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P: ISSN No. 2231-0045 RNI No. UPBIL/2012/55438 VOL.-III, ISSUE-I, August-2014
Periodic Research
143

E: ISSN No. 2349-9435 E: ISSN No. 2349-9443
A Study of Impact of Promotional Measures
on Consumer Buying Behaviour towards
Durable Goods—With Reference to Lucknow
City

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Sunita Srivastava
Asst.Professor ,
Deptt. in Commerce,
University of Lucknow,
Lucknow

Aditi Tandon
Research Scholar,
Deptt. in Commerce,
University of Lucknow,
Lucknow

Keywords: Consumer, Durable Goods, Promotion.
Introduction
The Indian Economy is in transition from Government Control to
free market economy, from protection to competition, from isolation to
globalization, from obsolescence to innovation.
The main purpose of business is to create customer and its needs are the
foundation on which the whole business activity revolves.
The needs, desires and aspirations of customer have changed significantly
in the past few years. Today, the consumer has become a KING and
he/she and his/her behaviour have acquired the major attention.
Consumer Behaviour is an indispensable condition upon which all market
planning and strategy must be predicted.
Knowing his customers is a marketer’s most important responsibility and
with rising income, multiple income households, the consumer durable
goods industry is on fast track.
Advertising media is transforming the tastes and aspirations of the people
of the country and with the expansion in communication, infrastructural
facilities and rising awareness of brands has led to the increase in the
demand for durable goods.
Consumer Durable Goods
They are category of consumer products that donot have to be
purchased frequently.
Consumer Goods are classified as durables and non-durables.
Durable Goods are further classified as—-

Abstract
The main purpose of business is to create customer and its needs
are the foundation on which the whole business activity revolves.The
needs, desires and aspirations of customer have changed significantly in
the past few years. Today, the consumer has become a KING and
he/she and his/her behaviour have acquired the major attention.
Knowing his customers is a marketer’s most important
responsibility and with rising income, multiple income households, the
consumer durable goods industry is on fast track. Promotion Mix
involves many activities namely–J advertising, personal selling, sales
promotion, direct marketing and publicity.
Advertising media is transforming the tastes and aspirations of
the people of the country and with the expansion in communication,
infrastructural facilities and rising awareness of brands has led to the
increase in the demand for durable goodsK
Liberalisation of markets in late 1990s saw the entry of global players
like Samsung and LG and a shift in focus towards product innovation.
Whirlpool, Daewoo Aiwa also came into picture.
Today there is a paradigm shift and these players control the
major share of the consumer durables market. This market is growing
very fast because of rise in the living standards, easy access to
consumer finance, and wide range of choice, as many players are
entering in the marketK

P: ISSN No. 2231-0045 RNI No. UPBIL/2012/55438 VOL.-III, ISSUE-I, August-2014
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E: ISSN No. 2349-9435 E: ISSN No. 2349-9443

What is Promotion?
Promotion is the major component of
marketing mix. The purpose of promotion is to reach
the desired consumers and persuade them to act. It
includes marketing activities used to inform, persuade
and remind the target market about an organization,
its products, services and other activities.
Promotion Mix constitutes the specific group of
marketing activities concerned with the
communication aspect with existing or potential
consumers, and relevant public. It involves many
activities namely— advertising, personal selling, sales
promotion, direct marketing and publicity.
NAME CHARACTERISTICS
Advertising According to American Marketing
Association (AMA) Advertising is
any paid form of non-personal
presentation and promotion of
ideas, goods and services by an
identified sponsor.
Personal
Selling
It is face to face presentation of
product, services or an idea to a
potential customer. It is the most
effective way of persuading the
customers. It is often said Getting
customers and keeping
customers is the task of personal
selling.
Sales
Promotion
According to American Marketing
Association (AMA) Sales
Promotion includes those
promotional activities (other
than advertising, personal
selling and publicity ) that are
intended to stimulate customer
demand and to improve
middlemen’s marketing
performance.
Sales Promotion offers incentive to
buy.
Direct
Marketing
According to the Dictionary of
Marketing Terms,
AMA,1995,Direct Marketing
makes use of mail, telephone,
fax, e-mail and other non-
personal contact, tools to
communicate directly with or
solicit a direct response from
specific customers and
prospects.
Publicity According to William Stanton—
Typically , publicity takes the
form of a favourable news
presentation-a plug- for a
product, service or organization.
The plug is made in print, on
radio, or television or in some
form of public address.
Advertising is selling slant while
publicity is news slant.
Indian Scenario
The Indian Consumer has started spending
more on Consumer Durables, apparel, entertainment
activities etc…In the initial years , the sector relied
greatly on media and advertising for consumer
penetration. Only a few companies like Kelvinator,
Godrej, Allwyn and Voltas were the major players in
the consumer durables market, accounting for no less
than 90% of the market. . Liberalisation of markets in
late 1990s saw the entry of global players like
Samsung and LG and a shift in focus towards
product innovation. Whirlpool, Daewoo Aiwa also
came into picture.
Today there is a paradigm shift and these
players control the major share of the consumer
durables market. This market is growing very fast
because of rise in the living standards, easy access to
consumer finance, and wide range of choice, as many
players are entering in the market.
The industry size of consumer durables
stands at Rs. 350 billion as on March 2012. The
sector rides and relies on the state of the country’s
economy.
With household incomes in top 20 cities
across India expected to grow at 10% annually over
the next 8 years and concepts of easy loans, easy
monthly instalments charges, availability of credit
etc…become common thing and the consumer is
likely to spend more on both ulitiy and luxury
consumer goods.
This sector is marked by stiff competition
between market players to launch newer models and
versions of products , discounts and schemes. The
key players in the consumer durables sector are
MNCs like LG, Samsung, Bluestar, Daikin, Hitachi,
Sony etc…
Need of the study
The consumption pattern of a country
depends on many factors: liberalization of economic
policies, buying habits of the youth, age at which
financial independence is achieved etc….
It was necessary to study the effectiveness and
impact of promotional measures upon consumer
behavior in Lucknow city.
The study helped us to know who the
consumers are, what they want, how they react to the
product. The factors considered in this study includes
age,income,education,gender, brand awareness,
source of information etc…
The wants of consumers were carefully
studied via questionnaires and three durables goods
namely television, refrigerator and washing machines
were considered for this study.

P: ISSN No. 2231-0045 RNI No. UPBIL/2012/55438 VOL.-III, ISSUE-I, August-2014
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The study helped us to gain knowledge about the
influence of consumer to prefer a particular brand.
Objectives of the study
1. To study the impact of promotional measures on
consumers choice and their preference.
2. To find out the various factors influencing
consumer behavior towards durable goods.
3. To study the consumer awareness, ideas,
opinions, satisfaction and preference for various
promotional offers.
Literature Review
A McKinsey Report ,
?The rise in Indian Consumer Market?,
estimates that the Indian consumer market is likely to
grow four times by 2025.
International Monthly Referred Journal of
Research in Management and Technology
depicted the purchase pattern of consumers for
durables sector and states with the rising consumer
demand and greater disposable income the Indian
Retail sector is clocking an annual growth rate of
approximately 30%.
According to Johnson the study points that
some consumers compare dissimilar alternatives at
the time of decision making, for example wide range
of products and services like CTV, LCDT.V., music
system, travel abroad, owning a car etc.. are
compared and evaluated. Evaluation is based either
on degree of pleasure or degree of necessity.
Kapoor Sheetal (2002) analysed on
?understanding Buyer Behaviour of Indian Families?
while developing the marketing plan her study stated
that it is the family which should be considered as a
unit of consumption rather than an individual.
Analysis of family buying behavior helps the
marketing manager in product planning, product
promotion and product pricing. She studied Indian
families to examine different aspects of buying roles
and how they shift for different product categories in
the context of major demographic variables.
Yardel Dominique, Raju M.S. (2007) in his
study stated that among the tools available to
manger’s today, an understanding of consumer
behavior is the most powerful and useful one. He
provides a comprehensive view on the science of
consumer behavior and consumer environment, an
insight into behavioral patterns.
Dr. Vyas Hitesh D (2009) focuses upon the issue
related to the consumer psychology.
Here theoretical backgrounds with extensive
supports of literature to enumerate the minds of
Indian Consumers are given.
4 Ps Business ; Marketing and The
Council For Market Research (ICMR) Annual
Compendium 2013, spans more than seven
verticals ( including consumer durables, consumer
electronics, automobiles, finance and online buying),
to identify and understand consumer behavior across
specific product and service segments.
Methodology
To determine the objectives of the study
,primary data has been collected with the help of
structured questionnaire.
Firstly primary data was collected through a pre-
tested questionnaire.
In this study the universe comprised of people living
in urban areas of Lucknow and sources of
information were—
Primary source— through group interviews,
questionnaire and personal discussion.
Secondary source— magazines, reports, internet,
journals etc..
Chi-square test was the main tool used in this study.
The hypothesis taken for this study –
Promotional Measures for different durable goods
are similar in nature.
Analysis and Findings
The present study was carried out to
evaluate the impact of promotional measures upon
consumer behaviour for selected consumer durables
in Lucknow city. For this purpose, a total of 30
respondents, having made a consumer durable
purchase within 24 months from the time of data
collection were enrolled. Table 1 shows the
demographic profile of the respondents:
Table 1: Demographic Profile of Respondents
S
No.
Characteristics Statistics
1. Gender
Male 17 (56.7%)
Female 13 (43.3%)
2. Agegroup
16-25 9 (30%)
26-35 4 (13.3%)
36-45 8 (26.7%)
;45 9 (30%)
3. Education
Higher secondary 4 (13.3%)
Graduate 11 (36.7%)
Postgraduate/Professionally
qualified
15 (50.0%)
4. Marital Status
Married 22 (73.3%)
Unmarried 8 (26.7%)
5. Occupation
Service 13 (43.3%)
Housewife 3 (10%)
Professional 4 (13.3%)
Business 3 (10%)
Others 7 (23.3%)
6. Monthly household income
(Rs in thousands)

10-20 11 (36.7%)
;20-50 13 (43.3%)
;50-200 3 (10%)
;200-500 –
;500 3 (10%)
Majority of respondents were males (56.7%),
aged ;35 years (56.7%), educated upto graduate or
above (86.7%), married (73.3%), were doing service or
involved in other occupations (66.7%) and had monthly
income upto Rs 50,000/- (80%).

P: ISSN No. 2231-0045 RNI No. UPBIL/2012/55438 VOL.-III, ISSUE-I, August-2014
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Table 2
Ownership of Consumer Durable Products and
First three most popular brands of these products
Refrigerator Washing
Machine
Television
30 (100%) 25 (83.3%) 30 (100%)
First three most
popular brands
of Refrigerator
First three
most popular
brands of
Washing
Machine
First three
most popular
brands of
Television
1. LG (n=8;
26.3%)
1. LG (n=10;
40%)
1. Samsung
(n=11; 36.7%)
2. Kelvinator
(n=7; 23.3%)
2. Whirlpool
(n=3; 12%)
2. LG (n=10;
33.3%)
3. Godrej (n=5;
16.7%)
3. Onida (n=3;
12%)
3. Sony (n=3;
10%)
All the respondents had refrigerator and
television. There were 25 (83.3%) respondents who
owned washing machine too.
LG was the most preferred brand for
Refrigerator and Washing machine with a share of
26.3% and 40% respectively. Among televisions,
Samsung (n=11; 36.7%) was the most preferred
brand. Among refrigerators – LG (26.3%), Kelvinator
(23.3%) and Godrej (16.7%) had two-third of the total
market share. Among washing machines, LG (40%),
Whirlpool (12%) and Onida (12%) were the top
market players with almost two-third (64%) of total
market share. Among televisions, Samsung (36.7%),
LG (33.3%) and Sony (10%) dominated the scene
with four-fifth (80%) of total market share.

Table 3: Source of knowledge about consumer durable products
Print
media
TV Ads Radio Word
of
mouth
Website E-matter Sales-
person
Store
display
Catalogue Friends/ Relatives
11
(36.7%)
20
(66.7%)
– 3
(10%)
– – 1 (3.3%) 4 (13.3%) 2 (6.7%) 6 (20%)
Respondents were allowed to opt more than one answers.

Among different source of knowledge about consumer
durable products, television advertisements were the
most common (66.7%) followed by print media
(36.7%). Friends/relatives were source of information
for 6 (20%), store display for 4 (13.3%), word of
mouth for 3 (10%) and catalogue for 2 (6.7%)
respondents. There was 1 (3.3%) respondent who got
the information about these products from the
salesperson.
Table 4
Self-reported influences on purchase decisions
S No. Characteristics Statistics
1. Advertisements
Sometimes 10 (33.3%)
Always 20 (66.7%)
2. Person convincing the final purchase decision
Self 22 (73.3%)
Relatives 4 (13.3%)
Friends 2 (6.7%)
Peer group 1 (3.3%)
Dealer 1 (3.3%)
3. Purchase only when there are attractive sales promotion schemes 5 (16.7%)
4. Prefer foreign brands 5 (16.7%)
5. Person taking final purchase decision
Self 8 (26.7%)
Head of family 14 (46.7%)
Spouse 8 (26.7%)
Daughter/Son –
Neighbours –
Relatives –
Friends –
6. Advertisements reinforce brand loyalty 25 (83.3%)
7. Making referrals to acquaintances 19 (63.3%)

Enquiry about influences on purchase decisions
revealed that all the respondents were influenced by
advertisements – although 10 (33.3%) were of the view
that they were influenced by advertisements only
sometimes yet the remaining 20 (66.7%) were always
influenced by advertisements. Most of the respondents
were of the view that they themselves convinced the
final purchase decision (73.3%). Only 5 (16.7%)

P: ISSN No. 2231-0045 RNI No. UPBIL/2012/55438 VOL.-III, ISSUE-I, August-2014
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respondents looked up for attractive sales promotion
schemes to take their purchase decision. With respect
to preferring foreign brands over Indian brands too,
only 5 (16.7%) respondents preferred so. Almost half
(46.7%) respondents reported that final purchase was
taken by the head of the family while 8 (26.7%)
reported taking decision by themselves or by their
spouses. None of the respondents reported of any
outside family final purchase decision. Most of the
respondents (83.3%) were of the view that
advertisements reinforced their brand loyalty. Majority
of respondents reported of making referrals to
acquaintances.

Table 5: Product wise reasons for purchasing a particular brand
S.N
o.
Reason Television
(n=30)
Refrigerator
(n=30)
Washing
Machine (n=30)
Significance of
difference
No. % No. % No. % ?2 P
a. Brand name 27 90 22 73.3 20 66.7 4.845 0.089
b. Features/Technology 18 60 15 50.0 10 33.3 4.364 0.113
c. Quality 18 60 19 63.3 15 50.0 1.184 0.553
d. Price 14 46.7 13 43.3 10 33.3 1.193 0.551
e. Durability 11 36.7 14 46.7 14 46.7 0.814 0.665
f. User-friendly 11 36.7 10 33.3 11 36.7 0.097 0.953
g. Long-term benefits 12 40.0 11 36.7 9 30.0 0.679 0.712
h. Special offers 3 13.3 5 16.7 4 13.3 0.577 0.749
i. Warranty terms 12 40.0 12 40.0 13 43.3 0.092 0.955
j. After sales 11 36.7 11 36.7 10 33.3 0.097 0.953
k. Appearance 15 50.0 13 43.3 10 33.3 1.731 0.421
l. Social image 9 30.0 4 13.3 5 16.7 2.917 0.233
m. Others 0 0.0 0 0 0 0 – –
For all types of consumer durables – brand
name was the most common reason driving the
purchase decision. Although this reason was most
common for driving purchase decision of television
(90%) as compared to refrigerator (73.3%) and
washing machine (66.7%) yet the difference among
different types of consumer durables was not
significant statistically (p=0.089).
For television brand name,
features/technology, quality, price, long-term benefits,
warranty terms, durability, user-friendliness, after
sales and social image in that order formed the most
common reasons driving the purchase decision.
Special offers being the reason for purchase was
cited only by 3 (13.3%) respondents.
For refrigerator, brand name, quality,
features/technology, durability, appearance, price,
warranty terms, long-term benefits, after sales, user-
friendliness were the top reasons in that order driving
the purchase decision. Special offer and social image
was cited as the reason for driving purchase decision
only by 5 (16.7%) and 4 (13.3%) respondents.
For washing machine, brand name, quality,
durability, warranty terms, user-friendliness, price,
features/technology, after sales, appearance and
long-term benefits in that order comprised the most
common reasons driving the purchase decision.
Special offers and social image were cited to be the
reasons by 4 (13.3%) and 5 (16.7%) respondents
only.
Overall, there was no significant difference
(p;0.05) among different consumer durables with
respect to different reasons driving the purchase
decision.
Table 6: Product wise processes driving a purchase decision for a particular brand of different consumer
durables
S.No. Processes Televisio
n (n=30)
Refrigerator
(n=30)
Washing
Machine
(n=30)
Significance
of difference
No. % No. % No. % ?2 P
a. Compare prices at offered by different
dealers
17 56.7 17 56.7 17 56.7 0 1
b. Collecting information before going for
purchase
20 66.7 20 66.7 14 46.7 3.333 0.189
c. Collecting competitor’s information 10 33.3 8 26.7 8 26.7 0.433 0.805
d. Changing purchase decision at point of
sale (salesperson/dealer)
9 30.0 8 26.7 8 26.7 0.111 0.946
e. Don’t rely on heavy advertising 3 10.0 5 16.7 3 10.0 0.829 0.661
f. Do not find anything misleading in ads 4 13.3 3 10.0 3 10.0 0.225 0.894
g. Affected by promotional measures 16 53.3 16 53.3 16 53.3 0 1

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With respect to processes involved while making a
purchase decision for a consumer durable, these
were found to be similar for all types of consumer
durable products showing statistically no significant
difference for different steps (p;0.05). For television
and refrigerator, the most important process was
collecting information before going for purchase
(66.7%) whereas comparison of prices offered by
different dealers was the most important step (56.7%).
Thus collection of information before going for
purchase and comparison of prices offered by
different dealers were two major steps in purchase
process. Collecting competitor’s information was the
next most common information. However, a
considerable number of purchases (26.7% each for
refrigerator and washing machine and 30% for
television) changed purchase decision in favour of a
particular brand at the point of sale itself. Only a
handful of respondents were of the view that they
don’t rely on heavy advertising and did not find
anything misleading in the advertisements. Majority of
respondents (53.3% each for all the three products)
observed that their purchase decisions were affected
by promotional measures
Findings and Suggestions
These durable goods (television, washing
machine, refrigerators) do not require product
differentiation. As for all types of products no
difference in decision making and purchase profit has
been observed in this pilot study.
In other words we can say that one type of
promotional policy adopted by a particular brands
leads to sale of all the products of that brand name.
Majority of consumers feel that brand name is
important to them.
Television advertisements are still the main
source of information for consumers.
Around 25% purchaser change their
purchase decision at point of sale so inclusion of
dealer and sales personnel in promotional measures
is a suggested root for boosting sales.
References
1. Johnson M.D.:?consumer choice strategies for
comparing on comparable alternatives? journal
of consumer research
2. Consumer Behaviour published by ICFAI
Publications
3. Consumer Behavior , Text and Cases.by Satish
Batra and S.H.H.Kazmi
4. Kotler Philip, Marketing Management, New
Delhi, Pearson Education Inc. 2006
5. Kapoor Sheetal,?Understanding Buyer
Behaviour of Indian Families?, New Century
Publications (2002)
6. Kumar S. Ramesh, Conceptual Issues in
Consumer Behaviour The Indian Context,
Pearson Education(2004)
7. Saxena , Rajan. Marketing Management-the
Indian experience, New Delhi; Tata McGraw Hill,
2000
8. www.cci.in/pdf/surveys_reports/consumer-
durables-sector.pdf
9. www.scribd.com/doc/Project-Report-Fmcd-Final
10. www.geplcapital.com/reports/consumer
durables
11. International Monthly Referred Journal of
Research in Management and Technology.

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