Marketing Project Synopsis.

TO,
B. Mohan Kumar
Faculty, Marketing
School of Law
NMIMS, Hyderabad
From,
Sai Amith
B.B.A. LL.B.
81021319024
Title:
Impact of reference groups on purchase of selected brands of
electronic home appliances in Hyderabad
Abstract:
A Reference group refers to a group of people you refer to,
while making buying decisions. It is a group that serves as a
reference point for an individual for his/her beliefs, attitude
and behavior. This group consists of two or more individuals
who share a set of norms, values or beliefs and have a defined
relationship such that their behavior is interdependent.
Reference groups are basically small in size and differ from
one individual to another. Family members, Relative, Friends,
Colleagues and other close acquaintance are usually termed as
Reference Group. Common organizations like Colleges,
Schools, Police academies and membership firms also fall
under reference group.
Influence of reference groups on consumer behavior:
1. An individual information and experience
2. Credibility of the group
3. Attitude towards the group
4. The nature of the product
The present study is conducted to explore the impact of
reference groups on purchase of electronic home appliances in
Hyderabad. The purpose of the study is to provide an
overview and to comprehend the role of reference group on
consumer purchasing behavior. Demographic variables, have
been used, which is of great influence in on the buying
behaviors of consumers. The A study has been conducted with
simple random sampling through questionnaire.
Keywords: Reference groups, purchase behavior, electronic
home appliances
Introduction:
Reference groups have diverse impacts on purchase intention.
They motivate consumers to purchase both high and low
product involvement. Utilitarian (to meet basic needs, finding
greater convenience, seeking variety, seeking greater quality
of merchandise and searching for better prices) shoppers that
use information given by reference groups have higher
purchase intention. Females are mostly taken over by the
reference groups. People in Hyderabad city has pertinent
knowledge about diverse brands of the Electronic Home
Appliances. Knowledge about Electronic Home appliances
differ based on the age level. The demographic factors like
age, gender, marital status, qualification, occupation, income
and family type discriminating the buying behavior of home
appliances is based on this study the awareness level of home
Electronic Home appliances are moderate in Hyderabad City.
Review of Literature:
Vijayalakshmi, S and Mahalakshmi, V (2013) have made
an attempt on, An impact of consumer buying behavior in
decision making process in purchase of electronic home
appliances in Chennai (India): an empirical study, which
presents consumer behavior isthe study of individuals, groups,
or organizations and the processes they use to select, secure,
and dispose products, services, experiences, or ideas to satisfy
needs and the impacts that these processes have on the
consumer and society. It blends elements from psychology,
sociology, social anthropology and economics. It attempts to
understand the decision-making process of buyers, both
individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioral
variables in an attempt to understand people's wants. It also
tries to assess influences on the consumer from groups such as
family, friends, reference groups, and society in general. This
empirical study contributes to a vital comprehension of the
impact of dissimilar factors on consumer buying behaviors.
The numerous independent variables in electronic home
appliances market in India are deeply analyzed. The factors
that are affecting the consumer behavior in electronic home
appliances markets in India have been taken as the empirical
study of this research. The key findings of this study
designates that, overall, the set of self-determining variables
are weakly associated with the self-determining variable.
Kotler and Armstrong (2001), consumer buying behaviour
refers to the buying behaviour of the individuals and
households who buy the goods and services for personal
consumption. Consumers around the world are different in
various factors such as age, income, education level and
preferences, which may affect the way they avail of goods and
services. This behaviour affects how products and services are
presented to the different consumer markets. There are many
components, which influence consumer behaviour namely:
cultural, social, personal and psychological.
Objectives:
1. To study the impact of reference groups on purchase
behavior.
2. To analyze the effect of reference groups on choosing
particular
brands of home appliances.
3. To know the relative role of reference groups effecting
choosing and
purchasing behavior of electronic home appliances, through
demographic variables.
Purpose of the study:
The purpose of this research is to analyze the impact of
reference groups towards the purchase of selected electronic
home appliances, in Hyderabad, in terms of demographics.
Believing that most of the households in Hyderabad now, use
electronic home appliances due to the high technological
advancement.
Scope of the Study:
The scope of the study is restricted to only a few selected
brands of electronic home appliances that are purchased
through the impact of reference groups and it is also limited to
Hyderabad only.
Hypothesis of the study:
1. There is a relationship between references groups and
consumer buying behavior.
 2. There is relationship between consumer behaviour and
selection of selective brand of Home Appliances.
Methodology of the study:
For the research sampling, Simple Random Sampling will be
used and a questionnaire will be circulated among the selected
number of respondents, in order to understand the impact of
reference groups over the purchasing behavior of consumers.
Implications:
By conducting such a study, we will be able to understand
how the purchasing behavior of consumers is being influenced
by a certain group of people. Since a lot of consumers are
being influenced by the reference groups, this study would
help firms understand the impact created by reference groups,
so that they can make changes in their marketing strategies,
like endorsing highly influential groups, etc., to increase sales
and attract customers.
Brands: Whirlpool, LG
Products: Microwave, Refrigerator
References:
1. Vijayalakshmi, S and Mahalakshmi, V (2013) An impact
of consumer buying behavior in decision making process
in purchase of electronic home appliances in Chennai
(India): an empirical study, Elixir Marketing
Management, pp.15267- 15273.
2. Kotler, P., & Armstrong, G.( 2001): Principles of
marketing, Prentice Hall, London.