Car Purchase - Srishti Srivastava and Vayam Sood

7/29/2019 Car Purchase - Srishti Srivastava and Vayam Sood

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Marketing Research Project

A study of purchase criteria and relevance of consumerperception in the Indian Car Market

Srishti Srivastava - 50171

Vayam Sood - 50187

BBS II E


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ACKNOWLEDGEMENT

We would like to convey our heartfelt thanks to our teacher, Dr Preeti Rajpal

Singh, whose encouragement; guidance and support from the initial to thefinal level enabled us to develop an understanding of the subject and

successful completion of our project.

We would like to express our gratitude towards the members of Shaheed

Sukhdev College of Business Studies for their kind co-operation and

encouragement which helped us in completion of this project.

Lastly, yet importantly, we offer our regards and blessings to all those who

supported us in any respect during the completion of the project.

Srishti Srivastava

Vayam Sood


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TABLE OF CONTENTS

EXECUTIVE SUMMARY _____________________________________________________________ 4

INDIAN AUTO INDUSTRY ____________________________________________________________ 5

OBJECTIVE _______________________________________________________________________ 6

METHODOLOGY __________________________________________________________________ 7

RESEARCH DESIGN ________________________________________________________________________ 7

DATA COLLECTION ________________________________________________________________________ 7

SAMPLING PLAN __________________________________________________________________________ 7

DATA ANALYSIS TECHNIQUE ________________________________________________________________ 7

CARS PROFILE____________________________________________________________________ 8

CAR MODELS _____________________________________________________________________________ 8

CAR MODELS _____________________________________________________________________________ 9

FINDINGS _______________________________________________________________________ 11

RESPONDENT PROFILE ____________________________________________________________________ 11

OWNERSHIP OF CAR(S) ____________________________________________________________________ 13

STATEMENT AGREEMENT OR DISAGREEMENT _______________________________________________ 17

CHI SQUARE ANALYSIS ____________________________________________________________ 21

Analysis 1: Brand Value v/s Age _____________________________________________________________ 21

Analysis 2: Price v/s Income ________________________________________________________________ 22

Analysis 3: Promotional Scheme v/s Profession ________________________________________________ 23

Analysis 4: Mileage v/s Gender _____________________________________________________________ 24

Analysis 5: Comfort v/s Age ________________________________________________________________ 25

Analysis 6: Safety Features v/s Age __________________________________________________________ 26

Analysis 7: Design v/s Gender ______________________________________________________________ 27

Analysis 8: Dealer Proximity v/s Profession ____________________________________________________ 28

Analysis 9: Finance Scheme v/s Income _______________________________________________________ 29

Analysis 10: Accessories v/s Age ____________________________________________________________ 30

Analysis 11: Maintenance Cost v/s Profession _________________________________________________ 31

Analysis 12: Resale Value v/s Income ________________________________________________________ 32

LIMITATIONS ____________________________________________________________________ 33

CONCLUSION ____________________________________________________________________ 34

BIBLIOGRAPHY __________________________________________________________________ 35

ANNEXURE _____________________________________________________________________ 36


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EXECUTIVE SUMMARY

The automobile industry today is the most lucrative industry. Due to the

increase in disposable income in both rural and urban sector and easy financebeing provided by all the financial institutes, the passenger car sales have

increased over the years. Passenger Vehicles segment grew at 4.66 % during

April-March 2012 over same period last year. For the first time in history, car

sales crossed two million in 2011-12. However, competition is heating up in the

sector with a host of new players coming in and other like Porsche, Bentley,

Audi, and BMW penetrating into the Indian markets.

The development in automobile sector overhauls the perception of potentialcar buyers, with their increased disposable income, enormous information

search, and availability of lucrative financial options. People today are more

pragmatic before acquiring the automobile. For most people, purchasing a car

is one of the most important and expensive investment, next to purchase of a

house.

This report attempts to answer some of the questions regarding buying

behaviour of customers by conducting the market research. The buyingbehaviour of the customers has been studied by knowing their perceptions

about the cars in the market and about the possible entrants in the market.

The questionnaires were administered through an online survey as well as

personal in-home interviews. Other approaches used for analysis were cross-

tabs and chi-square analysis. These statistical tools were used with the help of

MS-Excel and SPSS. The analysis from these tools helped gather useful insights

upon the type of respondents, attributes the consumers consider while makingthe purchase decision and how the consumers perceive the various brands.

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.


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INDIAN AUTO INDUSTRY

India is emerging as one of the worlds fastest growing passenger car markets.

The Indian passenger vehicle market, which constitutes around 80% ofautomobile sales, has immense growth potential as Society of Indian

Automobile Manufacturers (SIAM) has projected a growth of 10-12 per cent

for 2012-13.

Rising per capita income and the changing demographic distribution are

conducive for growth. India has the highest proportion of population below 35

years (70% potential buyers). The total automobile industry in India is 10

million vehicles per annum. Passenger cars contribute to approximately 16% of

the total automobile sales. The total automobile sales have been witnessinghealthy double-digit growth, however, this year it posted a slow growth of 7%.

The passenger car industry in India is very competitive with almost every

prominent global manufacturer being present in the country. There are 18

passenger vehicle manufacturers as listed below:

Maruti Suzuki Hyundai

Tata Motors Fiat

Chevrolet Ford

Honda Toyota

Mahindra & Mahindra BMW

Skoda Mercedes Benz

Hindustan Motors Nissan

Volkswagen Audi

Volvo Porsche

Maruti Suzuki is the leading passenger car manufacturer in India with a market

share consistently above 50% over the last few years followed by Hyundai and

Tata Motors.


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OBJECTIVE

PRIMARY OBJECTIVE

The objective is to analyse the car buying criteria of individuals based on

the demographic differences such as age group, gender, income and

profession.

SECONDARY OBJECTIVES

To ascertain various options of cars available in the Indian market.

To determine the various factors affecting the purchase of cars. To determine the brand preferences for cars among different

demographic factors.

To determine the positioning of various brands in the minds of

consumers.

To determine the relative importance of various functionalities attached

to numerous features and specifications of cars.

To know the overall perception of customers about cars.


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METHODOLOGY

RESEARCH DESIGN

A research design is a logical and systematic plan prepared for directing a

research study. It is the program that guides the investigator in the process of

collecting, analysing and interpreting observations. Here descriptive research

design is used for analysing buying motive of cars. It is very simple and more

specific than exploratory study. The descriptive study is a fact finding

investigation with adequate interpretation. It reveals potential relationships

between variables and also setting the stage for further investigation later.

DATA COLLECTION

Primary data are collected on original information gathered for a specific

purpose and secondary data is collected from already existing sources

Primary Data The study has used survey method for collecting the

primary data by conducting online survey as well as personal in-house

interviews.

Secondary Data Secondary data for the study were collected from the

websites of different brands to know their unique selling propositions,

SIAM, technical and subject based books, journals and magazines

SAMPLING PLAN

The samples for survey were being taken on the following basis.

Sample Frame: People residing or working in Delhi

Sample Unit: Students, working professionals and business persons

Sample Size: 207 respondents

Time Frame: 10-15 Days. Sampling Method: Simple random sampling (SRS)

DATA ANALYSIS TECHNIQUE

The data collected from the descriptive research provided us with the different

factors that a consumer looks for while purchasing a car. To evaluate whether

the preferences are different for various demographical factors, we have used

chi-square analysis with crosstab. These various techniques would be carried

out the help of MS-Excel and SPSS.


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CARS PROFILE

CAR MODELS

The passenger car industry in India offers the following car models:

1. Hatchback Cars

Hatchback car is a small passenger car

consisting of a full-height door at the rear

that also includes a window and used from

behind to access the cargo and luggage

space. These kinds of cars have two rows of

seats. In India the hatchback is the most competitive car segment.

2. Sedan Cars

Sedan is a car model with passenger carrying

capacity of four or more persons having two

rows of seats and two or four doors with a

separate trunk or boot at the rear side.

Sedan cars, carrying high price tag with

them, are featured with host of luxury

features like high-end entertainment system, integrated steering wheel,high class leather work, classy looks, contemporary and fully efficient

security features.

3. Sports Utility Vehicle (SUV)

Sports Utility Vehicle is a vehicle that

combines loading capability of a pickup truck

and has passenger carrying space that is of a

mini-van. These types of vehicles are famous

for their sturdy looks, strong on road

presence and carry much powerful engine

with high torque. SUVs are designed to run in any kind of terrain.

4. Multi Utility Vehicle (MUV)

The Multi Utility Vehicle is a kind of

automobile which is taller than a sedan and

hatchback and provides larger interior space

through their removable seats.


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CAR MODELS

1. Maruti Udyog

Synonymous with cars in India, Maruti Udyog Limited is the ranked as a top

passenger car manufacturing company in the country. The company since its

inception in 1981 has changed the face of the Indian four wheeler scenario.

With the introduction of the Maruti 800, Maruti Udyog became the most

trusted automobile company in India. Some of Maruti's most popular cars are:

Alto Omni Gypsy

A-Star Wagon R Swift

2. Ford India

Established in 1995, Ford India is a wholly owned subsidiary of Ford Motor

Company, a global automotive industry leader. Ford India manufactures and

distributes automobiles and engines. The company's popular models include:

Endeavour Fiesta Figo

3. Tata Motors

The name that leads the list of major car manufacturers in India is Tata Motors.

Originally called TELCO (TATA Engineering and Locomotive Company), Tata

Motors Limited is the largest automobile manufacturing company in India.

Apart from being the top heavy vehicle manufactures the company is also the

third largest passenger car manufacturer in India. Some of the well-known cars

manufactured by Tata Motors are:

Indigo Indica Nano

Safari Vista

4. Hyundai Motors India

Hyundai Motor Company of South Korean entered the India automobile

market in 1996. Among the top car manufacturing companies in India today,

Hyundai Motors is the company that has almost revolutionized the face of the

hatchback car segment in India. Some of the important models by Hyundai

Motors plying the Indian roads today are:


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Accent Santro i10 i20

5. Honda Siel Cars India

Honda Siel Cars India Limited was established in 1995. A joint venture between

Japanese automobile giants Honda Motor Co Ltd and Siel Limited, with the

promise of providing high order technological assistance to Honda motors for

their passenger cars segment meant for Indian consumers. Known for its series

of luxury and premium cars in India this company is among the major car

manufacturers of India. Some of its well-known models are:

City Accord Jazz Civic

6. Toyota

Toyota is one of the biggest vehicle manufacturers, and one of the most widely

known companies, in the world today. Rising from the ashes of industrial

upheaval in post-war Japan, Toyota has become the largest vehicle

manufacturer in Japan with over 40% market share and expanding its

operations in over 160 countries. Its popular models in India are:

Etios Corolla Fortuner Innova

7. Fiat Automobiles India

Among the major car manufactures in India Fiat Automobiles India Limited is a

joint venture between Tata Motors and the Italian giants Fiat Group

Automobile. Having over 100 years of experience in the automobile segment

this company is known for its series of strong and well built cars. Some of the

popular cars manufactured by Fiat Automobiles India Limited include:

Palio Punto Uno Linea

8. Chevrolet

Chevrolet is an American brand founded by Chevrolet and ousted GM founder

William C. Durant in 1911. In India, Chevrolet is not just a car. It is a name that

evokes memories of the dawn of Indias motoring; it is an icon of glamour and

style. Some of its popular models are:

Spark Beat Aveo Cruze


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FINDINGS

RESPONDENT PROFILE

AGE

Below 20 89

20-30 78

30-40 15

40-50 16

Above 50 9

TOTAL 207

Our sample had respondents from all age groups though the majority sampleof43% and 38% were from Below 20 years and 20 30 years.

GENDER

Female 78

Male 129

TOTAL 207

43%

38%

7%8% 4%

AGE

Below 20

20-30

30-40

40-50

Above 50

38%

62%

GENDER

Female

Male


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We did a survey on 207 people with 38% females and 62% males. Though

more males were surveyed, the responses collected have perceptions attached

with both the genders.

PROFESSIONStudent 123

Service 47

Business 37

TOTAL 207

Our survey consisted of students, service people and business professionals;

however, our survey was dominated by students consisting of 59% of the

sample.

INCOME

Below 3 lacs 85

3 6 lacs 41

6 10 lacs 29

10 15 lacs 32

Above 15 lacs 20

TOTAL 207

59%23%

18%

PROFESSION

Student

Service

Business

41%

20%14%

15%

10%

INCOME

Below 3 lacs

3 6 lacs

6 10 lacs

10 15 lacs

Above 15 lacs


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As evident the majority of the sample of41% is in the income bracket ofBelow

3 lacs annual income. But since there are respondents from other income

brackets also, this enables the study to be wide and not dependent on a set

income class.

OWNERSHIP OF CAR(S)

NO. OF CARS OWNED

0 27

1 68

2 53

3 32

4 and Above 27TOTAL 207

This pie chart shows number of cars owned by respondents. Out of 207

respondents, 13% did not own a car, 33% and 26% owned one and two cars

respectively. But only 15% and 13% owned 3 cars and 4 cars or more.

BRANDS OWNED

Maruti Suzuki 95Ford 33

Tata 29

Hyundai 86

Toyota 31

Honda 56

Other(s) 48

The graph shows the brand of the car owned by the respondents. It is clearly

visible that most of them own a Maruti Suzuki (95) or Hyundai (86) car while a

13%

33%

26%

15%

13%

NO. OF CARS OWNED

0

1

2

3

4 and Above


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few own a Tata (29), Ford (33) or Toyota (31) passenger cars. Also 48

respondents own other(s) brands, mostly of luxury brands like BMW and Audi.

TYPE OF CAR OWNED

Hatchback 117

Sedan 153

SUV 76

MUV 32

From the above pie chart, it can be concluded that most people - 41% own a

sedan while 31% own a hatchback. But a lesser percentage of people own a

SUV or MUV.

0 20 40 60 80 100

Maruti Suzuki

Ford

Tata

Hyundai

Toyota

Honda

Other(s)

95

33

29

86

31

56

48

BRANDS OWNED

31%

41%

20%

8%

TYPE OF CAR OWNED

Hatchback

Sedan

SUV

MUV


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LAST PURCHASE

Less than 6 months 47

6 months 1 year 28

1 year 2 years 24

2 years or more 82

This pie chart shows when the respondent bought their latest car. Out of those

who possess a car, 26% bought their car within the last 6 months while most

people, 45%, bought their cars at least 2 years back.

PURPOSE OF BUYING CARFor Everyday Use 96

As a Family Car 70

As a Gift 15

The above graph shows the reason for which the respondent bought their

latest car. While 53% and 39% bought it for everyday use and as a family car

respectively, just 8% bought it as a gift.

26%

16%

13%

45%

LAST PURCHASE

Less than 6

months

6 months 1 year

1 year 2 years

2 years or more

53%39%

8%

PURPOSE OF BUYING CAR

For Everyday Use

As a Family Car

As a Gift


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MONTHLY KILOMETERS DRIVEN

0 500 kms 59

500 1000 kms 64

1000 1500 kms 41

1500 kms or more 43

The above pie chart depicts the average monthly kilometres driven by the

respondent. About 28% and 31% drove from 0 500 kms and 500 1000 kms

respectively. But just 20% and 21% drove their cars for 1000 -1500 kms and

more than 1500 kms.

PREFERRED FUEL

Petrol 88

Diesel 74

CNG 45

TOTAL 207

Out of 207 respondents, 42% chose Petrol cars while 36% prefer Diesel Cars

and only 22% select CNG as their preferred fuel.

28%

31%

20%

21%

MONTHLY KILOMETERS

DRIVEN

0 500 kms

500 1000 kms

1000 1500 kms1500 or more

42%

36%

22%

PREFERRED FUEL

Petrol

Diesel

CNG


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PURCHASE CAR IN NEXT ONE YEAR

Definitely 102

Probably 53

Unsure 34

Probably Not 13Definitely Not 5

TOTAL 207

We can clearly observe from the above chart, that 49% will definitely buy a car

within this year, 26% will probably buy while 17% are unsure.

STATEMENTAGREEMENT OR DISAGREEMENT

Car design is more important than practicality

Out of 207 respondents, 80 disagreed with the statement while 83 agreed to it.But 44 neither agreed nor disagreed to it.

49%

26%

17%

6% 2%

PURCHASE CAR IN NEXT ONE

YEAR

Definitely

Probably

Unsure

Probably Not

Definitely Not

0

10

20

30

40

50

60

70

Strongly

Agree

Agree Neither

Agree nor

Disagree

Disagree Strongly

Disagree

32

51

44

69

11


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Performance is more important than mileage

121 respondents go along with the statement while 42 disagree to it, and just

44 are unsure about it. This indicates that performance of a car is more

important than the mileage.

Diesel cars require more maintenance than petrol

Apart from 57 respondents, 121 fall in with the statement while 29 disagree to

it. Hence mostly people believe that diesel cars require more maintenance

than petrol cars.

0

10

20

30

40

50

60

70

80

StronglyAgree

Agree NeitherAgree nor

Disagree

Disagree StronglyDisagree

43

78

44

32

10

0

10

20

30

40

50

60

70

80

Strongly

Agree

Agree Neither

Agree nor

Disagree

Disagree Strongly

Disagree

47

74

57

20

9


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Diesel cars are worth the extra premium they command

With the ever rising petrol prices, most of the respondents (121) consider the

extra premium diesel cars command, are worth it.

Only petrol cars are performance oriented

The typecast of petrol cars being performance oriented is slowly fading as

evident with the above chart as 89 respondents disagree to the statement

while 59 neither agree nor disagree.

0

10

20

30

40

50

60

70

80

90

Strongly

Agree

Agree Neither

Agree nor

Disagree

Disagree Strongly

Disagree

39

82

56

21

9

0

10

20

30

40

50

60

Strongly

Agree

Agree Neither

Agree nor

Disagree

Disagree Strongly

Disagree

16

43

59

52

37


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Owning a sedan is a status symbol

With the rise in the number of people owning a sedan, mostly respondents,

144, believe that owning a sedan car is a status symbol. Just 23 respondents

disagree with it.

Driving dynamics are more important than comfort

Out of 207 respondents, 124 are in flow with the statement while 49 are

against it. It is evident that driving dynamics is certainly considered more

important than comfort of the car.

0

10

20

30

40

50

60

70

80

StronglyAgree Agree NeitherAgree nor

Disagree

Disagree StronglyDisagree

67

77

40

15

8

0

10

20

30

40

50

60

70

80

90

Strongly

Agree

Agree Neither

Agree nor

Disagree

Disagree Strongly

Disagree

42

82

34

41

8


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CHI SQUARE ANALYSIS

Analysis 1: Brand Value v/s Age

H0: The age group has no significant impact on importance of brand value at

confidence level of 95%.

H1: The age group has a significant impact on importance of brand value at


Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

age * brandvalue 207 100.0% 0 .0% 207 100.0%

age * brandvalue Crosstabulation

brandvalue

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

age 1 Below 20 18 44 19 5 3 89

2 20

30 20 41 11 4 2 78

3 30 - 40 6 5 1 0 3 15

4 40 - 50 5 6 3 0 2 16

5 Above 50 6 1 0 0 2 9

Total 55 97 34 9 12 207

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 31.084a 16 .013

Likelihood Ratio 30.343 16 .016

Linear-by-Linear Association .115 1 .735

N of Valid Cases 207

a. 16 cells (64.0%) have expected count less than 5. The minimum expected count is .39.

At 95% confidence level, since Chi-Square observed is greater than the critical

value of 26.296, we reject the null hypothesis indicating that there is significantrelationship between age group and the importance of brand value.


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Analysis 2: Price v/s Income

H0: The income has no significant impact on importance of price at confidence

level of 95%.

H1: The income has a significant impact on importance of price at confidencelevel of 95%.


Cases

Valid Missing Total


income * price 207 100.0% 0 .0% 207 100.0%

income * price Crosstabulation

price

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

income 1 Below 3

lacs28 39 14 0 4 85

2 3 - 6 lacs 21 18 2 0 0 41

3 6 - 10 lacs 4 21 4 0 0 29

4 10 - 15 lacs 9 15 1 2 5 32

5 Above 15

lacs6 2 7 0 5 20

Total 68 95 28 2 14 207

Chi-Square Tests




Linear-by-Linear Association 10.998 1 .001



At 95% confidence level, since Chi-Square observed of 59.730 is greater than

the critical value of 26.296, we reject the null hypothesis indicating that there

is significant relationship between income and the importance of price.


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Analysis 3: Promotional Scheme v/s Profession

H0: The profession has no significant impact on importance of promotional

scheme at confidence level of 95%.

H1: The profession has a significant impact on importance of promotionalscheme at confidence level of 95%.


Cases

Valid Missing Total


profession * promotion 207 100.0% 0 .0% 207 100.0%

profession * promotion Crosstabulation

promotion

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

profession 1 Student 10 23 43 47 0 123

2 Service 9 9 13 12 4 47

3 Business 5 4 12 8 8 37

Total 24 36 68 67 12 207

Chi-Square Tests






a. 3 cells (20.0%) have expected count less than 5. The minimum expected count is 2.14.



is significant relationship between profession and the importance of

promotion scheme.


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Analysis 4: Mileage v/s Gender

H0: The gender has no significant impact on importance of mileage at


H1: The gender has a significant impact on importance of mileage at confidencelevel of 95%.


Cases

Valid Missing Total


gender * mileage 207 100.0% 0 .0% 207 100.0%

gender * mileage Crosstabulation

mileage

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

gender 1 Female 24 30 15 2 7 78

2 Male 50 57 10 5 7 129

Total 74 87 25 7 14 207

Chi-Square Tests







At 95% confidence level, since Chi-Square observed of 7.702 is less than the

critical value of 9.488, we accept the null hypothesis indicating that there is no

significant relationship between gender and the importance of mileage.


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Analysis 5: Comfort v/s Age

H0: The age has no significant impact on importance of comfort at confidence

level of 95%.

H1: The age has a significant impact on importance of comfort at confidencelevel of 95%.


Cases

Valid Missing Total


age * comfort 207 100.0% 0 .0% 207 100.0%

age * comfort Crosstabulation

comfort

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

age 1 Below 20 38 37 14 0 0 89

2 20 30 31 34 10 3 0 78

3 30 - 40 5 5 5 0 0 15

4 40 - 50 8 7 1 0 0 16

5 Above 50 3 1 2 0 3 9

Total 85 84 32 3 3 207

Chi-Square Tests









is significant relationship between age and the importance of comfort.


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Analysis 6: Safety Features v/s Age

H0: The age has no significant impact on importance of safety features at


H1: The age has a significant impact on importance of safety features atconfidence level of 95%.


Cases

Valid Missing Total


age * safety 207 100.0% 0 .0% 207 100.0%

age * safety Crosstabulation

safety

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

age 1 Below 20 33 32 23 1 0 89

2 20 30 24 31 19 2 2 78

3 30 - 40 4 6 1 2 2 15

4 40 - 50 8 6 1 1 0 16

5 Above 50 3 4 0 0 2 9

Total 72 79 44 6 6 207

Chi-Square Tests









is significant relationship between age and the importance of safety features.


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Analysis 7: Design v/s Gender

H0: The gender has no significant impact on importance of design at confidence

level of 95%.

H1: The gender has a significant impact on importance of design at confidencelevel of 95%.


Cases

Valid Missing Total


gender * design 207 100.0% 0 .0% 207 100.0%

gender * design Crosstabulation

design

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

gender 1 Female 25 36 9 3 5 78

2 Male 45 46 27 7 4 129

Total 70 82 36 10 9 207

Chi-Square Tests








critical value of 9.488, we accept the null hypothesis indicating that there is no

significant relationship between gender and the importance of design.


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Analysis 8: Dealer Proximity v/s Profession

H0: The profession has no significant impact on importance of dealer proximity

at confidence level of 95%.

H1: The profession has a significant impact on importance of dealer proximityat confidence level of 95%.


Cases

Valid Missing Total


profession * dealer 207 100.0% 0 .0% 207 100.0%

profession * dealer Crosstabulation

dealer

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important


2 Service 6 9 14 10 8 47

3 Business 11 5 9 8 4 37

Total 28 36 65 54 24 207

Chi-Square Tests






a. 1 cell (6.7%) has expected count less than 5. The minimum expected count is 4.29.


critical value of 15.507, we accept the null hypothesis indicating that there is

no significant relationship between profession and the importance of dealer

proximity.


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Analysis 9: Finance Scheme v/s Income

H0: The income has no significant impact on importance of finance scheme at


H1: The income has a significant impact on importance of finance scheme atconfidence level of 95%.


Cases

Valid Missing Total


income * finance 207 100.0% 0 .0% 207 100.0%

income * finance Crosstabulation

finance

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

income 1 Below 3 lacs 10 24 39 8 4 85

2 3 - 6 lacs 12 12 13 2 2 41

3 6 - 10 lacs 0 11 14 3 1 29

4 10 - 15 lacs 5 6 10 7 4 32

5 Above 15 lacs 6 5 1 4 4 20

Total 33 58 77 24 15 207

Chi-Square Tests









is significant relationship between income and the importance of finance

scheme.


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Analysis 10: Accessories v/s Age

H0: The age has no significant impact on importance of accessories at


H1: The age has a significant impact on importance of accessories at confidencelevel of 95%.


Cases

Valid Missing Total


age * accessories 207 100.0% 0 .0% 207 100.0%

age * accessories Crosstabulation

accessories

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

age 1 Below 20 25 29 26 9 0 89

2 20 30 23 10 29 14 2 78

3 30 - 40 3 4 7 1 0 15

4 40 - 50 3 10 3 0 0 16

5 Above 50 3 2 1 0 3 9

Total 57 55 66 24 5 207

Chi-Square Tests









is significant relationship between age group and the importance of

accessories.


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Analysis 11: Maintenance Cost v/s Profession

H0: The profession has no significant impact on importance of maintenance

cost at confidence level of 95%.

H1: The profession has a significant impact on importance of maintenance costat confidence level of 95%.


Cases

Valid Missing Total


profession * maintenance 207 100.0% 0 .0% 207 100.0%

profession * maintenance Crosstabulation

maintenance

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important


2 Service 28 15 1 2 1 47

3 Business 14 10 7 2 4 37

Total 79 78 29 10 11 207

Chi-Square Tests









is a significant relationship between profession and the importance of

maintenance cost.


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Analysis 12: Resale Value v/s Income

H0: The income has no significant impact on importance of resale value at


H1: The income has a significant impact on importance of resale value atconfidence level of 95%.


Cases

Valid Missing Total


income * resale 207 100.0% 0 .0% 207 100.0%

income * resale Crosstabulation

resale

Total

1 Extremely

Important

2 Very

Important

3 Somewhat

Important

4 Not Very

Important

5 Not At All

Important

income 1 Below 3 lacs 7 26 28 18 6 85

2 3 - 6 lacs 16 10 10 4 1 41

3 6 - 10 lacs 10 11 8 0 0 29

4 10 - 15 lacs 4 8 6 7 7 32

5 Above 15 lacs 7 3 7 1 2 20

Total 44 58 59 30 16 207

Chi-Square Tests









is significant relationship between income and the importance of resale value.


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LIMITATIONS

Research was conducted within a constrained sample of respondents

mainly the students of various colleges. The study was limited to the geographical area of Delhi, therefore the

results cannot be generalised.

Unequal distribution of both the genders.

The result generated out of the study is completely dependent on the

nature of the response given by the customers.

Short span of time was a limiting factor.

Customer satisfaction varies from time to time. It will not remain

constant.

The chances of respondents filling the questionnaire hastily are high.

Despite these limitations, a sincere attempt has been made to collect and

analyse the data and present the information as accurately as possible.


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CONCLUSION

The market research survey was undertaken in Delhi on a sample size of 207,

and the responses were analysed indicating the buying behaviour of customersand their perceptions about the cars in the market.

Through our findings in this report, we have figured out various important

factors through consumers for passenger cars can be segmented. Among the

respondents, Maruti Suzuki and Hyundai cars are a favourite buy with a

majority owning a sedan car considering their luxurious looks, good mileage

and great range

According to our sample, mostly people purchase a car for everyday use with

average monthly kilometres driven in the range of 500 -1000 kms. Most of

them are currently using petrol cars and definitely plan to purchase a new car

within this year.

Upon further study, we observed that in India, owning a sedan car is more of a

status symbol. Performance of the cars and driving dynamics are considered

more crucial than the mileage and comfort respectively. However, respondents

were divided over choosing car design over practicality. They also believe that

diesel cars command extra premium for maintenance, however, it is

considered worth due to the exorbitant petrol prices.

With the help of chi square analysis, it was found that with the change in

demographic factors, the various consumer patterns for passenger cars also

change. The following results were found:

Young people give great importance to brand value, comfort and

accessories while older people are indifferent about it.

With increase in income, people are less concerned about the price,

finance scheme available and resale value of cars

According to profession, the importance of promotional scheme and

maintenance cost changes. While students and service class people pay

a lot of importance, business professionals are not concerned.

Dealer proximity, design and mileage do not vary with profession and

gender respectively.


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BIBLIOGRAPHY

www.google.com www.siamindia.com

www.autocarindia.com

www.ibef.org

www.yahoo.com

www.wikepedia.org

www.indiamarks.com


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ANNEXURE

QUESTIONNAIRE

Dear Sir / Maam

We, the students of Shaheed Sukhdev College of Business Studies, Delhi University are conducting a

survey on CONSUMERS PERCEPTION OF Car Purchasing Criteria as a part of our Business Research

project. We, therefore, request you to spare some of your time to fill this questionnaire. We assure

you that the information provided by you will be kept confidential and used for academic purposes

only.

1. Name :

2. Age : Below 20 20 30 30 40 40 50 Above 50

3. Gender : Male Female

4. Profession : Business Service Student

5. Annual Family Income : Below 3 lakhs 3 6 lakhs 6 10 lakhs

10 15 lakhs Above 15 lakhs

6. How many car/cars do you currently own?

None 1 2 3 4 More than 4

Please skip questions 7 12 if you do not own a car

7. What is/are the brand/brands of your car/cars?

Maruti Suzuki Ford Tata

Hyundai Toyota Honda

Other(s)

8. Which type of car/cars do you own?

Hatchback Sedan SUV MUV

9. When did you last purchase a car?

Less than 6 months 6 months 1 year 1 year 2 years 2 years or

more

10.For what purpose did you buy your latest car?

For everyday use As a family car As a gift


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11.What are your average monthly kilometres driven?

0 500 500 1000 1000 1500 1500 or more

12.What type of fuel do you prefer?

Petrol Diesel CNG

13.Do you wish to purchase a car in the next one year?

Definitely Probably Unsure Probably Not Definitely Not

14.Please rate the following features on the basis of their importance while buying a car :

extremely

important

very

important

somewhat

important

not very

important

not at all

important

Brand Value

Price

Promotional Schemes

Mileage

Comfort

Safety Features

Design

Dealer Proximity

Finance Scheme

Accessories

Maintenance Cost

Resale Value


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15.Please state whether you agree or disagree :

strongly

agreeagree unsure disagree

strongly

disagree

Car design is more

important than

practicality

Performance is more

important than mileage

Diesel cars require

more maintenance

than petrol

Diesel cars are worth

the extra premium they

command

Only petrol cars are

performance oriented

Owning a sedan is astatus symbol

Driving dynamics are

more important than

comfort

Thank You!

Documents

Car Purchase - Srishti Srivastava and Vayam Sood