# April 13, 2018 – joyceanndavis

Day: April 13, 2018

Accounting Will Only Be Relevant in Decision Making If the Information It Provides Relates to the Past and It Includes Future Prediction

Accounting Will Only Be Relevant in Decision Making If the Information It Provides Relates to the Past and It Includes Future Prediction

Introduction Accounting, which is also known as accountancy is a “language of business”. It provides financial information about one’s business to the internal and external users such as managers, investors, creditors and etc. Users need information to help in planning, decision-making, evaluating and controlling their business or investment. The information is generally in the form of financial statement where they can show where the money is spent, helps to assess performance over a period and helps to identity problems and opportunities.

Users also use the financial information to make resource allocation decisions between and within companies, organizations and public agencies. Accounting involves the process of recording, verifying, and reporting of the value of assets, liabilities, income, and expenses in the books of account. Sub-classification of accounting consists of financial accounting and reporting, management accounting, auditing and taxation. Decision making is the process of choosing between alternative courses of action using cognitive processes.

Accounting systems can aid our decision making by providing information relevant to the decision and to the decision makers. They can aid us in allocating environmental resources. In order to design an effective accounting system for this problem, the process of decision making must be understand. Accounting systems also provide a check for the validity of that information through the process of auditing and accountability. In this report, we are going to relate Air Asia Berhad with the discussion we have selected.

We are using the annual report of 2007 and 2008 to make a comparison related with the topic. Content Accounting will be only relevant in decision making when the information provided relates to the past, as well as important for future decision making. Financial documents that are created according to Generally Accepted Accounting Principles (GAAP) to ensure that the information is accurate, reliable, relevant, comparability, timely and complete to give users the best possible picture of the company. It also indicates how to report economic events.

The process of achieving the goal of maximizing profits for business become less efficient if its lack of financial information throughout the whole process. The Financial Statements The information contains in financial statement works as communications medium provides information about the financial position, performance and cash flows of an enterprise that is useful to a wide range of users in making economic decisions. It also meant that it is crucial in establishing the future potential of the entity. Financial information is generated by the accounting process which is used by many diverse parties.

Financial information is used by both internal and external users to assist them in decision making. Internal users are those users within an organization who need financial information to decide how to plan and control daily operations as well as long-term basis. For example, Air Asia’s managers require financial information to make decision for planning purpose which includes setting prices, costs and competitive position. They need to consider adding new flight destinations or routes to the services it provides.

The managers predict the estimate the costs of operating the new flight destinations by evaluating the cost data from the past records of costs. Air Asia’s management’s interest is in determining the financial strengths and weaknesses of the business so that performance may be improved. While, business owners use it primarily in evaluating the return they are receiving on their investment. Employees need to evaluate the organization’s financial ability to meet wage demands, which eventually make a decision whether loyal to the organization or work with other better prospect organizations.

Other than that, financial information is needed by external users in decision making process in order to show the public whether the organization is healthy, stable and practicing appropriate accounting procedures. Potential investors and their advisors use financial information to analyze the current and future profitability of Air Asia, while creditors use financial information to determine a firm’s financial capacity to meet its obligations when they become due. Customers are concerned with a firm’s continuing ability to supply their needs.

The four components of financial statements are income statement, owner’s equity statement, balance sheet, and cash flow statement. Income statement, also called profit and loss statement, is the company’s financial statement that summarizes a company’s revenues and expenses which resulting net income or net loss, and provides a picture of the financial performance for a specific period of time. For example, Air Asia’s managers and investors need financial statement to assess whether Air Asia made or lost money during the period being reported.

Owner’s equity statement, also called shareholders’ equity, shows the changes in owner’s equity during a specific period of time. It lists the owner equity balance at the beginning of the period, addition and subtractions to the balance, and the ending balance. Balance sheet or statement of financial position reports the assets, liabilities, and owner’s equity at a specific date, such as the end of a particular financial year. It describe as a snapshot of a company’s financial condition.

For example, assets, liabilities and shareholders’ equity give Air Asia investors an idea as to what Air Asia owns and owes, as well as the amount invested by the shareholders. Cash flow statement or statement of cash flow summarizes information about the cash inflows and outflow for a specific period of time. It includes operation, investment, financing activities and how their impacts on the cash position during the reporting period. For example, Air Asia’s accounting personnel need to know whether the organization will be able to cover payroll and other immediate expenses.

As well as, Air Asia’s potential lenders or creditors also want a clear picture of Air Asia’s ability to repay. Besides that, potential employees or contractors of Air Asia need to know whether the company will be able to afford compensation. The Purpose of Financial Statements The main purpose of the accountant is to identify and record all activities that impact the organization financially, which eventually needed for sound economic decision making. For this purpose the financial statements generally follows a standardized structure.

The financial statements are a record of the activities but do not provide an evaluation of the data. Despite the important role of the financial statements, they do not provide an evaluation of the accounting results. In order to be able to use the information contained in the various financial statements for financial decision-making, a number of measurements and evaluations needs to be made to the numbers. Only then will the information be useful as a tool for decision-making. The Purpose of Measurement and Evaluation

It is important to determine what purpose the results of the measurement of the program will have from the outset. The evaluation of the mentoring relationship should take place. There are several purposes why we need to conduct measurements and making evaluation. For example, we want to know the reasons why there no excess funds available, demonstrate to management that the investment is having an effect on particular business goals in the organization, whether the reporting entity financially sound, would it be possible to make further loans or is available cash generating be sufficient to provide in the anticipated demand.

The format and type of information obtained during this process will depend on the intended users of the information, such as credit analysts in banks, investment institutions, management and etc. In order to determine whether Air Asia Berhad has made decisions in operating the company for the past, it is required to make some measurement and evaluation on the financial statement for the past years.

The purpose of the conducting measurements and making evaluation is to provide answers to questions such as are the reporting entity financially sound, would it be possible to make further loans and will available cash generating be sufficient to provide in the anticipated demand. • Are the reporting entity financially sound? A reporting entity concept determines the boundaries and composition of a reporting entity. As shown in the annual report of 2007 (appendix), the entity report is a consolidation report. From the income statement, the rofit after taxation for the year 2006 increased from RM212,052,000 to RM 425,700,000. As for the balance sheet, it is stated that there is an increased from RM1,661,881,000 (year 2006) to RM2,099,217,000 (year 2007). The net assets per share attributable to ordinary equity holders of the Company has also gone up from RM0. 70 to RM 0. 89 for the year 2006 to 2007 respectively. Even though there is a decrease in cash and cash equivalents at end of financial year 2006 to 2007, it doesn’t affect the profitability of the company. Hence, it can be concluded that the reporting entity for Air Asia Berhad is financially sound. Would it be possible to make further loans? Yes, Air Asia Berhad will be possible to make further loans. As shown in the balance sheet at 31st December 2007 (Appendix), Air Asia had borrow the amount of RM2,554,585,000 ( compared with 2006 RM1,052,636,000). Besides, the presentation slide of borrowing and Gearing statistic of Air Asia Berhad shown there is significant growth in net debt from RM787 millions (2006) to RM1,959 millions (2007). • Will available cash generating to be sufficient to provide in the anticipated demand?

The cash generating would not be sufficient to provide in the anticipated demand, it is because the cash that generated by Air Asia Berhad is too low to rent aircrafts and aircraft purchases. From the fleet plan for 2008, the statistic shown that there will be increases in total aircraft including Airbus A320 and Boeing 737-300. Air Asia Berhad increased their loan from year 2006 to 2007 in order to increase their rental and purchases of aircrafts. Cash generated by Air Asia Berhad may not sufficient to provide in the anticipated demand, but it may sufficient for other uses in Air Asia Berhad.

Interpreting the Numbers The conducting measurements and the making of evaluation process basically consists of the rearranging of the information in order to obtain information in a format that can be used to appraise the performance, activities, financial health, stability and growth potential. In order to conduct a proper evaluation and interpretation of financial statement, four important steps needs to be followed. First, conduct a superficial analysis of the financial statements in order to obtain an initial feeling for the areas that needs special attention.

Second, conduct an evaluation of the flow of funds in order to establish the ability of the entity to generate cash as well as the needs for funds. Third, conduct a ratio analysis in relation to called profitability, risk and growth. Forth, analyze non-financial information. Conclusion After all, every company needs to base on their pass financial report to make decision. Without past financial report, a company will lost their direction because they do not know their financial position and this may lead them to failure. Financial report not just information about the pass but it’s also a useful tool for a company to make decision.

Investing should never be based on emotion. While you might be tempted to invest in a company because you like its products or because you’ve just read a favourable article about it in a magazine or newspaper, you should make sure you’ve done your research before spending your hard earned cash. Think of the financial statement as a kind of scorecard that helps you determine which company is the one you should invest in. So ask yourself a few questions whether the statements really help answer them. Appendix [pic] [pic] [pic] [pic] [pic]

Matching Dell – Case Summary

Matching Dell – Case Summary

Matching DELL History: IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42% IBM Strategy : • Purchase PC components as against manufacturing inhouse (Main frame) • Open Architecture : OS – Microsoft, Microprocessor – Intel , reason, to encourage application developers and enhance Peripheral market • Sales : Largely corporate clients – thought its huge sales force o Retail clients through value added resellers – handled, installations, configured SW,customer networks and service part of responsibility • Competition : Apple with propriety architecture had 20% market share, Compac enters in ’82, Dell in ’84, • Competitors strategy :: use resellers for large corporate accounts, due to lack of sales force • 1986- IBM moves to propriety architecture with PS/2 line and rejects 386 chip • 1980-90 – PC performace improved and chip price declined, o New technology advancement of 386DX and Pentium II processors were significant o Windows 3. 0 launched in 1990, commonly called Wintel architecture o PC Sales declined in 1990 due to US recession • Post 1990 Demand picks up due to economic growth, and technology like computer Networking, email and WWW. o PC prices decline to less than 499USD, 45. 5% of US household owsn PC in 1998 ? Modular architecture prevalent for HW and SW, PC differed depending on configuration ? Most HW components sourced my numerous companies and highly competitive, however the Microprocessor was controlled by INTEL with 90% share, similarly for OS , Microsoft owned the market and even 80% of the productivity SW, like word processor, ? HW and SW started selling as integrated bundle ? PC customers were of 4 types Individuals (33% of Market)- buying depended on evaluations provided by consumer Reports • Educational institutes (5% of Market) • Small business and offices (22-23%of Market) – No MIS team, but had extensive experience, • Large/Midsize business and govt (37-38% of Market). – Had MIS team, spending 8-12K USD per annum to support each PC, multiple brands of PC led to maintenance and support problem – accounted for • 2 groups of buyers, one buying Apple others WINTEL, apple more successful in Individuals and educational institute ? Channels : in 1998 and portion of sales Retailers : 22%(US)17%(EMEA)26% (APAC) • Distr/Reseller 41%(US)63%(EMEA)49%(APAC) • Direct29%(US)18%(EMEA)23% (APAC) • Others7%2%1% • Retailers such as ComUSA took direct delivery from manufacturers, spent on retail display in stores and on sales people, constrained with space and thin margins • Large distributers :supplied computers to 100,000 resellers, who were responsible for configure, install service , support, their recommendations mattered for purchase. • Manufacturer provided buy back for channel inventory and price protection, costing them 2. 5 cent of Revenue, and another 2. 5 cent for Advertisements. • PC’s tool 4-5 weeks from Manufacturers to consumers ? Manufacturing : Basic assembly line to assemble 250,000 PC per year can be set up for USD 1 million, contract manufacturers in Asia were also available. • Average manufacturing cost USD 800-900, which would sell for USD 1000 • However component prices declines 25-30% per year ? Marketing and Sales • Apple, HP, IBM spent 2-3 % of sales in advertising, • Sales force : IBM-25,000 workforce, DELL Dell branded PC’s started in 1985, dealing directly with end customers, and served primarily corporate customers, offering high performance PC’s at Low price. PC’s customized to buyer spec, assembly commenced only after receiving order. • Business and govt – 77% of sales • Home and small offices – 18% • Educational institutes – 5% Sales and Marketing Very large customers accounted for 70% of business and no single customer accounted for more than 2 % Dell grouped there customers into two types • Relationship buyers – large companies with potential of repeat business, had a team of outside and inside sales rep to manage the relationship, having access to online info, about the customers entire purchase history. • Transactional buyers – SMB and Personal,user call centers, and AD’s by DELL to reach out to them • DELL experimented with retail channel in 1990, resulting in brisk sales, but lower margins, resulting in retail losses, in 1993, DELL withdrew in 1994. DELL sub divided its customer base into multiple categories, to identify unique opportunities and economies. • 1996-Dell website-as a medium for transaction buyers. • Premium pages were developed for Relationship buyers, with approved computer configurations for each customer • 1998 – resulted in USD 10 million sales per day thru the website. • Production and logistic o No finished good inventory, assembly on actual orders from 4 manufacturing plants, US, Ireland, Malasyia and China, o Daily meeting to match production schedule, order sent electronically to appropriate manufacturing site for assembly o Maintained shipping contracts with 3rd party shippers for delivery. Total production process took 1. 5 days after order o Worked closely with suppliers, through electronic links on hourly basis to arrange JIT of parts/components, reducing days of inventory from 32 to 7 days. o Direct shipment of parts like Monitors were encouraged. Suppliers located warehouses close to the production facility. • Product and Services o Two lines of Desktop : reliable, stable Vs latest technology. o Two lines of notebooks in same line o Services – install off the shelf SW, or customer propriety SW, DELL Financial services offered leasing, technology planning and asset mgmt. o After sales support ? Online 50, 000 pages of documentation Tech support center manned 24X7 , this along with the diagnostic SW helped resolve 90% problem, ? Onsite visit was outrsourced to 3rd party, serviced in 24-48 hrs o Customer survery rates DELL no 1 for technology and 2 for other parameters like pricing service relation ship, o Dell also offered the prices as the second lowest to most of its competitors for most part of the years. • Infrastructure o Worked more like start up till 93, with few formal controls, post loss in 93 hired seasoned managers o Special attention to key performance metrics, overall metrics like return on invested capital o Helps in improvement of finances, ROC is 186% in ‘98

DELL’s competitors • IBM – o 1st to recognize the challenge – launched series of initiatives, Joint manufacturing authorization programs, Integration and Assembly program, enhanced integration and assembly program o ’95 – launched AAP, shipping lightly configured PC’s to resellers, known as Model 0s, partners completed the assembly, however components were shipped only from IBM, o In ’98 more than 50% of PC shipment to Microage, was thru model 0s, 25-33% were assembled by partners o Improved inventory, reduced teardown by resellers at the last moment, resulting in less defects, earlier dteardown defect was 2-2. 5%, now 0. % o IBM started own direct sales, Ambra in 92 for low end PC, in 98, launched website, offering Aptiva line of PC for consumers, the netfinity direct program was launched for enterprise purchases o With this the PC operations returned to profitability in 4th Q of 1998 • COMPAQ • Inorganic acquisitions led to growth, tandem computers in 97 and DEC in 98 o Sold 67% thru ditributors/resellers, 25% to retail and 4% direct o Product strategy – ? Consumers -Standard PC’s , built in own or Asain factories, with minimum configuration possible, sold through retail stores, launched tollfree number in 96, but not grt response from consumer as there was no price advantage o Production strategy ? Initially based on own forecast, changed to forecast by channel members, resulted in reduced inventory from 30-60 days ?

However total cycle was 65 days till it reached the end customer ? Launched Omtimized distribution model (ODM) in 97, buitd PC after order receipt, but would go though distributors and resellers ? Complicated M/C would be manufactured in 2 steps, strip down by Compac, and rest by channel parters, similar to Model 0s of IBM. ? Compac offered only 2 weeks of price protection in this scheme, resulting in total inventory time reducing to 40-45 days ? 98- launches DirectPlus Program – directed at small and midsize companies, product offered thru telephone and Net, resellers offered referral fee of 6-7%, intent was to reduce shipping to 5 days • HP Sold 75% thru distributor and resellers , 23% retail, 1% directly, o HP targeted all resellers who were unhappy with Compac’s Direct Plus program and and mobilized them for HP products o 98 – HP launches HP shopping village (web based) for new PC, against refurbished PC’s earlier, however corporated were directed to Resellers for the completion of the process • Gateway 2000 o 2nd largest direct marketer of PC, almost cloned DELL’s approach of direct selling, customized production, maintained , internal and external sales force like DELL, quick to implement new technology, o 58% sales to hoem and small office, 28% small and medium business and 13% educational and govt o The company advertised in family oriented magazine o Grew at the rate of 39%, o Tried inorganic growth by acquisition of Advanced Logic Research, in 1997, however not successful in serving the large clients By – Amit Jain & Raj Kamal SMP-06 – 2009-10 Indian Institute of Management Calcutta India

Self-Esteem in Teenagers Is Greatly Affected by Modern Day Values, Parenting, and the Fear of Failure.

Self-Esteem in Teenagers Is Greatly Affected by Modern Day Values, Parenting, and the Fear of Failure.

Thesis: Self-esteem in teenagers is greatly affected by modern day values, parenting, and the fear of failure. 1. Finding: PARENTING: Parental attitudes and behavior heavily influence the development of self-esteem. (“Self-Esteem”) 1. “Various experts have noted that when parental communication is consistently delivered in a negative style it becomes internalized, and children start to practice negative self-talk, generating their own self-reinforcing negative messages” (“Self-Esteem” 3). 2. In addition to positive verbal communication, parents can also express acceptance and affirmation by showing physical affection and being good listeners, which make children feel important and cared about as individuals” (“Self-Esteem” 3). 3. “Belittling comparisons with siblings… and threats of abandonment… are other examples of negative communication from parents that, if used consistently, are thought to lower self-esteem and diminish a child’s feelings of love and acceptance” (“Self-Esteem” 3). 2. Finding: MODERN DAY VALUES: It can be more difficult for children in the U.

S and other modern industrialized nations to achieve a sense of competence than it was for their counterparts in earlier historical periods. (“Self-Esteem”) 1. “It’s also the larger culture that has said that it’s more important to win than to cooperate; it’s more important to be an individual than to be part of a community; and it’s more important to have lots of stuff than to be connected to people” (Halicks 2). 2. “Forty years ago, people said that their major reason for going to college was to get an education, and the second one was to contribute to their community or their field.

Well, those things aren’t even in the running anymore in terms of the reasons kids go to college. The first reason is to make money. There’s an emptiness, a lack of purpose” (Halicks 3). 3. “A whole generation of well-to-do teens who are more invested in things than in people, who have little sense of themselves, who spend more time warding off who their parents want them to be than figuring out who they actually are” (Halicks 1). 3. Finding: FEAR OF FAILURE: “… In order for children to feel good internally they must feel that they are able to do things well… rying to shield children from feelings of sadness, frustration, and anxiety when they fail, robs them of the motivation to persist in difficult tasks until they succeed” (“Self-Esteem” 3). 1. “Children develop self-esteem through the sense of competence and mastery that comes from tackling and triumphing over challenges, even modest ones” (“Self-Esteem” 3). 2. “For children accustomed to learning by trial and error, frustration can serve as a source of motivation and energy rather than an obstacle” (“Self-Esteem” 3).

A Study on the Influence of External Factors in Purchasing Decision of Property”

A Study on the Influence of External Factors in Purchasing Decision of Property”


My floral tributes to the almighty who has been the initiating and guiding light in all my endeavors. It is my pleasure to thank my faculty guide Mrs. Pallavi, for her motivation, advice and encouragement. I am highly indebted to her efforts and guidance at each and every stage of the project. I would like to thank our HOD, Mr. Saiju. M. John for giving us the opportunity and support for the successful completion of the project. I would also like to thank our Director, Mr. V. S.

Vikram, Meenakshi Sundararajan School of Management for giving us the opportunity and support for the successful completion of the project. I would like to convey my heartfelt thanks to Mr. Gopalakrishnan, Manager- Human Resources in Shriram properties , for having allowed me to do the project in their esteemed organization and for their constant support. I am beholden to my parents, friends and all the respondents for their valuable contribution that were the sources of inspiration and strength for completion of this project work.

CERTIFICATE It is hereby certified that this dissertation was designed and executed by Miss. Jayashree. M, in partial fulfillment of requirement for the award of the Degree of Masters in Business Administration, University Of Madras. This dissertation in the original work of the said candidate carried out exclusively for the above-mentioned purpose. Dr. V. S. Vikram Prof. Mrs. Pallavi Director Research Guide Place: Chennai Date: DECLARATION



Without such an understanding, business finds it hard to respond to the customer’s needs and wants. A consumer’s buyer behavior is influenced by four major factors; cultural, social, personal, and psychological factors. These factors cause consumers to develop product and brand preferences. Although many of these factors cannot be directly controlled by marketers, understanding of their impact is essential as marketing mix strategies can be developed to appeal to the preferences of the target market. The study of customer behavior in marketing is essentially the study of how people choose. What are the influences that affect choices and how do they differ from person to person or from product to product?

These are question that the marketer must answer if he is to build an effective marketing strategy; for it is indisputably true that if we know more about how a customer chooses, then we are in a much better position to present products or services that will lead to his or her choice being our offering. Buyer Behaviour is the process whereby individuals decide whether, what, where, how and from whom to purchase goods and services. DEFINITION OF PROPERTY Property is any physical or intangible entity that is owned by a person or jointly by a group of persons. Depending on the nature of the property, an owner of property has the right to consume, sell, rent, mortgage, transfer, exchange or destroy his or her property, and/or to exclude others from doing these things. 1][2][3] Important widely-recognized types of property include real property (land), personal property (physical possessions belonging to an person), private property (property owned by legal persons or business entities), public property (state owned or publicly owned and available possessions) and intellectual property (exclusive rights over artistic creations, inventions, etc. ), although the latter is not always as widely recognized or enforced. [4] A title, or a right of ownership, is associated with property that establishes the relation between the goods/services and other persons, assuring the owner the right to dispense with the property in a manner he or she sees fit. Some philosophers assert that property rights arise from social convention. Others find origins for them in morality or natural law. DEFINITION OF CONSUMER OR BUYER BEHAVIOUR Consumer behaviour invented by arpit aggarwal(in consumer business context) referred to as the study of when, why, how, where and what people do or do not buy products. 1] It blends elements from psychology, sociology, social , anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. NEED AND IMPORTANCE OF BUYER BEHAVIOR Appropriate designing of marketing strategy:

Consumer behavior is helpful in understanding the purchase behavior and preferences of different consumers. Innovating in changing technological environment: Buyer behavior provides invaluable clues and guidance to marketers on new technological frontiers which they should explore. Understanding the factors influencing the behavior process: Consumer behavior is a process. Buying or purchase forms one part of it. These are various psychological and environmental factors which influence this process. All these factors and the type of influence which they exert on an individual’s consumption behavior can be understood and analyzed. Shorter product life cycles:

Research by marketers into present and evolving consumer behavior in terms of their lifestyles and unsatisfied or unfelt needs, provides the basis for a series of new product concepts and complementary promotional appeals. At the same time, research into consumer media habits provides the necessary insights into how best to reach the prospects (potential buyers) in order to influence their buying behavior. Ecological or environmental concerns: Research into consumer interests and practices enable marketers to develop and effectively promote environmentally sound product modifications for socially concerned consumers. Consumer orientation: The modern concept is consumer oriented. Naturally, marketers are to proceed by identifying and understanding the prospective customers and their buying behavior.

To understand the consumers means to know their goals so as to design the products to best serve these goals and also to communicate an advertisement message explaining how the product can better serve consumer goals. Increased interest in consumer protection: Marketers must know and interpret various marketing and promotional appeals so that they do not go against consumer’s rights which modify their behavior. Growth of services marketing: Service marketers have realized that knowledge of consumer behavior in the context their needs and interests are essential to the development of effective marketing strategies. Growth of international marketing:

Marketers have come to realize the importance of understanding consumer behavior in foreign markets so that they can tailor their products and promotional strategies to meet the needs of targeted foreign consumers. Computer and statistical techniques: The development of microcomputer and sophisticated analytical techniques has encouraged and facilitated research into consumer behavior. The computer enables researchers to process and store vast amounts of data concerning consumers, their characteristics, attitudes, interests, activities etc and the use of advanced statistical techniques enables them to analyze these data’s and to delineate homogeneous market segments. Buyer behavior is an interdisciplinary science: Hence the marketers need to know its principles, concepts and areas. FACTORS INFLUENCING BUYER BEHAVIOR

A consumer buying behavior is influenced by cultural, social, personal, and psychological factors. Cultural factors exert the broadest and deepest influence. Cultural factors Culture, sub-culture, and social class are particularly important in buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. The growing child acquires a set of values, perceptions, preferences, and behaviours through his or her family and other key institutions. Each culture consists of small sub-cultures that provide more specific identification and socialization for their members. Sub-cultures include nationalities, religions, racial groups, and geographic regions.

When sub-culture grow large and affluent enough, companies often design specialized marketing programs to serve them. Such programs are known as diversity marketing, a practice which was pioneered during the 1980’s by large companies. Social classes are relatively homogenous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior. Social classes show distinct product and brand preferences in many areas, including clothing, home furnishings, leisure activities, and automobiles. Social factors In addition to cultural factors, a consumer’s behavior is influenced by such social factors as reference groups, family, and social roles and statuses. Reference groups: A persons reference groups consist of all the groups that have a direct or indirect influence on the person’s attitudes or behavior. Groups having a direct influence on a person are called membership groups. Some membership groups are primary groups, such as family, friends, neighbors, and co-workers, with whom the person interacts fairly continuously and informally. People also belong to secondary groups, such as religious, professional, and trade union groups, which tend to be more formal and require less continuous interaction. An opinion leader is the person in an informal, product related communication who offers advice or nformation about a specific product or product category, such as which of several brand is best or how a particular product may be used. Manufacturers of products and brands where group influence is strong must determine how to reach and influence the opinion leaders in these reference groups. • Family: The family is the most important consumer buying organization in the society, and family members constitute the most influential primary reference group. The family has been researched extensively. We can distinguish between two families in the buyer’s life. The family of orientation consists of parents and siblings. From parents a person acquires orientation toward religion, politics, and economics and a sense of personal ambition, self-worth, and love.

Even if the buyer no longer interacts very much with his or her parents, their influence on the buyer’s behavior can be significant. A more direct influence on everyday buying behavior is the family of protection namely, one’s spouse and children. • Roles and statuses: A person participates in many groups- family, clubs, and organizations. The person’s position in each group can be defined in terms of role and status. A role consists of activities a person is expected to perform. Each role carries a status. Personal factors A buyer’s decisions are also influenced by personal characteristics. These include the buyer’s age and stage in life cycle, occupation, economic circumstances, lifestyle, and personality and self-concept. Age and stage in the life cycle: People buy different goods and services over a life time. They eat baby food in the early years, most foods in the growing and mature years, and special diets in the later years. Taste in clothes, furniture, and recreation is also age related. • Occupation and economic circumstances: Occupation also influences consumption patterns. A blue collar worker will buy work clothes, work shoes and lunch boxes. A company president will buy expensive suits, air travel and country club membership. Product choice is also affected by economic circumstances. Spendable income, savings and assets, debts, borrowing power, and attitudes toward spending and saving. Lifestyle: People from the same sub-culture, social class, and occupation may lead quite different lifestyles. A lifestyle is a person’s pattern of living in the world as expressed in activities, interests and opinions. Lifestyle portrays the “whole person” interacting with his or her environment. • Personality and self-concept: Each person has personality characteristics that influence his or her buying behavior. By personality, we mean a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. We define brand personality as the specific mix of human traits that may be attributed to a particular brand. Psychological factors

A person’s buying choices are influenced by four major psychological factors- motivation, perception, learning, and beliefs and attitudes. • Motivation: A person has many needs at any given time. Some needs are biogenic; they arise from physiological states of tension such as hunger, thirst, or discomfort. Other needs are psychogenic; they arise from psychological states of tension such as need for recognition, esteem, or belonging. A need become a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act. • Perception: A motivated person is ready to act. How the motivated person actually acts is influenced by his or her perception of the situation.

Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. Perception depends not only on the physical stimuli, but also on the stimuli’s reaction to the surrounding field and on conditions within the individual. People can emerge with different perceptions of the same object because of three perceptual processes: selective attention, selective distortion, and selective retention. • Learning: When people act, they learn. Learning involves changes in an individual’s behavior arising from the experience. Most human behavior is learned. Learning theorists believe that learning is produced through the interplay of drives, stimuli, cues, responses, and reinforcement. Beliefs and attitudes: Through doing and learning people acquire beliefs and attitudes. These in turn influence buying behavior. A belief is a descriptive thought that a person holds about something. PURCHASE DECISION PROCESS Buyer purchase decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. How do customers buy? Research suggests that customers go through a five-stage decision-making process in any purchase. This is summarized in the diagram below: [pic] This model is important for anyone making marketing decisions.

It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice! ) The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favourite hamburger would recognise the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. • Problem recognition: The buying process starts with need recognition.

At this stage, the buyer recognises a problem or need (e. g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e. g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). • Information search: An “aroused” customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources: • Personal sources: family, friends, neighbours etc Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of- sale displays • Public sources: newspapers, radio, television, consumer organisations; specialist magazines • Experiential sources: handling, examining, using the product • Evaluation of alternatives: The various product/services are evaluated by the consumer on the basis of some criteria. The criteria may include price, experts opinion about the products, opinion of family members, friends etc. the marketer must know which criteria the consumer will use the purchase decision. • Choice or purchase decision: From among the purchase alternatives, the consumer makes the selection. It may be to buy or not to buy. The marketer, upto this stage, has tried every means to influence the purchase behavior, but the choice is purely consumers. Outcome or post-purchase behavior: After making the purchase, the consumer will experience some degree of satisfaction or dissatisfaction. The buyer is satisfied with a product, will feel happy about its purchase and say nice things about it. But, if he is not satisfied, he may dissuade his friends from purchasing it or advise them not to commit the same mistake. 1. 2 OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE • To study the main factors that influence the buyers purchase decision in purchasing a property. SECONDARY OBJECTIVE • To study the important aspects in making purchase decision of property. • To study the main factors that influence purchase decision. To study the impact of price in making purchase decision. 1. 3 STATEMENT OF THE PROBLEM • To study the factors that influence the buyer’s purchasing decision in regard to property. 1. 4 SCOPE OF THE STUDY • The factors that influence the customer is an effective tool that is directly related to the perfection of organization. • The study reveals the effectiveness of the buyer’s purchase decision and also throws light on its present value in minds of the respondents which will be helpful for further improvement of the organization. 1. 5 LIMITATIONS OF THE STUDY • The samplings were limited to those who live in flats alone. • Time was another limit for the study. [pic] CHAPTER II REVIEW OF LITERATURE

Cliff Allen, in his article titled “Consumers’ Purchase-Decision Criteria” published in ClickZ, on Apr 24, 2001 shared his views as follows: He talked about how business customers frequently use a well-defined evaluation process to select products and vendors. The technique maps the importance of each criterion to how well a product performs, then calculates a total score for each product. Consumers use a similar approach that takes into account both how well a product appears to meet their needs and how important they feel those needs to be. In some ways, consumer decision-making behavior is much more complex than the corporate decision-making process. Marketers have researched consumer behavior for many years, and many articles have been published in marketing journals explaining how consumers make purchasing decisions.

We now understand that consumers move through a well-defined process to make a decision. That process includes the following steps: • Recognizing a need • Searching for information • Evaluating alternatives • Deciding to purchase In mapping out the buying process that consumers use, researchers have identified several categories of motivation that determine how consumers attach weight to — or rate the importance of — product features: • Personal. This includes the demographic factors that are correlated with purchase behavior. • Psychological. Personality, attitudes, lifestyle, and motivations are a few of the factors included. • Social.

These influences include friends, family, opinion leaders, role models, and similar factors. Everyone involved in creating advertising and other marketing material knows that consumers are not as interested in a product’s features as they are in the benefits they can receive. And it’s no surprise to marketers that the way consumers feel about a product heavily influences the likelihood of their making a purchase. However, it may surprise Web marketers just how few e-commerce Web sites actually emphasize benefits in product descriptions. For instance, many of the tools at Sears. com just list features and specifications without mentioning any of the benefits of owning and using those tools.

This is very different from other marketing communications by Sears; the radio and TV spots frequently emphasize how good people feel when using their strong, reliable tools. At the other end of the spectrum is The Sharper Image. Its Web site provides a significant amount of descriptive copy for products. For instance, the Talking Digital Tire Gauge at first seems a bit extravagant. However, the descriptive copy emphasizes a serious benefit that will hit home for anyone who drives an SUV: “Recent experience has taught the driving public how critical properly inflated tires are to safe motoring. ” It’s clear that the copywriters and marketers at The Sharper Image understand consumer behavior and the motivations that influence consumer purchases.

Web marketers can apply such proven techniques to help customers make better purchase decisions. These are some of the ways to improve e-commerce performance: • Review the motivations and emotions that drive consumers to purchase your products. • Understand the process that consumers use to make purchase decisions. • Emphasize benefits in product descriptions, explaining how the features and functions help provide those benefits. If your Web site emphases features and specifications rather than benefits, it’s time to look at updating the product descriptions. Also, review the Web’s various interactive techniques that can keep you in touch with customers.

While some technologies are expensive and provide little value to consumers, others are affordable and effective. It’s always hard to persuade customers to purchase products, but applying an understanding of the consumer buying process makes it a lot easier. Laurent Stadelmann in his article “Factors to consider before buying a property to live in” dated on 2-Oct-07 shared his views as follows: There are various factors to consider before buying a property that your family will call home. The problem is that far too many people get caught up in the small or cosmetic details of the purchase and search that they forget the primary needs of the family in the process.

Keep the following points in mind when considering purchasing a property and you are much more likely to be happy with your decision. Location: This is one of the most factors in buying a property. The quality of the neighbourhood in which a home is situated is paramount when investing in a property as it influences its current and future value. Size: When it comes to property, size really does matter. The problem is that it matters differently for different people. Those that are aging and whose families have left home would do well in smaller properties that required lower maintenance. Those with growing families need room to grow not only inside the house but also outside the home.

If you have 5 children you do not want to be crowding them into 2 bedrooms nor do you need five bedrooms (unless you want them of course) if you are a confirmed bachelor. Size is an important consideration when deciding on a house that will meet the needs of you and/or your family. Mortgage: As well as the initial purchase price there are numerous other costs to consider when buying your home. Firstly, unless you are buying your home with cash, you will need a mortgage, which will have to be repaid with interest. There are so many mortgage packages available that you should think carefully about which would be the right one for you. For advice on mortgages you can visit any bank, building society or financial advisor. The internet is also a good source for your research, especially forums.

One off costs: There are also several one-off costs normally incurred during the purchase of a property which would be your responsibility: • A solicitor or licensed conveyancer to look after the legal side of the purchase • A property survey • Most banks and building societies charge for arranging a mortgage, and also for the valuation of the property that they are obliged to carry out • Stamp duty has to be paid on any property purchases costing more than ? 120,000. The current bands are: Up to ? 120,000 – nil ?120,001 to ? 250,000 – 1% of the purchase price ?250,001 to ? 500,000 – 3% of the purchase price More than ? 500,000 – 4% of the purchase price

Living costs: In addition to a mortgage, there are also many other regular costs which home owners normally have to pay: • Water, electricity, gas • Council tax • Buildings insurance • Contents insurance • Repair and maintenance costs School catchment area: Whether or not you have (or are planning) to have children, remember that the quality of local state schools exerts a major influence on property prices. A house or flat in a reputable school catchment area will always be easier to resell. Amenities: Decide what type of amenities matter to you. Do you want to be near shops, pubs and restaurants or would closeness to a park matter more to you. Buying the right property is not simply a matter of bricks and mortar.

Car insurance considerations: The cost of your car insurance will depend very much on whether your property is classified as being in a high crime or low crime area. If you have a lock-up garage or even just off-street parking, then your car insurance premiums will be reduced. Public transport: Being close (but perhaps not too close! ) to train and underground stations or a main bus route is beneficial, especially if you commute to your place of work by public transport. Access to roads: Here again, being close (but perhaps not too close! ) to roads and a motorway is beneficial, especially if you commute to your place of work by car or by motorbike Finally, two heads are better than one: When viewing a property, take a friend or relative with you.

You will have a lot of information to absorb in a relatively short period of time, during a viewing, and it is easy to miss what may turn out to be critical details in the heat of the moment. Your companion may have noticed things that you did not and vice versa. You may want to take a camera with you. If you feel that you have not taken in the whole picture regarding the property, arrange a second viewing. [pic] CHAPTER-3 PROFILE OF THE COMPANY HISTORY OF THE COMPANY SHRIRAM PROPERTY DEVELOPMENT Shriram Properties Limited is a part of the “Shriram Group”, and was established in 1997 with a mission of creating splendid homes and amenable living spaces.

In 2003 Shriram Properties limited went through the process of certification and obtained ISO 9001:2000 certificate, signifying international standards of business practices . The headquarters of Shriram property development is in Bangalore. The property development business was started with a modest equity capital and a marketing philosophy that focused entirely on the customers’ needs in terms of design layouts, amenities, security, cost etc. , and today Shriram Properties is a pioneer in property development business in South India. Sustained focus on quality, excellence & diligence in execution of projects by Shriram Properties has gone on to create an indelible impression of trust and dependability in the minds of home seekers.

In the last ten years Shriram Properties has completed about 2 million sft of residential housing & apartments in Bangalore and presently developing an additional 2 million sft. VISION To establish Shriram Properties Private Limited as a premier property development organization and to expand the operations within the country and internationally. PROFILE • Inception in 1995 • Projects Delivered 5. 0 million sq. ft • Land Reserves 1050 Acres • Foot prints in Bangalore, Chennai, Coimbatore, Visakapatnam & Kolkata • Built Up Area of various projects under Implementation 73 Mn sq ft • Partnerships with Walton Street Capital, Starwood Capital Group & Sun Apollo • Pan India presence Our Development Interests : Integrated Townships, Self Contained Residential enclaves, Residential Enclaves, Special Economic Zones, Retail, Shopping malls, Hospitality • From a humble beginning in South India, Shriram Properties Pvt Ltd today is looking forward to extending its footprints across the country and to have pan India Presence. • Shriram Properties Pvt Ltd as an Organisation has constantly demonstrated fair and transparent Business practices. • Strict adherence to ethical, legal and Social Obligations have reinforced our Leadership Position in the Industry. • The company is professionally managed and has obtained ISO 9001: 2000 Certification from TUV CERT – RWTUV Systems GmbH. The Company is fully committed to ensure Customer satisfaction, Community and Environmental concerns. • We are in insatiable urge to constantly look for opportunities for rapid expansion. • Beholden by our following strengths, we move forward from success to success and reach towering heights in the market o Heritage of the Shriram Brand. o Equity of “Trust” & “Reliability”. o Understanding customer needs to meet their expectations through extensive market research & customization. o Perfect titles for Projects – no legal hassles. o All projects cleared by Financial Institutions. o Competitive Pricing. o Designing the product to deliver maximum value at optimum prices. o Post-sales services. o More Sale to end-users. QUALITY POLICY

Our organization shall be fully focused and committed to ensure customer satisfaction in all property development • In all our activities within the ambit of our projects, we stand committed to our community and environmental concerns • We are committed to the development of team spirit, work ethics and the capability to execute jobs with excellence, right at the first time in all our employees • We shall stand committed to work in partnership with all our joint venture partners, contractors and suppliers giving due consideration to their needs and expectations • We stand committed to our responsibilities to the share holders in meeting their expectations • We recognize that profitability is essential to our future success and improvement of our entire organization to serve our customers in increasingly satisfying ways • We are committed to continually improve our operations and quality system Our quality parameters are amongst the most stringent; earning us the ISO 9001: 2000 certification. But what endears us to our customers is our unrelenting focus on quality, excellence and personalized customer care. INVESTORS POLICY Shriram Properties pvt Ltd has partnered with Walton Street Capital and Starwood Capital for investment. Walton Street Capital, L. L. C. is a private equity real estate investment firm. Since its founding in 1994, Walton Street has received total equity commitments of $3. billion from public and corporate pension plans, foreign institutions, insurance companies and banks, endowments and foundations, trusts, and high net worth individuals. Walton Street has invested and/or committed to invest approximately $3 billion of equity in approximately 150 separate transactions. Starwood Capital is a private investment firm that was founded in 1991. Since its inception, Starwood Capital has completed more than 300 transactions representing assets in excess of $21 billion. Public companies created by Starwood Capital have gone on to acquire, often with Starwood’s assistance, an additional $20 billion in assets. FEATURED PROJECT

Shriram Properties Private Limited, in an equal joint venture with SUN-Apollo, is developing a 4. 8 million sf mixed use development project (of which 3. 6 million sf will be under SEZ), called ‘The Gateway’ on the GST road in Chennai. The Gateway is spread over an area of 57. 94 acres and will comprise an IT SEZ, retail mall, multiplex & serviced apartments. Shriram The Gateway (with Sun Apollo) Status: Ongoing Shriram Properties Private Limited, in an equal joint venture with SUN-Apollo, is developing a 4. 8 million sf mixed use development project (of which 3. 6 million sf will be under SEZ), called ‘The Gateway’ on the GST road in Chennai.

The Gateway is spread over an area of 57. 94 acres and will comprise an IT SEZ, retail mall, multiplex & serviced apartments. The Gateway is a brand new experience of innovation, growth and harmony. Spread over an area of 57. 94 acres with a office space of 3. 6 million square feet spread across 13 blocks and a massive frontage of 1. 5 kms, The Gateway will be the most impressive facility of its kind in the southern half of the subcontinent. Magnificent due to its sheer size, scale and grandeur, The Gateway will house state-of-the-art infrastructural facilities with advanced connectivity, meeting the varied needs of today’s global powerhouses in the IT and ITES terrain.

With easy access to a world-class IT talent pool, The Gateway is an environment that will inspire workforces to create a new paradigm of performance and productivity. Strategically located near Tambaram, on the Grand Southern Trunk Road, The Gateway is conveniently linked to major destinations across the country by road, rail and air and is only 12 kms from the airport. Nestled at the foot of a hill clad in dense greenery, with a beautiful, scenic backdrop, the premises are surrounded by lush green land which is officially designated as a ‘National Reserve Forest’ area. The Gateway also conforms to Green Building norms as defined by ‘LEED (Leadership in Energy & Environmental Design)’.

A seamless blend of labour, leisure and luxury, The Gateway creates an environment conducive to success. With individual towers aesthetically designed for IT/ITeS spaces, framed structures with RC columns, RCC flat slabs, large efficient floor plates and granite or vitrified flooring and cladding in corridors and lobbies, covering a floor area of 34,000 to 50,000 square feet, it is a marvel for the senses as well. The Gateway also offers custom-made options to support specific IT requirements. Its key value-additions include a food court and ATM, a spacious basement parking facility, service apartments, a shopping mall and a multiplex, making it an independent and self-contained township.

The Gateway is brought to you by Shriram Properties Private Limited in a joint venture with SUN-Apollo. SHRIRAM GROUP OF COMPANIES SHRIRAM VALUE SERVICES The Shriram value services is a sister concern. It is dealing with IT, HR outsourcing, Insurance solution, FD investments, Campus recruitment, Executive search or business development, Training and Development, Data centre service. Before two years Shriram value services was named as Shriram investments SHRIRAM TRANSPORT FINANCE The Shriram transport finance company was established in the year 1979. The company has a network of 470 branches. The headquarters of Shriram transport finance is in Mumbai. The Shriram transport finance will give loans for the trucks. SHRIRAM LIFE INSURANCE

The Shriram life insurance company limited is a joint venture of the Shriram group with SANLAM of South Africa. SANLAM is one of the largest life insurance. Shriram life launches fourteen products Shrilife, Shrilife plus, Shrinidhi, Shriraksha, Shrividhya, Shrividhya plus, Shriplus (SP), Shriplus, Shrivivah etc. The headquartes of Shriram life insurance is in Hyderabad. SHRIRAM CONSUMER AND ENTERPRISE FINANCE The Shriram group entered the Shriram consumer finance business in the year 2002 through Shriram city union finance limited a stock exchange listed company. The headquarters of Shriram city union finance is in Chennai. SHRIRAM FORTUNE SOLUTION LIMITED

The Shriram fortune solution limited has been recently set up as nationwide distribution network for investments. The Shriram fortune solution limited was established in the year 1996. The company distributes Mutual funds, Debenture, FD, Life and Non life insurance products. The headquarters of Shriram fortune service limited is in Indore. SHRIRAM RETAIL STOCK BROCKING The Shriram insight share broker limited was incorporated in the year 1995, promoted by professional entrepreneurs and incubated by the Shriram group. The headquarters of Shriram insight share broker is in Kolkatta. SHRIRAM CHIT FUNDS Shriram Chits is the largest chit funds entity in India.

The trusted household Savings & Investments service provider, a pioneer in Micro Finance in India The Annual Auction Turnover of our Chit Companies is touching Rs. 3,000 crores. (US$ 715 million). Shriram Chits started operations in 1974 with a single branch. Today, our Chit Companies operate in Andhra Pradesh, Karnataka, Maharashtra Puducherry (Pondicherry) and Tamil Nadu, through 465 Branch offices, employing 6,000 people and 65,000 Agents. [pic] CHAPTER IV RESEARCH METHODOLOGY TITLE OF THE STUDY A study on “The influence of external factors in purchase decision”. RESEARCH METHODOLOGY MEANING Research methodology is a way to systematically solve the research problem.

It may be understood as a science of studying how research is done scientifically. Thus when we talk of research methodology, we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others, so that research results are capable of being evaluated either by the researcher himself or by others. RESEARCH DESIGN DEFINITION A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

TYPES OF RESEARCH DESIGN There are three types of research design: • Exploratory research design: The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view. The major emphasis on such studies is on the discovery of new ideas and insights. • Descriptive research design: it is concerned with describing the characteristics of a particular individual, or of a group. Studies concerned with specific predictions, with narration of facts and characteristics concerning individual, group or situation are all examples of descriptive research studies. Experimental research design: It involves testing of hypothesis of casual relationships between variables. It requires procedures that will not only reduce bias and increase reliability, but will permit drawing inferences about casualty. The research design selected for the study is descriptive research design. Descriptive research studies are those studies which involve describing the characteristics of a particular individual, or a group. SAMPLING DESIGN A sampling design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. TYPES OF SAMPLING DESIGN There are two types of sampling design. Probability sampling design. • Non-probability sampling design. PROBABILITY SAMPLING DESIGN A probability sampling scheme is one in which every unit in the population has a chance (greater than zero) of being selected in the sample, and this probability can be accurately determined. The combination of these traits makes it possible to produce unbiased estimates of population totals, by weighting sampled units according to their probability of selection. Probability sampling includes: • Simple Random Sampling, • Systematic Sampling, • Stratified Sampling, • Probability Proportional to Size Sampling, and • Cluster or Multistage Sampling. Simple random sampling

In a simple random sample (‘SRS’) of a given size, all such subsets of the frame are given an equal probability. Each element of the frame thus has an equal probability of selection: the frame is not subdivided or partitioned. Systematic sampling Systematic sampling relies on arranging the target population according to some ordering scheme and then selecting elements at regular intervals through that ordered list. Stratified sampling Where the population embraces a number of distinct categories, the frame can be organized by these categories into separate “strata. ” Each stratum is then sampled as an independent sub-population, out of which individual elements can be randomly selected[3].

There are several potential benefits to stratified sampling. Cluster sampling The population is divided into mutually exclusive groups and the researcher draws a sample, of the groups to interview. Multistage sampling Multistage sampling is a complex form of cluster sampling in which two or more levels of units are embedded one in the other. The first stage consists of constructing the clusters that will be used to sample from. In the second stage, a sample of primary units is randomly selected from each cluster (rather than using all units contained in all selected clusters). In following stages, in each of those selected clusters, additional samples of units are selected, and so on.

All ultimate units (individuals, for instance) selected at the last step of this procedure are then surveyed. NON-PROBABILITY SAMPLING DESIGN Non-probability sampling is any sampling method where some elements of the population have no chance of selection (these are sometimes referred to as ‘out of coverage’/’undercovered’), or where the probability of selection can’t be accurately determined. It involves the selection of elements based on assumptions regarding the population of interest, which forms the criteria for selection. Non-probability Sampling includes: • convenience sampling • Judgement sampling • Quota sampling • Purposive sampling Convenience sampling

Convenience sampling (sometimes known as grab or opportunity sampling) is a type of non-probability sampling which involves the sample being drawn from that part of the population which is close to hand. That is, a sample population selected because it is readily available and convenient. The researcher using such a sample cannot scientifically make generalizations about the total population from this sample because it would not be representative enough. Quota sampling In quota sampling, the population is first segmented into mutually exclusive sub-groups, just as in stratified sampling. Then judgment is used to select the subjects or units from each segment based on a specified proportion.

For example, an interviewer may be told to sample 200 females and 300 males between the age of 45 and 60. Judgement sampling The researcher uses judgement to select population members who are good prospects for accurate information. Purposive sampling Sample units are chosen in order to meet same predetermined criteria that have been deemed important. The sampling design selected for the research is convenient sampling. SAMPLE SIZE The sample size was fixed to be 50. TOOLS FOR DATA COLLECTION The data collection tool selected is the Questionnaire. ANALYSIS AND INTERPRETATION The data collected are analyzed by percentage analysis method. [pic] CHAPTER V

DATA ANALYSIS AND INTERPRETATION DURATION OF SEARCH OF PROPERTY TABLE 5. 1 DISTRIBUTION OF RESPONDENTS BY THEIR DURATION OF SEARCH OF PROPERTY |S. NO |DURATION |NO OF RESPONDENTS |PERCENTAGE | |1. |0-6 months |12 |24. 00 | |2. |7-12 months |10 |20. 00 | |3. |1-2 years |8 |16. 00 | |4. 2-3 years |10 |20. 00 | |5. |Above 3 years |10 |20. 00 | | |Total |50 |100. 00 | FIGURE 1: DURATION OF SEARCH OF PROPERTY [pic] The above table shows that 24% of the respondents searched the property for about 0-6 months of duration, 20% of the respondents searched for duration of 7-12 months, 2-3 years and above 3 years respectively and 16% of the respondents searched for a period of 1-2 years.


The above table shows that 62% of the respondents searched for the property because they wanted to own one and 38% of the respondents searched because they were influenced to buy the property. INFLUENCE OF LOCATION TABLE 5. 3 DISTRIBUTION OF RESPONDENTS BY THEIR INFLUENCE OF LOCATION |S. NO |INFLUENCE |NO OF RESPONDENTS |PERCENTAGE | |1. |Yes |35 |70. 00 | |2. |No |15 |30. 00 | | |Total |50 |100. 00 | FIGURE 3: INFLUENCE OF LOCATION [pic]

The above table shows that 70% of the respondents were influenced by the location and 30% were not influenced by the location. REASON FOR SELECTING THE LOCATION TABLE 5. 4 DISTRIBUTION OF RESPONDENTS BY THEIR REASON FOR SELECTION OF LOCATION |S. NO |REASON |NO OF RESPONDENTS |PERCENTAGE | |1. |Transport |5 |10. 00 | |2. |Social amenities |14 |28. 00 | |3. |Access to work place |13 |26. 0 | |4. |Friends and relatives reside |8 |16. 00 | |5. |Others |11 |22. 00 | | |Total |50 |100. 00 | FIGURE 4: REASON FOR SELECTING THE LOCATION [pic] The above table shows the reason for selecting the location. 28% of the respondents selected the location due to access to social amenities like educational institution, clubs, shops etc. 6% of the respondents selected the location due to access to work place, 22% selected for other reasons, 16% of the respondents selected the location because their friends and relatives reside there and 10% of the respondents selected the location due to transport facilities. SOURCE OF SEARCHING PROPERTY TABLE 5. 5 DISTRIBUTION OF RESPONDENTS BY THEIR SOURCE OF SEARCHING THE PROPERTY |S. NO |SOURCE OF SEARCH |NO OF RESPONDENTS |PERCENTAGE | |1. |Broker |14 |28. 00 | |2. |Friends and relatives |22 |44. 00 | |3. |Exhibition and sponsor events |4 |8. 00 | |4. Media |10 |20. 00 | | |Total |50 |100. 00 | FIGURE 5: SOURCE OF SEARCHING PROPERTY [pic] From the above table it can be seen that 44% of the respondent’s source for searching the property was friends and relatives, 28% of the respondent’s source was broker, 20% of the respondent’s source was media and 8% of the respondent’s source was through exhibition and sponsor events. TYPE OF MEDIA TABLE 5. 6 DISTRIBUTION OF RESPONDENTS BY THEIR TYPE OF MEDIA INFLUENCE |S.

NO |TYPE OF MEDIA |NO OF RESPONDENTS |PERCENTAGE | |1. |Newspaper |30 |60. 00 | |2. |Television |14 |28. 00 | |3. |Internet |6 |12. 00 | | |Total |50 |100. 0 | FIGURE 6: TYPE OF MEDIA [pic] 60% of the respondents were influenced by news paper, 28% were influenced by television and 12% of them were influenced by internet. NAME OF THE NEWS PAPER TABLE 5. 7 DISTRIBUTION OF RESPONDENTS BY THE TYPE OF NEWS PAPER THEY BUY |S. NO |TYPE OF NEWS PAPER |NO OF RESPONDENTS |PERCENTAGE | |1. |The Hindu |13 |43. 3 | |2. |The times of India |10 |33. 3 | |3. Deccan chronicle |2 |6. 7 | |4. |Others |5 |16. 7 | | |Total |30 |100. 00 | FIGURE 7: NAME OF THE NEWS PAPER [pic] Out of 30 respondents who were influenced by news paper, 43. 3% of the respondents buy The Hindu, 33. 3% buy The times of India, 16. 7% buy other news papers and 6. 7% buy Deccan chronicle. INTERNET AS IMPORTANT INFLUENCEING FACTOR TABLE 5. 8

DISTRIBUTION OF RESPONDENTS BY INTERNET AS IMPORTANT INFLUENCEING FACTOR |S. NO |IMPORTANT FACTOR |NO OF RESPONDENTS |PERCENTAGE | |1. |Yes |26 |52. 00 | |2. |No |24 |48. 00 | | |Total |50 |100. 00 | FIGURE 8: INTERNET AS IMPORTANT INFLUENCEING FACTOR [pic] 2% of the respondents feel that internet is one of the important influencing factors for purchasing a property and 48% of the respondents find it as not an important influencing factor. PREFERENCE TO SPECIFIC BRAND BUILDERS TABLE 5. 9 DISTRIBUTION OF RESPONDENTS BY THEIR PREFERENCE TO SPECIFIC BRAND BUILDERS |S. NO |PREFERENCE |NO OF RESPONDENTS |PERCENTAGE | |1. |Yes |16 |32. 00 | |2. |No |34 |68. 00 | | |Total |50 |100. 00 |

FIGURE 9: PREFERENCE TO SPECIFIC BRAND BUILDERS [pic] Majority (68%) of the respondents does not prefer to specific brand builders and 32% of the respondents preferred to specific brand builders. IMPORTANCE OF ADVERTISEMENT TABLE 5. 10 DISTRIBUTION OF RESPONDENTS BY THEIR VIEW ON IMPORTANCE OF ADVERTISEMENT |S. NO |IMPORTANCE |NO OF RESPONDENTS |PERCENTAGE | |1. |Very important |24 |48. 00 | |2. |Important |17 |34. 00 | |3. Less important |6 |12. 00 | |4. |Not important |3 |6. 00 | | |Total |50 |100. 00 | FIGURE 10: IMPORTANCE OF ADVERTISEMENT [pic] 48% of the respondents think that advertisement is very important factor in purchasing a property, 34% find it important, 12% find it less important and 6% of them find it as not important. SATISFACTION ABOUT THE PURCHASED PROPERTY TABLE 5. 11

DISTRIBUTION OF RESPONDENTS BY THEIR SATISFACTION ABOUT THE PURCHASED PROPERTY |S. NO |SATISFACTION |FREQUENCY |PERCENTAGE | |1. |Fully satisfied |11 |22. 00 | |2. |satisfied |25 |50. 00 | |3. |Satisfied to some extent |12 |24. 00 | |4. |Not satisfied |2 |4. 0 | | |Total |50 |100. 00 | FIGURE 11: SATISFACTION ABOUT THE PURCHASED PROPERTY [pic] 50% of the respondents were fully satisfied with the purchased property, 24% were satisfied, 22% were satisfied to some extent and 4% of them were not satisfied. [pic] CHAPTER VI FINDINGS, SUGGESTIONS AND CONCLUSIONS FINDINGS • 24% of the respondents searched the property for about 0-6 months of duration, 20% of the respondents searched for duration of 7-12 months, 2-3 years and above 3 years respectively and 16% of the respondents searched for a period of 1-2 years. 62% of the respondents searched for the property because they wanted to own one and 38% of the respondents searched because they were influenced to buy the property. This was due to the compulsion of friends and relatives. • 70% of the respondents were influenced by the location and 30% were not influenced by the location because most of them wanted to buy a property and so did not consider the location. • 28% of the respondents selected the location due to access to social amenities like educational institution, clubs, shops etc. 26% of the respondents selected the location due to access to work place, 22% selected for other reasons, 16% of the respondents selected the location because their friends and relatives reside there and 10% of the respondents selected the location due to transport facilities. 44% of the respondent’s source for searching the property was friends and relatives, 28% of the respondent’s source was broker, 20% of the respondent’s source was media and 8% of the respondent’s source was through exhibition and sponsor events. • 60% of the respondents were influenced by news paper, 28% were influenced by television and 12% of them were influenced by internet. • 43. 3% of the respondents buy The Hindu because they found it to be the best news paper, 33. 3% buy The times of India because the language was in simple terms, 16. 7% buy other news papers which include other languages and 6. 7% buy Deccan chronicle as it is the cheapest. 52% of the respondents feel that internet is one of the important influencing factors for purchasing a property because it was the only easiest and cheapest source for searching a property and 48% of the respondents find it as not an important influencing factor as they found it to be unreliable and one can get easily cheated. • Majority (68%) of the respondents do not prefer to specific brand builders and 32% of the respondents preferred to specific brand builders because they think that a brand builder would make them proud and add to their status. • 48% of the respondents think that advertisement is very important factor in purchasing a property, 34% find it important, 12% find it less important and 6% of them find it as not important. 50% of the respondents were fully satisfied with the purchased property as they were satisfied with the location, price, amenities and other facilities, 24% were satisfied as only some factors were available, 22% were satisfied to some extent and 4% of them were not satisfied as the price was not worth for the property owned. SUGGESTION • Nearly half of the respondents have opted for advertisement as an essential factor deciding purchase of property. More efforts can be taken in increasing the effectiveness of advertisement. • Majority of the respondents feel that internet is one of the important influencing factors. So more efforts can be done in improving advertisement in internet and make the customer feel that the information is reliable. • Majority of the respondents were influenced by the location. So efforts can be taken by the company to implement the property in good location with maximum amenities available to the customer. A majority of the respondents are influenced by news papers. So efforts ca

STEP Analysis

STEP Analysis

What is STEP Analysis? A method used by management that provides the analysis which is based on the four external factors that may affect the organization’s performance. Social, Technological, Economic and Political are the four factors. This strategical tool helps the profitability of the company. Factors Social: The social factor helps a company to understand the ethical, cultural beliefs, demographics, lifestyles and education. These changes influence the growth of the company. Technological: The change in the technological factors can change the company’s competitive area.

Environmental, ecological ways. New strategies and products and the cost of improvising and innovation. And in the development of the product. Economic: The economic structures and its varies changes at the stock exchange and the interest, and inflation rates and nation’s economic rules and performances. They directly have a great impact on the company. Political: The changes in the government and pressures and opportunities and changes in the political system and leadership and their values will so affect the company.

It also includes the taxes and rules and political grounds and involvement in the business. Step analysis for Cadbury’s in India The word ‘chocolate’ has been traced back in ancient times from central America –civilizations Aztec and Maya ,Chocolate made from roasted cocoa beans was mostly enjoyed and relished all over the history as a drink . In ancient times as the expensive cocoa were gifted when a newly born arrives in a family or any religious occasions. Even the traders used to exchange it for jade, clothes etc. , till recent times the chocolate has been just the lain chocolate. However Sir Hans Sloane an English doctor brought chocolate milk recipe from South America to England. According to his recipe the original Cadbury milk chocolate was prepared, later it was sold to the Cadbury’s. The cocoa crillo is harvested only 10% world wide, 90% of it is hybrid and from forestero trees and varieties are produced mainly in West Africa. The hottest region is the right soil to grow this plantation for cocoa. The procedure to prepare chocolate are: Harvest Fermentation Drying Cleaning Roasting Crushing and shelling Blending Grinding Cocoa butter

Cocoa powder Kneading Rolling Conching In Birmingham 1824 at bull street England, John Cadbury used to do vending for coffee, tea and drinking chocolate. He started to concentrate on the chocolate drinks and beverages. He was also appointed as the Royal by the queen. He also shifted from the tea business stopped the tea shipment and started importing cocoa into UK. He tried so many different varieties. Although it was economically not an easy price to the consumer so he had a tie up with his brother and started his venture into Cadburys chocolate making business.

One of the best inventions in the confectionary industry was “Cadburys Dairy Milk” which was a moulded chocolate and was introduced in 1905 although after so many brands with leading chocolate companies the Dairy Milk shows 95 years later a success and recognition. Step Analysis Social: “The story of Cadbury dairy milk started in 1905 at Bourneville UK but the journey with chocolate lovers in India began in 1948”. The UK confectioner Kraft foods and Cadburys had a deal in the business and they wanted to enter the international market.

However they targeted a little tough market which I could say as India could not accept any foreign products so easily but still as “C. Y. Pal non executive chairman of Cadbury India quotes India is a very happy story for Kraft and Cadbury”. Kraft was initially trying hard with its products to put-up on the shelf’s in a market store like tobolerone, milka, cheese, Oreo cookies etc although all were under one umbrella. Indians could not accept it so easily. More than 60 yrs has been passed Cadburys has now become the countries biggest confectioner.

The barriers it had leaped and came up with different products in chocolates, drinks, gums, candies etc was appreciatiable. The Indian customer no matter how advanced or sophisticated they might be the traditional culture of mithai could not replace the chocolates “Indians have a massive sweet tooth but it’s filled with mithai but not chocolate” says (Ramesh Srinivas executive director of KPMG Advisory services India) even huge multinational company like Cadburys could not crack the market as the consumption of chocolate in India is 54gms per captia.

Cadburys worked out with amul to make mithai and add chocolate like Indo Western style but it did not attract customers so Cadbury did intensive research and started promoting through different media and hit the slogan “just for kids in 90s”. Later on they shifted to the campaign for teenagers who shared the real taste of life, memorable instances which stayed in everyone’s life” like a girl dancing in the cricket field” this campaign was awarded the “campaign of century in India. From here they targeted the campaign of consumption of chocolates amongst adults which was portrayed by Mr. Amitabh Bachan were different relations, special moments, festive occasions, reunions were showed with happiest moments with a slogan “kuch meeta ho jaya” this is an excellent technique of reaching the Indian cultural barrier of mithai the promotion of Cadbury cleverly put up to equalize a chocolate and a mithai. Technological Cadburys entered the Indian market where people could recognize the brand only with a purple cover.

Technically the taste of the Indians in the food or confectioners are different so the varieties that Indians crave about the purple cover should not be just the Dairy Milk so they came up with “fruits and nuts, crackle, roast almond” which were very famous in youth and adults to attract the kids they started with goodies and rewards with the purchase of Cadbury chocolate. The approach through media with best quality and mind lingering advertisements were done by the creative team who held up the Cadbury chocolate as luxury compared to other small confectioners in India.

The punch lines used with Indian’s own famous game cricket the sport was also enhanced. People started liking the marketing strategy and the campaigning and it dominated 70% of the share market. The snack time in the evenings was a huge market in India they came up with Cadburys bytes. Cadbury has maintained high quality and value for money it also made Cadbury dairy milk as a dessert with slogan something sweet after meal’ and for kids the wowie chocolate with Disney characters embossed in it. The 2in 1 dairy milk a combination of white chocolate and milk chocolate.

Economic The Cadbury’s and Kraft’s acquisition was priced but they individually grew on their strength in most of the countries. Kraft’s is the key market globally when they ventured together but in India they started leaning on Cadbury’s more, so it was ahead in confectionary business. The nestle was very far distant as number 2 when compared Cadbury . According to the marketing research firm-AC. Nelson Cadbury brand with milk addictive bourn vita has earned 70% of India’s market and earned us$425 million and 30% of sugar boiled confectionary category with us$1 billion i. . , 30%of it. The network of business selling its product across India is 1. 2 billion shops as India is still agrarian society although the number of super markets or hyper markets are more the food is still bought at neighborhood stores called ‘kirana shops’. No matter Cadbury tried launching its first apple drink, dollops ice-cream, and the Indian customer recognizes the purple color as Cadbury’s brand. Cadbury had to change purchasing price in India when globally it was around 10% with inclusion of interest, and taxes etc. , and 27% margin was paid by krafts.

The low prices with which Cadbury had the foothold in India and also business technique of the retailers in India to do business on ‘daily working capital’ and fast moving products only and this increased the marketing strategy by segregating their products into different lines like gums, chocolates, mints, drinks, etc. , Even if foreign markets would like to put up their confectionaries the pricing would be a big criteria and loss. The localization strategy has been adopted though slower but the products are made to the Indian customers taste.

Most of the retailers do not have refridgirators, so they came up with mini packs which with-stand the heat of India with retaining the chocolate inside without any outer influence in dairy milk products. The costing of the packaging was 50 cents earlier it is costing 4 cents now. This strategy has helped the retailers and the consumer and they were happy as Cadbury has been maintaining, quality, price and adapting Indian consumers taste. This has been amendable and kept the pace of making Indian customer to think that the value for money has been maintained and satisfied according to the Indian culture and taste.

Political The world’s biggest confectionary across the globe had stepped into India with mouth watering brand the Cadbury chocolate. Although it took 60 years to register in the Indian market it employed 50,000across the globe says in 60 countries. They had a slogan in India ‘creating brands people love’. It also worked with Indian government in development of cocoa cultivation; it did also conduct research in kerala the agricultural university and educated the farmers. And right now its operating four categories in India like chocolate confectionaries, milk food drinks, gums and candies.

Salmonella scare was biggest threat to the Cadbury Schweppes seven products globally. Salmonella is bacteria which was caused by a leaking pipe it might have occurred while the mixture of chocolate crumb was taking place at marl brook chocolate plant which is made into milk chocolate. This was not stated to the food standard agency as it had to get the stock back of one million chocolate bars and this contamination of bacteria costed them threat to health and they were charged 30 million pounds.

They were with cases of 6 charges against them for breaching health and safety legislation but they took the step and retained the entire stock. The commitment to environment was the water conservation with unique new techniques at Bangalore factory; it started using solar energy to reduce the carbon di oxide and also driving towards the global warming. There was a major issue of child labour in south Africa with cocoa cultivation as it’s the 90%of worlds biggest producers and they fought for it.

They also created and supported needs for underprivileged children. They started spreading smiles on the innocent faces not only with mouth lingering Cadbury chocolate but also good quality for any person in need. Methodology ‘The gold standard is the consideration which is defined for chocolate in India for Cadburys’. The brand which was a deal stuck with kraft foods did lot of international business however, when they stepped into India, Kraft had to depend on Cadbury’s in the market.

Where a culturally different customer did not accept krafts brands, after a slow persuasion the purple covered product that is Cadbury’s has taken over 70% of confectionary market in the long journey of 60 years. The excellent marketing strategies which they used to register and connecting to Indian values through slogans which touched Indian customer’s heart and brought smile on their face from a kid to adults. The strategy was proven brand loyalty’s best example with customer centric business. Although it did not realize to go with customers taste previously they faced lot of setbacks.

Conclusion ‘The taste of life’ a slogan which connected the people for a a long decade itself shows how the product has emerged as ‘no. 1 most trusted in Mumbai’ in India. It also is considered as marketing leader who changed the taste of India. Cadbury did not step back with the nutritional elements in its product line. The candies and gumbs have been strategically registered in a Childs mind also giving the difference the salty bytes and sweet bytes. Cadburys bytes like snacks to Cadbury chocolate varieties. The quality.

The value, the purpose which drove lot of consumers to a brand with such immense loyalty and they have trusted the beautiful product which I can say that every generation has relished. And Cadbury’s had fought back with all the myths and giving facts of benefits from chocolate or rather creating world wide study of ‘CHOCOLOGY’. Reference http://www. cadburyindia. com/heritage/chocology. asp http://en. wikipedia. org/wiki/Cadbury_plc http://www. cadbury. com/ourbrands/Pages/brandhistory. aspx http://www. provenmodels. com/32