Consumer Behavior Towards Hero Honda Splendor Plus

CONSUMER BEHAVIOR TOWARDS Hero Honda Splendor Plus

CONTENTS

CHAPTER :- 1

1) INTRODUCTION

2) SIGNIFICANCE OF THE STUDY

3) NEED OF THE STUDY

4) OBJECTIVITY OF THE STUDY

5) THE TWO-WHEELER SEGMENT IN INDIA

6) METHODOLOGY

CHAPTER:- 2

1) THEORETICAL BACKGROUND OF CONSUMER

BEHAVIOR

CHAPTER:- 3

1) PROFILE OF THE COMPANY

2) PRODUCT PROFILE

CHAPTER:- 4

1) EVALUATION OF THE STUDY

B.R.B. COLLEGE OF COMMERCE, RAICHUR


CHAPTER:- 5

1) FINDINGS

2) SUGGESTIONS

CHAPTER: 6

1) BIBLIOGRAPHY



CHAPTER 1

1.1 Introduction

1.2 Significance of the study

1.3 Need of the study

1.4 Objectivity of the study

1.5 The two-wheeler segment in India

1.6 Methodology



CHAPTER 1

1.1 Introduction

In today’s volatile and fast moving world there is nothing constant

except change, if one adopts a change to the new scenario. One runs the

link the getting of touch with the ground related & these enticing the

competitive edge.

Over the last decade or more the Indian market far product and

service as under going a fundamental change i.e. The market is changing

from a seller market to lower market. Since the start of liberalization

places in the early nineties.

This process has accelerated further and more suppliers are now

trying to move the consumer for the similar products and services in

which consumer has a wider choices.

All this has forced companies to be more focused on the consumer

needs and not just have a product / services by force. Those companies

who have been able to focus better on the needs of the consumer have

obviously faced better than others.



Having opened proverbial “Pandora’s” box the marketing are

wondering not just how to win the customer but also how to retain them.

1.2 Significance of the study

The present study is directed towards consumer behavior towards

Hero Honda Splendor plus in RAICHUR City.

This study is being conducted to know company’s customer more

and serve them better.

1.3 Need of the study

This search has been under taken to know the consumer behavior

provided by the dealer to their customers.

1.4 Objectives of the study

To know consumer behavior of purchasing Hero Honda Splendor

Plus.

To evaluate consumer satisfaction of the Hero Honda Splendor

Plus.

To find out any more improvements to be done to the present

vehicle i.e. Hero Honda Splendor Plus.



To study the present market scenario of the two wheeler industry in

India.

1.5 The two-wheeler segment in India

The automobile industry in India is usually thought of

manufacturer of cars, commercial vehicles & jeeps. Not many realize that

a major components of the industry in manufacturer of two wheelers &

three wheelers which accounts for a gross turn over of about 5000 and

provides direct and indirect employment for about 2,00,000.

Two wheelers are personally owned, they have been instrumental

in transforming. The life style of a large number of people particularly in

the urban areas of India. They cater to a very basic need for individual

transportation.

The growth in the sales of the Two-wheelers in India is therefore a

reliable index of our economic development and progress.

Indian consumer has access to latest information on world class

bikes through media. Due to changing life style, the people are seeking

variety and novelty.



The main product attributes of a bike which consumer perceives

are fuel efficient, convenience, and maintenance free, easy to handle,

simple machine and light weighted, easily controllable and cost effective.

Keeping the above attributes in the mind, each and every two-

wheeler company is trying to reach out more and more customers through

latest models with innovative technologies.

1.6 Methodology

The present study is based on both primary & secondary data. The

company data have been collected through survey method by way of

questionnaire. In India to this, personnel discussion and interviews were

collected. The secondary data have been collected from published and

unpublished records from the concerned institutions.

Here this study is based on questionnaire method with personnel

interview a questionnaire is distributed.



CHAPTER 2

THEORETICAL BACKGROUND OF CONSUMER BEHAVIOR



CHAPTER-2

THEORETICAL ASPECTS OF BEHAVIOR

Introduction

The study of consumer behavior is the study of how individual

make decision to spend there available resources (time, money & effort)

on consumption – related items. It includes the study of what they buy

why they buy it, when they by it, where they buy it, how often they by it

and how often they use it.

Consider a more durable product, such as the Two-wheeler. What

kinds of consumer by fax machines for how use? What features do they

look for? What benefits do they seek? How likely they to replace there

are old models when new models with added features become available?

The answers for these questions can be found through consumer research

and can provide manufactures with important input for product

scheduling, design, modification & promotional strategy.

Although how and why consumer make decision to buy goods and

services consumer research goes far beyond these facts of consumer

behavior and encompasses all of the behaviors that consumers display in



searching for purchasing, using, evaluating, and disposing of products &

services that they except will satisfy their needs.

Marketers must decide at whom to direct their promotional efforts

the buyer or the user. For some products, they must identify the person

who is most likely; to influence the decision who may be neither the

buyer nor the user. Some marketers believe that the buyer of the product

is the best prospect, others believe it is the user of the product, will still

others play it safe by directing their promotional efforts to both buyers

and users.

Consumers behavior was a relatively, new fields of study in the

midrolate 1960’s. With no history or body of research of its own, the

discipline borrowed heavily from concepts developed in other scientific

disciplined, such as psychology (the study of how an individual),

sociology (the study of groups), social psychology (the study of how and

individual operators in groups), anthropology (the influence of society on

the individual) and economics.

Many early theories concerning consumer behavior based on

economics theory, on the notion those individual at rationally to



maximize their benefit (satisfaction) in the purchase of goods and

services.

Consumer

Consumer one who is an actual user of the goods and services, who

express his feeling after actual use, weather the goods & services are up

to his satisfaction or not.

In other words consumer are persons who act in the capacity of

consumers, whether they consume on there own behalf (final consumer)

or consumer’s necessary part of these employments in institutions or

industry.

Consumer Behavior

According to LONDON Della Bitta consumer may be defined as

“The decision process and physical activity individual engage in men

evaluating, acquiring, using or disposing of goods and services”.

According to Webster it may be defined as “All psychological

social and physical behavior of the potential customers as they become

aware of evaluate purchases, consume and other product and services”.



In chart consumer behavior is the act of consuming or using goods

or services. So in consumer behavior we consider not only part of

decision process but also why, after and under what condition the

purchases is needed.

BUYER CHARACTERISTICS

INFLUENCING CONSUMER


Cultural

Cultural

Sub Cultural

Social Class

Social

Reference Groups

Family

Role & Strategies

Personal

Age & Life occupation Economics Circumstance Life Style Personality

Psychological

Motivation Perception Leading Attitudes & Beliefs

BUYER


Cultural Characteristics

The broadest influence on the buyer is the buyer is the buyer

cultural characteristics particularly the buyer’s culture, sub-culture and

social Class identification.

Culture

It is the most fundamental determinant of wants and behavior

whereas of lower creatures is largely by instinct; human behavior is

largely learned. The new baby as it grows up in a society will earn a basic

of socialization involving the family and other key institutions.

Sub-Culture

Each culture contains similar groups or sub-groups and each of

those provides more specific identification and socialization for its

members.

Social Class

Virtually all-human societies exhibit social satisfaction.

Satisfaction may take the form of a caste system where the number of

different castes are reared for certain roles and cannot change their caste

membership.



Social Classes several features.

Persons within given class tends to behave more alike.

It is measured as weighted function of one’s occupation, income,

wealth education, value orientation etc..,

It is continues rather than discrete, with individuals able to move

into a higher social class or drop into a lower one.

Social Characteristics

It includes references group, family and status of the buyer.

Reference groups

These groups influences person’s attitudes, opinions and values.

Some are primary groups such as family; close friends neighbors and

fellow workers and other are secondary groups such as fraternal

organization & professional association. Groups they are not members of

inspirational groups but also influence people. Sports heroes & motive

starts are typical members of these groups.



1. Family

Of all the face groups, a person’s family undoubtedly plays the

largest & most enduring role in influencing has or her attitudes. Opinions

& value from the family the person acquires a mental set not only

towards religion, politics & economics but also towards personal

ambition, self worth & loves. Even if the buyer no longer interacts very

much with his or her family, the family influence on the unconscious

behavior of the buyer can be strong.

2. Role & Statuses

A person participates in many groups through out life family other

reference groups, organizations & institutions.

The person will have a certain position in each group that can be

defined in terms of role & status. Each role has a status attached to it.

This reflects the general esteem according to that role in society or in the

eyes of the immediate group.



III Personal Characteristics

The buyer’s age and life cycle occupation, economic

circumstances, life style & personality also influence a buyer decision.

1. Age and Life Cycle

The concept of family life cycles has been developed to help and

identity possible changing wants, attitudes & values, as people grow

older. Seven stages of the family life cycle have been distinguished.

The Bachelor stage : Young single people

Newly married couples : Young no children

The fullness I : Young married couples with

youngest child under six.

The Fullness II : Young married couples with

youngest Child six or over

The fullness III : Older married couples with

Dependent children

The emptiness : Older married couples with no

children living with them.

The Solitary Survivors : Older single people



2. Occupation

Persons occupation will lead to needs and wants for goods services.

A blue cooler worker will buy work clothes & work shoes. His or her

company president buys expensive goods.



3. Economic Circumstance

People’s economics circumstance will greatly affects the goods &

services they consider & buy. Their circumstance consists of their income

saving & asset, borrowing power & attitude towards spending versus

saving.

4. Life Style

People coming from some sub-culture, social class, and even

occupational group can choose to lead quite different life styles.

Marketers believe that persons products and brand choices are a key

indicator of his or her life style.

5. Personality

Personality describes the organization of the individual

distinguishing character trait attitudes and habits. Each person has a

distinct personality marketed by such traits as their degree of extraversion

versus introversion impulsiveness versus deliberateness, creativity versus

conventionality and activeness versus passiveness.



IV Psychological characteristics

Four major psychological process motivation perception learning

& beliefs & attitudes also influence a person’s buying choice.

a. Motivation

A person will recognize himself or herself as having all kinds of

needs at any point in time. Some needs are, Biogenic need for food,

drink, and bodily comfort.

Psychogenic – such as need for recognition, response or variety of

experience

A motive is stimulated need that it sufficiently pressing to direct

the person towards the goal of satisfying the need.

B. Learning

A motivated person is ready to act. How the motivated person

decides to act is influence by him or her perception of the situation. Two

people in the same motivated state and objective situation may act quite

differently because they perceive the situation differently.



When people act, they experience direct and indirect effect, which

influence there future behavior learning, is the name given to the change

in an individual behavior arising from experience most of behavior is

learned.

C. Beliefs and attitudes

Through the learning process, people acquire there beliefs and

attitudes. These in turn influence there behavior.

A belief is a descriptive though that a person holds about

something manufacturers are very much interested in the beliefs that

people carry in their heads about their products and services.

An attitude describes a person enduring favourable or unfavorable

condition evaluation, emotional, feeling and action tendencies towards

some objects or idea. Attitudes function in people’s level to enable them

to have a fairly consistence behavior towards similar classes of objects.



1. Buyers Characteristics

To understand buyer characteristics we should understand cultural,

social, personal and psychological factors.

2. Products Characteristics

Various characteristics of the product that is quality and backup

services will influence the buying outcome.

3. Seller Characteristics

Characteristics of the seller that is retailer’s knowledge, ability,

friendliness and services will influence the buying outcome.

4. Situational characteristics

Various situational factors that are time pressure, time of the year

weather chance meeting with friends and the current economic outlook

will also influence the buying decision.

All four components of buying situation – buyer products, sellers

and situation interact to product the buying outcome.





CHAPTER 3

1. PROFILE OF THE COMPANY

2. PRODUCT PROFILE



CHAPTER 3

“When the going gets tough gets going. the most menarable,

veetaries are those won in the thought fields. In its fourth year since

liberalization, the Indian market in 1996-97 resembled a battle field,

eager to eliminate the work, & encourage the really hardy” Hero Honda is

one among them.

Hero Honda group on 1800 company which was earlier a Hero.

Group that manufactured bicycle & mopeds, thought of diversification

that is going for the 100 cc bikes.

The association of Hero Honda dates back to 1983 when the Hero

group ensured collaboration with Honda motors company Japan, which

was the major & well – known player in the automobile sectors. They

have 26% shares equally of each group & the rest investment was made

in the farm of share & promoters.

Mr. Ramkanth Munjal the managing director of ‘Hero Honda

group’ was the man behind the success of the company.



The main with dynamic & great foresight & vision has really taken

the Hero Honda to new heights. For Hero Honda Motors Company,

Janpan Collaborates has provided to be very fruitful & eventful.

Under the able guidance of Raman Munhall, Hero Honda group

prospered remarkably well & attained the status of a market leader. Hero

Honda was just head by Mr. Brij (Mohan Lal Munhall, a Delhi based

company) was incorporated in 1984.

The 4 stroke were luck, luck & luck. Says are market watcher who

believes Hero Honda got a license to most money because of FIRODIA

family of Hondas other joint venture pune based Kinetic Honda Ltd.,

opened for a scooter collaborate when offered the first choice in picking

vehicles.

Honda through 1980’s in the Indian market for motor cycles

attitudes seems to have been shaped by technology, which was high-tech

& recognized FOR Indian roads, the 4 stroke 100-cc engine that gave “fill

it, sheet it, forget it” motorbike Hero Honda or Sharp edge other than rest

uniquely positioned is the ultimate fuel-saver on two-wheelers. It causes

up to take hardness out of what was pre-weighted as a motorbike &

machine out of the essential character of a motorbike rider. Leather-



knuckled bikes scoped it at as a namby-pamby two-wheeler providing a

bike. But it proceeded to modifying the product as a sensible transport

option purring into the heart of the consumer who could be “gentle” by

motor cycling standards set by such gis-guzzling as Enfield, Yezdi &

Rajoot. “A motorbike beginning to be accepted as a safe riding vehicle”.

HHML India’s No. 1 motorbike marketer. It has 97.2 c-c Models

styled differently, but all united by the ECO – friendliness of the original

engine.

The direct result of the company’s second 10-year signed in June-

1994 with Honda motors company coming into youth.

Manjals target for HHML one million vehicles per annum before

turning 20th 2006. A large portion will come from its care segment, where

opportunity is no ekes, existing the companies 100 cc motorbikes plant

Dharuhero, Haryana, has been operating 1 Lakhs units in 1993-94 to 1.8

Lakhs, 2.4 Lakhs and now 3 Lakhs units this fiscal years. from past three

years the company has interest 55 crores in the expansion all from

internal accruals.

Ten years ago save petrol was a slogan to CD-100 and other

competitor’s bike was vague in their appeal.



No true, restarts, HHML, which has done much ware, rely on the

technological bonanza. it did some smart rescanning and reengineering on

its 4-storke engine to launch new models. steak cam in 1988 aimed at the

style struck CD – 1011 SS a slightly more rugged version of the original

bike comes three years later, for all train usage. the most recent splendor

plus come in 2003 with a new frame and together look to offer sleeks

styling with CD-100 55 suspensions system.

“All these bikes served the needs of the Indian consumers

beautifully so for”.

In the years HHMl drew on the hero group’s experience with low

cost vendor’s development to luring down its products in part control to

less them a tenth the value. HHML is furiously rising its. Manufacturing

capacity. It had to inject-cost consciousness into all its regular operations.

This was no easy task with the prices of raw material spiraling. By their

experience is aids control costs.

Strict inventory planning has stocking costs too. They don’t make

purchase orders with all studying the overall cost complications to the

vehicles. The give is impressive.



Productivity is up. Seven years ago HHML took 1990 employees

to make 84000 mobiles. Other player have and to bike prices to

accommodate the costs of installing commission control devices, no such

additional cost have to be in curred by Hero Honda.

HHML has soplened its interest burdens and used it smart cash

flow ideas to create a wonderful gap between inflows and outflows.

HHML gets its payments from its buyer in ten days. While it may take as

many as sixty days to send money to its creditors goods dealership mean

that gets some time gets all its money is advance.

The company expects 26-1 rise in turn over, to rupees 800 crore in

996-97 and an 82-1 jump in profit offer taxes, to about Rs. 40 crores.

“The fundamental are strong so the company can offer to take risks. After

impressing capacity and with profits spraying by 55 to 42 crores. A

limited capacity in previous years. Seen its market shares skid from 32-

59. In 1996-97 increased production by 15 / long side its implementation

of Japanese style ‘Just in time’ (JET) manufacturing practices in paying

off. Market shares as improved 36 / and earning per share nearly doubled

to Rs. 25 crores in two years its plants to further increases its capacity by

10 / the company has projected turn over of Rs. 1100 crores and profit by

buyers taxes of 80 crores.





PROFILE OF SITHA ROOM MOTORS:-S

Engine : 4-stroke single cylinder air cooled, OHC.

Displacement : 97.2 cc

Transmission : 4-speed constant mesh

Ignition : electronic

Head light : 12 v 35 / 35 w multi reflector halogen

lamp

Frame : tubular double cradle type

Suspension (front) : telescopic hydraulic fork

Suspension (rear) : hydraulic spring louded type & side

action

Wheel base : 1230 m.m

Ground clearance : 159 m.m

Carb wet : 109 kg

Tire (front) : 2.75*18-4pr

Tire (rear) : 2.75*18-6 pr

Break type : drum type (130 mm diameter)

: Special disk type (240 mm diameter)

Rear : Drum type (110 mm diameter)

Maximum power : 7.5 ps @ 8000 rpm

: 5.5 kw @ 8000 rpm

Maximum speed : 85 km / hour



Fuel tank capacity : 10.5 liter (reserve 1.4 1 ltr)



DEALING PROCEDE OF SITHARAM MOTORS

1. Showroom sales : Where customers approach directly

with sales manager

2. Through marketing : Where dealer has to complete with

Competitors with promotional

Activates like advertisement

Demonstration, displays and road

shows

And test-drives

Separate sales force has been appointed to meet in personal with

the customers. The dealing will be in the following ways.

Limitations of the firms

1) They are authorized to sell only Hero Honda Vehicles and spare

parts

2) They are not able to reach there target sales

3) It has one more difficulty, that the company dumps the product to

its dealer. In order to increase the size of the company, the

company forces the dealers to sell more and hence dumping occurs.



MARKETING STRATEGY AND SALES PROMOTION

CARRIED OUT BY SITHARAM MOTORS

ADVERTISING

Catalogue advertisement

Printing of calendars

Pamphlet advertising

Window display

Banners and posters.

Media



EVALUATION OF THE STUDY

Age groups of respondents

Particulars No. of respondents Percentage

22-30 22 44%

30-40 12 24%

40-50 11 22%

50 & above 05 10%

Total 50 100%

Conclusion

It is obvious from the table that the respondents who is in the age

group of 22-30 yrs has preferred the Hero Honda splendor plus when

compared to other groups. The second place goes to the respondent

whose age group is in between 30 to 40 and their percentage is 24.



Profession of the respondents


Student 28 56%

Employee 15 30%

Others 07 14%

Total 50 100%

Conclusion

Most of the respondents i.e. 56% are from the student group. The

students are more preferred the Hero Honda splendor thus than to other

groups. Due to mileage & comfort of the vehicle they are preferred more.



Respondents influencing buying the vehicles


Price 10 20%

Comfort 20 40%

Maintenance 14 28%

Publicity 06 12%

Total 50 100%

Conclusion

The field survey clearly indicates in the above table that the 40% of

the respondents are of the opinion that they have preferred because of

more comfort 28% respondents have started because of less maintenance.

20% respondents opinion is because of low price they preferred this

vehicle.



Mileage range of the vehicle


4-50 12 24%

50-60 28 56%

60-70 08 16%

70 & above 02 04%

Total 50 100%

Conclusion

The above take clearly reveals that the majority of the respondents

i.e. 60% the of have preferred splendor plus as it give more mileage i.e.

50-60



Suitable of the vehicle on road conditions and climate


Yes 45 90%

No 5 10%

Total 50 100%

Conclusion

The above table clearly indicates that most of the respondents

stated that Hero Honda Splendor vehicle is suitable for our road

conditions & climate.



COA of Maintenance per month


High 10 20%

Low 18 36%

Medium 22 44%

Total 50 100%

Conclusion

By seeing the above table it is clear that the maintenance of the

splendor plus is medium i.e. 44% of the respondents are agreed.



Satisfaction after sales & Service from Dealer


High Satisfied 33 66%

Low Satisfied 03 6%

Medium Satisfied 14 28%

Total 50 100%

Conclusion

The above table clearly specifies that the customers are highly

satisfied from dealers after the sales & service i.e. 66%.



Resale value of the splendor plus


Yes 35 70%

No 10 20%

Cant Say 05 10 %

Total 50 100%

Conclusion

Here it is crystal clear that by seeing the above table the splendor

plus is having a resale value that the 80% of the respondents are agreed.



Awareness of other vehicles in Hero Honda


Yes 46 92%

No 04 8%

Medium 50% 100%

Conclusion

The above table clearly shows that the consumers are aware of

other vehicles in Hero Honda also other them Hero Honda Splendor plus.



Opinion as regards to the style


Satisfactory 15 30%

Good 30 60%

Excellent 05 10%

Medium 50% 100%

Conclusion

The above table shows that as regards to the style of the vehicle,

the consumers i.e. 60% are in the opinion of goods. The 30% consumers

are satisfactory with the style.



CHAPTER- 5

FINDINGS

SUGGESTIONS

SUMMARY OF FINDINGS

1. In the age group of respondents, it has been found that nearly 44%

of the respondents are from the age groups of 22-30.

2. In the profession of respondents, we come across 56% of the

respondents are from the students groups. It has been preferred due

to mileage & comfort of the vehicle

3. In the influencing factor of buying the vehicle, it has been found

that nearly 40% of the respondents are influenced by the comfort of

the vehicle.

4. In the mileage range of the vehicle, we came across nearly 56% of

the respondents say the mileage range of the vehicle is around 50-

60 km/lit.

5. In the suitability of the vehicle on road conditions & climate, we

can see nearly 90% of the respondents saying yes.

6. In the cost of maintenance, it is found that 44% of the respondents

saying that the cost of maintenance of vehicle per month is

medium.



7. In the satisfaction after sales & service from dealer sector, we can

see around 66% of the respondents are highly satisfied after the

sales & services.

8. In the Resale value of splendor plus, it is found that nearly 80% of

the respondents say “Yes”.

9. In the awareness of other vehicles in Hero Honda, it is found that

nearly 92% of the respondents are aware of other vehicles in Hero

Honda.

10.In the opinion as regards to style of the vehicle, we came across

nearly 60% of the respondents say the style of the vehicle is well

and good.



SUGGESTIONS & RECOMMENDATIONS

Since there is an increasing demand for Hero Honda Splendor Plus

in the Market. I hereby suggest that.

Good Positioning of Hero Honda splendor plus is to be done to the

target group to increase sales of volume and market shard.

In order to promote sale of vehicle the company should under take

massive advertisement through different medias. As there is a cut

throat competition from the rivals in the market, advertisement is a

must.

I suggest that Hero Honda splendor plus should promise excellent

sales service to the customers which will plus point to the company

brand image.

The mileage given by the Hero Honda (Splendor plus) is medium

compared to other two-wheelers. Therefore, I suggest that the

company should increase mileage of the Hero Honda (Splendor

plus) by adopting the latest technology in order to increase the sale

volume.


Documents

Consumer Behavior Towards Hero Honda Splendor Plus