CONSUMER BEHAVIOUR TERM PROJECT
PROJECT REPORT ON CONSUMER BUYING BEHAVIOUR IN CASE OF SEDAN
CARS
SUBMITTED BY:MUKESH YADAVUTKARSH SAWNEYPRANAY SURIBHANUPRATAP
SINGHExecutive SummaryThe 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 June 2005-06 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
Porches, Bentley, Audi, and BMW 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 brands.
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 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.There are various reasons for the
growth of the Indian automobile market such as:1. The people have
more disposable income as economy is growing.2. Increase in the
need of mobility due to urbanization and leisure travel.3. Car
Finance options available from Financial Institutes at reasonable
rate of interest.4. Availability of service centers and spare parts
in near vicinity. 5. Improvement in highway infrastructure.
STATEMENT OF THE PROBLEM Due to the emergence of globalization
and liberalization there is a stiff completion among the Automobile
industries which are focusing attention in capturing the Indian
markets an automobile are no more considered as luxury once, now
occupies a part of day to-day life and has become a necessity.
Customers have now changed their attitude that yesterdays luxuries
are todays necessities. To be a successful marketer it is
absolutely essential to study the perceptions of the prospective
buyers and track their drivers of those perceptions.OBJECTIVES OF
THE STUDY:Examine customer perception about the carsTo understand
the most important variable considered for buyingTo know the reason
for buying the car.DEFINITION: Consumer buying behavioris the sum
total of aconsumer'sattitudes, preferences, intentions, and
decisions regarding theconsumer's behaviorin the marketplace
whenpurchasinga product or service
TYPE of Research:EXPLORATORY RESEARCH:PRIMARY RESEARCH:
Qualitative or quantitative data that are newly collected in the
course of research, Consists of original information that comes
from people and 2 includes information gathered from surveys, focus
groups, independent observations and test results. Data gathered by
the researcher in the act of conducting research. Research is done
through questionnaire. Secondary research:Secondary source of data
used consists of books and websites My proposal is to first conduct
a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry
norms and reports, on which certain issues shall be selected, which
I feel remainDATA COLLECTION:The first hand information was
collected by making the people fill the questionnaires. The primary
data collected by directly interacting with the people. The
respondents were contacted at shopping malls, markets and some
students. The respondents consisted of house wives, students,
business men, professionals etc. the required information was
collected by directly interacting with these respondentsTOTAL of 30
respondents answers were recorded and analysis was done.Simple
Random sampling was done 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. LIMITATIONS OF STUDY:The questionnaire designing has to
careful so that only required data is concisely reveled and there
is no redundant data generated.Respondents were not willing to
participate or answer the questions and mostly left the
questionnaire half filled.Sample taken cannot decide the buying
behavior of the populationANALYSIS OF THE DATA:
Interpretation:Out of the 35 respondents of age group between
25-40 years 12 of them were in government service followed by an
employee and then 6 of them were self employed or running their own
business.
Interpretation: There were many respondents owing more than one
car so therefore the data exceeds the total no. of respondents. The
only purpose of this question was to know the if the respondent own
one so as to make them aware about the furthur questions.
Interpretation: most of the respondents were having income range
from 3 L to 9L of which maximum of 11 respondents fall under the
category of having income range from 4-7L, following 8 respondents
with income range from 7- 10L.The following questions were
presented in Likert scale so that the respondents are comfortable
answering and saving much of their time and open ended questions
were avoided for the same. respondents has to select the option
ranging from EXTEMELY UNIMPORTANT to EXTREMELY IMPORTANT based on
the perception of the consumer or things which a consumer coniders
before buying a car of any brand.
Interpretation: the price is a extremely important factor for
most of the respondents which is followed by important i.e 13 out
of 30 to be considered while buying.
Interpretation: it is evident that most of the respondents kept
brand value as important criteria for buying and respondents who
judged this as not that important were those who considered car as
a need for the family or low interest rate on loans.
Interpretation:Styling and design was also considered important
by 16 respondents and all of which was student as respondents or
around the average age group.
Interpretation: car having a certain functions with which it
operates and 15 respondents judged it as the most important. The
functional requirements specify what the product must do. They
relate to the actions that the product must carry out in order to
satisfy the fundamental reasons for its existence.
Interpretation: 17 out of the total respondents said it is for
their family needs and some considered it for the commercial use or
for personal use.
Interpretation: 14 respondents considered after sales services
as the important as well as extremely important criteria to judge
the buying as it involves time and effort of an individual, so one
may desire for after sales services.
Interpretation: one desires to keep the car for a long term as
it becomes part of their life and more over becomes comfortable in
driving the car and also thinks it a reason to be bought from the
first salary and the payment in installments also stops the person
to know its resalable value before buying.
Interpretation: discounts and offer on buying had a influence to
most of them to some extent as they were not enabled to make a
choice while buying the car for them. On the other hand 7
respondents discounts & offers to be an important criteria
before buying the car i.e purchases during festivals or from lucky
draw etc.
Interpretation: most of the respondents did not considered boot
space in car as important before making a purchase of the car.
Whereas for some it was extremely important.
Interpretation: leg space is considered as an important factor
by buyers when making purchase decision .
Interpretation: 10 respondents considered interest rate on loans
which have been eased as a major factor before buying the car and
followed by 9 respondents ranked it as extremely important factor
and 2 of them not consider is as important maybe because of their
increase in family income or the disposable income to buy the car.
CONCLUSION:Consumer behavior consists of all human behavior that
goes in making before and post purchase decisions. From study there
are various major class of consumer behavior determinants and
expectations, namely socioeconomic, psychological, political,
geographical, demographic and Product & Technology. Further
classification of human behaviors under main categories will enable
car manufacturer to align their strategies in concurrence to
customer behavior. While purchasing mini segment car though
customer is highly cost conscious but this segment is also
upgrading their requirements and due to rise in disposable income.
Customer is more inclined to purchase Suzuki Swift, 120. For mid
size segment customer focus is for safety, driving & seating
comfort, brand. Also this segment requires value for money, best
features and customer friendly vehicles. In higher segment cars
like Executive and Premium brand image is main deciding factor
which gives assurance of meeting their needs interms of safety,
performance and feature requirements. Brand global presence is
judged by consumers based on availability around the globe with
standardized products, brand name, distribution channels and
communications. By going global, the company will enjoy an increase
in market share, which indicates increase in demand for their
products. With that, the company can produce with economies of
scale, reduce cost per unit and increase production efficiency
resulting in serving customers efficiently and economically.
IMPLICATION OF THE STUDY: As the report mentions there are clue in
the market that the cars are on a path of becoming commodities just
like the fate awaits for any other consumer goods. So what can be
the role and scope of brands and their personality in the changes
scenario to establish the brand perception of any car in the
mindset of a customer present or potential can be one area of
study? On the close lines, another area of study can be the
importance of advertisements and promotion schemes on the brand
image of any car brand? Are the brands which advertise more have a
positively high brand perception or its the sales promotion schemes
which create the ripples in the mindset of the customers.
QUESSIONNAIRE FOR SEDAN CARS1. AGE:2. OccupationStudent Self
Employed government Service Employee3. Family incomeBelow 2,50,000
2,50,000 -4,00,0004,00,000- 7,00,000 7,00,000-10,00,00010,00,000
and above4. Do you own a car5. Which brand do you ownMaruti Suzuki
Hyundai Honda Tata Toyota Others6. reasons for purchasing a
carDisposable income better safety at roads family needs family
size lifestyleRate the factors you consider before buying a car
according to their importance EXTREMELY UNIMPORTANTNOT
IMPORTANTAVERAGEIMPORTANTEXTREMELY IMPORTANT
PRICE of the car
Brand value of the company
Styling and design
Functional specifications
Family needs
Fuel efficiency
After sales services
Availability of spare parts
Resale value
Discounts and exchange offers
Interest rate offered on car loans
Boot space in car
Leg space in car
