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A Study On Factors Affecting Consumer Purchase Decision of Water Purifier

This document summarizes a study on factors affecting consumer purchase decisions of water purifiers in India. It finds that while access to drinking water has improved in India, water-related diseases are still widespread due to unsafe water. The study examines consumer awareness and behaviors influencing Indian consumers' decisions to purchase water purifiers. It analyzes data from a survey of 100 consumers in Bhubaneswar, India regarding their knowledge and use of water purifiers. The major factors found to impact purchase decisions include health concerns, brand awareness, and price.

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0% found this document useful (0 votes)
128 views4 pages

A Study On Factors Affecting Consumer Purchase Decision of Water Purifier

This document summarizes a study on factors affecting consumer purchase decisions of water purifiers in India. It finds that while access to drinking water has improved in India, water-related diseases are still widespread due to unsafe water. The study examines consumer awareness and behaviors influencing Indian consumers' decisions to purchase water purifiers. It analyzes data from a survey of 100 consumers in Bhubaneswar, India regarding their knowledge and use of water purifiers. The major factors found to impact purchase decisions include health concerns, brand awareness, and price.

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We take content rights seriously. If you suspect this is your content, claim it here.
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ISSN : 2230-9519 (Online) | ISSN : 2231-2463 (Print) IJMBS Vol.

3, Issue 2, April - June 2013

A Study on Factors Affecting Consumer Purchase


Decision of Water Purifier
Nilima Das
Trident Academy of Technology (Affiliated to AICTE), Bhubaneswar, Odisha, India

Abstract II. Water Purifier Industry in India at a Glance


In India nearly 80% people die due to water related diseases. Both Water purifier segment in India is growing at a compounded annual
urban and rural areas in India are suffering from scarcity of clean growth rate (CAGR) of about 25 per cent and is likely to touch
water for domestic use. Although access to drinking water has Rs 7,000 crore by 2015 from the current level of about Rs 3,200
improved, the World Bank estimates that 21% of communicable crore. According to a new study titled, “Water-Purifier Industry
diseases in India are related to unsafe water. Diarrhoea, cholera, in India: An Overview”, the sales of water purifiers across India
malaria etc water related diseases are mostly found in India and are likely to cross 1.5 crore units by 2015 from the current level
due to these diseases approximately 1,600people from 7,00,000 of over 78 lakh units. Growing at about eight per cent annually,
Indians estimated in 1999 died each day. Consumer behavior in the global water purifier industry is currently poised at about Rs
India is always unexpected and dynamic. This study is all about 4.96 lakh crore and is likely to reach Rs 6.25 lakh crore by 2015.
consumer behavior, and the factors that motivate them to purchase According to the report titled ‘India Water Purifier Market Forecast
water purifier for their own health. This study is conducted in an & Opportunities, 2017’ the water purifier market in India has
urban area named Bhubaneswar, capital city of Odisha. I have shown tremendous growth opportunities in last couple of years.
taken 100 sample and tried to find out how much customers It is forecasted that the water purifier market in India will witness
are aware about water purifiers while purchasing and using it. compounded annual growth rate of 25% till 2017 to make it a
This research is based on both primary data and secondary data. whooping USD 760 Million market by 2015.
Samples are randomly selected. All the samples include user and There are three types of water purifiers marketed in India - the
nonuser of water purifier. In order to analyze the data, descriptive ultra-violet, reverse osmosis (RO) and resin- based one. RO-based
statistics were employed. purifiers are the most expensive - priced at Rs 13,000 and above,
while UV-based purifiers are priced between Rs 5,000 and Rs
Keywords 9,000. Non Electric water purifiers are more affordable at Rs
Consumer Behavior, Consumer Awareness, Reverse Osmosis, 1,500 onwards.
Water Purification The offline water purifier segment will account for 38% (2011:
20%) of the total market space in 2016. The growth of the offline
I. Introduction segment will primarily be attributed to low pricing (i.e. US$19
Water is the most essential element in human life without which per unit) enhanced penetration across rural population and
existence of life is not possible. Water is the resource that covers households.
almost 3-quarters of the planet, and upon which all life depends.
In the history of natural world, water sources have been the centers Table 1: India’s major players in water purifier industry
of life, providing habitat and sustenance for animals and plants . Company Name Brand Name
alike. Although 78% of earth is occupied with water, the amount
1. Tata Chemicals Ltd. Tata Swach
fit for consumption of daily life is very less. In today’s world of
globalization and industrialization, the pollution of water is a very 2. Hindustan Unilever Ltd. Pureit
dangerous aspect affecting the mankind. So, after many years of Usha shriram enterprises
scientific research, many institutions came with an innovation called 3. pvt ltd and BRITA USHA BRITA
water purifiers. Water purifier’s usage is rapidly increasing in big GmbH
cities, towns, educational institutions, hospitals, heavy industries 4. Philips Uv water purifier
etc. So to conduct a research on the usage and effect of branded Ion Exchange (India)
water purifiers is inevitable, as frequent assessment is a much- 5. Zero B
Ltd.
needed thing for more innovations and invention. The concept Plantinum, Minerala 85
involves four categories including safety, choice, information, 6. Whirlpool of India Ltd.
etc.
and the right to be heard. Consumer awareness, which refers to 7. Eureka Forbes Ltd. Aquaguard
a buyer’s knowledge of a particular product or company, allows
8. Kent RO systems Ltd. Kent
the buyer to get the most from what he buys. Consumers know
more about their choices when they have product information Aqua Naturale, Zerobac,
9. Bajaj
and benefit from knowing their rights, hearing about alerts and Aqua Silver etc.
warnings and finding out about safety issues. To make a decision, 10. Godrej Water fresh etc.
the needs of an individual have to be met. As mentioned, for this
discussion, the individual will be the consumer with the need for a III. Objective of this Paper
product. In the normative model of decision making, the customer • To analyze theoretical aspect of consumer behavior.
collects information about alternatives, evaluates them based on • Find out people awareness about water-related diseases.
their features and makes a decision that will maximize the value • Find out customers awareness regarding use of water
of that decision.(Lau, 1995; Abelson & Levi, 1985) purifier.
• To find out factors which affect consumer perception regarding
water purifier.

w w w. i j m b s. c o m International Journal of Management & Business Studies  59


IJMBS Vol. 3, Issue 2, April - June 2013 ISSN : 2230-9519 (Online) | ISSN : 2231-2463 (Print)

IV. Literature Review as a continuum (from low to high), it is useful to consider two
The concept of “consumer buying process” is of prime importance extreme cases here. Suppose one buys a certain brand of product
in marketing and has evolved over the recent years. It is important as a matter of habit .
to understand consumer buying behavior as it plays a vital role in
creating an impact on purchase of products. The human wants are V. Consumer Buying Behavior
unlimited and always expect more and more towards the models & Purchasing behavior is determined by the level of involvement in
its features. In today’s world we see new models coming into the purchase behavior. The four type of consumer buying behavior
market practically in every quarter. The market is a very important are:
place to study the behavior of consumers and also provide useful
insights what a consumer requires in a product. It is only through A. Routine Response/Programmed Behavior
research that a company will be able to study the buying behavior Buying involves low involvement, frequently purchased low cost
of consumers. items; need very little search and decision effort; can be purchased
In this model, the consumer passes through five stages: problem almost automatically. Examples include soft drinks, snack foods,
recognition, information search, evaluation and selection milk etc.
of alternatives, decision implementation, and post-purchase
evaluation. B. Limited Decision Making
Is applied to buying product occasionally. When customer needs
A. Problem Recognition to obtain information about an unfamiliar brand in a familiar
In this information processing model, the consumer buying product category and requires a moderate amount of time for
process begins when the buyer recognizes a problem or need. In information gathering. Example include clothes- know product
other words, recognize the need to solve the problem. But how class but not the brand.
to solve?
C. Extensive Decision Making
B. Information Search When a customer requires complex high involvement, unfamiliar,
When a consumer discovers a problem, he/she is likely to search for expensive and/or infrequently bought products and high degree
more information relating to solve the problem. Through gathering of economic/performance/psychological risk. E.g. includes cars,
information, the consumer learns more about some brands that house, computers, water purifier, etc.
compete in the market, their features and characteristics. Impulse Buying- No proper purchase planning.

C. Evaluation and Selection of Alternatives Data Analysis


How does the consumer perceive the competitive brands and Table 2: A brief profile of Respondents
evaluate the value of the brands through different information Total Number of Respondent 100
is the importance of this stage Unfortunately there is no single,
Male 85
simple evaluation process applied by all consumers or by one
consumer in all buying situations. One dominant view, however, Female 15
is to see the evaluation process as being cognitively driven and Educational Qualification of
rational. Under this view, a consumer is trying to solve the problem Respondents
and ultimately satisfying his/her need. In other words, he/she will Educational qualification Number of Respondents
look for problem-solving benefits from the product. The consumer, 10th 4
then, looks for products with a certain set of attributes that deliver 12th 16
the benefits. Thus, the consumer sees each product as a bundle of Graduation 30
attributes with different levels of ability of delivering the problem
Post Graduation 40
solving benefits to satisfy his/her need. The distinctions among
the need, benefits, and attributes are very important. Above 10
Annual Family income of
D. Decision Implementation Respondents
To actually implement the purchase decision, however, a consumer Income Number of respondents
needs to select both specific items (brands) and specific outlets Up to 1 lakh 13
(where to buy) to resolve the problems. There are, in fact, three 1lakh>2lakh 20
ways these decisions can be made: 1) simultaneously; 2) item first,
2lakh>3lakh 24
outlet second; or 3) outlet first, item second. In many situations,
consumers engage in a simultaneous selection process of stores 3lakh>5lakh 20
and brands. 5lakh and above 23
Profession of respondents
E. Post-purchase Evaluation Profession Number of respondents
Post-purchase evaluation processes are directly influenced by the Govt. employees 15
type of preceding decision-making process. Directly relevant here
Pvt. Sector employees 29
is the level of purchase involvement of the consumer. Purchase
involvement is often referred to as “the level of concern for Self employed 32
or interest in the purchase” situation, and it determines how Other 24
extensively the consumer searches information in making a
purchase decision. Although purchase involvement is viewed

60 International Journal of Management & Business Studies w w w. i j m b s. c o m


ISSN : 2230-9519 (Online) | ISSN : 2231-2463 (Print) IJMBS Vol. 3, Issue 2, April - June 2013

From the above table, it is found that out of 100 sample 85 male Q5. Are you satisfied with water purifier prices?
and 15 female respondents. Respondents are qualified and more
than 50% respondents have completed their graduation. Most Analysis
of respondent’s annual family incomes are coming under 2lakh Present study shows that 50% people perceive that, their water
to 5lakh and out of 100 sample only 23 families having above purifier prices are affordable. Some of respondents agreed
5lakh annual income. Maximum numbers of families are working that somehow they have managed this price. 32% respondents
under either in private sector or self employed. Those respondents suggested the prices of water purifier have to be revised. 18%
are coming under ‘Other’ category are include professionals like respondents agreed to the prices of water purifier to be high.
Doctor, Engineer etc.
Q6. Have you recently come across any kind of marketing
Q1. Are you aware of different water born diseases? activities for purifier?

Analysis Analysis
Odisha is a developing state and according to census 2011 odisha When customers are asked that whether they have come across
was ranked in 26th position on the basis of literacy rate. From the any kind of marketing activities, the response was 16% customer
100 sample 80% people aware about water related diseases. But have been attracted through road shows (kiosk) and 23% through
still 20% people are not aware about water related diseases. direct marketing and 61% through demonstration.

Q2. How do you treat your drinking water? Q7. Does it remove impurities caused due impurities?

Analysis Analysis
19% people are doing nothing for their drinking water. They are From the total sample size, 54% believed that their water purifier
not using any kind of water purifier for the purification of their removes impurities from water. But 25% respondents disagreed
drinking water. They are getting water from various sources like that their water purifier is able to remove impurities from water.
ground water, tanks, ponds, open wells and tube wells. 25% people 21% respondents are not aware whether their water purifier
use boiled water for their drinking purpose. 40% people are using removes impurities from water or not.
non electrical water purifier. Only 16% people are using electrical
water purifier. From the above mention figure we found most of Q8. Does your water purifier consume more
people are not taking their drinking water seriously. They simply electricity?
adopt traditional water purification method i.e purify it and then
drink it. Analysis
31% customers stated that their water purifier consumes less than
Q3. Do you agree that boiled water is not necessarily 25 watts. 8% stated that, their water purifier consumes more than
safe water? 25 watts. 61% customers are unaware about the fact that whether
their water purifier consumes electricity or not.
Analysis
Out of 100sample only 45% agree with the view that “Boiled Q9. How frequently do you change candle in your
water is not necessarily safe water”. But 55% people disagree purifier?
with the statement.
Analysis
Q3. What factor you consider most when you purchase 35% customer change their water purifier candle once in a year,
water purifier? 38% customer change water purifier candle twice in a year and
27% change their water purifier candle in more than one year.
Analysis
During purchasing water-purifiers, maximum consumer gives Q10. Do you get any type of after sales services from
priority to their health and safety. From the above figure it is found the company?
that most of the people are concerned about their family’s health
and safety before purchasing any water purifier. Analysis
Regarding after sales services of water purifier 60% respondents
Q4. What factor will motivate you to purchase water say yes, where as 40% respondent say no.
purifier?
Findings
Analysis 1. Some respondents are well aware about water born diseases
In this present study brand name motivates most customers to whereas some are not.
purchase water purifier followed by purification, then technology 2. The use of non electrical water purifiers is maximum whereas
and finally price. 35% people are motivated by brand name others prefer boiling water.
followed by 28% by purification, then 26% by technology and 3. Maximum respondents agree that only boiled water is safe
finally 11% by price. water.
4. During purchasing of water purifier maximum consumers
prefer health & safety to price.
5. Maximum respondents are motivated by brand name rather
than technology or purification or price.

w w w. i j m b s. c o m International Journal of Management & Business Studies  61


IJMBS Vol. 3, Issue 2, April - June 2013 ISSN : 2230-9519 (Online) | ISSN : 2231-2463 (Print)

6. Maximum respondents agree that water purifier prices are


affordable.
7. Demonstration is the major marketing activity for attracting
customers.
8. Maximum respondents believe that their water purifier
removes impurities.
9. Maximum respondents have no idea as to the consumption
of electricity through water purifier.
10. Maximum respondents are changing purifier candle twice
in a year.
11. Some respondents agreed that they are not getting after sales
services from their water purifier company.

Limitations
1. Research study is confided to Bhubaneswar city only.
2. Study is limited to 100 respondents of Bhubaneswar only.
3. Time constraint is one of the limitations for this research.
4. The study is solely depends upon reliability of the data and
information collected from secondary sources.
5. Difficult to get exact consumer response.
6. Other limitations includes such as financial, physical facilities
in conducting this study.

VI. Conclusion
In spite of these limitations this research provides valuable
information related to consumer behavior. The behavior of
consumers is affected by various factors like price of product,
technology, health and safety, brand name, marketing activities
as well as their own characteristics.

Reference
[1] Kotler et al.,"Consumer behavior’ and ‘A model of consumer
behavior", 2004, Chapter 7, pp. 242-244,
[2] [Online]Available: http://www.water.org/country/india/
[3] [Online]Available: http://www.onlymyhealth.com/top-
water-related-diseases-in-india-1300271205
[4] [Online]Available: http://www.indiawaterreview.in/Story/
News/indian-water-purifier-market-seen-doubling-to-rs-
7000-crore-in-2015/705/1#.UPPIdCdfHNs
[5] [Online]Available: http://www.afaqs.com/news/
story/25227_Market-Transformation:-Water-Purifiers
[6] [Online]Available: http://www.ushabrita.com/About.php

62 International Journal of Management & Business Studies w w w. i j m b s. c o m

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