CHAPTER - VI

IMPACT OF SALES PROMOTION ON CONSUMER BUYING BEHAVIOR

The Impact of Sales Promotion on consumer buying behavior and

different factors influencing sales promotion at different levels namely
authorized dealers, consumers and salesmen and factor analysis for marketing
promotion and advertisement are presented in this chapter.

Sales promotion serves three essential roles- it informs, persuades and

reminds prospective customers about a company and its products. The most
useful product or brand will be a failure if no one knows that it is available. As
we know, channels of distribution take more time in creating awareness
because a product has to pass through many hands between a producer and
consumers. Therefore, a producer has to inform channel members as well as
ultimate consumers about the attributes and availability of his products. The
second purpose of promotion is persuasion. The cut throat competition among
different products puts tremendous pressure on their manufacturers and they
are compelled to under take sales promotion activities. The third purpose of
promotion is reminding consumers about a product’s availability and its
potential to satisfy the needs of the customers.

6.1 FACTORS INFLUENCING SALES PROMOTION

1. Target Market

A target market can be in any of the six stages of buying. These stages
namely awareness, knowledge, liking, preferences, conviction and purchase are
called the hierarchy of effects, because they represent stages a buyer goes
through in moving towards a purchase and a possible goal of promotion.

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2. Nature of the product and services offered

There are various product attributes which influence promotional

strategy. The most important of them are

a) When the products are demonstrated, the customers also ask the
marketers regarding nature of pre sale and post sale services offered by
them e.g) personal computers, washing machines etc.

b) When the unit price is low the manufacturer as well as the customer has
low risk, but he can get the benefit of mass marketing. Therefore mass
marketing requires mass sales promotion schemes.

c) If a product is marketed on the basis of individual customers needs, no

sales promotion is necessary

3. Stage of product life cycle

Promotional strategies are influenced by the life cycle of a product.

When a new product is introduced, prospective buyers must be informed about
its existence and its benefits and the middleman must be convinced to stock it.
Thus both advertising and personal selling are critical in a product’s
introductory stage. Later if a product becomes successful, competition
intensifies and more emphasis is placed on sales promotion to increase its sales.

4. Budget available for promotion

The funds available for promotion is the ultimate determinant of the

promotional programme. A business with ample funds can make more effective
use of sales promotion programmes than a firm with limited financial
resources. The budget for sales promotion can be prepared by the percentage of

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sales, fixed funds available for sales promotion, following the competition and
budgeting by objectives.

6.2 SALES PROMOTION AT VARIOUS LEVELS.

Sales promotional activities are undertaken at three different levels

dealer’s level, consumer’s level and salesman’s level. Each of these is
discussed in detail here under.

1. Sales promotion at dealer’s level

a) Demonstration : The manufacturer’s staff may conduct special

demonstrations for the company’s product in the premises of the trader.
Such an approach is usually adopted to introduce a new consumer
durable e.g, Microwave ovan, Aqua guard, Vacuum cleaner, Washing
machine etc., This provides an opportunity for the customers visiting the
shop to get first hand information about such a product. The salient
features of the product can be highlighted by the staff and they can also
clear the doubts of the customers.

b) Display materials : The manufacturers may also supply display

materials on their products, consisting of banners, boards, posters etc, to
the traders to enable them to display the same in their business premises.

c) Trade fairs and exhibitions : Traders engaged in different trade

participate in such fairs. It provides an opportunity for them to meet the
buyers at a particular place. Such fairs and exhibitions are mutually
beneficial for both the traders and the buyers. Sometimes traders
belonging to a particular trade also participate in a fair. For example,
traders of consumer durables or leather goods alone, participate in
certain fairs. Trade fairs are indeed useful to promote sales.

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d. Dealer competition : To encourage healthy competition among dealers,
manufacturers evaluate their performance over a period of time. Such of
those dealers who have excelled in sales, window displays and so on are
identified and suitably rewarded.

e. Gifts To satisfy those dealers, who regularly place a bulk order with the
manufacturer, the latter may offer certain gifts.

2. Sales promotion at consumer’s level

a) Free samples. Free distribution of samples is the most popular method

of sales promotion. This may be done by the manufacturers by putting
up special booths in busy places. Free samples may also be distributed
to the buyers through the dealers. Sometimes, free samples are stuck to
newspapers – manufacturers of detergent powder, soupmix, mosquito
mat etc follow such a technique.

b. Price off : Sometimes, the manufacturer may offer a reduction in the

maximum retail price. A price cut of Rs.2 or Rs.5 is often announced.

c. Money refund offer : some manufacturers do make the offer that

money will be refunded to the consumer, if he is not fully satisfied with
the product.

d. Gifts : Gifts are offered along with the product by certain marketers.
Buyers of “Cinthol’ Soap were offered free earstuds by the company
recently. Comb, soap tray etc., are the items usually given as free gifts.
Milk chocolate bar was given free along with ‘Sunrise’ instant coffee
powder recently.

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e. Off season discounts.

Such discounts are offered by the marketers of certain goods that have
only seasonal demand, e.g. umbrellas, rain coats, etc. To promote sales
during ‘off season’ such discounts become necessary.

f. Festival discounts : Discounts are also offered by marketers

tomaximise sales during festival season, e.g. Deepavali, Pongal and so
on.

g. Coupons Coupons are kept inside the package. The buyer gets
discount, as indicated in the coupon, when he buys the same product
next time. Coupons also enable the buyers to win exciting prizes.
Manufacturers of ‘Fa’ brand of face powder came out with such an offer
recently

h. Extra quantity : More quantity of the product is offered for the same
price to induce the buyers to buy. ‘Nestle Sunrise’ instant coffee
powder ‘Colgate’ toothpaste, and the like are sold with ‘extra quantity’
offer often.

i. Exchange offer: Dealers of most durable goods come out with the
exchange offer. The buyer may, for example, exchange his old TV,
fridge, two wheeler or air-conditioner for a new one by paying the
difference in amount in cash. The old items are assessed by a person
who will tell the customer the ‘exchange price’. Most jewellers give new
gold jewels in exchange for the old ones.

j. Free door delivery and installation: Some traders offer free home
delivery of goods. Some of them also offer free installation, e.g.)
computer, water heater, washing machine etc.

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k. Lucky draw:- Sometimes, the customers may be asked to drop their
visiting cards or the counterfoil of bills in a box. A lucky draw may be
conducted on a particular date and the winners may be given prizes.

l. Slogan contest: A small questionnaire may be given to the customer.

The questionnaire contains certain questions about the merits of a
particular product. The customer may, at the most, be asked to state yes
or no. There may also be space in the questionnaire to enable the
customer to write a slogan on the product, may be in about 5 to 10
words. The best entries may get prizes.

m. Payment by instalments: In order to attract the buyers, mostly of

middle class family, some dealers offer to deliver the goods on a small
initial payment and allow the customers to pay the remaining amount in
easy purchase instalments with a minimum or at times nil interest. Many
of the two wheeler/4 wheelers; flat promoters etc adopt this method of
sales promotion.

n. Arranging for finance: This is an extended category of the previous

one. Dealers offen enter into a tie-up arrangement with some finance to
the purchasers. These finance institutions make full payment to the
dealers and undertake to collect the amount from the purchasers in
instalments. Catching slogan like “come on foot empty handed and ride
on a vehicle”- induce many to purchase a car or motor cycle.

3. Sales promotion at the salesmen’s level

a. Meetings: Meetings of salesmen organised at regular intervals enable

every salesman to assess his own performance. He also gets an
opportunity to know how the other salesmen are doing

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b. Pamphlets: Salesmen are provided with pamphlets that give complete
details of the product. Such pamphlets can be distributed to the
customers.

c. Provision of audio – visual aids : Salesmen are sometimes provided

with audio – visual aids to perform their work effectively. This becomes
particularly necessary when their company is participating in a fair or
exhibition. Through the audio – visual aids, they will be able to
highlight the product features much better.

d. Cell phones and pagers : The present day salesmen are provided with
cell phones and pagers to act swiftly. This enables them to contact and
to be contacted by any one even when they are on the move.

e. Product demonstration :- Salesmen selling certain products like

Vacuum cleaner carry the instrument wherever they go. This enables
them to arrange demonstration when required. As a result, they are able
to create better impact on the customers. This advantage will not be
available if they explain only orally the product features.

f. Sales appraisal: The manufacturers/dealers appraise the performance

of all its salesmen over a period of time. All those salesmen who have
excelled are given awards and mementos.

g. Sales journals : The company may also bring out its sales journals
periodically. This will certainly give authentic information to the
salesmen about the product and the progress of their work.

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6.3 FACTOR ANALYSIS FOR MARKETING PROMOTION

Factor analysis by principal component analysis method is applied on

eight variables of marketing promotion and reduced them in to three major
factors namely free offers, advertisement and customer attraction.

Table – 6.1

Total Variance Explained

Initial Eigenvalues Rotation Sums of Squared Loadings

Component
% of Cumulative % of Cumulative
Total Total
Variance % Variance %
1 2.471 30.887 30.887 2.392 29.898 29.898
2 1.636 20.453 51.340 1.631 20.382 50.279
3 1.058 13.228 64.568 1.143 14.289 64.568
4 .998 12.480 77.048
5 .716 8.945 85.993
6 .438 5.470 91.463
7 .381 4.762 96.225
8 .302 3.775 100.000

Table – 6.2
Rotated Component Matrix(a)

Component
1 2 3
loans .827
gifts .773
Instalment .742
discount .600
advertisement .747
slogans .640
bumper .503
perselling .906

These three factors account for 64.568% of the total variation among the
variables. The major factors obtained by factor analysis are :
Factor -1 Free offers
6. Interest free loans

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5. Free gifts,
7. Easy instalments,
4. Discounts
Factor -2 Advertisement
1. Advertisement
2. Slogans
Factor – 3 Customer attraction
8. Bumper prize
3. Personal selling
I. T-test for factors of promotional activities

T-test for significant difference between means of variables is used to

identify the influential factors in the promotional activities.

Table – 6.3
Paired Samples Statistics

Std. Std. Error

Mean N
Deviation Mean
Pair 1 Free offer 2.3175 500 .81449 .03643
advertisement 1.9960 500 .79891 .03573
Pair 2 Free offer 2.3175 500 .81449 .03643
custsat 2.6100 500 .93362 .04175
Pair 3 advertisement 1.9960 500 .79891 .03573
custsat 2.6100 500 .93362 .04175

Paired Samples Correlations

N Correlation Sig.
Pair 1 Free offer & advertise 500 .184 .000
Pair 2 Free offer & custsat 500 .239 .000
Pair 3 advertise & custsat 500 -.022 .630

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 Paired Samples Test

Variable t df Sig. (2-tailed)

Pair 1 Free offer - advertise 6.976 499 .000
Pair 2 Free offer - custsat -6.044 499 .000
Pair 3 advertise - custsat -11.056 499 .000

From the above table it is concluded that the customer service and
satisfaction (mean 2.61) plays the very important vital role in the promotional
activities of TV and audio system. The next factor for the success of
promotional activities in free offers of dealers with mean 2.32 and at last
advertisement with mean 2.01. This shows that it is not easy to attract the
customers by other activities offers schemes and advertisement. They can be
attracted by the real worth and performance, service of the product. All these
factors differ significantly in their approach towards promotional activities.
With the respective T- values for the pairs in the table. Free offer -
advertisement (t= 6.976), free offer – customer satisfaction (t= 6.044),
advertisement and customer satisfaction (t=11.056) respectively.

II. Influence of promotional activities on purchase decision process of

family members

The factors of promotional activities are considered as independent

variables and the role of family members in purchase decision is considered as
multiple dependent variable in general linear model.

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 Table 6.4
Tests of Between-Subjects Effects

Source Dependent Type

Sum
III
of df Mean F Sig.
Variable Squares Square
Corrected Model self 11.042(a) 3 3.681 1.306 .272
spouse 5.729(b) 3 1.910 2.177 .090
children 2.984(c) 3 .995 1.256 .289
elder 4.884(d) 3 1.628 1.156 .326
others 2.815(e) 3 .938 .933 .425
Intercept self 111.548 1 111.548 39.585 .000
spouse 138.775 1 138.775 158.220 .000
children 137.175 1 137.175 173.176 .000
elder 239.799 1 239.799 170.204 .000
others 66.569 1 66.569 66.208 .000
Free offer self .000 1 .000 .000 .991
spouse 4.322 1 4.322 4.928 .027
children 1.428 1 1.428 1.803 .180
elder .148 1 .148 .105 .746
others .139 1 .139 .138 .710
advertise self .759 1 .759 .269 .604
spouse .004 1 .004 .005 .944
children .007 1 .007 .008 .928
relder .394 1 .394 .280 .597
others .022 1 .022 .022 .882
custsat self 9.303 1 9.303 3.301 .070
spouse .253 1 .253 .289 .591
children 2.205 1 2.205 2.783 .096
elder 4.430 1 4.430 3.144 .077
others 2.209 1 2.209 2.197 .139
Error self 1138.448 404 2.818
spouse 354.349 404 .877
children 320.014 404 .792
elder 569.194 404 1.409
others 406.204 404 1.005
Total self 4246.000 408
spouse 2106.000 408
children 2701.000 408
elder 4010.000 408
others 1962.000 408
Corrected Total self 1149.490 407
spouse 360.078 407
children 322.998 407
elder 574.078 407
others 409.020 407

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(a) R Squared = .010 (Adjusted R Squared = .002)
(b) R Squared = .016 (Adjusted R Squared = .009)
(c) R Squared = .009 (Adjusted R Squared = .002)
(d) R Squared = .009 (Adjusted R Squared = .001)
(e) R Squared = .007 (Adjusted R Squared = .000)

From the above table it is found that the promotional activities are not
creating any impact on the role of purchase decision making in a family except
when the spouses take the decision, they are meticulously interested to know
the details of free offer (F=4.928) during the purchase of TV and audio system.

III. Analysis of variance for factors of promotional activities and

demographic variables.

One way analysis of variance is applied here to find the significant

difference in the variance of demographic variables with respect to
promotional activities.

Table -6.5
ANOVA

Sum of Mean
Squares df Square F Sig.
Free offer Between Groups 1.911 5 .382 .569 .724
Within Groups 324.011 482 .672
Total 325.922 487
advertise Between Groups 6.647 5 1.329 2.120 .062
Within Groups 302.279 482 .627
Total 308.926 487
Customer Between Groups
2.426 5 .485 .554 .736
attraction
Within Groups 422.375 482 .876
Total 424.801 487

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 ANOVA

Sum of Mean
Squares df Square F Sig.
Free offer Between Groups 4.203 5 .841 1.257 .281
Within Groups 318.274 476 .669
Total 322.477 481
advertise Between Groups 3.905 5 .781 1.242 .288
Within Groups 299.303 476 .629
Total 303.208 481
Customer Between Groups
4.619 5 .924 1.057 .384
attraction
Within Groups 416.008 476 .874
Total 420.627 481

ANOVA

Sum of Mean
Squares df Square F Sig.
Free offer Between Groups 2.289 5 .458 .673 .644
Within Groups 308.762 454 .680
Total 311.051 459
advertise Between Groups 4.962 5 .992 1.608 .157
Within Groups 280.275 454 .617
Total 285.237 459
Customer Between Groups
2.360 5 .472 .526 .757
attraction
Within Groups 407.398 454 .897
Total 409.758 459

The demographic variable education do not make significant effect on

all the three factors of promotional activities. The educated consumers are not
at all attracted by the promotional activities. Similarly different occupation and
monthly income of the consumers not pave the way for the promotional
activities to influence them during purchase decision process.

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6.4 FACTOR ANALYSIS FOR ADVERTISEMENT

The factor analysis is applied on 11 variables of advertisement and

reduced them to four major factors namely common display, paper display,
audio display and visual display.

Table – 6.6
Total Variance Explained
Rotation Sums of Squared
Initial Eigenvalues
Loadings
Component
% of Cumulative % of Cumulative
Total Total
Variance % Variance %
1 2.383 21.667 21.667 2.054 18.668 18.668
2 1.700 15.458 37.125 1.858 16.890 35.558
3 1.260 11.457 48.581 1.325 12.045 47.603
4 1.165 10.588 59.170 1.272 11.567 59.170
5 .938 8.523 67.692
6 .786 7.141 74.833
7 .749 6.808 81.642
8 .594 5.396 87.038
9 .574 5.221 92.259
10 .491 4.468 96.727
11 .360 3.273 100.000

Table – 6.7
Rotated Component Matrix(a)

Component
1 2 3 4
AD MED 8 .772
AD MED 9 .720
AD MED 6 .707
AD MED 4 .734
AD MED 3 .687
AD MED 5 .660
AD MED 2 .768
AD MED 7 -.619
AD MED 11 .806
AD MED 10 .513
AD MED 1 .488

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 The major factors account for 59.17% of the total variation among the
11 variables. The four major factors obtained by the analysis consist of
following variables:

Factor – 1 Common display

8. Hoardings
9. Neon Signs
6. Banners

Factor – 2 Paper display

4. Magazines
3. Newspapers
5. Posters

Factor -3 Audio display

2. Radio
7. Technical Journal

Factor -4 Visual display

11. Pamphlets
10. Cinema
1. Television

I. t – test for advertising medium preferred by the consumers of TV and

audio system.

The paired sample t-test is used to check the advertising medium

preferred by the consumers of TV and Audio System.

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 Table – 6.8
Paired Samples Statistics

Std. Std. Error

Mean N Deviation Mean
Pair 1 comdis 2.3353 500 .87329 .03905
paperdis 2.1433 500 .83197 .03721
Pair 2 comdis 2.3353 500 .87329 .03905
audiodis 2.4000 500 .75640 .03383
Pair 3 comdis 2.3353 500 .87329 .03905
visudis 2.1433 500 .73415 .03283
Pair 4 paperdis 2.1433 500 .83197 .03721
audiodis 2.4000 500 .75640 .03383
Pair 5 paperdis 2.1433 500 .83197 .03721
visudis 2.1433 500 .73415 .03283
Pair 6 audiodis 2.4000 500 .75640 .03383
visudis 2.1433 500 .73415 .03283

Paired Samples Correlations

N Correlation Sig.
Pair 1 comdis & paperdis 500 .275 .000
Pair 2 comdis & audiodis 500 .177 .000
Pair 3 comdis & visudis 500 .145 .001
Pair 4 paperdis & audiodis 500 .067 .132
Pair 5 paperdis & visudis 500 .115 .010
Pair 6 audiodis & visudis 500 .160 .000

Paired Samples Test

variables t df Sig. (2-tailed)

Pair 1 comdis - paperdis 4.179 499 .000
Pair 2 comdis - audiodis -1.378 499 .169
Pair 3 comdis - visudis 4.065 499 .000
Pair 4 paperdis-audiodis -5.285 499 .000
Pair 5 paperdis - visudis .000 499 1.000
Pair 6 audiodis -visudis 5.940 499 .000

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 From the above T-test for significant difference in the means it is found
that common display, audio display and visual display equally well in during
advertisement and preferred by the consumers of audio and TV.

II. Analysis of variance for advertisement preference of consumers of TV

and audio system with respect to demographic variables.

One way analysis of variance is exploited here to find the significant

difference in the variance of demographic variables with respect to
advertisement.

Table – 6.9
ANOVA

Sum of Mean
Squares df Square F Sig.
comdis Between Groups 2.279 5 .456 .612 .690
Within Groups 358.787 482 .744
Total 361.066 487
paperdis Between Groups 1.818 5 .364 .536 .749
Within Groups 327.114 482 .679
Total 328.932 487
audiodis Between Groups 9.033 5 1.807 3.270 .006
Within Groups 266.282 482 .552
Total 275.315 487
visudis Between Groups 3.432 5 .686 1.276 .273
Within Groups 259.238 482 .538
Total 262.670 487

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 ANOVA

Sum of
Square Mean
s df Square F Sig.
comdis Between Groups 3.207 5 .641 .862 .507
Within Groups 354.218 476 .744
Total 357.426 481
paperdis Between Groups 2.133 5 .427 .639 .670
Within Groups 317.791 476 .668
Total 319.924 481
audiodis Between Groups 3.844 5 .769 1.356 .240
Within Groups 269.823 476 .567
Total 273.666 481
visudis Between Groups .615 5 .123 .226 .951
Within Groups 258.884 476 .544
Total 259.500 481

ANOVA

Sum of Mean
Squares df Square F Sig.
comdis Between
1.041 5 .208 .279 .925
Groups
Within Groups 338.624 454 .746
Total 339.664 459
paperdis Between
1.393 5 .279 .420 .835
Groups
Within Groups 301.259 454 .664
Total 302.651 459
audiodis Between
2.456 5 .491 .865 .505
Groups
Within Groups 257.836 454 .568
Total 260.291 459
visudis Between
6.969 5 1.394 2.605 .024
Groups
Within Groups 242.908 454 .535
Total 249.877 459

From the above table of analysis of variance it is found that audio

display during advertisement process is influencing the educated consumers
(F=3.270). The advertisement process is independent of occupation of

251
consumers. Visual display distinguishing the consumers of TV and audio
system based on their income. Different income (F=2.605) of consumers made
them to be influenced by visual advertisement.

6.5 THE VIEW OF DEALERS ON BRAND PREFERENCE OF

CONSUMERS

One sample T- test is performed on the preference of consumers. One

sample T – test is a stablished tool to identify the existence of significant
variation with in the variables.

Table – 6.10
One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Philips 50 3.6400 1.20814 .17086
LG 50 2.3600 1.45350 .20556
Samsung 50 2.3600 1.68741 .23864
Thompson 50 4.7200 2.48292 .35114
Onida 50 7.2000 1.76126 .24908
Sony 50 4.9600 2.22197 .31423
Panasonic 50 6.7200 2.70329 .38230
BPL 50 6.7200 2.73332 .38655
Videocon 50 8.0800 1.36785 .19344
Othersbran 50 8.0800 1.66403 .23533

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 One-Sample Test

Test Value = 0
95% Confidence
Sig. Mean
t df Interval of the
(2-tailed) Difference
Difference
Lower Upper
Philips 21.304 49 .000 3.64000 3.2967 3.9833
LG 11.481 49 .000 2.36000 1.9469 2.7731
Samsung 9.890 49 .000 2.36000 1.8804 2.8396
Thompson 13.442 49 .000 4.72000 4.0144 5.4256
Onida 28.906 49 .000 7.20000 6.6995 7.7005
Test Value = 0
95% Confidence
Sig. (2- Mean
t df Interval of the
tailed) Difference
Difference
Sony 15.784 49 .000 4.96000 4.3285 5.5915
Panasonic 17.578 49 .000 6.72000 5.9517 7.4883
BPL 17.385 49 .000 6.72000 5.9432 7.4968
Videocon 41.769 49 .000 8.08000 7.6913 8.4687
Othersbran 34.335 49 .000 8.08000 7.6071 8.5529

From the above table it is found the consumer exhibit variation in giving
preference (ranks) to different brands. As the mean is low it implies they give
more preference to that brand. LG and Samsung are considered as a most
preferable brands for TV and audio system with mean 2.36 and SD = 1.95 for
LG and mean 2.36 and SD = 1.88 for Samsung. So these brands have tested
for the significant difference between means
Table – 6.11
Paired Samples Statistics

Std.
Std.
Mean N Error
Deviation
Mean
Pair 1 LG 2.3600 50 1.45350 .20556
Samsung 2.3600 50 1.68741 .23864

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 Paired Samples Correlations

N Correlation Sig.
Pair 1 LG & Samsung 50 -.320 .023

Paired Samples Test

t df Sig. (2-tailed)
Pair 1 LG - Samsung .000 49 1.000

It is found that both LG and Samsung are equally popular.

II. Mode of payment

T- test for paved samples is exploited to which mode of payment is

preferable for consumers in dealers point of view.

Table – 6.12
Paired Samples Statistics

Std.
Std. Error
Mean N Deviation Mean
Pair 1 Cash basis 2.4000 50 .80812 .11429
Credit basis 1.7200 50 .88156 .12467
Pair 2 Cash basis 2.4000 50 .80812 .11429
Adopting loan 2.5200 50 1.18218 .16719
Pair 3 Cash basis 2.4000 50 .80812 .11429
Other mean 3.3600 50 .94242 .13328
Pair 4 Credit basis 1.7200 50 .88156 .12467
Adopting loan 2.5200 50 1.18218 .16719
Pair 5 Credit basis 1.7200 50 .88156 .12467
Other mean 3.3600 50 .94242 .13328
Pair 6 Adopting loan 2.5200 50 1.18218 .16719
Other mean 3.3600 50 .94242 .13328

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 Paired Samples Correlations

N Correlation Sig.
Pair 1 Cash basis & credit basis 50 -.298 .036
Pair 2 Cash basis & adopting loan 50 -.350 .013
Pair 3 Cash basis & Other mean 50 -.139 .334
Pair 4 Credit basis & adopting loan 50 -.406 .003
Pair 5 Credit basis & Other mean 50 -.171 .235
Pair 6 Adopting loan & Othe mean 50 -.574 .000

Paired Samples Test

t df Sig. (2-tailed)
Pair 1 Cash basis-credit basis 3.531 49 .001
Pair 2 Cash basis - adopting loa -.514 49 .609
Pair 3 Cash basis - Othe rmean -5.126 49 .000
Pair 4 creditbasis - adoptingloa -3.255 49 .002
Pair 5 creditbasis - Othermean -8.306 49 .000
Pair 6 adoptingloa - Othermean -3.146 49 .003

From the above table it is found that credit basis (mean 1.72) is most
preferable mode of payment and it is also found cash basis or adopting loans
from some other sources like Nationalised banks, private banks or other private
financial sources.

III. Consumer motivation

Paired sample T –test is used to identify the important motivational

factors.

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 Table – 6.13
Paired Samples Statistics

Std. Std. Error

Mean N
Deviation Mean
Pair 1 adver 2.2000 50 1.27775 .18070
creditcard 3.1200 50 1.43769 .20332
Pair 2 adver 2.2000 50 1.27775 .18070
Instalment 2.6000 50 1.21218 .17143
Pair 3 adver 2.2000 50 1.27775 .18070
Discount 3.3200 50 1.58359 .22395
Pair 4 adver 2.2000 50 1.27775 .18070
Gift 4.6000 50 .98974 .13997
Pair 5 creditcard 3.1200 50 1.43769 .20332
Instalment 2.6000 50 1.21218 .17143
Pair 6 creditcard 3.1200 50 1.43769 .20332
Discount 3.3200 50 1.58359 .22395
Std. Std. Error
Mean N
Deviation Mean
Pair 7 creditcard 3.1200 50 1.43769 .20332
Gift 4.6000 50 .98974 .13997
Pair 8 Instalment 2.6000 50 1.21218 .17143
Discount 3.3200 50 1.58359 .22395
Pair 9 Instalment 2.6000 50 1.21218 .17143
Gift 4.6000 50 .98974 .13997
Pair 10 Discount 3.3200 50 1.58359 .22395
Gift 4.6000 50 .98974 .13997

Paired Samples Correlations

Correlatio
N Sig.
n
Pair 1 adver & creditcard 50 -.302 .033
Pair 2 adver & Instalment 50 -.422 .002
Pair 3 tadver & Discount 50 .048 .738
Pair 4 tadver & Gift 50 -.129 .372
Pair 5 creditcard & Instalment 50 -.042 .771
Pair 6 creditcard & Discount 50 -.376 .007
Pair 7 creditcard & Gift 50 -.252 .077
Pair 8 Instalment & Discount 50 -.017 .907
Pair 9 Instalment & Gift 50 -.340 .016
Pair 10 Discount & Gift 50 -.073 .615

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 Paired Samples Test

t df Sig. (2-tailed)
Pair 1 adver - creditcard -2.966 49 .005
Pair 2 adver - Instalment -1.347 49 .184
Pair 3 adver - Discount -3.988 49 .000
Pair 4 adver - Gift -9.899 49 .000

Sig.
.061
t df (2-tailed)
Pair 6 creditcard - Discount -.564 49 .575
Pair 7 creditcard - Gift -5.393 49 .000
Pair 8 Instalment - Discount -2.532 49 .015
Pair 9 Instalment - Gift -7.826 49 .000
Pair 10 Discount - Gift -4.695 49 .000

From the above table it is found that the advertisement and installments
arranged by the dealers are motivating the consumers in a highway (t=1.347)
and similarly consumers are motivated equally by credit card and discount (t =
0.564).

IV. Benefits expected by the consumer

Paired sample T-test is used to identify, the most expected benefits of

consumers from dealers.

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 Table – 6.14
Paired Samples Statistics

Std. Std. Error

Mean N
Deviation Mean
Pair 1 Doordelive 3.1200 50 1.04276 .14747
Doorservice 2.6000 50 .98974 .13997
Pair 2 Doordelive 3.1200 50 1.04276 .14747
Guarantee 1.8000 50 1.06904 .15119
Pair 3 Doordelive 3.1200 50 1.04276 .14747
Instalment 3.4800 50 1.56805 .22176
Pair 4 Doorservice 2.6000 50 .98974 .13997
Guarantee 1.8000 50 1.06904 .15119
Pair 5 Doorservice 2.6000 50 .98974 .13997
Instalment 3.4800 50 1.56805 .22176
Pair 6 Guarantee 1.8000 50 1.06904 .15119
Instalment 3.4800 50 1.56805 .22176

Paired Samples Correlations

N Correlation Sig.
Pair 1 Doordelive & Doorservice 50 -.269 .059
Pair 2 Doordelive & Guarantee 50 .059 .686
Pair 3 Doordelive & Instalment 50 -.286 .044
Pair 4 Doorservice & Guarantee 50 -.540 .000
Pair 5 Doorservice & Instalment 50 -.216 .133
Pair 6 Guarantee & Instalment 50 -.258 .070

Paired Samples Test

t df Sig. (2-tailed)
Pair 1 Doordelive - Doorservice 2.271 49 .028
Pair 2 Doordelive - Guarantee 6.442 49 .000
Pair 3 Doordelive - Instalment -1.203 49 .235
Pair 4 Doorservice - Guarantee 3.130 49 .003
Pair 5 Doorservice – Instalment -3.070 49 .003
Pair 6 Guarantee - Instalment -5.621 49 .000

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 The T –test table shows that the consumers of TV and audio system
expect guarantee from the dealers (mean = 1.8). The consumer give equal
preference to door delivery and easy instalments facility.

V. Consumer preference and brand choice

The Discriminant analysis is used to find how the consumer preference

is discriminating among the different brands.

Table – 6.15
Tests of Equality of Group Means

Wilks'
Lambda F df1 df2 Sig.
Philips .994 .283 1 48 .597
LG .989 .522 1 48 .473
Samsung .977 1.118 1 48 .296
Thompson .992 .382 1 48 .540
Onida 1.000 .004 1 48 .949
Sony .983 .814 1 48 .371
Panasonic .931 3.576 1 48 .065
BPL 1.000 .022 1 48 .883
Videocon .909 4.785 1 48 .034

Eigenvalues

% of Cumulative Canonical
Function Eigenvalue
Variance % Correlation
1 .332(a) 100.0 100.0 .499

(a) First 1 canonical discriminant functions were used in the analysis.

Wilks' Lambda

Wilks'
Test of Function(s) Chi-square df Sig.
Lambda
1 .751 12.483 9 .187

259
 From the above tables it is found that consumer preference and brands
are not at all associate canonical correlation 0.499 and wilks lambder 0.751
shows that consumers are not in favour of one particular product, but they
expect good performance and reasonable price of the product.

VI. Consumer impression and brand choice

Discriminant analysis is used to identify how the impression elements

discriminate over the different brands.

Table – 6.16
Tests of Equality of Group Means

Wilks'
F df1 df2 Sig.
Lambda
Philips .907 .732 6 43 .626
LG .879 .987 6 43 .446
Samsung .712 2.898 6 43 .018
Thompson .920 .623 6 43 .711
Onida .863 1.133 6 43 .360
Sony .887 .916 6 43 .493
Panasonic .962 .281 6 43 .943
BPL .953 .352 6 43 .905
Videocon .781 2.010 6 43 .085

Eigenvalues

% of Cumulative Canonical
Function Eigenvalue
Variance % Correlation
1 1.423(a) 56.9 56.9 .766
2 .551(a) 22.0 79.0 .596
3 .373(a) 14.9 93.9 .521
4 .123(a) 4.9 98.8 .331
5 .027(a) 1.1 99.9 .162
6 .003(a) .1 100.0 .057

(a) First 6 canonical discriminant functions were used in the analysis.

260
 Wilks' Lambda

Wilks'
Test of Function(s) Lambda Chi-square df Sig.
1 through 6 .167 73.275 54 .042
2 through 6 .406 36.985 40 .607
3 through 6 .629 18.979 28 .899
4 through 6 .864 5.979 18 .996
5 through 6 .971 1.220 10 1.000
6 .997 .131 4 .998

The discriminant analysis table shows that brands are immaterial for the
consumers and consumers are impressed by the elements of impression form
any brands. So brands are getting their names by these element only.

VII. Complaining behaviour and Brand choice

Discriminant analysis is used to identify the complaining behaviour of

the consumers with respect to different brands.

Table – 6.17
Tests of Equality of Group Means

Wilks'
F df1 df2 Sig.
Lambda
Philips .887 1.434 4 45 .238
LG .912 1.080 4 45 .378
Samsung .941 .710 4 45 .589
Thompson .971 .332 4 45 .855
Onida .978 .257 4 45 .904
Sony .966 .402 4 45 .806
Panasonic .920 .974 4 45 .431
BPL .951 .584 4 45 .676
Videocon .978 .251 4 45 .908

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 Eigenvalues

% of Cumulative Canonical
Function Eigenvalue
Variance % Correlation
1 .369(a) 44.8 44.8 .519
2 .249(a) 30.2 75.0 .446
3 .167(a) 20.3 95.3 .378
4 .038(a) 4.7 100.0 .192

(a) First 4 canonical discriminant functions were used in the analysis.

Wilks' Lambda

Wilks'
Test of Function(s) Chi-square df Sig.
Lambda
1 through 4 .483 30.592 36 .723
2 through 4 .661 17.396 24 .831
3 through 4 .825 8.069 14 .886
4 .963 1.581 6 .954

The above analysis clearly ascertains that the consumers are enthusiastic
in complaining about the product. Their complaining behaviour is not at all
affected by the brand all the brands are treated equally in their complaining
behaviour.

262