CUSTOMER PREFERENCE FOR SUNSILK SHAMPOO

To: Subject lecturer Mrs. H.M.R.P. Hearth

From: P.W.D.N. Rukshala BM/2007/226

DEPARTMENT OF MARKETING MANAGEMENT UNIVERSITY OF KELANIYA

REPORT CONTENT

1.0 INTRODUCTION 1.1 Background 1.2 Research Problem 1.3 Research Objectives 1.4 Research Questions 1.5 How You Will Benefit From This Report

2.0 LITERATURE REVIEW

3.0 METHODOLOGY 3.1 Conceptualizing frame work 3.2 Operationalization of variables

4.0 PRESENTATION OF FINDINGS

4.1 The age ranges of the respondents 4.2 No. of times that the respondents use Sunsilk shampoo per week

4.3 What respondents think about the price levels of Sunsilk Shampoo? 4.4 Indicated levels of agreement for the following statements 4.5 Do you like the colour of currently using Sunsilk shampoo? 4.6 What do you expect by using a shampoo? 4.7 How satisfied are you with Sunsilk to meet your needs? 4.8 What influence you to buy Sunsilk?

5.0 FINDINGS AND DISCUSSION

5.1 What is the average level of preference towards Sunsilk shampoo? 5.2 What is the most significant variable affect for the level of preference? 5.3 What is the relationship between the affected reasons and the level of preference? 5.4 What are the potential benefits that customers expect from Sunsilk shampoo?

6.0 CONCLUSIONS AND RECOMMENDATIONS 7.0 REFERENCE 8.0 APPENDIX

8.1 Questionnaire for Sunsilk Preferred Customers

1.0 1.1

INTRODUCTION Background
This report takes an overview of the research that conducted in order to identify the preference level of customers towards Sunsilk shampoo as a brand.

When it comes to brands of shampoo in Sri Lanka, Sunsilk has been considered as Sri Lankas No: 01 shampoo brand for its capabilities to provide longer, smoother and straight silky hair. This brand is also the strongest brand in Asia and it is said to be available over 80 countries all over the world. The brands most recent marketing campaign is the co- creation collaboration in which 7 hair experts around the world would answer to every hair issues and come up with the best solutions for the problem. The new range of products is as follows: Sunsilk dream soft and smooth Sunsilk hair fall solution Sunsilk damaged hair re construction Sunsilk Stunning Black Shine

Sunsilk believes that the secrets to beautiful hair should not be locked behind the salon door. So they have worked with seven internationally renowned hair experts to create salon quality products for every girl, whoever she is, wherever she lives, whatever her hair type.

This research was carried out to identify the customer preference for Sunsilk as a brand. Now Sunsilk is being positioned as Sri Lankas No: 01 Shampoo brand and this research report will help to identify he customer preference level and the significant reasons for customer preference as well as the relationship between

those significant factors and the level of preference .The research findings will definitely help in designing new product mix for current and the potential customers which satisfy their needs better than ever.

1.2

Research Problem
To study customer preference level towards sunsilk shampoo.

1.3

Research Objectives
To determine the average level of preference towards Sunsilk shampoo. To identify the effective reasons for the determined level of preference. To identify the most significant variable affect for the level of preference. To identify the relationship between the affected reasons and the level of preference. To recognize the potential benefits that customers expect from Sunsilk shampoo.

1.4

Research Questions
What is the average level of preference towards Sunsilk shampoo? What are the effective reasons for the determined level of preference? What is the most significant variable affect for the level of preference? What is the relationship between the affected reasons and the level of preference? What are the potential benefits that customers expect from Sunsilk shampoo?

1.5

How You Will Benefit From This Report

Since this report provides detailed consumer insights into Sunsilk shampoo it is an invaluable resource to executives, organizations looking to make marketing decisions.

This report is an important tool to companies in the natural & organic personal care products market, as well as those looking to enter this emerging market. It provides detailed insights into consumer preference and expectations towards these products. The report gives a thorough understanding of consumer preference, enabling companies & retailers to develop marketing programmes, distribution strategies and position products.

The report is useful for CEO s and senior managers to ensure that new or existing products are correctly marketed and meet consumer expectations.

Marketing managers & executives to identify consumers needs, wants, preferences and expectations. Such information can enable successful marketing programmes and promotional activities to be developed that meet consumer hot spots.

It is also helpful for business development executives to understand the market and identify opportunities for new or existing products.

Advertising & marketing agencies working on advertising and promotional campaigns are another party who is going to be benefitted through this research report. It can help reach consumer hot spots by developing targeted and effective marketing communications.

It is also beneficial for research & development executives to develop and formulate new products based on consumers needs and expectations.

2.0

LITERATURE REVIEW
The literature review section reveals that the used variables are abstracts from the prevailing theories and the previous related researches. Those abstracts are clearly shown here and it supposes that this research is not biased.

Theory of Consumer Decision Making Process

This theory says that how the customers decide to purchase products. According to this theory consumers can be divided in to three categories based on their ways of decision making. They are Extensive problem solving, Limited problem solving, and Routinized response behaviour. At the level of Extensive problem solving, consumers need a great deal of information to establish a set of criteria to be considered when preferring for a specific brand. At the level of Limited problem solving, consumers have already established the basic criteria for evaluating various brands but they search for more additional brand information to discriminate among various brands of a product category. Routinized response behaviour talks that consumers have experience with the product category and a well established set of criteria with which to evaluate the brands they are considering. They simply review what they already know. Apart from that, this theory also describes four models of consumers with different views .First one is economic view .Under this view consumer is considered to be a rational person in terms of being aware of all available product alternatives and ranking those alternatives according to the benefits and advantages and identifying the best alternative. Next, cognitive view .it says that a consumer is a problem solver. Consumers search for goods that fulfill their needs and enrich their lives.

Preference Formation Model (PFM)

Preference is formed when the customer is bonded to your company through the establishment of a mutual benefit. Successful companies therefore go beyond delivery of a commodity or service; they pursue the development of a relationship with their customers. This bonded relationship will be more likely to survive competitive attacks than the mere purveying of goods or services or an over reliance on aggressive pricing models. One of the components of the Preference Formation Process is the development of a Preference Formation Profile. This profile breaks out the required attributes of each stage of preference formation. The profile further differentiates the required attributes of preference into emotive or functional attributes and defines each as attractor, satisfier or expectant. The PFM results in a likelihood of preference formation index (PFI) which represents the strength of preference for a given product/service. We have found that the preference formation index (a standardized score ranging from one to one hundred) can range dramatically given the market and population under consideration. When the index is weak (seventy-five or below) it means that while the elements of preference are in play there is a reasonable amount of indifference toward the preference target. R.L. Oliver (1994) observed that customer satisfaction results from a process of internal evaluation that actively compares expectations before purchase of a product or service with perceived performance during and at the conclusion of a purchase experience. The deployment of the theory of reasoned action as a model for preference formation explains why such evaluation takes place. Satisfaction is a product of the alignment between prescribed functional and emotive performance elements and the ability of the company to meet the performance expectations. Sustained preference is a product of meeting these requirements over time.

What we have referred to as functional and emotive performance elements Oliver defines as evaluative elements (expectants, satisfiers and attractors) that, in turn, comprise a single product or service evaluative experience. Sustained

preference can be thought of as a series of experience interactions that are continuously being modified as the components of preference are modified over time.

According to a research done by J. Jeffrey Inman, Leigh Mcalister, Wayne D. Hoyer (1990), the promotional price cuts and promotion signals serve as persuasive appeals in support of choosing a particular brand, the ELM model posits a continuum of the ways choice attitudes might change as a result of exposure to a promotion. At one end of the continuum, termed the central route to persuasion, the consumer diligently, actively, and cognitively evaluates information central to the particular evaluation. Promoting a brand with both a promotion signal and a price cut will, on average, increase the likelihood that an individual will choose that brand. The presence of a promotion makes the selection of the promoted brand more likely. Further, it seems that for some consumers, the promotion signal alone represents a sufficiently significant change in the choice condition to induce a shift in choice behavior toward the promoted brand. For some consumers, however, a concomitant price cut is needed.

Gregory S. Carpenter and Kent Nakamoto (1989) explain in their research that consumer preference towards a product may differ because of the product attributes. They say that the learning process of the customers form a preference towards particular brand. First customers have a trial purchase and if the customers are satisfied with the product attribute customers repurchase the

product and doing so the preference is formed. As a result, consumer preferences are likely to evolve through time, updated through heuristic judgment processes.

Leon Schiffman and Leslie Kanuk.(2009) expresses in his book consumer behavior the application of the Theory of Reasoned Action Model. The model is designed to provide a better understanding of how consumer preference is formed and, correspondingly, to provide the means to accurately predict consumer preference behavior. The important contribution of the reasoned action model is the realization that consumers utilize the model in all purchase experiences to a lesser or greater extent. Of equal importance is the realization that the components used to make a preference decision are also the ones employed by a consumer to evaluate the performance success of the product or service purchased and the company responsible for them. Therefore, as the components of preference change, the elements influencing satisfaction change accordingly. The relationship is

dynamic and fluid therefore static or predetermined satisfaction analytic packages often miss the most important elements of preference and can create a false sense of security on the part of companies who think that since their customer satisfaction scores are high they must in turn have relatively loyal customers.

3.0

METHODOLOGY
Type of the research conducted is a descriptive research, in which the major objective is to identify and describe the level of customer preference towards Sunsilk shampoo.

The respondents who were taken in to account in terms of gathering information were randomly selected. The respondents were selected using a non probability sampling technique, which is known as convenience sampling technique. The respondents were selected based on the researchers convenience. The selected sample size was 50 respondents. Well prepared questionnaire was used in terms

of gathering information. The questionnaire was distributed among the Sunsilk shampoo preferred customers.

3.1

Conceptualizing frame work

Independent variables price Attribute Need Knowledge Promotion

Dependent variable

Customer preference towards shampoo

3.2

Operationalization of variables

Concept

Variables

Indicators High price value for money affordable price fragrance package colour Smoothening of hair To prevent hair fall To avoid dandruff To reconstruct damaged hair Experience information

Measurement

Price

Nominal scale

Attribute Customer preference towards Sunsilk shampoo

Likert scale

Need

Nominal scale

Knowledge

Nominal scale nominal scale

promotion

advertising

4.0 4.1

PRESENTATION OF FINDINGS The age ranges of the respondents

12% 30% 16-20 22%

21-25
26-30 30-40

36%

According to the pie chart shown above Sunsilk is mostly preferred by the customers who are within the age range of 21-25.Secondly 16-20.It shows that Sunsilk is mostly preferred by young girls .But Sunsilk target market spreads from 16-40.However there is a considerable preference level from the other two age ranges too.

4.2 No. of times that the respondents use Sunsilk shampoo per week
25

20
20 15 10

12

13

5
5

once a week

twice a week

Threetimes a more than three week times aweek

Customers use Sunsilk shampoo in average at least once a week .Most of the customers that is 20 customers use shampoo twice a week. It shows that customer consumption is at a higher level. As the customers are satisfied with their needs they prefer to use Sunsilk more. There are also a considerable number of customers using Sunsilk three times a week.

4.3 What respondents think about the price levels of Sunsilk Shampoo?

45 40 35 30 25 20 15 10 5 0

39

10

1 high price value for money affordable price

Most of the customers that is 39 customers think that the price of Sunslk is actually value for money. They think so because Sunsilk satisfy their needs and it is worth for them for the price they pay. Therefore customers never hesitate to buy Sunsilk shampoo again and again. It increases the level of preference and it causes for the increasement of sales too.

4.4 Indicated levels of agreement for the following statements I like the fragrance of Sunsilk very much
40 35

37

30
25 20

15
10 5

6
1 0 Strongly disagree

Strongly agree

agree

neither agree nor disagree

disagree

A large number of customers prefer the fragrance of Sunsilk shampoo. 43 customers that is 86% of customers prefer Sunsilk fragrance while 6 customers (12%) do not rely on fragrance.

The bottle of Sunsilk shampoo is very convenient to use

35 30 25

33

20
15 10 5 0

13 2
Strongly agree agree neither agree nor disagree

2
disagree

0
Strongly disagree

2 customers (4%) strongly agreed and 33 customers (66%) agreed with the given statement and it shows that they prefer the current package of Sunsilk shampoo, but some considerable numbers of customers do not care about the package. That is 13 customers (26%).

I check the ingredients of Sunsilk shampoo when buying

30 25 20 15 10 5 0

26

11
5 7 1

Strongly agree

agree

neither agree nor disagree

disagree

Strongly disagree

Customers are intelligent and now they put a considerable amount of effort in identifying healthy products. It is shown in the above chart.11 customers that is22% strongly care on ingredients while 26 customers (52%) also check the ingredients of Shampoo.

Average preference level of Fragrance, package and ingredients

100% 90% 80% 70%

86%

70%

74%

Average level of preference

60% 50% 40% 30% 20% 10% 0%

fragrance

package

ingredients

variables affect for preference

The overall conclusion regarding these three variables Fragrance, package and ingredients shows the customers are affected by these three variables to prefer for Sunsilk shampoo. It shows that 86%, 70%, and74% of the sample customers prefer for those variables and it led for a higher preference level.

4.5 Do you like the colour of currently using Sunsilk shampoo?

yes no

44

This statistics show that the customers prefer the colour of currently using Sunsilk shampoo brand. That is 44 customers (88%). But (12%) of customers need to have another colour instead of current colour. Most of those customers had mentioned that they prefer to have shampoo in white colour.

4.6 What do you expect by using a shampoo?

25 22 20 15

15

10 7 5 4 2 0

Smoothening Black shiny of hair hair

To prevent hair fall

To avoid dandruff

To construct damaged hair

The above figure shows the types of needs the each customer expects from a shampoo. Most of the customers that is 22 customers (44%) expect to smoothen their hair and secondly 15 customers(30%) to have a black shiny hair. Sunsilk satisfies both these needs through their products Sunsilk Dream Soft & Smooth and Sunsilk Black Shiny Hair. So it reflects that customers prefer to buy Sunsilk because Sunsilk satisfy their needs.

4.7 How satisfied are you with Sunsilk to meet your needs?

45 40 35 30 25

40

20
15 10 5 0

6 2 very satisfied satisfied 2 0 very unsatisfied

neither unsatisfied satisfied nor unsatisfied

This figure further shows that customers are satisfied with Sunsilk to meet their needs. (12%) say that they are very satisfied and majority (80%) say that they are satisfied. This says that as the customers are well satisfied and therefore they prefer to buy Sunsilk very much. In the same manner there are 2 customers (4%) that have still no satisfaction of Sunsilk. But it is inconsiderable in comparing to the no: of customers that are satisfied with Sunsilk. There are also another two customers who are neither satisfied nor unsatisfied. It

might be due to the affecting variable for them to buy. Because some customers showed in the research that they do not pay attention to the need satisfaction.

4.8 What influence you to buy Sunsilk?

30 25 20 15 10 5 0

24

14 7

Advertising

Friends and neighbours

promotion campaigns

Self experience

This figure shows that customers prefer to buy Sunsilk because of their self experience (48%) and because of the recommendations given by the friends and neighbours (28%). Promotion campaigns have a less effect on consumer preference as well as advertising.

Figure 4.1 to 4.8 presented the analyzed data and information gathered from the questionnaire. The next part will show how the information support to get answers for the following research questions and the findings of this research. What is the average level of preference towards Sunsilk shampoo? What are the effective reasons for the determined level of preference? What is the most significant variable affect for the level of preference? What is the relationship between the affected reasons and the level of preference? What are the potential benefits that customers expect from Sunsilk shampoo?

5.0 FINDINGS AND DISCUSSION 5.1 What is the average level of preference towards Sunsilk shampoo?
100% 90% 80% 70%

88% 86% 70%

92%

88% price 74% fragrance package 48% need satisfaction colour

Average level of preference towards Sunsilk

60% 50% 40% 30% 20% 10% 0%

24%
ingredients

variables affect on preference

Considering all the independent variables affect for the level of customer preference, the following factors are reflected. 92% of the customers prefer Sunsilk because of the need satisfaction they get from Sunsilk and it is the most significant variable affect for the level of preference. Customers also have a 88% average preference level towards Sunsilk in terms of price and colour .Customers believe that the price of Sunsilk is value for money and the current colours of Sunsilk is also preferred by the customers. Fragrance, package and ingredients also possess a considerable level of preference among the customers. There is a 48% average level effect towards the preference level from the past experience of the customers.

 There is a less effect that is 24% effect from promotions towards the preference level of Sunsilk.

5.2 What is the most significant variable affect for the level of preference?

4%

10%
29%

price

fragrance
need
4%

ingredients past experience

53%

This figure shows the factors that customers give priority in preferring for Sunsilk. The most significant variable affect for customer preference is their need satisfaction (53%). That tells the customers prefer to buy Sunsilk as satisfy their needs in using a shampoo.

Secondly customers pay attention to the price levels (29%). As Sunsilk is actually value for money, customers prefer to buy Sunsilk rather buying another brand. But customers never give priority for colour, promotion and package when buying shampoo.

As well they pay a considerable attention for ingredients that are 10%.

5.3 What is the relationship between the affected reasons and the level of preference?

Price
When it comes to price customers preference level is high because of the affordable price levels of Sunsilk. Customers give 29% priority in selecting shampoo. In the case of Sunsilk most customers (78%) believe paying money is worth for Sunsilk.

Fragrance
A large number of customers prefer the fragrance of Sunsilk shampoo. 86% customers prefer Sunsilk fragrance while 12% customers do not rely on fragrance. But 96% of customers do not give priority foe fragrance when buying Sunsilk.

Package
4% customers strongly agreed and 66%customers agreed that it is convenient to use the bottle of shampoo. It shows that they prefer the current package of Sunsilk shampoo, but some considerable number of customers does not care about the package. That is 26%customers.But customers never give priority to the package in buying Sunsilk.

Need satisfaction
12% say that they are very satisfied and majority 80% says that they are satisfied. This says that as the customers are well satisfied and therefore they prefer to buy Sunsilk very much. In the same manner customers give priority (53%) for need satisfaction when buying Sunsilk.

Colour
88% customers prefer the colour of currently using Sunsilk shampoo brand. But 12%)of customers need to have another colour instead of current colour. Most of those customers had mentioned that they prefer to have shampoo in white colour. As well as the package they never consider the colour of shampoo when buying.

Ingredients
Customers are intelligent and now they put a considerable amount of effort in identifying healthy products. 22% customers strongly care on ingredients while 52% customers also check the ingredients of Shampoo.

Past experience
48% percent of customers prefer Sunsilk because of their past experience .They believe Sunsilk provides enough satisfaction so they prefer to buy Sunsilk.

Promotion
Customers never rely on promotion when buying Sunsilk. So promotion has a less effect on customer preference level towards Sunsilk.

5.4 What are the potential benefits that customers expect from Sunsilk shampoo?
Most of the customers had mentioned that they are really satisfied with Sunsilk. Customers are satisfied with the new co creation and they believe that Sunsilk satisfy their all hair problems. But majority wanted to have a Sunsilk shampoo to prevent dandruff

6.0 CONCLUSIONS AND RECOMMENDATIONS

The following conclusions along with the recommendations can be drawn through this research. There is a higher level of customer preference level in terms of Sunsilk shampoo. The customers prefer Sunsilk shampoo as it satisfies their expected need. Secondly customers care on price. The most significant variable that affect for the level of preference is need satisfaction. There is a considerable negative attitude towards the package .So the management should consider on providing a convenient package. Customers gather information through their friends and neighbours rather than advertising or promotion campaign. So promotion mix should be changed in to direct marketing. According to the research done on consumer preference level consumers are happy with the brand but the company need to increase more community based awareness and also by using blogs. Innovation, implementation, cost reduction to offer best competitive price and execution should be the strategy for continuation to be the market leader. The company should introduce a new product mix for cleanness and remove dandruff. It is better to find out innovative means of promotions like forming a special association or some distinct group which will help maintain its brand equity and loyalty. Company should maintain its quality with constant improvements as customers expect the high quality. Company can survive if they come up with new varieties according to market needs and maintain a competitive pricing.

7.0 REFERENCE
Basic Structural Model of Customer Preference Formation, (2009),Leon Schiffman and Leslie Kanuk. Consumer Behavior, Nineth edition, published by Hall,South Asia. Pearson Prentice

Consumer Preference Formation and Pioneering Advantage, (Aug.1989) Gregory S.Carpenter and Kent Nakamoto. Journal of Marketing Research, Vol. 26,Published by American Marketing Association.

Developing Customer Insight: The Determination of Customer Preference. www.icrsurvey.com

Promotion Signal: Proxy for a Price Cut? (Jun. 1990), J. Jeffrey Inman, Leigh McAlister, Wayne D. Hoyer.The Journal of Consumer Research, Vol. 17, Published by: The University of Chicago Press.

Research

for

Head

and

Shoulders

(2007),

Vikram

B.

Thadeshvar,

Rohan

Tamrkar,Sailendra Sharma

8.0 APPENDIX 8.1 Questionnaire for Sunsilk Preferred Customers

1) What is your age range? Put a tick []. 16-20 21-25 26-30 30-40

2) How many times do you use Sunsilk shampoo per week? Put a tick []. Once a week Twice a week Three times a week More than three times a week 3) What reasons affect you to prefer for Sunsilk shampoo? Rank 1-8 according to your priority. price fragrance package need satisfaction colour ingredients past experience Promotions 4) What do you think about the price levels of Sunsilk shampoo? Put a tick []. high price value for money affordable price

5) Indicate your level of agreement for the following statements. Put a tick []. neither strongly agree disagree disagre nor e disagree

statement I like the fragrance of Sunsilk very much The bottle of Sunsilk shampoo is very convenient to use. I check the ingredients of Sunsilk when buying

strongly agree agree

6) What is the colour of your currently using Sunsilk shampoo?

Do you like that colour?

Yes

No

If not, what colour do you prefer to in your shampoo?

7) What do you expect by using a shampoo to wash your hair? Put a tick []. Smoothening of hair Black shiny hair To prevent hair fall To avoid dandruff To construct damaged hair

8) How satisfied are you with Sunsilk to meet your needs that you mentioned in the Q: (07)? Put a tick [].

very satisfied satisfied neither satisfied nor unsatisfied unsatisfied very unsatisfied

9) What influence you to buy Sunsilk? Put a tick [].

Advertising Friends and neighbours promotion campaigns Self experience

10) Please suggest some other benefits you prefer to have from Sunsilk in the future.

Thank you for your favourable response