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CHAPTER-I

INTRODUCTION

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CHAPTER-1

INTRODUCTION

Great companies start with great ideas and Amway is no exception. Amway, an
abbreviation for "American Way", was coined in 1959 by founders, Jay Van Andel and Richard
DeVos. The business was built on the simple integrity of helping people lead better lives.

The vision of the Amway India Enterprises franchise is “Inspiring people to live better lives”.
With the mission to provide the best business opportunity, the direct sales business delivers
exceptional quality products in the following areas:

 Nutrition and wellness


 Personal care
 Home care
 Home tech and insurance.

The Amway India Enterprises franchise‘s values have enabled it to guide its actions and help
achieve everything without compromise or harm.

Recording a huge sales turnover year after year, Amway India Enterprises franchise is also the
founder member of the Indian Direct Selling Association (IDSA). The multilevel marketing
business was awarded the `Rising Business Star of the Millennium' award by the Karnataka
Welfare Association in October 2000.

All the 75 products in four categories sold in India match Amway's global quality standards.
With a tamper-proof seal and a 100% Money Back Guarantee, all products are environmentally
friendly and not tested on animals. Through its presence in India, the multilevel marketing
franchise enhances human resource development through entrepreneurial opportunity and self-
employment. Amway also encourages the return of its used product bottles for re-cycling, thus
preventing their misuse.

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CUSTOMER SATISFACTION

The definition of customer satisfaction has been widely debated as organizations


increasingly attempt to measure it. Customer satisfaction can be experienced in a variety of
situations and connected to both goods and services. It is a highly personal assessment that is
greatly affected by customer expectations. Satisfaction also is based on the customer’s
experience of both contacts with the organization and personal outcomes. Some researchers
define a satisfied customer within the private sector as “one who receives significant added
value” to his/her bottom line.

Customer satisfaction differs depending on the situation and the product or service.
A customer may be satisfied with a product or service, an experience, a purchase decision, a
salesperson, store, service provider, or an attribute or any of these. Customer satisfaction is a
highly personal assessment that is greatly influenced by individual expectations. Some
definitions are based on the observation that customer satisfaction or dissatisfaction results from
either the confirmation or disconfirmation of individual expectations regarding a service or
product. To avoid difficulties stemming from the kaleidoscope of customer expectations and
differences, some experts urge companies to “concentrate on a goal that’s more closely linked to
customer equity.”

OBJECTIVES

The study encompassed the following objectives

 To study the consumer awareness and preference towards Amway products


 To analyse the level of satisfaction of consumer towards Amway products

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STATEMENT OF PROBLEM:

Consumer satisfaction with regard to Amway products depends upon user expectation
and various factors like price, quality and brand image. Customer satisfaction differs from one
consumer to other based on various factors. Attitudes and opinions of the consumers include
product interest, brand image. The necessity that has arisen for the study has been to identify the
level of consumer satisfaction towards Amway products and to know about the causes for
shifting their preference from Amway to other brands because of high price and other reasons.
Hence, the current study on customer satisfaction towards Amway has been conducted.

SCOPE OF THE STUDY

The study has focused on the consumer satisfaction in relation to Amway products. The
study has analyzed the source of awareness with regard to Amway products. It identified the
factors of preference towards Amway products. The study has also revealed the level of
preference towards Amway products.

LIMITATIONS

 Due to time constraint the study was conducted only in Coimbatore city.

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RESEARCH METHODOLOGY

PRIMARY DATA

The primary data is the source of collection of information. To analyze the consumer
satisfaction towards Amway products,120 respondents were selected from within the Coimbatore
city. The respondents included students, business people, employees, and home makers.

In order to collect the relevant data from the respondents a questionnaire consisting of 29
questions was distributed to know the personal opinion of the respondents towards Amway
products.

SECONDARY DATA

 Journals
 Websites
 News dailies

AREA OF THE STUDY

The study was undertaken in Coimbatore city.

PERIOD OF THE STUDY

The study has spanned a period of 3 months from the 18th of June,2012 to 18th September
2012.

STATISTICAL TOOLS USED

 Percentage analysis
 Chi-square test

SAMPLE SIZE

120 Respondents in Coimbatore City.

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CHAPTER-II

REVIEW OF LITERATURE

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CHAPTER-2

REVIEW OF LITERATURE

 R.Furger (1991) conducted a study on consumer satisfaction towards light weight laptops and it
was inferred that the various features like touch screen, slim and sleek, advanced power
management provided in the laptop highly influences the satisfaction of the consumer.

 P.Rajendran (1996) conducted a study on “consumer preference for shampoo”. The objective of
the study was to analysis the impact of advertisement of different brands of shampoo and
consumer behaviour towards buying. The data was collected in Erode district to the sample size
of 100 respondents by using convenient sampling method. It was found from the study that
majority preferred quantity, which ranged from 9ml to 170ml packets, and peace was not an
important factor for their purchase

 Prof. Bhavin Pandya (2000) conducted a study on “the report on shampoo and relevant facts”
respondents were asked about the brand of the shampoo which they use. It really astonishing that
half of the respondents did not respond to the question or were reluctant to say anything about
the usage of their shampoo brands. The HUL brands rule the shampoo category, CLINIC PLUS
is used by 15.62% of the respondents followed by SUNSILK is used by 9.38%, Clinic ALL
CLEAR is used by 4.69%. From the respondents obtained 46.875, HUL brand of shampoo is
used by 31.25%, P&G brands of shampoo is used by 8.59%. HEAD&SHOULDER became very
popular and acceptable, while PATENT and REJOICE are gaining the ground Cavin’s kare
brand have 4.96% of brand usage. Now CHICK shampoo heading the ground.

 N.Kothai Nayaki (2001) conducted a study on “Brand preference of toilet soap users with special
reference to Gobichettipalayam taluk” has found that a large number of brands of toilet soaps
available in the market which defer I price , quality, quantity etc due to the favourable features of
brands, the consumers have preferred to purchase their loyal brands only. The study has
concluded that best quality soaps at reasonable price, majority of the respondents preferred
HAMAM as their brand only

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 Sangeetha.T (2002) undertook a study on “ brand Equity of hair care products and distribution of
3 products segments in the city of Coimbatore for Cavin Care limited” pertaining to the
residents, dealers, wholesalers and departmental stores with the sample size of 150. It was found
that consumers are aware of hair care products of cavin care and most of them belong to the age
group of 15 to 25 years.

 Ramya Devi (2002) conducted a study on “Developing marketing strategy for attraction and
retention of consumers with special reference to Johnson and Johnson baby powder”. The study
form of the sample size of 200 respondents in Chennai city found that the awareness of Johnson
and Johnson baby powder was 170% and retention of the consumers was 150%.

 Dr.Vyajayanthi, Dr.G.Chand kulkani, Dr. Anil Abraham, and Dr.S.A Kolhapure(2006) made a
study on “Anti dandruff activity and safety of polyherbal hair oil” an open pillof in Bangalore
city. Twenty five patients of both gender, from the age group of 20_45 years, who were suffering
from mild to moderate dandruff they were enrolled in this study and advise to apply of 10ml of
anti dandruff hair oil twice daily for a period of two weeks this study concludes that the anti
dandruff hair oil was clinically effective and safe

 Dr.A Vinayagamoorthy (2007) made “ An Empirical study on shampoo consumption” aimed at


the studying the consumer behaviour with regard to purchase, consumption, and post purchase
evaluation of shampoo with sample size of 100 respondents in Chinnakammiyampet Village in
Vellore district. The objective of the study was to find out awareness among the consumers about
the various brands that majority respondents prefer a shampoo for fragrance, quality, Colour, and
advertisement. Most of the respondents have used the shampoo for both head bath and full body
bath.

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 Dr.R.Vijaya Kumar, N.Raman and Prof P.V Prabha (2007) undertook a study on “satisfaction
derived by users of clinic plus shampoo in Coimbatore city “200 users of clinic plus shampoo
were selected as sample respondents on the basis of convenient sampling method. The researches
with the primary objective of measuring the extent of variation in the level of satisfaction derived
by the users of clinic plus shampoo. It was found that out of 200 respondents 26% fall under
“Less Satisfied” category, 42% belong to “Just Satisfied” category and remaining 32% have been
“Highly Satisfied “with the product

 Ranjith P.V., Ela Goyal (2011) conducted a case study on consumer perception for laptops it is
recommended that the manufacturers have to concentrate on adding features to the existing
products. The companies have to concentrate on the important parameters like education and
browsing.

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REFERENCES

1. Dr.A.Vijayakumar, N.Raman and Prof.P.V.Prabha(2009) “A study on satisfaction


derived by user of clinic plus shampoo in Coimbatore city. Indian journal of marketing
Vol No.28, November 2009, Page no.14-20
2. Ramyadevi (2010) developing marketing strategy for attraction and retention of
customers. MBA project submitted to PSGR krishnammal college.
3. Bhavin pandya(2009) “ A report on shampoo and its relevant facts” SIBACA
management review. Vol No. 1, Issue-2, April, Page no. 33.
4. P. RAJENDRAN(2008) “ A study on consumer preference for shampoo”
www.mouthshut.com.
5. Sangeetha.T(2002) “ A study on brand equity of hair care products” www.scribd.com.
6. Dr. Vyjayanthi, Dr. G. Chandran, kulkarni, Dr. Anil Abraham and Dr. A.
Kolhapuri (2010)“A study on anti dandruff activity and safety of poly herbal oil” Indian
journal of product and management.Vol No.3,Page No.26.
7. N. Kodhai nayaki(2009) “ A study on customer satisfaction of soap users”. MBA
Project submitted to PSGR krishnammal college.
8. Dr. Vinayagamoorthy(2008) “ An empirical study on customer satisfaction of shampoo
consumption” www.reviews42.com.
9. R.Furger(2001) “ A study on consumer satisfaction towards light weight laptops”
Indian Journal of Marketing, Vol No.3 Issue no.4 pg.no.9
10. Ranjith P.V.,Ela Goyal(2011) “A case study on consumer perception for laptops”
www.asianjournal.com

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CHAPTER-III
COMPANY PROFILE
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CHAPTER-3

COMPANY PROFILE

HISTORY OF AMWAY

Amway is the largest direct selling company and manufacturer in the world that uses
network marketing to sell a variety of products, primarily in the health, beauty, and homecare
markets. Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in Ada,
Michigan, the company and family of companies under Alticor reported sales growth of 2.3%,
reachingUS$8.4 billion for the year ending December 31, 2009.Its product lines include home
care products, personal care products, jewellery, electronics, Nutrilite dietary
supplements, water purifiers, air purifiers, insurance and cosmetics .

Amway conducts business through a number of affiliated companies in more than ninety
countries and territories around the world. It is ranked by Forbes as one of the largest private
companies in the United States and one of the largest retailers in the world.

In 1959, the American Way Association was formed. This would be the chance to grow
and set the direction of a new entity. Rich and Jay immediately set out to find an initial product
to add to the line. They purchased the rights to Frisk, a household cleaner (which was later
renamed Liquid Organic Concentrate or L.O.C.).

In 1960, the American Way Association, now Amway, bought a controlling share in the
manufacturing facility in Michigan where LOC was made. The Amway Sales handled product
and distribution, Amway Services did business related tasks (like insurance for distributors) and
Amway manufacturing, which produced LOC. By 1964, the three arms of Amway were all
merged into a single entity - Amway Corporation. The idea was by handling the manufacturing
and distribution of a product line, and then allowing a network of IBOs. This seemed like the
only way to offer what Jay and Rich originally envisioned - a solid opportunity where anyone
with motivation could excel, regardless of their background and status. This is a main part of
Amway's business philosophy.

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“Not just products and not just sales, but a way to a better life”.

Amway promotes individual entrepreneurship through its innovative direct selling


approach of world class consumer products. Amway India is the country’s leading direct selling
FMCG-company which manufactures and sells world-class c o n s u m e r p r o d u c t s .

VISION

Inspiring people to live better lives.

MISSION

To provide the best business opportunity. To deliver exceptional quality products to


urban and semi urban homes in the areas of nutrition and wellness, cosmetics, personal care,
home care, home tech and insurance.

GOAL OF AMWAY

 The development of new business opportunities


 To increase the company’s role in relation to social responsibility
 To provide excellent customer service

THE EARLY YEARS

Amway quickly outgrew its original facilities in the basements of Rich DeVos's and Jay
Van Andel's homes. In its first full year of business, Amway's sales were more than half a
million dollars.

THE NEXT GENERATION

As carefully planned by Rich and Jay, the second generation Van Andel and DeVos
families took the helm during the ' 90s. The Policy Board was formed and Steve Van Andel and
Dick DeVos succeeded their fathers as Chairman and President.

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In 2000, Amway prepared for a new century and a new exciting era. Almost 50 years
after Amway began, the DeVos and Van Andel families created a new structure to meet the
challenges of this new century. A parent company, Alticor, was established with subsidiaries
Amway, Quixtar and Access Business Group—the latter to consolidate manufacturing and
distribution for the enterprise. At the helm of Alticor are Steve Van Andel (Chairman) and Doug
DeVos (President), jointly holding the Office of the Chief Executive. Today each area of the
business, including Amway, has the freedom to build on its strengths.

COUNTRY’S NO 1 DIRECT SELLING COMPANY

 Amway India is the country’s leading direct selling FMCG-company which manufactures
and sells world-class consumer products. All its products are covered by a 100 per cent
Money Back Guarantee. If not completely satisfied with the product, the consumer can
return it for a 100% refund.
 There is no joining fee for the Amway business – any adult can enroll as an Amway
distributor, without any payment.

MANUFACTURING

 Almost all Amway India products are manufactured in the country through seven third
party contract manufacturers. To bring the identified contract manufacturers’ production
facilities and skills to international standard, Amway has invested in transfer of state-of-
the-art, world-class technology to the contract manufacturers free of cost.

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PRODUCTS

 At present, Amway India offers over 130 products in five categories. They are Personal
care category, Home Care category, Nutrition & Wellness category, Cosmetics and Great
Value Products.

 With the exception of Cosmetics range (Artistry*) and some products in Nutrition and
Wellness category, all Amway India products and bottles are manufactured in India.

NATIONAL PRESENCE

 In thirteen years of commercial operation, Amway India has established a nation-wide


presence of over 135 offices and 55 city warehouses and four regional mother
warehouses. The distribution and home delivery network set up with the support of
independent logistics partners is spread across over 5500 locations.

Amway continues to be a leading company in the direct selling industry. Its fundamental
principles—freedom, family, hope and reward—hold as true today as they did in the very
beginning.

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CORPORATE CREDENTIALS

 Amway India is a wholly owned subsidiary of US $ 10.9 billion Amway Corporation,


Ada, Michigan, USA. Amway Corporation is one of the largest Direct Selling companies
in the world. It has a presence in 80 countries & territories.

 Established in 1995, Amway India commenced commercial operations in May 1998 and
has emerged as the largest Direct Selling FMCG Company. The Company has its
headquarters in the National Capital Region of India - New Delhi.

 Amway has invested in excess of Rs. 200 crore in India of this; Rs. 22 crore is in the
form of direct foreign investment.

 Amway India has 500 full time employees and has generated indirect employment
for 2000 persons at all the contract manufacturer locations.

 The Company has provided income-generating opportunities to over 550,000 active


independent Amway Business Owners.

 Amway India provides free and unlimited training to all its distributors to help them grow
their business. Amway India conducts over 20,000 training sessions during an average
12-month period with an attendance of over 1.5 million Amway Business Owners and
prospects.

 Amway India recorded a sales turnover of over Rs. 2130 crore in 2011, up from Rs.1790
crores in 2010.

 Amway India is a member of the Confederation of Indian Industries (CII) and Federation
of Indian Chambers of Commerce (FICCI).

 The World Blind Union presented an award and citation to Amway India in 2003, for its
peerless work for the blind child.

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PRODUCT PROFILE

AMWAY PRODUCTS:

Amway offers a range of exclusive, competitive brands that meet proven customer needs
around the world. From nutritional supplements to water treatment, cosmetics to cleaning
products, these brands are the solid foundation for a successful, independent Retail business.

NUTRILITE®

Nutrilite® is the world’s leading brand of vitamin, mineral, and dietary supplements,
grown harvested, and processed on its own certified organic farms.

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ARTISTRY®

Artistry® is one of the world’s top five largest-selling prestige brands of facial skin care
and colour cosmetics.

DYNAMITE®

Dynamite's range of male grooming products, formulated internationally is designed to


deliver the ultimate grooming experience.

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GLISTER®

Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent that offers


seven benefits.

PERSONA®

Persona Premium 3 in 1 Soap is a complete soap for the entire family promises refreshing
confidence.

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SATINIQUE®

Satinique Advanced Range with unique Ceramide Infusion System uses nature's own
renewing technology to rejuvenate, strengthen and protect your hair.

SA8®

SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans and softens.

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G&H®

G&H Range enriched with the goodness of Glycerine and Honey, deeply nourishes and hydrates
the skin for a healthy glow.

LOC®

LOC High Suds is a multipurpose household liquid cleaner.

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DISH DROPS®

Dish Drops is a concentrated hand dishwashing liquid with a powerful "Triadic Detergency
System".

ATTITUDE®

Attitude™ Skin care range of products are fortified with Triple Advanced Complex. This
Complex contains :*OSMOGELINE™-red sea weed extract, Vitamin A,C,E & Natural Fruit &
Floral extracts like Aloe Vera, Avocado & Grape seed extracts. The new improved attitude skin
care range of products help to clean, replenish, moisturize & revitalize your skin making it soft
supple & lustrous.

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GREAT VALUE PRODUCTS®

Great Value Product Range offers you Great Quality, Great Performance, Great Price and a
Money Back Guarantee!

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CHAPTER-IV

ANALYSIS & INTERPRETATION

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PERCENTAGE ANALYSIS

The descriptive analysis is mainly employed to find the distribution of


different categories of respondents. As the values are expressed in percentage it
facilitates comparison and standardization. This technique is employed for all the
questions given in the questionnaire. Suitable diagrams where also constructed for
easy understanding.

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GENDER

Gender has always played a significant role in any decision process. Table
No.1 reveals the classification of sample size on the basis of gender.

TABLE NO.1 GENDER WISE CLASSIFICATION OF THE


RESPONDENTS

No of
Percent
Respondents
Male 35 29.17

Female 85 70.83

Total 120 100.00

GENDER
100 85
80
60
35
40
20
0
MALE FEMALE

INTERPRETATION

Table No.1 has inferred that 70.83% of the respondents are females and
29.17% of the respondents are males.

RESULT

It is concluded that majority 70.83% of the respondents are female.

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AGE:

Age is a factor that plays an important role in analyzing the satisfaction


level. Table No.2 explains the classification of the respondents in terms of their
ages.

TABLE NO.2 AGE WISE CLASSIFICATION OF THE RESPONDENTS

No of Respondents Percent

15-20 yrs 53 44.17

20-25 yrs 28 23.33

25-30 yrs 17 14.17

more than
22 18.33
30 yrs

Total 120 100.00

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AGE OF THE RESPONDENTS
60

50

40

30
53
20
28
10 22
17

0
15-20 YEARS 20-25 YEARS 25-30 YEARS MORE THAN 30

INTERPRETATION

Table No.2 explains that 44.17% of the respondents are between the age
group of15-20 years and 23.33% of the respondents belongs to the age group of
20-25 years. 18.33% and 14.17% of the respondents belongs to the age group of
more than 30 years and 25-30 years respectively.

RESULT

It is concluded that most 44.17% of the respondents belongs to the age group
of 15-20 years.

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MARITAL STATUS

Marital status of the respondents helps us to know about the usage of


products. Table No.3 reveals the marital status of the respondents.

TABLE NO.3 MARITAL STATUS-CLASSIFICATION OF THE


RESPONDENTS

No of
Percent
Respondents
Married 41 34.17
Unmarried 79 65.83
Total 120 100.00

MARITAL STATUS
80

60

40 79
41
20

0
MARRIED UNMARRIED

INTERPRETATION

Table No.3 reveals that 65.83% of the marital status is unmarried and
34.17% of the respondents are married.

RESULT

It is concluded that majority (65.83%) of the respondents are unmarried.

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EDUCATIONAL QUALIFICATION

Education can create more awareness about the products and their benefits.
Table No.4 shows the education level of the respondents.

TABLE NO.4 EDUCATION WISE CLASSIFICATION OF THE


RESPONDENTS

No of
Percent
Respondents

Higher secondary 17 14.17

UG 67 55.83

PG 26 21.67

Professional 10 8.33

Total 120 100.00

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EDUCATIONAL QUALIFICATION
80

70

60

50

40
67
30

20
26
10 17
10
0
HIGHER UG PG PROFESSIONAL
SECONDARY

INTERPRETATION

Table No.4 inferred that 5.83% of the respondents are pursuing their UG and
21.67% of the respondents were undergoing their PG. 14.17% of the Amway users
completed their higher secondary.8.33% of the Amway users are professionals.

RESULT

It is concluded that majority 55.83% of the respondents are under graduates

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OCCUPATION

Occupation can be a influencing factor in choosing Amway products. Table


No.4.5 explains the occupation of the respondents.

TABLE NO.4.5 OCCUPATION WISE CLASSIFICATION OF THE


RESPONDENTS

No of
Percent
Respondents

Student 67 55.83

Business 8 6.67

Employed 28 23.33

Homemaker 17 14.17

Total 120 100.00

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OCCUPATION

17

STUDENT
28
67 BUSINESS
EMPLOYED
8
HOMEMAKER

INTERPRETATION

Table No.5 has revealed that student respondents are the maximum which
consists of 55.83% and employee respondents are 23.33%. The response from the
homemakers is 14.17%. The least respondents belongs to the group of business
people consists of 6.67%

RESULT

It is concluded that majority (55.83%) of the respondents are students.

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MONTHLY INCOME:

The purchasing power of the respondents depends upon the earnings of the
respondents. Table No.6 reveals the monthly income of the respondents.

TABLE NO.6 MONTHLY INCOME-WISE CLASSIFICATION OF THE


RESPONDENTS

No of
Percent
Respondents
Less than
34 28.33
5000

5000-10000 26 21.67

10001-20000 32 26.67

more than
28 23.33
20000

Total 120 100.00

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MONTHLY INCOME
40

35

30

25

20
34 32
15
26 28
10

0
LESS THAN 5000 5000-10000 10001-20000 MORE THAN 20000

INTERPRETATION

Table No.6 revealed that 28.33% of the respondents were earning less than
5000 per month and 26.67% of the respondents earns between10001-20000 p.m.
the respondents who earns more than 20000 is 23.33%. 21.67% of the respondents
are earning 5000-10000 p.m.

RESULT

It is concluded that Most of the 28.33% of the respondents are earning less
than 5000 p.m.

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SIZE OF FAMILY:

Family size will vary from one family to another. Table No.4.7 shows the
family size of the respondents.

TABLE NO.7 FAMILY SIZE-CLASSIFICATION OF THE RESPONDENTS

No of
Percent
Respondents

1-3 members 33 27.50

4-5 members 73 60.83

5-6 members 8 6.67

more than 6
6 5.00
members

Total 120 100.00

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SIZE OF FAMILY

80 73

70
60
50
40
30
20
8 6
4.3
10
0
1-3 MEMBERS 4-5 MEMBERS 5-6 MEMBERS MORE THAN 6
MEMBERS

INTERPRETATION

Table No.7 has explained that 60.83% of the respondents have 4-5 members
in their family whereas 27.50% of the respondents have 1-3 members only and
6.67% of the respondents have 5-6 members and 5% of the respondents have more
than 6 members in the family.

RESULT

It is concluded that majority (60.83%) of the respondents have 4-5 members


in their family.

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RESIDENTIAL AREA:

Residential area of the respondents has greater influence in preferring the


products. Table No.8 explains the area wise classification of the respondents.

TABLE NO.8 RESIDENTIAL AREA WISE-CLASSIFICATION OF THE


RESPONDENTS

No of
Percent
Respondents
Rural 24 20.00
Urban 96 80.00
Total 120 100.00

RESIDENTIAL AREA
100%
80%
60% 24 96
40%
20%
0%
RURAL URBAN

INTERPRETATION

Table No.8 has explained that 80% of the respondents are residing in urban
area. 20% of the respondents residing in rural area.

RESULT

It is concluded that majority (80%) of the respondents are from urban area.

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CONSUMER RESPONSE IN RELATION TO THE AWARENESS OF THE
AMWAY PRODUCTS

The following table helps us to analyze the awareness level of the consumer
with respect to Amway products. Table No.4.9 explains the consumers opinion in
relation to the awareness of Amway products.

TABLE NO.4.9 AWARENESS OF AMWAY PRODUCTS

Fully Strongly Agree Neutral Disagree Strongly Total


aware agree disagree
about 30 56 27 5 2 120
Amway
products 25.0% 46.7% 22.5% 4.2% 1.7% 100%

INTERPRETATION

Table No.4.9 reveals that 46.7% of the respondents agrees that they are fully
aware about Amway products 25.0% of the Amway users strongly agree that they
are fully aware about Amway products 22.5% of the respondents have expressed
their awareness of Amway products as neutral 4.2% of the respondents disagrees
that they are fully aware about the Amway products. 1.7% of the respondents
strongly disagree that they are fully aware about Amway products.

RESULT

It is concluded that most (46.7%) of the respondents agrees that they are
fully aware about Amway products

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PRODUCT DIFFERENTIATION:

Amway has a brand image for its products. Table No.10 explains whether
the Amway product is unique when compared to other products in multi level
marketing.

TABLE NO.10 AMWAY PRODUCT IS UNIQUE

Amway Strongly Agree Neutral Disagree Strongly Total


product is agree disagree
unique 18 69 25 8 0 120

15.0% 57.5% 20.8% 6.7% 0.0% 100%

INTERPRETATION

Table No.10 explains that 57.5% of the respondents agree that Amway
products is unique when compared to other products.20.8% of the respondents
expressed the uniqueness of the Amway products when compared to other products
as neutral. 15% of the respondents strongly agree that Amway product is unique
when compared to other products.6.7% of the respondents disagree that Amway
product is unique. None of the respondents strongly disagree that Amway product
is unique when compared to other products.

RESULT

It is concluded that majority (57.5%) of the respondents agrees that Amway


product is unique.

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HIGH PREFERENCE FOR AMWAY PRODUCTS:

Amway product is highly preferred when compared to other products. Table


No.11 reveals the preference for the Amway products.

TABLE NO.11 HIGH PREFERENCE FOR AMWAY PRODUCTS

Amway Strongly Agree Neutral Disagree Strongly Total


product is agree disagree
highly 24 48 36 9 3 120
preferred
20.0% 40.0% 30.0% 7.5% 2.5% 100%

INTERPRETATION

Table No.11 reveals that 40% of the respondents agree that Amway product
is highly preferred when compared to other products. 30% of the respondents is
neutral about the preference of the Amway products when compared to other
products.20% of the respondents strongly agree that Amway product is highly
preferred when compared to other products. 7.5% of the respondents disagree that
Amway product is highly preferred.2.5% of the respondents strongly disagree that
Amway product is highly preferred.

RESULT

It is concluded that most of the respondents (40%) have agreed that Amway
products is highly preferred when compared to other products

41
DISTRIBUTION OF PRODUCTS WOULD BE TAKEN UP IF OFFERED

The following Table No.12 reveals the opinion of the respondents if the
distribution of products is offered to them.

TABLE NO.12 DISTRIBUTION OF PRODUCTS WOULD BE TAKEN UP.

Distribution Strongly Agree Neutral Disagree Strongly Total


of products agree disagree
will be 17 47 29 18 9 120
taken up if
offered 14.2% 39.2% 24.2% 15.0% 7.5% 100%

INTERPRETATION

Table No.12 reveals that 39.2% of the respondents agree that distribution of
products will be taken up if offered. 24.2% of the respondents are neutral to take
up the distribution if offered.15% of the respondents disagrees to take up
distribution 14.2% of the respondents strongly agree to take up the distribution of
products. 7.5% of the respondents strongly disagree to take up the distribution of
Amway products.

RESULT

It is concluded that most (39.2%) of the respondents agrees to take up


distribution, if offered.

42
AMWAY PRODUCTS WILL BE USED FOR LIFE

The following Table No.13 shows the different views of the respondents
opinion in relation to usage of Amway products for lifetime.

TABLE NO.13 AMWAY PRODUCTS WILL BE USED FOR LIFE

Amway Strongly Agree Neutral Disagree Strongly Total


products agree disagree
will be 17 46 32 19 6 120
used for
life 14.2% 38.3% 26.7% 15.8% 5.0% 100%

INTERPRETATION

Table No.13 explains that 38.3% of the respondents agrees that Amway
products will used for lifetime.26.7% of the respondents are neutral to use Amway
products for lifetime.14.2% of the respondents strongly agrees that Amway
products will be used for life 15.8% of the respondents disagrees to use Amway
products for lifetime.5% of the respondents strongly disagrees to use Amway
products for lifetime.

RESULT

It is concluded that most (38.3%) of the respondents agreed that Amway


products will be used for life.

43
MOSTLY PREFERRED BY HIGH INCOME GROUP:

Amway products are mostly preferred by high income people. The following
Table No.14 reveals the preference of Amway products by income of high income
group people.

TABLE NO.14 MOSTLY PREFERRED BY HIGH INCOME GROUP

Amway Strongly Agree Neutral Disagree Strongly Total


product is agree disagree
preferred 48 37 17 13 5 120
mostly by
high 40.0% 30.8% 14.2% 10.8% 4.2% 100%
income
group

INTERPRETATION

Table No.14 reveals that 40% of the respondents strongly agree that Amway
product is mostly preferred by high income group.30.8% of the respondents agrees
that Amway products is mostly preferred by high income group.14.2% of the
respondents are neutral about the preference by high income group.10.8%of the
respondents disagrees this opinion.4.2% of the respondents strongly disagrees.

RESULT

It is concluded that most (40%) of the respondents strongly agrees that


Amway products is mostly preferred by high income group.

44
FEMALE MEMBERS MOSTLY USE AMWAY PRODUCTS:

The following Table No.15 reveals the respondents view in relation to the
statement that Female members mostly prefer to use Amway products when
compared to males.

TABLE NO.15 FEMALE MEMBERS MOSTLY USE AMWAY PRODUCTS

Female Strongly Agree Neutral Disagree Strongly Total


members agree disagree
prefer to 36 45 22 14 3 120
use
Amway 30.0% 37.5% 18.3% 11.7% 2.5% 100%
products

INTERPRETATION

Table No.15 inferred that 37.5% of the respondents agree that female
members mostly prefer to use Amway products 30% of the respondents strongly
agrees that female members mostly prefers Amway products.18.3% of the
respondents are neutral about this option.11.7% of respondents disagrees that
female members mostly prefer to use Amway products.2.5% of the respondents
strongly disagrees this statement.

RESULT

It is concluded that most (37.5%) of the respondents agrees that female


members prefer to use Amway products when compared to male.

45
CHILDREN LEVEL OF PREFERENCE IS VERY LOW

The following Table No.16 shows the respondents opinion with regard to
children level of preference towards Amway product is very low.

TABLE NO.16 CHILDREN LEVEL OF PREFERENCE IS VERY LOW

Children Strongly Agree Neutral Disagree Strongly Total


level of agree disagree
preference 44 33 32 8 3 120
is very
low 36.7% 27.5% 26.7% 6.7% 2.5% 100%

INTERPRETATION

Table No.16 reveals that 36.7% of the respondents strongly agree that
children preference for Amway products is low. 27.5% of the respondents agree to
it. 26.7% of the respondents are neutral about children preference.2.5% of the
respondents strongly disagrees this statement.

RESULT

It is concluded that most (36.7%) of the respondents strongly agree that


children level of preference for Amway products is very low.

46
AWARENESS IN RELATION TO ALL ASPECTS OF AMWAY
PRODUCTS

The following Table No.17 reveals the opinion of respondents in relation to


all respects towards Amway products.

TABLE NO.17 AWARENESS IN RELATION TO ALL ASPECTS OF


AMWAY PRODUCTS

No of
Percent
Respondents

Yes 41 34.17

No 30 25.00

Not sure 49 40.83

47
AWARENESS
60

50

40

30
49
20 41
30
10

0
YES NO NOT SURE

INTERPRETATION

Table No.17 inferred that 40.83% of the respondents are not sure that they
are aware about all aspects relating to Amway products. 34.17% of the respondents
says that they are fully aware about all aspects relating to Amway products.25% of
the respondents says that they are not fully aware.

RESULT

It is concluded that most (40.83%) of the respondents are not sure about all
aspects relating to Amway products.

48
SOURCE OF AWARENESS

Source of awareness through which the respondents is introduced to the


Amway products.

TABLE NO.18 SOURCE OF AWARENESS

No of
Percent
Respondents

Distributors 32 26.67

friends 57 47.50

relatives 21 17.50

advertisement 10 8.33

Total 120 100.00

49
SOURCE OF AWARENESS

10 8.2

DISTRIBUTORS
21
FRIENDS
RELATIVES
ADVERTISEMENT

57

INTERPRETATION

The above Table No.18 explains that 47.5% of the respondents says that
their source of awareness is friends. 26.67% of the respondents say that their
source of awareness is distributors.17.5% of the respondents says that their source
of awareness is relatives.8.33% of the respondents says that their source of
awareness is advertisement.

RESULT

It is concluded that most (47.5%) of the respondents says that their source of
awareness is friend.

50
PERIOD OF USAGE

The following Table No.19 explains how long the respondents have been
using the Amway products.

TABLE NO.19 TIME PERIOD OF USING AMWAY PRODUCTS

No of
Percent
Respondents

> 1 yrs 45 37.50

2-4 yrs 59 49.17

5-6 yrs 12 10.00

more than 6
4 3.33
yrs

Total 120 100.00

51
PERIOD OF USAGE
70

60

50

40

30 59
45
20

10
12
0 4
>1 YEARS 2-4 YEARS 5-6 YEARS MORE THAN 6 YEARS

INTERPRETATION

The above Table No.19 reveals that 49.17% of the respondents says that
they have been using Amway products ranging between 2-4 years.37.5% of the
respondents says that they have been using Amway products for less than 1 year
10% of the respondents says that they have been using Amway products for 5-6
years.3.3% of the respondents says that they have been using Amway products for
more than 6 years.

RESULT

It is concluded that most (49.17%) of the respondents are using Amway


products for 2-4 years.

52
PRIORITY FOR CHOOSING AMWAY PRODUCTS

The following Table No.20 explains the priority in choosing the Amway
products.

TABLE NO.20 PRIORITY FOR CHOOSING AMWAY PRODUCTS

1 2 3 4 5 6 Total
4 4 19 16 4 73 120
Price 3.3 3.3 15.8 13.3 3.3 60.8 100.0
% % % % % % %
17 25 18 25 26 9 120
Packing 14.2 20.8 15.0 20.8 21.7 7.5 100.0
% % % % % % %
36 17 16 20 21 10 120
Ingredients 30.0 14.2 13.3 16.7 17.5 8.3 100.0
% % % % % % %
22 28 30 13 19 8 120
Eco-friendly 18.3 23.3 25.0 10.8 15.8 6.7 100.0
% % % % % % %
5 29 17 33 25 11 120
Distributor services 4.2 24.2 14.2 27.5 20.8 9.2 100.0
% % % % % % %
36 18 19 14 25 8 120
Brand image 30.0 15.0 15.8 11.7 20.8 6.7 100.0
% % % % % % %

53
PRIORITY FOR CHOOSING AMWAY PRODUCTS
70

60

50

1
40
2
3
30
4
5
20
6

10

INTERPRETATION

Table No.20 inferred that 30% of the respondents prefer Amway products
due to brand image and ingredients these two factors are ranked most. 24.2% and
25% of the respondents prefer Amway products due to distributor services and
eco-friendly respectively. 21.7% of the respondents choose to use Amway products
due to its packing and 60.8% of the respondents gave least ranking to price.

RESULT

It is concluded that most (30%) of the respondents prefer Amway products


due to brand image and ingredients.

54
PRIORITY IN CHOOSING DIFFERENT CATEGORIES OF AMWAY
PRODUCTS

The following Table No.21 explains the consumer preference in relation to


various categories of Amway products.

TABLE NO.21 PRIORITY IN CHOOSING DIFFERENT CATEGORIES OF


AMWAY PRODUCTS

1 2 3 4 5 Total
Products
personal 21 23 26 29 21 120
care 17.5% 19.2% 21.7% 24.2% 17.5% 100.0%
11 14 16 31 48 120
oral care
9.2% 11.7% 13.3% 25.8% 40.0% 100.0%
31 26 26 14 23 120
beauty care
25.8% 21.7% 21.7% 11.7% 19.2% 100.0%
34 24 23 25 14 120
Health care
28.3% 20.0% 19.2% 20.8% 11.7% 100.0%
25 32 29 20 14 120
Home care
20.8% 26.7% 24.2% 16.7% 11.7% 100.0%

55
PRIORITY IN CHOOSING DIFFERENT
CATEGORIES OF AMWAY PRODUCTS
45
40
35
30 1

25 2

20 3

15 4

10 5

5
0
PERSONAL CARE ORAL CARE BEAUTY CARE HEALTH CARE HOME CARE

INTERPRETATION

From the Table No.21 explains that 28.3% of the respondents prefer health
care products the most. 26.7% of the respondents choose home care products,
21.7% of the respondents give next preference to personal care and beauty care and
40% of the respondents have given least importance to oral care products.

RESULT

It is concluded that most of the respondents have given priority to health


care products.

56
LEVEL OF SATISFACTION

The following Table No.22 explains the respondents level of satisfaction


with various factors of Amway products.

TABLE NO.22 LEVEL OF SATISFACTION

Highly Highly
Category satisfied Neutral dissatisfied Total
satisfied dissatisfied
60 53 4 3 0 120
Brand
50.0% 44.2% 3.3% 2.5% 0.0% 100.0%
14 32 25 28 21 120
Price
11.7% 26.7% 20.8% 23.3% 17.5% 100.0%
47 49 18 3 3 120
Quality
39.2% 40.8% 15.0% 2.5% 2.5% 100.0%
easy- 19 43 32 20 6 120
availability 15.8% 35.8% 26.7% 16.7% 5.0% 100.0%
17 33 26 22 22 120
Offers
14.2% 27.5% 21.7% 18.3% 18.3% 100.0%

57
LEVEL OF SATISFACTION
60

50

40

HIGHLY SATISFIED
30 SATISFIED
NEUTRAL

20 DISSATISFIED
HIGHLY DISSATISFIED

10

INTERPRETATION

Table No.22 inferred that 50% of the respondents are highly satisfied with
brand, 26.7% of the respondents are satisfied with the price. 40.8% of the
respondents are satisfied with quality. 35.8% of the respondents are satisfied with
the easy-availability and 27.5% of the respondents are satisfied with the offers.

RESULT

It is concluded that most (50%) of the respondents are highly satisfied with
the brand.

58
RECOMMENDATION OF AMWAY PRODUCTS TO OTHERS:

The following Table No.23 explains respondents view with regard to


recommendation of Amway products to others.

TABLE NO.23 RECOMMENDATION OF AMWAY PRODUCTS TO


OTHERS

No of
Percent
Respondents

Yes 94 78.33

No 26 21.67

Total 120 100.00

59
RECOMMENDATION OF AMWAY
PRODUCTS

26

YES
NO
94

INTERPRETATION

Table No.23 reveals that 78.33% of the respondents says that they will
recommend Amway products to others and 21.67% of the respondents says they
will not recommend Amway products to others.

RESULT

It is concluded that majority, 78.33% of the respondents will recommend the


Amway products to others.

60
DISTRIBUTOR SERVICE

The following Table No.24 reveals the respondents exact answer whether
they would become a distributor of Amway

TABLE NO.24 DISTRIBUTOR SERVICE

No of
Percent
Respondents
Yes 27 28.72
No 67 71.28
Total 94 100.00

DISTRIBUTOR SERVICE

27

67

INTERPRETATION

Table No.24 inferred that 71.28% of the respondents says that they will not
become an Amway distributor and 28.72% of the respondents says that they will
become an Amway distributor.

RESULT

It is concluded that majority (71.28%) of the respondents says that they will
not become an Amway distributor.

61
SWITCH OVER OF PREFERENCE TO OTHER PRODUCTS

Respondents may switch over their preference to other products due to


various reasons. The following Table No.25 explains the respondents switch over
of preference to other products other than Amway.

TABLE NO.25 SWITCH OVER TO OTHER PRODUCTS

No of
Percent
Respondents

Yes 69 57.50

No 51 42.50

Total 120 100.00

62
SWITCH OVER TO OTHER
PRODUCTS

51 YES

69 NO

INTERPRETATION

Table No.25 explains that 57.50% of the respondents says that they will not
switch over to any other product and 42.50% of the respondents says that they will
switch over to other product.

RESULT

It is concluded that majority (57.50%) of the respondents says that they will
not switch over to any other product.

63
CAUSES FOR SWITCHING OVER THE PREFERENCE TO OTHER
PRODUCTS

There would be many reasons for switching over the preference to other
products. The following Table No.26 explains reasons for switching over the
respondents preference to other products.

TABLE NO.26 CAUSES FOR SWITCH OVER

No of
Causes for switch over Percent
Respondents
Products are costly 46 66.67
Not available in near by
15 21.74
shops
No offers 8 11.59
Total 69 100.00

INTERPRETATION

Table No.26 reveals that 66.67% of the respondents say that products are
costly, 21.74% of the respondents says that the products are not available in near-
by shops and 11.59% of the respondents says that there is no offers.

RESULT

It is concluded that majority (66.67%) of the respondents says that products


are costly.

64
CHI-SQUARE ANALYSIS

The personal attributes of the respondents have been the basis natural factors exposed to
research study conducted at any place or time. Hence to call out the value of the personal
attributes in the research design, the chi square test has been conducted on the variables to
ascertain the type of association between the personal attributes as the independent variables and
the test attributes on the dependent variables. The association of the personal attributes, such as
monthly income, education, occupation, age, gender and the size of the family with the test
attributes viz., the influencing factors such as price, brand image,quality and the shift in the
brand preference have been tested with the chi-square test relevant null hypothesis have been
framed as required.

65
RELATIONSHIP BETWEEN GENDER AND SOURCE OF AWARENESS
Table No.1 has revealed the respondents source of awareness towards Amway products.
Chi- square test has been applied to determine the association between the gender of the
respondents and their source of awareness.

HYPOTHESIS

There has been no significant relationship between the gender of the respondents and
their source of awareness.

TABLE NO.1

Crosstab

Count
sources of awareness
dis tributors friends relatives advertisement Total
Gender male 12 13 7 3 35
female 20 44 14 7 85
Total 32 57 21 10 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 2.371a 3 .499
Lik elihood Ratio 2.372 3 .499
Linear-by-Linear
.137 1 .711
As soc iation
N of Valid Cases 120
a. 1 c ells (12.5%) have ex pec ted c ount les s than 5. The
RESULT minimum expected count is 2.92.

Table No.1 has revealed that the respondents relationship between gender and source of
awareness. It has been inferred that the value is 2.371 at 3 degree of freedom which is lower than
the table value of 7.815 at 5% level of significance. Thus there is no significant relationship
between gender of respondents and their source of awareness.

Thus the null hypothesis is accepted at 5% level of significance.

66
RELATIONSHIP BETWEEN GENDER AND HOW LONG THEY HAVE
BEEN USING AMWAY PRODUCTS
Table No.2 determines the association between the gender and how long they have been
using Amway products.

HYPOTHESIS
There has been no significant relationship between gender and their period of usage.

TABLE NO.2

Crosstab

Count
How long have you been us ing amway products
more
> 1 yrs 2-4 yrs 5-6 yrs than 6 yrs Total
Gender male 15 12 6 2 35
female 30 47 6 2 85
Total 45 59 12 4 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 5.965a 3 .113
Lik elihood Ratio 5.808 3 .121
Linear-by-Linear
.372 1 .542
As soc iation
N of Valid Cases 120
a. 3 c ells (37.5%) have ex pec ted c ount les s than 5. The
minimum expected count is 1.17.
RESULT:

Table No.2 has revealed the respondents relationship between the gender and how long
they have been using the Amway products. The chi-square value has been 5.965 at 3 degree of
freedom which is lower than the table value of 7.815. Thus there is no significant relationship
between gender and their period of usage.

Thus the null hypothesis is accepted at 5% level of significance.

67
RELATIONSHIP BETWEEN GENDER AND RECOMMENDATION OF
PRODUCTS TO OTHERS
Gender plays an important role in recommending the product to others. Table No.3
reveals the association between Gender and the recommendation of Amway products to others.
HYPOTHESIS
There has been no significant association between the gender and the recommendation of
Amway products to others.

TABLE NO.3

Crosstab

Count
Will you recommend
amway products to
others
Yes no Total
Gender male 24 11 35
female 70 15 85
Total 94 26 120

Chi-Square Tests

As ymp. Sig. Exact Sig. Exact Sig.


Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square 2.774b 1 .096
Continuity Correctiona 2.022 1 .155
Likelihood Ratio 2.644 1 .104
Fis her's Exact Test .142 .080
Linear-by-Linear
2.751 1 .097
As sociation
N of Valid Cases 120
a. Computed only for a 2x2 table
RESULT: b. 0 cells (.0%) have expected count les s than 5. The minimum expected count is
7.58.

Table No.3 shows the computed Chi-square value is 2.774 at 1 degree of freedom which
is lower than the table value which is 3.841. There has been a significant relationship between
gender and recommendation of products to others.

Thus the null hypothesis is accepted at 5% level of significance.

68
RELATIONSHIP BETWEEN AGE AND SOURCE OF AWARENESS
Age of respondent has a greater impact towards their source of awareness. The following
Table No.4 reveals the association between age of the respondent and their sources of awareness

HYPOTHESIS:
There has been no significant relationship between the age of the respondent and their
sources of awareness.

TABLE NO.4

Crosstab

Count
sources of awareness
dis tributors friends relatives advertisement Total
Age 15-20 yrs 15 24 11 3 53
20-25 yrs 3 16 5 4 28
25-30 yrs 4 8 3 2 17
more than 30 yrs 10 9 2 1 22
Total 32 57 21 10 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 9.981a 9 .352
Lik elihood Ratio 10.305 9 .326
Linear-by-Linear
1.101 1 .294
As soc iation
N of Valid Cases 120
a. 8 c ells (50.0%) have ex pec ted c ount les s than 5. The
minimum expected count is 1.42.
RESULT

Table No.4 inferred that the computed value of chi-square as 9.981 at 9 degree of
freedom which is lower than the table value of 16.919. Thus there is no association between age
of the respondents and their source of awareness.

Thus the null hypothesis is accepted at 5% level of significance.

69
RELATIONSHIP BETWEEN AGE OF THE RESPONDENT AND HOW
LONG THEY HAVE BEEN USING AMWAY PRODUCTS
Table No: 5 revealed the association between the age of the respondent and how long
they have been using Amway products
HYPOTHESIS:
There has been no significant relationship between the age of the respondent and their
period of usage.
TABLE NO.5

Crosstab

Count
How long have you been using amway products
more
> 1 yrs 2-4 yrs 5-6 yrs than 6 yrs Total
Age 15-20 yrs 19 30 3 1 53
20-25 yrs 10 15 3 28
25-30 yrs 10 4 3 17
more than 30 yrs 6 10 3 3 22
Total 45 59 12 4 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 16.914 a 9 .050
Lik elihood Ratio 15.638 9 .075
Linear-by-Linear
2.398 1 .121
As soc iation
N of Valid Cases 120
a. 7 c ells (43.8%) have ex pec ted c ount les s than 5. The
minimum expected count is .57.
RESULT

Table No: 5 reveals that there is no significant relationship between age and period of
usage. The calculated chi-square value is 16.914 at 9 degree of freedom which is lower than the
table value of 16.919.

Thus the null hypothesis is accepted at 5% level of significance

70
RELATIONSHIP BETWEEN AGE OF THE RESPONDENTS AND THE
RECOMMENDATION OF AMWAY PRODUCTS
Table No: 6 determine the association between the age of the respondents and
recommendation of Amway products to others.
HYPOTHESIS
There has been no significant relationship between age of the respondent and
recommendation of Amway products to others.
TABLE NO.6

Crosstab

Count
W ill you recommend
amway product s to
others
Yes no Total
Age 15-20 y rs 42 11 53
20-25 y rs 22 6 28
25-30 y rs 12 5 17
more t han 30 y rs 18 4 22
Total 94 26 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square .785a 3 .853
Lik elihood Ratio .749 3 .862
Linear-by-Linear
.003 1 .959
As soc iation
N of Valid Cases 120
a. 2 c ells (25.0%) have ex pec ted c ount les s than 5. The
minimum expected count is 3.68.
RESULT:

Table No.6 reveals the calculated value of chi-square as 0.785 at 3 degree of freedom
which is lower than the table value of 7.815 at 5% level of significance. Thus there has been no
significant relationship between age of the respondents and recommendation of amway products.

Thus the null hypothesis is accepted at 5% level of significance.

71
RELATIONSHIP BETWEEN EDUCATIONAL QUALIFICATION AND
SOURCE OF AWARENESS
Education improves the people it helps in creating awareness regarding the Amway
product. The following Table No.7 has revealed the association existing between educational
qualification of the respondents and their awareness about Amway products.
HYPOTHESIS
There has been no significant association between the educational qualification of the
respondents and their awareness about the Amway products.
TABLE NO.7

Crosstab

Count
sources of awareness
dis tributors friends relatives advertisement Total
Educational higher secondary 2 11 3 1 17
qualification UG 16 33 12 6 67
PG 11 8 5 2 26
Profes sional 3 5 1 1 10
Total 32 57 21 10 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 7.258a 9 .610
Lik elihood Ratio 7.458 9 .590
Linear-by-Linear
.873 1 .350
As soc iation
N of Valid Cases 120
a. 9 c ells (56.3%) have ex pec ted c ount les s than 5. The
minimum expected count is .83.
RESULT

Table No.7 reveals the computed value of chi-square value as 7.258 at 9 degree of
freedom which is lower than the table value of 16.919 at 5% level of significance. Thus there is
no association between the educational qualification and source of awareness about the products.

Thus the null hypothesis is accepted at 5% level of significance.

72
RELATIONSHIP BETWEEN EDUCATIONAL QUALIFICATION AND
THEIR PERIOD OF USAGE
The following Table No.8 determines the association between the educational
qualification and how long they have been using Amway products.
HYPOTHESIS
There has been a significant relationship between the educational qualification and time
period for the usage products.
TABLE NO.8

Crosstab

Count
How long have you been us ing amway products
more
> 1 yrs 2-4 yrs 5-6 yrs than 6 yrs Total
Educational higher secondary 8 9 17
qualification UG 27 35 3 2 67
PG 7 11 7 1 26
Profes sional 3 4 2 1 10
Total 45 59 12 4 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 16.212 a 9 .063
Lik elihood Ratio 16.019 9 .066
Linear-by-Linear
7.519 1 .006
As soc iation
N of Valid Cases 120
a. 9 c ells (56.3%) have ex pec ted c ount les s than 5. The
minimum expected count is .33.

RESULT

The above Table No.8 shows the computed value of chi-square value as 16.212 at 9
degree of freedom which is greater than the table value of 16.919 at 5% level of significance.
Thus there is a significant relationship between educational qualification and time period for the
usage of products

Thus the null hypothesis is rejected at 5% level of significance.

73
RELATIONSHIP BETWEEN EDUCATIONAL QUALIFICATION AND
THEIR RECOMMENDATION OF PRODUCTS TO OTHERS
The following Table No.9 explains that educational qualification of the respondents may
help them to recommend the product to others. It also shows the relationship between
educational qualification and recommendation of products to others.
HYPOTHESIS
There has been no significant relationship between educational qualification and
recommendation of Amway products to others.
TABLE NO.9

Crosstab

Count
W ill you recommend
amway produc ts t o
others
Yes no Total
Educational higher sec ondary 12 5 17
qualific ation UG 55 12 67
PG 19 7 26
Profes sional 8 2 10
Total 94 26 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 1.597a 3 .660
Lik elihood Ratio 1.558 3 .669
Linear-by-Linear
.006 1 .937
As soc iation
N of Valid Cases 120
a. 2 c ells (25.0%) have ex pec ted c ount les s than 5. The
RESULT minimum expected count is 2.17.
The above Table No.9 reveals the calculated value of chi-square as 1.597 at 3 degree of
freedom which is lower than the table value of 7.815 at 5% level of significance. Thus there is no
significant relationship between th at 5% level of significance e educational qualification and
recommendation of Amway products to others

Thus the null hypothesis is accepted at 5% level of significance.

74
RELATIONSHIP BETWEEN OCCUPATION AND SOURCE OF
AWARENESS
The occupation of the respondents to which they belong may sometimes creates
awareness of Amway products. The following Table No.10 reveals the association between
occupation of the respondents and their source of awareness.
HYPOTHESIS
There has been no significant relationship between occupation of the respondents and
their source of awareness.
TABLE NO.10

Crosstab

Count
sources of awareness
dis tributors friends relatives advertisement Total
Occupation Student 15 34 14 4 67
business 2 2 3 1 8
employed 11 11 2 4 28
homemaker 4 10 2 1 17
Total 32 57 21 10 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 10.296 a 9 .327
Lik elihood Ratio 10.169 9 .337
Linear-by-Linear
.460 1 .497
As soc iation
N of Valid Cases 120
a. 9 c ells (56.3%) have ex pec ted c ount les s than 5. The
RESULT minimum expected count is .67.

The above Table No.10 infers that the computed value of chi-square value as 10.296 at 9
degree of freedom which is lower than the table value of 16.919 at 5% level of significance.
Thus there is no association between occupation and source of awareness.

Thus the null hypothesis is accepted at 5% level of significance.

75
RELATIONSHIP BETWEEN OCCUPATION OF THE RESPONDENTS
AND THE PERIOD OF USAGE
The following Table No.11 reveals the relationship between the occupation of the
respondents and how long they have been using Amway products.
HYPOTHESIS
There is significant relationship between the occupation and time period for the usage of
the products.
TABLE NO.11

Crosstab

Count
How long have you been us ing amway products
more
> 1 yrs 2-4 yrs 5-6 yrs than 6 yrs Total
Occupation Student 24 38 4 1 67
business 3 2 2 1 8
employed 9 11 6 2 28
homemaker 9 8 17
Total 45 59 12 4 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 16.373 a 9 .059
Lik elihood Ratio 16.517 9 .057
Linear-by-Linear
.000 1 .997
As soc iation
N of Valid Cases 120
a. 9 c ells (56.3%) have ex pec ted c ount les s than 5. The
minimum expected count is .27.

RESULT:

The above Table No.11 inferred the computed value of chi-square as 16.373 at 9 degree
of freedom which is greater than the table value of 16.919 at 5% level of significance. Thus there
is association between occupation and time period for the usage of products.

Thus the null hypothesis is rejected at 5% level of significance.

76
RELATIONSHIP BETWEEN OCCUPATION AND RECOMMENDATION
OF PRODUCTS
The following Table No.12 shows the relationship between the occupation of the
respondents and their recommendation of Amway products to others.
HYPOTHESIS
There has been no significant relationship between occupation and recommendation of
Amway products to others.
TABLE NO.12

Crosstab

Count
W ill you recommend
amway produc ts to
others
Yes no Total
Oc cupation St udent 54 13 67
business 8 8
employ ed 19 9 28
homemaker 13 4 17
Total 94 26 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 4.260a 3 .235
Lik elihood Ratio 5.793 3 .122
Linear-by-Linear
.927 1 .336
As soc iation
N of Valid Cases 120
a. 2 c ells (25.0%) have ex pec ted c ount les s than 5. The
minimum expected count is 1.73.
RESULT
The above Table No.12 explains the computed value of chi-square as 4.260 at 3 degree of
freedom which is lower than the table value of 7.815 at 5% level of significance. Thus there is no
significant relationship between the occupation of the respondents and their recommendation of
Amway products to others.

Thus the null hypothesis is accepted at 5% level of significance.

77
RELATIONSHIP BETWEEN INCOME LEVEL AND SOURCE OF
AWARENESS
Income has been an important element to determine the purchasing power and preference
of the products. The following Table No.13 relationship between monthly income of the
respondents and their source of awareness.
HYPOTHESIS
There has been no association between the monthly income of the respondents and their
source of awareness.
TABLE NO.13

Crosstab

Count
sources of awareness
dis tributors friends relatives advertisement Total
income les s than 5000 7 20 6 1 34
level per 5000-10000 5 13 6 2 26
month 10001-20000 7 15 5 5 32
more than 20000 13 9 4 2 28
Total 32 57 21 10 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 11.712 a 9 .230
Lik elihood Ratio 11.142 9 .266
Linear-by-Linear
.417 1 .519
As soc iation
N of Valid Cases 120
a. 6 c ells (37.5%) have ex pec ted c ount les s than 5. The
RESULT minimum expected count is 2.17.

The above Table No.13 reveals that the calculated value of chi-square as 11.712 at 9
degree of freedom which is lower than the table value of 16.919 at 5% level of significance.
Thus there has been no significant relationship between the respondents and their source of
awareness.

Thus the null hypothesis is accepted at 5% level of significance.

78
RELATIONSHIP BETWEEN MONTHLY INCOME AND PERIOD OF
USAGE
The following Table No.14 reveals the association between the monthly income of the
respondents and the period of usage.
HYPOTHESIS
There has been significant relationship between monthly income and the time period for
the usage of products.
TABLE NO.14

Crosstab

Count
How long have you been using amway products
more
> 1 yrs 2-4 yrs 5-6 yrs than 6 yrs Total
income les s than 5000 15 15 3 1 34
level per 5000-10000 11 15 26
month 10001-20000 11 19 2 32
more than 20000 8 10 7 3 28
Total 45 59 12 4 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 19.428 a 9 .022
Lik elihood Ratio 20.539 9 .015
Linear-by-Linear
5.654 1 .017
As soc iation
N of Valid Cases 120
a. 8 c ells (50.0%) have ex pec ted c ount les s than 5. The
minimum expected count is .87.
RESULT

The above Table No.14 reveals the computed value of chi-square value as 19.428 at 9
degree of freedom which is greater than the table value of 16.919 at 5% level of significance.
Thus there has been significant relationship between monthly income and time period for the
usage of products.

Thus the null hypothesis is rejected at 5% level of significance.

79
RELATIONSHIP BETWEEN MONTHLY INCOME AND
RECOMMENDATION OF PRODUCTS TO OTHERS
The following Table No.15 shows the relationship between the monthly income of the
respondents and their recommendation of Amway products to others.
HYPOTHESIS
There has been no significant relationship between the monthly income of the
respondents and their recommendation of Amway products to others.
TABLE NO.15

Crosstab

Count
W ill you recommend
amway produc ts to
others
Yes no Total
inc ome les s than 5000 27 7 34
level per 5000-10000 20 6 26
month 10001-20000 25 7 32
more t han 20000 22 6 28
Total 94 26 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square .056a 3 .997
Lik elihood Ratio .055 3 .997
Linear-by-Linear
.003 1 .953
As soc iation
N of Valid Cases 120
a. 0 c ells (.0% ) have expected count less than 5. The
RESULT minimum expected count is 5.63.

Table No.15 inferred that the calculated value of chi-square as 0.056 at 1 degree of
freedom which is lower than the table value of 7.815 at 5% level of significance. Thus there has
been no association between monthly income and recommendation of Amway products to
others.

Thus the null hypothesis is accepted at 5% level of significance.

80
RELATIONSHIP BETWEEN RESIDENTIAL AREA OF THE
RESPONDENTS AND THEIR SOURCE OF AWARENESS
Residential area whether it is urban or rural, it has greater impact on awareness of
Amway products. The following Table No.16 reveals the relationship between residential area of
the respondent and their source of awareness with regard to Amway products.
HYPOTHESIS
There has been no significant relationship between the residential area of the respondents
and their source of awareness.
TABLE NO.16

Crosstab

Count
sources of awareness
dis tributors friends relatives advertisement Total
Residential Rural 7 12 4 1 24
area urban 25 45 17 9 96
Total 32 57 21 10 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square .747a 3 .862
Lik elihood Ratio .854 3 .837
Linear-by-Linear
.526 1 .468
As soc iation
N of Valid Cases 120
a. 2 c ells (25.0%) have ex pec ted c ount les s than 5. The
minimum expected count is 2.00.
RESULT

Table No.16 shows the calculated value of chi-square as 0.747 at 3 degree of freedom
which is lower than the table value of 7.815 at 5% level of significance. Thus there is no
association between residential area and source of awareness.

Thus the null hypothesis is accepted at 5% level of significance.

81
RELATIONSHIP BETWEEN THE RESIDENTIAL AREA OF THE
RESPONDENTS AND THEIR PERIOD OF USAGE
The following Table No.17 reveals the relationship between residential area of the
respondents and the period of usage.
HYPOTHESIS
There has been no significant relationship between the residential area of the respondents
and their period of usage.
TABLE NO.17

Crosstab

Count
How long have you been using amway products
more
> 1 yrs 2-4 yrs 5-6 yrs than 6 yrs Total
Residential Rural 11 11 2 24
area urban 34 48 10 4 96
Total 45 59 12 4 120

Chi-Square Te sts

As ymp. Sig.
Value df (2-sided)
Pearson Chi-Square 1.707a 3 .635
Lik elihood Ratio 2.469 3 .481
Linear-by-Linear
1.463 1 .226
As soc iation
N of Valid Cases 120
a. 3 c ells (37.5%) have ex pec ted c ount les s than 5. The
minimum expected count is .80.
RESULT

Table No.17 explained that the computed value of chi-square value has been 1.707 at 3
degree of freedom which is lower than the table value of 7.815 at 5% level of significance. Thus
there is no association between the residential area of the respondents and the period of usage.

Thus the null hypothesis is accepted at 5% level of significance.

82
RELATIONSHIP BETWEEN RESIDENTIAL AREA AND THEIR
RECOMMENDATION OF PRODUCTS TO OTHERS
The following Table No.18 revealed the relationship between the residential area of the
respondents and their recommendation of Amway products to others.
HYPOTHESIS
There has been no significant relationship between the residential area and
recommendation of products to others.
TABLE NO.18

Crosstab

Count
Will you recommend
amway products to
others
Yes no Total
Residential Rural 17 7 24
area urban 77 19 96
Total 94 26 120

Chi-Square Tests

As ymp. Sig. Exact Sig. Exact Sig.


Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square .994b 1 .319
Continuity Correctiona .519 1 .471
Likelihood Ratio .943 1 .332
Fis her's Exact Test .405 .231
Linear-by-Linear
.986 1 .321
As sociation
N of Valid Cases 120
a. Computed only for a 2x2 table
RESULT
b. 0 cells (.0%) have expected count les s than 5. The minimum expected count is
5.20.

Table No.18 explained that the computed value of chi-square as 0.994 at 1 degree of
freedom which is lower than the table value of 3.814 at 5% level of significance. Thus there has
been no relationship between residential area and their recommendation of Amway products to
others.

Thus the null hypothesis is accepted at 5% level of significance.

83
CHAPTER-V

FINDINGS, SUGGESTIONS AND


CONCLUSION
84
CHAPTER-V

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

The following are important findings of the study

“A Study on customer satisfaction towards Amway products with a particular preference to


Coimbatore city”

SUMMARY OF FINDINGS

 Percentage analysis
 Chi- square test

PERCENTAGE ANALYSIS

 Most (44.17%) of the respondents fall in the age group of 15-20 years.

 Majority (70.83%) of the respondents are female.

 Majority (55.83%) of the respondents are under graduates.

 Majority (55.83%) of the respondents are students.

 Majority (65.83%) of the respondents are unmarried.

 Majority (60.83%) of the respondents are families consisting of 4-5 members

 Most (28.33%) of the respondents are earning less than 5000.

 Most (46.7%) of the respondents agree that they are fully aware about Amway products

85
 Most (47.5%) of the respondents have come to know about Amway products through
friends.

 Most (49.17%) of the respondents have been using Amway products ranging from 2-4
years.

 Majority (57.5%) of the respondents agree that Amway product is unique when compared
to other products.

 Majority (50%) of the respondents agree that Amway products are recommended to
others.

 Majority 80% of the respondents belongs to urban area.

 Most (39.2%) of the respondents agree that distribution of products will be taken if
offered.

 Most (38.3%) of the respondents agrees that Amway product will be used for life.

 Most (40%) of the respondents strongly agree that Amway product is mostly preferred by
high income group.

 Most (37.5%) of the respondents agree that female members prefer to use Amway
products when compared to male.

 Most (36.7%) of the respondents strongly agree that children level of preference for
Amway products is very low.

 Majority (71.28%) of the respondents says that they will not become an Amway
distributor.

86
 Majority (57.5%) of the respondents says that they will switch over to other product.

 Majority (66.67%) of the respondents says the reason for switch over to other product is
Amway products are costly.

 Majority (50%) of the respondents is satisfied with the brand and 17.5% of the
respondents are highly dissatisfied with high price of Amway products.

87
CHI-SQUARE ANALYSIS

There has been no significant relationship between the

 Gender of the respondents and their source of awareness.


 Gender and their period of usage.
 Gender and recommendation of products to others.
 Age of the respondents and their source of awareness
 Age of the respondents and their period of usage
 Age of the respondents and their recommendation of products to others
 Educational qualification and their source of awareness
 Educational qualification and their period of usage
 Educational qualification and their recommendation of products to others
 Occupation of the respondents and their source of awareness
 Occupation of the respondents and their period of usage
 Occupation of the respondents and their recommendation of products to others
 Income of the respondents and their source of awareness
 Income of the respondents and their recommendation of products to others
 Residential area of the respondents and their source of awareness
 Residential area of the respondents and their recommendation of products to others

There is a significant relationship between

 Income level of the respondents and their period of usage


 Residential area of the respondents and their period of usage

88
SUGGESTIONS

The following suggestions are offered to remove the customer dissatisfaction in some
aspects of the Amway products using customer expectations certain changes has to be made in
the following aspects which are presented as suggestions.

 The products should be cheap.


 The home delivery system takes at least two days to deliver the products so the delivery
should be instant
 Majority of the respondents suggested that the price of Amway products is considered to
be higher. Hence steps could be taken by the companies to reduce the prices so that many
would get benefited.
 There must be multiple options for purchasing the products for consumers like online,
retail shops and instant purchasing.
 In every city, the Amway office should be situated in such a location so that it is in reach
of all consumers.
 Sample packs should be used because customer must have to introduce the product to
themselves. Once customer gets an idea about the product he comes to know the
advantages of products.
 Majority of the respondents are female, it should concentrate more on male products.
Steps should be taken to grab the attention of children preference towards Amway
products.
 To promote the Amway products many respondents suggested to give advertisements for
all the products of Amway.

89
CONCLUSION

Amway is one of the largest direct selling company in the world. T h e p r o d u c t s


o f Amway are world class product quality. They are made up of natural a thing that’s why they
are good for health and environment. Amway covers a wide range of products from beauty care.
Health care, to clothing, and daily use products etc. the products are costly as compared to
other branded products available in market but if we compare the quantity while using the
products require less amount and thus can be used for longer time.

The development in the field of science and technology accompanied by updated media
in very quick in creating awareness about the changes in all fields including personal and health
care products amongst the consumers. As a result the consumers do not mind giving up their old
products and taking up a new product. Today there is no consumer who is a slave for any
product. The number of brands available is also increasing, in its place of old products consumer
prefers to use new branded products like Amway.

“Company should have a careful watch over the dynamic customer behaviour and come
out with a new products are update its existing to be more successful”.

“The study on customer satisfaction towards Amway products” has revealed that
most of the respondents switch over their preference to other brands due to higher price and lack
of awareness about Amway products. Hence to maintain the brand image of Amway Company
the prices of the products should be reasonable and moreover it must be affordable to buy its
products by all consumers.

If Amway products are sold at the rock bottom prices then choosing of Amway products really
make sense

90
BIBLIOGRAPHY
91
BIBLIOGRAPHY

JOURNAL

 Indian Journal of Marketing


 Indian Journal of Product and Management
 SIBACA Management review
 AMAGRAM

WEBSITES

www.google.com

www.amwayindia.com

www.reviews42.com

www.scribd.com

www.asianjournal.com

92
A STUDY ON CUSTOMER SATISFACTION TOWARDS
AMWAY PRODUCTS IN COIMBATORE CITY
1. NAME:
2. ADDRESS:

3. GENDER:
A) MALE
B) FEMALE

4. AGE:
A) 15-20
B) 20-25
C) 25-30
D) More than 30

5. MARITIAL STATUS
A) MARRIED
B) UNMARRIED

6. EDUCATIONAL QUALIFICATION
A) HIGHER SECONDARY
B) UG
C) PG
D) PROFESSIONAL

7. OCCUPATION
A) STUDENT
B) BUSINESS
C) EMPLOYED
D) HOMEMAKER

8. INCOME LEVEL PER MONTH


A) LESS THAN 5000
B) 5000-10000
C) 10001-20000
D) More than 20000

9. MEMBERS IN THE FAMILY


A) 1-3
B) 4-5
C) 5-6
D) MORE THAN 6

10. RESIDENTIAL AREA


A) RURAL

93
B) URBAN
TO STUDY THE CONSUMERS AWARENESS AND PREFERENCE
TOWARDS AMWAY PRODUCTS

SNO PARTICULARS STRONGLY AGREE NEUTRAL DISAGREE STRONGLY


AGREE DISAGREE
11 FULLY AWARE ABOUT AMWAY PRODUCTS
12 AMWAY PRODUCT IS UNIQUE WHEN
COMPARED TO OTHER PRODUCTS
13 AMWAY PRODUCTS IS HIGHLY PREFERRED
WHEN COMPARED TO OTHER PRODUCTS
14 AMWAY PRODUCTS ARE RECOMMENED
TO OTHERS
15 DISTRIBUTION OF PRODUCTS WILL BE
TAKEN UP IF OFFERED
16 AMWAY PRODUCTS WILL BE USED FOR
LIFE
17 AMWAY PRODUCTS IS MOSTLY
PREFERRED BY HIGH INCOME GROUP
18 FEMALE MEMBERS PREFER TO USE
AMWAY PRODUCTS WHEN COMED TO
MALE
19 CHILDREN LEVEL OF PREFERENCE FOR
AMWAY PRODUCT IS VERY LOW

20. ARE YOU AWARE ABOUT ALL ASPECTS RELATING TO AMWAY PRODUCTS
A) YES
B) NO
C) NOT SURE

21. SOURCES OF AWARENESS


A) DISTRIBUTORS
B) FRIENDS
C) RELATIVES
D) ADVERTISEMENT

22. HOW LONG HAVE YOU BEEN USING AMWAY PRODUCTS


A) > 1 YEAR
B) 2-4 YEARS
C) 5-6 YEARS

94
D) MORE THAN 6 YEARS
TO ANALYSE THE LEVEL OF SATISFACTION OF CONSUMERS
TOWARDS AMWAY PRODUCTS

23. RANK THE FOLLOWING CRITERIA FOR CHOOSING AMWAY PRODUCTS

CRITERIA RANK

PRICE

PACKING

INGREDIENTS

ECO-FRIENDLY

DISTRIBUTOR SERVICES

BRAND IMAGE

24. RANK THE AMWAY PRODUCTS ACCORDING TO YOUR CHOICE AND PREFERENCE

PRODUCTS RANK

PERSONAL CARE

ORAL CARE

BEAUTY CARE

HEALTH CARE

HOME CARE

95
25. RATE THE LEVEL OF SATISFACTION ON AMWAY PRODUCTS

CATEGORY HIGHLY SATISFIED NEUTRAL DISSATISFIED HIGHLY


SATISFIED DISSATISFIED

BRAND

PRICE

QUALITY

EASY-
AVAILABLITY
OFFERS

26. WILL YOU RECOMMEND AMWAY PRODUCTS TO OTHERS


A) YES
B) NO
27. IF YES, WILL YOU BECOME AN AMWAY DISTRIBUTOR
A) YES
B) NO

28. WILL YOU SWITCH OVER TO ANY OTHER PRODUCT


A) YES
B) NO

29. IF YES, WHAT IS THE REASON


A) PRODUCTS ARE COSTLY
B) NOT AVAILABLE IN NEAR BY SHOPS
C) NO OFFERS

30. SUGGESTIONS, IF ANY____________________

THANK YOU

96