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A Term paper
On
Research paper of Sunsilk
A case study of
Customer Preference for Sunsilk Shampoo
Course Title:Research Methodology for Business
Course Code:MGT 441
University ofInformation Technology & Sciences(UITS)
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Submitted to :Nazia Nabi
Lecturer
Faculty of School of business
University of Information Technology & Sciences
Submitted By :
Rezaul Karim Chowdhury ID: 08410012
Sharmin Alam ID: 08330130Sharmin Zaman ID: 08410023
Jakia Akter Rikta ID: 08510046
Program of BBA
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Letter of Transmitted:
19 December 2010
To
Nazia NabiLecturer
Faculty
School of BusinessUniversity of Information Technology & Sciences
Subject: Submission of Term Paper on Research paper (MGT 441)
Dear Sir
In the following pages, we have presented the fall 2010 MGT 441project, which you
have authorized us to prepare and submit by 19 December 2010 as MGT 441 courserequirement.
This particular report has given us the opportunity to get hands on experience regarding
different entry modes of mobile sectors. We are tremendously thankful to you for giving
us the opportunity to learn the practical skills during the course.
We have enjoyed preparing the research paper though it was challenging to finish within
the give time. In preparing this research paper, we have tried our level best to include allthe relevant information and tried to identify different Public Listed Companies in
Malaysia
Sincerely,
Sharmin Alam Rezaul Karim Sharmin ZamanID: 08330130 ID: 08410012 ID: 08410023
Jakia Akter RiktaID: 08510046
Department of School of BusinessUniversity of Information Technology & Sciences
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Acknowledgement:
We have prepared our group project on: Research paperIt was really a nice experience for us to do the project on above topic. While preparing
the project lots of people helped us on various occasions. Among these people ourclassmates, course instructor, teaching assisrant are mentionable. In this regard, we would
like to give our special thanks to our course instructorNazia Nabi, Lecturer, School of
Business, University of Information Technology & Sciences.We are also grateful to our friend and the people who helped us a lot in doing this project.
Special thanks, gratefully and lovingly offerd to our parents, for their overall steadfast
and loyal support during the preparation of this project. Finally, our gratitude along withthanks goes to The Almighty for keeping everything on right track.
We want to talk about our limitations that we had to accept during the completion of this
project. However, we believe that we have tried our best to make this project morereliable and acceptable.
Sincerely,
Rezaul Karim Chowdhury ID: 08410012
Sharmin Alam ID: 08330130
Sharmin Zaman ID: 08410023Jakia Akter Rikta ID: 08510046
Department of School of Business
University of Information Technology & Sciences
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Executive Summary:
The Term Paper is prepared as requirement of Research Methodology for Business(MGT-441) on the topic Research paper.
There is a higher level of customer preference level in terms of Sunsilk shampoo. The
customers prefer Sunsilk shampoo as it satisfies their expected need. Secondly customers
care on price. The most significant variable that affect for the level of preference is needsatisfaction. There is a considerable negative attitude towards the package .So the
management should consider on providing a convenient package. Customers gather
information through their friends and neighbors rather than advertising or promotion
campaign. So promotion mix should be changed in to direct marketing According to theresearch done on consumer preference level consumers are happy with the brand but the
company need to increase more community based awareness and also by using blogs.
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Table of Contents:
Letter of Transmitted. i
Acknowledgement. ii
Executive Summery... ii
Table of Contents... iv
Project Review
Chapter-01
1.1. Introduction 01
1.2 Research Problem 011.3 Research Objectives .. 01
1.4 How You Will Benefit From This Report 02
Chapter-02
2.0 Literature review . 03
Chapter-03
3.0 Methodology 06
3.1 Conceptualizing frame work 063.2 Operational of variables .. 06
Chapter-04
4.0 Presentation of findings .. 08
4.1 The age ranges of the respondents . 08
4.2 No. of times that the respondents use Sunsilk shampoo per week 08
4.3 What respondents think about the price levels of Sunsilk Shampoo? 094.4. Ranking of Price, Fragrance, Package, Need satisfaction, Color,
Ingredients, past experience & Promotions of Sunsilk Shampoo.. 09
4.4 Indicated levels of agreement for the following statements 104.5 Do you like the color of currently using Sunsilk shampoo? 12
4.6 What do you expect by using a shampoo? .. 13
4.7 How satisfied are you with Sunsilk to meet your needs? 134.8 What influence you to buy Sunsilk? 14
4.9 What is the relationship between the affected reasons and
the level of preference? . 15
Chapter-05
5.1 Conclusions & Recommendations 17
References 18
Appendix 19
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Chapter 01
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 tobrands of shampoo in Sri Lanka, Sunsilk has been considered as Sri Lankas No: 01
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 80countries all over the world.
The brands 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 createsalon quality products for every girl, whoever she is, wherever she lives, whatever her
hair type
This research was carried out to identify the customer preference for Sunsilk as a brand.Now Sunsilk is being positioned as Sri Lankas No: 01 Shampoo brand and this researchreport will help to identify he customer preference level and the significant reasons for
customer preference as well as the relationship between those significant factors and the
level of preference .The research findings will definitely help in designing new productmix for current and the potential customers which satisfy their needs better than ever.
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
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1.4 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, as well as those looking to enter this emerging market. It providesdetailed insights into consumer preference and expectations towards these products. The
report gives a thorough understanding of consumer preference, enabling companies &
retailers to develop marketing programmers, distribution strategies and position products.The report is useful for CEO s and senior managers to ensure that new or existing
products are correctly marketed and meet consumer expectations.
Marketing managers & executives to identify consumers needs, wants, preferences andexpectations. Such information can enable successful marketing programmers and
promotional activities to be developed that meet consumer hot spots.
It is also helpful for business development executives to understand the market andidentify opportunities for new or existing products.
Advertising & marketing agencies working on advertising and promotional campaigns
are another party who is going to be benefited through this research report. It can help
reach consumer hot spots by developing targeted and effective marketingcommunications.
It is also beneficial for research & development executives to develop and formulate new
products based on consumers needs and expectations.
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Chapter 02
2.0 Literature review:
The literature review section reveals that the used variables are abstracts from theprevailing 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 thistheory consumers can be divided in to three categories based on their ways of decision
making. They are Extensive problem solving, Limited problem solving, and Reutilized
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 thelevel of Limited problem solving, consumers have already established the basic criteria
for evaluating various brands but they search for more additional brand information todiscriminate among various brands of a product category. Reutilized 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 reviewwhat 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 forgoods 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 theircustomers. 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 stageof preference formation.
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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 ofpreference 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 servicewith 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 betweenprescribed 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 definesas 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 thecomponents of preference are modified over time.
According to a research done by J. Jeffrey Inman, Leigh Mcalister, Wayne D. Hoyer
(1990), the promotional price cuts and promotion signals serve as persuasive appeals in
support of choosing a particular brand; the ELM model posits a continuum of the ways
choice attitudes might change as a result of exposure to a promotion. At one end of thecontinuum, termed the central route to persuasion, the consumer diligently, actively, and
cognitively evaluates information central to the particular evaluation.Promoting a brand with both a promotion signal and a price cut will, on average, increase
the likelihood that an individual will choose that brand.
The presence of a promotion makes the selection of the promoted brand more likely.
Further, it seems that for some consumers, the promotion signal alone represents asufficiently significant change in the choice condition to induce a shift in choice behavior
toward the promoted brand. For some consumers, how- ever, a concomitant price cut is
needed.
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 particularbrand. 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 throughheuristic judgment processes.
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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, toprovide the means to accurately predict consumer preference behavior.
The important contribution of the reasoned action model is the realization that consumersutilize 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 arealso 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 changeaccordingly.
The relationship is dynamic and fluid therefore static or predetermined satisfactionanalytic 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.
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Chapter 03
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 in to 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 wereselected based on the researchers convenience. The selected sample size was 50
respondents. Well prepared questionnaire was used in terms of gathering information.
The questionnaire was distributed among the Sunsilk shampoo preferred customers.
3.1 Conceptualizing frame work:
Independent variables Dependent variable
Price Customer preference towards
Attribute shampooNeed
Knowledge
Promotion
3.2 Operational of variables
Concept Variables Indicators Measurement
Customer
preferencetowards Sunsilk
shampoo
Price High price
value for moneyaffordable price
Nominal scale
Attribute fragrance
package
color
Nominal scale
Need Smoothening of hairTo prevent hair fall
To avoid dandruff
To reconstruct
damaged hair
Nominal scale
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Knowledge Experience
information
Nominal scale
promotion Advertising Nominal scale
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Chapter 04
4 .0 Presentation of findings:
4.1 The age ranges of the respondents
According to the pie chart shown above Sunsilk is mostly preferred by the customers who
are within the age range of 20-29.Secondly10-19.It shows that Sunsilk is mostly preferred
by young girls. But Sunsilk target market spreads from10-49. However there is aconsiderable preference level from the other two age ranges too.
4.2 No. of times that the respondents use Sunsilk shampoo per week (Question 01)
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23% Customers use Sunsilk shampoo at least once a week .Most of the customers that is
40% (12) customers use shampoo twice a week. It shows that customer consumption is at
a higher level. 27% (8) customers use shampoo three times a week. There are also aconsiderable number of customers using Sunsilk three times a week. And regular
customers are 10% (3)
4.3 What respondents think about the price levels of Sunsilk Shampoo? (Question
02)
3% (1) customers think that the price of Sunslk is high. Most of the customers that are77% (23) customers think that the price of Sunslk is actually value for money. They think
so because Sunsilk satisfy their needs and it is worth for them for the price they pay.
Therefore customers never hesitate to buy Sunsilk shampoo again and again.
4.4. Ranking of Price, Fragrance, Package, Need satisfaction, Color, Ingredients, Past
experience & Promotions of Sunsilk Shampoo. (Question 03)
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Considering all the independent variables affect for the level of customer preference, the
following factors are reflected.
=> 92% of the customers prefer Sunsilk because of the need satisfaction they get fromSunsilk and it is the most significant variable affect for the level of preference.
=> Customers also have a 88% average preference level towards Sunsilk in terms ofprice and color .Customers believe that the price of Sunsilk is value for money and the
current colors of Sunsilk is also preferred by the customers.
=> Fragrance, package and ingredients also possess a considerable level of preference
among the customers.
=> There is a 48% average level effect towards the preference level from the pastexperience of the customers
=> There is a less effect that is 24% effect from promotions towards the preference level
of Sunsilk
4.4 Indicated levels of agreement for the following statements (Question 04)
A large number of customers prefer the fragrance of Sunsilk shampoo. 13% (4)
customers strongly agreed. 21 customers that are 70% of customers prefer Sunsilk
fragrance while 13% (4) customers do not rely on fragrance.
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3% (1)
customer strongly agreed and 67% customers (20) 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 27% customers (8).
Customers are intelligent and now they put a considerable amount of effort in identifyinghealthy products. It is shown in the above chart. 20% (6) customers that are strongly care
on ingredients while 53% (16) customers also check the ingredients of Shampoo. And
10% (3) customers do not rely on ingredients of Shampoo.
Average preference level of Fragrance, package and ingredients
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The overall conclusion regarding these three variables Fragrance, package andingredients shows the customers are affected by these three variables to prefer for Sunsilk
shampoo. It shows that 86%, 70%, and74% of the sample customers prefer for those
variables and it led for a higher preference level.
4.5 Do you like the color of currently using Sunsilk shampoo? (Question 05)
This statistics show that the customers prefer the color of currently using Sunsilk
shampoo brand. That is 87% customers (26). But 13% of customers need to have anothercolor instead of current color. Most of those customers had mentioned that they prefer to
have shampoo in white color.
4.6 What do you expect by using a shampoo? (Question 06)
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The above figure shows the types of needs the each customer expects from a shampoo.
Most of the customers that is 43% (13) customers expect to smoothen their hair and
secondly 30% (9) customers to have a black shiny hair. 7% (2) customers expect toprevent hair fall. 17% (5) customers expect to construct damaged hair.
4.7 How satisfied are you with Sunsilk to meet your needs? (Question 07)
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This figure further shows that customers are satisfied with Sunsilk to meet their needs. 13%
say that they are very satisfied and majorities 80% 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 3% (1) customers that have still no satisfaction of Sunsilk.
There are also another 3% (1) customers who are neither satisfied nor unsatisfied. Itmight be due to the affecting variable for them to buy. Because some customers showed
in the research that they do not pay attention to the need satisfaction
4.8 What influence you to buy Sunsilk? (Question 08)
This figure shows that 47% (14) customers prefer to buy Sunsilk because of their self
experience and because of the recommendations given by the friends and neighbours
(30%). Promotion campaigns have a less effect on consumer preference as well asadvertising.
Figure 4.1 to 4.8 presented the analyzed data and information gathered from the
questionnaire. The next part will show how the information supports to get answers forthe 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?
4.9 What is the relationship between the affected reasons and the level of
preference?
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Price
When it comes to price customers preference level is high because of the affordableprice levels of Sunsilk. Customers give 29% priority in selecting shampoo. In the case of
Sunsilk most customers (78%) believe paying money is worth for Sunsilk.
Fragrance
A large number of customers prefer the fragrance of Sunsilk shampoo. 86% customers
prefer Sunsilk fragrance while12% customers do not rely on fragrance. But 96% ofcustomers do not give priority foe fragrance when buying Sunsilk.
Package
4% customers strongly agreed and 66%customers agreed that it is convenient to use thebottle of 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
26%customers.But customers never give priority to the package in buying Sunsilk.
Need satisfaction
12% say that they are very satisfied and majority 80% says that they are satisfied. Thissays that as the customers are well satisfied and therefore they prefer to buy Sunsilk very
much. In the same manner customers give priority (53%) for need satisfaction when
buying Sunsilk.
Color
88% customers prefer the colour of currently using Sunsilk shampoo brand. But12%)of
customers need to have another colour instead of current colour. Most of those customershad mentioned that they prefer to have shampoo in white colour. As well as the package
they never consider the colour of shampoo when buying.
Ingredients
Customers are intelligent and now they put a considerable amount of effort in identifying
healthy products. 22% customers strongly care on ingredients while 52% customers alsocheck the ingredients of Shampoo.
Past experience
48% percent of customers prefer Sunsilk because of their past experience .They believeSunsilk provides enough satisfaction so they prefer to buy Sunsilk.
Promotion
Customers never rely on promotion when buying Sunsilk. So promotion has a less effect
on customer preference level towards Sunsilk.
4.10 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.
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But majority wanted to have a Sunsilk shampoo to prevent dandruff
Chapter 05
5.1. Conclusions & Recommendations:
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The following conclusions along with the recommendations can be drawn through this
research.
=> There is a higher level of customer preference level in terms of Sunsilk shampoo.=> The customers prefer Sunsilk shampoo as it satisfies their expected need.
Secondly customers care on price.
=> The most significant variable that affect for the level of preference is needsatisfaction.
=> There is a considerable negative attitude towards the package .So the management
should consider on providing a convenient package.=> Customers gather information through their friends and neighbors rather than
advertising or promotion campaign. So promotion mix should be changed in to direct
marketing
=> According to the research done on consumer preference level consumers are happywith the brand but the company need to increase more community based awareness and
also by using blogs.
=> Innovation, implementation, cost reduction to offer best competitive price and
execution should be the strategy for continuation to be the market leader.=> The Company should introduce a new product mix for cleanness and remove
dandruff.=> It is better to find out innovative means of promotions like forming a special
association or some distinct group which will help maintain its brand equity and loyalty.
=> Company should maintain its quality with constant improvements as customersexpect the high quality.
=> Company can survive if they come up with new varieties according to market needs
and maintain a competitive pricing
Reference:
=> Business Research Methods
- Donald R. Cooper & Pamela S. Schindler
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=> Business Research Method
- William G. Zikmund
=> www.unilever.com=> www.sunsilk.us/shampoo-conditioners-more
=> www.google.com
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Appendix:
Questionnaire
Customers Name:
Occupation:
Age: 10-19 20-29 30-39 40-49
1) How many times do you use Sunsilk shampoo per week? Put a tick [ ]
Once a week
Twice a week
Three times a week
Regular
2) What do you think about the price levels of Sunsilk shampoo? Put a tick [ ]
High price
Normal price
Affordable price
3) What reasons affect you to prefer for Sunsilk shampoo? Rank1-8 according to your
priority
Price
Fragrance
Package
Need satisfaction
Color
Ingredients
Past experience
Promotions
4) Indicate your level of agreement for the following statements. Put a tick [ ]
Statement
Strongly
agree Agree
Neither
agree nor
disagree
Disagree
Strongly
disagree
I like the fragrance
of sunsilk very much
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The bottle of sunsilk
shampoo is veryconvenient to use.
I check theingredients of
sunsilk when buying
5) What is the color of your currently using Sunsilk shampoo? ----------------------
Do you like that colour? Yes No
If not, what colour do you prefer to in your shampoo? ------------------------
6) What do you expect by using a shampoo to wash your hair? Put a tick [ ]
Smoothening of hair
Black shiny hair
To prevent hair fall
To avoid dandruff
To construct damaged hair
7) How satisfied are you with Sunsilk to meet your needs that you mentioned in the
Q: (06)? Put a tick [ ].
Very satisfied
Satisfied
Neither satisfied nor unsatisfiedUnsatisfied
Very unsatisfied
8) What influence you to buy Sunsilk? Put a tick [ ]
Advertising
Friends and neighbors
Promotion campaigns
Self experience
9) Please suggest some other benefits you prefer to have from Sunsilk in the future
----------------------------------------------
Thank you for your favorable response
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