A IR CONDITIONERS (D OMESTIC ) A Presentation 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 Identification  Information Search  Evaluation of Alternatives  Purchase Decision  Post Purchase Behavior

I NDUSTRY 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

N EED I DENTIFICATION … Indian climate is getting hotter and humid every year….  AC has the capability of controlling humidity in the temperature while cooling down the air  AC provide satisfaction and adequate freshening and ventilation  Contribute to the excellence of life and creates comfort

I NFORMATION S EARCH … Evoked SetConsideration SetChoice Set LG Hitachi Samsung Voltas LG Hitachi Samsung Blue Star Ken Star Voltas Videocon Onida Carrier LG Samsung Hitachi Voltas  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

E VALUATION OF ALTERNATIVES …  AC has a bundle of attributes. These attributes or features are used for its’ evaluation  Factors like company, brand image, country, distribution network and after-sales service also become critical in evaluation

P URCHASE 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

P OST PURCHASE BEHAVIOR …  Customer needs has to be satisfied  Pre purchase expectation should meet the post purchase performance

Customer Categorization based on the findings...

H IGHER I NCOME G ROUP 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

M IDDLE I NCOME G ROUP 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

L OWER I NCOME G ROUP 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

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