Impact of Market Stimuli and External Stimuli on The Impact of Purchase Decision of Consumers of Steel in Tamil Nadu

Abstract

Introduction: Steel is one of the most important infrastructure product for a nation and its per capita Consumption is one of the important index that reflects the development of the nation. Current per capita steel consumption of India is around 65 kg/person/year against world average of 214 kg/person/year... Government of India in its National Steel Policy of 2017 seeks to create a globally competitive steel industry in India and targets 300 million metric tonnes of steel-making capacity and 160 kgs per capita steel consumption by 2030. To achieve this steel organsiation have to widen their sales in rural, semi urban and urban area. Studying the requirement of the consumers of steel in those area are important to formulate market strategy. newlineThe Consumer Decision models have evolved in the last five decades. They refer to the varying orientations and perspectives with which buyer approach the market place. The models have undergone lot of modifications over the years to understand the behavior of the consumer. They address the key issue of finding out the impact of various factors on the buying decision process and overall buyer behavior. newlinePurpose: In this research work, an attempt has been made to understand the implication of various factors that go into the Decision making of the Consumer of steel in urban and semi urban areas of Tamil Nadu. A stimulus-response model is framed to study the Decision Making aspect. The Market and external factors form the stimuli and the response of the consumer in taking purchase decision is analysed. newlineResearch Methodology: The study has adopted Descriptive Research Design and used Quantitative analysis. Judgmental sampling technique was used to identify the respondents. Following survey method, a structured questionnaire was distributed among the customers of steel in urban and semi-urban area of Tamil Nadu. Out of 720 questionnaires distributed, 584 responses were found complete and valid in all respects. After confirming the reliability and validity, T-test, Analysis of variance (ANOVA), multivariate analysis (MANOVA), Friedman chi-square test, Pearson.s correlation analysis, multiple regression and Structural Equation Model (SEM) analysis were used to analyse the data collected newlineFindings the study revealed that both market stimuli and external stimuli has positive influence in the Purchase decision of the steel consumers. Most of the consumers are in the 41-50 age groups, and are graduates with annual income of above 5 lakhs. Consumers want to purchase steel of Prime producers with ISI certification to ensure safety of the structure. They feel steel outlet to be in nearby place with easy transportation facilities. They look for best financing schemes. newlineImplications of the study: The study brings out the market strategy to be followed by steel companies to have market penetration in urban and semi-urban locations of Tamil Nadu. This study reveals the urgent necessity of steel organsiations to understand the behaviour of consumers in urban and semi urban locations. They have to ensure availability of quality steel near the location, good financing schemes and promote awareness campaign to increase the consumption of steel. newline