The
automobile industry today is the most lucrative industry. Due to the increase
in disposable income in both rural and urban sector and easy finance being
provided by all the financial institutes, the passenger car sales have
increased at the rate of 38% per annum in January 2009-10 over the
corresponding period in the previous year.
This
report attempts to answer some of the questions regarding brand personality of
selected cars in India by conducting the market research. This report is
categorized into parts, deals with introduction to cars related with feature
and prices to know the consumers perception regarding the small segment cars
i.e. A and B and C.
The
automobile industry today is the most lucrative industry. Due to the increase
in disposable income in both rural and urban sector and easy finance being
provided by all the financial institutes, the passenger car sales have
increased at the rate of 25% per annum in January 2009-10 over the
corresponding period in the previous year. Further competition is heating up in
the sector with a host of new players coming in and others like Maruti Suzuki,
Tata Motors, Huyandi etc. all set to venture in Indian markets. One factor that
could help the companies in the marketing of their products is buying Behavior
of the consumers. The Buying Behavior of the customers can be studied by
knowing their perceptions about the cars in the market and about the possible
entrants in the market. One such technique is by knowing and creating a
personality for the the cars manufactures.
This
perception sketching will help in knowing what a customer (or a potential
customer) thinks about a given brand of car and what are the possible factors
guiding a possible purchase. Similarly, the idea of measuring the customer
satisfaction will serve the same purpose of determining the customer
perception. Thus, by measuring the” willingness of existing users of a car to
recommend it to others” will help the car manufacturers to chalk out the entire
Customer Buying Behavior.
The
reports shall attempt to answer some of the questions regarding brand
personality of selected cars in India by conducting a market research. The
market research will be helpful for the new car entrant companies in India to
find out the possible gaps between the customer expectations and the present
market offerings. This way these companies will be able to find their share in
the ever-expanding Indian market pie.
The
research will track the customer satisfaction in this given layers:
v Product
related Parameters
v Dealer
related parameter
It
will be mainly a primary research and the information will be gathered from
both primary and secondary research. The study will analyze the applicability
of existing research concepts, theories, and tools for evaluating consumer
satisfaction.
|
S.
No.
|
Particulars
|
Pg.
No.
|
|
1.
|
Executive
Summary
|
5
|
|
2.
|
1.1
History of Automobile and Indian Automobile
|
9
|
|
3.
|
1.2 Overview of Auto segment
|
12
|
|
4.
|
1.3Emerging trends of Auto market
|
17
|
|
5.
|
1.4Overview of small segment cars
|
22
|
|
6.
|
1.5Consumer Buying Behavior
and Perception
|
24
|
|
7.
|
1.6 Company’s profile
|
28
|
|
8.
|
2.Literature
Review
|
37
|
|
9.
|
3.Objective
and Research Methodology
|
42
|
|
10.
|
4.Data
Interpretation and Cross Tabulation
|
46
|
|
11.
|
5.Conclusion
and Recommendation
|
67
|
|
12.
|
6.Reference
|
71
|
|
13
|
Annexure
|
74
|
CHAPTER-1
INTRODUCTION
The History of the Automobile
The history of
the automobile begins as early as 1769, with the
creation of steam-powered automobiles capable of human transport In 1806, the first cars powered by internal combustion engines running on fuel
gas appeared, which led to the
introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal
combustion engine. Cars powered by electricity briefly appeared at the turn of the
20th century but largely disappeared from commonality until the turn of the
21st century, when interest in low- and zero-emissions transportation was reignited. As
such, the early history of the automobile can be divided into a number of eras
based on the prevalent method of automotive propulsion during that time. Later
periods were defined by trends in exterior styling and size and utility
preferences.
Indian
Automobile History
The origin of automobile is not
certain. In this section of automobile history, we will only discuss about the
phases of automobile in the development and modernization process since the
first car was shipped to India. We will start automotive history from this
point of time.
The automobile industry has changed the way people live and work. The earliest
of modern cars was manufactured in the year 1895. Shortly the first appearance
of the car followed in India. As the century truned, three cars were imported
in Mumbai (India). Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel
was used for transportation in India. In the beginning of 15th century
Portuguese arrived in China and the interaction of the two cultures led to a
variety of new technologies, including the creation of a wheel that turned
under its own power. By 1600s small steam-powered engine models was developed,
but it took another century before a full-sized engine-powered vehicle was
created.
The actual horseless carriage was
introduced in the year 1893 by brothers Charles and Frank Duryea. It was the
first internal-combustion motor car of America, and it was followed by Henry
Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce
Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding
windscreens and hood, and an aluminum body. It was usually driven by chauffeurs
and emphasis was on comfort and style rather than speed.During the 1920s, the
cars exhibited design refinements such as balloon tires, pressed-steel wheels,
and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder
engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had
roomy interior and rear-hinged back door that suited more to the needs of
families. In 1930s, vehicles were less boxy and more streamlined than their
predecessors. The 1940s saw features like automatic transmission, sealed-beam
headlights, and tubeless tires.
The year 1957 brought powerful
high-performance cars such as Mercedes-Benz 300SL. It was built on compact and
stylized lines, and was capable of 230 kmh (144 mph). This was the Indian
automobile history, and today modern cars are generally light, aerodynamically
shaped, and compact.
OVERVIEW
OF THE AUTO SEGMENT
The automobile industry in India is the ninth largest in the world with an annual production of over 2.3
million units in 2008.In 2009; India emerged as Asia's fourth largest exporter
of automobiles, behind Japan, South Korea and Thailand.
Following economic liberalization
in India in 1991, the
Indian automotive industry has demonstrated sustained growth as a result of
increased competitiveness and relaxed restrictions. Several Indian automobile
manufacturers such as Tata
Motors, Maruti
Suzuki and Mahindra and Mahindra,
expanded their domestic and international operations. India's robust economic growth led to the further expansion of its
domestic automobile market which attracted significant India-specific
investment by multinational automobile manufacturers In February 2009, monthly sales of
passenger cars in India exceeded 100,000 units. Ebryonic automotive industry
emerged in India in the 1940s. Following the independence, in 1947, the Government of India and the private
sector launched
efforts to create an automotive component manufacturing industry to supply to
the automobile industry. However, the growth was relatively slow in the 1950s
and 1960s due to nationalization and the license
raj which hampered the
Indian private sector. After 1970, the automotive industry started to grow, but
the growth was mainly driven by tractors, commercial vehicles and scooters.
Cars were still a major luxury. Japanese manufacturers entered the Indian
market ultimately leading to the establishment of Maruti
Udyog. A number of foreign firms initiated joint ventures with
Indian companies.
In the 1980s, a
number of Japanese manufacturers launched joint-ventures for building
motorcycles and light commercial-vehicles. It was at this time that the Indian
government chose Suzuki for its joint-venture to manufacture
small cars. Following the economic liberalisation in 1991 and the gradual
weakening of the license raj, a number of Indian and multi-national car
companies launched operations. Since then, automotive component and automobile
manufacturing growth has accelerated to meet domestic and export demands.
The reason
behind the immense growth of the India
Car Industry can be attributed to the availability of car loans,
affordable rates of interest, smooth repayment facilities and the deductions
offered to the customers by the retailers.
The constant
changes in the existing car models with regard to design, innovation,
technology, and colors, have led to a fiercely competitive market. Now that
technology and innovation are not alien concepts for Indian car makers, Indian
cars are becoming increasingly sleek, stylish, and luxurious.
The Indian automobile industry has attained a
substantial growth and has become one of the largest manufacturing sectors in
India over the past two decades. In the export market the industry has earned a
strong reputation and Indian vehicles as well as components are in great demand
the world over.
India has entered the big league of Asian car market.
In the past few years, the production and management systems in the Indian
automobile industry have been revolutionized. One of the dramatic changes in
the industry has been the opening and growing up of several emerging markets.
India is one of the most important emerging car economies in the world today.
In 1991, the Government of India initiated an ambitious structural adjustment
programme aimed at economic liberalization based on Delicensing, Decontrol,
Deregulation and Devaluation.
This new automobile policy attracted a large number of
automobile companies to India. The foreign investors’ perception has changed
and, therefore, a large number of multinational auto companies, especially from
Japan, USA, and Europe, are entering the Indian auto market and working in
collaboration with the Indian firms. Also, the availability of automobile
finance has further paved the way for a long-term growth of the industry.
Many joint venture agreements have been made in the
Indian automobile and auto-components sector with leading global manufacturers.
The Government of India is keen on providing a suitable economic and business
environment conducive to the success of the established and prospective foreign
partnership ventures.
The Indian automobile industry has a mix of large
domestic private players such as Tata, Mahindra, Ashok Leyland, Bajaj, Hero
Honda and major international players including GM, Ford, DaimlerChrysler,
Toyota, Suzuki, Honda, Hyundai and Volvo. Today, the Indian automobile industry
is the world’s largest motorcycle manufacturer, the second-largest two-wheeler
and tractor manufacturer, the fifth-largest commercial vehicle manufacturer and
the fourth-largest car maker in Asia.
Indians have emerged as avid car enthusiasts sporting
their prized possessions as status symbols and speed machines. Foreign car
companies have discovered the Indian consumer as well as the R & D
potential in the Indian technical fraternity and are setting up manufacturing
plants right and left across the country at lower costs. The Indian automobile
industry is currently experiencing an unprecedented boom in demand for all
types of vehicles. This boom has been triggered primarily by two factors:
(1)
Increase in disposable incomes and standards of living of middle class Indian
families estimated to be as many as four
million in number; and
(2)
The Indian government's liberalization measures such as relaxation of the
foreign exchange and equity regulations, reduction of tariffs on imports, and
banking liberalization that has fueled financing-driven purchases.
Industry
observers predict that passenger vehicle sales will triple in five years to
about one million, and as the market grows and customer's purchasing abilities
rise, there will be greater demand for higher-end models which currently
constitute only a tiny fraction of the market. These trends have encouraged
many multinational automakers from Japan, U. S. A., and Europe to enter the
Indian market mainly through joint ventures with Indian firms.
India is
increasingly becoming a global automotive hub both for the vehicles and
component industry. India is fast integrating itself into the world economy and
open to international automotive companies, who are increasingly investing in
India.
The Indian
automotive and component industry is looking to increase the quality of
production from existing levels, to develop new products and to increase
exports. In the long run India is well set to become a key market for automotive
and component manufacturers in terms of local demand and as a base for exports.
Automobile Industry in India is still in its infancy but growing
rapidly. The opportunities in the automobile industry in India are attracting
big names with the big purse and they are investing vigorously in
infrastructure, design and development, and marketing. Automobile industry in
India is today poised for the big leap.
·
India is the 2nd largest
two wheeler manufacturer in the world
·
Second largest tractor
manufacturer in the world
·
5th largest commercial
manufacturer in the world
·
3rd largest car market in
Asia, surpassing China in the process
Automobile industry Contributes 17% of the total indirect taxes
collected by the exchequer & is a driver of product and process
technologies, and has become a excellent manufacturing base for global players,
because of its:
·
high machine tool
capabilities
·
Extremely capable
component industry
·
Most of the raw material
locally produced
·
Low cost manufacturing
base
·
Highly skilled manpower
·
Special capability in
supplying large volumes
Indian
automobile manufacturer
v Hindustan
Motors: Ambassdor
v Maruti Suzuki: 800, Alto, Wagon R, Estilo, A Star, Ritz, Swift, Omni, Versa, Gypsy
v Tata
Motors: Nano, Indica,
Multi-national
automobile manufacturers
Locally manufactured Automobiles of Multi-national Companies:
§ Chevrolet : Spark, Beat, Aveo U-VA, Aveo
§ Fiat : Palio, Grande Punto
§ Ford : Ikon, Figo
§ Hond : Jazz
§ Hyundai : Santro, i10, Getz, i20
Emerging
Trend of India Auto market
India auto
market is a promising industrial sector that is growing immensely every passing
year. Passenger cars are referred to, through use of word
"automobile." Whooping growth experienced by Indian auto market in
last financial year itself that is financial year end in February, 2010 was
very close to a 24 percent over previous fiscal. This statistical fact is a
glittering example of potential of growing auto industry in India.
As per
survey conducted by Society of Indian Auto Manufacturers, total number
of automobiles manufactured by auto industry in India, throughout financial
year 2008-09, was very close to 15.5 lakh (1.5 million) margin. Huge of number
of automobiles manufactured by auto industry in India was an enormous
growth upon number of autos manufactured during previous fiscal, that ended in
2009.
Total number
of cars that were exported from India were very close to 2.0 lakh (2.0 hundred
thousand) margin, an encouraging sign for auto industry in India. Export of
cars manufactured in India comprised nearly 13 percent of total number of cars
manufactured domestically by auto industry in India.
India
auto market looks set to prosper, largely due to growing market for automobiles
that is developing in India. In financial year that ended in February, 2007,
Indian auto markets were fastest growing in world, with registered
growth rate touching nearly 20 percent.
Auto industry in India mainly comprises of small car section, which enjoys
nearly a 2/3rd market share of entire market for autos in India. In this
respect, Indian markets are largest in world for small cars,
behind Japan.
Indian
passenger car market which ranks amongst largest in world, is poised to become
even more larger and enter top five passenger car markets in world in next
decade
Industry
background
Driving the most luxurious car has been made possible by the stiff competition
in the automobile industry in India, with overseas players gathering the same
momentum as the domestic participants. Every other day, we have been hearing about
some new launches, some low cost cars – all customized in a manner such that
the common man is not left behind. In 2009, the automobile industry is expected
to see a growth rate of around 9%, with the disclaimer that the auto industry
in India has been hit badly by the ongoing global financial crisis.
The
automobile industry in India happens to be the ninth largest in the world.
Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth
largest exporter of automobiles. Several Indian automobile manufacturers have
spread their operations globally as well, asking for more investments in the
Indian automobile sector by the MNCs.
Potential of
the Automobile industry
In 2008,
Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans
to export 250,000 vehicles manufactured in its India plant by 2011. Similar
plans are for General Motors.
|
Turnover of Automobile Manufacturers(In USD Million)
|
|
Year
|
In
USD Million
|
|
2002-03
|
14,880
|
|
2003-04
|
16,544
|
|
2004-05
|
20,896
|
|
2005-06
|
27,011
|
|
2006-07
|
34,285
|
|
2007-2008
|
40,345
|
|
2008-2009
|
45,867
|
Source:
SIAM India
The figures
show that the automobile sector in India has been growing robustly. The market
shares of the different types of vehicles will clearly depict the demand
pattern in this sector.
|
Domestic Market Share for 2008-09
|
|
Passenger
Vehicles
|
15.96%
|
|
Commercial
Vehicles
|
3.95%
|
|
Three
Wheelers
|
3.6%
|
|
Two
Wheelers
|
76.49%
|
Source: SIAM India
Industry Size
§ The
domestic Indian passenger car market (including utility vehicles) totaled
900,000 units (with a CAGR of 10 per cent over the past 4 years) while the
exports were 130,000 million units (with a registered CAGR of 68 per cent over
the past 4 years) during financial year 2009.
§ The
Indian two-wheeler Industry is one of the largest in the world, and is expected
to maintain robust growth in the future
§ At
the back of this phenomenal automotive growth is the success of the Indian auto
component industry. Presently a US$ 6.7 billion industry, it is expected to
almost treble in less than eight years time to US$ 17 billion by 2012.
§ India
offers a distinct technological and cost-competitive advantage, which global
Original Equipment Manufacturers (OEMs) and automotive suppliers are leveraging
for both manufacturing and research facilities.
The passenger car market is projected to grow at a CAGR of 12.3 per cent
over the next few years. Growth in the mid-size and premium car segments is
expected to outpace the overall market growth.
MARKET SHARE
|
Domestic
Market Share for 2009-10
|
|
Passenger
Vehicles
|
15.86
|
|
|
|
Commercial
Vehicles
|
4.32
|
|
|
|
Three
Wheelers
|
3.58
|
|
|
|
Two
Wheelers
|
76.23
|
|
|
Source:
Market Research by SIAM India
Source:
Market Research by SIAM India
Domestic and Foreign Vehicle Manufacturers:
Automobile Manufacturers
Market Share
LCV
0.083 Mn
Passenger Cars
0.604 Mn
Source: Market Research by SIAM India
Overview of Small Segment Cars
The small car market in India is increasing by leaps and bounds.
The indigenous market for small cars now occupies a substantial share of around
70% of the annual car production in India of about one million. The main
players in the car market like Tata Motors and Maruti Udyog are fiercely
competitive and more or less all the automobile companies in India that have
forayed into the production of small cars are trying to out-do each other in
terms of design, innovation, pricing, and technology, in order to gain control
of the small car market in India.
The biggest players in
the Indian small car market are engaging in a healthy competition, which has
intensified since the Indian government decided to boost the small car sector.
In this regard, a reduction in the excise duties has been thought of. Even the
engine capacities are expected to be raised to 1500cc. The new small cars in
India cars may even be fueled by gasoline and diesel in the future. With all
these facilities, it has been estimated that the indigenous car market is going
to move beyond the 3.5 million mark very soon.
Suzuki,
which is now heading the Indian small car market has plans to invest an
additional US$ 650 million for research and development work in its Manesar
Plant. This Plant will also be used for manufacturing diesel cars. Suzuki has
decided to enter into a joint-venture with Nissan to launch a new mini car
model in India.
Even
Hyundai Motors is on a similar investment spree for research work with a
venture of US$ 700 million in India. The two cars from the Hyundai stable -
Santro and Getz are already in the market and have been doing exceptionally
well in the past few years. It is expected that more and more foreign companies
are likely to join the healthy race in the Indian small car market.
One of the biggest players in China's car market,
Volkswagen, has decided to invest in the Indian small car market. It is
supposed to invest a total amount of US$ 540 million and manufacture nearly
100,000 mini cars on an annual basis.
Factors
driving the demand for small cars in India:
The increase in the demand for small
cars can be attributed to the aspirational lifestyle of people which makes them
strive for a car early on in life. The overall age for owning a car has also
decreased in recent years. Further, with the growing affluence of the rural
sector, owning a car, at least a small car, is a foregone conclusion in modern
India. However, since small cars are more affordable and utilitarian, the
demand for them has shot through the roof. This rising demand for small cars is
attracting companies like General Motors which has increased its yearly
production in India to 140,000 vehicles. The Maruti 800 which is the most
preferred car among the Indian middle classes can now be bought at a lower
cost. Tata Motors has been launch a mini-car in 2008, which will cost as less
as US$ 2,200. Tata Motors is also going through a process of decision-making,
to launch a variety of mini-cars in association with Fiat. Honda has also
decided to increase its manufacturing capacity in India to 100,000 very soon.
Therefore, the leaders in the market for small cars in India can be seen to
engage in a price war to make more cars available to the majority of Indian
citizens.
The small car market in India is
witnessing the maximum activity and is all set for more exciting times ahead,
with more players from India and abroad joining the race.
Consumer Buying Behavior
and Perception
The
Indian consumers are noted for the high degree of value orientation. Such
orientation to value has labeled Indians as one of the most discerning
consumers in the world. Even, luxury brands have to design a unique pricing
strategy in order to get a foothold in the Indian market.
Indian
consumers have a high degree of family orientation. This orientation in fact,
extends to the extended family and friends as well. Brands with identities that
support family values tend to be popular and accepted easily in the Indian
market.
Indian
consumers are also associated with values of nurturing, care and affection.
These values are far more dominant that values of ambition and achievement.
Product which communicate feelings and emotions gel with the Indian consumers.
Customer
satisfaction index: some of the most advance thinking in the business world
recognizes that customer relationships are best treated as assets, and that
methodical analysis of these relationships can provide a road map for improving
them.
Clause
8.2.1 in ISO9000: 2000 states: “As
one of the measurements of the performance of the quality management system,
the organizations shall monitor information relating to customer perception as
to whether the organization has met customer requirements. The method for
obtaining and using this information shall be determined”
The
requirement has been there in the QS9000 standard clause 4.1.6 which says:
“Trends
in customer satisfaction and key indicators of customer dissatisfaction shall
be documented and supported by objective information. These trends shall be
compared to those of competitors, or appropriate benchmarks, and reviewed by
senior management.”
There
is obviously a strong link between customer satisfaction and customer
retention. Customer’s perception of service and quality of product will
determine the success of the product or service in the market.
With
better understanding of customer’s perceptions, companies can determine the
actions required to meet the customer’s needs. They can identify their own
strengths and weaknesses, where they stand in comparison to their competitors,
chart out the path future progress and improvement. Customer satisfaction
measurement helps to promote an increased focus on customer outcomes and
stimulate improvements in the work practices and processes used within the
company.
Customer
expectations are the customer-defined attributes of your product or service. We
cannot create satisfaction just by meeting customer’s requirements fully
because these have to be met in any case. However falling short is certain to
create dissatisfaction.
Major
attributes of customer satisfaction can be summarized as:
v Product
quality
v Product
packaging
v Keeping
delivery commitments
v Price
v Responsiveness
and ability to resolve complaints and reject reports
v Overall
communication, accessibility and attitudes
The buying process
involves the following steps:
“The
fact that word of mouth sales are a big deal in this industry has also helped.
Industry players and market surveys reveal that 20-30 percent of sales are
through word of mouth”.
For the purpose of the
project has undergone through:
v Surveying
the relevant consumer base through exhaustive questionnaire.
v Understand
the elements underplaying in each segment
v Deducing
A analytical overview through different statistical method
COMPANY’S PROFILE
Maruti Udyog Limited
Maruti
Udyog Limited is the premier car company in India. Maruti Udyog Limited (MUL)
was established in Feb 1981. The company entered into collaboration with Suzuki
Motor Corporation of Japan to manufacture cars. Maruti is the highest volume
car manufacturer in Asia, outside Japan and Korea. Maruti Udyog Limited, the
largest Car selling company in India, has many unique Service advantages for
the customers. It has bagged the First Position in JD Power Customer
Satisfaction Index for the consecutive two years. The company has also ranked
highest in the India Sales Satisfaction Study.
Estilo
Maruti launched all new
Estilo. If you are wondering why I dropped Zen from this car's name then let me
explain. Estilo has got Wagon R's engine and chassis and Suzuki MR Wagon's
shape. Whatever remains is taken from Zen, well does anything remains actually?
Yes, Name! Name is taken from Zen, 'Zen Estilo'. In essence it’s stylish Wagon
R, Japan's MR Wagon, combination of the two or anything but Zen. It seems
Maruti wants to exploit Zen brand-image hence named this car after Zen.
Zen Estilo has the same
engine (1061cc, 64.8ps, 84Nm, 4-cylinder, 16-valve, MPFI F10D Petrol) under the
hood that is found in Maruti Wagon R. Absolutely nothing has been changed
except for the fact that this engine is much refined and is slightly better at
responsiveness and fuel economy. This simply translate into 'Zen Estilo is a
bit faster and more fuel economic than Wagon R'. Due to highly good
drivability, driving in city would be more fun with Zen Estilo. Electronic
Power Steering (not available in LX version) really helps in crowded traffic.
Owning and maintaining Zen Estilo won't be a problem, engine is proven reliable
and virtually maintenance-proof.
Wagon R Duo
At first glance the
Maruti WagonR Duo looks quite normal. Well, that is if you think the WagonR's
boxy looks are normal to start to start with. Frankly, for a car that has to
get around a city, I really don't care, because the Duo is all about LPG, and
the fact that it is first factory fitted LPG car in India. Factory-fitted means
one major plus, your warranties don't get voided because of the gas fitment.
There is no denying the
cars cost advantage, this is the cheapest Maruti vehicle to run, and that in
itself is a massive statement. The redesign of the car hasn't just meant a
fresh exterior look; it has also meant new interior - rotary controls on the
panel and a very neat looking display with an all new speedo.
The problem is that
despite the not insignificant cost savings, you save a rupee a kilometer on LPG
over Petrol, which even makes the extra Rs 24000 you have to pay for the car
seem worth it, the Duo just wheezes at times. And this is despite two important
facts, first LPG has more energy than CNG (that other gas) and because this is
a company designed car, Maruti engineers have really played around with the
engines tuning.
Swift
Competing with the other
cars of Maruti, Maruti Swift is gradually making its position in the world of
mid-sized family car. Maruti Swift has come up with the special technical
specifications of 16 valve 4-cylinder, 1300 cc engine generating power. Maruti
swift is equipped with various safety features and well advanced equipments. 3
assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3
position), console box (lower), cup holders (front 2, rear1), front door trim pockets,
green tinted glass window, halogen headlamps, headlamp leveling device, heater
and manual Air conditioning, OVRM (internally adjusted), rear fog lamps, wind
screen wiper 2 speed plus 1 speed intermittent, tailgate opener key type, trip
meter (digital display), sun visors (both sides), brake assist , child lock
(rear door), high mounted stop lamp, power steering, rear seat belts etc. are
the features available in this model. Apart from the features found in other
model, striking features of this model are black colored A & B pillars, 12v
accessory socket in center console, day and night rear view mirror, door ajar
warming lamp, driver's seatbelt warning lamp, tachometer, driver's seat belt
warning lamp, vanity mirrors (sun visor co-driver side), rear seat head
restraints, fabric accented door trims, central door locking (4 door), front
and rear view.
Hyundai Motor
Hyundai
Motor India Limited (HMIL) was established in 1996 and is a wholly owned
subsidiary of South Korean multinational, Hyundai Motor Company. HMIL is the
fastest growing and the second largest car manufacturer in India and presently
selling 30 variants of passenger cars in six segments. The Company has set up
more than 70 dealer workshops that are equipped with the latest technology,
machinery, and international quality press, body and paint shops, across the
country, thereby providing a one-stop shop for a Hyundai customer. Hyundai also
has a fleet of 78 emergency road service cars that can provide emergency
service to all its customers anytime, anywhere.
Hyundai Santro
In
the field of mid size car, Santro Xing is capturing the market very rapidly.
Its design, style, space and other special features has made it one of the
highest purchasable cars among any economy class.
It
has five variants:
Along
with the other features that are present in Santro XK (Non AC), other features
present in this model are air conditioner, day and night inside rear view
mirror, chrome1 radiator grille etc. Along with the features available in
Santro XK, added features in this model are 4 doors CLS, passenger side OVRM,
tinted glass, map pocket front door driver side, front door full size arm rest,
door trim with fabric insert, hydraulic power steering, power windows (front)
etc.
Getz
Hyundai
Motors launched small family car Getz at August 2004. Euro III emission norms
fulfilled Car, Getz powered by 1300 cc. engine. Only the petrol version of this
car was launched initially.
There are four variants found in this car:
This
model has highly advanced features like AC with 4 speed blower, ash tray w/o
illumination, center console w/ pen and jug holder, 60:40 rear seat split,
vanity mirror passenger side, rear defogger, height adjustable seat belts
(front), waist line molding, tilt steering, map pockets, front and rear power
windows, rear seat back inclination(4 position), digital clock, rear wiper and
washer, front for lamp, body color radiator grille, rear bumper reflectors,
rear mud guard etc. Few features to view comfort and safety in mind, this model
is being specially equipped with rear wiper and washer, rear defogger, alloy
wheels etc. This model has few important features like height adjustable front
seat belts, body colored radiator grille, rear bumper reflectors etc.
.
Tata Motors Limited
Tata
Motors Limited is India's largest automobile company, with revenues of Rs.
24,000 crores in 2007-08. Its name comes first in the category of commercial
vehicles and the second largest in the passenger vehicles, mid size car and
utility vehicle segments. The company is the world's fifth largest medium and
heavy commercial vehicle manufacturer. Over 3.5 million Tata vehicles is moving
on Indian roads, since 1954. Its manufacturing plant is located at Jamshedpur, Pune
and Lucknow.
Tata Indica V2
Having
attributes of three popular cars, Tata Indica is ruling the market. Making of
Tata Indica with the concept of main distinguishing features of three popular
cars i.e., with the overall structure of Maruti Zen, interior space like
ambassador and cost nearly like Maruti 800 was a challenging venture of Tata
Motors. Its fully foldable rear seat has made this car more accommodating for
extra luggage. For safe and secure driving and to give proper comfort,
side-impact beams, rigid monochrome frame and child safety locks are attached
to this car.
Different
Tata Indica models are:
Tata
Nano
With
its market catching looks and few striking features have set a trend for the
choosy buyers. Its power steering, central locking system, four power windows
have not only made this comfort driving car but also give assurance for the
safety. To mention more about convenience of driving, HVAC system provides good
cooling effect even in a sultry summer days. Door handles, body colored
bumpers, ORVM and wheel arch flair are few more advantages that the owner of
this car can easily avail. To assure safer driving along with the elegance and
appeal of the car, this model is equipped with body colored bumpers, the wheel
arch flairs, internally adjustable OVRM and central locking system. To avoid
any inconvenience in operating the window, front windows are power windows. To
avoid the scorching heat in a summer days, HVAC system of cooling can soothe
anybody inside the car
Chevrolet
Its
king like entry happened in India in 1928 with its National Series AB touring.
Reliability of this car was proved by its 171 cubic inches, 24.7hp four
cylinder engines. General Motors, parent company of Chevrolet, was the first in
setting up assembly plant in India. First office of Chevrolet was located at
Mumbai and its assembly plant was in Sewree.
Chevrolet Aveo
With
the assurance of safety and technologically advanced equipments, Chevrolet Aveo
provides complete statement of reliability and efficiency. Safety features like
tailor welded blanks, high- strength steel structure, B-pillar, height
adjustable safety belt anchors, rear child safety door locks, front safety belt
pretension etc really confirm the security of the passenger.
It
has four variants:-
It
is well equipped with 1.4L DOHC 94 PS, 5 Speed MT, chrome radiator grille, wide
185/60 R14 tyres, pullout type door handle, two tone beige interiors, power
steering and power window, central locking, rear defogger with timer, remote
trunk lid opener, engine service soon indicator etc. It is well equipped with
1.4L DOHC 94 PS, 5 Speed MT, chrome radiator grille, wide 185/60 R14 tyres,
pullout type door handle, two tone beige interiors, power steering and power
window, central locking, rear defogger with timer, remote trunk lid opener,
engine service soon indicator etc. Its main mentionable features along with the
other features which are associated with the rest of the models, are 1.6L DOHC
102 PS, 5 speed MT; double DIN MP3 system with 6 speakers; rear spoiler with
CHMSL; chrome coated exterior handles and trunk lid garnish; 14" alloy
wheels; electrically adjustable OVRM; wood finish on IP and door trim; car
alarm and key less entry system.
CHAPTER-2
Literature Review
Literature Review
Verma and Kaur (2006) Davos
India in its research on automotive industry (January 2006, www.ibef.org)
identified a key trend in passenger vehicle segment that with rising income levels and
availability of better financing options, customers are increasingly aspiring
for higher-end models. There has been a gradual shift from entry-level models
to higher-end models in each segment. Tata Nano is an entry-level car which has
reduced the cost of owning a car significantly as mentioned above. Many
aspirants have actually converted into the consumer class.
An increase in the number of working women
and the prevalence of nuclear double-income families, especially in urban
areas, are other trends shaping lifestyles. These changes are driving an
increased need for personal transport, especially in segments like working
women, young executives and teenagers. A large proportion of the Indian
population is relatively young - in the age group of 20-59 years. This is
expected to further boost the automotive domestic market as a younger
population has a higher consumption index. To incorporate these trends it is
necessary to include age and gender as few of the factors affecting the sales
of Nano.
Different states in India have different
development on the basis of infrastructure etc. Further the income levels and
the spending patterns of people vary state by state.
Rao and Verma(2006)
Investigated experimentally the influence of price, brand name and store name
on buyers’ perceptions of product quality. The Meta analysis suggests that for
consumer products, relationships between price and perceived quality and
between brand name and perceived quality are positive and statistically
significant. However the positive effect of store name on perceived quality is
small and not statistically significant.
Punj (2007) Evaluated model of consumer
information search behavior for new automobiles. The results supported the
hypothesis that there are at least two unique components of prior knowledge:
specific product knowledge and general product class knowledge. The former caused
less external search while later caused more external search. External search
was found to be negatively related to cost of search while positively related
to cost savings. Satisfaction was related to cost savings but not to external
search.
JD (2007) emphasized the
effect of prior brand perceptions on the search process. When consumers had
brand specific prior distribution s of utility, the existence of relative
uncertainty among brands was necessary for search to be useful. Thus, it was
explained why product class involvement or low search costs may not be
sufficient to induce large amounts of search activity and why there may be an
inverted U shaped relationship between search behavior for new automobiles,
using data collected contemporaneously with consumers actual decision process.
Ramakrishnan (2007) Reveals,
in his study, “Customer Retention: The Key to Business Performance”, that the
marketing management has relied on permutations and combinations of the
marketing mix elements (product, price, place and promotion to achieve market
dominance through enhanced market share by acquiring new customers. Aggressive
branding and promotions are the other tactics used by sellers adopting the
traditional market approach. But brands with highest market share are not
always the most profitable
Shyamala
Mathan Sankar (2008)
“Consumer Perception of Global vs. Local Brands”
This
chapter concludes the study by summarising the entire study and also by
highlighting the key findings of the study. The chapter then pursues to the
limitations of the study and presents the recommendations for future research.
The aim of the study was to understand consumer perception of global brands vs.
local brands in the Indian car industry. The car industry in India was
undertaken for the study due to the strong growth of the automobile sector in
India. The secondary objectives of the study highlighted the factors that affect
consumer preference for global brands; examined the effects of country of
origin on consumer perceptions of global brands and local brands; and studied
the effects of consumer ethnocentrism towards global brands. The study initially
accomplished the secondary objectives in order to accomplish the primary
objective. The literature review provided a critical analysis of the views and
insights of various researchers on the subject area and served as a source of
secondary data, which were collected through marketing journals and other
existing reports that were based on the topic. Furthermore, an overview of the
Indian car industry was presented in the study in order to facilitate the
reader to comprehend the study in an enhanced way. Since the aim of the study
was to understand consumers’ view of global brands vs.local brands, qualitative
research was preferred to quantitative research. In order tocreate a deep
understanding of consumers’ insights of global car brands against local.
Jakrapan et.al (2008) “A Comparative Study between Thai and UK Customers’
Perceptions”
Total
worldwide sales of premium luxury and entry luxury saloons and sports cars are
of the order of 1.5 million units a year (Scheele, 1995: 190). The major luxury
markets today are the USA, Germany, UK and Japan. The £21.1 billion UK new car
market competes with France and Italy, to be the second biggest in Europe
behind Germany (Harbour, 1997: 7,22). The new registration of luxury marques’
cars in 1997 in UK alone was 154,506 units (MAVEL, 1997: 59). In other markets,
especially in South East Asia there are, of course, significant sales of luxury
cars. However, these are limited to total volume either by the overall industry
size or by local market conditions and preferences. Accordingly, the luxury car
market overall is currently undertaking a social change with luxury brands
seeming less remote, less different, and less exclusive with the quality of
life improving. As a result, increasing competition between makes has
intensified the importance of brand identity. As product standards continue to
rise, the perceived image of a car make plays a key role in the buying
decision. The premium marques such as BMW, Lexus, and Mercedes-Benz must
develop attributes and values that reflect changing social values which
influence buyers emotionally, in order to maintain their positions in different
regions of the global market.
Malhotra(2008)
Proposed an alternative approach for measuring consumer preferences by using
limited information. The approach differed from the popular approaches in which
once the non-preferred choice alternatives were identified; no further
information on them was obtained. The author reported an empirical
investigation and two Monte Carlo studies comparing the performances of the
proposed approach with that of metric conjoint analysis, which were a
corresponding approach based on full information and an OLS approach that used
information on the preferred alternatives only.
Surinder
Pal Singh(2008) “Consumer
Behavior and Needs Expression”
Motivation
and personality could be linked - a person with a high degree of confidence may
be assertive. There are a number of theories on personality. Freudian theory
assumes that the behaviour of individuals would be based on unconscious needs
and drives. According to this theory, the human personality consists of three
parts - id, ego and super ego. The id is the component which consists of
impulses and primitive instincts which urge the individual to move towards
immediate gratification. A number of product categories which may not have well
defined functional attributes and which are oriented towards sensual pleasure
formulate communication which may appeal to the id part of the personality.
Mohit
Sewak
,( 2009) “The
Changing Consumer Perception”
India is poised to become a major
Auto hub in the near future. Indian car industry is changing rapidly, so is the
mindset of Indian Consumers. We, at the Great Lakes Institute of Management,
took an initiative to find out that whether the
changing ground realities have also changed the India Auto Consumer’s
mindset vis-a-vis their perception of the abilities of various Indian and foreign
Auto manufacture to deliver the much sought after attributes in a car.
We deliberately, instead of taking individual cars, took
BRANDS (as we wanted to analyse the brand perception mapping), and let the
consumer decide which brand will he buy (Note:
It is important to note that in some cases, though a consumer may covet a brand
highly e.g. BMW, but might not intend buying it due to many reasons. So we
specifically framed question to analyse the purchase intention), and the
attributes for which he will go for that particular brand.
It was surprising to find the changing perception of the
consumer towards TATA, especially after it being the proud owner of Jaguar and
LR on one hand, and the maker of the worlds smallest, and the most economical
economical (& affordable) car Nano on the other.
.
CHAPTER-3
RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY
____________________________________
The
research objectives for the project undertaken can be defined as follows:
v To
know customer perception towards the
small segment cars.
v To
judge the satisfaction level of small segment cars owners of different company.
v To
identify the factors which influence purchase decision of customer?
SCOPE OF THE STUDY
___________________________________________________________________
The Study aims at making contributions to the consumer behavior concerned
with small cars. It will be beneficial for both students and teachers of
consumer behavior as it contemplates how the knowledge of consumer behavior can
be applied in research work.
The study will have great implications from marketer’s point of view as
it will help them in strategy formulation. The knowledge of media factors,
considered important by the consumer, would be helpful to the marketer for
adopting more efficient marketing strategies.
Determining the brand preference can be
helpful to both manufactures and dealers of motorcycles enabling them to meet
the requirements of the market more effectively and efficiently.
RESEARCH METHODOLOGY
_______________________________________________________________
In this chapter, the
research methodology used in the conduct of the study has been discussed The
aim of the study is to explore the “Customer Perception towards Small segment cars”. The study tries to
cover all the aspects of small car purchase behavior and consumer preference.
It stars from general introduction highlighting the objectives limitations. It
moves through a systematic methodology to gather arrange and analyze data
RESEARCH
DESIGN
A scientifically carried
out research project has a definite framework for data collection. This
framework constitutes the research design. The research design for the present
study is descriptive as it matches well with the objectives of the study.
UNIVERSE
OF THE STUDY
The universe of the
study includes the persons in jalandhar city who owned small cars.
SAMPLE
AND SAMPLING DESIGN
Sample will be collected in single stage. In this project, non-probability convenience sample is
used.
Technique
of sampling
Simple random sampling
technique has been used to select the sample. A
simple random sample is a group
of subjects (a sample)
chosen from a larger group (a population).
Each subject from the population is chosen randomly
and entirely by chance, such that each subject has the same probability
of being chosen at any stage during the sampling process. This process and
technique is known as Simple Random
Sampling, and should not be confused with Random
Sampling.
Hypothesis:
v Alternative hypothesis:
There is significant difference between customer perception preferences towards
small cars.
v Null hypothesis: There is no significant difference between
customer perception preferences towards small cars.
v Sample
size
v The sample size is 300
DATA COLLECTION
For the purpose of
study, both primary and secondary data were required. Primary data was collected
from the Small car owners using a questionnaire which was devised to be brief,
simple and replies. At the same time it was structured to cross check the
respondents’ replies in order to get relevant information. The questions were
dichotomous, multiple choice or open ended type. It also consisted of likert
type statements to know there attitude towards various attributes. 5 points
scale was used. For classification of
attributes are Highly Satisfied (H.S), Satisfied (S), Neutral (N), Dissatisfied
(D), and Highly Dissatisfied (H.D). Secondary data was collected from various
journals /magazines, websites and dealers regarding the market performance of
these bikes.
QUESTIONNAIRE
DESIGNING AND IT’S SUBSEQUENT TESTING.
For the purpose of
collecting relevant research data, structured and non-disguised type
questionnaire was used. A pilot survey was conducted to determine the
suitability of the questionnaire and modification were incorporated before
making the final survey
Techniques used for analyzing the
collected data were:
1) Tabulation 2) Percentages 3) Pie Diagrams 4) Bar – Graphs 5) Factor analysis
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
Q1 No
of respondents are males and females?
Interpretation :- The
majority of the respondents are males. Females are also craze of small cars
because of their convenience
Q2. Education
of the respondants?
|
Graduation
|
34.00%
|
|
Intermediate
|
26.00%
|
|
Matric
|
20%
|
|
Above Graduation
|
20%
|
Interpretation :-The majority of the
respondents educated and they like to buy because of fuel efficiency products
design as well as value for the money.
3.
Monthly income?
We
surveyed around 300 people who belonged to various monthly family income
groups. The survey of 4 income groups was done. The four income groups were:
Ø Less than 50000
Ø 50000 - 1,00,000
Ø 1,00,001 – 2,00,000
Ø More than 2,00,001
Interpretation:
Above
graphs exhibits the income bracket of the sample size, as evident the majority
of the sample is in the income bracket of < 50,000 a month income. Though
none of the bracket is highly skewed, this enables the study to be wide and not
dependent on a set income class, which was a fortunately desirable result of
simple random sampling.
4.
Do you own a car?
Interpretation:-
majority of respondent are the
owner of car.
Q5: Which version of car would you like to purchase?
|
Petrol
|
44.70%
|
|
Diesel
|
50.50%
|
|
Gas
|
4.70%
|
|
Other
|
0%
|
Interpretation:
Peoples
are clearly looking for Diesel cars in future rather than petrol, few are also
looking for Gas version.
Q6. Why did you bought your
present car?
Interpretation:
As per the analysis shows, increase in disposable
income seems to be the most important reason for buying a car. This trend is
reflected in the growth of the Per capita Disposable income and consequently
the growth of the Indian automobile industry especially in the A, B and C
segment cars. Similarly, the growing family needs like working partners,
increasing family size, status, etc. add to the motives of buying a car.
Q7. Please rate your existing car in terms of
understated Interior Design features on a scale of 1 to 5 where
Interpretation:
Interiors
play a very important role in deciding the sale of a car. More plush,
comfortable and exotic the interiors are more are the chances of its being
popular among the customers. For this reason manufacturers spend billions of
dollars every year on R&D to continuously improve the interiors of their
cars. Seats, leg room, dash board, armrests etc are few of the options which
count for the interiors. As the analysis show Getz scores substantially high
w.r.t. its counterparts on the account of music system installed. Similarly,
Indica V2 races far ahead as far as leg room is concerned. However, Wagon R
fares badly on this front. Overall, almost all cars get a mixed response in
this segment as far as the interiors are concerned.
Q8. Please rate your existing
car in terms of understated Safety features on a scale of 1 to 5
Interpretation:
As
can be noted Maruti Swift and Indica V2 fight neck to neck on almost every
front, with Indica marginally better in features like crossbars under the
dashboard and Anti Brake systems. Most of the cars in this segment fare
relatively similar and very close to each other on most of the fronts.
Q9. You decided to buy a
car brand because of (rate best 3 factors from 1 to 3 in order of your
preference)
Interpretation:
Indian
market is still the hard nut to crack for most of the automobile manufacturers.
Though the Indian car industry is among the fastest growing car markets of the
world still the Indian psyche is too complex for the manufacturers to understand.
The most important reason for buying a car when it comes to A,B and C segment
cars seems to be ‘value for money’. 32% of the respondents suggested that
affordable prices are the most important factor while purchasing a car. This is
the reason for sticking to a particular segment till the next substantial rise
in the personal disposable income. This reason is followed by ‘Value for money’
where the customers look for the best product, best services and best repute
all bundled in one with the best deal they can strike. This explains the reason
for the stagnant or sudden growth in sale of A ,B and C segment cars just
before budget and near occasions.
10. Please rate your existing car
in terms of following parameters
Interpretation:
The
customer choice of the car highly depends upon the performance and maintenance
costs of the car. This is the reason why this class of parameter was chosen for
this study. And the results show that Maruti’s Wagon R fares the best car in
its segment as most fuel efficient car of all. Similarly, Wagon R fares the
best on the terms like mileage but it lags behind Hyundai’s Santro on pick up
front. So this segment shows a mixed bag of response for the Fuel efficiency
and mileage parameter. Indica V2 performs consistently on all the parameters
and Getz fares really well on pick up whereas it fares badly on fuel
consumption. Considered this condition for Getz it should be seen as a red
signal for the manufacturers so that Getz does not end up being like Fiat’s
Palio famous as a car for ‘drinking petrol.
Delear Satisfaction
Parameter:
Q1. Please rate your
Dealer on the understated parameters on the scale of 1 to 5 where
Interpretation:
While
buying a car, dealers ‘choice play a very important role in deciding the
company and model’s choice. So dealers act as influencers on the complete
buying behavior of the prospective customers. Among all the listed factors
Maruti fares the best among all its counter parts in terms of dealer density
which is quite obvious. Also, the cost of service provided by Maruti dealers is
the lowest followed by Tata Motors. Similarly, for A , B and C segment cars
Maruti emerges out as the clear winner among the four car companies studied all
thanks to the vast, extensive and well managed dealer system.
Q2.
How do you rate the brand image of your car?
Interpretation:
As
per the analysis, Santro is the car whose brand image is most preferred in the
market. This is because of the reason, that it’s from the house of Hyundai a
South Korean company known for its overall image. On the contrary Maruti Estilo
and Aveo share the same platform on the brand image. This can be attributed to
the fact that both these cars are relatively new on the block and market takes
time to imbibe and give the brand an image. This is established by the fact
that Maruti’s Wagon R and Swift are exactly the same as far as the image is
concerned.
Interpretation:
As
the analysis reveals GM’s Optra fares as the Best Car as far as customers’
perception is concerned about the brand image of the car in the C segment. This
is because of the fact that GM itself commands an amazing brand image among its
customers. Accent and Verna both Hyundai cars share the same position.
Q3.
Will you recommend your car to your friends?
Interpretation:
It
seems logical that satisfied customers will someday become loyal customers, in
other words there is a positive correlation between customer satisfaction
scores and customer buying behavior. If a customer rates the car very high in
satisfying his or her needs, the car manufacturer should expect more referrals
and this is reflected in the analysis that 73% customers say that they will
refer their car to their friends even if they move to other segment or other
brand.
Q4.
Will you buy your new car in the?
Interpretation:
The
analysis shows that most people when moving to upper segment will prefer a
different manufacturer. And the next striking finding is that the customers
will prefer both same and different manufacturers in the A, B segment cars and
there is not much difference in the C segment also. This behavior is complex to
understand as this are the customers who have given whopping response for
recommending their car to their friends. It’s the reason why brand perception
is so difficult to understand.
Q5: Which factor makes you to buy a small
car?
|
Socio-economic
factor
|
23.50%
|
|
Family
influence
|
29.40%
|
|
Attitude
|
24.70%
|
|
Brand
image
|
22.30%
|
|
Descriptive Statistics
|
|
|
Mean
|
Std. Deviation
|
Analysis N
|
|
Social
|
2.5833
|
1.47076
|
300
|
|
Family
|
3.7083
|
.89819
|
300
|
|
attitude
|
3.1667
|
1.22619
|
300
|
|
Brand
|
3.1667
|
1.56196
|
300
|
|
Communalities
|
|
|
Initial
|
Extraction
|
|
social
|
1.000
|
.467
|
|
family
|
1.000
|
.723
|
|
attitude
|
1.000
|
.743
|
|
brand
|
1.000
|
.726
|
|
Extraction
Method: Principal Component Analysis.
|
|
Component
|
Initial
Eigenvalues
|
Extraction
Sums of Squared Loadings
|
|
Total
|
% of
Variance
|
Cumulative
%
|
Total
|
% of
Variance
|
Cumulative
%
|
|
1
|
1.432
|
35.799
|
35.799
|
1.432
|
35.799
|
35.799
|
|
2
|
1.227
|
30.682
|
66.481
|
1.227
|
30.682
|
66.481
|
|
3
|
.893
|
22.333
|
88.815
|
|
|
|
|
4
|
.447
|
11.185
|
100.000
|
|
|
|
|
Extraction Method: Principal Component
Analysis.
|
|
|
|
|
Component
Matrixa
|
|
|
Component
|
|
|
1
|
2
|
|
social
|
.458
|
.508
|
|
family
|
.770
|
-.360
|
|
attitude
|
-.661
|
-.553
|
|
brand
|
-.439
|
.730
|
|
Extraction
Method: Principal Component Analysis.
|
|
a. 2 components extracted.
|
|
Rotated Component Matrixa
|
|
|
Component
|
|
|
1
|
2
|
|
social
|
.032
|
.683
|
|
family
|
-.801
|
.286
|
|
attitude
|
.080
|
-.858
|
|
brand
|
.826
|
.210
|
|
Extraction
Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
|
|
a.
Rotation converged in 3 iterations.
|
Interpretation : Family influence is the main factor while purchasing the car. 24.70% people say that their attitude
makes them to purchase the small car. Least respond given to Brand image.
Q4.Following attributions according to your preference?
|
Design
|
4
|
|
Maintenance
|
8
|
|
Safety
|
6
|
|
Mileage
|
7
|
|
Price
|
5
|
|
Comfort
|
1
|
|
Technology
|
3
|
|
Looks
|
2
|
Interpretation:
Small is most preferred following by
looks, technology, power, safety and price also plays a major role in purchase
decision. Mileage and maintenance is not much important when you talk about
small.
Q5: Technically which features you
considers the most before buying?
Table 4
|
Power
|
25.80%
|
|
Durability
|
17.64%
|
|
Efficiency
|
31.76%
|
|
Safety
|
24.70%
|
Q5:
Which sales promotional activity/advertisement media influences you the most?
|
Bill Boards
|
20%
|
|
Newspapers
|
17.60%
|
|
TV / Radio
|
30.50%
|
|
Trade shows
|
12.90%
|
|
Internet
|
18.82%
|
|
Descriptive Statistics
|
|
|
Mean
|
Std. Deviation
|
Analysis N
|
|
advertisement
|
2.5600
|
1.45910
|
300
|
|
newspaper
|
3.6400
|
.94242
|
300
|
|
schemes
|
3.2000
|
1.21218
|
300
|
|
Radio
|
3.1600
|
1.53011
|
300
|
|
Tv
|
2.0000
|
.80812
|
300
|
|
Trade
|
1.8000
|
.94761
|
300
|
|
Correlation Matrix
|
|
|
|
advertisement
|
newspaper
|
schemes
|
radio
|
tv
|
trade
|
|
Correlation
|
advertisement
|
1.000
|
.031
|
-.272
|
-.041
|
.017
|
-.213
|
|
newspaper
|
.031
|
1.000
|
-.311
|
-.299
|
-.080
|
.009
|
|
schemes
|
-.272
|
-.311
|
1.000
|
-.128
|
.000
|
-.071
|
|
radio
|
-.041
|
-.299
|
-.128
|
1.000
|
-.033
|
.051
|
|
tv
|
.017
|
-.080
|
.000
|
-.033
|
1.000
|
.187
|
|
trade
|
-.213
|
.009
|
-.071
|
.051
|
.187
|
1.000
|
|
Communalities
|
|
|
Initial
|
Extraction
|
|
advertisement
|
1.000
|
.797
|
|
newspaper
|
1.000
|
.804
|
|
schemes
|
1.000
|
.835
|
|
Radio
|
1.000
|
.856
|
|
Tv
|
1.000
|
.867
|
|
Trade
|
1.000
|
.749
|
|
Extraction
Method: Principal Component Analysis.
|
|
Component Matrixa
|
|
|
Component
|
|
|
1
|
2
|
3
|
4
|
|
advertisement
|
-.564
|
-.336
|
.360
|
.486
|
|
newspaper
|
-.712
|
.360
|
-.324
|
-.249
|
|
schemes
|
.667
|
-.235
|
-.545
|
.193
|
|
Radio
|
.334
|
-.180
|
.771
|
-.343
|
|
Tv
|
.174
|
.522
|
.203
|
.724
|
|
Trade
|
.244
|
.790
|
.180
|
-.179
|
|
Extraction
Method: Principal Component Analysis.
|
|
a. 4
components extracted.
|
|
|
|
Rotated Component Matrixa
|
|
|
Component
|
|
|
1
|
2
|
3
|
4
|
|
advertisement
|
.358
|
.020
|
-.790
|
.212
|
|
newspaper
|
.548
|
-.669
|
.122
|
-.202
|
|
schemes
|
-.906
|
-.075
|
.090
|
-.013
|
|
Radio
|
.181
|
.896
|
.096
|
-.110
|
|
Tv
|
-.032
|
-.028
|
.043
|
.929
|
|
Trade
|
.235
|
.073
|
.745
|
.365
|
|
Extraction
Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
|
|
a.
Rotation converged in 7 iterations.
|
|
|
Component Transformation Matrix
|
|
Component
|
1
|
2
|
3
|
4
|
|
1
|
-.737
|
.494
|
.435
|
.156
|
|
2
|
.347
|
-.283
|
.719
|
.532
|
|
3
|
.518
|
.803
|
-.130
|
.266
|
|
4
|
-.263
|
-.177
|
-.526
|
.789
|
|
Extraction
Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
|
Interpretation:
People are
very much attracted by the TV / Radio advertisement media. Internet comes on
second place and Newspaper is all most equal to Internet in influencing the
customers. Trade shows has least share in influence the customers.
CHAPTER-5
CONCLUSION AND
LIMITATIONS &RECCOMENDATIONS
CONCLUSION
Maruti is the most popular brand of small cars in
Jalandhar City. It holds the largest share amongst the small car owners of
Jalandhar followed by Hyundai and Ford. being economical and easy to maintain
provides maximum satisfaction to its customers.
Family
has a great impact on the purchase of a car and the family influence acts as
the strongest influencing factor for the purchase.
The customers would prefer to buy Maruti and
Hyundai after that which provides them
maximum value for their money, skoda and chervolet are the least preferred
brands because these use good technology .
Most
of the people say that sometimes they are influenced by advertisements.
TV
is the most effective advertisement media for sales promotion. Peoples are not
influenced by brand ambassador associated with particular small brand. Efficiency and power, safety is the key
factors taken into consideration by the customer while purchasing a car. The
people are like replace their car within 2-5 years from the purchase. Most
peoples are satisfied with their car.
Peoples are preferred to buy diesel car other than
petrol and Gas. Mostly the small car buyers are Businessman, Doctors, and
Engineers etc
The income of Buyers of small car varies between 3-4
lacs/annum
Many other features are also recommended by the
respondents which they want in their small car.
LIMITATIONS
______________________________________
Due to lack of time and
financial resources, area covered was very small. The present study was based
on the data from Jalandhar
City therefore its
results may not be applicable to other areas.
The small size taken
was small and may not be sufficient to predict the result with 100% accuracy
and hence findings can not be generalized.
Consumers were some
time unwilling and hesitated in replying to answer.
The accuracy of the
results was also limited to reliability of methods of investigations,
measurement and analysis of the data.
RECOMMENDATIONS
· The customer wants high technology in
cars companies need to provide good technology in their cars.
· The customer emphasize on the design of
the cars if companies provide good design in their cars then there is high
potential to increase the sale of the car.
· The brand ambassador are unable to influence the purchase behavior
of the customer company should focus on network marketing through customer
relation.
· Companies should launch small cars with
wider space because much % of respondents
Buy car for their family
CHAPTER-6
REFERENCE
References:
Ø Verma
and Kaur (2006), ‘Effects of brand awareness on choice for a common repeat
purchase product’, Journal of Consumer
Research, Vol.17, No.2, pp.141-148.
Ø Rao
and Verma (2006). The hidden
truth about your cars’, BBC Top Gear, May 1998 (56).
Ø
Punj (2007), ‘Personality
and Consumer Behavior: A Review’, Journal
of Marketing Research, November, Pp.409-418.
Ø JD
(2007), ‘Consideration sets of size one: An empirical investigation of
automobile purchases’, International
Journal of Research in Marketing, Vol.12, pp.55-66.
Ø Ramkrishnan
(2007) Motor Industry and Research Association ,The Emerging Asian Auto Markets 1996, UK: Hobbs the Printers,
pp.325-333.
Ø
Malhotra H. (2008), ‘On
problem perception, dissatisfaction and brand loyalty’, Journal of Economic Psychology, Vol.9, No.3, pp.387-397.
Ø
Ø Jakaparan,
P.S., Kannan, P.K., Chandrasekharan, R. & Wright, G. P. (2008), ‘Estimating
Loyalty and Switching with An Application to the Automobile Market’, Journal of Management Science,
Vol.38, No.10, pp.1371-1393.
Ø Shyamala.
Sankar (2008), The Psychology of
Consumer Behaviour. New Jersey: Prentice-Hall.
Ø Sewak
M. (2009), Winning Tomorrow’s
Customers: Future directions for car retailing and servicing in the India.
International Car Distribution Programme. Vol.8, No.2, pp.132-157.
Links:
Books:
Ø Kotler, P. (2008), Marketing Management, 12th
Ed. New Delhi: Pearson Publishers Ltd., pp. 270-310
Ø Kumar,
G. B. (2009) consumer perception towards various small cars. Harvard Business
Review Marketing Magazine, Vol 50, No 13,
pp. 60-61.
ANNXURE
Annexure
Questionnaire
For
Customers:
1.
Name:___________________________
2.
Age:______
3. INCOME………………
(A)
<15000 [ ] (B) 15k – 25k [ ] (C) 25k-35k [ ]
(D)
>35 k [ ]
(E) Decline to answer [ ]
4. What do you want from
a car?
(A)
Stylish [ ]
(B) Enough space [ ] (C) Fuel- Efficient [
]
(D)
Good resale value [ ] (E) Easily accessible service station
[ ]
Rank them 1-5
5. How much you can
afford?
(A)
1 Lakh [ ]
(B) 1 Lakh – 2.5 Lakh [ ] (C) 2.5 – 3.5 Lakh [
] (D) > 3.5 Lakh [ ]
6. Which fuel car you prefer?
(A)
Petrol [ ]
(B) Diesel [
]
7. Why you bought your
present car? Please rank from the highest order of preference
1.
Increase
in disposable income [ ] 2)Better safety at roads [
]
3) Family needs [
] 4) Increase in family size [
]
5) Suits your lifestyle
and personality [ ]
8. You decided to buy
small cars because of (rate best 3 factors from 1 to 3 in order of your
preference)
1) Affordable price [
] 2) Technical superiority over
competition [ ]
3) Comfort [
] 4) Manufacturer’s
image [ ] 5) Value for money [
]
6) Safety [
] 7) After sale
services [ ]
Product
Satisfaction Level
1. Please rate your existing car in terms of
understated Interior Design features on a scale of 1 to 5 where
1) Highly
Dissatisfied [ ]
2) Dissatisfied [ ]
3) Neutral [ ]
4)
Satisfied [ ]
5) Highly Satisfied [ ]
Interior
Type
|
1
|
2
|
3
|
4
|
5
|
|
Seats
design
|
|
|
|
|
|
|
Leg
Room
|
|
|
|
|
|
|
Dash
Board
|
|
|
|
|
|
|
Interior
Colour
|
|
|
|
|
|
|
Music
System
|
|
|
|
|
|
|
Adjustable
Front seat Headrest
|
|
|
|
|
|
2. Please rate your
existing car in terms of understated Safety features on a scale of 1 to 5
|
Safety
Parameters
|
1
|
2
|
3
|
4
|
5
|
|
Crossbar
under Dashboard
|
|
|
|
|
|
|
Air
Bags
|
|
|
|
|
|
|
Anti
Lock Breaking System
|
|
|
|
|
|
|
Aerodynamic
Shape
|
|
|
|
|
|
|
Intensity
of front lights
|
|
|
|
|
|
3. Please rate your
existing car in terms of following parameters
|
Parameter
|
1
|
2
|
3
|
4
|
5
|
|
Fuel Consumption
|
|
|
|
|
|
|
Mileage ( Km/ltr)
|
|
|
|
|
|
|
Pick Up
|
|
|
|
|
|
|
Stability at higher
speed
|
|
|
|
|
|
|
Top speed
|
|
|
|
|
|
Dealer
Service Satisfaction Level
Q1. Please rate your Dealer
on the understated parameters on the scale of 1 to 5 where
1 Highly Satisfied
2
Satisfied
3 Neutral
4
Dissatisfied
5
Highly Dissatisfied
|
1
|
2
|
3
|
4
|
5
|
|
Distance ( Proximity)
|
|
|
|
|
|
|
Advertisements
(Promotions)
|
|
|
|
|
|
|
Technical Facilities
|
|
|
|
|
|
|
Cost of Service
|
|
|
|
|
|
|
Availability of Spares
|
|
|
|
|
|
|
Information Provided
|
|
|
|
|
|
|
Service Time
|
|
|
|
|
|
|
Charges
|
|
|
|
|
|
|
Staff
|
|
|
|
|
|
|
Car Handling (
Delivery & service)
|
|
|
|
|
|
|
Assured Customer
Transactions
|
|
|
|
|
|
|
Ambience of Service
Center
|
|
|
|
|
|
|
Finance ( Credit)
Schemes
|
|
|
|
|
|
Q2. How do you rate the brand image of your car?
Very
Low
Very High
Q3. Will you recommend your car to your friends?
1)
Yes
2) No
Q4.
If yes, will you buy your new car in the
1)
Same segment, same manufacturer 2) Same segment,
different manufacturer
3)
Upper segment, same manufacturer 4) Upper segment,
different manufacturer
