Download marketing stimuli in purchase of home appliances from

International Journal of Sales & Marketing Management
Research and Development (IJSMMRD)
ISSN 2249-6939
Vol. 3, Issue 2, Jun 2013, 23-30
© TJPRC Pvt. Ltd.
MARKETING STIMULI IN PURCHASE OF HOME APPLIANCES FROM CUSTOMER
PERSPECTIVES
P. JANAKI1 & P. SANTHI2
1
Mphil Scholar, Department of Commerce, Avinashilingam Institute for Homescience and Higher Education for Women,
Coimbatore, Tamilnadu, India
2
Associate Professor, Department of Commerce, Avinashilingam Institute for Homescience and Higher Education for
Women, Coimbatore, Tamilnadu, India
ABSTRACT
Marketing strategy is the game plan which the firms must adhere to, in order to outdo the competitor or the plans
to achieve the desired objective. The people consume things of daily use, and buy these products according to their needs,
preferences and buying power. The objectives of the study are to study the purchase decision behaviour relating to home
appliances and to analysis customer response to the marketing stimuli of home appliances. The study was carried out with
the sample size of 200 respondents selected based on proportionate random sampling with in Coimbatore city. The data
were collected with interview schedule analysed and were using percentage weighted average score analysis of variances.
The finding of the study included that education and income of the respondents are the two socio-economic variables
which have significant association in all the stages which the buyers undergo while purchasing home appliances.
KEYWORDS: Consumer Behaviour, Consumer Profile, Marketing Mix, Home Appliances
INTRODUCTION
Consumer behaviour is a complex, dynamic, multidimensional process, and all marketing decisions are based on
assumptions about consumer behaviour. Marketing strategy is the game plan which the firms must adhere to, in order to
outdo the competitor or the plans to achieve the desired objective (Harold 1985). The product creates an image in the mind
of the consumer, who undergoes a decision process which leads to the outcome in terms of satisfaction or dissatisfaction,
which reflects on the sales and image of the product or brand (Leon G 1997). The process of decision-making varies with
the value of the product, the involvement of the buyer and the risk that is involved in deciding the product/service. A
process of buying starts in the minds of the consumer, which leads to the finding of alternatives between products that can
be acquired with their relative advantages and disadvantages. This leads to internal and external research (Schiffman L.G
1997). Providing superior customer value is the main objective of the companies. For providing better customer value the
marketers should learn the needs of the consumer, the offering of the company, vis-a-vis its competitors and the
environment which is economic, physical, technological, etc
Home Appliances a major appliance, or domestic appliance, is usually defined as a large machine which
accomplishes some routine housekeeping task, which includes purposes such as cooking, or food preservation, whether in a
household, institutional, commercial or industrial setting. The term white goods or white ware is also used for these items.
NEED OF THE STUDY
Last few years have witnessed growing demands for different consumer products (Chunawalla, 2000). Increase in
demand is a result of increase in income of the people and increase in discretionary income too (Arora, 1995). A rise in
discretionary income results usually in an increased spending by consumer on those items that raise their living standards,
Moreover, a trend for people to utilize their income for more comforts and facilities is also developing. Intense competition
24
P. Janaki & P. Santhi
among the marketers of consumer durables (Sontaki, 1999) and the increasing awareness of consumers about their own
needs is making a major difference in marketing of consumer durables (Kumar, 1998). In the context of the above scenario,
it is interesting to study how the human beings i.e. consumers, satisfy their different non-basic needs. Moreover, it is
interesting to study, why they buy a particular product, how they buy it, when they buy it, from where do they buy it and
how they respond to the marketing stimuli (Schiffman and Kanuk, 1995).
OBJECTIVES OF THE STUDY
The objectives of the study are

To study the purchase decision behaviour relating to home appliances.

To analysis customer response to the marketing stimuli of home appliances.
HYPOTHESES
The null hypotheses were framed in order to test the association between education and income of the respondents
with that of involvement in purchase process of home appliances.
METHODOLOGY
The study was conducted at Coimbatore city. According to the census of India, Coimbatore is the second biggest
city in Tamilnadu in the based on demography. The respondents were selected from the two years customer data base
(12612 customers) of a leading multi brand home appliances showroom in the city. Within the data base, the customer
belonging to Coimbatore city were screened resulting in 2007 customers. Proportionate random sampling method was
adopted by taking ten percent of the population resulting in a sample size 200 respondents. Interview schedule was used for
the collection of primary data. Considerable data has also been tapped from secondary sources such as journals,
newspapers, magazines and websites. The percentage and Weighted Average has been used for data analysis.
RESULTS AND DISCUSSIONS
Distribution of Respondents
The respondents were classified based on their socio-economic profile and the purchase behaviour.
Socio-Economic Profile of the Respondents
The demographic variables namely age, sex, residence, education, occupation and monthly income are the most
widely employed in market segmentation. The socio economic profile of the respondents is presented in table 1.
Table 1: Distribution of Respondents Based on Socio-Economic Profile
Variables
Age (in years)
Gender
Marital status
Family
Up to 20
21- 40
41- 60
Above 61
Male
Female
Married
Unmarried
Nuclear
Joint
No of
Respondents(n:200)
32
134
32
2
54
146
112
88
150
50
Percentage
16
67
16
1
27
73
56
44
75
25
25
Marketing Stimuli in Purchase of Home Appliances from Customer Perspectives
School Level
Under Graduate
Education
Post Graduate
Others(skill,technical)
Business
Govt Employment
Occupation
Private Employment
Profession
Others
Less than 10,000
Monthly
10,001-20,000
Income
20,001-30,000
in( .)
Above 30,001
Source: Primary Data
22
66
102
10
30
46
72
38
14
58
62
68
12
11
33
51
5
15
23
36
19
7
29
31
34
6
Majority of the respondents (67 per cent) belong to the age group of 21-40 years. Female respondents constitute
73 per cent and the remaining 27 per cent were male. Majority of the respondents were married. The nuclear families were
predominant with 75 per cent. Majority of the respondents (95 per cent) were literate. Most of the respondents (51 per cent)
were post graduates, 33 per cent of the respondents were under graduates, and 11 per cent of the respondents studied up to
school level and remaining five per cent of the respondents were with skill oriented and technical education. Most of the
respondents were in private sector employment (36 per cent) and 23 per cent were government employments, 19 per cent
of the respondents were in profession and remaining seven per cent were home maker and unemployed. Most of the
respondents (34 per cent) were in the income group with having monthly income between . 20,001-30,000, 31 per cent of
the respondents between . 10,001-20, 000, and 29 per cent of the respondents with monthly income of less than .10000
and for six per cent of the respondents monthly income is above .30, 331.
Classification of Respondents Based on Purchase Decision of Home Appliances
Different people play different role to make a specific purchase. The classification of the respondents based on
purchase behavior of home appliances is given in table 2.
Table 2: Classification of Respondents Based on Purchase Decision of Home Appliances
No of Respondents
(n:200)
Percentage
Television
Radio
Journals
Newspaper
Banners
Friends ,relatives and Peer group
Sales person
Dealer
Company Outlet
Shops
Second hand purchase
Cash
Credit
Installment
80
2
8
10
8
74
18
84
26
88
2
46
154
95
40
1
4
5
4
37
9
42
13
44
1
23
77
62
Hire purchase
59
38
Variables
Information about Home Appliances
Source of Purchase
Mode of Purchase
Source: Primary Data
26
P. Janaki & P. Santhi
It can be noted from table 2 that all of the respondents were involved in purchase of home appliances. The
respondents gathered information about home appliances from many sources 40 per cent of the respondents were aware of
home appliances through television, 37 per cent of the respondents got the information about home appliances from friends
and relatives and nine per cent of the respondents collected information from sales person and five per cent of the
respondents from news paper and four per cent of the respondents from journals and another four percent through banners
and just one per cent of the respondents through radio. The classification of respondents based on source of purchase
shows that 44 per cent of the respondents bought home appliances from shops, 42 per cent of the respondents purchased
through dealers out let and 13 per cent of the respondents from company outlets. Purchase of home appliances on credit
basis is quite popular among 77 per cent of the respondents and another 23 per cent of the respondents were purchased in
cash basis. Of the credit purchase, 62 per cent of the respondents were purchased on the basis of installment and 38 per
cent of the respondents used hire purchase system.
Ownership of Home Appliances
Ownership of home appliances reflects the soul status of individual and his/her living standard. The consumer
durable goods serve different purposes namely comfort, convenience, time -saving and ultimately the standard of living.
Yesterday’s luxuries and becoming today’s necessaries where in marketers of these products thrive. The various home
appliances owned by the respondents is given in table 3
Table 3: Ownership of Home Appliances by the Respondents
Products
Refrigerator
Washing Machine
Air Conditioner
Speaker and Audio Equipments
Electric Fan
Television
MP3player
Iron Box
DVD Player
Mixer and Grinder
Juicer
Microwave Oven
Chimneys
Induction Stove
Electric Cooker
Source: Primary Data
No of Respondents
180
152
50
124
200
200
52
174
158
186
44
200
4
58
38
Percentage
90
76
25
62
100
100
26
87
79
93
22
100
2
29
19
All the respondents (100 per cent) owned Television, Electric fan and Microwave Mixer and grinder were owned
by 98 per cent of the respondents. Refrigerator ownership is 90 per cent. Iron box with 87 per cent. Washing machines
ownership attained the 6th place with 76 per cent, Speaker and Audio Equipments with 62 per cent. Induction Stove was
owned by29 per cent, Air Conditioner by 25 per cent, Mp3 player by 26 per cent, Juicer by 22 per cent, Electronic Cooker
with 19 per cent and Chimneys were owned by just two per cent of the respondents.
INFLUENCES OF MARKETING STIMULI IN PURCHASE OF HOME APPLIANCES
A firm’s marketing efforts should start and end with the customers. It is aimed to give greater consumer
satisfaction. The marketing mix is used as a tool towards the customers in order to ascertain their needs, tastes and
preferences. The weighted average score has been calculated for the analysis the influences of marketing mix in home
27
Marketing Stimuli in Purchase of Home Appliances from Customer Perspectives
appliances purchase and for various elements of marketing mix. A marketer is always interested to know how consumer
respond to various marketing stimuli product, price, place and promotion which are most important by the respondents
were ranked accordingly and presented in table 4
Table 4: Ranking of Elements of Marketing Mix by the Respondents
Rank
Variables
Appearances
Quality
Performances
Less Power Consumption
Green product
Brand Name
Value Addition
Warranty
Re purchase/ Exchange Offer
After Sale Service
Reasonable Price
Easy installment and Credit
Facilities
Offers and Discount
Attractive Advertisement
Word of Mouth Promotion
Celebrity
Demonstration by selling agents
Trust Worthiness of Dealer
Installation
Door Delivery
Source: Primary Data
Total Mean Score
Product
7.5
7.78
6.32
5.66
3.92
8.29
5.02
4.82
4.58
4.18
Price
2.22
2.06
1.74
Promotion
3.05
2.44
2.38
2.11
Place
1.91
2.23
1.84
Within
Category
Over All
3
2
4
5
10
1
6
7
8
9
3
2
4
5
10
1
6
7
8
9
1
15
2
17
3
20
1
2
3
4
11
12
13
16
2
1
3
18
14
19
Influences of marketing stimuli in purchase of Home Appliances under product mix element such as brand name,
quality, appearances, performances, economical power consumption had predominant influence, followed by the elements
of promotion mix namely advertisement, word of mouth promotion, and celebrity advertisement.
Under physical distribution mix, installation, and under price mix, the reasonable price had greater influence in
purchase decision on home appliances.
ASSOCIATION BETWEEN SOCIO-ECONOMIC STATUS OF THE RESPONDENTS AND
INVOLVEMENT IN STAGES OF PURCHASE OF HOME APPLIANCES
Education and income are the most important among the socio-economic variables. Education provides
wholesome understanding of the market offering where as income forms the bases of purchasing power.
Education brings in quest for knowledge and understanding. Thus, education and income of the respondents were
considered for analyzing the association with involvement shown by the respondents at various stages of purchase of Home
Appliances( Table5).
28
P. Janaki & P. Santhi
Table 5: Association between Education and Income of the Respondents at Various Stages of Purchase
Stages of Purchase
Pre-purchase
Purchase options
Procedure of purchase
Usage stage
Customer engagement
Re-purchase
Education
Significance
F Ratio
@5%
3
5
32
3
5
47
Insignificant
Significant
Significant
Significant
Insignificant
Significant
Income
Significance
F Ratio
@5%
9
11
6
4
21
6
Significant
Significant
Significant
Significant
Significant
Significant
From the above analysis it is found that education and income of the respondents are the two socio-economic
variables which have significant association in all the stages which the buyers undergo while purchasing home appliances
and has significant impact on the involvement of respondents in each and every service offered at the different stages of
purchase.
SUGGESTIONS
The following are the suggestion made with respect to marketing of home appliances.

Product promotion shall be designed by looking with owner’s personality and self image tied to the product.

More than the functional benefits in products, buyers seek other benefits that trigger an emotional response.

Product improvement is of continuous interest to the consumer.

Product entails significant risks. Hence sufficient risk cover if any provided on purchase of the product.

Product to be identified with the norms of a group that is, the product should have sign or badge value.

Provide no scope for cognitive dissonance at the post purchase stage.
CONCLUSIONS
Successful companies rely on their satisfied customers to return to repurchase and the companies offerings to
others. The interest evoked by a stimulus (or stimuli) or the aspects of the person, the product, and the situation all combine
to determine the consumer's motivation to buy home appliances resulting in high involvement purchase.
REFERENCES
1.
KedarShukla and AmolRaut “Emerging Trends and Challenges in Air Conditioning Industry in India”.
International Journal of marketing, Feb 2011, Vol- 8, No- 2, p.47.
2.
Lilly.J, “Customer Perception and Preference towards Branded Products with special references to Television
Sets”, Indian Journal of Marketing, Feb 2010, Vol-5, No-10, p.84.
3.
Saravanam.S “A Study on Consumer Behavior of Women with Special Reference to Durable Goods in
Coimbatore City”, Indian Journal of Marketing, Mar 2010, Vol-5, No-3, pp.52-60.
4.
Pradeepkashyap, “A Study on Consumer Durable Market with special reference to Samsung Electronics”,
Business line, Jan 2007, Vol- 4, No- 6, pp 38-43.
5.
Jayasree Krishnan, “A Study on Consumer Behavior Towards Durable Goods”, Indian Journal of Marketing May
2006, Vol-XXXIV, No-6, p.20.
6.
Venkatramaraju.D and Saravanan.S, “Consumer Behavior in the Marketing of House Hold Appliance,” Indian
Journal of Marketing, Feb 2006, Vol-8, No-4, pp. 36-40.
Marketing Stimuli in Purchase of Home Appliances from Customer Perspectives
29
Books
1.
Harold H..Kassarjian and Peter D.Bennett, Consumer Behaviour, NewDelhi, Prentice Hall of India pvt.ltd.,1985.
2.
Leon G.Sachiffman,Lesil Lazar Kanuk,Consumer Behaviour, Prentice Hall of India pvt.ltd.,1997.