FACTORS AFFECTING BUYING BEHAVIOR OF TELEVISION

Submitted By: Ashish Upadhyay Ashutosh Narayan Kaustubh Singh Mohit Mishra Shradul Singh Vinita Subudhi

Acknowledgement

We take the opportunity in thanking Prof. Upendra Lele for his valuable assistance in helping us out in conducting the survey. His constant feedbacks for improvement have helped us immensely throughout the project.

We also thank all our colleagues in ISB&M and our seniors who have given their precious time in answering our questionnaires.

Thank You All.

BRAND SCORE CARD Brand name characters

AWARENESS USAGE SATISFACTION RATING OVERALL BRAND RATING VALUE FOR MONEY AVAILABILITY PRICE SENSITIVITY LOYALITY ATTACHMENT SCORE (average)

LG
85 45 45 3.45 55 55 35 17.55 60 44.55

SONY
70 25 25 4.56 25 35 30 1.25 30 27.31

SAMSUNG
65 10 10 3.01 15 30 25 0.225 10 18.69

The Questionnaire was conducted for the following brands.

LG SONY SAMSUNG OTHERS

Findings:
From the sample survey, it has been found out that LG commands a greater market share in comparison with Sony and Samsung. LG scores the highest in all the respective aspects of the brand score card. The strengths and weaknesses of the following brands are as follows.

LG
Strengths: LG has created very good awareness in the market. LG has got good value for money. It scores highest on After Sales Service. People using this brand are very much satisfied with it. It has a better resale value than other brands in the market. Scores high on Brand Loyalty.

Weakness: Sound Quality. Picture Quality.

Opportunities: Improve the sound and picture quality.

Threats: If some other competitor follows the pricing strategy of LG

Sony
Strengths: Best Picture quality. Best Sound quality. Brand Name.

Weakness: It doesnt provide a good after sales service. The warranty period offered by other products is better than Sony. The loyalty for this brand is lower than LG.

Oppurtunities: Lowering the price offered in the market. Focusing on after sales service. Threats: Other competitors using the same high definition picture quality.

Samsung:
Strengths:

Has a better brand name than LG Provides a good sound quality. Weakness: Price. Picture quality. After sales Service. Warranty Period.

Oppurtunities: Technical advancement in terms of picture quality. Revising the pricing strategy.

Threats: Rebranding by competitors.

Conclusion:
From the survey we conclude that LG televisions are preferred by most people. LG enjoys a greater brand loyalty. The satisfaction level with LG stands the highest at 45% in comparison with Sony and Samsung. It has also been found that most people intend to buy LG next time it comes with a new range of products and features. 65% of the people surveyed are willing to recommend LG brand of televisions to other people. They also feel LG has a good value for money. It also gives a resale value which is better than Sony and Samsung.

History
o In existence for three decades o Until recently, all broadcasting was by government owned company (Doordarshan) o Developed extensive network of terrestrial transponders o Private broadcasting was illegal o Introduction of colour television in 1980s (during 1982 Asian games) CTV was the driving force behind the consumer electronics boom of mid 80s, which was due to a steady rise in GDP Between 1989 and 1992 the healthy demand growth got eroded due to: o high excise, sales and other taxes leading to price increase; o devaluation of rupee in 91 leading to higher import costs; and Post-liberalization revival of CTV market o Rationalization of duty structures leading to lowering of prices o Stable rupee o Higher GDP growth o Relatively lower inflation Product life cycle got reduced considerably Introduction of satellite broadcasting by foreign company Led to increase in channel diversity Access to homes where cable (landline) was impenetrable Created fierce competition to enter the market

Dominant Parameters of Television

Brand name Size Price Pricing scheme After sales service Picture quality Sound Number of channels Other features

Implications for Business

Current Poor infrastructure Corrupt government Surplus of skilled technical workers Future Improved infrastructure (potential to be sixth in world) Possibility of relaxed laws/bans on foreign competition Increased investment from outside sources

SUPPORTING DATA
USES/WEEK <2 hrs 2 - 4 hrs 4 -6 hrs >6hrs FREQUENCY 20 5 30 45

WATCHING hrs OF TV

45%

20% 30%

<2 hrs 5% 2 - 4 hrs 4 -6 hrs >6hrs

BRAND/MODEL LG SONY SAMSUNG OTHERS

FREQUENCY 85 70 65 8

KNOWN BRANDS
LG SONY SAMSUNG OTHERS

8% 65%

85%

70%

Frequency
MODEL AT HOME LG SONY SAMSUNG OTHERS FREQUENCY 45 25 10 20

LG Sony Samsung others

price picture quality warranty period sound quality brand name no. of channels after sale service over all

GRADATION OF BRANDS LG SAMSUNG Sony 4.2 3.7 3.2 3.5 3.3 3.75 4.1 3.67 3.9 3.91 3.13 3.96 3.22 3.57 4.1 3.72 3.26 3.86 3.7 3.14 3.45 3.76 3.39 3.67

ORHERS 1.64 1.32 1.61 1.32 1.74 1.76 1.24 1.67

LG I WOULD RECOMMEND THIS TO OTHER FRIENDS & NEIGHOURS THIS TV BRAND IS EXPENSIVE THIS TV BRAND IS GOOD VALUE FOR MONEY THIS BRAND OF TV IS AVAILABLE IN MOST SHOPS I SHALL BUY THIS BRAND OF TV IF THE PRICE GOES DOWN SERVICE PROVIDED BY THIS TV BRAND IS VERY GOOD I INTEND TO BUY THE SAME COMPANY'S TV NEXT TIME ALSO 65 65 55 55 35 55 60

SONY 20 20 25 35 30 30 25

SAMSUNG OTHERS 15 0 15 0 15 5 30 15 25 10 25 0 15 0

CALCULATION OF LOYALTY LG SATISFACTION REPURCHAGE RECOMENDATION LOYALITY(CALCULATED OUT OF ONE UNIT) SONY SAMSUNG 45% 25% 10% 60% 25% 15% 65% 20% 15% 17.55 1.25 0.225