A SUMMER TRAINING REPORT

ON

A STUDY OF THE TRENDS AND GROWTH OF CONSUMER

FINANCE IN THE DURABLE GOODS INDUSTRY
IN

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

TRAINING SUPERVISOR SUBMITTED BY

(SALES MANAGER) ENROLLMENT NO.

SESSION 2006-2009

GURU JAMBHESHWAR UNIVERSITY

HISAR
 ACKNOWLEDGEMENT

The present work is an effort to throw some light on A Study of the Trends and
Growth of Consumer Finance in the Durable Goods Industry In Samsung India
Electronics Ltd. The work would not have been possible to come to the present
shape without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance

received by my organizational guide Mr. Sushil Gulati (Sales Manager) and other
staff members.

I convey my heartful affection to all those people who helped and supported me
during the course, for completion of my Project Report.

COURSE BBA
Enrolment No. :

2
 EXECUTIVE SUMMARY

The training at Samsung India Electronics Ltd has been undertaken in partial
fulfillment of the curriculum for BBA. The training gives the students a first hand
knowledge of the policies and the principles adopted in actual practice by the
companies. Theoretical knowledge is easily available from the text books and class
room lectures but it is such training that exposes the students to the practical side of
the theories.

The training has been arranged over a period of two months and gave an opportunity
to gather information and knowledge of the Finance and Account department with
special reference to the topic consumer finance. The information gathered and the
details collected through discussion with the various officials have been presented in
fourth chapter in this report.

3
 TABLE CONTENT

S.No. TOPIC NAME

1. INTRODUCTION 1
2. RESEARCH METHODOLOGY 12
3. COMPANY PROFILE 16
4. CONCEPTUAL FRAMEWORK 30
5. DATA ANALYSIS & INTERPRETATION – 36
CUSTOMER
6. DATA ANALYSIS & INTERPRETATION – 55
DEALERS
7. FINDINGS 67
8. SUGGESTIONS 68
9. CONCLUSION 69
10. ANNEXURES 70
11. BIBLIOGRAPHY 82

4
 INTRODUCTION

1.1 OVERVIEW OF THE INDUSTRY

ELCINA Electronic Industries association of India (formerly electronic component
industries association) was established in 1967 when India's electronic industry was
still in its infancy. Elcina has always remained committed to the promotion of
electronics manufacturing culture in the country focusing on components-the building
blocks of electronics industry.

guidelines for the semiconductor policy issued: the government on 14th sept/07 issued
guidelines for the semiconductor manufacturing policy, which will enable companies
to roll out their investment plans. The guidelines define FAB unit, eco-system unit,
state-of-the-art technology, net present value (NPV), financial closure, capital
expenditure and threshold limit for companies to apply for the special incentive
package. under the package, a company investing $550 million for a FAB unit and
$220 million for other products such as micro and nanotechnology products, will be
eligible for incentives up to 20% of capital expenditure during the first 10 years if unit
is in an sez and 25% if it is located outside an sez. to avail the sops, investors would
have to submit proposals, along with a feasibility report, to an appraisal committee,
chaired by the additional secretary in dit, after paying a non-refundable application
fee of rs.25 lakhs. According to the guidelines, only technologically sound projects
would be eligible for the package and investors who can attract further upstream or
downstream investments would be encourages. Investments made before the date of
receipt of applications and investment in land made more than six months before the
date of receipt of application shall not be considered for calculation of capital
expenditure. While the appraisal committee would, on the basis of the material and
advice available on record, make recommendations to the central government,
approval of the project under the package would vest with the government.

Companies planning FAB plants (factories to produce raw silicon wafers with chips)
for the electronics industry and solar photovoltaic (for solar energy generation)
projects can now formally apply for concessions under the policy. As per the

1
guidelines now issued, companies like semindia, hsmc, signet solar and moser baer
etc. are going ahead with their investment plans already announced. according to it
advisory firm gartner, the total electronic equipment production in India will reach
$32 billion in 2011, compared with $14 billion in 2006, a cagr of 18%. semiconductor
consumption in India will more than double from $2.8 billion in 2006 to $7.2 billion
in 2011.

Duty-free scrips may replace depb: in a move that could boost profitability of
exporters, the government is considering issue of duty-free scrips to offset various
state-level taxes. The levies include sales tax on petroleum products, cst, electricity
duty, octroi, mandi fees, purchase tax, development tax and toll tax. The commerce
ministry, in a cabinet note on the proposed replacement for depb scheme, has also
recommended that the education cess and similar levies should also be neutralized
through the proposed duty-free scrips, which can be used by exporters to pay customs
duty on imported inputs. Exporters could save up to 4% of the value of their exports
through the new instrument and this would provide a much-needed boost at a time
when the rising rupee has made competition stiffer in the global markets. The
drawback scheme currently offers cash reimbursement to exporters for taxes paid by
them to the centre, such as customs or excise. The commerce ministry feels a
constitutional amendment should be carried out to facilitate reimbursement of state-
level taxes. Then the depb scheme could be wound up, introduce duty free scrips and
drawback could function as a single window facility. The new system, if cleared,
would be in operation till march 2010. If GST is introduced by 2010, there will be no
need to reimburse state taxes separately.

Finance ministry brings down customs duty on LCD monitors and digital
cameras by changing classification: a change in classification of gadgets and comper
peripherals by the government will make digital cameras and lcd monitors cheaper by
at least 10%. The finance ministry has issued a circular, relenting to the long demand
of the it industry, to classify LCD monitors as "computer monitors" (rather than TV)
and digital cameras as "still image cameras" (rather than video camcorders). It will
bring down the customs duty on these products from 10% to zero. LCD monitors
were earlier classified as LCD TVS, which attracted a 10% customs duty in contrast

2
to LCD monitors which attract zero customs duty. A 16% excise/CVD, however,
remains common across both products.

Govt allows duty refund of 4% additional customs duty on electronics : the

finance ministry has notified a scheme to refund the 4% additional customs duty paid
on imported goods like electronic items, which is expected to make such imports
cheaper. Trades who import goods for sale have to pay both sales tax and the
additional duty, a sort of double taxation. Prior to this, the effective tax liability,
including basic customs duty on imported goods, was around 34%. The finance
ministry has now said that traders/importers will get a refund for the 4% duty paid
with effect from 14th sept/07, after submission of necessary documents like proof of
payment of sales tax/vat/invoices of the sale of imported goods etc.

Fresh customs valuation norms in step with WTO : reflecting changes in the
international economic scenario, the finance ministry on 14th sept/07 notified the new
customs valuation norms. the new rules, which will be used to calculate the customs
duty on for both imported and exported goods, are copletely different from the
existing provisions and have introduced varied valuation norms for various kinds of
imports and exports. These rules will replace existing provisions of 1988 and comes
into force from 10th Oct., 2007.

ESC seeks extension of tax sops beyond march 2009: In an attempt to help the small
and medium enterprises, the electronic and software export promotion council (esc) is
lobbying for extension of tax sops beyond march 2009. According to Mr. Sanjiv
Narayan, chairman, esc, about 12,000 SMES in software and electronic hardware
sectors will be impacted with the impeding removal of tax sops for STPI registered
firms in march 2009. Mr. Narayan further said that withdrawal of tax benefits under
section 10a and 10b will affect the headstart that Indian companies have gained
especially the SMES. Esc wants sops to be extended for at least five years.

semiconductor policy guidelines to be announced soon : according to a source in the

ministry of it, the much awaited guidelines on the semiconductor policy, expected to
bring in investment worth billions of dollars, is likely to be announced soon. The
guidelines would help Intel, Siemens, Texas, Videocon, Moser Baer and others to
firm up their plans to set up semiconductor manufacturing facilities in India.

3
Finance ministry may make extra duty drawback automatic: exporters hit by the
appreciating rupee may not have to file supplementary claims to get the additional
benefit of the increase in duty drawback rates. The finance ministry is likely to
disburse the benefits through an automatic mechanism, a move that will save time and
reduce transaction costs for exporters.

DEPB rate hike to be reviewed : the hike in the DEPB scheme announced by the
commerce ministry in July 2007, is being reviewed after stiff opposition by the
finance ministry. The review is to be completed in three weeks.

Mixed bag in TRAI review of telecom licensing norms : in a comprehensive review of

telecom licensing norms aimed at dismantling barriers to competition, the telecom
regulatory authority of India (TRAI) on 29th aug/07 suggested the following:

licensee to be allowed to acquire 20% stake in rival operator within the same circle
removal of the current 15 mhz spectrum cap on the merged entity number of telecom
service providers in a circle left uncapped clearance upto 10% acquisition automatic,
beyond that on case-by-case basis combined market share of merged entity to be 40%,
down from present 67% operators to pay one time charge for additional spectrum
beyond 10 mhz

notifications:

Policy circular no.04 (re-2007)/2004-09 dt. 16th aug/07 : transitional arrangements

under para 1.5 of foreign trade policy, 2004-2009.

TRAI to dial for unlimited mobile players : in its next stage of licensing reforms,
which will determine the future of Indian Telecom, the telecom regulatory authority
of India (TRAI) is set to recommend removal of cap on the number of players,
allowing both CDMA and GSM services under the same licence, and easing of
merger and acquisition norms. TRAI's recommendations may come under severe
criticism from the GSM players and will further open up the world's most competitive
telecom sector

Duty on ICs chipped to zero to check Chinese imports: Through notification dated 8th
aug/07, the government, in a damage control exercise, has reduced the duty on ICs
from 4% to zero. With a high central value added tax (CENVAT) overflow, most
motherboard manufacturers in India had started importing motherboards from china

4
and stopped manufacturing them in India. The notification aims to stop that. ICs are
used in every electronic device - TVs, mobile chipsets, pc motherboards, TV set top
boxes, modems etc. and make about 55-70% of the manufacturing cost of these items.

FICCI seeks more sops for exporters : concerned about the recent slowdown in
exports, FICCI has sought enhanced relief package for exporters to counter the impact
of rupee appreciation. The package proposes inclusion of more products for relief,
enhancing duty drawback/depb rates from 3% to 5%, reducing interest on export
credit to below 5%, increasing value caps, allowing conversion of shipping bills,
announcing a package for Eous against free shipping bills and income tax incentive
for exporters.

RBI announced first quarter review of its monetary policy 2007-08 : unveiling the
first quarter of its monetary policy for 2007-08 on 31st july/07, RBI kept key rates
unchanged, but hiked bank's cash reserve ratio (crr) by 50 basis points at 7% and
removed the rs.3,000-crore cap it had on daily reverse REPOS under its liquidity
adjustment facility. Both the operations rates - the REPO and reverse REPO - kept
unchanged at 7.75% and 6% respectively. the measures announced by the RBI
governor were aimed to manage the excess liquidity in the system and keep inflation
in check.

Central excise notification no.31/2007 Dt. 19th July, 2007: amendment in notification
no.6/2006-central excise dt. 1st march, 2006, adding 'recorded smart cards' and
recorded proximity cards and tags' to the entries after sl.no.22.

New DEPB scheme by November 2007 : during a recent CII conference, the director
general of foreign trade, Mr. R.S. Gujral said that the new DEPB scheme was likely to
be out by November, 2007.

DEPB, duty drawback benefits likely for SEZS, Eous too : exporters in Sezs and Eous
are also likely to be given the DEPB and duty drawback benefits, given out by the
government to other exporters recently, to offset the losses incurred due to the rising
rupee.

2g spectrum policy to be formulated in few months along with allocation plan for 3g
services : according to the department of communications, the 2g spectrum policy will
be formulated along with the spectrum pricing and allocation for 3g services. of the

5
42.5 mhz spectrum, 25 mhz will be set aside for 3g services. the policy is expected in
the next few months, around the time the defence forces vacate 42.5 mhz of spectrum.
the move is part of communications and it minister a raja's attempts to solve the
spectrum issue comprehensively.

Notifications:

Notification no.68/2006-cus (nt) dated 16.7.2007 and customs circular no.25/2007

dated 16th July, 2007…..regarding all industry rates of duty drawback, 2007-08

Public notice no.17(re-2007)/2004-2009 dated 12.7.2007 and public notice no.18 dt.
13.7.2007 - new depb rates effective from 1st April, 2007.

Customs circular no.24/2007 dt. 2.7.2007 - delay in payment of customs duty refunds.
Re-hit exporters get Rs.1,400 exporters get rs.1,400 crore package : on 12th July,
2007, the government doled out a rs.1,400 crore-a-year relief package, hit by a sharp
appreciation of the rupee. The package includes interest rate relief, adjustment of duty
drawback rates and reimbursement of export claims. Drawback rates have been
increased on most items and some more items have been added to the list effective
from 1st April, 2007, which have undergone significant changes in line with changes
in the price of inputs and duties. Except the revised drawback rates, all other measures
are temporary in nature to bail out exporters.

VAT on cfls set to be cut to 4% : compact fluorescent light (cfl) bulbs may turn
cheaper soon as efforts are on to reduce the value added tax (vat) on these energy-
efficient products to 4%, a formal proposal for which may be submitted to the group
of state finance ministers on vat, in several states, 12.5% vat is charged at present,
while Haryana and Punjab have already reduced the rate to 4%.

Govt plans to slash custom tariffs in step with asian rates: as a part of government's
long term agenda to bring the country's customs tariffs in step with the asean levels, it
plans to not only to cut down the present peak rate of 10%, but will also reduce duty
on raw materials and intermediaries below the present rates of 5% and 7.5%. at
present, india has an average industrial tariff of 9.4%, which is much higher than the
asean's average rates - 6.3% in philippines, 6.9% in indonesia and 8.4% in malaysia.
the cut in duty rates is likely to be accompanied by a reduction in the dispersual of
duty rates as well. the move is to make the country more competitive in terms of

6
investment and exports and also to help contain inflation if and when it happens
again.

Semiconductor policy norms to be issued early july 2007 : the guidelines relating to
the proposed semiconductor policy, which was notified earlier, are likely to be issued
early in july 2007 with the ministry of communictions and it forwarding the same to
the finance ministry for its nod. the ministry of it has already set up an appraisal
committee headed by the addl secretary of dit. this committee will receive expressions
of interest from investors and submit its recommendations to the government for its
approval.

Indo-thai fta on goods to be reality by sept/07 : according to the commerce ministry,

shri kamal nath, talks on indo-thai fta on goods will start in july and finish by
september, 2007. the two countries are on track to conclude an fta in the near future to
establish the fta covering trade in goods by 2010.

Drawback, depb rates may be hiked to help exporters : the finance ministry is
considering a suggestion by the commerce ministry to enhance duty neutralization
rates to make up for the revenue lost by exporters due to sharp appreciation in the
rupee. according to federation of indian export organisation (fieo), the commerce
secretary, mr. g.k. pillai had informed them about serious discussions initiated with
the finance ministry and the rbi for enhancing depb and drawback rates to 4-5%.
another proposal to compensate exporters is that they may be paid interest on their
export earners foreign currenty account at par with what the foreign currency non-
resident holders get.

Framework for gst regime likely by oct 2007 : the government is likely to come up
with a framework for introducing goods and services tax (gst) mechanism by october
2007 when the joint working group of state and central government officials will
submit their report. the panel has decided to call experts, academicians and industry
chambers to discuss various models of gst and come up with suitable model.

trai paper seeks reviewal of licensing : the telecom regulatory authority of india (trai)
has released a consultation paper seeking the industry's view on reviewing existing
licensing conditions and capping the number of service providers per circle. according
to this consultation paper. according to the paper, trai has hinted on the need to limit

7
the number of operators per circle. at present, trai provides licences based on
availability of spectrum. the paper also seeks a change in the existing mergers and
acquision policy. currently, no single company can hold more than 10% in another
operator in the same service area.
Finance Minister tables Economic Survey for 2006-07 : The Economic Survey for
2006-07 tabled by the Finance Minister in Parliament on 27th Feb/07 indicates an
average growth rate of 8.2% in the last three years and is estimated to grow 9.2% in
the current fiscal. But the high growth has sparked concerns of overheating in light of
a rise in inflation since mid-2006 to 6.63% in the second week of Feb/07. The Survey
says there is no quick fix to tackle rising prices. The Economic Survey also predicts
that India is likely to have 650 million telephone connections, including 66 million
wired and 584 million wireless, by 2012.
Highlights of Railway Budget 2007-08 : The Railway Minister, Mr. Lalu Prasad,
presented the Railway Budget for 2007-08 on 26th Feb/07 with an estimated cash
surplus of Rs.20,063 crore in the current fiscal, up 55% from the previous fiscal, and
Rs.5363 crore more than the Budget estimate. Some of the salient features of the
Budget include freight reduction in 5-6 per cent range for key items like petroleum
and iron ore, discount on loading empty trains hiked to 30% from 20%, freight rates
mostly unchanged, 3-decker container trains planned, 15 private container licences
issued, reductions in passenger fares, especially for AC travelsetc
Notifications:
Customs Notification No.16/2007 dt. 21st Feb/07 - Amendments in Customs
Notification Nos. 113/2003 dt. 22.7.2003, No.45/2005 dt.16th May, 2006 and
No.20/2006 dt. 1st March, 2006.

Semiconductor Policy announced, aims at $10 billion investment : In a move that is

perceived as a partial victory for the high-tech manufacturing in India and expected to
attract investments of over $10 billion, besides generating employment, the Central
Government on 22nd Feb/07 announced a host of incentives in its much-awaited
Semiconductor Policy. Salient features of the Policy:

20% of capex during first 10 years if unit inside an SEZ, and 25% if outside an SEZ

8
Minimum investment in fab plants is Rs.2,500 crore, and in ancillary plants Rs.1,000
crore

Government participation limited to 26% of the project's equity

Incentives not extended to older plants with second-hand equipment

Incentives will be tax concessions, interest subsisides and interest-free loans. The
policy covers LCDs, plasmas, storage devices, solar cells, photo-voltaics and
nanotechnology products and includes assembly and testing of these products. The
domestic market for electronics goods is expected to reach $363 billlion by 2015 and
the domestic demand for semiconductors alone is predicted to touch $43 billion.
SemIndia is expected to pump in $3 billion into semiconductor manufacturing, others
such as Intel are yet to take a decision on whether to invest or not, soon. A group of
silicon valley NRIs are planning to set up a joint venture in India (Hindustan
Semiconductor Manufacturing Corpn) with an investment of $4.5 billion in
semiconductor manufacturing. According

We have already seen smart garments boast fashion items such as integrated MP3
players and mobile phone keypads. That’s impressive, although the magic is
performed with copper wires, added after garment manufacture.

The next generation of gifted garments will get their brains from conductive
polymers, a special class of organic polymers capable of conducting electricity. But
like the human brain itself, this functionality is fragile.

As these garments repeatedly stretch and flex, particularly during wear and machine
washing, the fine polymer filaments can break, cutting the vital circuits.

A scientific challenge:-

Working with the university of wollongong’s intelligent polymer research institute,

Dr Mark Looney and Mr Peter Waters at CSIRO have now found a way of
‘seamlessly’ integrating conducting polymers into the structure of textiles.

9
The process results in a firm bond between the conducting polymer and the fabric. Dr
Looney says the electronic circuitry is tightly integrated into the fabric, make it quite
resilient.

The process is also versatile. ‘we can treat individual fibres, and then knit or weave
conductive designs or patterns into the textiles with standard processing systems and
machinery. Or we can treat made-up garments.’

Either way, the embedded electronic functionality is more durable and stable, even
surviving the knockabout world of machine washing.

Our patented technology enables us to seamlessly integrate electric functionality into

textiles.

Mr Peter Waters,

CSIRO textiles produced by the new process have potential to incorporate an array of
communication devices, and act as sensors for temperature, strain, pressure, humidity,
and chemical bio sensing.
These might also be used as barriers to electromagnetic radiation, as anti-static
treatments, and for heating and cooling.

1.2 COMPANY PROFILE

SAMSUNG GLOBAL
 The Samsung Group is composed of numerous SOUTH KOREAN
BUSINESS sectors including SAMSUNG ELECTRONICS and SAMSUNG
LIFE INSURANCE. It was founded by Lee Byung-chul. At the core of it all, the
Samsung Group is helmed by its chairman KUN-HE LEE.
 Samsung Electronics is a global leader in semiconductors,
telecommunications, digital media and digital convergence technologies with
2004 parent company sales of US$55.2Bn and net income of US$10.3Bn.
Employing approx. 113,000 people in over 90 offices in 48 countries
 It has been also recognized as ‘The Fastest Growing Global’ brand, by Business
Week/Interbrand and is ranked amongst the top technology leaders in the world.

10
  It makes many kinds of consumer devices, including DVD players, big-screen
televisions, and digital still cameras; computers, color monitors, LCD panels, and
printers; semiconductors such as DRAMs, SRAMs, and flash memory; and
communications devices ranging from wireless phones to networking switches.

 The company, which is the flagship member of Samsung Group, also makes
microwave ovens, refrigerators, air conditioners, and washing machines.

MISSION & VISION

“BE THE DIGITAL e COMPANY BY LEADING THE DIGITAL

CONVERGENCE ERA”
Samsung Electronics aims to be a true leader in the 21st century era of digital
convergence.
To achieve this goal, the Company is continuously developing technologies that will
improve people's lives and wellbeing while at the same time pursuing the Green
Management program as the centerpiece for the Company's sustainable growth.

STRATEGIES ADOPTED BY THE COMPANY

11
To achieve the mission and vision of the company, Samsung is adopting the following
strategies:
♦ Samsung Electronics continues to advance in this fast-faced market by developing
new products and technologies befitting the 21st century. One of these new
technologies, for example, allows the production of slimmer electronic goods
through function integration.
♦ The Company is working hard to establish new paradigms for sustainable
profitability.
♦ Samsung Electronics is striving constantly to create technologies that will enrich
people's lives, following its management philosophy that stresses the importance
of respecting all people and taking care of shareholders, customers, communities
and the environment.
♦ Samsung has an ongoing R&D program that is generating innovative technologies
that put the Company at the forefront of the digital convergence revolution. These
technologies enable the Company to create products and provide services that help
make people's lives more comfortable while adding greater value to life itself.

CORPORATE PRINCIPLES
To realize the Samsung Values: People, Excellence, Change, Integrity, Co-prosperity,
the organization pursue following business principles:
♦ Comply with laws and ethical standard
I. Respect the dignity and diversity of individuals incomplete fairly;
complying with laws and business ethics
II. Maintain accounting transparency by keeping accurate records
III. Do not intervene in politics and we maintain a neutral stance on all
political issues

KEEP CLEAN ORGANIZATIONAL CULTURE

1. Draw a strict line between public and private affairs in all business activities
2. Protect and respect the intellectual property of the Company and others.
3. Create a healthy organizational atmosphere
Respect customers, shareholders and employees

12
 I. Value customer satisfaction the top priority in the business
Activities
ii. Focus on shareholder value
iii. Endeavor to improve employees' quality of life.
♦ Care for the environment, health and safety.
i. Engage in environmentally friendly management practices
ii. Value human health and safety
♦ Always being a Socially Responsible Corporate Citizen
i. Actively perform our duties as a corporate citizen
ii. Respect the characteristics of local custom, culture, and
Society, and strive to prosper together with local
Community’s
iii. Build win-win relationships with business partners.

GLOBAL NETWORK
Samsung is operated in 57 countries with 130 subsidiaries of branches with 1500
expatriates. It’s global R&D hubs are located in London, Moscow, Israel, Beijing,
Korea (4), Japan (2), US (2) & India
The Samsung Electronics Headquarters is located in Korea, along with various
operations at eight other domestic locations. The overseas network consists of 27
production subsidiaries, 37 sales subsidiaries, 2 logistics subsidiaries, and 11 research
centers. There are eight Regional Headquarters that cover, respectively, North
America, Central & South America, Europe, China, the former CIS, Southeast Asia,
Southwest Asia, and the Middle East & Africa. Samsung boasts all the competencies
befitting a truly global enterprise, conducting regional-specific R&D and marketing
activities as well as providing services tailored for specific regions

13
Most Samsung Electronics products are manufactured at more than one location, and
they are sold worldwide. Furthermore, the Company holds the top share of the world
market for TVs, VCRs, monitors, DRAMs, SRAMs, flash memory, LCD driver ICs,
and CDMA mobile phones.

SAMSUNG ELECTRONICS- AREA OF BUSINESS

Digital Digital Semiconductors LCD Telecommunications

Media Appliances Network
Visual System Memory Color Mobile
Display Appliances* TVs Communications
(GSM & CDMA)
Digital Living System LSI Color Telecom Systems
Video Appliances** Monitors

14
Systems

Computer Optical Media Fiber-Optics

Systems Solutions
Digital Storage Systems
Printing

• * SYSTEM APPLICIANCES – REFRIGERATORS AND

AIRCONDITIONERS
• ** LIVING APPLICIANCES – WASHING MACHINES AND
MICROWAVE OVENS

TRANISITION PHASE IN SAMSUNG

Samsung began its journey of success in 1938 from Korea.
IMPORT SUBSTITUTION INDUSTRY
1938 - Samsung General Store (now, Samsung Corporation) established in March,
1938 in Daegu, Korea as a Trading & Manufacturing company (noodles, breweries,
dried fish, vegetables, etc.)
1950s - Diversification into Modern Manufacturing & Financial Businesses, through
establishment of “Cheil Sugar” (1953) & “Cheil Industries” (1954)
KEY INDUSTRIES
1963 - Diversification into Fire, Marine & Life Insurance through acquisition of
Anguk Fire & Marine Insurance (now, Samsung Fire & Marine Insurance) and
Dongbang Life Insurance (now, Samsung Life Insurance)
1964 - Establishment of Korea Fertilizer (now, Samsung Fine Chemicals)

15
1966 – Establishment of Joongang Development (now, Samsung Everland)
1969 – Establishment of Samsung Electronics Corporation (SEC) in December, 1969
ELECTRONICS HEAVY CHEMISTRY EXPORTS
1970s – Foray into heavy chemicals, construction, petrochemical &ship-building
industries
1974 – Acquisition of 50% stake in Korea Semiconductors, further consolidating
Samsung Electronics’ reign as a leader in Semiconductor manufacturing
1978 – Samsung Semiconductors & Samsung Electronics became two separate
entities, as new products were introduced into the global market
HI-TECH BUSINESS
Increasing diversification & global growth of Samsung’s core technology business
1986 – Samsung Economic Research Institute (SERI) & Samsung Advanced Institute
of Technology (SAIT) established.
These 2 R&D organizations have further helped Samsung expand its reach in
electronics, semiconductors, high polymer chemicals, genetic engineering, optical
telecommunications, aerospace and new fields of technology innovation from nano
technology to advanced network architectures

16
1995- SAMSUNG INDIA ELECTRONICS ESTABLISHED…

SAMSUNG INDIA ELECTRONICS

Samsung India is the hub for Samsung’s South West Asia Regional operations. The
South West Asia Regional Headquarters looks after the Samsung business in Nepal,
Sri Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India which
commenced its operations in India in December 1995, today enjoys a sales turnover of
over US$ 1Bn in just a decade of operations in the country.
BRIEF HISTORY

1995: Initially, SIEL was present only in the Color Television segment, through
contract manufacturing for Videocon as an Original Equipment Manufacturer (OEM).
1999: there was diversification into production of color monitors.SIEL has got
SAMSUNG QUALITY AWARD for color monitors and color technology plants.
2002: Software Technology Park set up for Digital Visual Display Products at the
manufacturing complex in Noida.
2003: It has diversified into the area of production of refrigerators.
2004: SIEL appointed as the regional hub for SEC’s South West Asia operations .

17
AREA OF OPERATIONS-SIEL

Consumer Electronics Home Appliances (HA) Information Technology

(CE) Division Division (IT) Division
Televisions Refrigerators Note PCs
Home Audio Players Washing Machines Hard Disc Drives
Digital Audio Players Air Conditioners CD/DVD ROMs
Home Theater Systems Microwave Ovens CD/DVD Writers
Digital Still Cameras Computer Monitors
Camcorders Laser Beam
Printers/Laser-based
Multi-function Printers
CD/DVD Players Fax

BRAND VALUE
Brand Samsung today enjoys an awareness of over 95% and a positive opinion of
around 80% in the country today (source: BAS 2004).

Ranked 20th in the World, $15 Billion (Interbrand, 2005)

- Dell (21st), Pepsi (23rd), Sony (28th).
- Selected as the fastest growing “Winner Brand” for two
consecutive years (2002 & 2003).- SAMSUNG brand value more than doubles
in three years - leading

GROWTH AMONGST TOP 100 GLOBAL BRANDS.

BRAND VALUE BY EACH YEAR

18
Year Value Rank
2001 $ 6.4 Bil. 42nd
2002 $ 8.3 Bil. 34th
2003 $ 10.8 Bil. 25th
2004 $ 12.5 Bil. 21st
2005 $ 14.5 Bil. 20th
2006 $ 17.5 Bil. 19th

CREATING BRAND VALUE BY ENRICHING RETAIL

EXPERIENCE
● The Samsung Brand shop network
complements the over 8500 retail points for Samsung products located across the
length and breadth of the country. Samsung plans to continue enhancing its
penetration levels in the country to reach out to more and more Indian consumers
● To display Samsung products in a more
lifestyle ambience and to communicate the product benefits in a more interactive
manner, Samsung India has set up a widespread network of Samsung Digital
Worlds, Digital Homes and Digital Plazas all over the country.

SOCIAL CONTRIBUTION
Samsung strongly believes that business has a defining role in building
Communities; thus, contribute to the society they work in.
♦ Samsung DigitAll Hope – a social program that aims to bridge the gap and
narrow the divide between the ‘computer literates’ and the ‘computer illiterates’
♦ “Hope Incubator Project”, by Development Alternatives, a Delhi based NGO - to
help young first time entrepreneurs successfully run their own business.
♦ “Empowering Disabled People through Education and Employment”, by the
National Centre for Promotion of Employment for Disabled People (NCEPDP).
♦ Sponsor of the first ever truly Global Olympic Torch Relay.
♦ Official Sponsor of the Samsung Cup Test and ODI Series

19
♦ Samsung India Kicked off its Olympic Programme for ATHENS 2004 in
September 2003 by launching its Olympic Ratna Programme where by it is
providing Scholarship Support to five top Indian athletes

AWARDS AND ACHIEVEMENTS

♦ Samsung was ranked 39th「The Most Admired Company」among the Global

All Star Companies (Fortune, Feb. 2005) - 3rd in Electronics Industry
♦ In 2004 – SEC Ranked as the 12th in Fortune Global 500 Companies- Sales:
$121.7 Bil.

♦ MANUFACTURING VALUE INNOVATION – Gold Award

for Productivity, Cost, Speed at the Visual Display Plant – November 2004.

♦ MANAGEMENT INNOVATION AWARD – December 2004

SAMSUNG QUALITY AWARD – November 2004 for Color
Television & Color Monitor Plants

SAMSUNG INNOVATION AWARD – November 2004 for

Refrigerator Plant
♦ Samsung has been awarded as the Best Retailer of the year 2005 in the
consumer Durables category by the India Retail Forum. James Damian, SVP,
Best Buy and his team handed over the award to Mr. Ravinder Zutshi, Dy MD ,
Samsung India at the India Retail award function held in Mumbai on 16th
September.

SAMSUNG RECEIVED THE GOLDEN PEACOCK

SPECIAL COMMENDATION CERTIFICATE FOR
CORPORATE SOCIAL RESPONSIBILITY (PRIVATE
SECTOR) FOR THE YEAR 2004 FROM MR. SHIVRAJ
PATIL, UNION HOME MINISTER.

20
 THE I70 HAS WON AN EISA AWARD FOR EUROPEAN DESIGN, THE
HIGHEST AUTHORITY FOR TECHNOLOGY AWARDS IN EUROPE FOR
2006.

SAMSUNG RECOGNIZED WITH TECHNOLOGY

MARKETING AWARD AT CTIA WIRELESS 2006;
'WORLD IN YOUR HAND' SCULPTURE HONORED AS
EFFECTIVE OUTDOOR MARKETING TOOL.

SAMSUNG WINS ANNUAL CREATIVITY AWARD 2006

“LARGE COMPANY OF THE YEAR” BY CPM MEDIA
ELECTRONIC ENGINEERING.

SAMSUNG HAVE BEEN AWARDED THE IF

COMMUNICATION DESIGN AWARD 2007 IN
"DIGITAL MEDIA INTERFACE" CATEGORY WITH
THE CROIX INTERFACE ON THEIR 5 MEGA PIXEL
SAMSUNG F700.

SAMSUNG RECEIVES 12 CES INNOVATION AWARDS

FOR 2007.

1.3 PROBLEMS OF THE ORGANIZATION

1.4 COMPETITION INFORMATION

1.5 SWOT ANALYSIS

STRENGTHS:

21
 • INDIA WAS A MARKET WHERE THE FIRST
MOVER ENJOYED ADVANTAGES OVER LATE
COMERS.

• THE FIRST IMAGE OF THE PRODUCT LASTED

LONG IN THE EYES OF THE CONSUMER AND THE
FIRST TO ENTER THE MARKET COULD GAIN THE
LARGEST MARKET SHARE

• SAMSUNG IS COMMITTED TO ENHANCE ITS

IMAGE TO THE INDIAN MARKET AS INVESTORS.

• IT WAS BUILDING A WHOLLY OWNED

MANUFACTURING PLANT IN INDIA TO SHOW THE
COMMITMENT KOREA HAD TO THE INDIAN
SOCIETY.

WEAKNESSES:

• SAMSUNG MUST CONTINUE TO CONTROL ALL

COSTS TO MAINTAIN SUCCESS.

• INDIA WAS A MARKET WHERE THE FIRST

MOVER ENJOYED ADVANTAGES OVER LATE
COMERS, IT IS TRYING TO OVERCOME THE FIRST
COMER ADVANTAGE JAPAN’S MANUFACTURERS
HAVE OVER THEM BY BEING THOSE FIRST
COMERS.

22
• COMPANIES SUCH AS SONY HAD BUILT SALES
AND SERVICE NETWORKS THAT WERE
FAVOURABLE TO THEIR SALES PROGRAMS IN
INDIA, WHILE SAMSUNG WOULD HAVE TO CATCH
UP IN THAT AREA.

• SAMSUNG IS NOT AS EXPERIENCED IN

MANUFACTURING HIGH-END TVS FOR A HIGHER-
END MARKET SEGMENT.

OPPORTUNITIES:

• LARGER MORE HIGH-END MODELS CAN BE

PRODUCED TO APPEAL TO AN URBAN CUSTOMER
IN INDIA, AS WELL AS BEING AN EXPORT TO THE
U.S. AND EUROPEAN HIGHER END CUSTOMERS.

• WITH SUCCESS IN THE HIGHER-END

MANUFACTURING AND SALES OF PREMIUM TVS IN
INDIA; IT CAN ESTABLISH THEMSELVES AS HIGH-
END PRODUCERS AROUND THE WORLD.

THREATS:

• SAMSUNG FACED INTENSE COMPETITION IN

THE COLOUR TV MARKET.

• A PREMIUM-PRICED PRODUCT WOULDN’T

SELL IN LARGE VOLUMES, SO PRICING CAN BE A
PROBLEM.

23
 • SINCE SAMSUNG DIDN’T HAVE AN
ESTABLISHED MARKETING STRATEGY, ISSUES OF
HOW TO MARKET THE PRODUCT MAY ARISE.
• Loss of profitability because related to over-employment at most facilities.

24
 RESEARCH METHODOLOGY

2.1 SIGNIFICANCE
The main significance of the project is to study the trends and
future prospects of the consumer finance.
2.2 MANAGERIAL USEFULNESS OF THE STUDY
This project is very useful to know the role of consumer finance as a market
tool in increasing the secondary sales of the durable goods (Sales to
Customers).
2.3 OBJECTIVES
The main objective of the research is “to study the trends and future prospects of
the consumer finance”. The sub-objectives of the study are the following:

● To know the role of consumer finance as a market tool in increasing the secondary
sales of the durable goods (Sales to Customers).
● To know the accessibility of the consumer finance.
● To know how much supportive the overall industry is.
● To understand the behavior of consumer on his spending capability on durable
goods.
● To understand choice of the consumer either good quality or cheaper prices.

2.4 SCOPE OF THE STUDY

● To know the awareness of the consumers on durable goods schemes of home
appliances.
● To make companies aware about the period in which people buy so they can
provide better schemes.

2.5 METHODOLOGY
RESEARCH DESIGN
Marketing research can classified in one of three categories:

25
  Exploratory research

 Descriptive research

 Causal research

These classifications are made according to the objective of the research. In some
cases the research will fall into one of these categories, but in other cases different
phases of the same research project will fall into different categories.

Exploratory research has the goal of formulating problems more precisely,

clarifying concepts, gathering explanations, gaining insight, eliminating impractical
ideas, and forming hypotheses. Exploratory research can be performed using a
literature search, surveying certain people about their experiences, focus groups, and
case studies. When surveying people, exploratory research studies would not try to
acquire a representative sample, but rather, seek to interview those who are
knowledgeable and who might be able to provide insight concerning the relationship
among variables. Case studies can include contrasting situations or benchmarking
against an organization known for its excellence. Exploratory research may develop
hypotheses, but it does not seek to test them. Exploratory research is characterized by
its flexibility.

Descriptive research is more rigid than exploratory research and seeks to describe
users of a product, determine the proportion of the population that uses a product, or
predict future demand for a product. As opposed to exploratory research, descriptive
research should define questions, people surveyed, and the method of analysis prior to
beginning data collection. In other words, the who, what, where, when, why, and how
aspects of the research should be defined. Such preparation allows one the
opportunity to make any required changes before the costly process of data collection
has begun.

There are two basic types of descriptive research: longitudinal studies and cross-
sectional studies. Longitudinal studies are time series analyses that make repeated
measurements of the same individuals, thus allowing one to monitor behavior such as

26
brand-switching. However, longitudinal studies are not necessarily representative
since many people may refuse to participate because of the commitment required.
Cross-sectional studies sample the population to make measurements at a specific
point in time. A special type of cross-sectional analysis is a cohort analysis, which
tracks an aggregate of individuals who experience the same event within the same
time interval over time. Cohort analyses are useful for long-term forecasting of
product demand.

Causal research seeks to find cause and effect relationships between variables. It
accomplishes this goal through laboratory and field experiments.

DATA TYPES AND SOURCES

PRIMARY DATA:

Primary data is the data collected for the basic purpose of the investigation in hand

SECONDARY DATA

Before going through the time and expense of collecting primary data, one should
check for secondary data that previously may have been collected for other purposes
but that can be used in the immediate study. Secondary data may be internal to the
firm, such as sales invoices and warranty cards, or may be external to the firm such as
published data or commercially available data. The government census is a valuable
source of secondary data.

Secondary data has the advantage of saving time and reducing data gathering costs.
The disadvantages are that the data may not fit the problem perfectly and that the
accuracy may be more difficult to verify for secondary data than for primary data.

Some secondary data is republished by organizations other than the original source.
Because errors can occur and important explanations may be missing in republished
data, one should obtain secondary data directly from its source. One also should
consider who the source is and whether the results may be biased.

27
  There are several criteria that one should use to evaluate secondary data.

 Whether the data is useful in the research study.

 How current the data is and whether it applies to time period of interest.

 Errors and accuracy - whether the data is dependable and can be verified.

 Presence of bias in the data.

 Specifications and methodologies used, including data collection method,

response rate, quality and analysis of the data, sample size and sampling
technique, and questionnaire design.

 Objective of the original data collection.

 Nature of the data, including definition of variables, units of measure,

categories used, and relationships examined

2.6 LIMITATIONS

♦ The study is restricted to the geographical boundaries of Delhi Region. Thus, the
results may not be generalized to the nation.

♦ Convincing the customers as well as the dealers to squeeze out the time to answer
the questions was difficult.

♦ Consumers were not interested to get involved in this research.

28
 CONCEPTUAL DISCUSSION

CONSUMER FINANCE
The term ‘consumer finance’ relates to a loan given/ taken for non-food purposes in
the household sector ,irrespective of its sources. It includes personal loans , auto
loans , and loan for the purpose of consumer durable products. This project focuses
on the last category.
“Consumer Finance is a tool to provide a platform for manufacturers, dealers to
club their products with the various finance products for enhancing the reach of
a common man ,thus , making the products easily available to him.”It helps the
customer to buy the product without paying the full amount at the point of purchase. It
also gives facilitation to the customer in the form of product up gradation from the
desired product.
We can say “consumer finance is the new route to achieve the material comforts
in a quick way”.
Consumer Finance has 4 connects:
♦ Manufacturer
♦ Dealer
♦ Financer
♦ Customer
The manufacturer can not survive without the support of Dealers, Financers in the
industry. Same for the other channels.
Well, it is not only beneficial for the consumer but also for the dealers , manufacturers
as well as financers .

MANUFACTURER: the company use this effective market tool :

 To facilitate Secondary Sales
 To increase the sale of the higher models
 To increase their customer base
DEALER: It helps in increasing their customer base and the sale of the high-end
products.

29
FINANCER: The finance companies are also making profit. Consumer finance is
beneficial to them in the following way:
 It increases their customer base
 They can acquire the customers to cross sell on their other products like home
loan , personal loan etc.
CUSTOMER: It increases the buying capacity of the customers and upgrade
customer to higher product / model.

EVOLUTION IN THE INDIAN CONSUMER MARKET

The major reason for the evolution in consumer market in India is the changing
mindset of the Indian Middle class which post liberalization, has been in to a huge,
lucrative market. The conservative, cautious, thrifty, debt averse, middle class of the
past has been transformed in to broad minded customers.
Historically, consumer finance was always a low priority in the BABU RAJ because it
was seen as conspicuous consumption. The banks were also giving priority to the
lending to agriculture and manufacturing during that period. But after 1990s, NBFCs
sprouted and the inhibitions on banks were also eased. Thus, during late 1990s, the
Indian consumer market has entered in to the second phase where the share of
consumer finance started rising in the Indian consumer durable market.

The share of the consumer finance has been risen to 23.9% in 1999-2000 from 19.8%
in 1995-96.
Thus, it was growing at a lesser pace than the growth estimated (around. 25%).
Consumer credit penetration in India is just 2% of GDP as against the 20% in South-
east Asia and in U.S. , 40% of the total banking credit is given to the household
sector. It is pertinent to note that there is a room for expansion in the Indian Consumer
Market with the help of this tool “Consumer Finance”.

30
 MODUS OPERANDI
Finance is the intermediate between the customers and the dealer. It helps the
customer who has the willingness to buy the product but no cash in hand .There can
be two types of customers:
a) Cash Customer: those who wants to pay through cash,
b) Finance Customer: those who do not prefer to pay through cash.
The customer who wants to take financial support to cherish his dreams has 2 options:
i. Get personal finance which he can arrange from the banks at the fixed rate of
interest
ii.Get consumer finance offered by the financing companies at a zero interest rate or
at a lower interest rate.
Here, the financing institutions come in to the picture. They are facilitating the
customers to buy in installments .The customer needs to give partial cost of the
products as “Down Payment” and balance in EMIs (Equated Monthly Installments).
It reduces the risk of the bad debts.
This is a lengthy process which requires filing the documents, bearing the risk and the
cost of funds for the financing institutions. It involves the cost which the financer
charges in the following way:
Manufacturer by down: the cost that financer charges from the company .The
incidence of the cost are not transferred, borne by the company itself.
Dealers by down : the cost that financer charges from the dealer. Sometime dealer
transfer the incidence of the cost to the customer or charges a part of it from the
company.
Processing fees : documentation charges taken from the customers to process the file.
READILY SCHEMES OFFERED
a) 10/2 – 10 installments where customer need to pay 2 installments in
advance( Tenure -10 months)
b) 12/4 – 12 installments where customer need to pay 4 installments in advance
(Tenure 12 months)
c) 18/7 – 18 installments where customer need to pay 7 installments in advance.
( Tenure – 18 months)

31
d) 36/12 – with a percentage of interest. – This scheme is rolled in the specific areas
and on the specific products.
FRAMING OF FINANCE SCHEMES
The company has tie-ups with some financial institutions where both decides on
the schemes and the subvention( Manufacturer By Down & Dealer By Down)
The representative of financing company in accordance with the manufacturer frames
and floats the lucrative financing schemes to support secondary sales of the
respective manufacturer / brand.
Points of Discussion between the manufacturer and the financial institutions:
• Scheme Tenure
• Product to be focused
• Market- Address Ability
• Payment Terms
• Cost of Schemes
The Subvention ratio between manufacturer and dealer is frozen. Processing fees is
left at the discretion of the financer

ISSUES WHILE FRAMING THE SCHEMES:

♦ Scheme should be generated keeping in view of the budget

constraints. Samsung keep a certain % of the total sales for the subvention. The
budget usually lies in between 0.5% - 1% depending upon the manufacturer.
♦ The market feedback of the particular scheme is also studied,
and then the tenure as well as the ROI criteria is decided. The company as well as
financer can negotiate here.
♦ The costing of the particular scheme is discussed on IRR basis.
These days IRR is in between around 33%. This fluctuates with the interest rate
which exists in the financial market. With the increase in the interest rates, IRR
also push back.

32
 MAJOR FINANCERS IN THE MARKET

Financers all over the country:

I. Bajaj Auto Financial
II. Citi Financial
III. GE countrywide
IV. Sri Ram Finance
V. TVS Finance
VI. Citi Bank Credit Card
VII. Others-Local Financer

CONTRIBUTION OF CONSUMER FINANCE IN SAMSUNG

The contribution of financed sales in the total sales is increasing but at a slow pace.
The statement is supported by the following figures :

Years 2000-02 2003-05 2005-06

Overall
Contribution of 8% 9% 10-12%
consumer finance
in sales

In 2000-02 , the proportion of financed sales in the total sales was 8% , then it grows
to 9% in the year 2003-05. Now the proportion has increased to 10-12%. It is
estimated to grow to 15% this year.

33
PRODUCT WISE CONTRIBUTION

The product wise percentage contribution in Samsung towards total CF would be as

follows:

CONTRIBUTION
PRODUCT
CATEGORY (in percentage)
Television 50
AC 15
Microwave and Oven 3
Refrigerator 22
Washing Machine 10

In the total % of financed sales ( 10-12%), 50% of the financed sales comes from
televisions- plasma, LCDs, DLP, Projection Slimfit,DNIe , 15% from Air
Conditioners , 3% from Microwave Ovens , 22% from Refrigerators and 10% from
Washing Machines.

34
 DATA ANALYSIS AND INTERPRETATION

1. AGE GROUP

AGE GROUPS

Above 50
21% 20-34
48%

35-50
31%

Age Frequency Percent

20-34 48 48
35-50 31 31
Above 50 21 21
Total 100 100

● Most of the respondents are from the

age group of 20-34 .Out of 100 , 48 respondents are from the age group of 20-34 ,
31 are from the age group of 35-50 and other 21 are from the Above 50 age group.
● This adults age (20-34) see life and
lifestyle with very differently from the other 2 age groups, thus this distribution is
significant for the study.

35
2. OCCUPATION

housewife student
10% 9%
service
retired
38%
5%
self-employed
5%

Business
33%

Occupation Frequency Percent

Service 38 38
Business 33 33
self-employed 5 5
Retired 5 5
Housewife 10 10
Student 9 9
Total 100 100

● 38% of the respondents belongs to the service class where as 33 % of the

respondents which implies 3 out of every 10 respondents belongs to the business
class. Mainly in the self-employed, there are doctors and consultant.

3. INCOME GROUP

36
 Missing 5000-10000
Above 60000
5% 17%
14%

40000-60000
17% 10000-20000
31%
20000-40000
16%

Income(monthly) Frequency Percent

5000-10000 17 17
10000-20000 31 31
20000-40000 16 16
40000-60000 17 17
Above 60000 14 14
Missing 5 5
Total 100 100

● 5 out of 100 respondents were not willing to reveal their income group. Major
respondents are from low income category i.e. 5000-10000 & 10000-20000.( total
48 %) .High income groups are 40000- 60000 and Above 60000 with which total
31 % respondents belong.

4. WHAT PRODUCT IS CUSTOMER PLANNING TO BUY?

37
 home theater
15%
AC
Washing 31%
Machine
9%

oven
tv
3%
17%
Refrigerator
Audio System
13%
12%

Frequency Percent
AC 31 31
Oven 3 3
Audio System 12 12
Refrigerator 13 13
TV 17 17
Washing Machine 9 9
home theater 15 15
Total 100 100

● The demand for AC , refrigerator and TV is high. This result is quite obvious
since this research is conducted in the time period -mid june to mid July. Here,
seasonality comes in to the picture . But the demand for TV is on the higher side
throughout the year.
● We can see, that 31 out of 100 are planning to buy AC , 17% demanding TV ,
15% home theaters ,13% refrigerators,12% Audio system , 9% Washing Machine,
rest 3% oven

5. WHICH BRAND?

38
 Other Samsung
22% 15%
Videocon
1%

Whirlpool Sony
7% 26%
LG
29%

Brand Frequency Percent

SAMSUNG 23 23
Sony 26 26
LG 29 29
Whirlpool 7 7
Videocon 1 1
Other 14 14
Total 100 100

● 23 % of the respondents prefer to go for Samsung while 29% of the respondents

prefer to go for the LG brand. The demand for the videocon products is the
lowest.

6. WHICH BRAND * WHICH PRODUCT?

39
 14
AC
12
oven
10
Products Audio System
8
Refrigerator
6
tv
4
Washing Machine
2
home theater
0

Other
Videocon
SAMSUNG

LG
Sony

Whirlpool
Brands

BRANDS
PRODUCT Son
CATEGORY SAMSUNG y LG Whirlpool Video on Other Total
AC 12 0 8 1 0 10 31
Oven 1 0 2 0 0 0 3
Audio System 1 10 1 0 0 0 12
Refrigerator 4 0 6 3 0 0 13
Tv 1 4 11 0 0 1 17
Washing
Machine 3 0 1 3 0 2 9
Home theater 1 12 0 0 1 1 15
Total 23 26 29 7 1 14 100
● As we can see from the graph ,for samsung ,the demand for the home appliances
like AC, refrigerator, washing machine is higher during summer.So, the company
should roll out more schemes on these products. The preferred brand for AC is
Samsung ( 39% of the customers for AC )for Audio systems as well as home
theaters, it is on the lower side.

7. AWARENESS OF THE FINANCING SCHEMES

40
 No
39%

Yes
61%

Yes No Total
Frequency 61 39 100
percent 61 39 100

● Out of the 100 samples, 61% are aware of the financing schemes but 31% are not
aware of the consumer finance schemes on the home appliances. The major hurdle
that is coming in the way of the success of consumer finance is unawareness as
well as their wrong perceptions regarding this process.

8. NO. OF TIMES CUSTOMERS TAKEN CONSUMER FINANCE

EARLIER FOR THE PURCHASE OF HOME APPLICIANCES
AND CONSUMER DURABLES

41
 once

72% twice

thrice

10%
every time when
9% purchasing the product
4% 5%
never gone for finance

Frequency Percent
Once 10 10
Twice 9 9
Thrice 5 5
every time when purchasing the
product 4 4
never gone for finance 72 72
Total 100 100

● The graph is self explanatory. It is depicting that 71% of the respondents have
never gone for finance earlier. But 10% have taken finance just once. Only 4% of
the respondents are going for finance every time they purchase the home
appliances. We can say that consumer finance is still new to the country like India
but by creating awareness, market can be captured.

9. CUSTOMERS LIKE TO GET THEIR PRODUCT

FINANCED

42
 yes
41%

no
59%

Frequency Percent
Yes 41 41
No 59 59
Total 100 100

● 59% of the respondents would not like to get their product financed while 41% of
them would like to take finance this time.

10. REASONS FOR NOT PREFERING FINANCE

43
 paperwork
missing cumbersome
19% 10%
time consuming
24%

others
47%

Reasons Frequency Percent

paperwork
cumbersome 6 10.2
time consuming 14 23.7
Others 28 47.5
Missing 11 18.6
Total no of people
who are not taking
finance 59 100

● 24 % ( 14 out of 59 respondents)of those who do not prefer taking finance are

saying that consumer finance process is tome consuming , approx..10% says that
they find documentation cumbersome. The financer demands for lot of
documents. But major chunk of respondents – 47.5% - have marked other reason.
Other reasons that came out during the research are the availability of cash and
unawareness about the financing process.
11. RELATION BETWEEN THE BRAND AND THE
WILLINGNESS OF THE CUSTOMER TO GET THE PRODUCT
FINANCEDS

44
 16 16
16
14
14 13
12
12
12
10
frequency 8 7 yes
6 no
4 3
4 2
1
2 0
0
SAMSUNG Sony LG Whirlpool Videocon Other
Brands/response

Customer like to get

Brand product financed Total
Yes no
Samsung 7 16 23
Sony 14 12 26
LG 13 16 29
Whirlpool 4 3 7
Videocon 1 0 1
Other 2 12 14
41 59 100

CORRELATION = 0.031
● First, the value of correlation is positive, lying between 0 & 1, thus it shows that
there is positive relation between the brands selected and the willingness of taking
finance. Here, Sony wins the race. Since, its price range is higher in comparison of
its competitors; people would like to buy the product through finance.

45
● Out of 23 people who wants to buy the Samsung brand, 7 wants to take finance,
that implies ard 30 % of the total are willing to take finance. Comparing with the
actual figures, Samsung has room of improvement.

46
12. AWARENESS* WILLINGNESS TO TAKE FINANCE

35 32
29 30
30
25
20
no. of ppl yes
15
9 no
10
5
0
yes no
awareness /willingness

Awareness regarding Customer like to get

finance schemes product financed Total
Yes no
Yes 32 29 61
No 9 30 39
41 59 100

CORRELATION= 0.291
● Out of 61 respondents who are aware, 32 are willing to take finance which
becomes around 52%. That implies, there is lot of potential in the market which is
yet unexploited. There is a +ve relation between the awareness of the finance
schemes and the willingness of taking finance. As the awareness among the
people increase, the percentage of people demanding for finance would increase.

47
 13. WHICH SCHEME IS PREFERRED THE MOST?

18/7
12% other
10%

12/4
49%
10/2
29%

Schemes Frequency Percent (Valid)

10/2 12 29
12/4 20 49
18/7 5 12
Other 4 10
Missing 59
Total 100

● First point to be noted here is that out of 100, 59 had not responded. These
percentage shown in the pie chart are excluding the missing figure.
● Now, Out of 41, 20 prefers 12/4 scheme ( 12 months tenure , 4 months advance)
that implies 49%. Next popular scheme is 10/2,preferred by 29% .

48
 14. WHY CUSTOMER NEED FINANCE ?

buy the basic

product
Cash
27%
Convenience
39%

upgrade the
model
34%

Reasons Frequency Percent

buy the basic product 11 27
upgrade the model 14 34
Cash Convenience 16 39
Missing 59
Total 100

● 39 % of the consumers of this finance product are preferring it for their cash
convenience (just to use the cash somewhere else). 34 % are taking it to upgrade
the model .

49
 15. OHERS OPTIONS PREFERRED IF NOT CONSUMER
FINANCE

not at all buy

the product
14%
cheaper version
14%
buy the product
personal through cash
finance 58%
14%

Reasons Frequency Percent

buy the product 58
through cash 26
personal finance 6 14
cheaper version 6 14
Not at all buy the 14
product 6
Missing 56
Total 100

● Incremental sales are provided to the companies by consumer finance. 14% would
have postponed the consumption and another 14% would have gone for the
cheaper version. Thus, the percentage of incremental sales is 28%.

50
 16. IS THE CONSUMER FINANCE PROCESS FRIENDLY?

Missing
25%
yes
46%

no
29%

Response Frequency
Yes 46
No 29
Missing 25
Total 100

46 out of 100 says that consumer finance is friendly. 29 out of 100 says it is not
friendly.

17. INCOME GROUP * CUTOMERS LIKE TO GET

THEIR PRODUCT FINANCED.

51
 19
20
18
16
12 13
14
12 10
9 9
no. of ppl 10 8 8
8 6
6
4
1
2
0
5000- 10000- 20000- 40000- Above
10000 20000 30000 60000 60000
income group/ cutomer like to get their
product financed

Customer like to get

Income group product financed Total
Yes no
5000-10000 8 9 17
10000-20000 12 19 31
20000-30000 10 6 16
40000-60000 9 8 17
Above 60000 1 13 14
40 55 95

● Out of 40 who want finance, 20 are from low income group. higher income
consists of only 10 people who want to get their product financed.

18. AGE GROUP * CUSTOMER LIKE TO GET THEIR

PRODUCT FINANCED.

52
 25

20

15
no. of people
10 yes
no
5

0
20-34 35-50 Above 50
age group / customer like to get their
product financed

Customer like to get

product financed
Age group Yes no
20-34 24 24
35-50 12 19
Above 50 5 16
41 59

● More customers from the age-group of 20-34 are willing to take finance because
of the change in the mindset. They see no social stigma in borrowing for
consumer spending. People who are in the age group of 35-50 are debt –averse,
so, a lesser percentage needs finance. Respondents who are above 50 usually does
not need to buy these products more often, so, don’t need finance.

DATA ANALYSIS AND INTERPRETATION – DEALER

1. NO OF DEALERS PROMOTING FINANCE

53
 No
0%

Yes
100%

Response Frequency Percent

Yes 30 100
No 0 0

100 % of the respondents are promoting finance.

2. CONTRIBUTION OF CONSUMER FINANCE IN SALES

54
 above 60% 10-20%
13% 7%
50-60% 20-30%
10% 27%

40-50%
20% 30-40%
23%

CONTRIBUTION OF
CONSUMER FINANCE IN Frequenc
SALES y Percent
10-20% 2 6.67
20-30% 8 26.67
30-40% 7 23.33
40-50% 6 20.00
50-60% 3 10.00
above 60% 4 13.33
Total 30 100.00

27 Out of 100 agree on the point that the financed sales is 20-30% of their total
sales but 23% says that the contribution of the financed sales is around 30-40%.

3. FINANCING COMPANIES IN THE DELHI REGION

55
 personal
finance
Bajaj Auto
8%
finance
GE countrywide
17%
44%

Citifinancial
31%

Frequenc
Finance companies y
GE countrywide 26
Citifinancial 18
Bajaj Auto finance 10
personal finance 5

In the Delhi Region, GE is strongest followed by Citifinancial.

*The point to be noted here is that one dealer can be dealing with more than
one financer.

4. MOST PREFERRED FINANCER

56
 Bajaj
Missing Citifinancial
3%
30% 20%

personal GE & Citi

3% 13%
GE countrywide
31%

Financer Frequency Percent

Bajaj 1 3.33
Citifinancial 6 20.00
GE & Citi 4 13.33
GE
countrywide 9 30.00
Personal 1 3.33
Missing 9 30.00
Total 30 100.00

● As we can see from the graph that 30 % of the respondents prefers dealing with
GE Countrywide. 20% of them preferred dealing with Citifinancial.

5. REASONS FOR PREFERRENCE OF THE PARTICULAR

FINANCER

57
 4 3.68 3.82
3.5
3 2.71
2.54
2.5 2.25
MEAN 2
1.5
1
0.5
0
low processing low turnaround low rejection low interest rateless paperw ork
time time rate

REASONS

Low Low low Low

processing turnaround rejection interes less
time time rate t rate paperwork
Valid 28 28 28 28 28
Missing 2 2 2 2 2
total no of
respondents 30 30 30 30 30
Sum of
responses 63 76 103 107 71
Mean 2.25 2.71 3.68 3.82 2.54

● The bar graph depicts that low processing time (time taken by the financer in
sanctioning the loan) is the most important factor considered by the dealers while
choosing the financer followed by less paperwork. Low interest rate is the least
important reason.
*Since 1 is the most important reason and 5 is the least important reason, the smaller
the value of mean, more important that factor would be.

6. FINANCER * REASONS FOR PREFERRENCE

FINANCERS

58
REASONS GE CITIFINANCIAL BAJAJ PERSONAL
LOW Neutral Most Important Important Important
PROCESSING
TIME
LOW Important Important Most Less
TURNAROUND Important Important
TIME
LOW Less Less Important Neutral Neutral
REJECTION Important
RATE
LOW Least Least Important Least Least
INTEREST Important Important Important
RATE
LESS Most Neutral Less Most
PAPERWORK Important Important Important

● This table depicts why the dealers are preferring the particular financer. For
Example, Due to the less paperwork and low turnaround time, GE countrywide is
preferred by the financers. Dealers prefer Citifinancial due to less processing time
and low turnaround time (time in which dealer get the money back). Bajaj is
preferred due to the former reasons and low rejection rate.

8. NO OF CUSTOMERS ASK FOR CONSUMER

FINANCE

59
 10-20%
3% 20-30%
Above 50% 17%
34%

30-40%
23%
40-50%
23%

No. of
Customers Frequency Percent
10-20% 1.00 3.33
20-30% 5.00 16.67
30-40% 7.00 23.33
40-50% 7.00 23.33
Above
50% 10.00 33.33
Total 30 100
● Approx. 33% of the
respondents say that above 50% of their customers ask for the financing schemes.
That shows the interest level among the customers.

8. REASONS FOR TAKING FINANCE BY THE

CUSTOMERS

60
 Others
3%
Buy the basic
product
Cash 40%
convenience
47%
Upgrading
model
10%

Reasons Frequency Percent

buy the
product 12 40.00
Upgrading
model 3 10.00
Cash
convenience 14 46.67
Others 1 3.33
Total 30 100.00

● 47% of the dealers say that their most of the customers take finance for the cash
convenience but 40% say that customers take finance to buy the basic product.

9. SUPPORT FROM THE FINANCING COMPANIES

61
 no
17%

yes
83%

Finance
co.
providing
canvasser Frequency Percent
Yes 25.00 83.33
No 5.00 16.67
Total 30.00 100.00

● 83 % of the dealers are getting support from the financing companies. Their
financing companies are providing Canvasser to them to deal with the customers.

10. MOST PREFERRED SCHEMES

62
 12/4
73%

18/7
10%
10/2
17%

Schemes Frequency Percent

10/2 5.00 16.67
12/4 22.00 73.33
18/7 3.00 10.00
36/12
with
ROI 0.00 0.00
Others 0.00 0.00
Total 30.00 100.00

● 73% of the respondents say that 12/4 runs the best in the market. Next preferred
scheme is 10/2.

11. AVERAGE TURNAROUND TIME

63
 6.00
6.00

5.00

4.00
3.00 3.00
MEAN 3.00 2.46

2.00

1.00

0.00
GE CITIFIN BAJAJ OTHERS
AUTO FIN.
FINANCERS

TURNAROUND TIME FOR DEALERS

BAJAJ
GE CITIFINANCIAL AUTO FIN. OTHERS
Valid 26 17 9 3
Missing 4 13 21 27
Sum of
days 64 51 54 9
Mean 2.46 3.00 6.00 3.00

● GE has least turnaround time among all the financers which is 2.46 days or with in
2-3 days. Citifinancial is also proven equally supporting .Their turnaround time is
also 3 days.

64
 12.IMPACT OF CONSUMER FINANCE ON THE
INCREMENT OF SALES.

High Impact Low Impact

27% 20%

moderate
53%

Impact Frequency Percent

Low 6 20.00
moderat
e 16 53.33
High 8 26.67
Total 30 100.00

● 53% of the respondents say that consumer finance has high impact on the
increment of sales. 27% say that impact is moderate but 20 % say that the impact
of the consumer finance on the increment of sales is still low.

65
 FINDINGS
AND
RECOMMENDATIONS

66
FINDINGS

♦ The concept of consumer finance is more popular among the customers of age
group 20-34 followed by the age group of 35-50.There is lot of unawareness
among the customers in the Delhi Region. In B-C class towns, unawareness is
much higher regarding this concept.

♦ More of low income group and middle income group are interested in taking
finance on the durable goods.

♦ The schemes of tenure within 1 year are more preferred by the customers.

♦ Schemes should be product based.

♦ The major hurdles that customer feels while taking finance are time constraint
and paperwork & above all hidden costs involved in the schemes.

♦ Out of those customers who were willing to buy Samsung products, around
30% wanted to take finance within the Delhi Region.

♦ The Financers are supporting the consumer finance process by providing

Canvasser to the dealers, reducing average turnaround time etc.

SUGGESTIONS

♦ Samsung can exploit the untapped market by creating some awareness

programmes regarding consumer finance in the Indian market with the tool of
advertisements and other promotional activities.
♦ Attractive schemes should be rolled out in the market especially in the festive
seasons and on the seasonal products like AC, Refrigerators in the summer.
♦ GE countrywide being a major player in the consumer finance market should
have given more attention. More incentives should be given to the financer to
promote the consumer finance for the Samsung products.

67
CONCLUSION

● The contribution of consumer finance in the durable goods industry is increasing

day by day as the society is becoming less debt averse and the financers ,dealers
and the manufacturers becoming more supportive.
● The growth is sustainable, provided the latent demand of the consumer finance is
continually created by the manufacturer, dealers as well as the financers.

68
 ANNEXURES

Appendix-I
ANALYSIS OF THE QUESTIONNAIRE - CUSTOMER

Q1) What product do you plan to buy?

AC…. Oven ….. Audio System…..

Refrigerator…… TV …… Washing Machine……

Home Theatre……

o This question was framed to analyze the demand of the products in the market.
This will be helpful in deciding for which product the schemes should be rolled
out more in a particular time period. This also helps in building rapport with the
respondent. I have started with a very general question so as to keep in tone with
the rules for designing a questionnaire.

Q2) Which brand would you like to go for?

Samsung ( ) Sony ( ) LG ( ) Whirlpool ( )
Videocon ( ) Any other……………..
o Through this question, it can be analysed that which brand is in more demand for
a particular product in the pre-defined region. The cross tabulation with further
questions will also help in judging the relation between the brand and finance
required, if exists any.
Q3) Are you aware of the financing schemes on home appliances?
Yes ( ) No ( )
o Nominal scale is used to know the awareness among the customers regarding the
financing schemes on home appliances.

69
Q4) How many times have you gone for finance earlier for the purchase of home
appliances?
a. once ( )
b. twice ( )
c. thrice ( )
d. every time you purchase home appliances ( )
e. never gone for finance earlier ( )

o The nominal scale is used to know whether the customers have any experience
regarding consumer finance for the home appliances & consumer durables, and if
yes, what % of customers are in favour of the consumer finance.

Q5) Would you like to get your product financed?

Yes ( ) No ( )
If no, why?
You find the paper work cumbersome ( )
Time consuming process ( )
If other, please specify………………………………………………

o This question has two parts:

a) Nominal scale is used to know what % of customers would like to get their
product financed.
b) This part is framed to know what are the major hurdles that customer see in the
consumer financing schemes and process. It can help the company to understand
the problems of their customer better and take the required action, if possible.
Accessibility of the consumer finance process can also be judged.

Q6) Income group (monthly)

a. 5,000-10,000 ( )
b. 10,000-20,000 ( )
c. 20,000- 40,000 ( )
d. 40,000-60,000 ( )

70
e. Above 60,000 ( )
o The respondents are categorized in to the mutually exclusive groups to study the
extent of relationship between the customer’s income level & the willingness to
the product financed.

Q7) Please tick ( ) one.

Finance is required…….
a. To buy basic goods ( )
b. To upgrade the model ( )
c. For cash convenience ( )

o The main purpose of promoting consumer finance is to upgrade

customers to higher models. This question was framed to know the degree of the
fulfillment of the purpose.

Q8) Which scheme would you like to go for?

a. 10/2 ( )
b. 12/4 ( )
c. 18/7 ( )
d. 36/12 with a percentage of rate of interest ( )
Any other, please specify………………………
o This question will help to know which scheme most of the customers prefer
and whether the choice of scheme is product specific.

Q9) What would you have done if consumer finance would not be there?
o buy the product through cash ( )
o would have taken personal finance to buy the product ( )
a. gone for a cheaper version ( )
b. not at all buy the product ( )

71
o Through this question, it can be studied whether the consumer finance is
providing incremental sales to companies .If yes, to what percentage?

72
Q10) Is the consumer finance process very friendly?
Yes No
If no, what are the changes would you suggest?
………………………………………………………………………………

o This question has 2 parts:

a. First part will help in knowing the user-friendliness of the consumer
finance
b. Second part is an open-ended question asking for the improvements
that customer wants in the whole process.

73
 ANALYSIS OF THE QUESTIONNAIRE -DEALERS
Q1) Do you promote consumer finance?
Yes ( ) No ( )
o This is to know how many of the dealers actually promote consumer finance.
Nominal scale is used. This question will help making the rapport with the
respondent.

Q2) What is the contribution of consumer finance in your sales?

10-20 % 20-30 % 30-40 % 40-50 %
50-60% Above 60%
o This question is framed to know how much % of the sales is the financed sale
on an average in Delhi.
.
Q3) With which financing companies are you dealing?
GE countrywide ( )
Citifinancial ( )
Bajaj Auto Fin. ( )
Others, please specify…………….
o This question is designed to know the number of financers the dealers are
dealing with. Which financier is strongest in the Delhi Region.

Q4) who is your preferred financer?

…………………………………………………………………………………
o This open-ended question is to study the preference for the financers of the
dealer in the particular region.

Q5) Prioritize the reasons for your preference on the scale of 1 to 5

Where 1- Most important reason
5- Least important reason
A. Low processing time ( )
B.Low turnaround Time (time taken for payment by
Financer) ( )

74
C. Low rejection rate ( )
D. Low interest rates ( )
E. Less Paper work ( )
If any other reason, please specify…………………………………

o Rank order scale is used to study the reasons for preference for the financers.
Option “ any other reason” can help in exploring the new factors that dealers
considered important.

Q6) What percentage of your customers do ask for the consumer finance?
10-20 % 20-30 % 30-40 % 40-50 % above 50 %

o Through this question, the awareness about the schemes and the interest
regarding it among the customers can be studied.
Q7) Why do the customers ask for consumer finance?
A. To buy the basic product ( )
B.To upgrade the model ( )
C.For cash convenience ( )
D. Any Other, please specify………………………………………
o This question is designed to know why customers need finance, whether
customers are shifting to higher models or not. Are the financing schemes
effective in increasing the sales of the industry ?
Q8) Does the financing company provides you a Canvasser?
Yes ( ) No ( )

This question is framed to know whether financing companies are providing support
to the consumer finance or not. What % of dealers has been given such a service?

Q9) Which financing scheme runs the best?

a. 10/2 ( )
b. 12/4 ( )
c. 18/7 ( )

75
 d. 40/12 with a percentage of rate of interest ( )
e. Any other, please specify……………….
This question is framed to know which schemes are demanded more by their
customers so that company can concentrate more on that scheme.

Q10) On an average, in how many days do you get your money back?
a. GE countrywide - ……..
b. Citifinancial - …………..
c. Bajaj Auto Fin.- ………….
d. Others- …………….
o Through this question, the average turnaround time can be calculated .
o
Q11) How much impact do the finance has on the increment of your sales?
High impact ( )
Moderate ( )
Low impact ( )

This is a check question of Question no 1.

76
 Appendix-II

Experiences on Summer Training Location

In one statement , I would like to say that I had a great exposure to the corporate
world while working with Samsung.
I came to know how actually the organization works. I got an opportunity to learn
more about their key tools, systems, processes, procedures for doing their work.
Since my project was market research based, most of the times, i had to be on field,
interact with customers and dealers. I learnt , how to reach out to people within the
industry to arrange information-gathering calls to learn about their companies and
their perspective on the industry.
During the summer training period, I also got a chance to link the class learnings with
the industry reality. This experience will definitely help in future.

77
 Appendix -III
HOW TO CALCULATE “DOWN PAYMENT” and “EMIs
Tenure Advance ROI DBD MBD
10 2 0% 2% 5%
If the customer has bought a refrigerator of Rs. 20,000 and would like to pay through
the scheme, then according to the scheme given above, he has to make the down
payment of Rs.4660 which is calculated as follows:
Product value + ROI / Tenure x Advance + Processing Fees = Down Payment
20,000 + 0 / 10 x2 + 660 = 4,660
EMIs would be of Rs. 2,000 which can be calculated as:
Product value + ROI / Tenure = EMI
20,000 + 0 / 10 = 2,000
The total payment by the customer to the financer would be :
Downpayment + EMIs x (Tenure – Advance) = MRP/ DP of the product +
Processing fees*
4,660 + 2,000 x (10-2) = Rs. 20,660
The financer will pay to the dealer the amount after getting the down payment from
the customer. After that, dealing would be in between in the financer and customer.
The dealer would be out of the picture now.
The dealer would get an amount of:
MRP – Dealer by down( say, 2% of MRP) = 20000- 400 = 19,600
The manufacturer would pay an amount of Rs. 600( MBD- 3% of MRP) to the
financer.
* processing fees calculated as follows:
Amount to be Financed Fees
7,000- 10,000 500
10,000-27,000 660
Above 27,000 2.5% of amount to be
financed.

78
 Appendix -IV

FINANCER * REASONS FOR PREFERENCE

reasons for preference_low processing time Total

most less
importan importan importan Least
Financer t t Neutral t important
2 3 4 0 0 9
Bajaj 0 1 0 0 0 1
Citifinancial 3 2 1 0 0 6
GE & Citi 0 0 2 1 0 3
GE
countrywide 2 3 2 0 1 8
Personal 0 1 0 0 0 1
7 10 9 1 1 28

reasons for preference_low turnaround time Total

most less least
importan importan importan importan
Financer t t Neutral t t
1 2 4 2 0 9
Bajaj 1 0 0 0 0 1
Citifinancial 0 4 1 1 0 6
GE & Citi 1 1 0 0 1 3
GE
countrywide 1 2 2 3 0 8
Personal 0 0 0 1 0 1
4 9 7 7 1 28

79
 reasons for preference_low rejection rate Total
most less
importan importan importan Least
Financer t t Neutral t important
2 1 0 3 3 9
Bajaj 0 0 1 0 0 1
Citifinancial 0 0 2 3 1 6
GE & Citi 0 0 0 2 1 3
GE
countrywide 0 1 2 3 2 8
Personal 0 0 1 0 0 1
2 2 6 11 7 28

reasons for preference_low interest rate Total

most less Least
importan importan importan importan
Financer t t neutral t t
1 0 0 3 5 9
Bajaj 0 0 0 0 1 1
Citifinancial 1 0 0 1 4 6
GE & Citi 2 0 0 0 1 3
GE
countrywide 1 2 1 1 3 8
Personal 0 0 0 0 1 1
5 2 1 5 15 28

80
 reasons for preference less paperwork Total
most less
importan importan importan Least
Financer t t neutral t important
3 3 1 1 1 9
Bajaj 0 0 0 1 0 1
Citifinancial 2 0 2 1 1 6
GE & Citi 0 2 1 0 0 3
GE
countrywide 4 0 1 1 2 8
Personal 1 0 0 0 0 1
10 5 5 4 4 28

81
 BIBLIOGRAPHY

Books
♦ Market Research techniques by G.C. Beri
♦ Marketing research by Luck and Rubin

Internet
♦ www.google.com
♦ www.samsung.com

82