems like:-

A survey should involve a larger sample size otherwise the finding of

the survey cannot be generalised.

In some of the retail showrooms it was not allowed to get the

questionnaires filled.
Many of the respondents were not ready to get the questionnaires

filled.
Some people were in a hurry while filling the questionnaires due to

which there was a lack of active participation of people.

Another problem which I faced was that people were hesitating to give

information about their views freely.

ANALYSIS AND INTERPRETATION

Q-1.Which sports Air conditioner brand do you prefer?

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 Options Numbers Percentage
LG 8 20
General 6 15
Voltas 9 22.5
Whirlpool 9 22.5
Any other 8 20
total 40 100%

Interpretation- It is concluded that most of the people prefer Voltas or Whilpool

Air Conditioner. 20 percent of the people like LG Air Conditioner too. However

General are least prefer. 20 percent of people are the ones who like any other Air

Conditioner.

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 Q-2.Where do you buy Air Condition from?

Options People Percentage

Internet 5 12.5
Shops 23 57.5
Both 12 30
total 40 100

Interpretation-It is concluded that most of the people prefer buying Air

Conditioner form shops. Some percentage of people buy Air Conditioner from

both shops and the internet. However very small percentage of 12.5 percent

prefers buying Air Conditioner online.

Q-3.How often do you buy Air Conditioner?

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 Options People Percentage
Once in a 5 Years 21 52.5
Once in 3 Years 14 35
Once in a Year 2 5
No at all 3 7.5
Total 40 100

Interpretation-we can conclude that most of the people buy Air Conditioner once

in 5 Years, followed by people buying Air Conditioners Once in a 3 Years. 7.5

percent people buy Air Conditioners once in a year. And just 5 percent people

dont buy Air Conditioners at all.

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 Q-4.If prices of your preferred brand increase will you purchase again?

Options People Preference

Yes 34 85
No 6 15
Total 40 100

Interpretation- it is concluded that almost 85 percent of population will buy Air

Conditioner even after their prices increase. However 15 percent of people will

stop buying air Conditioner in this case.

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 Q-5.Which factor influences you to go for a particular brand?

Options People Percentage

Quality 9 22.5
Durability 14 35
Price 6 15
Variety 11 27.5
Any other 0 0
Total 40 100

Interpretation-it is concluded that the factor of durability affects the customer

preference the most, followed by variety, quality, price.

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 Q-6.Do you normally switch over the brand?

Options People Percentage

Yes 27 67.5
No 13 32.5
Total 40 100

Interpretation- It is concluded that 67.5 percent people normally switch over

different brands. However 32.5 percent people do not switch over the brands.

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 Q-7.What kind of promotional tool do you prefer?

Options People Percentage

Lucky coupon 4 10
Free gift 10 25
Discount 20 50
Buy one get one free 6 15
Total 40 100

Interpretation- It is concluded that discount is the most preferred promotional

tool by the people, followed by free gifts, buy one get one free offer, and lucky

coupon.

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 Q-8.Would you buy preferred brand at low cost with negligible quality?

Options People Percentage

Yes 11 27.5
No 27 67.5
Total 40 100

Interpretation-most of the people wont prefer buying preferred brand at low

quality standards. However just 27.5 percent of the people would buy their

preferred brand even at negligible quality standards.

Q-9.what is the least you would spend on an Air Conditioner (in rupees)?

Options People Percentage

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 More than 40000 13 12.5
30000-40000 5 32.5
25000-30000 19 47.5
More than 50000 3 7.5
Total 40 100

Interpretation- It is concluded that most of the people spend more 25000-3000

on their Air Conditioners, followed by 32.5 percent people spending money

between 30000-40000. Just 12.5 percent people spend less than 40000 rupees

on their Air Conditioner. However a marginal population of 7.5 percent people

spend more than 50000 rupees on their Conditioner.

Q-10.What is your Preference for Air Conditioner size?

Options People Percentage

Split 30 75
Window 10 25

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 Total 40 100

Interpretation-It is concluded that most of the people contacted have their

preference for Split Air Conditioner and 25% people prefer Window A/c.

Q-11.Does advertisement has any effect on your purchase?

Options People Percentage

Yes 11 27.5
No 18 45
Sometimes 11 27.5
total 40 100

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 Interpretation- it is concluded that most of the people have no effect of

advertisement on their choice. However 27.5 percent of people sometimes

change their choices according to the advertisement. 27.5 percent of people

agree that advertisement has an effect on their choices.

Q-12.Would you buy Air Conditioner during a Festival Season?

Options People Percentage

Yes 31 77.5
No 9 22.5
Total 40 100

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 Interpretation- it is concluded that more than 77 percent people would buy Air

Conditioner during a Festival Seasons. However just 22.5 percent people wont

buy Air Conditioner during a Festival Seasons.

Q-13.Do you daily use Air Conditioner at Home or office also?

Options People Percentage

Yes 21 52.5
No 7 17.5
Sometimes 12 30
Total 40 100

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 Interpretation - it is concluded that most of the people use Air Conditioner daily.

Just 17.5 percent people dont use Air Conditioner Daily. However 12 percent

sometimes prefer to use sometimes.

Q-14.Do you prefer brand marking?

Options People Percentage

Yes 35 87.5
No 5 12.5
Total 40 100

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 Interpretation- it is concluded that more than 87 percent people prefer brand

marking. However 12.5 percent of people dont prefer brand marking.

FINDINGS

It is concluded that most of the people prefer Voltas or Whilpool Air

Conditioner. 20 percent of the people like LG Air Conditioner too. However
General are least prefer. 20 percent of people are the ones who like any other
Air Conditioner.

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 It is concluded that most of the people prefer buying Air Conditioner form
shops. Some percentage of people buy Air Conditioner form both shops and
the internet. However very small percentage of 12.5 percent prefers buying
Air Conditioner online.

we can conclude that most of the people buy Air Conditioner once in 5 Years,
followed by people buying Air Conditioners Once in a 3 Years. 7.5 percent
people buy Air Conditioners once in a year. And just 5 percent people dont
buy Air Conditioners at all.

it is concluded that almost 85 percent of population will buy Air Conditioner

even after their prices increase. However 15 percent of people will stop
buying air Conditioner in this case.

it is concluded that the factor of durability affects the customer preference the
most, followed by variety, quality, price.

It is concluded that 67.5 percent people normally switch over different brands.
However 32.5 percent people do not switch over the brands.

It is concluded that discount is the most preferred promotional tool by the

people, followed by free gifts , buy one get one free offer , and lucky coupon.

Most of the people wont prefer buying preferred brand at low quality
standards. However just 27.5 percent of the people would buy their preferred
brand even at negligible quality standards.

It is concluded that most of the people spend more 25000-3000 on their Air
Conditioners, followed by 32.5 percent people spending money between
30000-40000. Just 12.5 percent people spend less than 40000 rupees on

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 their Air Conditioner. However a marginal population of 7.5 percent people
spend more than 50000 rupees on their Conditioner.

It is concluded that most of the people contacted have their preference for
Split Air Conditioner and 25% people prefer Window A/c.

it is concluded that most of the people have no effect of advertisement on

their choice. However 27.5 percent of people sometimes change their choices
according to the advertisement. 27.5 percent of people agree that
advertisement has an effect on their choices.

it is concluded that more than 77 percent people would buy Air Conditioner
during a Festival Seasons. However just 22.5 percent people wont buy Air
Conditioner during a Festival Seasons.

It is concluded that most of the people use Air Conditioner daily. Just 17.5
percent people dont use Air Conditioner Daily. However 12 percent
sometimes prefer to use sometimes.

It is concluded that more than 87 percent people prefer brand marking.

However 12.5 percent of people dont prefer brand marking.

SUGGESTIONS

After accessing the whole project, what came out in picture is as follows:-

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 After going through the market research it is found that branded Air Conditioner

are increasing day by day in India. That sounds good for international as well as

domestic market. The Air Conditioner manufacturing companies should focus on

increasing the product quality to grasp more customers. New offers should be

introduced to establish the company name. More focus should be paid on

advertisement of products.

CONCLUSION

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 It was a wonderful and learning experience for me to work on this project. This

project took me through the various phases of project development and helped

me in understanding how to make questionnaires deeply. The joy of working and

the thrill of tackling the various challenges and problems gave me a feel of

economists.

It was through this project that I came to know how to design a questionnaire. I

enjoyed each and every bit of work I had done in this project.

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