PROJECT REPORT ON CUSTOMER SATISFACTION

TOWARDS LG

SUBMITTED TO:
Mr. Vivek Verma
SUBMITTED BY:
Shefali Kalra
11BBA 29
 DECLARATION

The successful completion of this project was a unique experience for me because by visiting many
places and interacting with various people, I achieved a better knowledge about the field of marketing.
The experience which I gained by doing this project was essential at this turning point of my career as
this project is being submitted which contains detailed analysis of the research under taken by me.

The research provides an opportunity to the student to devote his/her skills knowledge and
competencies required during the technical session.

I, Shefali Kalra further declare that the information presented in this project is true and original to the
best of my knowledge.
 ACKNOWLEDGEMENT

Before I get into the thick of the things, I would like to add a few heart felt words for the people
who gave unending support right from the stage the idea of the research was conceived. I express
my deep sense of gratitude & sincere thanks to those who have helped me in developing this
research work. It is impossible to put out or classify the assistance; it is the feeling that matters,
& not the value.

First of all I would like to express my sincere gratitude to my Head of Department MRS.
PREETI SUMAN for giving me an opportunity to do this research & extend her kind co-
operation.

I owe Profound regards & gratitude towards Mr. Deepak Tane ja who has continuously guided
& supported me in all the tasks by giving me valuable insight into issues like The meaning of
marketing practices, its uses, and studying an organisation.

I would also like to thank my university and faculty members without whom this project has
been a distant reality & especially my Faculty Guide Mr. vivek verma for the continual support
and guidance extended towards the result-oriented approach for the completion of the project.

Deepest appreciation & thanks go to my family for their patience & understanding, friends &
classmates for their insights comments throughout the research.

Above all it is the grace & blessings of God Almighty, which made this, Endeavour a success.
 CONTENTS

S.NO TOPIC PAGE NO

1. Declaration 2
2. Acknowledgement 3
3. Executive Summary 6- 7
4. Chapter-1: Introduction 8-38
 Overview of Industry as a whole
 Profile of the organization
 History of the Organization
 S.W.O.T Analysis of the Organization
 Objectives of the study
 Scope of the study
 Methodology
5. Chapter-2: Data Analysis and interpretation 39-44
 Only in case of primary data
Chapter-3: Summary and Conclusion 45-51
 Results of the study
 Limitations
 Suggestions and Recommendations
Bibliography 52
Appendix 53-54
 ABSTRACT

This Dissertation project is a study of Market Strategy in white goods products of LG will be
based on the comparison between LG consumer satisfaction.

What are the factors that affect the consumer satisfaction?

Determining the factors affecting the consumer satisfaction.

What is the magnitude of those factors regarding the consumer satisfaction? Korean brands, LG ,
have cornered nearly half of the Rs 10,000crore (Rs 100 billion) Indian home appliances market
for the first time in the later half of this year. The LG leads the market with around 35 percent of
the overall market. In fact, except in the refrigerator segment, the two now have combined
turnovers greater than the rest of the brands in all the major segments of the market. In the
refrigerator market, which accounts for the biggest chunk of the market at around Rs 4,000 crore
(Rs 40 billion) this year, Samsung merged as the biggest gainer since the close of last financial
year. Since April, it has not only overtaken Godrej to become the number three after LG and
Whirlpool, but has also seen a steady increase in its market share since then from around 12.5
percent of the total value to around 17 per cent now. In the washing machine segment too,
estimated to be worth around Rs 1,500crore (Rs 15 billion) this year, the company was able to
increase its presence from 13.3 per cent share to 19.2 per cent share.

The company, which had a 15 per cent share in the retail-consumer AC market, was also able to
improved its position by around 1.5 per cent over the last seven months. However LG continued
to be the dominant player in the market. Leading in all the four product segments, it has around
50 per cent more market share than its closest competitor in each segment. By value, the
company has around 30 per cent of the refrigerator market, 34 per cent of the washing machine
segment, 40 per cent in the home AC segment and 38.7 per cent of the microwave market. it,
 Executive summary

I nd ia n C o ns ume r d ur a b le s ma r k e t us e d to b e d o mina te d b y fe w d o me s tic pl

ayers like godrej Voltas allwyn and kalvinater. But post liberalization much foreign company
have entered into Indian market dethroning the Indian player a nd
d o mina t in g I nd ia n ma r k e t the
ma jo r c a te go r ie s in the ma r k e t C TV, REFRIGRATOR, AIR CONDTIONERS AND
WASHING MACHINES.

India being the second largest growing economy with huge consumer class has resulted in consumer durables as
the fastest growing industries in the world. LG, SAMSUNG the two Korean companies has been
mainta ining the lead in the industries with LG being leader in almost all the categories.

T h e r u r a l ma r k e t is g r o w in g f a s t e r t h a n t h e u r b a n ma r k e t , a lt h o u g
h t h e penetration level is much lower .The CTV segment is expected to the
largestcontr ib uting segment to the overall growth the industry. The rising incomele v
els double- inco me families and consumer awareness are the main growth drivers of the
industries. Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest
ne a r ly Rs 5 0 0 c r o r e in I nd ia this ye a r in r e s e a r c h a nd d e ve lo p me nt, b r a nd -
building and other marketing initiatives. The company, having a turnover of Rs 9,500 crore and market
share of 26 per cent, is investing Rs 360 crore on brand-building and other marketing initiatives and around
Rs 140 crore on research and development, besides launching new platforms in information
technology and related areas,

LG’s innovative ‘211 campaign’ to provide quality after-sales service, will also be expanded from the existing 22
to 40 cities by next
month,T h e c a mp a ig n , f o r w h ic h I T in f r a s t r u c t u r e h a s b e e n s e t u p , in c
lu d e s t h e company’s response to customer complaint within two hours. The fixing time for
complaints varies from one hour to a maximum of 24 hours.
 CHAPTER -1

INTRODUCTION TO THE TOPIC

 INTRODUCTION

Consumers expect electrical household to be safe, for themselves, their children and other
members of the families.

Individual consumption expenditure by households covers the actual and imputed final
consumption expenditure incurred by households on the goods and services they require to
satisfy their individual needs and wants.

Businesses monitor customer satisfaction in order to determine how to increase their customer
base, customer loyalty, revenue, profits, market share and survival. Although greater profit is the
primary driver, exemplary businesses focus on the customer and his/her experience with the
organization. They work to make their customers happy and see customer satisfaction as the key
to survival and profit. Customer satisfaction in turn hinges on the quality and effects of their
experiences
What exactly Customer Satisfaction is?

The definition of customer satisfaction has been widely debated as organizations increasingly
attempt to measure it. Customer satisfaction can be experienced in a variety of situations and
connected to both goods and services. It is a highly personal assessment that is greatly affected
by customer expectations. Satisfaction also is based on the customer’s experience of both contact
with the organization (the “moment of truth” as it is called in business literature) and personal
outcomes. Some researchers define a satisfied customer within the private sector as “one who
receives significant added value” to his/her bottom line—a definition that may
apply just as well to public services. Customer satisfaction differs depending on the situation and
the product or service. A customer may be satisfied with a product or service, an experience, a
purchase decision, a salesperson, store, service provider, or an attribute or any of these. Some
researchers completely avoid “satisfaction” as a measurement objective because it is “too fuzzy
an idea to serve as a meaningful benchmark.”4 Instead, they focus on the customer’s entire
experience with an organization or service contact and the deta iled assessment of that
experience.

For example, reporting methods developed for health care patient surveys often ask customers to
rate their providers and experiences in response to detailed questions such as, “How well did
your physicians keep you informed?” These surveys provide “actionable” data that reveal
obvious steps for improvement. Customer satisfaction is a highly personal assessment that is
greatly influenced by expectations.
 Importance, Features & Advantages

Customer satisfaction with a purchase depends on how well the product’s performance lives up
to the customers’ expectations. Customer satisfaction is a key influence on future buying
behavior. Satisfied customers buy again and tell others about their good experiences dies-
satisfied customer’s of ten switches to competitors and disparage the products to others.

A basic and effective base line customer satisfaction survey program should focus on measuring
customer perceptions of how will the company delivers on the critical success factors and
dimensions of the business as defined by the customers:

For example:

The findings of the company performance should be analyzed both with all customers and by
key segments of the customer population. The essential starting point for Customer Satisfaction
Measurement (CMS) is exploratory research. Since satisfaction is about an organization’s ability.
To meet customer requirement one
has to start by clarifying with customers exactly what those requirements are. This is done
through exploratory research using focus groups or one to one depth interviews.

Two main factors determine the accuracy of CMS. The first is the ask ing the right question and
the second is the asking them to the right people sample of customers which accurately reflects
the customer base.

Customer satisfaction depends on the product’s performance relative to a buyer’s expectation,

the customer is dissatisfied. If preference matches expectations, the customer is satisfied. If
preference is exceeds expectation, the customer is highly satisfied or delighted outstanding
marketing insurance companies go out of their

way to keep their customer satisfied. Satisfied customers make repeat purchases of the products
and tell other about their good experiences with the product. The key is to match customer
expectations with company performance. Smart electronic company’s aim to delight customers
by promising only what they can deliver, then delivering more than the promise. Consumers
usually face a broad array of products and services that might satisfy a given need. How do they
choose among these many marketing makers offers? Consumers make choices based on their
perception of the value and satisfaction that various products and services deliver.
Customer value is the difference between the values the customer gains from owning and using a
product and the costs of obtaining the products customers from expectations about the value of
various marketing offers and buy accordingly. How do buyers from their expectations? Customer
expectations are based on past buying experiences, the opinion of friends and marketer and
competitor information and promises.

Businesses survive because they have customers who are willing to buy their products or
services. However, many businesses fails to “check in” with their customers to determine
whether they are happy or not and what it will make to make or keep them happy.

According to U.S consumers’ affairs department, it costs five times more to gain a new customer
than to retain an existing one. Other studies have repeated that with just a five percent increase in
Customer retention’s a firm can raise its profitability customers spend salary at first, but with
succeeding years of good experience, they will spend increasingly more.

Depending on the industry and the nature of the bad experience, dissatisfied customers will
complain to 10 to 20 friends and acquaintances, which is three times more than those with good
experiences are. Hence, the negative information is influential, and consumers generally place
significant weight on it when making a decision. If that is not the reason enough, fierce
competitor is needed more and more to differentiate firms from one another. With technology
available to virtually every one today, the traditional features and cost advantages are no longer
relevant. Still product and service quality provides an enormous opportunity to distinguish a firm
from the rest. The Japanese have recognized this and have though us to expect quality. Today’s
consumers do, and they know more about products and services than they ever did.

Customers are the best source of information. Whether to improve an existing product or service
or whether firms are planning to launch something new. There is no substitution for “getting it
from horse’s mouth” When you talk to your customer directly, to increase your odds for
achieving success you “mistakeproof” your decisions and work on what really matters. When
you routinely ask the customers for feedback and involve them in business they, in turn, become
committed to the success of your business.
 SCOPE OF THE STUDY

The benefit of this study is that it helped to gain knowledge and experience and provide the
opportunity to study and understand the prevelant customer satisfaction.

The key points are :

1. To study the fact about LG group life.

2. To understand and analyize various factors about LG. group life

3. To suggest and measure recommendations for improvement in the process of customer

satisfaction.

LIMITATIONS OF THE STUDY

Subjective nature of the study may affect its interpretation by different individuals.

Regional differences, area differences may change the scope of study also.

At different places, different implementation of applied CRM(consumer relationship

management) can be seen.

The information given over Internet and other sources may be different from other practical
sources.

IMPORTANCE OF THE STUDY

To know the position of LG in the market and to gauge the impact of market strategy vis-à-vis
consumer durables in Mathura region. Till the early nineties in the area of marketing whole effort
was focused on fine-
tuning the four „P‟s: product, price, place and promotion. It was only
in the early nineties that a few marketers began realizing that companies basically existed to
serve consumers - and that the consumer did not exist merely to buy a company's products. LG
both are big white goods product manufacturing companies from South Korea. Both are equally
strong, global companies, and more or less with equal presence in Indian market.

RESEARCH PROJECT AIMS:

The overall purpose of this work is to analyze the level of satisfaction of consumer of LG.

To develop insight about the factors involved in consumer satisfaction related to white goods
product in the transition phase of globalization.
 OBJECTIVE OF STUDY

The setting of objective is the corner stone of a systematic study. The study will be fruitful one
when the basis laid down is a concrete one they represent the desired solution to the problem and
help in proper utilization of opportunities.

Objectives:

The objectives of the research are:

1) To know the level of satisfaction of customers towards “LG

2) To know the features that attracts the customer to buy durables of LG.

3) To find out how brand ambassador can influence customer satisfaction.

4) To find out which sales promotion tools will increase the sales and satisfy customers
more.
Primary Objectives of the Project
 The main objective of filed survey during the project was to find out the level of
customer satisfaction by LG products.

 Find out the positional value of LG products in the market.

 The main objective of research was to identify the group of people being most satisfied
with the LG products. So LG can give maximum satisfaction to its customers.

 Find out the problem faced by the company while satisfying the customers to the
maximum so that product sale could be increased

Secondary Objectives of the Project

 The Objective was to find out that how far the exhibitions are helpful in branding

 While purchasing the consumer durables which parameter is most important for the
consumer?

 Do the consumers prefer the financial facility for buying consumer durable?

 How frequently consumers change the consumer durable?

 To enhances the knowledge of consumer durable market.

 CHAPTER 2

INTRODUCTION TO THE
COMPANY
 Introduction of the Company

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was
established in January, 1997 .they made their new state of art manufacturing facility at greater
Noida (1998), with an investment of Rs 500 Crores. This facility manufactured Color
Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001,
LG also commenced the home production for its eco- friendly Refrigerators and established its
assembly line for its PC Monitors at its Greater Noida manufacturing unit.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that
commences operations in October this year.
The Greater Noida manufacturing unit line has been designed with the latest technologies.
Various studies have shown that the consumer is well informed on the health awareness front.
LG was one of the first companies who recognized the emerging change in consumer needs and
decided to differentiate their products on the basis of technology which appealed to the consumer
on the basis of health benefits. The CTV range offered by LG has 'Golden Eye' technology,
which senses the light levels in the room and adjusts the picture to make it more comfortable for
the eyes. Similarly, microwave ovens have the 'Health Wave System', refrigerators have the 'PN
System', which preserve the nutrition in food and washing machines have 'Fabricare System',
which takes the health factor down to ones clothes. All the products offered by the company
have unique technologies, developed by its R&D departments that give consumers a healthier
environment to live-in.

The year 2001 witnessed LG becoming the fastest growing company in the consumer electronics,
home appliances and computer peripherals industry.
LG Electronics India is the fastest growing company in the consumer electronics, home
appliances and computer peripherals industry today. LG Electronics is continually providing
superior technology products & value for money to more than 50 lakh households in India.

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej,
Allwyn, and Voltas were the major players in the consumer durables market, accounting for no
less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony,
Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the
major share of the consumer durables market.

Consumer durables market was expected to grow at 10-15% in 2007-2008. It is growing very
fast because of rise in living standards, easy access to consumer finance, and wide range of
choice, as many foreign players are entering in the market
With the increase in income levels, easy availability of finance, increase in consumer awareness,
and introduction of new models, the demand for consumer durables has increased significantly.
Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are
no longer considered luxury items. However, there are still very few pla yers in categories like
vacuum cleaners, and dishwashers.
Consumer durables sector is characterized by the emergence of MNCs, exchange offers,
discounts, and intense competition. The market share of MNCs in consumer durables sector is
65%. MNC's major target is the growing middle class of India. MNCs offer superior technology
to the consumers whereas the Indian companies compete on the basis of firm grasp of the local
market, their well-acknowledged brands, and hold over wide distribution network. However, the
penetration level of the consumer durables is still low in India.
 HISTORY OF THE COMPANY

The company was originally established in 1958 as Gold star, producing radios, TVs,
refrigerators, washing machines and air conditioners.

The LG group was a merger of two Korean companies, Lucky and Gold star, from which the
abbreviation of LG was derived. The current "LIFE'S GOOD" slogan is a backronym. Before
the corporate name change to LG, household products were sold under the brand name of
LUCKY, and the electronic products were sold under the brand name of GOLD STAR. The
GOLD STAR brand is still perceived as a discount brand.

In 1995, the GOLD STAR brand name was changed to LG, acquired ZENITH electronics of
united states.
 GLOBAL OPERATIONS

LG ELECTRONICS is playing an active role in the world market with its assertive global policy.
As a result, LG ELECTRONICS control 110 local subsidiaries in the world with around 82,000
executives and employees.

LG group

1. LG.PHILIPS LCD

2. LG chemicals.

3. LG telecom

4. LG powercom

5. LG twins.

6. LG dacom.

Business areas and main products

Mobile communications

(a)CDMA Handsets,

(b)GSM Handsets,

(c)3G Handsets,

(d)Cellular Phones

Digital appliance

a) Air Conditioners,

b) Refrigerators,
c) Microwave Ovens,

d) Washing Machines,

e) Vacuum Cleaners,

f) H o me N e t ,

g) Compressors for Air Conditioners and Refrigerators

DIGITAL DISPLAY

a. Plasma TVs,

b) LCD TVs,

c ) M ic r o Dis p la y P a ne l TVs ,

d ) M o nit o r s ,

e ) P D P M o d u le s ,

f)O LED P a ne ls ,

g ) U S B M e mo r y ,

h) Flat Panel Computer Monitors

Digital media

a)Home Theater Systems,

b) DVD Recorders,

c ) S up e r M ulti DVD Re wr ite r s ,

d)C D±RW,

e)N otebook PC s,

f)De s k to p PCs,

g) P D A s ,

h) P DA P ho ne s ,
i) MP3 Players,

j ) N e w K a r a o k e S y s t e ms ,

k ) C a r I nfo t a in me nt
 VISION OF LG INDIA PVT.LTD.

LG Electronics is pursuing the vision of becoming a true global digital leader, attracting
customers worldwide through its innovative products and
design. The company's goal is to rank among the top 3 consumer electronics
and telecommunications companies in the world by 2010. To achieve this,
we have embraced the idea of “Great Company, Great People,” recognizing that only great
people can create a great company.
 Benefits To Company & Society

Surveys allow an organization to quickly capture vital information with relatively little expense
and effort. A primary advantage of this method is its directness: “the purpose is clear and the
responses straightforward.” Additionally, the information gathered by surveys can easily be
analyzed and used to identify trends over time. The public views consumer product polls and
pollsters in a generally positive manner compared to political and other polls. One study found
that at least sixty percent of the public feels that market research about products and services has
a positive impact on society. Seventy percent consider the people who conduct such surveys to
have positive impacts on society.

A major disadvantage of customer surveys is that the responses may be influenced by the
measurement itself through various forms of bias. For example, most surveys are voluntary, and
some researchers have found differences between survey respondents and non-respondents.
People who respond to surveys answer questions differently than those who do not respond, and
late responders answer differently than early responders. Published standards exist to help
organizations develop their current levels of customer satisfaction.

The International Customer Service Institute (TICSI) has released The International Customer
Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering
excellence in the management of customer service, whilst at the same time providing recognition
of success through a 3rd Party registration scheme. TICSS focuses an organization’s attention on
delivering increased customer satisfaction by helping the organization through a Service Quality
Model. TICSS Service Quality Model uses the 5 P's - Policy, Processes People, Premises,
Product/Services, as well as performance measurement. The implementation of a customer
service standard should lead to higher levels of customer satisfaction, which in turn influences
customer retention and customer loyalty.
 AWARDS

New Delhi, October 24th October, 2007:

LG Electronics India Pvt. Ltd.today achieved another landmark by bagging the award for
excellence in Exports of Electronic Hardware by the Electronics and Computer Software Export
promotion Council of India (ESC) .This achievement is another feather in the cap for the
company after achieving a milestone of USD 186
million in exports for calendar year 2006. This milestone has reiterated LG‟s
prime position not only in the domestic but the international markets as well.The award was
received by Mr. Ajay Sapra, DGM, Corporate Exim,LGEIL and Mr.Jatin Madan, AGM,
Exports, LGEIL, on behalf of LG
on 24th October, 2007 at a function held at Hall Kamal Mahal, Hotel Maurya Sheraton, Sardar
Patel Marg, New Delhi. Shri A. Raja, Union Minister for IT and Communications presented the
Awards.

LG has emerged as top player in Consumer Electronics Exports and is exporting a range of
products primarily to the highly competitive markets of Middle East, Asia and Africa. The award
was given to LG for its excellent exports performance in Consumer Electronics (CTV, Monitors,
GSM, Personal Computers and ODD) during the financial year 2005-2006
 SWOT ANALYSIS OF LG

STRENGHTS:

1. Market leader in home appliances.

2. Has got manufacturing unit in tax incentives.

3. Wide range of products to serve all categories.

4. Widest distribution of network in industries(47 branches, 10000 trade partners).

5. Good after sales services offered.

WEAKNESS:

1. Samsung being its competitors provide similar products.

2. Consumers compare LG with Samsung.

3. Lack of expert ope rators for complex machines due to illiteracy and lack of training in
INDIA.

OPPORTUNITIES:

1. Fast growth of home appliances in market.

2. Shifting to rural areas.

3. Thus maintaining control ove r the market and the highest share in home appliance
market.

THREATS:

1. Close competitors like SAMSUNG are compared to it.

2. Price war with SAMSUNG.

3. Competition from Indian brands and foreign brands.

 QUALITY INNOVATION

The policy of quality assurance is to provide customers with utmost satisfaction by supplying
zero defects.

LG proceeds in a hierarchal manner. It is named as

“LG WAY”.
From top to bottom:No.1 LG- is the vision
“Jeong-Do" management

is LG‟s unique application to ethics. LG will

succeed through fair management practices and constantly developing ourbusiness skill. a)
Honest with our customer) Providing great values to customer through constant innovation &
and development. c) Equal opportunities) Equal Treatment Management Principle - Creating
value for customer
 CODE OF CONDUCT LG

1. Responsibility and obligations to customers

 respect for customers

 Creating Value

 Providing Value

2. Fair competition
 Pursuit of Free Competition

 Compliance with Laws and Regulation

3. Fair Transaction

 Equal Opportunity
 Fair Transaction Procedure
 Support and Aid for Business Partner

4. Basic Ethics for Employees

 Basic Ethics
 Completion of Duty
 Self Development
 Fairness in Performance
 Avoidance of conflict with company interest

5. Corporate Responsibilities to employees

 Respect for human dignity
 Fair Treatment
 Promoting Creativity
 CHAPTER 3

RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

HYPOTHESIS:

There is no significance difference between market strategy of LG white goods products.

This project has been structured in the following manner. This is followed by scope of research
and sample design, which encompasses the following.

RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a proper well-organized
research plan, it is impossible to complete the project and reach to any conclusion. The project
was based on the survey plan. The main objective of survey was to collect appropriate data,
which work as a base for drawing conclusion and getting result.
Survey method:

A Survey is a complete operation, which requires some technical knowledge Survey methods are
mostly personal in character. Surveys are best suited for getting primary data. the research
obtains
information from the respondents by interviewing them.

Sampling: It is not always necessary to collect data from whole universe4. A small
representative sample may serve the purpose. A sample means a small group taken in a large lot.
This small group taken in a large lot .This small group should be emanative cross section and
really “representative” in character.

Research Instrument

Questionnaire- questionnaire is a carefully complied logical sequence of questions directed to a

define objective. It is the outline of what information is required and the framework on which the
data is A built upon. Questionnaire is commonly used in securing marker information that its
preparation deserves utmost skill and care.

Customer Satisfaction Questionnaires:

Questionnaires are the most common marketing research instrument. Typically, it is used to:

r product, service or experience

ics in a potential customer population;

 RESEARCH DESIGN

Research design is important primarily because of the increased complexity in the market as well
as marketing approaches. In fact, it is the key to the evolution of successful marketing strategies
and programmers. It is an important tool to study buyer‟s behavior, consumption pattern, brand
loyalty, and focus market changes. A research design specifies the methods and procedures
for conducting a particular study. According to Kerlinger, “Research Design is a plan, conceptual
structure, and strategy of investigation conceived as to obtain answers to research questions and
to control variance.

Research design specifies methods and procedures for study. In this study the company was
interested to know the demand of different consumer durable product, about competitors, and
potential for LG products to be used for the study among retailers/dealer and. However it was
exclusively personal interview.
 SAMPLING METHODOLOGY

Details of the sampling methodology, I have made questionnaire. The one is made for the
Customer

No. of questions in questionnaires for customer: 07

No. of people met during the research: 200

No. of respondents during the research: 50

SAMPLE UNIT

Professionals, Business man,

Employees, House wife, Working women, Students

SAMPLING METHOD

Random Sampling method

SAMPLE SIZE
10 Dealers

RESEARCH TOOL

Questionnaires

RESEARCH AREA

Faridabad District
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

 QUESTIONNAIRE FOR CUSTOMER’S SATISFACTION TOWARDS LG PRODUCT

1. Sales of printer in the survey

Sales
HP
Canon
Epson
Umax
Others

Printer
model Frequency %
HP 52 65
Canon 12 15
Epson 2 2.5
Umax 3 3.75
Others 11 13.75
Total 80 100

INFERENCE

 Out of the total 80 respondents show their believe in hp.

 Responses were very low for the lower range.
 For the three players as cannon, Epson ,Umax the main reasons were again the poor
quality, high link consumption.
 Out of 80 respondents 70 say that brand name matters.
 Out of 52 respondents 45 are satisfied.

30 say that after sale service is good while 22 says no

Q2. Have you purchased any consumer durable during Exhibitions?

 Yes
 No

Inferences:

1. 65 % of Customer have not purchased any consumer durable from exhibitions.

2. Only 35 % people have purchased.

3. It shows that consumers are coming in the exhibition for knowledge of product and also
they want to know that weather there is actual price difference in exhibition and shop or
not.

4. Consumer also want to compare to the different brand which are available in the
exhibition.

5. So exhibitions are more useful to increases brand awareness.

6. People are less interested to purchase product from the exhibition.

Q.2While purchasing consumer durable which parameter influences you?

 Price
  Product feature
 Brand
 Service
 Durability

Inference

1. 30% of customer gives importance to price. So it shows that Indian consumers are very
price sensitive. They give more importance to price over the brand.

2. 26% give importance to brand. So price and Brand matter a lots for the cost umers. And
they are also want best brand in best price.

3. 19% to product feature Service 16% and durability 9% Service is also a big factor for the
customer they are less interested in the durability.

Q3. From where you prefer buying consumer durables

 Exhibitions
 Co.shoppee
 Showroom
Inference:

1. A majority of customers prefer to buy from showrooms. Very less proposition of

customers buys from Exhibitions.

2. 47% customers are prefer to by from the showrooms because the showrooms are more
convenient to customers they also think that these shops give more discounts.

3. People are less interested to buy from the exhibition they only visit the exhibition for
price quotation of the product and the comparison of the product.

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons

 Attractive Price
 Service
 Demonstrations
 Offers

Inference
 1. Customers buy from showrooms because of the service and convenience. These are two
main factors.

2. Customers are preferred to buy from the showroom because of they think that these
convenient store may provide good after sell service.

3. Customer also thinks that there is more chance to bargain and they can get more
discounts in these showrooms.

4. Price also a factor that attract the customer in these showrooms.

Q.5.Which consumer durable you have and of which brand?

 CTV

 LCD

 PLASMA

 REF

 WM

 MW

 AC

Inference
In CTV section maximum customers have Onida, in LCD Sony is the leader, In plasma BPL is
the leader, In Ref LG is the leader, MW LG is the leader. In WM there are companies and in AC
also.

Q.6. How frequently you change your consumer durables?

 1-3 years

 3-5 years

 5-10 years

 More than 10 years

Inference

1. Customers prefer to change consumer durables within 5-10 years. In India people do not
change consumer durable frequently.

2. 23% customers do not change their consumer durable within 10 year.

3. It represent that Indian consumer do not prefer to change their consumer durable
frequently.
Q.7.Do you prefer any financing scheme to purchase consumer durables?

 Yes

 No

Inference

Majority of customers do not prefer any financial scheme.

8.Sales of printer in the survey

Sales
HP
Canon
Epson
Umax
Others
Printer
model Frequency %
HP 52 65
Canon 12 15
Epson 2 2.5
Umax 3 3.75
Others 11 13.75
Total 80 100

INFERENCE
 Out of the total 80 respondents show their believe in hp.
 Responses were very low for the lower range.
 For the three players as cannon, Epson ,Umax the main reasons were again
the poor quality, high link consumption.
 Out of 80 respondents 70 say that brand name matters.
 Out of 52 respondents 45 are satisfied.
30 say that after sale service is good while 22 says no

9 Which company are according to you is providing all the facilities ?

Hp
Cannon
Epson
Others
 Company Frequency %

LG 52 65

Cannon 12 15

Epson 6 8

Others 10 12

Total 80 100

INFERENCE
From this table we know that LG Company is providing more facilities than other
companies. That is why customers is using LG product Whereas cannon is
providing 15 percent facilities ,Epson company is providing 8 percent .because
of this customer are not satisfied . and others company providing only 12 percent
 FINDINGS

Secondary supports play an important role in the customers mind and create awareness among
the customers. The secondary support includes Demonstration, Exhibition & Even Sponsors.

From the survey it was found out that the majority of customers don't buy consumer durables
from exhibitions. They just visit the exhibitions to see the co. latest mode.

They want to buy from the showrooms or from co. showrooms. For them service is important
.Beside convenience and other factors service is key factor.

Also majority of customers do not want any financing scheme for purchasing the durables

There was heavy rush on weekends so large

numbers of ISD‟s were
appointed that day. Also the live demo calls helps in selling. Exchange offers also
generate sale

Customers are also now very choosy in buying the product and it is important for the company to
make loyal customer of their brand.

In survey we found that LG has captured maximum market share in every category. LG
dominates CTV, LCD, and Refrigerator, and Washing machine, category
 SUGESSTIONS

1. Customers want the company to take feedback regarding services and inform the

about new products launched.

2. LG should change warranty period from 5 years to 7 years.

3. Customers want more improvement in service.

4. “LG” should give more advertisement through Television and should place more hoarding and
bill boards, newspapers and should place more hoarding and billboards.

5. LG must make clear the conditions applicable with warranty and guarantee plan.

6. LG should charge less for after sale service.

7. Annual Maintenance Service should be given to reduce the loss of customers when a product
gets faulty.

8. Network should be expanded to rural areas also.

9. LG must improve their personnel selling and direct contacting to provide customers full
knowledge about their products.
 LIMITATIONS

Every study has certain limitations. In this study, also there were certain limitations, which could
not able to solve;

1. The research was conducted in a very small area.

2. This research work period witness the biggest ups and downs in product sale of different
brands, which affected the perception of the customer. This was biggest drawback of my study.

.3. The customer filled the questionnaire mostly in careless manner, so it was difficult to make
them hold for time.

4. Only the upper-middle class family was considered while filling up this questionnaire,
whereas an average middle class family would have made a good choice as well for the study.

5.The sample size is also very small which represent my research on consumer behavior. This
study doesn't reflect the customer's
perception and preferences regarding the two brands in the entire nation. No region outside
Faridabad was considered for the same due to the above limitations as well as lack of movement
on the part of researcher.
 CONCLUSION

LG Electronics pursues its 21st century vision of becoming a true global digital leader
who can make its customers worldwide happy through its innovative digital products and
services. LG Electronics sets its ultimate vision to rank among the top 3 global
companies in electronics, information, and telecommunication firms in the world by
2010.
LG embraces the philosophy of “Great Company, Great People,” where as only great
people can create a great company, and pursue two growth strategies involving “fast
innovation” and “fast growth.” They seek to find their three core capabilities: product
leadership, market leadership, and people-centered leadership. LG Electronics has
essentially built their company into a battleship, conquering their business strategy and
technological operations. They have built an exceptionally strong foundation for future
growth and promise.
 BIBLIOGRAPHY

 1) MARKETING MANAGEMENT – 10th Edition - Philip Kotler

 2) MARKETING RESEARCH - D.D. Sharma

 3) PAMPHLET AND CATALOGUES OF THE COMPANY

 4) www.lg.com/in\
 APPENDIX

QUESTIONNAIRE FOR THE STUDY OF CONSUMER SATISFACTION

Name of the researcher: ___________________________

Brands concerned: LG

Location: Faridabad

1. Have you purchased any consumer durable during Exhibitions?

Yes No

2. While purchasing consumer durable which parameters influence you?

Price Productfeature Brand

Services Durability

3. From where you prefer buying consumer durables

Exhibitions shops
 Showroom

4. You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons

Attractive Price Service Demonstrations Offers

5. Which consumer durable you have and of which brand?

 CTV LCD PLASMA REF

WM MW AC

6. How frequently you change your consumer durables?

1-3 years 3-5 years

5-10 years More than 10 years

7. Do you prefer any financing scheme to purchase consumer durables?

Yes No