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Consumer Buying Behaviour While Purchasing Refrigerator Final Project
Consumer Buying Behaviour While Purchasing Refrigerator Final Project
com/fyp/
CONSUMER BEHAVIOUR
ON THE
PURCHASE OF REFRIGERATORS
Submitted by
Group 1
Phase I
1. Introduction 4
2.
1 A
ACKNOWLEDGEMENT
We are sincerely grateful to Dr. Neena Sondhi, IMI Delhi, under whose able
We would also like to thank Mr.& Mrs. Mohit Aggrawal, Mr.& Mrs. Srinidhi,
Mr.& Mrs. Jignesh Patel, Mr.& Mrs. Vikas Saxena, Mr.& Mrs. Randheer Singh
Ahluwalia who have all been very prompt in replying to all our queries and have
INTRODUCTION
The consumers degree of interest in a product and the importance he/she places on this product
determines the consumers level of involvement. High-involvement products are usually
expensive and are visible to other people such as a Diamond ring/jewellery or a Expensive car.
Low-involvement products are less expensive and have less social risk associated with them such
as a cup of coffee or daily consumption items.
When buying frequently purchased, low-cost mundane items that require very little search and
decision effort, they demonstrate routinized response behaviour. When buying products
occasionally or when they need to get information about an unfamiliar brand in a familiar
product category, they use limited problem solving. When they buy unfamiliar, expensive
products, they use extended problem solving.
Phase I Findings
Objective : The purpose of this study is to understand key external variables influencing the
buying behavior of a particular segment of customers towards the product category of
Refrigerator.
Consumers get influenced by several major factors while they make their decisions. These
factors can be grouped as demographic, social, cultural factors etc. Consumers try to purchase
and maintain a variety of products that satisfy their current and future needs.
Segment/Sample profile Chosen : The consumer segment chosen for this study is Males
in the age group of 30 to 40 years, working professional and married.
External Factors
The External factors that influence the purchase decision of consumer in the age group of 30 to
40 for a Refrigerator.
1.) Demographic Details
6.) Family
People prefer to buy on auspicious occasions and festival like Diwali & Navratri.
All consumers want value for money and after sales services is important for all.
Vegetarians look for more vegetable box space where as non-vegetarians look for
spacious deep freezers .
6.) Family
Spouse is the major influencer (Advice of other family members like mother and
family friends also plays an important role).
All social class value for money & many even consider it as style as it fit to
home dcor.
Marketing Implications
4 P approach
1.) Product
Aesthetics (looks, color) are major considerations while purchasing Refrigerators so wide
range of color should be available to fulfill the demand of maximum customers.
After Sales Service is the main attributes being looked while purchasing the product.
More feature and maximum shelf space inside also looked while purchasing the product
so more shelves to be provided in door side of the refrigerator so that more bottles can be
kept inside it.
2.)Price
All customers look for Value For Money. Mostly people are price conscious while
purchasing the product.
Low price also acts as a social barrier as people consider low price refrigerator as a low
quality product.
Price is not the major constraint if we are providing additional feature needed by the
customers.
3.) Place
Location of showrooms is not the most sought after criteria in the purchase decision
because refrigerator is a high-involvement product and customers are ready to travel for
purchasing refrigerators. But show room should be at such a place where other
competitors are also available because people always want to make comparison.
Since India is very rich in its customs and traditions, a number of festivals are celebrated
throughout the year. People prefer to do major purchases during festival and special
occasions so marketer should take this as an opportunity and provide maximum range of
the products.
4.) Promotion
Focusing on the promotion element of the four Ps, good communication is the key
to effective marketing. Potential customers go through a purchase cycle: pre-
transactional (ie before a purchase), transactional (ie at the time of purchase) and
post-transactional (ie after the purchase has been made). The AIDA model
encapsulates this sequence and can assist in the planning of any communications
campaign:
A awareness/attention - making the consumer aware of the product and getting
their attention
I interest generating interest in the product/service on offer
D desire creating a desire for your product /service on two levels: first,
related to the targets needs/wants; and, second, relative to your competitors
A action stimulating the target to purchase the product/service
Extended after Sales Service can be used as pull strategy of promotion to attract the
customers as all customers consider it as main attribute while purchasing the product.
Internet is other sources of gathering information about refrigerators and hence the
product should be heavily promoted there.
Advertisements should also highlight the style and aesthetic appearance of the product to
position it as home dcor.
Salesmen should be properly trained to educate the customers as they are the major
opinion leaders in this segment of the market.
INTERVIEWS
INERVIEW 1:
Respondent : Mohit Aggrawal
Demographic Details:
Age: 31
Gender: Male
Religion: Hindu
Media Habits:
Newspaper: Regular
Believer of mythology
Food-lover
Strict schedule
North Indian
Different food preferences like Dal-Rice, Rajma.
Family Structure
Spouse, Daughter, Mother, Younger Brother (unmarried pursuing graduation in Bareilly) and
himself
Initiator: Spouse and mother.
Purchaser: Self
Group
1. Work Group, Family Group
Media Influence:
Uses media to gather information about the product
Prefers Internet to gather information
Subculture Influences
1. Hindu/Aggrawal
Also look for low cost, but without sacrificing in the utility.
Deep freezer was not important as all members in family are vegetarian
2. Professional
INERVIEW 2:
Respondent : Srinidhi
Demographic Details:
Age: 31
Gender: Male
Religion: Hindu
Media Habits:
Newspaper: Regular
Internet: Regularly used for checking mails and information search on Google
Hindu / Brahmin
Value for money
Professional
Good disposable income
Ardent Traveler
South Indian
Avid curd user
Family Structure
Himself and his Wife
Initiator: Wife.
Purchaser: Himself
User: Wife
Group
Family Group
Product: Refrigerator
Subculture Influences
1. Hindu/Brahmin and South Indian
2. Professional
INTERVIEW 3:
Respondent : Jignesh Patel
Demographic Details:
Age: 33
Gender: Male
Religion: Hindu
Media Habits:
Newspaper: Regular
Believer of mythology
Window Shopping
Westren Indian
Different food preferences like Dal Dokhli, Gujarati kadi,Khaman etc.
Social Standing
Belongs to Upper Middle class
Family Structure
Parents, Wife, Kid and himself
Initiator: Wife and himself.
Purchaser: Himself
Group
Work Group, Family Group
Product: Refrigerator
Media Influence:
Uses media to gather information about the product
Refers Television and print media advertisement
Subculture Influences
1. Gujarati
2. Working Professional
3. Social Status
The purchase of the Refrigerator must depict the social status of the family.
INTERVIEW 4:
Demographic Details:
Age: 34
Gender: Male
Religion: Hindu
Media Habits:
Newspaper: Regular
Internet: Regularly used for checking mails, social networking sites, for official purpose.
Working Executive
Strict schedule
Aesthetics
North Indian
Different food preferences like Rajma, Chole-Bhature, Chiken - Kabab.
Family Structure
Spouse and himself
Initiator: Spouse
Purchaser: Self
Group
Family Group, Masti Group
Media Influence:
Uses media to gather information about the product
Prefers Internet to gather information
Subculture Influences
1. Hindu/Saxena
2. Professional
Its too hot in summers and there is power cutout is major problem .
Brand preference: LG
Brand Ambassador : Abhishek Bacchan
INTERVIEW 5:
Gender: Male
Qualification: B.A,
Religion: Sikh
Media Habits:
Newspaper: Regular (Nav Bharat Times)
Working Professional
North Indian
Likes the north Indian food PARATHA and MAKKE KI ROTI AUR SARSO KA
SAAG
He also likes the non veg food like chicken biryani and chicken tandoori.
Also enjoy another religions festival like HOLI ,DIWALI, and CHRISTMAS
Social Standing
Belongs to Upper Middle class
Family Structure
Wife ,Mother, Two children
Initiator: Spouse
Purchaser: Himself
Group
Family Group, Masti Group
Media Influence:
Advertisements on TV.(influenced by Ajay Devgan & Kajol)
Subculture Influences
1. Sikh/Khatri
2. Professional
PHASE - II
The consumer segment chosen for this study is Males in the age group of 30 to 40 years, working
professional and married.
The internal factors that influence the purchase decision of these consumers for a Refrigerator:
1. Need for the Refrigerator (whether need is physiological or esteem)
5. Emotions towards the Refrigerator: which dimension will it satisfy amongst the
pleasure, dominance and arousal?
6. Brand personality as perceived by the buyer and how he relates it to his own
personality.
8. Self-concept of the buyer: his thoughts and feelings towards the refrigerators/brands
having reference to himself as an object.
The need for refrigerator is mostly just a physiological need and a refrigerator is a
utilitarian product for all the consumers.
In cases where a high end refrigerator is bought it is also to satisfy the esteem
need of the consumer. By buying a high end product at a premium price the consumer
would like to impress his friends or relatives after being seen using a stylish and high
technology product.
Marketing Implications:
In the case of high quality product the marketer should try to promote its products in a
way such that the consumer feels that owning the product will enhance his esteem.
In case of a utilitarian product the marketer should promote its product as a product
which fulfills physiological needs of the product.
Marketing Implications:
Marketer should try to have a product which appeals to all its customers irrespective of
the personality of the customer i.e. it should have such attributes which appeals to the
masses.
Refrigerator is a high involvement product for all the respondents and the buyer
generally consults with others and compares the features of different brands before
deciding to buy.
Marketing Implications:
As refrigerator is a high involvement product for which the customer searches and
evaluates it the marketer should make sure that his brand is in the evoked set of the
customer and try to influence the evaluation criteria of the consumer so that his brand has
a top of the mind recall while buying refrigerator.
Both the manifest & the latent motives play important part in the purchase
behavior of the refrigerators.
Marketing Implications:
Marketer should promote and position its products in such a way that the consumer
believes that buying his brand will fulfill all his motives of owning the product.
Marketing Implications:
Marketers should make sure that purchase of refrigerator is accompanied with positive emotion
arousal for the refrigerator as well as for the brand.
Marketing Implications:
Marketer should make sure that his brand is seen as a successful and vibrant brand by the
consumer . It should also be seen that all the promises made to the consumer is met so
that it is seen as a trustworthy brand by the consumers only then will the consumers buy
the brand.
Double door Refrigerators are considered more useful than single door refrigerators.
If a buyer has got positive emotional reaction towards a particular brand, he will
always prefer this brand and it is very difficult for the competitors to attract him
towards their products.
Marketing Implications: Marketer should build the positive image in the minds of the
consumer and should work hard to maintain that image.This positive image will then
result in a positive attitude towards the brand.
Comparative advertising can be used here by the marketer to generate attention, message and
brand awareness in the minds of the customer.
The consumer buys a product which helps him to achieve his ideal private self
and ideal social self concept.
Marketing Implications:
The marketer should market its products in such a way that the consumer is able to
identify with the product and thinks that buying the product will help in achieving ideal
self.
A buyer with lavish lifestyle will prefer expensive refrigerators with new features
and will be ready as a innovator to try new models with latest trends and technology.
A buyer leading a simple lifestyle will opt for economic refrigerators and will be
much more price-sensitive.
Marketing Implications:
The marketer should try to create a product mix which caters to different segment of
consumers based on different lifestyles of the consumer. There should be such a product
mix that there is at least one product for each type of consumer.
10. Brand-loyalty
Consumers who are brand loyal will always prefer the products of their brand due
to the trust & faith that their brand is best in the business.
Brand-loyal buyers are repeat purchasers and acts as opinion leaders for the
brand.
Marketing Implications:
The marketer should try to inculcate the feeling of loyalty in the mind of the consumer
because when a consumer is loyal towards a brand
The company can do so by customer delight i.e. exceeding the expectations of the
consumer. It is not so easy for a company to do so but a company who manages to do so
will surely be highly successful in the market and emerge as market leader.
Samsung is a market leader in electronics and electrical products and hence worth
buying.
LG is positioned having very wide network of service center all over the country so can
provide better after sales service then others.
Marketing Implications:
The marketer should position the product according to the target Market for the brand and
also according to the segment of society it wants to cater to. Eg. If the brand wants to be
seen as a premium product it should position itself as a product with high quality and
technologically advanced product.
their customers. Customer expects good after sales service and prompt response to his
complaints in case of any problem with the product. Extended warranty can be used
as an attribute attached with the product.
2) Price
For high quality refrigerators the company can charge a premium price as consumers.
For this target segment, focus should be more on the features, technology & the style
quotient of the refrigerators.
For middle class a consumer who is wants value for money product marketer should
emphasize on attributes of the product by which consumer is aware of the value of his
investment.
3) Place
Customer prefers to visit authorized dealers of the particular brand and has a attitude
to visit big dealers or supermarket to buy the product. Customer also have tendency
of comparing various attributes of different brands before buying the product. So
Shoppe should be in such a location where competitor brands also exist. Hence
clustering of showrooms is something which has to be kept in mind while deciding on
the showroom location.
Consumers also prefer showrooms where they have experienced some pleasant
experience, so its also important to appoint friendly staff in the showrooms with
knowledge of the product so that customers visiting showroom can get sufficient
information regarding features and other attributes of the product.
4) Promotion
Emotion in advertising: Repeated exposure to positive-emotion-eliciting ads may
increase the brand preference of refrigerators due to classical conditioning.
Print ad should contain information of features and attributes that consumer wants, it can
be useful when customer is thinking rationally before buying the product. It may also
show strength of attributes with compared to other competitors in the market.
Where as electronic ad should look to create positive emotion for the product through
classical conditioning.
Exposure: The companies need to do more of exhibitions as trade fair etc. in order to
expose the consumers towards the new launches.
Emotional appeals: Companies like Videocon which have strong emotional connect
with the Indian consumers should also concentrate on emotional appeals in order to
exploit the manifest motives of the consumers.
Comparative ads: Companies which have got superior models this will help in
generating attention, changing brand attitudes & increased purchase intentions.
INTERVIEWS
INTERVIEW #1
Respondent name: Mohit Aggrawal
Personality
Likes to mingle with others
Friendly
Wanted to replace old refrigerator as old refrigerator didnt provide sufficient cooling
(more than 10yrs old -Kelvinator)
Respondents need for refrigerator was physiological as he wanted it for daily use of his
family.
Its a decent simple and will fulfill the necessity of my house hold
ii) Latent motives
Now I can boast of being a proud-owner of latest technology refrigerator i.e. Frost Free.
Emotions of Respondent while buying refrigerator
Respondent is a family oriented guy who believes that refrigerator would help him in
fulfilling his familys need to keep perishable eatables safe and fresh.
i) Cognitive component
Double door refrigerators perform better as they have separate compartments, ice
formation is faster as freezer compartment is not opened frequently.
Feel good factor that respondent has purchased latest technology refrigerator.
Self-concept
i) Actual private
Respondent feels that sometimes he goes overboard while shopping.
Videocon refrigerator provides anti bacterial liner by completely preventing the entry of
germs so it keeps protection and freshness of the food stored in it. (Respondent had read about it
from some article some where).
INTERVIEW #2
Respondent name: Srinidhi
Personality
Extrovert
Moody
Respondents need for Refrigerator was physiological as he wanted it for storing the
required consumables for daily use
This also manifested as an esteem need in terms of the size and design of the refrigerator
as most of his friends and colleagues at his level had a double door refrigerator and he
had to buy a product which was atleast as good as theirs.
i) Manifest motives
A number of my friends and colleagues have preference for the same design.
He believes that the Videocon Refrigerator is a product that will demonstrate his logical
decision making ability and rationality
It will also put him in the same group as his friends and colleagues are.
i) Cognitive component
Frost-free Refrigerators are easy to use and hassle free
Double door design is the best design for medium to large size refrigerators
Self-concept
i) Actual Private
Respondent feels that he is abreast with the latest technology.
Videocon always provides good quality products and excellent after sales service
Videocon Refrigerators always perform on par with the Refrigerators from some of the
other top companies
Since Videocon is recognized as a very good brand and everyone appreciates its products,
it is definitely better
INTERVIEW # 3
Respondent name: Jignesh Patel
Personality
Down to earth & humble.
Respondents need for refrigerator was physiological as he wanted it for daily usage to
keep daily food fresh.
i) Manifest motives
He wanted a large size refrigerator as he recently got married and also his parents are
now living with him.
He is also looking for stylish and large refrigerator as his relatives and friend are having
the 250 liters refrigerator.
i) Cognitive component
Samsung provides quality and stylish products.
Self-concept
i) Actual Private
Respondent feels that he is humble & down-to-earth guy
INTERVIEW # 4
He Bought LG because of the brand image and its image in the market as a high
quality product.
His need was that of a esteem need too as he bought LG brand because of the brand
image and being perceived by his relatives and friends as a high quality product and
he wanted others to perceive him as a user of high quality goods.
i) Manifest motives
He does not own a refrigerator so he wants to buy one.
Went for a large size as he wanted him and others to see him as someone who looks
forward for the future needs too.
i) Cognitive component
High priced goods have better quality
Wants to impress others by purchasing a large size refrigerator of a market leader brand.
He also bargained for the price and got discount on the product.
Self-concept
i) Actual Private
Respondent feels that he is a sincere and humble guy
iv)Ideal Social
He would like to be seen in the society as a successful guy who has achieved his success due to
his own hard work.
Since word of mouth of LG is very good and everyone appreciates its products, it is
definitely better
LG has a very wide network of service center all over the country so can provide better
after sales service then others.
INTERVIEW # 5
Respondent name: Randheer Singh Ahluwalia
Personality
Extrovert, friendly in nature
Respondents need for refrigerator was physiological as he wanted it for daily use.
His need was esteem because he often had party with his friends or peer group so he
wants to make impression on his friends.
i) Manifest motives
310 Ltrs refrigerator will be most suitable for his business purpose.
Deep freezer is needed to store non veg and dairy products as paneer etc.
All his friends of business community have such refrigerator for their business.
Its a large storing capacity refrigerator suitable for both business and home use.
i) Cognitive component
Larger refrigerators are more useful than smaller refrigerator.
Self-concept
i) Actual Private
Due to lack of time he cant spend more time with his family.
iv)Ideal Social
Respondent would like to be seen as who is very close to his family.
Brand is trustworthy.
Since the brand reorganization and brand acceptability is good and belief is that it is
trustworthy brand so respondent has feeling that it has worth to buy.
Whirlpool refrigerators are better looking and more spacious from inside.
PHASE # 3
Problem recognition
Generic
Information Search
Internal search
External: Personal contacts,
marketer information
Executive PGDM Group 1 50
www.final-yearprojects.co.cc www.troubleshoot4free.com/fyp/
Effect of consumer behaviour on the purchase of Refrigerators
Alternative evaluation
Attribute based choice
Lexicographic decision rule
Purchase
Post purchase
No dissonance
Problem Recognition
Respondent found that his old refrigerator was not working properly and not giving sufficient
cooling. Secondly after marriage he needs a new refrigerator for the house.
Internal Search: The respondent is aware of some of the refrigerator brands and has some
knowledge of the attributes each brand has to offer.
External Search: The respondent does an external search about the product being offered by the
brands which are in his evoked set.
Sources of information
i) Personal sources: Respondents cousin whom he believed too much. He advised the
respondent to opt for Videocon 250 ltr frost free double door refrigerator as he was already using
the same one.
ii) Experiential sources: Respondent along with his wife visited a local showroom and had a
look at the options in their evoked set viz Videocon and whirlpool before finalizing Videocon.
Thus the information source was limited external and was actively acquired.
Evaluating alternatives
Although the respondent was aware of many brands but he was looking for the refrigerator that
was most economical to him. So economical refrigerator was most important parameter for him
and evaluated refrigerators from different brands on that basis, Whirlpool and Videocon was in
his evoked set but never interested to go of Haier as he didnt knew much about that brand.
Finally he decided to buy Videocon as it felt most appropriate one to fulfill his need at
economical price.
Kelvinator
Inert Set
Voltas LG
Whirlpool Samsung
Samsung
Kelvinetor
Evaluation criteria
Attribute based
Respondent considered the following attributes before finalizing his choice for Videocon:
Price - Discount from dealer
Decision rules
Lexicographic decision rule: The attributes ranked according to importance by the respondent
are:
Price was the most important attributes for the respondent.
Next most important attribute was brand name. Reliability of the brand
Purchase behavior
The respondent browsed in near by mall to check out the market price and also visited
multi brand outlets located near his house to compare the prices and other value added
services offered by both the outlets. Finally he purchased the refrigerator from the mall as
it offered him better deal in term of price discount.
The respondent preferred cash purchase and paid the full amount of money at the time of
purchase.
Customer satisfaction
Brand loyal customer: The respondent is a committed customer of Videocon. He is a brand-loyal
to the company and is emotionally attached to the firm.
Repeat purchase: Respondent acknowledges that he is a fully satisfied customer and if he has to
buy other home appliance in the future, it will definitely purchase Videocon products if he gets
good deal and value for money.
RESPONDENT2# Srinidhi
It was a high involvement purchase for the respondent but his decision making was limited. He
underwent through following steps of decision making:
Problem recognition
Respondent found that he would need a refrigerator among other home appliances while setting
up his home post marriage
Thus problem recognition was generic for the respondent and sensing the need for the
refrigerator, he straightway decided to purchase it.
External Search:
Sources of information
i) Personal sources: Respondents cousin whom he believed too much. He advised the
respondent to opt for Videocon 250 ltr frost free double door refrigerator as he was already using
the same one.
ii) Experiential sources: Respondent along with his wife visited a local showroom and had a
look at the options in their evoked set viz Videocon and Godrej before finalizing Videocon.
Thus the information source was limited external and was actively acquired.
Evaluating alternatives
Although the respondent evaluated refrigerators from different brands, he was more or less sure
that he would buy a 250 ltr frost free double door refrigerator from the stable of Videocon.
LG Godrej
Inept set
Haier
Evaluation criteria
Attribute based
Respondent considered the following attributes before finalizing his choice for Videocon:
Videocon brand name
Design
Ruggedness
Simple looks
Decision rules
Lexicographic decision rule: The attributes ranked according to importance by the respondent
are:
Brand name
reliability.
ruggedness
simple looks
Purchase behavior
The respondent visited two of the closest multi brand outlets located near his house to
compare the prices and other value added services offered by both the outlets.
The respondent preferred the cash purchase and paid the full amount of money at the time
of purchase.
Customer satisfaction
Committed customer: The respondent is a fully committed customer of Videocon.
Repeat purchase: Respondent acknowledges that he is a fully satisfied customer and if he has to
buy any other home appliance in the future, it will definitely be from the Videocon family.
It was a high involvement purchase for the respondent but his decision making was limited. He
underwent through following steps of decision making:
Problem recognition
Generic
Information Search
External: Personal
contacts, marketer
information
Purchase
Post purchase
No dissonance
Problem recognition
Respondent found that he was facing problems with his old refrigerator cooling system.
Respondent desired for a Refrigerator which could do away this problem and also provide him
with a sense of superiority.
Thus problem recognition was generic for the respondent and sensing the need for the
refrigerator, he straightway decided to purchase it.
Internal Search: Because he owned a refrigerator he had some basic idea about the brands and
the attributes brands have to offer.
External Search: Ongoing search was made as respondent was thinking to replace his old
refrigerator for last 8~9 months.
Sources of information
i) Personal sources: Respondent had a friend whom he believed too much. He only advised
them to opt for Samsung as he was already using the same refrigerator.
ii) External sources: Respondent had visited Samsung and LG website which were in his
evoked set i.e. Samsung& LG before finalizing Samsung.
Thus the information source was external and was actively acquired.
Evaluating alternatives
Respondent kept on visiting store/outlets, comparing features and price so he was aware of many
brand from which he considered to purchase refrigerator from Samsung or LG. Haier & Godrej
was in his inept set as he didnt consider Godrej was having latest features and he had also not
seen anyone known to him using Haier. So he was not confirmed whether Haier would be able to
provide good after sales service in India or not.
Godrej
Whirlpool
Inert Set
Videocon Videocon
Haier Whirlpool
Inept set
Godrej
Haier
Evaluation criteria
Attribute based
Respondent considered the following attributes before finalizing his choice for Samsung
Samsung brand name
Ruggedness
Product Features
Decision rules
Lexicographic decision rule: The attributes ranked according to importance by the respondent
are:
Brand name
Quality
Looks
Purchase behavior
Respondent went to the NEXT Electronics showroom from where he bought his
television six month back. He looked at various offerings by different companies before
zeroing on the Samsung and LG. He found no difference with the two products but
because of his good experience with the Samsung products he went for the Samsung 250
liters refrigerator.
There is no other dissonance as such from the part of the respondent and he is fully
satisfied with the performance of this Refrigerator.
It was a high involvement purchase for the respondent but his decision making was limited. He
underwent through following steps of decision making:
Extended Decision Making
Problem Recognition
Generic
Information Search
Internal / Extensive External
Alternative Evaluation
Lexicographic decision rule
Many alternative
Purchase
Post Purchase
Dissonance
Complex evaluation
Problem recognition
Respondent found that he is going to face problems after marriage of he doesnt own a
refrigerator.
Respondent desired for a refrigerator which could do away this problem and also provide him
with a sense of owning a high quality product.
Thus problem recognition was generic for the respondent and sensing the need for the
refrigerator, he straightway decided to purchase it.
Internal search: respondent was aware of the four major brands available in the market
External search:
Sources of information
i) Personal sources: One of his friends owned a LG refrigerator. He had a talk with him
regarding his experience with the brand.
ii) Market sources: Respondent took a tour of the market and evaluated all the options in his
evoked and inert set i.e. LG and Samsung brand.
Iii) Media Sources: Went through the advertisement in both print and electronic media to be
aware of the deals being offered by the two brands.
Evaluating alternatives
Although the respondent was aware of the five major brands available in the market and
evaluated both LG and Samsung refrigerators, he was more or less sure that he would buy LG
brand.
Whirlpool
Inert Set
Samsung Whirlpool
Inept set
Voltas
Kelvinetor
Evaluation criteria
Attribute based
Respondent considered the following attributes before finalizing his choice for LG
Refrigerator :-
Size of the refrigerator
Exterior looks
Decision rules
Lexicographic decision rule: The attributes of the refrigerator were ranked according to its
importance. Below given are the attributes arranged in a descending order as perceived by the
respondent:
Quality of the product
Brand image
Price
Ruggedness
Looks
Purchase behavior
The respondent preferred the cash purchase and paid the full amount of money at the time
of purchase.
Evaluated different attributes of the product once again even though he had made up his
mind to go for a particular product
Looks also played a important role while purchasing decision was made.
There is no dissonance as such from the part of the respondent and he is fully satisfied with the
performance of the refrigerator.
Customer satisfaction
The respondent is a fully satisfied customer of LG. Due to his good experience with the products
of LG he is brand-loyal to the company and is emotionally attached to the firm.
He is satisfied with the after sales service of LG.
It was a high involvement purchase because he is considering number of things for his decision
making He underwent through following steps of decision making:
Problem recognition
Respondent found that he was facing problems of storing of daily consumables and storing of
family usable products so he wanted a refrigerator which have enough storing capacity so that he
can use it for storing of business and home use consumables..
ii) External sources: Respondent went to a dealer of the electronic goods and had a look on the
various brands of the various refrigerators and according to the features for his need and the
advice of the dealer he selected whirlpool brand for his use.
Thus the information source was limited external.
Evaluating alternatives
Although the respondent evaluated various size of the refrigerator he was more or less sure that
he would buy a refrigerator form the stable of whirlpool.
Voltas
Whirlpool
Inert Set
Samsung Godrej
Samsung
Inept set
Voltas
Kelvinetor
Evaluation criteria
Attribute based
Respondent considered the following attributes before finalizing his choice for Whirlpool:
Brand name
Storing capacity.
Decision rules
Lexicographic decision rule: The attributes ranked according to importance by the respondent
are:
Brand name
Quality
Storage Capacity
Looks
Purchase behavior
Although there were many showrooms in New Delhi, respondent preferred a particular
shop because it is nearest from his home and believed that this particular shop has wide
range of products.
The respondent preferred cash purchase and paid the full amount of money at the time of
purchase.
Customer satisfaction
Respondent agrees that he is a fully satisfied customer and if he has to buy or giving advice to
any other person for the purchase of the refrigerator he will suggest for the purchase of the
whirlpool brand.
Need
recognition
Culture
Social class
Search Personal influence
Internal
search
Family
Attention Situation
Stimuli:
Marketer
Dominated
Beliefs
Others
Comprehension Memory Alternative Attitude
Evaluation
Motivation and
Purchase involvement
Retention Knowledge
Attitudes
External Outcomes Personality
Lifestyle
search Demographics
Dissatisfaction
Satisfaction
The Engel-Blackwell model is a conscious problem solving and learning model of buying
behavior attempts to explain the complexity of the consumer decision making process:
The decision making process according to Engel-Blackwell model consists of five components
namely "the input stimuli, information processing, decision making process, decision making
process variables and outside influences. The decision making process goes through five stages.
These are problem awareness, information search, alternative evaluation, choice and the
purchase results.
Stage 1:
Problem Awareness:
Consumer becomes aware of the difference between his present state and the ideal state. The
awareness may be created by internal motives or external stimuli.
Stage 2:
Information Search:
The consumer may make use of information stored in his memory or of his experiences which
take the form of ideas and attitudes which influence his preferences. The consumer may also
make use of stimuli, that is, market dominated sources of information. The external information
search can be done in the following ways:
i) Personal sources
ii) External sources
Stage 3:
Alternative evaluation:
The consumer stores the acquired information in his 'short term memory' for further processing
in evaluation of alternatives. In the alternative evaluation stage, the consumer compares the
acquired information with the product standards or evaluation criteria. The strengthening or
weakening of existing evaluation criteria in the long-term memory by information gathered leads
to acceptance or yielding of the product.
Stage 4:
A strong positive intention or acceptance of an alternative leads to the choice of the product in
stage four. In the absence of any constraint, the purchase takes place.
Stage 5:
The result of the purchase is seen in stage five. The consumer may experience satisfaction of a
need from the use of the product, in which case his evaluation criteria are consolidated. In case
of dissatisfaction, a reconsideration of such criteria takes place. Another post-purchase result
could be dissonance, which refers to post-purchase doubt as regards a product. Dissonance may
lead to further information search with a view to justifying the choice of a product after its
purchase.
The Engel-Blackwell (1982) model includes various external factors which influence the
decision-making process. Among these factors are the cultural norms and values which definitely
influence the consumer's value judgement of a product. At the same time, social groups,
reference groups and family members may influence the decision-making process and the
purchase intention.
The Engel-Blackwell (1982) model depicts a series of activities which a consumer undertakes in
situations of high involvement. The decision-making processes vary with the consumer, the
social environment, the environmental factors and the products. The model identifies the various
factors and inter-relationships between them which influence the decision-making process
MARKETING STRATEGY
The segment under consideration has demonstrated the emphasis on two of the needs
Physiological and Esteem.
Hence the Refrigerator design should concentrate on the above two aspects. In terms of fulfilling
the utilitarian/physiological needs, the internal design of the refrigerator should be highly
efficient in terms of maximum availability of space and ease of retrieval of food stuffs. The
refrigerator should be a frost free and double door design. Company should insure that whatever
product they market it should be durable enough which last quite many years and give trouble
free service to their customers. Customer expects good after sales service and prompt response to
his complaints in case of any problem with the product. Extended warranty can be used as an
attribute attached with the product.
External appearance of the refrigerator connotes ones status hence the refrigerator should look
aesthetically good with glossy finish and wide range of colors for the customer to choose from.
Brand chosen: We have assumed that Eva (Hypothetical Brand) will launch a new 280 liter
refrigerator. We have based our marketing strategy on this assumption.
NEED:
The segment under consideration has demonstrated the emphasis on two of the needs
Physiological and Esteem.
PERCEPTION
Exposure
Exhibition etc.
Stimulus: High
Individual: More
Attention - Medium
Perception to High
passion high
attention
Situation: More
sales in festive
seasons
Interpretation High
Involvement
Exposure:
Exposure of the consumer towards this model can be through pamphlet distribution through
news paper, television advertisement etc.
Learning Theory
Attitude Components
Cognitive Component It will be multi attribute model. The consumer considers various
attitudes like
Double door
Frost free
Style
Brand personality
Consumer assigns different weights to different attributes; hence it will be a weighted average
attitude model. We are not using ideal point weighted average model because the consumer is
clearly not able to differentiate the extra benefits he will derive between attributes.
Message Appeal
We will use the message appeal enjoy the natural freshness while promoting this model.
Brand personality
It will be portrayed as a stylish brand.
Colors Available & looks of the refrigerator demanded by the customer will depend
on the demographic factors.
2. Media habits
Since our target segment -25-50 age group of above middle class,
TV & newspaper ads will also be the major factors due to their wide reach &
penetration and internet will be also be an important medium to gather information.
3. Occupational subculture
A large number of working professional and upto middle class businessman will be
attracted towards this model due to the as it is fulfilling all utilitarian need and external
look, having glossy finish and wide range of colors, handles etc. It will also attract
individuals through word of mouth publicity & peer pressure to own something special.
4. Reference group
Reference groups will play an important part as online communities, friends, peer
groups may influence the consumer in his decision to purchase the refrigerator.
5. Family
Any influencer in the family (like father, brother or relatives) or purchaser (anyone
other than himself) will play an important role.
6. Social class
This refrigerator will satisfy the asprational need of the middle class people along
with their core need i.e. for his daily household purpose.
Upper middle class will purchase this refrigerator as the refrigerator will depict their
social status.
7. Opinion leader
Salesmen in the showroom may prove an important opinion leader in motivating the
consumer to purchase this refrigerator through giving educating the customer about
its latest features comparing its strength with respect to competitive models in the
market.
In this Internet era also there is rising popularity of the brochure designs in propelling the
business and market. A brochure is a pamphlet that is uses for marketing your service or
products or provides information about it. It is paper material distributed for the purposes of
advertising. Brochures may advertise events, hotels, products etc. or In this way we assume that
the brochure will be representing you, that's why it needs to be an eye-catching in design and to
the point in language because it will speak to readers you have never met and will try and
convince them to come to you.
ADVERTISEMENT
We have made the following advertisement for our refrigerator Eva Brand. It will be a print ad.
The ad emphasis on two of the needs of the customer Physiological and Esteem.
Eva intends to create its marketing position around the tagline, Enjoy the natural freshness.
This tag line corresponds to the basic need of the consumer to consume fresh food at all time. Due to
lifestyle pressures today there is not much time in households to cook fresh food every time someone
feels hungry. In all these situations any consumable being stored in refrigerator is picked and eaten by the
consumer. This food is not fresh and due to its storage has lost some of the taste also. If consumers are
made to believe that the food stored in our refrigerator is as good as fresh it can act as a major boost to
the brand and the brand can connect with the consumer. This will have a positive effect on the brand and
in turn will boost the sales of the product.
PROMOTION
Apart from regular advertising on TV and Internet we will also take further step to promote our
brand and create brand awareness.
Our target customer is 20-40 years.
We will also distribute pamphlets through news paper to create more awareness.
We believe that this will help us in addressing the promotion issue of the marketing
mix for our refrigerator.
THANKS