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Amway Product Buyer Preferences in Puri

The project report focuses on buyer preferences for Amway products in Puri District, highlighting the importance of customer satisfaction and loyalty in marketing. It includes a comprehensive analysis of the retail industry, marketing strategies, and consumer behavior, supported by data analysis and research methodology. The report aims to provide insights into the factors influencing consumer choices and the overall market position of Amway products.

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0% found this document useful (0 votes)
11 views45 pages

Amway Product Buyer Preferences in Puri

The project report focuses on buyer preferences for Amway products in Puri District, highlighting the importance of customer satisfaction and loyalty in marketing. It includes a comprehensive analysis of the retail industry, marketing strategies, and consumer behavior, supported by data analysis and research methodology. The report aims to provide insights into the factors influencing consumer choices and the overall market position of Amway products.

Uploaded by

shreyabehura91
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

A Project Report On

BUYER PREFERENCE OF AMWAY PRODUCTS IN PURI DISTRICT


CARRIED OUT AT AMWAY PVT LTD
SUBMITTED BY:

ADITYA SUBHADARSHAN
[Link]
MBA (MARKETING & FINANCE)
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
2022 - 2024

UNDER THE GUIDANCE OF


External Guide Internal Guide
PANKAJ KU. BEHERA MR. RAMAKANTA SAHOO

Coordinator manager (MARKETING)

AMWAY, BBSR TITE, BBSR

TEMPLE CITY INSTITUTE OF TECHNOLOGY & ENGINEERING (TITE)

(UNDER B.P.U.T) AT/PO- TARABOI, DIST- KHORDHA, BBSR


DECLARATION

I Aditya Subhadarshan, Regd No.:- 2206299002 of the TEMPLE


CITY INSTITUTE OF TECHNOLOGY & ENGINEERING,
Bhubaneswar here by declared at the project entitled “BUYER
PREFERENCE OF AMWAY PRODUCTS” is my original work and has
not been submitted by any other person.

I also declare that I have done my work sincerely and accurately


even if any mistake or error kept in, I request to point out these errors
and guide me to remove these errors in future. The interim was made
under the supervision of Pankaj Ku. Behera (coordinator). The feasible
suggestion has been only incorporated in consultation with the
supervisor.

PLACE : Puri

DATE: (Aditya Subhadarshan)


ACKNOWLWDGEMENT

First of all I am thankful to Lingaraj Unit, A subsidiary of Amway


Pvt. Ltd, where I was able to prepare this project report.

I express great sense of gratitude to Mr. Pankaj Ku. Behera


(coordinator)for pay his kind support, guidance and cooperation for the
successful completion of this study.

His academic excellence, immense interest, scholarly suggestions


and affable temperament have been the source of inspiration and
motivation which helped me to complete this research work. I want to offer
my sincere thanks to all the staff members of Lingaraj units. I also indebt to
the respondents for their valuable support and cooperation for the
purpose of the study.

I am also thankful to my internal faculty guide special thanks to


[Link] Sahoo, Professor of Marketing to have taken the pains to
guide my project work at all times. Without his help it would be impossible
to complete my project with stipulated knowledge I had.
I express my great sense of gratitude to my caring family and my
friends for their encouragement and moral support which require
completing the study.

Aditya Subhadarshan
Regd no: - 2206299002
PREFACE

In the present scenario we are surviving in the COMPETITIVE WORLD in


the age of GLOBALIZATION. So it is essential to know the practical knowledge
for survive the competitive era. Beside practical knowledge theoretical is also
essential. Both are two sides of a coin.

In the today’s world the sense marketing is regarded as a GLOBAL


MARKETING. Realizing this practical experience is of permanent importance for
all round developing of a person, as a part of the mentioned in our curriculum
for two years of MBA master degree, the student has to undergo practical
training for 45 days.

As the AMWAY PVT. LTD. OF ODISHA, marketing FMCG brands. It is a


great opportunity for me to know not only the manufacturing process but how
their marketing strategy, sales distribution process and last but not the least
what is retailors as well as the consumer behavior towards the brand.

Lastly I want to thank the people who had supported me in the whole process
and my special thanks to my internal as well as External Guide, friends for
their kind support and motivation which helped me to complete my research.
ABSTRACT
Customers are the prime focus of any organization. The most important asset that any
firm, can have is customers. An organization greatly depends on how many
customers it has (customer base) how they buy and how often they buy. Satisfied
customers usually buy more and buy frequently. Loyal customers also act best
promotional source to new customers. They tend to bring in more and more new
customers through word of mouth communication. It improves the market position of
the firm and also the profits. This paper deals with the buyers’ preference of Amway
products in Puri District.

COMPANY PROFILE

Amway (short for "American Way") is an American multi-level marketing (MLM)


company that sells health, beauty, and home care products. The company was
founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada,
Michigan. Amway and its sister companies under Alticor reported sales of $8.9
billion in 2019. It is the largest multi-level marketing company in the world by
revenue. It conducts business through a number of affiliated companies in more than
a hundred countries and territories.

Amway has been investigated in various countries and by institutions such as


the Federal Trade Commission (FTC) for alleged pyramid scheme practices. It has
never been found guilty, though it has paid tens of millions of dollars to settle these
suits.

Directors of Amway private limited are Vinay Kumar Narayan, Rajeev Das
Gupta Anil Kumar Nayak and
Amway Lingaraj units Private Limited’s Corporate Identification Number is
(CIN) U74120DL1995PTC071405 and its registration/GSTIN number is
21AAACA5603Q1ZU . Its Email address is anil_mrc@[Link] and
rahul.sharma1@[Link] and its registered address is Plot No: 813P
Jayadev Vihar, Mayfair Road, Jaydev Vihar, Bhubaneswar Odisha 751013.
[Link] CONTENT PAGE NO

1 CHAPTER-1 :- INTRODUCTION 8

 Retail industry 8

 Retail mix 10
 Types of consumer service 14
 Global marketing 15
 Buying habits 15
 Objective of the study 17
 Scope of the study 17
 Limitation of the study 18
2 CHAPTER-2 :- LITERATURE REVIEW 18

3 CHAPTER-3:- RESEARCH METHODOLOGY 22

4 Chapter-4:- DATA ANALYSIS AND 24


INTERPRITATION
 Percentage analysis 24
 Factor analysis 30
 Regression analysis 35
 Correlation analysis 38
42
 Score analysis

5 Chapter-5:- FINDINGS, SUGGESTION AND


CONCLUSION 43
 References 45
1. INTRODUCTION
Marketing is the process of creating or reorganizing an organization to be successful
I selling a product or service that people not only desire, but are willing to buy.
Therefore good marketing must be able to create a “proposition” or set of benefits
for the end consumer. Shopper or customer that delivers value through product or
services.

1.1 RETAIL INDUSTRY


Retailing involves the process of selling consumer goods or Services to customers
through multiple channels of distribution to earn a profit. Retailers satisfy demand
identified through a supply chain. The term "retailer" is typically applied where a
service provider fills the small orders of a large number of individuals, who are end-
users, rather than large orders of a small number of wholesale, corporate or
government clientele. Shopping generally refers to the act of buying products.
Sometimes this is done to obtain final goods, including necessities such as food and
clothing; sometimes it takes place as a recreational activity. Recreational shopping
often involves window shopping and browsing: it does not always result in a
purchase.

Most modern retailers typically make a variety of strategic level decisions including
the type of store, the market to be served, the optimal product assortment, customer
service, supporting services and the store's overall market positioning. Once the
strategic retail plan is in place, retailers devise the retail mix which includes product,
price, place, promotion, personnel and presentation. In the digital age, an increasing
number of retailers are seeking to reach broader markets by selling through multiple
channels, including both bricks and mortar and online retailing. Digital technologies
are also changing the way that consumers pay for goods and services. Retailing
support services may also include the provision of credit, delivery services, advisory
services, stylist services and a range of other supporting services.
Retail shops occur in a diverse range of types and in many different contexts –
from strip shopping centres in residential streets through to large, indoor shopping
malls. Shopping streets may restrict traffic to pedestrians only. Sometimes a
shopping street has a partial or full roof to create a more comfortable shopping
environment – protecting customers from various types of weather conditions such
as extreme temperatures, winds or precipitation. Forms of non-shop retailing
include online retailing (a type of electronic-commerce used for business-to-
consumer (B2C) transactions) and mail order.
1.1.1 RETAIL STRATEGY
The distinction between "strategic" and "managerial" decision-making is commonly
used to distinguish "two phases having different goals and based on different
conceptual tools. Strategic planning concerns the choice of policies aiming at
improving the competitive position of the firm, taking account of challenges and
opportunities proposed by the competitive environment. On the other hand,
managerial decision-making is focused on the implementation of specific targets."

In retailing, the strategic plan is designed to set out the vision and provide guidance
for retail decision-makers and provide an outline of how the product and service mix
will optimize customer satisfaction. As part of the strategic planning process, it is
customary for strategic planners to carry out a detailed environmental scan which
seeks to identify trends and opportunities in the competitive environment, market
environment, economic environment and statutory-political environment. The retail
strategy is normally devised or reviewed every 3– 5 years by the chief executive
officer.
The strategic retail analysis typically includes following elements:
MARKET ANALYSIS
Market size, stage of market, market competitiveness, market attractiveness, market
trends
CUSTOMER ANALYSIS
Market segmentation, demographic, geographic and psychographic profile, values
and attitudes, shopping habits, brand preferences, analysis of needs and wants, media
habits

INTERNAL ANALYSIS
Other capabilities e.g. human resource capability, technological capability,
financial capability, ability to generate scale economies or economies of scope,
trade relations, reputation, positioning, past performance.

1.1.2 THE RETAIL MARKETING MIX


Product management; promotion mix; marketing mix; price; services capes and retail
design. Once the strategic plan is in place, retail managers turn to the more
managerial aspects of planning. A retail mix is devised for the purpose of
coordinating day-to-day tactical decisions. The retail marketing mix typically
consists of six broad decision layers including product decisions, place decisions,
promotion, price, personnel and presentation. The retail mix is loosely based on the
marketing mix, but has been expanded and modified in line with the unique needs of
the retail context. A number of scholars have argued for the modified marketing
mix with the inclusion of two new Ps, namely, Personnel and Presentation should
be added to the marketing mix since these contribute to the customer's unique retail
experience and are the principal basis for retail differentiation. Yet other scholars
argue that the Retail Format should be included. The modified retail marketing mix
that is most commonly cited in text-books is often called the 6 Ps of retailing.

COMPETITION ANALYSIS
Availability of substitutes, competitor's strengths and weaknesses, perceptual
mapping, competitive trends
REVIEW OF PRODUCT MIX
Sales per square foot, stock-turnover rates, profitability per product line
REVIEW OF DISTRIBUTION CHANNELS
Lead-times between placing order and delivery, cost of distribution, cost efficiency of
intermediaries.
EVALUATION OF THE ECONOMICS OF THE STRATEGY
Cost-benefit analysis of planned activities. At the conclusion of the retail analysis,
the retail marketers should have a clear idea of which groups of customers are to be
the target of marketing activities. Research studies suggest that there is a strong
relationship between a store's positioning and the socio-economic status of
customers. In addition, the retail strategy, including service quality, has a significant
and positive association with customer loyalty. A marketing strategy effectively
outlines all key aspects of firms' targeted audience, demographics, and preferences.
In a highly competitive market, the retail strategy sets up long-term sustainability. It
focuses on customer relationships, stressing the importance of added value, customer
satisfaction and highlights how the store's market positioning appeals to targeted
groups of customers.

1.2 THE RETAILING


MIX P’S OF
RETAILING MIX

Once the strategic plan is in place, retail managers turn to the more managerial
aspects of planning. A retail mix is devised for the purpose of coordinating day-to-
day tactical decisions. The retail marketing mix typically consists of six broad
decision layers including product decisions, place decisions, promotion, price,
personnel and presentation (also known as physical evidence). The retail mix is
loosely based on the marketing mix, but has been expanded and modified in line with
the unique needs of the retail context. A number of scholars have argued for the
modified marketing mix with the inclusion of two new Ps, namely, Personnel and
Presentation should be added to the marketing mix since these contribute to the
customer's unique retail experience and are the principal basis for retail
differentiation. Yet other scholars argue that the Retail Format (i.e. retail formula)
should be included.
PRODUCT
The primary product-related decisions facing the retailer are the product assortment
(what product lines, how many lines and which brands to carry); the type of
customer service (high contact through to self-service) and the availability of support
services (e.g. credit terms, delivery services, after sales care). These decisions
depend on careful analysis of the market, demand, competition as well as the
retailer's skills and expertise.
PRODUCT ASSORTMENT
A typical supermarket carries an assortment of between 30,000 and 60,000 different
products

The term product assortment refers to the combination of both product breadth and
depth. The main characteristics of a company's product assortment are:
(1) The length or number of products lines, the number of different products
carried by a store
The breadth refers to the variety of product lines that a store offers. It
(2)
is also known as product assortment width, merchandise breadth, and product line
width.:
(3) Depth
or number of product varieties within a product line, the number of
each item or particular styles carried by a store
(4) Consistency how products relate to each other in a retail environment.
For a retailer, finding the right balance between breadth and depth can be a key to
success. An average supermarket might carry 30,000–60,000 different product lines
(product length or assortment), but might carry up to 100 different types of
toothpaste (product depth). Specialty retailers typically carry fewer product lines,
perhaps as few as 20 lines, but will normally stock greater depth. Costco, for
example, carries 5,000 different lines while Aldi carries just 1,400 lines per store.
Large assortments offer consumers many benefits, notably increased choice and the
possibility that the consumer will be able to locate the ideal product. However, for
the retailer, larger assortments incur costs in terms of record- keeping, managing
inventory, pricing and risks associated with wastage due to spoiled, shopworn or
unsold stock. Carrying more stock also exposes the retailer to higher risks in terms of
slow-moving stock and lower sales per square foot of store space. On the other hand,
reducing the number of product lines can generate cost savings through increased
stock turnover by eliminating slow-moving lines, fewer stock outs, increased
bargaining power with suppliers, reduced costs associated with wastage and carrying
inventory, and higher sales per square foot which means more efficient space
utilization.
When determining the number of product lines to carry, the retailer must consider
the store type, store's physical storage capacity, the perishability of items, expected
turnover rates for each line and the customer's needs and expectations.
CUSTOMER SERVICE AND SUPPORTING SERVICES
Customer service is the "sum of acts and elements that allow consumers to receive
what they need or desire from the retail establishment." Retailers must decide
whether to provide a full service outlet or minimal service outlet, such as no-service
in the case of vending machines; self-service with only basic sales assistance or a full
service operation as in many boutiques and specialty stores. In addition, the retailer
needs to make decisions about sales support such as customer delivery and after sales
customer care.
Retailing services may also include the provision of credit, delivery services,
advisory services, exchange/ return services, product demonstration, special orders,
customer loyalty programs, limited-scale trial, advisory services and a range of other
supporting services. Retail stores often seek to differentiate along customer service
lines. For example, some department stores offer the services of a stylist; a fashion
advisor, to assist customers selecting a fashionable wardrobe for the forthcoming
season, while smaller boutiques may allow regular customers to take goods home on
approval, enabling the customer to try out goods before making the final purchase.
The variety of supporting services offered is known as the service type. At one end
of the spectrum, self-service operators offer few basic support services. At the other
end of the spectrum, full-service operators offer a broad range of highly personalized
customer services to augment the retail experience.
When making decisions about customer service, the retailer must balance the
customer's desire for full-service against the customer's willingness to pay for the
cost of delivering supporting services. Self-service is a very cost efficient way of
delivering services since the retailer harnesses the customers labour power to carry
out many of the retail tasks. However, many customers appreciate full service and
are willing to pay a premium for the benefits of full-service.
A sales assistant's role typically includes greeting customers, providing product and
service-related information, providing advice about products available from current
stock, answering customer questions, finalising customer transactions and if
necessary, providing follow-up service necessary to ensure customer satisfaction. For
retail store owners, it is extremely important to train personnel with the requisite
skills necessary to deliver excellent customer service. Such skills may include
product knowledge, inventory management, handling cash and credit transactions,
handling product exchange and returns, dealing with difficult customers and of
course, a detailed knowledge of store policies. The provision of excellent customer
service creates more opportunities to build enduring customer relationships with the
potential to turn customers into sources of referral or retail advocates. In the long
term, excellent customer service provides businesses with an ongoing reputation and
may lead to a competitive advantage. Customer service is essential for several
reasons. Firstly, customer service contributes to the customer's overall retail
experience. Secondly, evidence suggests that a retail organization which trains its
employees in appropriate customer service benefits more than those who do not.
Customer service training entails instructing personnel in the methods of servicing
the customer that will benefit corporations and businesses. It is important to establish
a bond amongst customers-employees known as Customer relationship management.
1.3 TYPES OF CUSTOMER SERVICE

There are several ways the retailer can deliver services to consumers:
 Counter service, where goods are out of reach of buyers and must be obtained
from the seller. This type of retail is common for small expensive items (e.g.
amway products) and controlled items like organic and natural. It was common
before the 1900s in the United States and is more common in certain countries like
India.
 Click and Commute, where products are ordered online and are picked up via
a drive through.
 Ship to Store, where products are ordered online and can be picked up at the
retailer's main store.
 Delivery, where goods are shipped directly to consumer's homes or
workplaces.
 Mail order from a printed catalogue was invented in 1744 and was common
in the late 19th and early 20th centuries.
 Ordering by telephone was common in the 20th century, either from a
catalog, newspaper, television advertisement or a local restaurant menu, for
immediate service (especially for pizza delivery), remaining in common use for
food orders. Internet shopping – a form of delivery – has eclipsed phone-ordering,
and, in several sectors – such as books and music – all other forms of buying.
There is increasing competitor pressure to deliver consumer goods – especially
those offered online – in a more timely fashion. Large online retailers such
as [Link] are continually innovating and as of 2015 offer one-hour delivery
in certain areas. They are also working with drone technology to provide
consumers with more efficient delivery options. Direct marketing, including
telemarketing and television shopping channels, are also used to generate
telephone orders. Started gaining significant market share in developed countries
in the 2000s.
 Door-to-door sales, where the salesperson sometimes travels with the goods
for sale.
 Self-service, where goods may be handled and examined prior to purchase.
 Digital delivery or Download, where intangible goods, such as music, film,
and electronic books and subscriptions to magazines, are delivered directly to the
consumer in the form of information transmitted either over wires or air-waves,
and is reconstituted by a device which the consumer controls (such as an MP3
player; see digital
rights management). The digital sale of models for 3D printing also fits here, as do the media
leasing types of services, such as streaming.
1.4 GLOBAL MARKETING
Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage
of global operational differences, similarities and opportunities in order to meet global objectives".
Global marketing is also a field of study in general business management to provide valuable
products, solutions and services to customers locally, nationally, internationally and worldwide.
International marketing is the export, franchising, joint venture or full direct entry of an
organization's product or services into another country. This can be achieved by exporting a
company's product into another location, entry through a joint venture with another firm in the
target country, or foreign direct investment into the target country. The development of the
marketing mix for that country is then required - international marketing. It can be as
straightforward as using existing marketing strategies, mix and tools for export on the one side, to a
complex relationship strategy including localization, local product offerings, pricing, production
and distribution with customized promotions, offers, website, social media and leadership.
Internationalization and international marketing meets the needs of selected foreign countries
where a company's value can be exported and there is inter- firm and firm learning, optimization
and efficiency in economies of scale and scope.
A firm does not need to export or enter all world markets to be considered an international
marketer. According to American Marketing Association (AMA) "International marketing is the
multinational process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organization’s goals".
1.5 CONSUMER GOODS
In economics, any commodity which is produced and subsequently consumed by the consumer, to
satisfy his current wants or needs, is a consumer good or final good. Consumer goods are goods
that are ultimately consumed rather than used in the production of another good. For example, a
microwave oven or a bicycle which is sold to a consumer is a final good or consumer good,
whereas the components which are sold to be used in those goods are called intermediate goods.
For example, textiles or transistors which can be used to make some further goods. When used in
measures of national income and output, the term "final goods" only includes new goods. For
instance, the GDP excludes items counted in an earlier year to prevent double counting of
production based on re sales of the same item second and third hand. In this context the economic
definition of goods includes what are commonly known as services. Manufactured goods are goods
that have been processed in any way. As such, they are the opposite of raw materials, but include
intermediate goods as well as final goods.

1.6 BUYING HABITS


Final goods can be classified into the following categories, which are determined by
the consumer's buying habits:
 Convenience goods
 Shopping goods
 Specialty goods
 Unsought goods
 Convenience goods
Convenience goods are goods which are regularly consumed and easily available.
Generally convenience goods come in the category of nondurable goods such as fast
foods, cigarettes and tobacco with low value. Convenience goods are mostly sold by
wholesalers or retailers, so as to make them available to the consumers in good or
large volume. Convenience goods can further be categorized into:
 Staple convenience consumer goods
 Impulse convenience consumer Goods
Staple convenience consumer goods are those kinds of goods which come under the
basic necessities of the consumer. These goods are easily available and in large
quantity. Examples include milk, bread, sugar, etc.
Impulse convenience consumer goods are the goods which do not belong to the
priority list of the consumer. These goods are purchased without any prior planning,
just on the basis of the impulse. Examples include potato wafers, candies, ice creams,
cold drinks, etc.
SHOPPING CONSUMER GOODS
Shopping consumer goods are the goods which take lot of time and proper planning
before making purchase decision; in this case consumer does a lot of selection and
comparison based on various parameters such as cost, brand, style, comfort etc.,
before buying an item. Shopping goods are costlier than convenience goods and are
durable in nature. Consumer goods companies usually try to set up their shops and
show rooms in active shopping area to attract customer attention and their main
focus is to do lots of advertising and promotion so that to attract more customer.
Example include clothing items, televisions, radio, footwear, home furnishing, etc.
They sell Ray Bans
SPECIALTY CONSUMER GOODS
Specialty goods are unique in nature; these are unusual and luxurious items available
in the market. Specialty goods are mostly purchased by the upper class of the society
as they are expensive in nature and difficult to be afforded by middle or lower-class
people. Companies advertise their goods targeting the upper class. These goods do
not fall under the category of necessity; rather they are purchased on the basis
personal preference or desire. Brand name, uniqueness, and special features of an
item are major attributes which attract customers and make them buy such products.
Examples include antiques, jewelry, wedding dresses, cars, etc.
UNSOUGHT CONSUMER GOODS
Unsought goods neither belong to the necessity group of consumer goods list nor to
specialty goods. They are always available in the market but are purchased by very
few consumers, either based on their interest or their need for some specific reasons.
The general public does not purchase such goods often.
Examples include snowshoes, fire extinguishers, flood insurance, etc.
1.7 OBJECTIVES OF THE STUDY
 To study the factors influencing the customer preference towards Amway
products.
 To study the customer overall satisfaction towards the consumption of the
products.
 To find out the problems faced by the consumer and give suggestions on the
basis of the study.
 To discuss briefly on quality and rates of Amway products.
 To analysis the demographic variables such as age, gender, education &
income.
 To measure the level of opinion towards Amway products.
1.8 SCOPE OF THE STUDY
The scope of the study extends to the following related aspects viz factors
influencing the customer’s preference regarding this Amway products and also the
satisfaction level of the consumers regarding this product and the problems faced by
the consumers in purchasing and using of Amway products. The data has been
collected based on the questionnaire schedule. Though the main scope of this study is
to analyze the problems faced by the consumers by using Amway products.

1.9 LIMITATIONS OF THE STUDY


Many researchers have made studies on Amway products. Research on Amway
products was worth rating carefully analysis and critical enquiry an attempt has made
to study the consumer preference of Amway products. There are a number of
products and they are playing a vital role in satisfying the thirst and needs of an
individual consumers. By making an attempt to study the consumer preferences, a
number of inferences can be found so that extends of satisfaction can also be desired.
Brand preference of products may vary from group to group and also from
individual persons.
2. LITERATURE REVIEW
Diehl, K., van Herpen, E., & Lamberton, C Says Retailers often organize at least part
of their assortment by displaying complementary products from different product
categories together (e.g., a pair of pants with a shirt) rather than grouping items by
product type (e.g., a pair of pants with other pants). However, little is known about
how retailers should choose between complement-based and substitute-based
organizations. The present paper shows that consumers’ preferences for such store
organizations are a function of the effort and assortment perceptions cued by these
organizational formats. Holding the underlying assortment constant, complement-
based organizations are always more effortful than substitute-based organizations.
This difference in effort can create downward pressure on complement-based store
choice. Moreover, the effects of organization format on assortment perception
depend on whether consumers hold a hedonic or utilitarian focus. When consumers
have a highly hedonic focus, complement-based based stores create more positive
assortment perceptions than substitute-based stores. Such positive assortment
perceptions can, in turn, raise complement-based store choice. However, as
consumers’ utilitarian focus increases, substitute-based assortments are seen as both
easier and more attractive, leading to a strong advantage in store choice. Our findings
provide actionable guidance for retailers considering various store organizations and
suggest opportunities for future research. Feng, Y., & O'Mahony, M. Says The food
industry is now global, so that hedonic comparisons for various products may need
to be made between consumers from different countries. Using the 9-point hedonic
scale, it has been shown that East Asians use a significantly smaller range of scores
than Americans; they are essentially using different scales, rendering comparisons
between the two sets of consumers problematic.
There is a necessity for a culture-free method of hedonic numerical assessment,
which is not affected by such ‘cultural range variation’. American and Chinese
consumers assessed candies, toothbrushes and pens, using the regular verbal 9-point
hedonic scale as well as a purely numerical version. As expected from previous
studies, the Chinese consumers tended to have a significantly smaller range of
responses than the American consumers, although the effect was not as strong for the
purely numerical 9-point hedonic scale. This meant that Chinese consumers were
often using a shorter scale than the Americans, making comparisons between the two
groups problematic. However, a ranking protocol with an R-Index analysis was also
used. With this protocol, the range of responses for the Chinese and Americans was
the same, being equal to the number stimuli being ranked, circumventing the
problem of ‘cultural range variation’. Kuesten, C., Bi, J., & Meiselman, H. L . Says
Consumers’ affective states associated with product development are hot topics and
an important area of consumer research. The Profile of Mood States 2nd Edition TM –
Adult (POMS 2-A™) with 65 items and 5 negative scales can be used to assess adult
consumers’ affect. Consumer POMS data collected in the US for the NUTRILITE™
brand multivitamin multimineral supplement product are analyzed using an advanced
statistical model and the R package ‘repolr’. This proportional odds model (POM)
fitted with generalized estimating equations (GEE) is more appropriate for repeated
ordinal categorical data than conventional ANOVA. Analysis of the data collected
before product testing show that there are significant user group effects for each of
the 7 POMS scales and significant gender and age group effects for some scales.
Product users, females and age group 45–55 show larger scores for positive scales
and smaller scores for the negative scales than non-users, males and other age
groups. Analysis of the data collected after product testing shows that there are
significant product effects for some scales of POMS (Depression-Dejection, Anger-
Hostility, and Total Mood Disturbance). The estimated effect parameters in the
model, i.e., log odds ratio values, can be transformed into Thurstonian discriminal
distance δ or d-prime and other sensory measures, offering all the advantages of
Thurstonian modeling and ease of interpretation of the results. Further analysis
shows that although the results using conventional ANOVA are consistent with the
results using the advanced POM model, the POM model for the POMS data is more
valid and powerful than conventional ANOVA. Mukherjee, A., Satija, D., Goyal, T.
M., Mantrala, M. K., & Zou, S. Says In the post-reforms period, there has been a
change in the purchase behaviour of Indian consumers. The large consumer base has
attracted many global retailers and domestic corporates to invest in modern retail.
The government has partially allowed foreign direct investment (FDI) in retail. At
present, there is an ongoing debate on the impact of allowing FDI in retail. This
chapter analyses the impact of the retail FDI policy on Indian consumers and offer
policy recommenda tions at the national level. A primary survey of Indian
consumers, aimed at examining their shopping behaviour across branded and non-
branded products, knowledge of foreign brands and attitude towards liberalisation
of FDI in retail brings out interesting results, including identifying factors
determining the choice of modern retail outlets. It is observed that the purchase of
brands varies across different product categories and for some consumers show
distinct preference for non-branded products, which are purchased from traditional
outlets. Hence, both traditional and modern retail coexist in India. While knowledge
and use of foreign brands, especially luxury brands, is low, majority of the
respondents is in favour of allowing FDI in retail. It is held that FDI in multi-brand
retail would enhance brand knowledge, choices available to consumers and help
promote branding even as the FDI policy should ensure consumer welfare.
Whitson, D., Ozkaya, H. E., & Roxas, J. Says This paper is a follow- up on a study
conducted in 1996 to determine if there have been changes in market segments and
consumer preferences since that time. The specific purpose of this study is to
determine whether respondents’ will be influenced by the presence of seals and/or
logos certifying that the laundry detergent is environmentally friendly, and whether
the customer segments and preferences have changed over time. Respondents were
subjected to a stack of 16 cards with different combinations of price, degree of
concentration, whether detergent had regular or low suds formulas, the presence of
phosphates, and the presence of either a Green Seal, an EPA logo or both. The
data yielded three distinct clusters/groupings of respondents (i.e. Green Seal, price
and EPA Logo) different from the previous study. This study showed that
respondents were not monolithic in their preferences for green labelling techniques.
The findings of this study indicate that the customer segments and their
preferences have changed
over time. Suggestions are made for marketing to each of the respective current
segments. Jain, S., Singla, B., & Shashi, S. Says In the present scenario of high
unemployment; Multilevel Marketing (MLM) generates employment for people
who have no permanent source of earning. MLM system has emerged as one of the
prime alternatives in the current marketing system. India has become a very popular
destination of doing MLM business with high potential of growth. MLM system
provides lucrative compensation that works as motivation for people to join this
business. An attempt has been made to identify the motivational variables that have
the highest level of contribution for joining the MLM system. Most of the
MLMcompanies focus on compensation plan or reward system but apart from that
a number of variables have been found which motivate the distributors to engage
in MLM business. Further, the distributors play a vital role in the growth of the
business. In this study, we also propose a motivational model to help MLM
companies formulate better strategies in making a large network of people for
growth of business. Naiksatam, A., & Arumugam, S. Says A study was conducted to
understand effectiveness of heavy advertisement done by Oral care brands for recall
to buy oral health care products.
The study includes various aspects that help for brand loyalty & influence the buying
behavior of consumers. It analyzes the income, education, family size, and
occupation, preferences for buying Oral care products and influencing factors for
purchase behavior. We tried to get an idea of whether consumers get influenced by
TV adds while choosing oral health brand. According to the study a majority said
that they get aware and influenced by Ad. The various level of agreement for
statements was taken for influence factors and effectiveness of Ad & its results.
Gonsalves, J., & Vastani, H. A study was conducted to understand consumers’
brand recall for buying oral health care products. The study includes various aspects
that enhance brand loyalty and influence the buying behavior of consumers. It
analyzes the influence of demographics such as income, education, family size,
occupation and preferences in purchase of oral health care products. An effort was
made to get an idea of whether a brand which the consumer uses is the brand which
he/she recalls in the first instance. The study was conducted in the city of Mumbai
through E questionnaires only. Data collected was analyzed using Excel-based
statistical tools. Whitson, D., Ozkaya, H. E., & Roxas, J. Says This paper is a follow-
up on a study conducted in 1996 to determine if there have been changes in market
segments and consumer preferences since that time. The specific purpose of this
study is to determine whether respondents’ will be influenced by the presence of
seals and/or logos certifying that the laundry detergent is environmentally friendly,
and whether the customer segments and preferences have changed over time.
Respondents were subjected to a stack of 16 cards with different combinations of
price, degree of concentration, whether detergent had regular or low suds formulas,
the presence of phosphates, and the presence of either a Green Seal, an EPA logo
or both. The data yielded three distinct clusters/groupings of respondents (i.e. Green
Seal, price and EPA Logo) different from the previous study. This study showed that
respondents were not monolithic in their preferences for green labelling techniques.
The findings of this study indicate that the customer segments and their preferences
have changed over time. Suggestions are made for marketing to each of the
respective current segments. Kerker, W. S., Paasche, T. D., Bamborough, D.,
Bancino, R. S., Horder-Koop, R., McDonald, K. J., ... & Zevalkink, C. E. Study A
recurring order management system and method for a computer network is disclosed.
The system receives a request to suggest a recurring order for one or more products
or services. The system generates a profile which stores the suggested products or
services, the suggested recurrence for those products or services and the suggested
quantities to deliver upon each recurrence. The order then automatically recurs one
or more times according to the specified recurrence.
RESEARCH METHODOLOGY
The present study on “Analysis of buyer preference of Amway products–A Study in
Erode” is an Empirical one and undertaken the research work with the following
research methods

RESEARCH DESIGN
Samples are representatives of the universe. The findings from the samples can be
taken as the opinion of all respondents. The data cannot be collected from each and
every person. Hence I take the sample as 100. The data needed for the project consist
of 2.
a) Primary data
b) Secondary data
Primary data is that data which collected from primary sources by using a schedule
of questionnaire consisting of 22 question. Simple random sampling has been
applied for data collection.

GEOGRAPHICAL AREA COVERED


The present study is based on Consumers perceptions, so the study
conducted through Collecting the feedback about the Buyer
preference from the Amway product at Erode District.
STATISTICAL TOOLS USED
The data collected has been analyzed with the help of various tools and techniques
to fulfill the research objectives.

The statistical tools applied for the project is


a) Factor analysis
b) Regression method
c) Correlation analysis
d) Score analysis

Descriptive Research
Descriptive research is used to describe characteristics of a population or
phenomenon being studied. It does not answer questions about how/when/why the
characteristics occurred. Rather it addresses the "what" question (what are the
characteristics of Minnesota state population or situation being studied?) The
characteristics used to describe the situation or population are usually some kind of
categorical scheme also known as descriptive categories. For example, the periodic
table categorizes the elements. Scientists use knowledge about the nature of
electrons, protons and neutrons to devise this categorical scheme. We now take for
granted the periodic table, yet it took descriptive research to devise it. Descriptive
research generally precedes explanatory research. For example, over time the
periodic table’s description of the elements allowed scientists to explain chemical
reaction and make sound prediction when elements were combined. Hence,
descriptive research cannot describe what caused a situation. Thus, descriptive
research cannot be used as the basis of a causal relationship, 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 description and
researchers may follow-up with examinations of why the observations exist and what
the implications of the findings are.
Quantitative data
Quantitative data is information about quantities; that is, information that can be
measured and written down with numbers. Some examples of quantitative data are
your height, your shoe size, and the length of your fingernails. Here's the data is
income level, monthly expenditure, customer opinion about Amway product for
price, quality, display, attractive, discount, available, package, features, accessible,
after sale of service and overall satisfaction. The data sample collected from 100
customer who are using Amway products.
DATA ANALYSIS AND INTERPRETATION
2.1 PERCENTAGE ANALYSIS
Data collected are edited and coded by using the rally bars. This helps in converting
the gathered data into a tabulated grouped data. Percentage Analysis is applied to
create a contingency table from the frequency distribution and the represent the
collected data for the better understanding.
Table 1-Annual Income
[Link] Annual Income No. of. Percentage
. Respondents
1 Less than 65 65%
Rs.1,50,000
2 Rs.1,50,000-Rs. 20 20%
3,00,000
3 Rs.3,00,000-Rs. 9 9%
6,00,000
4 Above Rs.6,00,000 6 6%
Total 100 100%
Interpretation
From the above table 1, it reveals that 65% of the respondents are the Less than Rs.1,
50,000, 20% of the respondent for Rs.1, 50,000-Rs. 3, 00,000. 9% of the respondent
for Rs.3, 00,000-Rs. 6, 00,000 and then least respondent 6%for Above Rs.6,00,000.
Table 2 - Monthly Average Purchase for Amway products
[Link]. Monthly Expenditure No. of. Respondents Percentage
1 Below Rs.500 59 59%
2 Rs.500-Rs.10000 40 40%
3 Rs.10000-Rs. 25000 1 1%
4 Above Rs.25000 0 0%
Total 100 100%
Interpretation
From the above table 2, it reveals that 59% of the respondent are the less than Below
Rs.500 .The respondent for Rs.500-Rs.10000 is 40%. The respondent for Rs.10000-
Rs.25000 is 1% and there is no responsible for above Rs.25000 .For the Amway
products monthly expenditure least one Rs.10000-Rs.25000 respectively.

Table 3 – Source of Awareness about the Amway Products


[Link]. Particulars No. of. Respondents Percentage
1 Newspaper 5 5%
2 Magazines 7 7%
3 Television 20 20%
4 Internet 12 12%
5 Others 56 56%
Total 100 100%
Interpretation
From the above table 3, It conclude that the number of respondents for Newspaper
5%, for magazines 7%, for television 20%, for Internet 12%, for others 56%.
Maximum respondents in others categories consumer prefer to know about the
Amway products.

Table 4 - Consumer buying preference of Amway products


[Link]. Particulars No. of. Respondents Percentage
1 Showroom 13 13%
2 Shopping Mall 23 23%
3 Shopping Web-site 3 3%
4 Marketing agents 50 50%
5 Others 11 11%
Total 100 100%
Interpretation
From the above table 4, It shows that the number of respondents for Showroom
13%,for shopping mall 23%,for shopping web-site 3%,for marketing agents 50% and
for others 11% respectively. The consumer mostly prefer to buy the Amway
products from marketing agents. The least preference from shopping web site.
Table 5- Type of Buyer
[Link]. Particulars No. of. Respondents Percentage
1 Frequent buyer 8 8%
2 Normal buyer 48 48%
3 Occasional buyer 12 12%
4 Rare buyer 32 32%
Total 100 100%
Interpretation
From the above table 5, it indicates that the number of respondents of frequent buyer
8%, for normal buyer 48%, for occasional buyer 12%, for rare buyer 32%.The
maximum buyers are normal buyer.

Table 6 – Attracting Factor of Amway Products


[Link]. Particulars No. of. Respondents Percentage
1 Price 3 3%
2 Packaging 20 20%
3 Quality 56 56%
4 Easy availability 1 1%
5 All of the above 11 11%
6 Others 9 9%
Total 100 100%
Interpretation
From the above table 6, It shows that the number of respondents for 3% ‘price’, 20%
‘packaging’, 56% ‘quality’, 1% ‘easy avilability’,11% ‘all the above’, 9% ‘others’.
The maximum consumer prefer to choose the Amway products “quality”.
Table 7 - Type of Package Consumer Prefer
[Link]. Particulars No. of. Respondents Percentage
1 Packet 66 66%
2 Container 44 44%
Total 100 100%
Interpretation
From the above table 7, It indicates that the number of respondents for packet 66%
and for the container 44%.The consumer prefer the type of package is “Packet”.

Table 8 - Consumer Like to Purchase


[Link]. Particulars No. of. Respondents Percentage
1 In bulk 10 10%
2 Single pieces 28 28%
3 Just When I need them 62 62%
Total 100 100%
Interpretation
From the above table 8, it shows that the number of respondents of in bulk is
10%, for single piece 28% and for just when I need them. The maximum consumer
like to purchase of Amway products” Just when I need them”.

Table 9 - Consumer Mostly Prefer the Products of Amway


[Link]. Particulars No. of. Respondents Percentage
1 The Shampoo 33 33%
2 The bar soap 30 30%
3 The utensil cleaning gel 6 6%
4 G&H body lotion 8 8%
5 Other(please specify) 23 23%
Total 100 100%
Interpretation
From the above table 9, it shows that the number of respondents of in the shampoo is
33%, for the bar soap is 30%, for the utensil cleaning gel 6%, G&H body lotion 8%
and others 23%. The maximum consumer likes in Amway products “The Shampoo”.
Table 10 - Is the products easily available and accessible
[Link]. Particulars No. of. Respondents Percentage
1 Yes 56 56%
2 No 44 44%
Total 100 100%
Interpretation
From the above table 10, it shows that the number of respondents for the product
easily available and accessible for ‘yes’ 56% and ‘no’ is 44% respectively .

Table 11 - Opinion on the quality of Amway products compared to


other similar products
[Link]. Particulars No. of. Respondents Percentage
1 Excellent 8 8%
2 Good 51 51%
3 Average 28 28%
4 Poor 5 5%
5 Very poor 8 8%
Total 100 100%

Interpretation
From the above table 11, it indicates that the number of respondent for the quality of
Amway products compared to other similar products of ‘excellent’ is 8%, ‘good’
51%,’average’ 28%, ‘poor’ 5% and ‘very poor’ 8% respectively. The maximum
respondent’s consumer prefer ‘Good’ to compare to other products.

Table 12 - Overall satisfaction of using Amway products


S. No Particulars No. of. Respondents Percentage
1 Highly Satisfied 10 10%
2 Satisfied 51 51%
3 Neutral 33 33%
4 Dissatisfied 6 6%
5 Highly Dissatisfied 0 0
Total 100 100%
Interpretation
From the above table 12, it indicates that the number of respondent for the overall
satisfaction for ‘highly satisfied’ 10% ‘satisfied’ 51% ,’neutral ‘ 33% and
’dissatisfied’ 6% .The maximum consumer prefer for overall satisfaction is
“satisfied”.
Table 13 - Suggestion of Amway products to others
[Link]. Particulars No. of. Respondents Percentage
1 Yes 56 56%
2 No 44 44%
Total 100 100%
Interpretation
From the above table 13, it shows that the number of respondents for suggestion of
Amway products to others ‘yes’ 56% and ‘no’ 44% respectively. The maximum
number consumer prefer ‘yes’ because of quality.

Table 14 - Suggestion to others for switch over from the Amway


products
[Link]. Particulars No. of. Respondents Percentage
1 Yes 22 22%
2 No 17 17%
3 May be 61 61%
Total 100 100%
Interpretation
From the above table 14, it shows that the number of respondents for the suggestion
to others for switch over from the Amway products ‘yes’ 22%, ‘no’ 17% and ‘may
be’ 61%.the maximum consumer prefer “may be”.
Table 15 - The consumer opinion for alternate products
S. No Particulars No. of. Respondents Percentage
1 Lakme 22 22%
2 Yardley 10 10%
3 Himalaya 33 33%
4 Hindustan unilever 16 16%
5 Others 21 21%
Total 100 100%
Interpretation
From the above table 15, it shows that the number of respondent for the consumer
opinion for alternative products for ‘Lakme’ 22%, ‘yardley’, 10%, ‘himalaya’ 33%,
‘hindustan unilever’ 16% and ‘others’ 21% respectively. The maximum preference
for alternative products is “Himalaya”.

2.2 FACTOR ANALYSIS


Factor analysis is a useful tool for investigating variable relationships for complex
concepts such as socioeconomic status, dietary patterns, or psychological scales. It
allows researchers to investigate concepts that are not easily measured directly by
collapsing a large number of variables into a few interpretable underlying factors.
The key
concept of factor analysis is that multiple observed variables have similar patterns of
responses because they are all associated with a latent (i.e. not directly measured)
variable. For example, people may respond similarly to questions about income,
education, and occupation, which are all associated with the latent variable
socioeconomic status. In every factor analysis, there are the same numbers of factors
as there are variables. Each factor captures a certain amount of the overall variance
in the observed variables, and the factors are always listed in order of how much
variation they explain. The eigenvalue is a measure of how much of the variance of
the observed variables a factor explains. Any factor with an eigenvalue ≥1 explains
more variance than a single observed variable. So if the factor for socioeconomic
status had an eigenvalue of 2.3 it would explain as much variance as 2.3 of the
three variables. This factor, which captures most of the variance in those three
variables, could then be used in other analyses. The factors that explain the least
amount of variance are generally discarded. Deciding how many factors are useful to
retain will be the subject of another post.
Table 16 - KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .650


Bartlett's Test of Sphericity Approx. Chi-Square 179.801
Df 21
Sig. .000
Table 17 - Communalities
Initial Extraction
Price 1.000 .284
Quality 1.000 .561
Discount 1.000 .641
Features 1.000 .708
Package 1.000 .776
Display 1.000 .645
aftersaleofservice 1.000 .233
Extraction Method: Principal Component Analysis.

Component Matrixa
1 2 3
Price .216 .487 .802
Quality .748 -.039 -.451
Discount -.174 .781 -.435
Features .689 .483 -.101
Package .876 -.094 .100
Display .762 -.253 .042
aftersaleofservice .482 .005 .079
Extraction Method: Principal Component Analysis.
a. 3 components extracted.
Table 18 - Rotated Component Matrix a

Component
1 2 3
Price .092 .021 .958
Quality .802 .159 -.308
Discount -.140 .900 -.013
Features .680 .444 .242
Package .857 -.164 .155
Display .758 -.270 .012
After sale of service .467 -.053 .134
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations

Table 19 - Factored Components


Component
Particulars 1 2 3
Quality 0.802
Features 0.680
Package 0.857
Display 0.758
After sale of service 0.467
Discount 0.900
Price 0.958

Interpretation
Kaiser-Meyer-Olkin Measure of Sampling Adequacy indicates 0.650, which infers
the test has good sample adequacy. The Descriptive Statistics for research questions
Means varies from 2.60 to 4.05 and Standard Deviation varies from 0.628 to 1.163.
The 7 variables are classified into three factors such as:

Factor 1 consists of the variables


*Quality
*Features
*Package
*Display
*After sale of
service Factor 2 consist
of the variables
*Discount
Factor 3 consists of the variables
*Price

Table 20 - Descriptive Statistics


N Mean Std. Deviation
Price 100 2.6000 1.16342
Quality 100 4.0500 .91425
Discount 100 2.9100 .80522
Features 100 3.5300 .93695
Package 100 3.7200 .86550
Display 100 3.6600 .85540
After sale of service 100 3.0900 .98571
Compared 100 3.4600 .99919
Overall 100 3.7800 .62893
Valid N (listwise) 100
Interpretation:
As it has been absorbed that the lowest mean value is 2.60 for ‘price the buyer
preference is lowest strategies’ and highest mean value is 4.05 for ‘Quality the buyer
preference is highest strategies’. The lowest standard deviation (SD) is 0.628 for
‘overall satisfaction for the amway products’ and highest standard deviation is 1.163
for price of amway products. The average deviation is 0.906, which is high. It is
always desirable to have low standard deviation.

REGRESSION ANALYSIS
2.3
Regression analysis is a form of predictive modelling technique which investigates
the relationship between a dependent (target) and independent variable (s)
(predictor). This technique is used for forecasting, time series modelling and finding
the causal effect relationship between the variables. Regression analysis is an
important tool for modelling and analysing data. Regression analysis estimates the
relationship between two or more variables. There are multiple benefits of using
regression analysis. They are as follows:
1. It indicates the significant relationships between dependent variable and
independent variable.
2. It indicates the strength of impact of multiple independent variables on a
dependent variable.
Regression analysis also allows us to compare the effects of variables measured
on different scales, such as the effect of price changes and the number of
promotional activities. These benefits help market researchers / data analysts / data
scientists to eliminate and evaluate the best set of variables to be used for building
predictive models.

REGRESSION ANALYSIS FOR ‘OVERALL SATISFACTION’


A regression analysis was conducted with dependent variable. ‘Overall Satisfaction’
and by the independent variables consider were price, quality, discount, features,
package, after sale of service and display of the Amway products.
Hypothesis:
H0: There is no significant difference between the independent variables that
are Influencing the dependent variable ‘Overall satisfaction ‘
H1: There is significant difference between the independent variables that are
Influencing the dependent variable ‘Overall satisfaction ‘

Analysis:
Table 21 - Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
a
1 .306 .094 .025 .62112
a. Predictors: (Constant), after sale of service, price, discount, quality, display, features, package
Table 22 - ANOVA b
Model Sum of Squares df Mean Square F Sig.
1 Regression 3.667 7 .524 1.35 .233a
8
Residual 35.493 92 .386
Total 39.160 99

Table 23 - Coefficients a
Unstandardized Coefficients Standardized Coefficients
Model t Sig.
B Std. Error Beta
1 (Constant) 4.653 .468 9.952 .000
Price -.068 .060 -.127 -1.141 .257
Quality .018 .095 .027 .194 .847
Discount -.016 .082 -.020 -.192 .848
Features -.158 .087 -.236 -1.812 .073
Package .070 .117 .097 .600 .550
Display -.084 .102 -.114 -.825 .412
After Sales Service -.039 .069 -.061 -.560 .577
a. Dependent Variable: overall

REGRESSION EQUATION:
OAS = a1+ + α1 PRC + α2 QLT + α3 DIS + α4 FEA + α5 PAC + α6 DPL + α7 ASS
+ ε1
Where,
OAS- Overall
Satisfaction PRC-
Price
QLT- Quality
DPL-
Display
FEA-
Features
DIS-
Discount
ASS- After sale of service
a1- Constant
α1- Coefficient of PRC
α2- Coefficient of QLT
α3- Coefficient of DPL
α4- Coefficient of FEA
α5- Coefficient of PAC
α6- Coefficient of DIS
α7- Coefficient of ASS
ε1 - Error
By substituting the value from table, the regression equation will be
OAS =4.653 + (-0.068) PRC + 0.018 QLT + (-0.016) DIS + (-0.158) FEA +
(0.070) PAC + (-
0.084)
DIS +(-0.039) ASS + 0.094..............................Eq.(1)
Interpretation:
The Significance (P Value) of the model is 0.00, which is less than the stipulated P-
Value of 0.05. So this test is statistically significant. The independent variables are
considered for the test are ‘Price’, ’Quality’, ‘Discount’ , ‘Features’ , ‘Package’ ,
‘Display’ , and ‘After sale of service’. . By running that regression test the co-
efficient of predicts and constant value are arrived as a1 = 4.653, α1 = -0.068, α2 =
0.018, α3= -0.016, α4= -0.158, α5= - 0.070,α6= -0.084,α7= -0.039, and ε1=0.094
(value of R squire) with this the regression equation Eq. (1) is formed.
As the p-value is much less than 0.05, (i.e. 0.233), we reject the
null hypothesis. Hence there is a significant relationship between
the variables in the linear regression model of the data set faithful.
2.4 CORRELATION ANALYSIS:
The Correlation Analysis is the statistical tool used to study the closeness of the
relationship between two or more variables. The variables are said to be correlated
when the movement of one variable is accompanied by the movement of another
variable. The correlation analysis is used when the researcher wants to determine the
possible association between the variables and to begin with; the following steps are
to be followed:
 Determining whether the relation exists and then measuring it (The
measure of correlation is called as the Coefficient of Correlation).
 Testing its significance
 Establishing the cause-and-effect relation, if any.

In the correlation analysis, there are two types of variables- Dependent and
Independent. The purpose of such analysis is to find out if any change in the
independent variable results in the change in the dependent variable or not.
Pearson's correlation coefficient (r) is a measure of the strength of the association
between the two variables. Pearson's correlation coefficient (r) for continuous
(interval level) data ranges from -1 to +1. Positive correlation indicates that both
variables increase or decrease together, whereas negative correlation indicates that as
one variable increases, so the other decreases, and vice versa.
Correlation analysis has been carried out between the eight variables and the result is
listed in the table above.
Out of the combinations of all the correlation, the highlighted combinations of 11 are
discussed in the following sections which are having high correlation (both positive
and negative). These combinations of variables for correlation analyses:
CORRELATION MATRIX
Table 24 - Correlation Matrix of Variables

Correlations
know buy quality package display
** *
Know Pearson Correlation 1 .503 .222 .028 .110
Sig. (1-tailed) .000 .013 .390 .139
N 100 100 100 100 100
**
Buy Pearson Correlation .503 1 .153 -.060 .136
Sig. (1-tailed) .000 .064 .278 .088
N 100 100 100 100 100
* **
quality Pearson Correlation .222 .153 1 .567 .461**
Sig. (1-tailed) .013 .064 .000 .000
N 100 100 100 100 100
**
package Pearson Correlation .028 -.060 .567 1 .689**
Sig. (1-tailed) .390 .278 .000 .000
N 100 100 100 100 100
** **
display Pearson Correlation .110 .136 .461 .689 1
Sig. (1-tailed) .139 .088 .000 .000
N 100 100 100 100 100
**. Correlation is significant at the 0.01 level (1-tailed).
*. Correlation is significant at the 0.05 level (1-tailed).

1. Between ‘How did you know about the amway products’ and ‘where do you
buy this products’
2. Between ‘package’ and ‘quality’
3. Between ‘display’ and ‘package’

Correlation between ‘how did you know about the Amway products’ and
‘where do you buy this products’
Table 25 - Correlation Analysis 1
know buy
Know Pearson Correlation 1 .503**
Sig. (1-tailed) .000
N 100 100
Buy Pearson Correlation .503** 1
Sig. (1-tailed) .000
N 100 100
**. Correlation is significant at the 0.01 level (1-tailed).

Interpretation:
The correlation analysis between ‘how did you know about the amway products’ and
‘where do you buy this products’ was carried out and the result is depicted in the
table - The significance difference between the variables ‘how did you know about
the amway products’ and ’where do you buy this products’ is calculated as 0.000,
which is
less than the stipulated P Value of 0.05. So, it is statistically significant to conduct
correlation test. The result indicates that, the Pearson correlation co-efficient of 0.503
between the variables. This indicates there is a positive and has closer relationship
between these variables. This infers that the variables ‘Annual Income’ and ‘Monthly
Expenditure’ are impacted unidirectional.

Correlation between ‘Package of the Amway products’ and ‘Quality of the


Amway products’
Table 26 - Correlation Analysis 2

package quality
Package Pearson Correlation 1 .567**
Sig. (1-tailed) .000
N 100 100
Quality Pearson Correlation .567** 1
Sig. (1-tailed) .000
N 100 100
**. Correlation is significant at the 0.01 level (1-tailed).

The correlation analysis between ‘Package’ and ‘quality’ was carried out and the
result is depicted in the table -----
The significance difference between the variables ‘package’ and ‘quality’ is
calculated as 0.000, which is less than the stipulated P Value of 0.05. So, it is
statistically significant to conduct correlation test. The result indicates that, the
Pearson correlation co-efficient of 0.567 between the variables. This indicates there
is a positive and has closer relationship between these variables. This infers that the
variables ‘package’ and ‘quality’ are impacted unidirectional

Correlation between ‘‘Package of the Amway products’ and ‘Display of the


Amway products’
Table 27 - Correlation Analysis 3

package display
Package Pearson Correlation 1 .689**
Sig. (1-tailed) .000
N 100 100
**
Display Pearson Correlation .689 1
Sig. (1-tailed) .000
N 100 100
**. Correlation is significant at the 0.01 level (1-tailed).

The correlation analysis between ‘display’ and ‘package’ was carried out and the
result is depicted in the table -----
The significance difference between the variables ‘display’ and ‘package’ is
calculated as 0.000, which is less than the stipulated P Value of 0.05. So, it is
statistically significant to conduct correlation test. The result indicates that, the
Pearson correlation co-efficient of 0.689 between the variables. This indicates there
is a positive and has closer relationship between these variables. This infers that the
variables ‘display’ and ’package’ are impacted unidirectional
2.5 SCORE ANALYSIS
Table 28 - Score Analysis
Ratings Excellent (5) Good (4) Average (3) Poor (2) Very Poor (1)

Price 25(5*5) 72(18*4) 93(31*3) 48(24*2) 22(22*1)

Quality 173(35*5) 168(42*4) 54(18*3) 6(3*2) 2(2*1)

Discount 15(3*5) 72(18*4) 141 (47*3) 62 (31*2) 1 (1*1)

Features 40 (8*5) 212 (53*4) 90 (30*3) 4 (2*2) 7 (7*1)


Package 60 (12*5) 232(58*4) 75(25*3) 10 (5*2) 0 (0*0)

Display 50 (10*5) 232 (58*4) 69 (23*3) 12 (6*2) 3 ( 3*1)

After Sales Service 20 (4*5) 140 (35*4) 99 (33*3) 44 (22*2) 6 (6*1)

Interpretation
Majority of the respondents have given average ratings for price and the score is
[Link] respondent for the quality has given excellent ratings and the score is
[Link] respondent for the discount has given average ratings and score is [Link]
respondent for the features has given good ratings and score is [Link] respondent
for the package has given good rating and score is [Link] respondent for the
display has given good ratings and score is [Link] respondent for the after sale of
service good ratings and score is [Link] good rating for package and display for
the Amway products.

3. FINDINGS, SUGGESTION AND


CONCLUSION
3.1 FINDINGS
 Most of the respondents are male in the study area.
 Majority of the person for annual income Less than Rs.1, 50,000.
 The most of the consumer spend for monthly expenditure of Amway products
Below Rs.500.
 56% of the consumer to know about the Amway products form others
category and 20% of the consumer form the television.
 The consumer mostly prefer to buy the products from marketing agents.
 In the Amway products most of the buyer is the normal buyer.
 The most of the consumers attracts to buy the Amway products for the
quality.
 66% of the consumer buying the Amway products from the packet.
 The most of the consumer buying the products just when need them.
 The maximum consumer mostly preferring the shampoo from the Amway
products.
 In the urban area consumer can easily buy the Amway products but in the
rural area it is not possible to buy the products.
 From the score analysis consumer opinion for ‘price’ average score 93,
‘quality’ excellent score 175, ‘discount’ average score 141, ‘features’ good score
212, ‘package’ good score 232, ‘display’ good score 232 and after sale of service
good score 140.
 The opinion on the quality of Amway products to compare to other similar
products is ‘Good’ from the survey report.
 Overall satisfaction of using Amway products ‘Satisfied’.
 56% of the consumer said that we suggest the Amway products to others.
 The maximum number of the respondents said that we will ‘may be’
switch over from the Amway products.
 The most of the consumer prefer for alternate products is ‘Himalaya’.

3.2 SUGGESTIONS
As regarding this suggestion given respondent as following below:
 The price is not affordable.
 The Amway products not available in all markets.
 The Advertisement for this products is less.
 Some suggest to improve the Amway quality.
 Not satisfied compare to other products.
 For the Amway products there is no discount.
 Features is less in the products.
 After sale of service there is no responsible for service of the products.
3.3 CONCLUSION
As per the research what I done, I came to conclude the Amway product is very high
in order to increase the sale of product they must reduction the product price. The
available and accessible of the product is less so they should make it in all the market
area, more advertisement want to prefer ,compare to other products features want to
be add more, want to improve in quality and they want to concentrate in after sale of
service the consumer mostly expecting the service after sales .
4. REFERENCES
I. Diehl, K., van Herpen, E., & Lamberton, C. (2015). Organizing
products with complements versus substitutes: Effects on store
preferences as a function of effort and assortment perceptions. Journal
of Retailing, 91(1), 1-18.
II. Feng, Y., & O'Mahony, M. (2017). Comparison between American
and Chinese consumers in the use of verbal and numerical 9-point
hedonic scales and R-Index ranking for food and personal products.
Food Quality and Preference, 60, 138-144.
III. Kuesten, C., Bi, J., & Meiselman, H. L. (2017). Analyzing consumers’
Profile of Mood States (POMS) data using the proportional odds
model (POM) for clustered or repeated observations and R package

IV. ‘repolr’. Food Quality and Preference, 61, 38-49.c


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