CHAPTER II

REVIEW OF LITERATURE

2.1 Introduction
A detailed review of literature has been made to find out the research gap
and to identify the relevant researchable issues for the study. It is essential for a
research scholar review the related literature study to have clear knowledge
about the subject and understand the research gap in order to drawn the scope
for the study. The reviews presented in this chapter are grouped under the sub-
topics like consumer buying behaviour, consumer attitude, consumer
preferences, customer satisfaction and overview of paint industry in India.

2.1.1 Consumer Buying Behaviour

Consumer behavior analysis is based on consumer’s buying behavior. It
aims at improving business performance through an understanding of
customer’s preferences and desires. In today’s world of growing competition
where there are numerous brands selling the same products, consumers have an
abundant number of choices and many diverse factors influence their buying
behavior.

Rowley (1997)1 in his research work had commented that consumer

buying process offers two useful perspectives: the decision-making process
associated with consumer buying and the factors which affect the buying
process. The author further stated that the consumers buying process can be
divided into personal, psychological and social and cultural factors. The ‘social
factors’, such as consumer’s small groups, family, reference group, social roles
and status can affect consumer responses and influence their buying behavior.
‘Personal factors’ such as age, lifecycle stage, occupation, education and
economic situation, and ‘Psychological factors’ such as, motivation, perception,
learning, beliefs and attitudes and personality, also play major roles in consumer
decision-making process.

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 2
Hawkins et. al., (1998) says that for many products, consumers
frequently have numerous choices as to where they are going to actually obtain
the product. In the old days, most consumers had access only to "general" stores
for most products. Gradually, in urban environments, specialty and discount
stores evolved. Today, a consumer may generally choose to buy most products
either at a relatively high price, frequently with a significant amount of service,
in a specialty store, or with lower service in a discount store. Peter & Olson
(1999)3 sys that consumer behavioral intentions reflection of their plan of action
or the proposition associating one’s self with a future action or behavior.

Anurag (2007)4 in his e-article “Consumer Behavior and Buying

Decision Making” has pointed out that marketing in India is growing through an
indefinable phase and so also the changing role of consumer in making decision
and the way in which the new generation of Indian consumer behaves. The
characteristics of Indian families are changing under the influence of external
factors such as liberalization and media explosion. Indian families are presently
in a state of flux, shifting from being strictly hierarchical to more egalitarian in
character. And the process of migration definitely has a big role to play in such
transition.

Sundaram Rajagopalan (2013) 5in his report pin point that in coming
years’ urban middle class will always dwarf. Urban affluent consumers in
spending power because of their sheer size. Product will proliferate, consumer
will complain of excess choice although would love the excess choices.
Consumers will enjoy income levels unmatched by that of previous generations.
(esp in Metros and large towns) Widening income levels, migration (rural to
urban) will create new opportunities. Most consumers will continue to embrace
traditional and modern values and will be eager for modern products with Indian
tastes.

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 2.1.2 Consumer Attitude
Consumers are individuals with likes and dislikes. When the
preponderance of people in a particular group feel one way or another about a
product, service, entity, person, place or thing, it is said to be a generalized
consumer attitude that could affect the marketing of that person, product or
entity in positive or negative ways. Marketers strive to influence consumer
attitudes, and understanding the prevailing attitude is the first step to changing it
if needed.

According to Homer and Kahle, (1988)6 personal values have been found
to be the underlying determinants of various aspects of consumer attitude and
behaviour. Weiner (2000)7 observe that “Consumer attributions play their role in
post-initial outcome decision making; that is, attributions intervene and exert
their influence after a product-related outcome and prior to the next choice.
Attributions arise when one evaluates the extent to which the initial product
performance corresponds to one’s level of aspiration vis-a`-vises that product,
and one then questions the cause of the outcome. It has been definitively
documented that attribution search is more likely following failure
(dissatisfaction, in this case) rather than after success (or satisfaction). After all,
we typically do not ask why we did well on an exam, or why a submitted paper
was accepted, but rather why we failed and why our manuscript was rejected.
And we do not ask why a product ‘worked,’ but why it did not function”.

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Dick and Basu (1994) say that loyalty can be examined from the
relationship between customer’s attitude toward a product, brand, service,
supermarket or store, seller and the customer’s patronage behaviour. Mowen
(2000)9 had identifying the vital attributes that influence consumer decision
making and shopping behavior, marketers can refer to important attributes that
are relevant to each of the market segments. Attribution theory can also be
applied in explaining consumer shopping behavior as future patronage
intentions is often influenced by both store and consumer variables.

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 As per the opinion of Hawkins et al (2001)10 consumers’ attitude toward
lifestyle merchandising is quoted as” A consumer’s opinions and personal
relevance that is felt toward products that are promoted by coordinating
production, marketing, in-store advertising, display, and sales strategies to
reflect the manifestation of one’s self-concept or self-identity. To the similar
concept Etzel, Walker and Stanton (2001)11 says that “A consumer’s opinions
and personal relevance that is felt toward presented references to one’s self-
concept or self-identity via a non-personal, sponsor-identified, paid message.

Kim et al (2002)12 says that as more resources become available,

consumers may desire more emotional image attributes in products or brand.
Ling, Choo, and Pysarchik (2004) 13 note that Indian customers’ attitude towards
new products are changing significantly and this can increase their intention to
shop in new retail outlets such as supermarkets. Thus, product attributes such as
quality, price and availability of new products are important constructs within
the Indian context. Miranda, Konya and Havrila (2005) 14 research suggests that
quality, price, availability of new products and product value are the product
attributes that influence consumer attitude.

2.1.3 Consumer Preference

Consumer preferences is the underlying foundation of demand, therefore,
is a model of how consumers behave. The individual consumer has a set of
preferences and values whose determinations are outside the realm of
economics. They are no doubt dependent upon culture, education, and
individual tastes, among a plethora of other factors. The measure of these values
in this model for a particular good is in terms of the real opportunity cost to the
consumer who purchases and consumes the good. If an individual purchases a
particular good, then the opportunity cost of that purchase is the forgone goods
the consumer could have bought instead.

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Sheth, Newman and Gross (1991) opine that in general, the Indian
consumers were indifferent in choosing the brand, since a lot of close substitutes
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 were available in the market. Due to technological and knowledge up-gradation,
today’s customers prefer to opt for branded product. This is because of an urge
for getting proper value against payments made. Aaker (1996)16 has mentioned
that brand of a particular product plays a fundamental function in consumer’s
perception of a product. It helps in developing a market position, prestige and
image of the product and for these reasons the brand constitutes a mechanism of
risk reduction. Hence, selection of brand is another major constituent of
consumer behavior.

Dunne and Narasimhan (1999) 17 say that consumers’ perception of the

relationship between price and quality is the main factor which influences the
brand choice decision between private labels and national brands.

According to Mishra (2007) 18 the Indian market has seen vast changes in
political, economic and social environment which has a great impact on
consumption. Singh (2007) 19 is of the view that production oriented market has
been shifting towards consumer oriented market. Traditional consumption
pattern has also been facing large-scale changes.

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Priya Soni (2010) study aimed to evaluate the customer’s perception
towards the purchase of branded products. She says that there is prevailing high
competition among various brands in India. In every product category,
customers have more choices and higher expectations. The success of the
strategy depends heavily on the marketer’s understanding of the preference
building and bonding process. Since brands seeks reflecting consumer
preferences and wants.

2.1.4 Customer Satisfaction

Customer satisfaction, a term frequently used in marketing, is a measure
of how products and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its
products, or its services (ratings) exceeds specified satisfaction goals.
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 Johnson et al., (2000) 21 says that businesses need to attract and establish
a customer market and would need to retain it through satisfaction. That is the
key to its business performance. As per Cacippo (2000) 22 basically, customer
satisfaction is a psychological state, carefulness should then be taken when
measuring it. Competitors that are prospering in the new global economy
recognize that measuring customer satisfaction is a key. This is because of doing
so, industries can hold on to the customers they have and understand how to
better attract new customers.

As per Kotler (2003) 23 satisfactions is a person’s feelings of pleasure or

disappointment resulting from comparing a product’s perceived performance (or
outcome) in relation to his or her expectations. The satisfaction judgment is
related to all the experiences made with a certain business concerning its given
products, the sales process, and the after- sale service. Whether the customer is
satisfied after purchase also depends on the offer’s performance in relation to
the customer’s expectation. Customers form their expectation from past buying
experience, friends’ and associates’ advice, and marketers’ and competitors’
information and promises.

Gustafsson (2005) 24 define customer satisfaction as “a customer’s overall

evaluation of the performance of an offering to date. This overall satisfaction
has a strong positive effect on customer loyalty intentions across a wide range of
product and service categories.

As per J.D. Power and Associates report (2012) 25 it has been found an
additional contributor to increased satisfaction is customers' experience with
paint retailers. More than one-half of customers who purchased paint received
guidance on their painting project from the retailer and more than one-third
received color selection advice. Interestingly, satisfaction is higher among
customers who purchased their paint directly from a manufacturer's specialty

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 store (e.g., Sherwin-Williams, Dunn-Edwards) than among those customers who
purchased from a home improvement retailer.

Shaikh Reeha Vasi (2012) 26 research aims to analyse customers level of

satisfaction after using Asian Paints, are they willing to be a loyal customers or
do they prefer other brands. The survey reflects the areas where the
company needs to improve and the areas where it from where it has gained its
popularity.

2.1.5 Paint Industry in India, its Consumption and Buying Practices

Indian paint industry has grown by leaps and bounds over last 15 years.
The per capita consumption of paint still is one of the lowest. This means there
is a big scope for the industry to grow further. This is one industry that has
successfully developed the large small sector together. This is so because higher
and lower segments of buyers are growing rapidly. The specifications of the
large, specialized users are stringent and cannot be matched small scale sector
that will have to remain out of the corporate business. There is a huge market of
domestic, house hold paints competing with lime and cements paints that cannot
be tapped by the large manufacturers due to their high over heads. The
difference cannot be matched by their high purchasing power. Industrial experts
do not see a possibility of complete elimination of the small scale sector form
the Indian scene. In fact we have not seen any small scale paint industry closing
down in last several years. Everyone is recording a healthy growth in volume as
well as value terms. The richness of the small scale is amply evident in the
annual general meetings of the members of Indian Small Scale Paint
Association. This means, the small scale industry is doing well and would
continue to do well. One of the major reasons is low fixed capital employed for
manufacture of paints. The working capital requirements are very huge. This is
now easily available from banks and the turnover of the industry is growing
very rapidly.

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 As Wheeler (2000) 27 explains “Brand is the promise, the big idea, the
reputation and expectations that reside in each customer’s mind about the
product and/or the company. It is a powerful yet intangible asset. Brand is about
making an emotional connection. People fall in love with brands. They trust
them, develop strong loyalties, buy them, and believe in their supremacy”.
Once the importance of brands was realized, many corporations worldwide
started to create their brand images.

According to Mishra (2002)28 Indian customers look for the fresh

solutions to their problems and in addition with better value for their money.
This persuades the paint industries to introduce products of some value with the
lower cost. Some new types of paints launched by the companies to attract more
customers are; washable odorless interior paints, water based enamels, and anti-
bacterial paints. Apart from these, companies have even launched paints with
long life guarantee.

Raghavan (2006)29 has confirmed that the Indian paint industry has lately
completed its 100 years of manufacturing. The history of modern paint
manufacture of India starts from 1902, “when the first paint factory, shalimar
Paints came into horizon”. The Indian paint industry is projected to be worth of
approximately USD 1.8 billion. The total production of the paint is in the area of
900,000 metric tons. Apparently the Indian paint industry is the only sector of
the Indian chemical industry that has been on the rise for the last three years. It
has been recorded that the growth of the industry has been in double-figures.
The per capita consumption of paint in the Indian market is noticed to be 0.8 kg
or 800 grams. This consumption rate is much smaller to that of South-East Asia
where the consumption is about 4.3 kg which is the total of the world average of
22kg. However as recorded by the Indian paint industry, the growth rate has
been exceptionally promising. The demand and the consumption of the paint in
the last 8 years have shown an increasing trend and the “last 3 years have shown
growth rates in excess of 10per cent.

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 According to Swar (2007)30 several demographic indicators show
favorable trends for the growth of organized trade in India. These are: i) Rapid
income growth: consumers have a greater ability to spend, ii) Increasing
Urbanization: larger urban population that value convenience, coupled with the
higher propensity of the urban consumers to spend, iii) Growing young
population: growth of the post-liberalization maturing population, with the
attitude and willingness to spend and iv) Spend now vs. save earlier: consumers
are willing to borrow for present consumption.

As per the Indian Paint Association report (2007)31 there is a shift in the
consumer behavior with the paint buying and painting process evolving. The
consumer is upgrading from buying distempers to emulsions and from buying
paints to buying premium services, unlocking a completely new value chain.
What it would mean for the industry is that it will have to serve the consumer
now in newer innovative ways. The consumer is ready to pay the price and
would be the key factor driving this change.

According to Kapferer (2008) 32 a brand has two different functions: to

distinguish products from each other and to indicate a product’s origin. Subhash
Jha (2008)33 study is based same reveals the painters' role in the selection of
decorative paints by the consumers. She says that the dealers, the interface
between consumers and manufacturers, perform a pivotal role in several
industries. One of them is the paint industry, where success of the
manufacturer's product largely depends on dealer support. The manufacturers
therefore, try to motivate the dealers by giving financial and non-financial
incentives. This paper seeks to identify the factors which prompt dealers to
stock certain paint brands in their outlets. Further, it also identifies the factors
which influence consumers' purchase decision from the dealers' perspective.
Since the dealers are in direct contact with the end-users, consumers' perception
is better known to them.

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 Preeti Khicha (2008)34 in her report have mentioned that over the years,
the seasonal aspect of painting a home in India changed and homemakers
gradually came to associate painting with home décor and interiors. Choosing a
paint brand became a high-involvement category, particularly in the decorative
segment with the focus of the brand shifting from the builder to the homeowner.
As consumers became more involved in the decision making process, the
company realized that an online presence would perhaps serve as an important
tool to engage this new audience.

Akanksha Goel (2008)35 research work seeks to extend the earlier work
done by various researchers and authors that examined the factors involved in
the new product launch. In particular, the critical success factors involved in
new product launch and the internationalization of the firm to launch the
product in the foreign market is examined. The research is done in the context of
the Indian Paint industry. The central research methodology for the project uses
a qualitative approach involving the interviews. The interviews were taken from
Asian Paints Ltd., Berger Paints and Rajdoot Paints. The interviewees were
asked certain specific questions regarding the new product launch in national
and international market. The interview explored the new product development
and the launching tactics of these companies. From the interviews it was made
clear that the companies follow all the main strategies that are required in the
new product development and the launch of the product which proves out to be
beneficial. But there are certain factors that companies do not take into
consideration that the researchers talk about. These come out to be
recommendations for them. Some of the limitation of the research is also
covered which would be really helpful for the further researchers.

Pandey (2009)36 in his empirical research work has mentioned that paint
companies are performing at their best this time and touching the horizon of
success gradually. The present study is to analyze the various influencing
factors which make the consumer's intent into purchase decision. While the
paint manufacturing companies are putting all efforts to hold the greater market
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 share, it is imperative to analyze the brand perception of consumers and their
final purchase. The study reveals that the consumers are important but at the
same time surrogate consumers also influence the decision making process of
purchase. The paint industry dealers also play a vital role as a channel partner in
the success of paint companies. The study found that Asian paint is the best
paint company in India followed by Nerolac paints and Berger paints. There is a
cut throat competition among the paint companies. The maximum number of
dealers deal in Asian Paints and Berger paints followed by Nerolac Paints, ICI
paints and Shalimar paints respectively and Asian paint holds the strongest
perception in the minds of consumers and dealers. But Performance and quality
is the most influencing factors for the customer while choosing paint.

Akhilesh Chandra Pandey (2009)37 in his research article have registered

the prevailing fact that the Paint companies are performing at their best this time
and touching the horizon of success gradually. The present study is to analyze
the various influencing factors which make the consumer's intent into purchase
decision. While the paint manufacturing companies are putting all efforts to
hold the greater market share, it is imperative to analyze the brand perception of
consumers and their final purchase. The study reveals that the consumers are
important but at the same time surrogate consumers also influence the decision
making process of purchase. The paint industry dealers also play a vital role as a
channel partner in the success of paint companies.

Srivastava R.K (2009)38 had commented that measuring the effectiveness

of brand strategy is a difficult task. This paper examines the approach to
measurement of strategy through application of brand score and brand equity as
a tool. The study was done in two phases. In the first phase brand score was
calculated by 150 postgraduate management students. The second phase of
study was to calculate brand equity using the same respondents for the same
brands. The top three brands in food, cold drink and telecommunication service
provider segments were selected for the study. Higher McDonald's brand score
also had higher brand equity index when compared to Domino's and Pizza Hut.

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 It means strategy is working quite well as reflected in two measurable tools. The
individual component study for brand score and brand equity index can give
insight on impact of strategy on these two measurable approaches of strategy. It
can also help in reducing wastage of promotional expenditure. This could give
scope for further research because of less work done in this area.

Report on Indian Paint Industry (2010)39 it has revealed that the growth
of the domestic paint industry is attributed to the boom in the housing sector and
the strong growth in the automobile sector. Around 70per cent of the domestic
paint industry revenues come from the decorative segment, whereas the
industrial segment constitutes around 30 per cent. In 2005, the manufacturing
sector has shown good activity with new projects in roads, ports and industrial
segments. The Indian paint industry has a huge potential, as the per capita
consumption of paint in India is 800-900 grams compared to 15-25 kg in the
developed countries.

Rizwan Ali .S (2010)40 say that opinion or attitude is an individual point

of view towards the product. It may either be favourable or unfavorable; their
view may change at any time. Competitor’s action and promotional activities by
an organization will change the customer point of view towards the product. The
study is conducted in Chennai city for “Identifying the total potentials of white
cement market for Asian paints India Ltd”. The research study is conducted
based on descriptive research of fact-finding and enquires. A population of 106
from Asian paints colour world dealers in Chennai city were covered through
survey and interview technique. The questionnaire is based on multiple-choice
questions, open ended and closed ended. The researcher used percentage
analysis, weighted average method, ranking and chi–square for research
purpose. The findings state that the dealers accept the alternative product for the
white cement. The final part suggestion gives what are all the activities to be
taken while launching the new product.

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 Sunanda K. Chavan (2010)41 in her empirical work had stated that Paint
demand is intrinsically related to economic development. The demand for
decorative paint in India mainly arises from two segments viz., construction of
new building and retail demand for refurbishment. While the demand for
industrial paint comes from industries like automobile, consumer durable,
shipping engineering etc. the demand for paint has grown at 10 per cent for last
five years. After the sluggish growth in late 80’s and early 90’s, industry grew at
rapid pace of more than 12 per cent from 1992-96. High excise duties and lack
luster industrial growth resulted in low growth of 2-4 per cent during 1987-92.
After 1992, the industry picked up aided by improving economic condition and
rationalization of excise structure. Almost the entire growth can be attributed to
volume increase as price realization has increase at less than 5 per cent per
annum. over the last two years demand slows down due to economic slowdown.

According to Indian Paint Association, demand raised from 0.6mn tones

per annum to 1million tonne per annum by 2003. Demand from decorative paint
will be led by the household construction industry which is expected to grow
almost 8 per cent over the next five years considering the extreme shortage of
housing and the governments thrust on encouraging the housing activity are also
likely to shift more towards rural areas. The industrial segment will grow faster
due to the lower base and fast growth in major users like consumer durable and
automobile.

M. Punniyamoorty and Nanda Kishore Shetty (2011)42 have stated that in

today's highly competitive business environment together with the global
meltdown of economy, manufacturers of generic commodity products like
cement must achieve some degree of differentiation for their products in order
to avoid their product being viewed as a basic generic commodity. This will
help them to develop strong cement brands in this sector, and move the
customers from a low-involvement decision-making process to a medium- or
high-involvement decision-making pattern. Hence this paper attempts to find
out the customers' preference pattern and the factors which influence the
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 customers' preference so that a strong cement brand can be developed by
understanding the values the customers are looking for, and then develop a
suitable branding strategy. A study has been carried out with some of the major
cement customers in Bangalore, one of the fastest growing cities in India. The
results of the survey shows that the customers are not only viewing physical
products, but also the distribution, customer service, quality, package,
durability, price, value for money, company image and company policy that
accompany the product. The study concludes with the managerial implications
and suggestions for cement manufacturers towards developing suitable branding
strategies.

Acording to Renu Rajaram (2012)43 in India, paints have traditionally

been sold in hardware stores. Most paint brands have followed the retail route of
multi-brand stores. However, with the growth of the Indian paint industry, and
the recognition of individual brands, prominent players have recognized the
need for exclusive outlets/showrooms. The success of these outlets lies in the
fact that the consumer can negate the time taken to choose between brands, and
instead focus on product choice without having to worry about quality.

As per an interview with Manish Choksi (2012)44 conducted by

Capgemini consulting it has been mentioned that Asian Paints is the largest
paint manufacturer in India, with US $1.6 billion in turnover. Around 80 per
cent of our business is in India and the remaining 20 per cent is located
internationally, distributed across 20 emerging and fast-developing countries. In
India, which is the fastest growing coatings market in the world, Asian Paints
currently have a 40 per cent market share in the decorative paints business.
Asian Paints also address the Industrial and the Project markets. In India, the
company has about 120 warehouses and 10 coatings manufacturing plants.
Around 20 per cent of our products are manufactured by outside contractors.
Asian Paints face stiff competition from major international companies in our
domestic market, notably Japanese and American, as Asian Paints well as from
newer players entering India. Asian Paint’s competitors pursue niche strategies
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 in all of their key markets. To beat this increasing competition, Asian Paints
constantly need to adapt our product portfolio to the ever-changing and
increasingly segmented market demand by introducing new products that meet
the décor needs of the country and are environmentally friendly as Asian Paints.
Another challenge is to drive efficiency and growth in a business spread over
120 locations, which deals directly with 20,000 to 30,000 retailers. Keeping our
manufacturing and supply chain costs under control is a tough challenge, given
constraints of infrastructure and logistics in India. Finally, the company has also
begun to sell services (such as a “painted wall”) instead of products (a can of
paint, for example). Gaining better knowledge of end-customer preferences is a
high priority for the company, since its traditional business model - operating
largely through retailers - has had very low levels of customer involvement. The
aim of Asian Paints is to be in the top five global decorative coating companies.

Pallavi Kumari (2012)45 had recorded in her empirical work that the way
Indian consumers are spending their money on various items has changed in
recent years. With the ever-increasing penetration of internet and social media,
the purchasing behavior of Indian consumers has changed dramatically.
Urbanization is taking place in India at a dramatic pace and is influencing the
life style and buying behavior of the consumers. The present study is based on
the perceptions, buying behavior and satisfaction of the consumers in Indian
market. The Indian consumers are noted for the high degree of value orientation.
India is a lucrative market even though the per capita income in India is low and
it remains a huge market, even for costly products. Consumer behavior is
complex and very often not considered rational. The recent trends which are
found in the Indian market are celebrity influence, online shopping, freebies and
popularity of eco-friendly products.

As Paint industry Conference report (2013)46 Indian paint market over

the past few years, despite many ups and downs in the recent past India has
shown a formidable performance compared to other economies. Changing

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 Demographics of the country will certainly help boost growth rate in all sectors.
Paint industry has shown a good growth record in the past and many believe it
will continue to do so in coming years as well. Albeit growth drivers,
consumers, towns, products will differ from existing ones. The industry is at the
threshold and every right step from here on will only bring success. Industrial
experts believes that time players all get back together and deliberate on all
these issues involving Paint manufacturers, Supplier partners, government
representatives, Scientist and other Stake holders of this industry.

RNCOS (2013)47 report on the Indian Paint Industry Forecast, say that
over the past few years, the Indian paint market has substantially grown and
caught the attention of many international players. The country continues to
enjoy a healthy growth rate compared to other economies, backed by the
increasing level of disposable income, and demand from infrastructure,
industrial and automotive sectors. On the back of such advocacy, it is
anticipated that the sector will post a CAGR of around 15per cent during 2012
to 2015, according to the new research report, “Indian Paint Industry Forecast to
2013”.

The report segregated paint industry into two segments – Decorative and
Industrial paints. Decorative paint markets were further segmented into sub-
segments, such as emulsions, enamel paints, distemper and cement paints. The
industrial paint market covers sub-segments such as automotive coating, high
performance coating, powder coating and coil coating. Our analysts closely
studied and provides market forecast till 2014-15 of each of the segment and
sub-segments. During the study, we have found that the paint industry is
dominated by decorative paints. Emulsion, which constitutes the majority share
of decorative paints, is the fastest growing segment of the paint industry.

Presently, the growth of the Indian paint industry is being witnessed from
new demand pockets, especially in Tier-II and Tier-III cities, thus, signaling the
growing acceptance of quality products among the masses. The growing

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 popularity of quality paints and increasing income levels of people residing in
Tier-II and Tier-III cities have pushed the growth in premium paint market of
Indian decorative paint industry. The report further classifies decorative paint
market by product class which includes premium paints, mid-tier paints and
economy paints. It provides market forecast till 2014-15 of each of this segment.

As with other fields, some challenges also exists in this promising sector
that can affect the growth trajectory of the paint industry, if not handled
accordingly. For instance, the industry is highly raw material-intensive and any
fluctuation in the availability of raw material leads to substantial price
fluctuation in paint production costs. Thus comprehensive analysis of raw
material paint market is also included in the report mainly focusing on its major
segments such as pigments, solvents, binders and additives. Our team provides
the overall raw material paint market as well as its segments market forecast till
2014-15.

Further, the report provides extensive information on the emerging

market trends and drivers along with regulatory initiatives, which are
collectively uplifting the industry outlook of India. It also provides insights on
paint export and import market, along with a brief overview of the prominent
industry players to provide a balanced research outlook of the industry. The
research also foresees immense opportunities for various domestic and
international players in this segment. Overall, our report presents a
comprehensive and complete analysis of the Indian paint industry, which will
prove decisive for intending clients.

2.2 Conclusion
From the detailed review of literature the researcher has emphasized the
importance of consumers’ behaviour, attitude, preferences and satisfaction from
the marketers’ point of view. However, in the course of desk researcher it has
been realised that not much market research studies in the past have been
conducted in the area of paint market or consumers’ choice of paints or their

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 preferences towards paints, similarly their attitude, perception or satisfaction
especially in Indian context,. Moreover, in past more case studies are focused on
Asian paints or Berger or other popular brand. The prevailing stature of lack of
marketing research pertaining paint industry is identified as the research gap.
Thus, this study aims to focus and analyse the consumer buying behaviour of
decorative paints both exterior and interior in both commercial and household
segments.

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