IJFMS Volume 1, Issue 2, July 2014 © Blue Square Publishing House

Home , Gautam Rode, Siddharth Nigam, Tabrett Bethell, Tourism in West Bengal

IJFMS Volume 1, Issue 2, July 2014 © Blue Square Publishing House INTERNATIONAL JOURNAL FOR MARKETING STUDIES (International Peer- Reviewed Journal)

======Volume 1 Contents Issue 2 ======Editorial pp.4-6

1. An Analysis of Production and Marketing of FCV Tobacco In Mysore District Mrs. Manu V. K; Dr. S. Mokshapathy, India pp.7-22

2. Study On 4 A’s Framework Of V-Guard Fans Dhanya. J. S, India pp.23-59

3. Global Factors Influencing Consumption Experience Of E-Commerce

Dr. Sudheer M. Dhume; Vinita Singh, India pp.60-71

4. An Assessment of Hotel Product Quality In Kolkata As A Basis of Building Destination Competitiveness

Dr Debaprasad Banerjee, India pp.72-91

5. A Case Study: Film as a Product Dr. Naresh Patel; Frince Thomas, India pp.92-99

International Journal for Marketing Studies (IJFMS) is bi-monthly journal. No part of this journal may be reproduced or copied in any form by any means without prior written permission. Blue Square Publishing House holds the copy right to all articles contributed to its publications. The views expressed in this journal (IJFMS) are entirely personal judgments of the authors which do not reflect the views of the publishers/ publication team. All efforts have been exerted to ensure that the published information is correct in accordance with the manuscripts sent by the authors to Blue Square Publishing House. Blue Square Publishing House / Editorial team is not responsible for any errors caused due to oversight/technical faults or otherwise.

Acknowledgement

I acknowledge my indebtedness to all the members of the editorial advisory and editorial review boards. I am also grateful to all the authors whose valued contributions have enriched this issue. I wish to thank our all officials and staffs of Blue Square Publishing House for their invaluable efforts, great support and valuable advice for successful publication of this issue. In particular I wish to put on record the timely guidance and co-operation received from all Board members.

Managing Editor Professor D Ghosh © International Journal for Marketing Studies

Editorial

This journal is a compilation of various research papers based largely in India with themes and the issues including factors influencing consumption experience of E-Commerce, a study on 4 A‘s framework of V-Guard fans, An Analysis of Production and Marketing of FCV Tobacco in Mysore District, A Case Study: Film as a Product and an assessment of hotel product quality in Kolkata as a basis of building destination competitiveness.

I sincerely think that these issues are of paramount importance and have been pretty well researched and commented in the form of research papers in this issue. At the same time the authors also seek for greater analysis and further study in all these areas of infrastructure development and building of a more vibrant, viable, sustainable and stable economy in all the growing economies of the world.

Paper 1 attempted to analyse the Production and Marketing of FCV Tobacco in Mysore District India is the world‘s third largest producer of tobacco, endowed with rich agro-climatic attributes such as fertile soils, rainfall and ample sunshine. The Indian market for tobacco products, however, has some characteristics rather different from most other markets. India has a large, highly integrated tobacco industry, involving the growing of a range of leaf types, the manufacture of different tobacco products, including unprocessed and chewing tobacco, and an extensive distribution and retail system. Over the years, a combination of strong prices, domestic consumption, good export demand for tobacco and low prices of other crops helped the growth of tobacco from a cash crop to a manufacturing industry linked with commercial considerations. . Paper 2 highlights the plight of V-GUARD and also tries to throw light on the current scenario of the industry and make suggestions regarding how well the resources can be incorporated to cater the interest of the people with special reference to the low income group. V-GUARD as the market leader in the stabilizer brand but it has failed miserably to utilize the brand equity in

marketing the fans effectively. Even though it is not an attractive segment, the company can still reap benefits out of it. The successful brands have attained their status by ensuring good quality and reliability in their products. V-GUARD fans also have such features but the masses are not made aware of it. The company has not devised effective promotional strategies for their brand of fans. In this context, the paper attempts to figure out to what extent the promotional strategies are effective by analyzing the variables such as awareness, acceptability, affordability and availability of the particular brand.

Paper 3 interprets motivational factors and trust in their consumption experience in the context of E-commerce. This research has been empirically tested with primary data collected from 64 students using factor analysis, ANOVA test and regression analysis. The results indicate that trust had a positive effect on the consumption experience of the consumers in E-Commerce. Utilitarian motivation factors had a negative effect on the consumption experience of consumers, while hedonic motivation factors had a positive effect on the consumption experience of consumers. The finding also indicated that trust is significantly more important than convenience, information, escape and economics from consumers‘ perspective.

Paper 4 develops a destination loyalty theoretical model by using tourist perception, destination image and tourist satisfaction. This study analysis components, attributes, factor influencing the destination image and examine the tourist satisfaction and determinants of destination loyalty. This is a conceptual paper attempts at evaluating recent empirical on destination image, tourist satisfaction and loyalty. Competitiveness has been a subject of study in the manufacturing and related sectors since the early 1990s. However, only recently have some researchers started to examine the tourism and hospitality competitiveness, both conceptually and empirically, with a particular focus on tourism destinations and the hotel industry. The goal of this paper is to review the published studies on destination and hotel competitiveness, provide critiques, and point out future directions in tourism and hotel competitiveness research. Such a review shall provide researchers with a good understanding of the current status of competitiveness research and with a vision for advancing the existing knowledge of destination and hotel competitiveness.

Paper 5 is a case study on the film named Dhoom 3. Dhoom 3is a Hindi action thriller film, written and directed by Vijay Krishna Acharya and produced by Aditya Chopra. The international gross of Dhoom 3 was US$ 28 million—eventually breaking the record of 3 Idiots (another Aamir Khan starrer) and making it the highest-grossing Bollywood film of all time in international markets. It was the 75th highest grossing film of 2013 worldwide. The case reflect many new promotion campaign was carried out before and during release of film and tries to find if that has made differences to box office collections of the film.

I congratulate the contributors and Editorial Advisory Board members and Review Committee members who had put in a lot of effort and time in bringing out this journal to address many vital concerns for a better understanding of the issues surrounding our economy.

Editor-In –Chief Professor N Ray © International Journal for Marketing Studies

AN ANALYSIS OF PRODUCTION AND MARKETING OF FCV TOBACCO IN MYSORE DISTRICT

Mrs. Manu V. K Research Candidate

Dr. S.Mokshapathy Senior Faculty of Agribusiness Management, Institute of Development Studies, University of Mysore, Karnataka, India ======

ABSTRACT India is the world’s third largest producer of tobacco, endowed with rich agro-climatic attributes such as fertile soils, rainfall and ample sunshine. India produces various types of tobacco. Currently, Indian tobacco is exported to more than 80 countries spread over all the continents. A few of the top multinational companies such as British American Tobacco (BAT), Philip Morris, RJ Reynolds, Seita, Imperials, Reemtsma etc. and many companies with government monopoly all over the world import Indian tobacco either directly or indirectly. The Indian market for tobacco products, however, has some characteristics rather different from most other markets. India has a large, highly integrated tobacco industry, involving the growing of a range of leaf types, the manufacture of different tobacco products, including unprocessed and chewing tobacco, and an extensive distribution and retail system. Over the years, a combination of strong prices, domestic consumption, good export demand for tobacco and low prices of other crops helped the growth of tobacco from a cash crop to a manufacturing industry linked with commercial considerations. An attempt is made in this paper to analyse the Production and Marketing of FCV Tobacco in Mysore District.

Key Words: FCV Tobacco, Production and Marketing, Mysore ======

Introduction

The tobacco industry in India includes the production, distribution and consumption of (i) leaf tobacco, (ii) smoking products such as cigarettes and beedis and (iii) various chewing tobacco products. It presents policy-makers with an unenviable dilemma. On the one hand, it is a robust and largely irrigation-independent crop, provides substantial employment, has significant export potential and most importantly, is a source of ever-growing tax revenues. On the other, there are public health concerns about the effects of smoking and consumer-led lobbies asking for more controls on cigarette sales, smoking and advertising. In spite of its proven adverse implications for public health, the industry continues to be supported in many quarters on the grounds of its contribution to employment and national production. The organized sector of the industry, dominated by multinational corporations, is at the forefront of canvassing support for the sector.

The world - wide trend in the area of tobacco cultivation and production shows that while there has been relatively modest growth in the area under tobacco cultivation, a steady growth in the production pointing to increase in productivity. There has been a shift in tobacco production from the developed to developing countries. India‘s share in the world tobacco production was 9.6% in 2010 with 640Million kgs, while that of China was 39.6% with 2640Million kgs. An analysis of variety-wise tobacco production reveals that the bulk of total tobacco production in India consists of non-cigarette tobacco products as there is a strong, but unorganized, domestic market for non-cigarette tobacco products. Production of cigarette tobacco, mainly Flue-Cured Virginia (FCV), though increasing, still accounts for only 30% of the total production in the country. This is because of the 200 Million tobacco consumers in India; only 13% consume it in the form of cigarette, while 54% consume it in the form of beedi and the rest in raw/gutka forms (Indian Institute of Foreign Trade 2002). Worldwide, 85% of the tobacco cultivated is used in the production of cigarettes. Hence, the tobacco consumption pattern in India markedly differs from the rest of the world in terms of product configuration. Tobacco is an important commercial crop grown in India. It occupies the third position in the world with an annual production of about 725 Million Kgs of the different types grown, flue-cured tobacco, country tobacco, burley, bidi, rustica and chewing tobacco are considered important. India ranks sixth in the world to export tobacco next to Brazil, China, USA, Malawi and Italy. Tobacco and tobacco products earn a whopping annual sum of about Rs.10,271 crores to the national exchequer by way of excise revenue, and Rs.2,022 crores (2006-07) by way of foreign exchange. Furthermore, tobacco is a source of gainful employment. Flue-cured tobacco growth, with an annual production of about 300 Million kgs, is the singular type, which 8

contributes huge amount of foreign exchange and excise revenue earnings to the country. More or less, 50% of the FCV tobacco produced in India is consumed domestically while the rest is exported to more than 100 countries across the globe. Other tobacco types viz., Burley, Country tobacco, Chewing tobaccos (Lalchopadia, Judi and Rustica) are also exported whereas bidi tobacco - a poor man's smoke - is consumed only within the country. Flue-cured Virginia tobacco is the principal type grown in the states of Andhra Pradesh and Karnataka under varied agro-climatic conditions. It is grown in the light soils of Karnataka as rain-fed crop and in the heavy soils of Andhra Pradesh under conserved moisture in the aftermath of Southwest monsoon rains. The crop is grown under irrigated conditions in the Northern Light Soils (NLS) of Andhra Pradesh and Eastern Light Soils (ELS) of Orissa and as a semi-monsoon crop in Southern Light Soils (SLS) of Andhra Pradesh. Thus, India is endowed with a vast potential to produce different types of tobacco so as to cater to the interests of the discerning customers of the world.

Significance of the Study

Tobacco industry in India is one of the largest in the world with India having the largest area under tobacco cultivation. It plays an important role in the country‘s economy, in more ways than one. India has well integrated tobacco cultivation, processing and distribution facilities. Tobacco is an agro based item produced and consumed both in the unmanufactured and manufactured form in India. The industry makes a sizeable contribution to seasonal and fulltime employment and has significant export potential. It has been a major source of tax revenue. Tobacco is an important commercial crop cultivated in an area of 0.4 Million ha producing annually around 725 Million kgs of cured leaf out of which 300 million kgs is Flue- rd Cured Virginia tobacco (cigarette type). India is the 3 largest producer of tobacco in the world after China and Brazil. Majority of the states in the Indian union territory grow one type or the other to a greater or lesser extent, significantly influencing the economy and prosperity of the farming community. The crop provides employment to about 36 Million people directly or th indirectly including 6 Million farmers in the country. India ranks 6 largest exporter of tobacco in the world after Brazil, USA, Malawi and Turkey. The crop fetches annually around Rs.2, 022 crores as foreign exchange through exports and over Rs. 10,271 crores as excise revenue.

The FCV Tobacco is a Hardy, drought tolerant, disease tolerant crop. It has been grown largely in semi-arid and rainfed areas. The farmers find difficult to substitute this crop and the yields much higher returns compared to other tobaccos. Virtually the only FCV tobacco that has demand in international market and also it brings revolutionary changes in socio – economic conditions among tobacco growers.

Objectives of the Study

1. To study the growth in Area, Production and Yield of FCV Tobacco in Mysore District. 2. To examine the present Marketing structure for FCV Tobacco in the study area.

Methodology

This study is based on both primary and secondary data. The primary data has been collected from the Tobacco growers by administering the questionnaire. The Time series of secondary data on the area, productivity, and production of Tobacco has obtained from the Tobacco Board, Department of Agriculture, and other agencies, which are engaged in production, and marketing and export of Tobacco products in the state in particular and for all India level in general. In addition, the secondary data from the published Books, Journals, Research Papers, Seminar Volumes and also from various Newspapers and officers of various foreign embassies has been obtained. It was proposed to collect secondary data from 2000-01 onwards to assess the growth trend of Tobacco.

Sample Design

The number of FCV Tobacco producers chosen from each of four taluks on random basis for the survey is as follows

Table 2: Sample size Sl. No. Taluks Sample Size 1 Periyapatna 200 2 Hunsur 100 3 K.R. Nagar 50 4 H. D. Kote 50 Total 400

Apart from the producers, 25 Traders/companies involved in the tobacco marketing was randomly selected for the study.

Statistical Tools and Techniques

The systematic statistical tools and techniques adopted, to draw definite and precise conclusions on the study are the growth equation model, to determine the growth trends of the 10

Tobacco in the study area. The simple frequency and percentage analysis to facilitate the descriptive account and interpretation of the field survey data, from the farmers interviewed and the Regression Analysis was adopted to assess the trends and associations of the data variables. In addition to this, the tables, graphs and charts were generated from the analysis of both the primary and secondary data collected.

Tobacco Production in India India is the third largest producer and sixth largest exporter of tobacco in the world. While India's share in the world's area under tobacco crop has risen from 9% to 11% in the last 3 decades, its share in production has inched up from 8% to 9%.Due to diverse climatic conditions; virtually every type of tobacco is grown in India. Almost 90% of area is accounted for by Nicotine tobacem and 10% by Nicotina Restica. Only one third of the tobacco output in the country is Flue Cured Virginia (FCV) variety, suitable for cigarette manufacturing. Andhra Pradesh, Gujarat and Karnataka account for the major portion (80%) of raw tobacco production in India. These states produce FCV tobacco, bidi tobacco, cigar tobacco, cheroot tobacco and snuff tobacco. Other states which manufacture tobacco are: Maharashtra, Orissa, Tamil Nadu, West Bengal, UP and Bihar. However, a large part of tobacco produced in India is of poor quality.

The FCV tobacco production and is regulated by The Tobacco Board. About 0.75Milliongrowers and curers are engaged in tobacco production. Easy availability of tobacco has helped development of cottage industry for manufacture of chewing tobacco, cigar, cheroot, flux etc. Bidi industry provides employment to 4.4mn rural people, mostly women, and the cigarette industry provides employment to 0.55mn people.

Tobacco is a principal cash crop of National importance. It has been playing a prominent role in the development of Nation's Economy. Although the cultivation of Tobacco is restricted to 0.3% of the total cultivated area, it provides employment to large number of people on the one hand. On the other hand, it makes significant contribution to National Exchequer by way of excise revenue and foreign exchange earnings. Tobacco being a labour intensive crop provides employment to more than 60 lakhs people who are engaged in the farming curing, redrying, packaging, grading, manufacturing distribution, export and retailing activities. The bidi industry which provides employment to around 44.00 lakhs essentially unskilled rural folks mostly women is also arresting the influx of rural labour to urban centres. Although there is nationwide anti-Tobacco campaign, the commercial importance of Tobacco can never be underestimated due to the revenue earning potentiality and employment generation capacity of the crop.(Tobacco Board, Ministry of Commerce and Industry, Government of India, 2010)

Tobacco Production in Karnataka

Tobacco Board had maintained Karnataka's tobacco production at around 100 Million kg. The Board is planning to initiate stringent steps to curb unauthorised cultivation. Karnataka is the second largest producer of tobacco after Andhra Pradesh, has 85,000 hectares under tobacco cultivation which, on an average, produces 120 Million kg annually.

Major Tobacco growing Districts in Karnataka The light soils existing in Mysore, Hassan, Shimoga, Davangere, Coorg, Chikkamagalore and Chitradurga districts constitute the light soils of Karnataka. The crop in this transitional zone is raised as a monsoon crop with sufficient rainfall during the crop growth period. Presently the crop is grown in about 85000 hectares. The crop is planted in the last week of Apr-May and harvested in July-Aug. The per ha yield is around 1250 kgs.

Varieties of Tobacco The varieties under cultivation are Kanchan, Bhavya, K326, Ratna and KST-19. The tobacco produced is light to medium bodied, lemon orange to orange in colour, soft in nature, open grained with nicotine of 1.5 to 2.2%. West European, some African, Middle East and South East Asian countries mostly prefer this tobacco. According to the Board's estimates, there are about 40,000 registered growers. At the end of the 155 days of auction, about 104Million kgs of FCV tobacco variety have been marketed in Karnataka, with an average price of Rs 92.16 average/kg. Of the total quantity marketed, bright grades comprised 21.29 per cent (22 Million kgs) and were traded at an average price of Rs 119.21 average kgs. Medium grades comprised 50.16 per cent (52 Million kgs) and were traded at an average price of Rs 101.22. Low grades, comprised 28.56 per cent (30 Million kgs) and fetched an average price of Rs 58.21. (Tobacco Board – 2010-11).

Introduction of Electronic Auction System for sale of FCV tobacco: The Tobacco Board has proposed to introduce an electronic auction system for marketing of FCV tobacco to bring transparency in the auction system so as to solve the problems of trade cartel, ceiling price, discrimination in allotment of bales, recording the auction details etc. M/s. Cranes Software International Limited, Bangalore, a CMM Level 5 and ISO 9001 certified company, has been awarded the e-auction pilot project for implementation at J.R.Gudem-II auction platform. The e-auction pilot project was started in J.R.Gudem-II auction platform on 29-May-08 and continued till the end of marketing season i.e. 2-Jul-08. The e-auction system worked well. The major stakeholders of the tobacco industry viz. farmers and buyers well accepted the new system.Since the pilot project in J.R.Gudem was run for a limited period at J.R.Gudem in June, 2008, the Board implemented a full pledged pilot project at Hunsur-II

auction platform in Karnataka in the 2008 auction season and it was inaugurated by Sri. Jai Ram Ramesh, Hon‘ble Minister of State for Commerce & Power on 9-Nov-2008. The e-auction continued till the end of auction season.

Benefits of Electronic Auction System:  Buyers can plan their own buying strategy in pre-auction by keeping their remarks on grade, quality, starting price etc. in their HHTs which helps them in bidding process.  Role of chanter will be eliminated.  The manual writing of IF-5 can be withdrawn.  The ceiling price does not arise.  The buyers can be limited to bid within their BG limits.  The buyers can have complete data of bales in their HHTs, which can be downloaded to their smart cards, if provided.  The system is completely transparent in bidding process and facilitates Growers‘ Registration, Payment system and improves overall efficiency of the auction system.

Profile of the Study area: Mysore District

The Mysore district is situated in the southern part of Deccan peninsula and it forms the southernmost district of Karnataka state. It is one of the garden cities in India and also one of the richest districts of forest wealth. The total geographical area of the district is 6,268 Sq.km. The district lies between 1103‘ and 12018‘ north latitudes and 76 09‘ and 77o east longitudes at an elevation of 776 meters, above the mean sea level. Study Area: Mysore District

Figure 1: Study area - Mysore District

Climate

The climate of the district is moderate throughout the year. The district climate of the year may be classified into four seasons. 1) The summer season from the March to end of May. 2) The Southwest monsoon season normally from June to September. 3) Generally, the Retreat-monsoon from October to November and it may also be termed as the post monsoon. 4) The winter Season from December to February as generally dry seaso n with clear bright weather. Rainfall

The district receives the highest rainfall from the southwest monsoon. The western taluks of the district such as Periyapatna and Heggadadevanakote receive more rainfall as compared to the central parts of the distri ct. Most of the rainfall in the district is confined to the period from April to November. October is the rainiest month due to retreat of monsoon. The average annual rainfall in the district is 761.9mm.

Temperature

Generally, the period from March to M ay there is a continuous rise in temperature. April is usually the hottest month, the mean daily minimum temperature at 21.4 0C and the mean daily maximum temperature at 34 0C. December is the coldest month with the mean daily minimum temperature at 16.50C and the mean daily maximum at 27 0C. On some days during the period from November to January the minimum temperature may go below at 11 0C and the highest maximum temperature recorded at Mysore was 39.4 0C. The Southern Transitional Zone

The Southern Transitional Zone (zone No. 7) in Karnataka comprising of Mysore, Hassan, Chikkamagalur and Shimoga districts are characterized by dry sub-humid to semi-arid climate with an annual rainfall of 600-1000 mm. Nearly 70 per cent of the area, out of gross cropped area of 7.3 lakh ha, is under rainfed farming in this zone. FCV tobacco is the major commercial crop (more than 90 per cent in Mysore and Hassan districts) grown on red sandy loams commonly known as Karnataka Light Soils (KLS), followed by cotton, maize, finger millet and pulses.

Landholdings

Mysore district has 3, 70,333 operational landholdings and a total area of 3, 79,670 ha. According to 2001 Agricultural Census, marginal farmers owning less than 1 ha dominate the district. This group constitutes 64 per cent of the total land holdings. The next largest category is of small farmers, who own between 1 and 2 ha. Large land holdings with more than 10 hectares constitute only 0.2 percent of the total land holdings. Area under marginal farmers group constitutes 27 per cent and large farmers constitute 3.2 per cent. Similar to the distribution in the district, Nanjangud and Hunsurtaluks are also dominated by marginal holdings. Between the taluks, there is no significant difference in the distribution. In both the taluks, around 60 per cent belong to the marginal holdings. In terms of area, small holdings group constitute 40.1 per cent in HD Kote and 35.7 per cent in Hunsurtaluk and 31.3 per cent in Nanjangudtaluk. Small holdings constitute around 39 per cent in number and around 40 per cent in area in HD Kotetaluk. Land holdings with more than 10 ha constitute 3.1 per cent and 2.7 per cent of the area in HD Kote and Nanjangudtaluks respectively. The main stay of Mysore district economy is agriculture and hence agriculture and allied activities assume importance in the district. The main crops of the district includes cereals such as Jowar, Paddy and other millets, Commercial Crops like Tobacco, Sugarcane, Cotton, Oilseeds like groundnut and sunflower are grown in the district.

Cropping Pattern

Cropping pattern means the proportion of area under various crops at a given period of time. Cropping pattern differs from macro to micro regions both in area and time and it is largely governed by the physical, cultural and technological factors. The Mysore district is a dry area in generally, as it lies in the rain- shown region of the Western Ghats. Wet crops like sugarcane and rice occupy lesser area when compared to dry crops like Ragi, Jowar, Cotton Pulses and Tobacco. But in the recent years the area under wet crops is slightly increasing because of increasing in irrigation facilities.Changes in the cropping pattern are indicator of the a) changes in the acceptance of the farmers to using in new suitable crops on their farm land b) acceptance of new technology/hybrid crops/method of cultivation and the c) changing market demand.

Tobacco Production in Mysore District

The tobacco cultivation in Mysore district has played an important role in commercial crops. Periyapatna and Hunsur are the two major taluks for cultivation of tobacco in Mysore district. The Preparation of land will be done in the month of February, the land has to be ploughed to avoid the weeds, the waste will be burnt and converted it into manure for tobacco cultivation in Mysore district. The cow dung (organic manure) is to be applied to the same land and to be ploughed 5 to 6 time with cattle or in tractor.

The tobacco producer prepares beds in the month of March. The bed consists of 3 feet width and 50 to 60 feet length. Before seedlings the 17:17 chemical fertilizer is mixed with the soil. At the time of seedling, the cow dung powder will be applied. To maintain the wetness of the bed, the paddy straw will be spread on the bed. The water has to apply twice a day. After 20 days the plants will be transplanted from bed to trays. (one tray consists of 98 plants). Before transplantation, the tray is to be filled with soil mixed with chemical manure given by the tobacco board or from the outside. Rodomill and Borastin pesticide will be applied for 5 to 6 times to tray plants in a month. After one month,, the plants will be transplanted to land.(usually in the month of May). After one week from transplantation of plants they will apply chemical fertilizers like DAP, SOP, CAN and Neem cakes etc. While transplanting the plants, systematically planting a row, the difference between plant to plant is 2 feet in a row. To avoid weeding it requires 4 to 5 times ploughing between row to row, 5 to 6 time weeding with the help of women labour. Kanchana, K-326 variety of seeds are normally used in Mysore district for tobacco cultivation.

FCV TOBACCO PRODUCTION PRACTICES

THREE PHASES

POST HARVEST PRODUCT MANAGEMENT

Figure 1: FCV Tobacco Production Practices Male and female labours are required to work in tobacco cultivation. However, majority of female labourers are used in different stages. More than 50 labourers are required for one acre of land for tobacco cultivation for entire crop. The minimum wage for men is Rs. 180 with lunch and Rs. 120 for women labour. Those who work in barren will be paid Rs. 3000/barn, normally 15 labours are required to work in one barn in Mysore district.

Crop Calendar

Harvesting and Curing

Crop Growth

Planting

Seedbed

March April May June July Aug Sep Oct

Figure 2: Tobacco Production Calendar

The cost of tobacco cultivation The cost of tobacco cultivation is of Rs. 25000 to 30000/acre. The size of the single Barn is 13 feet – 13 feet, whereas, the double barn size is almost 16 -20, 16-16 feet.

Backward Linkages from the Tobacco Board The Seeds, Chemical fertilizers, pesticides is supplied from the tobacco board. The board normally deduct the advance money from the previous year payment. And also interest will be charged for the total amount of inputs supplied by the board at the end of the year. The Single barn licence will be given for 1950 kgs for 2.5 acres and the double barn will be given for 3900 kgs. The board regularly provides technical assistance, necessary information such as method of cultivation, control of diseases, adoption of advanced technology, information regard to market, price and quality etc to tobacco growers stage by stage.

FCV Tobacco Production in Mysore District

The production of tobacco production is mainly concentrated in Periyapatna, Hunsur, H D Koteand K R Nagar with 51 per cent, 30 per cent and 13 per cent and 5 per cent respectively in Mysore District. Figure 3: Production of tobacco in Mysore District during 2011-12

Source: Tobacco Board, Regional Office, Mysore

Table 1: Platforms wise Registered Growers, area Registered, Registered Barns and area and Production of Tobacco in Mysore District - 2012

Total No. of Total No. Total Sl. Name of the Auction Total Area Authorized Growers of Barns Area No. Platforms Registered Production Registere Regd. Planted d 1 APF No. 02, Hunsur - I 2395 4134 3180 6150 5.33 2 APF No. 03, Hunsur - II 3492 5883.8 4526 7985 7.58 3 APF No. 64, Hunsur - III 2526 4422.6 3402 6670 5.7 Sub Total 8413 14440.4 11108 20805 18.61

4 APF No. 07, R. N. Pura - I 4803 7965.1 6127 9245 10.26 5 APF No. 63, R. N. Pura - II 3828 6597.5 5075 7900 8.5

Sub Total 8631 14562.6 11202 17145 18.76

6 APF No. 04, Periya Patna - I 4733 9144.85 7034.5 10665 11.78 APF No. 05, Periya Patna - 7 II 4465 7897.5 6075 9819 10.18 APF No. 06, Periya Patna- 8 III 4235 7528.3 5791 10165 9.7 sub Total 13433 24570.65 18900.5 30649 31.66

9 APF No. 61, K.M. Pura - I 3950 6880.9 5293 8613 8.87 10 APF No. 62, K.M. Pura - II 3464 6124.3 4711 8145 7.89 Sub Total 7414 13005.2 10004 16758 16.76

11 APF No. 01, H. D. Kote - I 3781 6744.4 5188 8617 8.69 Total 41672 73323.25 56402.5 93974 94.48

Source: Tobacco Board, Regional Office, Mysore.

Table 2:Talukwise registered growers, area registered, Registered Barns and area and Production of Tobacco in Mysore District– 2011-12 Total Area Sl Total Area Authorized Taluks Total No. of Registere Total No. No. Planted Production Growers d of Barns (in Hect.) (in M. Kgs) Registered (in Hect.) Regd.

1 Hunsur 8413 14440.4 11108 20805 18.61 3 H. D. Kote 3781 6744.4 5188 8617 8.69 4 Periyapatna 20847 37575.85 28904.5 47407 48.42 Total 33041 58760.65 45200.5 76829 75.72 Source: Tobacco Board, Regional Office, Mysore.

Conclusion

Tobacco, in India, makes a significant contribution to the national economy by earning about US$ 900 million of foreign exchange, besides accruing US$ 3.4 billion to the central exchequer by way of excise levies on manufactured tobacco. Tobacco is an important commercial crop that provides employment to nearly 36 million people, who are engaged in the various process of tobacco cultivation, curing, grading, manufacturing and marketing. The government is thinking to ban on tobacco cultivation, in this connection, the tobacco growers has to think over alternative crops like sericulture, and other commercial crops which yields equal income in the study area.

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11. National Sample Survey (NSS), Consumption of some important commodities in India: 1999–2000, 55th Round, Department of Statistics and Program Implementation, Government of India.

12. Ranade Ajit, Sarkar, Anindya Sen. (2004).The Tobacco Industry: Opportunities and Challenges, IIM Calcutta.

13. Reserve Bank of India (RBI), Handbook of Statistics on Indian Economy 2002–03, India.

14. Reserve Bank of India (RBI), Report on Currency and Finance, Various Issues, India.

15. Tobacco Board (2012), Company wise Grade Classification Report, Office of the Regional Manager, Periyapatna and Mysore.

16. Vinayak M Prasad (2007). Case study of tobacco cultivation and alternate crops in India, Ministry of Health & Family Welfare. New Delhi.

STUDY ON 4 A’S FRAMEWORK OF V-GUARD FANS

Dhanya. J. S Assistant Professor MBA Department CET School of Management Trivandrum, Kerala ======

ABSTRACT

V-GUARD is the market leader in the stabilizer brand but it has failed miserably to utilize the brand equity in marketing the fans effectively. Even though it is not an attractive segment, the company can still reap benefits out of it. The successful brands have attained their status by ensuring good quality and reliability in their products. V-GUARD fans also have such features but the masses are not made aware of it. The company has not devised effective promotional strategies for their brand of fans. In this context, the paper attempts to figure out to what extent the promotional strategies are effective by analyzing the variables such as awareness, acceptability, affordability and availability of the particular brand. The researcher also tries to throw light on the current scenario of the industry and make suggestions regarding how well the resources can be incorporated to cater the interest of the people with special reference to the low income group.

Key Words: V-GUARD, promotional strategies, low income group

======

Introduction

The 4As framework is based on research by Anderson and Billou (2007) on serving customers at the bottom of the economic pyramid in various industries. Their aim was to articulate best practices for companies dealing with the challenges of serving low-income consumers in developing markets and in many instances, explores strategies still evolving (Anderson and Billou, 2007). In their two-year research project they undertook to test the hypothesis that there were common challenges and approaches in serving BOP customers, and that these could be articulated and refined to get better business results. Their exploratory research found that in the heart of all the organisations‘ success in serving the low-income consumer is the development of an approach that delivers the 4As - availability, affordability, acceptability and awareness.

In this research, the arguments and factors mentioned in different case studies of Anderson and Billou‗s research are examined to confirm whether from the consumers‘ perspective these conditions would really work or not. The author agrees with United Nations Development Programme (UNDP) (2008) report on the notion that ―businesses know too little about poor people - what they prefer, what they can afford and what products and capabilities they have to offer as employees, producers and business owners‖. It is therefore critical that the consumer perspective is tested, hence this research is conducted to delineate how the 4 A‘s framework can help V-GUARD address the market more effectively. The 4As framework has been endorsed by AT Kearney, the global strategic management consulting firm. Companies like HUL, ITC, LG, and Mahindra have given a new format for marketing. Marketing always have the difference in urban and rural, which makes the companies to think over the marketing mix. The 4A model is similar to the 4P model of the marketing mix; the difference it shows is main streamline and rural market. 4A perceived to be more customer oriented. So it is important for the companies like V Guard to think on their marketing mix and make a competitive analysis to go for the market.

Figure 1.1: The 4As framework of addressing low-income consumers

Defining the 4As (Anderson and Billou, 2007)

Affordability - The degree to which a firm‘s goods or services are affordable to BOP consumers. Many low-income consumers in developing countries survive on daily wages, meaning that cash-flow can be a significant problem. Companies need to be able to deliver offerings at a price point that enables consumption by even the poorest of consumers.

Acceptability - The extent to which consumers and others in the value chain are willing to consume, distribute or sell a product or service. In BOP markets, there is often a need to offer products and services that are adapted to the unique needs of both customers and distributors. Companies might need to respond to specific national or regional cultural or socioeconomic aspects, or to address the unique requirements of local business practices.

Availability - The extent to which customers are able to readily acquire and use a product or service. Distribution channels in BOP markets can be fragmented or nonexistent and the task of simply getting products to people can be a major hurdle to overcome. Companies

need to explore alternative methods of delivering their products and services to even the most isolated BOP communities.

Awareness - The degree to which customers are aware of a product or service. Given that many BOP customers are largely inaccessible to conventional advertising media, building awareness can be a significant challenge for companies wishing to serve low income consumers in the developing world. To overcome these constraints companies must explore alternative communication channels. Figure 1.2: Importance of 4A’s Framework

A. Failure to create affordability: Product rejected as it is too expensive or does not fit consumer cash flows. Remedy: Consider sachets, community purchase schemes, and financing or alternative product configurations.

B. Failure to deliver availability: Product rejected as it is scarce or does not fit with local distribution channel requirements. Remedy: Consider alternative distribution technologies or approaches. Identify and address channel inefficiencies or rejection points.

C. Failure of product acceptability: Product rejected as it does not fit with local tastes or cultural characteristics, or does not fit with existing business practices. Remedy: Adapt

product to local tasks or business models, or educate consumers or channel partners as to product benefits.

D. Failure to promote awareness: Product rejected due to lack of awareness. Remedy: Consider alternative marketing techniques or direct sales force.

Figure 1.3 Corporate strategies in response to low-income markets barriers

2. Objectives of the study

General Objective:

To study about the 4A‘s framework i.e. Awareness, Acceptability, Affordability and Availability of V-GUARD fans.

Specific Objectives:

 To know the perception of people about V-GUARD fans.

 To know the perception of people about the price range of V-GUARD fans.

 To study the visibility of promotions done by retailers for V-GUARD fans.

 To study about the convenience of retail location of V-GUARD fans.

 To study the effectiveness of different promotion tools used for V-GUARD fans.

Scope and significance of study

The study would help the researchers in marketing to get a deep insight about the fan industry in the country. The study focuses on how the company has incorporated the different components of the marketing mix to sell its products. The study is significant since the company could not put into practice the measures which enabled the success of its other products. The company has got good market share in the state of Kerala but needs to take care of its brand value and market share in the other states as well. This study would help the company to revamp its market share in the fan industry.

Research Methodology

Nature of the study

The type of research followed is mainly analytical and to a certain extent descriptive in nature. Analytical research is the method used to analyze and draw inference from a set of facts or collected data. This analysis is used to arrive at new information and facts.

Research Design

Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, ―research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing conclusions to determine whether they fit the formulated hypothesis‖ The research design adopted is descriptive research design. It involves fact-finding, Inquiries of different kinds etc. The two types of data are mainly used for the study

1. Primary source of data

2. Secondary source of data

Data collection

 Primary data is collected using structured questionnaire  Secondary data is collected from various publications, journals, internal publications, annual reports.

Period of the study

The period of study was from February 20 to March 20, 2014.

Sampling unit/Target group

The respondents were the people of Alappuzha district.

Sample size

As the name indicates, sample size refers to the number of respondents or the size of the sample, which is to be surveyed. Here the sample size taken for the study was 100.

Sampling procedure

It refers to the definite plan adopted by the research for obtaining the data from the respondents; the technique adopted here is to gather data from sampling unit is questionnaire method.

Sampling technique

Purposive sampling has been used in the study.

Statistical tools used

The various statistical tools for the analysis and interpretation of data are simple percentage method, Pie charts, chi square analysis, Z Test and Fish Bone diagram.

Percentage was calculated for each factor as per the below shown formula

Number of respondents in favour of X 100

Percentage = ------

Total number of respondents

a) Percentage Analysis

 In percentage analysis, classification and tabulation of the result from the questionnaire is done first. Then the percentage of respondents‘ responds for each question in the 29

questionnaire is found. Then these results are shown by the use of diagram. The diagrams mainly include pie charts. After the analysis the results are interpreted.  Simple percentage method = No. of Respondents / Sample Size x 100

b) Chi-Square Test

Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis. For example, if, according to Mendel's laws, you expected 10 of 20 offspring from a cross to be male and the actual observed number was 8 males, then you might want to know about the "goodness to fit" between the observed and expected. Were the deviations (differences between observed and expected) the result of chance, or were they due to other factors. How much deviation can occur before you? The investigator must conclude that something other than chance is at work, causing the observed to differ from the expected. The chi-square test is always testing what scientists call the null hypothesis, which states that there is no significant difference between the expected and observed result.

The formula for calculating chi-square (χ 2) is:

χ2= Σ (o-e)2/e

That is, chi-square is the sum of the squared difference between observed (o) and the expected (e) data (or the deviation, d), divided by the expected data in all possible categories. HYPOTHESIS FOR TESTING: The hypothesis has been to analyze the consumer perception of private labels. c) Z-Test

Hypothesis is defined as a proposition or a set proposition set forth as an explanation for the occurrence of some specified group of phenomena either asserted merely as a provisional conjecture to guide some investigation or accepted as highly portable in the light of established facts.

Then z - test is conducted for the hypothesis. For this null hypothesis and alternative hypothesis are set first. Then the standard deviation of the given sample is found out using the formula

Standard deviation, σ = p q n

σ = Standard Deviation of the given sample

p = Sample proportion complying

q = Sample proportion polluting

n = Sample size.

p1= x/n, where ‗x‘ is the number of success and ‗n‘ is the sample size.

Z = (p1– p)/σ

If the calculated value is less than that of table value, then the hypothesis H0 is accepted.

Limitation of the study

 The study was based on the assumption that the respondents will always be truthful and correct. But this assumption might not be true always.  This sample size cannot represent the features and characteristics of the universe to its entirety.  The study was confined to the Alappuzha district, so the results may not be the same in other parts of Kerala which are having different market conditions.  Personal bias may occur.

Literature Review

The 4As framework is based on Anderson and Billou‗s research (2007) on how best customers at the bottom of the economic pyramid in various industries could be served. Their research employed methodology based on enquiry, analysis and testing. It aimed to articulate best practices as companies deal with the challenges of serving low-income consumers in developing markets and in many instances explores strategies that are still evolving.

The 4As framework by Anderson and Billou is premised on research from serving customers at the bottom of the economic pyramid in industries such as fast moving consumer goods (FMCG), financial services, telecommunications, construction, health care and home appliances. The research used an action-based methodology, founded on enquiry, analysis and testing. It was aimed at articulating best practices for companies dealing with the challenges of serving low-income customers in developing markets and in many respects, explored strategies that are still evolving (Anderson and Billou, 2007).

The 4As framework was refined during 2004-2005 in a reiterative process of application, testing and adaptation using academic literature, field visits, research and writing of case studies and hands on experience with managers. Through feedback from their academic colleagues, (C.K. Prahalad and JagdishSheth), classroom discussions and further interviews with executives involved in the application at companies; shared approaches to the 4As were identified and used to build theory and make the concepts generic enough so to be utilized by other managers (Anderson and Billou, 2007).

SadreGhazi (2008) summarises the main characteristics of low-income market and the way in which core activities of multinationals in terms of R&D, production and distribution/promotion need to be adapted to meet the challenges of those specific consumers. The suggested corporate activities were compared to Anderson and Billou‘s 4As and there was strong correlation between the 4As framework and SadreGhazi‘s model.

Other journals and reviewed articles that have cited the work by Anderson and Billou are firstly by Anderson and Markides (2007). In their publication they emphasised the fact that innovation in developing markets has less to do with finding new customers than addressing issues of product acceptability, affordability, availability and awareness.

Secondly, the other recent paper was by Anderson and Kupp (2008) titled ―Serving the Poor: Drivers of Business Model Innovation in Mobile‖. In their paper they explore the opportunities and challenges of serving low-income consumers in developing market with mobile telecommunications. Their paper also touched on the commonly held belief that ―reaching low-income consumers is difficult due to two key challenges - affordability and availability‖.

Thirdly is the article by Mendoza and Thelen (2008). This article identified and made reference to Anderson and Billou‘s strategies and innovations used to make it easier for the poor to access product and services - availability.

Lastly but not least is the paper by SadreGhazi and Duysters (2008. Their paper touched on a variety of approaches needed, as covered by Anderson and Billou (2007), in order to access and educate consumers at low-income markets.

Brand equity as a set of fundamental dimensions grouped into a complex system comprising mainly: brand awareness, brand perceived quality, brand loyalty and brand associations. Aaker suggests a “brand equity ten” model for assessing brand equity (Aaker, 1996), taking into consideration several factors among which brand awareness is fundamental. Building a strong brand within consumers’ minds means creating a positive brand evaluation, an accessible brand attitude, and a consistent brand image, the accessible brand attitude actually referring to what the others term as awareness. (Chris Brogan, 2010)

Brand awareness is essential in buying decision-making as it is important that consumers recall the brand in the context of a given specific product category, awareness increasing the probability that the brand will be a member of the consideration set. Awareness also affects decisions about brands in the consideration set, even in the absence of any brand associations in consumers‘ minds. In low involvement decision settings, a minimum level of brand awareness may be sufficient for the choice to be final. Awareness can also influence consumer decision making by affecting brand associations that form the brand image.

Data analysis & interpretation

Percentage Analysis

Figure 7.1 Table showing annual income of respondents

Particulars Number of Percentage respondents

Above 15 5 5 lakhs

10-15 lakhs 10 10

5-10 lakhs 27 27

Below 5 58 58 lakhs

Total 100 100

Inference

Majority of the respondents have income below 5 lakhs. 27% have income in the range of 5-10 lakhs. 10% have income in the range of 10-15 lakhs and only 5 % have income above 5 lakhs. Therefore it can be inferred that the income of majority of people in the region is below 5 lakhs.

Figure 7.2 Table showing unawareness of brands of V-GUARD. 33

Particular Number of Percentage s respondents

Stabilizers 0 0

Water 0 0 Heaters

Fans 0 0

Water 0 0 Pumps

Cables 27 27

UPS & 0 0 Inverters

Switchgea 51 51 rs

Total 100 100

Inference

More than half of the respondents said that they have not heard about switchgears of V- GUARD and 27% said that they have not heard about cables of V-GUARD. The respondents have heard about all the other brands of V-GUARD including fans which is the product under this study. Therefore it can be inferred that all the respondents have heard about V-GUARD fans.

Figure 7.3 Table showing ranks given by the respondents in the brand recall order for V- GUARD fans.

Rank Number of Percentage respondents

1 0 0

2 0 0

3 10 10

4 41 41

5 16 16

6 33 33

Total 100 100

Inference

When asked to rank the V-GUARD fans in the brand recall order, 41% of the respondents ranked it 4th, 33% ranked it 6th, 16% ranked it 5th and the highest rank given for V-GUARD fans is 3 and it was given by 10% of the respondents. Therefore it can be inferred that the promotion done for V-GUARD fans is not effective.

Figure 7.4 Table showing brands of fan which were ranked 1 by the respondents in the brand recall.

Brands Number of Percentage respondents

Crompton 7 7 Greaves

Khaitan 22 22

Usha 40 40

Orient 21 21

Havells 10 10

Vguard 0 0

Inference

Usha fans were ranked 1 by 40% of the respondents. Khaitan fans were ranked 1 by 22% of the respondents. Orient fans were ranked 1 by 21% of the respondents. Havells were ranked 1 by 10% and Crompton Greaves were ranked 1 by 7% of the respondents. V-GUARD fans were not ranked 1 by anyone of the respondents. Therefore it can be inferred that V-GUARD never comes first to the minds of people when they think about a brand of fan.

Figure 7.5 Table showing perception of respondents about V-GUARD fans.

Particulars Number of Percentage respondents

Niche product 41 41

Market leader 0 0

Differentiated 59 59 strategy

None 0 0

Total 100 100

Inference

Majority of the respondents i.e. 59% opined that V-GUARD has a differentiated strategy for fans and 41% opined that it is a niche product. Therefore it can be inferred that the perception of people about V-GUARD fans is almost true.

Figure 7.6 Table showing media through which respondents got to know about V-GUARD fans.

Particulars Number of Percentage respondents

Television 24 24 hoardings

Newspapers 66 66 & Magazines

Friends & 10 10 Relatives

Other 0 0

Total 100 100

Inference

More than 65% of the respondents have heard about V-GUARD fans through newspapers and magazines. 10% of respondents came to know about it through television hoardings and 10% heard it from friends and relatives. Therefore it can be inferred that print media has been effective in promoting the brand but visual media is not made use of to the full.

Figure 7.7 Table showing exposure of touch points to the respondents.

Particulars Number of Percentage

respondents

Exhibitions 18 18

Point of sale 9 9

Showrooms 73 73

Sales 0 0 representatives

Other 0 0

Total 100 100

Inference

Majority of the respondents i.e. 73% were exposed to showrooms the most. 18% were exposed to exhibitions and 9% were exposed to point of sale. Therefore it can be inferred that the integrated marketing communication tools have not been utilized effectively.

Figure 7.8 Table showing the opinion of respondents about the most attractive feature of V- GUARD fans.

Particulars Number of Percentage respondents

Price 10 10

Quality 21 21

Brand 69 69 Image

After sale 0 0 service

Total 100 100

Inference

Nearly 70% of the respondents considered brand image as the most attractive feature of V- GUARD fans. 21% rated quality and 10% rated price as the most attractive feature. Therefore it can be inferred that the brand equity of V-GUARD mother brand is so good and the people consider it well above all the other features offered by its product lines.

Figure 7.9 Table showing opinion about quality of V-GUARD fans.

Particulars Number of Percentage respondents

Excellent 8 8

Good 49 49

Average 33 33

Poor 10 10

Total 100 100

Inference

Nearly half of the respondents opined that the quality of V-GUARD fans is good. 33% opined that the quality is average. 10% said that the quality is poor and only 8% said that the quality is excellent. Therefore it can be inferred that the quality of V-GUARD fans is good.

Figure 7.9 Table showing opinion of respondents about price range of V-GUARD fans.

Particulars Number of Percentage respondents

High 32 32 40

Affordable 52 52

Cheap 16 16

Total 100 100

Inference

Majority of the respondents i.e. 52% find the price range of V-GUARD fans affordable. 32% find it high whereas 16% find it cheap. Therefore it can be inferred that the price range of V- GUARD fans is reasonable.

Figure 7.10 Table showing visibility of promotions done by retailers for V-GUARD fans.

Particulars Number of Percentage respondents

Many times 8 8

Often 13 13

Sometimes 36 36

Never 43 43

Total 100 100

Inference

Majority of the respondents i.e. 43% opined that they have never seen promotions done by retailers for V-GUARD fans. 36% said that they have seen it sometimes. 13% said that they

have often seen the promotions and 8% opined that many times they have seen the promotions done by retailers. Therefore it can be inferred that there is poor promotion from the part of retailers for V-GUARD fans.

Figure 7.11 Table showing opinion of respondents about convenience of retail location.

Particulars Number of Percentage respondents

Yes 73 73

No 27 27

Total 100 100

Inference

Majority of the respondents i.e. 73% opined that the retail locations of V-GUARD fans are convenient whereas 27% opined that the retail locations are inconvenient. Therefore it can be inferred that the retail outlets are easily accessible by the customers and it is convenient as well.

FISHBONE DIAGRAM

Figure 7.12 Ishikawa diagram showing the factors that lead to low market share of V-GUARD fans.

Wrong price Ineffective Poor recall of perception sales personnel advertisement s

Low market share of V-GUARD fans

Extreme Ineffective Lack of support competition distribution from retailers channels

Figure 7.13 Ishikawa diagram showing the different factors that influence the market share of

V-GUARD fans.

Price Product Promotion Place

Publicity After sale service Affordability Accessibility Customer Point of sale perception Availability Dealers Acceptability Sales promotion Design Convenience Awareness Distributors Exhibitions Competitor’s Quality Sales Prompt price Delivery representatives Wholesalers & retailers Brand Image Advertisements Market share of V-GUARD Government Materials fans Scheduling regulations Staffing handling Flexibility Cost of materials Economic conditions Training Market Productivity Communication policies Cost control intermediaries Data Integrity Orientation Availability Quality Competitors control 43 Customer preferences Bottlenecks Management Responsibility support

Methods Men Materials Market

CHI-SQUARE TEST

Table showing age of respondents.

Particulars Number of Percentage respondents

Below 30 27 27

30-40 44 44

40-50 17 17

Above 50 12 12

Total 100 100

Test the significance of opinion about recall of V-GUARD products with respect to age of respondents.

Table showing recall of V-GUARD products with respect to age.

Attributes Below 30-40 40-50 Above Total 30 50

Yes 21 29 16 11 77

No 6 15 1 1 23

Total 27 44 17 12 100

Null hypothesis (H0):

Ho: there is no significance relationship between recall of V-GUARD products and age of respondents.

Alternate hypothesis (H1)

H1: there is significance relationship between recall of V-GUARD products and age of respondents.

The χ2 value is found with the help of the following formula.

χ2 = ∑ [(O – E) 2 / E]

Here, O = Observed frequencies, E = Expected frequencies and the result are presented below.

χ2 table

Observed frequency(O) Expected frequency (E)

21 20.79 0.0441 0.0021

29 33.88 23.81 0.7027

16 13.09 8.468 0.6469

11 9.24 3.097 0.3351

6 6.21 0.0441 0.0071

15 10.12 23.81 2.3527

1 3.91 8.468 2.1657

1 2.76 3.097 1.1221

χ2= 7.33 Degree of freedom= (r-1) (c-1) = (2-1) (4-1) =1*3= 3 Level of significance= 5% Table value= 7.81 Calculated value is less than the table value so accept null hypothesis. Interpretation There is no significant relationship between recall of V-GUARD products and age of respondents.

2. Table showing perception of respondents about V-GUARD fans.

Particulars Number of Percentage respondents

Niche 41 41

product

Market 0 0 leader

Differentiated 59 59 strategy

None 0 0

Total 100 100

Test the significance of perception about V-GUARD products with respect to income level respondents.

Table showing perception about V-GUARD products with respect to income level respondents.

Attributes Niche product Differentiated Total strategy

Above 15 2 3 5 lakhs

10-15 lakhs 3 7 10

5-10 lakhs 11 16 27

Below 5 lakhs 25 33 58

Total 41 59 100

Null hypothesis (H0): Ho: there is no significance relationship between perception about V-GUARD products and income level of respondents.

Alternate hypothesis (H1) H1: there is significance relationship perception about V-GUARD products and income level of respondents.

The χ2 value is found with the help of the following formula.

χ2 = ∑ [(O – E) 2 / E]

Here, O = Observed frequencies, E = Expected frequencies and the result are presented below.

χ2table

Observed frequency(O) Expected frequency (E)

2 2.05 0.0025 0.0012

3 2.95 0.0025 0.00084

3 4.1 1.21 0.295

7 5.9 1.21 0.205

11 11.07 0.0049 0.0004

16 15.93 0.0049 0.0003

25 23.78 1.488 0.0625

33 34.22 1.488 0.0434 χ2= 0.6086 Degree of freedom= (r-1) (c-1) = (4-1) (2-1) =3*1= 3 Level of significance= 5% Table value= 7.81 Calculated value is less than the table value so accept null hypothesis Interpretation There is no significance relationship between perception about V-GUARD products and income level of respondents.

3. Table showing the opinion of respondents about the most attractive feature of V-GUARD fans.

Particulars Number of Percentage

respondents

Price 10 10

Quality 21 21

Brand Image 69 69

After sale service 0 0

Total 100 100 48

Test the significance of opinion about the most attractive feature with respect to income level of respondents.

Table showing opinion about the most attractive feature with respect to income level respondents.

Attributes Price Quality Brand Image Total

Above 15 - 3 2 5 lakhs

10-15 lakhs 2 2 6 10

5-10 lakhs 2 5 20 27

Below 5 6 11 41 58

lakhs

Total 10 21 69 100

Null hypothesis (H0):

Ho: there is no significant relationship between opinion about most attractive feature and income level of respondents.

Alternate hypothesis (H1)

H1: there is significant relationship between opinion about most attractive feature and income level of respondents.

The χ2 value is found with the help of the following formula.

χ2 = ∑ [(O – E) 2 / E]

Here, O = Observed frequencies, E = Expected frequencies and the result are presented below.

χ2 table

Observed frequency(O) Expected frequency (E)

3 1.05 3.802 3.62

2 3.45 2.102 0.609

2 1 1 1

2 2.1 0.01 0.0047

6 6.9 0.81 0.117

2 2.7 0.49 0.1814

5 5.67 0.448 0.079

20 18.63 1.876 0.1

6 5.8 0.04 0.0068

11 12.18 1.392 0.1142

41 40.02 0.96 0.0239

χ2= 5.85 Degree χ2= 5.85 Degree of freedom= (r-1) (c-1) = (4-1) (3-1) =3*2= 6 Level of significance= 5% Table value= 12.59 Calculated value is less than the table value so accept null hypothesis

Interpretation There is no significance relationship between opinion about most attractive feature and income level of respondents.

Z – TEST

Then z - test is conducted for the hypothesis. For this null hypothesis and alternative hypothesis are set first. Then the standard deviation of the given sample is found out using the formula

Standard deviation, σ = p q

σ = Standard Deviation of the given sample

p = Sample proportion complying

q = Sample proportion polluting

n = Sample size.

p1= x/n, where ‗x‘ is the number of success and ‗n‘ is the sample size.

Z = (p1– p)/σ

If the calculated value is less than that of table value, then the hypothesis H0 is accepted.

Table showing adequacy of features possessed by V-GUARD fans.

Particulars Number of Percentage respondents

Yes 62 62

No 38 38

Total 100 100

Ho: The features possessed by V-GUARD fans are not adequate.

H1: The features possessed by V-GUARD fans are adequate.

Po = 0.38

Qo = 0.62

S. E =

= 0.048

Z= p-P/ S.E

= (1 – 0.62) / 0.048

=7.916

|z| = 7.92

Table value = 1.96

Here table value is less than the calculated value (7.92>1.96)  we reject null hypothesis. Interpretation The features possessed by V-GUARD fans are adequate.

Table showing opinion of respondents about competitors’ edge in the market in terms of price.

Particulars Number of Percentage

respondents

Yes 59 59

No 41 41

Total 100 100

Ho: Competitions do not have an edge in the market in terms of price.

H1: Competitions have an edge in the market in terms of price.

Po = 0.41

Qo = 0.59

S. E =

= 0.049

Z= p-P/ S.E

= (1 – 0.59) / 0.049

= 8.367

|z| = 8.37

Table value = 1.96

Here table value is less than the calculated value (7.92>1.96)  we reject null hypothesis. Interpretation

Competitors have an edge in the market in terms of price.

3. Table showing opinion of respondents about convenience of retail location.

Particulars Number of Percentage respondents

Yes 73 62

No 27 38

Total 100 100

Ho: Retail locations are not convenient.

H1: Retail locations are convenient. Po = 0.27 Qo = 0.73

S. E =

= 0.044

Z= p-P/ S.E

= (1 – 0.73) / 0.044

= 6.136

|z| = 6.14

Table value = 1.96

Here table value is less than the calculated value (6.14>1.96)  we reject null hypothesis. Interpretation Retail locations are convenient.

8. Findings

1. Majority of the respondents i.e. 44% fall in the age group 30-40.

2. Majority of the respondents have income below 5 lakhs.

3. Most of the people have not heard about switchgears of V-GUARD and V-GUARD cables are also not very familiar to the people. People are well aware of all the other brands of V-GUARD.

4. Majority of the people are able to recall the V-GUARD products when they hear about a product category.

5. V-GUARD fans were ranked 4th in the brand recall order out of the six competitive brands of fan by majority of the respondents.

6. Usha fans were ranked 1 by majority of the respondents in the brand recall order.

7. Majority of the respondents are aware about the players in the fan industry and their awareness about the market share of each of the competitor brand of V-GUARD fans is also high.

8. Majority of the respondents have perceived that V-GUARD fans have a differentiated strategy.

9. Majority of the respondents have heard about V-GUARD fans through newspapers and magazines. Only few people have come across television advertisements of V-GUARD fans.

10. Majority of the respondents could not recall the advertisements of V-GUARD fans. Therefore the advertisements of V-GUARD fans are ineffective.

11. Majority of the respondents are exposed to showrooms the most. V-GUARD has not made use of the tools of Integrated Marketing Communication.

12. Majority of the respondents find the features of V-GUARD fans adequate. The Z test suggests that it is true.

13. Majority of the respondents consider brand image as the most attractive feature of V- GUARD fans.

14. Majority of the respondents perceived that V-GUARD fans possess good quality.

15. Price range of V-GUARD fans is found affordable by majority of the respondents.

16. Majority of the respondents believe that price is the factor that gives the competitors an edge in the market. The Z test suggests that it is true.

17. Majority of the respondents are aware about the retail outlets of V-GUARD fans.

18. Majority of the respondents have never seen promotions done by retailers for V- GUARD fans.

19. Majority of the respondents find the retail locations of V-GUARD fans convenient. The Z test suggests that it is true.

20. There is no significant relationship between recall of V-GUARD products and age of respondents.

21. There is no significant relationship between perception about V-GUARD products and income level of respondents.

22. There is no significant relationship between opinion about most attractive feature and income level of respondents.

Suggestions

1. More promotions need to be done for Switchgears and Cables. These products are not often purchased by consumers directly. Hence retailers should be motivated to promote these brands to the intermediaries who make the purchase on behalf of the consumers.

2. Usha fans were ranked 1 by the respondents in the brand recall order. Television advertisements prove to be an important factor that enabled Usha fans to gain the attention of the masses. Hence V-GUARD fans should also engage in promoting the brand through television ads.

3. People believe that V-GUARD has a differentiated strategy and they also believe that the company does not bother about the low market share of V-GUARD fans since the core industry of V-GUARD is different. The perception has to be changed by making reasonable investment in the particular brand. Since the company has been into the fan industry, it has to keep up the reputation.

4. Newspapers and magazines have been used extensively for promoting the brand but the other IMC tools have not been used especially sales personnel. It can also be included to give personal touch to the promotion activities.

5. The perception of people about the quality of V-GUARD fans is good but still they prefer other brands. It shows that there is room for improvement. Customers expect premium quality from a company like V-GUARD.

6. The people find the price range of V-GUARD fans affordable but still they believe that competitors have a lower price. Considering the quality perception of people about V- GUARD fans, it would be difficult to sustain in the market with this range of prices. Therefore the price should further be reduced or the quality should be improved to outrun the competition.

7. The promotions should highlight features like mosquito repellent technology which is unique with V-GUARD fans.

8. Timer facility is also unique which is not found in other brands. According to the retailers, it is features that can make customers prefer this brand. Therefore it should be communicated to the customers.

9. Segmentation needs to be done more effectively. The segment of decorative fans seems to be attractive. More promotion needs to be done for this segment.

10. At present the visibility of promotions done by retailers is poor. Therefore the margin for retailers should be increased to induce them to recommend V-GUARD fans over the other brands.

11. It will be better to have a feedback from the dealers at regular intervals, to minimize the communication gap in the distribution process between the dealers and company people. 12. Trendy designs should be adopted to have an aesthetical appeal which is lacking for V- GUARD fans compared with the competitors‘ products, especially Havell‘s and Crompton Greaves. 13. Periodic training programs should be conducted for the technicians as the company is extending the product line periodically. They should become familiarized with the technical specifications of the products for providing better after sales service.

14. Billboards or hoardings can be used as an outdoor promotional method instead of the existing wall paintings. The billboards are to be more attractive.

15. In store advertising can be designed to increase the number of spontaneous buying decision. Studies revealed that nearly 70% of all buying decisions are made in the store.

16. To encourage repeated purchases, V-GUARD can take many short-term actions such as price promotions, coupons, displays, and repetitive advertising. 57

17. Admissibility of brand ambassadors plays an important role in the advertising campaign. Presently V-GUARD is not having a brand ambassador for the promotion.

Conclusion

From the sustainability point of view, V-GUARD should enter into all aspects of marketing activities to improve the product reach in the future market. The company has mostly achieved success in satisfying its dealers as well as its customers. It is evident from this study and V- GUARD is advised to maintain its quality on its products so as to retain the existing customers and also to attract new customers. The study has been successful in knowing the awareness, acceptability, affordability and availability of V-GUARD fans.

In order to successfully design long term policies aimed to foster manufacturers-customer relationships, it has been demonstrated that manufacturers must give attention to each and every product line.

It is also evident from the study that the people have good respect for the brand. Though the company is not promoting the Fans to a great deal, people do know about the brand and prefer it to some extent. If the company can convince the people that its brand of fans do possess the desired quality like the other brands, it will definitely bring fortune to the company. Moreover, the social welfare activities undertaken by the company has also enhanced the image of the company which will be reflected in the growth of the company ultimately. When all these are put together, it can be concluded that the untapped consumer durable industry is wide open before the product lines of V-GUARD industries especially the brand of fans. A price range that justifies the quality coupled with an effective promotional strategy will do it for the company.

References 1. Anderson, Eugene W., ClaesFornell, and Donald R. Lehmann (1994), ―Consumer Awareness, Market Share, and Profitability: Findings from Sweden,‖ Journal of Marketing, p.53-66. 2. David A. Aaker, p.26 ―Building Strong Brands‖ -New York: Free Press, 1996 3. Farquhar, P.H, p.128, ―Managing Brand Equity‖, Journal of Marketing Research, 2008 4. Keller, K.L. p.30 ―Strategic Brand Management: Building, Measuring and Managing Brand Equity‖, Prentice Hall, 1998 5. Keller, K.L, p.33, ―Conceptualizing, Measuring, and Managing Customer-Based, 1998 6. Mendoza and Thelen, p.69, ―Innovations to Make Markets More Inclusive for the Poor‖, 2008

7. Michael Porter , ―Competitive Advantage: Creating and Sustaining Superior Performance‖ , Free Press, 1985 8. Mitchell V, p. 67 ―Understanding Consumers‖, 1992 9. Prahalad, C.K. & Hart, S.L. (2002).The fortune at the Bottom of the Pyramid. Strategy and Business, Issue 26

10. Philip Kotler, ‖Marketing Management‖,Pearson,1994 11. SadreGhazi, S. (2008) Addressing low-income markets: Reframing Corporate Business Strategies. Oikos Ph.D. summer academy 2008-Entrepreneurial Strategies for Sustainability. 12. Segel & Meghji, p.54, Ownership Cycle‖, Journal of Marketing Management, 2005.

Website references: 1. www.wikipedia.com 2. www.scribd.com 3. www.docstoc.com 4. www.vguard.in

FACTORS INFLUENCING CONSUMPTION EXPERIENCE OF

E-COMMERCE

Dr Sudheer M. Dhume Associate Professor, Department of Marketing, National Institute of Industrial Engineering Mumbai, India

Vinita Singh Research Scholar Department of Marketing, National Institute of Industrial Engineering Mumbai, India ======

ABSTRACT

The purpose of this study is to interpret motivation factors and trust in their consumption experience in the context of E-commerce. This research has been empirically tested with primary data collected from 64 students using factor analysis, ANOVA test and regression analysis. The results indicate that trust had a positive effect on the consumption experience of the consumers in E-Commerce. Utilitarian motivation factors had a negative effect on the consumption experience of consumers, while hedonic motivation factors had a positive effect on the consumption experience of consumers. The finding also indicated that trust is significantly more important than convenience, information, escape and economics from consumers’ perspective. Key words – Consumption experience, Trust, Motivation factors, E-Commerce

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Introduction

The emergence and reach of the internet as a medium of transaction has put the spotlight on Buyer behaviour in an online environment. The analysis of these buying behaviours requires the perspective from the field of Information systems, Marketing Management and Psychology. There are research papers pertaining to online buyer behaviour appearing in journals and conference proceedings in the fields of Information Systems, Marketing Management, and Psychology. The research on online buyer behaviour is relatively new however the majority of the theories it draws are similar to the offline buyer behaviour. However, there are still significant differences between offline and online buyer behaviour that requires a distinguishing conceptualization. For example, the theory of planned behaviour (TPB) used by (George, 2004) to explain the internet purchasing. The net can serve as a potent medium for advertising and promotions. (Sindhav et al., 1999). (Lim., 2013) suggested that online retailers for online market offerings-products, services, information, and experiences-that were considerable value to attract and influence online shopper and the technological interface of online shopping websites should be both useful and user-friendly. Indian youth‘s preference to shop online was governed by the flexibility, convenience, reducing wastage of time, and its utility in helping them browse for information about stores (Khare and Rakesh 2011)). From the previous literature, in the Indian context, little research has been carried out to investigate various motivation factors influencing the consumer experience of the E-Commerce. This research paper is divided into three major sections. First, we discuss the theoretical background and previous research that has been conducted in this area. Second, we present the research methodology. Finally, we provide a general discussion, conclusion and implication. 2. Literature Review

2.1 Shopping motivation

Consumer behaviour research on shopping motivation has fundamentally contributed to understanding the role of the consumer‘s experience in the consumption of E-commerce. (Kargaonkar and Wolin., 1999) to understand the motivation and concerns for web users and captured seven factors: Social escapism, information, interactive control, socialization, economic, transaction-based security and privacy concerns and non-transactional privacy concerns. The majority of academic research articles focused on motivation and concerns for online shopping, consumption and online auctions (Joines et al., 2003; Hur et al., 2007; Topaloğlu.,2012; Cameron and Galloway.,2005; Bagdoniene and Zemblyte., 2009; and Lee et al.,2013). Majority of the internet shopping motivations are widely accepted in utilitarian

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and hedonic perspective (To et al., 2007; Scarpi., 2011; Teo et al., 1999; and Suki et al., 2008). (Parsons., 2002) focused on non-functional (personal and social) motives for online shoppers. Online shoppers were more convenience seekers, innovative, impulsive, and variety seekers (Donthu and Garcia., 1999). (Rohm and Swaminathan., 2004) developed a typology of online shoppers. (Wolfinbarger and Gilly., 1999) focused on goal-oriented and experiential online buyers using qualitative research for analysis.

(Korgaonkar and Wolin,1999) usage of the web for acquiring useful information quickly, easily, and in an inexpensive manner. Convenience refers to consumers‘ motivation to purchase a desired product and obtain electronic appliance related information in a convenient way. Previous studies focusing on online consumer behavior found that Convenience is the important motivation factor (Donthu and Smith, 1999; Rohm and Swaminatham, 2004; To et al, 2007; Joines et al, 2003; Bagdoniene and Zemblyte, 2009; Ganesh et al, 2009), so that convenience is important for online electronic appliance consumption. Economic motivations are also positively related to the amount of online shopping consumers engage in on the web. It refers to the consumer‘s desire to save or make money, bargain efficiently and obtain free product via internet. (Joines et al., 2003). The consumer‘s ability to get free products is another part of economic motivation (Korganokar and Wolin, 1999). The escape motivation for using the web is positively related to shopping online (Joines et al., 2003).

2.2 Trusts

Trust is an important factor affecting consumer behaviour. (Chen and Barnes, 2007) focus on online trust and purchase intention in the context of bookshops concluded that different levels of trust propensity moderate the relationships between consumers‘ online trust and their perceptions of a website. Higher degrees of online initial trust and familiarity with online purchasing stimulate higher consumer purchase intentions. In the e-commerce environment, the role of trust is more important compared to traditional business as increasing uncertainties will be caused by the distance and other impersonal factors. (Wen et al., 2011) developed an integrated model of four constructs: trust, perceived usefulness, satisfaction, and perceived enjoyment. Though we did not find a direct relationship between trust and online repurchase intention, trust influences repurchase intention with the mediation of perceived usefulness. Trust still plays an extremely influential role in repurchase intention in the uncertain online shopping environment (Chiu et al., 2009). (Eddaoudi, 2009) specified that trust in online retailing context is related to any relationship between the online seller and buyer. Several other studies (such as Chiu et al, 2008; George, 2004; Lim,2013) demonstrated the importance of trust as a substantial factor that positively impacts the online shopping behaviour.

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2.3 Consumption Experience

Online consumption could be considered the combination of both online information gathering and online purchasing. That is, consumers really can ―consume‖ two different things online: information and products. These two acts are required for the adoption of eCommerce (Pavlou and Fygenson 2006). The activities involved in consumption have been operationalized as a measure of approach behaviour, for example, the amount of time and money spent, returning and exploration (Donovan and Rossiter, 1982). Hedonic consumption refers to consumers' multisensory images, fantasies and emotional arousal in using products (Holbrook and Hirschman, 1982b). Emotion regulation processes mediate the relationship between hedonic shopping value and repeat purchase intentions (Bui and Kemp, 2013). Consumption calls attention to the experiences when actually consuming it. The current study focuses on the E-commerce and experience through various approaches of interaction.

3. HYPOTHESIS AND RESEARCH MODEL

H1 Trust is positively related to consumption experience.

H2 Information is positively related to consumption experience.

H3 Convenience is positively related to consumption experience.

H4 Escape is positively related to consumption experience.

H5Economic is positively related to consumption experience

Trust H1

H2 Information

H3 Consumption Experience Convenience H4 Escape H5

Economic

Research Model

4. METHOD

A convenience sampling method was employed. Respondents were post graduate and fellow students between the ages of 18 and 41. Survey data was collected through self-administered questionnaires distributed among 70 students. Where 64 were successfully completed and 63

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therefore included in the data analysis. The questions were adopted from previous studies in the existing online consumer behaviour literature. Multiple measures for each of the motivation factors and trust were developed and modified from the items of existing scales (Hur et al, 2007; Rohm and Swaminatham, 2004; Korgaonkar and Wolin, 1999; Bagdoniene and Zemblyte, 2009). On the basis of the review and synthesis of relevant literature, we generated 14 items for four motivational factors and 5 items for trust and 4 items for consumption factors in this study. The format of the instrument was a seven-point Likert scale ranging from (1) strongly disagree to (7) strongly agree. Data collected from the questionnaire were analyzed using SPSS 20 (for reliability testing, exploratory factor analysis, ANOVA, and regression analysis).

5. ANALYSIS AND RESULTS

5.1. Sample description

As illustrated in Table 1, respondents were 64 of which 68.8 % were males, 31.3 % were females. Respondent were students, Majority of age between 20 to 31. The results also showed that the majority of the students have been using the internet for more than seven years. With respect to the product purchased online, the results showed that 59.9%, for the most frequently purchased electronic items.

Characteristics Frequency Percent

Gender

Male 44 68.8

Female 20 31.3

Age

20-25 26 40.6

26-31 32 50.0

32-37 4 6.3

37-41 2 3.1

Internet experience

<1 1 1.0

1-3 5 8.0

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4-6 25 39.0

>7 33 52.0

Frequency of online buying

Twice per year 19 29.7

Monthly 38 59.4

Weekly 7 10.9

Table1-Sample Demographics

5.2 Exploratory factor analysis

At the initial stage of analysis, exploratory factor analysis was conducted using Principal Component Approach with a varimax rotation. In this study, the result of Bartlett‘s test of sphericity (0.00) and KMO (0.7) indicates that the data are appropriate for factor analysis. In the analysis only the factors having latent roots or eigen value greater than 1 were considered significant. Total five factors were extracted during this stage of exploratory factor analysis. All the five factors together explaining 74 percent of the variance. These five factors were Trust, Convenience, Information, Escape, and Economic. Factor loadings for each item ranged from 0.90 to 0.59. The final research constructs and corresponding measurement items are presented in Table 2.

Std. Factor Cronbach’s Factor and items Mean Deviation loading Alpha

Trust 0.86

I feel safe in transacting with the 5.02 1.453 .680 website/online store

I believe the websites/online store can 4.48 1.652 .904 protect my private data.

I select online stores for electronic items, 5.27 1.238 .601 which I believe are honest.

I feel that this online vendor for electronic 5.00 1.321 .841 stores would provide me with good service

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I feel that the online vendor is trustworthy 5.00 1.297 .744

Convenience .85

It is convenient to buy electronic products 5.58 1.389 .789 online

Using the internet makes it easier to shop 5.86 1.082 .765 for electronic products

Shopping through the Internet is a 5.44 1.167 .814 pleasant experience for electronic products

Internet ordering is convenient for 5.63 1.162 .856 electronic products

Information .85

The electronic products related information 6.20 .995 .755 obtained from the internet is useful.

Internet provides quick and easy access to 6.28 .917 .675 large volumes of information about electronic products.

Internet helps collecting detailed 6.34 .946 .888 information about electronic products/services.

Internet helps comparing prices of 6.38 1.000 .853 electronic products/services offered by different companies.

Escape .80

Browsing electronic products arouses my 4.48 1.522 .817 emotions and feelings

Browsing electronic products excites me 4.58 1.520 .862

Browsing electronic products provides an 3.89 1.765 .775 outlet for me to escape my daily routine

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Economic 0.63

Buying electronic products or services 5.41 1.433 .590 online save me money

When I want to buy electronic items, I use 5.73 1.198 .694 the internet to search for bargain prices

The prices of electronic products and 5.72 1.228 .703 services on the internet are great

Table2

5.3 ANOVA test

ANOVAa

Sum of Mean Model Squares df Square F Sig.

1 Regression 498.907 5 99.781 6.329 .000b

Residual 914.452 58 15.766

Total 1413.359 63 a. Dependent Variable: Con= Consumption experience b. Predictors: (Constant), Cov=Covenience, Esc- Escape, Eco-Economic, Inf - Information, Tru- Trust

Table 3

The P-value from the ANOVA table is less than 0.01, which means that at least one of the variables can be used to model the consumption experience.

5.4 Multiple regression analysis

The main effects of Information, Convenience, Escape, Economic and Trust were included as independent variables. The variable Consumption experience was used as the dependent variable. To test our hypotheses, we conducted a multiple regression analysis.

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Unstandardized Standardized Model Coefficients Coefficients

B Std. Error Beta T Sig.

(Construct) 5.560 4.951 1.123 .266

Trust .460 .107 .547 4.309 .000

Economy -.021 .200 -.013 -.105 .917

Escape .057 .133 .050 .434 .666

Information .005 .175 .004 .031 .976

Convenience .143 .139 .121 1.030 .307

Table 4

Results showed that there is a significant relationship between the Trust and Consumption Experience. There was no significant relationship between Information, convenience, escape, and economic with consumption experience see table 4.

6. CONCLUSION AND IMPLICATIONS

This paper empirically validates the conceptual links established between information, convenience, escape, economic, trust and consumption experience in E-commerce.

It was found that there is a strong relationship between the Trust and Consumption experience. Utilitarian motivation factors such as information, convenience, and escape, economic have no significant effect on consumption experience.

Hypothesis Results (Accept/Reject)

H1 Trust is positively related to consumption experience. Accepted

H2 Information is positively related to consumption experience. Rejected

H3 Convenience is positively related to consumption experience. Rejected

H4 Escape is positively related to consumption experience. Rejected

H5Economic is positively related to consumption experience. Rejected

Table 5- Hypothesis results

The result indicates that Trust is an important factor in enhancing the consumption experience in E-commerce, which is in line with (Chiu et al, 2009; George, 2004) findings.

The limitation of the study with regards to the smallness of sample and non-inclusion of other relevant constructs influencing online consumer experience like Motivation-Hedonic, website service quality and customer perceived value. A more comprehensive model with the inclusion of the above items can result in greater predictability.

The study yields two important practical managerial implications. First, the finding suggested that managers and practitioners should concentrate on increasing the trust of the consumer towards online shopping. Second, the perceived integrity of the online vendor has the strongest predictive value in terms of the formation of consumers‘ trust in online shopping. The marketers need to manage it well.

References

1. Bagdoniene & Zemblyte. (2009). Online shopping motivation factors and their effect on Lithuanian consumers Economic & Management, (14)3, 67-374.

2. Bui. M., & Kemp. E. (2013). E-tail emotion regulation: examining online hedonic product purchases. International Journal of Retail & Distribution Management, (41) 2, 155 – 170.

3. Cameron. D.D. & Galloway. A. (2005). Consumer motivations and concerns in online auctions: an exploratory study. International Journal of Consumer Studies, (29)3, 181-192.

4. Chen. Y. H., Barnes. S., (2007). Initial trust and online buyer behavior. Industrial Management & Data Systems, (107)1, 21 – 36

5. Chiu. C.M., Chang. C. C., Cheng. H. L., & Fang. Y. H. (2009). Determinants of customer repurchase intention in online shopping. Online Information Review, (33) 4, 761-784

6. Donovan, R.J. & Rossiter, J.R. (1982). Store atmosphere: an environmental psychology approach. Journal of Retailing, (58)1, 34-57.

7. Donthu, N. & Garcia, A. (1999). The Internet Shopper. Journal of Advertising Research, 39.

8. Gefen, Karahanna & Straub. (2003). Trust and TAM in online shopping: AN integrated model. MIS Quarterly, (27) 1, 51-90

9. George. (2004). The theory of planned behavior and internet purchasing. Internet research, (14) 3, 198-212

10. Hirschman, E. C. & Holbrook, M. B. (1982). Hedonic Consumption: Emerging Concepts, Methods and Propositions. Journal of Marketing, (46), 92-101

11. Hur. Y, Yong Jae Ko. Y.K., & Valacich. J. (2007). Motivation and Concerns for Online Sport Consumption. Journal of Sport Management, (21), 521-539

12. Joines, Scherer, & Scheufele. (2003). Exploring motivations for consumer web use and their implications for e-commerce. Journal of consumer marketing, (20) 2, 90- 108

13. Khare.A, Rakesh. S., (2011). Antecedents of online shopping behavior in India: An Examination. Journal of internet commerce, (10), 227-244

14. Korgaonkar, P.K. & Wolin, L.D. (1999). A multivariate analysis of web usage. Journal of Advertising Research (39)2, 53–68

15. Lim. W.M. (2013). Toward a Theory of Online Buyer Behavior Using Structural Equation modeling. Modern Applied Science (7) 10

16. Parsons. A. G. (2002). Non-functional motives for online shoppers: why we click. Journal of Consumer Marketing, (19) 5, 380 – 392

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20. Sindhav, Birud, Balazs, & Anne. L . (1999). A model of factors affecting the growth of retailing on the internet. Journal of market-focused management,(4), 319-339

21. Suki. M. N., Ramayah. T. and Suki. M. N., (2008). Internet shopping acceptance: Examining the influence of intrinsic versus extrinsic motivations. Direct Marketing: An International Journal, (2)2, 97-110

22. Teo. (2002). Attitudes towards online shopping and the internet. Behavior and Information technology, (21) 4, 259-271

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24. Topaloğlu. C., (2012). Consumer motivation and concern factors for online shopping in Turkey. Asian Academy of Management Journal, (17) 2, 1–19

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AN ASSESSMENT OF HOTEL PRODUCT QUALITY IN KOLKATA AS A BASIS OF BUILDING DESTINATION COMPETITIVENESS

Dr. Debaprasad Banerjee Principal Global Group of Institutions Haldia, West Bengal, India ======

ABSTRACT

The objective this research paper is to develop a destination loyalty theoretical model by using tourist perception, destination image and tourist satisfaction. This study analysis component, attributes, factor influencing the destination image and examine the tourist satisfaction and determinants of destination loyalty. This is a conceptual paper attempts at evaluating recent empirical on destination image, tourist satisfaction and loyalty. Competitiveness has been a subject of study in the manufacturing and related sectors since the early 1990s. However, only recently have some researchers started to examine the tourism and hospitality competitiveness, both conceptually and empirically, with a particular focus on tourism destinations and the hotel industry. The goal of this paper is to review the published studies on destination and hotel competitiveness, provide critiques, and point out future directions in tourism and hotel competitiveness research. Such a review shall provide researchers with a good understanding of the current status of competitiveness research and with a vision for advancing the existing knowledge of destination and hotel competitiveness.

Keywords: Competitiveness, Destination, Hotel, Product

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Introduction

India is rapidly becoming one of the most sought after economies in the world. With a GDP growth of 7 to 9%, year on year for the last four years, an increasing emphasis on infrastructure development, a new branding of the country as a tourist destination, Incredible India is poised to grow dramatically into one of the world's leading economies in another ten to fifteen years. With its unique mix of tradition, culture and modernity it is a must visit on the list of destinations for global travellers. The tourism industry is leading the way in India achieving worldwide recognition and popularity. Today, more countries than ever before have given utmost preference to revenue generation by focusing on the promotion of international tourism. Path breaking measures introduced in the aviation sector like long-haul flights have shrunk the distance between continents and the booking procedures have become simplified with the availability of web based information on the finger tips. Competition among tourist products and destinations is the order of the day and every destination is striving for their share of the market. The degree of motivations and expectations followed by habits and lifestyle of tourists has undergone radical changes. These changes are the glaring indicators and catalysts for the destinations to imbibe the spirit of competition, taking into account the tourist‘s profile, activities and interaction with the environment. These destinations should be thought of as evolving a competitive destination image in the form of a definite brand image that have to be managed effectively and positioned strategically. More particularly, countless tourist destinations in India remain untapped and unexplored in many ways. These destinations need to foray into an aggressive brand campaign to position fabulous tourist attractions in the international tourist market. The hospitality industry is a service-oriented industry. The hotel provides the use of the room for the duration of the time that the customer has paid for. Perishability is the key feature of this industry. Service products vary from one experience to the next, from customer to customer, as well as for the same customer from one occasion to the next. The hospitality industry is extremely sensitive to economic cycles. Asia is anticipated to account for more than 41.0% of the worldwide growth in outbound travel and tourism for the next decade. Within the BRIC countries (Brazil, Russia, India and China), a middle class that is eager and able to travel is developing. According to a recent Bloomberg survey, China, Brazil and India are preferred places to invest globally. The projections by Goldman Sachs that as many as 2bn people may join the middle class by 2030, and that the BRIC and N11 economies may represent as much as 60% of the world‘s GDP by 2050, suggest that there are significant opportunities for expansion. The growth of the Hotel Industry is largely due to the rising business opportunities, strong economic performance and cross border investments. India has currently base of 110,000 hotels rooms and still face the shortage of 73

150,000 rooms. There is a mismatch between demand and supply, leading to higher occupancies and average room rates. Occupancy rates across India have improved from 52 percent in 2005 to 67 percent in 2009- 2010. Average Room Rates across cities have improved from USD 51.6 to USD 76.4 in the same period. Over the years the demand for the five stars- deluxe hotels have been increasing. West Bengal is a developed and industrial state. It is the gateway to the eastern and the north- eastern states. It was the erstwhile British Capital. The state is well known for rice cultivation and agriculture which is the backbone of economy. Agriculture is the mainstay for about 70 percent of the population. West Bengal has a vast stretch of arable land which is 62.8 percent of the total area of 55,414 sq. km. The State has a total of 13.38 percent of forest area. The remaining area is utilized for other purposes. The State is comprised of 18 districts and Kolkata is the state capital and is one of the metropolitan cities in India. There are over 23 towns with a population of over 100,000. The largest cities are Kolkata, Howrah, Asansol, Durgapur and Siliguri. Other important towns include Darjeeling, Kharagpur and Haldia. Kolkata is amongst the largest metropolitan regions in the world. The state is bordered by the countries like Nepal and Bangladesh and the states of Orissa, Jharkhand, Bihar, Sikkim, Assam, and Meghalaya in different directions. From north to south, it stretches from The Himalayan Mountain regions to the Gangetic plain and the Bay of Bengal. The land is mostly plain except the northern region that is dotted with the different Himalayan mountain peaks. On the basis of landforms, the state can be divided into the regions such as the Darjeeling Himalayan hill region, the Terai region, the North Bengal plains, the Rarh region, the Coastal plain, the Sunderbans, theWestern plateau, the high lands and the Ganges delta.

OBJECTIVES OF THE STUDY

 To recognize the different products and services presented by the hotels.

 To scrutinize the level of quality of service offered by the hotels at Kolkata.

 To analyze the overall tourist satisfaction in terms destinations image building.

LITERATURE REVIEW

The tourist product is a composite product consisting of several components (Burkart and Medlik, 1981:195). It is also labelled as a ―package‖ (Jeffries, 1971:4), an ―amalgam‖ (Medlik and Middleton, 1973:132) or a bundle‖ (Middleton, 1989) of tangible and intangible components. These components complement each other, i.e. they are functionally interdependent as each one provides only a part of the total sum of benefits sought by tourists (Mrnjavac, 1992:122). It is widely acknowledged that tourism destinations must be included in the consumers‘ evoked set, from which an ultimate decision is made (Cai, Feng, & Breiter, 2004; Dana & McClearly, 1995; Leisen, 2001; Tasci & Kozak, 2006). Tourist products consist of numerous components due to their complex nature. The analysis of the tourism literature has revealed several approaches to the components, with the 74

respective authors not agreeing (1) on what constitutes a component of the tourist product and (2) on how the components are classified. These components come in various forms (Koutoulas, 2001:394). Integral products that can be sold independently on the market (such as hotel accommodation, air transport, admission to visitor attractions etc.) ―Free‖ or ―public‖ goods, such as the climate and the scenery that can be used or consumed by tourists free of charge (Scheuch, 1982:87; Leiper, 1990:147).

Destination branding can be defined as a way to communicate a destination‘s unique identity by differentiating a destination from its competitors (Morrison & Anderson, 2002). Similar to the general knowledge on brands, destination brands exert two important functions: identification and differentiation. In the branding literature, the meaning of ―identification‖ involves the explication of the source of the product to consumers. While a product in general terms represents a physical offering, which can be easily modified, a place as a product is a large entity which contains various material and non-material elements to represent it (Florek, 2005).

The competitiveness of a country derives from the performance of its enterprises (Barros, 2005), which certainly include the hotel industry. While a community‘s growth stimulates hotel performances, in turn hotels contribute to the community‘s economic, social, and cultural development (Go, Pine, &Yu, 1994). The hotel industry benefits from a destination‘s economic growth and stability and community developments, such as office buildings, retail malls, and entertainment facilities, which draw both business and leisure travellers and help, create demand for hotel rooms. There are many other factors (e.g., input, process, output, and outcome) that determine hotel industry‘s competitiveness. Indeed, hotels utilize input factors and produce a variety of products and services (outputs), and the nature of these outputs depends very much on hotels‘ strategic and competitive positions in the region. The impact of these measures in terms of tangible outcomes is reflected by the market share of the hotel industry and by the price competitiveness of the hotel industry in the regional market.

Productivity is always a top priority for hotel operators (Reynolds & Thompson, 2007; Sigala, 2004; Wang, Hung, & Shang, 2006). Hotel productivity generally encompasses an umbrella concept that includes efficiency, effectiveness, quality, predictability, and other performance dimensions, as well as a concept reflecting only production efficiency (Sigala, 2004). According to Lovelock and Young (1979), service firms can increase productivity in four ways. Firstly, the firm can improve its labor force through better recruiting or more extensive training (human capital). Secondly, it can invest in more efficient capital equipment (capital). Thirdly, the firm can replace works with automated systems (technology). Lastly, the firm can recruit consumers to assist in the service process. As labor costs generally account for the highest percentage of hotel operating expenses, these four ways of enhancing productivity could serve to help produce the highest level of output with the lowest level of input.

Consumer (dis)satisfaction consists of the general feelings that a consumer has developed about a product or service after its purchase (Westbrook & Oliver, 1991). In addition, this is influenced by items such as culture, social class, personal influence and family, and other individual differences (motivation and involvement, knowledge, attitude, lifestyle, personality, and demographics) (Engel, Blackwell, & Miniard, 1990). Numerous studies have linked satisfaction with product attributes (Choi & Chu, 1999), instead of the product themselves (Mittal, Kumar, & Tsiros, 1999; Ratchford, 1975; Ladd & Zober, 1977). Attributes are the underlying characteristics of the product or service. According to Ratchford (1975), product attributes may be measured either objectively (e.g., presence of facilities, number of rooms, etc.) or perceptually (e.g., cleanliness of hotel, staff‘s helpfulness and efficiency, etc.) (Oh, 1999; Dube, Enz, Renaghan, & Siguaw, 1999).

A conclusion can be drawn from these above literature review, that tourism and hotel is dependent to each other. This report has reviewed the literature and current trends for tourism, with a specific focus on tourism and hotel. That is why hotels are the main pillar of tourism. This review article served the purpose of providing updated knowledge on theories, concepts, ideas and empirical studies on competitiveness in the context of tourism destinations and the hotel industry and should assist, to a large extent, researchers in advancing from existing knowledge bases. So, this type research work can also be conducted in Kolkata. But, there is one drawback, i.e. this particular type of research work in Kolkata is rare in nature. So, it provides an ample opportunity for me to do research work in this less known area. INDIAN HOTEL INDUSTRY – CURRENT AND EMERGING TRENDS

The constant transformation has made the Indian hotel industry more functional and practical and has gained a level of acceptance world over. The standards of facilities and services offered have evolved over the last decade towards the extensive use of technology, environment friendly services, pricing, market segmentation, regional preferences, etc. The Indian hotel industry has seen a significant growth in room inventory across categories from upscale luxury to limited services and, boutique and budget hotels. The occupancy and the room rates have seen continued gains both from the domestic and the international traveller in both the business and leisure segment.

With the continued growth in India's GDP, improvement in the per capita income, and increased inspirational spending, the Indian hospitality sector is expected to grow faster than most countries around the world. According to the Consolidated FDI Policy, released by DIPP, ministry of Commerce and Industry, government of India, the government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism related industry. The inherent strength of the Indian economy has led to increased international visits to India. For foreigners, the travel time has increased to three-five days for business travel and from five days to seven-10 days for leisure travel. The government of India has

announced a scheme of granting tourist visa on arrival (T-VoA) for the citizens of Finland, Japan, Luxembourg, New Zealand and Singapore.

Federation of Hotel and Restaurant Associations of India states that India currently has over 200,000 hotel rooms spread across hotel categories and guest-houses and is still facing a shortfall of over 100,000 rooms. Leading hotel brands have pepped up their investments and are in various stages of commencement of new proprieties in India, both in metro and non- metro cities. Cities such as Hyderabad, Pune, Jaipur and Chandigarh have emerged as growth markets. The emergence of these secondary and tertiary cities has led to an aggressive increase in hotel development activity, which was previously dependent in just five main cities. Another trend that has now emerged in the various major markets is the growth of micro-markets, especially in the larger cities like Delhi, Mumbai, Chennai, etc, where travel time has increased. For example, Taj Group, while it was feasible to build two luxury hotels in Delhi, the presence of independent micro-markets has lead them to open business hotels in other parts of National Capital Region. Vivanta by Taj at Dwarka, Delhi and Gurgaon are the under construction Taj projects.

Facts and Figures of Indian Hospitality industry:

 The Hospitality industry is the third-largest foreign exchange earner, accounting for 6.23% of India‘s GDP and 8.78% of India‘s total employment, according to a report by the Planning Commission.

 Tourism in India is the largest service industry. The travel and tourism sector currently employs 49 million people, or 1 in every 10 jobs, and this is projected to increase to 58 million, or 1 in every 9.6 jobs by 2020.

 Travel and tourism is a USD 32.7 billion business in India, according to industry estimates; in addition, the hospitality sector is sized at USD 23 billion and is expected to grow to US$ 36 billion by 2018.

 It is expected that the hospitality sector will witness an inflow of USD 12.17 billion in investments over the next two years, according to market research company Technopak Advisors.

 According to the Planning Commission, the hospitality sector creates more jobs per million rupees of investment than any other sector of the economy. The World Travel & Tourism Council (WTTC), which says India‘s travel and tourism sector is expected to be the second-largest employer in the world, employing 40,37,000 people, directly or indirectly, by 2019.

 The Indian hotel industry is likely to witness a revenue growth of about seven per cent in 2012-13, according to a study by rating agency ICRA. 77

 Foreign Tourist Arrivals (FTAs) to India increased from 5.17 million in FY09 to 5.78 million in FY10, thereby resulting in a increase of 11.8% Y-o-Y. It was better than UNWTO's projected growth rate of 5% to 6% for the world in 2010.

 The share of India in international tourist arrivals in 2010 was 0.61%, which is 0.02% improvement over 2009. India's rank improved to 40th in 2010, from 41st in 2009. ● FTAs during the period January-June 2011 were 29.19 lakh with a growth of 10.9 per cent, as compared to the FTAs of 26.32 lakh with a growth of 8.9 per cent during January-June 2010 over the corresponding period of 2009.

 FEE from Tourism in INR terms during January-June 2011 were INR 351.6 billion with a growth of 12.1 per cent, as compared to the FEE of INR 313.7 billion with a growth of 27.1 per cent during January-June 2010 over the corresponding period of 2009. ● FEE from Tourism in terms of US$ during January-June 2011 were US$ 7.8 billion with a growth of 14.2 per cent, as compared to US$ 6.8 billion with a growth of 36.6 per cent during January-June 2010 over the corresponding period of 2009. ● Tourism continues to play an important role as a foreign exchange earner for the country. In 2010, foreign exchange earnings (FEE) from tourism were US$ 14.19 billion as compared to US$ 11.39 billion in 2009, registering a growth of 24.6%.

 FEE from Tourism in INR terms during 2010 were INR 648.8 billion as compared to INR 549.6 billion during 2009 and INR 507.3 billion during 2008. FEE from tourism in US$ terms during 2010 were US$ 14.2 billion as compared to US$ 11.4 billion during 2009 and US$ 11.7 billion during 2008.

 Number of domestic tourist visits in India during 2010 was 740.21 million as compared to 668.80 million in 2009, with a growth rate of 18.8 %.

 Number of Indian national departures from India during 2010 was 12.99 million as compared to 11.07 million in 2009, registering a growth rate of 17.4%.

Government Initiatives: To unlock the huge potential in this sector, the government has taken various initiatives for the development of this sector.

 Launch of Incredible India campaign to promote tourism both in domestic and international markets.  Guidelines issued for classification of Apartment Hotels / Timeshare Resorts / Guest Houses and Bed & Breakfast establishments. Railways have planned to set up 100 budget hotels at various stations along with private hospitality players. Recognition of spare rooms available with various house owners by classifying these facilities as "Incredible India Bed and Breakfast Establishments"', under 'Gold' or 'Silver' category.  Other Initiatives by the Ministry of Tourism: - Paradigm shift towards Rural Tourism / Agri Tourism, Eco-Tourism; Medical Tourism launched as a new product. 78

 The Government has launched a Scheme of 'Visa on Arrival' (VoA) from January 2010 for citizens of five countries, viz. Finland, Japan, Luxembourg, New Zealand and Singapore, visiting India for tourism purposes. The Government has now extended this Scheme for the citizens of six more countries, namely Cambodia, Indonesia, Vietnam, Philippines, Laos and Myanmar from January 2011. During the period January-June 2011, a cumulative figure of 5774 VoAs were issued, with a total of 865 & 770 VoAs issued in the months of May & June respectively.  Ministry of Tourism has tied up with United Nations Development Programme (UNDP) to promote rural tourism. 15 key tourist destinations/circuits being developed to world class standards and identified 50 villages for exposition of handicrafts and handloom.  A maximum amount of Rs.50 lakh is sanctioned for each rural tourism project under the Rural Tourism Infrastructure Development scheme for development of tourism related infrastructure.  The Ministry of Tourism has launched a scheme for development of nationally and internationally important destinations and circuits through Mega Projects. As on 4.2.2011, 38 mega projects have been identified, out of which 26 projects have already been sanctioned.  The United Nations Educational Social and Cultural Organization have declared 16 centrally protected monuments: Ajanta, Ellora, Elephanta Caves, Agra Fort, Taj Mahal, Fatehpur Sikri, the Sun Temple at Konark, the Churches and Convents of Goa, Khajuraho, the Buddhist monuments of Sanchi, Humayun's Tomb, Qutab Minar, Hampi monuments, Pattadakal monuments, Brihadisvara temple and the Mahabalipuram monuments as world heritage sites.  The Ministry of Tourism has sanctioned 781 projects in 34 States / Union Territories (UTs) in the country amounting to US$ 511.82 million during the last three years up to June 2010, as per a press release dated October 18, 2010.  During the 11th Five Year Plan, (as on 31.12.2010) Ministry of Tourism has sanctioned an amount of Rs.3112.71 crore for 991 tourism infrastructure projects, including Rural Tourism and Human Resource Development projects.  924 Infrastructure projects worth Rs.1440.86 crore sanctioned during the 10th Plan. The government has already okayed plans to substantially upgrade 28 regional airports in smaller towns. The upgradation of national highways connecting various parts of India has opened up the way for the development of budget hotels in India.  Focus on Buddist Circuit through infrastructure upgradtion of Buddist Circuits and "Walk with the Buddha" Campaign. The Tourism Ministry has identified 62 centres of Buddhist interest for development.  Tourism revival in J&K through a special tourism package. Focus on North East as India's tourism gateway to the East.  Tourism ministry has proposed to declare a conditional 10-year tax holiday for all tourism projects in the country. Companies would enjoy full tax exemption up to 50%

of the profits, but to enjoy tax benefits for balance amount they would be required to re-invest that part of the profits in tourism projects.  Social awareness among Service Providers and capacity building of Taxi Drivers and Guides through "Atithi Devo Bhavah" Campaign.

FACTORS INFLUENCING DESTINATION IMAGE

Baloglu and McCleary (1999) identified two key forces which influence image formation; the forces were stimulus factors and personal factors. Gartner (1993) classified image formation into five sections; overt induced, covert induced, autonomous, organic and visit the destination. Um and Crompton (1990) personal factors affect the formation of destination image. Beerli and Martin (2004) classified personal factors into two sections; socio- demographic characteristics and psychological characteristics. Socio – demo -graphic characteristics included gender, age, level of education, family life, social class, place of residence, occupation, income, marital status and country of origin. Psychological factors included motivations, values, personality, and lifestyle, need, past experience, prior knowledge, preference and satisfaction (Schreyer, R., Lime, D.W. & Williams, D.R., (1984); Woodside, A., and S. Lysonsky, (1989); Asli D.A. Tasci., (2007) & Sergio Dominique Ferreira Lopesi, (2011).

METHODOLOGY

The researcher has also used various national and international research journals, periodicals, monographs, e-contents, and books for understanding the evolution, growth and development of tourism and hospitality industry and conceptual foundation of developmental studies and relationship between development of tourism and the role of hotel in the development of tourism. In order to find the background of tourism industry and the role of hotel in the development of tourism, the researcher has reviewed the existing literature to ascertain the underlying issues. With this review, researcher has found a set of questions reflecting the research objectives. The researcher has conducted in depth interview of tourists at different selected hotels at Kolkata to understand the perception and motivation of tourists. This in depth interview has helped the researcher to generate a set of questions and objectives to undertake focus group discussions. Focus group discussion has been conducted to explore the hidden and subconscious rationale of tourists in explaining their perceptions and level of satisfaction regarding various aspects of tourism and hospitality resources that are related to the Development of tourism and the contribution of hotels to it. It has also helped in exploring various factors to determine the level of tourist satisfaction. 80

The study is based on the empirical research method which gives highest importance to the selection of population in the universe. Hotel Lobby of selected hotels were selected to interact with the respondents. Tourists were interviewed at the lobby after the consumption of the services i.e. at the time of check out. The questionnaire containing both the demographic profiles of respondents as well as variables about tourism and hospitality resources. The next task was to decide on the sample size determination. The decision for an optimum sample size is based on the fact that the size of the sample should be one, which fulfils the requirements of efficiency, representativeness, reliability and flexibility. The sample should be small enough to avoid unnecessary expenses and large enough to avoid intolerable sampling error. Thus, 92 tourists from 6 selected hotels were selected as sample. In this study, tourists both domestic and international have been surveyed on their level of perceptions and satisfactions on various factors of tourism resources, destination image, product offering, destination competitiveness and level of satisfaction. The data thus collected was subjected to validity tests. After ascertaining of the validity, the data have been analyzed to ascertain the findings pertaining to the tourism resources and the analysis of data help the researcher to draw suitable conclusions. The data collected were subjected to editing on the grounds of completeness, consistency, legibility and representativeness.

DATA ANALYSIS

This part analyzes the demographic characteristics of respondents and their invaluable opinions on the hotel resources Kolkata. This part also presents results from the analysis of opinion on the various factors of hotel industry. It also analyses the relationship between various demographic characteristics and various factors of hospitality & hotel resources. This part also includes the results of hypothesis tests to validate the findings of the study. Table: 1.0 Demographic Profile

Variable Mean Median Standard Deviation

Age 3.2935 3.0000 1.14391

Gender 1.1630 1.0000 .37143

Occupation 2.0870 2.0000 1.12565

Nationality 1.3152 1.0000 .46715

Marital Status 1.4457 1.0000 .88161

Table 1.0 represents the Mean, Median and Standard Deviation value of the respondent‘s demographic profile. Mean value of age is 3.2935, median value is 3.0000 and standard deviation value is 1.14391. For gender mean value is 1.1630, median value is 1.0000 and standard deviation value is .37143. So as occupation mean value is 2.0870, median value is 2.0000 and standard deviation value is 1.12565. For nationality mean value is 1.3152, median value is 1.0000 and standard deviation value is .46715. Marital status mean value is 1.4457, median value is 1.0000 and standard deviation value is .88161. Table: 1.1 Trip Arranger

Trip Frequency Percent Valid Percent Cumulative Percent Arranger

Travel 36 39.1 39.1 39.1 Agents

Own 41 44.6 44.6 83.7

Any 15 16.3 16.3 100.0 Other

Total 92 100.0 100.0

Table 1.1 illustrates the data on the travel arrangements made by the respondents during their visits to Kolkata. The table shows 44.6% respondent travel to Kolkata with their own arrangement and 39.1% respondents used the services of the travel agents for their trip.16.3% respondents used their friends and relatives for making arrangement of the trip. Table: 1.2 Source of Information

Source Frequency Percent Valid Percent Cumulative Percent

I already know 53 57.6 57.6 57.6

Internet 5 5.4 5.4 63.0

Friends & 10 10.9 10.9 73.9 Relative

Books 5 5.4 5.4 79.3

Travel Agency 6 6.5 6.5 85.9

Fairs 2 2.2 2.2 88.0

Part of Package 11 12.0 12.0 100.0

Total 92 100.0 100.0

The table 1.2 presents the source of information the respondents used to visit Kolkata. For 57.6% respondents Kolkata is known to them. 12.0% respondent travels to Kolkata because it is a part of their package. Near about 10.9% respondents knows from friends & relatives. Travel agencies are the source of information for 6.5%. From books & internet both 5.4% respondents are collected information. Rest 2.2% is collected information from fairs. Table1.3: Quality of accommodation

Frequency Percent Valid Cumulative Percent Percent

Yes 66 71.7 71.7 71.7

No 26 28.3 28.3 100.0

Total 92 100.0 100.0

Based on an analysis of the table 1.3 it can be stressed that 71.7 percent respondents find the Kolkata‘s Hospitality industry attractive. To this group of tourists Kolkata provides quality accommodation.

Table 1.4: Future Prospects

Future Prospects Mean Median Standard Deviation

Revisit Kolkata .7717 1.0000 .42201

Duration 1.9022 2.0000 1.47551

Stay in same hotel .7174 1.0000 .45273

Recommend .9348 1.0000 .24826 Kolkata

Recommend Hotel .8043 1.0000 .39888

This table 1.4 shows the mean, median and standard deviation value of future prospects by the respondents visiting Kolkata. The mean value of revisit Kolkata of the respondents are .7717, median value 1.0000 and standard deviation value .42201. For duration of stay mean value is 1.9022, median value is 2.0000 and standard deviation value is 1.47551. Stay in same hotel mean value is .7174, median value is 1.0000 and standard deviation value is .45273. Recommend Kolkata mean value is .9348, median value is 1.0000 and standard deviation value is .24826. Recommend the hotel mean value is .8043, median value is 1.0000 and standard deviation value is .39888. Table: 1.5 Factor Analysis

VARIABLE VALU INITIAL CUMULAT NAMI E EIGENVALU IVE NG ES

Staying at this hotel is worth every .665 rupee/dollar/ euro paid

Staying in this Hotel exceeded my .683 expectations Respons This Hotel has a unique image .652 iveness 13.647 62.030 This Hotel is contributing to the .709 towards growth of tourism Guests

Tourist Information are easily .784 available in this Hotel

Staff members of the Hotel are always .874 ready to assist in providing information

VARIABLE VALU INITIAL CUMULAT NAMI E EIGENVALU IVE NG ES relating to the attractions of Kolkata

Staff members of this Hotel are always .888 responsive to the need of the guests

The Hotel focuses more on guests .849

Everybody in this hotel believes that .881 this hotel exists for the guests

Hotel is always ready to modify the .912 product & service offering as per the need of the guest

The hotel is always search for .860 opportunities in areas where guests have difficult time expressing the need

The hotel has well equipped and .915 efficient staff members at each Guest contact center

The hotel provides multichannel .924 communication facility to take complete care of the requirements of the guests

Mast people have a positive opinion .795 about Kolkata Destinat 2.478 73.295 ion Most people have a positive opinion .711 Image about this Hotel

VARIABLE VALU INITIAL CUMULAT NAMI E EIGENVALU IVE NG ES

Kolkata is popular among tourist .827

This Hotel is popular among tourist .617

I am pleased that I decided to visit .769 Kolkata

I am pleased that I stayed in this Hotel .633

By visiting Kolkata I gained a lot .631 knowledge & experience

Visit to Kolkata exceeded my .603 expectations

This destination (Kolkata) has a .758 unique image

The Rotated Component Matrix Table 1.5 shows that among 22 items of the survey instrument the value of all the items are greater than 0.5 which established the concept of factor loading and cross-loading. Thus, above Table established that all the 22 items of the questionnaire are appropriately loaded. 13 items are loaded in the component no. 1 and rests are loaded in the component no. 2 where the dimensions are namely Responsiveness towards guest & Destination Image respectively. The Table 1.5 also indicated that 13.647 are the Initial Eigen values of Responsiveness towards guest and 2.478 is the Initial Eigen values of Destination Image where cumulative values are respectively 62.030 & 73.295. The value of KMO measure for sampling adequacy is .907. The Chi-square value was found as 2556.002 in Barlett‘s Sphericity Test. Hypotheses Testing

H0: The quality of services in the hotel is not the determining factor for the destination image building.

H1: The quality of services in the hotel is the determining factor for the destination image building.

Regression

Table 1.6: Variables Entered/Removed

Model Variables Entered Variables Removed Method

1 Kolkata has a unique - Enter Destination image a. All requested variables entered. b. Dependent Variable: Staying in this Hotel exceeded my expectations

Table 1.7: Model Summary

Model R R Square Adjusted R Std. Error of the Square Estimate

1 .608 .370 .363 .68701 a. Predictors: (Constant), Kolkata has a unique Destination image

Table: 1.8 ANOVA

Model Sum of df Mean F Sig. Squares Square

1 Regression 24.957 1 24.957 52.877 .000

Residual 42.478 90 .472

Total 67.435 91 a. Predictors: (Constant), Kolkata has a unique Destination image b. Dependent Variable: Quality of Service

From the above analysis it is easy to understand that the Analysis of Variance and Regression output table it is found p value = 0.000. This indicates that the model is statistically significant at a confidence level of 100. The R2 value is 0.370. t test for the significance of independent variables indicate that at a significance level of 95% only 87

Kolkata has a unique destination image is statistically significant. So, the null hypothesis that ‗The quality of services in the hotel is not the determining factor for the destination image building.‖ is rejected and the alternative hypothesis ―The quality of services in the hotel is the determining factor for the destination image building.‖ is accepted. CONCLUSIONS

Competition in the hospitality industry has increased so have the expectations of customers in terms of service quality. Nowadays, the focus is no longer on merely increasing the market share, but also on satisfying and maintaining an existing customer base, which guarantees a good word of mouth recommendation and repeat custom in order to secure business in the future. The background to these factors takes into account that the objective of achieving customer satisfaction cannot be underestimated. Businesses, such as typically hotels, cannot afford to ignore the customers and their cultural backgrounds, as there is now simply too much choice. The Indian Hospitality industry contributes around 2.2 per cent of India‘s GDP. The industry is expected to reach INR 230 billion (US$ 5.2 billion*) by 2015, growing at a robust CAGR of 12.2 per cent. India will be investing around INR 448 billion (US$ 10.1 billion*) in the hospitality industry in the next five years, according to a report ‗The Indian Hotel Industry Report - 2011 Edition‘ by CYGNUS Business Consulting & Research Firm. In the next two years, a total investment of US$ 12.2 billion (INR 545.2 billion*) is expected that will add over 20 new international brands in the hospitality sector. There is tremendous scope for the accelerated growth of tourism in West Bengal. When tourism is looked upon as an economic activity capable of earning the much needed foreign exchange, it is essential to promote tourism in our state. High spending tourists, by virtue of their status and standard of living, will maintain a discipline which will help in preserving our environment, tradition and culture, contrary to the arguments of the critics of tourism. Before such tourists are brought here, it is primarily essential to ensure their comfortable stay and sojourn adequate accommodation must be made available in the type of hotels they demand the study on the present status of hotel industry in Kolkata reveals the following: 1. The comparative growth of the variables, viz, the number of hotels, the room capacity and the bed capacity in the hotels of Kolkata shows that the growth was the highest in the bed capacity and the lowest in the number of hotels. This indicates that the existing hoteliers expand their old units by increasing the multi-bedded rooms and a few of the new entrants in the field, build comparatively larger hotels with multi- bedded rooms. 2. The profile of the tourists revealed that the majority of them are visiting Kolkata out of their own curiosity. Again most of them especially the foreign tourists are travelling alone on independent tours. From these facts it can be inferred that Kolkata has not been adequately marketed as a tourist destination and package tour to Kolkata

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A CASE STUDY: FILM AS A PRODUCT

Dr. Naresh Patel Professor and Head Center for Management Studies Dharmsinh Desai University, Nadiad

Frince Thomas Assistant Professor Center for Management Studies Dharmsinh Desai University, Nadiad ======

ABSTRACT Dhoom 3 is a Hindi action thriller film, written and directed by Vijay Krishna Acharya and produced by Aditya Chopra. The third installment of the Dhoom series, it features Aamir Khan as the antagonist paired opposite Katrina Kaif. Actors Abhishek Bachchan and Uday Chopra reprise their roles as Jai Dixit and Ali Akbar, respectively. The international gross of Dhoom 3 was US$ 28 million—eventually breaking the record of 3 Idiots (another Aamir Khan starrer) and making it the highest-grossing Bollywood film of all time in international markets. It was the 75th highest grossing film of 2013 worldwide. The case reflect many new promotion campaign was carried out before and during release of film, is it made differences to box office collection and broke many records?

Keywords: Film, Bollywood, Box office collection, Promotion

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William Goldman‘s (1983) classic statement that in the movie business ―nobody knows anything.‖

When you hold back, people want to know more about it. But it’s a psychological thing, which you cannot measure. It has to be something you either believe in or not.

Dhoom 3

Dhoom 3 is a Hindi action thriller film, written and directed by Vijay Krishna Acharya and produced by Aditya Chopra. The third instalment of the Dhoom series, it features Aamir Khan as the antagonist paired opposite Katrina Kaif. Actors Abhishek Bachchan and Uday Chopra reprise their roles as Jai Dixit and Ali Akbar, respectively, as seen is previous franchise. Made on a budget of Rs 1.50 billion (US$24 million), the one of the most expensive Bollywood film of all time, Dhoom 3 was released on 20 December 2013, marking itself as the first Bollywood movie to be released in the IMAX motion picture film format with Dolby Atmos surround sound.

The film broke several records on its opening days in India and abroad. Box Office India declared Dhoom 3 "the biggest hit of 2013" after two days of release, with the film grossing Rs 4 billion (US$64 million) worldwide in just ten days, making it the highest-grossing Bollywood film of all time domestically and worldwide. The overseas gross of Dhoom 3 is US$ 28 million — eventually breaking the record of 3 Idiots (another Aamir Khan starrer) and making it the highest-grossing Bollywood film of all time in overseas markets.

Plot:

The film starts in the year 1990 when Iqbal Haroon Khan (Jackie Shroff) runs a circus – The Great Indian Circus – in Chicago, which has fallen on bad times. Anderson‘s (Andrew Bicknell) bank - Western Bank of Chicago - which has lent money to Iqbal Khan, decides to close down the circus when he is unable to repay the loan. Young Sahir (Siddharth Nigam), the little son of Iqbal Khan, pleads with Anderson not to shut down his father‘s circus as he and his father would soon be able to turn the corner. But Iqbal Khan‘s presentation before the bankers and Sahir‘s pleas didn‘t help. Iqbal Khan commits suicide in front of the heartless Anderson, leaving Sahir devastated.

Years later, Sahir (Aamir Khan) has still not forgotten the high-handedness of the bank and swears revenge. He robs various branches of Western Bank of Chicago, leaving behind a message in Hindi and a clown mask. He uses his acrobatic circus skills to escape. As Chicago 93

Police Officer Victoria (Tabrett Bethell) failed to catch him, she calls ACP Jai Dixit (Abhishek Bachchan) and his partner, Ali (Uday Chopra), for help in solving the case. Jai baits Sahir into robbing again by making it known he's on the case and he believes the thief is an amateur. Gathering information from a news channel regarding the plan, Sahir poses as an informant for Jai, and manages to gather information on the bank while giving Jai a lead to follow. Eventually, Sahir robs the bank and escapes, but Jai & Ali follow him. During the pursuit, Jai manages to shoot Sahir in the shoulder before he disappears again. Sahir has the big premiere of The Great Indian Circus with his female lead acrobat, Aaliya (Katrina Kaif), involving a trick with him disappearing in one place and showing up in another. The show is a success, but afterwards, Jai, Ali, and the police surround him, knowing he's the thief. Jai says the proof is the gunshot wound Jai inflicted in Sahir, but when Sahir is examined, there is no evidence of a gunshot wound anywhere in his body. Jai & Ali leave while Sahir retires to his dressing room. It's then revealed that Sahir has an autistic twin brother, Samar, who helps him pull off his trick and rob the banks, and it was Samar who sustained the gunshot wound.

Jai is fired from the case, but is encouraged by Ali to prove Sahir's guilt by going rogue. Jai eventually finds out about Samar, and sets about finding a way to corner Sahir. Samar, kept in hiding and mentally challenged, is kept in seclusion by Sahir. However, Samar sneaks outdoor once a week, and Jai manages to befriend him during this time also manages to perform his plan. Samar has fallen in love with Aaliya after performing with her in the circus, but cannot express it. This leads to a rift between the brothers. Jai tries to take advantage of this, but Sahir finds out and thwarts Jai's plan to stop them. He decides the only way to catch the brothers is in the act. Sahir & Samar pull off their final bank heist, and escaped. However, the following day, Jai manages to corner them as they're making their way out of town. Samar is hesitant to run when Aaliya shows up, begging him to stop. Sahir surrenders to Jai, asking him to spare Samar and let him take the blame. Jai agrees, but right after, Sahir jumps off the bridge. Samar jumps, too, holding Sahir's hand refusing to let him go. Eventually, the two of them jump off the bridge together, apparently falling to their death. Finally Western Bank of Chicago is shut down as a result of the heists, while Aaliya is shown still performing for the Great Indian Circus. The film ends with the title song.

Cast:

 Aamir Khan as Sahir/Samar Khan

 Abhishek Bachchan as A.C.P Jai Dixit

 Katrina Kaif as Aaliya

 Uday Chopra as Ali Akbar

 Jackie Shroff as Iqbal Haroon Khan, Sahir and Samar's Father

 Tabrett Bethell as Victoria 94

 Andrew Bicknell as Anderson  Siddharth Nigam as Young Sahir/Samar

Is it Changing Role of Promotion made Dhoom 3 Blockbuster?

The title logo of the film was released in a video that credited the main roles of the film. The score for the video constituted paced beats and electric guitars and was released on Christmas 2012 through Yash Raj Film's official YouTube channel, confirming the film for a Christmas 2013 release. The first working as well as promotional poster was also released nearly a year prior. In August 2013, YRF released a motion poster of the film on YouTube, revealing the first look. It featured Aamir Khan with a hidden visage standing inside a tall building, looking at helicopters in the air through a glass window. A voiceover reveals that the Chicago police force is searching for a fugitive biker who vanished before he could be caught. The satellite rights of Dhoom 3 were sold at a record price of Rs 750 million (US$12 million).

The first teaser of Dhoom 3 was released on 5 September 2013 at 12 noons IST. The teaser achieved 6 million views on YouTube within 6 days, subsequently receiving 12 million views in 20 days. The film's teaser was also attached with the film Shuddh Desi Romance. On 25 October Yash Raj Films launched a game based on the film for Windows Phones. Developed by 99Games Online (a subsidiary of Robosoft mobile games), the 3D game was set against the backdrop of Chicago and opens with a heist by the character played by Aamir Khan. Within 20 days of its launch, the game witnessed over 1 million downloads on the Windows Phone Marketplace and Nokia Store. The Android, iOS and Blackberry 10 version of the game was launched on 19 November 2013. 'Dhoom: 3 The Game' crossed five million downloads across all platforms in less than seven weeks of its launch on November 19, 2013.

The theatrical trailer was released in IMAX format on 30 October 2013 as well as on YouTube. PVR Cinemas began advance booking for selected shows of the film same day the trailer had released, witnessing sales of just under Rs 20 million (US$320,000) until 17 December 2013.

Aamir Khan also promoted Dhoom 3 on the sets of Kaun Banega Crorepati. The publicity campaign included tie-ins with over 17 leading brands including Mattel (manufacture of limited edit action figures, model cars and bikes), Gulf Oil, CEAT, Bombay Dyeing, Archies for stationery and the LINE social messaging application, along with 183 other brands. A marketing pact was also made with BMW Motorrad, which has revealed that it‘s S1000RR and K1300R sport bikes would feature in the film. A special screening of Dhoom 3 was held at Yash Raj Studios on 19 December 2013.

After the film's performance at the box office, Amul paid a tribute to the film in one of its creative advertisement campaign posters. The poster features the words "Dhoom Tea" in the same typography style as the film's logo is with a caption "Chased everyday". "The Dhoom 95

Anthem" featuring Saba Azad was released by Yashraj Films on 26 December 2013. A spanish version of 'Dhoom Machale' song sung by Mia Mont was released by Yashraj Films on 4 January 2014. Though the stars of the film were not seen hopping from one TV show to another to promote their latest offering, they tried other innovative marketing strategies like launching an extensive range of merchandise and dolls.

So what clicked for Dhoom 3? Yash Raj Films (YRF) honcho Aditya Chopra and Aamir Khan strategically banked on audience enthusiasm associated with the Dhoom brand. Unlike other biggies that go ballistic with promotions, the makers of Dhoom 3 started by creating a mild buzz around two months ago. This helped create curiosity, with the prospect of watching Aamir play the anti-hero only whetting the audience's appetite further. The promotions of Dhoom 3 were carried out in the most subtle manner. YRF strategically decided to avoid over the top publicity. The cast was prohibited from giving pre-release interviews, which increased the interest of the audience," says Jehil Thakkar, head of media and entertainment sector at audit firm KPMG in India.

Instead of going to different cities and appearing on TV shows, lead stars Katrina and Aamir restricted their public appearance to unveiling of the film's merchandise. Here's the other part of the strategy. As many as 200 brands tied up to market Dhoom 3 merchandise - at prices ranging from Rs.70-Rs.9,000 - which dolls, Aamir Khan Hot Wheel bikes and even dog tags! The release of the film was perfectly timed, and the deadly combination of Aamir and the popularity of the Dhoom franchise further elevated its prospects. When Yash Raj Films' Dhoom 3 is ready to come out on December 20 and producer Aditya Chopra, looking for a unique marketing strategy, won't settle for anything less than a "never before idea" to promote the movie.

While the actors haven‘t gone all out to promote their film like so many others does, Yash Raj Films‘ marketing strategy of ‗less is more‘ seems to have worked quite well. Further, Movie buffs are eagerly waiting to see the third installment of YRF‘s one of most successful franchise, the Dhoom series.

And like any other film, and this is something that both Adi (producer Aditya Chopra) and I feel very strongly, what actually wants to make you see the film is the trailer that was told by Aamir. We wanted to let the creative of the film speak for it. Over the years, certain convention has been formed and we looked at each convention for its own merit. Do we want to continue what is happening, is it of any use to the film, or not?

Aamir said in talk that Yes, I was and I am not denying that. But circumstances alter — I cannot do the same thing I did five years ago. That doesn‘t mean it is relevant today. We looked at each convention in isolation. Will ―Dhoom 3‖ benefit by going on a reality TV show — our answer was no. Because in our opinion, what a reality show essentially does is it amplifies the awareness of your film, but it doesn‘t increase the desire to consume. I may be

aware of your film and be very clear that I don‘t want to see it. ―Dhoom 3‖ didn‘t need awareness; people have been asking us for the last three years about it. I am not saying there is no value to going on a reality TV show. If it was a film like ―Peepli Live‖, which is a small film — we don‘t have the budgets and cannot buy ad time. Our hands are tied and I don‘t have stars. So I go to a large show and raise awareness to a huge audience that isn‘t even aware of the film. The other big thing was not releasing our full songs — that was a big decision we took. The thought being that we want you to enjoy the full songs in the theatre. If I‘ve seen the song on TV 20 times and on YouTube 20 times, when it comes in the film, I have already seen it, I have lost interest in those five minutes. We‘ve made a large-scale experience, so we want you to enjoy it like that. The other advantage was the old advantage that Hindi films had. I love ―Salaam-e-Ishq‖ from ―Muqaddar ka Sikandar‖, but if I didn‘t have YouTube then, or didn‘t see it on TV, I would go to the theatre to watch it. People used to do that, and that is why songs had repeat value. ―Dhoom 3‖ had ―Malang‖, which was a huge spectacle, and that creates a desire in you to watch it for a second time. It could, at least.

However, the makers of DHOOM 3 were released 30 second teaser of all songs. They want the audience to enjoy the entire song on the big screens. A spokesperson of the film further adds, "The song 'Malang' has created a stir amongst the audiences. In fact friends and family close to Aamir Khan have put in a special request for the actor to show them the entire song as they cannot wait until the song releases in theaters on 20th December." When you hold back, people want to know more about it. But it‘s a psychological thing, which you cannot measure. It has to be something you either believe in or not.

Aamir attributed success of Dhoom 3 on everything. It is the marketing, the stars, the franchise. And after the third day, it is the content that speaks. The first three days is a combination of these three things — who is your star cast, what the interest people have towards this film is, and how you market the film. These three components will get you the first three days, no matter what the film is. Title is also very important.

Dhoom 3‗s reclusive marketing strategy has been in talks for a while now. With the film‘s makers even refusing to reveal their full length song videos, the curiosity has been building for the venture. In the words of Aamir Khan, the attempt is to protect the novelty of their product. Though it really isn‘t Aamir Khan style to promote on television shows, but keeping in wraps everything from the storyline to songs, is thought to be a tad bit much by many staunch Aamir loyalists too.

Aamir is identified for his intense promotional skills and has been appreciated for his marketing talent too. According to sources, when Aamir and Aditya Chopra, the producer of Dhoom 3 sat to make a strategy for the film, Mr. Perfectionist was adamant on a few things. However, later it was the superstar, who broke his own rules for Dhoom 3.

In a press conference, when asked whether he will be seen on any reality shows, Aamir said, "We are not going anywhere to promote Dhoom: 3. We believe that less is more for this film and even curiosity will be there." "Aditya Chopra is confident about this film and even I am very happy with this film," he added. However, Salman is seen promoting Aamir's Dhoom 3 hat on Bigg Boss 7 and Aamir too expressed his happiness about it. The hat has gone viral and reportedly a popular dance show's hosts Karan Wahi and Gautam Rode had donned a bowlers hat like the one Aamir is seen wearing in Dhoom 3. " Aamir had planned not to do any city tours for Dhoom 3, but is happy as Abhishek Bachchan and Katrina Kaif are promoting the film across the country and are busy with different city tours," While IMAX screens across the country number only three (commercially deployed in Mumbai and Bangalore), Dhoom 3 would be the first Indian release to be ready for such a display. Released digitally, it will open to no less than 4,000 screens in Hindi and dubbed in Tamil andTelugu.

Result: Box office collection of Dhoom 3

Dhoom 3 became the highest grossing Bollywood film in India and around the world by collecting over Rs 4 billion (US$64 million) worldwide in just ten days. The film beat the Rs 3.95 billion (US$63 million) record set by Chennai Express according to Box Office India. On 6 January 2014,Yashraj Films issued a statement that Dhoom 3 is officially the first Indian Film to cross Rs 500 crore (US$80 million) Worldwide.

Evaluate the changing role of promotion of Bollywood films in the Indian Market: Discuss.

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