ajeet (lg project)
TRANSCRIPT
A
PROJECT REPORT
ON
“STUDYING OF CONSUMER BEHAVIOUR IN AIR CONDITION AND REFRIGERATOR OF LG ELECTRONICS”
At
LG ELECTRONICS INDIA PRIVATE LTD
Submitted By: MONIKA YADAVRoll No :
Enrol No : Semester :
As per the requirements for the course of the full –timeMaster in Business Management
Under the guidance of
Table of Contents
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ACKNOWLEDGEMENT
PREFACE
INTRODUCTIONConsumer Behavior
Consumer Satisfaction & DissatisfactionConsumer Complaint Behavior
COMPANY PROFILEAbout LGEIL
Manufacturing Plants
Code of Ethics
H R Principles
Company Structure
Vision
Corporate Culture
Corporate Identity
Brand Identity
Online Shopping
Customer Service
Awards & Honors
Social Responsibility
Strategic Alliances
PRODUCTS PROFILEAir Conditioners
Refrigerators
RESEARCH METHODOLOGYResearch Design
Data Collection Methods
Execution of Survey Work
Analysis & Interpretations
FINDINGS
RECOMMENDATIONS
LIMITATIONS
SWOT ANALYSIS
APPENDIXQuestionnaires
BIBLIOGRAPHY
ACKNOWLEDGEMENT
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Success often comes to those who dare and act: it seldom goes to Timid "
Jawaharlal Nehru.
Expression of mind by words is a difficult task; I find it when it comes to an appeal of
fathomless gratitude and obligation. So, first of all I owe my head heartily to all who have
been inspirational, motivating and supportive throughout my project work undertaken
and endowed me with the most precious knowledge, the most powerful of all. Yes! My
report is the sensible effort of all those people mentioned, or not mentioned here. Still, it
is too less to express my deep thanks to them.
It is my privilege to extend my deep sense of thanks to LG Electronics India Private
Limited for providing all the necessary facilities.
I am immensely thankful to all teaching and non-teaching staff members of my Institute,
and last but not least my parents for their cooperation and support to make the
dissertation a successful task.
Monika Yadav
PREFACE
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In the general sense, the most important reason for studying consumer behavior is
the significant role it plays in our lives. Much of our time is spent directly in the
marketplace, shopping or engaging in other activities. A large amount of additional
time is spent thinking about products and services, talking to friend about them, and
seeing or hearing advertisements about them. In addition, the goods we purchase
and the manner in which we use them significantly influence how we live our daily
lives.Consumers are often studied because certain decisions are significantly affected
by their behavior or expected actions. For this reason, consumer behavior is said to
be an applied discipline. Such applications can exist at two different levels of analysis.
The Micro perspective seeks application of this knowledge to problems faced by the
individual firm or organization.
The micro perspective involves understanding consumers for the purpose of
helping a firm or organization accomplish its objectives.
On the macro, or aggregate, level we know that consumers collectively
influence economic and social conditions within an entire society.
To understanding consumer satisfaction about LG Consumer Durable Products
like Air Conditioners and Refrigerators and also know about the consumer opinion
about online shopping I choose this topic as my project. I try to cover all aspects
related to consumer satisfaction before purchase and after purchase of the product.
It provides insight into aggregate economic and social trends and can perhaps even
predict such trends. In addition, this understanding may suggest ways to increase the
efficiency of the market system of LG Products and improve the well-being of people
in society.
EXECUTIVE SUMMARY
During the winter project at LG Elecetronics India Pvt. Ltd, I have very well realized the
fact that practical learning is far better than classroom teaching. With this project I have
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learned how the consumer behaviour pattern works towards the these two product AC
and REFRIGERATOR and also how the individual organizations take their decisions
and their current investment trend in relation to the various consumer durable products
available.
My project STUDYING OF CONSUMER BEHAVIOUR IN AIR
CONDITTION AND REFRIGERATOR OF LG ELECTRONICS involves a
detailed study of the various consumer perception towards these products . It is
then followed by a market research and detail ananlysis in order to know the
current most used products and concerns of the dealers and distributors
identifying the potential market for this product and their expectations.
The report contains at first, the brief introduction about the company, the products and
services being offered by the company, detail ananlysis of different products offered by
different companies and then the findings and analysis of the research based on which
final suggestions and conclusion has been drawn.
I have also put forward recommendations that will help LG India Electronics Private
Limited to move a step ahead to be home appliances giant in India.
Introduction
CONSUMER BEHAVIOR
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The study of consumer behavior is the study of how individuals make decisions to
spend their available resources (time, money, effort) on consumption related items. It
includes the study of what they buy, why they buy it, when they buy it, where they
buy it, how often they buy it, and how often they use it.
Consumer behavior may be defined as:
.......... the decision process and physical activity individuals engage in when
evaluating, acquiring, using, or disposing of goods and services.
CUSTOMERS AND CONSUMERS
The term “Customer” is typically used to refer to someone who regularly purchases
from a particular store or company. The term “Consumer” more generally refers to
anyone engaging in any of the activities used in our definition of consumer behavior.
THE ULTIMATE CONSUMER
Our primary attention directed towards ultimate consumers, those individuals who
purchase for the purpose of individual or household consumption. Studying ultimate
consumers also reveals much about industrial and intermediate buyers and other
involved in purchasing for business firms and institutions.
INDIVIDUAL BUYER
The most commonly thought of consumer situation is that of an individual making a
purchase with little or no influence from other. However, in some case a number of
people can be jointly involved in a purchase decision
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BEHAVIOUR RELATED TO THE PURCHASE
Once the consumer makes the decision to purchase a product, there can be several
types of additional behavior associated with that decision. Two activities are of
primary importance:
Decisions on the product’s installation and use
Decision on product or services related to the item purchased
Decisions on Product Set-Up and Use
One set of implications flow from decision on product set-up and use. Three topics
are relevant here:
Providing information and assistance
Understanding the user’s consumption system
Decision about Warranties
PROVIDING INFORMATION AND ASSISTANCE
If the consumer purchases a major durable good such as Air condition, refrigerator
and so forth from a full-service retailer it would ordinarily require the store to
carefully install or set up the product and explain its operation to user.
The importance of information on product set-up and use becomes even more
critical in today’s self service economy. Consumers are buying many complicated
products from self-service discount outlets which may offer very little product
knowledge or installation assistance. As a result, they must rely almost exclusively on
whether literature comes with the product. Such a situation provides an added
impetus for manufactures to asses their product literature and makes sure it is
readable and understandable.
UNDERSTANDING THE USER’S CONSUMPTION SYSTEM
Even more fundamental than the provision of the information to consumers is the
marketer’s first understanding how his product is used by consumer and how this
product fits into the consumer’s “Consumption System”. For example, the marketer
needs to know how his product is used by consumers, not only to make improvement
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in its Quality and Functions, but also to suggest new users for it. If marketer were
research more thoroughly the use-environment and behavior of their product prior to
full-scale launching, we would undoubtedly see fewer failures and products more
carefully attuned to consumer’s lifestyle.
DECISIONS ABOUT WARRANTIES
A related factor concerning product setup and use has to do with product or service
warranty, which is promise by the manufacturer or seller that the product or service
is free from defects in materials and workmanship and that problems will be
corrected if failure occurs during the warranty period. An effective warranty can offer
several consumer benefits including the following:
Providing assurance of product quality and value
Increasing self-confidence about correctness of product choice
Reducing feelings of risk of ownership because of return or refund privileges
Reducing dissonance because if warranty assurance of Quality
Today, marketers are using warranties more as a competitive offensive
weapons than as a defensive tool.
A properly administered warranty program should include the following
components:
Use simple, clear and easy-to-understand warranty wording
Encouraging customers to use the warranty
Clarify who will execute the program and what standards must be met
Handle claims expeditiously and flexibly
Collect, analyze and use warranty information
Constantly monitor consumer and dealer response to invoking warranty
Promptly reimburse dealers or agents for warranty work
Monitor and control costs
DECISION ON PRODUCT OR SERVICES
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A second factor for the marketer to consider with regard to post purchase activities
concerns buyers interests in related products and services. This is another area of
potential profit that should be actively cultivated.
Because Buyers may become interested in related items, they need to be
made aware of the potential products that exist. Thus, literature enclosed with a
product could present other products in the line. Thus, the marketer’s tasks are to
determine what product mix is most appropriate to the firms. This is largely a
function of applying the marketing concept to identify products that may be related
in nature and can be effectively marketed.
CONSUMERS SATISFACTION/DISSATISFACTION
Satisfaction is an important element in the evaluation stage.
Satisfaction refers to the buyer’s state of being adequately rewarded in a
buying situation for the sacrifice he has made. Adequacy of satisfaction is a result of
matching actual past purchase and consumption experience with the expected
rewards from the brand in terms of its anticipated potential to satisfy the consumer’s
motives.
The concept of satisfaction is one about which there are presently few agreed
upon definition or approaches to measurement. Hunt has summarized the concept in
the following statement:
Satisfaction is a kind of stepping away from an experience and evaluation
it…..One could have a pleasurable experience that caused dissatisfaction because even
though pleasurable, it wasn’t as pleasurable as it was supposed or expected to be. So
satisfaction/dissatisfaction isn’t an emotion, it’s the evaluation of an emotion.
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Consumer from certain expectations prior to the purchase. These
expectations may be about:
The nature and performance of the product
The cost and efforts to be expended before obtaining the direct product or
service benefits
The social benefits or costs accruing to the consumer as a result of the
purchase
Advertising may often to be important factor influencing these expectations.
Consumer may have a variety of product performance expectations, includes what
the consumer hopes performance will be in terms of an ideal level, what would be fair
and equitable given the consumer’s expenditure of time and money in obtaining and
using the product, and what the consumer expects to actually occur.
Once consumers purchase and use a product, they may then become either
satisfied or dissatisfied. Research has uncovered several determinants which appear
to influence satisfaction, including demographic variables, personality variables,
expectation and other factors. For example, older consumers tend to have lover
expectation and to be more satisfied. Higher education tends to be associated with
lower satisfaction. Men tend to be more satisfied than women. The more confidence
one has in purchase decision making and the more competence in a given product
area, the greater one’s satisfaction to be.
The interaction between expectation and actual product performance
produces either Satisfaction or Dissatisfaction. However, there does not appear to be
merely a direct relation between the level of expectations and the level of
satisfaction. Instead, a modifying variable known as “Disconfirmation of Expectation”
is thought to be a significant mediator of this situation. When a consumer does not
get what is expected, the situation is one of disconfirmation. Such disconfirmation
can be of two varieties: a POSITIVE disconfirmation occurs when what is received is
better than expected, and a NEGATIVE disconfirmation occurs when things turn out
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worse than anticipated. Thus, any situation which judge the consumer’s judgment is
proven wrong is disconfirmation. Confirmation occurs if the expectations of
performance are met. Consumers expectations from product as well as whether
those expectation are met, are strong determinants, then, of satisfaction.
The emotional context in which product failure occurs may affect consumers
subsequent information processing. Research on the satisfaction/dissatisfaction
process has led to the proposition that disconfirmation is mediated by attribution
processing in which consumers seek to understand why product fail. Consumers seek
to know three features about the causes of a problem:
Stability (i.e. is it temporary or permanent)
Locus (i.e. the problem with the consumer or the company)
Controllability (i.e. is the problem within or outside the control of someone)
Research on attributes also indicates that attributes can lead to specific types
of emotional reactions. For example, if a consumer is in an angry mood because of
the day’s events prior to ordering a meal in a restaurant, he is liable to engage in
greater attribution processing over a poor meal being served than if the consumer
were not in a bad mood. Emotional context, therefore, interacts with disconfirmation
to affect attribution, which results in certain emotions influencing satisfaction or
dissatisfaction.
The result of satisfaction to the consumer from the purchase of a product or
service is that more-favorable post purchase attitudes, higher purchase intentions,
and brand loyalty are likely to be exhibited in a similar purchasing situation. Thus, as
long as positive reinforcement takes place, the consumer will tend to continue to
purchase the same brand. It is true, however, that consumers will sometimes not
follow these established patterns but will purchase differently simply for the sake of
novelty. On the other hand, if consumers are dissatisfied, they are likely to exhibit
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less-favorable post purchase attitudes, lower or nonexistent purchase intentions,
brand switching, Complaining Behavior and negative word-of-mouth.
Company Profile
About LGEIL
LG Electronics India Pvt. Ltd. (LGEIL), a wholly owned subsidiary of LG Electronics,
South Korea was established in January 1997 in India after clearance from the
Foreign Investment Promotion Board (FIPB). It is one of the youngest consumer
durable brands in the country today, encompassing an impressive portfolio of Colour
Televisions, Washing Machines, Air-Conditioners, Microwave Ovens, Refrigerators
(Direct Cool and Frost Free), PCs, Vacuum Cleaners, optical storage devices and GSM
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mobile phones. During the thirteen years of its existence in India, LG has earned a
premium brand positioning due to its superior quality, high product performance,
revolutionary technological delivery and warm service. In fact, today LG is recognized
as a leader in setting industry norms starting with the fastest ever-nationwide reach,
latest global technology and product innovation. The company aims to achieve a
turnover of Rs. 10,000 crore in 2006 and an enviable position in the GSM mobile
phone market with plans of setting up a new GSM plant at Pune. LG has been able to
craft out in eight years, a premium brand positioning in the Indian market and is
today the most preferred brand in the segment
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. Its vision
was to become a 'Health Partner' for its consumers worldwide and therefore
formulated its corporate philosophy to make peoples' lives better, convenient and
healthier. The entire range of LG air-conditioners have 'Health Air System', which not
just cools, but keeps pollution out. 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 customers a healthier environment to
live-in.
Financial PerformanceTurnover for 1997 Rs. 125 Crores Turnover for 1998 Rs. 485 Crores Turnover for 1999 Rs. 1056 Crores Turnover for 2000 Rs. 1903 CroresTurnover for 2001 Rs. 2216 Crores Turnover for 2002 Rs. 3178 CroresTurnover for 2003 Rs. 4653 CroresTurnover for 2004 Rs. 6488 Crores
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Turnover for 2006 Rs. 8236 Crores
The year 2001 witnessed LG becoming the fastest growing company in the
consumer electronics, home appliances and computer peripherals industry. The
company had till the month of October 2001 achieved a cumulative turnover of Rs
5000 Crores in India since its inception in 1997, making it the fastest ever Rs 5000
Crores clocked by any company in the Indian consumer electronics and home
appliances industry. Having achieved this milestone, LG achieved another benchmark
with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar year. LG
is poised to surpass its turnover target of Rs. 10,000 Crores next year.
This year, LG has emerged as the leader in Colour Televisions, Semi Automatic
Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens.
In Colour Televisions having set the sales target of one million units of Color
Televisions for 2005, LG has already achieved the one million mark in the month
ahead of its target.
LG India will become the export hub for LG worldwide catering to the Middle
East and African markets. The company aims to touch an export turnover of USD 3
billion by 2010, which will contribute to 30 per cent of LGEIL’s turnover.
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 over 50 lakh households in India.
Manufacturing Plants
LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in
1998, with an investment of Rs 500 Crores. This facility manufactured Colour
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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. The beginning of 2003 roll out of the first locally manufactured
Direct Cool Refrigerator from the plant at Greater Noida.
The Greater Noida manufacturing unit line has been designed with the latest
technologies at par with international standards at Korea and is one of the most Eco-
friendly units amongst all LG manufacturing plants in the world.
LG Electronics India announced the operations of its second Greenfield facility
at Ranjangaon, Pune 06 October 2004. The new plant in addition to its current
manufacturing facility at Greater Noida, U.P. (on the outskirts of Delhi) will enable the
company to expand its consumer reach and ensure better supply chain management
that would translate into a faster response time.
The new Greenfield facility is a wholly owned subsidiary of LG Electronics India
located at Ranjangaon, 50 km from the city of Pune. Covering over 50 acres, the
facility will be manufacturing Color Televisions, Air Conditioners, Refrigerators,
Washing Machines Microwave Ovens and Color Monitors by the end of 2005. The
plant that involves an investment of Rs.150 Crore (32 million USD) till 2005 will
commence operations now.
The facility will involve an Investment of USD 60 million by the year 2010. The
company’s announcement came in line with its strategy of attaining an overall
market leadership in India in GSM market after being leaders in the Consumer
Electronics and Home Appliance.
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Company Structure
LGEIL Management Structure and duties related to them are following:
MD (Managing Director) is responsible for all activities running by LGEIL.
VP (Vice President) is responsible for all activities related to Human Resource
& Management Structure.
Factory Head is responsible for activities related to Production
HOD (Head of Department) supervises the activities of LGEIL across India.
PGH (Product Group Head) supervise activities related to a particular product.
Name DepartmentDesignation Email ID's
K R Kim MD, LGEIL
Y V Verma HR & MS VP [email protected]
Sanjay Arora Production Factory Head [email protected]
S N Rai Logistics & Commercial HOD [email protected] V Rao Sales HOD [email protected] Gupta Sales Planning & Administration HOD [email protected] Kapoor Marketing HOD [email protected] Bose IT Products HOD [email protected] N Ajmera Finance HOD [email protected] K Gupta Account HOD [email protected] Aggarwal Corporate Planning HOD [email protected]
Abhay Sood Management Audit & Support Team Head [email protected]
R Manikandan IT Products PGH [email protected] Arora Refrigerators PGH [email protected] Bajpai Commercial Air Conditioners PGH [email protected] M Singh Consumer Electronics & GSM PGH [email protected] Chaturvedi Institutional Sales PGH [email protected] Raghwan PDP's & Home Entertainment PGH [email protected]
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Praveen Velecha GSM PGH [email protected] Jain Washing Machine PGH [email protected] Bajaj AC's PGH [email protected] Baisakhiya MWO & VC PGH [email protected]
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 mid-term and long-term vision anew to rank among the
top 3 electronics, information, and telecommunication firms in the world by 2010. As
such, we embrace the philosophy of "Great Company, Great People" whereby
only great people can create a great company, and pursue two growth strategies
involving "fast innovation" and "fast growth." Likewise, we seek to secure three core
capabilities: product leadership, market leadership, and people-centered leadership
Growth Strategy
Fast Growth: Fast growth is the result of strategies designed to expand the
market size and earnings quickly, in the process improving the growth rate in
terms of monetary value rather than quantity.
Fast Innovation: Fast innovation involves setting extremely high innovation
goals and securing a competitive edge, aiming for a target of 30% more than
what our competitors can do. Fast innovation also means 30% more sales and
improvement in our market share, new product development and unveiling
these 30% faster, technology development and establishment of corporate
value three years ahead of competitors.
Core Capabilities
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Product Leadership: Refers to the ability to develop creative, premium
products through specialized new technologies.
Market Leadership: Refers to the ability to achieve the "LG brand is No. 1"
goal backed by its formidable market presence worldwide.
People Leadership: Refers to talented people who perform excellently by
internalizing and practicing innovations.
Corporate Culture
Though a company implements perfect management strategies and boasts of
outstanding and talented people, it should have an appropriate corporate culture to
unleash the power of these capabilities.
No 'No'- Challenge: We foster a corporate culture whereby we suggest an
alternative before saying "no" and aggressively work towards fulfilling our
goal.
'We' not 'I': We pursue a corporate culture whereby we embrace a strong
teamwork.
Fun to work : We create a workplace where individuals' creativity and
freedom are respected and working is made fun.
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Corporate Identity
LOGO of LG Electronics
Symbol Mark
The letters "L" and "G" in a circle symbolize the World, Future, Youth, Humanity, and
Technology. Our philosophy is based on Humanity. Also, it represents LG's efforts to
keep close relationships with our customers in the world.
The logo consists of two elements; the LG letterforms in LG Grey and the face
symbol in the unique LG Red color. Red, the main color, represents our friendliness,
and also gives a strong impression of LG's commitment to the best. Therefore, the
shape or the color of this symbol mark must never be changed
Colors for Signature
Symbol mark and Logotype based on positive engraving method The reproduction of
LG colors must be carefully monitored to achieve the highest fidelity to the original
and any modifications could cause misunderstanding or misrepresentation of the LG
identity.
Therefore, it is important to use the colors that are shown here. Red(LG Red /
Pantone 207C) and gray(LG Gray / Pantone 431C) are the most recommended, but
gold(LG Gold), silver(LG Silver), and black(LG Black) could be used under certain
circumstances.
Appropriate color use is essential for the accurate use of LG's signatures.
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LG Slogan / Signature
"Life's Good" signature is an expression which reflects our belief that life is
enriched and enhanced by products that are ingeniously designed and
expertly built.
"Life's Good" expresses the heart or 'attitude' of LG world-wide.
"Life's Good" also expresses our will to provide solutions for an enriched,
good life by continuously developing innovative and delightfully smart
products.
"Life's Good" is a brand promise that delivers on our conviction in making
your life good.
The LG Electronics Life's Good signature consists of the LG logo and the LG letters
and the slogan Life's Good, set in the Charlotte Sans typeface, curved around the LG
symbol. The curving of the slogan reinforces LG's personality and uniqueness.
The consistent usage of this signature helps to clearly identify and connect every
division and product form LG Electronics across the globe.
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Online ShoppingTouch-and-feel. It's an innate part of a consumer-durable purchase that can be
experienced on the Internet — in an Arthur C. Clarke novel, of course! It is a futile
exercise for Indian companies to retail consumer durables using the Net as an
independent medium. However, a few durable majors and even fewer entrepreneurs
still have their eye on the virtual world with their feet firmly planted in the real one.
And four web models - company-owned online services, auction sites, web portals as
a platform for sale, and entrepreneurial routes like B2B2C - have reported healthy
growth in revenues.
In March, 2001, the 1,500-crore LG Electronics India launched
www.lgezbuy.com to offer an alternative channel for consumers. It was, after all
the first major initiative by a consumer appliance company in India to leverage the
power of Internet. While net penetration was still low in India, there was nothing to
stop manufactures from bypassing stores like his hand and instead connecting
directly with consumers. In fact, LG had done just that with www.lgnana.com in
Korea, where it had bypassed the trade and chosen to sell directly to consumers.
LG has chosen an entirely different model here to circumvent the problems of
channel conflict which have plagued manufactures the world-over. After LG’s online
business was launched, LG has hand-picked 99 other dealers, 30 run its exclusive
showrooms – to be part of its online business. So far, LG is limiting itself to 18 cities,
where Net connections are stable. LG has notched up Rs. 6 crore in sales. It’s not
small beer – www.rediff.com, India’s premier portal, reported Rs. 8 crore in e-
commerce revenues.
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Whenever a customer visits the LG’s website and orders a product from the
catalogue, the information reaches its division located at the Greater Noida factory.
The order is then forwarded to the relevant LG branch office. The branch Office, in
turn, passes the order to the internet dealer – through email, fax or phone. After the
dealer has delivered the product to the customer and collected the payment., he
then faxes delivery challan to the LG office as proof of delivery. If the customer pays
by credit card, LG offers an additional 2% margin.
Since volumes are currently small’ LG has chosen to limit the number of Net
dealers to one in every major locality. It’s a win-win situation. The dealer does not
have to make any investment of own in software. What’s more, it helps him develop
a relationship with a well-heeled, upscale clientele.
LG has chosen a sensible merchandising policy. Much of the product mix
online is relatively high-end. Although the 21”-inch CTV’s available, the focus is on its
MP3 player and recordable CDs, which are exclusively available online. Most dealers
are loath to stock such high-value, low-off take items – and since the typical surfer is
an early adopter of cutting edge tech products, the Net becomes an excellent
showcase.
Customer Service
LGEIL enjoys extensive service Network across the
length and breadth of the country. At present LG boasts
of more than 700 Service Centres.
Apart from it, LG also focusing on:
Service Centre Networks
Call Centre Numbers
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Product wise Service Centre commitment of response time
LG also launch a website www.lgservice.com for the consumer problems
and complaints about LGs products. Consumer first log on to website and fill all
details about product like product, model number, date of purchase, address and
description of problem face by consumer. After filling the Form consumer get the
Complaint Number. Now company takes necessary action for the resolution of
complaint as soon as possible after receiving the complaint. Consumer can also give
feedback about product he/she using.
The camp aim is at educating the customers about consumer durables and its
maintenance. The engineer at the camp guides the consumers by educating them on
the maintenance of the LG products. In addition, the customers could also avail free
service and attractive discount of 15% on spare and 15% discount on annual service
contracts of all LG electronics appliances. For LG products a service centre with a
turn-around time of two days are convene that assure to make the product as good
as new.
Awards & and Honors
Consumer Durable Retailer of the Year 2005
LG was presented the ‘Consumer Durable Retailer of the Year Award 2005’, for
outstanding performance in retailing. This award is considered as the biggest retail
award in India and hosted by ICICI.
These awards were instituted along with India’s leading consultancy firm in
the retail segment, KSA Tecnopak, as the knowledge partner. Interestingly, for the
first time in India, direct consumer feedback was taken at retail stores for the short-
listed entries and LG being the favorite, won the award for it retail excellence.
LG achieved Best Newsmaker in Consumer Durables in 2005
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The Business Today - Cirrus review of 50 companies witness a measure of image
management. LG ranked ‘No. 1’ achieving ‘Best Press in Consumer Durables
Category’. The clear winner left its competitors way behind, beat in all the three
scores-
Total image score
Total visibility score
Quality of exposure
LG has attained the 12th position among the top 50 companies on the
Business Today- Cirrus list. It has also ranked ‘No. 5’ in marketing and sales
activities among various industries.
EFY Electronics Organization of the Year Award and Award for
Best Product Category in Television Sets
LGEIL was named the EFY Electronics Organization of the Year 2005 for excellence in
electronics. LG also received the EFY Readers’ Choice Award for ‘Best Category in
Television Sets’. This award is received as the country’s top honor in the field of
electronics. It was given away in New Delhi on February 10, 2005 at the Habitat
Centre. The objective of the award is to recognize excellence in electronics across
various products, including components.
LG bags the Coveted NASSCOM ‘Indian IT Users Award’
The award was given on the basis of a survey conducted by NASSCOM in association
with IMRB. In addition to the survey, a special team at IMRB and NASSCOM conducted
physical audits for top three companies in each category. More than 200 companies
participated in the award evaluation on innovation basis.
LG ranked among world’s Top Three Companies
LG Electronics Inc., the $38 billion leading global manufacture of consumer
electronics, home appliances, mobile phones and information technology products,
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has been ranked among the world’s top three technology companies and as the 10 th
biggest in current sales by Business Week magazine.
Appearing in the ‘Info Tech 100’ issue of June,2005, this annual feature
spotlights an elite group of the world’s most influencing technology firms, the ‘Best
Performers’ in the global business market place. Based on financial data from
‘Standard & Poors’, Business Week evaluated the performance of different companies
over the past 12 months and ranked them on the basis of specific criteria, including
total revenue, revenue growth, return on equity and Shareholder return.
The ‘Info Tech 100’ list is compiled annually by Business week based on
10,000 publicity traded corporations, and subsequently, LG’s top 2004 ranking
recognize the successful growth and strategic focus, the company has achieved over
the past years.
Social Responsibility
LG is making efforts to minimize environmental pollution and to
prevent accidents which might occur during business operations,
to promote a policy to preserve the natural environment and
contribute to the overall health of our employees and communities
where we conduct our business.
The importance of environmental, safety, and health issue is increasing, and
demands a more active social role on behalf of our business circle. At the same time,
environmental and health policies provide new opportunities to create and nurture
new values.
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Motivated by this trend and recognizing that the environment, safety, and
health are significant topics to be discussed in management activity, LG is striving to
improve the environment, as well as the safety and health of our employees through
the accumulated experience and innovative technology as well as developing close
cooperation with regional society.
LG employees are committing themselves towards sincerely fulfilling
individual responsibilities in laying down a foundation for a prosperous future.
LG will consider environment, safety, and health issues during all phases of
management activity and consider it as an opportunity to value creation for
our clients.
LG will set strict standards in conjunction with the laws related to the
environment, safety, and health.
Strategic Alliances
26
As a response to the rapidly changing digital era, LG Electronics is aggressively
pursuing global partnership in selected business and technology areas by
establishing wide ranging strategic alliances with world leading companies.
In particular, with focus of digital management moving turning toward
becoming first mover in the market and leading the industry standard, LG Electronics
is concentrating on strengthening strategic alliances in the digital TV industry.
Products Profile
LG Electronics 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. Its vision
was to become a 'Health Partner' for its consumers worldwide and therefore
formulated its corporate philosophy to make peoples' lives better, convenient and
healthier The entire range of LG air-conditioners have 'Health Air System', which not
just cools, but keeps pollution out.
LG Electronics India is the fastest growing company in the consumer
electronics, home appliances and computer peripherals industry today. LG
27
Electronics is continually providing superior technology products & value for money
to over 50 lakh households in India.
AIR CONDITIONERS
LG’s Air Conditioners are feature packed for unmatched performance. Each
model being styled with internationally designed grills and sleeks body contours. All
power packed with state-of-art features. Just to ensure that everyone in the house
stays healthy and active.
Air Conditioners are divided into three categories.
COMMERCIAL AIR CONDITIONERS
Ceiling Cassette
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Capacity: Available in 1.5/2.0/3.0 /4.0 Tons
Features
This is a high aesthetic value machine and is mounted flush with the ceiling, exposing only 30 mm grills. The 4 Way air Distribution patterns make it ideal for commercial uses like showrooms, malls, restaurants, corporate board rooms as well as domestic applications like large living rooms.
Key Features Plasma Air Purification System Jet Cool Group Control Sleep Mode Self Diagnosis Function Auto Restart Operation Two Thermistor Operation High Ceiling Corresponding Operation
Floor Mounted Package
Capacity : Available in 11 & 16. 5 Tons
Features
These are Floor Mounted Package Units. These are ideal for offices, factories, shopping malls, multiplexes, hotels etc. The special feature of the machine is, having low noise level and high EER because of scroll compressors.
Key Features Easy Installation Compact and Light-weight Design All with Scroll Compressor High EER Long Refrigerant Piping Multiple Compressor System
LARGE AIR CONDITIONING SOLUTION
Single Packaged (Roof Top)
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Capacity : Available from 15 to 30 TR
Features
These are Self contained Unitary Systems which are mounted on the roof or outside the area required to be conditioned. These are ideal for Single Storey and Double Storey structures due to the high static available Applications range from factories, shopping malls, multiplexes, hotels etc.
Key Features Compact Design Easy Installation Low Noise Level Multiple Compressor System Easy Maintenance and Service Large Centrifugal Fan and Variable Pulley Non Glasswool Insulation
Variable Refrigerant Flow System (Multi V):
Capacity : from 5HP to 40HP in R-22 And 5 to 10 HP is also available in R-407c
Application : Residential, Restaurants, Office Buildings, Hotel Industries, Hospitals, etc
Features
A Variable Refrigerant Flow (VRF) system is a Vapor Compression System with Inverter compressor, where, the compressor motor speed is varied-- to meet the required room load.
Key Features Power Saving up to 40 %. Long refrigerant pipe length of 120
Meters. Capacity Modulation from 10% to 130 % Selection of different Indoor units
according to Interior Individual Control of each Indoor Unit
with remote Precise control of room temperature. Available in Cooling Only and HEAT PUMP
Models Self dignosis Function Auto addressing of Indoor units Out door unit urethane molding
ROOM AIR CONDITIONERSRoom Air Conditioners divided into Four Categories.
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WINDOWS AIR CONDITIONERS
LWA22G1RAE1Model Description2.0 Ton Windows Ac
Key Features
Anti-Bacteria Filter EnergyGuard Dry Mode Cooling Capacity-22000 Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Air Direction-4-Way Air Deflection Air Ventilation-Provided(Manual) Temp. Control-Thermistor
LWA19H1RAT5
Model Description 1.5 TON WindowsAc
Key Features Anti-Bacteria Filter Dry Mode Cooling Capacity-19000 Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation-Provided Manual Temp. Control-Thermistor
LWA22G1NA1
Model Description 2.0 Ton Windows Ac
Key Features
Anti-Bacteria Filter Cooling Capacity-22000 Operation Control-Mechanical Fan Speed Cooling/ Fan-3/2 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation Temp. Control-Thermostat
LWA19H1RDL5
Model Description 1.5 Ton, Windows AC
Key Features Anti-Bacteria Filter Dry Mode Cooling Capacity-19000 Energy Guard Operation Control-Electronic
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Fan Speed Cooling/ Fan-3/3 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation-Provided Manual Temp. Control-Thermistor
LWA12K1RPE5 Model Description
1.0 Ton, Windows AC
Key Features
Anti-Bacteria Filter 88 Segment Display+ Dry Mode Cooling Capacity-13200 Filter Cleaning Indicator Energy Guard Sleep Mode On/Off Timer Operation Control-Electronic Fan Speed Cooling/ Fan-3/3 Air Direction-12-Way Air Deflection Temp. Control-Thermistor
LWA18A1NA1 Model Description 1.5 Ton, Windows AC
Key Features Anti-Bacteria Filter Anti-Corrosive Gold Fins 88 Segment Display+ Rotary Compressor Sleep Mode With Off Timer Dry Mode Cooling Capacity-18000 Auto Air Swing Air Direction-4-Way Air Deflection Air Ventilation
SPLIT AIR CONDITIONERS
LSB24S1RAE1 Model Description 2 Ton, Split AC
Key Features Cooling Capacity-24000 Jet Cool Log Smart
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Sleep Mode Fan Speed(Cooling/Fan)-4/3 Auto Air Swing Air Direction-4-Way Air Deflection Temp Control-Thermistor On/Off Timer Dry Mode Chaos Air Flow Logic
FLOOR STANDING AIR CONDITIONERS
LP-K3065QC
Model Description Floor Standing AC
Key Features Timer setting Temp. Control Thermistor Soft dry operation Remote controller Simple Refrigerant gas R-22 Jet Cool Indoor Display Set Temp Fan Speed COOLING / FAN 4 Compressor Recip Auto Air Swing(2 way) Provided Air Direction 4 Way Air Discharge Horizontal
MULTI SPLIT AIR CONDITIONERS
LM-3661C2I
Model Description Multi Split AC
Key Features Time delay Function Soft dry Operation Sleep mode Refrigerant gas R-22 Remote controller Full Function Jet Cool Forced Operation Fan Speed COOLING / FAN 4 Rotary Compressor Auto Air Swing ( 2 way ) Provided Air direction 4 Way
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Air Discharge Bottom
LM-2461C2I Model Description Multi Split AC
Key Features Time delay Function Soft dry Operation Sleep mode Refrigerant gas R-22 Remote controller Full Function Jet Cool Forced Operation Fan Speed COOLING / FAN 4 Rotary Compressor Auto Air Swing ( 2 way ) Provided Air direction 4 Way Air Discharge Bottom
WHISEN AIR CONDITIONERS
LWA-22H1RDL1
Model Description 2 Ton, Windows AC
Key Features Temp. Control Thermistor Chaos Air Flow Magic Time Delay Function On/Off Timer Sleep mode Soft dry operation Fan Speed (COOLING/FAN) 4/3 Auto Air Swing Air Direction 3-Way Air Discharge Left/Right/Bottom Time Delay Function
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REFRIGRATORS
LG refrigerators divided into Four major categories:
SEMI FROST FRIDGE
GL-26TMQSFF
Model Description SFF Ref
Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner
GL-23TMTSFF-225L
Model Description 225 Ltr. SFF Ref
Key Features
Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner
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GL-19GMRSFF
Model Description SFF Ref
Key Features
Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Kangaroo Tray Deodoriser Dairy Corner
DIRECT COOL
GL-231GPRX
Model Description 230 Ltr. Capacity Direct Cool Refrigerator
Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray
GR-201TPQX
Model Description 200 Ltr. Capacity A-One Direct Cool Refrigerator
]Key Features
Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray
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GL-191RPDX
Model Description 190 Ltr. Capacity A-One Direct Cool Refrigerator
Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray
GR-181TPLX
Model Description 175 Ltr. Capacity Direct Cool Refrigerator
Key Features
Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray
GR-181TPQX
Model Description 175 Ltr. Capacity Direct Cool Refrigerator
Key Features
Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray
GR-181RPGX
Model Description 175 Ltr. Capacity Direct Cool Refrigerator
Key Features Key & Lock Sliding Door Bin Anti -Bacteria Seal Direct Cool Door Finish-PCM Cell Fress Crisper Dairy Corner Crystal Shelves Deodoriser Kangaroo Tray
FROST FREE
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GR-S592QLC
Model Description Ice Beam Door Cool Refrigerator
Key Features Kangaroo Tray Deodoriser F.I.R Lamp Sliding Door Bin Ice Tray Anti -Bacteria Seal Door Finish-Power Coated /PCM Cell Fresh Crisper
Color Options Champagne Gray Glossy Green Super White Silky Grey Super Inox Moon Silver Metallic Finish
GLT322GP Model Description Frost Free Ref
Key Features Deodoriser F.I.R Lamp Icebeam Door Cooling ( GL -S ) Fresh Zone Sliding Door Bin Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper
GL-T262GP
Model Description Frost Free Ref
Key Features Deodoriser F.I.R Lamp Icebeam Door Cooling ( GL -S ) Fresh Zone External MICOM Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper
GL-242QP
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Model Description 230 Ltr. Frost Free
Key Features Deodoriser F.I.R Lamp Fresh Zone Sliding Door Bin Anti -Bacteria Seal Door Cooling Door Finish-Power Coated /PCM Cell Fresh Crisper
SIDE BY SIDE REFRIGRATORS
267 NGB-Wood Cherry Perspective
Model Description DIOS Ref
Key Features
610 Ltr. Onwards 6 Sensor-Temperature Control Magic Crisper Miracle Zone Whisper Silent MICOM Control Focused Cooling Crushed Ice and Ice Cube Dispenser Refreshment Bar
GRP267FTB
Model Description DIOS Ref
Key Features
610 Ltr. Onwards 6 Sensor-Temperature Control Magic Crisper Miracle Zone Whisper Silent MICOM Control Focused Cooling Crushed Ice and Ice Cube Dispenser Refreshment Bar
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Research Methodology
The purpose of the methodology is to describe the research procedure. The
methodology will reveal why a particular design is being used for conducting
research.
RESEARCH DESIGN:
A research design is the specification of methods and procedures for acquiring the
information needed. It is the over-all operational pattern or framework of the project
that stipulates what information is to be collected from which source by what
procedures. Research design denotes the description of the research design. The aim
was to collect relevant information, which fulfills our requirement and can be
analyzed at a later stage of study without any problem. This was to be done in
minimum expenditure with least efforts and in a set period of time. For my project I
select ‘DESCRIPTIVE RESEARCH DESIGN’ to know Consumer Satisfaction about LG
products. This helped us in having enough provision for protection against bias and
maximizes reliability.
DESCRIPTIVE RESEARCH:
Descriptive study, as its names implies, is designed to describe something – for
example, the characteristics of the users of a given product, the degree to which
product use varies with income, age, or other characteristics, or the number who
bought a specific air conditioner, colour television, microwave oven, refrigerator,
washing machine.
Advantages of Descriptive Study:
Involve relatively large number of observation
Analysis is more objective
Averages and Percentages are calculated
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DATA COLLECTION METHOD:
The methodology reveals the methods of data collection. There may be primary
sources and secondary sources of data collection.
Collecting Secondary Data:
After deciding our objective I looked for collecting and studying secondary data. It
included extensive study of literature available in Annual reports of LG Electronics
India Private Limited, articles, newspapers, journals, magazines, handouts, pamphlets
describing the company and its products.
Studying of secondary data gave us an insight into the problem into hand. It
also provided us with clues and helped in designing primary research. It provided us
a more accurate picture about the functioning of LG Electronics India Private Limited.
Collecting Primary Data:
The objective of primary data is formulated on the basis of research objectives.
Objectives set the guidelines and directions of research planning. Formulating the
objectives offers the best feasible means of solution. The primary data for my study
was being collected by conducting survey. The tools for data collection used was
following types -
Telephone Interview:
The telephone interview is used in lieu of personal interviews. It is used because
information has to be collected quickly and inexpensively. By it I asked the consumer
about their satisfaction about LG Air Conditioners, Colour Television, Microwave
Oven, Refrigerator, Washing Machine. The Direct and Structured questions are asked
from consumers.
Questionnaires:
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This method of data collection is quite popular, particularly in case of big enquiries. A
questionnaire is a method of obtaining specific information about a defined problem
so that data, after analysis and interpretation, results in a better appreciation of the
problem.
In order to motivate respondents and to get best of the information from
them, it was tried to build questionnaire that is interesting, serve our objective,
unambiguous and easy to complete and is not burden someone. The aim was to
enable ease in analysis and facilitate easy classification of response to get
meaningful outcome within acceptable limits.
A few questions were in disguised, where the true purpose was hidden but
was sufficient to bring in the right information from respondents. Depending on the
requirement, the questions were kept open ended and closed ended. The sequence
of question in questionnaire was kept in a logical order. It included question based on
Linkert Scale, where attitude was to be studied and rank order scale where ranking
was required. After following a series of trial and changes the finally evolved
questionnaire was being used for survey work. I used the following types of
Questionnaires for LG Products:
Air Conditioners Questionnaire
Refrigerator Questionnaire
EXECUTION OF SURVEY WORK:
The survey work is that was done to collect primary data. In this phase we conducted “Consumer Survey”
by using questionnaires. I individually approached to individuals and got the questionnaire filled by them.
The individuals were randomly chosen. For collecting data I focused divided the consumers in six
categories:
Consumers of Air Conditioners
Consumers of Refrigerator
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For first five categories I take the sample of 100 consumers in each category, for last one I take the
sample of 78 consumers. As a results customer survey, I was able to pool ‘578’ records in our database.
For database, I take the lists of buyers of LG Products of previous 3 years. With it, I also take the
list from Service Centre of those consumers who complaint about product performance and problems. For
survey about online shopping, I take the list from Noida of those consumers who bought product as well as
who inquiry about products but not bought through it Online Shopping in Delhi NCR region.
ANALYSIS AND INTERPRETATION:
After collecting the questionnaire filled, I scanned each of entry ensuring that all relevant information
required for analysis is available and is in the form through which we can analyze. Adjusting was made
where required keeping in mind that it does not hampers the outcomes of our objectives. Editing of data
collected was done to detect errors and omissions and such corrections were made where required.
Further, coding of responses to assign numerated or symbols was done for easy and fast analysis.
Adopting suitable classes like Poor, Fair, Good, Very Good, Excellent helped in grouping and
categorization of responses. The data after collection, correction and classification was processed and
analyzed and compared in accordance with the outline made for the purpose at the time of developing
research plan. The classified data was finally subjected to cross tabulation analysis and represented
graphically for easy interpretation of results.
Findings
Findings are the results of the study. To know about consumer’s satisfaction about LG
products like Air Conditioners,Refrigerators, 2 questionnaires designed on following
ground:
Quality of Product Features
Quality of Product Performance
Quality of the Dealership
Quality of Dealer Salesman
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Quality of the Delivery Process
Quality of after Sales Service & Repairs
Quality of Complaint Management & Resolution
Value for Money
The following analysis was done to obtain the findings in accordance with our
objectives determined during the course of study.
AIR CONDITIONERS
To know about Consumer Satisfaction about LG Air Conditioners following Questions
asked in the Air Conditioners Questionnaire:
Quality of Product Features
Quality of Product Performance
Quality of the Dealership
Quality of Dealer Salesman
Quality of the Delivery Process
Quality of after Sales Service & Repairs
Quality of Complaint Management & Resolution
According to Questions of Air Conditioners Questionnaire following facts were
revealed:
Sample Size: 100 Consumers
Poor Fair Good Very Good Excellent
Quality of Product Features 0 5 33 47 15
Quality of Product Performance
0 4 38 43 15
Quality of the Dealership 0 3 30 49 18
Quality of the Dealer Salesman
1 1 43 42 13
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Quality of the Delivery Process
0 1 38 50 11
Quality of after Sales Service & Repairs
2 2 35 48 13
Quality of Complaint Management & Resolution
2 2 36 44 16
Figures are shown in Percentages
INTERPRETATIONS:
According to obtained Data, I divided the Consumers in three categories to judge the
overall performance of the Air Conditioners:
Below Expectation: It is the Mean of those Consumers who rated Air
Conditioner ‘Poor’ and ‘Fair’. Those consumers fall into the category of
Dissatisfied Consumers.
Meeting Expectations: It is the Mean of those Consumers who rated Air
Conditioner ‘Good’.
Exceeding Expectation: It is the Mean of those Consumers who rated Air
Conditioner ‘Very Good’ and ‘Excellent’. Those consumers fall into the
category of Delight / Satisfied Consumers.
ONSINTERPRETATIONS
OVERALL PERFORMANCE
Below Expectations Meeting Expectations Exceeding Expectations
3.26 36.14 60.60
Figures are in Percentages
Following is the result of Consumer Satisfaction about LG Air Conditioners:
Dissatisfied Consumers : 3.26%
Delight Consumers : 60.60%
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REFRIGERATORS
To know about Consumer Satisfaction about LG Refrigerators following Questions
asked in the Refrigerators Questionnaire:
Quality of Product Features
Quality of Product Performance
Quality of the Dealership
Quality of Dealer Salesman
Quality of the Delivery Process
Quality of after Sales Service & Repairs
Quality of Complaint Management & Resolution
According to Questions of Refrigerators Questionnaire following facts were
revealed:
Sample Size: 100 Consumers
Poor Fair Good Very Good Excellent
Quality of Product Features 0 2 39 48 11
Quality of Product Performance
0 2 36 51 11
Quality of the Dealership 1 0 42 49 8
Quality of the Dealer Salesman
1 3 38 51 7
Quality of the Delivery Process
0 3 40 47 10
Quality of after Sales Service & Repairs
1 5 48 35 11
Quality of Complaint Management & Resolution
1 7 45 39 8
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Figures are shown in Percentages
INTERPRETATIONS:
According to obtained Data, I divided the Consumers in three categories to judge the
overall performance of the Refrigerators:
Below Expectation: It is the Mean of those Consumers who rated
Refrigerator ‘Poor’ and ‘Fair’. Those consumers fall into the category of
Dissatisfied Consumers.
Meeting Expectations: It is the Mean of those Consumers who rated
Refrigerator ‘Good’.
Exceeding Expectation: It is the Mean of those Consumers who rated
Refrigerator ‘Very Good’ and ‘Excellent’. Those consumers fall into the
category of Delight / Satisfied Consumers.
ONSINTERPRETATIONS
OVERALL PERFORMANCE
Below Expectations Meeting Expectations Exceeding Expectations
3.71 41.14 55.15
Figures are in Percentages
Following is the result of Consumer Satisfaction about LG Refrigerators:
Dissatisfied Consumers : 3.71%
Delight Consumers : 55.15%
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Recommendations
1. LG Electronics should give more attention on its Quality of After Sales Services
because it helps the company to increase customer’s satisfaction and retain the
customers.
2. LG Electronics should give more advertisement in Magazines & Newspapers to
remind the people about their new ranges of products.
3. LG Electronics should maintain the communication through feedback. They
should take time-to-time feedback from dealer about customer satisfaction to
know about the customer perception about durable products.
4. LG Electronics Consumer Durable Products should be economical in price.
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5. LG Electronics should find out the factors are being looked for which the
customers are buying the brand. This will help in making appropriate message
in advertisement so that that advertisement will much focused and targeted.
6. LG Electronics should prefer the rural areas also for selling its consumer
durables products.
7. LG Electronics should make the provision for exchange offer time-to-time, it
may generate sale.
8. LG Electronics should increase knowledge and ability of Dealers to explain
finance options if requested.
9. LG Electronics should provide all details related to any promotions, company
schemes or discount applicable at the time of purchase.
10. LG Electronics should provide more information about features and
specifications of consumer durables such as size, maintenance, usage and
warranty etc.
11. LG Electronics should make sure that Salesman show better ability to listen,
understand and answer queries.
12. LG Electronics should ensure that the company is innovative and introduces
new products to meet new customer’s needs.
13. LG Electronics provide quality and latest products which help company to face
the challenges made by competitors.
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14. Direct appeal to end-users should be made, the primary sale become very
easy.
15. Word-of-mouth can be generated by keeping the existing customers.
Limitations
1. As per the project involved the marketing research using questionnaires, views
expressed by the respondents are confined to elements of questionnaire. But I
tried to get more information through general question so that I could reach at
the clear picture of the situation.
2. Between the customer and interviewer, due to differing perceptions,
communications errors in the form of miscomprehension, selective perception
creeps in. In this case, errors were unavoidable and thus might have added to
slight inaccuracy in my results.
3. When the dealers were interviewed regarding customer’s feedback, it is quite
possible that the personal biases of dealers might have crept in.
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4. All consumers are not alike. Thus the results may not hold true for every
individual.
5. In some instances respondents may not have revealed the truth.
SWOT Analysis
With the help of this analysis we are able to know the strength, weakness,
opportunity and threats of LG Electronics Consumer Durables Products for research
work and study.
STRENGTH
1. LG Electronics is wholly own subsidiary.
2. LG Electronics is driving comfortably on its global brand image and technology.
3. LG Electronics has well-established Research & Development Centre.
4. LG Electronics is flexible in their strategy and adjusts accordingly to the demand.
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5. LG Electronics market share across the globe is high hence funding is not a
problem.
6. LG Electronics appointed the Indian as Product Heads because they have better
understanding Indian values.
WEAKNESS
1. LG Electronics has launched number of new ranges in consumer durables product
at a time and thus has unequal success rate of its products.
2. LG Electronics not able to utilize efficiently the image they have created at pace
rate.
3. LG Electronics could not improve their sales services up to the expectations of
customers.
4. LG Electronics left the lower segment unexplored.
OPPORTUNITY
1. The buying capacity of Indian consumer is continuously increasing.
2. India is a fast developing market, and remained unexplored fully.
3. A competitive market helped LG Electronics to create a niche for itself.
4. India can be made a base for export to other countries due to its favorable
policies and regulations.
THREATS
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1. A large number of companies is already presenting the market, so a though
competitions prevails.
2. The new innovative consumer durables might not fulfill the expectations and may
be rejected.
3. Political destabilizations may also occur.
4. Always needs to be alert to keep an eye on changing environment.
Questionnaire for Air Conditioners
Name: ………………………………………………………………………………………………….
Address: ………………………………………………………………………………………………
Telephone Number: ……………………… Mobile: …………….……………………………
Model: …………………………………………. …………………………………………………….
1. Overall Quality of Product Features: Simplicity of understanding and applying operational instructions given in manual Ease of using remote Location and design of control panel Usefulness of auto air swing, fan and speed regulator Quality and usefulness of Dehumidifier, Temperature display Quality of anti-bacteria filter/dust filter Usefulness of Auto-off/ Memory/Sleep function Ease of using Air Conditioner Availability of Power saving options
2. Overall Quality of Product Performance: Durability of Air Conditioner Reliability of Air Conditioner (ability to work with low maintenance requirement) Ability to work with minimum sound Air throw speed and power of cooling of the room
3. Overall Quality of Dealership: Ease of locating Dealer Showroom Ambience of dealership showroom, cleanliness etc (look, feel, layout etc) Availability of brochures / leaflets / other information material about product Reputation, honesty and integrity of the Dealers Availability of information in newspaper, magazines, company websites etc on durable dealer
showrooms
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ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
4. Overall Quality of the Dealer Salesman: Availability of sales person to attend to you Ability to listen to you and understand your queries Providing complete information about features and specifications such as size, maintenance,
usage and warranty etc Knowledge of salesman about all Air conditioners Models Knowledge of salesman on various cost related parameters like dealer discounts, schemes etc Willingness to provide demonstration of the product, if requested Ease of placing an order for the model selected Providing complete documentation at the time of purchase Willingness to arrange for delivery of the product
5. Overall Quality of the Delivery Process: Time taken for delivery of the product to your required destination Ability to deliver the Air Conditioner at committed time Ability to ensure no hidden costs related to installation Condition of the product on delivery Completing the installation of the product to your satisfaction Conducting proper and complete demonstration of the Air Conditioner Provision complete explanation of documentation and warranty aspects Provision of contact details in case of problems
6. Overall Quality Of After Sales Service and Repairs: Ease of access to authorized service/repair engineer Time taken to respond to customer requests for service/repair Convenience of time fixed for servicing /repairs Ability of the service/repair engineer to understand your requirements & resolve issues Courtesy and patience of service engineer while listening to customer issues Ability of service/repair engineer to resolve problem on first visit Advice provided on other service needs, if any, over and above your requirements Accuracy of estimate provided to actual cost paid Ensuring That Periodic Visits Are Made As Per Contract
7. Overall Quality of Complaint Management and Resolution: Ease of contacting dealer in case of problems Availability of Helpline/FAQs etc at company website Ease of accessing Customer Service Helpline Courtesy and patience shown while listening to customer issues Knowledge and ability of Helpline personnel to understand customer issues Ability to resolve customer issues on first call to Helpline Clarity in communicating service and repair related information such as time, costs etc.
8. Value for Money:
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ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
Date: ……………….. Signature: …………………..
Questionnaire for Refrigerators
Name: ………………………………………………………………………………………………….
Address: ………………………………………………………………………………………………
Telephone Number: ……………………… Mobile: …………….……………………………
Model: …………………………………………. …………………………………………………….
1. Overall Quality of Product Features: Simplicity of understanding and applying operational instructions given in the manual Ease of operating various features of the Refrigerator Overall exterior aesthetics / styling of refrigerator and door interior Capacity of freezer cabinet Design of the storage cabinet Compartmentalization of the storage cabinet, vegetable tray design, egg tray etc Provision and location of deodorizer, the lamp, freezer thermostat, storage cabinet thermostat etc Provision of moisture controller, door cooling system, water dispenser etc
2. Overall Quality of Product Performance: Durability of the product Reliability of the product (ability to function with low maintenance requirement) Ability to work with minimum sound Extent of cooling in refrigerators (including freezer) Durability of vegetable tray, egg tray and other internal parts of the refrigerators
3. Overall Quality of Dealership: Ease of locating Dealer Showroom Ambience of dealership showroom, cleanliness etc (look, feel, layout etc) Availability of brochures / leaflets / other information material about product Reputation, honesty and integrity of the Dealers Availability of information in newspaper, magazines, company websites etc on durable dealer
showrooms
4. Overall Quality of the Dealer Salesman: Availability of sales person to attend to you
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ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
Ability to listen to you and understand your queries Providing complete information about features and specifications such as size, maintenance,
usage and warranty etc Knowledge of salesman about all Refrigerators Models Knowledge of salesman on various cost related parameters like dealer discounts, schemes etc Willingness to provide demonstration of the product, if requested Ease of placing an order for the model selected Providing complete documentation at the time of purchase Willingness to arrange for delivery of the product
5. Overall Quality of the Delivery Process:
Time taken for delivery of the product to your required destination Ability to deliver the Refrigerator at committed time Ability to ensure no hidden costs related to installation Condition of the product on delivery Completing the installation of the product to your satisfaction Conducting proper and complete demonstration of the Refrigerator Provision complete explanation of documentation and warranty aspects Provision of contact details in case of problems
6. Overall Quality Of After Sales Service and Repairs: Ease of access to authorized service / repair engineer Time taken to respond to customer requests for service / repair Convenience of time fixed for servicing / repairs Ability of the service / repair engineer to understand your requirements & resolve issues Courtesy and patience of service engineer while listening to customer issues Ability of service / repair engineer to resolve problem on first visit Advice provided on other service needs, if any, over and above your requirements Accuracy of estimate provided to actual cost paid Ensuring That Periodic Visits Are Made As Per Contract
7. Overall Quality of Complaint Management And Resolution: Ease of contacting dealer in case of problems Availability of Helpline / FAQs etc at company website Ease of accessing Customer Service Helpline Courtesy and patience shown while listening to customer issues Knowledge and ability of Helpline personnel to understand customer issues Ability to resolve customer issues on first call to Helpline Clarity in communicating service and repair related information such as time, costs etc.
8. Value for Money:
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ExcellentVery GoodGoodFairPoor
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ExcellentVery GoodGoodFairPoor
ExcellentVery GoodGoodFairPoor
Date: ……………….. Signature: ………………….
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