SUMMER INTERNSHIP REPORT ON

Consumer buying behavior in RAC segment

Submitted to
International School of Business & Media

Under the supervision of – Submitted by -

Prof. Chiradip Bandyopadhyay Palak Raghuwanshi

Roll no- 20191066

Company Mentor – Batch – 2019-21

Ms. Kritika Rastogi Contact- 9752266344

Branch Marketing Associate (Pune) [email protected]

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 STUDENT’S DECLARATION

I hereby solemnly affirm, declare and state that organization study

conducted at “LG Electronics” was done by me with due diligence
and sincerity and this report based on that study is a bona fide
work by me and submitted to International School of Business and
Media, PUNE under the guidance and supervision of Prof.
Chiradip Bandyopadhyay, Faculty ISB&M. This is my original work
and not submitted for the award of any other degree, diploma,
fellowship or other similar title or prizes.

PLACE: Pune Signature:

DATE: 03-10-2020

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 CERTIFICATE OF COMPLETION

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 ACKNOWLEDGEMENT

I wish to convey warmest thanks to my parents, who gave endless

support and provided me with the opportunity to reach this far
with my studies.

An Organizational study is the golden opportunity for learning and

self-development. I consider myself very lucky and honored to
have so many wonderful people who lead me through completion
of this report. I express my deepest sense of gratitude to Dr.
Pramod Kumar, President, International School of Business And
Media, Pune.

It is my duty to express sincere thanks and gratitude to Prof.

Chiradip Bandyopadhyay my guide for this project from
International School of Business And Media, Pune, for
supervising me in the preparation of this report.

I express my deepest thanks to Mr. Satya Mohante (Regional

Marketing Manager), Ms. Kritika Rastogi (Branch Marketing
Associate), Ms. Akansha (Area Manager), Mr. Sahil (Area
Manager), Mr. Zeashan (Team Leader) and all the staff & team
members of LG Electronics for their endless support for giving
permission and helping me in all the way for conducting the
internship in well manner.

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 TABLE OF CONTENT
CHAPTER.NO CONTENT PAGE NO.
.
1 EXECUTIVE SUMMARY 6

2 INTRODUCTION 7-9

3 INDUSTRY PROFILE 10

4 COMPANY PROFILE 11-20

5 PRODUCT SEGMENT 21-24

6 LITERATURE RVIEW 25

7 RESEARCH METHODOLOGY 26-29

8 DATA ANALYSIS & INTERPRETATION 30-32

9 FINDINGS 33

10 SUGGESTIONS 34-35

11 LEARNING OUTCOMES 36

12 CONCLUSIONS 37

13 APPENDIX 38-40

14 REFERENCES 41

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 EXECUTIVE SUMMARY
The Indian consumer durable electronics market used to be dominated by few
domestic players like Godrej, Voltas & Kelvinator. But post liberalization many
foreign companies entered into Indian market dethroning the Indian players. The
customer has a lot of options now and their buying preferences has also changed
according to their requirements. The Room Air conditioner (RAC) segment has
many players now like Samsung, Daikin, LG , Whirlpool etc.

Consumer buying behavior in RAC segment in LG researched upon. It includes B2C

as well as B2B consumer behavior. From the commencement of the internship
that is 27th February 2020; I was on a training period for 1 week from which 3 days
we were given classroom training where they explained about RAC its
specifications, technology , kinds , models, nomenclature etc. For the remaining 4
days we were given on the job training. In the first month of my internship period
I was deployed at the store where I had to interact with customers , ask about
their requirements, and then show them the desired models that suits their
requirements. I also had to study that if they are preferring a brand other than LG
then what is it that attracts them towards that particular brand.

In the second month of my internship I was given raw data by the company also I
was given permission to generate my own leads of clients who can be the
potential customers to LG . Later I started contacting them through telephonic
calls and gave them clear insights about different Air Conditioner models by LG.
We were asked to increase our sales by interacting with customers and it was
tracked by the number of units sold.

With this project I have learned how the consumer behavior pattern works
towards RAC and also how individual organizations take their decision. This
project involves a detailed study of various consumer perception towards RAC
segment. It is then followed by market research and detailed analysis in order to
know the current most used products and concerns of the dealers and
distributors identifying the potential market for RAC and their expectation.

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 INTRODUCTION
Consumer Behavior
The study of consumer behavior is the study of how individuals make
decisions, spend their available resources (time, money, efforts) on
consumption related items. It includes the study of what they buy, why
they buy, when they buy it, where they buy it, how often they buy it ,and
how often they use it.

Customers and consumers

The term customer is typically used to refer to someone who regularly
purchases from a particular store or company. The term consumer is
more generic refers to anyone engaging in any of the activities used in our
definition of consumer behavior.

The ultimate consumer

Our primary attention directed towards the ultimate consumers, those
individuals who purchase for the purpose of individual or household
consumption. Studying ultimate consumers also reveals much about
industrial and intermediate buyers and other involved in purchasing for
business firms and institutions.

Individual Buyer

The most commonly thought of consumer situation is that of an individual

making a purchase with little or no influence for other. However, in some
case a number of people can be jointly involved in a purchase decision.

Behavior related to the purchase

Once the consumer makes the decision to purchase a product, there can
be several types of additional behavior associated with that decision. Two
activities are of primary importance :

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  Decisions on the product’s installation and use
 Decision on product or services related to the item purchased

 Decisions on product Set-Up and Use - One set of implications flow

from decision on product set-up and use. Three topics are relevant
here:
 Providing information and assistance :- If a consumer
purchases major durable product like Air conditioner from a
full service retailer. It would ordinarily require the store to
set up the product and explain its operation to user.
Manufacturers also required to asses their product literature
and make sure it is readable and understandable.

 Understanding the user’s consumption system :- Even more

fundamental than the provision of information to customers
is the marketer’s first understanding how his product is used
by consumer and how this product fits into the consumer’s
consumption system.

 Decision about warranties :- A related factor concerning

product setup and use has to do with product or service
warranty, which is promised by the manufacturer or seller
that the product or service is free from defects in materials
and workmanship and that problems will be corrected if
failure occurs during the warranty period . An effective
warranty can offer several consumer benefits.

 Decision on product or services – The second factor for marketer to

consider with regard to post purchase activities concerns buyers
interests in related products and services. This is another area of

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 potential profit that should be actively cultivated. Because buyers
may become interested in related items, they need to be made
aware about the potential products that exist. Thus, literature
enclosed with a product could present other products in the line.
The marketer’s task is to determine what product mix is most
appropriate to the firm. This is largely a function of applying the
marketing concept to identify the products that may be related in
nature and can be effectively marketed.

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 INDUSTRY PROFILE
The Consumer Durable industry consists of durable goods and
appliances for domestic use such as televisions, refrigerators, air
conditioners and washing machines. Instruments such as kitchen
appliances (microwave ovens, grinders etc.) are also included in this
category. This industry includes all those goods which are durable i.e.
products whose life expectancy is at least 3 years. These products are
hard goods that cannot be used up at once. According to recent
industry reports, the steadily growing market for consumer durables is
estimated at Rs. 300 billion. Segmentation of Consumer Durables
Industry: The consumer durables industry can be broadly classified into
2 segments: Consumer Electronics and Consumer Appliances .
Consumer Appliances can be further categorized into Brown Goods
( Microwave, kitchen appliances) and White Goods(RAC, Refrigerator).

India’s consumer market is riding the crest of the country’s economic

growth. Driven by a young population with access to disposable
incomes and easy finance options . There are five classes of consumer
households, ranging from the destitute to the highly affluent, which
differ considerably in their consumption behavior and ownership
patterns across various categories of goods. These classes exist in
urban as well as rural households both, and consumption trends may
differ significantly between similar income households in urban and
rural areas.

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 COMPANY PROFILE

LG ELECTRONICS INC. is a Korea-based company principally engaged in the

manufacturing and sale of electronic products. Along with its subsidiaries,
the Company operates its business through seven segments. The Home
Appliance and Air Solution (H&A) segment provides refrigerators, washing
machines, air conditioners, microwave ovens, cleaners and others. The
Home Entertainment (HE) segment supplies televisions (TVs), monitors,
personal computers (PCs), audios and videos. The Mobile Communication
(MC) segment offers mobile terminal equipment. The LG Innotek Co., Ltd.
(Innotek) and Its Subsidiaries segment offers light-emitting diode (LED),
board materials and others. The Vehicle Component (VC) segment
provides automobile parts. The Business-to-Business (B2B) segment
produces information displays, solar modules, among others. The Other
segment involves in the water treatment, equipment manufacture
business.

Company History

Created in 1947 as “Lucky-Goldstar”, it assumed the abbreviated name of

“LG” in 1995. LG is also an abbreviation of “Lucky Geumseong” in South
Korea, which is translated into English as Lucky Goldstar. Before then,
many electronic products were sold under the brand name Goldstar,
while some other household products (not available outside South Korea)
were sold under the brand name of “Lucky.” The Lucky brand was famous
for producing household cleaning products and laundry detergents in
South Korea.

The history of LG Electronics has always been surrounded by the

company’s desire to create a happier, better life. LG Electronics was
established in 1958 and has since led the way into the advanced digital
era thanks to the technological expertise acquired by manufacturing many

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home appliances such as radios and TVs. LG Electronics has unveiled many
new products, applied new technologies in the form of mobile devices
and digital TVs in the 21st century and continues to reinforce its status as
a global company.

Top Management

Brian Kwon

(Chief Executive Officer)

Dan Song

(President of Home Appliances )

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 Kwon Soon Hwang

(President of Business Solutions)

Kim Jin Yong

(President of Vehicle Component)

Park Hyoung-sei

(President of Home Entertainment)

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 Morris Lee
(President of Mobile Communications)

Bae Doo-yong
(Chief Financial Officer)

Mission Statement

“We wish to maintain our hard-earned reputation for bringing

added value to the lives of consumers.”

Vision Statement

“LG's vision is to become the market leading company with broad

market recognition.”

Values

Core Values Open Communication. Controlling current self-pride,

communicating with speed & accuracy based on respect for others
through modesty, attentive listening/consideration, and open minded
thinking/behavior. Proactive Collaboration, Change and Leap.

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Compliance of Conduct

LG Electronics is committed to "winning by the rules". They regard sound

and transparent management practices as the foundation to achieving
individual success and global competitiveness. Throughout our global
operations, LG Electronics pledges to comply with local laws and
regulations, compete fairly, and uphold the highest standards of business
conduct. The LG Electronics Compliance Code of Conduct sets forth clear
standards for legal and regulatory compliance all employees should live by
in order to realize the principles provided in the LG Code of Ethics.

Code of Ethics

It is the intention of LG, as set forth in the management charter, to spread

the management philosophies of "creating value for customers" and
"respect based management" allowing for more responsible and open
management. LG continues to develop as the global leading company
through seeking greater public benefits founded in cooperation, mutual
trust, and respect for the free market economy. For this reason all LG
employees promise to act uprightly and make value judgments in
accordance with the code of ethics.

Products

Business areas and main products

Mobile communications

 CDMA Handsets,
 GSM Handsets,

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  3G Handsets,
 Cellular Phones

Digital appliance

 Air Conditioners,
 Refrigerators,
 Microwave Ovens,
 Washing Machines,
 Vacuum Cleaners,
 Home Net,
 Compressors for Air Conditioners and Refrigerators

Digital display

 Plasma TVs,
 LCD TVs,
 Micro Display Panel TVs,
 Monitors,
 PDP Modules,
 OLED Panels,
 USB Memory,
 Flat Panel Computer Monitors

Digital media

 Home Theater Systems,

 DVD Recorders,
 Super Multi DVD Rewriters,
 CD±RW,
 Notebook PCs,
 Desktop PCs,
 PDAs,
 PDA Phones,
 MP3 Players,

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  New Karaoke Systems,
 Car Infotainment

Slogan

"Life's Good" represents LG's determination to provide delightfully smart

products that will make your life good.

The LG Electronics Life's Good signature consists of the LG logo, seal, and
the slogan, "Life's Good" set in Charlotte sans typeface curved around the
LG symbol. The curving of the slogan reinforces LG's personality and
uniqueness. The consistent usage of this signature clearly establishes the
unique identity of the company and unifies every division and product
from LG Electronics across the globe.

Symbol

The symbol of LG is the face of future. The letter “L” and “G” in a circle
symbolizes world, future, youth, humanity & technology. LG philosophy is
based on humanity. It also represents LG’s efforts to keep close
relationship with our customers around the world.

The symbol consists of two elements.

1. The logo in LG gray

2. The stylized image of human face in the unique LG red color.

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 Red color represents our friendliness and gives a strong impression of
LG’s commitment to deliver the best. The circle symbolizes The Globe.
The stylized image of a smiling face in the symbol conveys “Friendliness
and Approachability”. The one eye on the symbol represents “Goal-
oriented, Focused & Confident”. The slogan of LG is “Life’s Good”. It
expresses “Brand’s Value, Promises, Benefits, Personality.

Organizational Structure

LGEIL Management Structure and duties related to them are following:

MD (Managing Director) is responsible for all activities running by LGEIL.

VP (Vice President) is responsible for all activities related to Human
Resource & Management Structure.
Factory Head is responsible for activities related to Production
HOD (Head of Department) supervises the activities of LGEIL across India.
PGH (Product Group Head) supervise activities related to a particular
product.

Name Department Designation Email ID's

K R Kim   MD, LGEIL  

Y V Verma HR & MS VP [email protected]

Sanjay Arora Production Factory Head [email protected]

S N Rai Logistics & Commercial HOD [email protected]

Girish V Rao Sales HOD [email protected]

Amit Gupta Sales Planning & Administration HOD [email protected]

Salil Kapoor Marketing HOD [email protected]

Arindham Bose IT Products HOD [email protected]

S N Ajmera Finance HOD [email protected]

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P K Gupta Account HOD [email protected]

Ashish Aggarwal Corporate Planning HOD [email protected]

Abhay Sood Management Audit & Support Team Head [email protected]

R Manikandan IT Products PGH [email protected]

Anil Arora Refrigerators PGH [email protected]

Chetan Bajpai Commercial Air Conditioners PGH [email protected]

C M Singh Consumer Electronics & GSM PGH [email protected]

Dhananjay Chaturvedi Institutional Sales PGH [email protected]

Prasanna Raghwan PDP's & Home Entertainment PGH [email protected]

Praveen Velecha GSM PGH [email protected]

Rajeev Jain Washing Machine PGH [email protected]

Ajay Bajaj AC's PGH [email protected]

Saurabh Baisakhiya MWO & VC PGH [email protected]

Internal Culture

LG practices four cultures

 Learning Culture
 Boundary less Environment
 A Carrier
 Growth

According to LG, the Learning Culture continuously helps the employee to

learn more and more to develop the habit of continuous learning.
Boundary less Environment means that there is no difference between
the levels of employees. There is transparency between the work and
mutual understanding between all the employees. A carrier is highly
growing in LG and one who is the employee can develop their carrier
largely. A new comer will feel fully comfortable in the company and for a

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new comer the company is very helpful in the overall growth of
personality. 19 Growth in LG is very high for those who are in the
company and for those who want to join in LG. The company is growing
with fast innovation and the BLUE Ocean strategy is one of the examples
of growth.

                                                                                                                                                                            

PRODUCT SEGMENT

LG Electronics was one of the first companies who recognized the emerging
change in consumer needs and decided to differentiate their products on the
basis of technology which appealed to the consumer on the basis of health
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benefits. Its vision was to become a 'Health Partner' for its consumers worldwide
and therefore formulated its corporate philosophy to make peoples' lives better,
convenient and healthier The entire range of LG air-conditioners have 'Health Air
System', which not just cools, but keeps pollution out.

LG Electronics India is the fastest growing company in the consumer

electronics, home appliances and computer peripherals industry today. LG
Electronics is continually providing superior technology products & value for
money to over 50 lakh households in India.

AIR CONDITIONERS

LG’s Air Conditioners are feature packed for unmatched performance. Each
model being styled with internationally designed grills and sleeks body contours.
All power packed with state-of-art features. Just to ensure that everyone in the
house stays healthy and active.

Air Conditioners are divided into three categories.

COMMERCIAL AIR CONDITIONERS

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Ceiling Cassette

Features

This is a high aesthetic value machine and is mounted

flush with the ceiling, exposing only 30 mm grills. The
4 Way air Distribution patterns make it ideal for
commercial uses like showrooms, malls, restaurants,
corporate board rooms as well as domestic
applications like large living rooms.

Floor Mounted Package

Features

These are Floor Mounted Package Units. These are ideal for
offices, factories, shopping malls, multiplexes, hotels etc. The
special feature of the machine is, having low noise level and
high EER because of scroll compressors.

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LARGE AIR CONDITIONING SOLUTION

Single Packaged (Roof Top)

Features

These are Self contained Unitary Systems which are

mounted on the roof or outside the area required to
be conditioned. These are ideal for Single Storey and
Double Storey structures due to the high static
available Applications range from factories, shopping
malls, multiplexes, hotels etc.

Variable Refrigerant Flow System (Multi V):

Features

A Variable Refrigerant Flow (VRF) system is a Vapor

Compression System with Inverter compressor, where,
the compressor motor speed is varied-- to meet the
required room load.

ROOM AIR CONDITIONERS

Room Air Conditioners divided into Four Categories. They are used for residential purpose , hospitality,

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 LITERATURE REVIEW
In the general sense, the most important reason for studying consumer
behavior is the significant role it plays in our lives. Much of our time is
spent directly in the market place, shopping or engaging in other
activities. A large amount of additional time is spent thinking about the
product and services, talking to friends about them and seeing or hearing
advertisements about them. In addition the goods we purchase and the
manner in which we use them significantly influence how we live our daily
lives. Consumers are often studied because certain decisions are

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significantly affected by their behavior or expected actions. For this
reason consumer behavior is said to be an applied discipline. Such
applications exist at two levels:

 Micro Perspective – Involves understanding consumers for

the purpose of helping a firm or organization accomplish its
objectives.
 Macro Perspective – We know that consumer collectively
influence economic and social conditions within an entire
society.

To understanding consumer satisfaction about LG RAC segment and also

know about the consumer opinion about online shopping I choose this
topic as my project. I try to cover all aspects related to consumer
satisfaction before purchase and after purchase of the product. It
provides insight into aggregate economic and social trends and can
perhaps even predict such trends. In addition, this understanding may
suggest ways to increase the efficiency of the market system of LG
products and improve the well-being of people in society.

RESEARCH METHODOLOGY
The purpose of the methodology is to describe the research procedure.
The methodology will reveal why a particular design is being used for
conducting research.

Research Objectives :-

 To understand the factors that affect consumer buying decision.

 To know consumer expectations and satisfaction level.

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 To understand how different services by LG affect the buying decision of the
consumers.

 To know consumer’s view on product quality, performance, delivery,

salesperson, after sale service etc.

 Find out the problem faced by the dealer in sales and the distribution.

 While purchasing the LG AC which parameter is most important for the

consumer?

 To enhances the knowledge of consumer durable market.

How to achieve these objectives?

 Selecting the right research design.

 Unbiased data collection and interpretation.
 Proper study and analysis of data.
 Adopting right set of questions relevant to study while preparing for
primary data collection.
 Making use of recent data for secondary data research.

Research Design :

A research design is the specification of method and procedures for

acquiring the information needed. It is the over-all operational pattern or
framework of the project that stipulates what information is to be
collected from which source by what procedures. Research design
denotes the description of the research design. The aim was to collect
relevant information which fulfills our requirement and can be analyzed at

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a later stage of study without any problem. This was to be done in
minimum expenditure with least efforts and in a set period of time. For
my project I select ‘DESCRIPTIVE RESEARCH DESIGN’ to know consumer
satisfaction about LG RAC. This help in having enough provision for
protection against basis and maximizes reliability.

DESCRIPTIVE RESEARCH:

Descriptive study as its name implies is designed to describe something –

for example, the characteristics of the users of a given product, the
degree to which product use varies with income, age, or other
characteristics, or the number who bought a specific air conditioner.

Advantages of Descriptive Study

 Involve relatively large number of observation

 Analysis is more objective
 Averages and percentages are calculated

Data Collection Method

The methodology reveals the methods of data collection. There may be

primary sources and secondary sources of data collection.

 Secondary data collection :- After deciding the objectives I looked

for collecting and studying secondary data. It included extensive
study of literature available in Annual reports of LG Electronics,
articles, newspapers , journals, magazines, handouts, pamphlets
describing the company and its products. Studying of secondary
data gave the insight into the problem in hand. It also provided with
clues and helped in designing primary research. It provided a more
accurate picture about the functioning of LG Electronics.

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  Collecting primary data :- The objective of primary data is
formulated on the basis of research objectives. Objectives set the
guidelines and directions of research planning. Formulating the
objectives offers the best feasible means of solution. The primary
data for my study was being collected by conducting survey. The
tools for data collection used was following types :

Telephonic Interview
The telephonic interview is used in lieu of personal interviews. It is
used because information has to be collected quickly and
inexpensively. By it I asked the consumer about their satisfaction
about LG Air Conditioners. The direct and structured questions
asked from the consumers.

Questionnaires
This method of data collection is quite popular, particularly in case
of big enquiries. A questionnaire is a method of obtaining specific
information about a defined problem so that data, after analysis
and interpretation, results in a better appreciation of the problem.

In order to motivate respondents and to get best of the information

from them, it was tried to build questionnaire that is interesting,
serve our objective, unambiguous and easy to complete and is not
burden someone. The aim was to enable ease in analysis and
facilitate easy clarification of response to get meaningful outcome
within acceptable limits.

A few questions were in disguised where the true purpose was

hidden but was sufficient to bring in the right information from
respondents. Depending upon the requirement the questions were
kept open ended and closed ended. The sequence of questions in
questionnaire was kept in logical order. It included questions based
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 on Linkert Scale where attitude was to be studied and Rank order
scale where ranking was required. After following a series of trial
and changes the finally evolved questionnaire was being used for
survey work. I used the following types of Questionnaires for LG Air
Conditioners.

Execution of survey work

The survey work is that was done to collect primary data. In this phase we
conducted Consumer Survey by using questionnaires. I individually approached to
individuals and got the questionnaire filled by them. The individuals were
randomly chosen. For collecting data I focused divided the consumers in six
categories:

 Bachelors
 Couple
 Family
 Old age group
 Office Employees
 Businesses

For first five categories I took the sample of 18 consumers in each category, for
last one I the sample of 10 consumers. As a results customer survey, I was able to
pool ‘100’ records in our database.

For database, I took the lists of buyers of LG Products of previous 3 years. With it,
I also took the list from Service Centre of those consumers who complaint about
product performance and problems.

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 DATA ANALYSIS & INTERPRETATION
After collecting the questionnaire filled, I scanned each of entry ensuring
that all relevant information required for analysis is available and is in the
form through which we can analyze. Adjusting was made where required
keeping in mind that it does not hampers the outcomes of our objectives.
Editing of data collected was done to detect errors and omissions and
such corrections were made where required.

Data collection & Inference

To know about Consumer Satisfaction about LG Air Conditioners following

Questions asked in the Air Conditioners Questionnaire:

Quality of Product Features

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 Quality of Product Performance
Quality of the Dealership
Quality of Dealer Salesman
Quality of the Delivery Process
Quality of after Sales Service & Repairs
Quality of Complaint Management & Resolution
According to Questions of Air Conditioners Questionnaire following facts were
revealed:

Sample Size: 100 Consumers

  Poor Fair Good Very Good Excellent

           

Quality of Product Features 0 5 33 47 15

           

Quality of Product
0 4 38 43 15
Performance

           

Quality of the Dealership 0 3 30 49 18

           

Quality of the Dealer

1 1 43 42 13
Salesman

           

Quality of the Delivery

0 1 38 50 11
Process

           

Quality of after Sales 2 2 35 48 13

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Service & Repairs

           

Quality of Complaint
2 2 36 44 16
Management & Resolution

Figures are shown in Percentages

INTERPRETATIONS:

According to obtained Data, I divided the Consumers in three categories to judge

the overall performance of the Air Conditioners:

Below Expectation: It is the Mean of those Consumers who rated Air

Conditioner ‘Poor’ and ‘Fair’. Those consumers fall into the category of
Dissatisfied Consumers.
Meeting Expectations: It is the Mean of those Consumers who rated Air
Conditioner ‘Good’.
Exceeding Expectation: It is the Mean of those Consumers who rated Air
Conditioner ‘Very Good’ and ‘Excellent’. Those consumers fall into the
category of Delight / Satisfied Consumers.
ONS

INTERPRETATIONS

OVERALL PERFORMANCE
 

Below Expectations Meeting Expectations Exceeding Expectations

3.26 36.14 60.60

    Figures are in Percentages 

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Following is the result of Consumer Satisfaction about LG Air Conditioners:

Dissatisfied Consumers : 3.26%

Delight Consumers : 60.60%

FINDINGS

1. By the actual monthly sale of particular store we came to know the capacity
of the store and how much product can they sale.

2. With the data collected for the research we also came to know that there
was big problem of after sale service as 2% of the customer gave poor
rating to that.

3. The quality of complaint management and resolution system also got poor
rating by 2% customer so there are some glitches which needs to be taken
care of.

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 4. Quality of dealership and salesmanship plays an important role in customer
decision making. Some demo calls were not done properly which is why
they got a poor rating.

5. Overall the dissatisfied consumers are 3.26% but the delighted consumers
are 60.60%, the balance of 36.14 consumers are still on the edge who can
shift their preference if need be. The top competitor of LG product in Pune
is SAMSUNG. In Pune area the performance of LG is in better position but
the competitor also hold closer margin.

6. Word of mouth plays a vital role in awareness among customer. This is one
factor, which can play a good role in promotion of products as well as
demonstration given by the shopkeeper also plays a vital role for customer.

SUGGESTIONS
1. LG Electronics should give more attention on its Quality of After Sales
Services because it helps the company to increase customer’s satisfaction
and retain the customers.

2. LG Electronics should give more advertisement in Magazines & Newspapers

to remind the people about their new ranges of products.

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3. LG Electronics should maintain the communication through feedback. They
should take time-to-time feedback from dealer about customer satisfaction
to know about the customer perception about durable products.

4. LG Electronics Consumer Durable Products should be economical in price.

5. LG Electronics should find out the factors are being looked for which the
customers are buying the brand. This will help in making appropriate
message in advertisement so that that advertisement will much focused and
targeted.

6. LG Electronics should prefer the rural areas also for selling its consumer
durables products.

7. LG Electronics should make the provision for exchange offer time-to-time, it

may generate sale.

8. LG Electronics should increase knowledge and ability of Dealers to explain

finance options if requested.

9. LG Electronics should provide all details related to any promotions, company

schemes or discount applicable at the time of purchase.

10. LG Electronics should provide more information about features and

specifications of consumer durables such as size, maintenance, usage and
warranty etc.

11. LG Electronics should make sure that Salesman show better ability to listen,
understand and answer queries.
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12. LG Electronics should ensure that the company is innovative and introduces
new products to meet new customer’s needs.

13. LG Electronics provide quality and latest products which help company to
face the challenges made by competitors.

14. Direct appeal to end-users should be made, the primary sale become very
easy.

Word-of-mouth can be generated by keeping the existing customers.

LEARNING OUTCOMES
1. I have learned how convince people to use or buy your products, and
making them understand how your product is better than competitors
present in the market.

2. I have understand all the markets are different from each other like a B2B
market is completely different from B2C market both require different sales
and marketing strategies.

3. I have learned how to work in teams , how to present your product and how

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 to make the customer believe that this is the best choice for them.

4. I have learned a lot about different consumer segments and how to tackle
their problems.

5. There was so much learning throughout my 8 weeks tenure of internship, I

have done almost all the works which a employees was doing in the
company. Being a MNC it taught me how to work in pressure and you are
expected to do all the work within the company if it is needed. Overall it was
a great experience.

CONCLUSION

1. LG should improve it’s after sale service because its hits badly LGs market
share in Pune region.

2. More detailed customaries service is to be provided.

3. The training to in shop demonstration should be given at frequent time

interval and feed back should be considered positively.

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 4. The company should look into the matter of person hiring for in shop
demonstration. A big LG showroom should have at least 2 such person.

5. LG should try new dealer who have the potential. So they can target more
market.

6. As there is a bottle neck competition between Samsung and LG, it is

necessary to take measure steps to overcome the area of downfall in LG
with respect to Samsung.

7. The marketing managers should make better relations with dealers and
reputation of the company.

8. Customer considers quality as their first preference, so the company should

give more stress on this.

9. The switching of customer from LG product to other brand is due to the

bed after sell service in shop.

10.The product is well aware and it is on top of mind of customer. So company

should always improve services and update their technology.

APPENDIX
QUESTIONNAIRE FOR SURVEY

Name: ………………………………………………………………………………………………….

Address: ………………………………………………………………………………………………

Telephone Number: ……………………… Mobile: …………….……………………………

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Model: …………………………………………. …………………………………………………….

1. Overall Quality of Product Features:

 Simplicity of understanding and applying operational instructions given in manual

 Ease of using remote
 Location and design of control panel
 Usefulness of auto air swing, fan and speed regulator
 Quality and usefulness of Dehumidifier, Temperature display
 Quality of anti-bacteria filter/dust filter
 Usefulness of Auto-off/ Memory/Sleep function
 Ease of using Air Conditioner
 Availability of Power saving options

Poor Fair Good Very Good Excellent

2. Overall Quality of Product Performance:

 Durability of Air Conditioner

 Reliability of Air Conditioner (ability to work with low maintenance requirement)
 Ability to work with minimum sound
 Air throw speed and power of cooling of the room

Poor Fair Good Very Good Excellent

3. Overall Quality of Dealership:

 Ease of locating Dealer Showroom

 Ambience of dealership showroom, cleanliness etc (look, feel, layout etc)
 Availability of brochures / leaflets / other information material about product
 Reputation, honesty and integrity of the Dealers
 Availability of information in newspaper, magazines, company websites etc on durable dealer showrooms

Poor Fair Good Very Good Excellent

4. Overall Quality of the Dealer Salesman:

 Availability of sales person to attend to you

 Ability to listen to you and understand your queries
 Providing complete information about features and specifications such as size, maintenance, usage and
warranty etc
 Knowledge of salesman about all Air conditioners Models
 Knowledge of salesman on various cost related parameters like dealer discounts, schemes etc
 Willingness to provide demonstration of the product, if requested

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  Ease of placing an order for the model selected
 Providing complete documentation at the time of purchase
 Willingness to arrange for delivery of the product

Poor Fair Good Very Good Excellent

5. Overall Quality of the Delivery Process:

 Time taken for delivery of the product to your required destination

 Ability to deliver the Air Conditioner at committed time
 Ability to ensure no hidden costs related to installation
 Condition of the product on delivery
 Completing the installation of the product to your satisfaction
 Conducting proper and complete demonstration of the Air Conditioner
 Provision complete explanation of documentation and warranty aspects
 Provision of contact details in case of problems

Poor Fair Good Very Good Excellent

6. Overall Quality Of After Sales Service and Repairs:

 Ease of access to authorized service/repair engineer

 Time taken to respond to customer requests for service/repair
 Convenience of time fixed for servicing /repairs
 Ability of the service/repair engineer to understand your requirements & resolve issues
 Courtesy and patience of service engineer while listening to customer issues
 Ability of service/repair engineer to resolve problem on first visit
 Advice provided on other service needs, if any, over and above your requirements
 Accuracy of estimate provided to actual cost paid
 Ensuring That Periodic Visits Are Made As Per Contract

Poor Fair Good Very Good Excellent

7. Overall Quality of Complaint Management and Resolution:

 Ease of contacting dealer in case of problems

 Availability of Helpline/FAQs etc at company website
 Ease of accessing Customer Service Helpline
 Courtesy and patience shown while listening to customer issues
 Knowledge and ability of Helpline personnel to understand customer issues
 Ability to resolve customer issues on first call to Helpline
 Clarity in communicating service and repair related information such as time, costs etc.

Poor Fair Good Very Good Excellent

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8. Value for Money:

Poor Fair Good Very Good Excellent

Date: ……………….. Signature: …………………..

REFERENCES
BOOKS

Kotler, Philip and Armstrong, Graw - Principles of Marketing, Pearson Education,

New Delhi 2004.

Kotler, Philip - Marketing Management: Analysis, Planning, Implementations

and Control, Pearson Education, New Delhi. 2003, 11th ed.

Sharma J K - Business Statistics (Pearson Education)

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 Beri - Marketing Research (Tata McGraw-Hill), 1993, 2nd ed.

Kalakota R - Electronic Commerce: A Manager’s Guide (Pearson Education) 2000

DAILYS & JOURNALS

LG Sansar
Business World
Business Today
The Economic Times

INTERNET

www.lgezbuy.com
www.wowlg.com
www.lgservice.com
www.google.com

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