Consumer Perception & Behaviour Kent
Consumer Perception & Behaviour Kent
Consumer Perception & Behaviour Kent
PROJECT REPORT
ON
BY
MR. KISHORE ROHRA
UNDER GUIDANCE OF
Mr. SANKALP SHUKLA (Asst. Prof.)
GUIDE’S CERTIFICATE
This is to certify that MR. KISHORE ROHRA has
original work and not copied from any source. Also this report has not been
submitted earlier for the award of any Degree of Awadhesh Pratap Singh
University, Rewa.
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VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,
SATNA (M.P.)
DECLARATION
during the academic year 2016-2017 under the guidance of MR. SANKALP
way the university authorities deem to be fit. Also this report has not been
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VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,
SATNA (M.P.)
ACKNOWLEDGEMENT
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TABLE OF CONTENTS
3 Objectives 21-22
7 Limitations 42-43
8 Conclusion 44-45
9 References 46-47
Annexure
10 48-50
Questionnaire
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CHAPTER-I
INTRODUCTION OF PROJECT
INTRODUCTION:
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MEANING AND DEFINITION OF CONSUMER BEHAVIOUR
The most crucial issue for the marketers is to identify the needs of the
consumers. Only the identification of needs is of no value unless and until this is
transformed in to a meaningful and appropriate satisfiers. For this whole process of
converting needs into actual satisfaction one needs to understand the complete make up
of consumer’s mind, and this process is known as consumer behaviour. Let’s also
discuss some of the definitions of consumer behaviour.
Wells and Prensky defines that Consumer behaviour is the study of consumers as
they exchange something of value for a product or service that satisfies their needs.
Hawkins, Best and Coney describes “The field of consumer behaviour is the
study of individuals, groups, or organisations and the processes they use to select,
secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and society”.
The study regarding consumer behaviour can be divided into two parts i.e.
consumer buying dynamics and dynamics of business buyers.
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Let’s discuss in brief the various determinants of consumer behaviour. So, its
very important for the marketers to have a close eye on this dynamic process of
motivation.
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are move likely to choose well established brands and can not be convinced by
celebrities in the advertisements. Rather these kinds of people are influenced by the
authoritative appeals. On the contrary, those who possess the trait of innovativeness are
move receptive to new products, new services and new practices. They are prone to
newer experiments. There could be some other personality traits like inner directed
consumes and other directed consumers. So, on the basis of these personality traits, the
process of segmentation can effectively be performed.
Industrial organisations do not engage only in selling. They also buy certain kind
of things like materials, manufactured parts, plant & equipments and different services
etc. Therefore, they require the services of other organisations and such organisations
need to understand these organisations’ needs, resources, polices, and buying
procedures. So, in this section we will examine few questions like-what is business
market and how it differs from consumer market, what kind of buying situations occur
and who involves in the buying business forecast etc. Let’s look into these questions one
by one.
S.J. Skinner defines “Organisational buying behaviour refers to the actions and
decision process of producers, resellers, and governments in deciding what products to
buy”.
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Because organisational decisions typically involve more individuals in more
complex decision tasks than household or individual decisions, marketing efforts to
affect this process are much more complex. There are different stages in the decision-
making process from problem recognition to post purchase performance evaluation.
Let’s discuss these stages one by one.
1. Problem Recognition: Like any other decision-making process, the first stage of the
organisational buying decision process involves problem recognition, where one or more
persons recognise a problem. It may occur under a variety of circumstances. For
example, the sales manager and office manager of an office play a key role in
recognising the need to add computers to their office. Recognition of this problem,
however, can come up in several ways. In this particular instance, a continuing problem
between field sales agents and internal administrative staff may lead the office manager
and sales manager to recognise the problem. The continuation of these sources of
influence eventually leads to an increased level of importance and the subsequent stage
of information search.
2. Information Search: Information search can be both formal and informal. Site visits
to evaluate a potential vendor, laboratory tests of a new product or prototype, and
investigation of possible product specifications are part of formal information search.
Informal information search can occur during discussions with sales representatives,
while attending trade shows, or reading industry specific journals. Business buyers
search for information both to help make the best decision and to support their actions
and recommendations within the organisation.
A second stage of organisational decision making could involve other decision rules
such as disjunctive and lexicographic etc. In the disjunctive decision rule, a minimum
level of performance for each important attribute is established. All brands that surpass
the performance for any key attribute are considered acceptable. The lexicographic
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decision rule requires the business buyer to rank the criteria in order of importance. The
buyer then selects the supplier/product that performs best on the most important
attribute. If two or more brands tie on this attribute, they are evaluated on the second
most important attribute. This process is further complicated by the fact that different
members of the decision-making unit have different evaluation criteria.
4. Purchase and Decision Implementation: Once the decision to buy from a particular
organisation has been made, the method of purchase must be determined. From the
seller’s point of view, it means how and when they will get paid. In many cases,
payment is not made until delivery. Others involve progress payments. For a
construction or builders’ firm that takes years, the method of payment is critical. On
international basis, purchase implementation and method of payment are even more
critical.
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Customer behavior study is based on consumer buying behavior, with the customer
playing the three distinct roles of user, payer and buyer. Research has shown that
consumer behavior is difficult to predict, even for experts in the field.
Purchase Timing
Purchase Amount
Culture
WHO IS CONSUMER?
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WHAT IS CONSUMER BEHAVIOUR?
CHAPTER-II
COMPANY PROFILE
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COMPANY PROFILE:
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Water, Water, Everywhere
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Mahesh Gupta, Founder And Chairman, Kent Ro
In most homes, boiling water to rid it of its impurities seems to be the most
common practice. It is this mindset that Mahesh Gupta is still trying to fight even
after 13 years of setting up a water purifying company. “In India, penetration of
reverse osmosis (RO) method of water purification is only about one per cent,”
says Gupta, founder and chairman, Kent RO Systems Ltd. (Kent). “What most
don’t understand is that boiling does not remove all the impurities, especially the
dissolved ones. Hence, educating customers and building awareness about RO is
one of our biggest challenges,” he adds.
Noida-based Kent has sold more than a million RO units since its inception. It has
many models now, including Kent Grand and Kent Pearl, ranging between Rs.
13,000 to Rs. 17,000 per unit. About 80 per cent of its revenues are from its RO
sales and the company holds around 40 per cent market share. For the financial
year 2012, the company has closed revenues of Rs. 331 crore from Rs. 240 crore
last fiscal with a top line growth of close to 40 per cent.
Building a brand
For the first six years, there wasn’t much of a brand building exercise at the
company. “Initially, we sold our products through the direct marketing route. But,
in 2005, I realised that to sell a consumer product, we need to turn it into a brand
for consumers to recall it,” says Gupta. That’s when he started advertising and
brought onboard a brand ambassador – actor Hema Malini. He considers this
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phase as Kent’s second innings as the product also was redesigned and RO’s
technology was modified. “RO then effectively removed impurities but it also got
rid of essential minerals in the water. So, we designed a product that would retain
the minerals. And since then, we have been growing at an average of 30 per cent
to 40 per cent every year,” shares Gupta.
Over the past three to four years, Kent has also diversified into other products
such as air purifiers, vegetable and fruit purifiers and water softeners. Last year, it
signed actor Boman Irani to promote its tap water purifier product. But Gupta
admits that fighting for awareness for RO takes considerable time, that educating
about its other products is twice as difficult. However, he knows that his
promotions have paid off. “It is definitely easier to sell our products now – word-
of-mouth has helped our cause. And once we educate people, they are ready to
pay when it comes to securing their health despite the availability of more
affordable purifiers in the market,” says Gupta.
Unlike its competitors, Kent does not do house calls. It undertakes visits only on
request or through reference and is able to close 40 per cent of such sales. “Since
it is a costly product, people like to discuss and debate about it. Instead of forcing
it on them, we would rather make an impact through our advertising,” says Gupta.
Kent has a strong distribution network with 400 distributors spread over the
country with northern states providing most traction. In the next fiscal, it hopes to
increase the number to 700 distributors.
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"Initially, we sold our products through the direct marketing route. But, in
2005, I realised that to sell a consumer product, we need to turn it into a
brand for consumers to recall it."
Gupta setup Kent with a Rs. 2 lakhs as investment but his biggest challenge was
to sell his product. “RO is a costly procedure. My product would cost around Rs.
20,000 while my competitors would price their products at Rs. 5,000. Also, I was
fighting a big elephant, Aquaguard by Eureka Forbes, which was well established
in people’s minds. To sell even a third unit became a monumental effort.” But as
this small number of customers was happy with the product, Gupta knew it would
be successful someday.
Now, with many models on its roster, the research and development for Kent’s
products is a continuous process that takes place in Noida, with about four per
cent of its revenues allocated to it. Kent has three manufacturing facilities in
Roorkee with a capacity to produce 5 lakhs units annually. A fourth plant is
underway in Greater Noida with an investment of Rs. 10 crores that will become
functional in two months time. With this, its capacity would increase to 7 lakhs
units per year.
A sustainable pace
While courting growth, Gupta made a conscious decision to not go the venture
capital route. “I am not an aggressive person. Kent could’ve been a Rs. 1,000
crores company but I would rather move at a comfortable pace. We’re financially
sound now and rely on internal accruals for further growth,” he says. Even today,
some of his biggest challenges continue to be what plagued him earlier on – cost
reduction, building awareness about RO and timely servicing. “It is a continuous
exercise to bring down the cost, which is a setback because besides the initial
high cost, RO technology is high maintenance as well. We try our best to be
prompt in our service,” adds Gupta.
Gupta estimates the water purifying market to be around Rs. 1,500 crores and
growing. The company is bringing in Rs. 5 crores worth of exports through its
global arm and hopes to increase it further. But for now, his focus is on home
ground. His target for fiscal ‘13 is Rs. 450 crores. “We still have a lot of potential
to grow here but we want to do it at a sustainable pace – around 30 per cent to 40
per cent every year,” he concludes.
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What’s Next?
City: Noida
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CHAPTER-III
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OBJECTIVES:
The research is based on observation of the sales promotion. This kind of research
helps to increase the sales techniques, method as well as the sales margin of the
product in a company.
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CHAPTER-IV
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research in common parlance refers to the search for knowledge. It can also be defined
as scientific and systematic search for pertinent information on a specific topic. In fact,
research is an art of scientific investigation. Research is a voyage of discovery. It is also
said to be the pursuit of truth with help of study, observation, comparison and
experiment.
The role of research in several field of applied economics weather related to business or
to economy as a whole, has greatly influenced in modern times. The increasing complex
nature of business and government has focused on the use of research in solving
problems.
According to Kerlinger, “Research is a systematic, controlled, empirical and critical
investigation of hypothetical propositions about the presumed relation among nature
phenomenon.
Characteristics of Research:
Research objectives:
RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the Research purpose with economy in
procedure. In fact the Research design is the conceptual structure within which Research
is conducted: it constitutes the blueprint for the collection measurement and analysis of
data.
It must be able to define clearly what they want to measure and must find adequate
methods for measuring it along with a clear cut definition of population wants to study.
Since the aim is to obtain complete and accurate information in these studies, the
procedure to be used must be carefully planned. The research design must make enough
provision for protection against bias and must maximize reliability with due concern for
the economical completion of the search study.
Descriptive research is adopted for this study. It includes surveys and fact
finding enquires of different kinds. The major purpose of descriptive research is
description of the state affairs as it exists at present. The main characteristic of this
method is that the researcher has no control over the variables. He can only report what
has happened or what is happened.
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Research Design.
Sampling.
Sample size
Sampling: Sampling studies are becoming more and more popular in all types of mass
study. The result of sampling has attained a sufficiently high standard of accuracy.
A sample of 50 respondents was chosen – the selection was made through the
combined approach of Random Sampling.
Sample size: The sample sizes for the survey of consumer were about 50 which were
covered Satna city.
Research Design: Research design is purely and simply the frame work or plan for a
study that guides the collection and analysis of the data.
I have chosen Descriptive Research Design.
Every type of research requires two types of data to be collected to reach up to any
conclusion. As the topic was concerned with “effective of sales promotion” the primary
and secondary data is very much important.
Primary Data: Primary data are those data which are directly obtained from people by
approaching them individually; primary data are generated when the researcher
employing mail questionnaire, telephone surveys, personal interviews, observations &
investigates a particular problem at hand.
Secondary Data: Secondary data, on the other hand, includes those data, which are
collected in the past for other research work & are being used in current project work.
Sample Design: The sample of the research has been taken from Satna Region in M.P.
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CHAPTER-V
DATA ANALYSIS & INTERPRETATION
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DATA ANALYSIS & INTERPRETATION:
Data analysis is 5th most important step of research process. When we have collected the
data after then we have analyze the data. Data analysis is a process for analyzing the
data.
There are many statistical tools used for data analysis, such as:-
Pie chart
Bar graphs
Cluster average
Percentage method
Tabulation chart
In this project we have used pie chart cylinder & chart for data interpretation.
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Do you use any kind of water purifiers?
a. Yes
b. No
options
no
20%
yes
80%
Interpretation : From the above chart it is clear that 80% of people are using
water purifiers and 20% of people don’t use water purifiers.
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If yes, which company’s water purifier do you have?
a. Aquaguard
b. Kent
c. Philips
d. Luminuous
e. Pure it
f. Others
50%
50%
45%
40%
35% 30%
30%
25%
20%
15%
10%
10%
5% 3% 5%
0%
2%
population
Interpretations: From the above chart it is clear that out of people using water
purifiers,50% of people use Kent RO,30% of people use Aquaguard,10% use
Pure it, 5% use Luminuous,3% use Philips and 2% use other water purifiers.
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From which source you came to know about KENT RO?
a. Advertisement
b. Door to door selling
c. Mouth publicity
d. Any other source
Source
Source
35%
30%
20%
15%
Interpretation: From the above chart it is clear that 35% of the awareness about
KENT RO is via advertisement, 15% is via door to door selling, 30% is via
mouth advertisement and 20% is from remaining sources.
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How long since you are using KENT RO?
Duration
Duration
50%
20% 20%
10%
Less than a month 2-6 months 6-12 months More than a year
Interpretations : From the above chart it is clear that 50% of people uses KENT
RO from 6-12 months, 20% uses it from 2-6 months, 20% uses it from more than
a year and10% uses it from less than a month.
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What is your view on taste, odour and clarity of water you get from KENT
RO?
a. Satisfied
b. Unsatisfied
view
Unsatisfied
10%
Satisfied
90%
Interpretations: From the above chart it is clear that 90% of people are
satisfied with the taste, odour and clarity of water they get from KENT RO water
purifier and 10% are not satisfied.
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Are you satisfied with the after sale service of KENT RO?
a. Yes
b. No
60%
60%
50%
40%
40%
30%
20%
10%
0%
Yes
No
Interpretations: From the above chart it is clear that 60% of people are satisfied
with the after sale services provided by KENT RO and 40% are not satisfied.
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What is the reason for choosing KENT RO?
a. Quality
b. Price
c. Others
Reason
Others
10%
Price
10%
Quality
80%
Interpretation: From the above chart it is clear that 80% of people are choosing
KENT RO because of its quality, 10% because of its price and 10% because of
other reasons.
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Would you like to suggest others to use KENT RO?
a. Yes
b. No
90%
90%
80%
70%
60%
50%
40%
30%
20%
10%
10%
0%
Yes
No
Suggestion
Interpretations: From the above chart it is clear that 90% of people would like to
suggest others to use KENT RO and 10% do not.
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Have you ever heard about KENT RO?
a. Yes
b. No
No
20%
Yes
80%
Interpretations: From the above chart it is clear that out of the people who don’t
use KENT RO, 80% of them heard about it and 20% of people have not heard
about KENT RO.
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What makes you unaware about KENT RO?
a. Least advertisement
b. Least publicity
c. Others
Least advertisement
Least pubicity
Others
Interpretations: From the above chart it is clear that 50% of people are unaware
about KENT RO because of least advertisement, 30% because of least publicity
and 20% because of other reasons.
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Why are you not using KENT RO?
a. Lack of awareness
b. Poor quality
c. High prices
d. Poor services
50%
50%
45%
40%
30%
35%
30%
25%
20%
10% 10%
15%
10%
5%
0%
Lack of awareness Poor quality High prices Poor services
Interpretation: From the above chart it is clear that 50% of people didn’t use
KENT RO because of its poor services, 30% because of its high prices and 10%
each because of its poor quality and lack of awareness.
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CHAPTER-VI
FINDINGS & SUGGESTIONS
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FINDINGS AND SUGGESTIONS
1. 80% people are using water purifiers out of which 50% people use KENT RO.
2. Among the kent users 35% people came to know about KENT RO from
ADVERTISEMENT, 15% from DOOR TO DOOR SELLING, 30% from
MOUTH PUBLICITY & 20% from other sources.
3. 90% people are satisfied with the taste, odour & clarity of water purified from
KENT RO.
4. 40% people are not satisfied with the after sale service of KENT RO.
5. 80% people bought KENT RO because of its quality.
6. 80% people of non KENT USERS have heard about kent but the rest have not
even heard about kent.
SUGGESTIONS
The company should focus on AFTER SALE SERVICE for making the
consumers satisfied and loyal.
The company should provide some sales promotional tools like gifts, discounts
to the dealers who can give discount to the consumers and increase the sales.
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CHAPTER-VII
LIMITATIONS
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LIMITATIONS
Due to time constraints the survey was conducts over 50 consumers only.
Accuracy of the result is less due to small sample size, hence the study provides
in research work to collect data.
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CHAPTER-VIII
CONCLUSION
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CONCLUSION
Psychological factors are internal forces within people that affect buying
decisions. These factors are motives, perception, learning and personality etc.
Motivation research involves analysing the major motives that influence buying
behaviour. Perception is the process by which an individual selects, organises and
interprets information inputs to create meaning. An attitude is a person’s overall
feeling towards some object.
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CHAPTER-IX
REFERENCES
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REFERENCES
BOOKS REFERRED
Websites:
www.GOOGLE.com
www.KENT.co.in
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CHAPTER-X
ANNEXURE
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QUESTIONNAIRE FOR CONSUMER BEHAVIOR
DEMOGRAPHIC QUESTIONS:-
NAME: ………………………………………………
INCOME: ………………..
EDUCATION: …………………………………..
[ ] YES [ ] NO
Q.5 What is your view on taste, odour, & clarity of water you get from KENT
RO?
Q.6 Are you satisfied with the after sale services of KENT RO?
[ ] YES [ ] NO
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Q.7 What is the reason for choosing the KENT RO?
[ ] Quality
[ ] Price
[ ] Others
Q.8 Would you like to suggest others to buy the KENT RO?
[ ] Yes
[ ] No
[ ] YES [ ] NO
[ ] OTHERS
(Signature)
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