IMPACT OF MARKETING STRATEGY OF ELECTRONIC

GOODS ON CONSUMER BEHAVIOUR IN ALLAHABAD

CITY.

THESIS

Submitted to the Sam Higginbottom Institute of Agriculture,

Technology & Sciences (Deemed to be university) Allahabad for
the award of the degree of Doctor of
of Philosophy in Business
Administration

BY
ANUPAMA MEHTA

ID.No. 07PHBA104

Joseph School of Business Studies

Sam Higginbottom Institute of Agriculture,
Technology & Sciences
(Deemed to be university)
Allahabad.
This Thesis is dedicated with
love and devotion to my
beloved father Col. H.K.S.
Mehta, and to my wonderful
mother Mrs. Madhu Mehta.
 ACKNOWLEDGMENT

It is a matter of in means pleasure for me to avail this moment for

expressing my gratitude to all those people who were extremely helpful

during this arduous work.

First and foremost, I praise and honor the almighty Lord for

abundantly showering this grace upon me in all the ways. It was this

grace and love alone that helped me overcome all hurdles in this tough

endeavor.

I am highly thankful to Hon'ble Vice Chancellor Dr. (Prof.)

Rajendra B. Lal for allowing me to take up this work and for showing

keen interest in accomplishment of this thesis.

I express my heartfelt thanks to Dr. B.N. Tripathi former professor

(Department of Agriculture Economics) Head Division of Agricultural

Extension Communication SHITAS) for his inspiring guidance and

encouragement during the course of preparation of this manuscript.

 I express my sincere and heartfelt thanks to Registrar A.K.A

Lawrence for his support and help that I received during the period of

my investigation.

I am thankful to Dr. (Prof.) Masood Naseer, Dean Joseph College of

Business Studies for his support, criticism, care and help that he shared

during the preparation of this manuscript.

It will be my pleasure to record my thanks to Dr. Devraj Badugu,

(Associate Professor, Department of Business Studies, SHIATS) for his

encouragement and timely reminders to compete this work. My heartfelt

thanks are also due to Dr. Wilson Kispotta for his support, suggestion

and advice.

I am very much obliged to Dr. Nishi Tripathi (Assistant Professor,

Department of Psychology, SHIATS) for her constant help, support and

guidance right from the initial days of my work.

I record my heartfelt thanks to Dr. Keshav Shyam (Lecturer,

Department of Commerce, University of Allahabad) for his invaluable

guidance, time, support and the uncountable helps.

 I am really grateful to him for explaining me minutest detail to the

best which enabled me to give a shape to this work.

I am very much obliged and thankful to Dr. Rinku Jha (Lecturer,

Department of Commerce, MGPG Degree College, Fatehpur) for his

valuable guidance, constant support encouragement and pain staking

effort which he rendered during the period this work. I am very much

obliged to him for providing me with selfness support and strength, and

for managing all my affairs with case during my thesis work.

I express my sincere respects and gratitude to my father Col. H.K.S.

Mehta who has always supported me in every time that I have done

through out my entire life till date and showered loads of love

unconditionally for his confidence on me in successful completion of this

work.

Hereby I am deeply obliged and highly indebted for the

contribution encouragement and sincere effort consistent prompting of

my mother Mrs. Madhu Mehta, I feel short of words to express my

gratitude and acknowledgment towards their contributions.

My sincere respect and regards are also due to my sister Mrs.

Reena Chaturvedi (Assistant Professor, Joseph School of Business Studies

SHIATS) who is always there for me during sunshine or rainy days life,

for all her support, love and encouragement without which I could not

have dreamed of completing this work. I also appreciate the concern and

help of my brother-in-law Mr. Samit Chaturvedi. I owe a lot to my lovely

nieces Lubhanani and Tulip for their co conditional love, understanding

and support and for keeping me afresh with their funny antics and with

abundant love whenever I needed some during my thesis ware.

My Special thanks to the people whom I come across while

collecting information which has been instrumental in accomplishment

this of thesis work. There are many more who helped, co-operated and

shined interest in this project. I respect all those and wish to thank the

Almighty lord once again for making everybody in my contact, a helpful

person.

Date:-

Place :- Anupama Metha

 Contents

Chapter Particulars Page

List of Tables i-iv

List of Figures v

I. Introduction 1-53

II. Review of Literature 54-68

III. Research Methodology 69-97

IV. Findings and Discussion 98-158

V. Summary and Conclusion 159-167

Bibliography

Appendices
 Chapter-1

Introduction
 INTRODUCTION

Profits from customer relationships are the major aspect of all businesses.
So the basic objective of any business is profit maximization through customer
satisfaction. But it is always difficult to get customer satisfaction. A consumer
may state his needs and wants and yet may act otherwise. He may not be aware
of his deeper motivations and may change his mind at any stage.
In spite of such diversities among consumers there are many similarities
among them. To find these, the study of target customers’ wants, perceptions and
shopping and buying behaviour will be helpful as it will provide the information
necessary for developing new products, prices, channels of communication and
other marketing elements.
In the majority of markets, however, buyers differ enormously in terms of
their buying dynamics. The task faced by the marketing strategist in coming to
terms with these differences is complex. In consumer markets, for example, not
only do buyers typically differ in terms of their age, income, educational levels
and geographical location, but more fundamentally in terms of their personality
their lifestyles and their expectations.
The importance of consumer behaviour in marketing has been beautifully
described in A journal titled Modern Management, Kolkata, January 1999,
in the following words ; “Consumer behaviour is a rapidly growing field of
research and teaching, in addition to considerable value of marketing managers
and others who are professionally concerned with buying activity.” An important
reason for studying consumer behaviour is evaluation of consumer groups with
unsatisfied needs and desires. The essence of modern marketing concept is that
all elements of business should be geared for the satisfaction of consumers.
The challenge to the marketers is to determine the relative influence of the
various factors and to adapt and apply skillfully the so-called information to a
proper marketing mix. In other words, the total marketing effort must be so
designed that the consumer perceives its various features as providing an answer
to his perceived problems and felt needs.
Consumer analysis seeks to determine the underlying currents and
crosscurrents in the consumer’s minds. It focuses on the causes rather than the
results of effective marketing strategy and tactics employed by the firms that are
successful in the markets.
he world without electronic products is handicapped. As the lives of
people are gaining speed everything from entertainment, kitchen to office have
been mechanized to make the work easier and quicker. Daily chores that used to
take up hours have now reduced down to just a few minutes of exercise. We can
find a large variety of electronic gadgets catering to every demand of our day to
day life. Each of the electronic products have their own usage and importance in
our lives. Mobile phones have become a part of our daily wardrobe Televisions
and audio systems. Food processors and refrigerators, washing machines and
even computers have become some of the mandatory items in our lives, DVD
players, MP3 and MP4 players have become toys for teenagers and the still older
people have laptops, I-pods, Digital cameras, Camcorders and Home theatre
systems as their toys. As the population density in the metros is increasing the
buildings are clustering together which is eating up the space required for
everything. The demand for lighten and more compact electronic Gadgets is on a
high. Electronics that require minimum space with minimum power utilization
and maximum output are high on the priority levels of the buyers. We can find
top companies like LG, Samsung, Tyco, Philips, Panasonic, BPL, Sony etc.
Offering electronic appliances to suit all pocket and usage needs. The Indian
consumer is now aware of the international standards and the latest electronic
items available in the market. Imported electronic goods are breaching the Indian
Electronic market that has shown a huge appetite to all the imported appliances.
The consumers choose smartly those electronics which satisfy their
requirements and provide best value for money.
 Products and their activity makes them in demand, demand of a product
depends upon its utility, availability, reach and need.
If a product is well marketed then its demand can be created. Need of a
product is created by the product makers. To invert a new product is not a big job
but to maintain its need and demand is a big job.
Lawrence Dandurand, encyclopedia of business, second edition states
that- Marketing strategy is a conscious approach to accomplishing something
strategy precedes marketing and marketing strategy. The first time a human
planned an approach for achieving a desired end a goal or objective - he or she
was developing strategy. The strategy can be formulated by individuals, groups,
and organisations. In modern times, strategy can be formulated by complicated
and sophisticated programmed software operating on computerized system.
Original, formalized discussions of strategy or strategy theory are
associated with politics, war and the military. The term "strategy" comes from
the Greek word stratigiki, meaning generalship. It also can mean approach,
scheme, design and system and is associated with terms such as intrigue,
cunning, craft and artifice.

MARKETING STRATEGY
A marketing strategy is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to increase sales
and achieve a sustainable competitive advantage. A marketing strategy should be
centered around the key concept that customer satisfaction is the main goal.
Baker, Michael (2008) “The strategic marketing plan audit”, Cambridge
strategy publication, states that - A marketing strategy is most effective when it is
an integral component of firm strategy defining how the organization will
successfully engage customers, prospects and competitors in the market arena,
corporate missions, corporate strategies and corporate goal. As the customer
constitutes the source of a company's revenue marketing strategy is closely
linked with sales. A key component of marketing strategy is often to keep
marketing in line with a company's overarching mission statement.

A marketing strategy serves as the foundation of a marketing plan. A

marketing plan contains a list of specific actions required to successfully
implement a specific marketing strategy.

A strategy is different than a tactic. While it is possible to write a tactical

marketing plan without a sound, well considered strategy, it is not recommended
without a sound marketing strategy, a marketing plan has no foundation
Marketing strategies serve as the fundamental underpinning of marketing plans
designed to reach marketing objectives. It is important that these objectives have
measurable results.

A good marketing strategy should integrate an organization's marketing

goals, policies, and action sequences (tactics) into a cohesive whole. The
objective of a marketing strategy is to provide a foundation from which a tactical
plan is developed. This allows the organization to carry out its mission
effectively and efficiently.

Marketing strategy directs your marketing activities. Marketing strategy is

the way to make sure that business is getting maximum impact from limited
marketing budget and time.

The simplest way to think about marketing strategy is starting at the

bottom.
 Marketing
Plan

Marketing
Mix

Market Strategy

Business Goals

Fig-1.1 Simplest way to think about marketing strategy

• Starting with business goals : These are the highest level objectives of the
business, or mission statement.
• Next is marketing strategy : The high level rules that will govern what
market efforts you focus on.
• Marketing mix; define the plan for product, pricing, place and promotion.
• Marketing plan is the final step which will describe the specific, detailed
marketing activities that are planned to achieve the marketing strategies
and business goal.

Marketing Strategy has its roots in the basic concepts of marketing and
strategy. Marketing strategy was probably used the first time that two humans
engaged in trade, i.e. an "arm's - length" transaction. Certainly, early
civilizations, such as the Babylonians, the Chinese, the Egyptians, the Greeks,
the Romans and the Venetians, had developed marketing strategies for their
trading activities. They probably discussed appropriate strategies for given
situation and even taught these strategies to friends, family members and
subordinates. The actual functions of marketing, i.e., the distribution function
was performed whenever exchange occurred.

Marketing basics, marketing strategy based on market needs, targets and

goals- “A strategy consists of a well thought out series of tactics to make a
marketing plan more effective. Marketing strategies serve as the fundamental
underpinning of marketing plans designed to fill market needs and reach
marketing objectives.”

A marketing strategy often integrates an organizations marketing goals,

policies and action sequences (tactics) into a chosive whole. Similarly, the
various strands of the strategy, which might include advertising, channel
marketing, internet marketing, promotion and public relations can be
orchestrated. Many companies cascade a strategy throughout an organization, by
creating strategy tactics that then become strategy goals for the next level or
group. Each are group is expected to take that strategy goal and develop a set of
tactics to achieve that goal.
Marketing strategies are dynamic and interactive. They are partially
planned and partially unplanned. The marketing strategy is shaped by overall
business goals. It includes a definition of business, a description of product or
services, a profile of target users or clients and define's company's role in
relationship to the competition.

The marketing strategy is essentially a document that is used, to judge the

appropriateness and effectiveness of specific marketing plans.

Marketing strategy is a summary of company's products and position in

relation to the competition. Sales and marketing plans are the specific actions
which are undertaken to achieve the goals of marketing strategy.
 Marketing plan is the practical application of marketing strategy. These
can't be a marketing plan without a marketing strategy. But a marketing plan
without a marketing strategy is a waste of time. The marketing strategy provides
the goals for marketing plan is the specific road map to the destination.

Marketing are not in agreement on a common definition of marketing

strategy. The term generally refers to a company plan that allocates resources in
ways to generate profits by positioning products or services and targeting specific
consumer groups. Marketing strategy focuses on long-term company objectives
and involves planning marketing programes so that they help a company realize
its goals. Companies rely on marketing strategies for established product lines or
services as well as for new products and services.

Marketing strategy is the process of planning and implementing company

policies towards realizing company goals in accordance with the company vision.
Marketing strategies include general ones such as price reduction for marketing
share growth product differentiation, and market segmentation, as well as
numerous specific strategies for specific areas of marketing.

Competition is the primary motivation for adopting a marketing strategy.

Most companies face some form of competition, no matter what the industry,
because of deregulation and because of the globalization of many industries.
Consequently marketing strategy has become all the more important for
companies to continue being profitable.
Business dictionary (www. Business dictionary. Com./ definition/marketing-
strategy html)-According to it - "Marketing strategy is a written plan (usually a
part of the overall corporate plan) which combines product development,
promotion, distribution, and pricing approach, identifies the firm's Marketing
goals and explains how they will be achieved within a stated timeframe.
Marketing strategy determines the choice of target market segment, positioning
marketing mix, and allocation of resources."

American Marketing Association, has stated that- "Marketing strategy is a set

of specific ideas and actions that outline and guide decisions an the best or
chosen way to create, distribute promote and price a product or service (Manage
the marketing mix variables)"

In a narrow sense, marketing strategy is a specified set of ways developed

by marketers to achieve desired market ends. E.Jerrome McCarthy and
William D. Perreault Jr. authors of Basic Marketing, stated that “a marketing
strategy defines a target market as well as an appropriate marketing mix and an
overview of what a company will exploit a given market.” In a marketing
planning context, where marketing strategy tends to be developed, McCarthy
and Perreault indicated that marketing strategy planning means finding
attractive opportunities and planning ways to capitalize on such opportunities.

In a broad sense, marketing strategy is composed of objectives, strategies

and tactics. Objectives are ends ought. Strategies are means to attain ends, and
tactics are specific actions i.e. implementation acts. A marketing objective of
increasing market share is linked to the marketing strategy of altering the product
line in order to reach new market segments and to the marketing tactic of
introducing a new brand name and various promotions for a targeted portion of
the market.
V.S. Ramaswamy and S. Namakumari (2009) “Marketing
management” states that Marketing strategy represents the plan by which the
firm delivers its value to the customers. It also specifies how the firm would be
enabled/empowered to deliver that value. It is marketing strategy that specifies
how the firm would go about its value selection, value creation, and value
communication.
 Marketing strategy enables the business unit attain its Marketing
objectives. The objective indicate what the firm wants to achieve; the strategy
provides the design for achieving them. Put differently the objective tells where
the firm wants to go and strategy shows how it will reach there.1
Marketing strategy enables the unit realize its targeted sales income and profits
pertaining to a bran/product.

Formulation of marketing strategy consists of just two steps.

Formulation of marketing strategy consists of just two steps:

(a) Segmentation
1. STP (b) Targeting
(c) Positioning

2. Assembling the marketing mix

The marketing strategy for a given product/brand takes shape when these
two steps are completed. As segmentation, targeting, and positions form one
homogeneous group of tasks in this process, they are grouped as one step and
referred to by the acronym STP. Assembling the marketing mix/4Ps is the other
step.
STP and Marketing Mix together constitute the marketing strategy of the
given product. Segmentation serves as the prelude to target market selection. It
brings to the fore the various possibilities lying within a heterogeneous market.
The target market that is arrived at through segmentation shows to whom, the
unit intends to sell the product. Positioning and marketing mix together show
how - using what uniqueness or distinction - the unit intends to sell it.

1
offering a lower price over the long term.
1- (a) Segmentation of the market
Segmentation of the market is the starting point of whole exercise. The market
for any product is a heterogeneous entity. In fact, it is stratified based on several
characteristics. Segmentation is a process by which people try to understand the
heterogeneous market by viewing if from different angles and grasping the
commonalities as well as differences contained therein, and then divide the
whole market into segments, each homogeneous within itself, sharing certain
common characteristics.

1. (b) Targeting (picking the appropriate segments)

Targeting means picking up of the appropriate market segments. The
process of segmentation throws up not one but several market segments, with
varying potential, profitability and risks. The firm may not be interested in all the
segments. There may immediate profits and the ones that call for heavy
investment in market development. There may also be segment that shows great
potential, but display tough barriers to entry. As such, the question - which
segment/segments the firm should select as its target market - assumes crucial
importance.
Target market selection is a part of marketing strategy formulation with
the selection of the target market, a major part of the marketing strategy of the
product is determined, defined and expressed. A part of the market do we serve?
What part we choose not to serve In effect, target market selection boils down to
deciding - what parts of the market are we going to serve? What parts of the
market we choose not to serve? And, what is the logic of selecting a particular
segment? In other words, it is basically a question of balancing the attractiveness
of the various segments with the objectives and resources of the firm. Target
market selection is, therefore, the first burden of marketing strategy formulation.
When the target market for the product is selected the right way. ('rightness'
obviously gets proved only subsequently) half the job of marketing strategy
formulation is over. The firm decides: This is the arena we will play in. So, target
market selection becomes fundamental to marketing strategy formulation; in fact
if becomes fundamental to the market game as a whole. Target market
determines the broad contours of the marketing strategy. After all, the whole
purport of marketing strategy is only to serve the target market effectively and
successfully. In fact, it is incorrect to treat target market selection and marketing
strategy as two different entities. They are parts of a unified process.

1. (c) Positioning the offer

The next major dimension of marketing strategy relates to the positioning
of the offer. The firm has already selected the target market and decided its basic
offer.
The point is that the firm has to clarify what it proposes to do with its
offering, how it wants the offer to be perceived by the customer, what position it
seeks in the minds of the customers and what image it proposes to build for its
offer.
These are the issues the firm has to grapple with in positioning. And,
while formulating the marketing mix too, the firm will agitate over these issues.

2. Assembling the Marketing Mix

Once STP is fixed, assembling the marketing mix becomes the main task

in marketing strategy formulation. In the execution of the strategy too, the

marketing mix plays the lead role. It is by operating the marketing mix that a

marketing man executes his marketing strategy.

 He fundamental of marketing mix. Assembling the marketing mix means

making the best combination of the 4Ps. Best combination implies one that

delivers the best possible value to the target market and in turn brings the best

possible value back into the firm's kitty. Involved in this process is the choice of

appropriate marketing activities and allocation of the appropriate portion of the

marketing effort/resources to each of them. The marketing man basically tries to

know how he can generate the targeted sales and profit. He considers different

marketing mixes with varying levels of expenditure assigned to each marketing

activity and tries to figure out the effectiveness of the different combinations in

terms of the possible sales and profit. He then chooses the combination/mix that

is best according to his judgment.

Assembling the marketing mix involves decisions relating to each of the

marketing mix elements, product, price, channel and promotion and the linkages

among them. For example, one has to decide:

Product design, features, brand name, models, style, appearance.
• Product quality.
• Warranty.
Product
• Package: design, material, size, appearance and labeling.

• Service: pre-sale and after-sale, service standards service

charges.

• Channels of distribution: Channel design, types of

intermediaries, location of outlets, channel remuneration,
Place
dealer-principal relations, etc.
• Physical distribution: Transportation, warehousing,
inventory levels, order processing, etc.

• Pricing policies, margins, discounts and rebates.

Price
• Terms of delivery, payment terms, credit terms and
installment purchase facilities; resale price maintenance.

• Promotion selling: Selling expertise, size of sales force,

quality of sales force, etc.
Promotion
• Advertising: Media mix, vehicles, programmes.
• Sales promotion: Gifts, price-offs, coupons, contests, prizes
etc. Publicity, and PR.

Fig. 1.2 A more exhaustive listing of marketing mix elements/sub-elements

The marketing mix can be assembled in many different ways
It is obvious that theoretically the marketing mix elements can be
combined in an infinite number of ways. In practice too, marketing managers
usually consider many different combinations and select the best. The marketing
mix elements are substitutable by one another to some extent. Marketing
managers can achieve superior result with a carefully selected mix. And, they can
also achieve the same objective, using different marketing mix. They can take
away some resources from one element and assign them to another and achieve
superior result.

Selecting the optimum combination is the name of the game :

The name of the game is to select a combination, which will have the
desired impact on the target market and will also be cost-effective. The
marketing objective and context decide the weightage to be assigned to each
element and sub-element. The marketing manager works out different
combinations of sales levels and marketing mix spending and chooses the
optimum one.
Which combination of the mix elements gives the best results from sales, profit,
and other relevant angles, is the issue.

The elements have to be harmonized and synthesized :

The effectiveness of any marketing programme depends directly on the
extent to which the marketing mix is able to harmonise and synthesise the
different elements into a unified entity.

Deciding the weightage for each P :

Earlier we saw that deciding the weightage to be assigned to each of the
4Ps is the crux of marketing mix formulation. There is no standard formula in
this respect. One firm may assign maximum weightage to the product, and build
up its technological superiority and functional benefits. It may opt for a better
design. So, it follows that marketing mix formulation has to take its cue totally
from the customer. One has carry out an in-depth customer analysis and give
appropriate weightage to different elements based on what the customer
considers as important. The task is to assemble a mix that will give the customers
the best value, and which will still meet the organizational requirements of profit
and growth.

Marketing mix cannot be a static thing; it has to be juggled as required :

It is not as though a firm can rest once it has assembled and put through a
marketing mix for a product. Assembling the marketing mix is not a one-shot
assignment. No marketing manager can assume that his job is over once a
marketing mix is put in place. The marketing mix is a dynamic entity. It is to be
monitored closely and modified and manipulated, depending on requirements.
Since the task of marketing is to meet the changes taking place in the market,
marketing mix has got to be a flexible and dynamic entity. The marketing
manager monitors the conditions in the market and keeps juggling the mix. There
is no such thing as a for-ever-valid marketing mix. The optimum combination is
no permanent thing.

Change in environmental variables warrants the mix to be juggled :

Constant flux in environmental variables is the main reason why the mix
needs constant juggling. The marketing man has to respond properly to the
changes. Take competition, a major environmental variable. Competitors will
naturally be making their tactical maneuvers in the market all the time. They will
introduce a new product, manager has to meet all these maneuvers and take care
of the competitive position of his firm/brand in the market. The only way he can
achieve this is by juggling his own marketing mix. Similar is the case with other
major environmental variables like economic conditions and government
policies. All of them keep changing and the marketing man has to keep adjusting
the marketing mix accordingly.
Change in customer preference warrants the juggling :
In many businesses, customer is the most fluctuating environmental
variable. Customer tastes and preferences change very fast. Brand loyally shifts
equally fast; customers purchasing power too changes over time. The marketing
manager is vitally concerned with these changes. He has to gather timely insights
about these changes and respond to them through appropriate modification of his
marketing mix.

Change In PLC stage too demands change in the mix :

The growth of a product/brand over different stages of its growth cycle
(Product Life Cycle) is another criterion influencing change in its marketing mix.
As a product evolves from its lunch period towards different stages of growth,
maturity and decline, it will demand different treatments from the point of view
of pricing, distribution, promotion and even product attributes. In fact, not only
the 4P-combination but, even the target market and positioning -i.e. the entire
marketing strategy-will change through this life cycle.

Changes within the firm too necessitate modifications in the mix :

Changes taking place within the firm too, necessitate modifications in the
marketing mix. Changes in the corporate/competitive strategy of the firm,
changes in its product lines, organization structure, resource level, will al
necessitate changes in the marketing mix for a given product/brand.

The marketing mix has to be separately worked out for each brand :
A multi-product firm has to develop a marketing mix for each of its products. In
fact, the mix has to be worked out for every brand because the market fight is
finally at the brand level. And it is the marketing mix that decides how much
leeway and resources that brand has at its disposal in this fight.

Marketing mix is the visible part of marketing strategy :

 An interesting fact about the marketing mix is that it is the visible part of
the marketing strategy of a firm. After all, no firm notifies its marketing strategy
in black and white, to the outside world. But the outside world does have the
means of deciphering the marketing strategy of a firm. The strategy manifests
through ie marketing gmix of the firm, i.e., through what the firm does with its
product, promotion, price and channel. Marketing mix of the firm, i.e., through
what the firm does withits product, promotion, price and channel. he outside
world, whether it is the customer, or the competition, or the trade, acquires an
idea of the marketing strategy of a fir, once the latter finalises its marketing mix
and puts it in the market in the form a marketing programme. In other words, the
marketing mix of a firm is actually the marketplace manifestation. its marketing
gstrategy of a firm will come handy in formulating one's own
competitive/marketing strategy. Because, the strategies of the competitors can be
discerned through their marketing mix, and then, one's own strategy can be
appropriately formulated.

STP plus marketing-mix sums up marketing strategy :

'STP plus marketing-mix', or 'STP plus 4Ps' constitutes an easy-to-grasp
description of marketing strategy. No other clue than these two steps is required
to understand it. STP is the preparatory part of strategy formulation and the
strategy takes shape when the marketing mix/4P is constructed upon the STP. In
fact, the entire marketing can be explained in terms of STP and marketing mix. If
you decide the STP and the mix and implement the mix-you have completed
marketing. It then follows that it should be possible to state in precise terms, the
marketing strategy of any firm in terms of STP and marketing mix.

CONSUMER BEHAVIOUR
 Consumer behaviour can be said to be the study of how individuals make
decision an how to their available resources (time, money, effort) an various
consumption related items. Consumer behaviour tells marketers to resolve every
activity around the ultimate consumer and gauge their behaviour by specially
focusing on :

Who buys products or services?

How do they buy products or services?

Where do they buy them?

How often do they buy them?

When do they buy them?

Why do they buy them?

How often do they use them?
These questions help in understanding better what factors influence the
decision making process of consumer. The decision making process identifies the
member of people who are involved in this process and ascribes a role to them -
like the user, decider influencer and buyer.

The following diagram (fig 1.3) will help in throwing light on the
consumer decision making behaviour -
High involvement Low involvement
purchase decision purchase decision
Decision making complex decision Variety seeking (cereals)
(information, search making (Automobile,
consider brand alternative) Auto)
Habit Brand loyalty Inertia
(Little or no information (cigarettes, (canned negetables paper
search, consider only are perfumes) towels)
brand)
Fig 1.3 Consumer decision making
From the above figure it is seen that the involvement of the consumer in
the decision making process will vary with the type of purchase involved.
 It is very important to understand what information the customer feels will
help them to be able to evaluate goods and services.
In the present services consumer beahviour includes the post purchase
satisfaction or dissatisfaction behaviour besides the facts such on what features or
product design will be acceptable to consumers what benefits are the consumers
seeking from their products, what price will be suitable etc. Because the post
purchase behaviour of the consumer will have repercussions on the
communication (word - of - month) they have with the firm's prospective
customers.
The various factors influencing the consumers purchase decision is given
here under.

Information The Decision Response

Stimuli processing Consumer making

cognitive Consumer Social class Influence Culture Situational

personal groups variables
thinking
• Social
characterstics • Reference • Values influences
process class groups beliefs
• Demographic structure • Family • Cross • purchase
• perception
• Lifestyles • society • Opinion culture occasion
• Attitudes • Personality leaders influence • market
• Needs & traits • Innovation • sub communi
motives cultural cation
influence • product
positioning
• stores
patronage
shopping
behaviour
• price
• sales
Individual factors Environmental factor personnel
influence
Fig 1.4 The various individual and environmental factor influencing
purchasing decision.
Fig 1.4 shows that right from stimuli (stimulant) till the consumer response, there
are many individual and environmental factors influencing the consumers
purchase decisions.
 Joe Kent Kerby (1975) “Consumer behaviour conceptual
foundations.” Has stated, knowing his customer is a marketer’s most important
responsibility. Technically understanding of his product will not compensate for
an inadequate under standing of the people who are most likely to buy it. In the
consumer goods sector, it is not uncommon to find potential buyers who have no
interest in the technical aspects of a product.
Knowing something about the customer’s personal needs frequently
constitutes the bridge that our small chasm separating failure from success.
Consumer behavior is the study of when, why, how, where and what
people do or do not buy products. It blends elements from psychology, sociology,
social, psychology, anthropology and economics. It attempts do understand the
buyer decision-making process, 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 an the consumer from groups such as family, friends, reference
groups, and society in general.
Consumer behavior is one of the topic that marketer uses to better
understanding of consumer and how their behaviour react when come to buying
decision.
Suja R. Nair (2001) “Consumer behavior in Indian prospective”
Himalaya Publishing House. Has stated- Consumer behavior is the income
available for discretionary spending among segments of the population. It is a
measure of the ability and willingness to buy goods or services. Consumer is
study of how people behave when obtaining, using and disposing of products
(and services). Consumer behaviour is the buying trends and habits of consumers
in the purchasing and usuage of goods and services. In short, consumer
behaviour, is the behavior of the consumer in the market place of products and
services.
 Consumer behavior can be defined as the behaviour display in searching
for purchasing, using, and evaluating products, services and ideas which they
expect will simplify their needs. Consumer behaviour is concerned not only with
what consumers buy, but with why they buy it, when, where and how often they
by it. Consumer behaviour research takes place at every phase of the
consumption process : before the purchase, during the purchase and after the
purchase. Consumer behaviour is interdisciplinary, that is, it is based upon
concepts and theories about people, which have been developed by scientists in
such diverse disciplines as psychology. Sociology, social psychology, culliras
anthropology and economics.
Marketing firm use their knowledge of consumer behaviour to design
marketing strategies to measure marketing performance and to segment markets.

Consumer behaviour is defined variedly.

The Dictionary of Marketing and Advertising defines consumer

behaviour as “observable activities chosen to maximize satisfaction through the
attainment of economic goods and services such as choice of retail outlet,
preference for particular brands, and so on.”
According to Ostrow & Smith’s Dictionary of Marketing, the term
consumer behaviour refers to “the actions of consumers in the market place and
the underlying motives for those actions. Marketers expect that by understanding
what causes consumers to buy particular goods and services they will be able to
determine which products are needed in the market place, which are obsolete,
and how best to present the goods to the consumer.”

According to Loudon and Della Bitta, consumer behaviour is “the

decision process and physical activity individuals engage in when evaluating,
acquiring, using, or disposing of goods and sevices.”
 For Schiffman and Kanuck, the term ‘consumer behaviour’ refers to
“the behaviour that consumers display in searching for, purchasing, using,
evaluating, and disposing of products and services that they expect will satisfy
their needs” and the study of consumer behaviour is the study of how individual
make decisions to spend their available to spend their available resources – like
time, money and effort – on consumption – related items.”

They study of consumer behaviour will be incomplete if it talks about only

one role of the consumer. While some purchase situations involve at least one
person acting in one role, in other circumstances a single individual can take on
several roles at the same time. Table 1.1 shows some of the different roles taken
by the consumers.

Table 1.1 Some Consumer Behaviour Roles

Description Role
(a) The individual who determines that some need or want in sot Initiator
being met and authorises a purchase to rectify the situation.
(b) A person who by some intentional or unintentional word or Influencer
action influences the purchase decision, the actual purchase,
and/or the use of the product or services.
(c) The individual who actually makes the purchase transaction. Buyer
(d) The person most directly involved in the consumption or use User
of the purchase.

Even though it is considered to be incomplete to treat only on consumer

role, to simplify the study. Mostly on role is emphasized with adequate treatment
to the others. When it becomes useful to consider4 only on role, usually the
buyer role is chosen. This approach is considered useful because even when told
what to purchase, the buyer often makes decisions regarding purchase timing,
store choice, package size, and other factors. Even while allowing for the
influence of others on the purchase decision, the focus on the buyer still gives
considerable flexibility while concentrating on one consumer role.

MODEL AND ROLE OF MODELS

A model is an abstract conception of the real world situation. The question

is why do we need and abstract conception? Real world situation is very
complex, where many forces work simultaneously. As a result, it is difficult to
understand the working of the process and hence, predicting future course of
action. Models are used to simplify these problems. They give researchers a
guideline to work with, clarifying the relation between the various factors and
their ‘likely’ impact on the main process.
Consumer behaviour is a multistage process, and actual buying comes at a
much later stage. It becomes crucial for the marketer to understand the initial
stages so that they are able to predict the buying stage. This makes the study of
consumer behaviour models almost mandatory. Consumer behaviour models
serve two distinct functions:
(i) They explain the factors that affect purchase of a particular type of
goods and services.
(ii) They allow future predictions to be made and are able to assess the
likely outcomes of various marketing strategies.
In order to perform the above-mentioned functions, the consumer
behaviour model must be relevant (must be as much as possible near to
the real market situation), comprehensive (they should not be vague and
poorly constructed) and valid (the outcomes predicted by the model
should be testable and verifiable). If these qualities are maintained then
the models become not only useful tools but also essential tools for the
marketer.
 Fig. 1.5 General Model of Consumer Behavior and Thought Processes

The above figure presents a descriptive model. It contains terms that refer
to forces that may, in any given purchase situation, impinge upon the decision of
an individual to buy or not buy a particular product or brand. Its purpose is to
provide perspective and help the reader recognize that any be havioral pattern is
likely to be indluenced by a combination of forces.
Figure 1-5 represents a single individual. That is, the model relates to an
individual buyer rather than a group of individuals, although the influences listed
under “Social Factors” are often exerted by groups.

Kotler’s Consumer Behaviour Model

A consumer’s decision to buy a product or service is the result of interplay

of many forces or stimuli. The starting point is the marketer’s stimuli in the form
of product offering through some promotional method, available at some outlets
at some outlets at a price. The marketing stimuli for the product includes locating
target markets and segmentation of market as per the customer’s needs. The
Consumer Buying Model is shown in Fig 1.6. The marketing and environmental
stimuli enter the buyer’s mind through cultural, social, personal and
psychological factors. When the marketing and other stimuli come in contact
with buyer. his decision process is initiated. The marketer has to correctly read
the buyer’s conscious/unconscious behaviour to stimulate positive response.
Every person has his/her distinct set of standard of judgment which is reflected in
every individual. However, there is some commonality between all of us which
make a marketer to classify and analyse the consumer behaviour. These are
known as similarities or universals.
Consumer behaviour is affected by a host of variables, ranging
from personal motivations, needs, attitudes and values, personality
characteristics, socio-economic and cultural background, age, sex, professional
status to social influences of various kinds exerted by family, friends , colleagues
and society as a whole. The combinations of these various factors produce a
different impact on each of us as manifested in our different behaviours as
consumers.
 Fig. 1.6 Kotler’s Consumer Buying Behaviour Model

Dr. R.L. Varshney & Dr. S.L. Gupta “Marketing management text
and cases an Indian perspective.” Has mentioned the types of models in his
book.

TYPES OF MODEL

Market researchers, traditionally, used economic models to predict the

consumer behaviour-the concept of price, income, etc. and their relation to
buying behaviour- to, predict the outcome. But, in reality it was found that socio-
psychological factors go to a great extent in forming a buying behaviour. As a
result marketers started using psychological models to predict the buying
behaviour. Between the pure economic models and pure psychological models.
The researchers were using monadic models, i.e., using only one discipline of
study. Real buying behaviour is affected and influenced by economic,
sociological. psychological, environmental and various other factors.
simultaneously. Thus the eclectic models or the multivariable models, which take
into account all these influences, simultaneously, are much more comprehensive
and relevant. Although checking the validity of these models becomes relatively
difficult.

A- MONADIC MODELS OF CONSUMER BEHAVIOUR

(i) Elasticity model

This is a pure economic, more precisely, micro-economic model.
The model says : as the price increases, other things remaining
constant (ceteris paribus), demand of the commodity will go down. But
by how much it will go down, will depend on the nature of the
commodity. All such commodities are called price elastic. In the same
way commodities can be income elastic and income inelastic (this sets
a relation between the change in consumer income and change in the
quantity demanded).

(ii) Response hierarchy model

The model attempts to predict the sequence of mental stages that
the consumer passes through while purchasing a product. this
model is purely psychological. It covers three mental stages,
namely, cognitive, affective and behavioural. Cognitive stage deals
with creation of knowledge or awareness in the mind of the
consumer. The next stage is concerned with developing an interest
in the mind of the consumer which results in developing an attitude
or change in attitude towards the specific product. The attitude
formation finally brings us to the behaviour formation, the buying
 behaviour. One of the most popular response hierarchy models in
the AIDA Model. AIDA stands for attention, interest, desire and
action, depicting the sequence of mental stages that the consumer
passes through before buying.

Stage AIDA Model

Attention

Cognitive Interest

Affective Desire

Behaviour Action

Fig. 1.7 Response Hierarchy Model

(iii) The Black Box model

Black Box model is also called stimulus response model.

Consumer’s mind and though processing is treated like a “black box”
which cannot be opened to find out its working. The model
highlights the input stimulus like promotional advertisement and
resultant output, the purchase behaviour, as shown in Fig. 1.8
 Fig. 1.8 Black box model

B. MULTIVARIABLE MODELS OF CONSUMER BEHAVIOUR

More comprehensive and relevant models formalising the multiple

influences on the purchase decision are the multivariable models. Consumer
is taken as a problem solver. the problem is, “to buy or not to buy”. The
consumer receives information from various sources, which is processed in
the central processing unit (the mind), influenced by external environment
like economic, social, cultural and psychological. Some of the well-known
multivariable models are :
(i) The Howard-Sheth model

Fig. 1.9 Howard-sheth model

Howard-sheth model has a number of distinct features like – it highlights

the role of consumer satisfaction, which consumers seek in relation to the
purchase of goods and services. Along this, the model also highlights the
need to clearly understand the motivational force which guides the purchase
behaviour. Model brings out that the buying process is an end product of the
objective (rational) as well as subjective (emotional) element.
(ii) The Howard-Ostlund model
 Howard and Ostlund model is an improvement on the Howard-
Sheth model, in terms ofgreater predictability of the consumer’s buying
decision. However, the model is much more complex than the Howard-Sheth
model as seen in Fig. 1.8.

Fig. 1.10 Howard and Ostlund model

Although the model is more comprehensive, it is extremely difficult to

understand, because its variables are further divided into too many “content”
variables. i.e. which deal with what the buyer thinks –brand comprehension,
personal attitudes, etc and “structural” variables, i.e., how the buyer thinks –
media selection process, perceptual bias, etc.

(iii) The Engel, Blackwell and Miniard model

 This model was originally developed in 1968 by Engel. Kollat and

Balckwell, but has undergone several revisions. In 1990, the most recent

version has come out, given by Engel, Blackwell and Miniard. The model is

shown in Fig. 1.11. The basis of the model takes the simple process of

consumer behaviour, as a decision process comprising of five manor activities

over the period of time.

Following are the five major activities :

(i) Need recognition:

(ii) Search for information;

(iii) Alternative evaluation;

(iv) Purchase: and

(v) Outcome.

Like Howard’s model, this model is also comprehensive, and the greatest

strength of the model is flexibility. When dissatisfaction arises from one

activity, the buyer goes back to some earlier activity. While the weakness of

the model is in the description of the role of certain influencing variables. For

example, the role of environmental factor is not clearly mentioned for it is

affecting the buying process.

 Fig. 1.11 The Engel-blackwell-miniard model

(iv) The Nicosia model

 Francesco Nicosia gave a consumer behaviour model based on the
technique of computer flow charting with feedback loops, as shown in Fig.
1.12.
Nicosia believed that simulation techniques are effective in explaining, in
greater depth and detail the consumer decision process. A distinctive feature
of this model is the shift of emphasis away from the buying act towards the
actual process of decision making, which precedes and succeeds the buying
act.

Fig. 1.12 The Nicosia model : A structure of consumer behaviour.

model is a pioneering model as far as adaptability to mathematical techniques

are concerned. This makes further research on the model simple.

(vi) The Andreasan model

 The model develops a general model of buyer’s choice behaviour,
built upon several conceptions about attitude formation and changes drawn
from social psychology. The model is given in Fig. 1.13
According to Alan R. Andreasan, key to attitude change is
exposure to various kinds of information. However, the exposure may be
voluntary or involuntary. The entire process, starting from stimulus to
outcome, comprises of four stages, namely, input stimuli, perception and
filteration, disposition changes and various feasible outcomes. There are two
principle strategies adopted by marketers in order to attract favourable
purchase decisions. Market segmentation strategy attempts to fit in existing
attitude and behaviour in terms of product design, distribution, etc., while
product differentiation strategy attempts- to change attitude and behaviour-to
make the consumer accept a particular product. Andreasan believed that the
model will be useful
 Fig. 1.13 Andreasan model of complex customer decision

(vii) The Product Adoption model

Given the fact that much of marketing communication activities are

related to the launching of new products, developing a consumer behaviour
model especially for finding how consumers ‘adopt’ the process by which an
‘innovation’ is communicated over time among the individuals within society
who constitute the target market. Innovation is any new product or service
that is coming to the market. Rogers suggests that diffusion of innovated
product follows a normal curve’, while it permeates through the classes of
consumers. The diffusion process depends on four factors : (i) the innovation
itself; (ii) th communication process and channels used: (iii) the time at which
individuals decide to adopt the product: and (iv) the various classes of
consumers.

Fig. 1.14 Product innovation model

The model is successful in helping the marketers understand the process

of diffusion. This is significant especially for FMCG companies, which
frequently bring out new products for mass market along with heavy promotional
spending, assuming that all the consumers will accept the product. The time
dimension in learning and adopting is of crucial importance. Similarly for
technical goods, like a lap top or palm top computers, it is very important for th
marketer or producer to understand the period when they can expect acceptance
of product by the majority. This is very important to know as these products are
always under the threat of technological obsolescence.

(viii) The model of family decision-making

Certain products and services like washing machine, an automobile,

buying a house, planning for a holiday, are all family decisions. Members of the
family interact with each other in the process of buying decision. These
interactions are determined by the different consumption related ‘roles’ played
by the family. These roles are :
(a) Influencers. The family members who provide information and
guide others, in other words, influence the decision.
(b) Gate keepers. The family members who control the flow of
information and guidance to buy.
(c) Deciders. The family members who have the power (singly or
jointly) to decide the buying of the product or service.
(d) Buyers. The family member/members who actually buy the
product or service. The child might be the decider of drinking chocolate which he
wants to consume, but mother is the person who is buying it.
(e) Preparers. The family members who transform or prepare the
product into the form in which it is consumed.
Role played by different family members will be different for different
products.
 Fig. 1.15: The family buying decision model

Although the various model given above have relevance in study of

buying behaviour of consumers for various products but since we are dealing in
electronic products of entertainment segment which is influenced by the black
box model which is a monadic model, we would like to discuss this model in
detail as compared to other models which are discuss in brief.

Marketing strategy and Consumer behaviour

Only an understanding of the relevant markets can help in analysing of

marketing opportunities and then devise suitable marketing programme
accordingly. Market itself means-buyers that is, it is necessary to understand the
buyers around whom all the marketing plans are formulated and implemented. In
order to meet competition at the market place the marketing managers are using
various methods to add value to the final product which will reach the hands of
the consumers. This means in the ever changing marketing environment, there is
a growing concern or awareness among the marketers to go far a careful study of
the consumer behaviour, which provide the basis for all marketing activities.
Marketers have come to realize that their effectiveness in meeting
consumer needs directly influences their profitability. the better they understand
the factors underlying consumer behaviour the better able they are to develop
effective marketing strategies to meet consumer needs.
The philosophy that marketing strategies rely on a better knowledge of the
consumer is known as the marketing concept. The marketing concept states that
marketers must first define the benefits consumers seek in the marketplace and
gear marketing strategies accordingly.
The goal of all marketing strategy should be satisfy the needs of individual
consumers in (desired product benefits), thought process (attitudes and
perceptions), and characteristics (lifestyle and demographics). This information
is then aggregated to define segments of consumers that can be targeted with the
company's offering.
The marketers must continue to be sensitive to changes in consumer
needs, demographic characteristics and lifestyle to develop effective marketing
strategies.

Philip Kotler has suggested the 'Feed' to probe and find answers to four
basic questions to understand consumer behaviour These are :
What products do the consumers buy?
Why do they buy the products?
What is the consumer behaviour process adopted by them?
Who buys the various products?
What is the consumer behaviour process adopted by them?
Who buys the various products?
The revolution in communication technology, are forcing marketers to
look beyond time tested concepts such as brand loyalty and mass marketing.
Marketers are trying to determine the underlying needs and motives of
consumers as well as the various factors which influence the formation of these
needs and the satisfaction of these. Simulate eously, marketers are also trying to
understand the 'learning' process adopted by consumer and buyers. The learning
process can also be linked to other cognitive structures such as (values) attitudes
and beliefs.
Consumer behaviour is also influenced by other psychological concepts
such as perception, motivation and personality. Knowing the impact of these
concepts on consumer behaviour helps the marketers in the generation of new
product ideas and adopt customization for the core product, some additional
features and by offering of additional services, all done with the intention to add
to customer delight.
Firms have realised it sole dependence an the traditional demographic
factors or past purchase behaviour or consumption pattern cannot be indicative of
the present day consumer buying behaviour.

Fig. 1.1

Identify
Through Customer Proper
customer advertising & distribution and
wants
Needs communication sales

Results in Customers Offer Induce

customer value experience individualised customer
and delight with the products & brands trial
product

1.16 Marketers trying to create the customer value chair

hat is why as shown in the figure 1.1 above, most of the marketers in order
to adapt to the new marketing paradigm shift in consumer tastes and preference
are going for a fundamental shift in their market research techniques, product
development, advertising and promotion strategies. Added to this, in this age of
information explosion, and Internet marketing becoming a reality, it is all the
more necessary that marketers go for the creation of appropriate data base which
can help them to go for 'tailor made products to suit individual tastes, preferences
and buying behaviour of the consumers.
Due to the existence of diversity among individuals to study consumer
behaviour is very vital to marketers. This is because such a study it enables the
marketer to have a better understanding of the buying as well as consumption
behaviour of their customers as well as consumers.
Since consumer behaviour has become an integral part of strategic market
planning, it is all the more necessary that marketers give a lot of weight age to
consumer. Such an approach helps them to understand and in the prediction of
making strategic marketing decisions.
L.G. Schiffman & L.L. Kanuk (1978) “Consumers behavior” Prentice- Hall,
inc, Englewood Cliffs. N.J.- has mentioned that.

How Marketing firms use consumer behavior.

To operate successfully, marketing firms must have a thorough

understanding explicit rather than implicit of what makes consumer buy. The
have to know why the buy, what needs they are trying to fulfill and what outside
influence affect their product choice in order to design marketing Strategies that
will favorably influence related consumes decisions.

Designing marketing strategies

Markets use an understanding of consumes behavior to anticipate future

behavior based on the implementation of specific marketing strategies. At
depicted in Fig-1, understanding (and this is true of any human phenomenon)
permits prediction, which in turn permits the development of strategies designed
to achieve favorable results.
 Knowledge of consumer behavior facilitates development of successful
marketing strategies.

Understandin Prediction of Design and Influence

g of variables behavior implementation over
affecting using specific of strategy desirable
behavior variable based an outcome
controllable

Fig. 1.17 Development of Marketing Strategy

Marketers use an understanding of consumer behavior to

anticipate future behavior based on the implementation of specific

marketing strategies. For example, an awareness of the consumer’s

predispositions and needs and present attitudes toward the product

enables the marketer to design an effective marketing mix, using

variables over which he has control (such as advertising messages,

packaging, pricing, retail outlets) to favorably influence the

consumer to buy his product. As depicted in Figure 1.17

understanding (and this is true of any human phenomenon) permits

prediction, which in turn permits the development of strategies

designed to achieve favorable results

A knowledge of consumer behavior serves as a strong basis

for the development of marketing strategies. However not only does

consumer behaviour affect marketing strategy, it also serves to

reflect marketing strategy. A careful monitoring of consumer

behaviour in the market place enable the marketer to measure the

success or failure of a specific marketing strategy.

Electronics
Andressdgs- (Essay/www.op.papers.com/electronic industry in India
1865550). Electronics is one of the fastest growing segments of the Indian
industry. Today, the electronics industry is completely deli censed with exception
of aerospace and defence electronics.

The electronic industry in India constitutes uses than 1% of the global is growing
sharply and the investments are flowing in to segment manufacturing capacity.

Corporate catalyst India-(A report in India Electronic Industry):

India has an increasingly affluent middle class population that, on the back
of rapid economic growth, has made the country's consumer electronics industry
highly dynamic. the industry has been witnessing significant growth in recent
years due to several factors, such as retail boom, growing disposable income and
availability of easy finance schemes. But still the consumer electronics good, like
refrigerators, microwave and washing machines have low penetration in the
country, representing vast room for future growth..

Since the penetration of several products like TVs and refrigerators

are reaching saturation in the Urban areas, the markets for these products are
shifting to the semi- urban areas, the markets for these products are shifting to the
semi- urban and rural areas.

The Indian consumer durables industry has witnessed a considerable

change in the past couple of years. Changing lifestyle, high disposable income
coupled with greater affordability and a surge in advertising has been
instrumental in bringing about a sea change in the consumer behavior pattern.
 This industry consists of durable goods used for domestic purposes such
as televisions, washing machines, refrigerators, microwave overns, mobile
phones etc. The growth in the consumer durables sector has been driven
primarily by factors such as the boom in the real estate & housing industry,
higher disposable income, emergence of the retail industry in a big way coupled
with rising affluence levels of a considerable section of the population.
As per a survey conducted by FICCI on the Indian consumer durables
industry a shift in consumer preferences towards higher-end, technologically
advanced branded products has been quite discemable. This shift can be
explained by narrowing differentials between the prices of branded and
unbranded products added with the high quality of after sales service provided by
the branded players. The shift has also been triggered by the availability of
foreign branded products in India owing to lower import duties coupled with
other liberal measures as introduced by the government.

Assocham & Earnest and Young in a report has stated:

India is the fifth largest economy in the world and has the second largest
GDP among emerging economics. Ocuing to its large population, the potiential
consumer demand is almost unlimited and consequently under appropriate
conditions, strong growth performance can be expected. In fact, the liberalization
of the economy in 1991 has led to rapid growth. The electronic industry, in
particalar is emerging as one of the most important industry in the Indian market.

India has an increasingly affluent middle class population that on the back
of rapid economic growth has made the country's consumer electronics
industryhighlydynamic. The industry has been witnessing significant growth in
recent years due to several factors, such as retail boom, growing disposable
income and anailability of easy finance schemes. But still, the consumer
electronic goods, like refrigerators, televisions and air conditioners have low
penetration in the country, leaving vast room for future growth. This is attracting
many foreign majors to the country.

In one can direct in/her attention to the times of the manufacture of radio
receiving sets in private sector, in late forties, the electronic industry has chieved
very quick progress. In 1983 its total production was worth Rs. 1.360 crores. This
illustrates has a very vast range of production like consumer electronics,
principally radio and television sets, control instruments and industrial
electronics, computer system, communication and broadcasting equipement,
aerospace and defence equiparent and electronic components. India has surfaced
as one of the leading exporters of electronic goods. Besides hardware, India has
garnered high reputation in the production of software and has impressive
international market.

Electronics is the fastest growing sector of Indian economy. In 1997-98 its

production was worth Rs. 32,070 crores, 92% increase from the previous year.
Exports in the same year had reached Rs. 9,500 crores. By the end of 9th Five
Year Plan. It is expected to surpass 49,000 croes of rupees. Similar to industrial
castes. Electronic Technology parks are being developed in various centres.

The consumer electronics industry has witnessed a phenomenal growth

over the past few years. This growth can be attributed to the increasing effect of
state of the art electronic devices on the market. The consumer electronics
industry is ushering in the dawn of Convergence. It is the confluence and
merging of hitherto separated markets of digital-based audio, video and
information technology, removing entry barriers across the market and industry
boundaries. This convergence of technologies has resulted in a greater demand
for consumer devices, be they portable, in-home (mobile phones, digital camera)
or in-car (CD/DVD players), offering multiple functions.
 The revolution brought about by Digital technology has enabled the
consumer electronics sector to profit from the growing interaction of digital
applications such as camcorders, DVD plaqyer/recorder, still camera, computer
monitor, LCD TV etc. iit has also witnessed the emergence of mobile
telecommunications technology, incorporating both digital visual and digital
MP3 capabilities. The computer industry has also benefited by being able to
make its way into consumer's living rooms. HDTV's with VGA connections and
SD/MMC card slots, personal media players, and Microsoft-based Media Center
PCs have pushed the two industries even closer together than before.

The overall revenue earned through the sale of audio, video and gaming
consoles constitutes the international consumer electonics market. the global sale
of consumer electronics is estimated to exceed all expectations to touch an all
time high of $ 135.4 billion in 2006, which indicates 8% increase from 2005. By
the year 2008, sales are forecasted to soar up to $158.4 billion, up BY 65% over
2000.
The Asia Pacific region is the market leader wielding the biggest chunk of
the market, closely followed by Europe. The European market share is expected
to take a drubbing due to the growing demand for consumer durables in the Asia
Pacific consumer electronic market. Japanese companies have captured the
consumer electronics market. These Japanese manufacturers own all world
famous brands such as Sony, Panasonic and Matsushita. Korean companies such
as Samsung and LG are all trying to join the Japanese bandwagon. Samsung can
claim to be the world's fastest growing electronic company.

During FY07, volume share of the single largest consumer durable was
colour TVs at 30%, followed by refrigerators and air conditioners at 18% and
13% respectively. Washing machines and other assorted consumer durables
captured a share in the total volume by 5% and 34% respectively.
 Consumer electronics (durables) sector continues to be the main stayof the
Indian electronic industry contributing about 32 per cent of the total electronic
hardware production. By the end of 2005-06, the market for consumer durables
(including entertainment electronics, communictarian and IT products) was Rs
180 billion (US $4.5 billion). The market is expected to grow at 10 to 12 per cent
annually and is expected to reach Rs 60 billion (US$13.3 billion) by2008. The
urban consumer durables market is growing at an annual rate of 7 to 10 per cent,
the queral durables market is growing at 25% annually. Some high growth
categories within this segment include mobile phones, TVs and music systems.
Consum er Electronic
180
160
Com puters
140
120
100 Strategic Electronics
80
60 Industrial Electronics
40
20 Com m unication & Broadcast
0 Equipm ent
2002-03 2003-04 2004-05 2005-06
Com ponents

Fig. 1.18 Production Trend of Different Segments

Some of the key trends that have a positive impact on the sector are :
• Growing consuming class (defined as people having annual income
of US$ 980 (INR 45000 or above) that has greater disposable
income and propensity to spend. It has been estimated by NCAER
that this group will constitute over 80 per cent of the population of
India by 2009-10.
• Lifestyle changed such as greater eposure toglobal trends and
increasing affinity for convenience and lifestyle products.
• Increasing urbanization, emergence of nuclear double income
families.
• Low penetration levels of most consumer durables. For example, in
2002, only 66 per cent of middle-income households had a TV set,
 only 28 per cent of the urban cooler. Despite a population of more
than 1 billion people, only 16 million computers were used in India
in March 2005.
• Increased government and private industry spending on sectors
such as defence and aerospace. The Indian aviation sector, for
example, has placed orders for more than 350 aircrafts with a list
price of about US$ 26 billion.
• In recognition of India's domestic market potential, Samsung has
selected India as one of the top six strategic markets in the world
along with the US, China, Russia, Germany and Thailand.

Growth in demand of consumer durables such as CTVs, VCD/MP3

players and PCs directly benefits the sector. Also the demand for products such
as automobiles, white goods, air-conditioners, textiles, etc, leads to growth in the
electronics sector as these products contain a significant number of electronic
components. At the same time, consumer demand has boosted growth in Indi'as
overall manufacturing sector as well, which, in turn, has a positive impact on
industrial electronics.

On the whole the domestic market in India is very attractive from the
point of view of the electronics sector, and current trends indicate high growth
potential for the sector in the future.

Statement of problem :

Marketing is public distribution system world is not able to control this

distribution system, nobody is able to understand the marketing strategy. We can
find a variety of product catering our day to day life. Each of the electronic
products have their our usage and importance in consumers market and
industries. Today electronic goods have perpetrated deep into the market and this
growth has come in last 15-20 years. We see that today irrespective of the
standard and quality, the sale of electronics is very high. As far as buyers or
consumers are concerned they go out of budget in order to purchase electronic
goods which they like. It is viewed consumers are ready to buy product despite
the need In present scenario what was considered as luxury items have
transformed into need and consumer are willing to buy. There are several factors
which effect a consumer decision, and marketing strategy of the companies are
develop to cater the consumer according to their choice.

All these have arose a curiosity in the researcher to undertake this study to
know the marketing strategy of the electronic manufactures and so study the
impact of marketing strategy of electronic goods an consumer behaviour in
Allahabad urban city.

Importance of the study :

This research can be an important link between the manufacturer and the
consumers. Since the electronic market in our country is constantly rising with
the help of this study electronic companies can manipulate their marketing
strategy in order to be in the competitive market. It is easy to manufacture a
product but to maintain its market is the toughest job. This study will help the
indian companies to make such strategies which will help them to complete with
the other companies who are slowly consuming the local markets with the results
we can make the consumer aware about the electronic companies strategies so
that the consumer cannot befooled and the study will help the manufacturer to
know important aspects which they should consider along with the already
implemented strategic points.
Justification of the study :

The preference of Indian consumers has shifted from mechanical to

electronic goods since last twenty years and it shall continue. Fifteen years back
what was a luxury for the common man is now a necessity. The atmosphere has
changed with the entrance of multinational players in the market area and these
corporate giants were successful to some extent in positioning luxury item to
necessity item the economic status of the consumers have improved changing the
buying power. (Electronic markets are growing rapidly, the entry of Chinese
electronic in Indian market has made the situation worse for Indian companies
during these changing times the consumer behaviour towards electronic goods
have also been changing times the consumer behavior towards electronic goods
have also been changing.

Objectives :

1. To find out the purchasing pattern of consumers regarding electronic

goods in Allahabad city.
2. To find out the influence of marketing strategy on consumer behaviour
3. To analyze the strategies, processes adopted by electronic goods dealer.
4. To observe the consumer behaviour regarding electronic consumer goods.
5. To find out the problem faced by the consumer regarding purchases of
electronic goods.
Hypothesis :

On the basis of research problems and objective of the study following

research hypothesis have been framed.
1. The present marketing strategy of electronic goods is consumer friendly.
2. Electronic goods consumers are not facing any problem in purchase of
electronic goods.

Limitation of the Study :

1. All possible efforts were made to make the study objective and systematic,

the finding were based an the opiniors expressed by the respondents

Hence objectively would be limited only to the extent of information

received from the respondents.

2. The study was confined to selected markets of urban area of Allahabad.

3. The entire population will be represented by sample taken for the study.

4. Some of the findings of the study are inferential in nature, which require

function investigation to be concluded as fact.

5. The study is restricted to entertainment rector of electronic market/goods.

Chapter-2
REVIEW OF LITERATURE

A review of literature related with the area becomes a necessity for the
researcher because future research builds on the present progress. For this, a
research has to go through a hug amount of literature which already exists in
various forms.
Review of related literature, besides allowing the researcher to acquaint
him with current knowledge in the field or area in which he is going to conduct
his research serves the following specific purposes.
1. The review of related literature enables the researcher to define the
limits of his field. It helps the researcher to delimit and define his
problem.
2. The knowledge of related literature, brings the researcher up-to-date on
the work which others have done and thus to state the objectives
clearly and concisely.
3. By reviewing the related literature the researcher can avoid unfruitful
and useless problem areas. He/she can select those area in which
positive findings are very likely to result and his endeavors would be
likely to add to the knowledge in a meaningful way.
4. Through the review of related literature, the researcher can avoid
unintentional duplication of well-established findings. It is no use to
replicate a study when the stability and validity of its results have been
clearly established.
5. The review of related literature gives the researcher an understanding
of the research methodology which refers to the way the study is to be
conducted.
 6. The review helps the researcher to know about the tools and
instruments which proved to be helpful and promising in the previous
studies.
7. The advantage of the related literature is also to provide insight into
the statistical methods through which validity of results is to be
established.
8. The final and important specific reason for reviewing the related
literature is to know about the recommendation of previous researcher
listed in their studies for research.
9. Therefore, the related literature is are of the first steps in the research
process.
It is considered necessary to review the studied that were related to
marketing strategy of electronic goods and its impact on consumer
behavior. Reviews of related literature are as follows: Researches and
Articles.

Related Literature Review

(a) Marketing strategy

Dr. S. Sarvana (2010) In his article in Indian Journal of marketing

entitled "A study an consumer behavior of woman with special reference to
durable goods in coimbatore city- Tamil Nadu", found that education plays a key
role in shopping behavior and higher income group respondents shop as and
when they like; In majority women plays a major role in purchase decision and
they prefer to prepare an item list before purchasing. Family influences the
consumer’s behavior to a greater extent while purchasing. Majority of the
respondents prefer to purchase products from departmental store rather than any
other shop. Most of the people recommend the product purchased by them to
others. People give preference to product quality. Most of the satisfied with the
factors such as price, quality, availability of service and design of durable goods.
In the present study we are internal to know wither people in Allahabad
City as satisfied with the price, quality, availability, service and design of
electronic goods.

Delsapratim Purkayastha (Sep. 2009) In his study published in case

folio the Icfai Journal of management case studies entitled, "Realities of
emerging markets : Some lessons from uni lever's strategy for lifebuoy &
Sunsilk in India" The case focuses on HUL'S strategy for growing two mature
brands with mass appeal Life buoy and Sunsilk by targeting new segments in
innovative ways. With India being waived as a test market for emerging markets
strategies analysts felt that the learning from these initiatives would help uni
lever develop a strong presence in other 'emerging markets strategies as well. The
case tries to dispel the myth that emerging markets are only about devising
strategies to target the huge BOP segment Analysts are of the opinion that HUL'S
success in India was due to its ability to cater to all segments by adapting
products, prices and promotion to each of them.

Indu P and Vivek Gupta (Sep. 2007) In their case study published in
case folio the Icfai journal of management case studies entitled "Marketing
strategies of Harley Davidson" had viewer that the marketing strategies of the us-
based motorcycle manufacturer Harley Davidson Motor Company (H-D) uses the
marketing mix element including product, price, distribution and promotion
strategies of the company. Not with standing the success of H-D'S marketing
strategies, some critics were of the opinion that the H-D was not focusing an its
core competency i.e. motorcycle and is diluting its brand. The company has a
long way to go in maintaining good relationships with the company's customers.
Debapratim Purkayastha and Rajiv Fernando (May. 2007)
In case study published in case folio the Icfai Journal of management case
studies entitled "Innovative marketing strategies of Lush fresh hand made
cosmetics", found that the absence of a regular marketing department might
prove counter productive for the company. With the competition in the ethical
cosmetics market expected to increase some experts also felt that lush, which had
thus for remained an independent, The company did not have a traditional
marketing department and retied more an unconventional products, wacky
product naves in store advertising, word of month advocacy and public relation.

In the case published in case folio entitled "Market expansion

strategies of Maruti Udyog", it was found that market expansion strategies
was based on the introduction of new models, and upgrading of existing models
in response to market demand. Promotional offers were undertaken by NUL in its
quest for market dominance the company was able to would itself according to
the market requirements by entering new domains and reaching out to potential
customers through its 'True Value' and other promotional offers.

Bansh Hari (2002)

In his thesis entitled "Marketing of electronic productsin India with
special reference to computer and television industries", that electronic product is
looked upon by most people almost as a natural phenomenon beyond people's
control many people have accepted marketing of electronic products as their
career and electronic products have greater effect an society. Attitude of people
towards marketing is positive and marketing of electronic products powerful
enough to promote consumers cultures & value. It is an investment of the future
which manufactures expect will pay off many times more.
The study is restricted only up to marketing of electronic product which
exclusively are T.V. and computer, where as this study covers electronic goods in
entertainment sector which includes T.V., DVD, Music System, Play Station etc.
It concentrate on the marketing strategy adopted by the companies.
Greg Laird and Robert R. Harman (1997)
In their research paper entitled, "Linking marketing strategy to customer
value : Implication for technology marketers", had presented a model that
identifies the factors that drive customer perceptions of value and describes
linkages with marketing strategy. The paper argues that a thorough understanding
of customer value drivers can increase the effectiveness of marketing strategy.
Improved customer intimacy is the major pay off. The value driver analysis can
provide critical insights for product and service development and operational
efficiency The paper proposes a model for linking marketing strategy to the
customer's perceptions of value. It suggests that a deep knowledge of customer
value can improve the processes that create and deliver that value. Anticipating
changes in customer value is critical to the success. Additional attention should
be placed an understanding the impact of the buying situation several.

(b) Consumer behavior

Judith chevalier and Sustan Goolsbec (Nov. 2009)
In their article in the quarterly journal of economics "All durable goods
consumers forward-looking?", mentioned that the consumers think about the
future when the make durable goods purchase and look very much like the
forward looking rational expectation consumer of the neoclassical model. This is
apparent in the purchase behavior of the students and in the pricing behavior of
sellers. People are willing to pay less or are less willing to buy products for
which the projected future life is short.
Martin R Lautnan and Koen pouwels (Sep. 2009)
In their article given in Journal of advertising research entitled "Metrics
that matter : Identifying the importance of consumer wants and needs",
suggested that there is a need for the development of data fusion models that
capitalize on the advantages and disadvantages of various important assessment
methodologies, multistage models reflecting hierarchical consumer decision
making and competitive set formation would seen to have potential value.
Vinod Kumar (1993)
In his thesis on "A study of impact of consumerism an marketing
practices", found that business competitions resulting in intense sales promotion
and marketing efforts tend to shake the confidence of consumers. There is a
decline in the quality standards of products because of lowering of prices either
to meet competition or the poor purchasing power of the consumer increases in
the market imperfection which lead to an information gap between the
manufacturers/ traders and the consumers because of impersonalized selling.
There is an increase in the number of goods and services in the economy of
which the consumer has no previous experience resulting in error in his decision
making.

Rizwana Ahmed (1992)

In her thesis entitled "Consumer buying decision for consumer durable
goods" opined that, the durable goods are generally purchased in recognition of a
need that has to be fulfilled of the durable goods. those that fall in category of
what we term as 'gadgets' or appliances are generally purchased for they offer
come convenience by way of reducing labor or time or effort involved in a
process such as a food processor, microwave cooking oven or refrigerator,
washing machine etc. She of the new that the consumers are more reluctant to
admit the intangible appeals of the durable goods especially those pertain to their
status or social standing but more admit that the practice aspects of the products
attracted them to purchase it. The consumer behavior is always subject to change
and a host of factors influence the purchase decision of consumer for durable
goods.
The study looks into the internal determinate of consumer behavior such
as need, motive perception attitudes, learning & personality where as the present
scare investigated into the environment factors, a buyers characteristics their
decision process and buyer's response in regard to the marketing strategy adopted
by the electronic companies.
 (c) Electronic Goods:-

Zameer Anwar (Market Structure of Indian Electric onic industry)

It is matter of immense pride that India has been ranked 1 in some of
engineering services in the world, though Indian electronic industry is still in a
nascent stage. The chief element behind the success of Indian electronic &
hardware industry is a quantum jump in market demand and a splendid rise in
production of semi conductors Liberal government policy, vast pool of industrial
expertise, lucrative investment conductive environment and finest manufacturing
facilities have made India one of the superiors in electronics and hardware
industry.
It is no wonder that electrical & electronic czars are gradually shitting
their base to Asia Pacific regions in order to meet burgeoning market demands. It
we talk about Asia pacific regions that means China, Japan, North & South
Korea. Singapore and India are the top manufacture of electrical and electronic
products. And it is expected that India will soon become the preferred destination
for consumer electronics. There is an anticipation that the electronics industry
will be four times as big as today and half of it will seep into Asia within 20
years., With electronics parts and components sector; the total mareket share was
about USD 282.7 billon, where as home electronic parts and components sector;
the total market share was about USD 282.7 billon, where as home electronics
was USD 104.7 billon.
It is a little wonder that during 2010-2015 the Indian electrical equipment
manufacturing will swell at 5.5 times the growth rate of global electronic
equipment production. All above indicators show that the prospect of electrical &
electronic industry in India is quite promising and lustrous.

Moon Bum Shin, MD, LG Electronics India, In an interview:-

Consumer electronics leader LG is repositioning itself in India. Its ir the
process of changing its image from being mass-market, value for-money player
to a brand that causes happiness and enriches life by focusing on softer aspects of
life “The company would be spending$5 million on marketing this yean just to
communicate its new identity,” says Moon Bum Shin managing director of LC
Electronics India.
 The wholly-owned subsidiary a South Korean LG Electronics is quite
clear about the strategy. “The Indian market is the number one priority of the
parent company," he told ET. “The company would be spending$5 million on
marketing this year just to communicate its new identity and the change that I
plan to bring in the life of its consumers," he added.
A leader in the Rs. 65,000-crore consumer electronics and home
appliances market, LG India has also been trying to get noticed a an up-market
brand. Its recent campaigns and products such as Jaz LCD televisions and
Chocolate mobile phones are an attempt to lure back a sizable of consumers who
over the years, have moves up the value chain.

Samsung Electronics Company “Global Marketing Operations” (2009)

Marketing Strategy team a main task is to develop global marketing
strategy; that is, to develop marketing strategy in international-wide. The core
message that the company wanted to convey should be shown inside every
promotional activities international-wise.
Regional Strategy team’s job is to continuing the task from Marketing
Strategy team and breaking it down into regional level. One effort that applicable
in United Stated doesn’t mean that it will reap the same success when being
implemented in Japan. It would be Regional Strategy team’s task to develop
strategy in term of regional demographics.
Product Strategy team is the frontline of the whole team. Conducting
market research, gathering the information and analyzing information about
competitors are their daily task. The Market Intelligence. How cool in that?

Jennie Gandhi (article on Indian electronic market)

The Electronic Industry in India took off around 1965 with an orientation
towards space and defense technologies. This was rigidly controlled and initiated
by the government. This was followed by developments in consumer electronics
mainly with transistor radios, Black & White TV, calculators and other audio
products. Colour Televisions soon followed. In 1982 a significant year in the
history of television in India the government allowed thousands of colour TV
sets to be imported into the country to coincide with the broadcast of Asian
Games in New Delhi. 1985 saw the advent of computers and Telephone
exchanges, which were succeeded by Digital Exchanges in 1988. The period
between 1984 and 1990 was the golden period for electronics during which the
industry witnessed continuous and rapid growth.
From 1991 an wards, there was first an economic crises triggered by the
Gulf was which was followed by political and economic uncertainties within the
country. Pressure an the electronics industry remained though growth and
developments have continued with digitalization all sectors, and more recently
the trend towards convergence of technologies.
After the software boom in mid 1990. India's focus shifted to software.
While the hardware sector was treated with in defense by successive
governments. Moreover the steep fall in custom tariffs made the hardware sector
suddenly vulnerable to international competition. In 1997 the ITA agreement was
signed at the WTO where India committed itself to total crimination of all
customs duties on IT hardware by 2005. In the subsequent years, a number of
companies turned sick and had to be closed clown. At the same time companies.
Like Moser Baer, samtel colour, Electronics etc. have made a mark globally.

Andresrdgs – Essays/www.op.papers.com/Electronic industry in

India/186550
The growth in demand for telecom products has been high with India
adding two million mobile phone uses every month, which is one of the main
reasons for the growth in production of electronic goods. This growth is
expected to continue over the next two decade.

Assoc ham and Ernest and young in a report an ‘Indian dependent an

China and US for electronic goods.” Zeenews com 2010.
 India is the fifth largest economy in the world and has the second largest
GDP among emerging economics. Owing to its large population, the potential
consumer demand is almost unlimited and consequently under appropriate
conditions, strong growth performance can be expected. In fact, the liberalization
of the economy in 1991 has led to rapid growth. The electronic industry, in
particular is emerging as one of the most important industry in the Indian market.

Article in meri news/http://www.merinews.com.

In last couple of years, the Chinese electronic market has witnessed
some dramatic increase in demand and sales chart of electronic items. The
country has tum out to be the world's major producer of consumer electronics and
other high tech products than any other country. Starting from digital cameras,
mp3 players, computer accessories to cell phones, and other electronic goods that
are manufactured in China is gaining tremendous popularity.
In recent times Chinese electronic products industry has been dynamic in
contributing in international trades as well. All china wholesale electronic goods
feature good quality that is far better in comparison to other electronic products
available in international market.
The recent studies of the technological capability of the China electronics
industry also states that the China is likely to equal South Korea, Taiwan, and
even Japan as a major Asian force in the world electronic consumer goods
industry in twenty-first century. Besides this, amongst the E7 developing
countries, China is ranked as the most eye-catching consumer electronics market
from investment point of view. Moreover, its consumer electronics market has
increased at a CAGR of 11.71% during 2002-2006 and is further anticipated
boosting at a CAGR of 12% during the forecasted period (2007-2011).
The electronic items made in China products are exported in huge amount
all over the world, especially in countries like United States of America,
Different European countries and all other parts of Asia. In fact the way the
demand for the Chinese electronic products are increasing day by day, it seems
that China is already on the way to become the leading exporter of electronic
products in international market.
China has now been tagged as the world's factory as they produce almost
all types of electronic products at extremely lower cost than anywhere else in the
world. The major highlight of Chinese electronic industry is that almost
everything is in low cost, starting from low human resources cost to a low
corporate tax burden. This in turn helps every leading production centers in
China employ cheap labor and still produce superb quality products.
Apart from all this, on the consumption front, the constant declining cost
of consumer electronics together with increasing disposable income are playing
important role in attracting consumers select Chinese electronics products.
Moreover, looking at the present scenario, India's youth are spending freely on
Chinese made consumer digital products and the trend will continue to rise with
the growing middle class. They are creating a multi-billion dollar market for
electronic products and services. These few factors certainly indicate a booming
future for the consumer electronics industry in China.
Today, the electronic items of China are far more reliable than ever
before. The manufacturers are now providing a whole new range of electronics
with trendy new features. In addition to this, the Chinese electronic markets are
also providing consumers and re-sellers a quick and profitable resource to build
sales. The trend is gaining its popularity and expected to boom in coming years.
Wore than 35% of electronics appliances imports in India are sourced
from china.

Gang Xiaofeng of the China council for the promotion of International

Trade speaking an “Bigger opportunities for chins electronic
companies in India.” The India china development forum theme
“Building the future together.”
 Chinese electronic companies need to future improve thin after
sales services and enhance product guilty to be more successful in India. Due to
the fast development of the software industry. India has a great demand in
hardware equipment and infrastructure construction. This provides huge market
opportunities for Chinese enterprises that are well known for their manufacturing
abilities.
Currently, most of the Chinese electronic companies in India are not large
scale companies.

Impact of Chinese goods on our economy :

Discuss of cheaper prices products made in Chine are becoming more
popular among the India masses. This has had a very negative effect on our own
manufacturing units and as a result many of then have had to shut shoo.
There seems to be no way to escape the DRAGON!!!
Yes, the Chinese goods have invaded almost all the sectors of Indian
market and seem to be bringing tougher times for the Indian Industry. Because of
wide availability of cheap and apparently technologically advanced Chinese
goods, many economists fear decline of local manufacturing units or the small-
scale industry in India. The rise in demand and sudden popularity of Chinese
products, which are available at cheaper prices, is giving nightmares to the Indian
electronic Industry to the extent that they have started sticking "Made in China"
stickers on their products to boost their sales.
Chinese manufacturing units produce goods on a large scale. They are
using the big Indian market merely to dup their products and by doing so they are
killing the Indian units. Since the Chinese electronics are cheaper than the Indian
electronic so they manage to attract gullible and largely illiterate Indian lot. As a
result the Indian electronic Industry There is a decline in the revenue.
China is our major competitor in sectors like software, hardware,
electronics etc. We should not allow China to dump their excess produce here.
The small-scale Industry (SSI) contributes 35-40 per cent to the total
manufacturing in India. So it is the SSI, which suffers most because of Chinese
goods. For instance, data reveals that 60 per cent of the Industrial units in the
industrial belts of Thane and Bhivandi near Mumbai have been closed down.
Many small-scale Indian companies have stopped manufacturing their own goods
as now they import them from China. That's why many Indian workers have lost
their jobs. This shows that the objective of SSIs of providing employment to the
rural youth of India is defeated completely.
In the last one decade Chinese labour has developed the skills of manufacturing
electronic goods like semiconductors, telecom equipments, power equipments
etc. Which helped them to capture big markets of America and Europe. It is no
surprise that they have been successful is capturing the Indian market two.
Although Indian labour can meet these challenges by improving their skills, the
Indian manufacturing scenaris is hampered due to stringent and weak labour
policies.

Okara, Moriki, and Koichiro Krmura, eds. 2009. Comparative study on

Industrial Development Process in China and India. Interim Report. Chiba:
Institute of Developing Economies.
There is a difference in development processes between China and India.
Although the Chinese and Indian electrical and electronics industries were both
in technological backwardness, it is known that the Chinese local firms have, in
comparison with the Indian local firms, grown remarkably through fierce
competition among themselves. In this study we will take up the Chinese and
Indian TV markets as a representative product in the industries and investigate
the subject of competition as a driver in the promotion of local industrial
development. In this connection, we will compare market structures to validate
our argument. In China, the key property lies in equal competition, as local firms
with similar technological capabilities competed amongst themselves to build
their unique advantages. By contrast in India, the property lies in competitive
inequality, as only a few major firms dominated the market, therefore resulting in
development of fewer advantages compared to China. in addition, we compare
entry barriers which form the structures, from a viewpoint of history of
institutional changes in the industries.
******
 Chapter-3

Research Methodology
 RESEARCH METHODOLOGY

Research Methodology & its Importance

C.R. Kothari, (2009) research methodology methods and techniques (second

revised edition), pg. 8.

Research methodology is a way to systematically solve the research

problem. Research methodology studies the various steps that are generally
adopted by a researcher in studying his research problem along with the logic
behind them.

Research methodology not only consider the research methods but also
consider the logic behind the methods used in the context of the research study
explains the various for the implementation a particular method or technique.

Through research methodology the result are evaluated either by the

researcher himself or by others.

Before embarking on the details of research methodology and techniques,

it seems appropriate to present a brief our view of the research. Process. Research
process consists of series of actions or steps necessary to effectively carry out
research and the desired requesting of these steps. The chart shown in Fig.
3sssssss.1 well illustrates a research process.
 Fig. 3.1 RESEARCH PROCESS IN FLOW CHART

FF

FF

Review concepts
Define and theories
Formulation Design research Collect data Design research Interpret
research including sample including sample
problem Hypothesis excitation and report
design design
I IV VII
Review previous III VI
research findings
II

F
helps in controlling the

Where, [F] = Feed back sub-system to which it is

transmitted.
 The research design and its importance the research design is the plan,
structure and strategy of investigation conceived so as to obtain the answer to
research question and to control variance. The plan is the over all scheme or
programme of there research.

Research design has two basic purpose :

(i) To provide answers to research question and

(ii) To control variance

Research design suggest the analysis. This is very important for guiding the
research process.

Table 3.1
Research Design
Objective Research Population Sample Statistics
Method
6. To find out the Descriptive Entire 200 Pie chart
purchasing pattern and population consumer
Σx
of consumers exploratory of 12 dealers Mean =
regarding electronic research Allahabad N
goods in Allahabad city Σdx 2
variance =
city. n
7. To find out the Chi square
influence of
( f0 − fe )2
marketing strategy χ2 =∑
on consumer fe
behaviour
8. To analyze the
strategies,
processes adopted
by electronic goods
dealer.
9. To observe the
consumer
behaviour
regarding electronic
 consumer goods.
10. To find out the
problem faced by
the consumer
regarding purchases
of electronic goods.

PART-I
Nature of Research :

The present research is based on data collection and hence the study is
descriptive and exploratory in nature.

Descriptive Research :

Descriptive research is concerned with the analysis of the relationship

between non-manipulated variables and the development of generalizations,
extending in conclusions beyond the sample observed.

Descriptive research studies are designed to obtain pertinent and precise

information concerning the current status of phenomena and whenever possible, to
draw valid general conclusions from the facts discoursed. They are restricted not
only to fact finding but way after result in formulation of important principle of
knowledge and solution of significant problems concerning local state, national
and international uses.

Descriptive studies are more than just a collection of data : they involve
measurement, classification analysis. Comparison and interpretation. Descriptive
research studies investigate phenomena in their natural setting.

Their purpose is both immediate and long range they constituter a primitive
type of research and do not aspire to develop are organized body of scientific law.
Exploratory Research :

Exploratory research is preliminary study of an unfamiliar problem about

which the researcher has little or no knowledge of a patient suffering from an
unfamiliar malady for getting some clues for identifying it. "It is ill structured and
much less focused on pre-determined objectives."

Though it is a separate type of research, it is appropriate to consider it as

the first stage of a three stage process of exploration, description and
experimentation.

The purpose of an exploratory study is to

 generate new ideas.

 increase the researchers familiarity with the problem

 make a precise formulation of the problem.

 gather information for clarifying concepts

 determine whether it is feasible to attempt the study.

According to David Katz it just attempts "to see what is there rather than to
product the relationship that will be founded.

But it should be so designed as to provide as definite information as

possible for a set of research objectives.

There are two levels of exploratory study "At the first level is the discovery
of the significant variable in the situation; at the second level the discovery of
relationship between variables."

It is necessary to delimit the area to be studied seven at the first level. It is a

mistake to believe that on study is going to be able to account for all the variance
in company social phenomena. It is much more effective to take are central set of
variables and investigate them as thoroughly as possible than to try to study the
consumer in one piece of research. Van dale status respect for living beings
prevents an investigator from inflicting unnecessary pain, hardship, harm or others
from 'interfering in any way with the normal growth and development of an
individual.

Fig.-3.3

Flow Chart of research activities

Problem Objective Hypothesis Selecting

the sample

Discussing Testing
Data Analysis Data collection
results Hypothesis

Drawing Drawing educational

conclusion implication

Area of Study

Area of study is confined to Allahabad district Allahabad is a metropolitan

city, it comprises of upper class, middle class and lower class of society, it has a

cosmopolitan nature. The demographic nature of city has a uniform approach and

hence the sample will be helpful in the analysis of primary data.

Economics Status of Study

Marketing Strategy
 Firm employ a variety of strategies/strategy stances in their relentless race to
stay ahead of competition. However, a close scrutiny will reveal that all these
strategies can be fitted into two broad categories.
• Price-oriented strategies
• Differentiation-oriented strategies
In other words, there are only two broad routes available in forging

competitive/marketing strategies and any strategy has to be either price-oriented or

differentiation-oriented.

Threefold and Twofold Categorisation of Competitive/Marketing Strategies

While we take the view that ultimately there are just two categories of
strategies, some experts, however, prefer to fit them into three broad categories.

Porter's threefold categorization

Michael Porter speaks of three broad generic strategies in relation to
competitive strategy-cost leadership, differentiation, and focus. We take the
view that ultimately there are just two categories of strategies-cost leadership, and
differentiation- because the third one propounded by Porter viz., focus does not
represent a distinct category, but just a variant of either cost or differentiation.
Even Porter viz., focus does not represent this fact. According to him, the focus
strategy has two variants - cost focus and differentiation focus. In cost focus a
firm seeks a cost advantage in its target segment, while in differentiation focus a
firm seeks differentiation in its target segment. Focus rests on the scope of a
narrow competitive choice within an industry. The focuser selects a segment in the
industry and tailors his strategy to serve it to the exclusion of the others.
It is therefore appropriate to vote for a twofold categorization.

Price-Oriented Marketing Strategy

 Firms taking to the price route in marketing strategy compete on the

strength of competitive/lower pricing. They use price as their competitive

lever. They juggle the price of their product to suit the prevailin

competitive reality. They can afford to offer lower prices and still make the

targeted profits, in view of their cost advantage. They elbow out

competition with the cushion they enjoy in the matter of pricing.

Price route requires cost leadership

A firm opting for the price route will have to have a substantial cost
advantage in their operations, vis-à-vis the competition. It should be enjoying an
overall cost leadership in the given industry and its lower cost should enable it to
secure above average returns in spite of the compulsion to lower prices to meet the
competition. In the absence of such cost advantage, it cannot offer a lower price
compared to competition over the long term. The cost advantage can emanate
from different factors like, scale economies, early entry, a large market share built
over a period of time, locational advantage, or synergy among the different
businesses. The firm's whole strategy, in fact, will revolve around building such
cost advantage; it will always be looking for opportunities for cost reduction. In
short, developing such a cost leadership is the main task of firm that vote for a
price-led strategy.
In cost leadership a firm sets out to become the low-cost producer in its
industry. The sources of cost advantage include the pursuit of economies of scale,
proprietary technology, preferential access to raw materials, and other factors, A
cost leader must achieve parity or proximity in the bases of differentiation relative
to its competitors to be an above-aveage performer, even though it relies on cost
leadership for its competitive advantage. Party in the bases of differentiation
allows a cost leader to translate its cost advantage directly into higher profits than
competitors. offset a cost leader's cost advantage and hence the cost leader earms
above-average return. The strategic logic of cost leadership usually requires that a
firm be the cost leader, not one of several firms vying for this position.

The firm must have voted for cost leadership right at the start
To successfully practice such a price-led strategy, a firm should have

consciously taken to the idea sufficiently early in its evolutionary process

and prepared itself for adopting such a strategy. The firm cannot opt for the

strategy midway, after getting stuck in the face of competition. Right from

the beginning, it must have voted for cost-effective technologies/processes,

scale economies, cost reduction programmers, a steady pursuit of

automation, a constant vigil to exploit learning curve effects, best inventory

practices, through resorting to such steps early on, it is difficult for a firm to

compete on the basis of price.

A firm opting for the price rout should be enjoying an overall cost

leadership in the given industry. Its lower cost vis-à-vis the competition

should enable it to secure above average returns, even when it lowers its

prices as required to meet the competition. It is obvious that in the absence

of such cost advantage, it cannot keep offering a lower price over the long

term.

Differentiation-Oriented Marketing Strategy

The differentiation route to strategy revolves around aspects other

than price. It works on the principle that a firm can make its offer
 distinctive from all competing offers and win through the distinctiveness.

And, a firm adopting such route can rice its product on the perceived value

of the attributes of the offer and not necessarily on competition-parity basis.

Differentiation can be based on any of the attributes of the offer

The interesting point is that an offer can be differentiated on any of the

multitude of attributes that form part of the offer. Any of the ever so may activities

performed by the firm, tangible and intangible can also constitute the source of

differentiation. The product with its innumerable features, the service and the

other functions performed by the firm are all possible sources of differentiation.

The potential of the differentiation-led strategy is vividly explained by

Theodore Levitt in his article in Harvard Business Review 'marketing Success,
Through Differentiation of Anything'. In this article, Levitt elaborates that there is
practically no such thing as a commodity. All goods and services are
differentiable. In the marketplace, differentiation is everywhere. Everybody-the
producer, fabricator, seller, broker, the even of those who produce and deal in
primarymetals, grains, chemicals, plastics and money. Through an array of
examples, Levitt explains how, from the simplest of commodities to the most
complicated of products, differentiation can be put to use
In the marketplace today, companies do try to 'achieve marketing success
through differentiation of anything'. They not only differentiate on the unique
feature of their produce, but even on plain facts like the collaboration with a
valuable partner, or the location of the plant, as differentiation themes. They use
any fact/theme that gives them a relative advantage.
Differentiation helps a firm move away from price competition
The differentiation route is a more dynamic and powerful route to
competitive strategy. Most business battles are fought on the strength of
differentiation rather than that of price. The major attraction of the differentiation-
based strategy is that it allows a firm to move away from the disadvantage of a
wholly price-based fight and allows it the flexibility of fighting on the non-price
front, on the strength of the uniqueness and specialty of its offer. The
differentiation route is thus a crucial option for a firm in its search for a rewarding
competitive strategy.
In a differentiation-oriented strategy, a firm seeks to be unique along some
dimensions that are valued by the buyers. It selects one or more attributes that
buyers perceive as important, and positions itself uniquely to meet those attributes.
It gets the due reward for its uniqueness through an appropriate, premium price.
By and large, a firm following a differentiation strategy will be an above average
performer in its industry. One basic requirement is that it should keep the cost of
the differentiation below the premium price it can command from the
differentiation.
The differentiation-oriented strategy requires the firm to choose the
attributes of differentiation very carefully. A firm must be truly unique at
something or be perceived so, if it is to expect a premium price. It also has to see
that the price premium is justified by the value generated by its differentiation. In
contrast to price-oriented strategy where everything works around the price, in the
case of differentiation-oriented one, there will be many different possibilities.
Differentiation does not imply that any cost level is okay. A differentiator
cannot ignore his cost position. No firm can afford to have an unjustified cost
position and jack up its price to cover that. A differentiator thus aims at cost parity
or proximity relative to its competitors, by reducing cost in all areas that do not
affect the differentiation.
Different Possibilities within Differentiation-Oriented Strategy
Since differentiation can be shaped around a large variety of factors, there
can be many different types of differentiation-roiented strategies. They can be
grouped under three broad categories, as shown below :
• Strategies with emphasis on product
• Strategies with emphasis on place/distribution/channel
• Strategies with emphasis on promotion
It can be seen that the three categories relate to the three Ps of the 4P
framework of the marketing mix, the fourth, Price, serving as a separate route for
strategy. A clarification, however, will be in order before we proceed further. It is
by drawing from all the 4P's that any marketing strategy is shaped. Depending on
the context in which they are placed, firms rely relatively more on one particular
element. So, when we talk of strategies with emphasis on, say, Product, it does
not imply that only the Product matters in this strategy. It cannot be so. All the
four Ps are judiciously utilized in forging the strategy. But the product is more
heavily leaned on by the firm. In other words here, the Product is the centerpiece
of the strategy, the other 3Ps playing their assigned supportive roles. Same is the
case with Place, Promotion and Price. One element may get prominence over the
other in the marketing strategy; but no elements gets ignored.

Differentiation with Emphasis on Product

Product covers attributes such as its functionality, packing convenience
etc. It also covers service and experience delivered by the offer.
Differentiating with emphasis on experience Since value is the crux in
marketing, anything that is of value to the customer can be used as a base for
differentiating an offer. experience is one major source of value. So, where
experience forms a significant part of the offer, firms do try to differentiate their
offer by differentiating the experience.
Experience brands In fact, where experience forms a significant part of
the offer and the firms differentiate it on the experience, the brands concerned
become experiential brands. To quote Alice M. Tybout and Gregory S.
Carpenter, 'Experimental brands focus on how consumers feel when interacting
with the brand. Products, environments and services are combined to create
multisensoy encounters with the brand. These encounters may be recurring or
mayinvolve extended contact with the customer, Consequently, the "place" and
"people" components of service delievery are particularly important in creating
strong experiential brands. One hallmark of any great experience brand really, in
consistency. Delivering a consistently good experience is a challenge.

Differentiation-Oriented Strategies with Emphasis on Distribution

Reaching India's village markets has always remained a problem for

business firms. The best they could do was to set up a three-tier distribution
system and reach some village shops for storing and selling their products. Most of
the companies stop with the towns.

Differentiation-Oriented Strategy with Emphasis on Promotion

There are many companies/brands who wage their differentiation-oriented

strategy relying largely on the power of Promotion. It is not that they are devoid
of product strength, distribution reach, and pricing options. They resort more to
promotion and rely more on appeals with psychological/emotional/prestige/status
orientation than the rational, tangible, and benefit oriented ones.

Selling more of image/status than a product :

These companies/brands build around their offerings a halo-image, and sell
them through persuasive marketing communications, especially advertising. Quite
often, they sell the offer and build the brand by using celebrities in the respective
fields and portraying an intimate bond between them and the product. They deliver
the theme through message/media appealing to the target, and repeating the
campaigns for the best reach and impact.
Many of the global brands we see today, especially those in categories like
personal care, cosmetics, over years. They have not been built through the
product-functionality appeal but on the image appeal. The customer is invited to
become part of this image.

Showcasing the user :

The equation between the brand and the the endorser or the unique setting
with which the brand is associated, is the selling point here. The consumer enjoys
being a part of this setting. Through the brand, he is also projecting a new image
of himself; the brand becomes a style statement for him.

Suits image brands more :

As a general rule, differentiation strategy with emphasis on promotion,
works well with image brands. To quote Tybout and Carpenter, 'Image brands
create value, principally by projecting an image. The value of these brands stem,
in large measure, from a shared interpretation of what using the brand represents
rather than the product features. Since image is the basis for differentiation here,
and social and esteem needs are addressed more, promotion/communication works
out as an apt route.

Promotion contributes to brand equity over time :

Well-conceived promotion strategies, executed appropriately and in a
sustained manner go a long way in adding to a brand's equity. Brand equity as a
concept will be explained later in the chapter on Managing Brands. Here, suffice
to emphasise that promotion has an important role in investing brands with great
value. In the chapters on Managing the Product, Product Differentiation and
Positioning, Managing Brandsa and Brand Equity, and, Advertising Management,
we will discuss the details of this process.

Neither Price Competitiveness, nor Differentiation is Sufficient; the

Firm has to be Value Competitive
Especially in the present times of global, no-holds-barred

competition, business firms are compelled to extract the benefits of both the

routes in their marketing strategies and offer the customer maximum

benefits at the most attractive price, so that the offer is irresistible to the

customers. Jack Welch, the former CEO of GE, aptly captures this idea

when he says that in a highly competitive market, a firm has to offer the

best product, coming out of the best technology, at the lowest price. Prof.

Levitt, elaborates the same view in his book. The Marketing Imagination, in

the following words.

The low-cost producer who gets disproportionate market share by

passing part of his advantage along in the form of customer-getting lower

prices has a clear and powerful advantage. But, it must also be linked to

doing everything else that's needed to satisfy the insatiably expanding

wishes and demands of the market. In time, lower prices get taken for grant.

What's usually wanted next are increasingly expanding clusters of other

benefits and also often increasingly varied lines of product and service
options for the customers. The strategy of price competitiveness makes

sense only in the context of the larger or different clusters of things

customers want and value. The trick is to combine price competitiveness

with competitiveness in all other respects. In short, the trick is to provide

the most competitive value. When, the two strategies are combined in a

single company….. the results re spectaculars.

So, the winner in the marketplace is the one whose offer is distinct

and also price competitive. The name of the game, in marketing is to make

the offer distinct, (superior) and price competitive.

Different Marketing Strategies adopted for electronics Goods :

The present study is restricted to electronics industry. Marketing

strategy followed by various electronic companies can be grasped from the

larget market chosen, the way it is positioned and how the marketing mix is

organized. The target market shows to whom the unit intend to sell the

products; positioning and marketing mix together show how and using what

uniqueness or distinction, the unit intends to sell. The three together

constitute the marketing strategy platform.

In the entertainment sector of electronic industry, companies

implement and communicate intended strategies suitably. Strategies like

'price is a key tool', 'technology leadership', 'different products for different

customer are easy to communicate. The market too separate appropriately.

But strategies which are not clearly elucidated, like 'best in consumer care',

'the most respected Indian company' 'brings happiness to every home', are

difficult to build on image upon and sustain our time. In order to effectively

communicate these strategies companies have to carry out years of

persistent activities in that direction to increase credibility among

consumers.

Organizations formulate various strategies, make them functional

and operational, and then implement them. It is expected that while

companies implement strategies ultimate customers respond to them

appropriately, that is companies look for customers to react and respond in

a particular way so that their objectives are fulfilled. During

implementation, the companies can make periodic assessments of how the

market actually perceives and response to the intended strategies. This can

be done by regularly interviewing customers dealers and other outside

groups.

Firms do Change Their Marketing Strategy When Required

Marketing strategy for a product/brand is not a permanent fixture. It

has to undergo appropriate changes to meet the shifts in consumer

behaviour, competition and market evolution. The competitive posture a

company takes in the first instance and the extent of realization/non-

realisation of that objective too is a factor in deciding whether a change has

to be made or not.

Another factor influencing change in strategy for a product/brand is

the change in its life cycle stage. As the market for a given product evolves.

grows, and declines, the strategies have to necessarily change. Product life

cycle and market evolution are concurrent phenomena demanding

monitoring by the marketer.

The strategies aimed at a novice buyer in a newly unfolding market,

and the strategies needed when he becomes an experienced user of the

product in an arrived market, fully backed by his learning curve have to be

different.

Marketing Strategy has to Result in an Executable Marketing

Plan

Marketing strategy for a product/brand represents the sketch for the

competitive battle by the marketer. For activating the strategy however, he

needs to convert the battle sketch into a full-fledged and actionable

 frame/allocation of funds. It is worth reciting here, the dictum, 'execution is

strategy'. And execution rests on a detailed marketing plan.

Consumer behaviour

Although the various model given above have relevance in study

of buying behaviour of consumers for various products but since we

are dealing in electronic products of entertainment segment which is

influenced by the black box model which is a monadic model, we would

like to discuss this model in detail as compared to other models which

are discuss in brief.

Black box model :

ENVIRONMENTAL FACTORS BUYER’S BLACK BOX

Marketing Environmental Buyer Decision
BUYER’S
Stimuli Stimuli Characteristics Process
RESPONSE
Product Economic Attitudes Problem Product

Price Technical Motivati recognit choice

Place Political on ion. Brand

Promot Cultural Percepti Informa choice.

ion ons tion Dealer

 Personal search. choice.

ity Alternat Purchase

Lifestyle ive timing

evaluati Purchase

on . amount

Purchas

decision

Post

purchas

behavio

Table 3.2 Black box model

The black box model shows the interaction of stimuli, consumer

characteristics, decision process and consumer response. It can be

distinguished between interpersonal stimuli (between people) or

intrapersonal stimuli (within people). The black box model is related to

the black box theory of behaviorism, where the focus is not set on the

processes inside a consumer, but the relation between the stimuli and
 the response of the consumer. The marketing stimuli are planned and

processed by the companies, whereas the environmental stimulus are

given by social factors, based on the economical. Political and cultural

circumstances of a society. The buyers black box contains the buyer

characteristics and the decision process, which determines the buyers

response.

The black box model considers the buyers response as a result of a

conscious, rational decision process, in which it is assumed that the

buyer has recognized the problem. However in reality the consumer

does not make many decisions in awareness of a determined problem.

Black box model although does not describe formation of purchase

behaviour but mentions personally, motivation. Attitude and learning process, the
factors standing in between input stimulus and output behaviour. Later on market
researchers developed the model into complex multivariable model.

Electronic Goods:-
The study is marketing strategy of electronic goods; electronic goods
comprises of a wide range of products in both consumer goods and industrial
goods. Here the focus of the study is on the consumer goods primarily focusing on
entertainment segment of electronic goods. Entertainment segment of the
electronic goods mostly comprises, T.V., VCD/DVD, play station, home theatre,
audio system etc.

Allahabad City:-
Allahabad district has a population of 4,936,105 while Allahabad city has a
population of 1,206,785 as per the 2001 census. It lists as the 32nd most populous
city in India.Allahabad literacy rate is 82%. Allahabad has an area of about 70 km2
(27 sq mi) and is 98 m (322 ft) above sea level.
The urban area of city can be classified into three categories. The Old City is
economic center of city. This is a high density area where major roads are used as
transport corridors as well as market streets. The newer city around Civil Lines
area, was conceived during British rule. This area is well planned on gridiron road
pattern with additional diagonal roads, making it an efficient city. It is a low
density area with wide tree-lined avenues It houses major educational institutions,
the High Court, Uttar Pradesh public service commission, offices, gardens and
cantonment areas. It also has shopping malls and multiplexes, The outer growth
areas include satellite towns along major highways passing through cities. It also
includes city areas trans Ganges and Yamuna.

Major Market Areas of Allahabad

Civil Lines is a locality/township of Allahabad, Uttar Pradesh, India. It is

one of the major market areas of Allahabad, and is famous for its shopping malls,
hotels, cinema halls and restaurants. The area was built by the British during the
heyday of the British Raj and was a residential colony of the British at that time.
The Modern Day Civil Lines has several skyscrapers and modern buildings which
show the constant change taking place in the city. Civil Lines is a paradise for
shoppers in Allahabad, Mostly big electronic exclusive showroom such as LG,
Samsung, Nokia Priority, Sony etc. are a prime destination for shoppers belonging
to diffrent socio-economic status. even though properties are considered quite
costly in the area due to its importance.

Chowk is a historical point, where once stood the Neem tree where
numerous freedom fighters were hanged in the first Indian War of Independence.
The main market of Allahabad, a traditional bazaar, from garments to spices
sweets papads and vegetables. The main electronic market in Chowk is Laxman
Market and Shahganj mostly retailers a found in these markets whereas the main
Chowk area does cater electronic exclusive showroom such as Sony, Videocon,
BPL etc. The main population which comes for shopping in Chowk comprises
middle and low income group, although Chowk is considered as a wholesale
market for most of the consumers good.
 Katra is a locality/township of Allahabad, Uttar Pradesh, India. It is the
trader location for common people with a few retail stores, supported by a thriving
vegetable market called sabzi mandi. It is a very densely congested market place.
This was true a few years back but now a days katra has developed and it's a
happening place. Those who love to live with a little expenditure per month and
with full swing (i.e. happening and full swing). Katra is the place for them. They
can obviously live there with renting a place for a mere $30 per month. It's
obviously a cheaper place where we can find few electronic shops and countable
showroom.

Mutthiganj & Kothaparcha is considered as a wholesale market for

grains, besides these it has numerous cloth stores, shoes stores and electronic
items, where we can find mostly retailers who sell all kind of product in one store,
not much exclusive showroom are to be seen here.

Sampling Design

Area of Study :

Area of study is confined to urban area of Allahabad district, Allahabad is a

metropolitan city, it comprises of upper class, middle class and lower class of

society, it has a cosmopolitan nature. The demographic nature of city has a

uniform approach and hence the sample will be helpful in the analysis of primary

data.
Sampling design :

Population : Entire population of Allahabad city.

Sampling : (a) Purposive sampling was done for selecting area of study.
(b) Random sampling was done for the respondents of questionnaire.

Sample size : The sample consists of 200 people as respondents and 12 dealers.
Sample taken (Area wise)
Name of Area Consumers Dealers
Civil Lines 50 3
Katra 50 3
Chowk 50 3
Mutthiganj 50 3
Total 200 12
Pilot Study

Before the construction of schedule a pilot study of the selected geographical

localities was conductd. The researcher visited the strategic business points of the
each geographical locations of the study and conducted the study with the limited
number of respondents who exclusive came to buy electronic goods of
calertainment segment. This hoped in formulation of scheduler and finalizing the
sample to be drawn in the study.

Testing of Schedule :

The interview schedule was first examined with the help of electronic goods
dealers & consumers of the study area are later revised in the light of suggestions
made by them. The schedule was pre-tested with 15 consumers and 23 dealers
randomly related respondents other then those included in the final study. In the
wake of defficulties reconstrected in pre-testing some modification were made in
the schedule.
Development of the interview schedule :

Is the prior investigations in to this topic were seldom done the investigator
received the available literature in this matter and formed an interview schedule
appropriate to the type of evidence required for the study. The interview schedule
was designed for dealers and consumers reparalely. Which was cimided into two
parts major parts dealing with various profils in relation is dealer and other in
relation to consumer and their behaviour aspect.

Preparation of Schedule:

Schedule comprises of two set of questionnaier, one questionnaire is

prepared for the dealers and the other is prepared for the consumer. In order to
prepare the questionnair for the dealer elements of marketing strategy was used
where as questionnaire for the consumer was prepared using the black box model
of consumer behaviour.
The schedule for the dealer comprised the four Ps of marketing Mix the
four Ps corresponded to the customers four Cs.
4 Ps 4 Cs
Product Consumer solution
Price Customer cost
Promotion Convenience
Place Communication

The question of the schedule were based on the sub elements of the
marketing mix

Marketing Mix
 Product Price Promotion Place

Product variety List Price Sales promotion Channels

Quality Discounts Advertising Coverage
Design Credit terms Direct marketing Assortments
Features Allowances Publicity Location
Brand name Personal selling Inventory
Packaging Transport
Sizes
Warranties

Source: Dr. R.L. Varshney & Dr. S.L. Gupta “Marketing management text and
cases an Indian perspective
Fig. 3.4 Marketing Mix

PART – II
FIELD PROCEDURES

1. Tools of study
For the purpose of date collection the respondents were personally inter veneer
with the help of structured questionnaire comprising the following aspects.
 i) General Information
ii) Preferences of the consumers & dealers
iii) Awarence of consumers erdealers in comparison with that of other
brands.

2. Period of study
The data were collected during the period of Jan 2009 to sep 2009
3. Method of Enqing
All the selected respondents wiz, electronic goods consumers and dealers were
personally contacted face to feel interview method and at to some time a
structured questionnaire was given to each respondent to answer the personal
interview helped the researcher to clearly explain the purpose of date collection
which in turn enabled the respective respondents to interpret the information as
desired,
4. Tabulation, analysis and interpretation of data.
The primary data collected were trasfered an analysis sheet. It was then
analysed and interpreted in the light of objectives of the date.

5. Development schedule to measure the preference of consumers

A. Selection of items

A number is 28 slateivents reflecting their preference or mor-preference

lowarts various aspects of marketing strategies and consumer behaviors.

B: Development of preliminary scale

 In the development of an schedule hiker’s 4 point scaling, method of was
used. The importance of emphasized.

C. Sate Collection
200 Consumers of electronic goods and 12 dealers of electronic goods in
entertainment segment were selected as respondents from 4 market area of
Allahabad city they were asked to respond to each statement an the given four
points.
4 : highest
3: next highest
2: next lowest
1: lowest

D. Scoring of the test

The scoring was 4, 3, 2, 1. Then the total scores were commutation
of numerical weights assigned to the response, with an individual and were
checked. A score sheet of the total score was made and tested.

PART – III
Statistical techniques
Statistical tools used for analysis of data
To give appropriate statistical treatment the data thus collected were
tabulated analyzed and given statistical treatment. The Tables & charts were
prepared and the data were interpreted is the backdrop of objectives of the study.
 Descriptive statistics
The statistical methods, which are used is describing the distribution of
characteristics among a series of varying units, are called descriptive statistics the
descriptive statistics that were used is this study : Pie chart, Mean and Variance.

Inferential statistics
The inferential statistics deals with analysis of several aspects of
association or relationship between the distribution of two or aware characteristics
among the same group of units. Thus these statistics concisely describe the
existence direction, degree and nature of assoualim between these or more
characteristic.
The following statistical test was used to analyse and to interpret the data.
Chi. Square ( χ 2) for the purpose of testing significant difference between two
marcables.
The formula used for χ 2 was.
(fo - fe) 2
χ2= ∑
fe
df = (r-1) (c-1)
where
∑ = summation
for = observed frequency
fe = Expected frequency
df = degree of freedom
c = column
r = row
The χ 2 value thus obtained by using the for formula is referred to the table value
of χ 2 for the corresponding degree of freedom, to test whether the associations is
significant or not
 Chapter-4

FINDINGS AND DISCUSSIONS

 FINDINGS AND DISCUSSIONS
Organization formulate various strategies, make them functional and
operational, and then implement them . In theory, it is expected that while
companies implement strategies, ultimate consumers respond to them
appropriately; that is companies look for consumers to react and respond in a
particular way, so that their objecting are fulfilled.
During implementation, the companies can make periodic assessments of
how the market actually perceives and responds to the intended strategies. This
can be done by regularly interviewing customers, dealers and other outside groups
(Kotler, 1999)
This section details the actual response of the consumers and dealers
towards the various strategies of companies, as obtained from the dealer and
consumer survey.
This chapter is exclusively developed to discuss findings of the present
study. The data collected was subjected to statistical analysis and the findings
were interpreted in the light of objectives and hypothesis set up for the study.

This study has five objectives :

1- The first objective seeks to find out the purchasing pattern of consumers
regarding electronic goods in Allahabad city.

Purchasing pattern of consumer

To find purchasing pattern of the consumers the researcher presented the

consumers and the dealers with two different set of statement respectively, with
response of yes/no to each given statement.
 The response of the consumers and dealers for each statement with their
respective percentage are given in the following pie charts.

A. Response of dealers in reference to consumers buying/ purchasing pattern

regarding electronic goods.
Showing the purchasing pattern of consumers in view of dealers on the
statement -

Model of goods :

mode l of goods

8%

25%
yes
no
na

67%

Fig.4.1 Model of goods

 In case of model of goods 67% of the dealers were of the opinioned

consumer give preference to the model of electronic goods while purchasing it

here as 25% of the dealers were of opinion that consumer purchase electronic

goods irrespective of model of the goods. 8% of the respondents did not respond it

may be concluded that consumer give preference to the model of electronic good

while purchasing the product.

Features of goods :

features of goods

0%
25%

yes
no
na

75%

Fig.4.2 Features of goods

 In case of features of goods 75% of dealers were of the opinion that
consumer give preference to the features of the product while purchasing it where
as 25% of dealers were of the opinion that consumer purchases electronic goods
irrespective of the features of the product.

It may be concluded that consumer give preference to the features of the

electronic goods while purchasing it.

Quality of goods :

quality of goods

8%
8%

yes
no
na

84%

Fig.4.3 Quality of goods

In case of quality of good 84% of the respondents i.c. dealers were of the
opinion that consumer give preference to the quality of goods the dealers feel that
better quality leads to more consumers where as 8% of dealers were of the opinion
that consumer buy electronic goods irrespective of the quality of goods where as
8% respondents did not respond.
Warranty of goods :

w arranty of goods

8%

17%

yes
no
na

75%

Fig.4.4 Warranty of goods

In case of warranty of goods 75% of dealers were of the opinion what

consumer purchase goods giving preference to warranty of goods. Where as 17%
of the dealers where of the opinion that consumer purchase electronic goods
irrespective of the warranty of good and 8% of the dealers did not respond.
After sales service:

afte r sale s se rvice

17%

yes
50% no
33% na

Fig.4.5 After sales service

In case of after sales services provided by the dealer 50% of the dealers
opined that the consumer gave preference to the after sales service while purchases
of electronic goods where as 33% of the dealer were of the opinion that consumer
did not consider after sales service at during purchase and 17% of dealers did not
respond.
Service Standard :

service standard

8%

yes
no
50% na
42%

Fig.4.6 Service Standard

Regarding the service standard 50% of the dealers opined that the consumer
purchased electronic goods on service standard where as 42% of the dealers
opined that consumer did not consider the service standard while purchasing the
electronic goods where as 8% respondents did not respond. It may be concluded
the consumer prefer to buy those electronic goods of which these dealers provide a
set service standard.
Service Charge :

service charge

17% 17%

yes
no
na

66%

Fig.4.7 Service Charge

In case of service charges 66% of the dealers opined that the consumers
consider service charges of the goods while purchasing it where as 17% of the
dealers opined that the consumers did not consider service charges of the goods
while purchase where as 17% of the dealer did not respond. It may be concluded
that the consumer prefer to purchase electronic goods which come along with
economic service charges.
Intermediaries :

intermediaries

25%

42%
yes
no
na

33%

Fig.4.8 Intermediaries

Regarding the purchase of the electronic goods 33% of the dealers opined
that the consumer are not interested in knowing the intermediaries where as 42%
of the dealer opined that consumer are keen to know the intermediaries while
purchasing the product. 17% of the dealers of the dealers did not respond. It may
be concluded that consumers are prefer to know the intermediaries while they
purchase. This while they purchase. This shows their behaviour of equestriennes
and awareness regarding other purchase options.
Transportation charges :

Transportation charges

17%
33%
yes
no
na

50%

Fig.4.9 Transportation Chart

In case of transportation charge 50% of the dealers considered the

consumers purchase electronic goods irrespective of the transportation charges of
the goods, where as 33% of the dealers opined that consumer give preference to
the transportation charge at purchase and 17% did not respond. It may be
concluded that the consumer prefer to by products considering the transportation
charges of the goods.
Location of outlet:-

location outlet

17%

yes
no
17% na
66%

Fig.4.10 Location of outlet

In case of location of the outlet, 66% of the dealers were of the opinion that

consumer purchase of the location of the outlet where as 17% of the dealers

opined that consumer do consider the location of outlet while making purchase of

electronic goods where as 17% of dealers did not respond. It may be concluded

that consumer do not give much preference to the location of outlet while making

purchase of electronic goods.

Discounts and rebates:-

discount and rebate

17%
0%
yes
no
na

83%

Fig.4.11 Discount and rebate

Regarding the discounts & rebates 83% of the dealers opined the consumer

prefer to purchase after considering the discount & rebate that is given with

electronic goods where as 17% of the respondents did not respond. It may be

concluded the consumer prefer to buy those product in which they are able to save

some money, this shows their tendency to purchase their choice of product at their

choice of rate.
Pricing Policy:-

Pricing policy

17% 17%
skipping
parity
premium
17%
differentiated
32%
17% any other

Fig.4.3 Pricing Policy

In case of pricing policy, 32% of the dealers opined that they have

differentiated pricing policy, where as 17% of the dealers were of the opinion that

there is skipping pricing policy 17% of the dealers were of the opinion that

electronic goods are sold at premium and 17% of the dealers were of the opinion

that parity pricing policy is followed. It may be concluded that dealer prefer

differentiated pricing policy to sell their electronic goods.

Credit Sales:

Credit sales

17% 8%

yes
no
- na

75%

Fig.4.13 Credit Sales

In case of credit sales 75% of the dealers opined that they do not sell goods

on credit basis.
Resale price:

Resale price

17%
33%
yes
no
na

50%

Fig.4.14 Resale price

In regard to the resale value of electronic goods 50% of the dealers.

 Showing the purchasing pattern of consumers on the statement

Consumer buy good on Need & Demand

need & demand

9%

19%
yes
no
n.a

72%

Fig.4.15 Consumer buy good on Need & Demand

Regarding the need & demand of c.p. w.r.t. entertainment it was observed

thatg 72% opined that they purchased the product acc to their need while 19%. of

consumer punch, goods even though there was no need which 9% of respond did

not respond. It is concluded that the cons preferred to purchase the etc. goods acc

to the needs and hence their been implicit the reason for purchasing the product.
Consumer buy good on Brand name

brand name

17%

yes
no
na
25% 58%

Fig.4.16 Consumer buy good on Brand name

In the case of brand name 58% of dealers were of the opinion that the brand

name plays an imp. role in their business. The cest punch, the prod. are to blind

and hence the Cos give emphasis an brand while framing their marketing St. 25%

of dealer of were not in fav. of brand is selling their product for they believed that

cust. by etc. pro. acc to their need feather of product. 17% of the dealers were of

the opinion that brand name was in applicable in their business. In case of brand
name the LG dealers give emphasis in the brand more as compared to doing,

samsung while in case of Oscar the dealer were in government.

Consumer prefer goods of the brand

brands

14%

38%
17% 1
2
3
4

31%

Fig.4.17 Consumer prefer goods of the brand

In case of purchasing a product 38% of respondent preferred to buy goods of LG

company. 31% respondents preferred Oscar. It is concluded that consumer mostly

preferred LG products as compared to the other brands. This shows that LG as a

brand his preferred more among respondents.

Consumer buy good on Quality and Warranty:-

quality and warranty

Fig.4.18 Consumer buy good on Quality and Warranty:-

9%
10%
yes
no
n.a
81%

Regarding the quality and warranty of electronic product with reference to

entertainment it was observed that 81% respondents opined that they purchased

product on the basis quality and warranty given by the company, while 10%

respondent purchased product irrespective of the quality and warranty provided by

the compening. 9% of the respondents did not respond the this question. It is

concluded that the consumers preferred to buy product keeping in mind the

warranty provided with it

Consumer purchase according to their personality & life style:-

personality & lifestyle

4%

38% yes
no
58% n.a

Fig.4.19 Consumer purchase according to their personality & life style:-

In case of person & life style of buyers 58% of the respondents opined that

they purchase electronic product which reflect their personality & life style. And

38% respondent opined that they purchased electronic goods irrespective of the

fact that whether the electronic product matches the respondents life style or

reflects their personality and 4% of the respondent did not respond to this

question. It is concluded that more than 50% of consumers purchase those

electronic products which suits or reflect their personality and life style hence this

behaviour implicites the reason for purchasing the behaviour.

Consumer purchase according to Availability & durability:-

availability & durability

19%
yes
no
13%
n.a
68%

Fig.4.20 Consumer purchase according to Availability & durability

In case of availability and durability 68% of the respondent opined that they

make purchase of the electronic goods on the basis of availability of the product

and they further check the durability of the product prior to purchase where as

13% of the respondents opined that they electronic goods irrespective of its

durability, only 19% of the respondents did not respond to this question. It may be

concluded that consumer prefer to check the availability and durability of the

product in the market while making purchase of electronic goods in entertainment

sector.
Consumer purchase according to Brand Comparison:-

brand comparision

15%

15% yes
no
n.a
70%

Fig.4.21 Consumer purchase according to Brand Comparison

In case of brand comparison 70% of respondents opined that they compare

brands while make a purchase of electronic product where as 15% of the

respondents buy a product without companying it with other brands and 15% of

the respondents did not respond to this question. It is concluded that consumer

prefer to compare brand in all possible aspect prior of purchase done.

Consumer purchase is Influenced by:-

influnced by

8% 0%
24% family
20%
friend
locality
status
none
48%

Fig.4.22 Consumer purchase is Influenced by

In case of purchase done under influence 48% respondents opined that the

purchase electronic goods in entertainment sector under the influence of the family

members, where as 24% of respondents purchase electronic goods under the

influence of friends and 20% of respondents opined that they made purchase under

the influence of the locality where they stay and 8% of responded purchased an

electronic goods to show their status. It is concluded that the consumer preferred

to purchase electronic goods under the influence of family, and hence their

behaviour is the reason for purchasing the product.

Consumer purchase on the basis of after sale service:-

after sale service

8%
15%
yes
no
n.a
77%

Fig.4.23 Consumer purchase on the basis of after sale service:-

Regarding the after sale service of electronic goods with reference to

entertainment it was observed that 77% opined that they purchased the product

considering the after sale service given provided by the dealer with the product

where as 15% did not consider the after sale service while making purchase of

electronic product where as 8% responds, did not respond. It is concluded that the

consumer preferred to buy those electronic goods which have after sale service

provision given by the dealers.

Consumer purchase on the basis of Exclusive show room:-

exclusive show room

exclusive show room

0%
0%
46% yes
46% yes
no
no
54% n.a
54% n.a

Fig.4.24 Consumer purchase on the basis of Exclusive show room

Regarding the purchase of product from exclusive show room 54%

respondents preferred to purchase electronic goods in entertainment segment from

exclusive show rooms of a particular brand, where as 46% of the responded made

purchased the electronic goods of without considering the exclusive showrooms. It

is concluded that the majoring of consumer prefer to buy goods from exclusive

show room as they feel that the exclusive show room cater them well.
Consumer purchase on the basis of Location of outlet:-

location of outlet

8%
38% yes
no
n.a
54%

Fig.4.25 Consumer purchase on the basis of Location of outlet

In case of location of outlet 54% of respondents where of the opinion that

they purchased the product irrespective of the location of the outlet, while 38% the

respondents considered the location of outlet while purchasing the electronic

product. It is concluded that the consumer purchased electronic goods from

available outlet irrespective of location of the outlet hence their behaviour

emplicites the reason for purchasing the product.

Consumer purchase on the basis of Discount & rebates:-

discount & rebates

8% 0%
yes
no
n.a
92%

Fig.4.26 Consumer purchase on the basis of Discount & rebates

In case of discounts & rebates, 92% of the respondents opined that they

purchased the electronic goods in entertainment segment considering the discount

and rebates given to their on the purchase of the product where as 8% of the

respondents purchased electronic goods irrespective of the discounts & rebates. It

may be concluded that the consciousness prefer to buy electronic goods with

discounts & rebates on the purchase value

Consumer purchase on the basis of Delivery of products:-

Delivery of products

8%
31%
yes
no
n.a
61%

Fig.4.27 Consumer purchase on the basis of Delivery of products:-

Regarding the delivery of products 61% of the respondents purchased the

product irrespective of the delivery of electronic goods conditions where as 31%

of the respondents consider the terms of delivery of products, where as 8% of the

respondents did not respond. It may be concluded that consumers purchase the

product irrespective of the terms of delivery at the time of purchase.

Consumer purchase on the basis of Mode of Payment:-

mode of payment

23%

cash
credit

77%

Fig.4.28 Consumer purchase on the basis of Mode of Payment:-

In case of mode of payment 77% of the respondents opined that the

purchase electronic goods on cash payment where as 23% of the respondents

preferred credit mode of payment. It may be concluded that the consumer prefer to

purchase goods in cash as compared to credit

Consumer purchase on the basis of Price of product:-

price of prouct

0%
38% yes
no
62% n.a

Fig.4.29 Consumer purchase on the basis of Price of product

In case of the price of product 62% of the respondents opined that they

purchased. The product considering the price as an important factor while

purchasing electronic goods in entertainment segment where as 38% of the

respondent purchased the product irrespective of the price of the product. It may

be concluded that consumer consider price as a important factor while purchasing

electronic goods.
Consumer purchase on the basis of Advertisement:-

advertisment

0%

46% yes
no
54% n.a

Fig.4.30 Consumer purchase on the basis of Advertisement:-

In case of advertisement 54% respondents opined that their purchase of the

electronic goods is influenced by the advertisement of the goods, where as 46%

purchased the goods irrespective of the advertisement of the goods. It may be

concluded that mostly consumer purchase electronic goods is under the influence

of advertisement although other factors do affect the purchase, but advertisement

spreads awareness of the goods and influence the purchase made by the consumer.
Consumer purchase on the basis of Gifts & coupons:-

gifts& coupons

15% 23%
yes
no
n.a
62%

Fig.4.31 Consumer purchase on the basis of Gifts & coupons

Regarding gifts & coupons, provided with the purchase of electronic goods

62% of respondents opined that the prefer to purchase electronic goods with which

gifts & coupons are given where as 23% of the responded purchased products

irrespective of gifts & coupons provided along with the goods, where as 15% of

the respondents did not respond. It may be concluded the consumer prefer to

purchase electronic goods which come along with gifts & coupons.
Consumer purchase on the basis of Media:-

media

15%

print
audio-video

85%

Fig.4.32 Consumer purchase on the basis of Media:-

In case of advertising media 85% of respondents purchase were effected by

audio-visual media where as 15% respondents preferred print media. It may be

concluded the consumer behaviour is influenced by the audio-visual media as

human learn and perceive more when more sense organ are active.
Consumer purchase on the basis of Satisfaction on purchase

Satisfaction on purchase

5% 5%

Yes
No
No Response

90%

Fig. 4.33 Consumer purchase on the basis of Satisfaction on purchase

`It was observed that 90% of the consumer prefer to buy goods which give
than satisfaction an purchase where as 5% of the respondents said no to this
statement and remaining 5% did not respond to the statement.
Consumer Search Information about product

search information

10%
15%
yes
no
no response
75%

Fig. 4.34 Consumer Search Information about product

It was observed that 75% of the consumers search for information regards
the product they want to buy, when 15% of the did not search information
regarding the product they want to buy, where as 10 % of the respondents did not
respond to this statement.
2. The second objective seeks to find the impact of marketing strategy on
consumer behavior.

IMPACT OF MARKETING STRATEGY ON

To find the impact of marketing strategy on consumer behavior a random

sample of 200 people were gives reliable and valid schedule who were further

divided according to brand of preference.

Chi-square (χ 2 ) values were calculated to know the impact of marketing

strategy on consumer behavior. The results have been shown in table 4.2 and table

4.2 below

Table 4.1 Observed frequency (fo)

Response Yes No N.A Total

Brand

LG 33 20 5 58
Samsung 21 17 14 52
Sony 20 4 18 42
Oscar 16 21 11 48
Total 90 62 48 200
 Table 4.2 Expected frequency (fe)

Yes No N.A Total

LG 90 x58 62 x58 48 x58 58

200 200 200
= 26.1 =17.98 =13.92

Samsung 90 x52 62 x52 48x52 52

200 200 200
= 23.4 = 16.12 12.48

Sony 90 x 42 62 x 42 48 × 42 42
200 200 200
= 18.9 = 13.02 = 10.08

Oscar 90 x 48 62 x 48 48 x 48 48
200 200 200
= 21.6 = 14.88 = 11.52

Total 90 62 48 200

Table 4.3 Calculation of Chi-square (χ 2 )

Row Column fo fe fo-fe (fo-fe)2  fo − fe 
2

 
 fe 
1 1 30 26.1 3.95.15 26.52 0.58
2 20 17.98 2.02 4.08 0.23
3 5 13.92 -8.92 79.57 5.72
2. 1 21 23.4 -2.4 5.76 0.27
2 17 16.12 0.88 0.77 0.05
3 14 12.48 1.52 2.31 0.18
3. 1 20 18.9 1.1 1.21 0.06
2 4 13.02 -9.02 81.36 6.25
3 18 10.08 7.92 62.73 6.22
4. 1 16 21.6 -5.6 31.36 1.45
2 21 14.88 6.12 37.45 2.52
3 11 11.52 -0.27 0.27 0.02

χ2 = ∑
( fo − fe)2 = 23.1
fe

(iii) Ho : foi = fei = 0

(iv) Level of Significance = 0.05 & 0.01

&
df ( r-1) (c-1) = (4-1) (3-1)
= 3×2
=6

(v) Looking df = 6 in chi-square table the get

χ 02.05 (df = 6) = 12.592 & χ2 (df = 6) = 16.812

0.01

(vi) Since the calculated value of χ 2 is 23.1 which is more than the table value

χ 02.05 (df = 6) = 12.592 & χ2 (df = 6) = 16.812

0.01

Hence, the consumer’s behavior in dependent on marketing strategy

therefore it can be said that marketing strategy has an impact on consumer
behavior.
3. The third objective seeks to analyse the strategies, processes
adopted by electronic goods dealer.

Marketing strategies of dealers

To find the marketing strategy of the dealers the researcher presented the
consumers and dealers with a schedule with response of yes/no to each given
statement.
The response of the dealers for each statement with respective percentage is
given in following tables and pie chart.
The Statements of the schedule given to the dealer is clubbed into 4Ps
namely, product, place, price and promotion and mean & variance are calculated
for each company for respective P separately which seeks to find out the strategy
followed by the company.

(1) Showing product as the locus of marketing strategy

Following statement shows product as locus of marketing strategy, to which

the dealer responded on scale of 4 to 1 (Highest to lowest)

Consumer prefers to buy goods on:

1. Brand name
2. Model of goods
3. Features of the goods
4. Quality of the goods
5. Warranty of goods
6. after sale service
7. Service charge
8. Service standard
Appendix C: Statement wise score for product

Table 4.4 Product (as locus of marketing strategy)

Ques. L.G. Samsung Sony Oscar
No.
1. 2.14 3.72 2.42 1.72
2. 2.25 3.63 2.37 1.75
3. 2.34 3.66 2.44 1.56
4. 2.30 3.50 2.30 1.90
5. 2.22 3.78 2.33 1.67
6. 2.17 3.67 2.33 1.83
7. 2.00 3.71 2.43 1.86
8. 2.50 4.00 2.00 1.50
Total 17.92 29.97 18.62 13.79
Mean 2.24 3.71 2.33 1.72
Variance .0192 .0179 .0177 .01768

As evident from the above table that the marketing strategy taken up by
dealer is consider in four aspects vise the product place, price and promotion of
the electronic goods in case of Samsung product the mean was found to be 3.71
while the variance computed was 0.0179 regarding the product element of the
marketing strategy Regarding Samsung it was observed that the mean and
variance of product showed remarkable value as compared with other given
brands such as LG, Sony, Oscar. It is concluded that the marketing strategy of
Samsung which considers product sub-elements as locus of its marketing strategy,
other elements such as price, place and promotion are also given important but the
product is given were importance, when the same is considered for marketing
strategy.
The product has got more value in mean and variance as were ranking was
given towards brand name, model of product, feature of the goods, quality,
warranty service charges etc., while less was given for price aspects, place &
promotion aspects. Nearly all dealers gave preference lowards quality, brand,
warranty, service standard rather price, place & promotion in formation
formulating marketing strategy which can influence consumer behavior.

(2) Showing place as the locus of marketing strategy.

Following statement shows place as locus of marketing strategy to which

the dealer responded an a scale of 4 to 1 (highest to lowest) .

Consumer prefer to buy goods an

1. Location of the outlet
2. Enquire about intermediaries
3. Transportation changes.

Appendix D : Statement wise score for place

Table 4.5 Place (As locus of marketing strategy)

Ques. No. L.G. Samsung Sony Oscar

1. 1.625 2.625 2.250 3.50
2. 2.200 2.000 2.200 3.60
3. 2.250 2.000 2.000 3.75
Total 6.075 6.625 6.450 10.850
Mean 2.030 2.210 2.150 3.670
Variance .0801 .0868 .0150 .0110
 As evident from the above that marketing strategy taken up by dealer is
considered in place aspect of the 4 aspects vise product , place, price and
promotion of the electronic goods. In case of product place as locus of marketing
strategy, Oscar's mean was found to be 3.670 which the variance computed was
0.0110.
Regarding Oscar it was observed that the mean and variance of place showed
remarkable value as compared with other given brands such as 69, Samsung, Sony
it is concluded that the marketing strategy of Oscar which considers place sub-
elements as locus of its marketing strategy, other elements such as price, product
and promotion are given importance the place is given more importance when the
same is considered for marketing strategy.
The product has got more value in mean and variance as more ranking was
given towards location of outlet, enquiry about intermediaries’ transportation
charges etc while less was given for price, product of promotion aspects. Nearly
all dealers gave preference towards location & intermediaries rather price, product
& promotion in formulating marketing strategy which can influence consumer
behavior.

(3) Showing price as the locus of marketing strategy.

Following statement shows price as locus of marketing strategy to which

the dealer responded an a scale of 4 to 1 (highest to lowest)

Consumer prefer to buy goods on

1. Discount & rebate
2. Credit
3. Resale price
 Appendix D: Statement wise score of price

Table 4.6 Price (As locus of marketing strategy)

Ques. No. L.G. Samsung Sony Oscar

1. 2.30 2.10 3.60 2.00
2. 2.00 3.00 4.00 1.00
3. 2.25 2.25 3.75 1.75
Total 6.55 7.35 11.35 4.75
Mean 2.18 2.45 3.78 1.58
Variance .0172 .1550 .0272 1.805

As evident from the above the marketing strategy taken up by dealer is

considered in price aspect of the 4 Ps vise product, place, price and promotion of
the electronic goods. In case of price of Sony mean was found to be 3.78 while the
variance computed was 0.0272.
Regarding Sony it was observed that the mean and variance of price showed
remarkable value as compared with other given brands such as LG, Samsung, and
Oscar. it is concluded that the marketing strategy of Sony which considers place
sub-elements as locus of its marketing strategy, other elements such as place,
product and promotion are given importance the price is given more importance,
when the same is considered for marketing strategy the price has got more value in
mean and variance as more ranking was given towards discount, credit and resale
price while less was given for product, place & promotion aspect Nearly all
dealers gave preference towards discount, credit resale price in formulating
marketing strategy which can influence consumer behavior.
 (4) Showing promotion as the locus & marketing strategy.

Following statement shows promotion as locus of marketing strategy to which

the dealer responded on a scale of 4 to 1 (highest to lowest).

Consumer prefer to buy goods on

1. Advertisement
2. Response to advertisement
3. Gifts
4. Discount coupons
5. Demonstration via contest road show etc.
6. Selling expertise

Appendix E: Statement wise score of promotion

Table 4.7 Promotion (as locus of marketing strategy)

Ques. No. L.G. Samsung Sony Oscar

1. 3.82 2.00 2.28 1.90
2. 3.50 2.00 2.50 2.00
3. 3.50 2.33 2.00 2.17
4. 3.63 2.12 2.25 2.00
5. 3.83 1.67 2.33 2.17
6. 3.50 2.25 2.00 2.25
Total 21.78 12.37 13.36 12.49
Mean 3.63 2.06 2.23 2.08
Variance
 As evident from the above the marketing strategy taken up by dealer is
considered in promotion aspect of the 4Ps via product place, price and promotion
of the electronic goods. In case of promotion of L.G mean was found to 3.63 while
the variance computed was -
Regarding (LG it was observed that the mean and variance of promotion
showed remark able value as compared with other given brands such as Samsung,
Sony and Oscar. It is concluded that the marketing strategy of LG which considers
promotion sub-elements as locus of its marketing strategy, other elements such as
price, place, product are given importance the promotion is given more
importance, when the same is considered for marketing strategy.
The promotion has got more value in mean and variance as more ranking was
given towards advertisements, gifts selling expertise and road show; trade fore
while less was given for product, price & place aspect. Nearly all dealers gave
preference formulating marketing strategy which can influence consumer
behavior.

4. The fourth objective seeks to observe the consumer

behavior regarding electronic consumer goods.

Consumer behavior regarding electronic goods

To observe the consumers behavior regarding electronic goods the researcher

presented the consumer with a schedule to which they responded in yes/no for
each given statement.
The response of the consumer for each statement with the respective percentage is
given in the pie chart given below.
Showing consumer behavior regarding electronic goods on the statement-
"Need and demand"

need & demand

9%
19% yes
no
u.a
72%

Fig. 4.35 Showing consumer behavior regarding electronic goods on the

statement "Need and demand"

It was observed that need and demand are the element of decision process of
consumer which comes under problem recognition, 72% of the consumer
responded 'yes' to this statement that they buy a product when there is a need of
the product and the opined that need and demand of product they tend to buy the
product but 19% of the respondents opined that need and demand did not effect
their purchase. Where as 9% of the consumers did not respond. Therefore we can
concluded that majority of the people buy according to need and demand of the
product, once they recognise the problem they are facing due to the absence of the
product a need is aroused in them and they buy the product.
Showing consumer behavior regarding electronic goods on the statement-
"Personality and lifestyle"

personality & lifestyle

4%
yes
38%
no
58% n.a

Fig. 4.36 Showing consumer behavior regarding electronic goods on the

statement personality & lifestyle

It was observed that consumer behavior is reflected in the buyer characteristic

element personality and lifestyle, 58% consumer responded 'yes' that they buy
electronic goods according to their personality and lifestyle. It is a consumer’s
characteristic which is reflected in their purchase where as 38% of the consumer
responded no they do not purchase as per their personality. Were as 4% did not
respond. Therefore it may be concluded that more than half of the respondents
purchase electronic goods according to their personality and lifestyle. It is are of
consumer behavior element.
Showing consumer behavior regarding electronic goods an the statement-
"Comparisons with other brands."

brand comparision

15%
yes
15%
no
u.a
70%

Fig. 4.37 Showing consumer behavior regarding electronic goods an the

statement- "Comparisons with other brands."

It we observed that consumer behavior is reflected in the decision process

element alternative evaluation. 70% of the consumers responded 'yes' that they do
compare with other brands while buying electronic goods where as 15%
responded said 'no' but since it is human nature to compare, therefore consumer
behavior is reflected in this statement, it affects the consumers decision making
process.
 Showing consumer behavior regarding electronic goods on the statement-
"Purchase is influenced by"

influnced by

8% 0%
24% family
20%
friend
locality
status
none
48%

Fig. 4.38 Showing consumer behavior regarding electronic goods on the

statement-"Purchase is influenced by"

It was observed that a consumers purchasing is effected or influenced by the

people around them. 48% of the respondents said 'yes' the purchase a product
under the influence of friends, 24% of consumers were influenced by family for
the purchase electronic goods where a 20% are influenced by locality and only 8%
were influenced by status. It shows that consumers behavior is influenced by
family friends, locality etc. Therefore it may be concluded that the behavioral
variables attempts to understand people's want.
Showing consumer behavior regarding electronic goods on the statement-
"Exclusive show room"

exclusive show room

0%

46% 1
2
54% 3

Fig. 4.39 Showing consumer behavior regarding electronic goods on the

statement- "Exclusive show room"

It was observed that consumer response depends upon his choice of dealer and
showroom which purchasing a product. 54% of the respondents said 'yes' they
prefer to buy from exclusive showroom. Where 46% are did not bother about the
showroom. It may be concluded that consumer behavior is reflected in his
response to choice.
Showing consumer behavior regarding electronic goods on the statement-
"Delivery of product"

Delivery of products

8%
31%
yes
no
n.a
61%

Fig. 4.40 Showing consumer behavior regarding electronic goods on the

statement- "Delivery of product"

It was observed that elements of consumer behavior tells why people buy and
what people buy, terms of delivery of product helps in making a consumer buy a
product in response to this statement 61% consumer said 'no' their buying behavior
is not effected by this element.
Showing consumer behavior regarding electronic goods on he statement-
'Gifts & coupons'

gifts& coupons

15% 23%
yes
no
n.a
62%

Fig. 4.41 Showing consumer behavior regarding electronic goods on he statement-

'Gifts & coupons'

It was observed the gifts and coupons draws attention of a person towards an
item it does not compels him to buy but it only attracts him, as 62% of the
consumer responded no to this statement that they purchase due to their need and
budget and other such similar factors and not because of gifts and coupons.
Showing consumer behavior regarding electronic goods on the statement-
"Media"

media

15%

print
audio-video

85%

Fig. 4.42 Showing consumer behavor regarding electronic goods on the

statement-"Media"

It was observed that people rely more on audio visual media than of mint
media to decide for purchasing a product as 85% of respondents preferred audio
visual media because we perceive more when we use two sense organs such as eye
and ears. It may be concluded that a buyer’s response aspect of consumer behavior
depends upon media by which a consumer is made aware about the product.
These are few exclusive elements of consumer behavior which effect their
buying. There are several other factors which also affect their decision.
 5. The fifth objective is to find out the problem faced by the
consumer regarding purchase of electronic goods.

To find out the problems faced by the consumers regarding purchase of

electronic goods.
The researcher presented the consumer and dealer with a schedule with response
yes/no to each statement.
Each response given by the consumer and dealer were compared to see
whether the product manufactured reaches it ultimate user in the way it has to.

(1) Brand name

brand nam e
Brand name brand name

17%
58% of dealers
1 8%
1
25% 58%
2

3
responded yes 23%
69% 2
3
69% consumers
responded yes

Fig. 4.43 Brand name

t was observed that a company makes an electronic goods under a brand name
if the consumer is well were about the product and its brand then the work of the
manufacturer is received by the ultimate user.
2) Quality and warranty

quality of goods Quality and quality & warranty

8%
warranty
8%
9%
1 10%
1
2

3
79% of dealers 2

3
84% 81%
responded yes
81% consumers
responded yes

Fig. 4.44 Quality and warranty

it was observed that the consumers give preference to the quality and warranty.
79% of responded opined that consumer look for warranty and quality where as
79% of dealers say they keep quality in mind while framing marking strategy so
that the consumers need is satisfied regarding quality and warranty.
3) Location of outlet

location of outlet Location outlet location of outlet

17%
66% of dealers
17%
1
1
17%
66%
2

3
responded yes 17% 2
66% 3

38% consumers

responded yes

Fig. 4.45 Location of outlet

It was observed that 38% of consumers look for the location of the outlet but
66% of dealers opined that the consumers look for locationof outlet this preference
of the consumer is catered well by the dealer so the consumer does not find any
difficulty.
4) Discount & rebates.

discounts and rebates Discount and discount & rebates

17%
rebates 8% 0%
0%
1
1
2

3
83% of dealers 2

83% 3

responded yes 92%

92% consumers
responded yes

Fig. 4.46 Discount & rebates.

It was observed that consumers are attracted towards discounts and rebates.
92% respondent agreed that they look for discounts and rebates at the time of
purchase where as 83% of dealers also agreed to it and mostly dealers keep
discounts and rebate so that the consumer gets satisfied with the price while
purchasing the product and is able to buy the product. it is human tendency to get
attracted towards the product where you can get rebate or discount.
5) Advertisement:

response to advertism ent Advertisement advertism ent

83% of dealers
8%
8%
1 responded yes 46%
1
2
54% 2

84%
3
54% consumers
responded yes

Fig. 4.7 Advertisement:

It was observed that 54% of consumer prefer to buy on the basis of
advertisement of the product and 83% dealers opined the consumer come to
purchase are the product is advertised . So the consumers are made aware about
any new product and its features through advertisment.

6) Mode of payment
m ode of paym ent m ode of payment
Mode of payment
23% 77% of 23%
1
2
respondent pay in 1

77% cash 2

23% of respondent 77%

preferred credit

Fig. 4.8 Mode of payment

It was observed that 77% of he respondents prefer to pay in cash where as 23%
respondents prefer to pay in credit. Keeping the prefrence of consumer in mind the
dealers do offer credit sales to the consumer so they do not find any problem in the
purchase of the product.
Comparison of marketing mix elements.
 Dealer Consumer

10%
8%
Yes Product 22% Yes

33%
No No
59% No Response
68% No Response

17%
Yes Place 4%

46%
Yes
No No
50%
33% No Response 50% No Response

Price
2%
17%
Yes 36% Y es
41%
No No

No Response 62% N o Response

42%

Promotion
17% 8%
Yes
38% Y es
No
25% 58% No
No Response N o Response
54%

Fig. 4.49 Comparison of marketing mix elements.

 It is observed that while comparing the marketing mix elements it was seen
that in case of product related sub- elements 68% of the respondents were effected
by product and 59% of the dealers opined that consumers purchaser is effected by
the sub-elements of product the dealers keep in mind the need, brand, quality
personality match influence on referrals group in mind so the consumers do no
face any problem in the purchase of product.
It was also observed that 46% of the consumers opined that they give
preference to the location of the outlet, type of intermediaries and transportation
charges, 50% of the dealers also agreed to these points so then dealers keep sub-
elements in this list of preference while drafting marketing strategy, so the
consumers do not face any problem at the time of purchase.
It was further observed that 62% of the consumer gives preference to the sub-
elements of price such as rebates discounts, terms of payment. Economy price etc
& 41% of dealers also agreed to it therefore marketing strategy are made such that
the consumers do not face any problem for price of the purchase.
It was further observed that 58% of the dealers opined that they see consumer
come to purchase due to the promotion of the products they consider
advertisement gifts of coupons, media, road show, trade fairs contest, emotional
relations selling expertise, but 38% consumers agreed to it, but the dealers keep
these sub-elements in focus. To make the consumer aware of the products features,
availability, price, service standards, the dealers promote the product via various
modes. it is kept in prime focus that consumers do not face any problem in
purchase of the electronic goods.
Therefore the marketing strategies are made consumer oriented and their
preferences are catered accordingly to minimize the problems faced by the
consumer while purchase of electronic goods.

******
 Chapter-5
SUMMARY AND
CONCLUSION
 SUMMARY AND CONCLUSION

The present thickly entitled "Impact of marketing strategy of electronic

goods an consumer behaviour in Allahabad city" attempts to study the impact of

marketing strategy an consumer behavior is significant or not and it tries to

understand the purchasing pattern of consumer and observe their behaviour in

light of the marketing strategy.

The present study was conducted with the following objectives:

1. It find out the purchasing pattern of consumers regarding electronic

goods in Allahabad city.

2. To find out the influence of marketing strategy on consumer behaviour.

3. To analyze the strategies, processes adopted by electronic goods dealer.

4. To observes consumer behaviour regarding electronic consumer goods.

5. To find out the problems faced by the summer regarding purchases of

electronic goods.

Based on the above objectives the present study the following hypothesis were

setup for testing of their significance in the study.

1. The present marketing strategy of electronics goods consumer friendly.

 2. Electronic goods consumers are not facing any problem in purchase of

electronic goods.

Research Methodology:

Research design : Descriptine in mature.

Research Area : Allahabad City.

Sample Size : 200 Consumers, 12 Dealers

Sampling Technique : Purposive sampling & random sampling

Research tool : Structured questionnaire

Statistical tool : Pie Chart, chi- square, mean and variance

Summary of important findings

(i) Majority of the consumer i.e. more than 50 % of the

respondents purchase electronic goods and the basis of need,

demand, personality, lifestyle, comparison with other brands,

exclusive showroom delivery of product, gifts and discount

coupons audio visual media, quality, and warranty, after sale

service, discount and rebate, advertisement.

(ii) More than 50% of the consumer respondents while purchase

electronic goods do not goods do not give preference to

location of outlet.
(iii) Majority of the consumers (48%) of the respondent are

influenced by their friend for purchasing electronic goods

followed by family influence (24%) , locality (20%) and (8%)

by the status.

(iv) Majority consumer (77%) of the respondents pay in cash for

electronic goods.

(v) Majority of the dealers opined that consumers purchase

electronic goods on the basis of brand name, model of goods,

features of goods, quality, warranty, after eales service,

service, standard location of outlet, intermediaries, discounts

and rebate, advertisement, response to advertisement,

emotional monopoly, selling expertise, trade fair, gifts,

discount coupons.

(vi) Majority of the dealers opined that consumer purchase

irrespective of the service charges, transportation charges,

resale price, advertising programme, contents .

(vii) Majority of the dealers following skipping pricing policy

(32%) as compared to other pricing policy such as parity.

differentiated & premium .

(viii) Majority of dealers prefer cash sales (77%) .

(ix) Majority of the dealers opined that company bears the

advertisement expenses (83%) .

(x) There is a significant impact of marketing strategy an

consumer behaviour.

(xi) Samsung dealers prime focus is the product and its sub-

elements as compared to price, place and promotion. While

faming marketing strategy.

(xii) Oscar dealers focus primarily an the place and its sub-

elements while strategies or processes of marketing are

adopted.

(xiii) Sony dealers focus mainly an the price and its - sub- elements

while framing strategy for marketing as compared to other

aspects such as price, place, product.

(xiv) Majority of consumer behaviour is influenced by their need,

personality, comparison with other brand, by family friends

exclusive showroom, gift and commons. which are various

aspects of marketing.

(xv) Majority of the consumers do not face any problem regarding

purchase of electronic goods. as the marketing and marketing

strategy is made around the consumer are given importance

while framing marketing strategy so that a ultimately the

 consumers do not face problem regarding purchase of

electronic goods.

Conclusion

On the basis of the above finding and observations made , it may be

concluded that-

Consumers are well aware about their preferences in the electronic industry

mainly entertainment - segment companies implement and communicate intended

strategies suitably. the consumer responds to these strategies accordingly. The

consumer behaviour is the locus of marketing strategy. Marketing strategy has an

impact on consumer behaviour and it is consumer friendly. The purchase of

electronic goods by the consumer in Allahabad city are effected by the price of

the product and the reliability of the dealer at the time of purchase of the product.

Recommendations

Visualizing the salient features of the study and relevant findings the

investigator wishes to make the following working recommendation which could

certainly help the government, marketers of electronic goods and consumers.

1- The study of the present problem shall be continued in the respective

direction and there is a need to amend the errors made during the study,

although every possible care has been taken to minimize the errors. The

researcher in sure of the fact that the present in manuscript will serue as a

guide for the future researchers to continue the study.

2- In order to effectively communicate there strategies, companies have to

carry out years of persistent activities in that direction, use more of public

relations rather than relying an only advertisement and there by increase

credibility among consumers.

3- A brand competes against host of well known competitive and aggressive

brands in electronic market and other related product lines. In order to be

successful companies need to create a distinct and unique positioning for

their brand. Indian companies need to build exclusive brand identity.

Brand that have an image of one among many cannot survive.

4- As the uncertainty of the market continues Indian companies need to be

extra cautious not to leave any loopholes in their operations-whether it is

in technological adaptation continuous investments in R& D, dealers

relations, customer satisfaction, plugging holes in market segments, price

modification or aggressive promotion sales for a company will be static

unless companies infuse vigor in their strategic marketing.

5- While formulating strategies, companies need to estimate the result before

hand and specify objectives clearly. As consumer promotions and dealers

 promotion have become the order of the day in electronic marketing,

companies may lack time to plan the sequence of operations systematically

so it is essential to anticipate the strategies of competitions, identify

possible scenarios and release well designed state.

6- Once the strategy is introduced in the market, companies need to build

support market; companies need to build support to the strategy from all

fronts. Awareness about the strategy to be implemented should be created

among middle and customer promotion messages should be designed

accordingly and communicated through different media in the from of an

integrated marketing mix, Finally, it should be ensured that at the point of

purchase, customer are not disappointed by the brand not mailing the

expedition raised.

7- Price modifications have been dominating the industry for quite a few

years. Yet some companies which usually has a high price, has increased

its market share. Companies should not make price modifications alone as

a strategy, at the expense of the other aspects such as product, place and

promotion.

8- To let market response in accordance with the strategy companies also

need to concentrate on claim community development program after sale

service campaigns, good public relations and publicity programs.

9- This may be important to understand the consumer behaviour as most of

the consumer should not be fooled by the marketers.

10- The manufacture should know important aspects which they should

consider along with the already unlamented strategic point.

11- The Government should make such policies which should promote Indian

companies more in electronic segment.

12- Oscar dealer focus primarily as the place and its sub elements while

strategies or processes of marketing are adopted.

13- Sony dealers focus mainly on the price and its- sub- elements while

framing strategy for marketing as compared to place, promotion and

product.

14- The LG dealers focus on promotion and its sub--elements while framing

marketing strategy and processes of marketing as compared to other aspect

such as price, place, product.

15- Majority of consumer behavior is influenced by their need, personality,

comparison with other brand, by family friends exclusive show room gift

and coupons.

16- Majority of the consumers do not face any problem regarding purchase of

electronic goods as the marketing and marketing Strategy is made around

the consumer. Preference of consumer are given importance while framing

marketing strategy so that ultimately the consumers do not face problem

regarding purchase of electronic goods.

*****
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APPENDIX-A: CONSUMER QUESTIONNAIRE

Consumer Profile

1. Name :

2. Age :

3. Gender :

4. Marital Status :

5. Income (P.M.)

6. Number of family members:

7. Locality of residence :

8. Job :

Statements

1. Which brand of product your prefer.

(a) LG (b) Samsung (c) Sony (d) Oscar

2. You purchase decision is influenced by :

(a) Family (b) Friend (c) Locality (d) status (e) None

3. Mode of payment you prefer.

(a) Cash (b) Credit

4. Which media influenced you to buy

 (a) Cash (b) credit

5. Which media influenced you to buy

(a) Print (b) Audio Vishul.

6. Do you buy electronic goods an the basis of the following

given elements.

Please tick in the appropriate box.

Yes No No Response
1. Need and demand
2. Quality
3. Warranty
4. Availability
5. Durability
6. Features of the product
7. After sales service
8. Comparison with other hand
9. Product reflects your personality &
life style
10. Satisfaction an purchase
11. search information about product
12. Exclusive Short room
13. Location of outlet
14. Exclusive Showroom
15. Location of outlet
16. Discount and rebate
17. Terms of delivery
18. Economy price
19. Advertisement
20. Gift and coupons.

APPENDIX-B: Dealer Questionnaire

Profile

1. Name of the Shop :

2. Address :

3. Area :

4. Type of product dealt with

Statements

5. Which brand do you sell :

6. Do you maintain emotional relation with the consumers.

7. Advertisement expenses are born by?

(a) company (b) dealer

 8. What type of pricing policy is followed ?

(a) Panty (b) differentiable (c) Premium (d) Skipping

(e) any other

9. Do you have advertisement programme

10. Do you promise credit sale ?

11. On what terms do you promide credit.

12. Do consumer prefer to buy goods an the basis of the following

elements ? If yes, then give rating as indicated below.

1. Lowest

2. Next Lowest

3. Next highest

4. Highest

Y/N LG Samsung Sony Oscar

1. brand Name
2. Model of the goods
3. Features of the goods
4. Quality of goods
5. Warranty of goods.
6. After sale service
7. Service elements
8. Service intermediaries
9. Location of the outlet
10. enquire about
intermediaries
11. Transportation charges
12. Discount & rebate
13. Credit
14. Resale value/price
15. Advertisement
16. Response to
advertisement
17. Gifts
18. discount coupons.
19. Demonstration via
contest road show trade
for etc.
20. Selling expertise
 Appendix -C : Statement Wise Score for Product

1-
(Response Yes = 7 )

Dealer No. L.G. Samsung Sony Oscar

1. 2 3 4 2
2. 1 4 2 3
3. 2 4 3 1
4. 3 4 2 1
5. 4 3 1 2
6. 1 4 2 3
7. 2 4 3 1
Total 15 26 17 12
Mean 2.14 3.72 2.42 1.72

2- (Response Yes = 8 )

Dealer No. L.G. Samsung Sony Oscar

1. 2 4 3 1
2. 1 4 2 3
3. 2 3 4 1
4. 1 3 2 4
5. 3 4 2 1
6. 3 4 1 2
7. 4 3 2 1
8. 2 4 3 1
Total 18 29 19 14
Mean 2.25 3.63 2.37 1.75
3- (Response Yes = 9 )

Dealer No. L.G. Samsung Sony Oscar

1. 1 4 3 2
2. 2 4 1 3
3. 2 3 4 1
4. 4 3 2 1
5. 2 4 3 1
6. 3 4 1 2
7. 4 3 2 1
8 2 4 3 1
9. 1 4 3 2
Total 21 33 22 14
Mean 2.34 3.66 2.44 1.56
4-

(Response Yes = 10 )

Dealer L.G. Samsung Sony Oscar

No.
1. 3 4 2 1
2. 2 4 3 1
3. 2 3 4 1
4. 1 2 4 3
5. 4 3 1 2
6. 1 4 2 3
7. 2 4 1 3
8. 4 3 1 2
9. 3 4 2 1
10. 1 4 3 2
Total 23 35 23 19
Mean 2.3 3.5 2.3 1.9
 (Response Yes = 9 )

Dealer No. L.G. Samsung Sony Oscar

1. 3 4 2 1
2. 2 4 3 1
3. 1 3 4 2
4. 2 4 3 1
5. 3 4 1 2
6. 4 3 2 1
7. 2 4 1 3
8. 1 4 2 3
9. 2 4 1 1
Total 20 34 21 15
Mean 2.22 3.78 2.33 1.67

6-
(Response Yes = 6 )

Dealer No. L.G. Samsung Sony Oscar

1. 3 4 2 1
2. 1 3 4 2
3. 2 4 3 1
4. 2 4 1 3
5. 1 4 2 3
6. 4 3 2 1
Total 13 22 14 11
Mean 2.17 3.67 2.33 1.83
 (Response Yes = 7 )

Dealer L.G. Samsung Sony Oscar

No.
1. 2 3 4 1
2. 1 4 3 2
3. 3 4 1 2
4. 4 3 2 1
5. 1 4 3 2
6. 2 4 1 3
7. 1 4 3 2
Total 14 26 17 13
Mean 2.00 3.71 2.43 1.8

8-
(Response Yes = 2 )

Dealer L.G. Samsung Sony Oscar

No.
1. 3 4 1 2
2. 2 4 3 1
Total 5 8 4 3
Mean 2.5 4.00 2.00 1.50
 Appendix D : Statement Wise Score for Place

1-

(Response Yes = 8 )

Dealer L.G. Samsung Sony Oscar

No.
1. 2 1 3 4
2. 1 2 3 4
3. 2 3 1 4
4. 1 4 2 3
5. 2 3 1 4
6. 1 2 3 4
7. 3 4 1 2
8. 1 2 4 3
Total 13 21 18 28
Mean 2.00 2.625 2.25 3.5

2-
(Response Yes = 5 )

Dealer L.G. Samsung Sony Oscar

No.
1. 2 3 1 4
2. 3 1 2 4
3. 1 2 4 3
4. 4 1 2 3
5. 1 3 2 4
Total 11 10 11 18
Mean 2.2 2.0 2.2 3.6
3-
 (Response Yes = 4 )

Dealer L.G. Samsung Sony Oscar

No.
1. 2 3 1 4
2. 2 1 3 4
3. 4 2 1 3
4. 1 2 3 4
Total 9 8 8 15
Mean 2.5 2.0 2.0 3.75

Appendix E : Statement Wise Score for Price

1-
(Response Yes = 10 )

Dealer L.G. Samsung Sony Oscar

No.
1. 2 3 4 1
2. 3 2 4 1
3. 1 2 4 3
4. 2 1 3 4
5. 1 2 4 3
6. 2 4 3 1
7. 4 1 3 2
8. 3 2 4 1
9. 4 2 3 1
10. 1 2 4 3
Total 23 21 36 20
Mean 2.3 2.1 3.6 2.0

2-
(Response Yes = 1 )

Dealer L.G. Samsung Sony Oscar

No.
1. 2 3 4 1
 Total 2 3 4 1
Mean 2 3 4 1

3-
(Response Yes = 4 )

Dealer L.G. Samsung Sony Oscar

No.
1. 2 3 4 1
2. 4 2 3 1
3. 2 1 4 3
4. 1 3 4 2
Total 9 9 15 7
Mean 2.25 2.25 3.75 1.75

Appendix F : Statement Wise Score for Promotion

1-
(Response Yes = 11 )

Dealer L.G. Samsung Sony Oscar

No.
1. 4 3 2 1
2. 3 4 1 2
3. 4 2 1 3
4. 4 1 2 3
5. 4 3 1 2
6. 4 2 3 1
7. 4 1 3 2
8. 4 2 3 1
9. 3 1 2 2
10. 3 1 4 3
 11. 4 2 3 1
Total 42 22 25 21
Mean 3.82 2.0 2.28 1.9

2-
(Response Yes = 10 )

Dealer L.G. Samsung Sony Oscar

No.
1. 3 2 4 1
2. 4 1 3 2
3. 4 3 2 1
4. 2 3 1 4
5. 4 2 3 1
6. 3 1 4 2
7. 4 2 1 3
8. 4 2 3 1
9. 3 1 2 4
10. 4 3 2 1
Total 35 20 25 20
Mean 3.5 2.0 2.5 2.0

3-
(Response Yes = 6 )

Dealer L.G. Samsung Sony Oscar

No.
1. 3 4 2 1
2. 4 3 2 1
3. 4 2 3 1
4. 4 1 2 3
5. 2 3 1 4
6. 4 1 2 3
 Total 21 14 12 13
Mean 3.50 2.33 2.0 2.17

4-
(Response Yes = 8 )

Dealer L.G. Samsung Sony Oscar

No.
1. 4 2 3 1
2. 3 4 2 1
3. 4 2 1 3
4. 4 1 3 2
5. 4 3 1 2
6. 4 2 3 1
7. 2 1 4 3
8. 4 2 1 3
Total 29 17 18 16
Mean 3.63 2.12 2.25 2.00

5-
(Response Yes = 6 )

Dealer L.G. Samsung Sony Oscar

No.
1. 3 1 4 2
2. 4 2 1 3
3. 4 3 2 1
4. 4 1 2 3
5. 4 2 3 1
6. 4 1 2 3
 Total 23 10 14 13
Mean 3.83 1.67 2.33 2.17

6-
(Response Yes = 8 )

Dealer L.G. Samsung Sony Oscar

No.
1. 3 2 4 1
2. 4 3 2 1
3. 2 4 1 3
4. 4 1 2 3
5. 4 2 3 1
6. 4 3 1 2
7. 3 1 2 4
8. 2 2 1 3
Total 28 18 16 18
Mean 3.5 2.25 2.00 2.25