Consumer Perception of a-segment Car Buyers in Southern India

8/7/2019 Consumer Perception of a-segment Car Buyers in Southern India

1/56

1

CONSUMER PERCEPTION OF A-SEGMENT CAR BUYERS IN

SOUTHERN INDIA

In partial fulfillment of the requirement for the award of the degree in Master of Business Administration

Submitted by

SAKTHI ANANTH B

Thesis ID:FW/2007-09/HR-24

PGP/FW/07-09/HR

Under the esteemed guidance of

Mrs.Gowri Kailasam

(Vice President, Rane Madras Ltd)

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

IIPM TOWER, 145, MARSHALLS ROAD, EGMORE, CHENNAI 600008


2/56

2

ABSTRACT

Since Independence production of vehicles in India has grown rapidly. Passenger cars

and utility vehicles are the main segments of the Indian passenger vehicle industry. Within the

passenger car segment, the mini and compact segment together accounts for around 80% of

total volumes. While this is the case, major automobile companies in the world entering the

Indian auto market and focus on the small car segment.

Owning a car is t h e aspiration of every household in India and increasing income

levels gives more opportunity in the passenger cars market. At present, around 30 out of

every 1,000 households in India own a car when compared to the global standards it is very

low. Even if the households that can afford owning a car are considered, the penetration is as

low as 45 per cent. Having said this, of the households affording a car, around 70 per cent

fall at the bottom of the income distribution pyramid and can afford owning a small car

only. Furthermore, the excise duty on small car is lower at 8% as against 20% on big cars. This

would translate into strong growth in the small car segment. The factors like households

affording big cars but opting for small cars on account of their easier maneuverability given

t h e t r a f f i c c o n d i t i o n , parking constraints in metros, poor infrastructure and congested

agglomerations in smaller towns would help pushing the small car sales growth. Furthermore,

rich households opting for small cars as their additional cars either for female or young

members in the family or for smaller trips would also push small car sales.

This study is aimed at understanding the need of a person from Southern India & what

he is looking from the side of car manufacturer. As a primary research initiative, a questionnaire

has been distributed to various people, mostly targeting the younger population of Southern

India. This thesis brings out the changing trends in the market and among the potential

customers. It also points out what need to be done from the manufacturers end.


3/56

3

ACKNOWLEDGMENTS

Its a pleasure to thank the people who have involved themselves and made this thesis possible.

At the outset, I would like to thank my guide, Mrs. Gowri Kailasam (VP-Rane Madras Limited),

who has supported me to a great extent in completing the thesis. I appreciate her enthusiasm and

dedication shown from the start till the end of the thesis work.

I profusely thank Prof. R. Krishnan, Dean-IIPM, who has been very prompt and supportive

during this time.


4/56

4

TABLE OF CONTENTS

ABSTRACT ...................................................................................................................................................... 2

ACKNOWLEDGMENTS ................................................................................................................................... 3

1.1 INTRODUCTION ....................................................................................................................................... 9

1.2 SCOPE OF THIS STUDY ........................................................................................................................... 10

1.3 NEED AND IMPORTANCE OF THE STUDY .............................................................................................. 10

1.4 OBJECTIVES OF THE STUDY ................................................................................................................... 11

2.1 REVIEW OF LITERATURE ........................................................................................................................ 13

2.2 EXPORT SALES ....................................................................................................................................... 15

2.3 MARKET SHARE OF PASSENGER CARS .................................................................................................. 16

3.1 RESEARCH METHODOLOGY .................................................................................................................. 18

3.2 RESEARCH DESIGN ................................................................................................................................ 18

3.3 DATA COLLECTION ................................................................................................................................ 18

3.4 PRIMARY DATA...................................................................................................................................... 18

3.5 SECONDARY DATA ................................................................................................................................. 18

3.6 DESCRIPTIVE RESEARCH DESIGN ........................................................................................................... 19

3.7 INFORMATION REQUIRED ..................................................................................................................... 19

3.8 RESEARCH PLAN .................................................................................................................................... 20

3.9 STATISTICAL TOOLS ............................................................................................................................... 20

3.10 DATA ANALYSIS AND INTERPRETATION .............................................................................................. 21

3.11 PERCENTAGE ANALYSIS ....................................................................................................................... 21

3.12 LANGUAGE SPOKEN TO THE RESPONDENTS ...................................................................................... 21

3.13 TYPE OF OFFERS AT THE TIME OF PURCHASE ..................................................................................... 23


5/56

5

3.14 INFLUENCING FACTORS ...................................................................................................................... 25

3.15 AWARENESS FACTORS OF THE RESPONDENTS ................................................................................... 27

3.16 FREQUENCY OF FAMILY TO GO OUT ................................................................................................... 29

3.17 MONTHLY EXPENDITURE FOR TRANSPORTATION .............................................................................. 31

3.18 APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR ............................................................................ 33

3.19 OPINION ABOUT THE FOLLOWING THINGS WOULD NOT LIKE TO COMPROMISE ............................. 35

3.20 EXPECTING THE MILEAGE PER LITER ................................................................................................... 37

3.21 KIND OF FUEL ENGINE TO GO FOR...................................................................................................... 39

3.22 CHI-SQUARE TABLE ............................................................................................................................. 41

3.23 SEX AND OPINION TOWARDS THE CAR .............................................................................................. 41

3.24 AWARENESS LEVEL AND OPINION TOWARDS THE CAR ..................................................................... 43

3.25 TRAVELING THE AVERAGE KM PER DAY AND OPINION TOWARDS THE CAR ..................................... 45

3.26 TYPE OF FUEL AND OPINION TOWARDS THE CAR .............................................................................. 47

4.1 FINDINGS ............................................................................................................................................... 50

4.2 SUGGESTION AND RECOMMENDATIONS ............................................................................................. 51

4.3 CONCLUSION ......................................................................................................................................... 53

BIBLIOGRAPHY ............................................................................................................................................ 54

ANNEXURE .................................................................................................................................................. 55


6/56

6

LIST OF TABLES

TABLE NO. TABLE NAME PAGE NO.

1.1 INTRODUCTION 11

2.1 MARKET SHARE OF PASSENGER CARS 18

3.1 LANGUAGE SPOKEN TO THE RESPONDENTS 23

3.2 TYPE OF OFFERS AT THE TIME OF PURCHASE 25

3.3 INFLUENCING FACTORS 27

3.4 AWARENESS FACTORS OF THE RESPONDENTS 29

3.5 FREQUENCY OF FAMILY TO GO OUT 31

3.6 MONTHLY EXPENDITURE FOR TRANSPORTATION 33

3.7 APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR 35

3.8 OPINION ABOUT THE FOLLOWING THINGS WOULD

NOT LIKE TO COMPROMISE

37

3.9 EXPECTING THE MILEAGE PER LITER 39

3.10 KIND OF FUEL ENGINE TO GO FOR 41

3.11 SEX AND OPINION TOWARDS THE CAR 43

3.12 AWARENESS LEVEL AND OPINION TOWARDS THE CAR 45

3.13 TRAVELING THE AVERAGE KM PER DAY AND OPINION

TOWARDS THE CAR

47

3.14 TYPE OF FUEL AND OPINION TOWARDS THE CAR 49


7/56

7

LIST OF CHARTS

CHART NO. CHART NAME PAGE NO.

2.1 EXPORT SALES 17

3.1 LANGUAGE SPOKEN TO THE RESPONDENTS 24

3.2 TYPE OF OFFERS AT THE TIME OF PURCHASE 26

3.3 INFLUENCING FACTORS 28

3.4 AWARENESS FACTORS OF THE RESPONDENTS 30

3.5 FREQUENCY OF FAMILY TO GO OUT 32

3.6 MONTHLY EXPENDITURE FOR TRANSPORTATION 34

3.7 APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR 36



38

3.9 EXPECTING THE MILEAGE PER LITER 40

3.10 KIND OF FUEL ENGINE TO GO FOR 42


8/56

8

CHAPTER 1


9/56

9

1.1 INTRODUCTION

The compact car (A-segment) is intensely competitive with the presence of seven

players with as many 16 offerings. The segment has also witnessed the highest number of

launches over the past two year s with major ones being Ritz, A-Star, Zen Estilo (from

MSIL), i10, i20 (from HMIL) and Indica Vista, Nano (from Tata Motors Limited - TML).

Overall, the top three market players in the passenger car segment MSIL, HMIL and TML -

currently dominate the segment. Over a period of time however, this A-segment is likely to

witness some fragmentation as it attracts new players and more aggressive model launches. In

2010, this segment is likely to witness the entry of General Motors, Volkswagen, Ford India

and Nissan. Going forward, all serious players in the Indian market are expected to introduce

products in the compact segment, leading to some fragmentation of the overall segment. In

terms of market share, the top four players currently account for 87.2% of the total volumes

with the rest being spread amongst 14 other players. The overall market share for the top

players is likely to get further fragmented since a number of global majors have significant plans

for the Indian market.

In the other hand the Consumers in Southern India adopted wait and watch approach.

Since the cash flow has been drastically affected because of the economic slowdown,

consumers are increasingly price conscious at the same time they are not willing to give up on

their comfort. The market potential and market intensity index is low comparing to North and

Western parts of India.


10/56

10

1.2 SCOPE OF THIS STUDY

This thesis would be a guide line for every manufacturer who brings Segment-A cars in

Indian Market. It would bridges the gap between the customer expectation and affordability of

the manufacturing company.

1.3 NEED AND IMPORTANCE OF THE STUDY

In 2007, India became the 9th largest passenger car producer of the world and the 12th

fastest growing market. In India, the entry level car segment starts in the price range of

Rs.2, 00,000-3, 00,000 and has traditionally been dominated by MSIL but this trend would be

changing soon since many global player are trying the capture the small car market. While the

growth in the domestic car market is expected to remain healthy, the larger choice available to

customers could necessitate aggressive selling efforts, which may in turn result in higher cost

per unit and delays in break evens.


11/56

11

1.4 OBJECTIVES OF THE STUDY

To identify the attributes of various A-segment cars that influences on an individuals

choice among alternatives

To identify the level of preference on petrol cars and diesel cars

To identify the reason for the brand preference over the competing brands

To find out the consumer behavior on various attributes of the products

To find out the consumer satisfaction level on service provided by the dealers and also

towards their product


12/56

12

CHAPTER 2


13/56

13

2.1 REVIEW OF LITERATURE

A few studies have already been made pertaining of self-perception in general and

relation to the settings. Some of the important studies on the related have been received here.

Dr. Ramamoorthy, K., and Dr. Ponnuraj, S., (2001)1conducted the study on Passenger

perception of omnibus servicesAn analysis. This study highlighted that The Omni buses are

lower a refreshing contrast to the government owned buses. The Omni bus operators constantly

endeavor to improve the quality of their services. They aim at passenger comforts and keep their

buses clean. Since their buses are well maintained, breakdowns rarely occur. They are time

conscious. Though they charge higher fare, the public patronize them as their service is good.

Mr. Ratan N. Tata said2, I observed families riding on two-wheelers the father driving

the scooter, his young kid standing in front of him, his wife seated behind him holding a little

baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of

transport for such a family

My View: Most families in India have 2 or more children whereby it is highly impossible for

them to own a four wheeler, this being the case they end up using the public transport or travel in

the two wheeler without any safety. This kind of journey causes pain to the head of the family.

To overcome all these pain & difficulties TATA Motors came up with a new car at an affordable

price for every family who owns a two-wheeler and always dream about buying a car.

1Dr.K.Ramamoorthy and Dr.S.Ponnuraj, Passenger perception of Omnibus Servces An Analysis, Indian

Journal of Transport Management, Vol. 25, No.6 Oct. Dec. 2001 P.5552

Interview to media on 10th January 2008


14/56

14

Mark Fields, Fords President for US said3One of every four cars sold worldwide is a small car

My View: Statement comes at a time when the sales of small cars are high in number than the

combined sales of mid size and luxury car segment. Ford also planning to launch numerous small

cars worldwide whereby it regain its original place in the Industry.

Kevin Wale, President and Managing Director of the GM China Group said4 Our

mission has always been to enable more individuals and families to realize their dream of

owning a car,

My View: Mr. Kevin Wale statement made on news channel shows the importance in the

growing Asian market. Since many companies started joint ventures to produce small cars, this

shows that there would be many models rolling out in the entry segment. Dream of GM & TATA

Motors are the same, they have seen and realized there is a need which they would like to utilize

upon.

3Statement to press January 11, 2010 European Auto Expo

4www.publish.media.gm.com/content/media/cn/en/news/news_detail.brand_gm.html


15/56

15

2.2 EXPORT SALES

CHART NO.2.1 : EXPORT SALES

My View: This chart shows how the A-Segment car dominates the export market.

Source: SIAM


16/56

16

2.3 MARKET SHARE OF PASSENGER CARS

2006-07 A ril-Jan 2007-08 A ril-JanMaruti 45.6 48.1H undai 25 24.8Tata Motors 15.2 12.7Honda Siel 4.6 4.1GM 1.3 3.2Ford 5.2 2.5Others 3.1 4.6TABLE : 2.1 : MARKET SHARE OF PASSENGER CARS

My View: The above trend would not last long because GM, Honda & Ford are about to

launch their small cars in Indian market by early 2010, this would change the top 3 positions in

the chart.

Source: ACMA


17/56

17

CHAPTER 3


18/56

18

3.1 RESEARCH METHODOLOGY

3.2 RESEARCH DESIGN

It is a conceptual structure within which research has been conducted. Thus the

preparation of such a design facilitates research to be as efficient as possible and will yield max

information.

3.3 DATA COLLECTION

In a broader sense we can say that two types of data are available to a researcher. They are:-

Primary Data

Secondary Data

3.4 PRIMARY DATA

Data are collected for the first time for a specific purpose in mind using the questionnaire method.

Questionnaire collected through personal contact.

3.5 SECONDARY DATA

The data that already collected and published are referred through the company sales guide and

websites.


19/56

19

3.6 DESCRIPTIVE RESEARCH DESIGN

Descriptive research design includes surveys and fact findings, enquires of different

kinds. The major purpose of Descriptive research is description of state of affairs, as it exists at

present. In social business research we quiet often use the term Ex post facto research for

descriptive studies.

The main characteristics of this method are that the researcher has no control over the

variable; he can only report what has happened or what is happening. Most Ex post facto

research projects are used for descriptive studies in which the researcher seeks to measure such

items, for example, frequency of shopping, and consumer preferences on products or services.

Descriptive Research method will be applicable to the existing problem. Here the study is

conducted for a fact i.e., to know the Customer perception on A-segments cars. So the process

was conducted through questionnaire.

3.7 INFORMATION REQUIRED

Demographic profiles of the respondents

Information on factors influencing respondents while choosing a particular brand

of car. On which brand the respondents are interested in and the reason why they

are stick on to the particular brand. Whether they will switch over to other brands


20/56

20

3.8 RESEARCH PLAN

Data source : Primary and Secondary data

Research Approach : Survey method

Research Instrument : Questionnaire

Contact method : Direct Person

Sample size : 150

3.9 STATISTICAL TOOLS

To analyze the data the following tools were applied:

Percentage Analysis Weighted average


21/56

21

3.10 DATA ANALYSIS AND INTERPRETATION

3.11 PERCENTAGE ANALYSIS

3.12 LANGUAGE SPOKEN TO THE RESPONDENTS

S.No. LanguageNo.of

RespondentsPercentage

1. Tamil 123 82.0

2. Malayalam 12 8.0

3. Telugu 8 5.3

4. Kanada 0 0

5. Other 7 4.7

Total 150 100.0

TABLE NO.3.1 : LANGUAGE SPOKEN TO THE RESPONDENTS

IMPRESSION

It could be inferred from the above table that 82.0% of the respondents are speak to tamil

language, 8.0% of the respondents are speak malayalam, 5.3% of the respondents are speak

telugu and 4.7% of the respondents are speak to other languages.

It is concluded from the analysis that majority (82.0%) of the respondents are speak to

tamil language.


22/56

22

CHART NO.3.1: LANGUAGE SPOKEN TO THE RESPONDENTS


23/56

23

3.13 TYPE OF OFFERS AT THE TIME OF PURCHASE

S.No. OffersNo. of


1. Fashion Gifts 30 20.0

2. Extra Accessories 58 38.7

3. Free service coupon 34 22.7

4. Cash discount 28 18.7

Total 150 100.0

TABLE NO.3.2 : TYPE OF OFFERS AT THE TIME OF PURCHASE

IMPRESSION

It is clear from the above table that 20.0% of respondents are opined that fashion gifts are

most preferable offer at the time of purchase, 38.7% of respondents are opined that extra

accessories, 22.7% of the respondents are opined that free service coupon and the remaining

18.7% of the respondents are opined that cash discount.

It is concluded from the analysis that majority (38.7%) of respondents are opined that

extra accessories are most preferable offer at the time of purchase.


24/56

24

CHART NO.3.2 : TYPE OF OFFERS AT THE TIME OF PURCHASE


25/56

25

3.14 INFLUENCING FACTORS

S.No. FactorsNo. of


1. Dealer 15 10.0

2. Family & friends 49 32.7

3. Advertisement 24 16.0

4. Brand name 62 41.3

Total 150 100.0

TABLE NO.3.3 : INFLUENCING FACTORS

IMPRESSION

The above table shows that among 150 respondents, 10.0% of the respondents are

influenced by dealers, 32.7% of the respondents are influenced by their family & relatives,

16.0% of the respondents are influenced by advertisement and (41.3%) of the respondents are

influenced by brand name.

It is concluded from the analysis that majority (41.3%) of the respondents are influenced

by brand name.


26/56

26

CHART NO.3.3 : INFLUENCING FACTORS


27/56

27

3.15 AWARENESS FACTORS OF THE RESPONDENTS

S.No. Factors Low Medium High

1. Competitor vehicle33

(22.0)

74

(49.3)

43

(28.7)

2. Specification in the vehicle24

(16.0)

64

(42.7)

62

(41.3)

3. Features in the vehicle12

(8.0)

58

(38.7)

80

(53.3)

TABLE NO.3.4 : AWARENESS FACTORS OF THE RESPONDENTS

IMPRESSION

From the above table it is cleared as follows :

Majority (49.3%) of the respondents are medium level of awareness for the competitor

vehicle

Majority (42.73%) of the respondents are medium level of awareness for the specificationin the vehicle

Majority (53.3%) of the respondents are high level awareness for the features in the

vehicle


28/56

28

CHART NO.3.4 : AWARENESS FACTORS OF THE RESPONDENTS


29/56

29

3.16 FREQUENCY OF FAMILY TO GO OUT

S.No. FrequencyNo. of


1. Occasionally 41 27.3

2. Moderate 75 50.0

3. Frequent 34 22.7

Total 150 100.0

TABLE NO.3.5 : FREQUENCY OF FAMILY TO GO OUT

IMPRESSION

The above table shows that out of 150 respondents, 27.3% of the respondents are

occasionally to go out, 50.0% of the respondents are moderate to go out the family and 22.7% of

the respondents are frequently to go out for their family.

It is concluded from the analysis that majority (50.0%) of the respondents are moderate to

go out the family


30/56

30

CHART NO.3.5 : FREQUENCY OF FAMILY TO GO OUT


31/56

31

3.17 MONTHLY EXPENDITURE FOR TRANSPORTATION

S.No. ExpenditureNo. of


1. Below Rs.1500 30 20.0

2. Rs.1500 to 5000 86 57.3

3. Above Rs.5000 34 22.7

Total 150 100.0

TABLE NO.3.6 : MONTHLY EXPENDITURE FOR TRANSPORTATION

IMPRESSION

It is cleared from the above table that 20.0% of the respondents are spend below Rs.1500

for transportation, 57.3% of the respondents are spendRs.1500-5000 for transportation and

22.7% of the respondents are spend above Rs.5000 for transportation.

It is concluded from the analysis that majority (57.3%) of the respondents are

spendRs.1500-5000 for transportation.


32/56

32

CHART NO.3.6 : MONTHLY EXPENDITURE FOR TRANSPORTATION


33/56

33

3.18 APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR

S.No. PriceNo. of


1. Rs.90000 to 1 lakh 5 3.3

2. 1 lakh to 2.5 lakhs 41 27.3

3. 2.5 lakhs to 4 lakhs 70 46.7

5. 4 lakhs & above 34 22.7

Total 150 100.0

TABLE NO.3.7 : APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR

IMPRESSION

It is observed from the above table that 3.3% of the respondents are opined that the

appropriate price is Rs.90000 to 1 lakh, 27.3% of the respondents are opined that the appropriate

price is 1 lakh to 2.5 lakh, 46.7% of the respondents are opined that the appropriate price is 2.5

lakh to 4 lakh and 22.7% of the respondents are opined that the appropriate price is 4 lakh and

above.

It is concluded from the analysis that majority (46.7%) of the respondents are opined that

the appropriate price is 2.5 lakh to 4 lakh.


34/56

34

CHART NO.3.7 : APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR


35/56

35



S.No. OpinionNo. of


1. Price 28 18.7

2. Safety feature 71 47.3

3. Design (Interior &

Exterior)

25 16.7

4. Engine performance

(Also speed)12 8.0

5 Maintenance 12 8.0

6 Others 2 1.3

Total 150 100.0

TABLE NO.3.8 : OPINION ABOUT THE FOLLOWING THINGS WOULD NOT LIKE TO

COMPROMISE

IMPRESSION

It is suggested from the above table that 18.7% of the respondents are not compromise to

price, 47.3% of the respondents are not compromise to safety features, 16.7% of the respondents

are not compromise to design (Interior and exterior), 8.0% of the respondents are not

compromise to engine performance (also speed) and maintenance and only 1.3% of the

respondents are not compromise to other factors.

It is concluded from the analysis that (47.3%) of the respondents are not compromise to

safety features.


36/56

36

CHART NO.3.8 : OPINION ABOUT THE FOLLOWING THINGS WOULD NOT LIKE

TO COMPROMISE


37/56

37

3.20 EXPECTING THE MILEAGE PER LITER

S.No. OpinionNo. of


1. 6-10 (Superfast cars) Km 5 3.3

2. 11-14 Km 92 61.3

3. 15 & above Km 53 35.3

Total 150 100.0

TABLE NO. 3.9 : EXPECTING THE MILEAGE PER LITER

IMPRESSION

It is explained from the above table that 3.3% of the respondents are expected 6-10km per

liter, 61.3% of the respondents are expected 11-14 km per liter and 35.3% of the respondents are

expected 15 and above km per liter.

It is concluded from the analysis that majority (61.3%) of the respondents are expected

11-14 km per liter.


38/56

38

CHART NO.3.9 : EXPECTING THE MILEAGE PER LITER


39/56

39

3.21 KIND OF FUEL ENGINE TO GO FOR

S.No. OpinionNo. of


1. Diesel 59 39.3

2. Petrol 52 34.7

3. CNC 16 10.7

4. Duel Fuel 23 15.3

Total 150 100.0

TABLE NO.3.10 : KIND OF FUEL ENGINE TO GO FOR

IMPRESSION

It is observed from the analysis that 39.3% of the respondents are using diesel, 34.7% of

the respondents are using petrol, 10.7% of the respondents are using CNC and 15.3% of the

respondents are using duel fuel.

It is concluded from the analysis that majority (39.3%) of the respondents are using diesel

for their car.


40/56

40

CHART NO.3.10 : KIND OF FUEL ENGINE TO GO FOR


41/56

41

3.22 CHI-SQUARE TABLE

3.23 SEX AND OPINION TOWARDS THE CAR

Null Hypothesis (H0) - There is no significant relationship between sex and

opinion towards the car

Alternative Hypothesis (H1) - There is close significant relationship between sex

and opinion towards the car

S.

No.

Sex

Opinion towards the car

Total

Excellent Good Poor

1 Male 36 48 23 107

2 Female 1 24 18 43

Total 37 72 41 150

TABLE 3.11 : SEX AND OPINION TOWARDS THE CAR


42/56

42

RESULT :

Calculated 2 Value = 17.619

Degree of Freedom = 2

Table value = 5.991

Significant level = Significant at 5% level

IMPRESSION

It is obvious from the above result that calculated chi-square value greater than the table

value. Hence, Null Hypothesis accepted. So, we conclude that, there is a close significant

relationship between sex and opinion towards the car.


43/56

43

3.24 AWARENESS LEVEL AND OPINION TOWARDS THE CAR

Null Hypothesis (H0) - There is no significant relationship between

awareness level and opinion towards the car

Alternative Hypothesis (H1) - There is close significant relationship between

awareness level and opinion towards the car

S.

No.

Awareness

level


Total

Excellent Good Poor

1 Low 8 8 7 23

2 Medium 16 32 30 78

3 High 13 32 4 49

Total 37 72 41 150

TABLE 3.12 : AWARENESS LEVEL AND OPINION TOWARDS THE CAR


44/56

44

RESULT :



Table value = 9.488


IMPRESSION



relationship between awareness level and opinion towards the car.


45/56

45

3.25 TRAVELING THE AVERAGE KM PER DAY AND OPINION

TOWARDS THE CAR

Null Hypothesis (H0) - There is no significant relationship between

traveling the average km per day and opinion

towards the car

Alternative Hypothesis (H1) - There is close significant relationship between

traveling the average km per day and opinion

towards the car

S.No. Opinion


Total

Excellent Good Poor

1 40km 7 19 2 28

Total 37 72 41 150

TABLE 3.13 : TRAVELING THE AVERAGE KM PER DAY AND OPINION TOWARDS THE CAR


46/56

46

RESULT :



Table value = 9.488


IMPRESSION



relationship between traveling the average km per day and opinion towards the car.


47/56

47

3.26 TYPE OF FUEL AND OPINION TOWARDS THE CAR

Null Hypothesis (H0) - There is no significant relationship between type of

fuel and opinion towards the car

Alternative Hypothesis (H1) - There is close significant relationship between type

of fuel and opinion towards the car

S.

No.

Fuel


Total

Excellent Good Poor

1 Diesel 8 32 19 59

2

Petrol

17 19 16 52

3 CNG 7 6 3 16

4 Duel fuel 5 15 3 23

Total 37 72 41 150

TABLE 3.14 : TYPE OF FUEL AND OPINION TOWARDS THE CAR


48/56

48

RESULT :



Table value = 12.592


IMPRESSION



relationship between type of fuel and opinion towards the car.


49/56

49

CHAPTER 4


50/56

50

4.1 FINDINGS

It is observed from the analysis that majority (82.0%) of the respondents are speakingtamil language

It is clear from the analysis that majority (38.7%) of respondents are opined that extraaccessories are the most preferable offer at the time of purchase

It is stated from the analysis that majority (41.3%) of the respondents are influenced bybrand name

Majority (49.3%) of the respondents are having medium level of awareness for thecompetitor vehicle

Majority (42.73%) of the respondents are having medium level of awareness for thespecification in the vehicle

Majority (53.3%) of the respondents are having high level awareness for the features inthe vehicle

It is found from the analysis that majority (50.0%) of the respondents are moderate to goout with their family

It is clear from the analysis that majority (46.7%) of the respondents are opined that theappropriate price is 2.5 lakhs to 4 lakhs

It is suggested from the analysis that majority (61.3%) of the respondents are expecting11-14 km per liter

It is explained from the analysis that majority (39.3%) of the respondents are using dieselfor their car

There is a close significant relationship between sex and opinion towards the car There is a close significant relationship between awareness level and opinion towards the

car

There is a close significant relationship between traveling the average km per day andopinion towards the car

There is a close significant relationship between type of fuel and opinion towards the car


51/56

51

4.2 SUGGESTION AND RECOMMENDATIONS

Most of the respondents are not aware of the price level of A-segment cars. Because ofthat they (especially upper middle class customers) perceived car is too costly to afford.

This reason majorly influences some respondents to go for competitors brand. So proper

communication can be given to the public and proper positioning (price) can be done in

order to remove the constraint. (Psychological Positioning)

Many of the respondents opinion are that Tata Sumo vehicles are more spacious.Because the outer view of the Tata Sumo vehicles looks very bigger than A-segment cars.

It is the running advantage for the competitor, that they had positioned their product

which having bigger inside space even though it had smaller space. So the company can

clearly differentiate the product, features and space aspect

Though the cars are giving good mileage in long distance travelling, the mileage withinthe city limit travelling is less. So the company can try to improve the mileage level, so

that the sales can be improved

The company can work on diesel versions in the cars. Because of day-to-day increase infuel price, many of them are preferring diesel version cars to save the fuel costs in long

run

The company can open more service outlets at various places apart from dealers point bygiving franchise to outsiders. So that the service network can be expanded rapidly this

aids the company to satisfy the respondents expectation which may leads to increase


52/56

52

The company can go for providing plus 1 service to the respondents in order to delightthe respondents. Birthday wishes through cards or telephone, Yearly get together of

consumers at Dealership point with entertainment and competitions, Free General Check

up camps for the product. So that in the long run it creates more references and consumer

base. And it enhances relationship marketing

Care should be taken to improve the service efficiency that aids to retain the existingrespondents

The company can also think on providing low price models in order to cover all the classof respondents from middle class to upper middle class respondents and also to compete

with existing players in the market


53/56

53

4.3 CONCLUSION

In this competitive world, every company has to make valuable decision for profit

maximization through sales maximization. Every organization should strive to make consumer

satisfaction its work culture. In order to ensure development of such a culture, the initiative has

to come from the top management who, by their thinking, direction and action, should convey

clear message down the line without any ambiguity. It should not happen that the organization

keeps this lofty objective only for publicity and lip service and actual actions are oriented in

some other directions. The management should ensure that the staffs are trained to service the

customer in a way that leaves a lasting impression on him.

In the automotive industry, service differentiation only highlights the company from the

competitors. The project is done for A-segment cars. The project identifies the Consumer

perception of A-segment cars. It also provides some strategies to increase consumer preference

on A-segment cars and makes the consumers satisfied and loyal.

The organization should ensure that its systems like quality, performance, service and

compliant cell are designed to achieve excellence and customer delight.


54/56

54

BIBLIOGRAPHY

KOTHARI C.R., Research Methodology, Wishwa Prakasam, New Delhi, 1999

KOTLER PHILIP, Marketing Management, Prentice hall of India Pvt. Ltd., NewDelhi, 2000

TOP GEAR Magazine (Editions between 2008 to 2009)

WWW.CARWALE.COM

CAR & BIKE SHOW NDTV

OVERDRIVE Magazine (Editions in 2009)


55/56


56/56

Q6) Your monthly expenditure for transportation?

< Rs1500 Rs1500 to 5000 >Rs5000

Q7) What would be appropriate price (Rs) tag for this segment car?

90000 to 1Lakh 1lakh to 2.5 lakh 2.5lakh to 4lakh 4lakh & above

Q8) Which of the following things you would not like to compromise on?

Price Safety feature Design (Interior & Exterior)

Engine performance (Also speed) Maintenance

If any other,

specify

Q9) How much mileage you expect per liter?

6-10 (Super fast cars) Km 11-14Km 15 & above Km

Q10) What kind of fuel engine you go for?

Diesel Petrol CNG Duel fuel

Any other,

specify

Q11) Tick the following features according to your need?

Yes Maybe No

Air bag

ABS

Parking sensors

Large Boot Space

High Ground Clearance

Rugged Suspension

Increased Steering Radius

Anyother,specify..

Documents

Consumer Perception of a-segment Car Buyers in Southern India