Air Conditioner Market in India - Consumer Buying Behaviour

Posted in Marketing & Strategy Articles, Total Reads: 5023 , Published on 24 March 2015
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The success of a product in India is not predictable as it is very difficult for market researcher to understand the buying behavior of a consumer in India as their purchase decision is entirely different form needs stated. For past few years due to country’s economic growth and increasing PPP( purchasing power parity) households form middle and lower middle segment of SEC (socio-economic category) are able to afford consumer durables like air conditioner.



Air conditioner was once considered as a mark of luxury and only upper socio-economic category household were able to afford it. According a Euro-monitor article disposable income of Indian households are increasing but the air-conditioning industry is increasing at even higher rate. According to All India Air conditioning & Refrigeration Association (AIACRA) CAGR of air conditioning system is 15-20% which is highest among all the countries.


Penetration rate of ACs are very poor in Indian household which is less that 4%. Main reasons behind low penetration rate are low income and load-shading in smaller cities and rural areas. ACs have reached very small numbers of households in small cities and towns on the other side rural market is totally untapped and it would take quite a time to penetrate in rural market.


BUYING BEHAVIOR OF AC IN INDIA

Due to increasing purchasing power parity, favorable weather conditions, growing Indian economy, me-too attitude of Indian consumers and other factors air conditioning is strengthening its foothold in Indian market. Buyer make an informed decision as product like ACs are very high involvement product. To understand the buying behavior of ACs in India lets understand the needs, usage, benefits and motivation behind purchasing this product.


Needs of AC in India

Changing lifestyle: As Indian population is moving towards service sector from manufacturing and agriculture sector, their lifestyle have changed over this transition period. Middle class population and above are getting habituated of comfortable life and products like ACs fit right in place in these situation.

Hot and humid climate: Average temperature of India has been increasing over years which demands a mode to keep the heat down. Households which can’t afford ACs they use air cooler to keep the temperature down.

Densely populated cities and pollution: Due to increasing population and industries in cities temperature as well as pollutants in the air are increasing, which makes living difficult in the cities. At this point need of ACs is felt strongly.

To keep the temperature of other electronic appliances down: Many industries run on heavy software machines which increases the temperature of room. Sometime increasing heat of rooms and appliances lead to overheating and appliances stop working.

Social Status: For Indian consumers it is really important to keep up to the society. If one household buys some product it triggers a chain reaction of purchase in the society to prove their capability to own a similar product.

Fresh air and lesser noise: ACs refines the air before emitting air which keeps a room fresh and cool. On the other hand one need not open the doors and windows for fresh air which reduces noise level in the room. Which gives a feeling of sanity in chaotic life of overcrowded cities.

Products like ACs cater to personal need and environmental wants.


Usage of AC in India

Major customers of air conditioner are commercial sectors. Almost all the offices, malls, big and medium sized shops or market places are equipped with ACs. Apart from these commercial sector many household have also started consuming ACs.

Penetration of ACs in Indian household in less than 4% which is very low numbers. This number is higher in metro or tier 1 cities. Rural market is still untouched.

ACs in India are mainly used in the summer when heat and humidity is at its peak. Most of the Indian households are cost driven. So, unless air conditions are indeed required most of the household refrain from using it in order to save electricity bills.


Benefits from Using ACs

Middle class in India consists major chunk of population. And this SEC category is highly driven on cost. Though disposable income of these households are increasing these households take every possible measure to cut down the cost of running the household.

Jain et al. have showed in his research that energy labeling have very less impact on buying behavior of consumers. Initial price and other social benefit outweighs the benefits derived from ACs consuming lesser power.

Benefits derived from usage of AC can be manifold which have been listed below:

Social benefits: Me-too behavior and reputation in society yields major benefits for middle class families.

Clean and clear air: ACs help in keeping air clean in the house which reduces the chances of getting breathing diseases.

Unaffected by weather and heat: This is the final benefit derived from using this product.

Indian consumers gives more weightage to social benefits than personal benefit. And this is the main reason behind high growth rate of ACs in Indian market.



Motivation

Motivation can be positive as well as negative. Impact of motivating factors may be long term as well as short term.

Need is the major motivating factor behind buying ACs it can be safety, social or esteem. For upper class it’s more of safety than social or esteem. On the other hand. Social needs and esteem as major driving factors.

As discussed in the earlier section, these benefits play as positive motivations for buying this product. Apart from these factors reducing prices and new and innovative technologies are also contributing towards positive motivation. There could be negative motivating factors as well as discussed below:

- Polluted air may lead to perilous respiratory diseases

- Foul smell and suffocating environment may lead to strain in the relations

- Inferior image in the society


Air conditioner is a high involvement product and before making a purchase of high end product consumers carryout a thorough research. They keep needs, benefits and price points in consideration.


SAMSUNG: TELEVISION COMMERCIALS

Advert 1: https://www.youtube.com/watch?v=1cX4SOQdQoE “Welcome Summer”

Summers are generally vacation time for school going kids and youngsters, families also go on holidays. The advertisement uses the same theme and shows what all people generally do in summers (playing, hanging out with friends, eating summer food. It mainly focusses on Indian Summers which generally means blazing hot sun.

Theme: Welcome Summer. Samsung AC, keeps Indian Summer outside

Central Character(s)

Young couples and Kids

Personality and attributes of central character(s)

Carefree attitude of the characters irrespective of blazing hot sun and their motivation to enjoy

Setting

The TVC depicts that you can do whatever you want even in Indian summers because Samsung AC is there to keep your home cool

Drama

The ad begins with a lady opening the window through which sun shows. Then guys are shown playing volley ball on the beach and then they look at the sun and do hand action of “Come On Sun”. A lady is shown eating watermelon and other one in an open jeep looking at the sun with her arms wide open for the wind, kids are shown playing near a tree. Good music is used. Towards the end, benefits of ac are conveyed like the SVC compressor which keeps the room cool irrespective how hot it is outside and a happy young couple is shown sitting in living room enjoying the ambience due to Samsung ac.

Inferred Consumer Segment

The advert is aimed at young population and families with kids

Inferred Benefit Segment

This Ac comes with new(SVC) compressor which will keep the Indian Summers outside and you can continue your activities as if there was no heat.


Cognitive & Affective Components depicted through the TVC : Cognitive components

  • The clear description of new features of the AC, the revolutionary SVC compressor
  • Stabiliser is not required
  • Emphasises the scorching heat in India
  • Cognitive elements are used only towards the end of the ad where the features of this ac are mentioned

Cognitive & Affective Components depicted through the TVC : Affective Components

  • The characters are happy and enjoying the delicacies of summer
  • Need for tension reduction, Need for expression, Need for assertion, Need for identification, Need for modelling : The ad uses these all conveying through the activities of the characters like their playfulness, sitting on the terrace without tension, desirable lifestyle shown through the girl in the jeep


Communication along central & peripheral route of persuasion

• Central route – Only at the end of the advert, the features of the new ac are conveyed directly.

• Peripheral route – The characters serve this purpose by depicting how Samsung ac brings about happiness in the lives with new technology. They are enjoying all their activities irrespective of the weather thereby saying that Samsung ac allows you to continue with normal lifestyle and activities.


Positive & Negative Reinforcement

• Positive Reinforcement – Respite from heat

• No negative reinforcement visible


Advert 2: https://www.youtube.com/watch?v=3jTerYStE6Q

Theme: Samsung On savings On (Ultra efficient Samsung AC’s)

Central Character(s)

A young family of 4 (two school going kids)

Personality and attributes of central character(s)

No specific personality attribute has been used. Just a normal day in a Indian family’s life has been depicted

Setting

A normal day in an Indian family’s life is shown though in fast forward mode.

Drama

The ad begins with the wife opening the window(which is below the ac), and asks the  husband to get ready for work, and the kids get ready for school. Then they have breakfast together. After they leave, the wife sits in front of the ac to relax for a bit and then again gets busy with household chores. Evening, everyone comes back home and husband sits in front of the ac to relax for a moment then rushes again to change. Everyone has dinner. The couple then has a private moment while sitting on the sofa and are disturbed by kids. All this while the AC is on. Towards the end, the ad says life will continue at this pace, but we have ultra efficient Samsung ac with multijet technology to keep your home cool.

Inferred Consumer Segment

The advert is aimed Indian families

Inferred Benefit Segment

The families who wish to relax in their long hectic days, Samsung ac provides them that opportunity and feeling of relaxation


Cognitive & Affective Components depicted through the TVC : Cognitive components

  • The clear description of new features of the AC, the savings in electricity bill
  • Need for consistency, Need for Autonomy, Need for stimulation, Utilitarian need are shown by the hectic lives of the characters and they need for some personal space and moments of peace
  • Need for stimulation is shown by the savings they make by using this ac

Affective Components

  • Need for tension reduction after work, Need for expression by love between the members of the family, Need for affiliation by the care of the mother/wife has been shown


Communication along central & peripheral route of persuasion

• Central route – The ad clearly shows how hectic lives are these days for everyone is the family thus ac is On all through the day. Also, the benefits of the new ac (Multi Jet technology, Ultra efficient and stabiliser) which help in saving electricity.

• Peripheral route – The moments when the family members relax, the cool air coming out of the ac is shown around the character using animation. Hence, conveying it is the air from ac which helps one relax.


Positive & Negative Reinforcement

• Positive Reinforcement – Ease of life ->Happiness in the household Savings in electricity bills

• No negative reinforcement visible


NEWSPAPER ADS

Newspaper Ad 1

Newspaper Ad 2

About the ad

Full page ad on the new Samsung ac with Triple Protection Technology: Virus Doctor, Stabiliser free and UTR plus. Special summer offer with details of price of all models.

Full page ad on campaign “Samsung On Savings On” launched in 2013 with free services offered on purchase of ac’s during the offer period.

Central Route to Persuasion

Detailed information regarding offers given for new variants of ac with description of benefits which consumers can logically process and evaluate while considering purchase

Emphasis on messages like “It’s Now or Never Offer”, and offers like : “Free installation, 0% finance offer and 6 free services”

Peripheral

Family care and protection used to convey the new features. “Virus Doctor”, “Air that Cares”. Pictures of a lady sleeping peacefully also convey the benefits indirectly.

Uses the term “Smart savings” emphasising how smart it would be to buy the ac now and financing it wouldn’t be a problem.

Cognitive Elements

New features of the AC are conveyed and also says how the product is beneficial against impure air, power fluctuations and extreme heat. Prices of 4 different variants are also mentioned with details of stores in different areas of Mumbai. Very informative ad as is also clearly specifies the details of all three new features.

Clearly stated benefits, however proper details are not given. Describes the benefit of inbuilt inverter and multi jet technology which helps in saving electricity. The emphasis is mainly on finances in this ad, from savings to free services offered.

Affective Elements

Uses the care aspect: “Samsung AC’s care for your loved ones, just like you do”. Also, conveys how the product takes care of family against heat and germs so that you can get care uninterrupted

The ad is highlighted by the word “smart” for the savings made by this offer.

Positive Reinforcement ( No negative visible)

Purchase => Family protection + protection from impure air and power fluctuations

Purchase =>Savings + Free services + Saving on electricity bill



MAGAZINE ADS

Magazine Ad 1

Magazine Ad 2

About the ad

Latest technology -> protection from H1N1 virus apart from normal viruses. Claims Samsung ac to be a virus doctor. “Make your home virus Free”

New Silver Nano health system in Samsung ac that gives revitalizing, purer and cleaner air. It is not an Indian ad.

Central Route to Persuasion

Specifies the certification by 7 Health associations. This ac not only protects from normal viruses but also H1N1 is stated directly.

Clearly depicts the working to this ac to provide cleaner air through the pictures.

Peripheral   Route to Persuasion

Except for attractive Priyanka Chopra the ad doesn’t have anything concrete for low involvement user.

Attractive female model and use of roses to emphasize the revitalising air part

Cognitive Elements

Very High Emphasis on Product features and certification by health associations as details of all associations are mentioned.

Details of parts of the ac which work to clean the air shown through pictures to give credibility to the product

Affective Elements

Low because it is an informative ad about the new product proposition of protection from h1n1.

The use of red roses is an affective. The peaceful and calm look on model’s face has been used.

Positive Reinforcement ( No Negative)

No reinforcing element as its more of a factual and informative ad

No reinforcing element as its more of a factual and informative ad


VOLTAS: TELEVISION COMMERCIALS

Advert 1: https://www.youtube.com/watch?v=12Fk-pmxtvc

Theme: VOLTAS All Weather AC

Central Character(s)

A middle aged couple and father of the lady

Personality and attributes of central character(s)

The father is generally finding faults in his son-in-law

Setting

The TVC depicts how the AC will work even in Delhi’s hot weather and son-in-law will impress the father-in-law with the Voltas Ac

Drama

The ad begins with a father of the girl arriving. He keeps on blaming the son-in-law for various reasons. Even blames him for the heat in Delhi. At that point the son-in-law says now “ I will turn the coffee into Kulfi with my Voltas All weather AC”. It works I sticky heat, normal heat and dry heat too.

Inferred Consumer Segment

The advert is aimed at middle class families

Inferred Benefit Segment

This Ac works in all kinds of weather. No matter how humid it is, the ac will serve all purposes


Cognitive & Affective Components depicted through the TVC : Cognitive components

  • All Voltas ads generally convey the core value proposition of Voltas AC being suitable for all weather conditions. In this ad too, the lead character says so
  • By showing a middle class family, the ad conveys the affordability of the AC

Cognitive & Affective Components depicted through the TVC : Affective Components

  • Shows the plight of all in-laws favouring their own child and finding faults in child’s spouse
  • When blamed for Delhi’s hot weather, the son-in-law says if god has given this 50 degrees how is that his fault and then is rescued by his Voltas AC and gains respect in eyes of father-in-law

Communication along central & peripheral route of persuasion

  • Central route – The lead character says that his AC is suitable for all weather conditions and no matter what temperature God creates outside, the AC will come to rescue. This has been conveyed using central route.
  • Peripheral route – Impressing his father-in-law with the Ac, giving him respite in Delhi’s heat, the lead character conveys the benefits of the Voltas Product indirectly. This is because generally it is not easy to satisfy your in-laws.

Positive & Negative Reinforcement

  • Positive Reinforcement – Respite from all kinds of heat
  • No negative reinforcement visible


Advert 2: https://www.youtube.com/watch?v=3q7AaQcXC3g

Theme: VOLTAS AC : Savings on electricity

Central Character(s)

Old parents

Personality and attributes of central character(s)

Middle class parents who wont be able to afford the maintenance of a premium product like AC

Setting

The son sends an AC to his parents. However, they have not used it as they are worried about the bills.

Drama

The ad begins with the father going to collect the parcel son has sent( a Voltas Split Ac). However, the parents are not happy with the gift. Son calls the mother and with her hesitant voice, he comes to know they have not used the ac. Then they read their son’s letter which says this new Voltas Ac saves lot if electricity and serves you with less power usage

Inferred Consumer Segment

The advert is aimed at middle class families

Inferred Benefit Segment

There is saving on the electricity consumption

Cognitive & Affective Components depicted through the TVC :Cognitive components

  • The son’s letter conveys how this new AC saves on the bill so middle class families need not worry about the maintenance costs that come with buying the product
  • The efficiency and less power usage of AC is conveyed by a voice in background

Cognitive & Affective Components depicted through the TVC : Affective Components

  • Shows the plight of middle class people who are not able to use the AC worried about the expenditure it would cost
  • At the end, the mother is happy and drying her nail polish in Ac’s air showing that how conveniently they are using the AC now


Communication along central & peripheral route of persuasion

• Central route – The character(son) who gifts the AC to his parents says that they need not worry about the electricity bill as the AC is ultra-efficient and consumes less power.

• Peripheral route – The peripheral route is followed by initially showing worried parents and then how happy they are with convenient use of the ac after the sons conveys ACs less power usage. Hence, the product is affordable to lower-end consumers as well.


Positive & Negative Reinforcement

• Positive Reinforcement – Respite from heavy electricity bills

• No negative reinforcement visible


NEWSPAPER ADS

Newspaper Ad 1

Newspaper Ad 2

About the ad

The new split ac from Voltas with savings upto Rs 16000 and exchange benefits. Very detailed and informative ad.

“Jagmag Desh Mera” “India ka dil, India ka AC” This was a new campaign for  Votlas ACs which has launched a series of 50 ACs this to suit the wallets and requirements of our much heterogeneous Indian market.

Central Route to Persuasion

Clearly states the financial benefits of buying this new split ac. Detailed breakup of MRP, EMI, down payment for two models has been shown. Customer care numbers are also given in case further clarifications are required.

The man in the store with only one light bulb and wearing normal clothes is shown. They want to eliminate the thought of paying increasing electricity bills that are often accompanied with the installation of an AC and plays the role of a mental blockage and prevents a customer from buying a new one. They have positioned the brand as one that gives the user a feeling of "Responsible Usage”

Peripheral

It is more of direct ad except for the happy couple which features in every Voltas Ad.

“India ka Dil. India ka AC" saying that this ac for all kinds of Indian Customers. They have shown a man in small shop, thereby emphasizing that even lower end consumers can afford products like AC.

Cognitive Elements

Informative about new offer on savings and exchange but limited details. Also, cashback offer on Citibank card is mentioned.

Doesn’t use cognitive elements, use of affective elements is higher as they want to build the perception of “An AC for all”.

Affective Elements

None

Clearly uses the affective elements of patriotism, compassion and aspirations of normal Indian Consumer. The man shown in the ad is someone with whom lot of Indian consumers can identify with.

Positive Reinforcement

Purchase => Rs 16000 savings, No down payment, easy EMI option, No processing charges

Purchase =>Affordable prices


MAGAZINE ADS

Magazine Ad 1

Magazine Ad 2

About the ad

Voltas all weather air conditioners. It is a simple ad with not much clutter. Conveys 4 features of the ac and shows a happy couple with next door neighbours image

Ad with a very low information just stating the proposition of the product that it works in all weather conditions

Central Route to Persuasion

Emphasis on term “all weather”. 4 features specified below the picture of ac.

Just a message saying that irrespective of the weather, ac provides you comfort

Peripheral Route to Persuasion

A happy middle aged couple sitting in the living room is featured. Not using celebrity emphasises the product is for masses.

Attractive female model has been featured. She is smiling and looks at comfort in her house.

Cognitive Elements

Mention of 4 product features

“Voltas all weather ac” the message has been written with name neha thus saying that this is review of the customer.

Affective Elements

The happy couple

The happy and smiling girl, customer review

No reinforcement visible


CONSUMER LEVEL DATA

In order to analyze the decision process for the purchase of air conditioners, customer survey was conducted in 2 households in Kunnamangalam. The products of our concern, Voltas and Samsung AC were spotted in households which belonged to the SEC A2 category of the social economic classification. The product was viewed as a luxury item in the area where the survey was conducted and the households owning the product were one of the high income households and exhibited great similarity in the consumption decision making process


SAMSUNG A/C

The household is 7 member household with the decision being taken by the son who is a manager of a private firm. The household has been using the particular product for the last 1 year.

1. Identification of need: The need for the purchase of the air conditioner was identified

a. Hot climate: The purchase was made during the summer season due to the high temperature.

b. Better comfort: The manager was insistent in the installation of an AC since he was used to it at the office also.

c. Better cleanliness: The house being on the roadside, keeping the windows was not a good choice as all the dust was swept into the rooms quickly making it dirty. So, AC was considered as an efficient alternative.


2. Information search

a. Internet: The customer review of the product was looked up. Further, the websites of the some of the brands were visited to make the decision about the purchase.

b. Dealer Shop: Enquiries regarding the sale, and the complaints received of the different brands of AC were made to the salespersons of Kannankandy home appliances shop, a renowned shop in the town.


3. Evaluation of Alternatives

a. The different brands under consideration were LG, Daikin and Samsung. The value for money parameter was taken as that of important parameter for comparing the 3 options.

b. A 5 star energy rating was also given priority in order to avoid high electricity bills.

c. Designs available was also taken into consideration while choosing the product

d. Compactness of the product was taken since there was a chance for house shifting in the near future.


4. Purchase Process: Samsung was purchased due to the following reasons:

a. Samsung had service center close to the location

b. The compactness of the split AC was taken into consideration

c. TV, Microwave oven, and laptop used in the household were of Samsung brand and did not have any major complaints till date.

d. The product was available in black and white color which was much more attractive


5. Post purchase evaluation:

a. The product has a slow pace of cooling the room, though no other major problems have occurred so far.

b. The servicing done by the company is impressive

c. Electricity bills have surged very high during the summer season despite the 5 star rating.



VOLTAS A/C

The household under study is a 4 member family where the head of the family is a NRI and the decision for the purchase is done by the college going son. The family has been using the product for the last 1.5 year.

1. Identification of need: The need for the purchase of the air conditioner was identified

a. The first floor of the house was too hot especially in the summer season.

b. AC was considered to be one of the necessary items in the future with the rising temperature


2. Information search:

a. Opinion of friends: Highly positive review was obtained about the product from the peer group of the college going son

b. Advertisements: The advertisements were noticed in order to understand the popularity of the brand before making the choice.


3. Evaluation of Alternatives:

a. LG, Voltas and Samsung were the choices under consideration

b. Lowest price alternative was preferred.

c. Since the AC was intended for installation in the master bedroom, a higher capacity AC was the preference


4. Purchase Process

a. Voltas AC was a relatively new launch and had promised some attractive features like provision for switching of the display light of the AC etc. which was absent in others.

b. The brand had offered heavy discounts during a festive season when the purchase was made.

c. Brand was believed to specialize in AC and hence perceived as a better product.

d. Highly recommended by the ac dealers from where the purchase was made


5. Post purchase evaluation:

a. The product had the complaint of water leakage which was not rectified even after servicing

b. The servicing also was not commendable since there was a long delay after the complaint was made



MANAGERIAL IMPLICATIONS: SAMSUNG

Product category aspects

Brand communication

•  Multi jet technology for efficient, fast cooling, easy installation

•  For efficient sleep and energy saving

•  Powerful tropicalized rotary compressor at 52 degrees

•  Full HD bacteria filter collects upto 60%

•  5 star rating to save on electricity bills

•  No need of stabilizer with built in inverter

  • Ads show youngsters enjoying the summer sun and little kids playing at the beach
  • It conveys the message of being carefree and be indifferent to scorching heat outside
  • It shows that AC can run all day long suiting Indian requirements
  • Virus doctor denotes keeping the dust and germs away, keeping air fresh
  • ‘smart savings’ denotes saving in form of servicing and electricity bills
  • ‘smart AC’ captures  stabilizer to avoid expenditure


Gaps in communication and perception

• According to the interviews conducted, Its perceived as a luxury item, but the ads projects itself as very economical by showing savings

• Though the ads suggests that AC will freshen up the room in minutes, the customers faced a delay in the performance

• Though the ads claim to reduce electricity bills, the consumers faced surging bills in summer months


Insights WRT consumption behavior

• Consumers gave high importance to location of service centre and their quality of service which has not been highlighted by the company in their services or communicated by means of ads

• Misuse of rating mechanism by companies which neither shows the right size of AC nor the electricity consumption


External influences

Internal Influences

  • Culture: the product places itself as a necessity. Since the consumer was used to it in office, he bought one for home as well
  • Demographics: the young gets to decide the brand of AC by doing research
  • Social status: though portrayed as a necessity, it is perceived as a luxury item in the locality of interview
  • Marketing activities: Samsung markets itself as the ‘Smart AC’ which cleans air, reduces bill &has new technology fast cooling system
  • Perception: people perceived it as an energy efficient, fast cooling and stylish product
  • Learning: customers learnt about the ‘flight jet’ compressor for fast cooling and the ‘6 step’ design for clean air
  • Memory: the customer associated past experience with other Samsung products and extended it to the purchase of this one
  • Motives: motive of purchasing this AC is cooling during scorching summer heat and clean air inspite of pollution by maintain low bills
  • Personality: is ‘Smart AC’ with fast cooling, low bill, clean air
  • Emotions: relaxation and happiness
  • Attitude: consumers who are carefree but make smart choices by taking care of functional requirements ‘smart AC’ captures the inbuilt stabilizer to avoid expenditure


MANAGERIAL IMPLICATIONS: VOLTAS

Product category aspects

Brand communication

  • AC comes with 1.5 ton capacity
  • Wall mounted rotary compressor
  • Anti fungus, anti bacterial filter
  • Additional features like remote control, LED display, sleep mode & auto restart
  • Less noise due to cross flow vane
  • Hydrophilic Aluminium fin and self grooved copper tubes
  • The brand revolves around leaving an impression even from an unexpected person
  • Aimed at middle class families depicting easily affordable
  • Focusses on revamping the perception of AC as a necessity with affordable electricity bills instead of something flamboyant
  • Suitable for people who have to face sticky heat, dry heat & normal heat
  • Highlights on the tag ‘India ka AC’ focusing on scorching heat and tight electricity bills. Portrays itself as ‘All weather AC’


Gaps in communication and perception

• Even though the brand clearly shows an AC for all weather, people still perceive it as only for rising temperatures and not to control humidity or dryness

• Voltas terms itself as economical in the overall process of purchase and use, since it claims to have better energy ratings. But, the consumer focused only the low cost feature and didn’t include the incentive due to electricity bills


External & internal influences

External influences

Internal Influences

  • Culture: the product places itself as a necessity and a problem solver no matter what the size and location be
  • Demographics: the young gets to decide on AC brand by doing research by either talking or going through feedback on the net
  • Social status: showcases itself as an affordable and a necessity at minimum cost
  • Marketing activities: Voltas markets itself as ‘India ka AC’ suitable for all types of heat with minimum electricity bills
  • Perception: people perceived it as an energy efficient, fast cooling and stylish product
  • Learning: customers learnt about the ‘flight jet’ compressor for fast cooling and the ‘6 step’ design for clean air
  • Memory: the customer associated past experience with other Samsung products and extended it to the purchase of this one
  • Motives: motive of purchasing this AC is cooling during scorching summer heat and clean air inspite of pollution by maintain low bills
  • Personality: is ‘Smart AC’ with fast cooling, low bill, clean air
  • Emotions: relaxation and happiness
  • Attitude: consumers who are carefree but make smart choices by taking care of functional requirements ‘smart AC’ captures the inbuilt stabilizer to avoid expenditure


Insights WRT consumption behavior

• Consumers gave high importance to location of service centre and their quality of service which has not been highlighted by the company in their services or communicated by means of ads

• Misuse of rating mechanism by companies which neither shows the right size of AC nor the electricity consumption



APPENDIX :


SAMSUNG MAGAZINE ADS:



SAMSUNG NEWSPAPER ADS:



VOLTAS MAGAZINE ADS



VOLTAS NEWSPAPER ADS


This article has been authored by Pooja Punjabi, IIM Kozhikode

 

References

[1]. AIACRA. (n.d.). Retrieved from http://www.aiacra.com/growth.html

[2]. Jain, A., Garg, A., & Singal, S. (2012). Impact of Energy Labeling on Consumer Buying Behavior of Air Conditioner. Available at SSRN 2142999.

[3]. India to Become a Competitive Hot Spot in Air Conditioners- Euromonitor



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