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Design of the Study

Statement of problem: The Indian Cigarette industry is extremely sensitive to excise taxation, which is the single largest element in the price of cigarettes. High taxes on cigarettes compared to other tobacco products have caused a decade long slump in cigarette volumes in India. Thus a project titled brand loyalty of customers regarding cigarette in chandigarh city was conducted to measure change in brand loyalty (here maximum increase in price is 25%), the change in brand loyalty in response to change in income (Maximum 30%), and to study the effect of freebies scheme on brand loyalty.

MAIN OBJECTIVES:
To study the changes in the brand loyalty in response to change in price and income; To study the effect of freebies scheme on brand loyalty. To study the importance that cigarette smokers attach to various attributes (price, taste, filter etc.) while buying. To study the effectiveness of advertisements of a new brand in terms of its ability to attract consumers loyal to other brands.

SECONDARY OBJECTIVES:
To study the effect of non-availability of favorite brand on the brand loyalty of smokers. To study the impacts of new brand (price of which may be less than, equal to or more than the price of their favorite brand) on the brand loyalty of smokers. To study the reasons for starting smoking. To know the role of reference groups in selection of brand of a cigarette.

Methodology

TYPE OF RESEARCH: Descriptive method has been used in this research for the collection of data. As the research is related to the study of consumer behavior, which can more effectively be studied through direct questions, experimental research will not be much effective. Also, considering the time constraint, descriptive research is the most suitable design for this research.

SOURCE OF DATA: To overcome the limitations of incompatibility, obsolescence, and bias, primary data was collected. Considering the time and money constraints, sampling method of data collection was suitable for the project.

DATA COLLECTION METHOD: Data has been collected through questionnaire method. The questionnaire was designed in such a way to cover as many aspects of consumer behavior as possible.

SAMPLE SIZE: Total 100 persons were contacted and interviewed.

SAMPLING: Here study of the consumer behavior of the people of Chandigarh city. Within the city samples were collected from different areas. To reduce the biases this may come through difference in the level of income, attitude, lifestyle etc. of the people in different areas.

SAMPLE DESIGN

AGE-WISE AND INCOME WISE SAMPLE DESIGN

INCOME GROUP (In RS.) <=3000 3001-6000 6001-12000 12000-16000 >16000 TOTAL 12-17 1 3 2 1 2 9 18-24 3 4 10 9 7 33

AGE GROUP 25-40 3 7 8 6 5 29 41-50 2 3 7 2 6 20 >51 1 3 1 2 2 9 TOTAL 10 20 28 20 22 100

Plan of analysis
Different areas were selected of the city to do study so that the place bias could be reduced to the best possible extent. Personal interview was made and got the information as per the questionnaire. To reduce the magnitude of this problem, we selected respondents whom we saw smoking at the shop so that the brand name, expenditure etc. can be verified. Many of questions were designed to cross check the answers of the respondents. The questionnaire was made as comprehensive as possible to cover various aspects related to research. The questionnaires were handed over only to those respondents who showed desire to fill up them on themselves

Limitations of study:
1) Since survey is conducted only in the Chandigarh is means it doesnt reflect whole population (smokers) in country. 2) This survey is done only for males, since female smokers are not socially acceptable. 3) Sample size is very small especially this kind of study sample size should high. 4) The views of the respondents are personal.

5) The sample size selected may not be adequate.

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