Electoronicsgoklani
Electoronicsgoklani
Electronics deals with electrical circuits that involve active electrical components such as vacuum
tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies. The
nonlinear behavior of active components and their ability to control electron flows makes amplification of
weak signals possible and electronics is widely used in information processing,
telecommunications, and signal processing.The ability of electronic devices to act as switches makes
digital information processing possible. Interconnection technologies such as circuit boards, electronics
packaging technology, and other varied forms of communication infrastructure complete circuit
functionality and transform the mixed components into a regular working system.Electronics is distinct
from electrical and electro-mechanical science and technology, which deals with the generation,
distribution, switching, storage, and conversion of electrical energy to and from other
energy forms using wires, motors, generators, batteries, switches, relays, transformers, resistors, and
other passive components.This distinction started around 1906 with the invention by Lee De
Forest of the triode, which made electrical amplification of weak radio signals and audio signals possible
with a non-mechanical device. Until 1950 this field was called "radio technology" because its principal
application was the design and theory of radio transmitters, receivers, and vacuum tubes.Today, most
electronic devices use semiconductor components to perform electron control. The study of
semiconductor devices and related technology is considered a branch of solid state physics, whereas the
design and construction of electronic circuits to solve practical problems come under electronics
engineering. This article focuses on engineering aspects of electronics.
The CEA (Consumer Electronics Association) estimated the value of 2007 consumer electronics sales at
US$150 billion.
India has been home to all the major EMS companies including Flextronics, Foxconn, Elcoteq, Jabil
Circuits, and Sanmina, etc. There are also numerous home- grown EMS companies catering to multiple but
niche application segments. Some pertinent growth drivers for India’s EMS industry include
Strong and growing domestic demand for mobile phones, medical, consumer, aerospace
and automotive electronics.
Increasing demand for telecom infrastructure equipment
Highly talented workforce, especially for design and engineering services with good
communication skills.
Inflation and rising costs of doing business in China.
Presence of global EMS majors and their plans for increased investments in India.
More outsourcing of manufacturing by both Indian and global OEMs that are increasingly
focusing on R&D and other core competencies.
Key factors responsible for the evolution and growth of the EMS industry in India are:
1. Low Cost Attraction – Globally India has and is gaining recognition as one of the best low
cost destinations for manufacturing. In recent years, with costs rising in neighboring China, India
has been able to further its recognition on the cost front. The hourly compensation for Indian
workers employed in an electronics manufacturing factory stands below $0.5 even now. In
comparison, the hourly compensation for a US worker is between $20 and $22. Even Mexico, one of
the early proponents of the EMS industry, pales in comparison to India at $3 per hour.
2. Special Economic Zones (SEZ) – India was the first Asian economy to set up an export
processing zone (called SEZ in later years) way back in 1965. The 10th and 11th Five Year Plans
are incentivizing the creation of more of electronics hardware SEZs in the country.
3. Local Consumption Volumes – Being the world’s second most populated country and one
with a growing economy, India has been and continues to remain one of the largest consumers of
electronics products. The high domestic consumption volumes make it an attractive destination for
electronics manufacturing services. Over 60 percent of India’s population is in the age band of 15-40
years; this along with the rising levels of disposable income is creating a huge consumption
market in the country.
Electronics Consumption
The past decade has been remarkable for the Indian electronics industry from a consumption perspective:
18 million mobile phones in 2003 to 172 million units in 2010; shipment of 3 million PCs in 2003 to over
8.2 million in 2010; from a non- existent market in 2003 to a rapidly growing LCD TV market that
witnessed sales of 3.5 million units in 2010. The tremendous growth in all segments of electronics has
given the industry a key position on the global map. The Indian electronics industry has been growing at a
CAGR of over 25 percent in the past 5 years and the major reasons that can be attributed to this growth
are:
Revival of the global economy following the 2000-01 dotcom bubble burst.
Continual decline in prices of most the electronics goods(a camera mobile that cost over
Rs.15,000 five years ago is available for < Rs. 5,000 today).
Presence, expansion and/or entry of all major Electronic OEMs and
suppliers into the country creating greater visibility for brands and products.
Steady increase in exports.
Exemption of custom duty on 217 products that come under the ITA-1 items.
The Indian electronics industry was estimated to be $65.1 billion in 2010 growing at over 27
percent from 2009. Chart 5.1.2.a below presents the contribution of different segments to the Indian
electronics industry in 2010.
INTRODUCTION TO LG Electronic India Pvt. Ltd.
Growth trend of LG
Hyderabad, June 23 For South Korean consumer electronics major LG Electronics, India could
graph the highest growth rate in terms of sales compared with its other markets in the last five
months, beating global trends of slackened consumer spending due to recessionary fears. LG
Electronics India Ltd (LGEIL) clocked a growth rate of 18 per cent in the last five months compared
with the corresponding period of 2008, mostly driven by increase in sale of products in the
refrigeration and AC segments, according to Mr Moon B. Shin, Managing Director. “We are now
aiming at a 25 per cent growth in our turnover for 2009 to touch about Rs 13,000 crore. Last year
(2008), we had achieved a turnover of Rs 10,730 crore,” he told presspersons on the sidelines of the
launch of a new LG Shoppe here recently. The company is poised to roll out new models in LCD
and GSM handset categories in the next three to six months in the domestic market.
Samsung
Whirlpool
Sony
VISION OF THE COMPANY
LG Electronics vision for the 21st century is to become a true global digital leader through fast growth
and fast innovation and to be known as a company who can make its worldwide customers happy
through its innovative digital products and services. LG Electronics has set its mid-term and long-
term goal to rank among the top 3 electronics, information, and telecommunication firms in the world
by2010. We aim to utilize our core capabilities of product leadership, market leadership and people
leadership and enhance our corporate culture of team work and fun workplace to achieve our mission
of becoming “2 by 10”, that is, double our sales volume and profit by year 2010.
LG BRAND
The values
Values
We are honest and responsible. We always keep the promises we make to our customers in our bid to
become the world’s most trusted brand.
Innovation
We provide the most innovative products and services. Our innovations are made not for
technology’s sake, but for our customer’s benefit. From the most basic features to the most
sophisticated technology, our products are designed to give our customer substantial value.
(Technology for customers not for engineers)
People
Respecting and caring for our customers is the driving force behind our philosophy in human-centric
product development. Respecting and caring for our employees make this a reality.
Passion
We are very passionate about providing products and services that satisfy the unmet needs of the
customers, as well as those potential needs of customers which they have yet to recognize.
Positioning Statement
LG strives to enhance the customer’s life (and lifestyle) with intelligent features, intuitive
functionality, and exceptional performance. Choosing LG is a form of self-expression and self-
satisfaction. Our customer will take pride in owning the amazing and take comfort in knowing he/she
made a smart, informed decision.
BRAND IDENTITY
LG is the brand that is Delightfully Smart. "Life's Good" slogan, and futuristic logo are a great
representation of what we stand for. Global, Tomorrow, Energy, Humanity and Technology are the
pillars that this corporation is founded on; with the capital letters L and G positioned inside a circle to
center our ideals above all else, humanity. The symbol mark stands for our resolve to establish a
lasting relationship with, and to achieve the highest satisfaction for our customers. The letters "L" and
"G" in a circle symbolize the world, future, youth, humanity, and technology. Our philosophy is based
on Humanity. Also, it represents LG's efforts to keep close relationships with our customers around the
world. The symbol mark consists of two elements: the LG logo in LG Grey and the stylized image of a
human face in the unique LG Red color. Red, the main color, represents our friendliness, and also
gives a strong impression of LG's commitment to deliver the best. Therefore, the shape or the color of
this symbol mark must never be changed. Our logo is the fundamental visual expression used to
identify LG. It expresses the quality and sophistication that is the hallmark of our products. It is simple,
modern and distinctive. Consistent and proper usage of the logo is absolutely essential. The logo is
symbolic of our steadfast reputation for excellence; therefore, any variation of the logo diminishes
the visual identity of LG Electronics and its products. We have two versions of our logo: Corporate
Logo and 3D Logo. The updated 3D Logo retains the heritage and equity of the Corporate Logo, while
aligning with our new positioning. It was redrawn to strengthen the visual impact of our symbol mark
and help communicate our attributes.
Value
Promise
Benefits
Personality
Reliable products
Simple design
Ease of use
Extraordinary Experience
Personality describes the human characteristic that are expressed to the customer through
Trustworthy, Considerate
Practical, Friendly
STRATEGY OF THE COMPANY
LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers
worldwide through its innovative products and design. The company‟s goal is to rank among the top
3 consumer electronics and telecommunications companies in the world by 2010. To achieve this, we
have embraced the idea of “Great Company, Great People,” recognizing that only great people can
create a great company.
Product Profile
Consumer electronics
Mobile phone
Business Areas & Main Products
Mobile Phone Premium trend setter phone , Camera Phone , Music Phone , Color
Screen GSM Handset
Consumer Electronics
Plasma Display:
Model : 71PY10
-Brightness : 800cd/ ㎡
-Contrast : 1200:1
-DCDi
-Sound
-Function
-PIP/DW/POP
-Split Zoom
-Zoom in&out
LCD TV:
Pearl Black
Model: 47LB9
-XD Engine
-Simplink
Color Television:
• Slimagic TV
• Flatron TV
Split Invertor AC
COMMERCIAL AC • Split AC
• Window AC
• Ductable Type AC
• Cassatte Type AC
• Multi V Plus (VRF)
• MPS
REFRIGER ATOR • ECO
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LG ETHICS
LG, share and believe in two key corporate principles - "Creating value for customers" and
"Respecting human dignity." Based on these principles and in the spirit of our
Management Charter, we strive to promote self-
governing management And its accompanying responsibilities. It is our intention to uphold the
principle of free market economy, which embodies the spirit of fair competition. We are
committed to attaining our goal of becoming a global leader, and as such we will continuously
pursue mutual benefits for our stakeholders on the basis of trust and cooperation. LG is
committed to act uprightly and make value judgments in accordance to the code of ethics.
Fair Competition
Our global business activities conform to relevant laws and regulations of the host nations.
At the same time, we employ only fair and just means in securing our competitive advantage
in the global market.
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1. Pursuit of Free Competition
We uphold the principle of the free market economic system. Therefore we pursue free
competition and earn our customers' trust through top quality products and services. We
compete fairly and capably with our competitors, but do not intrude upon their interests,
or exploit their weaknesses.
2. Compliance with Laws and Regulations
We conduct our domestic and overseas business activities in strict accordance with local
laws and regulations, and with respect for local business customs.
Fair Transactions
All business transactions will occur based on the principles of fair competition with equal
opportunities for all entities to participate. We build trust and cooperative relationships through
fair and transparent transactions. Such relationships are built with a long-term perspective for
mutual growth.
1. Equal Opportunity
We offer equal opportunities to all qualified companies seeking to become our business
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partners. All applicants are registered and selected in a rational manner following a fair and
objective evaluation process.
2. Fair Transaction Procedures
All business transactions are conducted under equitable circumstances. The terms and
procedures of the transaction are to be sufficiently discussed between parties involved.
The use of prominence in position to execute an unjust transaction is forbidden.
Information required for transaction is exchanged through appropriate procedures in
timely manner. Transaction results are evaluated on a regular basis where complementary
measures are mutually taken.
3. Support and Aid for Business Partners
We support the long-term growth of our dealers and vendors by enhancing their
competitiveness through technological and managerial assistance. We share the profits
derived from business innovations. We pursue cooperation with our dealers and vendors
in a mutual effort to promote a healthy trading environment and maintain a fair trading
system.
Based on honesty and fairness, LG employees establish a correct values and fulfill the duties
through continuous self-development and fairness in performance.
1. Basic Ethics
LG employees take pride in their company and always maintain an honest and fair
attitude. LG employees keep a high standard of morality and continuously strive to
maintain their personal dignity and company's honor.
2. Completion of Duty
LG employees faithfully accomplish their duties in compliance to the visions and policies
of the company. Assigned duties are carried out in the best possible and fairest manner
while observing relevant laws and regulations. LG employees protect and preserve
company property and do not divulge confidential information gained during employment.
LG employees exert themselves in enhancing work efficiency through open communication
and cooperation with colleagues and related departments.
3. Self Development
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LG employees formulate their respective ideal image of an exemplary employee and
constantly strive to conform to the image through continuous self development.
4. Fairness in Performance
LG employees carry out their duties based on honesty and fairness, seeking to foster a
sound business culture. While performing their duties, LG employees do not accept any
form of financial benefit from interested parties that may obstruct fair judgment. LG
employees do not participate in any immoral and unethical behaviors as prescribed by
social norms in performing their duties to the company or in their personal lives.
5. Avoidance of Conflict with Company Interests
LG employees avoid any individual behaviors or relationships that are in conflict with
company interests. LG employees do not use company property to pursue their
personal interests without prior permission.
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ABOUT SONY:
Sony electronics is one of the most and largest manufactures of home appliances and electronics.
It has been founded in 1912. Sony has been a world leading pioneer in the development of new
technology and original products. Since the invention of the ever Sony pencil sony has grown to
include business ranging from consumers and information products to electronic devices it Leo’s
Employing over 66,700 peoples are employing sony has 68 over sites bases in 80 countries and
take pride
GROWTH AND DEVELOPMENT OF THE ORGANISATION:
Sony India electronics Ltd. Has set up a research and development in Japan. The corporate
research and development Group. Advanced technology research Laboratories Advanced
materials research Laboratories. Biocensing systems Laboratories Advanced image research
platforms technology Development.
In the counter of production technology development group there is a existence of precision
technology development center Design systems development. Center software engineering
center, Manufacturing innovation center.
Sony is one of the few companies that is bringing the high tech products in India. Sony seek to
provide its customers with “value for money” products. Sony has differentiated it self in terms of
both products and after sales services. This is evident from the products and services that have
been introduced in the country.
So Sony contains many of the manufacturing block units which leads to the growth and
development of the organization.
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PRESENT STRTUS OF THE ORGANISATION:
In India Sony is present in only consumer electronics “even Sony” market share, like most
MNCs fighting for a chunk of the indoor consumer electronics market.
Sony had realistic targets from the start with the founder of “Tukoji Hayakawa” was awarded a
patent for the “Tukobijo” The compay which clocked a turn over of Rs 50 Yen with a capital
just began with three employees.
CORPORATE IDENTITY:
In 1912, Sony introduced a new corporate identity programme is the “persona” of a corporation
which is designed to accord with and facilitate the attainment of business objectives, and is
usually visibly manifested by way of branding and the use of trade marks.
Corporate identity comes into being when there is a common ownership of an organizational
philosophy, which is manifest in a distinct corporate personality. At its most profound, the public
feel that they, have ownership of the philosophy, (Bellmen 1995)
In general, this amounts to a logo (logotype and fen logogram) supporting, devices commonly
assembled within a set of guidelines. These guidelines given hew the identity is applied and
confirm approved colour palettes, type faces page layouts and other such methods of maintaining
visual continuity and brand recognition across all physical manifestations to the brand.
It includes some of the few which are under listed below.
1. Information and communication:- Communication systems products.
2. R& D Group :- Development Center Information systems product Development center.
3. Electronic Components :- Advanced technology development.
4. Devices Development Group :- Laboratories.
5. Display technology Development Group:- Display technology Laboratories. Device
technology Laboratories. System technology Laboratories. Module Engineering
Laboratories.
6. Division Laboratories:- Appliance systems product Development center Platform
technology center, document products development Laboratories.
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So the Consumer’s electronic industry has installation has achieved a rapid growth and
development in India because of installation of high power transmitters in different parts of the
country.Many companies such as MC Donald’s and Electronic Arts have their own identity that
runs through all of their products and merchandise. The trade mark “M” logo and the Yellow and
red appears consistently throughout the MC Donald’s packaging and advertisements. Many
companies pay large amounts of money for an identity that is extremely distinguishable, so it can
appeal more to its targeted audience.
Discover a huge range of videos, music and apps Enjoy Internet TV at its easiest and most
intuitive. Touch the 'SEN' button on your BRAVIA remote and explore a world of online content
and apps, brought to you by Sony. Browse quick links to the latest movies, TV and music
releases plus loads of classic content. Access your favourite web video services, social
networking and other apps at a touch. Let Sony Entertainment Network be your personal
concierge - guiding you quickly and easily to the very best content that's out there.
Experience stunning picture quality, whatever you're watching thanks to Sony’s X-Reality™
PRO image processing engine. Flick instantly through a world of entertainment with the brilliant
new One-Flick function. Explore TV shows, movies, Internet videos, photos and apps with the
intuitive new user interface.Seamless connectivity options allow you to share content from your
mobile devices easily on BRAVIA W700B's big screen.
Features
Photo Share*
Send a photo, share a photo, grab a photo
Share photos through BRAVIA, and let your friends save their favorites. Wireless transfers are
quick and stable over your network. Photos can be shared at its original size, including 4K¹, with
your Android™² or iOS™ smartphones³. There's no internet connection and no apps needed.
X-Reality PRO
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With Sony's most advanced image processing engine to date, you can now enjoy remarkably
clean, vivid and lifelike images whether you're watching dazzling 1080p Blu-ray Disc™ movies
or lowresolution web video. Sony's phenomenal X-Reality™ PRO Engine analyses each scene
pixel-by-pixel and uses sophisticated pattern matching to optimise the picture, ensuring you
always get the best images possible.
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Motion Flow XR200
Action appears precise and smooth as the camera pans to follow a kickoff or a long put. Powered
by Sony BRAVIA TV's most advanced technology, fast-action scenes remain fluid as images are
inserted between frames. Even the quickest camera movements look natural with less judder and
reduced blur.
Full HD 1080
See everything in Full High Definition without compromise Enjoy HD content the way they
were meant to be seen. From HD broadcasts, HD satellite TV, HD cable, Blu-ray Disc™ movies,
and HD home videos, you'll catch each and every pixel in stunning clarity.
o X-Reality™ PRO Picture Engine for the best ever picture quality
MRP Rs 67,900 /-*
(MRP inclusive of all taxes. Quoted MRP is for 1 unit of the product.
W670A/W650A/W600A Series
Experience stunning picture quality, whatever you're watching thanks to Sony’s X-Reality™
PRO image processing engine. The BRAVIA W670A, W650A and W600A Series allow you to
mirror content* from your mobile devices onto the Full HD screen. They also come with a TV
stand that can also function as a wall-mount* bracket
Features
Other Unique Features Every Sony BRAVIA TV is equipped with easy-to-use, personalised and
intuitive functions, including Quick Start & Viewing, Photo Frame Mode and S- Force Front
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Surround 3D. These additional features and technologies promise entertainment that only a Sony
BRAVIA can deliver.
Design
Illumination LED
BRAVIA is a symbol of convergence - lots of devices can be connected and various features are
integrated, Illumination of intelligent core is associated with the convergence of them to
BRAVIA. Colorful glow spreads radially around the intelligent core to represent TV status and
other functions. Colour-coded bursts give reassuring on-screen confirmation of different actions -
like setting the timer or making connection with other devices. It's a more stylish, elegant and
distinctive way to get clear visual feedback from your TV.
MRP Rs 44,900 /-*
(MRP inclusive of all taxes. Quoted MRP is for 1 unit of the product.)
The LCD is currently the display of choice in small devices and is also popular in large-screen
TVs. Regular LEDs often form the digits on digital clocks and other electronic devices. SONY
TV s offer many advantages over both LCDs and LEDs:
The plastic, organic layers of an SONY TV are thinner, lighter and more flexible than
the crystalline layers in an LED or LCD.
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Because the light-emitting layers of an SONY TV are lighter, the substrate of an SONY
TV can be flexibleinstead of rigid. SONY TV substrates can be plastic rather than the glass
used for LEDs and LCDs.
SONY TV s do not require backlighting like LCDs (see How LCDs Work). LCDs work
by selectively blocking areas of the backlight to make the images that you see, while SONY TV
s generate light themselves. Because SONY TV s do not require backlighting, they consume
much less power than LCDs (most of the LCD power goes to the backlighting). This is
especially important for battery-operated devices such as cell phones.
SONY TV s are easier to produce and can be made to larger sizes. Because SONY TV s
are essentially plastics, they can be made into large, thin sheets. It is much more difficult to grow
and lay down so many liquid crystals.
SONY TV s have large fields of view, about 170 degrees. Because LCDs work by
blocking light, they have an inherent viewing obstacle from certain angles. SONY TV s produce
their own light, so they have a much wider viewing range.
SONY TV seems to be the perfect technology for all types of displays, but it also has some
problems:
Lifetime - While red and green SONY TV films have longer lifetimes (46,000 to
230,000 hours), blue organics currently have much shorter lifetimes (up to around 14,000
hours[source: SONY TV -Info.com]).
SAMSUNG GLOBAL
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The DNA of Digital Innovation
Samsung understands the local cultural sensibilities to customize its products according
to the Indian market. It has set up a “usability lab” at the Indian Institute of Technology
in New Delhi to customize Samsung products to meet the specific needs of Indian
consumers. This industry-institute partnership is helping Samsung to study and analyze
consumer response in aspects of product design, including aesthetics, ergonomics and
interface.
Through its research done on consumer preferences in India, Samsung has concluded that
Indian consumers want more sound oriented products. Thus, the Samsung televisions for
India have a higher sound capacity than their foreign counterparts.
For the semi-automatic segment of Samsung washing machines, Samsung has introduced
for the first time in India a feature called Super Dry. It is present in three of Samsung’s
semi automatic models and dries the clothes better than the rest.
Samsung washing machines have an additional menu that takes care of the local Indian
wardrobes. They also have a ‘memory re-start’ that takes care of the frequent power
failures in India.
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Consumer Behaviour
Consumer behavior is the study of individuals, groups, or organizations and the processes they
use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs
and the impacts that these processes have on the consumer and society.
Consumer Behavior is a branch which deals with the various stages a consumer goes through
before purchasing products or services for his end use.
Customer behavior study is based on consumer buying behavior, with the customer playing the
three distinct roles of user, payer and buyer. Research has shown that consumer behavior is
difficult to predict, even for experts in the field. Marketing is an influential asset for customer
behavior analysis as it has a keen interest in the re-discovery of the true meaning of marketing
through the re-affirmation of the importance of the customer or buyer. A greater importance is
also placed on consumer retention, customer relationship management, personalization,
customization and one-to-one marketing. Social functions can be categorized into social
choice and welfare functions.
Internet is changing the way consumers shop and buy goods and services, and has rapidly
evolved into a global phenomenon. Many companies have started using the Internet with the
aim of cutting marketing costs, thereby reducing the price of their products and services in
order to stay ahead in highly competitive markets. Companies also use the Internet to
convey communicates and disseminate information, to sell the product, to take feedback and
also to conduct satisfaction surveys with customers. Customers use the Internet not only to
buy the product online, but also to compare prices, product features and after sale service
facilities the will receive if they purchase the product from a particular store. Many experts
are optimistic about the prospect of online business.
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In addition to the tremendous potential of the E-commerce market, the Internet provides a
unique opportunity for companies to more efficiently reach existing and potential customers.
Although most of the revenue of online transactions comes from business-to- business
commerce, the practitioners of business-to-consumer commerce should not lose
confidence .It has been more than a decade since business-to-consumer E-commerce first
evolved. Scholars and practitioners of electronic commerce constantly strive to gain an
improved insight into consumer behavior in cyberspace. Along with the development of E-
retailing, researchers continue to explain E-consumers „behavior from different
perspectives. Many of their studies have posited new emergent factors or assumptions which
are based on the traditional models of consumer behavior, and then examine their validity in
the Internet context.
The Internet has developed an into a new distribution channel and online transaction are
rapidly increasing. This has created a need to under how the consumers perceive online
purchasing.
Price, Trust and Convenience were identified as important factors. Price was considered as
to be a most important factor for a majority of the students. The internet has created a
paradigm shift of the traditional way people shop. A consumer is no longer bound to
opening a times or specific location. So he can become active at virtually any time any place
and purchase the products or services.
The internet is relatively a new medium for communication and the information exchange
that has present in everyday life. The number of internet user is constantly increasing which
is also signifies that online purchasing is increasing. The rapid increasing is explained by
the consumer behavior. The internet is considered a mass medium that provides the
consumers with purchase characteristics as no other medium. Certain characteristics are
making it more convenient for the consumer compared to the traditional way of shopping,
such as the ability to any time view and purchase products visualize the needs with products
and discuss products with other consumers. Online shopping is the process of consumer go
through the when they decide the shop on the internet.
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The internet has developed into a new distribution channel and the evaluation of this
channel. E-commerce has now identified. Using the internet to shop online has become one
of the primary reasons to use the internet combined with searching for products and finding
the information about them. Therefore internet develop the h Companies also use the
Internet to convey, communicate and disseminate information, to sell the product, to take
feedback and also to conduct satisfaction surveys with customers. Customers use the
Internet not only to buy the product online, but also to compare prices, product features and
after sale service facilities they will receive if they purchase the product from a particular
store. Many experts are optimistic about the prospect of online business.
Due to the rapid development of the technologies surrounding the Internet, a company that
is interested in selling products from its web site will constantly has to search for an edge in
the fierce competition. Since there are so many potential consumers, it is of the out most
importance to be able to understand what the consumer wants and needs.
“Awareness, Future Demand Focus for Emerging Markets & Current Issues” Malls
springing up everywhere and yet people are E-shopping! And not in small numbers either.
Consumers are more rational nowadays and have ability to get the choices from the market.
Awareness among the consumers is spread through internet. The number of internet users is
increasing day by day which attracts people who have an option to buy online. It was never
thought that Indians would go in for e-shopping in such a big way. Ticketing, travel
bookings and even books and movies seem fine to buy online. Knowing that in India sizes
vary from brand to brand and quality is inconsistent, even of some electronic items, how is it
that there are people buying these items online? In India there are some segments of people
who have not yet tried purchasing over internet.
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CONSUMER BUYING DECISION PROCESS
EVOLUTION OF MARKET
Marketing has changed over the centuries, decades and years. The production centered system
systematically changed into relationship era of today and over the period; the specializations
have emerged such as sales versus marketing and advertising versus retailing. The overall
evolution of marketing has given rise to the concept of business development. Marketing has
taken the modern shape after going through various stages since last the end of 19th century. The
Production oriented practice of marketing prior to the twentieth century was conservative and
hidebound by rules-of-thumb and lack of information. Science & technology developments and
specially the development of information technology have now changed the way people live, the
way people do business and the way people sell and purchase.
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Various stages of evolution of marketing:
1. Production Orientation Era: The prevailing attitude and approach of the production
orientation era was -“consumers favor products that are available and highly affordable”.
The mantra for marketing success was to “Improve production and distribution”. The rule
was “availability and affordability is what the customer wants”. The era was marked by
narrow product -lines; pricing system based on the costs of production and distribution,
limited research, primary aim of the packaging was to protect the product, minimum
promotion. Advertising meant, “Promoting products with a lesser quality”.
2. Product Orientation Era: The attitude changed slowly and approach shifted from
production to product and from the quantity to quality. The prevailing attitude of this
period was that consumers favor products that offer the most quality, performance and
innovative features and the mantra for marketers was ‘A good product will sell itself’, so
does not need promotion.
3. Sales Orientation Era: The increased competition and variety of choices / options
available to customers changed the marketing approach and now the attitude was
“Consumers will buy products only if the company promotes/ sells these products”. This
era indicates rise of advertising and the mantra for marketers was “Creative advertising
and selling will overcome consumers’ resistance and convince them to buy”.
4. Marketing Orientation Era: The shift from production to product and from product to
customers later manifested in the Marketing Era which focused on the “needs and wants
of the customers” and the mantra of marketers was” ‘The consumer is king! Find a need
and fill it’.
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CHAPTER II
REVIEW OF LITERATURE
Shahram Jenabi, Seyed Yahya Seyed Danesh and Minoo Yousefi (2013) made a
study titled, “Examining the effect of Brand dimension (trademark) on home
appliances consumers’ behavior Case study: LG brand in Rasht city”, tells that one
of the most important and valuable assets of a company is its trademark. The more
valuable is a trademark for consumers more profit the company achieves. The
present paper aims to identify the effect of brand dimension on home appliances
consumers’ behavior. To achieve this goal the relationship between reputation,
identity, image, meaning, age and brand advertisement with consumer behavior was
tested based on the conceptual research model. Required data were collected using
questionnaire, randomly, from the population of LG brand consumers from agents
of this company in Rasht city. Since the population is wide and infinite, simple
random sampling and sample size formula were used to estimate the sample size (it
was calculated to be 202 individuals). Pearson correlation test, using SPSS
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software, and multiple regression analysis were used to analyze collected data.
Results showed that aspects of brand’s dimensions have a positive effect on
consumers’ behavior and there is significant relationship between these two
components. Thus, it is suggested to LG brand to use its competitive advantage,
particularly its reputation, identity and brand management, and other aspects of
brand (mentioned in this research) to lead its consumers’ behavior to a positive
direction.
Senthil Kumar, M.J and Sadeesh Kumar, K and Nagarajan, N.R (2013) in their
study entitled, “A Study on Consumer’s Attitudes towards Washing Machine”,
which explains that in the modern technological world many innovations and new
apparatus are invented by the man for reducing the work burden of the layman.
Especially a lot of home appliances are introduced to save the valuable time of the
working women. Because in the hurry bury world both husband and wife are
working. So the modern women are not having sufficient time to do domestic work
like washing their dresses. In this situation washing machine becomes an integral
part of their home. The washing machine is not only to reduce their physical work
but also it gives quality washing. In a competitive world many well reputed
companies manufacture various brands of washing machine with varying features
to cater to the diverse needs of consumer. The consumers are not in a position to
identify the good brand of a washing machine because of its technical features.
Consumer’s opinion about the washing machine is paramount importance, so a
study of this kind helps the customer to know the features available with the various
brands.
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determinants of consumer purchase behaviour towards durable products in
Ramanathapuram district. This study concluded that, the consumer behavior have a
great impact on the household appliances of the clusters. In a consumption
environment, a person chooses a product or a brand, which seems to possess a
maximum possibility of the definition or elaboration of his life style identity.
Alternatively, a person makes a choice in a consumption environment in order to
define or actualize his life style, identify it through the products or brands chosen. It
can be assumed that the individual’s consumption behavior can be predicted from
an understanding of how he represents his world to himself, if the details of his life
style system are known. The household appliances like Electrical cooker, Electrical
induction stove, Micro oven, Multipurpose mixer, Refrigerator, Wet grinder were
once considered as life purchase but now people become more open to the idea of
exchanging their old appliances for new ones. The relationship between consumer
behavior and household appliances can thus be seen as an individual’s purchases
and use of products and services where these choices constitute part of his life style
expression and its reflection.
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behavior in electronic home appliances markets in India have been taken as the
empirical study of this research. The key findings of this study designates that,
overall, the set of self determining variables are weakly associated with the self
determining variable. The profound analysis institutes those social and physical
factors along with marketing mix elements are sturdily associated with consumer
buying behavior. The consumer decision making rules discovery is made possible
through these analyses. The results shall support the manufacturers and electronic
home appliances retailers in comprehending consumer behavior and enhancing the
satisfaction of the consumers.
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brand loyal consumers and also brand switchers of consumer home appliances only
because of promotional offers. The methodology adopted for the study was
descriptive research design. Sample size was 200. Statistical tools such as
percentage analysis, chi-square, ANOVA and Garrett’s Ranking were used for
analysis. The results indicate that whatever attractive promotional schemes may be,
“BRAND NAME” plays a dominant role in purchasing the home appliances.
Maximum of the respondents have interest in some of the promotional schemes
such as price discount, exchange scheme, warranty, etc It is concluded that
whatever attractive promotional schemes may be, “BRAND NAME” plays a
dominant role in purchasing the home appliances. Maximum of the respondents
have interest in some of the promotional schemes such as price discount, exchange
scheme, warranty, etc. and also consumers prefer price discount as first, when
compared to non- price schemes. Most of the consumers in Erode city, Tamilnadu,
India have replaced their home appliances at Exchange offer period and also they
are satisfied with the home appliances, purchased at the time of offer period.
Qianyu Dong and Tohru Futawatari (2013) made a study entitled, “The Study of
Low-Carbon Policy Influence on Consumers’ Energy Efficiency Household
Appliance Purchase Behavior”, explains that sequences of low carbon policies are
aimed at reducing greenhouse gases and increasing energy efficiency also in the
household sector in China. However, not all the policies are useful to guide
consumers’ purchase behavior. Consumer’s environmental friendly purchase
behavior is affected not only by personal influence but also by external
environmental forces. While information provision policies may be effective in
encouraging certain consumers to understand the energy efficiency household
appliance, but not promote purchases; fiscal incentive may be more attractive
during pre-purchase period (information collection); regulation instrument regards
as the most effectively instrument to influence consumers’ energy efficiency
household appliance purchase behavior, but useless to advance citizen’s
environmental awareness. Analysis of a survey dataset of Chinese households
observes considerable heterogeneity in terms of influence of three policy
instruments, in line with our conjectures.
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Paramanand Dasar, Hundekar, S.G. and Mallikarjun Maradi (2013) made a
study entitled, “Consumer Behaviour on Consumer Durables With Reference To
Bijapur District”, which explains that consumer is the nerve centre of the modern
marketing, understanding his behaviour is quite essential for efficient and effective
marketing management. Customers may state their needs and wants, but act
otherwise. They may not be in touch with their deeper motivations. Indian
consumer market is riding the crest of the country’s economic boom. Driven by a
young population with access to disposable incomes and easy finance options, the
consumer market has been throwing up staggering figures. Marketing problem
enhanced from the consumers’ behaviour has a greater degree of similarity in
behavioural problems relating to the consumer durables. Hence, the present study
has been chosen to identify and ascertain the impact of consumer behaviour
problems on the marketing of consumer durables in the fast growing Bijapur
District (Karnataka State). The consumer behaviour in relating to consumer
durables is strongly affected by some economical, social, cultural and psychological
factors; the research had been selected for an intensive empirical survey of the
various factors influencing the buyer’s behaviour on consumer durables in Bijapur
District (Karnataka State).
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Azamat Maksudunov(2012) made a study entitled, “Family Influence on
Consumer Home Appliаnces Purchasing Behavior: An Empirical Study In
Kyrgyzstan”, which explains that the economic, social and political changes in
Kyrgyzstan, after independence in 1991, have created new business opportunities
and forces not only for local entrepreneurs, but also for international marketers of
goods and services. Economical, political and social changes influenced the values
and life styles of consumers in the Kyrgyz Republic. Rising competition,
consumer’s purchasing power, and new technological opportunities make
enterprises become more market and consumer oriented in Kyrgyzstan. In this
context the main purpose of the study is to investigate the family influence on
consumer home appliances purchasing behavior in the Kyrgyz society. It is of
importance for both local and foreign marketers to understand the family
purchasing behavior in the Kyrgyz society after the social and economical
transformation from 1991 onwards. The study consists of two parts. The first part
includes general information of Kyrgyzstan, consumer purchasing process and the
main factors effecting consumer home appliances purchasing behavior. The second
part of the study represents an empirical study. A structured survey was carried out
in Bishkek, the capital of Kyrgyzstan. The sample size was determined after
classification according to age and gender. Participants were interviewed to identify
the influence of family members on their purchasing decisions and behaviors. It
was recognized that the results of this research will be useful not only for national
firms but also for international companies.
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into positioning development, keeping it up-to-date and consistent across all
brand’s activities.
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Petrovic Dejan 2016 in his study on Analysis of consumer behaviour online explained that
the most relevant behavioral characteristics of online consumers and examine the ways they
find, compare and evaluate product information. Comparison of the newly collected survey
data with the existing consumer behaviour theory resulted in detection of a number of issues
related to a specific consumer group. The purpose of this report is to translate these findings
into a set of implementation activities on strategic and technological level. Execution of
these recommendations will result in better conversion of visitors into customers and
encourage customer loyalty and referrals. The focus group of this study will be young adults
aged between eighteen and thirty-four interested in buying a mobile phone or a related
product
Shun & Yunjie 2016 in their study showed that there are product types, which are more
likely to be sold online such as software, books, electronics and music. Reason for this is
that when purchasing these types of products, one does not require personal inspection and
most, if not all features, can be outlined in the product description and images. Most
products in the mobile phone family belong to this category. According to the recent
research on consumer behaviour on the Internet users Cotte, Chowdhury, Ratenshwar &
Ricci, 2016, there are four distinct consumer groups with different intentions and
motivations:
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provides a framework for future testing. Finally, the paper addresses a problem of relevance to
both academics and practitioners, and proposes future research and managerial implications
However, the new findings reveal that convenience and personal control are the key drivers
for consumers to search online. Dr. Susan Rose, from Henley Management College, said:
“What motivates online shoppers is the ability to shop, where, when and how they like.
Now a days people can shop over their Shreddies in the morning. The research, that
analyses data from 304 electrical goods Internet shoppers, provides businesses with a guide
to getting the information highway buzzing with potential customers. Big-ticket items such
as digital TVs, cameras, or iPods now feature on our e- shopping list. The Internet provides
a rich source of information about brands and retail channels that enable us to search and
find information to help us with our final purchase decision. For businesses there are some
steps to help them embrace the Internet revolution with success. A key factor driving
Internet use for „online window shopping‟ is its usefulness in our personal lives. The
Internet frees time and makes the information search process, Research suggests that people
search online for some goods, yet buy from a traditional high street retailer, or look around
for goods in shops, then take their search online. In turn, it is essential for retailers who
operate both on and off line to ensure that they embrace a joined up process that appears
seamless to the customer. Some retailers have still to successfully unite the two retailing
methods - this is key to contemporary customer service. Factors such as how much the
medium challenges us mentally and our confidence to navigate and understand the
technology can turn us on or off the idea of browsing online for products. A clear divide is
appearing between the occasional online shopper and the regular experienced user.
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There is a huge difference between a physical store and its electronic counterpart. A help button
on the home page of the web-shopping site replaces the sales clerks‟ friendly advice and service.
The familiar layout of the physical store becomes a maze of pull down menus, product indices
and search features. Now more than ever, the promise of electronic commerce and online
shopping will depend to a great extent upon the interface and how people interact with the
computer. At the same time, there are some inherent difficulties in maintaining an online
inventory. In a regular store, the managers can pull out a product from the shelf if they feel that it
is not fast moving or has no demand. This is a privilege that cannot be extended to the online
retail store.
Anders Hasslinger; Selma Hodzic; Claudio Opazo (2018-02-01) in their study they showed that
developed into a new distribution channel and online transactions are rapidly increasing. This has
created a need to understand how the consumer perceives online purchases. The purpose of this
dissertation was to examine if there are any particular factors that influence the online consumer.
Primary data was collected through a survey that was conducted on students at the University of
Kristianstad. Price, Trust and Convenience were identified as important factors. Price was
considered to be the most important factor for a majority of the students. Furthermore, three
segments were identified, High Spenders, Price Easers and Bargain Seekers. Through these
segments we found a variation of the different factors importance and established implications
for online book stores
Harris Interactive 2018 in their study of online customer experience. The survey found that
online customer experience reached an inflection point in 2018. The percent of consumers who
have experienced problems when conducting transactions online showed its first substantial
decrease in five years -- from approximately 87% in all previous Tealeaf surveys to 80% in
2018. While the percent of consumers experiencing online transaction problems, at 80%, remains
high (the potential online shopping dollars impacted by transaction problems rings up at $47.6
billion, this improvement points to a growing business focus on delivering better customer
experiences. The survey sheds light on forces driving this accelerated online customer
experience focus, including the down economy and increased consumer power due to
experience-sharing via social media. It also examines consumer behavior when transacting
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online, call center behavior related to online issues and mobile commerce. Verticals represented
in the findings include retail, insurance, travel and financial services
Bikramjit Rishi 2017 in their study on Online shopping is an innovative option of distribution
available in the hands of marketers. It is innovative and creative because marketers can
experiment with it in form, content, visibility and availability. In India online shopping is
considered as a relevant alternative channel for retailing and it is now an important part of
the retail experience. This research study is an empirical study to find out the motivators and
decisional influencers of online shopping. The sample has been selected from the youth
population as this group of people actually use internet to buy online. The study highlights
that reliability; accessibility and convenience are the major motivator factors which
motivate the Indian consumer to buy online. Similarly, reluctance and preference are the two
decisional factors which influence the decision.
Kamali and Loker 2015, in their study Internet retail sales represent a new and increasingly
vital commercial milieu. E-commerce or electronic commerce saw sales revenues grow 12.1
percent in 2012 to $31.4 billion a figure expected to reach $81.1 billion by 2016, Kamali &
Loker, 2012. While it is clear that many more consumers are electing to shop online than in
the past a shift in behavior that may be due to the sense that online shopping is safer and
more secure than it was initially and to the adoption of alternative shopping avenues. This
essay will examine these issues, arguing that browsers become buyers in cyberspace as
perception of safety, product quality, and retailer reliability increase an idea also advanced
by Li, Luo, Lepkowaska-White and Russell .
Atanasov 2011 in their study it is anticipated that the worldwide market for business- to-
business and business-to-consumer e-commerce will total $3.1 trillion in 2004 as compared
to $350.4 billion in fiscal 2010-2011. Among the most profitable products and services sold
online are consumer goods such as books, videos, music, computers and other tech
products, and travel Schmerken, 2011. Other profitable sectors include investment
transactions, which Schmerken 2011 considers to have generated a wave of corporate
spending on e-commerce. The Internet and its myriad e-commerce or marketing sites,
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represents what researchers believe to be the security concerns of online shoppers and
potential shoppers. These researchers and others reported that online buyers are also
concerned about security issues when making online purchases. Though many consumer
concerns regarding the inherent safety of financial transactions online have been resolved
through the development of sophisticated encryption programs, many consumers require
additional assurance that their financial data will be held in confidence. Other security issues that
were identified by Mauldin and Arunachalam (2002) focus on retailer disclosures, information
risk, product risk, and familiarity with the retailer and the product. Generally, Mauldin and
Arunachalam found that intent to purchase rather than merely browsing online increases in direct
association with a sense of security and comfort. Retailers who offer their products online are
therefore advised to emphasize product disclosure and retailer disclosure and reduced
information risk in their e-commerce sites. Though most online retailers do provide clear
descriptions of security procedures, some Internet shoppers still avoid using credit cards online.
Overcoming resistance to this fear is one of the key tasks that must be under taken.
Ruiliang Yan, John Wang (2009) in their research it provides a useful framework to help
business marketers identify the effect of consumer online purchase costs on firm performances in
online and traditional channel competition. A game theory model is developed to determine the
optimal strategies for online and traditional retailers. We demonstrate that consumer online
purchase costs always have a valuable impact on firm profits, and further show that consumer
online purchase costs always have a much more valuable impact on firm profits whenever the
traditional retail transaction costs and the product web-fit change. We also find that consumer
online purchase costs have a greater impact on the retailer's profits in a Stackel berg competitive
system than in a Bertrand competitive system. Based on our results, managerial implications are
discussed and probable paths of future research are identified.
A.M. Sakkthivel, in their research paper aims to identify the impact of demographics on
consumer buying behaviour towards online purchase of different products based on the
involvement and investment (High, Medium and Low). It attempts to unearth the impact of the
demographics on online purchase which is at present relatively limited. It would help the
marketers to identify the demographic profile of consumers which is otherwise not known due to
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the intangible nature of internet. The findings would help the marketers to design their offerings
based on the demographic profile of online consumers and would help the online marketers to
identify and segment the online consumers which will enhance their focus and eventually leads
to financial growth.
Tomomi Hanai, Takashi Oguchi in their study to investigate what kind of information
contributes to trust formation in online shopping. Twenty-seven female undergraduate students
were recruited and asked to evaluate the trustworthiness of 20 online shopping websites. All the
online shopping websites dealt with branded products where there is greater emphasis on the
trustworthiness of online shops or products. The results show that information described on the
websites was classified into two categories, firstly, information about the shop and its procedures
and services. Secondly, the concrete information necessary for the consumption process, such as
payment information and return information, which heightens the reliability of these shops. The
term “brand” originally refers to a “description or trademark which indicates a type of product
made by a particular company.” However, in modern Japanese society it refers to those branded
products that are perceived to have a higher quality than other similar products. Thus, the term
“brand” authenticates that its products belong to a high-class,
Music Videos, Lyrics - Daily updated collection of music videos and lyrics. Majority of
young adults interviewed for purpose of this research tend to be active information seekers.
A high level of technological confidence within this group tends to be an encouraging factor
when it comes to product information research online. The following analysis presents both,
focus group results and behavioral theory in a parallel fashion divided into two main
research topics:
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Rajeev Kamineni in their study The World Wide Web can change human behaviour and human
interactions to a very large extent. Web based shopping behaviour is one major example to point
out the trends in this direction. This study is of a very exploratory nature and it intends to
establish the differences between several web- based shoppers from different parts of the world.
Several critical factors associated with online shopping behaviour will be explored. A cross
cultural data set will be collected and an illustrative description of the shoppers will be provided.
As a final step the cross cultural differences between several shoppers will be explored. One
question which will run as a theme throughout the course of this paper is, “Will the traditional
consumer behaviour theory and research be altered by the advent of web based shopping?”
There is a huge difference between a physical store and its electronic counterpart. A help button
on the home page of the web-shopping site replaces the sales clerks‟ friendly advice and service.
The familiar layout of the physical store becomes a maze of pull down menus, product indices
and search features. Now more than ever, the promise of electronic commerce and online
shopping will depend to a great extent upon the interface and how people interact with the
computer. At the same time, there are some inherent difficulties in maintaining an online
inventory. In a regular store, the managers can pull out a product from the shelf if they feel that it
is not fast moving or has no demand. This is a privilege that cannot be extended to the online
retail store.
Anita Desai in her study E-tailing is the practice of selling retail goods on the internet. It is the
abbreviated version of “electronic retailing” which essentially constitutes business to consumer
transaction. While the concept of online retailing or e- tailing is no longer in its nascent stage; it
continues to evolve, as advanced e-commerce applications act as a potent catalyst in the
development of e-tailing.
The idea of online retailing or e-tailing which almost every net-savvy individual is familiar with;
offers a convenient mode of shopping online and the consumer gets to choose from a diverse
range of products and services as opposed to the analogous physical shopping experience.
Furthermore, online retailers or e-tailers get to expose and sell their products to a global audience
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through their e-stores. (Also termed as online stores, internet shops, web shops etc.)
The E-commerce industry plays a vital role in its growth and development. The consumer or
buyer is usually provided with detailed information and description of the product which helps
them make a judicious choice before making an online purchase. For consumers who face a
paucity of time or want a diverse range of products to choose from, e-tailing proves to be an
ideal option. Every e-tailer wants his/her share of domain amidst the vast World Wide Web
galaxy. Due to the intense competitor quotient involved, every e-tailer out there wants to offer
their customer/buyer a smooth and pleasant shopping experience. Therefore, e-tailing is just not
restricted to putting up products for sale for consumers to buy. As consumers today are well-
informed, it is understood that they would make a well informed decision as well. This involves
a fair amount of product research, price comparison and checking the credibility of the e-store
Several researchers have carried out studiesin their effort to examine consumers’ online buying
behavior. For example, Bellman et al (1999) investigated various predictors for whether an
individual will purchase online. These authors concluded that demographic variables, such as
income, education and age, have a modest impact on the decision of whether to buy online,
whereas the most important determinant of online shoppingwas previous behavior, such as
earlier online purchases. This is consistent withForrester Research which proved that
demographic factors do not have such a high influence on technology as the consumers’ attitudes
do (Modahl, 2000). Steinfield and Whitten (1999) suggested that the combination of the Internet,
plus physical presence, provides more opportunities to capture business than the online-only
presence, because they can provide better pre-purchase and post-sales services to lower
consumer transaction cost and build trust in online stores.However, it is worth mentioning that
beliefs and attitudes that are found in the stage prior to the adoption of e-commerce are different
to those in the “post-adoption” stage (Gefen et al, 2003; Venkatesh and Brown, 2001; Yu etal,
2005).
Concerning the factors that influence or hinder online shopping, Ernst and Young (2000)
reported that Internet userspurchased online because of good product selection, competitive
prices, and ease of use, but were concerned about shipping costs,lack of opportunity to prior
examining the products, as well as, the confidentiality of credit card and personal information.
Know and Lee (2003) explored consumers’ concerns about payment security and its relationship
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to online shopping attitude and actual purchases. They observed a negative relationship between
attitude towards online shopping and concerns about online payment security. Consumers with a
positive attitude seem to be less concerned about payment security. Similarly, popular literature
cited ease of shopping comparison, low prices, timely delivery, convenience, time saving, low
shipping costs, improved customer service, tax exempt status and speedy e-mailresponse, as key
reasons for the increase in online shopping (Lorek, 2003; Magee, 2003; Maloy, 2003; Retail
Merchandiser, 2003).
HOT BARGAINS: TIPS TO FIGURE OUT TRAPS FROM THE REAL VALUE DEALS
Bargain, hot deal, steal... every day consumers are bombarded with hundreds of seemingly
promising offers. However, not every value buy saves money; some can be costly mistakes.
Here's how to figure out the trap from the real deal.
It's a great way to save on interest, particularly if you aren't keen on paying the high rate for
revolving credit with your existing card. However, be warned that such a teaser deal is typically
temporary. If you don't pay the outstanding amount within the offer period, you will be penalised
with a higher interest rate, possibly more than the one on your old credit card.
The trouble with most value-added offers is that they come with caveats. It could be for a limited
period, or you may land discount vouchers/coupons that don't appeal to you. What's not to like
about saving hard cash? The only drawback is that you are unlikely to find such bargains at
shopping malls. Hit standalone, smaller shops instead.
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It really should not come as a surprise that you are being ripped off. Online shopping promises
discounts, but if just one player offers rebates far more than its competitors, it should be a red
flag. For instance, the MRP on the HP Pavilion G6-2232TX laptop is nearly Rs 41,000, while
Flipkart is offering it at Rs 38,342 and Laptopwale at Rs 38,100. So how can an unknown player
offer it at just Rs 8,200? Other warning signs are an absence of credible contact information for
the company. If the website is legitimate, chances are you are being peddled a counterfeit item.
To begin with, registration is free, so even if you never get lucky, all you are wasting is time.
The likes of Jetsetter.com and Sniqueaway.com hold short-term flash sales on unsold inventory
at luxury hotels and cruises, where you could land discounts of 40-70%.
Given the high making charges and issues with determining purity, make sure that you buy
jewellery solely for the love of bling. If investment is the agenda, you would be better off buying
gold bars/coins or gold funds. The jeweller who promises you the moon will be quick to list out
caveats while buying it back.
It may be the handiest option for travellers, but the airport is also the most expensive place to
rent a car, especially at foreign destinations. Typically, you will shell out 12-15% more than the
rental charges at any off-site location, including at or near your hotel. Try to wrangle a
complimentary airport pick-up service from the hotel you've booked, and then check with the
concierge for rental rates, or book a car online.
These items, including designer watches and sunglasses, can be had much cheaper online. For
instance, perfumes costing $53-55 (around Rs 3,000) at duty-free shops can be bought for around
$50 (Rs 2,750) on Amazon.com, including shipping charges. Often, mall/high street sales too
offer a better deal. However, duty-free shopping continues to be attractive when it comes to
alcohol and cigarettes.
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ANALYSIS OF CONSUMER BEHAVIOUR ONLINE
Author: DejanPetrovic
Published: 2007
The report outlines about the most relevant behavioral characteristics of online consumers
andexamine the ways they find, compare and evaluate product information. Comparison of the
newly collected survey data with the existing consumer behavior theory resulted in detection of a
number of issues related to a specific consumer group. The purpose of this report is to translate
these findings into a set of implementation activities on strategic and technological level.
Execution of these recommendations will result in better conversion of visitors into customers
and encourage customer loyalty and referrals.
The focus group of this study will be young adults aged between eighteen and thirty-four
interested in buying a mobile phone or a related product.
Research by Shun &Yunjie (2006) showed that there are product types, which are more likely to
be sold online such as software, books, electronics and music. Reason for this is that when
purchasing these types of products, one does not require personal inspection and most, if not all
features, can be outlined in the product description and images. Most products in the mobile
phone family belong to this category.
According to the recent research on consumer behaviour on the Internet users (Cotte,
Chowdhury, Ratenshwar& Ricci, 2006), there are four distinct consumer groups with different
intentions and motivations:
• Exploration
• Entertainment
• Shopping
• Information
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Majority of young adults interviewed for purpose of this research tend to be active information
seekers. A high level of technological confidence within this group tends to be an encouraging
factor when it comes to product information research online.
The following analysis presents both, focus group results and behavioural theory in a parallel
fashion divided into two main research topics:
These two areas are mutually dependent and particularly important in a market where consumers
have the power to choose the right product from a number of competing suppliers. Well-
structured product information that cannot be found easily online is as much of a problem as is
having easily accessible information that does not meet the consumer’s expectations.
PetrovicDejan (2006)in his study on Analysis of consumer behaviour online explainedthat the
most relevant behavioural characteristics of online consumers and examine theways they find,
compare and evaluate product information. Comparison of the newlycollected survey data with
the existing consumer behaviour theory resulted in detection of a number of issues related to a
specific consumer group. The purpose of this report is totranslate these findings into a set of
implementation activities on strategic andtechnological level. Execution of these
recommendations will result in better conversionof visitors into customers and encourage
customer loyalty and referrals.The focus groupof this study will be young adults aged between
eighteen and thirty-four interested inbuying a mobile phone or a related product.
Shun &Yunjie (2006) in their studyshowed that there are product types, which are more likely
to be sold online such as software, books, electronics and music. Reason for this is that when
purchasing these types of products, one does not require personal inspection and most, if not all
features, can be outlined in the product description and images. Most products in the mobile
phone family belong to this category. According to the recent research on consumer behaviour
on the Internet users (Cotte, Chowdhury, Ratenshwar& Ricci, 2006), there are four distinct
consumer groups with different intentions and motivations:
Exploration
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Entertainment
Shopping
Information
- Daily updated collection of music videos and lyrics. Majority of young adults interviewed for
purpose of this research tend to be active information seekers. A high level of technological
confidence within this group tends to be an encouraging factor when it comes to product
information research online. The following analysis presents both, focus group results and
behavioural theory in a parallel fashion divided into two main research topics: Information
Retrieval and Search Patterns Perception of Product Information Online These two areas is
mutually dependent and particularly important in a market where consumers have the power to
choose the right product from a number of competing suppliers. Well-structured product
information that cannot be found easily online is as much of a problem as is having easily
accessible information that does not meet the consumer's expectations.
Anders Hasslinger; Selma Hodzic; Claudio Opazo (2008-02-01) in their study they showed that
developed into a new distribution channel and online transactions are rapidly increasing. This has
created a need to understand how the consumer perceives online purchases. The purpose of this
dissertation was to examine if there are any particular factors that influence the online consumer.
Primary data was collected through a survey that was conducted on students at the University of
Kristianstad. Price, Trust and Convenience were identified as important factors. Price was
considered to be the most important factor for a majority of the students. Furthermore, three
segments were identified, High Spenders, Price Easers and Bargain Seekers. Through these
segments we found a variation of the different factors importance and established implications
for online book stores.
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CHAPTER III
RESEARCH METHODOLOGY
Research methodology is used for a particular objective for which the research is being carried
out. Here I have explained all the ways which are used for carrying out
a marketing research in theoretical forms. I have also emphasized the tools and methods which I
have used. This is a exploratory type of research.
Research design
It helps in the proper analysis of data. It makes research process relevant to the objective of the
research and sees whether proper process is carried out or not. Three types of research Design
Exploratory research
Descriptive Research
Casual research
i Exploratory research
This research helps in formulating hypothesis for the further research. Exploratory research
design helps in establishing the priorities for further research. It helps in gathering information
about the practical problem for carrying out research. Exploratory research is highly flexible and
very informal. I have used the exploratory research for knowing the satisfaction level, opinion
and views from customers and
retailers in different parts.
ii. Descriptive Research
The descriptive research is typically concerned with determining frequency with which
something or how two variables vary together. A descriptive research is considered to be rigid
and formal.
iii. Causal Research
It establishes the cause and effect relationship between two variables. It is the one of the most
authentic way of doing a research. Its example can be to see the increase in the sale of a product
with a change in its packing. Packing is the experimental variable and demands the dependent
variable.
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Data Collection Method
Both primary and secondary sources are being used for carrying out this research.
1. Primary Data
It may pertain to demographic – socio economic character of the common attitude and opening
of the people their awareness and knowledge. Primary data are obtained by the researcher with
the help of mail questionnaire and personal intension, telephone survey observation and
experiment. Here I have extracted out the primary data mainly through questionnaires which was
being given to the customers, retailers
and shopkeepers to know their views, opinion and satisfaction level regarding LG Products in
different contrast and context.
2. Secondary Data
It includes those data’s which are collected from some earlier research work, are applicable in
the study which has presently been undertaken by the researcher It is comparatively cheep and
takes less time to obtain and must be from original course. The survey was conducted in South
Delhi which was divided in parts for carrying survey and easy interpretation and also service
responses.
Sampling Method
Probability Sample
Non probability sample
Here in this research probability sampling is being used
i). Probability Sample
A probability sample is chosen in such a way that each member of the universe has known
chance of being selected. Some of the most frequently used probability Sampling are as follows
–
a. Sample Random Sampling
In sample random sampling each member of the population has a known and equal chance of
being selected. Without giving a particular probability of selection to the customers and the
retailers.
b. Systematic Sampling
Here the number is chosen in the symmetric manner from the entire population. Each number has
known chance of being selected.
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Stratified Sampling In stratified sampling the universe is divided into strata on the basis of
recognizable or measurable characteristic of its member, age, income, education etc. I surveyed
in different area as per the known features of the population, were the student area with low
income and low consumption, were the area with upper middle class people with high income
and high consumption rate.
Area Sampling
In this method various units comprising the population are grouped in cluster and the sample
selection is made in such a way that each cluster has a known chance of being selected.
II). Non Probability Sample
In non probability sample the chance of any particular unit in the population being selected is
unknown.
Three most frequently used non probability design are as follows:
Judgmental sampling
A person knowledgeable about the population under study chooses sample number he feels
would be more appropriate for the particular study.
b. Convenience Sampling
In this method the sample unit is chosen primarily on the basis of convenience to the
investigator.
c. Quota Sampling
In quota sampling the units are chosen on non random manner. The sample is selected according
to the convenience.
LIMITATIONS
While doing the project the following inevitable hurdles has come my way:
Inability in meeting high marketing personnel in the concerned companies due to their
busy schedule.
Information regarding stage of various products in the product life cycle is not available.
The information base is limited due to resource constraints.
The critical aspect like price could not be covered completely.
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The other hurdles which I had to face, the secrecy of the company policies due to which
complete information regarding financial position & salary and wage structure could not
fully covered.
Areas of marketing research are not revealed by the company’s official.
OBJECTIVES OF PROJECT
2) To analyze their strategies and its effect on the corporate profile of the company.
3) To compare the strategies of LG Electronics India (Pvt.) Ltd with its competitors and to
analyze its strengths.
4) To realize the role being played by advertising and promotion on the sales volume of the
company.
Hypothesis
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HA: Promotional activities by websites has significant relationship in purchasing of
electronic gadgets.
CHAPTER IV
DATA COLLECTION AND ANALYSIS
Below 20 35%
20-30 35%
30-40 26%
40-50 4%
Age groups
35.00%
35.00%
35.00%
30.00%
25.00% 26.00%
20.00%
15.00%
10.00%
5.00%
0.00% 4.00%
beow 20
20-30
30-40
40-50
Interpretation-:
The above graph tells the Age group of samplings that have been collected during the survey.
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2. Division of gender in samplings.
Particular Percent
Male 54%
Female 36%
Method Of Shopping
70.00%
60.00%
50.00%
40.00%
30.00% 62.00%
20.00% 38.00%
10.00%
0.00%
male female
Interpretation-;
The above chart is shown the number of male samplings i.e. 62% and rest 38% are female
samplings
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Particular Percent
Method Of Shopping
100%
90%
80%
70%
58.00% 42.00%
60%
50%
40%
30%
20%
10%
0%
Online Mall
Interpretation-:
The above graph shows what shopping methods do people prefer between online
shopping and retail or mall shopping, there are some people who prefer both the method.
The data is based upon the survey which I took thorough questioner in Orion mall. 58%
of people like online shopping and 42% of people like offline.
Particular Percent
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Very Often 35%
Often 35%
Rarely 26%
No 4%
35%
Interpretation-:
The above pie chart shows how often people like to visit malls. As green and blue color shows
35% of people like to go very often and rarely, and 35 % of people like to go often where as no
one like not to visit malls.
Particular Percent
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Yes 73%
NO 27%
70.00%
60.00%
30.00%
20.00%
10.00%
0.00%
Yes NO
Interpretation-:
This chart shows the percentage of people who had made online shopping. In the pie chart we
can see 73% of people had mad online shopping where as 27% of people didn’t. These 27% of
people are shown as nil if further online shopping related question.
Particular Percent
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Weekends 35%
Holidays 36%
Occasionally 10%
0.00%
Weeks Days
Weekends
Holidays
Occasionally
Interpretation-:
This chart shows when people like most to visit malls. The percentage of people visit to mall is
higher in holidays by 36% whereas 45% people like to go occasionally and on weekends.
Remaining 19% like to visit on weeks days.
Particular Percent
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Yes 64%
No 36%
36%
Yes
NO
64%
Interpretation-:
This graph shows people thinking about advertisements as good source of information regarding
shopping malls. 64% of people are agree with the sentence where as 36%are won't.
Particular Percent
Weekly 20%
Monthly 42%
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Occasionally 26%
None 12%
None 12%
Occasionally 26%
Monthly 42%
Weekly 20%
Interpretation-:
This chart shows when people like most to visit online shopping . The percentage of people visit
to mall is higher on monthly bases 42% whereas 26% people like to shop occasionally and 20%
on weekly bases. Remaining 12% of them don’t shop online.
Particular Percent
100-500 24%
500-1000 22%
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1001-2000 40%
5000 14.%
5000
14.00%
1001-2000
500-1000 40.00%
22.00%
100-500
24.00%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Interpretation-:
The above chart tells the expenditure of individual per month in shopping mall 24% of them
spend 100-500, 22% of sampling spend 500-1000, major i.e. 40% of samples spend 1001-2000
and 14% of samples spend 5000.
10. Ratings given by sampling to the employee behavior in shopping malls out of 5
Particular Percent
1 2%
2 10%
3 28%
4 34%
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5 26%
100%
90%
80%
70%
60%
40%
30%
20%
10%
0%
1 2 3 4 5
Interpretation-:
When it comes to employee rating at mall, 40% of people had rate them the highest 3 where as
25% of people had rate them 4 and 15% of people had given 5. We can also see the 5% people
had rated 1 and 15% had rated 2.
Particular Percent
1 8%
2 6%
3 18%
4 36%
5 32%
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40%
35%
30%
25%
20%
15% 36%
10% 32%
18%
5% 8%
6%
0%
1
2
3
4
5
Interpretation-:
When it’s come to rating for online shopping experience , 36% of people had rate them the
highest is 4, where as 32% of people had rate 5 and 18% of people had given 3. We can also see
the 8% people had rated 1 and 6% had rated 2.
Particular Percent
Street shopping 4%
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Products Of New Style And Designs Are Available At
Shopping Malls
4%
30%
shopping mall
online shopping
street shopping
66%
Interpretation-:
The above pie chart show the people believe about the product of new style and designs
and there availability at online shopping. As we can see 66% people thought online
shopping and 30% Retail shopping.
13. Percentage of people shopping daily use products from shopping malls
Particular Percent
Yes 30%
No 70%
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Do You Purchase Daily Use Products
30%
Yes
No
70%
Interpretation-:
Above chart shows that 70% of people don’t purchase daily use product from mall where as 30%
do.
14. People perception on difference between shopping mall & general store
Particular Percent
Yes 80%
NO 20%
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Do You Feel Difference Between Mall And General Store
20%
Yes
No
80%
Interpretation-:
In the above pie chart it is shown that what people really think about the difference between
shopping malls and general store. 80% of people believe yes there is a difference where as 20%
of people doesn’t think so.
Particular Percent
Yes 40%
NO 60%
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Do You Think Highly Priced And Superior Quality Products
Are Only Available At Shopping Malls
Yes
40% NO
60%
Interpretation-:
In the above pie chart it is shown that what people really think about the high price and good
quality product availability in malls and other shop. 60% of people believe yes where as 40% of
people don’t think so.
Particular Percent
100-500 24%
500-1000 22%
1001-2000 29%
5000 25%
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Expenditure per month online shopping
5000
25.00%
1001-2000
29.00%
500-1000
22.00%
100-500
24.00%
0%
5%
10%
15%
20%
25%
30%
Interpretation-:
The above chart tells the expenditure of individual per month in shopping mall 24% of them
spend 100-500, 22% of sampling spend 500-1000, major i.e. 29% of samples spend 1001-2000
and 25% of samples spend 5000.
Particular Percent
Yes 85%
NO 15%
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Do You Recommend Others To Use Online Shopping
15%
Yes
No
85%
Interpretation-:
Above chart shows that 85% of people recommend others to use online shopping where as
15% doesn’t support for online shopping.
Particular Percent
Orion 40%
Mantri 28%
Garuda 10%
Forum 15%
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Other 7%
7%
15%
40%
10%
28%
Interpretation-:
Above chart shows that 40% of people visit Orion mall, 28% of them go to Mantri mall ,
10% of them go to Garuda mall , and rest of them i.e. 7% of them visit other malls
Particular Percent
Amazon 36%
Myntra 20%
Jabong 10%
Yepme 4%
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Commonly Used Website
4%
10%
30%
20%
36%
Interpretation-:
Above chart shows number of people commonly used shopping website , 36% of samples shop
on Amazon ,30% of them use Flipkart , 20% of them shop on Myntra , 10% of them Jabong and
rest use 4% on Yepme .
20. The frequency of traditional shopping has been reduced due to online shopping
Particular Percent
Yes 62.5%
NO 37.5%
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70.00%
60.00%
50.00%
40.00%
30.00% 62.50%
20.00% 37.50%
10.00%
0.00%
Yes NO
Interpretation-:
The frequency of traditional shopping has been reduced due to online shopping 62.50% samples
believe it’s true and rest 37.50% don’t believe.
Preference of the product with same price both in shop and on internet
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31%
Internet
Shop
69%
This Study shows that if the product has same price both in the market shop and internet then ,
nearly 68.7% of population prefers buying the product over the internet as it saves time and
transportation cost added while buying the product. But, in case of shop only 31.3% prefers may
be due lack of technological resources to do the purchase .Moreover, it gives the customer a
sense of inspecting the product buying.
45%
40%
35%
30%
25% 40.00%
20% Sales
15% 42.70%
10%
17.30%
5%
0%
Yes
No
Sometimes
The Graph clearly shows what customers think about online shopping, with 42.70% sometime
think its secure sometime it is not as compared to traditional shopping.40% customer think
online shopping is as secure as traditional shopping, while 17.30 % believe it is not secure.
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Retail
Discountsn Ads
Sale Ads
Festivel Ads
Other
There are various reasons why people are attracted to shop offline- most prominent reasons are
discounts ads, sales ads, festive ads and other miscellaneous ads attracts customers to shop
offline. India where festivals are regarded as most auspicious moments, ads play important role
in promoting offline shopping. festive ads plays the major role with 38% in attracting the
customers to go for offline shopping, followed by sales ads with 36% this type of ads are great
events to attract customers by showing ads to customers about sales for a limited period of time.
The discount ads which covers up 23 % comes next to sales ads in attracting customer for
offline shopping, While remaining 3% are other miscellaneous ads such as off season etc. Also
somewhat attracts people.
Online
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6%
28% 39%
Discount Ads
Sale Ads
Festivel Ads
Other
27%
Advertisement plays a major role for making a site a brand in the market. Moreover,
advertisement attracts its customer towards them to make income. The type of advertisement that
attracts the customer towards them is discount ads which are 39.3%, which give the customer a
reason to buy their products at reasonable prices. Also the sales ads bring more customers nearly
26.7% of total customer gets attracted to it. The festive season is the time duration during which
major of the population do their shopping is 28% and if ads related to it is published then it
brings more customer to them.
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FINDINGS AND CONCLUSION
Among the top findings of the survey, as put forth by Online Shopping, are the following:
Convenience was listed as the top reason for shopping online by 74% of the
respondents, and at the same level were purchase goods in online. This is good news for
e-tailers, as the value proposition for online shopping is clear in the minds of shoppers.
27% of our respondents said they aren’t purchase of their goods online. We believe this
bodes well for e-tailers as online shopping is gaining acceptance.
95% of respondents look for products information and service information before
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RECOMMENDATIONS AND SUGGESTIONS
They should provide complete information about their products and should make site
simple so that common people can understand how to make purchase - As in online one
purchase goods through credit cards but one can use the approach of cash payment during
delivery - One can use more animation through which they can attract more customers -
One can use the approach of credit points i.e. if one purchase for the first time they get
credit points due to which if they purchase for the second time they can get discount of
that much points. Due to which one increase the repurchase.
One can use more animation through which they can attract more customers.
They should provide complete information about their products and should make mall
simple so that common people can understand how to make purchase.
As in shopping mall purchase of goods through credit cards but one can use the approach
of cash payment during delivery
One can use the approach of credit points i.e. if one purchase for the first time they get
credit points due to which if they purchase for the second time they can get discount of
that much points. Due to which one increase the repurchase.
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Suggestions on shopping mall
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CONCLUSION
I had conducted the market survey and different marketing activities in television market. But from
past few years it has been found little bit fluctuation in its position. And after being a market
leader for a long period in various segments loses its position and customers were not satisfied
by the company from its services.
I was very lucky to join this internship project and learnt so many things, like punctuality, hard
work, selling strategy of company etc. even I met with various dealers and distributors having
different mindset for different brands. Thus I came to know about different views for different
brands and services being provided by them. And who are the current market leaders in different
sectors of consumer durables field and reasons for their success.
After the survey I came to the conclusion that consumers were not satisfied with the after sale
services of the LG. And less aware about the new products being launch by the company. And the
company was not able to reach to its various dealers. Past customers were having fewer issues
with the company and they were satisfied and now also their first preference goes to Videocon
only but the new customers were very much dissatisfied. And it is very difficult for the
customers to differentiate the different products due to lack of proper advertisement.The survey
also showed that their products at cheapest rates in comparison to its competitors.
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Bibliography
http://www.ijcsmc.com/docs/papers/June2013/V2I6201328.pdf
https://en.wikipedia.org/wiki/Online_shopping
https://en.wikipedia.org/wiki/Shopping_mall
http://www.wsj.com/articles/survey-shows-rapid-growth-in-online-shopping-1465358582
http://www.shoppingnavigator.co.uk/benefits-of-online-shopping.php
http://www.differencebetween.net/business/product-services/differences-between-online-and-
traditional-shopping/
Wikipedia
Slide share
Shodhganga
Google
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Annexure
Yes No
Less than 500 between 500-1000 between 1001-2000 more than 5000
Yes No
1 2 3 4 5
1 2 3 4 5
10. Where do you think products of new style and designs are available at?
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11. Do you purchase daily use products from shopping malls only?
Yes No
12. Do you feel any type of difference between shopping mall and general store?
Yes No
13. Do you think highly priced and superior quality products are only available at shopping
malls?
Yes No
14. How much do you usually spend on online shopping per month?
Yes No
18. Have you reduced the frequency of traditional / mall shopping due to online shopping?
Yes No
19. What are the most common products you purchase through online?
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20. What would be your best payment method if you buy online?
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