Professional Documents
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Consumer Behavior While Purchasing A Black Refrigerator From Sharp
Consumer Behavior While Purchasing A Black Refrigerator From Sharp
Group: IM20
ELSLSCA – Egypt
December 2018
Consumer Behavior
Dr Reham Farouk
Prepared and submitted by:
1. Amin Elkadim
2. Alaa Elbaz
3. Tabarak Abd Elkareem
4. Ahmed Mady
5. Esraa Mohamed
We would like to thank Dr Reham Farouk for her effort during our class and her effort to
help us with knowledge and directions through the semester and helping us in choosing
our individual presentation and also in this project.
Sharp is dedicated to improving people's lives through the use of advanced technology
and a commitment to innovation, quality, value, design, and the value we place upon
Corporate Social Responsibility, our on-going commitment to strong business ethics, and
the numerous awards won by our innovative products.
In 1998 Sharp established "The Sharp Business Standards and Action Guidelines" as the
standard of conduct to realize our Business Philosophy and Business Creed of "Sincerity
and Creativity". Since then, Sharp has made revisions several times, taking into
consideration changes in the business environment, such as the viewpoint of CSR.
Sharp has instituted "the Sharp Group Charter of Corporate Behavior" as principles of
corporate action applied uniformly across the entire Group
Sharp does not seek merely to expand our business volume. Rather, they are dedicated
to the use of our unique, innovative technology to contribute to the culture, benefits, and
welfare of people throughout the world.
Its strategy may be brave, but the question remains as to whether technology brands that
have fallen out of fashion like this can ever really regain lost ground, particularly in a
category that is all about 'the next big thing'.
'For companies that have fallen out of favor, it is important to build a distinct image,
because consumer technology markets are now, more than ever, linked to the fashion
and stylistic preferences of individuals,' he adds.
According to Euromonitor, TVs still offer brands a gateway into the home. With this comes
the coveted opportunity to forge an emotional connection. From there, brands hope to
lure consumers to their broader ranges - which, for Sharp, includes fridges, microwaves
and solar panels
Prospects
Demographic Factors Grow Refrigeration Appliances In Egypt:
The vast increase in the population and large, new families in Egypt support the growth in
demand for refrigeration appliances. Family and friends gather at least once a week all-
year-round as well as on special occasions like Ramadan and feasts, where food plays
an important role.
Competitive Landscape
EL ARABY GROUP
El Araby Group is expected to remain the leading company in refrigeration appliances in
the forecast period. The player benefits by offering locally-produced products in a market
not particularly rich in international brands.
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.
Today with technological advancement human race has achieved what few years back
were impossible. Refrigerator is the source of refreshment to human life.
This papers first goal is to cover the appropriate topics in a manner relevant to the
study of consumer behavior of purchasing a refrigerator.
Its second goal is to always do so with sufficient depth so that the introductory
person gains a solid foundation about the perception of a consumer toward sharp
Refrigerator in view of Egyptian market.
The third goal is to do all of this in an interesting, engaging, and applied way one
that holds persons attention and stimulates them to relate actively to the material at
hand that abound in their experiences. In this report we have tried to find out and
analysis the factors that customers considers in purchasing refrigerator.
For this purpose, we have done a survey based on some questionnaire, and also did the
frequency analysis. From the analysis I found that most of the respondents prefer
Refrigerator Colors. Express your design personality
Our refrigerators are specifically designed with an understanding that with open plan
living, the kitchen has truly become the heart of the home. It is no longer a purely
functional space, but an expression of design and personality. This is why we are proud
to introduce a range with unique colors, finishes, and designs to match any kitchen.
No frost refrigerator with Capacity of 600 Liters and has 5 Glass doors
with the glorious black color with digital touch control panel.
The consumer segment chosen for this study is Females in the age group of 35 to 45
years, working professional and married or newly married, and the social class is
value for money & many even consider it as style as it fit to home décor, they live in
Cairo (Fifth Statement, Rehab, Maadi), Alex, Giza (October).
So, the Primary target group is a family with 4 to 7 members, and the secondary
target group is a newly married.
Research:
According to the Central Agency for Public Mobilization and Statistics (CAPMAS)
The rich class, which starts its income from 300k pounds a year at an average of 25000
pounds per month and ends at 500K pounds a year at an average of 41666 pounds per
month, and these are in the community by 35%, 8.5% in cities and 1.5% in the
countryside.
The primary influencers in the decision making are housewife, neighbor, Friends,
husband, and in the purchase decision will be involved by husband and salesman.
Otherwise, we have other factors that influence the decision to buy the product, so is what
the product features, where the customer can to buy it, how much the price, and finally
how to communicate with the customer before purchase, during and after purchased the
product.
The External factors that influence the purchase decision of consumer in the age group
of 30 to40 for a Refrigerator.
Demographic Details
Prefer Style as it fit to home décor.
Maximum budget allocated for a refrigerator purchase is 50k.
Media Habits
Use media to gather information (i.e. thru advertisements)
Prefer internet to compare features so more & more information should be
available on internet.
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 products
more shelves to be provided in door side of the refrigerator so that more bottles can be
kept inside it.
Price
Low price also acts as a social barrier as people consider low price refrigerator as a low-
quality product, so we have to set the price by value based price method.
Price is not the major constraint because we are providing additional feature needed by
the customer.
Place
House of brand 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.
Brand house is a place where other competitors are also available because people
always want to make comparison.
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 (before a purchase),
transactional (at the time of purchase)
post-transactional (after the purchase has been made)
After we describe the factor that influences on the purchase decision, now we are ready
for explain how the decision making and what is the process
Alternative evaluation:
Respondent considered the following attributes before finalizing his choice
for SHARP Refrigerator, Compare based on:
Brand name
Price of the product
Size of the refrigerator
Color of the refrigerator
Power saving
After sale service
Quality of the product
Post-Purchase
The respondent is a fully satisfied customer of SHARP Due to his good
experience with the products of SHARP she is brand-loyal to the company and is
emotionally attached to the firm.
She is satisfied with the after sales service of SHARP and she can to give advice
to any person for buying the refrigerator.
Communication
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.
Should keep an eye on the feedback been provided by masses in E-commerce sites
and Social media platform.
Internet is other sources of gathering information about refrigerators and hence the
product should be heavily promoted there
Salesmen should be properly trained to educate the customers as they are the major
opinion leaders in this segment of the market, also care with appearance and sales
incentive.
PERSONAL FACTORS
Occupation
Segmentation Variables
Geographic Cairo, Alex
Age: 35 - 45
Demographic Gender: both
Income: high
Psychographic Social class: Middle to Upper-class
People who are willing to pay more to gain more quality
Behavioral
Fashionable and professional people
Active life style oriented that is the people who want to do or want a high end life style
in their life and want relax and high quality and premium quality products in their
homes and kitchens
The personality of the company product is premium and high class also so it targets
people ranging so as to look into the all kind of markets and cover the overall market
of the country or the refrigerator market.
Self-concept
Self-image:
People might have an inflated self-image and believe that they are better at
things than they really are. Conversely, people are also prone to having
negative self-images and perceive or exaggerate flaws or weaknesses.
Our customer “Primary user” she sees herself as an excellent spouse and
friend
Self-esteem
When she compare herself to her friends or one of them and find herself
lacking, it can have a negative impact on her self-esteem, also if they
response negatively to her, by default that will be as a trigger for buying a
luxury refrigerator because she value herself as the best and she wants to feel
better.
Culture
This product is targeted to those consumers who can use this refrigerator to express their
identity to others i.e. they want others to notice of their self-esteem through this
refrigerator.
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
This refrigerator will satisfy the aspirational 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.
SOCIAL FACTORS
Social group:
Reference group
Reference groups are groups that consumers will look to for help in making
purchasing decisions
Friends are one of the most powerful reference group, Also family, Neighbors.
Aspiration reference groups: Such as celebrities
Opinion leaders:
Opinion leaders are usually people who are more knowledgeable about a certain product
or service than the average consumer. As such, opinion leaders can shape how a product
is viewed. Purchase is influenced by Salesmen in showrooms and ccelebrities were an
important opinion leader
Role and status:
There are different roles according to the product, in the refrigerator purchase decision
the husband will be the payer, and the wife is the primary user while the child may exert
strong influence on the color decision.
The wife is the primary user but a daughter will defiantly has a huge influence on the
decision of the black refrigerator
PSYCHOLOGICAL FACTORS
Motivation:
At this level of products that are high end product and cost a lot, the consumer’s need is a
utilitarian need as the costumer seeks a device to control temperature to preserve food
and other dietary products for long time and this requires a large storage capacity
specially with larger family and for a more temperature control features that make the
usage of the device more useful to the consumer.
At this level also the purchasing of such refrigerator is considered as self Esteem needs
or Ego needs that motivated by prestige or appearance in elegant life style even in home
appliances.
Another motivation force for the consumer is the need of uniqueness as this refrigerator is
not like the classic usual shape or function so to satisfy such a need is a great motivation
for the consumer.
Purchasing stylish and elegant color for a big refrigerator is to satisfy the need of being
impressive in front of family and friends especially with high price.
So to choose and purchase the refrigerator consumer tries to search and ask about the
differences of the various products and make visits to retailers and stores for counseling.
Person Factors such as needs of customer and importance of this need in this
period of time, this factors make costumer involve with the the product and
advertisement to evaluate if this product suitable for him or not and the
communication message induce purchasing or not.
Stimulus Factors such as the differentiation of alternatives and communication
content that make the costumer involve in searching for preferences for particular
brand.
Situational Factors such as the purchasing process that involve with purchasing
decisions.
The High involvement of purchasing such a refrigerator may be for the product it self
and comparing the value for the features and may be for variety seeking for new
design and technology and may be involvement for the communication message as
the communication through different types of media make different types of
involvement or may be engagement with the store or company website for purchasing.
Learning Theory
SHARP select cognitive learning theory approaches to views people as Problem-solvers
who actively Use Information from the world around them to Master their environments.
that will be by:
Message Appeal
We will use the message appeal “enjoy the natural freshness” "Extra Saving
Power" "Elegant Refrigerator" while promoting this model and repeated the
messages.
Respondent is a pleasure-seeking who believes that usage of high price goods is
good because she perceives high priced goods as a mark of high quality.
SHARP seeking into development the product and focus on innovation with style.
Customer personality
Extrovert
Friendly in nature
Spendthrift
Innovative and open to experiment
Brand Archetype
Innovation > the Creator
The Creator has a desire to create something new and exceptional, that wasn’t previously
there, and has enduring value.
SHARP are providing every time a new color to keep up with social changes, and to
exceed the customer expectation and always to be the market leader on refrigerator with
stylish design.