Analysis of Consumer Behaviour: A Survey On Detergent Powder in Delhi Region
Analysis of Consumer Behaviour: A Survey On Detergent Powder in Delhi Region
Analysis of Consumer Behaviour: A Survey On Detergent Powder in Delhi Region
Submitted by:
Ayush Rajora (S143F0008)
Neha Bajaj (S143F0020)
ACKNOWLEDGEMENT
We express our sincere gratitude to Prof. Vijay Nagrani and Dr. Kartik Dave for giving
us the opportunity to undergo this project. We further thank him for lending a helping hand
when it came to solving our problem related to the project. This project would not have been
possible without his valuable time and support. We also thank Ambedkar University Delhi for
an opportunity to undertake a soft skill project at this crucial time in our life in MBA which
helped us to understand the topics deeply which were untouched before. Any suggestions to
improve are always welcome.
EXECUTIVE SUMMARY
The project is to study the consumer behavior in response to detergent powders, for Delhi
market. To gather the data, we used the questionnaires method. A sample of 60 consumers
was surveyed. The respondents were interviewed across market places. This data was fed in a
data Microsoft Excel. With the help of which we analyzed and interpreted the data gathered,
pertaining the buying behavior of consumers. Along with questionnaires, we also used
Internet to find out about the detergent industry and the various brands available. There are
more than 10 brands available in the Indian market, but we have chosen some major brands.
The Indian laundry market is more than INR 5000 Crore, with HUL enjoying highest 42% of
share, followed by others like P&G, Nirma etc. Detergent bar comprises of 43% of market
share and powder enjoying the rest 57%. The brands which we tapped are Ariel, Surf Excel,
Tide, Rin and leaving others as option. Competition in this market is really high with HUL,
P&G, Nirma etc. strategizing and innovating to capture the market .The research design used
in our research was descriptive, incorporating knowledge from secondary information
analysis, quantitative research, methodology selection, question measurement & scale
selection, questionnaire design and sample design to be used. And simple random sampling
was done. Target customers were mainly housewives, and others who are using detergent
powder. Area where research is done is Delhi because of the convenience factor.
After the analysis we came to the conclusion that the Surf Excel enjoys the top position in
brand recall of the consumer. This is a positive sign for HUL. The research also shows that
the market share of Surf Excel in Delhi detergent market approximately comes out to be the
highest. Also, from the survey it is evident that brand name, price and cleansing action are
three of the most important attributes a consumer looks for in any detergent brand. Surf Excel
is the brand which people are well aware with and enjoys a good reputation with the
consumers with respect to all these attributes.
Another thing that we noted in this survey was that Television is the most used information
source for the consumer. The exact communication recall, is very high among the consumer.
This could be attributed to the innovative advertisement, across all media.
Thus, we can conclude that Surf Excel enjoys excellent customer reviews. It gets special
recognition for its superior cleansing action, the convenient packs it comes in, the ease it is
available with.
INTRODUCTION
Over the last decade, India has grown tremendously and so have the incomes of its people,
with a larger chunk of the Indian demography moving into urban areas in search of better and
more lucrative career options. With this advent, there has been a significant rise in consumer
durables as well, with some of the earliest signs of this rise being shown by those which
fulfilled the most basic of needs, like washing clothes. As a result of this, there has been an
influx of buyers in the detergent market, with more and more people buying washing
machine powders. However, this constitutes only 20% of the population. There is the
remaining 80% of them, around 200 million households, who wash their laundry by hand.
There are consumers who have just transitioned from hand-wash to machine-wash. They tend
to have a limited laundry detergent budget. But, established washing machine powder brands
such as P&Gs Ariel and HULs Surf, are priced high and are not able to tap this segment of
the consumers completely. They hence would be reluctant to use these high cost detergents
every wash.
With the above state of the consumer demography in the Indian detergent market, we believe
that there could be a significant scope for established brands like P&G and HUL to reposition
or extend some of their detergent lines to target this consumer segment. On a more specific
note, we aim to focus on P&Gs Tide, as potentially a new variant is to be introduced in the
low-cost washing machine powder space. The reason behind this choice is that Tide is an
established brand in the medium cost segment, priced at about half that of the high priced
Ariel and Surf and can thus leverage its existing brand equity and make it an Affordable
Washing Machine Detergent.
In order to back the above claim, we would have to undertake a market research study that
establishes a significant demand for such detergents in the low-priced segment. This should
be backed by surveys to gain the consumer and market knowledge and obtain insights of the
scope of success for such a brand repositioning in terms of its potential of penetration among
the potential customers wanting a lower priced washing machine detergent.
TRENDS
India inclined towards positive momentum with increase in demand for premium powder
detergents in big cities in 2014. Consumers are trying out brands that are one scale up
from what they were using and this is increasing in switching ratios. Increasing sales of
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branded apparel have also influenced consumers to use branded concentrated detergents
and fabric softeners.
Current value sales of laundry care grew by 12% in 2014. Changing lifestyle and
preferences of consumers have led to their upgrading in laundry care with a
corresponding increase in premiumisation, machine wash and solution wash by using
combination of bars and detergents, fine fabric/liquid detergents, laundry aids, laundry
boosters and many more. This upgrading trend is especially seen in urban markets, which
supported the growth in 2014.
The average unit price increased slightly as consumers were trading up to premium
products and costs of raw materials were also rising in 2014.
Fabric softeners, growing from a small base, recorded current value growth of 25% in
2014. Fabric softeners are becoming increasingly popular as consumers prefer the soft
touch and fragrances that fabric softeners create, such as that offered by Comfort fabric
softener. In 2012, Hindustan Unilever launched a single-rinse conditioner under the brand
name Comfort One Rinse fabric softener to take advantage of the growth of conditioners
and their popularity amongst urban Indian consumers and now it is slowly starting to
penetrate into rural India.
Laundry detergents recorded current value growth of 12% in 2014. Premium laundry
detergents have cut short the growth rate of laundry aids in India as one product with
multiple attributes is preferred by women looking to save time and energy. Most of the
powder detergents are being positioned as having several functional benefits including
laundry aids so they were more preferred in 2014.
Laundry detergents premiumisation and solution washes are on rise in urban India as
consumers are tending to opt for products which satiate their need to care for their
clothing even if they have to spend extra for that. Still, economy products have a larger
market share because of their high volume lineage and larger consumer base. Urban
Indians are the prime consumer base for fine fabric detergents, liquid detergents and
powder detergents.
Standard automatic detergents, such as Surf Excel and Ariel Front-O-Mat, continued to
grow in 2014 due to the increasing use of washing machines across the country.
Concentrated powder detergents, such as Surf Excelmatic and Ariel Ultramatic, on the
other hand, accounted for only a marginal share of laundry care in 2014. Automatic
detergents accounted for an 18% value share of laundry care in 2014.
Laundry aids, such as fabric conditioners, spot and stain removers, and other laundry
boosters, are mostly preferred by upper-class and upper middle-class consumers in urban
India. Advertising is the largest trend within these categories, with a focus on these
consumer groups as seen in 2013 and in 2014 also. Higher retail mark-ups along with the
acquisition of premium shelf positioning improved the penetration and presence of brands
within spot and stain removers in 2014.
The concept of using fabric softeners continued to be niche in India. Furthermore, leading
companies sought to capitalise on the increasing awareness and growing incomes of
consumers, such as Hindustan Unilever with the launches of Comfort fabric softener and
Comfort One Rinse long back in 2012. Fabric softeners continued to be a new product for
Indian consumers, who had never used anything other than powder detergents or bar
detergents, or laundry boosters such as liquid blues. Bambi by Dabur India and Downy by
Procter & Gamble Home Products are the other prominent brands with a strong presence
in fabric softeners.
According to Euromonitor International's socioeconomic data, washing machines
continued to have a low penetration rate of 9% in 2014. Although penetration of washing
machines in urban areas was around 32%, rural areas continued to have low penetration.
Rural India continues to face many problems such as the lack of a water supply and
frequent power cuts, which restrains growth of the penetration rate of washing machines
in these areas. The concept of washing clothes by hand and domestic help also continues
to enjoy huge popularity in the country.
Washing continues to be done at room temperature, as most consumers continue to be
unaware of ideal washing temperatures for their clothes; however, manufacturers such as
IFB, Samsung, Whirlpool and LG have introduced temperature-controlled washing
machines, which are priced at least two to three times higher than fully automatic
washing machines. Additionally, only a few washing machines have an in-built
mechanism for washing clothes at a temperature lower than 30 degrees Celsius.
The majority of washing machine manufacturers, such as LG and IFB, amongst others,
are focusing on wash, rinse and spin cycles of lower than 30 minutes. This is primarily
6
Hindustan Unilever continued to maintain its lead in laundry care with a 38% value share
in 2014. The company enjoys a long-established presence in all categories of laundry care
in India. The companys widening distribution and its continued offer of various products
at different price points help it cater to a larger consumer base. The company brands
present at different price points are an advantage when looking towards developing a
2014.
Both domestic and international brands are present in laundry care in India. International
manufacturers, including Hindustan Unilever, Procter & Gamble Home Products and
Reckitt Benckiser (India), continued to maintain dominant positions and registered a
combined value share of 51% in 2014. Domestic manufacturers such as Rohit Surfactants
and Nirma, however, continued to enhance their presence by focusing on geographical
expansion to reach more consumers. Furthermore, other domestic brands such as Ujala
from lint.
Hindustan Unilever and Procter & Gamble Home Products increased their focus towards
online advertising such as Twitter, Apple, Facebook and Google for core and non-core
brands such as Vim, Surf Excel, Rin Advanced, Active Wheel, Tide and Ariel.
There were no new packaging innovations in 2014 which impacted laundry care.
Economy and standard brands accounted for 85% of value sales in India in 2014.
Premium brands are increasing their presence in urban areas of India and their unique
functional positioning across categories like fabric detergents, laundry boosters and
laundry aids.
Private label lines, including 110% by the More supermarket chain, Great Value by Easy
Day, Clean Mate by Big Bazaar and Sudz by Reliance Fresh, have become hugely
popular in India. Most private label products in detergents are distinguished by the offer
of various in-store schemes and discounts.
LITERATURE REVIEW
FMCG's (Fast Moving Consumer Goods) is one of the largest sectors of the business world.
FMCG's are products that are manufactured by organisations such as Unilever, Procter &
Gamble and GlaxoSmithKleine and are typically bought by consumers frequently (essentially
they move from retailer's shelves to consumer very quickly).
FMCG have a short shelf life, either as a result of high consumer demand or because the
product deteriorates rapidly. Some FMCGssuch as meat, fruits and vegetables, dairy
products, and baked goodsare highly perishable. Other goods such as alcohol, toiletries,
pre-packaged foods, soft drinks, and cleaning products have high turnover rates.
Though the profit margin made on FMCG products is relatively small (more so for retailers
than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative
profit on such products can be substantial. FMCG is probably the most classic case of low
margin and high volume business. This market consists of three main segment:
1) Food and beverages Market Share of 19% and consist of products such as Health
beverages, staples/cereals, bakery products, snacks, chocolates, ice cream,
tea/coffee/soft drinks, processed fruits and vegetables, dairy products, and branded
flour.
2) Health Care Market share of 33% and consists of products such as OTC products
and ethical.
3) Household and Personal care Market share of 48% and consists of products such as
Oral care, hair care, skin care, cosmetics/deodorants, perfumes, feminine hygiene and
paper products, Fabric wash, household cleaners.
10
capita
disposable
income
is
expected to grow from USD3.5 billion to USD14.5 billion (from 10 per cent to more than 15
per cent of the organised retail market) during FY14-FY18E.
Indias middle income population estimated to reach 267 million by 2016 from 160 million in
2011. Rising incomes and growing youth population have been key growth drivers of this
sector. Brand consciousness has also aided the demand. First Time Modern Trade Shoppers
spend is estimated to triple to USD1 billion by 2015. Tier II/III cities are witnessingfaster
growth in modern trade.
Low penetration levels in rural market offers room for growth. Disposable income in rural
India has increased due to the direct cash transfer scheme. Growing demand for premium
products and exports is another growth segment.
Investment approval of upto100 percent foreign equity in single brand retail and 51 percent in
multi-brand retail is allowed. Initiatives like Food Security Bill and direct cash transfer
subsidies reach about 40 percent of households in India. The minimum capitalisation for
foreign FMCG companies to invest in India is USD 100 million.
Hair Care is the leading segment,
accounting for 23.0 percent of the
overall market in terms of revenue.
Food Products is the second leading
segment of the sector accounting for
19.0
percent
followed
by
health
the
largest
FMCG
segment,
rural segments are growing at a rapid pace; they currently account for 40 percent of revenues.
In the last few years, the FMCG market has grown at a faster pace in rural India compared
with urban India. FMCG products account for 50 percent of total rural spending.
82%; 82%
Machine Wash
Hand Wash
distribution and also much higher visibility in the retail stores. However, the relative success
of the Indian firms like Rohit Surfactants and Nirma could be attributed to a long standing
customer relationship and more importantly, the fact that these products have always been
present in the economy tiers, thus positioning them as affordable brands and therefore
catering
to
bigger
chunk
of
the
customers,
which
has
Wheel
19%
Ghari
Surf
Nirma
7%
Tide
17%
Rin
Others
10%
14%
14%
14
RohitGodrej,
Surfactants;
Henkel,15%
Amway; 17%
Godrej, Henkel,
Amway
HUL
Nirma and P&G
Rohit
Surfactants
HUL; 42%
15
RESEARCH METHODOLOGY
A research process consists of stages or steps that guide the project from its conception
through the final analysis, recommendations and ultimate actions. The research process
provides a systematic, planned approach to the research project and ensures that all aspects of
the research project are consistent with each other. Research studies evolve through a series
of steps, each representing the answer to a key question.
The chapter aims to understand the research methodology establishing a framework of
evaluation and revaluation of primary and secondary research. The techniques and concepts
used during primary research in order to arrive at findings; which are also dealt with and lead
to a logical deduction towards the analysis and results.
RESEARCH DESIGN
It is proposed to first conduct an intensive secondary research to understand the full impact
and implication of the detergent industry, to review and critique the industry norms and
reports, on which certain issues shall be selected, which one feels remain unanswered or
liable to change, this shall be further taken up in the next stage of exploratory research. This
stage shall help to restrict and select only the important question and issue, which inhabit
growth and segmentation in the industry.
The various tasks that are undertaken in the research design process are:
Defining the information need
Design the exploratory, descriptive and causal research.
Research design is a conceptual structure within which research is conducted. A research
design is the detailed blueprint used to guide a research study towards its objective. It is a
series of advanced decision taken together comprising a master plan or a model for
conducting the research in consonance with the research objectives. Research design is
needed because it facilitates the smooth sailing of the various research operations, thereby
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making research as efficient as possible yielding maximum information with the minimum
effort, time and money.
RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis.
It has a logical and hierarchical ordering:
Determination of information research problem.
Development of appropriate research design.
Execution of research design.
Communication of results.
Each step is viewed as a separate process that includes a combination of task, step and
specific procedure. The steps undertake are logical, objective, systematic, reliable, valid,
impersonal and ongoing.
EXPLORATORY RESEARCH
The method I used for exploratory research was
Primary Data
Secondary data
PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary data which
is previously gathered data. An example is information gathered by a questionnaire.
Qualitative or quantitative data that are newly collected in the course of research, Consists of
original information that comes from people and includes information gathered from surveys,
focus groups, independent observations and test results. Data gathered by the researcher in
the act of conducting research. This is contrasted to secondary data which entails the use of
data gathered by someone other than the researcher information that is obtained directly from
first-hand sources by means of surveys, observation or experimentation.
17
SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose is
called secondary data. Sources include census reports, trade publications, and subscription
services, data that have already been collected and published for another research project
(other than the one at hand). There are two types of secondary data: internal and external
secondary data. Information compiled inside or outside the organization for some purpose
other than the current investigation. Market information compiled for purposes other than the
current research effort; it can be internal data, such as existing sales-tracking information, or
it can be research conducted by someone else, such as a market research company.
Secondary source of data used consists of books and websites
My proposal is to first conduct a intensive secondary research to understand the full impact
and implication of the industry, to review and critique the industry norms and reports, on
which certain issues shall be selected, which I feel remain unanswered or liable to change,
this shall be further taken up in the next stage of exploratory research.
DESCRIPTIVE RESEARCH
STEPS in the descriptive research:
Statement of the problem
Identification of information needed to solve the problem
Selection or development of instruments for gathering the information
Identification of target population and determination of sampling plan
Design of procedure for information collection
Collection of information
Analysis of information
Generalizations and/or predictions
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DATA COLLECTION
Data collection took place with the help of filling of Questionnaires.The questionnaire
method has come to more widely used and economical means of data collection. The
common factor in all varieties of the questionnaire method is this reliance on verbal responses
to questions, written or oral. I found it essential to make sure the questionnaire was easy to
read and understand to all spectrums of people in the sample. It was also important as
researcher to respect the samples time and energy hence the questionnaire was designed in
such a way, that its administration would not exceed 2-3 min. These questionnaires were
personally administered.
The first-hand information was collected by making the people fill the questionnaires. The
primary data collected by Direct Personal interview .The respondents were contacted at
shopping malls, market places in Delhi. The data was collected by interacting with 60
respondents who filled the questionnaires and gave the required necessary information. The
respondents consisted of home makers, students, business men, professionals etc. the
required information was collected by directly interacting with these respondents.
19
SAMPLE SIZE
The numbers of samples you need are affected by the following factors:
Project goals
I have targeted 60 people in the age group of 20 years and above for the purpose of the
research. The sample size is influenced by the target population. The target population
represents the Delhi regions. . The people were from different professional backgrounds.
20
QUESTIONNAIRES
The method of data collection through questionnaire is very popular. In a questionnaire a
number of questions are typed in a define order on a form or set of forms. And the researcher
fills it by asking the questions with a request to answer by respondents. This method is vastly
used in various economy and business surveys and research. There are various benefits of
conducting a research with the help of a questionnaire and these are as follows:
1.
There is a low cost in conducting a field survey when population is less in number.
2.
It is free from the bias of the interviewer; answers are in respondents own words.
3.
4.
Results that are found from this method are most reliable and dependable. In the good
form of questionnaire there should all type of questions like open ended, close-ended
questions in a right sequence and number of questions should be very limited. Start of the
questionnaire should be respondent friendly.
In my questionnaire we had used both open and close ended questions and made the
questionnaire in the simple language stating questions in basic language.
21
Questionnaire error
The questionnaire designing has to careful so that only required data is concisely reveled and
there is no redundant data generated. The questions have to be worded carefully so that the
questions are not loaded and does not lead to a bias in the respondents mind
Respondent error
The respondents selected to be interviewed were not always available and willing to
cooperate also in most cases .The respondents were found not having the knowledge, opinion,
attitudes or facts required additionally uninformed response errors and response styles also
led to survey error.
Sampling error
We have taken the sample size of 60, which cannot determine the buying behavior of the total
population.
22
A strong unwillingness on the part of the owners of various cars, to participate and aid
the research.
The boredom and wavering concentration that set in among the respondents while
answering the long questionnaire: thus in turn led to the difficulty of preventing
incomplete questionnaires.
Sampling error: the research include a sample size of 60 customers which is not
enough to determine the brand perception of the consumers for buying FMCG. Since
its not a census survey there is always a chance of error while extrapolating the
results of a sample study over the population especially in those researches where the
qualitative aspects are concerned. So its always doubtful to map the qualitative
aspects using a quantitative measure.
23
ANALYSIS
Average quantity of buying a
powder
100
250
500
1
2
gms
gms
gms
Kg K
g
1
2
11
11 1
1
1
4
4
9
7
Location of Purchase
Local Kirana Store
Phone Apps like Grofers etc.
Super Market stores like Big
Bazaar, More Stores, Relaince
Fresh etc.
Wholesalers
Grand Total
Location of
Purchase
Governm
ent
Service
15
Detergent Powder
Occupation
Home Privat Self
e
Employ
Maker Servic ed
e
12
3
9
1
1
6
19
13
17
1
14
Location of Purchase
Local Kirana Store
Phone Apps like Grofers etc.
Super Market stores like Big Bazaar, More Stores,
Relaince Fresh etc.
Wholesalers
Grand Total
Ariel
Ghari
Nirma
Rin
Surf exel
20
Female
5
7
8
2
14
Female
21
1
19
1
42
Gender
Male
2
2
1
8
washing
5
K
g
4
Grand
Total
30
2
27
1
8
1
60
Stud
ent
Gra
nd
Total
30
2
27
1
60
Gender
Male Grand Total
9
30
1
2
8
27
1
60
18
Grand Total
7
9
8
3
22
24
Tide
Wheel
Grand Total
5
1
42
3
2
18
8
3
60
25
Monthly Household
Income (in Rupees)
> 10,000
10,000 30,000
31,000 50,000
51,000 and above
Grand Total
Education
Graduate
Post-Graduate/
Doctorate
Professional
Degree
Under Graduate
Grand Total
Occupation
250
gms
4
3
1
1
2
Grand
Total
3
17
14
26
60
3
8
10
Monthly Household
Income (in Rupees)
7
17
5
22
15
60
Ariel
Government
Service
Home-Maker
Private Service
Self Employed
Student
Grand Total
> 10,000
10,000 - 30,000
10,000 30,000
31,000 50,000
51,000 and above
Grand Total
100
gms
Quantity Purchased
500
1
2
5
gms
Kg Kg Kg
2
1
6
6
1
4
3
1
2
3
10
7
5
15
20
8
8
3
2
1
1
7
Ariel
1
1
1
4
7
4
3
2
4
4
1
1
1
2
10
4
2
22
3
1
2
Grand
Total
7
19
17
14
3
60
Grand
Total
3
1
16
14
26
60
26
Residence Location
Central Delhi
East Delhi
North Delhi
South Delhi
West Delhi
Grand Total
Location of Purchase
Location of Purchase
Location of Purchase
100
gms
1
250
gms
4
1
2
7
Arie
l
5
Arie
l
Quantity Purchased
500
1
2
5
gms
Kg
Kg
Kg
2
6
6
2
1
2
3
4
1
1
2
3
5
1
2
5
1
4
15
20
8
8
Grand
Total
30
2
16
27
22
1
8
1
60
Grand
Total
9
15
11
11
14
60
Grand
Total
30
2
16
27
22
1
8
1
60
Reasons of
preference for the
brand of your choice
Cleans with only small
amount
Cleans with only small
amount & Fragrance
Fragrance
Superior whiteness
Tough stains removal
Usability
in
washing
machine
Affordable (Price)
Good for colored clothes
Mildness on hands
Grand Total
Ari
el
21
1
10
30
2
27
1
60
Grand
Total
1
4
1
33
Gha
ri
1
2
1
16
1
9
1
3
3
13
3
6
1
4
1
22
24
6
1
60
7
1
28
APPENDIX I
QUESTIONNAIRE
Dear respondent,
We are students of AUD (Ambedkar University Delhi) and as part of our curriculum
we are conducting a market research. We would like your cooperation for the same,
with an assurance that all the information, which youll give, will remain
confidential
1.
2.
3.
4.
Super Market stores like Big Bazaar, More Stores, Relaince Fresh etc.
Local Kirana Store
Phone Apps like Grofers etc.
Others (please specify)
5.
6.
How did you come to know about the detergent powder that you use?
29
7.
Retailer
Friends& Relatives
Promotional stalls
Can you recall any one of the advt. of the detergent powder you use the most that you saw in past one
month?
o
o
o
Fully Recall
Partially Recall
Cant Recall
8.
Gender
o Male
o Female
9.
Age
o
o
o
o
Below 25 Years
25 35 years
36 45 years
46 years and above
10. Education
o Under Graduate
o Graduate
o Post-Graduate/ Doctorates
o Professional Degree
11. Monthly Household Income (in Rupees)
o > 10,000
o 10,000 30,000
o 31,000 50,000
o 51,000 and above
12. Residence
o South Delhi
o West Delhi
o Central
o North Delhi
o East Delhi
13. Occupation
o Student
o Home-Maker
o Government Service
o Private Service
o Self Employed
30
31
APPENDIX II
32
33
References
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Advertising Express, Vol. V, Issue 9, September 2005, pp.83-85
SaklaniAlok, Purohit H.C and Badoni, D.C(2005)., Positive Disconfirmation as a Threshold
to High Satisfaction, Journal of Management Research, Vol.1, No.1, September - December
2000, p.41.
Schiffman Leon, KanukLeslie(2010-E).,Consumer Behaviour , 10/E Pearson
34