ISSN: 2249-7196

IJMRR/ October 2014/ Volume 4/Issue 10/Article No-4/988-995

Dr. P. Karthikeyan et. al./ International Journal of Management Research & Review

A STUDY ON DEALERS ATTITUDE TOWARDS FANS AND LIGHTS WITH

REFERENCE TO ERODE CITY
Dr.P.Karthikeyan*1
1
Asst. Prof (Sr.Grade), School of Management Studies, Kongu Engineering College,
Perundurai, Erode, Tamilnadu, India.
ABSTRACT
The intention of the study is to understand dealers attitude towards fans and lights in Erode
city. Here the survey was conducted for the purpose of obtaining dealers view on various fan
and light manufacturers. This was done by administrating questionnaire to the sample of 102
dealers dealing with various brands fans and lights in Erode City.The primary data for the
study was collected through questionnaire and secondary data collected from journals, books
and magazines. The tools used for analyzing the collected data are Simple Percentage
Analysis, Weighted average analysis, Chi-square analysis and One-way ANOVA. The
finding of the study reveals that dealers face many problems like transportation, credit
discount and timely delivery etc., It is suggested from the findings that the dealers can do
some promotions to improve the sales turnover. It is suggested that the company should meet
dealers in a frequent time and address their issues in a timely way.
Keywords: Dealers Attitude, Market Share, Dealers Problems, Satisfaction Level.
1. INTRODUCTION
India's electrical equipment and industrial electronics sector's annual production is currently
around $25 billion, which represents 1.5 per cent of the national GDP, while its exports total
$4.5 billion, according to IEEMA (Indian Electrical and Electronics Manufacturers
Association). The term electrical includes all forms of consumer durables like fans, lights etc.
This study is conducted in Erode city among the dealers of fan and light dealing for different
companies. The study enables us to know about the strategies adopted by these dealers in
selling fans and lights to target segment (Mallikarjuna Reddy, 2002)It also helps in knowing
the market share of fans and lights in the city.
The study is investigated the relational differences within supply networks to discern the role
of involvement of supplier and satisfaction in the dealer's supply selection process (Jule and
Roger, 1995). The study is used to inter-firm dierences, various aspects of the fan and light
dealers from their ownership, type of shop etc., (Pandit and Siddharthan, 2003)
2. REVIEW OF LITERATURE
Jule and Roger (1995) investigated the relational differences within supply networks to
discern the role of involvement of supplier and satisfaction in the dealer's supply selection
process. Mallikarjuna Reddy(2002)has stated that in order to develop successful marketing

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 Dr. P. Karthikeyan et. al./ International Journal of Management Research & Review

strategies, marketers must understand consumer behaviour of the target market, keeping in
view environmental influences, individual differences and psychological process based on
which consumers make decisions.
Savithri (2012) found that it is necessary to build long term loyal relationships as the new
economy is becoming more competitive and Samsung India Electronics Private Limited
should provide timely and adequate stocks, liberal credit terms, give awards, free family trips
etc., to encourage and motivate the dealers. Krishna Kumar (2011) stated that occupational
factor does not much influence the consumer behaviour of electronics goods, the marketers
are advised not pay more attention in this regard.
Broadbridge Adelina and Marshall Julie(1995) states that the nature, complexity, life
expectancy and price of the product are factors causing a high public action ratio; smaller,
inexpensive electrical goods generated the fewest complaints. According to K. Rajaselvi
(2002), the basic characteristics of consumers are behaviour pattern of consumers and it is
particularly in quality, preference and decision making. Thirumoorthy.P and Karthikeyan. P
(2006) studied retailer and customer attitude towards P&G detergent powder in Coimbatore
city and found that the consumers are influenced by major factors such as brand name, price,
quality, availability, packaging and advertisements.
3. METHODOLOGY
3.1 Statement of the Problem
The study of dealers attitude towards electrical goods in Erode enables us to take decisions
regarding selling of electric fans and lights. Dealers face many problems from transport,
discount margin etc. The companies change their price list quite often such that it makes the
dealers difficult to deal with customers. And also, the credit discount offered by the company
also varies from one dealer to another (Krishna Kumar, 2011). Nowadays customers are
attracted towards Chinese products because with low price, they offer more features and
variety compared to similar Indian products (Yogesh D Mahajan, 2011). Hence this study is
conducted to find the challenges and difficulties faced by the dealers. The study also focuses
on the expectations of the fan and light dealers. This study helps in knowing the market share
of fans and lights by dealers in Erode city. It studied about the satisfaction level of dealers
towards various factors like discount margin, transport, credit period, delivery time.
3.2. Objectives of the Study
1. To study the dealers attitude towards fans and lights with reference to Erode city.
2. To identify the strategies adopted in selling fans and lights by the dealers in Erode city.
3. To study the factors influencing to deal the particular brands and to find the satisfaction
level of dealers towards electrical goods offered by the distributor.
4. To find out the market share of fans and lights in Erode city.
5. To find the relationship between number of years in business and sales turnover of the
dealers in Erode city.
3.3. Research Methodology
The Research Design used for this study is Descriptive research whose purpose is to
describe accurately the characteristics of a particular individual, or of a group.The population

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 Dr. P. Karthikeyan et. al./ International Journal of Management Research & Review

study is used for the collection of data for the study. There are totally 153 electrical shops
dealers are in Erode city. But the data are collected from only 102 dealers. The data used for
this study is primary data and it was collected in June 2013. The research instrument used for
the study is structured questionnaire with interview schedule method.Collected data were
analysed through percentage analysis, Weighted average method, Chi-Square analysis and
One way ANOVA.
3.4. Limitations of the Study
1. The period of the study was very less to study all the factors in deep. The study is
conducted within the Erode city limit, thereby restricting the scope of the study. This survey
was conducted and targeted only on dealers.
2. Time and resource constraints are experienced during the data collection. The Dealers
were reluctant in revealing sales data about their shop.The response given by the dealers may
not be true.
4. ANALYSIS AND INTERPRETAION
Table 1: Socio-Economic and Demographic Profile of dealers
Demography Profile Category No of Respondents Percentage
Type of ownership Sole proprietorship 47 46.1
Partnership 55 53.9
Number of years in Below 3yrs. 35 34.3
business 3-5 Yrs 52 51
5-7yrs 04 3.9
Above 7 Yrs 11 10.8
Monthly sales turnover Below 1 Lakh 27 26.5
1 Lakh-3 Lakh 32 31.4
3 Lakh-5 Lakh 30 29.4
Above 5 Lakh 12 12.7
Number of Less than 5 20 19.6
employees/workers 5-10 46 45.1
Above 10 36 35.3
Nature of shop Own Shop 26 25.5
Rental 67 65.7
Lease 09 8.8
Type of products dealing Fans 89 87.3
(Out of 102 respondents) Lights 93 91.2
Electric Wires 69 70
Switches 81 80
Pipes &Fittings 47 45
Rewinding Wires 21 20.6
Mixer Grinders 14 15
Frequency Of Ordering Daily 27 27.2
Goods Once in a Week 45 45.3
One in 15 days 26 25.5
Once in 30 days 02 5
Preferred Promotional Gifts 20 19.6
offers expected from Discounts 45 44.1
Manufacturer Schemes 25 24.5
Sales Promotion 08 7.8
Trip and Tour 04 3.9

Source: Primary Data Collected from the Dealers of Electric Shop

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 Dr. P. Karthikeyan et. al./ International Journal of Management Research & Review

From the above table show that, about 53.9% of the electrical dealers shop are in the form
partnership, majority of the respondents engaged in this business for 3-5 years, about 31.4%
of the dealers sales turnover is between 1 3 lakhs, 45.1% of the shops have 5 -10 workers
in their shops, 65.7% of the electrical shops in Erode city are in rental basis.
Majority of the electrical dealers are sell fans and lights, 45.3% of the respondents order their
electrical goods once in a week and most of the dealers prefer discounts as a promotional
activity from their distributor.
Table 2: Satisfaction level of dealers towards various factors offered by the companies
Highly Neither Satisfied Highly
Factors Satisfied Dissatisfied
Satisfied nor dissatisfied Dissatisfied
Promotional Activities 46.1 20.6 10.8 14.7 7.8
Quality 48 28.4 7.8 10.8 4.9
Schemes 26.5 46.5 9.8 12.7 4.5
Delivery 17.6 33.3 11.8 31.4 5.9
Discount Margin 17.6 22.5 17.6 32.4 9.8
Credit Period 29.4 22.5 12.7 23.5 11.8
Source: Primary Data Collected from the Dealers of Electric Shop
It is inferred from the above table that,about 46.1% of the respondents are highly satisfied
with the promotional activities offered by various companies, 48% are highly satisfied with
the quality of the products, 46.5% of the expressed that they are satisfied with the schemes
offered by the companies, 33.3% of the respondents are satisfied with the timely delivery of
the products.32.4% of the respondents expressed their dissatisfaction with the discount
margin offered by the distributors and 29.5% are highly satisfied with the credit period
offered by the company.
Table 3: Market share of fans and lights in Erode city
Fan/Light Fan Sales Market Share of Fan Light Sales quantity Market Share of
brands quantity Percentage (%) (in Nos) Light Percentage
(in Nos) (%)
Havells 5885 21 7462 16
Crompton 9541 34 11905 25
Greaves
Bajaj 2020 7 1290 3
Usha 3205 11 NA NA
Orient 2092 8 3457 7
Polar 1009 4 NA NA
Khaitan 2787 10 NA NA
Almonard 1475 5 NA NA
Pasolite NA NA 2323 5
Philips NA NA 11648 25
Osram NA NA 1895 4
Surya NA NA 2665 6
Wipro NA NA 4000 9
Source: Primary data are collected for the first time from the dealers.

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 Dr. P. Karthikeyan et. al./ International Journal of Management Research & Review

Fig 1: Market Share of Fan Fig 2: Market Share of Light

In the Product of Fans, Crompton Greaves occupies 34% of the market share and Havells
occupies 21% of the market share inErode city.In the Product of LightsCrompton Greaves
and Philips occupy 25% of the market share in Erode city.
Table 4: Overall satisfactions of dealers towards various fan and light brands
Source: Primary data are collected for the first time from the dealers.

Highly Dissatisfied Highly

Brands Satisfied Neutral Average Rank
satisfied Dissatisfied
Havells 51 25 4 11 1 3.72 2
Crompton
33 45 3 13 5 3.77 1
Greaves
Usha 17 42 7 20 7 3.14 4
Bajaj 14 37 11 24 6 2.99 6
Khaitan 11 30 17 26 6 2.78 9
Polar 15 27 12 25 11 2.74 11
Orient 16 25 15 26 10 2.81 8
Pasolite 16 21 11 27 14 2.59 13
Almonard 18 18 16 22 16 2.65 12
Wipro 26 17 11 28 13 2.94 7
Surya 20 33 10 19 8 3.01 5
Philips 27 33 14 24 7 3.57 3
Osram 17 19 23 24 6 2.78 9

WEIGHT
Highly satisfied Satisfied Dissatisfied Neutral Highly Dissatisfied
5 4 3 2 1

The above table shows that Crompton Greaves is ranked first in overall satisfaction. Havells
is ranked second followed by Philips, Usha, Surya, Bajaj, Wipro, Orient,Osram and Khaitan.

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 Dr. P. Karthikeyan et. al./ International Journal of Management Research & Review

Table 5: Chi-Square Analysis between different Hypothesis

S.No Hypothesis Chi- Significant/Not Result
Square Significant
Value
1 Monthly sales turnover and .201 Null hypothesis is accepted
Purchasing Period Not Significant
2 Monthly sales turnover and .029 Significant Null hypothesis is rejected
Nature Of Shop
3 Number of years in business .697 Null hypothesis is accepted
and promotional activity of Not Significant
Companies

The significance value of Monthly sales turnover and Nature Of Shop is 0.029 which is less
than 0.05 therefore reject null hypothesis and accept alternate hypothesis saying that there is a
significant relationship between Monthly sales turnover and Nature Of Shop All other
Hypothesis are having the significant value higher than 0.05.
Table 6: ANOVA Analysis between different Hypothesis

S.No Hypothesis F Value Significant Significant/Not Result

Value Significant
1 Sales turnover and 0.350 0.844 Null hypothesis is
satisfaction level of Not Significant accepted
discount margin

2 No of years in 0.603 0.662 Null hypothesis is

business and Not Significant accepted
satisfaction level of
credit period
The significance value of Monthly sales turnover and satisfaction level of discount margin is
0.844 and the significance value of No of years in business and satisfaction level of credit
periodis 0.662 which are more than 0.05, therefore accept null hypothesis in both the cases.
5. RESULTS AND DISCUSSION
1. About 53.9% of the dealers are partners in their electrical shop.The study shows that
majority of the respondents engaged in this business for 3-5 years. The majority of about
31.4% of the dealers sales turnover is 1 3 lakhs. About 45.1% of the shops have 5 -10
workers in their shops. 65.7% of the electrical shops in Erode city are in rental basis. About
87 % of the electrical dealers sell fans and 91% of the respondents sell fans.
2. The study reveals that majority of about 46.1% of the respondents are highly satisfied with
the promotional activities offered by various companies. The majority of the respondents
(48%) are highly satisfied with the quality of the products.45.7% of the expressed that they
are satisfied with the schemes offered by the companies. The study shows that majority of
about 33.3% of the respondents are satisfied with the timely delivery of the products.
3. Crompton Greaves occupies 34% of the market share of fans in Erode city and Havells
occupies 21% of the market share in Erode city. Crompton Greaves and Philips occupy 25%
of the market share of lights in Erode city.

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 Dr. P. Karthikeyan et. al./ International Journal of Management Research & Review

4. Increasing the percentage of discount and gifts offers will satisfy the dealers to a greater
extent.The company should offer similar discount margin and credit period to all dealers to
reduce the dissatisfaction among the dealers.
5. The companies can arrange for dealers meet and can award the dealers based on the
performance. This will increase the satisfaction level of the dealers towards the companies.
6. In store advertising can be designed to increase the number of spontaneous buying
decision.The existing trade promotion schemes are not offering much too small scale dealers.
There should be good trade promotion schemes which support the smaller dealers too.
7. There should be consistency in pricing and should increase the quality so as to maintain a
good relationship between the dealers and the company.The dealer must reduce the lead time
in such a way that reduces the lead time.The company should increase the number of dealers
and it should appoint dealers with good potential to sell so as to increase the market
share.The companies should intimate the dealers about the price change immediately to the
dealers.
8. The companies should make a proper distribution channel so as to improve the time
delivery of products and the company has to appoint sales personnel to monitor the local
market which will increase the market share of the companies.
9. The dealers expressed their dissatisfaction towards discount margin offered by the
companies. So, the companies should allow similar discount margin to all the dealers to get
their good opinion.
6. SCOPE FOR FURTHER RESEARCH
This study gives a clearly picture about the fan and light dealers in Erode city. The challenges
and difficulties faced by the dealers are found through this study. There is a possibility of
further research in this area to know about expectations of the fan and light dealers. Also, this
enables to know about the strategies adopted by the dealers. The researcher can also conduct
research in knowing the market share of fans and lights by dealers. The further research also
will be include the following factors such as satisfaction level of dealers, discount margin,
transport, credit period, delivery time and promotional activities
7. CONCLUSION
This study has helped in finding out the market leader in fan and lights in Erode city. The
study also clearly explained about the problems and challenges faced by the fan and light
dealers in the city. The study states the attitude of dealers towards various fan and light
brands. The findings and suggestions given in this study will help the dealers in improving
the sales turnover of the shop. The study also reveals the strategies adopted by the fan and
light dealers in Erode city. This study enables us to find the market share of various fan and
light brands in Erode city.
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 Dr. P. Karthikeyan et. al./ International Journal of Management Research & Review

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