RESEARCH PROPOSAL ON CUSTOMERS PERCEPTION

AND PREFERENCE TOWARDS BUYING AIR-

CONDITIONERS IN VALLABH VIDHYANAGAR

Submitted to:

Dr RP Patel

Submitted by:

Chintan Dave(15M07)

Keval Trivedi(15M19)

G.H Patel Post Graduate Institute of Business Management

Sardar Patel University

Introduction:

The success of a product in India is not predictable as it is very difficult for market researcher
to understand the buying behaviour of a consumer in India as their purchase decision is
entirely different form needs stated. For past few years due to countrys economic growth and
increasing PPP( purchasing power parity) households form middle and lower middle segment
of SEC (socio-economic category) are able to afford consumer durables like air conditioner.

Air conditioner was once considered as a mark of luxury and only upper socio-economic
category household were able to afford it. According a Euro-monitor article disposable
income of Indian households are increasing but the air-conditioning industry is increasing at
even higher rate. According to All India Air conditioning & Refrigeration Association
(AIACRA) CAGR of air conditioning system is 15-20% which is highest among all the
countries.

Buying Behavior

Due to increasing purchasing power parity, favorable weather conditions, growing Indian
economy, me-too attitude of Indian consumers and other factors air conditioning is
strengthening its foothold in Indian market. Buyer make an informed decision as product like
ACs are very high involvement product. To understand the buying behavior of ACs in India
lets understand the needs, usage, benefits and motivation behind purchasing this product.

Needs of AC in India

Changing lifestyle: As Indian population is moving towards service sector from

manufacturing and agriculture sector, their lifestyle have changed over this transition period.
Middle class population and above are getting habituated of comfortable life and products
like ACs fit right in place in these situation.
Hot and humid climate: Average temperature of India has been increasing over years which
demands a mode to keep the heat down. Households which cant afford ACs they use air
cooler to keep the temperature down.

Densely populated cities and pollution: Due to increasing population and industries in cities
temperature as well as pollutants in the air are increasing, which makes living difficult in the
cities. At this point need of ACs is felt strongly.

To keep the temperature of other electronic appliances down: Many industries run on heavy
software machines which increases the temperature of room. Sometime increasing heat of
rooms and appliances lead to overheating and appliances stop working.

Social Status: For Indian consumers it is really important to keep up to the society. If one
household buys some product it triggers a chain reaction of purchase in the society to prove
their capability to own a similar product.

Fresh air and lesser noise: ACs refines the air before emitting air which keeps a room fresh
and cool. On the other hand one need not open the doors and windows for fresh air which
reduces noise level in the room. Which gives a feeling of sanity in chaotic life of
overcrowded cities.

Products like ACs cater to personal need and environmental wants.

Objectives:

1 To Know the Consumers Perception towards buying Air Conditioners in Vallabh

Vidhyanagar

2. To Know the Consumer Preference towards selecting Air Conditioners in Vallabh

Vidhyanagar.

Methodology

Research Design
Descriptive Research: Descriptive research, also known as statistical research, describes
data and characteristics about the population or phenomenon being studied. However, it
does not answer questions about e.g.: how, when, why the characteristics occurred,
which is done under analytic research. Although the data description is factual.
Accurate and systematic, the research cannot describe what caused a situation. Thus.
Descriptive research cannot be used to create a causal relationship, where one variable
affects another. In other words, descriptive research can be said to have a low requirement
for internal validity.

The description is used for frequencies, averages and other statistical calculations. Often
the best approach. Prior to writing descriptive research, is to conduct a survey
investigation. Qualitative research often has the aim of description and researchers may
follow-up with examinations of why the observations exist and what the implications of
the findings are.

Research Methodology

Research Approach: In this research we will be using the survey approach and
research instrument will be structured questionnaire.

Qualitative research:

This approach to research is concern with subjective assessment of attitudes, opinion

and behaviour. Research in such a situation is a function of a researcher's insights and
impressions. Such an approach to research generates results either in non-quantitative form
or in the form that is not subjective to rigorous quantitative analysis. Generally, the
techniques of focus group interviews, projective techniques and depth interviews are
used.

Sampling Plan : On the demand side internet service users.

Sample size : 200 ( Internet Users )

Population Anand, Vidyanagar
Sample Unit Individuals
Sample Size 200
Sampling Method Convenience sampling
Research Instrument Questionnaire