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For Factors considered by Indian buyers in purchasing of consumer durables

Submitted in the Partial Fulfillment of the Requirement Of Course

Master in Management Studies

(SESSION 2011-2012)

Submitted By:

Approved By :

Manoj.D.Dhomane MMS-IIIrd Semester. Roll No.: A-09

Prof. Dr. Sachin Deshmukh. (Marketing Management)

Dr. G.D.Pols Foundations

YMT college of Management

Sector 4, Kharghar, New Mumbai-10

Approval Statement

This is to Approve that the proposed Capstone project proposal factors considered by Indian buyers in purchasing of consumer durables submitted by Manoj.D.Dhomane, in partial fulfillment for the award of Master in Management Studies of University of Mumbai.

Place: Mumbai Date:

Signature of Guide

Prof. Dr. Sachin Deshmukh Dean, YMT College of Management, Navi Mumbai.


Sr.No. 1 2 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4 5

Topic Introduction to Proposal. Review of Literature. Research Methodology. Research Gap Objectives Importance of Study Benefits of Study The Sampling Plan Data Collection Statistical Tools Computer Software Limitations of Study Chapter of Scheme Adopted. References.

Page. No. 04 05 06 06 06 06 07 07 08 08 09 09 10 11

1. Introduction to Proposal of Capstone Project.

This is the final entry for intern Capstone project. It has been a really interesting project, and Intern is very excited about all of the things which intern has been able implement with the help of interns guide Prof.Dr. Sachin Deshmukh, Dean of MMS, YMT college of Management. Intern capstone project proposal culminated in 25-pages which illustrate the overall capstone project plan which will be undertaken next 40 days. Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no longer considered luxury items. However, there were still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well acknowledged brands, and hold over wide distribution network. However, the penetration Level of the consumer durables is still low in India. India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India. LG, SAMSUNG the two Korean companies have been maintaining the lead in the market with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth of the industry. The rising income levels double-income families and consumer awareness were the main growth drivers of the industries. Interns Capstone project will be related with study of factors consider by Indian buyers in purchasing of consumer durables.

Consumer durable market assesses how this spending is distributed and the consumer products that affect spending. Durable commodities prices paid by consumers decreased 5.3 percent in 2002, the largest calendar-year decrease since 1938 (Wilson, 2003), further it gets reduced more afterwards. On the other hand people were spending marginally for home 4

appliances in 1999, in 2003 spending on technology goods/home appliances has touched 6.6% out of total spending of the Indian consumers(Singhal, 2005, Kotler and others,2007). The demand of home appliances has been increase much more in 9-10. Increase in demand is a result of increase in income of the people and increase in discretionary income too (Arora Renu, 1995, Bhatty I. Z., 1989, Gupta and Pal, 2001, Sontaki, 1999). Jain and Sharma (2000) studied 584 respondents out of 800 questionnaires of Delhi in five professional category observed that selected products represent different product categories in terms of both durability and frequency of purchase as required. Study shows that the levels of consumer involvement differ across products. As against non-durables, consumer perceives durables as more involving products. SRI IMRB (2000) evaluated a comparison of the education and income levels of different clusters, and it indicated that those who give higher priority to consumer durable market electronic products are more educated and affluent. The study also revealed that transportation durables preceded consumer electronic products in the acquisition hierarchy, suggesting a tactical approach Venkteshwar and Rao (2000) have focused on tracing and identifying the elements in consumer durable market decision-making; the research has studied 200 urban workingwomen belonging to different occupation, educational and income groups. Study observed television as a major source of information, for 65.5% consumers. While group forces affects 50% respondents. Surprisingly 45%-employed women still feel radio as a source of information. In purchase of consumer durables, 53% would decide for brand. Price is relatively more important facand husband and wife take decision jointly.

3. Research Methodology.
3.1 Research Gap:

The proposed research shall be conducted to understand Indian consumer buying behavior towards consumer durables.

3.2 Research Objective:

The proposed Capstone project study of factors consider by Indian buyers in purchasing of consumer durables has following basic objectives: To find number of brands of consumer durable. To study brand preference of consumer for consumer durable goods.. To find most important parameter for selection of brand of Colour television, Refrigerators, Washing machine, DVD, Microwave oven.

3.3 Importance of Study:

The given capstone project would surround the forces which compel the Indian consumer buying behavior for consumer durables. there are well known companies like Videocon, LG that had to shelve their expansion plan for that segment. These companies are looking more research on the proposed title because the investment they put in this segment. The given proposed capstone project is also important to understand the values, beliefs of Indian consumer . This research will try to fill the gap in the understanding the Indian consumer buying behavior. The research also important to study the future opportunities for consumer durable, which would seek policies companies should adopt for its growth.

3.4 Benefits of Study:

As a management trainee, any research undertakes by intern increases his application base values. The proposed Capstone project has its benefit for interns, companies to understand the

Indian consumer durable market. The benefits of the given proposed capstone project can be summarized as follows;

Understand the overall market. It will give more light on forces or factor of the Indian consumer buying decision towards consumer durables. The given proposed project also has benefit of future application base for electronics market. It will depict the opportunities for consumer durables in Indian market. Companies can evaluate their market segment more clearly.

3.5 Sampling Plan:

It is a framework laid down by the researcher to obtain data from every unit/ representative portion of the population to be used. It is the approach, where only a few units of population under the study is considered for analysis is called sampling plan The aspects that have been taken into consideration of doing the study:* Sampling frame or the research is developed as: {A} Sampling unit (To whom will be survey) electronics market. {B} Sample size (How many will be survey) The intern will consider a sample of 200 respondents for the research purpose. {C} Sampling design (How will they be select) The intern will use Simple Random sample procedure in which every member of the population has equal chance of selection.

{D} Sampling media (How will they reach) - Questioning the respondent.

3.6 Data collection:

The proposed capstone research will have mainly two types of data:1. Primary data

These data will be mostly collected by personal interview with retailers/ dealer. For this purpose questionnaires will be prepared in such that all necessary data would be collected. 2. Secondary data Information regarding the project, secondary data was also required. These data were collected from various past studies and other sources of the company. Sources are Publications (reports, magazines, journals etc.), Websites, books, etc

3.7 Statistical Tools:

Intern will use Factor analysis as statistical tools for data analysis. Factor analysis is the method of reducing data complexity by reducing the number of variables being studied. In given proposed project, intern will try to find out which forces or factors consumers compel buy consumer durables. The possible purchasing criteria could range from eight to twelve drives buyer behaviors. So, factor analysis is the most suitable statistical tool for proposed capstone project data analysis.

3.8 Computer Software:

SPSS (originally, Statistical Package for the Social Sciences) will be use for given proposed capstone project data analysis. SPSS is among the most widely used programs for statistical analysis in social science. It is used by market researchers, health researchers, survey companies, government, education researchers, marketing organizations and others. Apart from this, MS-excel will, also, be in use for data input purpose.

3.9 Limitations of Study:

The following limitations intern will be consider while implementing the given proposed capstone project: Area Limitation: The study will be limited to Mumbai, Navi Mumbai & thane only. Hence findings may differ from other parts of India where intern will have not visited. Non Response Error: It will almost impossible to obtain data from each & every respondent covered in sample. There are always some respondents who refuse to give information. Limitation of Data source: Sources of data for collection of secondary data will be limited. Time constraint: There will be time constraint to this project. The project will be

complete within 70 days. Biases in data: While interviewing, the respond to each question will not possible for some respondents. So, it will not possible to get perfect perception of interviewer. There will be biased replies also. Other Limitations: While using, SPSS or statistical use there might be some

statistical arises which limits the given proposed capstone project.

4. Chapter of Scheme adopted.

The given proposed research will be completed in systematic manner. Intern has decided to list out the following chapter of scheme should included in the final research report. Sr.No. 1 2 3 4 4.1 4.2 4.3 4.4 4.5 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6 7 8 9 10 11 Chapter Executive Summary of Project Introduction to Project Literature Review Statement of Problem Objective of Study The problem Statement Need & Significance Of The Study Benefits of Study The Hypothesis Research Methodology Scope of Study Data collection- primary and secondary data Instrument for data collection Sampling Plan Statistical Tool used Software used Limitations of Study Data Analysis and Interpretation Findings Summary and Conclusion Recommendations Future Scope Annexure Questionnaire Bibliography & Webliography

5. References:
Marketing Research-Text and Cases, Tata McGraw Hill An industry insight to the world consumer electronics market 10