indian vs chinese products

7/30/2019 indian vs chinese products

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A

DISSERTATION REPORT

On

A study on consumer behaviour toward imported product .A study of

Chinese product vs domestic product)

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARDS OF DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION (M.B.A)

(SESSION 2012- 2013)

Under the Supervision of: - Submitted By:-

Mr .Mayank pant Trilok singh karki

Sr. Lecturer M.B.A. 4rd SEM

U.I.M.

UTTRANCHAL INSTITUTE OF MANAGEMENT DEHRADUN


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(AFFILIATED TO UTTARAKHAND TECHNICAL UNIVERSITY, UTTARAKHAND)

CERTIFICATE

I have the pleasure in certifying that Mr. Trilok singh karki is a bonafide student of fourth 4TH

semester of the Masters Degree in Business Administration of Uttaranchal Institute of

Management, Dehradun under Class ID No MBA-14121112102.

He has completed his Summer Training Project workentitled A study on consumer behaviour

toward imported product .A study of Chinese product vs domestic product under my

guidance.

I certify that this is his original effort and has not been copied from any other source. Thisproject has also not been submitted in any other university for the purpose of award of any

degree.

This project fulfils the requirement of the curriculum prescribed by Uttarakhand Technical

University, Dehradun for the said course.

Signature:


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Name of the Guide: Mr. Mayank pant

Date: .

DECLARATION

I declare that the Dissertation Report A study on consumer behaviour toward imported

product .A study of Chinese product vs domestic product is a record of independent

research work carried out by me during the academic year 2012-13 under the guidance of my

faculty guide Mr. Mayank Pant of Uttaranchal Institute of Management.

I also declare that this dissertation is the result of my effort and has not been submitted to

any other University or Institution for the award of any degree, or personal favour whatsoever.

All the details and analysis provided in the report hold true to the best of my knowledge.


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TRILOK SINGH KARKI


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PREFACE

This Research is a part of my DISSERTATION REPORT is an integral part of every M.B.Acourse. We cant rely merely upon theoretical knowledge. It is to be complemented by practical

know how for it to be fruitful. A positive and correct result of the classroom learning needs

realities of practical situation.

The report submission enables the management students to themselves work in

research by them own for getting benefit in the future. It gives them real feel of research work,

which helps them to better equip themselves with the required skills. I got the opportunity to

complete research workon A study on consumer behaviour toward imported product .A

study of Chinese product vs domestic product.In particular I was lucky enough to be part of study and I was assigned to do some research

regarding the strategy formulation for marketing of the product/services of the institute. It has

been a great learning experience for me.

The study would not have been possible without the unconditional guidance

and support of my guide.


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TABLE OF CONTENTS

Acknowledgement 6 Introduction 7-19 Literature survey 21-31 Objective of the research 32 Research Methodology 33-36 Data interpretations 37-43 Findings of study 45 Limitation 46 Conclusions 47 Bibliography 48 Questionnaire 49-51


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ACKNOWLEDGEMENT

I express my deepest sense of gratitude the GOD almighty for the abundant blessing

without which the study would have never been light of the day.

I hereby acknowledge my sincere gratitude to the U.T. University and the

Management for giving me an opportunity to undergo MBA Degree Course and to

undertake this project work successfully.

I wish to express my deep sense of thanks to our HODMr. Saurabh Joshi.

I owe my reverential gratitude faculty guide Mr. Mayank Pant for her valuable

guidance and suggestions rendered at each stage of the project.

Last, but not Least I would like to acknowledge the wholehearted support of my parents,

faculties, and friends who helped me at various stages in completing this work

successfully.


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CHAPTER-1

INTRODUCTION

TO

THE TOPIC


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INTRODUCTION:

Why marketing mix mapping for lenovos computers.

In the 1980s, with economic reform in progress, the Chinese government hired Liu Chuanzhi to

distribute imported computers. Liu founded Lenovo in 1984 with a group of ten engineers

in Beijingwith 200,000 yuan. Their first significant effort, an attempt to import televisions,

failed. The group rebuilt itself within a year by conducting quality checks on computers for new

buyers. Lenovo soon started developing a circuit board that would allow IBM-compatible

personal computers to process Chinese characters. This product was Lenovo's first major

success. In 1990, Lenovo started to manufacture and market computers using its own brand

name.[6] Lenovo officially claims that it was founded on 1 November 1984. Lenovo's

incorporation was approved by the Chinese government on the same day. Jia Xufu, one of the

founders of Lenovo, claims the first meeting in preparation for starting the company was held on

17 October of the same year. Eleven people, the entirety of the initial staff, attended. Each of the

founders were middle-aged members of the Institute of Computing Technology, Chinese

Academy of Sciences. The 200,000 yuan used as start-up capital was approved by Zeng

Maochao. The name for the company agreed upon at this meeting was the Chinese Academy ofSciences Computer Technology Research Institute New Technology Development Company.

2. Design of the study:

1. To know the perception regarding the brand lenovo.2. Marketing mix mapping for lenovo in computer segments.
http://en.wikipedia.org/wiki/Chinese_economic_reformhttp://en.wikipedia.org/wiki/Government_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Liu_Chuanzhihttp://en.wikipedia.org/wiki/Beijinghttp://en.wikipedia.org/wiki/Renminbihttp://en.wikipedia.org/wiki/Chinese_charactershttp://en.wikipedia.org/wiki/Lenovo#cite_note-chief-6http://en.wikipedia.org/wiki/Institute_of_Computing_Technology,_Chinese_Academy_of_Scienceshttp://en.wikipedia.org/wiki/Institute_of_Computing_Technology,_Chinese_Academy_of_Scienceshttp://en.wikipedia.org/w/index.php?title=Zeng_Maochao&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Zeng_Maochao&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Zeng_Maochao&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Zeng_Maochao&action=edit&redlink=1http://en.wikipedia.org/wiki/Institute_of_Computing_Technology,_Chinese_Academy_of_Scienceshttp://en.wikipedia.org/wiki/Institute_of_Computing_Technology,_Chinese_Academy_of_Scienceshttp://en.wikipedia.org/wiki/Lenovo#cite_note-chief-6http://en.wikipedia.org/wiki/Chinese_charactershttp://en.wikipedia.org/wiki/Renminbihttp://en.wikipedia.org/wiki/Beijinghttp://en.wikipedia.org/wiki/Liu_Chuanzhihttp://en.wikipedia.org/wiki/Government_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Chinese_economic_reform


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3. Identify and monitor competitors marketing strategies and activities:

The Strategic Marketing Management Analysis of Lenovo GroupWang, Wen Cheng, Dept. ofBusiness Management, Hwa Hsia Institute of Technology, TaiwanChu, Ying Chien, Department

of Tourism and Leisure, National Penghu University,TaiwanChen, Ying Chang, Department of

Hotel and Restaurant Management, Ching Kuo Institute of Management and Health In recent

years, market competition in the market economy is fierce, the different economic performances

and behaviors based on the enterprises own interests, to enhance their own economic strength

and to achieve the exclusion of similar economic agents. Competition in the IT market is to drive

their own material interests, because of the inherent dynamic of all economic actors, as well as

the loss of their material interests are similar in the market bycrowding out of economic actors.

But How a newly established global brand build its brand awareness and be a successful global

brand become a critical issue. 2005, Lenovo PC merge IBM computer and become the No.3

computer company in the world. As for Lenovo Group, in order to achieve success in the fierce

competition of the products market it needs effective marketing strategy to attain profit and

improve its development in Chinese IT market.The Lenovo Group operating activities are often

completed through marketing products, producing, research, marketing portfolio. The Lenovo

Group product and the quality of products constrain the results of pricing, promotion, and

marketing. Therefore, the Lenovo Group managers attention should also be given to brand-name

marketing, addition to make efforts in the flexibility of the marketing. Marketing strategy,

especially the brand strategy is the real insight beyond product and services specific forms, and

can be able to give consumers the direct interests, the image of the expression. To establish the

product brand, it should be to establish the Lenovo Group brands, because good corporate image

is the fundamental point of the brand building. This research is going to present the conclusion of

a set of practical marketing modules applied in the IT industry; it will further enhance the

Lenovo Group marketing in the computer market.

Keywords: marketing strategicLenovo Groupglobal brandIT industry Merge has become

a common and efficient strategy for a local company to become global brand. But How a newly

established global brand build its brand awareness and be a successful global brand become a


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critical issue. (Chen, 2006) Along with Chinese economic and political reform getting thorough,

the society has changed huge; the development of Lenovo is facing the unprecedented

opportunity and the challenge. According to the basis characteristics of macroscopic external

environment, if Lenovo wants to develop, it must reform the management system, establishes the

unification guiding ideology and the reasonable management mechanism, and adopts

strengthened core competitive power, market development, and product development etc.

integration strategy. Only then can consolidate the leading position of Lenovo, win in the intense

extracurricular market competition, and receive the good social efficiency and the economic

efficiency.Study on Lenovos developmental strategy plan is the application and development of

strategic management theory in Lenovo Company. By analysis of internal the external

environment and study the future development direction of Lenovo, this article has utilized the

knowledge and method of the economic, the management, the marketing, the pedagogy etc to

make a localization for future development and propose the strategy plan and tactics conception

localization of Lenovo. During try to instruct practical work of our national Lenovo, this article

also developed some new thoughts about the strategic management content. The Introduction of

the Lenovo is one of the largest famous personal computer makers in the world. Today, Lenovo

strives to be the global market share leader in each of the market we serve. On September 24, in

2004, Lenovo purchased the personal computer business and the brand ThinkPad famous

computer IBM in the IT industry all over the world. This landmark transaction is taken as its

most important stage of the international strategy in the computer industry. This marks the trinity

Lenovo's internationalization strategy has risen to a new stage, which indicates that Lenovo

already in the United States established a brand-name image localization. Now, the Lenovo has

become the global application company (sales) that have their own package plants in more than 7

countries and cooperation plants in many countries and make the local enterprises business

license and distribution contract. Lenovo is also one of the major global companies (sales), and it

has its own production plants in 7 countries, its products are marketing in nearly 80 countries.

Analysis of the Marketing and Management CapabilitiesIn the domestic market, according to

statistics of Zhong Yikang Company: Lenovo is actually the first brand in Chinese IT industry:

Lenovos overall share of computer market in China has reached 21%, significantly ahead of

competitors; Lenovo has a monopoly status in the personal computer market; Lenovospersonal

computer market share is 24%, which is much higher than the internationally recognized


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monopoly; Lenovo also surpasses in the business computer market; Lenovos business computer

market share is 14%, which is higher than domestic computer suppliers and the strong brand

ranks the first. In the international market, Lenovo has three products occupy the first three

positions in the world market share of the computer industries. According to the results of the

latest survey of the global authority consumer market survey and analysis institutions,

EUROMONITOR show that on turnover statistics, the Lenovo Group ranked the third in the

world personal computer manufacturers, Lenovo's goal is to become the world's first personal

computer manufacturers in the near future.

SWOT Analysis of Lenovo

In order to propose and justify a forward strategy for Lenovos goods, we use the method of

SWOT (strength, weakness, opportunity and treat) to analysis the Lenovo in the follow:

Table 1: SWOT Summary of the Lenovo

STRENGTHS WEAKNESSES

- The Lenovo goods and services have good quality

- The brand recognition and traditional reputation of Lenovo are very good

- Expanding global markets strategy of the marketing

- The diversification of products

- Owns very convenient and beautiful images

- Good public relationship and sponsorship


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- Single marketing channel, the products and services are mainly sold by monopolized stores

- Large number of product lines lie in the expansion of overseas

- Product styles are too fewer to choose

- Marketing sources are not rich

- Prices are not cheap

- Takeover Lenovo to become the largest computer seller

- Specialty business computer industry takes larger market in the world

- European countries market exploration, such as England, France, Italy, Germany, and so on

- Division of products

- There are too many cheap products appearing in the world

- Competition from other shoppers embedding on form factors more pleasing to the consumer

- The market protect in some countries is strong

- Foreign exchange rate fluctuations

OPPORTUNITIES THREATS

Today, Lenovo continues to carry out the proud tradition of the good product and services

quality founded by Lenovo long time ago that will be of great benefit to companies in thecoming years. And the purpose of this Lenovo tradition pioneered by Lenovo is just the best

quality of raw materials, the production of the best quality products. Miles & Snow(1978)

proposed that the organization for changes its product/market in accordance to the environment

change the degree, does for the enterprise strategy classified datum, stressed that the organization

to the changeable environment's response including (1) defender (Defenders), its goal is standing


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firm the existing customer, the maintenance present market share, therefore pays great attention

in the narrow product/market domain, favors does not surmount the original scope to seek for the

new opportunity; (2) explorer (Prospectors), its goal grows in the pursue product/market's

innovation as well as the expansion, therefore, seeks the market opportunity continually, favors

holds the post of the change in the industry innovation (Creator); (3) assayer (Analyzers), its goal

in the choice by the explorer was confirmed that has the development potential the new domain

to promote the improvement fast the new product, therefore, is the fore-mentioned two kind of

syntheses, moreover is in a product - market change domain manages (4) reactor (Reactors) in a

relative stabilization, lacks the consistent strategy, is only makes the simple response to the

environment pressure.With an increasingly competitive market, competition among enterprises

gradually evolved from short-term competition to long-term competitiveness, that is no longer

focused on a certain stage, winning or losing the competitiveness of certain products, and to

focus on the product, pricing, marketing, promotion strategy, combined with a clear positioning

of the brand strategy to accumulate, fostering sustainable market advantage. Although Lenovo is

already the leading enterprises of computer industry in the world, however, in the face of other

powerful and internationally renowned brands, it still appeared too weak and feeble in the

industry.

The Marketing Mix: Ingredients for Success

The marketing mix, earlier known as the 4 Ps, (but now has a few more), is a vital part of any

marketing strategy. This is a tool whereby the marketer takes decisions on what and how a

product should be, where it can be sold, how it should be priced, how it will be promoted, how to

equip the people who are responsible for selling the product and so on. Getting the marketing

mix right is equally important for the large corporation and the small business owner.

One of the most critical marketing management decisions is that decision of setting the

marketing mix values, and selecting and employing strategy that periodically changes that

marketing mixes in response to changing business environment. The marketing mix problem

involves setting the values of the marketing decision variables; the four Ps; namely, Product (its

quality), Price, Place (distribution and sales-force expenditures) and Promotion (advertising,
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selling). Developing an effective marketing mix is important for product planners seeking to gain

competitive advantage in industrial markets. The decision regarding specifying the marketing

mix depends on a set of variables, such as competitor's price, competitor's product quality,

competition level, forecasted sales and others. These types of variables necessitate adoption of

appropriate approaches that can deal with such variables' nature marketing mix mapping is a step

done to achieve this.

Product: A lot of thought and effort goes into designing a product offering. The most important

question, as a marketer, a person need to ask is whether there is a need for that type of product

and how this product satisfies that need better than those of their competitors. This will force to

think of why that product is unique, and thereby help to evolve that products Unique Selling

Proposition.

Price: This element of the marketing mix can be many a strategys undoing. A complete

understanding of the financials that drive a business is essential before deciding a pricing

strategy. Base your decision after considering the followingwhat is the perceived value of your

product in the eyes of the customer? How price elastic is the market? Do you wish to load

overheads on to the new product, if an existing product line is capable of absorbing them? What

is your objectivedo you plan to gain market share on the strength of a rock bottom price or do

you wish to create a premium image targeted at niche customers and price your product

accordingly?

Place: This is probably that element of the marketing mix that has undergone a complete change

in definition. Traditional trading and distribution models have given way to remote or virtual

channels. While reaching the customer may have become simpler, your job as a decision maker

has become that much more complex. You now have a plethora of options to choose from do

you go for brick and mortar or direct mailing, use the phone or sell door to door? This decision

should, first and foremost, be driven by customer preference and then by other considerationslike logistics and economics. Indeed most businesses rely on a multi distribution channel

strategy.

Promotion: In a commoditized industry, this is what makes the essential difference. Possibly no

other marketing mix element draws as much attention from strategy makers. Again, let consumer
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needs drive your efforts. Does your marketing communication address a specific need of the

target audience? Is the message memorable? Does it spur action? Here again, the entire

landscape has changed from what it was a few years ago. Promotion has gone way beyond mere

advertising and public relationsit is now a highly evolved process, ranging from live events to

internet marketing. In these times of information overload, promotion strategies must pack

sufficient punch to cut through the clutter.

The marketing mix is a dynamic entity and needs to be reviewed and refined periodically. It

always helps to stay in touch with the latest developments. Marketing mix mapping for the brand

is done to know the standing of the brand mapped with their competitors with respect to essential

element of marketing mix i.e., product, price, place, and promotion. It ensures Studying

marketing mix strategies of the brand mapped and reviewed and refined periodically according

to market condition and competition comparative mapping with other major players in the

market, finding loopholes and building effective marketing mix strategy for Lenovo computer

segment.

Industry structure and development

Lenovo in order to achieve the goal from China brand to international brand, first of all, choose

to become a sponsor of the Olympic Games. Because the Olympic games partners, especially

the

top sponsors, Lenovo may through a variety of ways to obtain global attention on the Olympic

games ,and to achieve branding more convenient on many occasions. IOC top sponsor global

partners a total of 11, Lenovo became one of the first enterprise of China. In Turin WinterOlympics, Lenovo planned a series of brand promotion activities. Product promotion on the one

hand, and on the other hand is a whole brand marketing. Sponsor the Olympic Winter Games,

Lenovo has all round display their strength, also is more recognized by own strength .In addition,

Lenovo opening up world markets by international sports star endorsements, as well as

cooperation with famous events. 2006 football World Cup, Lenovo signed Brazil star Ronald in


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ho as agents of new products. After the contract signing Ronald in ho, in some emerging

markets, such as India, Ronald in ho endorsements by LENOVO 3,000 laptop sales growth

almost was 100%. From these data, Ronald in ho endorsements influence on Lenovo brand and

market lead to a substantive breakthrough. The same year, Lenovo and NBA signed a several

year global marketing co-operation agreement, both in cooperation between marketing in China

and USA, Lenovo will have the right to use on the NBA Logo and star image on the own

product, also with NBA star come to China, NBA China Games and other activities for

marketing to China. After this series of sports marketing, to enhance Lenovos brand image and

spur business growth, improve employee morale.

Lenovo Group

2 . LENOVO GLOBALIZATION DEVELOPMENT PROCESS

One of the essential conditions og globalization is that has a global passage of brand identifi es,

but Lenovo followed 18 of English identifies legend has been rushed in multiple national.

Lenovo PR announced of a copies information displayed, although Lenovo famous rate has up

90% in China domestic consumer , but in face what do you think Lenovo of brand

representative?, different consumer answers is not same. Against this background,

Lenovos decision to launch a new global brand and thorough combing and system promotion to

Lenovo brand architecture.

In 2004, Lenovo formally was renamed Lenovo from Legend. On March 26, 2004, Lenovo

made a significant strategic change: ending of a three-year of services, high technology andglobal to target strategic restructuring, return to manufacturing. Lenovo had been made

market share of around 30% in the area of China PC, but how to breakthrough growth is

Lenovos new problems encountered. Lenovo face two choices, fi rst, globalization, exploring

the PC business in the global market; the second is diversified, exploring new business in the

Chinese IT market, such as communication businesses and IT services


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businesses. Has gone through a period of adjustment and select, Lenovo chose globalization. On

December 8, 2004, Lenovo purchased IBMs global PC business for $ 1.25 billion, became the

worlds third-largest PC maker, with 19,000 employees worldwide, manufacturing and logistics

base in China, the

United States, England, India, and Malaysia, and Japan and Australia and so on.

In November 2005, Lenovo announced dual-branding strategy to abandon IBM and Levono

earlier, started to implement brand strategy as Levono brand in the world, hoped that by virtue of

the geographical advantages of the fast-growing Asia-Pacific market, through channel

integration became overlord of PC machines in the world. On April 28, 2006, Lenovo officially

announced and Spain Barcelona deal, its star Ronaldinho to be global brand image representative

of the Lenovo Group, Lenovo then launched a campaign global branding around Ronaldinhos in

China and overseas markets. But Lenovo faced a huge challenge in the global PC market. In

2006, major changes in the global PC market. Owing to the global PC market through a business

market of severe recession, specializes in this area of Dell and Lenovo THINK departments are

in a difficult situation

and specializes in transactional business HP had a lot of\ benefi t , replace Dell as the new

Overlord PC in the world. According to two leading research fi rms IDC and Gartner, released in

April of this year according to the ranking of the worlds 5 largest PC vendor in the first quarter,

HP continued to occupy the fi rst position, followed by Dell, Acer and Lenovo, the fifth is a

Toshiba. Acer beyond Lenovo has become the worlds third largest PC vendor.

ANALYSIS OF THE GLOBALIZATION STRATEGY OF

LENOVO

Global Investment Strategy

Lenovo carried out mergers and acquisitions for its investment strategy of globalization. Lenovo

acquired IBMs personal computer Division, established the worlds third-largest PC vendor, the

acquisition of transactions total approximately US $ 1.75 billion. After completion of the


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acquisition of the new Lenovo Group, its global headquarters in New York, the main operation

center was established in Beijing and Raleigh (in the United States, North Carolina). Two years

after the implementation of investment strategies, Lenovo has established branch offices in 60

countries around the world, in 160 countries sales network worldwide. Lenovo has the leading

business notebook products, leading research and development capacity and product

differentiation, with more innovative products capacity and more powerful combinations.

Lenovo and IBM formed a long-term strategic alliance, IBM become the preferred service

provider and customer fi nancing for Lenovo, Lenovo become IBM PC vendor of choice, so

IBM can provide their enterprise customers with a variety of PC solutions. After Lenovo

completed its acquisition of the IBM personal computer sector, three overseas private investment

companies for 350 million dollars to fund the new Lenovo. At this point, Lenovo not only

achieved a globalization, equity ownership in terms of products,

marketing networks, but also achieved globalization of financing and other aspects.

Global Brand Strategy

Lenovos brand strategy is to provide premium products and supported by excellent service for

customer. In 2005, the world prestigious financial press--United Kingdom financial times

published Chinas list of the top ten international brands award, Lenovo in second place, and

in current Chinese enterprise in the international ranking of leading brands,Lenovo still ranked

second.After acquisition of the IBM PC ,Lenovo fi rst of all is to use the dual-brand strategy.

LENOVO popularity is relatively abroad, but THINK is very well known abroad. So,

LENOVOs strategy is to enhance brand visibility in a foreign country, with the help of IBM

brand explore the Copyright Canadian Academy of Oriental and Occidental Culture 88

Analysis of Lenovo Globalization Strategy and Enlightenment to Chinese Enterprises

international market, the THINK brand construction Center is to improve its reputation. And

Lenovo began to try to play down the IBM trademark, it is Lenovos ultimate goal that raised

LENOVO brand and play down the IBM trademark at the global.


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Global Marketing Strategy

Lenovo in order to achieve the goal from China brand to international brand, first of all, choose

to become a sponsor of the Olympic Games. Because the Olympic games partners, especially

the top sponsors, Lenovo may through a variety of ways to obtain global attention on the

Olympic games ,and to achieve branding more convenient on many occasions. IOC top sponsor

global partners a total of 11, Lenovo became one of the fi rst enterprise of China. In Turin Winter

Olympics, Lenovo planned a series of brand promotion activities. Product promotion on the one

hand, and on the other hand is a whole brand marketing. Sponsor the Olympic Winter Games,

Lenovo has allround display their strength, also is more recognized by own strength. In addition,

Lenovo opening up world markets by international sports star endorsements, as well as

cooperation with famous events. 2006 football World Cup, Lenovo signed Brazil star

Ronaldinho as agents of new products. After the contract signing Ronaldinho, in some emerging

markets, such as India, Ronaldinho endorsements by LENOVO 3,000 laptop sales growth almost

was 100%. From these data, Ronaldinho endorsements infl uence on Lenovo brand and market

lead to a substantive breakthrough. The same year, Lenovo and NBA signed a severalyear global

marketing co-operation agreement, both in cooperation between marketing in China and USA,

Lenovo will have the right to use on the NBA Logo and star image on the own product, also with

NBA star come to China, NBA China Games and other activities for marketing to China. After

this series of sports marketing, to enhance Lenovos brand image and spur business growth,

improve employee morale.

Globalization Intellectual Property Strategy

In the research and development stage, Lenovo isnow running technical innovation system II,

stronglysupporting the technology transfer so that it becomesmore smooth. Lenovo Research

Institute, the Center forsoftware design and industrial design center, a fi rm-levelinnovation

platforms form the fi rst level of the platform,starting point of research and development is

focused onthose technology that can play a key role in the futuredevelopment of the enterprise,


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and for the continuingvalue of the enterprise technology; And research anddevelopment

institutions of the business unit level is thesecond-level platform, complete the relevant

technologyapplications, products, technology is within one year ofthe study. Two-level research

and development, undertogether with the companys long-term strategy andshort-term patent

strategy, achieve interaction betweentechnology and market. In the course of research and

development, Lenovo implemented a strict managementsystem of intellectual property.

In international trade, purchase of existing intellectual property rights of others is common form

of international technology transfer and intellectual property strategy. Lenovos acquisition to

IBMs PC business is mainly to get the IBM brand and core technology of IBM notebook.

Through mergers and acquisitions, Lenovo has not only a high-quality research and development

team of more than 2000 people, won the worlds most advanced PC technology, and have more

than 5,000 patents, resulting in the huge innovation resources for enterprises in a short

period of time. Lenovo as the leader of Chinas IT industry, it has been through cooperation

between upstream and downstream enterprises in industry, full implementation of intellectual

property rights protection. On April 18, 2006, Lenovo and Microsoft enter into genuine operating

system authorization agreement, amounting to more than US $ 1 billion, is one of Chinas

largest-ever contract of intellectual property rights. This initiative has opened up an effective

way to block piracy and protect intellectual property rights, plan is implemented in just two

months, Lenovo supporting sales of 600,000 set of Microsoft operating systems. At the same

time, Lenovo purchases up to about $ 10 billion for Microsoft in global.

LENOVO GLOBALIZATION BRING ENLIGHTENMENT TO CHINA

Significance of Chinese Enterprises Globalization Strategies


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As Chinas economy technology development level raising, and globalization strategies for

Chinese enterprises is dominated by Chinese companies, is a transnational integration model of

service in Chinas corporate strategy. After the Chinese economy develops to a certain stage, in

terms of market development space, optimize the industrial structure, access to economic

resources, to seek technical sources, also breakthrough trade protection barriers, cultivation of

Chinese large multinational companies with international competitiveness, globalization is an

inevitable option. In addition, after China joins the WTO, both from the need for national

development strategies, improve international relations, or from Chinas foreign exchange

reserves, part of the economic, technical and managerial capacity of the enterprise have the basic

conditions for the implementation of the global strategy. Chinese businesses need to continue to

boom , Chinese enterprises must adopt 89 Copyright Canadian Academy of Oriental and

Occidental Culture SUN Jing (2012). Canadian Social Science, 8 (2), 86-89 a global strategy,

and eventually through the globalization strategy of China enterprises, also will be become the

most successful companies in China


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CHAPTER-2

LITERATURE

REVIEW


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LITERATURE REVIEW

Consumer Behaviour Christopher (1989) studied the shopping habits of consumers to form an

idea of whether or not the store concepts, product ranges and strategies of the companies are

appropriate towards consumer requirements. He believed that consumer behaviours are

unpredictable and changing continuously changing; while trying to under try to understand how

individual or group make their decision to spend their available resources on consumption-

related items. These are factors that influence the consumer before, during, and after a purchase

(Schiffiman and Kanuk, 1997), for example, feedback, from other customers, packing,

advertising, product appearance, and price (Peter & Olsonetc, 2005).

The essence of this approach is critical for organisational success, so that they can have a better

understanding of their customer behaviours (Solomon et al., 2006). The physical action or

behaviour of consumer and their buying decision every day can be measured directly by

marketers (Papanastassiu and Rouhani, 2006). For that reason many organisations these days are

spending lot of their resources to research how consumer makes their buying decision, what they

buy, how much they buy, when they buy, and where they buy (Kotler, Amstrong, 2001). To get

a well coherent result, organisations normally looked at these behaviour base their analysis on

difference conceptions; whether customers buying behaviour were measured from different

perspectives, such as product quality and better service, lower price structured etc (Papanastassiu

and Rouhani, 2006)

Different theories and researchers have claimed that when organisation fully meet all aspects of

its customer needs, the result enhances their profitability (Chaudhuri, 2006), and also enable

them to develop a better tackling strategies for consumer (Asseal, 1998). Possibly, the most

challenging concept in marketing deals with the understanding why buyers do what they do and

what method or philosophy are they using to evaluate the product after the transactions and what

might be the effect on future transaction (Schiffman, 2004). The reason why marketer chooses to

learning about consumers buying behaviour is, from a business perspective; to be able to be

more effectively reach consumers and increase the chances for success (Sargeant & West, 2001).


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Therefore the field of consumer behaviour has take a tremendous turn in the commercial world

and became the fundamental concepts of achieving company goal (Schiffman and Kanuk, 2007).

More recently, different researchers and author have given their definition and meaning of

consumer behaviour. For Michael R. Solomon (2001) consumer behaviours typically analyse the

processes of group selected or individual purchases/dispose of product, service, concept or

experiences to satisfy their need and desires. Additionally, Kotler (1996) suggested that

consumer behaviours have a huge impact in a firm marketing decision making process every

year. There is a risk that what a consumer does will inflict on his or her behaviour and generate

consequences. (Snoj, Pisnik Koda & Mumel, 2004). The user and the purchaser can be different

person, in some cases; another person may be an influencer providing recommendations for or

against certain products without actually buying or using them (Solomon 1999; Solomon et al.1999).

In this case, most of the large consumer electronics retailers tend to gathered more information

about customers motivating factors and what influences their buying behaviours Solomon &

Stuart (2000).

To get in-depth understanding consumer behaviour concepts will gives us an idea on how its

plays significance role in our life and in the whole trend of business profit to various firms whichwill allow the researcher to get the analysis and determine product positioning, develop the

message and targeting strategy in order to reach to the market (Holskins J, 2002). Consumer

behaviour involves lot aspects, such as;

Complex Buying Behaviour

This kind of buying behaviours significantly involved the consumers when making a purchase

decision. This kind of buying behaviours demand consumer to highly involve within the process.In case of high involvement, consumers distinguish salient differences among the competing

brands (Kotler, Wong, Saunders, Armstrong, 2005). This phenomenon is particularly essential

for Dixons consumers to highly involve, and engage in extensive research about the product

category and make a good purchase decision about the firm own manufacturing products, in case


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they invent a new technology electronics products or audio-video equipment that is too

expensive.

Dissonance reducing buying behaviour

This type of buying behaviour also has high consumer involvement. In terms of expensive and

infrequent purchase, consumer also undergoes reducing dissonancy behaviour. It is extremely

difficult for consumers to differential among brands in this type of buying behaviours (Kotler,

Wong, Saunders, Armstrong, 2005). Differentiating Dixons electronics products/equipments in

the same store from PCWorld or Currys is a daunting task and consumer buying these products

may encounter dissonance reducing buying behaviour, as electronics are usually expensive and

self-expressive. Consumer may easily assume that the available electronics brands in the

store/market within a certain price range to be of the same quality. Then if the product does not

meet customers expectations, it will result to consumer to experience post purchase dissonance

(after sales discomfort) (Kotler, Wong, Saunders, Armstrong, 2005).

Habitual Buying Behaviour

Contrariwise, in this type of buying behaviour consumers have lesser levels of involvements. It

implies that consumer do not have to bother to retrieved information about the available products

and brands in the market. So therefore, there are no potential differences between the different

brands. Whether this factor will have damaging effects on Dixons will be analyse at the findings

and analysis chapter below. Because of the less level of involvement, in habitual buying

behaviour consumers dont often go to the stores to purchaseproduct, (Kotler, Wong, Saunders,

Armstrong, 2005).


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However, some believed that if the consumer persistently purchasing the same product

repeatedly, it becomes habit and their mindsets and perceptions changes overtime about the

brand and the provider (Cohen and Manion, 1987). This conception will portray the consumer to

have unconscientiously developed a brand loyalty to that particular brand due to the consumer

regular buying habits (Cohen and Manion, 1987).

Var iety Seeking Buying Behaviour

This type of consumer level of involvement is low. However consumer may became critical in

terms of brand differences. Additionally, consumer may easily switch from PCWorld to Currys

i.e. from one brand to another. The consumers can now have beliefs about the various brands and

choose a brand without much evaluation. But they evaluate that product at the time of purchase.

In this high technology world, consumer switches their brands not because of dissatisfaction but

because of that enormous trend of technological equipment (Aaker, 1991).

1.2 Decision making

The concept of decision making perceived by buying behaviour as a problem-solving activity

that consumer undergo to solve different problems. The stages include; need recognition, striving

for information, evaluates the alternative, purchase decisions, and post-purchase evaluations.

Consumer decisions making can sometimes be confusing and relate to many ideas and beliefs.

There are numerous perspectives of consumer decision making that include the cue utilisation

theory, value perspective, emotional perspective, and information processing perspective.

Value perspective

This emphasises a trade-off circumstances (Lunn et al, 1997). The common value terms often

involve in the trade-off between quality and price, which also may also be defined the value-for-

money between quality and price, which also may defined the value-for-money perspective

(Change and Wildt, 1994; Hansen, 2001; Sweeney and Soutar, 2001). Zeithaml (1988) and Levy

(1999) purpose that consumers are value driven. Zeithaml (1988) claims that


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customers perceived value may be seen as a reacting of the overall evaluation of the

consumption of a product or service based on perceptions of what is received and what is given.

On the other hand, the value emerges partly from what consumers perceive they are receiving

and partly from what consumers perceived they are giving.

Moreover, Blackett and Robins (2001) consistently said that the key drivers of demand for

products are awareness/familiarity, perceived quality, sales quality and price. These tool drivers

influence the perception of customer in term of the decision making. .

Cue util ization theory

This phenomenon allowed consumer to judge the quality and multiplicity of different productwhen deciding what to purchase and how many. Hansen (2005) opined that, perhaps it might be

extremely hard for consumers to evaluate the essence of different in quality aspects in relation to

each other and in relation to requirement or intention to consumer the products.

This has led consumers to encounter instabilities when making judgements about product

quality, but may not have sufficient of time or the motivation to the considered products

comparative. Attempting to overcome their uncertainty and the shortage of information,

following the cue utilization theory (Olson and Jacoby, 1972), consumers may select one or

more indicators (cues or stimuli) to help their judgement of the product quality. A number of

cues are studied in many researches. In judging the product quality, these cues can be used to

indicate, including country of origin (Eliot and Cameron, 1994), product composition (Olson,

1972), brand name, store name (Dodds, 1995) and price (Shapiro, 1973; Brooker et al.,

1986). As mentioned in the cue utilisation theory, consumers try decrease risk by applying cues

(e.g. brand name, price, colour, advertising, etc) as a way of determining the service or the

product quality. Thus, the reliance on one or one or more cues is a risk-reduction strategy

(Hansen, 2005).

Dawar and Parker (1994) depicted that cues assist consumers to determining the quality of the

product when there is a need to reduce the perceived risk of purchase and when consumer

involvement is low. Low-involved consumers use simple decision ways or indicators in their


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assessments to the quality or the overall performance of a product. In contrast, the behaviour of

high-involved consumers are analysed and described on the basis of the information processing

perspective.

I nf ormation processing perspectiveThe information processing perspective indicated that consumer act as problem-solving

cognitive individual researching for a reasoned decision (Kassarjian, 1981).

Dubois (2000) describes that consumers are expected to apply their cognitive resources in

creating beliefs (cognitive part) about the attribute of a product, which may result of the

progression of an overall feeling (affective part) in the sense of liking/disliking product.

Consumers with a positive attitude to a product are expected to be more willing to consider

purchasing in (cognitive part) than consumers with less positive attitude to the same product.

Emotional perspective Emotion is not the response of an evaluation process in buying a product,

but it is an effective reaction to consumers perceptions of stimuli in the environment. It

represents an effective view of consumer behaviours and it is caused by consumers appearance

to particular stimuli (Bagozzi et al., 1999). Zajonc and markus (1982) discussed that the

traditional cognitive view should be complemented by determining consumers affective

responses, like the emotional responses to the perception and assessment of products and

experiences. Consumer involvement also influences to emotion perspective and product

evaluations.

Peter et al (1999) debated that if product involvement is high, people may experience stronger

affective reaction such as emotions and stronger feelings.

1.2.1 Additional Factors On Decision Making

There are many other causes that have tremendous effect on consumer decision making process,

such as perceptions and attitudes.

Perceptions


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Perceptions take consumers to the process of selecting, organising, and interpreting stimuli to a

meaningful and coherent picture of the world (Schiffman and Kanuk (2007).

Because there are so many marketing stimuli, consumers need to limit the information of product

that will have an effect on the decision making. Bolfing (1988) also purposed that there are

plenty of customers that have perceptual vigilance which is the stage of being screening

information that is relevant. On perception process, customers express their own final perception

using their consuming behaviour.

Attitudes

In the purchase stage, there is attitude in the consumers mind. Without attitude, an alternative

brand may be purchased (Fazio et al. 1989). Good attitude towards the product might move to a

purchase decision. Attitude is connected to behavioural intention and buying forecast (Fishbein,

1980). Attitude is what we can feel about a concept that could be a person, a brand, a category,

an ideology or other things we can think about and applying feeling into (East, 1997). Many

writers agree that attitude is an evaluation. Attitudes are individuals broad evaluations of a

concept or subjective assessments of an idea (Kotler and Armstrong, 2001). Attitude can be the

most important factor in consumer decision process because they theoretically conclude that a

consumer evaluation of an object (product, brand or company) represent positive or negative

feeling and behavioural towards the object (Belch and Belch, 1998). Attitude influences each

stage of the buying decision, as the simple assumption that attitudes causes behaviour to ignores

other determinants such as personality traits, self-image, motives, behaviour and the social and

physical setting in which the action occurs (Foxall, 1998).

1.3 Consumer Buying Behaviour

Consumer purchasing behaviour tends to determine what it exactly is that drives consumers

when making buying decisions. Many studies have been performed including the above

mentioned with regard to consumer behaviourism. Three theories those understand the

consumers buying decision are; radical, teleological, and picoeconomics behaviourism (Foxall,


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2007). Even though, all three theories take their own the consumers choice, they still plays

complementary role with consumer behaviour.

1.3.1 Radical Behaviour ism

According to Foxall, (2007) refer to the radical behaviourism as Behavioural Perspective Model

(BPM), see diagram below.

On the one hand Figure 1, depicts two inputs of consumer behaviour, namely the behaviour

setting and the learning history. These two input variables can be seen as the consumers frame

of reference when making a buying decision. The behaviour setting consists of all the physical,

social and temporal elements that signal the likely consequence of behaving in a particular way

(Foxall, 2007: 136).

The learning history refers to past experiencesboth positive and negativeof the consumer.

Additionally, it accounts for personal factors influencing the consumers choice, such as: the

ability to pay, consumers mood, impulsive buying and deprivation. On the other hand, three

possible consequences of consumer behaviour are depicted in Figure 1, respectively; utilitarian

reinforcement, informational reinforcement and aversive consequences. Utilitarian reinforcement

refers to the satisfaction consumers perceive when buying, owing and consuming economic

goods. Informational reinforcement as an outcome of consumer behaviour relates to the feedback

on the purchase which connects the consumers choice to the social status that comes with it.

Of course the informational reinforcement outcome is not applicable to every product that can be

bought, as one will not obtain any social status from buying nails for example, on the other hand,

people are often judged by the car they drive, making cars an excellent example of the

informational reinforcement. Lastly, aversive consequences can be described as the costs of

consuming; having to wait in line, not being able to buy alternative products, relinquishing

money, etc. (Foxall, 2007). Based on the level of informational and utilitarian reinforcement a

grid can be composed that divides consumer behaviour in four broad categories, Maintenance

purchases are characterized by necessity; therefore this category can be compared to the

physiological level in Maslows hierarchy of needs, which stands for the basic requirements for

human survival (Maslow, 1943). Accumulation purchases refer to consumer behaviour related to


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certain kinds of collecting, saving and instalment buying. Hedonism or pleasure purchases refer

to the consumption of popular entertainment.

Finally, accomplishment purchases reflect ones social and economic success, such as:

acquisition and conspicuous consumption of status goods, displaying products and services that

signal personal attainment (Foxall, 2007: 136). Foxall (2007) found that green consumer

behaviour cannot be linked to a specific category but can be found in any of the four categories.

1.3.2 Teleological Behaviouri sm

Teleological behaviourism proposes an interpretation of complex behavior based on final

causes, i.e., the consequences of behaviour (Foxall, 2007: 132). Final causes extend outwards

from the person who behaves, each fitting in the next pattern (Foxall, 2007). Hence, making a

sum fits into doing homework, which fits into taking the math class, which fits into studying,

which in turn fits into providing yourself with a good future. Every step (cause) is wider than the

previous one and therefore more embracing, making each cause more final (Rachlin, 1994). The

process of finding the causes of behaviour is one of fitting the behaviour into an ever- increasing

molar pattern of response and consequences (Foxall, 2007: 132).

Rachlin (1994) states that mind equal behaviour and sequences or patterns of behaviour rather

than single acts. This implies that mental phenomena such as intentions, attitudes as well as pain

are all defined as extended patterns of behaviour. When pain is taken as an example, people

know that somebody else is in pain because of the behaviour the other person emits: grimacing,

groaning, holding his arm, etc. (Foxall, 2007). A whole series of final causes may each be

nested within one another, diffused over time, the whole sequence being necessary to a full

explanation of the behaviour that produced them (Foxall, 2007: 132).

Rachlin (1994) points out that in order to understand the full complexity of behaviours

consequences, a significant elapse of time may be required, as the events that explain behaviour

are temporarily extended, it will take time for the whole sequence to be completed and with that

understand behaviour. When it comes to consumer buying behaviour, teleological behaviourism

helps understanding consumers brand choice (Foxall, 2007). Teleological behaviourism helps to


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understand why consumers only consider only a few brands out of all the brands they can choose

from when making a buying decision (Foxall, 2007).

Consumers will only consider brands of which they have direct use-knowledge and which

products characteristics show the greatest match compared to the consumers spending power.

Teleological behaviourism also helps understanding why consumers change patterns and decide

to buy another brand than they usually do. It does so by acknowledging the conflict consumers

can face between utilitarian reinforcement and informational reinforcement.

1.3.3 Picoeconomics

Both radical behaviourism and teleological behaviourism help to understand consumer

behaviour, but both are not complete explanations of it, especially when it comes to breaking of

patterns. Up to a certain extend teleological behaviourism provides an explanation for the

breaking of patterns, as explained in the previous paragraph.

However, picoeconomics provides a much better explanation when it comes to intertemporal

bargaining. The concept of picoeconomics acknowledges that a persons choice is based on more

factors than just the persons preference (Foxall, 2007). Picoeconomics apply the concept of

intrapersonal interests to explain the conflict between behaviours which occurs from

intertemporal rewards (Foxall, 2007). How an individual prioritizes the rewards available

depends on personal rules. However, seldom such a trade-off between short-term (smaller

sooner) and longterm (larger later) is isolated from other choice conflicts (Foxall, 2007).

Therefore an individual might adopt a strategy in which he/she bundles all the short-term and

long-term rewards, also known as reward bundling, which is a means of self-control. Self-control

results from the consumers perspective that a single choice is possible between a bundle of

long-term rewards and a competing bundle of short-term rewards (Foxall, 2007). Of which, as

Foxall (2007) points out, directly relates to green consumer behaviour. The benefits of the long-

term choice are always greater than the benefits of the short-term choice, to make a rational

decision in which the total rewards obtained is the greatest is a matter bringing (imagining) the

long-term rewards forward in time.


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According to picoeconomics there is a conflict of interests brought about by the differences in

situation between the point at which an intention is expressed and that at which the opportunity

to behave emerges (Foxall, 2007: 141). This conflict originates due to incentives available to

the consumer at the moment of purchase (Ainslie, Hofmeyr & Ross, 2010). When the

opportunity to behave emerges the consumer has two choices, either he stays loyal to his buying

pattern, or, the consumer changes his pattern based on a variable presented by the current

behaviour setting.

A customer who has the intention to buy one particular electronic products/bran, might be

tempted once entering the store to purchase either Dixon manufactured product or alternative

that are on sales instead of the more expensive, also known as preference reversal. This is a

typical situation where the consumer prefers a poorer pay-off (which might be temporarily)because it is available sooner, than a better long-term pay-off, which would be better for the

consumer. Consumers apply this behaviour occasionally in the case of brand choice, but much

more often at inter-product choices (Foxall, 2007).

This leads to the question why consumers apply this kind behaviour. Foxall (2007) argues that

just as in radical behaviourism and teleological behaviourism, the consumer tries to maximize

the totality of reinforcement available to him, both informational as utilitarian reinforcement.

However, it need to be noted that consumers often do this with a short-term perspective and

therefore maximize their reinforcement on each shopping trip, which might be not the maximum

reinforcement that can be obtained when a longterm perspective is applied. The dilemma

consumers face is a conflict between informational reinforcement (maximizing the price) and

utilitarian reinforcement (ensure an acceptable level of quality). However, this does not mean

that consumers will always buy the cheapest product available. The usual consumer strategy is

to: (1) select a suitable consideration set on basis of both reinforcements and experience; and (2)

usually selects the least expensive option within the consideration set (Foxall, 2007).

1.4 Consumer Decision


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In electronics markets the consumer will make the decision to purchase technological products to

fulfil and satisfy their desire. Also, there are several factors that can influence consumer to select

which product they will use for provide their needs, such as;

1.4.1 Social in fl uences

According to Boone and Kutz (2006) they have stated on this point that in every consumer

belong to the each social group. As earlier mostly experience can come from a group of family,

neighbourhood groups, work and community. Also, a group membership can influences

individuals purchase decision by values, attitude and behaviour that a group deems appropriate

for its member. Hence, many consumers are often strongly making decision by people who the

consumer knows and trusts.

1.4.2 Economic Man

Many marketers understand consumer behaviour from economics. Especially, the assumption

between people and rational in their behaviour by identified the behaviour that relating to price,

consumer income, consumer taste, and quality of products. Therefore, the demand of medicine is

positivity associated with low price of medicine, high price for products substitutes (high level of

consumer income, high education, high tastes). Also, the quality of products included with

services.

1.4.3 Personal I nf luences

Each person is driven by variety of desires and pressures that influence behaviour by values,

attitudes, personality and beliefs. This could help marketer expected the personal influence from

the field of psychology.

Personality and self concept that in each persons distinct personality influences his/her buying

behaviour because the personality refers to unique psychological in each person. Thus, personal

characteristics have relative to buying behaviour on our decision making and personality can be

useful for marketer to analysing consumer behaviour for certain products or select their choice


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(Armstrong and Kotler, 2008). Buying Behaviour The marketers can better predict how

consumers will respond to marketing strategies. Also, they need to understand the decision

processes and acts of people involved in buying and using products

Solomon (1991) stated that a consumer decision is a response to a problem. Schiffman and

Kanuk (1978) depicted that decision is the selection of an action from two or more alternative

choices. It means that there must be more that one alternative choice whenever a customer is

making a decision. Kotler (1996) pointed out that the consumer buying process is the sum total

of alternative, purchase decision, and purchase evaluation.

1.5 Decision Making Process

The decision making process can be used to analysed consumer purchasing decision of certain

product that required enormous level of engagement from a customer (Kotler & Armstrong,

2002). The diagram below gives a brief explanation of consumer decision making process.

Five-Stage Model of the buying process:

1.5.1 Need recognition

Need recognition is the leading thoughts that intercede between the confusing touch incustomers mind, simply put; the consumer desire state and actual state (Schiffman, Lazar &

Hansen, 2008). The actual state mainly focused on consumer who encounters difficulty with

product that does not bring desire satisfaction, particular if the customer desire state is yearning

for something new, the aspiration to minimise the gap between the customer desire state and

current situation (Kotler & Armstrong 2002).

1.5.2 Information search

Consumer searches for information after they have recognised the need. In cases where

customers drive is strong, information is searched externally and more extensively (Bruner &

Pozmal, 1988). When a problem has been indentified the consumers tend to engaging

information search, for the purpose of reducing the risk of making a wrong choice. Thus, such


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a consumer will have a high degree of cognitive activity and will make strong efforts in

evaluating and comparing of products before making decision (Bruner & Pozmal, 1988).

And cues, which are important in low involvement, can be only as pieces of information in an

information processing (Steenkamp, 1989). The products can be important in one of the elements

to influence consumer to select the choice and acquisition process. On the other hand, as noted

by some authors including Hupfer and Gardner (1971) and Kassarjian (1978), not all purchasing

decisions involve equally the same high level of customer interest and engagement. However,

Hoyer (2984) suggested that it is impossible to directly apply these theories to every aspect of

decisions making.

1.5.3 Evaluating alternatives & Purchase

Alternatives valuations are significantly different from large product categories (Kotler &

Armstrong, 2002). For a better understanding in a certain product category, customers use a

variety of criteria in deciding which store to visit and which product to buy, including selection,

price, quality, service, value, and convenience (Boone and Kurtz, 2006). According to Kotler

(1996), consumer use store and product attribute varies among consumers. Management must,

however, know which attribute consumers consider and the important the consumer places on

them. Evaluation of alternative that consumer can make decision can be made from price,location, quality and pharmacists relationship to choose a pharmacy (David Holdford, 2007). The

evaluation process is particularly helpful in influencing customers, particularly, when customers

are familiar with the desire product, their purchase behaviour tends to be quite small, consisting

on average between three and five brands (Schiffman et al., 2008).

1.5.4 Purchase Decision

Bruner and Pomazal (1988) argue that a purchase is done by a consumer after s/he first

recognises some kind of problem, and thus the purchase is a solution to the experienced problem.

Further, Bruner and Pomazal (1988) state that to be able to conduct a purchase the problem

recognised needs to be defined. Consumer tend to choose to buy the product byconsidering

characteristics such as location, price assortment personnel, store image and service etc (Boone

and Kurtz, 2006).


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In executing a purchase intension, there are five purchase sub decisions, which consumers may

make up (product choice, brand choice, dealer, purchase timing, and purchase amount (Kotler,

1996). In order words consumer may answer the question of which product to buy, or might as

well form a purchase intention to buy the most preferred brand. Sometimes consumers may have

to choose which dealer or store they will go for purchase. In some cases, consumers may be

willing to accept high prices for electronically products if the quality of the product is perceived

to be of high quality.

1.5.5 Post-Purchase evaluation

In most post purchase behaviours, customers tend to evaluate purchasing through a trail or

experience some level of satisfaction or dissatisfaction. If the product meets his or her

expectations, the consumer is likely to satisfied, but if it falls short, the consumer is likely to be

dissatisfied. Thus, customers may evaluate the product prior to their preconceived expectations

(Schiffman (2008). An outcome of the evaluation is either the performance that matches

expectations, that performance which exceeds expectations or that the performance below

expectations. The amount of dissatisfaction depends on the size of the different between

expectations and performance (Kotler, 1996).


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OBJECTIVE OF THE STUDY:

To find out consumer behavior of Indian and Chinese products.

To study brand awareness for Lenovo in the market place.

To produce valuable inputs for the Lenovo from the Indian market with respect toelement of marketing mix, i.e., Product, Price, Place and Promotion.

To Study Lenovo competitors marketing mix strategies, and then comparative mappingwith other major appliances players in the market, finding loopholes and building

effective marketing mix strategy forLenovo computers segment with respect

To analyze right strategic direction for Lenovo firstly by the way of studying currentimage of the brand Lenovos , secondly through market mix mapping.

It gives valuable inputs regard to difference that the brand is dealing with their competitors. Like

if HCL, HP, DELL, SONY are present in a segment, satisfying same customer need, what is the

difference in terms of product offering, technology of the products, pricing strategies of the

competitors. This is also suggests competitors direct monetary pricing benefits to distribution

intermediaries, i.e. distributors, direct dealers, dealers, and finally to the customers. Which

clearlyidentifies the different requirements that customers look to be satisfied and at what prices.

These different requirements can then be used to develop the alternative strategies that need to be

implemented, to better access the segments and tune the product offers to suit the customer

requirements and to the level of competition.


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CHAPTER-3

RESEARCH

METHDOLOGY


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RESEARCH METHODOLOGY:

The system of collecting data for research projects is known as research methodology. The data

may be collected for either theoretical or practical research for example management research

may be strategically conceptualized along with operational planning methods and change

management. Some important factors in research methodology include validity of research data,

Ethics and the reliability of measures most of your work is finished by the time you finish the

analysis of your data.

Descriptive Research

1-Descriptive research, also known as statistical research, describes data and

characteristics about the population or phenomenon being studied. Descriptive research

answers the questions who, what, where, when, "why" and how...

Although the data description is factual, accurate and systematic, the research cannot

describe what caused a situation. Thus, Descriptive research cannot be used to create a

causal relati onship, where one variable affects another. In other words, descriptive research

can be said to have a low requirement for internal validity. The description is used for

frequencies, averages and other statistical calculations. Often the best approach, prior to

writing descriptive research, is to conduct a survey investigation. Qualitative research often

has the aim of descriptionand researchers may follow-up with examinations of why the

observations exist and what the implications of the findings are. In short descriptive

research deals with everything that can be counted and studied. But there are always

restrictions to that. Your research must have an impact to the lives of the people around

you.
https://www.tutorsindia.com/research-methodology-help.htmlhttps://www.tutorsindia.com/http://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statisticshttps://www.tutorsindia.com/https://www.tutorsindia.com/research-methodology-help.html


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Data collection Method:

(a) Primary Data Collection Method: Survey method was used for primary data collection. We used questionnaire as an instrument for survey method. Structured questionnaire. Type of questionnaire: Open ended and closed ended.

(b) Secondary Data Collection method: Reference books. Internet.

Sampling Detail

1. Target population: The population for this research study consists of theresidents of Dehradun.

2. Sampling unit: In this study the sampling unit is individual consumer.3. Sample size: 100 consumers.

1. Primary Data Collection

For Product: Customer survey through use of a structured questionnaire.

For Price: Direct meeting with the dealers to know other companies pricing, by collecting and

analyzing prices for customers (MRP) dealers (D.P),direct dealers, and distributors.

For Place: Obtaining feedback from the existing dealers of Lenovo and other consumer

electronic dealers in the DELHI through direct interviews. To establishing and implementing


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processes for obtaining ideas, Information and insights from the dealers regarding the Haier

marketing proposition for refrigerators and washing machine, after that evaluating the feedback,

assessing the benefits and any risks associated with possible options, and making

recommendations towards enhancing the LENOVO marketing proposition especially place or

in other words dealer expansion in DELHI city.

Promotion: Observing the number of marketing activities done by the other companies by

keeping the record of activities done by them, and also attending the activities to feel the

difference between the Lenovo marketing activities.

2. Secondary Data Collection through company websites, journals & annual reports.

3. Analyzing and interpretation.4. Mapping with respect to other competitors in the market in computer systems

category.

5. Findings and conclusion can be drawn.. HYPOTHESIS

Hypothesis testing is used to analyze the difference between the sample statistics, and

hypothesized population parameter. The hypothesis testing starts with the formulation of a

hypothesis made about a population parameter. Then for testing this hypothesis sample data is

gathered. A sample mean (or a relevant test static) is determined. Sample statistic is compared

against the hypothesized population parameter.

HYPOTHESIS USED :- There are two types of hypothesis: (a) Null Hypothesis and (b)

Alternative hypothesis.

Null hypothesis (Ho): There is a positive perception regarding Indian products in theconsumers mind relative to Chinese products.


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Alternative hypothesis (H1): There is no positive perception regarding Indianproducts in the consumers mind relative to Chinese products.

TEST OF SIGNIFICANCE:

One way anova is used to test the significance of the hypothesis.

One-way ANOVA in SPSS

Introduction

The one-way analysis of variance (ANOVA) is used to determine whether there are any

significant differences between the means of two or more independent (unrelated) groups(although you tend to only see it used when there are a minimum of three, rather than two

groups). For example, you could use a one-way ANOVA to understand whether exam

performance differed based on test anxiety levels amongst students, dividing students into

three independent groups (e.g., low, medium and high-stressed students). It is important to

realise that the one-way ANOVA is an omnibustest statistic and cannot tell you which

specific groups were significantly different from each other; it only tells you that at least

two groups were different. Since you may have three, four, five or more groups in your

study design, determining which of these groups differ from each other is important.

Assumptions

When you choose to analyse your data using a one-way ANOVA, part of the process

involves checking to make sure that the data you want to analyse can actually be analysed

using a one-way ANOVA. You need to do this because it is only appropriate to use a one-

way ANOVA if your data "passes" six assumptions that are required for a one-way

ANOVA to give you a valid result. In practice, checking for these six assumptions just adds

a little bit more time to your analysis, requiring you to click a few more buttons in SPSS

when performing your analysis, as well as think a little bit more about your data, but it is

not a difficult task.


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Before we introduce you to these six assumptions, do not be surprised if, when analysing

your own data using SPSS, one or more of these assumptions is violated (i.e., is not met).

This is not uncommon when working with real-world data rather than textbook examples,

which often only show you how to carry out a one-way ANOVA when everything goes well!

However, dont worry. Even when your data fails certain assumpt ions, there is often a

solution to overcome this. First, lets take a look at these six assumptions:

Assumption #1: Yourdependent variable should be measured at the interval orratiolevel (i.e., they are continuous). Examples of variables that meet this criterion include

revision time (measured in hours), intelligence (measured using IQ score), exam

performance (measured from 0 to 100), weight (measured in kg), and so forth.

Assumption #2: Yourindependent variable should consist oftwo or more categorical,independent groups. Typically, a one-way ANOVA is used when you have three or

more categorical, independent groups, but it can be used for just two groups (i.e., an

independent-samples t-test is more commonly used for two groups). Example

independent variables that meet this criterion include ethnicity (e.g., 3 groups: Caucasian,

African American and Hispanic), physical activity level (e.g., 4 groups: sedentary, low,

moderate and high), profession (e.g., 5 groups: surgeon, doctor, nurse, dentist, therapist),

and so forth.

Assumption #3: You should have independence of observations, which means thatthere is no relationship between the observations in each group or between the groups

themselves. For example, there must be different participants in each group with no

participant being in more than one group. This is more of a study design issue than

something you can test for, but it is an important assumption of the one-way ANOVA. If

your study fails this assumption, you will need to use another statistical test instead of the

one-way ANOVA (e.g., a repeated measures design).

Assumption #4: There should be no significant outliers. Outliers are simply single datapoints within your data that do not follow the usual pattern (e.g., in a study of 100

students' IQ scores, where the mean score was 108 with only a small variation between

students, one student had a score of 156, which is very unusual, and may even put her in

the top 1% of IQ scores globally). The problem with outliers is that they can have a


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negative effect on the one-way ANOVA, reducing the accuracy of your results.

Fortunately, when using SPSS to run a one-way ANOVA on your data, you can easily

detect possible outliers. In our enhanced one-way ANOVA guide, we: (a) show you how

to detect outliers using SPSS; and (b) discuss some of the options you have in order to

deal with outliers.

Assumption #5: Yourdependent variable should be approximately normallydistributed for each category of the independent variable . We talk about the one-way

ANOVA only requiring approximately normal data because it is quite "robust" to

violations of normality, meaning that assumption can be a little violated and still provide

valid results. You can test for normality using the Shapiro-Wilk test of normality, which

is easily tested for using SPSS. In addition to showing you how to do this in our enhanced

one-way ANOVA guide, we also explain what you can do if your data fails this

assumption (i.e., if it fails it more than a little bit).

Assumption #6: There needs to be homogeneity of variances. You can test thisassumption in SPSS using Levene's test for homogeneity of variances. If your data fails

this assumption, you will need to not only carry out a Welch ANOVA instead of a one-

way ANOVA, which you can do using SPSS, but also use a different post-hoc test. In our

enhanced one-way ANOVA guide, we (a) show you how to perform Levenes test for

homogeneity of variances in SPSS, (b) explain some of the things you will need to

consider when interpreting your data, and (c) present possible ways to continue with your

analysis if your data fails to meet this assumption, including running a Welch ANOVA in

SPSS instead of a one-way ANOVA, and a Games-Howell test instead of a Tukey post-

hoc test


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CHAPTER-4

DATA ANALYSIS


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1. Which brand's laptop do you owe?a. Apple b. Samsung c. HP d. LENOVO e. Sony

DATA ANALYSIS:-

BRAND 100

APPLE 10

SAMSUNG 20

HP 20

LENOVO 30

SONY 20


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2. If you have your favorite brand, why do you like the brand the most?

a. Good design b. Reasonable price c. Convenient after-sale service

d. Favorable brand image e. Great specs

DATA ANALYSIS:-

10%

20%

10%

20%

20%

20%

Sales

APPLE SAMSUNG HP SONY LENOVO

REASON 100

GOOD DESIGN 20

RASONABLE PRICE 30

CONVENIENT AFTER-SALE SERVICE 20

FAVORABLE BRAND IMAGE 20

GREAT SPECS 10


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3. When you buy a laptop, what is the most important consideration factor?

a. Brand name b. Price c. Specs d. Design e. Others (Specify: )

DATA ANALYSIS:-

GOOD DESIGN

20%

REASONABLE PRICE

30%CONVENIENT

AFTER-SALE

20%

FAVORABLE

BRAND IMAGE

20%

GREAT

SPECS

10%

REASON 100

BRAND NAME 27

PRICE 36


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BRAND NAME

27%

PRICE

36%

SPECS

9%

DESIGN

14%

OTHER

14%

FACTOR

SPECS 9

DESIGN 14

OTHER 14


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4. Which channel did you use when you bought your laptop?

a. The brand's own website b. Online retail stores (Amazon, e-bay, etc.)

c. Electronics retail stores (Best Buy etc.) d. Warehous

Documents

indian vs chinese products