CHAPTER - IV RESEARCH DESIGN AND …shodhganga.inflibnet.ac.in/bitstream/10603/32756/12/11...116 in the Indian market, the marketing strategies being followed by these players and

CHAPTER - IV

RESEARCH DESIGN

AND

METHODOLOGY

After laying down the theoretical framework, the next phase of research is to test the

theory empirically. To meet the objective, an empirical study of major car manufacturers

operative in India belonging to the domains of hatchback and sedan cars and their

marketing strategies was undertaken in NCR-Delhi. The present study proposed to make

an understanding of the position of Indian car industry in the post liberalization era and

how the Indian buyer reacts towards the marketing plans of car manufacturers about the

vehicle options available with him in compact and midsized segments, on the basis of a

research framework of key variables for analyzing the influence of social, cultural,

personal and psychological contexts on consumer buying behavior, and integrated

marketing mix elements, segmentation, targeting, differentiation and positioning along

with electronic marketing and customer relationship management on car buyers’ brand

preference, satisfaction and loyalty intention.

This chapter discusses the research objectives and research procedure which includes the

overall research design, the sampling procedures, the data collection methods, the

methods of data analysis, measures undertaken and statistical techniques used for data

analysis. The purpose of this chapter is to provide information regarding the research

contexts, philosophical assumptions underpinning the study, and research strategies used.

4.1 Objectives of the Study

This study provided greater insight into the post-economic liberalization scenario of

Indian automobile industry responsible for highly competitive business environment for

car manufacturers. The present study is also to make an analysis of the marketing

strategies for effective outcomes in car manufacturing companies. Following are the

concise objectives of the study:

1. To study the post liberalization scenario of the automobile industry in India and the

existing marketing strategies being adopted by the car manufacturers.

2. To study the effectiveness of these marketing strategies by analyzing the impact on

consumer in terms of their brand choice, satisfaction and loyalty intention.

3. To explore and suggest marketing strategies in regard to the current scenario for the

car manufacturers and marketers.

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4.2 Research Approach

The research approach used in the present study is quantitative. This type of research is

more concerned about issues of design, measurement, and sampling because their

deductive approach emphasizes detailed planning prior to data collection and analysis.

(Neuman and Lawrence, 2000). The first reason for the quantitative approach to be

chosen is that as mentioned above, the deductive approach is often associated with

quantitative research design. Another reason for the quantitative approach is that the

researcher wants to generalize from the samples and make conclusions from the samples.

It is very difficult to know the exact number of NCR-Delhi existing and potential car

buyers and data collection from each case is not possible and not necessary for the study,

so the researcher used questionnaire in the study to collect primary data in order to make

generalization from the sample chosen. As Hair, Money, Samouel and Babin (2003)

suggests that once data is obtained, and then analyzed, it becomes the basis for

conclusions and decision-making.

4.2.1 Research Design

The study is explorative cum descriptive cum diagnostic in nature. It is exploratory in a

sense that prior to liberalization few studies have been conducted by the scholars on

marketing strategies of car industry. The focus of these studies have been on marketing

mix that is too on positioning as there were only few players in the Indian market. After

globalization the automobile market scenario has completely changed due to the entry of

large number of multinational companies in the fray. And in this changed situation

where the focus is on customer value, in the best knowledge of the researcher based on

the extant literature, no study has been conducted on how marketing strategies of car

manufacturers influence the consumers in India, and in particular, who wants to make a

mark in the domain of hatchback and sedan in compact and midsized segment of cars

among the existing car manufacturers.

Descriptive research involves gathering data that describe events and then organizes,

tabulates, depicts, and describes the data collection (Glass and Hopkins, 1996). The

present study is also descriptive in nature as the researcher made an attempt to describe

the current scenario in the global automobile sector with a focus on the players prevailing

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in the Indian market, the marketing strategies being followed by these players and the

researcher attempts to make a situational/scenario analysis (SWOT analysis, Porter’s Five

Forces Industry analysis, and the PEST analysis) in the context of automobile business

environment. Moreover, the problem has been formulated and conceptualized on the

basis of the description of existing literature on the subject.

The present study is also diagnostic as first it explores the marketing strategies of the

major players and then attempts to analyze the effectiveness of these strategies on Indian

car buyers’ brand preference, satisfaction and loyalty. Finally, an attempt has also been

made to recommend some more viable aspects of marketing strategies that can be

implemented in the current global environment.

Survey was the predominant research methodology used in this work. To proceed on

right track and to do justice with the study, the primary sources of information were

browsed. Technical expectations as well as social expectations and obligations were

delineated in consultation with the Research Supervisor and the Marketing Personnel of

car manufacturers/dealers/financing agencies who were apt to the idea of processes and

problems of the buyer behavior and marketing strategies to influence car buyers in Indian

automobile business environment before finalizing the line of action. Thus the thrust

areas were marked for the target audience, the hatchback and sedan car owners for the

compact and midsized segment in India. A quantitative survey was chosen for the

research because it is a simple and cost effective means of gathering a large amount of

information within a short timeframe.

4.2.2 Universe and Survey Population

The universe of the study was the major car manufacturers who are offering hatchback

and sedan in compact and midsize besides their other segment cars in India. The survey

population included the car owners to see impact of marketing strategies of the

companies selling brands like Maruti Suzuki, Tata, Hyundai, Ford, Toyota, Honda,

Renault, Chevrolet, Nissan, Skoda, Volkswagen, and Fiat on consumers’ brand

preference, satisfaction and loyalty.

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4.2.3 Data Sources

The present work is an empirical research based on both primary and secondary data. The

theory is basically developed from secondary sources of information and a thorough

study of various academic works in the field has been attempted. Various sources used

for the purpose are the records of the sampled auto organizations, auto magazines, books,

articles that appeared in journals and newspapers, study reports etc. on the subject

particularly for formulation of the problem and also to compare the respondents’

perception about the influence of strategies and the buyer preference, satisfaction and

loyalty. Self-administered questionnaire was the main source of colleting the primary

data which include items on demographic information of respondents, the car

manufacturers’ marketing strategies and their impact on brand preference, satisfaction

and loyalty. It also included some open ended questions to give the chance to respondents

for expressing their view point on various aspects of the problem. However, personal

interviews were also conducted of the subjects in the light of same questionnaire.

An analysis of the automobile marketing strategies documentation was conducted prior to

the commencement of the survey. Perceptual inputs in the form of documentation were

collected by personal visits to the senior level marketing managers and marketing

professionals of the car manufacturers, dealers and financing agencies under study.

4.2.4 Sample Area

The data has been collected from NCR-Delhi as the area has a high residential density

with people from all over India due to the high migration influx in recent years. The

population is quite heterogeneous, with various dimensions such as religion, caste,

customs, traditions, social hierarchy, language, literacy, education, occupation, income

etc.

4.2.5 Sample Design and Survey Sample

Twelve dealers of the car companies in NCR-Delhi were selected on the basis of

judgment sampling for inclusion in the sample. A preliminary discussion was held with

the concerned manager of each of the car dealers under study located in NCR-Delhi who

were asked to supply the list of those customers who had bought the cars for more than a

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year. Of this list, 240 subjects were randomly selected for giving a personal telephonic

call for participating in this survey.

4.2.6 Selection of Car Manufacturers

In passenger car segment, Suzuki is the leader with around 50%, market share followed

by Hyundai with 19% and Tata with 16%. Other players in this segment are Honda and

Ford, Toyota, General Motors etc. (Menon, 2012). Therefore, the objects to be

investigated were the customers of car manufacturers with largest market share as shown

in Table 4.1. Given that larger organizations tend to have more established and

comprehensive marketing programs, this sample was chosen because of their experience

with the implementation of innovative marketing strategies.

Table 4.1: Selection of Car Manufacturers/Models

Name of the Company/Car type Brand Name and

Model

Type of fuel

used

Petrol Diesel

Chevrolet Sales India Private Limited Hatchback Chevrolet SAIL U-VA √ √

Sedan Chevrolet SAIL √ √

FIAT Group Automobiles India Private

Limited

Hatchback Fiat Punto √ √

Sedan Fiat Linea √ √

Ford India Private Limited Hatchback Ford Figo √ √

Sedan Ford Fiesta √ √

Hyundai Motor India Limited Hatchback Hyundai i-20 √ √

Sedan Hyundai Verna √ √

Honda Cars India Limited Hatchback Honda Brio √ --

Sedan Honda Amaze √ √

Maruti Suzuki India Limited Hatchback Maruti Suzuki Swift √ √

Sedan Maruti SX4 √ √

Toyota Motor Corporation Hatchback Toyota Etios Liva √ √

Sedan Toyota Etios √ √

Tata Motors Limited Hatchback Tata Indica Vista √ √

Sedan Tata Manza √ √

Volkswagen India Private Limited Hatchback Volkswagen Polo √ √

Sedan Volkswagen Vento √ √

SKODA Auto India Private Limited Hatchback Skoda Fabia √ √

Sedan Skoda Rapid √ √

Nissan Motor India Private Limited Hatchback Nissan Micra √ √

Sedan Nissan Sunny √ √

Renault India Private Limited Hatchback Renault Pulse √ √

Sedan Renault SCALA √ √

Note: All the hatchback and sedan cars belong to compact and midsize segment respectively.

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4.2.6.1 Selection of Car Models

The flood of entrants into the car industry in the last few years has led to a complete

transformation of this industry. Many of the auto industry experts and agencies like

Society of Indian Automobile Manufacturers (SIAM) have classified various car models

existing in various segments in the Indian marketplace on different parameters. For the

purpose of this study, the researcher focused on specific car models and grouped them on

the basis of their type/form i.e. hatchback or sedan into compact and midsize segment as

shown in Table 4.1. Reason being, the compact and midsize is coming up as the most

competitive segments in India. Moreover, the luxury, sports utility vehicles (SUVs) and

multi-purpose utility vehicles (MUVs) have been considered beyond the scope of the

study being different in design, style, specification, cost, purpose etc.

4.2.7 Selection of Respondents

A cross section of respondents who are using hatchback or sedan cars in compact and

midsize segment was selected from the list supplied by the dealers of the sampled

companies as to get a better and wider perspective. The sampling technique employed in

the study was convenience based random sampling.

The information executives or managers from the dealerships under study were solicited

to serve as “intermediaries” for their respective car companies and asked to provide the

backgrounds of those car owners who had purchased a car within the last 12 months.

Survey was conducted by in-person structured interview method, using a structured

questionnaire. A total of 195 out of 240 respondents were approached in the entire

selected car dealerships of NCR-Delhi. To ensure a high response rate, care was taken to

personally administer as many questionnaires as possible, further constant follow-up was

done and patience was maintained all throughout to ensure that the respondents filled up

the questionnaires. An attempt was made to ensure that the filled up questionnaires

should come from each category of the car. For thorough estimates and analyses, only

those questionnaires that were filled out correctly and completely were used for this

study.

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Table 4.2: Category-wise Distribution of Surveyed Car Owners

Category of cars Car owners Total

(N=138) Car type Brand Name and Model Petrol Diesel

Hatchback Chevrolet SAIL U-VA 1 3 4

Sedan Chevrolet SAIL 0 4 4

Hatchback Fiat Punto 2 7 9

Sedan Fiat Linea 1 2 3

Hatchback Ford Figo 0 7 7

Sedan Ford Fiesta 2 5 7

Hatchback Hyundai i-20 3 8 11

Sedan Hyundai Verna 1 5 6

Hatchback Honda Brio 4 0 4

Sedan Honda Amaze 0 3 3

Hatchback Maruti Suzuki Swift 1 6 7

Sedan Maruti SX4 1 4 5

Hatchback Toyota Etios Liva 1 3 4

Sedan Toyota Etios 1 6 7

Hatchback Tata Indica Vista 0 7 7

Sedan Tata Manza 0 6 6

Hatchback Volkswagen Polo 1 5 6

Sedan Volkswagen Vento 2 3 5

Hatchback Skoda Fabia 1 3 4

Sedan Skoda Rapid 2 6 8

Hatchback Nissan Micra 1 3 4

Sedan Nissan Sunny 2 7 9

Hatchback Renault Pulse 2 2 4

Sedan Renault SCALA 1 3 4

Total number of Hatchback (compact size ) cars 17 54 71

Total number of Sedan (midsize size) cars 13 54 67

Grand Total 30 108 138

Finally, data from the 138 out of 195 questionnaires complete in all respects was put to

SPSS ver. 17.0. Eighteen incomplete questionnaires were discarded; thus the effective

recovery rate was 70.76 per cent. Category-wise distribution of sample is given in Table

4.2.

4.3 Hypotheses Formulation

After an interdisciplinary theoretical investigation of the subject under research and an

analysis of existing empirical studies, a set of 23 null hypotheses was developed which

are as shown in Table 4.3.

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Table 4.3: Table of Hypotheses

Hypotheses

H1.1 There is no significant relationship between the car purchase decision and increasing disposable

income of the buyers.

H1.2 There is no significant relationship between the car purchase decision and increasing family

needs of the buyers.

H1.3 There is no significant relationship between the car purchase decision and increasing family size

of the buyers.

H1.4 There is no significant relationship between the car purchase decision and better safety at roads.

H1.5 There is no significant relationship between the purchase decision and matching of car with the

lifestyle and personality of the buyers.

H2.1 There is no significant influence of demographic characteristics on the payment decisions of car

buyers.

H2.2 There is no significant influence of demographic characteristics on the car fuel variant preference

of buyers.

H3.1 There is no significant relationship between the social factors and purchase behavior of the car

buyers.

H3.2 There is no significant relationship between the cultural factors and purchase behavior of the car

buyers.

H3.3 There is no significant relationship between the psychological factors and purchase behavior of

the car buyers.

H3.4 There is no significant relationship between the information sources and purchase behavior of

the car buyers.

H3.5

There is no significant difference in the compact and midsized segment car buyers’ view about

influence of social, cultural and psychological contexts and information sources on purchase

behavior.

H4.1 Product referent attributes of a car brand are given lesser preference than task/outcome referents

by the consumers.

H4.2 Product referent attributes of a car brand are given lesser preference than user/surrogate referents

by the consumers.

H4.3 Task/outcome referent attributes of a car brand are given lesser preference than user/surrogate

referents by the consumers.

H5.1 Concrete attributes are given lesser preference than the abstract attributes associated with a car

brand by the consumers.

H5.2 Surrogate attributes are given lesser preference than the (concrete/abstract) attributes associated

with a car brand by the consumers.

H5.3 Direct benefits are given lesser preference than the indirect benefits associated with a car brand

by the consumers.

H5.4 Surrogate attributes are given lesser preference than the (direct/indirect) benefits associated with

a car brand by the consumers.

H5.5 Benefits are given lesser preference than the (concrete/abstract) attributes associated with a car

brand by the consumers.

H6.1 There is no effect of the brand satisfaction facets on car owners' overall brand satisfaction.

H6.2 There is no effect of the brand satisfaction facets on car owners' brand loyalty intention.

H6.3 There is no effect of the overall brand satisfaction on car owners' brand loyalty intention.

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4.4 Structure of the Instrument

4.4.1 Questionnaire Development

To develop the questionnaire a significant effort was put into so that the instrument may

dynamically extract ample information from the respondents to make appropriate

conclusions. Selected marketing professionals of the car manufacturers, dealers and car

financing agencies were consulted in order to obtain their views on car buyers’

preferences and about the marketing strategies being adopted in car manufacturing

companies to attract and retain their customers. During the informal chat with these

industry people information as to how buyers feel about the marketing initiatives of the

car manufacturers/dealers/financing agencies was extracted and recorded. Once the initial

items generated, the executives were asked to re-confirm about the initiatives and

subsequently framed for the inclusion in the questionnaire. Such discussions enabled the

researcher to gauge the clarity of the tasks, assess the instrument’s qualitative validity,

and omissions and commissions, if any were pinpointed.

Feedback served as a basis for correcting, refining, and enhancing the experimental

items, some of which were eliminated as they were found to represent essentially the

same aspects with only slight wording differences. Some items were modified because

the semantics appeared ambiguous or irrelevant to the marketing context. Finally, items

were added to, and modified in, the list if they were relevant to the buying behavioral

issues or the organizational marketing strategies in the automobile business context. This

method allowed the researcher to learn about buyer's knowledge, beliefs, preferences etc.

about the marketing activities of car manufacturers. This also facilitated to justify some

of extraneous variable and fruitful checks to be imposed.

Items were written to represent each of the attributes for customer brand choice,

satisfaction and loyalty identified in the present study. The language for the items was

taken from the qualitative survey and industry experts responses. Almost items are close-

ended questions because they are easy to answer, take less time to answer, have less

potential to errors, and make comparison, tabulation and analysis easier (Aaker, Kumar,

Day and Leone, 2004). All response ratings were made on a 5-point Likert-type scale.

The items were written in the form of statements or attributes and presented to the

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subjects to respond. Newly developed items as well as translated and back-translated

items formed the questionnaire for the quantitative analysis of the study. The scales used

for measuring various constructs are discussed at the relevant places in the further

section.

Overall, this self-administered questionnaire comprised of three sections: Section-1

concerned ‘About you’ i.e. the demographic part, by which the participants were asked

about their gender, age, education level, occupation, marital status, family income, and

job position. Section-2 comprised of four parts, and was aimed at examining the purchase

process and brand preferences of car buyers. Part-A was for examining how the social,

cultural, personal and psychological contexts influence the purchase behavior of car

buyers. Part-B included all the marketing stimuli (Integrated marketing mix,

segmentation, targeting and positioning) influence the brand choice of the car buyers.

Part-C concerned about other marketing stimuli such as electronic marketing and

customer relationship management to investigate how car manufacturers can save their

marketing efforts and costs by implementing these in their marketing strategies. Whereas,

Part-D investigated the preference for the important concrete/abstract/surrogate attributes

and functional/experiential/symbolic benefits and the brand associations as the

respondents perceive for their present car brands. And finally, Section-3 included items to

evaluate the level of brand satisfaction and effect of various brand satisfaction facets on

overall satisfaction and loyalty intention of the car owners under study.

4.4.2 Pilot Survey

The present study used standardized scales or survey instruments to collect primary data.

These scales were adapted and customized to suit the study undertaken. In order to

customize the measurement instrument, a pilot test was made to confirm the

completeness and importance of each item in the instrument.

Pilot survey was conducted using the questionnaire over 24 car buyers randomly selected

from the list previously supplied by the car dealers. The importance ratings of each item

were given scores of 1 (not important at all) to 5 (very important). The factor structure of

the initial set of items was examined using this sample. Participants completed

questionnaires and responses were anonymous. The sample included 16.7 per cent female

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within 35-45 years of age. In addition, 62.5 per cent respondents owned hatchback in the

compact size and 37.5 per cent having a sedan in the midsized car segment. The

responses were carefully reviewed and analyzed and as per the results subsequent

changes were made in the questionnaire so as to adapt them to the present study. It was

ensured that all the items were relating to car marketing strategies, clearly

understandable, user-friendly, presented in an appropriate manner and free from

ambiguity. Respondents were also asked to comment on the wording of the items. Their

remarks and suggestions had led to further refinement of the questionnaire in terms of the

wording and flow of the items.

Questionnaires returned from the survey were screened for completeness. Data for each

multi-item instrument were analyzed for internal consistency. Based on respondent

feedback and the analyses, seven of the items were omitted from the survey and language

adjustments were made to four additional items. The results indicated that each item

scored 3 or higher in over 82 per cent of the responses, suggesting that no further

wording revision or new items was needed and establishing instrument completeness.

The instrument had a reliability of 0.832. The items are representative of all aspects of

buyer behavior issues and marketing strategies being measured. Therefore, the instrument

possesses content validity.

4.5 Data Collection Method

Convenience of the car owners was pre-checked by making phone calls and the

questionnaires were got filled at the premise suitable to respondents. In some cases the

researcher had a free access to visit the car owners. Some of the respondents desired to

have the questionnaire through e-mail. The filled up questionnaires were collected back

either personally or respondents returned the same though email.

As the questionnaire was self-explanatory the respondents were asked to respond as per

the instructions in the questionnaire. In order to reduce bias and get frank responses from

the respondents, the following precautions were taken:

the respondents were apprised about the purpose of the study;

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an attempt was made to include people from different backgrounds in terms of their

demographics;

the respondents were also assured about the confidentiality of the information and

were asked not to mention their names or the dealership from where they purchased

the car; and

in case of any doubts, the researcher was available to clarify.

4.5.1 Period of Data Collection

It took approximately 5 months in collecting the primary data as the process was started

in the last week of December, 2012 and ended by the last week of May, 2013.

4.6 Demographic Statistic

The basic data and sample distribution of the respondents’ ‘gender’, ‘age’, ‘marital

status’, ‘level of education’, ‘occupation’, ‘family income’ and ‘job position’, from

whom the questionnaire was collected is as below:

4.6.1 Characteristics of the Respondents

Female representation (15.22%) is low as compared to males (84.78%) in the sample.

52.9 per cent of the respondents belonged to business community i.e. self-employed and

40.58 per cent are public or private sector employees, whereas only 6.52 per cent were

those who had retired from their jobs. More than half i.e. 52.9 per cent of the sample

consists of the car owners with annual family income less than ₹ 7 lakhs and 36.96 per

cent upto ₹ 15 lakhs whereas only 10.14 per cent of the respondents have more than ₹ 15

lakhs of income. In the sample 17.39 per cent subjects were with supervisory

responsibilities, and 73.19 per cent were middle level managers and only 9.42 percent

were occupying the job positions of Chief Executive Officer. In addition, 55.07 per cent

of the respondents ranged in age from 35-45 years and more than 60 percent of the

respondents were holding the postgraduate or above degrees (Table 4.4).

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Table 4.4: Car Type/Form and Fuel Variant wise Demographics of the Respondents

Basic Classification

Number of Respondents (Percentage) Total

(N=138) Hatchback Sedan

Petrol Diesel Petrol Diesel

Gender Male 5 (3.62) 52 (37.68) 7 (5.07) 53 (38.41) 117 (84.78)

Female 12 (8.7) 2 (1.45) 6 (4.35) 1 (0.72) 21 (15.22)

Marital

status

Married 6 (4.35) 51 (36.96) 11 (7.97) 54 (39.13) 122 (88.41)

Single 11 (7.97) 3 (2.17) 2 (1.45) 0 (0) 16 (11.59)

Age

< 35 years 2 (1.45) 17 (12.32) 1 (0.72) 2 (1.45) 22 (15.94)

35-45 years 9 (6.52) 31 (22.46) 5 (3.62) 31 (22.46) 76 (55.07)

> 45 years 6 (4.35) 6 (4.35) 7 (5.07) 21 (15.22) 40 (28.99)

Occupation

Employee 9 (6.52) 23 (16.67) 6 (4.35) 18 (13.04) 56 (40.58)

Self-employed 5 (3.62) 29 (21.01) 4 (2.9) 35 (25.36) 73 (52.9)

Retired 3 (2.17) 2 (1.45) 3 (2.17) 1 (0.72) 9 (6.52)

Family

income

< ₹ 7 lakhs 7 (5.07) 43 (31.16) 1 (0.72) 22 (15.94) 73 (52.9)

₹ 7 - ₹ 15 lakhs 9 (6.52) 11 (7.97) 5 (3.62) 26 (18.84) 51 (36.96)

> ₹ 15 lakhs 1 (0.72) 0 (0.0) 7 (5.07) 6 (4.35) 14 (10.14)

Educational

qualification

Diploma or below 2 (1.45) 8 (5.8) 1 (0.72) 3 (2.17) 14 (10.14)

Graduate 3 (2.17) 18 (13.04) 3 (2.17) 17 (12.32) 41 (29.71)

Post graduate or above 12 (8.7) 28 (20.29) 9 (6.52) 34 (24.64) 83 (60.14)

Job Position

CEO 0 (0.0) 0 (0.0) 6 (4.35) 7 (5.07) 13 (9.42)

Department Head 11 (7.97) 40 (28.99) 5 (3.62) 45 (32.61) 101 (73.19)

Supervisor 6 (4.35) 14 (10.14) 2 (1.45) 2 (1.45) 24 (17.39)

Total 17 (12.32) 54 (39.13) 13 (9.42) 54 (39.13) 138 (100)

Further approximately half i.e. 51.45 per cent of the respondents were the pride owners of

hatchback cars. Interestingly, there were more respondents (78.26%) having diesel cars,

out of which maximum car owners were male, in the age group of 35-45 years, holding

the positions of managers and/or self-employed (Table 4.4).

4.7 Data Analysis Methods

The data obtained from the survey questionnaires were coded and fed into the computer

for coding, tabulation and analysis of data. As the questionnaire was not pre-coded, first

the coding of the questionnaire was done and for preparing data for computation, data

definition file was prepared with variable numbers, column numbers, variable codes and

labels. All the items were indexed for final analysis.

SPSS (Version17.0) was used for extensive analysis and statistical tools like χ2 test,

Student’s t-test, analysis of variance (ANOVA) were used for analysis of the data

gathered to bring out the significant influences of study variables amongst compact and

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midsized segment car owners. Correlations and multiple regressions were used to bring

out the significant relationships and effects of study variables on compact and midsized

segment car owners’ buying behavior, satisfaction and loyalty intention. Percentages,

weighted means, grand means and standard deviations were also used to explain the

direction and extent of the significant differences.

4.7.1 Measures Used in the Study

4.7.1.1 Measure of Personal Information

The personal profile included questions regarding the car owners’ personal background

viz. gender, age, marital status, level of education, occupation, family income, and job

position (in case of family/partnership business, level of job position in their business) in

their present organization and ex-job position (in case of retired people).

Internal Consistency Analysis

Internal consistency was used to assess the reliability of the measurements (seven

constructs) depicting the degree to which they indicate a common latent (unobserved)

construct. It relates to the extent to which an experiment, test or any measuring procedure

yields the same results on repeated trials (Bryman and Cramer, 1999). Cronbach’s α-value

is commonly used for this purpose. Values of alpha range from between 0 and 1.0, with

higher values indicating higher reliability. According to Nunnally (1978), Cronbach’s α-

value must be higher than 0.7. The value of each variable, as measured by each

item/statement, is computed using the reliability analysis procedure. Descriptions of the

dependent variables (V1 to V7) those used in the study are shown in Table 4.5.

Table 4.5: Description of the Respondents’ Demographics Related Variables with

Internal Consistency Results

Variable No. Description No. of items/statements α-value

V1 Gender 2 0.8201

V2 Age 3 0.7673

V3 Marital status 2 0.8076

V4 Level of education 3 0.8726

V5 Occupation 3 0.7267

V6 Family income 3 0.9013

V7 Job position 3 0.8761

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The alpha values range from 0.7267 to 0.9013, which indicates an internal consistency

with the alpha value of more than 0.70, so no items were dropped from above list. These

results are therefore acceptable and are a reliable measure of the constructs. Overall, this

section of the instrument has been proven to be an acceptable instrument through this

test.

4.7.2. Measures of Key Variables

Several methods were used to collect information for the study. Measures used in the

study are buyer behavior stimuli, marketing stimuli, brand associations and car owners’

satisfaction and loyalty intention. All the different scales used to measure various study

variables were standardized with adequate reliability and validity. Inter correlations also

showed generally positive relationships. The scales used to measure the various variables

have been delineated below.

In this research, the design of the questionnaire with 26 questions was primarily based on

multiple-item measurement scales taken from previous researches. A single question was

designed to know the name of the brand/model of respondents’ car and one question to

identify the set of activities they engaged themselves in during the process of car

purchase and brand choice. Eight questions to evaluate buyer behavior stimuli, 3

questions to evaluate marketing stimuli, one question to evaluate brand association

(perceived brand positioning) and 3 questions were designed to evaluate car owners’

brand satisfaction and loyalty intention. Two open ended questions were also presented to

seek the comments/suggestions on the car manufacturers and the study questionnaire.

Seven questions were designed related to personal information of the respondents.

4.7.3 For Investigating the Car Buyers’ Buying Behavior and Brand

Preference

This section of the survey questionnaire comprised of four parts and was prepared to

investigate the buying behavior and the influences on brand preference and distributed to

a cross section of compact and midsized segment car owners.

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4.7.3.1 Buyer Behavior Stimuli

The objectives of this part of the study were to examine the effect of marketing strategies

of car manufacturers on the payment method and car fuel variant preferences based on

the demographic characteristics of the respondents and to analyze the influences of

social, cultural, psychological and personal factors/sources and effect of ‘country of

origin’ on the car owners.


Internal consistency was used to assess the reliability of the measurements (nine


construct. Descriptions of the dependent variables (V8 to V16) those used in this part of

the study are shown in Table 4.6.

Table 4.6: Description of the buyer behavior stimuli related variables with internal

consistency results


V8 Process of car purchase and brand choice 9 0.8210

V9 Reasons for buying a car 5 0.7619

V10 Payment method preference 2 0.7812

V11 Fuel variant preference 5 0.8013

V12 Buyers’ role in the car purchase decision 4 0.7348

V13 Sources influencing car purchase decision 25 0.8911

V14 Perceived risks 30 0.8450

V15 Risk decreasing factors 8 0.8751

V16 Country of origin effect 4 0.8313




part of the instrument has been proven to be an acceptable instrument through this test.

4.7.3.2 Marketing stimuli

Having described the buyer behavior stimuli, this part of the second section of the study

was to identify important marketing stimuli for the car brand preference of the car

owners.

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Internal consistency analysis

Internal consistency was used to assess the reliability of the measurements (eight







section of the instrument has been proven to be an acceptable instrument through this

test.

Table 4.7: Description of the Marketing Stimuli Related Variables with Internal

Consistency Results


V17 Product referent 13 0.8164

V18 Task or outcome referent 12 0.8739

V19 User/Surrogate referent 6 0.7692

V20 Customer service 5 0.7737

V21 Price 3 0.8911

V22 Place 4 0.8274

V23 Promotion 7 0.8625

V24 Post purchase 6 0.8836

4.7.3.3 Other Marketing Stimuli

Two of the marketing stimuli ‘electronic marketing’ and ‘customer relationship

management’ were also included along with the marketing mix stimuli to find the

important integrated marketing attributes and their influence on the brand preference

behavior of compact and midsized segment car buyers in this part of the study.


Internal consistency was used to assess the reliability of the measurements (two




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Table 4.8: Description of the Other Marketing Stimuli Related Variables with

Internal Consistency Results


V25 Electronic marketing 4 0.8891

V26 Customer relationship management 10 0.7391




part of the instrument has been proven to be an acceptable instrument through this test.

4.7.3.4 Perceived Brand Positioning

After analyzing the buyer behavior stimuli and integrated marketing stimuli, this last part

of the second section of the study was to investigate how the respondents associated the

car brands with the features and benefits intended in the study.


Internal consistency was used to assess the reliability of the measurements (three




Table 4.9: Description of the Brand Association Related Variables with Internal

Consistency Results


V27 Concrete and abstract attributes 8 0.9241

V28 Direct/Indirect Benefits 8 0.8769

V29 Surrogate Attributes 4 0.8832




part of the instrument has also been proven to be an acceptable instrument through this

test.

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4.7.4 For Investigating the Car Buyers’ Brand Satisfaction and Loyalty

Intention

The objectives of the last section of the study were to analyze the level of satisfaction

among the car owners on ten brand satisfaction facets under study and the effect of these

facets on the respondents’ brand satisfaction and loyalty intention.


Internal consistency was used to assess the reliability of the measurements (fourteen




Table 4.10: Description of the Car Owners’ Satisfaction and Loyalty Intention

Related Variables with Internal Consistency Results


V30 Top three brands considered while purchasing car 12 0.8825

V31 Point of purchase service quality 9 0.8194

V32 Design of the car 11 0.7967

V33 Engine performance 5 0.8832

V34 Comfort and functionality of the car 8 0.8616

V35 Safety 10 0.9217

V36 Quality of the car 7 0.7423

V37 Brand image 7 0.7827

V38 Dealer/after-sale service quality 13 0.8432

V39 Costs of ownership 5 0.8399

V40 Value for money 2 0.8446

V41 Overall brand satisfaction 3 0.8192

V42 Brand loyalty intention 3 0.8764

V43 Future car preference 4 0.7365



results are therefore acceptable and are a reliable measure of the constructs. Overall, the

last section of the instrument has also been proven to be an acceptable instrument through

this test.

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4.8 Limitations of the Study

As limitations are inherent in all research investigations, it is important that these be

brought to light. It should be noted that the current research is also bound by several

limitations, which can be turned into avenues for further analysis.

Methodologically, using a single informant to analyze company marketing strategies can

be regarded as a significant limitation. Studies suggest that significant measurement error

and unreliability may exist in single-respondent measures (Gerhart, 1999). In addition,

the inability to draw a random sample of car owners is a well-known problem facing

researcher using survey methodologies. Since so many male, married, self-employed and

post-graduation or above education degree holder respondents, having diesel cars replied

to the survey and so few female, single, employees and graduation or below education

degree holders having cars with petrol as fuel variant, the survey may not accurately

reflect the perceptions of buyers about car companies operative in India.

There are limitations in the information supplied as well. The study was conducted on the

basis of perceptions of the respondents and observations made by the researcher. Though,

every effort has been made for getting correct responses for each question included in the

schedule but even then the researcher cannot be sure about the possibility of respondents’

bias in reporting while imparting information. Similarly, the researcher may also make

observations according to her own set of mind and, therefore, the prejudices of the

researcher in making observations always influence the rationality of the collected

information. In addition, this research was only concerned with few organizations under

study and thus it is hard to establish whether the marketing strategies also are same in

other organizations. Although this was checked with the extensive literature review

conducted on attributes of marketing plans but cannot be generalized. The concept of

consumer buying phenomenon is also found to be quite complex and consists of a wider

scope than the current research study.

The small sample size should be noted also. The sample of the study is relatively small

and to certain extent confined to NCR-Delhi that poses difficulty in generalization of

results. The respondents’ provided information on their brand choice phenomenon and

perceived influence of car manufacturers’ marketing strategies in regard to the hatchback

134

and sedan cars in compact and midsize segment. Because of this small size, the sampled

companies in the current research may not be sufficiently representative to render a

comprehensive conclusion. Different samples may indeed trigger different results

because the marketing practices differ widely across car segments. Therefore, it is

necessary not only to expand the size of the sample, but also, to cover diverse segments

of the vehicles.

Some caveats also apply to the questionnaire of the study. The questionnaire does not

contain any negative question, and the same scale was used for all the factors so routine

ticking by respondents and its impact cannot be ruled out. Some elements of inaccuracy

might have crept in because of wrong interpretations, of questions on the part of

respondents. The generalizations occurring from this study are more conducive and are

based on the perceptions of a limited particular group of car owners who were included.

These limitations should be duly considered by future researchers in this area.

4.9. Expected Contribution from the Study

By brining to fore the impact of marketing strategies on car buyers, the car manufacturers

will be in a better position to take initiatives for improving effectiveness of their

marketing strategies. This study on the marketing strategies in the post liberalization era

will be of interest to the academicians and researchers on one hand, and the senior

marketing executives and marketing professional of the car manufacturers in India on the

other who are concerned with implementing marketing plans at their organizations. To

the academics, it highlights the role played by the various marketing strategies towards

customer’s perception, attitude and ultimate buying behavior. Clearly, this study should

help the senior marketing executives and marketing professional of car manufacturers in

general and those of the selected companies investigated in this study, in particular in

resolving a series of problems such as selection of appropriate marketing strategies and

innovating in terms of product and marketing techniques from time to time. Both estab-

lished and new entrants might use the synthesis to review efforts underway in both the

multinational and domestic car companies. The purpose of the present study is to

document the experiences of selected car manufacturers, as well as experiences of car

135

buyers. Analysis of such documented information at least gives some idea of strength of

the brand and the effect of the marketing strategy on consumer’s perception.

Moreover, in the post-liberalization scenario of Indian market it is evident that there is

huge growth potential for car manufacturers, as both domestic and multinational

manufacturers, are presented with great challenges and opportunities in the near future.

Industry body SIAM had lowered the growth projections for auto sales in fiscal year

2012, due to high fuel prices, interest rates and slowing economic growth which continue

to defer buyers from car purchases. Thus it is very helpful to determine the car consumer

preferences to determine which segment of the potential consumer market prefers which

model/brand of a car.

Armed with a greater knowledge and understanding of the post liberalized automobile

industry environment, the findings of this study should prove useful to both marketers

and car manufacturers to have a few detailed insights into the factors influencing

consumer preference and choice as the inflation is not under control and the cost of

vehicle ownership is high.

4.10. Organization of the Study

This research is structured as follows:

Chapter I include the introduction to the automobile industry, need for undertaking such

a study along with a brief description of the literature gaps arising out of the

marketing strategies of car manufacturers, focus and framework of the study.

Chapter II is devoted to profile the position of Indian automobile industry in post

liberalization era and includes the detailed analysis of the effects of

globalization, liberalization and deregulation policy of India on the growth of

automobile industry.

Chapter III presents the findings of the literature concerning several key marketing

variables, which have been found to influence the car buyers’ preference,

satisfaction and loyalty intention.

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Chapter IV covers the research methodology including, research design, universe,

survey population and sampling, content analysis, data collection and analysis

as adopted for the present study.

Chapter V of the study presents the micro analysis of the collected data for the study.

Major observations, inferences drawn and findings based on the objective wise

observations are depicted in this chapter of the report.

Chapter VI presents the summary of the findings, conclusions drawn, recommendations

for the car manufacturers and the future research avenues.

Appendices specifying the Research Instrument and Bibliography have been enclosed in

the end of the thesis.

Documents

CHAPTER - IV RESEARCH DESIGN AND …shodhganga.inflibnet.ac.in/bitstream/10603/32756/12/11...116 in the Indian market, the marketing strategies being followed by these players and