Literature Review
Literature Review
The study of how people, companies, or organizations choose, acquire, utilize, and discard goods and
services is known as consumer behavior. Consumer behavior in the cement industry is influenced by a
combination of psychological, economic, and functional variables. Because cement is a necessary,
high-involvement product that is mostly used in construction, and construction sector in booming the
following factors affect purchasing decisions:
Quality Perception: Reliability, strength, and durability are important to contractors and consumers.
Price Sensitivity: Due to the costly nature of cement as a raw material, prices affect purchasing
decisions.
Brand Loyalty: Owing to their consistent quality and good marketing, popular brands such as
UltraTech, ACC, and Ambuja Cement are opted for.
Influencer Role: Architects, engineers, and contractors often influence buying decisions by
supporting specific products based on their history and performance.
Sustainability Awareness: An increasing number of customers are considering eco-cement
alternatives such as blended and low-carbon cements.
Supply Chain & Availability: In the selection of cement brands, immediate availability and efficient
logistics are key.
For the following reasons, it is essential for firms to research consumer behaviour in the cement
industry:
Market positioning and brand strategy: Companies can make their products unique and create
targeted marketing campaigns by being aware of what consumers like.
Pricing and Demand Forecasting: Companies can maximize pricing plans and manage fluctuating
demand by being aware of how price sensitivity affects buying habits.
Product Development & Innovation: R&D initiatives to produce high-performance and sustainable
cement products are motivated by consumer information.
Customer Relationship Management (CRM): Through solving problems and improving after-sale
services, companies can enhance client loyalty.
Sustainability & Corporate Responsibility: Organizations that supply consumer needs for
sustainable cement gain a competitive edge and comply with lawful requirements.
Competitive Advantage: Companies can forecast market evolution and retain an edge over
competitors through a complete comprehension of client desires.
Industry overview
The Indian cement industry is one of the largest in the world, ranking second only to China. It is a
vital contributor to infrastructure development and economic growth. The fast pace of urbanization,
industrialization, government infrastructure development, and increasing demand from the real estate
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sector propel India's cement industry. The industry contributes significantly to the country's GDP and
employment.
India's cement sector has an installed capacity of more than 600 million metric tons (MT) with annual
production levels ranging from 350 to 400 MT. It has grown at a Compound Annual Growth Rate
(CAGR) of 4.94% and is expected to grow further due to growing construction activities associated
with government initiatives like PM Gati Shakti, the Smart Cities Mission, and Housing for All. India
also ships cement to many countries around Asia, Africa, and the Middle East.
With a 35–37% market share, UltraTech Cement, a division of the Aditya Birla Group, leads the
industry. It operates in India, the United Arab Emirates, Bahrain, and Sri Lanka, with a yearly
manufacturing capacity of more over 130 million tons.
Problem Statement 1: Cement manufacturers are seeing a decline in customer satisfaction and
brand loyalty that falls short of expectations, even after making substantial investments in product
quality and marketing. This indicates a disconnect between the industry's perceived comprehension of
consumer needs and the real influences that affect consumer behaviour. This corresponds to the initial
"problems signify gaps" concept. Sales, profitability, or market share may be faltering because
consumer needs are not being effectively addressed.
Problem Statement 2: Cement producers are not completely taking advantage of new consumer
trends, like the growing interest in sustainable and environmentally friendly cement materials.
This showcases a disconnect between existing product offerings and marketing approaches and the
possibility of growth by aligning with changing consumer desires. There is a chance to broaden the
market or enhance market share by gaining a better understanding of and responding to unmet needs
or emerging trends.
Literature review
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supporting sustainable growth. Scientific and technical developments present hopeful ways to lessen
the industry's detrimental effects while maintaining sustainable expansion, even though it presents
environmental concerns.
Summary 2 .Brand and its impact on buying behavior for cement industry
https://mpra.ub.uni-muenchen.de/24464/
The cement sector is highly capital intensive and critical to infrastructure but confronted with
economic and environmental issues. Increased regulation in industrialized countries has pushed
cement manufacture to low-policy countries, affecting efficiency as well as sustainability. Applying
Porter's Five Forces as well as institutional economics, this paper concludes that the sector is neither
entirely aligned with market-driven nor regulatory models. Weakened governance in developing
nations and the interests of global companies hamper efficiency, and environmental non-compliance
generates economic spillovers. An independent international regulator to set sustainable development
rules and reconcile economic and environmental interests is proposed as a solution by the paper.
The cement business requires a lot of energy and capital, and its expansion on the global market is
fueled by production relocating to nations with laxer regulations. Porter's Five Forces and institutional
economics are used in this study to examine pricing and production, and the results show that the
industry does not quite fit into either framework. Pricing and performance are instead best explained
by a combination of institutional and market forces. Corporate interests combined with poor
governance in developing countries reduce market efficiency, rendering local laws insufficient to
guarantee sustainability and fair competition.
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This paper examines marketing consumer behavior through analysis of behavioral patterns together
with demographic types and market segment approaches. This framework consists of 7Os that
examines the key factors of Occupants (who buys), Object (what they buy), Objective (why they buy),
Occasion (when they buy), Outlet (where they buy), Operations (how they buy), and Organization
(who influences them). The analysis uses personal elements together with psychological conditions as
well as social aspects and economic conditions and cultural elements as determining factors. Business
decisions that people make are primarily influenced by psychological motivators such as Motivation
based on Maslow's hierarchy as well as Perception and Learning and Attitudes. Social factors that
include family ties together with reference groups and social roles have a robust influence on
consumer behavior. The paper examines four behavioral patterns of consumers including complex
buying behavior and dissonance-reducing buying behavior together with habitual buying behavior and
variety-seeking behavior. Understanding how consumers behave serves as a critical principle to
develop marketing plans which boost customer interaction along with branding loyalty while
achieving sales goals.
The analysis studies the components which determine how Nepalese customers choose their cement
brand. The research based on consumer survey methods along with interviews from consumers and
suppliers and contractors and engineers finds that quality stands as the prime selection factor with
70% while brand image follows at 26.67% with years of establishment at 3.33% according to the
participants. The market mainly consists of cement brands from Hetauda, Udayapur and Shivam. This
research verifies that consumer choices about cement brands are strongly influenced by
recommendations from consultants in addition to friends and relatives. This research underscores the
essential impact of advertising alongside brand recognition and vendor power in product selection.
Cement manufacturers should address quality control requirements while building strategic brands
through targeted marketing initiatives to both maintain consumer loyalty and boost their position in an
intense market competition.
Summary 7: Growth of Indian cement industry, its environment impact and emerging
alternatives
Indian cement manufacturing stands as the world's second-biggest sector with a 4.94% Compound
Annual Growth Rate (CAGR) projection for the upcoming 2028 period where it will expand because
of construction development and PM Gati Shakti initiatives along with real estate expansion.
Construction of cement at scale continues to generate 7% of worldwide CO2 emissions because it
requires clinker combustion and limestone calcination while the industry expands. Three significant
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environmental concerns in this industry encompass carbon emission troubles and water contamination
together with land deterioration. Because of its environmental issues the industry implements waste
heat recovery technology together with biomass fuel adoption and enhanced use of supplementary
cementitious materials (SCMs) which include fly ash and slag and limestone calcined clay cement
(LC2). Researchers are developing two solutions to minimize environmental footprint: geopolymer
concrete alongside carbon capture technologies. The article advocates collaboration between
policymakers financial institutions and manufacturers to advance sustainable concrete practices with
the goal of achieving carbon-neutral concrete by 2050. For sustainable industry growth to coexist with
environmental stewardship it is crucial to advance construction methods alongside digital monitoring
frameworks and recycling approaches.
The cement business uses a lot of energy; between 30 and 40 percent of production costs are related to
energy prices. Cement manufacture uses roughly 4–5 GJ of energy per ton, which makes a substantial
contribution to industrial energy use. Enhancing energy efficiency is essential considering resource
depletion and growing energy costs. Because energy deterioration is not taken into consideration by
traditional energy analysis, energy analysis—which assesses both energy transformation and
inefficiencies—is becoming more and more popular.
Energy losses and inefficiencies in cement manufacturing are identified by energy analysis, which is
founded on the first and second laws of thermodynamics. Energy efficiency in cement plants varies
between 18% and 49%, according to studies, with suffering the most losses. Using energy analysis
minimizes the impact on the environment, lowers expenses, and maximizes energy use. Cement
manufacturing has the greatest energy cost ratio, up to 55%, according to numerous experts who have
used energy and exergy assessments in various industries worldwide.
The main determinants of cement companies' profitability in India are investigated in this study. The
study uses backward linear multiple regression analysis on data from 2001 to 2008 to ascertain how
different operational and financial factors affect profitability. The liquidity ratio, operational profit
ratio, turnover of fixed assets, company age, interest rates, and inflation are the main factors that have
been discovered. Profitability was found to be significantly influenced by sales growth, which might
account for up to 18.3% of variances. However, its explanatory power dropped to 11.2% in the later
years (2005–2008). According to the study, both external macroeconomic factors and internal
operational efficiencies have an impact on a company's profitability. It concludes that to improve
company performance, managers and policymakers should concentrate on enhancing liquidity,
maximizing asset usage, and preserving a competitive operating profit ratio.
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The energy-demanding procedure is linked to acid rain, changes in climate, and health problems
related to respiration. The research underscores the urgent need for eco-friendly production
techniques, such as employing carbon capture methods, alternative fuels, and waste-derived additives.
Innovations in pollution control and process efficiency have decreased environmental impacts, but
further efforts are necessary. The document stresses the importance of regulatory policies in reducing
pollution and fostering sustainability. It recommends that governments and industry stakeholders
enforce stricter environmental regulations and invest in green technologies to mitigate the ecological
effects of cement manufacturing.
Research Methodology
a. Literature search method
Qualitative studies combined with conceptual approaches allowed researchers to discover research
gaps that later formed the foundation of problem identification. The research draws its materials
primarily from peer-reviewed journals together with industry reports as well as academic publications
that analyzed cement industry sustainability matters and consumer behavior choices and CRM
Direct
A structured Likert-scale questionnaire reached out to consumers alongside contractors and
small-scale builders for gathering initial-hand details about brand loyalty together with
satisfaction metrics and purchase actions.
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Indirect
Publicly available research including journal articles, case studies and market trend
documentation served to identify wider industry performance and consumer aspiration
patterns.
The analysis revealed three essential outcomes which confirmed the findings stated in the
initial problem statement about marketing disconnections. First is the rising preference for
environmentally responsible cement products and second is the growing influence of
consultancy services whereas third is the deficiency in customer relationship management
strategies.
The research design of this study uses descriptive methods to study the behavior along with
the preferences and perceptions of consumers in the cement industry. Descriptive design
supports:
Statistical methods determine the agreement strength regarding brand perception, price status
and sustainability initiatives and brand awareness.
Identification of aspirational gaps in the cement market through consumer feedback.The
study examines trust and CRM and environmental concern as influencing variables according
to existing literature.
The research purpose extends beyond mere description of existing circumstances because it
aims to close gaps between what providers currently deliver and what buyers really seek.
d. Questionnaire development
The questionnaire combined constructs from the literature review with insights obtained from
Cement market studies together with CRM and consumer psychology. Key considerations
included:
A 5-point Likert scale component served to assess agreement levels about brand trust and product
satisfaction together with environmental awareness evaluations.
Coverage of 5 core dimensions:
1. Awareness & Information Sources
2. Brand Perception & Trust
3. Product Experience & Satisfaction
4. Buying Behavior & Brand Loyalty
5. Aspirations & Sustainability Expectations
The segmentation analysis requires demographic data from three categories that include age
segmentations, income classification and professional identities.
The items were designed using components drawn from scholarly research about quality
perception together with CRM engagement and eco-consciousness.
Population:
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The purchase decisions concerning construction stem from homeowners as well as small
contractors and engineers and construction consultants both serving as end-users and
intermediaries.
Sampling Method:
The research utilized purposive non-probability sampling as a method to gain responses from
appropriate participants. The sampling technique selects respondents who have high potential
to deliver valuable information about cement buying processes and brand awareness levels.
1. Data Cleaning
Our processing of the data started with preparing the dataset in Excel before its transfer to
SPSS. The Google Form presented statements about cement industry preferences
behaviour and aspirations to users who chose ratings between 1 to 5.
The team converted response text into numbers for SPSS compatibility.
The coding scheme was used uniformly throughout all applicable columns.
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We converted "Agree" responses in Question 1 to numeric value "4".
The data transformation into numbers enabled SPSS to perform ordinal statistical analysis
on the collected data.
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
The scale measurement should be set to Ordinal for responses obtained through Likert-
scale assessment.We detected any entry problems in our dataset and created proper
solutions for them in advance of analysis.
Interpretation:
A Cronbach’s Alpha value surpassing 0.7 demonstrates that the items exhibit suitable
internal consistency.
5. Descriptive Analysis
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We conducted basic descriptive statistical computations to establish central statistical
trends.
Within the analysis menu select the Frequency or Descriptive statistics option from the
Descriptive Statistics submenu.
Select all Likert variables.
Choose statistics like:
Mean
Standard Deviation
Minimum and Maximum
Click OK.
The results displayed consumer responses across items which allowed us to spot common
patterns.
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Brand Perception & Trust
Product Experience & Satisfaction
Buying Behavior & Brand Loyalty
Aspirations & Expectations
What This Means for Your Study
The high alpha value indicates respondents provided similar interpretations for all the survey
questions throughout.
Statistical cohesion exists between the dimensions you assessed which include trust, loyalty, brand
perception and sustainability expectations.
The scale is ready to apply to factor analysis because its reliability standard is met and it can also
serve as a foundation for correlation and regression analysis.
The data collected 77 valid responses from out of 81 total respondents who achieved a 95.1% usable
response rate.
Interpretation:
The Likert-scale questionnaire meets both academic standards and decision-making needs for
managers in its reliability and suitability. The reliability coefficient value of 0.899 demonstrates that
the instrument provides consistent measurements which successfully measures consumer behavior
and aspirations aspects within the cement industry.
The reliable measure provides accurate results for explaining the main research problem.
The industry faces a gap between how cement companies perceive consumer needs and which factors
truly influence customer satisfaction together with loyalty.
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The second position as global cement producer for India (with 600 million metric tonnes installed
capacity) maintains a competitive market that demands differentiated products between brands.
The combined market share of UltraTech alongside Shree Cement and ACC as well as Ambuja and
Dalmia amounts to more than 60% while smaller competitors use market penetration and pricing to
expand their foothold.
Business Insight:
Cement companies require specific branding approaches that transcend product quality through
presentations of enhanced characteristics together with sustainability components and post-sale
assistance to strengthen their market presence.
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Business Insight:
The marketing strategy for cement companies must include B2B2C targeting of professional
contractors and their end consumer customers. Money allocated to contractor loyalty programs and
ground-level engagement programs and training initiatives establishes enduring channel loyalty that
strengthens brand preference when consumers make buying choices.
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Total 80 98.8 100.0
Missing System 1 1.2
Total 81 100.0
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Consumer trust in well-founded brands reaches a notable level (3.71) because consumers value their
dependable products along with their broad market visibility and lengthy market history.
The market leadership of UltraTech (Aditya Birla Group) alongside ACC and Ambuja and Shree
Cement creates industry symbols of quality cement products.
The cement manufacturing capacity of UltraTech Cement exceeds 130 million metric tonnes per
annum (MTPA) while maintaining a 35–37% stake in India's cement market making it a market leader
in this industry.
These brands experience big rates of repeated buys and recommendations because customers trust
their branding methods and distribution networks as well as their track record.
Business Insight:
Though they benefit from brand trust through premium pricing and loyal client relationships
established brands create difficult standards for competition that only innovative new competing
brands can meet.
Most Brand are Similar (Mean = 3.32)
Customers exhibit moderate neutrality toward brand differentiation according to functional attributes
based on the score of 3.32.
Brands in India's cement market face tremendous competition since more than 200 small to medium-
sized companies exist leading to substantial problems in establishing neatly defined brand themes.
Brands struggle to demonstrate functional differentiations to end users because aggressive
promotional efforts do not overcome technical similarities that exist between OPC 43/53 Grade
Cement, PPC, PSC and other products.
Freedom to switch between brands exists due to almost identical functional attributes which weakens
customer brand retention rates particularly among price-aware buyers.
Business Insight:
Brand parity weakens competitive advantage. In order to develop a one-of-a-kind brand awareness
consumers need companies should invest their resources into creating stories that build brands and
positioning sustainability with firsthand marketing experiences.
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An overwhelming number of consumers select famous brands instead of lower price points during big
development projects because they prioritize durability and safety components.
Business Insight:
Cement companies need to build both brand status through advertising together with field presence
activations and expert certifications that increase their professional standing.
Brand Perception & Trust [Most cement brands are similar in terms of
performance and durability.]
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High Satisfaction with Cement Quality (Mean = 3.80)
Individuals demonstrate satisfaction with purchased cement quality through their average score of
3.80 because they receive satisfactory results across strength features and set time and workability
while attaining durability.
The requirements for cement manufacturing exist under BIS 269 and BIS 1489 standards which create
basic quality level consistency among brands in India.
UltraTech and other major brands including ACC and Ambuja along with JK Cement consistently
dedicate large amounts of funds to research and development activities to maintain their high product
standards.
The annual research and testing expenses of UltraTech Company surpass ₹250 crore which directs
toward improving product formulations throughout the year.
Business Insight:
Companies have executed successful delivery of product integrity that satisfies the basic requirement
of trustworthy construction strength. Brand credibility improves and the foundation for developing
more customer loyalty becomes possible.
Pricing strategies together with promotional schemes and bulk discounts and visible value-added
benefits such as anti-corrosion features demand special attention when multiple similar brands exist in
the market.
Business Insight:
To support high-end pricing manufacturers should either elaborate on functional product benefits or
deliver additional services (advisory and site assistance) to boost customer-perceived product value.
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Cement Manufacturers Association (CMA) recorded through its 2023 survey that technical support
teams failed to meet satisfaction expectations of 70% of consumers and small contractors located in
Tier-2/Tier-3 cities.
The main complaints about service include insufficient communication protocols and delayed site
inspections alongside limited proactive support.
Business Insight:
Superior technical service stands to become an essential factor that separates companies from one
another. Complaint resolution systems with quick response times train field engineers and technical
support systems based on CRM technology lead to major brand loyalty increases for companies that
implement these strategies.
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What customers prefer in brands are trustworthy options but their commitment stems from
dependable performance and easy accessibility and expert advice.
The Indian cement sector witnesses higher customer retention of UltraTech and ACC along with
Ambuja Cement and Dalmia Bharat by individual homeowners and small contractors. According to
the Cement Manufacturers Association (CMA) 2023 report, regular buyers mainly demonstrate brand
loyalty by reusing the same brand while less than 30% claim ‘highly loyal’ superiority in price-free
conditions.
Business Insight:
The existence of brand loyalty here requires specific conditions to maintain the relationship.
Companies should develop stronger emotional bonds than basic product assessment to retain their
customer base from competitor acquisition.
Business Insight:
Manufacturers need sustained investments in customer loyalty schemes contractor relations
management along with educational programs to reduce client attrition. Supplying high-quality
products alone no longer satisfies customers since their experience and perceived value gains have
become more crucial.
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Business Insight:
Business promotions need strategic scheduling and long-lasting value packages such as warranties
and technical support to prevent price-based brand switching.
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The consumer preference for sustainable purchasing choices reached a high level of 3.99 when
selecting cement brands.
The production of cement leads to 7-8% of total global CO₂ emissions.
The Indian cement industry has started focusing on sustainability by having UltraTech Cement
together with ACC and Dalmia Bharat introduce Green Cement variants such as Portland Pozzolana
Cement and blended cements to minimize environmental effects.
The cement producer UltraTech stated its commitment to becoming carbon emissions free through its
2050 target which fulfills worldwide sustainability objectives.
Business Insight:
Every aspect of business today should include environmentally friendly branding combined with real
sustainability practices because that standard has shifted from being optional to mandatory.
Companies within the cement sector achieve superior positioning among environmentally conscious
consumers when they achieve green certifications along with carbon-free manufacturing operations
and market green benefits.
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Expectation for Innovation and Product Customization (Mean = 3.76)
The survey participants exhibited considerable interest in progressive cement solutions since their
rating stood at 3.76.
Modern cements utilizing Quick Setting Cement together with WeatherPro Cements and Self-healing
Concrete and Nano-technology based admixtures show rising market demand.
Global brands devote investment resources to create custom cement products including waterproofing
cements and marine-grade cements and green building materials for construction purposes.
Business Insight:
The cement industry must create specialized product lines and should develop targeted smart solutions
that fit particular areas including coastal regions and earthquake danger zones followed by active
promotional campaigns which utilize traditional marketing methods alongside digital communication
channels.
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2 1 1.2 1.3 5.0
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