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PIONEER INSTITUTE OF

PROFESSIONAL STUDIES,
INDORE

Diligence & Excellence


(Since 1996)
SESSION
(2014-2016)
A
SYNOPSIS OF
MAJOR RESEARCH PROJECT
ON
A Comparative Study of Consumer Preference
towards Indian watch and Foreign watch

GUIDED BY:Ms. ADITI BHAWSAR

SUBMITTED BY:ROHIT TRIPATHI


MBA III SEMESTER

INDEX

S.NO

CONTENTS

1.

Introduction

2.

Rationale

3.

Literature Review

4.

Objectives

5.

Research Methodology

6.

Expected Outcomes

7.

References

PAGE NO.

INTRODUCTION
Consumer is the King of market and all the marketing activities of all the business and
industrial enterprises of today go around the habits, tastes, preferences, perception and
attitudes of consumers. All efforts are being made to provide maximum satisfaction to
maximum consumers. Goods and Services are produced according to the specifications of
these needs and wants and these goods and services are distributed to the consumers at the
right time and place through most suitable channels of distribution. Marketers have come to
realize that no marketing efforts can be successful if the choices, tastes and attitudes of
consumers are not properly considered. Therefore, they lay stress upon marketing research
and study consumer behaviour. Further, a buyer purchases a product because of certain
physical, social and economical forces creating a desire or a want for the product. A decision
to buy a product is taken after passing through different stages. Need recognition is the first
thing in the buying stages, which is followed by product awareness, interest, evaluation and
intention, source of information, purchase and post purchase behaviour. A decision to buy a
product of daily use may be taken in few seconds while the decision to buy a durable product
is taken after critical study of many factors. According to recent survey by FICCI, Indias
rapid economic growth has set the stage for fundamental change among the countrys
consumers. There is discernible shift in consumer preference in favour of higher-end and
technologically superior branded products. The demand is being spurred by increasing
consumer awareness and preference for new models. The changing dynamics of consumer
behavior reflects that luxury goods are now being perceived as necessities with higher
disposable incomes being spent on lifestyle products. A large number of domestic and
multinational companies are already competing in the market and the challenges would force
companies to be more dynamic to adapt the rapidly changing needs and incomes of the
consumers. In recent years, consumers have shown inclination for foreign goods and Indian
goods are also at par global standard.

A watch is a small timepiece intended to be carried or worn by a person. It is designed to


keep working despite the motions caused by the person's activities. A wristwatch is designed
to be worn on a wrist, attached by a watch strap or other type of bracelet. A pocket watch is
designed for a person to carry in a pocket.

Watches evolved in the 17th century from spring-powered clocks, which appeared as early as
the 14th century. The first watches were strictly mechanical, driven by clockwork. As
technology progressed, mechanical devices, used to control the speed of the watch, were
largely superseded by vibrating quartz crystals that produce accurately timed electronic
pulses. Some watches use radio clock technology to regularly correct the time. The first
digital electronic watch was developed in 1970.

Most inexpensive and medium-priced watches, used mainly for timekeeping, are electronic
watches with quartz movements. Expensive collectible watches, valued more for their
elaborate craftsmanship, aesthetic appeal and glamorous design than for simple timekeeping,
often have purely mechanical movements and are powered by springs, even though these
movements are generally less accurate and more expensive than electronic ones. Various
extra features, called "complications", such as moon-phase displays and the different types of
tourbillon, are sometimes included. Modern watches often display the day, date, month and
year, and electronic watches may have many other functions. Time-related features such as
timers, chronographs and alarm functions are common. Some modern designs incorporate
calculators, use GPS technology or have heart-rate monitoring capabilities. Watches
incorporating GPS receivers use them not only to determine their position. They also receive
and use time signals from the satellites, which make them essentially perfectly accurate
timekeepers, even over long periods of time.
he concept of the wristwatch goes back to the production of the very earliest watches in the
16th century. Elizabeth I of England received a wristwatch from Robert Dudley in 1571,
described as an arm watch. From the beginning, wrist watches were almost exclusively worn
by women, while men used pocket-watches up until the early 20th century.

Consumers Attitude towards Indian Vs Foreign Brands In a global market place, the
competing position of firms is determined by many factors. One critical consideration that
influences this position is the number of competing brands and their acceptance by
customers. The developed nations constitute the biggest markets in the world, which annually
import hundreds of billions of dollars worth of foreign products. In addition, there has been a
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proliferation of foreign brands that are manufactured or assembled and marketed in these
nations by local and foreign based firms. Customers everywhere can choose from a set of
brands that includes foreign manufactured or licensed products covering every conceivable
product category from food, toys, and apparel to automobiles, computers, and industrial
goods and many such brands have achieved enviable market positions. The marketing of such
large number of foreign brands leads to the issue of whether customers are sensitive to and
concerned about where products and brands are manufactured or originates. To measure the
attitude of consumers towards Indian vs. foreign brands in all fifty five attitudinal statements
on the basis of country of origin, product performance, consumer ethnocentrism and
considerations for foreign brands have been framed after their reliability test. Further mean
score has been calculated of each statement and the following observations have been made
INDIAN WRIST WATCH ORIGIN
50 million wristwatches are sold in India every year. Not withstanding the presence of global
players and the opening up of the market, the Indian market has always been dominated by a
single player. In the past, till the late 80s, in the mechanical era, HMT dominated the market.
And after that it has again been the domination of a single company, Titan. Today Titan has
almost 65% market share of the organized watch market in the country. The organized watch
market

itself

is

estimated

at

35%

of

the

total

industry

size...........

In value terms the size of the organized market is estimated at around Rs. 1500 crores, which
means that the average price of watches sold even today is less than Rs.1000!!!
Watches are typically segmented into specialist watches and fashion watches. All
International watch brands have a clear position as to where they belong. In India most sales
are in the fashion segment and this fine distinction has not yet been used by marketers. Male
watch buyers far outnumber females and account for around 65% of sales. Students are the
largest

segment

of

buyers

accounting

for

approximately

30%

of

the

sales.

Since penetration is still low and the unorganized sector big, this industry has a lot of scope to
grow both in value and volume. The jury is still out though whether the Indian companies
like Titan will lead this growth or the global majors like Seiko, Citizen etc. After all the
domestic players have hitherto grown because of a retail strategy and the wining global
players are clearly focused on product
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INDIAN WATCH

Sonata, by Titan, is the most loved, most admired and most preferred brand of wristwatches
in India at the moment. Most Indians feel the beauty and elegance of a Sonata watch on their
wrists. Sonata caters to people of all generations. The unique feature for which most Indians
love Sonata is that it provides watches for all occasions and festivities with a special touch of
thematic grace. The most preferred Sonata variant is the youth-centric Super Fibre Watch.

Titan

Titan is a major watch company that owns brands like Sonata and
Fastrack. Besides that, Titan manufactures models that are very famous
and admired across India like Aqura, Diva, Insignia, Raga and Octane
among others. Titan Watch Company is a subsidiary of Tata Group of
Industries.

Fastrack

Fastrack is a sub-brand of Titan that was launched in 1998 keeping in mind the Indian youth.
Fastrack is the urban youth's fashion watch brand. Fastracks unique and affordable designs
across various categories and segments ensure that it is going hand-in-hand with the urban
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youths demands and desires. It is one of the fastest growing fashion brands within the
country.

Timex

Digital watches are what Timex is most popular for. Timex is an iconic American heritage
watch brand that is renowned for its timeless designs. It is a perfect amalgamation of highend Italian designs and cutting-edge German engineering. It offers its customers quality
products across a large and varied line of watches for everyone. Its Intelligent Quartz
collection is primarily made for fashion-minded men who are interested in features like
chronographs,

fly-back

movements

and

night-light.

Maxima

Maxima produces designer formal watches for both men and women. It also has a special
couple collection. This is the reason why couples prefer Maxima when it comes to gifting a
beautiful present to their beloved. Maxima provides best of its variants between the price
slabs of Rs. 300 and Rs. 4,000. Apart from couple watches, Maxima offers affordable
watches specifically for men, women and children along with a special series of Uber
watches.
FOREIGN WATCH

Rolex

Rolex designs, manufactures, distributes and services recherch wristwatches. It is a luxury


watch brand that offers a unique combination of class, elegance, perfection, beauty and
serenity. It is one of the costliest watch brands in the world. It is a dream watch for most of
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the Indians and people around the world. Rolex is not the best-selling brand in India for the
sole reason that it is not affordable for most of the people.

Swatch

Swatch is a Swiss watch brand that has garnered praise, earned trust and gained fame in
India. A Swatch watch is available at affordable prices in almost every Indian city. People
from all classes and sections of Indian society admire Swatch and wear one on their wrists. It
is

one

of

the

top

10

best-selling

watch

brands

in

India.

Omega

The unique technology used in manufacturing Omega watches and their innovative designs
have won the heart of many Indians. Omegas watches are exquisite, masterpieces. Omega is
one of the very few brands that make watches capable of working in zero gravity. The James
Bond franchise has used Omega watches in many of its movies and thus, the franchise has
earned

much

of

the

fame

it

enjoys

today.

TISSOT
Tissot introduced the first mass-produced pocket watch as well as the first pocket watch with two time
zones in 1853 and the first anti-magnetic watch in 192930. Charles-Emile Tissot left for Russia in 1858
and succeeded in selling their savonnette pocket watches across the Russian Empire. The Tissot company
was also the first to make watches out of plastic (IDEA 2001 in 1971), stone (the Alpine granite Rock
Watch in 1985), mother of pearl (the Pearl watch in 1987), and wood (the Wood watch in 1988). [4]Tissot
merged with the Omega watch making family in 1930 and Tissot-Omega watches from this era are sought
after by collectors.

Tissot introduced its first tactile watch, with "T-Touch," technology in 1999;

watches containing this technology has a touch-sensitive sapphire crystals to control various

functions like compasses, barometer, altimeter and thermometer. The

latest models in the T-

Touch series. The T-Touch Expert Solar and T-Touch Lady Solar holds 25 functions

RATIONALE

LITRETURE REVIEW
IJRFM Volume 4, Issue 1 (January 2014) (ISSN 2231-5985) International
Journal of Research in Finance & Marketing http://www.euroasiapub.org 74

CONSUMER ATTITUDE AND PURCHASE BEHAVIOR


TOWARDS FOREIGN BRANDS
The country of origin effect (COO) has received considerable attention in international
marketing research. Studies have found that COO information has stronger effects in less
developed countries compared to developed countries. So, in order to develop effective
marketing and communication strategies within and across national boundaries, marketers
needto understand varying attitudes and perception of consumers towards products of clearly
identifiable country of origin. In determining perception and attitude relevant to consumer
acceptance of national and international goods and services, it would be extremely helpful for
marketers to have meaningful and consistent measures that they could apply to various
markets. To understand the effects of brand image and country of origin, researchers and
marketers should be familiar with the buying behaviour of consumers. In fact perceived risk,
experience, price and brand loyalty are the most important influence of purchasing decisions.
This creates the opportunity for companies to increase the market share and profit if they
have choices and innovative products. With this perspective the present study is a modest
attempt to know the attitude of consumers towards Indian and Foreign brands which would
help marketers to understand the buying behavior of consumers and to formulate an
appropriate marketing strategy.

Shimp & Sharma (1987)

developed CETSCALE to measure the construct of

consumer ethnocentrism, and in a study of American consumers, they showed that


ethnocentric tendencies are significantly negatively correlated with attitude towards foreign
products and significantly positively correlated towards domestic products. These findings
have been replicated by Netemeyer, Durvasula & Lichtenstein (1991) on a crossnational sample of Western European and Japanese consumers. However, in these studies
respondents evaluated products from different developed countries that were largely
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comparable with respect to quality. The former Eastern bloc countries are quite different from
the western markets. In these countries, western products tend to be preferred to domestic
products due to their superior quality. For example
,

Papadopolous, Helsop & Beracs (1990)

found that Hungarians generally

evaluated western products more positively than national products. Similar findings have
been reported for polish and Russian consumers (Ettenson 1993, Good & Huddleston
1995). Further a study of Australian consumers revealed that when a locally made product
was perceived to be of inferior quality to the imported products, consumers generally
preferred the imported products (Elliot and Cameron 1994).

Kyanak & Kara (2002)

investigated the product Country

images, lifestyles and ethnocentric behaviors of Turkish consumers. They


found that Turkish consumers had significantly different perceptions of
products attributes for the products coming from countries of different
levels of socio economic and technological development. It lent support to
earlier studies conducted inwestern countries and also indicates the
robustness of ethnocentrism scale which was developed in USA to
measure attitudes in advanced developing countries. Also results of the
study revealed that there were several lifestyle dimensions apparent
among

the

Turkish

consumers,

which

were

closely

correlated

to

ethnocentric biases.

Lee & Simon (2006)

analyzed how consumers perceptions on

the quality of products are influenced by the marketing appeals of multinational firms and by the country of origin effects. They presents finding
derived from country of origin effect, corporate images, and its brand
image and purchase intention survey conducted in Almaty, Kazakhstan,
considered being a developing countries and transition economies. The
findings suggested that the attitudes of consumers towards country of
origin and corporate image exert a great deal of influence on their
perceptions of product quality and purchase behavior, the effect of certain
country image appeals on the purchase behavior and moderated by socioeconomic and national cultural characteristics.

Wrist Watches form an integral part of the personality of individuals in the present era.
Earlierseen as a luxury item, they are now witnessing a fundamental change in perception,
and are nowgaining respect as an essential utility item. For the watch industry, time seems in
its favor whatwith the liberalization of the Indian market coupled with the rising purchasing
power of theyoung and consumerist Indians. Asia-Pacific remains the fastest growing
regional market, withdollar sales of watches and clocks waxing at CAGR of about 3.6% and
4.2% respectively overthe analysis period. By product, Luxury watches remains the largest
segment in the globalwatches market. Mass-priced watches represents the fastest growing
watches segment, waxing ata CAGR of about 2.6% over the analysis period .
Indian watches market was for long dominated by public sector organizations like Hindustan
Machine Tools Ltd. (HMT) and Allwyn (also famous for its refrigerators once upon a time!),
and has now left the pioneers far behind or nowhere in market by private sector enterprises
likeTitan, Sonata, Ajanta and Timex along with foreign entities jostling for display space in
thesmallest of shops selling these products.9Before the establishment of HMT as the
dominant player in the Indian markets initially, the country was solely dependent on imports
to meet the internal demand. However, establishment of HMT as the leading player in the
wrist watch segment in the 1960s, changed the scenario. In post liberalization India, the
market stood to witness intensive competition between foreignand Indian manufacturers like
Timex, Titan, Movado, Longines, Rado, Rolex, Frderique Constant, Mont Blanc, Swatch,
and many others. Many watch makers have made significant inroads in the industry and
others are in the process of establishing themselves, currently .Besides this, buyers are
extremely choosy about the brand and type of wrist watches they wear .Being extremely
brand conscious, their tastes have evolved over the years and have gone beyond the realms of
durability to choose in terms of aesthetics and elegance. Thus it is a buyers market with
multitude of designs that have entered and flooded the market place.
The size of the watch market currently is estimated to be around 40 to 45 million piece
annually. The organized sector alone contributes up to 30 percent of this figure, and the rest
of 10 the demand is being met by the unorganized grey sector. This data is significant indeed
in view of the socio economic distribution of the Indian populace. More than 58 percent of
the population is under twenty five and more than 80 percent of the population is below 45
years of age. In dollar terms, the estimated annual market size is around USD 195 million,
despite the fact that the penetration of watches is the lowest, compared globally. Looking into
this fact and the long standing Indian tradition of comparing watches with jewellery and other
traditional items, many watch companies are interested in setting up base in India. The
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average growth in the size of the market is slated to be around 10 -15 percent per year. A
casual study of the watch market reveals that it is segmented on basis of multiple proportions
such as price, benefits and types of watches. The price of the watches is a major motive in the
minds of the customer. Accordingly, three segments can be identified here, namely low
priced, medium priced, and high priced watches. The lower priced segment consists of
watches priced less than INR 500; the medium price range consists of watches in the INR
500-1500 range and the high priced watches come in the INR1500 upwards range. There are
other higher categories as well such as the premium and luxury range, but they appeal to only
a small category of the watch market in India. According to a recent study, more than 90
percent of the watches were from the lower price ranges with international costs being less
than 20 euros. Moreover, around 20 to 25 watches arebeing sold for every 1000 citizens. Thus
there is enormous potential for growth of the industry in this untapped segment. Some
customers look out for features like fashion appeal, technology, sophistication and status.
Others go for durability, economy and precision. Many customers prefer mechanical and
automatic watches, while others prefer quartz watches. Newer segments are also on rise such
as ladies watches, childrens watches and gents watches. Customers usually base their
preferences and buying decisions on a variety of factors like price, durability, utility, aesthetic
appeal and brand name. A combination of all these points ultimately forms the customers
buying decision that translates into the purchase of a watch.

OBJECTIVE
To identify the factors influencing the consumer preference for Indian & foreign
watch.
To compare the consumer preference for foreign watch & Indian watch.

RESEARCH METHODOLOGY
Nature of Study:The proposed study will be exploratory in nature and during the study we explore various
factors A Comparative Study of consumer preference Towards Indian watch and foreign
watch that affect
Research type

:-

Population

:- All the citizens in Indore city using watch.

Sample design

:-

Non probability convenience sampling will be used.

Sampling area

:-

Indore.

Sample size

:- 200

Research unit

:-

Tools for data collection

:- Self designed Questionnaires .

Tools for data analysis

:-

1. Pie chart
2. Z-test used

Primary data based through questionnaires.

Indore city.

EXPECTED OUTCOMES
By conducting this research the researcher is able to understand that people are become
bolder and more adventurous in terms of the style of watches and colour they choose and now
Indian consumer have become far more assertive about the brand and type of watches they
want although they remain more apprehensive about colours. And today people not use for
watch only just time but they have also use just like jewellery.

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