CONSUMERS PERCEPTION TOWARDS BRAND LOYALTY OF FMCG PRODUCTS -AN ANALYSIS

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1 CONSUMERS PERCEPTION TOWARDS BRAND LOYALTY OF FMCG PRODUCTS -AN ANALYSIS Mr. G. GANESH Assistant Professor and Research Scholar, Siga College of Management and Computer Science, Kappiyampuliyur, Villupuram, Mobile Dr. S. SOOSAI JOHN ROSARIO Assistant Professor and Research Guide, PG and Research Department of Commerce, Periyar Government Arts College, Cuddalore ABSTRACT The consumers perception towards brand loyalty of the FMCG product is analyzed awareness, knowledge, attitude of the brand, risk aversion to change the brand, satisfaction and brand trust of the consumers, variables namely brand, image, product quality, product knowledge, product involvement, products attributes and brand loyalty of consumers. This highlights research article consumers perception towards brand loyalty of FMCG products-an analysis KEY WORDS: Consumer Perception, Loyalty, Fast Moving Consumable Goods (FMCG), Awareness, Knowledge, Consumers Risk Aversion, Correlation and Regression Analysis INTRODUCTION Consumer perception towards the brand loyalty refers the continuous purchase of the products or services from the same company instead of a substitute product or service from a competitor. Consumers perception is the identification of a particular brand in the mind of the consumer and it has a significant impact on a brand. The consumer perception does not necessarily have very much impact on the actual performance of the product; whereas it is based on the current reputation of brand and product image with respect to the knowledge of the consumers. The consumers perception is the process of influence of the brand, information about the brand which can lead to transformation of brand into brand loyalty. The consumers perception towards brand loyalty of the FMCG product is analyzed awareness, knowledge, attitude of the brand, risk aversion to change the brand, satisfaction and brand trust of the consumers. Page 42

2 Consumer Perception Consumer perception applies the concept of sensorial to marketing and advertising. Just as sensory perception relates to how humans perceive and process sensory stimuli through their five senses. Consumer perception pertains to how individuals form opinions about companies and the merchandise they offer through the purchases the make. A name, term, sign, symbol / design / a combination of them which is intended to identify the goods / services of one seller / groups of sellers add to differentiate them from those of competitors is termed as brand. Loyalty loyalty is the favorable image turned in the minds of buyer which encourages him to buy the product repeatedly. Even if his favorable brand is out of stock, brand loyalist would not switch over to rival brands. He/she will wait till is available. It is said to occur when a consumer makes the choice of purchasing one brand from among a set of alternatives consistently over a period of time. It is always considered to be related to repetitive purchase behavior. Fast Moving Consumable Goods (FMCGs) FMCG generally includes wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. CONSUMERS PERCEPTION TOWARDS BRAND LOYALTY OF FMCG PRODUCTS-AN ANALYSIS awareness is the ability of the potential buyer to recognize and recall that a brand is a member of a certain product category. awareness is essential for existing brand equity in any product or service. 1 The brand awareness of the respondents in the fast moving consumer goods in Cuddalore district is presented in the below Table 1. Table 1: Descriptive Statistics of the Awareness S. No. Statement N Mean S.D. Variance 1. The of FMCG product stays fixed in mind Able to distinguish one brand from the other by its performance Able to discriminate between brands, as I have prior knowledge about them Awareness of the other brands produced by the same manufacturer Good exposure to the brand plays an important role for remembrance recognition of the FMCGs products is due to its performance The descriptive statistics also show the consumers are able to distinguish one brand to other brand by its performance with mean score of 3.99, followed by the FMCG products constantly stay in the consumer mind with mean score of 3.86 and the good exposure to the brand plays an important role for remembrance of the consumer with mean score of 3.82 towards the brand awareness of the consumers. The consumer are recognise the brand only its performance and they are able to discriminate between brands, as they have prior knowledge about them with mean score of 3.79 and 3.64 respectively. The awareness of the other 1 Aaker, D.A., (1991), Managing Equity: Capitalizing on the Value of a Name, New York: Capitalizing on the Value of a Name, New York: Page 43

3 brands produced by the same manufacturer has lowest mean score of 3.30 towards the brand awareness of the consumers in fast moving consumer goods. Knowledge Kevin Keller defined brand knowledge as awareness of the brand name and belief about the brand image. Valuable beliefs are authentic beliefs - consistent and durable. In addition to belief, consumer experience is an important part of brand knowledge. Consumer experience includes emotions, sensations, and activity. Using the terminology of philosophy, beliefs are explicit knowledge meaning they can be put in words, and experience is tacit knowledge meaning it cannot be put in words. The brand knowledge of the respondents in the fast moving consumer goods in Cuddalore district is presented in the below Table 2. Table 2: Descriptive Statistics of the Knowledge S. No. Statement N Mean S.D. Variance 1. Sure decision about the brand before buying Helps to recall the attributes of the product knowledge helps to identify the ingredients of the product Stimulates the use of the same brand Enables one to understand the image of the brand Able to distinguish between original brand and spurious brand The consumers are able differentiate the original brand to spurious brand has scored highest mean value of 4.36, followed by mean value of 3.95 for they are stimulated to use the same brand, mean value of 3.54 for consumers enables to understand the image of the brand and mean value of 3.34 for the brand help them to understanding the ingredients of the product. However, brand knowledge helps them to recall the attributes of the product and a considerable portion of the consumers are not taken sure decision about what type brand before the buying has scored lowest mean value of 3.25 and 3.24 towards the respondents in the fast moving consumer goods. Loyalty loyalty is the one of the important concept in strategic marketing. loyalty is the consumer faithfulness towards a specific brand and it is expressed through repeat purchases of the brand and other positive behaviours of the mouth advocacy, irrespective of the marketing pressures generated by the other competing brands. The brand loyalty of the respondents in the fast moving consumer goods in Cuddalore district is displayed in the Table 3. Table 3: Descriptive Statistics for Consumer Attitude towards the Loyalty S. No. Statement N Mean S.D. Variance 1. The brand chosen has a good reputation Stick to the same brand Enjoy using this brand Appreciate those who use the same brand I say positive things about my brand I always buy my chosen brand I consider myself loyal to my brand I would recommend my main brand to other people Share views of the brand with others Page 44

4 Descriptive statistics shows that the consumers are selecting the product on the basis of good reputation of the brand with highest mean value of 4.20, followed by they always purchase the chosen brand with mean value of 4.07, they attach with the same brand with mean value of 3.95, they consider the loyalty of their brand with mean value of 3.97 and they enjoy using the brand with mean value of 3.78 towards the respondent attitude of brand loyalty. They appreciate those who are using the brand and they recommend the brand to other people with mean value of 3.31 and 2.97 respectively. They have to share views of the brand with others has scored lowest mean value of 2.41 towards the consumer attitude of the brand loyalty. Satisfaction of the Consumer satisfaction is the measure of how the products or service are meeting the expectation of the consumers. In the competitive market how the business concern competes the customer satisfaction and also it is the key strategy of marketing. The satisfaction of the brand of the respondents in the fast moving consumer goods in Cuddalore district is displayed in the Table 4. Table 4: Descriptive Statistics for Satisfaction of the S.No Statement N Mean S.D. Variance 1. I am satisfied with the brand purchased the product Different product attributes keep me in the same brand My loyalty towards a particular product brand is increases the satisfaction about the brand I am dissatisfied about a particular brand I do not like to purchase the repeatedly I attain pleasure from the particular FMCG brands I am loyal towards the brand The descriptive statistics also indicates that they satisfied with the brand purchased the product with mean value of 3.97, followed by the consumers are dissatisfied about a particular brand they don t like to purchase the repeatedly with mean value of 3.96, they attain pleasure from the particular FMCG brands I am loyal towards the brand with mean value of 3.90 and different product attributes keep me in the same brand with mean value of 3.69 towards the respondents in the satisfaction of brand loyalty. They are loyalty in a particular product brand is increases the satisfaction about the brand has scored lowest mean value of 3.26 towards the respondents satisfaction of brand loyalty. Consumers Risk Aversion to Change the Products The risk aversion has been defined as a decision maker s preference for a guaranteed outcome over a probabilistic one having an equal expected value. The consumers risk aversion has been measured by way risk aversion is inferred from their responses to various choices and outcomes. Table 5: Descriptive Statistics for Consumers Risk Aversion to Change the Products S. No. Statement N Mean S.D. Variance 1. I do not switch FMCG brand because of the high switch cost implications I do not switch FMCG brand because of the effort required to reach a level of comfort I avoid switching FMCG brands due to the risk involved I switch FMCG brands according to the prevailing economic conditions I prefer do not to switch FMCG brand as I stand to lose out on the benefits from loyalty programmes. 6. If I like a brand I rarely switch from it just to try something different I would rather wait for others to try a new brand than try it myself Page 45

5 It is clear from the Table 5 the consumers switch FMCG brands according to the prevailing economic conditions with mean value of 3.86, followed by they prefer do not to switch FMCG brand as they stand to lose out on the benefits from loyalty programmes with mean value of 3.65, they do not switch FMCG brand because of the high switch cost implications with mean value of 3.27 towards the respondents risk aversion to change the products. They avoid to switching the FMCG brands due to the risk involved with mean value of 3.25 and they like a brand rarely switch from it just to try something different with value of 3.24 towards the respondents. The consumers not switch FMCG brand because of the effort required to reach a level of comfort and they will rather to wait for other to try a new brand with lowest mean value of 3.19 and 2.66 respectively towards the respondents risk aversion to change the products. Trust trust is the willingness of the average consumer to rely on the ability of the brand to perform its stated function. trust is simply the trust a consumer has in that specific brand. trust leads to brand loyalty or brand commitment because trust creates exchanges in relationships that are highly valued. The concept of brand commitment is related to the loyalty of consumers towards a particular brand in a product class and is gaining increasing weight in consumer behaviour. Table 6 Descriptive Statistics for Trust S. No. Statement N Mean S.D. Variance 1. I am loyal towards the brand because I trust the FMCG brands I am loyal towards the FMCG brand because I have confidence in the brand I purchase the high quality FMCGs brand consistently The reputation of a FMCG brand is a key factor in me maintaining brand loyalty My FMCG brand never dissatisfied me The descriptive statistics also indicates that they have loyalty towards the brand because of the trust in the fast moving consumer good brands with highest mean value of 4.37, followed by the reputation of a fast moving consumer goods brand is the key factor for the brand loyalty with mean value of 3.89 and the fast moving consumer goods brand never dissatisfied the consumer with mean value of 3.89 towards the brand trust. The consumers are having loyalty towards the fast moving consumer goods brand because of the confidence about the brand with mean value of 3.81 and lowest mean value of 3.55 for the consumers are purchase the high quality fast moving consumer goods brand consistently towards the brand trust of the consumers. TESTING THE HYPOTHESES - (ANOVA and T- test) This section is to test the significant difference between consumer brand loyalty with age, gender, marital status, educational qualification, and occupation, monthly income, size of the family members, nature of family and area of the respondents towards brand loyalty of the consumers in the fast moving consumer goods and the following null hypotheses has been framed: Ho1: There is no significant difference between brand loyalty of the consumers and demographic profile of the respondents. Consumers Loyalty and Gender of the Respondents T-test is applied to ascertain if there were any significant difference between consumer brand loyalty and gender of the respondents in select fast moving consumer goods and the following null hypotheses has been framed: Page 46

6 Ho 1 a : There is no significant difference between consumer brand loyalty and gender of the respondents. Table 7: T- Test for Consumers Loyalty and Gender of the Respondents Variables Gender N Mean S.D Std. Error of Mean F-Value P-Value Male Awareness Female * Total Knowledge Male * Female rejected Total Male Attitude towards Female Loyalty accepted Total Male Satisfaction of the Female Total * Male Risk Aversion to Female Change the Products Total * Male Trust Female * Total The calculated t value of the brand awareness (t value ), brand knowledge (t value ), satisfaction of the brand (t value ), risk aversion to change the products (t value ), and brand trust (t value ) are significant at 5 per cent level. Hence, the stated hypothesis of there is no significant difference between consumer brand loyalty and gender of the respondents is rejected. However, the calculated t value of for the consumer attitude towards brand loyalty is not significant. Hence, the stated hypothesis of there is no significant difference between consumer brand loyalty and gender of the respondents is accepted. Further, the mean value indicates that the female respondents are having more brand loyalty as compared to male respondents. Consumers Loyalty and Age Group of the Respondents One way ANOVA was applied to ascertain if there were any significant difference between consumer brand loyalty and age groups of the respondents and the following null hypotheses has been framed: Page 47

7 Ho 1 b : There is no significant difference between consumer brand loyalty and age of the respondents. Table 7: One Way ANOVA for Consumers Loyalty and Age of the Respondents Variables Age N Mean S.D. Std. Error of Mean F-Value P-Value 16 to 25 years Years Years Awareness Above 45 Years * Total Knowledge Attitude towards Loyalty Satisfaction of the Risk Aversion to Change the Products Trust 16 to 25 years Years Years Above 45 Years Total to 25 years Years Years Above 45 Years Total to 25 years Years Years Above 45 Years Total to 25 years Years Years Above 45 Years Total to 25 years Years Years Above 45 Years Total * * * * * The calculated F value of 6.175, 5.846, 7.091, 4.251, and to the above respective variable of brand awareness, brand knowledge, attitude towards brand loyalty, satisfaction of the brand, risk aversion to change the products, and brand trust are significant at 5 per cent level. Hence, the stated hypothesis of there is no significant difference between consumer brand loyalty and age of the respondents is rejected. Further, the mean score indicates that the age category of 26 to 35 years is having more brand awareness as compared to other category of respondents. The age category of 16 to 25 years is having more brand knowledge as compared to other category of respondents. The age category of 36 to 45 years is having more brand loyalty, satisfaction and brand trust as compared to other category of respondents. The age category of 26 to 35 years is having more risk aversion to change the products as compared to other category of respondents. Consumers brand loyalty and marital status of the respondents One way ANOVA was applied to ascertain if there were any significant difference between consumer brand loyalty and marital status of the respondents and the following null hypotheses has been framed: Page 48

8 Ho 1 c : There is no significant difference between consumer brand loyalty and marital status of the respondents. Table 8: ANOVA for Consumers Loyalty and Marital Status Marital S.E. Variables N Mean S.D. F-Value P-Value Status Mean Married Awareness Knowledge Attitude towards Loyalty Satisfaction of the Risk Aversion to Change the Products Trust Unmarried Others (Divorced /Widow) Total Married Unmarried Others (Divorced /Widow) Total Married Unmarried Others (Divorced /Widow) Total Married Unmarried Others (Divorced /Widow) Total Married Unmarried Others (Divorced /Widow) Total Married Unmarried Others (Divorced /Widow) Total * * * * The calculated F value of 7.561, , 6.429, and to the above respective variable of brand awareness, brand knowledge, satisfaction of the brand, and brand trust are significant at 5 per cent level. Hence, the stated hypothesis of there is no significant difference between consumer brand loyalty and marital status of the respondents is rejected. However, the calculated F value of and of the variable of attitude towards brand loyalty and risk aversion to change the products are significant at 5 per cent level. Hence, the stated hypothesis of there is no significant difference between consumer brand loyalty and marital status of the respondents is accepted. Consumers brand loyalty and educational qualification of the respondents One way ANOVA was applied to ascertain if there were any significant difference between consumer brand loyalty and educational qualification of the respondents and the following null hypotheses has been framed: Page 49

9 Ho 1 d : There is no significant difference between consumer brand loyalty and education of the respondents. Table 9: One Way ANOVA for Consumers Loyalty and Education Variables Education N Mean S.D. Std. Error of Mean F-Value P-Value High School Level Graduate Level Awareness Post Graduate * Total High School Level Knowledge Attitude towards Loyalty Satisfaction of the Risk Aversion to Change the Products Trust Graduate Level Post Graduate Total High School Level Graduate Level Post Graduate Total High School Level Graduate Level Post Graduate Total High School Level Graduate Level Post Graduate Total High School Level Graduate Level Post Graduate Total * * * * The calculated F value 6.774, , 3.895, 4.618, and to the above respective variable of brand awareness, attitude towards brand loyalty, satisfaction of the brand, risk aversion to change the products, and brand trust are significant at 5 per cent level. Hence, the stated hypothesis of there is no significant difference between consumer brand loyalty and education of the respondents is rejected. The graduate level educated respondents are more brand awareness as compared to other category of educated respondents. The post graduate level educated respondents are more brand attitude towards the brand loyalty as compared to other category of educated respondents. The high school level educated respondents are more satisfaction, risk aversion to change the products and brand trust towards the brand loyalty as compared to other category of educated respondents. CONSUMER PRE- PURCHASE DECISION TOWARDS FMCGs Consumer purchase behaviour is mainly depend with the needs of the consumers, attitude, past experience in the usage, and external influences like advertisement, promotion, retail availability, personal selling, word-of-mouth, packaging and pricing. The consumers also decide what type of product to be purchased, how much to be purchased, when to buy the products and where to buy the products. After purchasing the products or services the consumption and responses generate the post-usage feelings of Page 50

10 satisfaction and changes in attitude. These various aspects of consumer pre purchase behaviour and post purchase behavior is presented in this section. Table 10: Family Initiated the Need for FMCG Products S.No. Initiation No. of Respondents Frequency Cumulative Frequency 1 Father Mother Husband Wife Children Total Source: Primary Data It is clear from the Table 10 that the husband has initiated the need for FMCG has highest of percent and wife initiated the need for the products 35 per cent. The position of father per cent, children 6.96 per cent and mother 6.61 per cent towards the initiated in the family need for FMCGs products in the Cuddalore district. Table 11: Circumstances for the Reorganization of Your Needs S. No. Statements SA A N DA SDA Total 1. Interest towards FMCGs products Emerging beauty consciousness To be fashionable To protect health To live healthy and hygienic life Sales and promotional activities of firms Low-unit price of FMCGs products To attain prestige and social status Inherent features and attributes of FMCGs products Source: Primary Data The need for recognition shows that the FMCGs are mainly to protect health, to live healthy and hygienic life, interest towards FMCGs products, and to attain prestige and social status are the predominant reason among the respondents. However, they are to be fashionable, emerging beauty consciousness, inherent features and attributes of FMCGs products and low-unit price of FMCGs products are less dominant among the respondents in the need for recognition. Page 51

11 Table 12: Post- Purchase Behaviour S. No. Variables SA A N DA SDA Total 1. Lodge complaints to the seller if the product fails to satisfy If satisfied, will have discussions with my friends to popularize the brand name Speak well about the product and brand if it fulfills expectations about the brand Advertisement increases the brand image and product information of FMCGs products Advertisement results in price hike Switch over to other brands if it fails to satisfy Speak ill of the product and brand if it fails to fulfill expectations about the brand Advertised products are more reliable and dependable than unadvertised ones Product attributes are overstated in most of the advertisements The procedure followed by retailers and manufacturers in handling complaints are satisfactory Source: Primary Data Majority of the consumers are strongly agree with the product attributes are overstated in most of the advertisements and they switch over to other brands if the product fails to satisfy the consumers. The majority of the consumers also agree with the advertisement results in the price hike of the products. The consumers are lodge complaints to the seller if the products fail to satisfy them and at the same time if they satisfied, they have discussion with their friends to popularize the brand name are significant among the respondents. However, most of the respondents are strongly disagree with advertised products are more reliable and dependable than unadvertised ones towards the respondents post purchase beahviour in the brand loyalty. Regression Analysis of Consumer Perception towards the Loyalty The regression analysis is used to analyse the consumer perception towards brand loyalty by way of brand awareness, brand loyalty, attitude towards the brand, satisfaction of the brand, risk aversion to change the brand and brand trust. The following hypothesis has been formulated. Ho2: There is no significant difference between the family member initiation of the FMCGs products and the consumer perception towards brand loyalty. Page 52

12 Table 13: Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a Table 13 (a): ANOVA a Sum of Model Df Mean Square F Sig. Squares Regression b 1 Residual Total Table 139(b): Coefficients a Standardized Unstandardized Coefficients Model Coefficients t Sig. B Std. Error Beta (Constant) awareness knowledge Attitude towards brand loyalty Satisfaction of the brand Risk aversion to change the products trust The calculated t value of , 0.450, and to the variables of brand knowledge, brand loyalty and satisfaction of the brand is significant. Hence, the stated hypothesis of there is no significant difference between family members initiated the need for FMCGs and consumer perceptions towards brand loyalty, is rejected. The calculated t value of , 3.576, and to the variables of brand knowledge, brand loyalty and satisfaction of the brand is significant. Hence, the stated hypothesis of there is no significant difference between family members initiated the need for FMCGs and consumer perceptions towards brand loyalty, is rejected. FINDINGS AND SUGGESTIONS The following importance findings and suggestions are as under Based on product quality the mean value of the sun feast have scored highest average acceptance score of and lowest average acceptance score of for dukes towards the brand loyalty of the Based on price the mean value of the Britannia industries limited have scored highest average acceptance score of and lowest average acceptance score of 9.80 for dukes towards the brand loyalty of the consumers. Page 53

13 Based on promotion the mean value of the Sun feast have scored highest average acceptance score of and lowest average acceptance score of for Priya Gold biscuits towards the brand loyalty of the consumers. Based on distribution the mean value of the Britannia industries limited have scored highest average acceptance score of and lowest average acceptance score of for Priya Gold biscuits towards the brand loyalty of the consumers. SUGGESTIONS Building brand equity is crucial for FMCG products where consumers heavily depend on the brand for the product category in a highly competitive and brand conscious market. Researchers found that brand awareness, brand loyalty, perceived quality and brand associations had a significant effect on band equity. association demonstrated the strongest impact, indicating the essential role of developing feels and thoughts with the brand in building brand equity in the Indian FMCG industry. This means that, consistent with previous studies, strong associations that support a competitively attractive and distinct brand position could create a favorable feeling and behavior toward the FMCG brands. The results also portrayed the significant influence of brand loyalty to the development of brand equity. The empirical data and statistical tests in the study provided support for the positive and direct relationship between perceived quality and brand equity. Surprisingly, brand awareness emerged as a not so important factor indicating that having a brand name alone is not a guarantee of a successful brand in the FMCG industry. Since marketing and brand managers often have limited CONCLUSION The consumers perception towards brand loyalty of the FMCG product is analyzed awareness, knowledge, attitude of the brand, risk aversion to change the brand, satisfaction and brand trust of the consumers. The researcher application analysis towards t- test, ANOVA, regression and correlation analysis, the next chapter focuses on the summary of findings, suggestions, conclusion and scope for the future directions. REFERENCES 1. Aaker, D.A., (1991), Managing Equity: Capitalizing on the Value of a Name, New York: Capitalizing on the Value of a Name, New York: 2. Burlakanti and Romala Vijaya Srinivas, The Most Influential Factors of Consumers Buying Pattern At Organized And Unorganized Retail Stores With Special Reference To Kakinada City, Andhra Pradesh, Indian Journal of Marketing, January 2013, pp Edward Vinod and Rajeshwari Panigrahi, Purchase Behavior of Gen Y in the Indian Market Influence of Advertisements, GITAM Journal of Management, Vol.11 No.4, pp Gurupandi, M (2013) Customer s Behavior and Motivating Factors towards Purchase of Ornament Products - An Analytical Study, GITAM Journal of Management, Jan-Mar 2013, Vol.11 No.1, pp HA, H.Y. (2004), Factors Influencing Consumer Perceptions of Trust Online, Journal of Products and Management. 6. Keerthi Pandiyan and K.K. RamaChandran(2013) 1 Awareness of Postal Retail Services: Customers Perpective, GITAM Journal of Management, Vol.11 No.4, pp Oct-Dec Rajeev K. Shukla, Ajit Upadhyaya and Deepak Modi(2013) Income Effect on Customer Satisfaction for Corporate Hospitals Services-An Empirical Investigation, Vol.11 No.1 pp Rama Mohana Rao, K and K. Ratna Manikyam(2013) Customer s Shopping and Buying Experience with Small Scale Retail Units - A Case Study. GITAM Journal of Management Vol.11 No.2 PP11-25 Apr-Jun Valarie A. Zeithaml (1988), Consumer Perceptions of Price, Quality, and Value: A Means - End Model and Synthesis of Evidence, Journal of Marketing Vol. 52 (7), pp Veni, P and Vishwanath, B, Consumer and Retailers Perception about Chinese Mobile Handsets in Hyderabad City - An Analytical Study, GITAM Journal of Management Jul-Sept 2013,Vol.11 No.3, pp Page 54