consumer preference towards sunsilk shampoo

DECLARATION

I hereby declared that this project is developed entirely on the basis of our personal efforts made under the sincere guidance of our teacher.

No portion of the work presented in this project has been submitted in support of any application for any other degree or qualification of this or any other University or institute of learning.

Customer Preference Towards Sunsilk Shampoo

PREFACE

It is matter of great pleasure for us to complete the task for the preparation of this Project. we want to mention here that despite an assiduous proof reading some misprint and inaccurate wording might have crept in for which we are responsible and we’ll be thankful to readers who point them out. Any suggestions for improvement will also be greatly appreciated.


1.0 INTRODUCTION

1.1 Background

1.2 Research Problem

1.3 Research Objectives

1.4 Research Questions

1.5 How You Will Benefit From This Report

2.0 LITERATURE REVIEW

3.0 METHODOLOGY

3.1 Conceptualizing frame work

3.2 Operationalization of variables

4.0 PRESENTATION OF FINDINGS

4.1 No. of times that the respondents use Sunsilk shampoo per week

4.2 What respondents think about the price levels of Sunsilk Shampoo?

4.3 Indicated levels of agreement for selected statements

4.4 Do you like the color of currently using Sunsilk shampoo?

4.5 What do you expect by using a shampoo?

4.6 How satisfied are you with Sunsilk to meet your needs?

4.7 What influence you to buy Sunsilk?

4.8 Which size customers mostly like in purchase?

4.9 Do you think there should be a separate product line for Men and Women?


5.0 FINDINGS AND DISCUSSION

5.1 What is the average level of preference towards Sunsilk shampoo?

5.2 What is the relationship between the affected reasons and the level of preference?

5.3 What are the potential benefits that customers expect from Sunsilk shampoo?

6.0 CONCLUSIONS AND RECOMMENDATIONS

7.0 BIBLIOGRAPHY


1.0 INTRODUCTION

1.1 Background

This report takes an overview of the research that

conducted in order to identify the preference level of customers towards Sunsilk

shampoo as a brand.

When it comes to brands of shampoo in Pakistan, Sunsilk has been considered as

Pakistan’s No.1 shampoo brand for its capabilities to provide longer, smoother and

straight silky hair. This brand is also the strongest brand in Asia and it is said to be

available over 80 countries all over the world.

The brand’s most recent marketing campaign is the co- creation collaboration in

which 7 hair experts around the world would answer to every hair issues and come

up with the best solutions for the problem.

The new range of products is as follows:

Sunsilk dream soft and smooth

Sunsilk hair fall solution

Sunsilk damaged hair re construction

Sunsilk Stunning Black Shine

Sunsilk believes that the secrets to beautiful hair should not be locked behind the

salon door. So they have worked with seven internationally renowned hair experts

to create salon quality products for every one.

1.2 Research Problem


To study customer preference level towards sunsilk shampoo.

1.3 Research Objectives

To determine the average level of preference towards Sunsilk shampoo.

To identify the effective reasons for the determined level of preference.

To identify the most significant variable affect for the level of preference.

To identify the relationship between the affected reasons and the level of

preference.

To recognize the potential benefits that customers expect from Sunsilk

shampoo.

1.4 Research Questions

What is the average level of preference towards Sunsilk shampoo?

What is the most significant variable affect for the level of preference?

What are the potential benefits that customers expect from Sunsilk

shampoo?

1.5 How You Will Benefit From This Report

Since this report provides detailed consumer insights into Sunsilk shampoo it is an

invaluable resource to executives, organizations looking to make marketing

decisions.

This report is an important tool to companies in the natural & organic personal care

products market. It provides detailed insights into consumer preference and

expectations towards these products. The report gives a thorough understanding of

consumer preference, enabling companies & retailers to develop marketing

programs, distribution strategies and position products.


Marketing managers & executives to identify consumers needs, wants, preferences

and expectations. Such information can enable successful marketing programs and

promotional activities to be developed that meet consumer hot spots.

2.0 LITERATURE REVIEW

The literature review section reveals that the used

variables are abstracts from the prevailing theories and the previous related

researches. Those abstracts are clearly shown here and it supposes that this

research is not biased.

Theory of Consumer Decision Making Process

This theory says that how the customers decide to purchase products. According to

this theory consumers can be divided in to three categories based on their ways of

decision making. They are Extensive problem solving, Limited problem solving, and

Routinized response behaviour.

At the level of Extensive problem solving, consumers need a great deal of

information to establish a set of criteria to be considered when preferring for a

specific brand. At the level of Limited problem solving, consumers have already

established the basic criteria for evaluating various brands but they search for more

additional brand information to discriminate among various brands of a product

category. Routinized response behaviour talks that consumers have experience with

the product category and a well established set of criteria with which to evaluate the

brands they are considering. They simply review what they already know.

Apart from that, this theory also describes four models of consumers with different

views .First one is economic view .Under this view consumer is considered to be a

rational person in terms of being aware of all available product alternatives and

ranking those alternatives according to the benefits and advantages and identifying

the best alternative.


Next, cognitive view .it says that a consumer is a problem solver. Consumers search

for goods that fulfill their needs and enrich their lives.

Preference Formation Model (PFM)

Preference is formed when the customer is bonded to your company through the

establishment of a mutual benefit. Successful companies therefore go beyond

delivery of a commodity or service; they pursue the development of a relationship

with their customers. This bonded relationship will be more likely to survive

competitive attacks than the mere purveying of goods or services or an over

reliance on aggressive pricing models.

One of the components of the Preference Formation Process is the development of a

Preference Formation Profile. This profile breaks out the required attributes of each

stage of preference formation.

The profile further differentiates the required attributes of preference into emotive

or functional attributes and defines each as attractor, satisfier or expectant. The

PFM results in a likelihood of preference formation index (PFI) which represents the

strength of preference for a given product/service. We have found that the

preference formation index (a standardized score ranging from one to one hundred)

can range dramatically given the market and population under consideration. When

the index is weak (seventy-five or below) it means that while the elements of

preference are “in play” there is a reasonable amount of indifference toward the

preference target.

R.L. Oliver (1994) observed that customer satisfaction results from a process of

internal evaluation that actively compares expectations before purchase of a

product or service with perceived performance during and at the conclusion of a

purchase experience. The deployment of the theory of reasoned action as a model

for preference formation explains why such evaluation takes place. Satisfaction is a

product of the alignment between prescribed functional and emotive performance


elements and the ability of the company to meet the performance expectations.

Sustained preference is a product of meeting these requirements over time.

What we have referred to as functional and emotive performance elements Oliver

defines as “evaluative elements” (expectants, satisfiers and attractors) that, in turn,

comprise a single product or service evaluative experience. Sustained preference

can be thought of as a series of experience interactions that are continuously being

modified as the components of preference are modified over time.

Gregory S. Carpenter and Kent Nakamoto (1989) explain in their research that

consumer preference towards a product may differ because of the product

attributes. They say that the learning process of the customers form a preference

towards particular brand. First customers have a trial purchase and if the customers

are satisfied with the product attribute customers repurchase the product and

doing so the preference is formed. As a result, consumer preferences are likely to

evolve through time, updated through heuristic judgment processes.

Leon Schiffman and Leslie Kanuk.(2009) expresses in his book consumer

behavior the application of the Theory of Reasoned Action Model.

The model is designed to provide a better understanding of how consumer

preference is formed and, correspondingly, to provide the means to accurately

predict consumer preference behavior.

The important contribution of the reasoned action model is the realization that

consumers utilize the model in all purchase experiences to a lesser or greater

extent. Of equal importance is the realization that the components used to make a

preference decision are also the ones employed by a consumer to evaluate the

performance success of the product or service purchased and the company

responsible for them. Therefore, as the components of preference change, the

elements influencing satisfaction change accordingly. The relationship is dynamic

and fluid therefore static or predetermined satisfaction analytic packages often miss

the most important elements of preference and can create a false sense of security


on the part of companies who think that since their customer satisfaction scores are

high they must in turn have relatively loyal customers.

3.0 METHODOLOGY

Type of the research conducted is a descriptive research,

in which the major objective is to identify and describe the level of customer

preference towards Sunsilk shampoo.

The respondents who were taken into account in terms of gathering information

were randomly selected. The respondents were selected using a non probability

sampling technique, which is known as convenience sampling technique. The

respondents were selected based on the researcher’s convenience. The population

which was selected were students from “Institute of Business Management

Sciences” of MBA 2nd semester in University of Agriculture Faisalabad. The

population was about 400 students including Male and Female, The selected sample

size was 40 respondents.

Well prepared questionnaire was used in terms of gathering information. The

questionnaires were distributed among the Sunsilk shampoo preferred customers.


3.1 Conceptualizing frame work

3.2 Operationalization of variables

Concept Variables Indicators Measurement

Customer preference

towards Sunsilk shampoo

Price

High pricevalue for moneyaffordable price

Nominal scale

Attribute

fragrancepackagecolour

Likert scale

Need

Smoothening of hairTo prevent hair fallTo avoid dandruffTo reconstruct damaged hair

Nominal scale

KnowledgeExperienceinformation Nominal scale

promotion advertising nominal scale


Independent variables Dependent variable

priceAttributeNeedKnowledgePromotion

Customer preference towards shampoo

4.0 PRESENTATION OF FINDINGS

4.1 No. of times that the respondents use Sunsilk shampoo per week

once a week two times a week

three times a week

more than three times

02468

1012141618

64

1614

Usage in a Week

Usage in a Week

Most of the customers that are 16 customers use shampoo three times a week. It shows

that customer consumption is at a higher level. As the customers are satisfied with their

needs they prefer to use Sunsilk more. There are also a considerable number of customers

using Sunsilk more than three times a week.

4.2 What respondents think about the price levels of Sunsilk Shampoo?

8%7%

85%

Views about Price

high priceValue for moneyAffordable


Most of the customers that are 85% think that the price of Sunsilk is actually affordable.. They

think so because Sunsilk satisfy their need at a reasonable cost. Therefore customers never

hesitate to buy Sunsilk shampoo again and again. It increases the level of preference and it

causes an increase in sales too

4.3 Indicated levels of agreement for the following statements:

Strongly Agree Agree Neither

agree nor Disagree

Disagree Strongly disagree

02468

101214161820

17

20

21

0

I like the Fragrance

I like the Fragrance

.

A large number of customers prefer the fragrance of Sunsilk shampoo, 37 customers that is 93%

of customers prefer Sunsilk fragrance while 3 customers (7%) do not rely on fragrance.



agree nor Disagree

Disagree Strongly Disagree

0

5

10

15

20

25

8

24

5

3

0

bottle of Sunsilk shampoo is very con-venient to use

bottle of Sunsilk shampoo is very convenient to use

8 customers (20%) strongly agreed and 24 customers (60%) agreed with the given statement and

it shows that they prefer the current package of Sunsilk shampoo, but some

Considerable numbers of customers do not care about the package. That is 8 customers (20%).


agree nor Disagree

Disagree Strongly Disagree

0

2

4

6

8

10

12

14

16

11

15

7

43

I check the ingredients of Sunsilk shampoo when buying

I check the ingredients of Sunsilk shampoo when buy-ing


Customers are intelligent and now they put a considerable amount of effort in identifying healthy

products. It is shown in the above chart.11 customers that is28% strongly care on ingredients

while 15 customers (38%) also check the ingredients of Shampoo. Remaining 14 which is (34%)

don’t check the ingredients while purchasing.

Average preference level of Fragrance, package and ingredients

FragrancePackaging

Ingredients

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fregrance

Packaging

Ingredients

0.93

80%

0.650000000000001

FregrancePackagingIngredients

The overall conclusion regarding these three variables Fragrance, package and ingredients shows

the customers are affected by these three variables to prefer for Sunsilk shampoo. It shows that

86%(Fragrance), 70%(Packaging), and 74%(Ingredients) of the sample customers prefer for

those variables and it led for a higher preference level.


4.4 Do you like the color of currently using Sunsilk shampoo?

93%

7%

Color Liking

YesNo

This statistics show that the customers prefer the color of currently using Sunsilk shampoo

brand. That is 37 customers (93%). But (7%) of customers need to have another color instead of

current color these customers had mentioned that they prefer to have shampoo in Green and

White colors.


4.5 What do you expect by using a shampoo?

Smooth

ening o

f Hair

Black S

hiny Hair

To Prev

ent H

air Fall

To Avoid Dan

druff

To Constr

uct Dam

age H

air0

2

4

6

8

10

12

14

16

18

6

16

6

8

4

Smoothening of HairBlack Shiny HairTo Prevent Hair FallTo Avoid DandruffTo Construct Damage Hair

The above figure shows the types of needs the each customer expects from a shampoo. Most of

the customers that is 16 customers (40%) expect to have Black Shiny hair and secondly 6

customers(15%) use for Smoothening hair. Sunsilk satisfies both these needs through their

products Sunsilk Dream Soft & Smooth and Sunsilk Black Shiny Hair. So it reflects that

customers prefer to buy Sunsilk because Sunsilk satisfy their needs.

4.6 How satisfied are you with Sunsilk to meet your needs?

Customers are satisfied with Sunsilk to meet their needs. (20%) say that they are very satisfied

and majority (68%) say that they are satisfied. This says that as the customers are well satisfied

and therefore they prefer to buy Sunsilk very much.


In the same manner there are 2 customers (5%) that have still no satisfaction of Sunsilk. But it is

inconsiderable in comparing to the number of customers that are satisfied with Sunsilk. There are

also 3 customers who are neither satisfied nor unsatisfied. It might be due to the affecting

variable for them to buy. Because some customers show in the research that they don’t pay

attention to the need satisfaction.

20%

68%

7%

5%

Very Satisfied

Very SatisfiedSatisfiedNeither Satisfied nor UnsatisfiedUnsatisfiedVery Unsatisfied


4.7 What influence you to buy Sunsilk?

Adverti

sing

Frien

ds and N

eighbours

Promotion Campaig

ns

Self e

xperi

ence

0

5

10

15

20

25

9

46

21

AdvertisingFriends and NeighboursPromotion CampaignsSelf experience

This figure shows that 21 customers prefer to buy Sunsilk because of their self experience which

is 53%, and 4 customers uses Sunsilk because of the recommendations given by the friends and

neighbours which is 10%. Advertisements also have an effect on consumer preference as 9

customers like the advertisement of Sunsilk which is 23% of total,6 (14%) customers like

promotion campaigns of Sunsilk.

4.8 Which size customers mostly like in purchase?

Most of customers (20) like to purchase 200ml bottle which are 50% of total,9 customers

(23%)like to purchase 100ml bottle and 7 customers (17%) like to purchase 400ml size of

Sunsilk bottle, 1 customer also voted for satche, 3 customers have not answer the question.


Satche 100ml 200ml 400ml0

5

10

15

20

25

1

9

20

7

Sizes

Sizes

4.9 Do you think there should be a separate product line for Men and

Women?

88%

12%

Openion about Separate Product line

YesNo

88% customers think that there should be a separate product line for Men and Women, 12%

don’t think that there is a need of separate product line.


Figure 4.1 to 4.9 presented the analyzed data and information gathered from the questionnaire.

The next part will show how the information supports to get answers for the following research

questions and the findings of this research.

What is the average level of preference towards Sunsilk shampoo?

What are the effective reasons for the determined level of preference?

What is the most significant variable affect for the level of preference?

What is the relationship between the affected reasons and the level of preference?

What are the potential benefits that customers expect from Sunsilk shampoo?

5.0 FINDINGS AND DISCUSSION

5.1 What is the average level of preference towards Sunsilk shampoo?

Price

Fragra

nce

Packag

ing

Need sa

tisfacti

onColor

Ingredien

ts

Past Ex

perien

ce

Promotions

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%0.92 93%

0.8

0.880.93

0.650000000000001

0.53

0.38

Price

Fragrance

Packaging

Need satisfaction

Color

Ingredients

Past Experience

Promotions


5.2 What is the relationship between the affected reasons and the

level of preference?

Price

When it comes to price customers’ preference level is high because of the affordable price levels

of Sunsilk. 93% gave an opinion that the price of the Sunsilk is affordable and benefits are in

proportion with cost.

60% of customers don’t consider the price while purchasing Sunsilk.

Fragrance

A large number of customers prefer the fragrance of Sunsilk shampoo. 93% customers prefer

Sunsilk fragrance while 7% customers do not rely on fragrance. This shows that fragrance has a

significant effect on the preference level of customers towards Sunsilk.

Package

20% customers strongly agreed and 60%customers agreed that it is convenient to use the bottle

of Sunsilk shampoo. It shows that they prefer the current package of Sunsilk shampoo, but some

considerable number of customers does not care about the package, that is 20%customers.

customers don’t give high priority to the package in buying Sunsilk but they like packaging.

Need satisfaction

20% say that they are very satisfied and majority 68% says that they are satisfied. This says that

as the customers are well satisfied and therefore they prefer to buy Sunsilk very much. 8% of

customers are neither satisfied nor unsatisfied and only 4% customers are unsatisfied on the basis

of need satisfaction.60% of customers purchase Sunsilk due to need satisfaction.


Color

93% customers prefer the color of currently using Sunsilk shampoo brand. But 7% of customers

need to have another color instead of current color. Most of those customers had mentioned that

they prefer to have shampoo in white and Green colors. Overall 53% of customers consider the

color of shampoo when buying Sunsilk.

Ingredients

Customers are intelligent and now they put a considerable amount of effort in identifying healthy

products. 28% customers strongly care on ingredients while 38% customers also check the

ingredients of Shampoo.34% of customers don’t check the ingredients.

Overall 38% of customers take into consideration the ingredients while purchasing a shampoo.

Past experience

53% of customers prefer Sunsilk because of their past experience .They believe Sunsilk

provides enough satisfaction so they prefer to buy Sunsilk. Overall 23% of customers take into

consideration the past experience while purchasing a shampoo.

Promotion

Only 20% of customers influenced by promotions while making decision to purchase a shampoo.

Overall only 23% customers prefer Sunsilk due to advertisement.

5.3 What are the potential benefits that customers expect from Sunsilk

shampoo?

Most of the customers had mentioned that they are really satisfied with Sunsilk. Customers are

satisfied with the new co creation and they believe that Sunsilk satisfy their all hair problems.

But majority wanted


consumer preference towards sunsilk shampoo

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