You are on page 1of 11

Original Paper Volume 3 Issue 6 February 2016

International Journal of Informative & Futuristic Research ISSN: 2347-1697


A Study Of Consumer Buying Behaviour
On Durable Goods In Tuticorin City
Paper ID IJIFR/ V3/ E6/ 020 Page No. 1940-1950 Subject Area Commerce
Keywords Consumer Behaviour, Consumer Awareness, Durable Goods

Associate Professor ,
Department Of Commerce
1st Dr. A. Arumugam
V.O.Chidambaram College,
Thoothukudi- Tamil Nadu
Research Scholar,
Department Of Commerce
2nd M. Josephine Rebecca
V.O.Chidambaram College,
Thoothukudi- Tamil Nadu

Abstract
Understanding consumer behaviour is the key to success in the
marketplace. Companies are constantly looking at customer behavioural
patterns to predict future trends. In the domain of evolutionary
economics, consumers are seen as active agents following rules of
behaviour, fairly easy to follow and carry out because they need only a
limited amount of information and ability of elaboration. Creating new
problem to consumer and resultant needs is to create a new ideal state,
which in turn is a way to increase sales, albeit a questionably ethical one.
This article describes the consumer buying behaviour of durable goods.
The most obvious implication is that systematic variation in consumer
awareness can help with changes in product choice based on factors
influencing purchase and the initial degree of satisfaction and
involvement. Such explanatory power provides a powerful tool for those
interested in employing customer satisfaction as a predictor of profit,
choice, repurchase behaviour or market share.

1. INTRODUCTION
Consumer behaviour or buyer behaviour has attained increasingly importance in a
consumer oriented marketing planning and management. The study of consumer
behaviour is an attempt to understand what the consumer want, why they want and when

Available online through - http://ijifr.com/searchjournal.aspx


www.ijifr.com
Published On: February 23, 2016 1940
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950

they want. Clear understanding of the buying behaviour of consumer has become a great
necessity in modern marketing system, because success or failure ultimately depends
upon the buying behaviour of the target customers considered individually or a group.
Therefore in order to undertake the marketing programmed among different segment
markets, the marketing management must find out the various factors that influences in
buying decisions of the consumer. The subject of buying behaviour is relatively a new
discipline of the study of marketing. It has now become the centre topic of modern
marketing since the ultimate aim of marketing is consumer satisfaction and profit
making.

1.1 Definitions
 Consumer behaviour can be defined as “the decision-making process and physical
activity involved in acquiring, evaluating, using and disposing of goods and
services”.
 Buyer behaviour may be defined as that behaviour exhibited by people in planning,
purchasing and using economic goods and service in the satisfaction of their wants.
 In economics, a durable good or a hard good is a good that does not quickly wear
out or more specifically, one that yields utility over time rather than being
completely consumed in one use.

2. STATEMENT OF THE PROBLEM


Consumer behaviour is the process of decision making and acquiring, evaluating,
using and disposing of goods and services. It is the study of how individual customers
make decisions to spend their time, money and effort on consumption related with a
particular goods or service. In the modern business world, due to the development of
science and technology many new brands are introduced in the market every year. But
the entire product does not satisfy the consumers; very few products are capturing the
market. With modern retail growing fast in the country the buying behaviour of
consumer in changing and becoming more complex, because the purchase decision of
consumer largely depends on price, quality, taste, availability of product and so on.
Hence the researcher has made an attempt to study the consumer buying behaviour of
durable goods and their awareness level in Tuticorin city.

3. REVIEW OF LITERATURE
 Kim et al1, in their study on “Cross – Cultural Consumer Values, Needs and
Purchase Behaviour” indicated that the consumer’s decision to buy a particular
brand was affected by different factors. Aside from functional benefits he/she
may choose their particular brand to express his/her personality, social status,
affiliation or to fulfil desire for newness.

1
Kim, O. J., Forsythe, S., Moon. J. S (2002) “Cross – Cultural Consumer Values. Needs and Purchase
Behaviour,” Journal of Consumer Marketing, Volume .19 No.6 pp 481-482.

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1941
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950

 Pushpavanam2, in her article, “Consumer Awareness” seeks to trace the genesis


of the Consumer movement and awareness in India to analyze the scenario of the
post – independence till now discusses the spread and depth of consumer
awareness in today’s India and projects the prospective growth and development
in this area in the next few decades.
 Losarwar3 made analyze of “Consumer Behaviour towards Durable Goods: a
Study with reference to Marathwada region of Maharashtra state”. Selected
durable goods taken for the study included television, washing machine,
refrigerator, mixer and fan. The respondents were fully aware about the different
brands of television (34.52%) washing machine (29.50%) refrigerator (32.50%)
mixer (36.50%) and fan (56.00%). Majority of consumers purchased the
televisions, washing machine, refrigerators from authorized dealers and mixes
and fans from retailers. They concluded that Company’s advertisement,
reputation, price and quality of the product were the important factors influenced
the choice of consumer durables.
 Dr. Diviya Harian 4in her article, “Awareness of Consumers regarding the
Rights, Responsibilities and Consumer Protection Act 1986”, explored and
identified consumer awareness regarding responsibilities and consumers rights in
Consumer Protection Act, 1986. She conclude that only a very few consumers
were fully aware about rights, responsibilities and Consumer protection Act.
Hence, it is necessary to educate them on their rights and responsibilities of
consumers, to make them vigilant rational and aware buyers.

4. OBJECTIVES
 To analyze factors influencing respondents in the choice of consumer durables.
 To study the level of consumer awareness of the respondents.

5. HYPOTHESIS
 There is no significant difference between the age and the level of consumer
awareness while purchasing consumer durable goods.
 There is no significant difference between the gender and the level of consumer
awareness while purchasing consumer durable goods.
 There is no significant difference between the educational qualification and the
level of consumer awareness while purchasing consumer durable goods.
 There is no significant difference between the marital status and the level of
consumer awareness while purchasing consumer durable goods.

2
Pushpavanam (1997), “Consumer Awareness”, New Jersey Tamil Sangam USA/Indian pp:30
3
Losarwar, S.G., 2002, “Consumer Behaviour towards Durable Products: A study with reference to
Marathwada region of Maharastra state”, Indian Journal of marketing Volume – 32, pp 6-11.
4
Dr. Diviya Harian,”Awareness of Consumers regarding their Rights, Responsibilities and Consumer
Protection Act 1986”, Indian Journal of Marketing, volume-30,No.1, Jan 2000 pp 5-9.

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1942
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950

 There is no significant difference between the occupation and the level of


consumer awareness while purchasing consumer durable goods.
 There is no significant difference between the income and the level of consumer
awareness while purchasing consumer durable goods.
 There is no significant difference between the nature of family and the level of
consumer awareness while purchasing consumer durable goods.

6. METHODOLOGY
The study is mainly based on both primary and secondary data. The primary data
required for the study was collected from 120 consumers in Thoothukudi through
questionnaire. The questionnaire for this study was constructed by the researcher.
Secondary data has been collected from books, published articles and websites of the
company, journals and magazines. The researcher has adopted the method of
convenience sampling for selecting 120 sample respondents. The collected data were
classified, tabulated and analysed by using the statistical tools like percentage analysis,
ranking method using weighted average mean and chi square test. The results obtained
from the analysis of data are discussed as under.

7. FACTORS INFLUENCING CONSUMERS IN THE CHOICE OF DURABLES


Several factors influence the choice of durable goods such as durability, brand image,
price, after sale service, easy availability and so on. An attempt has been made to rank
the factors influencing them in the choice of consumer durable goods. The weighted
arithmetic mean has been used to rank the factors. The respondents were asked to rank
the factors influencing them in the choice of durables on a given scale 1 to 9 computing
total score. Weights have been assigned to various degree of opinion as first rank is
given nine points, the second rank is given eight points, third rank is given seven points
and similarly the last position of ninth rank is given one point. By multiplying these
weights with corresponding number of respondents give individual score. The
summation of the individual score gives a total score of each factor. The total score is
divided by the total number of respondents to arrive at the weighted average mean. Thus
the weighted average mean is used to rank the various factors influencing the choice of
durables.
Table 1: Calculation of weighted arithmetic mean for factor influencing consumers in the choice of
durables
Factors
influencing in
Weighted Cost Percentage
choice of
durables
� + � + � + � + � + � + � + � + �
Durability 6.67
� + � + � + � + � + � + � + � + �
Brand Image 6.55

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1943
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950
� + � + � + � + � + � + � + � + �
Price 7.67
After Sale � + � + � + � + � + � + � + � + �
4.93
Service
Warrantee � + � + � + � + � + � + � + � + �
and 5.33
Guarantee
Easy � + � + � + � + � + � + � + � + �
5.43
Availability
� + � + � + � + � + � + � + � + �
Status Symbol 3.2
Advertisement � + � + � + � + � + � + � + � + �
3.57
Network
Dealers � + � + � + � + � + � + � + � + �
2.67
Network

Table 2: Rank of the factors influencing consumer in their choice of durable


Factors influencing in Choice Weighted Arithmetic
Ranks
of Durables Mean
Durability 6.67 II
Brand image 6.55 III
Price 7.67 I
After sale service 4.93 VI
Warrantee and guarantee 5.38 V
Easy availability 5.43 IV
Status symbol 3.2 VIII
Advertisement network 3.57 VII
Dealers network 2.67 IX

The table shows that the price is the first important factor influencing the choice of the
consumer durable goods, durability is the second important factor influencing the choice
of the consumer durable goods, brand image is the third important factor influencing the
choice durables followed by easy availability as the fourth important factor influencing
the choice of the consumer durable goods. The next highly ranked factor found to be
warrantee and guarantee as the fifth important factor influencing the choice of the
consumer durables and after sale service is the sixth important factor influencing the
choice of the consumer durable goods. This is followed by advertisement the seventh
important factor influencing the choice of the consumer durable goods, status symbol is
the eighth important factor influencing the choice of the durables and eventually dealer’s
network is the ninth important factor influencing the choice of the consumer durable
goods.

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1944
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950

8. LEVEL OF CONSUMER AWARENESS WHILE PURCHASING THE


DURABLE GOODS
Consumer awareness is the practice where consumers are aware of what they are
buying. This relates to price, benefits of products, potential scams and other alternatives
to name brand products. Consumers should research items thoroughly before purchasing
them in order to know exactly what they are buying and what to expect. Consumer
awareness is foremost a marketing term referring to the consumers right to be aware of
the product they purchase, but also an ethical conduct for those responsible of the
production and distribution of the goods. Due to some impediments such as illiteracy,
ignorance, indifferent attitudes and lengthy legal procedures consumers in India are a
victim of exploitation in the form of substandard goods and services, false guarantee,
exorbitant prices and fraudulent tactics.
Creating consumer awareness is a big task in our vast country. Protection and
promotion of consumer rights and interest is the vital function of the Government in any
economy. In spite of all the efforts taken by the state and central government, NGO’s,
private and public sectors the level of consumer awareness is not up to the mark.
Therefore consumers must be made aware of their existing rights which are
1. Right to be protected against the marketing of goods and services, which are
hazardous to life and property?
2. Right to be informed about the quality, quantity, potency, purity, standard and
price of goods as to protect the consumers against unfair trade practises.
3. Right to be assured wherever possible of access to variety of goods and services
at competitive price.
4. Right to be represented in various forums formed to consider the consumers
welfare.
5. Right to seek redressal against unfair trade practices or unscrupulous exploitation
of consumers and
6. Right to acquire the knowledge and skill to be an informed consumer throughout
life.

9. CHI SQUARE TEST


There are several independent variables which are designed as the factor
influencing the level of consumer awareness and practical execution of buying
behaviour while purchasing. The researcher has taken age of the respondents, gender,
educational qualification, marital status, occupation, income and nature of the family as
independent variables. The relationship between the dependent and independent
variables has been studied by using the Chi square test. It is calculated with the formula
�−�
χ2 = Ʃ �
, O = observed frequency, E = expected frequency,

Expected frequency = � � � � , D = degree of freedom, D = (row-1) (column-1)


��� � �

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1945
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950

The respondents are classified into those having low, moderate and high level of
consumer awareness based on the score using ͞X+ 0.5� classification. The respondents
having scores less than or equal to X-0.5σ (arithmetic mean – standard deviation) are
classified as having low level of awareness and those having score above ͞X+0.5� are
classified as having high level of consumer awareness. The consumers having score in
between ͞X+ 0.5� and ͞X-0.5� are classified as having medium level of consumer
awareness.
Table 3: Age Of The Respondents And Level Of Consumer Awareness
Level Chi-
Table
Age High Medium Low Total square Sig
Value
Value
Less than 30 8 2 2 12
31 – 40 16 10 24 50
41 – 60 20 16 8 44 15.154 12.592 **
Above 61 4 6 4 14
Total 48 34 38 120
** - Significant at 1% level
At 5% level of significance, for 6 degree of freedom the table value is 12.592. Since the
calculated value (15.154) is more than the table value, the null hypothesis is a rejected.
Hence there is a significant difference between the age and the level of consumer
awareness while purchasing consumer durables.
Table 4: Gender Of The Respondents And Level Of Consumer Awareness
Level Chi-
Table
High Medium Low Total square Sig
value
Gender value
Male 34 15 23 72
Female 14 19 15 48 5.893 5.99 Ns
Total 48 34 38 120

As 5% level of significance, for 2 degree of freedom the table value is 5.99.


Since the calculated value (5.893) is less than the table value, the null hypothesis is
accepted. Hence there is no significant difference between the gender of the respondents
and the level of consumer awareness while purchasing durables.
Table 5: Educational Qualification Of The Respondents And Level Of Consumer Awareness

Level Chi-
Table
High Medium Low Total square Sig
Value
Education value
SSLC 2 8 6 16
HSC 16 6 10 32
Degree 18 14 6 38
14.416 15.507 Ns
Professional 12 2 12 24
Others 2 4 4 10
Total 48 34 38 120

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1946
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950

At 5% level of significance, for 6 degree of freedom the table value is 15.507. Since the
calculated value (14.416) is less than the table value, the null hypothesis is accepted.
Hence there is no significant difference between the educational qualification and the
level of consumer awareness while purchasing consumer durable goods.
Table 6: Marital Status Of The Respondents And Level Of Consumer Awareness
Level Chi-
Table
High Medium Low Total square Sig
value
Status value
Unmarried 22 12 10 44
Married 26 22 28 76 3.513 5.99 Ns
Total 48 34 38 120
As 5% level of significance, for 2 degree of freedom the table value is 5.99. Since the
calculated value (3.513) is less than the table value, the null hypothesis is accepted.
Hence there is no significant difference between the marital status and the level of
consumer awareness while purchasing consumer durable goods.
Table 7: Occupation Of The Respondents And Level Of Consumer Awareness
Level
Chi-square Table
High Medium Low Total Sig
Value Value
Occupation
Government
14 7 9 30
Employee
Private
18 18 8 44
Employee 10.957 12.592 **
Businessmen 12 5 15 32
Pensioners 4 4 6 14
Total 48 34 38 120
At 5% level of significance, for 6 degree of freedom the table value is 12.592. Since the
calculated value (10.957) is more than the table value, the null hypothesis is accepted.
Hence there is no significant difference between the occupation and the level of
consumer awareness while purchasing durable goods.
Table 8: Income Of The Respondents And Level Of Consumer Awareness
Level Chi-
Table
High Medium Low Total square Sig
Value
Income value
BelowRs10000 12 4 16 32
HSC 14 16 10 40
Degree 12 6 2 20
14.589 15.507 Ns
Professional 6 4 6 16
Others 4 4 4 12
Total 48 34 38 120
At 5% level of significance, for 6 degree of freedom the table value is 15.507.
Since the calculated value (14.589) is less than the table value, the null hypothesis is
accepted. Hence there is no significant difference between the income group and their
level of consumer awareness while purchasing durable goods.

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1947
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950
Table 9: Nature Of The Family And Level Of Consumer Awareness
Chi-
Level Table
High Medium Low Total square Sig
Family value
value
Joint 10 12 6 28
Nuclear 38 22 32 92 4.082 5.99 Ns
Total 48 34 38 120
As 5% level of significance, for 2 degree of freedom the table value is 5.99. Since the
calculated value (4.082) is less than the table value, the null hypothesis is accepted.
Hence there is no significant difference between the nature of family and their level of
consumer awareness while purchasing durable goods.

10. SUGGESTIONS
 Durable purchase decision, being expensive, high involvement and less
frequency of purchase in nature, are likely to experience extensive information
processing by the consumers. Thus a host of factors influencing the behavioural
pattern of the durable buyers encompasses the selection of a specific one among
the available brands.
 Brand consciousness among the purchaser of the consumer durables is an
important trend found in the study. Consumers prefer high valued consumer
durables of well established brands. The marketers and manufactures of the
consumer durables must try to convert the brand consciousness into brand
loyalty for their well established brands. The consumer behaviour in this
direction should be properly exploited by manufactures and dealers to maximize
their sales.
 Advertisement is the vital tool as well as a powerful communication force.
Marketers of durable goods must concentrate more on television advertisement,
because of its versatile impact through its undivided attention of viewers;
influence the consumers in choice of durables. As a significant instrument in the
marketing mix, advertising attempts at moulding the attitudes and behaviour of
people in favour of products and services. In addition to it, there is a need to
generate consumer awareness on large scale about basic aspects such as
maximum retail price (MRP), Indian standard institute (ISI) mark on products
and expiry dates, hallmarking of gold jewellery etc act as a good framework to
evaluate consumers buying decision process.
 The purchase decisions of the respondents are influenced considerably by the
price-factor. Concessions in the price, price reductions, discounts sale, gifts and
offers have become common practices. The buyers of consumer durables should
try to avail of these benefits, whenever they are available. However, the buyers
of such goods should not take without considering the quality and performance
aspects of these higher value products.

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1948
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950

 Awareness regarding the availability of timely and adequate service facility is


required. Manufacturers of expensive durables must provide after sale service
facilities through their dealer network which forms a part of the overall sales
package which in turn boost the potential consumers before deciding their final
purchase.

11. CONCLUSION
The market for the durable goods is becoming more competitive nowadays. The
producer of the consumer durable goods should understand interest of the consumers.
The essence of marketing is an exchange of goods and services, intending to satisfy
human needs and wants. A sincere effort has to be made to extract the facts about
buying behaviour which may be of great importance to the marketers by making aware
of the factors that persuade a consumer. It is inferred that highly influencing factors in
the choice of durables was price and durability followed by brand image. Such a
behavioural pattern is even obvious from the sample belonging to economically
backward region. Therefore the consumers in general have provided utmost regard to the
price factor while purchasing expensive products. Of equal importance is the brand
image often interpreted as quality of the product which impelled crucially in the
purchase behaviour? Marketers should make an endeavour to fill the gap between
consumer requirements and manufacture of durable goods.
Consumer durables are characterized more by age group of below thirty years
regarding high unit cost, long life and consequently low frequently of purchase. Hence,
potential consumer who are in the age group of thirty to forty and above fifty is likely to
seek more information and give more thought to the purchase of consumer durables than
non-durables where the risk is considerably less and decision does not entail much less
even if a mistake is made. Hence all information regarding the products and their usages
must be provided to the buyers objectively and user friendly of the durable goods.
The success of consumer awareness depends upon the consumer involvement. Though
consumers are aware of goods they purchase to some extent, yet, continuous effort is to
be taken to make consumers aware of and have a full knowledge of goods they purchase.
So that necessary steps must be taken to provide full information of goods to the
consumers. Therefore the producer of durable products should understand consumer
interest much to find higher sale of their products.

12. REFERENCES
[1] R.S.N. Pillai and Babavathi, “Modern Marketing”, Published by S. Chand & Company
Pvt . L td, New Delhi 2012.
[2] Krishna Naik. C.N & Venugopal Reddy, “Comsumer Behaviour”, Discovery Publishing
House, New Delhi 1999.
[3] M. Nasrin Sulthana & Dr. M. Sakthivel Murugan, “A Study on Consumer Buying
Behaviour of Home Appliances with reference to LG Product”. Indian Journal of
Marketing, 2011, pp 52-60.

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1949
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 3, Issue -6, February 2016
Continuous 30th Edition, Page No.:1940-1950
[4] Phillip kotler, “Marketing Management”, Prentice Hall of India Private Limited, New
Delhi, 1999.
[5] Kuldeep. H. Jobanputra, “Global Marketing And Consumer Decision Making”, Paradise
Publishers, Jaipur, 2009

Dr. A. Arumugam, M. Josephine Rebecca :: A Study Of Consumer


Buying Behaviour On Durable Goods In Tuticorin City
1950