An Econometric Analysis of Demand for Consumer Durables
The study was undertaken to understand the state of consumer durables and identify the factors influencing their purchase decisions and also impact of brand advertisement on purchase of consumer durables. The tabular analysis was used for estimating the income of the respondents. Various econometric techniques like cluster analysis, logistic regression, multidimensional scaling, and descriptive statistical techniques.The demand for consumer durables was growing on a cosmopolitan city like Bengaluru where the average income was very high and the skewed distribution of income was in favor of the rich.The other factors that have contributed to the increase in demand for consumer durables were urbanization, high disposable income, and availability of a line of credit to purchase white goods; the advertisement media and word of mouth led by the demonstration effect the result is a contrast to the advertising sales relationship.The Positioning strategies of the brands and strategic steps determine the rules of competition in the market. Any brand that has strong and favorable position in the minds of its consumers has the chance of achieving consumer loyalty and sustainability.