ASSIGNMENT

OF
MARKETING MANAGEMENT

{ LG MUSIC SYSTEM}
1. CONSUMER BEHAVIOUR PROFILE
2. IDENTIFY THE FACTORS AFFECTING
CONSUMER BEHAVIOUR
3. EXPLAIN HOW BUYING TAKE PLACE

SUBMITTED TO SUBMITTED BY:

MS.GURDEEP SILKY
ROLL NO. 52
SEC 319
MBA 1ST SEM
 INDEX

1) INTRODUCTION TO LG AND LG’S

MUSIC SYSTEM

2) CONSUMER BEHAVIOUR PROFILE OF

LG MUSIC SYSTEM

3) FACTORS AFFECTING CONSUMER

BEHAVIOUR

4) EXPLAIN HOW BUYING TAKE PLACE

5) BIBLIOGRAPHY
 • INTRODUCTION TO LG

The history of LG Electronics has always been

surrounded by the company's desire to create a happier, better life. LG
Electronics was established in 1958 and has since led the way into the
advanced digital era by manufacturing many home appliances such as radios
and TVs. LG Electronics has unveiled many new products, applied new
technologies in the form of mobile devices and digital TVs in the 21st
century and continues to reinforce its status as a global company.
LG Electronics has set a new mid-term and long-term vision,
aiming to achieve a position as one of the top three electronics, information,
and telecommunication firms in the world by 2010.

As such, the company is embracing the philosophy of "Great Company,

Great People," whereby only great people can create a great company, and
pursuing two growth strategies involving "fast innovation" and "fast
growth." Likewise, we seek to secure three core capabilities: product
leadership, market leadership, and people-centered leadership.

• CONSUMER BEHAVIOUR PROFILE

TO LG MASIC SYSTEM

Consumer behavior is the study of how individuals, groups

and organizations select, buy, use and dispose of goods, ideas or experiences
to satisfy their needs and wants.

Consumer have positive attitude towards the lg’s music system

and to all its other product. They believe that the LG brand is composed of
four basic elements: values, promise, benefits, and personality. And it is this
brand identity that turns the consumer's decision of purchasing an LG
product into a form of self-expression and self-satisfaction. LG's slogan
"Life’s Good" sums up our brand identity perfectly. It represents the quality
of life that LG strives to deliver to all its customers and the personality and
unique nature of our innovative company.

The stylized image of the human face consists of the letters L

and G, the circular nature of the image represents the world, future, youth,
humanity, and technology, and the red stands for friendliness and
commitment.

Consumer believes that LG Electronics is a major global

player in electronics & telecommunications, as it is operating 72 subsidiaries
around the world with over 55,000 employees worldwide. It is known by the
customers due to its best marketing techniques and the supply of best quality
products. Now the LG is furture strengthening core competencies even more
to further its reputation as the "Digital Leader" in electronic products and
equipment in the digital era.

• FACTORS AFFECTING CONSUMER

BEHAVIOUR

LG Music system is one of the most popular music

systems in the World. Like other Products, it is also influenced by factors
affecting consumer behaviour which are as follow:

1) Cultural Factors

2) Social Factors
3) Personal Factors
4) Psychological Factors

The Influence of these Factors on the behavior of the consumer buying LG

Music System is explained below:
 1) Cultural Factors:

Cultural factors exert the broadest and deepest influence

on behaviour of the customer buying LG Music system. Culture represents
the set of basic values perceptions, wants, and behaviours learned by a
member of society from family and other important. Every group or society
has a culture, and cultural influences on buying behaviour may vary greatly
from country to country. Culture also includes sub culture and social class
which also have the effect on the buying behavior of customer.

2) Social Factors:

The Behaviour of the customer buying LG Music system also

by social factors, such as the

(i) Groups

(ii) Family

(iii) Roles and status.

Whether the person is extrovert (out going and spends on

entertainment) or introvert (keeps to themselves and purchases via online or
mail order) again has an impact on the types of purchases made. We know
that certain people are more likely to be imitated than others--e.g., those that
are more similar to ourselves based on relevant factors such as age, social
status, or ethnic group.

It has been viewed that 60-70% of the customers belong to the

middle aged group who like to buy the LG music system. And being the
highly reputed and some what expensive product it has been highly used by
high income group people . and thus it covers the high status people .

3) Personal Factors:

Besides the factors explained above, Personal Factors also

influence the behaviour of the customer buying LG Music System. Personal
Factors includes Age and life cycle stage, Occupation, Economic situation
Life Style etc. LG Music System is one of the most trusted brands in
lifestyle products in both India and abroad.

4) Psychological Factors:
Psychological Factors includes factors such as
Motivation, Perception, Learning, Beliefs and attitude and it has great
bearing on the buying behavior of the consumer. Attitudes refer to that
mental state of the individual which represents his positive, negative or
neutral feelings toward an object, concept or idea. Like other Products,
consumers have certain perceptions, beliefs about LG Music System which
directly influence the purchase of this Music System by consumers.

The Above Explained Factors such as Cultural

Factors, Social Factors, Personal Factors and Psychological Factors etc.
exert a deep influence on the behavior of the consumer buying LG
Music System.

• CONSUMER BUYING DECISION

PROCESS
The consumer decision process is a road map of
consumer's minds that marketers and managers can use to help guide
product mix, communication and sales strategies. It consists of various
stages, a buyer passes through in making choices about which products and
services to buy.. The consumer buying process is a complex matter as many
internal and external factors have an impact on the buying decisions of the
consumer. There are five stages of the decision process which consumer or
prospective customer undergoes and each stage motivates the buyer to
purchase. Only one stage is concerned with actual purchasing.

CONSUMER DECISION PROCESS FOR

LG MUSIC SYSTEM
 LG Music System is a consumer durable good and it
is a lifestyle product in both India and abroad. There are dozens of
different brands available to choose from, and even more types within those
brands. The stages through which a consumer passes while taking decision
to purchase LG Music System are as follows:

1) Problem recognition
2) Information search
3) Evaluation of alternatives
4) Purchase Decision
5) Post Purchase Behaviour

1. Problem recognition:
Problem recognition results when there is a difference
between one's desired state and one's actual state. Consumers are motivated
to address this discrepancy and therefore they commence the buying process.

How do you decide you want to buy a particular

product or service? It could be that your Music System stops working and
you now have to look for a new one, all those MP3s’and CD’s you
purchased you can no longer play! So you have a problem or a new need.
For high value items like a Music System or a car or other low frequency
purchased products this is the process we would take.

2) Information search:

So the problem is Music System no longer

works and we need to buy a new one. The solution is to go out and purchase
a new one, but which brand? Shall we buy the same brand as the one that
blew up? Or stay clear of that? Consumer often go on some form of
information search to help them through their purchase decision. Sources of
information could be family, friends, neighbours who may have the product
you have in mind, alternatively you may ask the sales people, or dealers, or
read specialist magazines etc. to help with their purchase decision. You may
even actually examine the product before you decide to purchase it.
Total set Awareness set Consideration set Choice set Decision
Sony Sony Sony LG
LG LG LG Sony ?
Samsung Panasonic Samsung
Sanyo Philips
Pioneer Samsung
Philips
Kenwood
Panasonic

3) Evaluation of alternatives:

The consumer has to consider various alternatives

available before going to select a particular brand. Consumers allocate
attribute factors to certain products, almost like a point scoring system which
they work out in their mind over which brand to purchase. This means that
consumers know what features from the rivals will benefit them and they
attach different degrees of importance to each attribute. For example, sound
maybe better on the Sony product and price on the LG Music System , but
price is more important to some consumers.. Consumers usually have some
sort of brand preference with companies as they may have had a good
history with a particular brand or their friends may have had a reliable
history with one, but if the decision falls between the Sony Music System or
LG Music System then which one shall it be?

It could be that while evaluating different

purchase options he may be influenced more by LG Music System and will
take decision to buy that brand.

4) Purchase decision:

Once the alternatives have been evaluated, the consumer

is ready to make a purchase decision. In the evaluation stage, the consumer
forms preferences among the brands in the choice set. The consumer may
also form an intention to buy the most preferred brand. The marketing
organization must facilitate the consumer to act on their purchase intention.
Through the evaluation process discussed above consumers will reach their
final purchase decision and they reach the final process of going through the
purchase action. The Consumer who has taken decision to buy can purchase
a Music System either from the store, the web, or over the phone etc.

5) Post Purchase Behaviour:

Once the consumer has purchased and used the Music

System, they will evaluate their purchasing decision. They compare the
product's performance with their expectations. If the Consumer is not
satisfied with Music System he/she has purchased, he/she will experience
post purchase dissatisfaction. If the Consumer is satisfied, he/she will tend to
say good things about the brand to others. On the other hand, dissatisfied
consumer may abandon the product.

The Consumer goes through above explained stages while taking

decision to purchase a LG Music System.

• Bibliography

1. www.pg-india.com.
2. www.wikipedia.com
3. www.headandshoulders.com
4. Book:

Marketing Management

By: - Philip Kotler, Kevin Keller,

Abraham Koshy, Mithileshwar