Marketing Research on Rahimafrooz: A RESEARCH ON PURCHASE INTENTION REGARDING THE LAUNCH OF A NEW IPS PRODUCT

A RESEARCH ON PURCHASE INTENTION REGARDING THE LAUNCH OF A NEW IPS PRODUCT

Date: 18/08/2012 Researched by: Mohammad Rafi A.K.M. Shafiqur Rahman Md. Mehdi Hasan Ayaz Bin Alamgir Imran Ahmed Researched for (Client): Rahimafrooz (Bangladesh) Ltd. 1A Gulshan Avenue, Gulshan 1 Dhaka 1212 Prepared for: Dr. Nazlee Siddiqui (NSq) Senior Lecturer School of Business MKT 470 Sec: 3 0910086030 0910393030 0910425030 0910497530 0910994030

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LETTER OF TRANMITTAL
18thAugust, 2012 Dr. Nazlee Siddiqui, Senior Lecturer, School of Business, North South University, Bashundhara, Dhaka - 1213. Subject: Submission of the Group Research. Dear Miss, We take great pleasure in submitting the research report on Rahimafrooz IPS; which was approved by you for the course Marketing Research (MKT470). This report is very much relevant to what we have learnt in this course. It truly reveals the real essence of marketing research and will certainly helped us to understand the course better. The client will have to go through all the information we have provided in this report, and then will have to understand and implement whatever we have mentioned in the recommendation to get the maximum benefit and serve its customers better. This report is easy to navigate, hence we believe there will be no confusion for the client to understand and implement. We have tried to make this report as comprehensive as possible within the given time and we would feel gratified if our paper serves its purposes. Therefore, we would be obliged if you could please accept this report. Sincerely yours, A.K.M. Shafiqur Rahman 0910393030 Ayaz Bin Alamgir 0910497530 Mohammad Rafi 0910086030 Imran Ahmed 0910994030 Md. Mehdi Hasan 0910425030

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ACKNOWLEDGEMENT

Any work such as this must owe credit to a multiple of people. This is our humble effort to present gratitude in submitting this research report on Rahimafroozwhich we have truly drawn upon own experience as a student of BBA. First and foremost, we are indebted to Dr. Nazlee Siddiqui, our course instructor, for her generous guidance throughout our work. Her unstinting support, faith in us, and inspiration for this project, was a tower of strength in putting the pieces together and an unfailing source of cheer and encouragement.

We would also like to thank our class mates for being helpful and cooperative.

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TABLE OF CONTENTS
Title Page

Abstract Company Profile Problem the Company is Facing Environmental Context Problem Audit Purpose and Objectives Visual Model Literature Review Research Questions Hypothesis Methodology Results and Findings Analysis of Insight Questions Recommendation Conclusion References Appendix
FIGURE 1: LIST OF DECISION MAKERS FIGURE 2: BRAND SHARES WITHIN RAHIMAFROOZ FIGURE 3: COMPETITOR LAYOUT FIGURE 4: VISUAL MODEL TABLE 1: COMPETITION INSIGHTS TABLE 2: SAMPLE PROFILE TABLE 3: RELIABILITY ANALYSIS TABLE 4: CORRELATION AND DESCRIPTIVE ANALYSIS TABLE 5: REGRESSION ANALYSIS

1 2 6 6 12 13 14 14 18 18 19 23 28 32 33 34

PG. 4 PG. 5 PG. 6 PG. 14 PG. 7 PG. 18 PG. 22 PG. 22 PG. 23

TABLE 6: BRAND IMAGE: EACH QUESTION MEAN ANALYSIS TABLE 7: AFTERSALES: EACH QUESTION MEAN ANALYSIS TABLE 8: DURABILITY: EACH QUESTION MEAN ANALYSIS TABLE 9: PROMOTION: EACH QUESTION MEAN ANALYSISPG. 28

PG. 26 PG. 27 PG. 27

ABSTRACT
The research investigates the various variables that impact the purchase intention of the buyer behavior for Rahimafrooz IPS and its ability to gain competitive advantage over its rivals. In this research, we have tried to find out the impact of independent variable such as durability, after sales services, brand image and promotions, also purchase intention which is the dependent variable. Initially a secondary data analysis has been done by literature review to set up the hypothesis for the survey. Then a survey was conducted of a sample size 70 existing or potential users of IPS in general, in order to extract the related data. Then the data has been analyzed as per the result by the use of SPSS that has helped us to conduct the reliability test, K-related samples, correlations, and regression analysis to find out the dependence of the variable on other independent variable and the extent to which they have been affecting each other. A further study and analysis helped us reveal the variables that have been affecting the dependent variable significantly. The findings that we have come up with can help Rahimafrooz at getting better customer reach, and also explore new target markets. Keywords: purchase intention, marketing, durability, after sales services, promotions, brand image, Rahimafrooz.

COMPANY PROFILE
Rahimafrooz was found by late A C Abdur Rahim in April 15th 1954. It was back then a small trading store, and mostly it sold Lucas batteries. Over the decades, Rahimafrooz has grown in size, scale, and diversity. The company today has Eight Operating Companies, a few other business ventures, and a not for profit social enterprise. As of 2011, the company currently employs more than three thousand people directly and a further twenty thousand indirectly as suppliers contractors, dealers and retailers. Rahimafrooz operates in four broad segments Storage Power, Automotive & Electronics, Energy and Retail.

COMPANY GOALS
Aspiration: The aspiration or main objective for Rahimafrooz is, To be the most admired and trusted organization through excelling everything we do, following ethical business practices and adding value to stakeholders. Vision: The vision for Rahimafrooz to achieve by the year 2015 is to be A billion dollar diversified group committed to adding value to all stakeholders and community. Values: Rahimafrooz has a very good value system which is mentioned with a well-crafted diagram:

Quality policy: Rahimafrooz claims about their quality policy by mentioning, We are totally committed to customer delight through operational excellence, innovation and continual improvement of quality.

PRODUCT LINES & BRANDS/SEGMENTS THEY OFFER

At Rahimafrooz, there are mainly four product segments, each focusing on different fields, and those segments have various brands or companies in them. All of them will be discussed in full detail below: 1. Storage Power: Rahimafrooz Group is the largest manufacturer and exporter of automotive and industrial batteries in Bangladesh and has the largest battery export plant in South Asia. Rahimafrooz Accumulators Ltd. Rahimafrooz Batteries Ltd. Rahimafrooz Globatt Ltd.

2. Automotive and Electronics: Rahimafrooz Group markets and distributes various automotive after-market products such as automotive batteries, tires and lubricant as well as electronics ranging from home appliances, power backup systems, lighting products, and electrical accessories. The Group is also one of the leading complete CNG solution providers in the country. Rahimafrooz Distribution Ltd. Rahimafrooz CNG Ltd.

3. Energy: Rahimafrooz Group has a significant presence in the energy sector of Bangladesh and offers a wide range of renewable and conventional energy solutions. Rahimafrooz Renewable Ltd. Rahimafrooz Energy Services Ltd.

4. Retail: Rahimafrooz Group introduced the first retail chain of superstores in Bangladesh and has played a major role in redefining everyday shopping. Rahimafrooz Superstores Ltd.

For our research the brand we have chosen is Rahimafrooz IPS which is a product from Rahimafrooz Distribution Ltd. and falls under Automotive and Electronics segment.

DECISION MAKERS OF RAHIMAFROOZ

The company follows a good hierarchy, where head of the department from different departments first take orders from the COO and then they pass on the message to the employers and the employees of the respected department. The key decision makers of Rahimafrooz are listed in a model below.

COO

Head of Marketing
Head of Rahimafrooz Accumulators Ltd.

Head of Finance
Head of Rahimafrooz Renewable Energy Ltd. Head of Rahimafrooz Energy Services Ltd. Head of Rahimafrooz Superstores Ltd.

Head of Rahimafroo z Batteries Ltd.

Marketing Manager of Batteries

Head of Rahimafrooz Distribution Ltd.

Head of Rahimafro oz Gastech Ltd.

Marketing Manager of IPS and UPS

Sales Department

FIGURE 5: LIST OF DECISION MAKERS

From the organogram on previous page, it can be seen that the COO sets targets for the company for the running year. Then all the head of departments passes the information to their managers and employees of the respected departments and then they try to accomplish the targets. Rahimafrooz Distribution department is the main hub for the distribution of IPS and UPS to their chain stores and also the retail stores around Bangladesh. Then the marketing manager manages the day to day targets of the marketing department and eventually figures out the expected sales by the end of the week or month. The sales department will monitor the sales of the IPS and then will inform the finance department and also the marketing managers about everyday sales. The head of finance actually monitors the feasibility of the given on hand projects or targets that have set by the COO and inform that the target is achievable or not.

BUSINESS SIZE
As per the interview we have taken at Rahimafrooz regional office, they have claimed that they have a 5% market share in the whole of Dhaka city. When compared with the population size of the whole country, most of them cannot afford to buy an IPS in the rural areas and other districts. Also another fact is that most of the real estate companies and builders provide high powered generator to the building from the start, hence the feel to need and IPS gets simply diminished. Overall the main assumption here can be that Bangladesh market share will be somewhere between 7-15%

CATEGORY OR BRAND SHARES WITHIN RAHIMAFR OOZ

The main brand shares are the IPS & UPS, tires, batteries and the solar panels. In their chain store Agora, they manly advertise about their IPS & UPS and batteries. We have visited few of their chain stores in, and we have found out that they had 10 units of IPS in the store and 10 units of batteries for charging those IPS. There were also 3 units of Globatt car batteries. Hence the categories of brand shares are: % of IPS = 10/23 X 100 = 43.48% % of IPS Batteries = 43.48% % of Globatt Batteries = 13.04%

BRAND SHARES WITHIN RAHIMAFROOZ

IPS IPS Batteries Globatt Bateries

12% 44% 44%

FIGURE 6: BRAND SHARES WITHIN RAHIMAFROOZ

PROBLEM THE COMPANY IS FACING

The IPS industry in Bangladesh is now going through the growth stage. Rahimafrooz is trying to increase their sales and also increase their market share. The problem of increasing the market share amidst fierce competition from both branded and non-branded IPS providers and other substitutes has brought into existence the question of how they can achieve that.

ENVIRONMENTAL CONTEXT
COMPETITION ANALYSIS
We have classified their competitors as Branded competitors and Non-Branded competitors. We define the non-branded competitors as those who import Chinese IPSs and sell them through local electronic shops and small electronic businesses that import Chinese battery and IPS parts and assemble them locally not in a very proper way. These non-branded competitors are not static and keep changing their businesses (For example, a company who manufactures and sells IPS as a secondary product for a period of three months or six months.) but through their activities they can take way a handful of Rahimafrooz market shares. Among other non-branded competitors are local generator service providers who provide generator connection at very low prices but are not that reliable.Rahimafroozs main branded competitors are Singer, Navana, Grameen IPS, InGen and Su-Kam.

Competitors

Branded

NonBranded

Singer

InGen

Navana

Gramee n IPS

SuKam

Chinese Brand sold by many electronic shop

Non-static IPS businesses

Local Generator Service Provider

FIGURE 7: COMPETITOR LAYOUT

COMPETITION INSIGHTS
Rahimafrooz Navana InGen Su-Kam Singer
Non-Branded (Chinese Local) and

Model

DB Sinewave 800

IPS780VA

IG 800VA

IPSAP 1200C

SBR8340SW

No fixed Specification

Backup Time Watt Price

Aftersales Service (Customer Care, Company technicians)

2 hrs

2 hrs

2 hrs

2 hrs

2 hrs

Varies

600 39350.00 Yes

600 35500.00 Yes

640 32500.00 No Customer Care or Technicians only home delivery

600 28545.00 No

600 29900.00 Yes

Varies 4000 - 25000 No

TABLE 6: COMPETITION INSIGHTS

TARGET MARKET
Currently, Rahimafrooz is mainly targeting people who are fewer prices sensitive, these are the people working in private jobs, top rank government position, top executives position in multinational corporations or private organizations and people doing business. It is seen that there is a huge untapped market in the form of lower middle class households that Rahimafrooz can target and increase their market share. The target market population will consist of lower middle class people of Bangladesh. The sampling unitwill be households that contain people with lower middle class people with mid-level income. The elements are decision makers of these households i.e. the male head or the female head of these households. Below we are giving a brief profile of this target market: Age and Stage in the Life Cycle:

These are people who are aged from mid 20s to late 50s. This target consists of people who are new married couples with no children, middle aged couples with one or two children, and older couples with children ranging from two to four who are studying in school, colleges or university. Occupation and Economic Circumstances:

These are people who are mainly occupied in government offices, small private jobs, small entry level jobs, small scale entrepreneur (small retail shop owners, hardware stores, etc.). On average they have an income of around Tk. 40000. It can be said that they do not have a large amount of disposable income because most of their earnings are spent in providing daily needs for their families (food, rent, education fees, etc.), and paying debts. Thus they do not have the purchasing capability of buying a high priced IPS to that of Rahimafrooz. Lifestyle:

They lead a very simple life, and they are content as long as their needs are fulfilled. They do not look for luxurious items or goods until they can afford it.

Time and Boundary The data was collected for a week including pretesting. We collected the data from number of prime locations in Dhaka, where we expected to find some elements from our target market.

BUYER BEHAVIOR
The buying behavior of the new target market is explained below:
NEED AROUSAL

Electricity is necessary for everyday life. We could be deprived of valuable moments of our lives due to a power failure, such as witnessing the last over of the Asia Cup Final. We could also lose valuable times in our lives due to a power failure, such as studying before the night of an important exam. Therefore it is evident that electricity provides irreplaceable value to our lives and they need a reliable and stable source of electricity backup in case of power failure. People seek to enjoy or utilize these moments, and that is why they seek an alternative power source in such times. This is where Rahimafrooz enter the scene and provide the solution to these needs. The electricity problem in Bangladesh is so dominant that most of the consumers want solution to this problem. As most of the consumers want control over their possession, the consumers do not feel happy with the solution, which include Generator rent for monthly fees and for a specified period of time. Here they feel the need of having a cost effective solution to the electricity problem. This is acquired need and it also includes some level of prestige and power. If we relate the need with the trio of needs then we can see that, the consumers motivation depends on following three needs.
POWER

Consumer wants to control his or her own environment. The consumer does not want to depend on Generator, which is not controllable, and also not fulfilling the needs.
AFFILIATION

As in our society the usage of IPS is increasing, the consumers select the goods for getting the approval of friends and also for the desire of belongings. This is kind of social need faced by the consumers.

ACHIEVEMENT

This need suggest that, the consumers feel an achievement of possessing a Premium branded IPS. The need for the IPS turns into action when the consumers buy it. But as the target consumers are not very economically solvent, they always look for a cost effective solution i.e. a low cost IPS with good features and reliability.
INFORMATION SEARCH

The target customer most of the time search the information by visiting stores and from their friends who are using the products. The decision maker in our target group is basically a father. They collect the information on the products from their children, so a little use of Internet for information search is also there. But the most frequent way to search for the information is from their friends and relatives and also from their bosses. They also look for good deals in the newspapers.
EVALUATION OF ALTERNATIVES

The alternative products can be Local generator rent (for specified time specially from 6PM to 12 AM and for a bulb or fan or both) Low cost non branded IPS (Made in Bangladesh) Low cost Chinese IPS Other Branded IPS (Costly and also do not serve this market) Generator

Considering the market situation, as already mentioned, consumers want some level of control over their possession. So the generator is not a good option to most of the consumers. The non-branded IPS made in Bangladesh by some of the local electrician is another solution but the products lack the reliability and the expected performance. Other Chinese IPS is also low cost but the quality and the reliability is not present there. In Bangladesh, there are other branded IPS like Singer and others which is better option but considering the target market and the price sensitivity it is not a good option for the lower middle class consumers. These Brands do not offer something targeted towards the lower middle class consumers. Other alternative is Generator but again, the generator is not a good option for most of the

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consumers as the fuel cost and the maintenance cost is higher than any other alternatives mentioned here. After evaluating all the alternatives, it is clear that, this untapped market by Rahimafrooz is waiting for a Power offer, which will satisfy their needs and provide them compelling value.
USAGE HABIT

The consumers in our target group mostly use the IPS or generator for basic purposes like for light & fan. They sometimes feel it is very important for their children to continue their studies in convenient and comfortable situations. They do not want to hamper their studies. They do not basically use IPS for Television and other purposes. They want a good back up from the IPS.
POST USAGE EVALUATION

The common problem faced by the IPS user after buying the IPS is the battery problem. The consumers in our target market either use the IPS or they want a better offer to buy one. The consumers want a better customer service after the purchase. They want warranty to avoid the hassle of changing the battery or fixing the IPs with their own cost. They also want a long lasting battery as most of the cheap IPS manufacturers deceive them by not providing enough information on the battery. The consumers evaluate the products by the quality service and the longevity of the products.

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PROBLEM AUDIT
Events that led to the problem Rahimafrooz are the Market Leaders of IPS in Bangladesh. Their target market consists of people of higher middle class and above who are less price sensitive. These are mostly people working in private jobs, top rank government position, top executives position in multinational corporations or private organizations and people doing business. There are untapped markets in the form of lower middle class households that Rahimafrooz can target and thus increase their sales and market penetration. Alternative Solutions Introduce new product line for lower level market Increase Promotion of existing product line Expand distribution channels

Importance of the problem IPS is still in the growth stage in the Bangladeshi market. Although Rahimafrooz are currently the market leaders in the IPS industry, they face intense competition from their rivals such as Navana, InGen, Anik, Singer, etc. and also the non-branded IPS and generator services. In order to increase their sales and penetrate the market, Rahimafrooz is planning to launch a new IPS called Rahimafrooz Economy for the lower level households. Final view regarding the possible solution After evaluation of the alternatives, introducing Rahimafrooz Economy seems to be the best choice. This is because Rahimafrooz will be able to capture the lower level market, which has the possibility to become a major source of their IPS revenue for the years to come. Since Rahimafrooz is a well-known brand name in Bangladesh whose name gives people the image of quality and reliability, they can take over the lower middle class level with their new IPS. The lower level households currently use either non-branded IPS, cheap imported Chinese IPS, or generator service that is neither satisfactory nor reliable. Also, none of the major branded competitors of Rahimafrooz in Bangladesh, such as Navana, have come out with a low priced IPS targeted for these households. Rahimafrooz can thus capture this market by coming out with Rahimafrooz Economy before any of them and establish a long

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term relationship with these households that will ensure a new source of revenue for the years to come.

PURPOSE AND OBJECTIVES

The purpose of our research is to explore for our client, Rahimafrooz, further target market in Bangladesh. As a brand image that has been set by Rahimafrooz for quite a few years in the minds of all people is that they provide premium instant backup services with quick response time, fast recharge period and good service life. Hence the high prices on all available models. But very recently it is seen that Chinese IPS companies and some small Bangladeshi companies are emerging and providing IPS services with moderate services and slowly but steadily gaining popularity among the lower end markets. The popularity is ever increasing because they are a lot cheaper and readily available in most places. Also some branded companies, both local and abroad, are coming into the market and they too are getting popular. Our purpose of this research is to understand what the customers actually want from an IPS provider, and give that information to Rahimafrooz, so that they take notes from the recommendations, and then implement them so grab the lost markets and again become the dominating market leader in the IPS industry. Our objective of this research is to find meaningful information from the certain areas, i.e. the independent and dependent variables and apply them to solve the management decision problem and also give appropriate recommendation, so that our client, Rahimafrooz, put it to good use to become the market leader in the IPS industry.

MANAGEMENT DECISION
Should Rahimafrooz launch a lower priced IPS for the lower middle class or less affluent people of the society?

MARKETING RESEARCH PROBLEM

To determine consumer preferences and purchase intentions for the new product with respect to the competitors in the target market.

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VISUAL MODEL
Durability After Sale Service Brand Image Promotions
FIGURE 8: VISUAL MODEL

Purchase intention

The target market chosen consists of people who are less affluent in terms of income level and they can be categorized as the middle and lower middle class portion of the society. These customers will prefer to have a product that will provide better benefits at a relatively lower price than the expensive counterparts of the product. In other words, they will consider the product benefits, service benefits and brand image and will try make a price benefit trade off before making any purchase intention. Among product benefits they might also consider reliability and durability of the product.

LITERATURE REVIEW
Purchase intention determines what customers are planning to buy in future. Purchase intention is very important concept in marketing because it forecasts the future sales possibility. In this research paper, we are trying to determine the purchase intention of consumers by measuring the effects of brand image, promotions, after sales services and durability. Purchase intention is continue to be very important concept in marketing. The published literature contains very small fractions of actual studies which have been used in purchase intention. Axelrod (1968) analyzes purchase intentions along with other attitudes measures

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used for predicting actual purchase behavior. Smith (1965) presents a highly readable and interesting discussion on the use of purchase intentions in evaluating the effectiveness of automobile advertising. Silk and Urban (1978) have purchase intentions as one input for a new product model. In the research it was shown that, when a new product is to be introduced, it is very important to measure the purchase intention. Sewall (1978) uses purchase intentions to segment markets for proposed new products. Purchase intention is very important for predicting future sales. When the purchase intention of consumers is positive, the consumers are willing to buy the product. The positive purchase intention will justify the introduction of new products. It is very important that the purchase intention is effectively measured. The following discussion will discuss about the effects of brand image and promotions in the purchase intention of consumers. For better understanding the discussion will include other independent variable like durability and after sales to determine the purchase intention. The emergence of brand equity underlies the importance of brand in marketing tactics and hence provides useful insights for managers and further research (Keller, 2003). By

measuring purchase intention, decision is made whether to introduce a product or not. In this research, we are trying to find the purchase intention of consumers by measuring different variables, which impact the purchase intention of consumers. In the era of competition, the brand value and recognition played a very significant role in purchase intention of consumers. There are many products in the market, which are offering the same type of products to the consumers. Brand serves a pivotal role for distinguishing goods and services from those of the competitors (Aaker, 1991; Murphy, 1998). The term brand equity refers to a set of assets and liabilities associated with a brand, including its name and symbol, which could impose beneficial or detrimental effects on the values arising from the products or services (Aaker, 1991; Yasin et al., 2007). So in this case, it is to mention, there is a strong correlation between brand image and the purchase intention of consumers. Another important attribute to brand equity is perceived quality. It is defined as the customers perception of the overall quality or superiority of a product or service ( Aaker, 1991; Keller, 1998; Yasin, 2007). Customers perceive that good branded products come with good quality services. Brand is always an important attributes when it comes to the purchase intent of consumers. Customers do not go for non branded products rather they go for

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purchasing branded products to avoid risk. That is, the branded products are said to provide good quality services for the consumers. Brand plays a vital role in determining the purchase decision. Most of the people go for buying a branded product because they think the product will be better. Most of the research has found that, the brand is one of the main influencers of purchase intention of consumers. Promotions play a very important part to create awareness among the consumers about the new products. Gupta (1988) and Totten and Block (1987) found that the majority of promotional volume comes from switchers. Vilcassim and Chintagunta(1992) and Chintagunta (1993) found, however, that more promotional volume comes from category expansion than from switchers. From this it can be easily said that, more promotions are necessary as the product is new in the market. Price promotions also help the consumers to choose products. It has been found that, consumers like price promotions. There is a negative idea about this too. Many consumers perceive that, the price promotions are given to products which are not of good quality. We are familiar with only one other paper in the marketing literature that relates to targeted advertising. Similar to our investigation, Iyer et al. (2005) also consider the implications of targeted advertising on the extent of competition in product markets. However, whereas in our setting the media distributor acts as a common agent in delivering targeted ads to consumers, in Iyer et al. the advertisers them-selves have the ability to target advertising messages to consumers. Their finding that advertisers choose to advertise more to consumers who have a strong preference for their products is similar to the one we obtain. Targeted advertising is the most effective one. It helps to minimize the cost. Sometimes the traditional advertising media does not work for the promotions of products. The word of mouth plays a very important part for many products promotions. Though the word of mouth is mostly done in case of the low involvement product, it is utmost important for the high involvement product now a days. Word of mouth plays critical role in the in the purchasing of high involvement product. People usually go for online discussion, online forum, product review etc. before they finally buy the products. Customized media should be chosen according to the products need. Our visual model also shows that durability and aftersales service influences purchase intentions of the consumers. As a term, after-sales services has been used the most, to

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describe services that are provided to the customer after the products have been delivered (Vitasek, 2005). After-sales services are often (Leleand Karmarkar, 1983) referred to as product support activities, meaning, all activities that support the product centric transaction. The after-sales service constitutes a means to uncover customer needs and a strategic driver for customer retention. It represents, in fact, one of the few constant connections that customers have with a brand From our literature review we have found that a default and free basic after-sales service, also plays an important role in attracting more customer attention in a market with severe brand competition (Chien, 2005). Offering adequate after-sales service to customers has become a major generator of revenue, profit, and competency in modern industries (Cohen et al., 2006; Cohen and Kunreuther, 2007). Thus it can be said that aftersales services increase consumer consumers purchasing intentions and in turn increase sales. Fazlzadeh et al. (2011) in their research also states that after-sales service quality affect satisfaction, which in turn affects behavioral intentions. Foster (2001) describes durability as "the degree to which a product tolerates stress or trauma without failing." When designing a product and its durability, one should design with the product base, user base, manufacturing base, and value base in mind. An IPS falls in

household appliance category of products .Houses get more and more bloated with appliances every year, due to general wear and tear things are going to break. Average lifespan expectancy for household appliances by some estimates has fallen to just 3 years. Quality control does not make a good product. Although, as a whole, initial reliability and energy efficiency have improved, things like durability and serviceability seem to have fallen off the map entirely. It's not enough for a product to look good; it has to be built to last. That may mean paying a little more upfront, but if the product lasts longer it may even save money. Unfortunately, until companies start printing lifespan expectancies on their products there is no sure way to tell a good product from a bad one just by looking at it.Consumers trying to make informed decisions before purchasing a product have to do a lot of research. Therefore the more they hear about durabilityof product is heard the more likely they will make a purchase decision about the product (Plaisted, 2008). From the above information we can see that the acceptance of a product to a consumer is created when the consumers are actually getting their expected utility or value from their purchased product. One of the most important ways to do that is by enhancing the durability

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of a product. For our product Rahimafrooz IPS, being an electrical good it needs to be durable to create purchase intentions, because many customers want it to be a one-time investment by avoiding regular repairing and maintenance costs which adds up to more expense. So they would obviously want an IPS which gives them the assurance of being durable in the long run which influences them to purchase it with likely a high price because they are assured that for strong durability they wont have to spend on it again.

RESEARCH QUESTIONS
1. Do customers believe durability of an IPS reduces long-term cost? 2. Do they believe branded IPS give better performance? 3. Do they value aftersales-service in buying an IPS product? 4. Does promotions influences IPS purchase intentions of customers?

HYPOTHESIS
H1 : Customer believe durability reduces cost in long-term H2 : Customers believe banded product gives better performance. H3 : Customers believe after sale services increase the value of the product. H4 : Promotion influences customers purchase intentions.

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METHODOLOGY
SAMPLE PROFILE
Based on our Target market we will concentration on people with the following profile:

Age Gender Education Locality Family Size Income Level Occupation

Around 20 60 years Both male and female Undergraduates and/or above completed 2-6 Around Tk. 40000 Government offices, small private jobs, small entry level jobs, and small scale entrepreneur

Marital Status

Married
TABLE 7: SAMPLE PROFILE

SAMPLING PROCEDURE
We have used anon-probability sampling technique for this particular research. Nonprobability sampling technique is technique that does not use chance selection procedure. Rather it relies on the personal judgment of the researcher (reference book). Among the nonprobability sampling technique we have used judgmental sampling; it is a form of convenience sampling in which the population elements are purposelyselected based on the judgment of the researcher (reference book). We have selected different places in Dhaka city, like Khilgoan, Shantinagar, Badda, etc. because we thought these were the places where we can find households that contains the elements of our requirements. We have also chosen friends and acquaintances whom we thought would fall in the category of our target market.

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We have chosen judgmental sampling because this was most convenient and for us given our research time and restrains. Our sample consists of 70 respondents of the following sampling criteria mentioned above.

DATA COLLECTION
We have collected both secondary and primary data for this particular research. The secondary data was collected from different marketing books, available in NSU library and from NSU Online resource of full text database, example JSTOR. This database was used because it has peer evaluated articles and journals. The primary data was collected by a survey questionnaire which was distributed among 70 respondents from our sample.

QUESTIONNAIRE DESIGN
The questionnaire consisted of two major sections. The first section consisted of questions about customer preference about quality over price, reliability of an IPS, durability of an IPS, preference of after-sales service, idea of brand image regarding an IPS, effect of promotion on customers purchase decision, and finally, customers purchase intention of an IPS. In this section, the questions were mainly designed using a five-point Likert scale ranging from 1 for Strongly Disagree to 5 for Strongly Agree. We used Likert scale because it is easy to analyze and easy to collect data with. It is also very useful for computing variables and hypothesis proving. This section also consisted of some rank order questions which were mainly asked to gain some useful insights about brand preference, importance of IPS features they look when buying an IPS. These questions were mainly used for hypothesis testing and useful insights. The second section of the questionnaire gathers demographic information of the respondents such as gender, age, income level and current power backup supply they are using, if any. This section was designed using nominal question. These questions were asked mainly to identify our target market and the decision makers in our target market. After the initial questionnaire was designed, we went for pre-testing of our questionnaire. In pre-testing, we reached out to ten respondents from our target market. The technique we used for pre-testing was debriefing. At a post level, we explained that this was a pre-testing, and

20

asked the respondents to explain any confusion they faced during the process. We also asked them to explain some sample questions and answers to check for confusions in the samples mind. From our pre-testing we found that some respondents had problems understanding the rank order questions because some of the brands mentioned in the questionnaire were unknown to the respondents. So we removed the unknown brand names and replaced them with the option Others where the respondents could mention brand names that are known to them. We also found that respondents dont think that IPS do not create any sense of luxury, prestige or social status, which made us remove questions regarding these aspects, and also change our hypothesis which stated that branded IPS gave consumers prestige and social status. We also changed the word Durability in the questionnaire with longer service life because respondents were having difficulty in understanding the meaning of the word Durability.

PROCESS FOLLOWED TO ENSURE ETHICAL PROCEDURE IN DATA COLLECTION

We have tried our best to maintain the authenticity and reliability of the research so that the research is conducted ethically. While collecting data we have clearly mentioned the respondents the purpose and objectives of the research. In our questionnaire we have mentioned that respondents can withdraw from the research at their will at any point and can choose not to answer any question if they are not comfortable answering it. Furthermore we have ensured our respondents, that their identity will not be disclosed. As researcher we have avoided manipulating any respondents in getting desired results and no one was asked to fill the questionnaire against their will.

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DATA ANALYSIS TECHNI QUES

The data we have collected was processed using IBM SPSS software. The data input in SPSS was cleansed for any error using frequency testing in SPSS. Then the data containing negative questions was recoded to get a positive output. After data cleaning and recoding the reliability test was conducted on the scale items of the questionnaire using Cronbachs Standardized Alpha to see the internal consistency of the scale items and their relation with the independent variable. The minimum accepted value of the Cronbachs Standardized Alpha was 0.6 for this research. Alter reliability testing variable was computed from the scale item using SPSS. Correlation was carried out between the dependent and independent variables to see if the dependent variables have a positive or negative impact on the dependent variables. For hypothesis testing regression analysis was carried out using the independent and dependent variables. From regression analysis we F-statistic, Adjusted R2 and F

significance were used to analyze the strength of the model. (The minimum accepted value for Adjusted R2 was 30% and maximum accepted significance level was 0.05) Strength of each independent variable was also analyzed using respective variables t -value and p-value. This was used to see which variable has most impact on the dependent variable. For the rank order questions we have used K-independent sample non-parametric test to find useful insights. Finally mean of each scale item was calculated using descriptive statistics to find strength areas and improvement areas

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RESULTS AND FINDINGS

DESCRIPTIVE STATISTICS AND CORRELATION MATRIX:
Variables Aftersales Brand Image Durability Promotion Purchase Intention Cronbachs Standardized Alpha .835 .704 .724 .187 .758
TABLE 8: RELIABILITY ANALYSIS

From the table, we can see that the Cronbachs Alpha value of all the variables except Promotion is above 0.60. This is the standard accepted level. This means that the scale items in the variables had a high association with the variable, and gave consistent results. The Cronbachs Alpha value for Promotion is less than 0.60. This means that the items in Promotion had a low association with the variable. The responses from the items in this variable had a high standard deviation. That is why the association of the items was low. And hence the Cronbachs Alpha value was so low. This table represents Cronbachs alpha () ranges from .835 to .187, which was essential to know the internal consistency among the variables. All the measures demonstrated adequate reliability ( > .6) and acceptable for further analysis, except for promotion variable which had an unusable alpha score of .187. This table also shows the correlation between the variables, to determine if they are positively or negatively correlated and descriptive of means and standard deviations of the variables are provided.
TABLE 9: CORRELATION AND DESCRIPTIVE ANALYSIS

Variables
1. Durability 2. Aftersales 3. Brand Image 4. Promotion 5. Purchase Intension

Mean 4.3240 4.1865 3.9750 2.9250 4.1619

SD .42413 .49704 .69698 .40457 .56535

1 (.724) .604
** *

(.835) .314
**

.248

(.704) -.903 .914

** **

.002 .509
**

-.109 .570
**

(.187) -.112 (.758)

**. Correlation is significant at the 0.01 level (2-tailed); N=100 *. Correlation is significant at the 0.05 level (2-tailed).

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The table shows that durability, aftersales and brand image all have positive relation on the dependent variable Purchase Intention but Promotion has a negative relation.

REGRESSION ANALYSIS:
Purchase Intention Variables
(Constant) Durability Aftersales Brand Image Promotion Adjusted R F Statistic F Significance
2

.204 .240 .599 -.072

t-statistic
.227 2.251 2.651 8.166 -1.037 0.674 29.525 0.000

p-value
.821 .028 .010 .000 .303

TABLE 10: REGRESSION ANALYSIS

From the table it can be seen that the adjusted R2for the model is 67.4% which means that he 67.4% percent of the total variation of the dependent variable is explained by the regression model. It is also a very good indication of the strength of the model as AR2is above 30%. The F statistic is 29.525 and its significance is 0.000 which is below 0.05; this indicates that the regression model is a significant one. Thus the independent variables are important in explaining the dependent variable. Hypothesis 1 states that Customer believe durability reduces cost in long-term. Thus the null hypothesis is that Customers do not believe durability reduces cost in long-term. From the Table it can be seen that durability is positively related with purchase intention, as the is positive .204.The t-statistics of durability has a significance of 0.028 which is below 0.05. Thus durability has significant effect on purchase intention. From the results it can be said that null hypothesis of hypothesis 1 can be rejected. As a result hypothesis 1 one can be accepted. Hypothesis 2 states that Customers believe after sale services increase the value of the product. Thus the null hypothesis is that Customers do not believe after sale services increase the value of the product. From the Table it can be seen that aftersales service is positively related with purchase intention, as the is positive .240.The t-statistics of aftersales service has a significance of 0.00 which is below 0.05. Thus brand image has significant effect on

24

purchase intention. From the results it can be said that null hypothesis of hypothesis 3 can be rejected. As a result hypothesis 3 can be accepted. Hypothesis 3 states that Customers believe banded product gives better performance. Thus the null hypothesis is that Customers do not believe banded product gives better performance. From the Table it can be seen that brand image service is positively related with purchase intention, as the is positive .599.The t-statistics of aftersales service has a significance of 0.01 which is below 0.05. Thus aftersales service has significant effect on purchase intention. From the results it can be said that null hypothesis of hypothesis 3 can be rejected. As a result hypothesis 2 can be accepted. Hypothesis 4 states that Promotion influences customers purchase intentions. Thus the null hypothesis is that Promotion do not influences customers purchase intentions. From the Table it can be seen that promotion is negatively related with purchase intention, as the is negative .072.The t-statistics of promotion has a significance of 0.303 which is above 0.05. Thus promotions have no significant effect on purchase intention. From the results it can be said that null hypothesis of hypothesis 4cannot be rejected. As a result hypothesis 4isrejected.

ANALYSIS OF THE INDEPENDENT VARIABLES

From the regression table it can be seen that Brand Image has the highest influence on the dependent variable as brand image has the highest t-value of 8.166 and the lowest p-value of 0.00. Brand image also has the highest beta of 0.599 which shows the dependent variable is highly sensitive to brand image. Aftersales has the second greatest influence on the dependent variable as it has the second highest t-value of 2.651 and the second lowest p-value of 0.01. It has the second highest beta of .240 Durability has the third most influence on the dependent variable as it has the t-value of 2.251, a p-value of 0.028 and a beta of .204 Promotion has no significance on the purchase intention on IPS as it has absolute t value of 1.037 which is the lowest t-vale and a p-value of 0.303 which is higher than 0.05.

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Thus from the regression analysis and independent variable analysis it can be seen that brand image, aftersales and durability plays an important role in influencing customers purchase intentions regarding an IPS.

AVERAGE RATINGS OF INDIVIDUAL QUESTIONS

The average rating of our dependent variable, Purchase Intention, came out to be 4.1619. This means that overall response from our respondents expressed an agreeable intention towards purchasing a branded IPS. Brand Image Questions Branded IPSs are more trust-worthy than nonbranded ones Branded IPS gives superior performances than Non-branded IPS I will buy branded IPS over non-branded cheap IPS Purchasing of a branded IPS reduces risk (mental satisfaction, Peer pressure, etc.) Mean 4.28 4.13 4.13 3.37

TABLE 6: BRAND IMAGE: EACH QUESTION MEAN ANALYSIS

From the above table, we can see that all the questions except for the fourth one have a good average rating. The questions have an average rating of above 4, which means that the general opinion of the respondents was agreeing with the question. This means they are strengths of Rahimafrooz. The fourth question, however, has an average rating of a little over 3. Since this question has a poor average rating, this is a weakness. Regarding the question, it can be said that respondents were not sure whether purchasing a branded IPS reduced their mental satisfaction, peer pressure, etc. or not. Thus, the average rating came out to be a little over 3, which means respondents had a neutral opinion.

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After Sales Service Questions Service warranties an important matter for you You prefer technicians of company you purchased the IPS to solve your technical problems You think technicians of the company you purchased the IPS will be knowledgeable when they visit to fix technical problems. Between two IPS, you are willing to pay a little more for the one that has more warranty After sales service of an IPS is almost as important to you as its price and quality Delivery times has to be as soon as after the purchase of IPS has been made You believe that behavior of technician during servicing contributes to the overall value of a durable good You never buy an IPS without prompt delivery Mean 4.46 4.36

4.34

4.21 4.20 4.06 4.00 3.94

TABLE 7: AFTER SALES: EACH QUESTION MEAN ANALYSIS

From the above table, we can see that all the questions have a rating of around 4 or above, which is a good average rating, meaning they are strengths of Rahimafrooz. Durability Questions Longer hour Power Backup is very important when buying a new IPS Longer service life is as important as the main features of a product to you You never buy a product unless you are sure about its expected life of service You believe that the longer the product life the less the cost in the long term Better service life drives you to choose a certain brand over others while making a choice among them You are willing to sacrifice more features for longer service life while purchasing a product Mean 4.72 4.46 4.31 4.30 4.26

3.91

TABLE 8: DURABILITY: EACH QUESTION MEAN ANALYSIS

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From the above table, we can see that all the questions have a rating of around 4 or above, which is a good average rating, meaning they are strengths of Rahimafrooz. Promotion
Questions Do you feel there should be more advertisements in different media regarding IPS from Rahimafrooz You buy a branded IPS only when discounts/sales promotions are given You will be looking out for IPS advertisement in different media (TV, Newspaper, Billboards) before you decide to purchase one You consider IPS ads before purchasing an IPS Mean 3.27 2.86

2.81

2.76

TABLE 9: PROMOTION: EACH QUESTION MEAN ANALYSIS

From the above table, we can see that all the questions have a poor average rating, meaning they are weakness for Rahimafrooz. The last three questions have average ratings of below 3, which mean that the general opinion of the respondents was disagreeing with the questions; while the first question has an average rating of a little above 3, which means that the general opinion of the respondents was neutral towards the question. The reason for the above ratings regarding Promotion is that Word of Mouth is the most influencing factor in IPS purchase.Customers prefer opinion leaders' suggestions.Rahimafrooz can work on their promotional activities to improve this.

ANALYSIS OF INSIGHT QUESTIONS

PRICE QUALITY INFERENCE
Preference of Quality over price Questions Price of a product increases as level of quality increases Quality is the first criteria you consider while buying an IPS Mean 4.07 3.97

From the above table, we can see that the mean value of the second question is 3.97, which isalmost 4. That means that general opinion of the respondents was to agree that quality is the first criteria they considered while buying an IPS. The mean value of the firstquestion is

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4.07 out of 5.This means that customers believe the price of a product increases with quality.Therefore, it can be said that if a product with a slightly higher price is introduced, consumers will buy it.

Ranks Mean Rank Performance Price Service Quality Durability Reliability 3.40 3.19 2.96 2.74 2.71

From the above table, we can see that the mean rank of Performance is 3.40, which is the highest among all the attributes.This means that customers look for quality over price when buying an IPS.

PREFERENCE IN TERMS OF QUALITY

Ranks Mean Rank Rahimafrooz IPS Rangs IPS Singer IPS Navana IPS Others1 (InGen IPS) Others2 (Grameen IPS) Non-Branded Chinese IPS Local Non-Branded IPS 6.85 5.62 5.54 5.23 4.54 4.08 2.31 1.85

From the above table, we can see that Rahimafrooz has the highest mean rank among all the IPS choices. After that, Rangs, Singer and Navana follow in the order.It can be said that our target market prefers branded IPS, but is unable to afford them because of the high cost. As Rahimafrooz has the highest rank it can also be said has a favorable position in the minds of the target customers, which is strength for Rahimafrooz.

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FEATURES THEY FEEL A BRANDED IPS SHOULD HAVE

Ranks Mean Rank Longer Service Life Longer Warranty Uninterrupted Power Backup Better aftersales service Knowledgeable technicians Prompt delivery 4.47 3.87 3.76 3.54 2.80 2.56

From the above table, we can see that Longer service life, Better warranty, Uninterrupted power backup and Better after-sales service have the highest ratings in that order.That means, customers expect these qualities to be present the most in a branded IPS. Therefore, Rahimafrooz can concentrate on these factors to increase purchase intention.

RAHIMAFROOZ INSIGHTS

Rahimafrooz Questions You believe Rahimafrooz IPS provides you with uninterrupted power backup in times of power cuts You believe Rahimafrooz IPS has longer service life You believe Rahimafrooz IPS has knowledgeable Rahimafrooz IPS is advertised frequently in different media Mean 4.10

4.00 3.93 3.01

From the above table, we can see that the average ratings of all the questions except for the fourth one is around or above 4, meaning that the general opinion of the respondents is agreeing with the questions. The fourth one has an average rating of 3.01, meaning respondents were neutral when asked about the frequent advertisement of Rahimafrooz IPS in different media. Therefore, Rahimafrooz needs to improve on this area.

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FEATURES THEY FEEL RAHIMAFROOZ IPS HAS:

Ranks Mean Rank Longer Service Life Longer Warranty Uninterrupted Power Backup Better aftersales service Knowledgeable technicians Prompt delivery 4.40 3.69 3.65 3.37 3.00 2.89

From the above table, we can see that Longer service life has the highest rating, meaning customers feel this is the most important feature Rahimafrooz has. After that, Longer Warranty and Uninterrupted Power follow in the order. Finally, Prompt Delivery is the least expected. Thus Rahimafrooz need to improve their delivery to further improve the purchase intention of their IPS.

BRANDS THAT THEY WILL 1 S T CONSIDER IN BUYING AN IPS

Ranks Mean Rank Rahimafrooz IPS Navana IPS Singer IPS Others2 Others1 Grameen IPS 4.86 4.36 3.86 3.14 2.79 2.00

From the above table, we can see that Rahimafrooz has the highest rating.That means customers consider Rahimafrooz as their primary choice when considering buying an IPS. Navana is a very close second. And Singer follows in third.

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RECOMMENDATION
Since we are introducing a new product in the market, we need to create awareness among the customers. Although Rahimafrooz IPS is a well-known product, we are launching a new one which is targeted to a different market than the previous. Therefore, considerable amount of promotional activities should be done to make our target market aware of the availability of the new product. From our research it is seen that promotion have no impact on the purchase intention of customers while buying an IPS but from our literature review it is seen that target advertising plays an important role in creating awareness among customers about a new product and making familiar with the benefits and features if the existing product. It is also seen advertising influences purchase behavior of the consumers. Due to this we cannot completely rule out promotions as a factor that do not influence purchase intention. We need to reduce the psychological risk of the customers, which we can achieve by eliminating cognitive dissonance from the mind of the consumers. We can do this by upholding Rahimafroozs achievements and renowned activities through communication activities. Doing this would ensure that customers think highly of Rahimafrooz and are satisfied with their purchase of the IPS, thus eliminating any kind of cognitive dissonance. Through our research, we have seen that customers think that higher price reflects higher quality. Therefore, we can set a slightly higher price relative to the nonbranded and Chinese IPS to offer better services. This will lead customers to believe that the extra price is due to the extra quality or features. Rahimafrooz can concentrate Longer service life, Better warranty, and Better aftersales service to increase purchase intention. Our research has made it clear that customers primarily think of these attributes when they think of Rahimafrooz IPS. Therefore, strengthening these attributes would lead to a stronger purchase intention. Finally, through our research, we have seen that customers prefer Rahimafrooz over other brands in terms of quality. When buying an IPS, Rahimafrooz comes first to the mind of customers. Therefore, this new product can be introducedto the target market.

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CONCLUSION
So this was our research to find out the purchase intention of the customer behavior when buying an IPS as a whole, and also solving the management decision problem which was Should Rahimafrooz launch a lower priced IPS for the lower middle class or less affluent people of the society? for better understanding the current scenario of the market. We have found out the customers highly appreciates durability, after sales services and brand image of an IPS, but they do not favor promotional activities at all. We have recommended introducing a new product in the market so that you can gain the lower middle class, and move ahead in the competition. Now it is up to you how you will approach to gain maximum benefits from this research and implement accordingly. We will be obliged to work with you as a client in the future if further researches are needed at any marketing areas.

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REFERENCES
Aaker, David A. (1991), Managing Brand Equity, New York: Free Press. Aaker, J. L. (1999). The malleable self: The role of self-expression in persuasion. Journal of Marketing Research, 36(1), 45-57 Cathy J. Cobb-Walgren, Cynthia A. Ruble & Naveen Donthu (1995), brand Equity, brand preference, and purchase intent. Retrieved July 28, 2012, from http://www.jstor.org/stable/4188979 Cohen MA, Agrawal N, Agrawal V (2006). Winning in the aftermarket.Harv. Bus. Rev., 84(5): 129138. As cited in, Fazlzade, A., Bagherzadeh, F. &Mohamadi, P. (April 2011). How after-sales service quality dimensions affect customer satisfaction. African Journal of Business Management ,Vol. 5(17), pp. 7658-7664, 4 September, 2011Retrieved July 30, 2012, from http://www.academicjournals.org/AJBM

Cohen MA, Kunreuther H (2007). Operations risk management: overview of Paul Kleindorfer's contributions. Prod. Oper.Manage., 6(5): 525541. Retrieved July 30, 2012, As cited in, Fazlzade, A., Bagherzadeh, F. &Mohamadi, P. (April 2011). How after-sales service quality dimensions affect customer satisfaction. African Journal of Business Management ,Vol. 5(17), pp. 7658-7664, 4 September, 2011Retrieved July 30, 2012, from http://www.academicjournals.org/AJBM Chien YH (2005). Determining optimal warranty periods from the seller's perspective and optimal out-of-warranty replacement age from the buyer's perspective. Int. J. Syst. Sci., 36 (10): 631637. Retrieved July 30, 2012, As cited in, Fazlzade, A., Bagherzadeh, F. &Mohamadi, P. (April 2011). How after-sales service quality dimensions affect customer satisfaction. African Journal of Business Management ,Vol. 5(17), pp. 76587664, 4 September, 2011Retrieved July 30, 2012, from http://www.academicjournals.org/AJBM

Donald G. Morrison(1979),Purchase intentions and purchase behavior, Retrieved July 28, 2012 from http://www.jstor.org/stable/1250742

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Fazlzade,A.,Bagherzadeh, F. &Mohamadi,P. (April 2011). How after-sales service quality dimensions affect customer satisfaction. African Journal of Business Management ,Vol. 5(17), pp. 7658-7664, 4 September, 2011Retrieved July 30, 2012, fromhttp://www.academicjournals.org/AJBM

Foster, S. T. Managing Quality an Integrative Approach. Upper Saddle River, New Jersey: Prentice Hall, 2001. Page 6. Iyer, G., D. Soberman, J. M. Villas-Boas. 2005. The targeting of advertising. Marketing Sci. Forthcoming. As cited in, Esther Gal-Or &Mordechai Gal-Or, Customized advertising via a common media distributor. http://www.jstor.org/stable/40056953 Keller, K. L. (2003). Building, measuring, and managing brand equity.New Jersey: Pearson Education . Retrieved July 30, 2012, from http://www.academicjournals.org/ Lele MM, Karmarkar US (1983). Good product support is smart marketing. Harv. Bus. Rev., 61(6): 124-32. As cited in, Fazlzade, A., Bagherzadeh, F. &Mohamadi, P. (April 2011). How after-sales service quality dimensions affect customer satisfaction. African Journal of Business Management ,Vol. 5(17), pp. 7658-7664, 4 September, 2011Retrieved July 30, 2012, from http://www.academicjournals.org/AJBM

Plaisted, R. (2008). Product durability, do consumers care? Retrieved July 30, 2012, from http://www.opednews.com/articles/opedne_ryan_pla_080222_product_durability_2c_.h tm Totten, J. and M. Block (1987), Analyzing Sales Promotion: Test and Cases, Chicago, IL: Commerce Communications. As cited in, Robert C. Blattberg, Richard Briesch& Edward J. Fox, How promotions work, Retrieved July 28, 2012, from

http://www.jstor.org/stable/184154 Vitasek K (2005). Supply Chain and Logistics Terms and Glossary, Supply Chain Vision, Belevue, WA. Retrieved July 28, 2012, As cited in, Fazlzade, A., Bagherzadeh, F. &Mohamadi, P. (April 2011). How after-sales service quality dimensions affect customer satisfaction. African Journal of Business Management ,Vol. 5(17), pp. 76587664, 4 September, 2011Retrieved July 30, 2012, from http://www.academicjournals.org/AJBM

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Yasin, N. M., Noor, M. N. &Mohamad, O. (2007). Does image of country-of-origin matter to brandequity? Journal of Product &Brand Management, 16 (1), 38-48

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APPENDIX

RAHIMAFROOZ IPS Purchase Intention Survey

Dear Respondent: We would like to thank you for taking the time to take part in our survey. The purpose of this survey is to get feedback from you about your opinions and preferences in purchasing an IPS, for the purpose of providing better service. However, this information is only for academic purpose and will not be disclosed elsewhere. You can withdraw from the survey anytime you want to and you may choose not to answer any question you feel uncomfortable with. 1. Rank the following features in order of importance while buying an IPS (5 being the one with highest importance and 1 being the one with lowest importance.) _______Performance _______Reliability _______Durability _______Service quality _______Price The following questions are regarding your Strongly Strongly Agree Neutral Disagree preference of quality over price Agree Disagree 2. Quality is the first criteria you consider while buying an IPS 3. Price of a product increases as level of quality increases. 4. Rank the following brands in order of quality. (8 being the one with highest quality and 1 being the one with lowest quality.) _____ Singer IPS _____ Rahimafrooz IPS _____ Navana IPS _____Rangs IPS _____Non-Branded Chinese IPS _____Local Non-Branded IPS ______________ Others(mention any other IPS brands that comes to your mind) ______________ The following questions are about reliability of an IPS 1. Longer hour Power Backup is very important when buying a new IPS 2. Service warranties an important matter for you. 3. Branded IPS has lesser problems in terms of malfunction. 4. Delivery times has to be as soon as after the purchase of IPS has been made The following questions are about the durability of an IPS 1. Longer service life is as important as the main Strongly Agree Agree Neutral Disagree Strongly Disagree Strongly Agree Agree Neutral Disagree Strongly Disagree

features of a product to you. 2. You never buy a product unless you are sure about its expected life of service 3. Better service life drives you to choose a certain brand over others while making a choice among them. 4. You are willing to sacrifice more features for longer service life while purchasing a product. 5. You believe that the longer the product life the less the cost in the long term The following questions are about preference of Strongly aftersales service Agree 1. Aftersales service of an IPS is almost as important to you as its price and quality. 2. You never buy an IPS without prompt delivery 3. Between two IPS, you are willing to pay a little more for the one that has more warranty 4. You believe that behavior of technician during servicing contributes to the overall value of a durable good. 5. You prefer technicians of company you purchased the IPS to solve your technical problems 6. You think technicians of the company you purchased the IPS will be knowledgeable when they visit to fix technical problems

Agree

Neutral

Disagree

Strongly Disagree

The following questions are about your idea of brand image regarding an IPS product 1. Among the following features tick the features that a branded IPS will have. (You can tick more than one option) ________Longer Service life ________Longer Warranty ________Better after sales service ________Knowledgeable technicians ________Prompt delivery after purchase ________Uninterrupted Power Backup

The following questions are about your idea of Strongly brand image regarding an IPS product. Agree 2. Branded IPS gives superior performances than Non-branded IPS 3. I will buy branded IPS over nonbranded cheap IPS 4. Purchasing of a branded IPS reduces risk (mental satisfaction, Peer pressure,

Agree

Neutral

Disagree

Strongly Disagree

etc.)? 5. Branded IPSs are more trust-worthy than non-branded ones. The following questions are about effect of IPS Strongly promotions in your purchase decision Agree 1. You consider IPS ads before purchasing an IPS 2. You buy a branded IPS only when discounts/sales promotions are given 3. You will be looking out for IPS advertisement in different media(TV, Newspaper, Billboards) before you decide to purchase one. 4. Do you feel there should be more advertisements in different media regarding IPS from Rahimafrooz

Agree

Neutral

Disagree

Strongly Disagree

The following questions are regarding your Purchase Intention of an IPS 1. I want to purchase an IPS if its affordable 2. I want to purchase an IPS which has high service life. 3. Considering price I prefer cheaper nonbranded IPS 4. Generally speaking, buying branded IPS is a better choice 5. I want to purchase an IPS which has high reliability 6. I want to purchase an IPS which has a good aftersales service. 7. You will purchase IPS that has more frequency of advertisement in different media(TV, Newspaper, Billboards).

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

The Following questions are regarding your perception of Rahimafrooz IPS

1. Among the following features tick the features that a Rahimafrooz IPS will have? (You can tick more than one option) ________Longer Service life ________Longer Warranty ________Better after sales service ________Knowledgeable technicians ________Prompt delivery after purchase

________Uninterrupted Power Backup 2. Will you recommend Rahimafrooz IPS to your friends? a) Yes b) No The following questions are regarding your perception of Rahimafrooz IPS 3. You believe Rahimafrooz IPS has longer service life. 4. You believe Rahimafrooz IPS provides you with uninterrupted power backup in times of power cuts. 5. Rahimafrooz IPS is advertised frequently in different media. 6. You believe Rahimafrooz IPS has knowledgeable technicians. Strongly Agree Agree Neutral Disagree Strongly Disagree

7. If you are thinking of buying an IPS will you consider a Rahimafrooz IPS a) Yes b) No 8. Among this IPS brands which of the following brands will be your first preference. Rank them in order of your preference. (6 being your first preference and 1 being your last.) _____ Singer IPS _____ Grameen IPS _____ Rahimafrooz IPS _____ Navana IPS __________ Others __________Others Finally in this part of the questionnaire we would like to ask you some background information for classification purposes. You are currently using: a) Branded IPS b) Chinese made IPS c) Non-branded IPS d) Any other form of backup power supply e) None at the moment Who is your decision maker of your household? a) ______Male head of the household b) ______Female head of the household c) ______Both together Your education background: a) O Levels

b) c) d) e) f) g)

A Levels SSC HSC Undergraduate Postgraduate Above

What is the total number of family members living at home? ______ What is your average family monthly income per month? a) 30000 40000 b) 40000 55,000 c) 55,000 70,000 d) 70,000 85,000 e) More than 85,000

FOR RELIABILITY TABLES SEE NEXT PAGE

After-sales Cronbachs Standardized Alpha = .835 Cronbach's Alpha if Item Deleted .828 2.Service warranties an important matter for
you 4.Delivery times has to be as soon as after the purchase of IPS has been made 1.After sales service of an IPS is almost as important to you as its price and quality 2.You never buy an IPS without prompt delivery 3.Between two IPS, you are willing to pay a little more for the one that has more warranty 4.You believe that behavior of technician during servicing contributes to the overall value of a durable good 5.You prefer technicians of company you purchased the IPS to solve your technical problems 6.You think technicians of the company you purchased the IPS will be knowledgeable when they visit to fix technical problems

.835 .817 .806 .822 .818

.790

.811

Brand Image Cronbachs Standardized Alpha = .704 Cronbach's Alpha if Item Deleted 2.Branded IPS gives superior performances .748
than Non-branded IPS 3.I will buy branded IPS over non-branded cheap IPS 4.Purchasing of a branded IPS reduces risk (mental satisfaction, Peer pressure, etc.) 5.Branded IPSs are more trust-worthy than non-branded ones

.453 .772 .448

Durability Cronbachs Standardized Alpha = .724 Cronbach's Alpha if Item Deleted 1.Longer hour Power Backup is very .696
important when buying a new IPS 1.Longer service life is as important as the main features of a product to you 2.You never buy a product unless you are sure about its expected life of service 3.Better service life drives you to choose a certain brand over others while making a choice among them 4.You are willing to sacrifice more features for longer service life while purchasing a product 5.You believe that the longer the product life the less the cost in the long term

.660 .703 .668 .700 .647

Promotion Cronbachs Standardized Alpha = .187 Cronbach's Alpha if Item Deleted 1.You consider IPS ads before purchasing an .094
IPS 2.You buy a branded IPS only when discounts/sales promotions are given 3.You will be looking out for IPS advertisement in different media (TV, Newspaper, Billboards) before you decide to purchase one 4.Do you feel there should be more advertisements in different media regarding IPS from Rahimafrooz

.260 -.098

.179

Rahimafrooz Cronbachs Standardized Alpha = .669 Cronbach's Alpha if Item Deleted 3.You believe Rahimafrooz IPS has longer .481
service life 4.You believe Rahimafrooz IPS provides you with uninterrupted power backup in times of power cuts 5.Rahimafrooz IPS is advertised frequently in different media 6.You believe Rahimafrooz IPS has knowledgeable technicians

.397 .863 .466

Purchase Intention Cronbachs Standardized Alpha = .758 Cronbach's Alpha if Item Deleted 1.I want to purchase an IPS if its affordable .669 2.I want to purchase an IPS which has high .687
service life 3.Considering price I prefer cheaper nonbranded IPS 4.Generally speaking, buying branded IPS is a better choice 5.I want to purchase an IPS which has high reliability 6.I want to purchase an IPS which has a good aftersales service

.725 .659 .653 .724