CHAPTER-1

INTRODUCTION

1.1 Industry – Consumer Durables (Electronic Appliances)

Indian consumer durables market used to be dominated by a few domestic players like

Godrej, Kelvinator, and Voltas. But post-liberalization many foreign companies have

entered into India, Indian players and dominating the market. The major categories in

the market are CTVs, refrigerators, air-conditioners and washing machines. India

being the second fastest growing economy with a huge consumer class has resulted in

consumer durables as one of the fastest growing industries in India. LG and Samsung,

the two Korean companies have been maintaining the lead in the industry with LG

being the leader in almost all the categories. The rural market is growing faster than

the urban markets, although the penetration level in rural area is much lower. The

CTV segment is expected to the largest contributing segment to the overall growth of

the industry. The rising income levels, double-income families and increasing

consumer awareness are the main growth drivers of this industry.

Companies in electronic industry sell household appliances, cameras, computers, and

other electronic goods. Major product segments include computer equipment, TVs,

and major household appliances. Other products include video equipment (video

recorders, DVD players, and electronic games).Technological innovation and the need

to replace or upgrade products drive demand, which also depends on consumer

disposable income. Profitability for individual companies depends on the ability to

generate store traffic and repeat business, as well as effective merchandising.

1
1.2 Profile of the Company

For the purpose of study the researcher has taken Samsung as the company.

1.21Samsung

Samsung Electronics commenced its operations in India in December 1995 and is

today a leading provider of Consumer Electronics , IT and Telecom products in the

Indian market. Samsung India is the Regional Headquarters for Samsung’s South

West Asia operations, which provides employment to over 8,000 employees with

around 6,000 employees being involved in R&D. Samsung India achieved a sales

turnover of US$3.5 billion.

Samsung began operations in India through its manufacturing complex located at

Noida (UP), which today houses facilities for Colour Televisions (including 3D, LED

and LCD Televisions), Mobile Phones, Refrigerators, Washing Machines and Split

Air Conditioners categories. Samsung India has two R&D Centres in India – at Delhi

and Bangalore .While the Delhi R&D Centre develops software solutions for hi-end

televisions such as Plasma TVs, LCD TVs and Digital Media Products, the Bangalore

R&D Centre works on major projects for Samsung Electronics in the area of telecom,

wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital

Printing and other multimedia/digital media as well as application software. Samsung

India is a market leader in product categories like LED TVs, LCD TVs, Slim TVs and

Side by Side Refrigerators. While it is the second largest mobile handset brand in

India, it leads in the smart phone segment in India. Samsung India has won several

awards and recognitions for both its corporate initiatives as well as its product

innovations in audio visual, home appliance, IT and telecom product categories.

2
From its inception as a small export business in Taegu, Korea, Samsung has grown to

become one of the world's leading electronics companies, specializing in digital

appliances and media, semiconductors, memory, and system integration. Today

Samsung's innovative and top quality products and processes are world recognized.

This timeline captures the major milestones in Samsung's history, showing how the

company expanded its product lines and reach, grew its revenue and market share,

and has followed its mission of making life better for consumers around the world.

For over 70 years, Samsung has been dedicated to making a better world through

diverse businesses that today span advanced technology, semiconductors, skyscraper

and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more.

Our flagship company, Samsung Electronics, leads the global market in high-tech

electronics manufacturing and digital media.

1.22 Samsung Electronics

i. Samsung Electronics is a semiconductor company.

ii. Samsung Electronics Co., Ltd. is a South Korean multinational electronics

company headquartered in Suwon, South Korea.

iii. Stockprice: 005930 (KRX) ₩ 13,15,000 -10,000.00(-0.75%) GMT+9 -

Disclaimer

iv. Headquarters: Suwon, Gyeonggi-do, South Korea

v. Founder: Byung-Chull Lee

vi. Founded: January 13, 1969

vii. CEO: Kwon Oh Hyun, Boo-Keun Yoon, Jong-Kyun Shin

3
1.23 Organizational structure of Samsung

Fig 1.1 Organizational structure of Samsung

1.3 Vision and Mission

a. Vision - "Inspire the World, Create the Future"

b. Mission - “To inspire the world with innovative technologies, products and

designs that enrich People’s lives and contribute to a socially responsible,

sustainable future”.

This vision is at the very core of our commitment to lead innovations in technology,

products and solutions that inspire communities around the world to join our

aspiration for creating a better world full of richer digital experiences. As we

recognise our responsibility as a creative leader in the global society, we also dedicate

our efforts and resources to offering new values to the industry and customers while

fulfilling shared values of our employees and partners. At Samsung Electronics, we

want to create a future that is exciting and promising for all together.

4
As a guide to common understanding and measurable goal, a set of specific objectives

is incorporated into our vision. By 2020, we seek to achieve annual sales of USD 400

billion while placing Samsung Electronics’ overall brand value among the global top.

Three key strategic pillars that are now part of our culture, business operation and

management describe the governing initiatives to this end: ‘Creativity ’, ‘Partnership’

and ‘Great People’.

We pride ourselves on delivering the world’s best products through operational

excellence and innovation prowess. As we look forward to exploring new business

areas including healthcare and biotechnology, we are excited for new challenges and

opportunities ahead. Samsung Electronics will continue to build on top of its current

achievements new capacity and expertise to further its competitiveness and its history

of innovation.

1.4 Strengths and Weakness

1.41 Strengths

a. Hardware integration with many open source OS and software.

b. Excellence in engineering and producing hardware parts and consumer

electronics.

c. Innovation and design.

d. Focus on environment.

e. Low production costs.

f. Largest share in mobile phones and 2 place in smartphones sales.

g. Ability to market the brand.

5
1.42 Weakness

a. Patent infringement

b. Too low profit margin

c. Main competitors are also largest buyers

d. Lack its own OS and software

e. Focus on too many products

1.5 Objectives

For the purpose of study the researcher has formulated the following obejectives :

a. To analyze various dimensions of sales promotion employed by Samsung.

b. To study the impact of sales promotion on brand equity perception.

c. To study the impact of sales promotion on customer preference.

1.6 Scope

The scope of the study are the following :

a. The study will focus on the impact of promotional strategies used by samsung

on consumer preference.

b. The study will limit the result up to the conclusion of the selected Samsung

retail and the output that the customers from the various segments will

provide.

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1.7 Methodology

a. Sampling Technique

A well structured self designed standardized questionnaire was prepared for

the collection of necessary primary data to know the effects of sales

promotion . A convenience sampling technique is used which is comprising of

120 respondents.

Convenience sampling is a type of nonprobability sampling in which people are

sampled simply because they are "convenient" sources of data for researchers. In

probability sampling, each element in the population has a nonzero chance of

being selected through the use of a random selection procedure. Nonprobability

sampling does not involve nonzero probabilities of selection. Rather, subjective

methods are used to decide which elements should be included in the sample

Type of Study

The type of study was Descriptive research.

b. Source of Data Collection

i. Data Collection from Primary Sources

A survey was conducted involving a self designed standardized

questionnaire to the customer respondents. Respondents were asked about a

variety of questions regarding their reasons to choose a brand .

ii. Data Collection from Secondary Sources

The secondary sources are data which were collected for some purpose and it

already exists somewhere. The secondary source of information here includes

library resources, articles in various newspapers and magazines, product catalogs

7
brochure and online resources like company websites, online reports and

articles.

Sample Size

Sample size, N=120 was taken for the research.

Techniques proposed: For the purpose of data analysis various techniques are used

like Regression, Mean and Standard Deviation.

Regression

Regression analysis is a statistical process for estimating the relationships among

variables. It includes many techniques for modeling and analyzing several variables,

when the focus is on the relationship between a dependent variable and one or

more independent variables. More specifically, regression analysis helps one

understand how the typical value of the dependent variable (or 'Criterion Variable')

changes when any one of the independent variables is varied, while the other

independent variables are held fixed. Most commonly, regression analysis estimates

theconditional expectation of the dependent variable given the independent variables

that is, the average value of the dependent variable when the independent variables

are fixed. Less commonly, the focus is on a quantile, or other location parameter of

the conditional distribution of the dependent variable given the independent variables.

In all cases, the estimation target is a function of the independent variables called

the regression function. In regression analysis, it is also of interest to characterize the

variation of the dependent variable around the regression function which can be

described by a probability distribution.

8
In the case of simple regression, the formulas for the least squares estimates are

where is the mean (average) of the values and is the mean of the

values.

Mean

Mean refers to one measure of the central tendency either of a probability

distribution or of the random variable characterized by that distribution. In the case of

a discrete probability distribution of a random variable X, the mean is equal to the sum

over every possible value weighted by the probability of that value; that is, it is

computed by taking the product of each possible value x of X and its probability P(x),

and then adding all these products together, giving . An analogous

formula applies to the case of a continuous probability distribution. Not every

probability distribution has a defined mean; see the Cauchy distribution for an

example. Moreover, for some distributions the mean is infinite: for example, when the

probability of the value is for n = 1, 2, 3, ....

Standard deviation

Standard deviation is represented by the Greek letter sigma (σ) , shows how much

variation or dispersion from the average exists. A low standard deviation indicates

that the data points tend to be very close to the mean (also called expected value); a

9
high standard deviation indicates that the data points are spread out over a large range

of values.

The standard deviation of a random variable, statistical population, data set,

or probability distribution is the square root of its variance. It is algebraically simpler

though in practice less robust than the average absolute deviation. A useful property

of the standard deviation is that, unlike the variance, it is expressed in the same units

as the data. Note, however, that for measurements with percentage as the unit, the

standard deviation will have percentage points as the unit.

RESEARCH AREA Delhi

SOURCE OF INFORMATION Primary and Secondary

TOOLS USED FOR DATA Questionnaire

COLLECTION

TYPE OF QUESTIONNAIRE Standardized

STATISTICAL TOOLS USED MS-Excel, SPSS

SAMPLE SIZE 100-150

SAMPLE UNIT Customers of Samsung in North

Delhi .

SAMPLING METHOD Convenience Sampling

UNIVERSE OF STUDY All customers of Samsung

Table no. 1.1 Research Methodology Framework

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1.8 Hypothesis

Ho1 There is no significant impact of sales promotion on brand equity perception.

Ho2 There is no significant impact of sales promotion on consumer preference.

Ha1 There is significant impact of sales promotion on brand equity perception.

Ha2 There is significant impact of sales promotion on consumer preference.

1.7 Reliability Test

Case Processing Summary

N %

Valid 30 96.8

Cases Excludeda 1 3.2

Total 31 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's N of Items
Alpha

.935 16

11
 CHAPTER-2

LITERATURE REVIEW

Kristof De Wulf, Vlerick Leuven Gent Management School, Gent, Belgium , Gaby

Odekerken-Schro¨der, Faculty of Economics and Business Administration,

Maastricht University, Maastricht, The Netherlands, and Frank Goedertier and Gino

Van Ossel, Vlerick Leuven Gent Management School, Gent, Belgium conducted a

research on the topic “ Consumer perceptions of store brands versus national brands” ,

Journal of Consumer Marketing Volume 22 · Number 4 · 2005 · 223–232. The

objective of this study is threefold. First, the authors want to use taste tests to assess

how four store brands that are differently positioned compare to one national brand in

terms of perceived brand equity. Second, the authors want to investigate whether

brand equity of storeversus national brands is determined by current brand loyalty

towards these bragnds. Third, they want to find out whether store patronage has

aninfluence on perceived brand equity of store versus national brands. The results

confirm the common belief that private label products can offer the same or even

better quality than national brands, but at a lower price.

Dr. Rashid Saeed, Fareeha Nisar, Rab Nawaz Lodhi, Dr. Moeed Ahmad, Dr.

Hafiz Muhammad Arshad Assistant Professor, Department of Management

Sciences, Comsats Institute of Information Technology, Sahiwal, Pakistan conducted

a research on the topic “Impact of Sales Promotion on the Consumer Loyalty in the

Telecommunication Industry in Pakistan” , J. Basic. Appl. Sci. Res., 3(5)901-907,

2013. Research Objectives are: To determine relationship between sales promotion

and customer loyalty. To investigate the role of sales promotion in retaining the

12
customers and to explore the sales promotion programs that are liked among the

telecom users in Pakistan. The summary of the results can be concluded that the sales

promotion increases the consumer loyalty and as the sales promotion expenditures

increases so does the consumer loyalty. In practicality, this increasing trend has also

opened many dimensions of customer response. The consumers are more prone to

sales promotion and exhibit switching behavior between two or more networks to take

the advantage of discounts. As the results also indicate that, the monetary savings

have high impact on the consumer loyalty as compare to the other factors. But it does

not mean that tendency of being loyal or switch between the networks is due to the

quality of services during the time period of sales promotion.

Oyedapo Williams , Akinlabi Babatunde and Sufian Jeleel Lagos State University

External System , conducted a research on the topic “The impact of sales promotion

on organization effectiveness in Nigerian manufacturing industry” . The overall

objective of this study is to survey the extent to which sales promotional strategies

affect the effectiveness of Nestle Food Plc in Nigeria and to determine the level of

customers’ loyalty and acceptance of beverage drink products through the use of sales

promotion strategies adopted by beverage drink companies in Nigeria. From the

analysis of the data collected and interpretation of results, it is concluded that there

has been an increase in the usage of sales promotion by beverage drink companies.

Sales promotion is normally used to boost sales thereby increasing the profit (i.e.

between 2007 and 2008, gross profit margin improved from 36.85% in 2007 to

39.51% in 2008). The most significant sales promotion techniques that contributed to

higher performance in the company are special sales, price off and coupons. The low

significant techniques are sweepstake and gifts.

13
M.Karunanithy, S.Sivesan Senior Lecturer, Department of Marketing, Faculty of

Management Studies and Commerce, University of Jaffna, Sri Lanka, Lecturer,

Department of Marketing, Faculty of Management Studies and Commerce, University

of Jaffna, SriLanka , conducted a research on the topic “An Empirical Study on the

Promotional Mix and Brand Equity:Mobile Service Providers” , ISSN 2224-6096

(Paper) ISSN 2225-0581 Vol.3, No.3, 2013. The main objective of the study is to find

out the impact of the promotional mix on the brand equity and sub objective is :- To

find out the factors that determine the promotional mix and brand equity and to

suggest the Mobile service providing companies to build brand equity. This study

examines how promotional mix i.e. advertising, personal selling, sale promotion,

public relations and direct marketing affect brand equity dimensions and brand equity.

The findings suggest that promotional mix have positive effects on brand equity that

accompaniedthe other research results. In sum, personal selling, advertising, direct

marketing, public relations and sales promotions should be improved and developed

as brand creating factors.

Haresh B. Vaishnani Assistant Professor, Department of Business Management

Saurashtra University , conducted a research on the topic , “Effects of Sales

Promotions on Consumer Preferences and Brand Equity Perception”(With specific

reference to FMCG Products) , 2011 , thesis PhD, Saurashtra University. Basic

objectives of sales promotion are: Increasing the buying response of ultimate

consumers , Increasing the selling efforts and intensity by dealers as well as by sales

personnel and Supplementing and co-coordinating the efforts of advertising and

personal selling. Findings conclude that Cash discount is one of the widely used Sales

promotions Scheme on various FMCG products. Testing the hypothesis, it is found

14
that male and female attitude towards the cash discount as one of the sales promotion

schemes do not differ significantly. In other words, both gender categories have same

attitude towards cash discount. Also, it does not differ according to various

Employment statuses, family size, (Number of family members), family type (joint or

individual family) and marital status (Married or Unmarried) of the respondents.

Blattberg et al. 1995; Roberts 1995 conducted a research on the topic “Effects of

Sales Promotions on Consumer Preferences & Brand Equity Perception”. Research

objectives are to study the consumer attitude towards the cash discount as a sales

promotion scheme , to study the consumer perception towards brand equity sources

considering sales promotional schemes and to study consumer preference of sales

promotion schemes across demographic variables. In the course of any sales

promotion exercise, management should strategically facilitate the exercise so that

customers do not doubt the reality of the programme by using credible techniques. For

instance, very incredible prize like winning over a thousand brand new automobiles

should be avoided. In addition, the study find out that organization promotion

strategies enhance consumer buying pattern.

Wenbo Cui , Aalborg University , September 2011 conducted a research on the topic

“Creating consumer based brand equity in the chinese sports shoes market” The

objective of this project is to explore and measure the effects of promotional activities

and dimensions of brand equity on consumer based brand equity theoretically and

empirically. The findings of regression coefficients and t-text clarify word of mouth

has highest level, while store image has the lowest. That is, word of mouth has most

15
dominate level positive effect on brand loyalty, and store image has the lowest level.

Angel f. Villarejo-ramos has been Professor of Marketing at Seville University

(Spain) and Manuel j. Sa´ nchez-franco has been Professor of Marketing and

Communication at Seville University (Spain) conducted a research on the topic “The

impact of marketing communication and price promotion on brand equity” , 5th April,

2005. Objective is to study the impact of marketing communications and price

promotion on brand equity. The results indicate the positive effect of marketing

communication on brand equity, and offer strong support for the measures of

perceived quality, brand loyalty, brand awareness and brand image as antecedents of

brand equity.

Dr. Surinder Singh Kundu Assistant Prof. & Incharge, Department Of Commerce,

Chaudhary Devi Lal University, Sirsa conducted a research on the topic “Customer’s

Perception towards the Fast Moving Consumer Goods in Rural Market” ,

International Journal of Techno-Management Research, Vol. 01, Issue 02, September

2013 ISSN: 2321-3744 .Objective is to identify the factors affecting the purchase

decisions of customers towards the purchase of FMCGs and to recommend the

particular factors that should be considered most important for such type of decisions.

The findings indicate that consumers perceive factors like savings, higher product

quality, shopping convenience categorized as utilitarian benefits and value expression,

entertainment, exploration categorized as hedonic benefits as primary reasons for

taking advantage of various sales promotion schemes.

16
Ms. Amina Momin and Ms. Sushma Nichani Assistant Professor, Padmashree Dr.

DY Patil University, Department of Business Management, Navi Mumbai , conducted

a research on the topic “A Study of Buying Behaviour of Customers with reference to

Apparels in Navi Mumbai”. The Objective of the study is to explore rationale behind

such sales promotional activities by examining consumer behaviour and To study the

consumer behaviour in response to various offers for promotional activities of apparel

brands. Result - most attractive sales promotion offer is end of season sale and also

closely followed by discounts. No customer is interested in contests and offers. They

are interested in sure shot benefits offered by other three options and most of the

customers purchase apparels during promotional offers. Even there are customers who

purchase branded apparels on regular basis.

2.2 Theoretical Description

2.21 Sales promotions

Sale promotion consists of a set of various different and often short period motive

tools which is used for consumer’s or buyer’s provocation to buy more and faster.

Promotion tools consist of coupon, rewards, free samples, discounts, advertising

goods etc. Sales promotions address consumers at the point of sale; so,

communications through promotions reaches the consumer at the place and time

where most purchase decisions are made.

Distinction between price promotions and non-price promotions can be made. Price

promotions range from temporary price reductions to coupons and rebates. Overall

characteristic of price promotions is that they decrease sales prices of certain items

17
through for example packages with extra content, multi-item promotions, or

temporary price reductions. On the other side of the continuum non-price promotions

exist, where the consumer is either directed towards a price promotion (supportive

non-price promotions) or where the attention is not on price at all but for example on

the store or a brand (true non-price promotions).

2.22 Effects of sales promotion

Effects of sales promotions can either be short- or long-term effects and may

influence store choice, brand choice, category choice, consumption rate, stockpiling,

and even new product trial behavior of consumers. These effects of sales promotion

are normally positive for the party that posses them but will yield negative effects for

competing brands and/or categories. Manufacturers can use many of these different

types of price and non-price promotions as well.

Promotional actions could be directed from manufacturer’s headquarters to retailers

and therewith indirectly to consumers as well. All possible effects of retailer

promotions, except for those on a category level, logically also apply to and might

influence manufacturers. Since the focus of this thesis is mainly directed towards

consumers, no further in depth discussion is needed here. Therefore, the next point of

interest is how consumers may react to and evaluate sales promotions.

2.23 Effects of Sales Promotion on Consumer Preference

Consumer promotions are now more pervasive than ever . Purchase strategy is a

general buying pattern which "incorporates several dimensions of buying behaviour

18
such as brand loyalty, private brand proneness and deal proneness" . A greater

understanding of the different types of consumer responses to promotions can help

managers to develop effective promotional programs as well as provide new insights

for consumer behaviour theorists who seek to understand the influence of different

types of environmental cues on consumer behaviour.

Promotions are associated with purchase acceleration in terms of an increase in

quantity purchased and, to a lesser extent, decreased inter purchase timing.

Researchers studying the brand choice decision . Promotions to be associated with

brand switching and promotion-prone households were associated with lower levels

of brand loyalty.

2.24 Effects of Sales Promotion on Brand equity perception of consumers

Brand equity is a set of brand assets and liabilities linked to a brand, its name and

symbol, that add to or subtract from the value provided by a product or service to a

firm and/or to that firm’s customers. consumer-based brand equity is the differential

effect of brand knowledge on consumer response to the marketing of the brand.

There is no significant difference of brand equity perception among gender as one of

the demographic variables. But there is significant difference between brand equity

perceptions among various employment status. Adding to it, it is clear that self

employed consumers compare to not employed consumers perceive sales promotion

schemes less favorably. Furthermore, it is concluded that there is no significant

difference between brand equity perception and educational qualification. Price

promotions can be optimized to improve return without increased risk.

19
 CHAPTER-3

DATA PRESENTATION AND ANALYSIS

This chapter covers the statistical analysis on data collected using the research

instrument. Analysis of the data was carried out using both MS Excel and SPSS

(Statistical Package for Social Sciences) to understand The Effects of Sales

Promotions on Consumer Preferences & Brand Equity Perception of customers of

Samsung in Delhi region . Analysis based has been segregated in various sections:

which includes demographic profile of respondents; and deals with Effects of Sales

Promotions on Consumer Preferences & Brand Equity Perception; and covers the

factors affecting the Sales Promotions; and deals with the regression between Sales

Promotions and Consumer Preferences and between the Sales Promotions and Brand

Equity Perception.

3.1 Data Presentation

Questionnaires were distributed between both male and female. The respondents,

from which data were collected having different level of age, education, and income.

The demographic profile of the 150 respondents is summarized as under:

3.11 Classification of Respondents on the basis of gender:

Gender No. of respondents

Male 38

Female 62

Table No. 3.1: Gender of Respondents

20
Inference

The table shows that out of 110 questionnaires filled by respondents , 62% are

females and 38% are males.

3.12 Classification of Respondents on the basis of age:

Age No. of respondents

Less than 18 years 10

18 - 30 years 75

30 - 40 years 11

Above 40 years 14

Table No. 3.2: Age of Respondents

Inference:

10% of the respondents are less than 18 years of age. 75% of the respondents lie

between the age group of 18-30 years. 11% of the respondent lie between the age

group of 30-40 years. 14% of the respondents were above the age group of 40 years.

21
3.13 Classification of Respondents on the basis of marital status:

Marital status No. of respondents

Single 85

Married 25

Table No. 3.3: Marital Status of Respondents

Inference:

The table shows that out of 110 questionnaires filled by respondents 85% are single

and 25% are married.

3.14 Classification of respondents on the basis of occupation:

Occupation No. Of respondents

Self employed 21

Government

employee 2

Private employee 7

Professional 23

Student 57

Table No. 3.4: Occupation of Respondents

22
Inference:

21% of the respondents are self employed . 2% of the respondents are government

employee . 7% of the respondents are private employee. 23% of the respondents are

professionals and 57% of the respondents are student.

3.15 Classification of respondents on the basis of income:

Income No. of respondents

below 10000 p.m. 60

10000 - 20000 p.m. 4

20001 - 30000 p.m. 6

30001 - 50000 p.m. 26

above 50000 p.m. 14

Table No. 3.5: Income of Respondents

Inference:

60% of the respondents are of the income below 10000 per month. 4% of the

respondents are having income between 10000-20000 per month. 6% of the

respondents are having income between 20001-30000 per month. 26% of the

respondents are having income between 30001-50000 per month and 14% of the

respondents are having income above 50000 per month.

23
3.2 Hypothesis testing

Hypothesis testing is a process by which an analyst tests a statistical hypothesis. The

methodology employed by the analyst depends on the nature of the data used, and the

goals of the analysis. The goal is to either accept or reject the null hypothesis.

Hypothesis1: To test the effect of sales promotion on brand equity perception.

Sales promotion had a positive impact on short-term increase in sale, but it still played

a controversial role to build, maintain, or raise brand equity that was cumulated in

consumer’s minds for a long run. Hence, it is interesting to critically review literature

investigating the relationship between brand equity and sales promotion to ground the

basis of future exploration direction about the issue.

H01 : There is no significant effect of sales promotion on brand equity perception.

Ha1: There is significant effect of sales promotion on brand equity perception.

Regression analysis

Variable 1 is independent variable i.e Sales Promotion

Variable 2 is dependent variable i.e Brand Equity Perception

24
Descriptive Statistics

Mean Std. Deviation N

VAR00002 22.7364 4.04941 110

VAR00001 18.8818 3.10292 110

Correlations

VAR00002 VAR00001

VAR00002 1.000 .909

Pearson Correlation
VAR00001 .909 1.000

VAR00002 . .000
Sig. (1-tailed)
VAR00001 .000 .

VAR00002 110 110

N
VAR00001 110 110

25
Variables Entered/Removeda

Model Variables Entered Variables Removed Method

1 VAR00001b . Enter

a. Dependent Variable: VAR00002

b. All requested variables entered.

Model Summary

Mod R R Adjusted Std. Error Change Statistics

el Square R Square of the

R Square F df1 df2 Sig. F
Estimate
Change Change Change

516.65
a
1 .909 .827 .826 1.69155 .827 1 108 .000
3

a. Predictors: (Constant), VAR00001

26
ANOVAa

Model Sum of Df Mean F Sig.

Squares Square

Regression 1478.328 1 1478.328 516.653 .000b

Residual 309.027 108 2.861

1

Total 1787.355 109

a. Dependent Variable: VAR00002

b. Predictors: (Constant), VAR00001

Coefficientsa

Model Unstandardized Standardized T Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) .326 .999 .326 .745

1 VAR0000
1.187 .052 .909 22.730 .000
1

a. Dependent Variable: VAR00002

27
Regression equation

Y =0 .326+1.187x

Where;

Y is brand equity perception

X is consumer preference

Data Analysis:

R value is .909

R- Square value is .827

Significant value is .000 (which is less than 0.05)

Interpretation:

Analysis shows that there is strong effect of sales promotion on brand equity

perception. The R value (.909) shows that there is consistency in predicted values and

observed values. R-Square value (.827) shows that unitary change in the value of

sales promotion will change brand equity perception by .827 i.e. sales promotion has a

strong effect on brand equity perception.

Significant value is .000 . This also shows that sales promotion has a strong effect on

brand equity perception.

Coefficient table show that there will be 118.7% change in the sales promotion for the

given value of sales promotion . So alternate Hypothesis is accepted as there is effect

of sales promotion on brand equity perception.

28
Hypothesis 2: To test the effect of sales promotion on consumer preference.

Consumer promotions are now more pervasive than ever . Purchase strategy is a

general buying pattern which "incorporates several dimensions of buying behaviour

such as brand loyalty, private brand proneness and deal proneness" . A greater

understanding of the different types of consumer responses to promotions can help

managers to develop effective promotional programs as well as provide new insights

for consumer behaviour theorists who seek to understand the influence of different

types of environmental cues on consumer behaviour.

H02 : There is no significant effect of sales promotion on consumer preference.

Ha2: There is significant effect of sales promotion on consumer preference.

Regression Analysis

Variable 1 is independent variable i.e Sales Promotion

Variable 2 is dependent variable i.e consumer preference.

29
Descriptive Statistics

Mean Std. Deviation N

VAR00002 18.4455 3.59813 110

VAR00001 18.8818 3.10292 110

Correlations

VAR00002 VAR00001

Pearson VAR00002 1.000 .701

Correlation VAR00001 .701 1.000

VAR00002 . .000
Sig. (1-tailed)
VAR00001 .000 .

VAR00002 110 110

N
VAR00001 110 110

30
Variables Entered/Removeda

Mode Variables Variables Method

l Entered Removed

1 VAR00001b . Enter

a. Dependent Variable: VAR00002

b. All requested variables entered.

Model Summary

Mod R R Adjusted R Std. Error Change Statistics

el Square Square of the

R Square F df1 df2 Sig. F
Estimate
Change Change Change

1 .701a .491 .486 2.57875 .491 104.207 1 108 .000

a. Predictors: (Constant), VAR00001

31
ANOVAa

Model Sum of Squares df Mean F Sig.

Square

Regression 692.975 1 692.975 104.207 .000b

1 Residual 718.197 108 6.650

Total 1411.173 109

a. Dependent Variable: VAR00002

b. Predictors: (Constant), VAR00001

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant
3.102 1.523 2.037 .044
)
1
VAR0000
.813 .080 .701 10.208 .000
1

a. Dependent Variable: VAR00002

32
Regression equation

Y = 3.102+.813x

Where;

Y is brand equity perception

X is consumer preference

Data Analysis:

R value is .701

R- Square value is .491

Significant value is .000 (which is less than 0.05)

Interpretation:

Analysis shows that there is an effect of sales promotion on consumer preference. The

R value (.701) shows that there is consistency in predicted values and observed

values. R-Square value (.491) shows that unitary change in the value of sales

promotion will change brand equity perception by .491 i.e. sales promotion has an

effect on consumer preference.

Significant value is .000 . This also shows that sales promotion has an effect on

consumer preference.

Coefficient table show that there will be 81.3% change in the sales promotion for the

given value of sales promotion . So alternate Hypothesis is accepted as there is effect

of sales promotion on consumer preference.

33
 CHAPTER-4

SUMMARY & CONCLUSION

This chapter aimed to recollect the various phases of the study. A summary of the

research with the main findings had also been presented. Revisiting of objectives was

essential to understand whether the purpose and aim of research had been achieved.

Research contributions and implications of study have been listed. Limitations of the

study had been pointed out. Recommendations based on the study had also been

presented. Finally, the chapter throws light on directions for future research

4.1 Findings and Result of the study

4.11 Major findings

a. For dependent variable - brand equity perception , the Pearson correlation

value 0.909 , indicates that there is a strong effect of sales promotion on brand

equity perception. The p Sig. (1-tailed) is 0.00 which is less than 0.05 so the

null hypothesis is rejected. This shows that there is a significant effect of sales

promotion on brand equity perception.

b. For dependent variable - consumer perception , the Pearson correlation value

0.701, indicates that there is a strong effect of sales promotion on consumer

perception. The p Sig. (1-tailed) is 0.00 which is less than 0.05 so the null

hypothesis is rejected. This shows that there is a significant effect of sales

promotion on consumer perception.

34
4.12 Additional findings

a. From the demographic profile of the respondent of this research project the

major respondents were female.

b. From the demographic profile of the respondent of this research project the

major respondents are young people of the age group of 18-30 years.

c. The study shows that people of age group of 18-30 years prefer TV and online

advertisements.

d. The study shows that maximum respondents are having income between

30000-50000 per month except students . therefore Samsung’s products are

affordable to them.

e. Study shows that the CRM is the most significant factor affecting customer

preference. It helps in building a strong relationship among the customers and

the bank.

f. Cash discount was one of the widely used sales promotions scheme on various

electronics products. Testing the hypothesis, it was found that male and female

attitude towards the cash discount as one of the sales promotion schemes do

not differ significantly.

g. It was found that there was a significant difference among various family

income categories towards cash discount offered on various consumer

electronics products.

h. Consumers prefer cash discount compare to free gift as a sales promotion

scheme.

i. It was found that deal proneness differs according to marital status.

Furthermore, it was also proved that married are more deal prone compare to

unmarried.

35
j. It was found that there is a significant difference among various employment

status towards brand equity perception. Also it was analyzed that there is

significant difference between brand equity perceptions and marital status as

of the demographic variables.

k. It will be helpful to customize the sales promotion scheme according to the

profile of the customers.

l. It was found that from the median ranking the customers who are not

employed prefer television to be aware about the sales promotion schemes.

m. The family income of the customers was also one of the important variables to

consider while deciding the media for sales promotion schemes.

36
4.2 Limitations of the study

The limitations of the study are those characteristics of design or methodology that

impacted or influenced the application or interpretation of the results of the study.

They are the constraints on generalizing and utility of findings that are the result of

the ways in which you chose to design the study and/ or the method used to establish

internal and external validity. Some of the limitations of the project are:

a. The samples size was not too much to generalize the result of the study.

b. This study was limited to Delhi state only and result may differ if conducted in

other regions. Also it measures the consumer preference in consumer

electronics product categories. If the same study is repeated for other industry

consumer preference of sales promotion schemes may vary

c. The study was limited to sales promotion schemes of consumer electronics

product categories only and result may vary if study is conducted for non

consumer electronics product categories.

d. There are other variables besides sales promotion schemes which affect brand

equity perception and consumer preferences.

e. Evaluation was based on the primary data generated through questionnaire and

accuracy of the findings entirely depends on the accuracy of such data and

unbiased responses of the customers.

37
4.3 Scope of the study

Today’s successful businesses distinguish themselves from their competition by

focusing on customer retention, incremental spending and extraordinary service. In an

increasingly competitive business climate it is critical to understand who is buying

your products and services so that crm programs can be tailored to keep your best and

most profitable customers coming back for more.

a. The present research has considered consumer electronics products to measure

the consumer preference towards sales promotion schemes and brand equity

perception. For, other than consumer electronics products this type of research

can be performed.

b. This research has taken limited number of demographic variables as

independent variables therefore considering more demographic variables;

aspiring researches can conduct the research and may come out with

interesting relationship.

c. There is a scope of conducting the research study considering other sales

promotion Schemes apart from widely used and popular sales promotion

namely cash Discount and free gift for comparing the preference of the

consumers.

d. In the present research, regression analysis is used for measuring consumer

preference of sales promotion schemes but there are various other alternate

methods available to measure the preference which can be adopted.

38
4.4 Scope for further study

a. The questionnaire can further include more criteria for analyzing the

satisfaction of customers.

b. The sample size can be increased that will enhance the quality of result

obtained.

c. Study can be conducted in broader geographical area by including customers

of other electronic company as well.

d. It can assist retail outlets to know the perception of the customers on the basis

of gender, occupation, age and education.

e. It has been highly recommended for the future researchers to investigate out

the different factors which could facilitate in defining the promotional mix.

The challenge is to select the right mix of promotional activities to suit the

particular business at a particular time and to then use it correctly to achieve a

result.

f. One of the most important marketing decisions that managers may need to

make centers around determining the most effective way to promote their

business and products.

g. For instance, extensive investments on personal selling, advertising, direct

marketing, public relations and sales promotions should be improved and

developed as brand creating factors.

39
 CHAPTER 5

RECOMMENDATIONS

This chapter aimed to make some suggestions based on the Analysis and findings of

the study. These suggestions are aimed at improving some features and factors that

must be adopted by marketer for influencing the customer preference and perception.

5.1 Recommendations

a. The company must implement more CRM Practices and technologies so as to

provide customer with proper satisfaction.

b. The company must use more customer information to interact with new

customer, it will leads to relationship marketing and the existing customer can

be a reference group for Samsung.

c. Samsung should come up with more variety and extensive electronic range so

that more customers will be attracted towards this brands, research shows that

to some extent samsung is lacking in the variety of electronic items offered.

d. Timely feedback from the customers should be taken by the Samsung it would

make the customers realize that they are important for the growth of the

organization.

e. Samsung needs to understand the differences between each segmentation of

customer that it’s dealing with, therefore Samsung may have appropriate

tactics.

40
f. With gaining customers trust in product and services, Samsung should also

have alliances with other companies in the electronic industry compete better

with its potential rivals.

g. Diversification appearance (colors, pattern, for examples) of products and care

more about young, fashionable customers will be a good chance for Samsung

to increase its sales.

41
References/ Bibliography

Books:

a. Leon G. Schiffman, Leslie lazar kanuk, S. Ramesh Kumar,(2010) consumer

behavior Tenth edition, Dorling kindersely (India) Pvt. Ltd, south Asia

b. Sheth, J.N. and Parvatiyar(2000): A., Handbook of Relationship Marketing,

ThousandOaks, California: Sage Publications.

c. Shainesh,G. and Sheth, J.N. (2006): Customer Relationship Perspective: A

Strategic Perspective, Macmillan India Ltd.. Assal hennery,(2005), consumer

behavior, cengage learning, new Delhi.

Journals/Research papers:

a. Anderson, E.W., Sullivan, M.W., 1993. The antecedents and consequences of

customer satisfaction for firms. Journals of Marketing Science, Vol 12(2), pp

125-43.

b. Andreassen, T.W., Lindestad, B., 1998. Customer loyalty and complex

services. International Journal of Service Industry Management, Vol 9(1), pp

7-23.

c. Auh, S., Johnson, M.D., 2005. Compatibility effects in evaluations of

satisfaction and loyalty. Journal of Economic Psychology Vol 26(1), pp 35-

57.

d. Chen, J. S. & Ching, R. K. H. (2004). An Empirical Study of the Relationship

of IT Intensity and Organizational Absorptive Capacity on CRM Performance.

Journal of Global Information Management, 12: 1-17.

e. Gordon, I. (2002). Best practices: Customer relationship management. Ivey

Business Journal, November/December, 1-5.

42
Website:

a. http://www.samsung.com/in/ retrieved on 3rd feb 2014.

b. http://www.iima.org/ciima/12%20%20ciima%206-3%2087-

90%20klinker.pdf downloaded on 3rd february 2014.

c. .http://anzmac.info/conference/2005/cd-site/pdfs/6-relationship-

mktg/6terblanche.pdf downloaded on 13th february 2014.

d. http://jesr.journal.fatih.edu.tr/customerrelationshipmanagement.pdf

downloaded on 25th february 2014.

e. http://www.toptechnews.com/story.xhtml?story_id=112008li0yo0 retrieved

on 3rd march 2014.

43
 Annexure-1

Questionnaire

seek your cooperation in connection with the project work. The fundamental aim of

this study is to understand “A Study on The Effect of Sales Promotion on

Consumer Preference & Brand Equity Perception of customers of Samsung in

Delhi region”. Your frank and sincere reply will help me understand the topic in

detail and provide true results of the study.

Please tick mark where applicable.

Name: _________________________________

Gender:

Male ( ) Female ( )

Age:

Less than 18 years ( ) 18 to 30 years ( ) 30 to 40 ( ) Above 40 ( )

Marital status:

Single ( ) Married ( )

Occupation:

Self Employed ( ) Government employee ( )

Private employee ( ) Professional ( )

Student ( ) any other please specify _________________________

Income:

44
 Below 10000 per month ( ) 10000-20000 per month ( ) 20001-30000 per month ( )

30001-50000 per month ( ) above 50001 per month ( )

Please indicate your level of opinion by circling the best option on scale of 5 to 1.

5 (strongly agree), 4 (agree), 3 (neutral), 2 (disagree), 1 (strongly disagree).

S. FACTOR STATEMENTS STRONGLY AGREE NEITHER DISAGREE STRONGLY

No AGREE AGREE DISAGREE

NOR

DISAGREE

1 Samsung delivers as per their

promises.

2 Brand offers excellent after

sales services.

3 It employs effective use of

print and electronic media for

promotions.

4 It offers special discounts and

free gift coupons on special

and festive occasions.

5 Commercials are highly

45
 informative and influence

purchase.

6 Samsung provides superior

quality of service.

7. My relationship with Samsung

is one that I am committed to.

8. I am preferring Samsung from

longtime.

9. I am satisfied with the services

provided by Samsung

10. I stick to Samsung every time,

I make a purchase.

11 Samsung is always the first

choice compared to other

electronic appliance brand

12 Samsung provides its services

at the time it promises to do so.

13 Samsung is affordable to all

class.

14. Samsung’s features are unique

in the market.

15 Samsung employs the latest

technology at the best

affordable price.

16 The brand in itself conveys

46
trust, durability and delights.

Thank you for your participation and support

Annexure-2

47
Data Sheet

48
49
50
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