AIR CONDITIONERS(DOMESTIC)

APresentation On Consumer

Buying Behavior

By

Anindita Chowdhury

Poulami Paul

Siddhartha Roy

Sathya Prakkash VJ

Tarun Kanti Roy

AGENDA Industry structure

Five steps of consumer buying behavior

Customer Categorization based on the findings...

( Higher – Middle – Lower ) Income Group

Need IdentificationInformation SearchEvaluation of AlternativesPurchase DecisionPost Purchase Behavior

INDUSTRY STRUCTURE

More of a utility item rather than a luxury item

A robust 19% growth volume aggregating 1.5 million units

Significant price reductions over the past 2 years

Market dynamics: Negligible rural demand

Key drivers of growth GDP/Capita growth Reduced indirect taxes Import duties

NEED IDENTIFICATION…Indian climate is getting hotter and humid every year….AC has the capability of controlling humidity in the

temperature while cooling down the airAC provide satisfaction and adequate freshening and

ventilation Contribute to the excellence of life and creates comfort

INFORMATION SEARCH…

Evoked Set Consideration Set Choice Set

LGHitachi

SamsungVoltas

LGHitachi

SamsungBlue StarKen StarVoltas

VideoconOnidaCarrier

LGSamsungHitachiVoltas

Identified needs can be satisfied only when desired product is known

Among many products consumer must know which product or brand gives him maximum satisfaction

Search from sources like neighbours, friends and family. Marketers also provide relevant information through advertisements, retailers, dealers, packaging and sales promotion, mass media like news papers, radio, and television provide information

EVALUATION OF ALTERNATIVES…AC has a bundle of attributes. These attributes or features are used

for its’ evaluationFactors like company, brand image, country, distribution network

and after-sales service also become critical in evaluation

PURCHASE DECISION…

Outcome of the evaluation develops likes and dislikes about alternative products or brands in consumers. This attitude towards the brand influences a decision as to buy or not to buy. Thus the prospective buyer heads towards final selection

POST PURCHASE BEHAVIOR…Customer needs has to be satisfiedPre purchase expectation should meet the post purchase

performance

Customer Categorization based on the findings...

HIGHER INCOME GROUP Need Identification…

Social status Comfort

Information Search… Minimal Previous experience Internet browsing

Evaluation of Alternatives… Brand image – Hitachi, O-General Conjunctive feature evaluation Price not a determining factor Features : Cooling efficiency, air purification, 5 star rating,

modular design, split AC’s Purchase Decision…

High likelihood of purchase as price is not a constraint Post purchase behavior

Minimal concern After sales service is the only thing looked after

MIDDLE INCOME GROUP Need Identification…

Heat Comfort Social status

Information Search… Moderate Few cases of previous experience Internet browsing, Media, Word of mouth

Evaluation of Alternatives… Maximum utility for given price range Brand image – LG, Samsung, Voltas, Blue Star Lexicographic feature evaluation Features : Cooling efficiency, 3-5 star rating, window/split AC’s,

tonnage Purchase Decision…

Cost effectiveness plays a huge role Post purchase behavior

Moderate concern After sales service is given importance

LOWER INCOME GROUP Need Identification…

Extreme heat Social status to some extent

Information Search… Most extensive Media, advertisements, friends & relatives, store visits, Internet browsing if available

Evaluation of Alternatives… Brand preference – Ken Star, Carrier, Onida, Blue Star Disjunctive feature evaluation Price is a prime determining factor Features : Price, tonnage, after sales service, dealer margins,

discount and offers Purchase Decision…

High uncertainty, can be postponed Post purchase behavior

Maximum concern After sales service is given great importance

Thank You