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RAMACHANDRANS FAMILY BUY A WASHING MACHINE

Ramachandrans family decides to buy a washing machine for their family. Here the case depicts the various consumer buying decisions and comparison .The cases of 3 major brands in washing machine and various modes of Consumer purchase decisions enables us to learn the concepts in Consumer Buying Behaviour / Consumer buying behaviour process.It also depicts the most important factor in consumer buying decision pre & post purchase consumer behaviour. Brief about Ramachandrans family : Ramachandrans family is a joint family with six members. Mr. Ramachandran, Aged 69 years, retired as a school teacher in High school at Chennai, his wife Mrs. Seetha Ramachandran, aged 65 years, house wife suffering with arthritis for the last 10 years. They have two sons, elder son Mr. Hari -34 years and working with private company as Sales Executive & his wife

Mrs. Sravani, aged 30 years who is working with a NIC as a data collection centre and they have a daughter whose is 11 months old .His younger son Mr. Subramanian(Subu) doing his second year post graduation at Loyala College. Sravani, dont u feel bad odour here? Actually it is coming from clothes hanged near the door. Those were lying there for a quite sometime from now!!! Said Hari. Ya .. I know, the smell is coming from the washing basket, where clothes are to be washed kept. Maid didnt come whole last week!! Anni, Where is my washed blue colored shirt asked Subu, the BIL to Mrs. Sravani at 8 o clock in the morning. Anni (Sravani) Oh that shirt needs to be washed, maid is not coming for the last one week and I am finding it difficult to wash all the clothes. I washed only essential clothes for the last three days!! More so last week rains also ruined my plans. Then she continues looking (regret looks) at Subu Sorry Subu, More so for last four days I am coming to home at 9.00 p.m, because of heavy work in my office. Now, Mr. Ramachandran joins the issue

with Subu and tells, Why you are dependent on Anni even for this, How much she can do the for the family!! You should have washed your clothes. This problem can be avoided, if servant maid comes and washes the clothes regularly, Says Seetha ( mother of Hari). Though she is working with us for many years for the last one year, she is irregular (after she lost her husband). More so, Which servant maid will come wash properly and regularly? Maaji, Last week only on your insistence I gave some of our clothes to Dhobi, and we all suffered with skin problem, replied Sravani. When the problem going in to different dimension, Ramachandran had asked his son, to wear the some other shirt and started to leave. Sravani at the office : Sravani went to the office even with out taking break fast. What happened Sravani, you seems to be upset? asked Padma colleague of Sravani. Entire scene was explained by Sravani and continued, Today it was hectic day. In the peak hours of morning I have to take care cooking, perform pooja, prepare medicines for Mother-in-law

and washing clothes etc, so in the morning itself I feel exhausted. Padma told Here after it will be difficult to go home before 8 p.m as new boss has taken over. Dont you remember what he told in his first interaction with us? Sravani replied Yes I remember, he will be generous about the incentives, at the same time he is strict about the performance and timings. Padma asked, Why dont you consider to purchase of a washing machine? Sravani replied, I have to consider about that, but I have to discuss with my husband and rest of the family the various issues relating to this and will come to a decision. Sravani, Boss is calling you Secretary said. Finally, one day maid informed that she will not be in a position to do the washing any more and she discontinued abruptly. Mr. Ramachandrans family conservation with a relative : Mr. Ramachandrans family goes to Trichy to attend the function at his elder sisters (Rukmani) house. Sravani, has a good rapport with her sister-in-law, and also assisted her in functions in many occasions. She interacts with her sister in law & also tells her the issues at home that she was worried about the washing of clothes. While

their conservation she observes how quickly her sister in law washes her clothes in washing machine . By seeing this Rukmani said, I recently bought Videocon fully automatic washing machine at the price of around Rs15, 000, it reduced my burden to the greater extent. At that time she also observed how Rukmani was able to complete all her household comfortably. After coming to Chennai thinks about buying a washing machine . Though Sravani requested all family members to wash their clothes on their own, it has not worked out. She hired one more servant maid to tackle the situation, though she wasnt comfortable with that arrangement. Then MIL & BIL continues to complain about the behavior of servant maid and her frequent absence. Servant maid simply put blame on quality of water, availability of water, quality of detergent powder and gave lame excuses for irregularity. One night during dinner time, Mr. Hari announced I may get incentive with December Salary so that we can celebrate Pongal festival. Immediately, each & every one in the family started to list out their wishes. Subu wanted a new mobile handset; Sravani wanted Mrs.Sravani

to buy new washing machine,Mr. Ramachandran thought of asking his son for Knee Recap Surgery. But MIL told Dont spend

unnecessarily in machines, instead invest in gold which will be useful for Grand Daughter studies or for marriage. Finally Mr.Hari said, let us buy a washing machine now with this Bonus. The other things can wait for some more time. The Advertisement given by Godrej washing machine in the daily of Deccan chronicle got the attention of Hari. He also found the Advertisements of Samsung and LG in the other dailies

(Advertisements are given as Annexures). All the Brands came out with the festival offers, gifts etc. As he wanted to find out the real picture, he discussed with his colleague Mr.Narasimhan. He had good respect with Mr.Narasimhan as he is highly qualified and also a Marketing Manager in well reputed organisation. He had briefed him about the types of washing machine, Brands available in the Market, price range (Details given in the Annexure). A major thrust of the Market growth for washing machines is expected to come from the people like us (middle-class segment) and the increasing number of

working women, is giving a fillip to the sale of washing machines Narasimhan told. During the meeting only he came to know that his classmate Mr.Mahesh was the owner of retail outlet Viveks T nagar in the city, having all leading brands and delivering service for all of them. The following discussion later tells us the family members view on the short listed Washing machines Subu : Dad, since you said that you are planning to buy a washing machine for our family with the arrears. Why dont we finalize the issue, now that we all are here. Mr. Ram : Yes, why not. Ms.Seetha: We have to move very slowly on this. Its a big investment for our family. Mrs Sravani: We did zero in on three choices i.e., Godrej, LG and Samsung. Speaking for myself I will vote for LG. Mr.Ram : No, No, Always go for Godrej, a 100 year old Company!! Even the alamarah which was presented to me by my father in law is very good!!! Mr.Subu : (somewhat irritated) Oh! Why do we have to bet on old brands? Why not the Samsung?

Mr. Hari : No. I think it should be LG. Why doesnt each one of you speak out why you prefer a particular brand of washing machine. Mrs.Sravani : Well at my sister place I saw LG semi automatic washing machine which is in good condition and good service for the last 8 years. I am very satisfied with the Washing Machine, and Im sure the LG fully automatic will also give us good service. Its a proven brand in washing machines Category. Mr.Subu : But Anni, (colloquial word for SIL in Tamil) the Samsung Silver Nano is from Samsung. Samsung is one of the most reputed companies in the world. They have excellent products. Why dont we move with changing times? Godrej, was probably a good choice when there was no other brand. Today we have brands of international repute. Why dont we look at them?

Mr.Hari: Does Samsungs service network compare with Godrej? Godrej easily has the best service network in the country. You should bother about service, when you are buying a washing machine, you know. Mr.Subu: But when Godrej started, its dealer network was not as big as it is today. With time Samsung will also expand its network. Also we will be among the first few customers of Samsung Silver Nano. So they will take good care of our washing machine. What do you say anni? Mrs.Sravani: Well. I did speak to friends who recently bought the Samsung, LG and Godrej, and each one was raving about her own washing machine. I really cant make out the difference.

Mr.Subu: But anni, you do realize that Samsung is the sleekest looking, dont you? Some of my friends houses have it, and it looks so good in appearance in their Living Areaclose to one of the bed rooms. Mr.Hari: If you are talking about Looks, there is nothing to beat the LG . It is the sleekest one. Mrs.Sravani : Ok, both the washing machines are great looking, but we need more than that. Are they worth the cost? Mr.Subu : Anni, the Godrej costs the same as the LG and in fact, cheaper than the Samsung. Apart from that, three of my friends own Samsung, and it has not given them any trouble at all. They all are very happy with their choice. Mr.Sravani: Its not like buying clothes, aping the latest fashion. This is a long-term purchase and something we need to think through. Mr. Ram: I really dont think your friends would know the difference between a good and bad washing machine, as long as looks gel with them. So what other reasons do you have apart from the fact that you want to be seen in a Godrej? Mr.Subu : Lets talk about the Best WM, Samsung Silver Nano. Its such gives a powerful Wash! Complete Fresh Clothes every time. Feels like youre actually wearing new clothes every time. Mr.Ram: We need to have reliable source of information. Godrej has the reputation of providing trouble free service for

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years, and my friends in the morning walk will vouch for that. Mr.Subu : But dad dont you remember Samsung at your friend place? We should buy a washing machine according our new status. Mr.Hari : What makes you think that the LG is lower on status as compared to the Godrej or Samsung? LG washing machines dont have belt and Pulley. Hence Less Noise, Energy savings and durability is more when compared any other washing machine. By eliminating its belt and pulley, LGs Inverter Direct Drive System increases the motors efficiency - thus cutting back on energy use - and makes it less susceptible to breakdowns. The simplified system helps reduce noise levels as well But dad, why, why the Godrej? With so many new options and so much action elsewhere? Mr.Subu : Brother, why dont you look at the Samsung . Mrs.Sravani : Lets look at the Technology. Look, I think we need facts. Why dont all of you get the relevant information, and let us discuss it then? Mr.Subu : Ok. Give me a few days and Ill ask my friends everything. (Annexure )

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The discussion ends here. At the dinner table 4 days later, this topic is broached again. Ms.Reena (Sravani sister) : here conversation should be based on various parameters and technology) review the papers given by me.. ( Annexure I & II ). : Exactly, my friends told me the same thing. : Also, last year LG had the largest volume of sales, followed by Samsung & Godrej stood third. Please check the sales figures. Mrs.Sravani: I saw demonstration at a Home life Exhibition, I have ever experienced, much better than the . : Yes, better than the LG, but theres not much difference as compared to the Samsung. Also, the LG is easier to operate. Dont tell me the Samsung was easy to handle. Just see the demonstration of Samsung and you will know the difference. I have heard that these two washing machines do have a better wash, silent, easier to operate, and excellent after sales service, especially in crowded cities like HYD/Mumbai. Mr.Hari: You all are just giving reasons to validate your individual preferences. We need to look at what the family should buy. Mrs.Sravani: Even from the family viewpoint, the LG is better than the Samsung. Samsung comes second and the Godrej comes third here as well.

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Mr. Subu : Lets us go & visit the show room on Saturday . Mrs.Sravani : Ya definitely !! Shall we all got to Viveks show room near our place on Saturday !! As we know Mr.Mahesh in Viveks .. Yes of course

Mr.Hari

Mr.Subu Lets us go and visit the showroom on saturday Mrs.Sravani Ya definitely !! Shall we all got to Viveks show room near our place on Saturday !! As we know Mr.Mahesh in Viveks .. Mr.Hari Yes of course Saturday Morning : Mrs. Mr. V can we go to Vivek show room will you be able to Sravani come. Mr.Hari Sure we shall go after lunch . Can we call Mr. BIL also . Mrs. Yes for sure !! Sravani Mrs. Mr.BIL !! Can u come to Viveks today afternoon will you Sravani be free !! We shall go and look into the Models .. so that we have an idea . BIL No anni ! Me bit busy today ! Please excuse me !! Mrs. OK !! Sravani Dealer Point : Salesman A very Good afternoon !! Sir! I am Sathish Welcome Sir & Madam !! What are looking for ? How can I help you ?

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Mrs. We are planning to look at Washing Machines !! Sravani Can I meet Mr.Mahesh . Mr.Sathish Mam Mr.Mahesh is not available right now .. Please do come !! How many people in your home ? What is the capacity of the machine you are looking for & budget ? Are you looking for fully automatic / semi automatic ? Mrs. Well are 6 members in our family & the budget is not a Sravani constraint ..Fully automatic Mr.Sathish Here is the latest model in Whirlpool Fully automatic , large capacity( this capacity suits your family ) , stain washer , 6 th sense , you can choose colours also ( silver , red , white ) .You are looking for top loaded or front loaded / fully automatic / semi automatic ?? Mrs. We are looking for top loaded washing machine & Fully Sravani automatic Mr.Sathish Here is the another model in IFB it has water saver device , Eco wash , silk saree program , it is fast moving also . Mrs. Dont you have LG ! Sravani Mr.Sathish Well !! We have LG & Videocon !! Mrs. Can we look at LG washing machines . .. Sravani Mr.Sathish Mam !! but Whirlpool is fast moving mam !! Please look at this model which I showed you now , it has technology 1-2-3 control Panel Steel basket 6th Sense 9 wash programs Special Cycles Favourite Program, User friendly & easy to use .

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Mr.Hari

So we could like to see LG washing machine

Mr.Sathish Sure sir !! This LG 6 kg is a top loading fully automatic washing machine with : prewash (soak), normal wash, delicate wash and hot wash wash load sensor, child lock. Mrs. Sravani What about colours ? some more features Please show us the latest models & we are looking for Silver color .. Mr.Sathish Sure mam !! Here we have LG 8 kgs model .. Features are 8Kg Direct Drive Washing Machine LED Control Panel Load detection Direct drive motor.

Medic care, baby care Intelligent Washing System -

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Mr.Hari Oh fine ! what is that Intelligent washing machine Mr.Sathish Well that is Once the start button is pressed, sensors detect the load and the selected water temperature to optimise water level and cycle time according to the size and type of load. It also prevents users from selecting excessive spin speeds and temperatures over the appropriate range, which can result in damage to clothes. The intelligent washing system detects and adjusts imbalances and excessive suds during operation for the best washing performance. Mrs. Sravani Mr.Sathish Mrs. Sravani Mr.Sathish Well fine !! tel me how much it cost ? It is 10,000 rupees actual price , If your finalising we shall discuss about the price later. Well some other model This LG WF-T1103TEE3 11 kg is a top loading fully automatic washing machine with pulsator wash has 4 preset programmes. This machine allows prewash (soak), heavy wash, normal wash, delicate wash and hot wash. It also has additional features like wash load sensor, automatic drainage, auto restart and child lock. It has transparent washtub window. It has special programmes like extra cleaning, tub clean, silent and favourite. It has advanced I sensor and also has air dry function. It also has smart clean feature makes clothes residue and detergent free. It is available in dark red

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colour. Mrs. Sravani Oh good !! Well Mr.V what to do think of this machine . I liked it we can go for this model . Mr. Hari Hmmmm.. Fine ( to the dealer ) Tell me the price and other discount if any ? IS there silver color available ? Mr.Sathish Well it cost around .. Rs. 28, 100 currently we dont have any discount mam .. Let me speak to the manager and tell you .. Please be seated here .. No Mam ! We dont have silver color only one color is there http://www.priyaretail.com/Products/Home-Appliances-Accessories-Home-Appliances-WashingMachines/LG/LG-WF-T1103TEE3/pid-462117.aspx Mrs.Sravani Well I think we can go for it what do you think Mr.V .. to Mr.Hari Mr.Hari See we have now ready cash of Rs. 10,000 . I think for the rest of the amount we can go for loan .. Mr.Sathish Yes sir we can help you in getting loan from our Private finance , like : A Capital B Capital C Loans

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( Mean while Mr. Mahesh is entering ) Mr.Mahesh Hello Sir ! Mr.Hari Thank God ! You recognised us . We have come here to buy washing machine . We have zerodown LG . Kindly let us know 1. How is the service ? 2. What is the best price you can give us ? 3. If you want to purchase a washing machine , whether you will prefer this model. Mr. Mahesh Sure Sir ! I have LG washing machine only at home . Mr.Sathish Oh fine you met Mr. Mahesh . (Comes in between ) Mr.Mahesh Well Satish ! He is my friend Mr.V . Give him the best price ! Mr.Sathish Well Sir ! Right now we dont have any discount available but we can give you good home appliance has a gift. Well ! the actual price is Rs. 29,000 , but we will give you the best price of Rs. 28,000 . Mr.Hari Well can we avail loan ! Mr. Sathish Sure ! we have our Financier her : We have 3 banks which provides loans .They are : 1. A Capital 2. B Capital 3. C loans Please come here I shall take you there .. Come this way .. Right now we have only B Capital . Well Would you like to have some coffee or drinks .. Mr.Hari Well !! Thanks .. Can we talk to them. Mr. Sathish Yes sir !

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Mr. Sathish Well Mr. B Can you spare there time , as they want to ( to the B avail loan ! Please provide them some details regarding captial ) the loan. They want to buy washing machines LG fully automatic price :Rs. 28,000. Mr.Hari to Well I am happy with the scheme provided by B Mrs. Sravani Capital !! What do you think !! We shall go for B capital as it perfectly suits our plan . Well we have ready cash of Rs.10,000 . What will be the monthly EMI for Rs. 18,000. Can you provide us with the following details : 1. Salary slip 2. Residential proof 3. Pan card 4. Post dated cheque . 5. 2 Photos We will be able to pay Rs.500 per month. Tell us duration for EMI ?

Mr.Hari to Mr. B Mr.B

Mr.Hari

Mr. B Yes sure ! You can avail for 40 months . Please give us ( Meanwhile 12 Post dated cheque as of now. calculating ) Mr.B Well fine Sir !! Please fill up the formalities .. Mr.Hari & ( together they are filling the application And submit the Mrs.Sravani form )

Mr.B

Please wait Sir !! We shall give you acknowledgement & other details

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Mr.Hari & Well Sir !! Tell us the when you shall deliver the washing Mrs.Sravani machine . Mr.Sathish Monday morning around 11 a.m .( as tomorrow is Sunday & it is a holiday for us ) This is the bill you can here in the cash counter . Well come and see the gifts available here .. Mr.Hari & Seeing the gifts ! Mr.V Tell we have scratch card .. you Mrs.Sravani can pick the scratch card & select your gift . Mrs.Sravani Hey it is Iron Box that too it is Philips brand ..` Mr.Hari Meanwhile Mr. V !! Pays the bill Mr.Hari to Well can you deliver them on Monday evening 5.30 so Mr. Sathish that we will be available. Mrs.Sravani We shall see whether we can keep our washing machine & Mr.Hari in our room or in other room ( on the way to home )s Mrs. Sravani We shall keep it our common rest room near our dinning hall . ( On Monday morning all of them were waiting for the delivery of washing machine. Well around 12 p.m the washing machine was delivered . )

(Two months after the purchase of the washing machine) Mr.Hari: How is the washing machine dear! Any problems? Mrs.Sravani: Dont you think it is too early to have problems.

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BIL: You know what! I sometimes wonder if we should have bought the Samsung It was cheaper. It would have saved us few thousand. Mrs.Sravani : If price is the only thing that mattered we would have bought the Godrej. Mr.Hari: Think of the bright side. We got latest Technology , the noise less , the style, the stainless steel drum and everything else we wanted. Does a difference of two and odd thousands matter when we are going to use the washing machine at least for the next 5 years? As you said Mom, shouldnt we think long term? And dad, just think of it, you are wearing new clothes everyday even after your retirement. FIL: That is ok (laughs). Mrs.Sravani: It is ok for me if it is ok with Mr V, Mr. BIL and MIL

Questions:

Examine 1) buying roles 2) Stages in Buying process 3) Which of the four types of buying behavior does Washing machine buying exhibit and Why? 4) What are the implications of this behavior to a marketer.

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ANNEXURE I ( Mr.BIL Document ) As per the sales details last year(2010) LG has top the list , Please see the statistical details here : LG Electronics (LG) achieved the best sales figures in volume and value for washing machines in 2010, according to survey data from market research companies. This marks the third years in a row that LG has won this designation, which cover more than 50 countries, and further strengthens the companys reputation as one of the worlds most innovative home appliance manufacturers. The data also revealed that LG has been the top-selling washing machine brand for five years in major Asian countries including key markets such as Australia, India, Thailand and Indonesia and in a host of other countries, such as Chile, Saudi Arabia and the Ukraine. In addition, LGs front-loading washing machines have been the bestselling front loaders in the world for the last two years, and the top sellers in the United States for the last four. LG washing machines are increasingly known as some of the most innovative on the market, with their smart tech, great performance and high convenience all proving a big hit with consumers, said Young-ha Lee, President and CEO of LG Electronics Home Appliance Company.

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ANNEXURE - II TYPES OF WASHING MACHINE: There are two types of Washing machines 1. Semi-automatic 2. Fully automatic Semi automatic washing machines wash (soak, wash and rinse)

through a non-continuous process and require manual interferences. Now days, Single tub semi automatic washing machine is vastly replacing the two tubs semi automatic washing machines. The washing and drying action are performed in a sequence in the same tub. The process has to be controlled manually. Semi washing machine market constitutes the major portion of the washing machine market, accounting for around 81% of the total market. In Fully automatic washing machines, each stage of the wash cycle is carried out automatically, based on the wash combination selected. This in turn, machines have the fuzzy logic technology, which senses the type of fabric and the dirt content on the clothes and adjusts the intensity of the washing action accordingly. But, fully automatic

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washing machines require a continuous stream of water supply. Hot wash facility, wash combinations depending upon types of clothes, inlet arrangements for fabric softeners are all the additional features available in a fully automatic washing machine. Front load washing machine is one of the types fully automatic washing machine. These machines use less water and energy compared with top loading machines. Water saving is to the extent of 30-50% while the energy saving is to the extent of 50-70%. Its major limitations are Higher Price, Difficult to move due to Heavy weight . ANNEXURE III

CHART showing the Market share of Semi automatic Washing Machine Market

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Source: The Economic Times-Mumbai,

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. ANNEXURE - IV Table Showing the Pricelist of Semi automatic Washing machines

Brands GODREJ(GWS6201) LG (WP95174) SAMSUNG(WT8204EG) WHIRLPOOL (SPIN 601) ONIDA (HYDROFALL 65) PANASONIC (NAW70B1)

Prices (in Rs.) Rs 5702 /Rs 7482 /Rs 6700 /Rs 7600 /Rs 6100 /Rs 8890 /-

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