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MP BIRLA INSTITUTE OF MANAGEMENT

CONSUMERS BEHAVIOUR TOWARDS SECOND HAND BIKES

M.P. Birla Institute of Management

An Exploratory Study

On

“Second Hand Motor Bike Preference in Bangalore City”

SUBMITTED BY:

DeepakHanika V Raj MithunNitesh TekwaniPrema TVReeva SinghSachin V ZingadeSavitha GuptaSuma NVikas Seth

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ACKNOWLEDGEMENT

We are extremely great full to Dr Bislaiah, Professor

(MP Birla Institute Of Management) for permitting

us to carry out this study.

We would like to express our profound gratitude to all

those who have helped us directly or indirectly in the

course of this study.

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TABLE OF CONTENTS

CONTENTSPAGE NO

Acknowledgement 2

Table of contents 3

List of tables & figures 4

1. Executive summary 5

1.1 Objectives 6 1.2 Results 6 1.3 Conclusions 6 1.4 Recommendations 7 2. Body 7

2.1 Introduction 7 2.11 Background of study 7 2.12 Statement of the problem 13 2.13 Objectives 13 2.14 Hypothesis 14 2.2 Methodology 15 2.3 Results 19 2.4 Analysis 29 2.5 Limitations 31 2.6 Conclusions 31 2.7 Suggestions & Recommendations 323. Appendix 34

3.1 Data collection forms 34 3.2 Detailed calculations 37 3.3 General tables 39 3.4 Bibliography 46LIST OF TABLES

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FIGURE NO

CONTENTS PAGE NO

1 Age group 212 Income group 213 Attributes influence 224 Consumers preference 235 Consumer behaviour 246 Power /pick-up 247 Price 258 Pre & After sales 269 Technical sophistication 2710 Ownership 2711 Purpose of purchase 2812 Meet expectation 2913 Advertisement 2914 Location of showroom 3015 Ranking of motorbikes 3016 Hypothesis 1 4017 Hypothesis 2 41

LIST OF FIGURES

FIGURE CONTENTS PAGE NO

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NO

1 Automobile production in India 11

2 Age group 42

3 Income group 42

4 Attributes 43

5 Aesthetics 43

6 Fuel mileage 44

7 Bike’s price 44

8 Pre & After sales service 45

9 Technical sophistication 45

10 Ownership 46

11 Meet expectation 46

12 Media 47

13 Showroom location 47

14 Preference towards bikes 48

1. EXECUTIVE SUMMARY

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With per capita income in the country growing at a fair clip, growth prospects of the

Indian auto industry appear to be quite encouraging. The population is moving towards the

middle class or lower middle class this is resulting in the higher disposable income.

From the secondary data collected showing the growth rate in purchase of new first

hand vehicles, thus the question arises, where does the used vehicle go?

The report has been drawn up with the objective of identifying and analyzing the key

factors and attributes, which influence consumers while deciding to purchase a second hand

motorbike. The category of motorbike chosen for the purpose of this study is fuel-efficient;

four stroke motorbikes in the range of 95 to 115 cubic-capacity engines.

The study starts with a brief insight into the evolution of the Indian automobile

industry, the two wheeler industry, motorbike industry and the present structure. As

mentioned earlier the study is on Consumers preference towards second hand motorbikes,

which includes the attributes that influence the consumers the most and the second hand

motorbike that they prefer the most.

The methodology adopted for this study was conducted by interviewing 100

respondents through a questionnaire. The respondents were asked a series of questions

through which an analysis has been made on the key factors and attributes that influence and

drive the consumer’s preference towards a particular motorbike in their purchase decision

process.

The motorbikes, which were chosen for the purpose of this study, as mentioned above

are fuel-efficient, four-stroke bikes in the range of 95 to 115 cubic capacity engines. The

bikes that fall in this category are Hero Honda Splendor, TVS Victor, Kawasaki Caliber,

Yamaha Crux and Kinetic Boss. These bikes contribute to the highest sales in term of

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revenue and numbers (motorbikes), in their respective companies, regarding segments

mentioned above.

1.1 OBJECTIVES

Attributes that influence and drive the consumers purchase decisions and preferences

towards second hand motorbikes.

1.2 RESULTS

The number of respondents for the purpose of this study is 100, of which, the

majority have preference for a motorbike which gives good fuel mileage.

About 90% of the respondents feel that fuel mileage is a very important attribute that

a motorbike should possess. Fuel Mileage, Pricing, Pre and After Sales Service. From the

findings, majority of the respondents says that Hero Honda Splendor is the best fuel mileage

motorbike due to the fact that it has been priced the best and is also considered the best

regarding Pre and After – Sales service is considered.

1.3 CONCLUSIONS

Thus based on our analysis of qualitative data that have been discussed, we have

arrived at precise conclusions at the end of each chapter, giving manufacturers, retailers clear

insight into the customers perception on the preference of second hand motor bikes in the

Bangalore city.

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1.4 RECOMMENDATIONS

The attributes which have been mentioned play a very important role for a motorbike

to be a success in this segment of second hand two wheelers, for example fuel, mileage, etc.

Hero Honda Splendor the motorbike from Hero Honda Motors Limited has turned out to be

the most successful motorbike in this segment of second hand two wheelers as it satisfies the

majority of important attributes that the consumer desires

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2.1 INTRODUCTION

2.11 BACKGROUND OF THE STUDY

AUTOMOBILE INDUSTRY

Following India's growing openness, the arrival of new and existing models, easy

availability of finance at relatively low rate of interest and price discounts offered by the

dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the

Indian automobile industry.

Automobile Dealers Network in India

In terms of Car dealer networks and authorized service stations, Maruti leads the pack with

Dealer networks and workshops across the country. The other leading automobile

manufactures are also trying to cope up and are opening their service stations and dealer

workshops in all the metros and major cities of the country. Dealers offer varying kind of

discount of finances who in tern pass it on to the customers in the form of reduced interest

rates.

Major Manufacturers of Automobiles in India Maruti Udyog Ltd.

General Motors India

Ford India Ltd.

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

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Hindustan Motors

Hyundai Motor India Ltd.

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

Government has liberalized the norms for foreign investment and import of

technology and that appears to have benefited the automobile sector. The production of total

vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2006-07. It is likely that the

production of such vehicles will exceed 10 million in the next couple of years.

THE KEY FACTORS BEHIND THESE UPSWINGS

Sales incentives, introduction of new models as well as variants coupled with easy

availability of low cost finance with comfortable repayment options continued to drive

demand and sales of automobiles during the first two quarters of the current year. The risk of

an increase in the interest rates, the impact of delayed monsoons on rural demand, and

increase in the costs of inputs such as steel are the key concerns for the players in the

industry.

As the players continue to introduce new models and variants, the competition may

intensify further. The ability of the players to contain costs and focus on exports will be

critical for the performance of their respective companies.

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FIGURE: 1

The players continue to introduce new models and variants, the competition may

intensify further. The ability of the players to contain costs and focus on exports will be

critical for the performance of their respective companies.

The auto component sector has also posted significant growth of 20 per cent in 2003-

04, to achieve a sales turnover of Rs.30,640 crores (US$ 6.7 billion). Further, there is a

potential for higher growth due to outsourcing activities by global automobiles giants. Today,

this sector has emerged as another sunrise sector.

INDUSTRY FEATURES

Presence of a large number of players especially in the passenger car and two wheeler

segments has ensured stiff competition. Competition is based both on technology and more

importantly price. Key to success is therefore value added products but at affordable prices.

Since customers of all segments of the automobile industry are value conscious, factors such

as fuel efficiency and diesel engines are also key differentiators in the Indian market.

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The Indian consumer is now having an increasing choice with large number of

vehicle models launched each year. In line with the growing income of the Indian middle

class the entry-level vehicle is moving up the ladder. The entry level two wheeler has become

the scooter instead of moped and the preferred family vehicle is the more expensive

motorcycle instead of scooter. Moped and the preferred family vehicle is the more expensive

motorcycle instead of scooter. Mopeds, or low capacity engine vehicles, are now more stylish

and are preferred only by students. In the passenger car segment, the B class vehicles,

consisting of the more powerful hatchbacks are the fastest growing segment, indicating and

increasing affluence of an entry-level car buyer. The capacity utilization, which also has a

critical bearing on the profitability, has been low for Commercial vehicle, Car and MUV

segments while it has been healthy for the two wheeler segment.

CURRENT SCENARIO

1980’s Indian two wheeler markets liberalized.

Major Japanese two wheeler manufacturers make an entry into Indian market through

joint ventures/technical collaboration with Indian players. The major joint venture is

HERO HONDA, TVS SUZUKI, BAJAJ KAWASAKI, ESCORTS YAMAHA and

KINETIC HONDA.

Motorcycle merges as area for growth. Change in consumer perception for

motorcycles.

1990 - 1998 Scooters and mopeds loose sheen against motorcycles thus adding more fuel to

growth of motorcycles.

Four – stroke motorcycles registering highest growth in the market.

Hero Honda grew by leap and bounds and emerges as the country leader in two

wheeler markets.

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1998 till date

Bajaj forays into four – stroke motorcycle market.

Emission norms came into force.

Breaking – up of joint ventures.

Declining growth in motorcycle segment.

Entry of Kinetic Motors and LML into four strokes segments.

Chinese motorcycles making an entry into the market.

Consumer preference reaching a balance between fuel – efficiency and power.

Thus, Indian motorcycle market has evolved in the latter 89’s of pure monopoly of Hero

– Honda to differentiated oligopoly in the latter 90’s as key indicators points out, the industry

will evolve into monopolistic competition where a player having technological and

marketing edge will have a bigger pie of the market.

There are five basic types of industry structure on the basis of number of

sellers and ability to differentiate product. These are:PURE MONOPOLY – (ONE SELLER – UNDIFFERENTIATED PRODUCT):

Prices tend to be high, there is little advertising, service levels tend to be low and

barriers to entry often exist.

PURE OLIGOPOLY – (FEW SELLERS – UNDIFFERENTIATED PRODUCT):

Differentiation is difficult to achieve and prices are set at the going rate. The only

way in which to achieve a sustainable competitive advantage is by means of cost reduction.

DIFFERENTIATED OLIGOPOLY–(FEW SELLERS –UNDIFFERENTIATED

PRODUCT):

Differentiation is achieved by pursuing a strategy of quality, adding feature or styling.

The extent to which leadership or premium pricing can be achieved is the measure of the

measure of the success of the strategy.

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MONOPOLISTIC COMPETITION - FEW SELLERS – UNDIFFERENTIATED

PRODUCT):

Companies typically or particular market segments where scope exists either for

minimizing the degree of direct competition or in which scope for premium pricing exist.

PURE COMPETITION – (MANY SELLERS – UNDIFFERENTIATED PRODUCT):

At this most extreme, there is no scope for differentiation and prices are at the same

level. Advertising is only worthwhile if it can create a degree of psychological differentiation

(where this feasible, the market should be correctly labeled as monopolistically competitive).

Relative profit levels are directly determined by each company’s ability to manage cost.

SEGEMENTS:According to the buying pattern of customers, the market can be segmented into three

categories:

ECONOMY (Rs.25, 000-40,000)

COMMUTERS (Rs.40, 000-50,000)

LUXURY/LIFESYTLYE (Rs.50, 000 and above)

The spurt in growth in motorcycle was by commuters segment, which accounts for

majority share of the market and is also the most competitive. This can be inferred by

number of models, which are launched by different players in this segment.

But last two years have seen the market shifting towards economy segment due to

rationalization of taxes which decreased the price differential between scooters and

motorcycles, acceptance of motorcycles as better mode of transportation due to low running

cost and sturdiness. The macroeconomic factor has been growing in real income of

households.

In past two years there has been some fizzle in the luxury segment, but this segment has

still to make a mark as market move towards maturity phase. As market matures and new

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players eye for the pie of the Indian consumer income, the classification will also evolve. The

predictable classification could be:

ECONOMY

COMMUTERS

LUXURY

SUPERLUXURY

Though economy and commuters segment will cover the bottom – line for players but top-

line growth will take few more years.

2.12 STATEMENT OF THE PROBLEMDetermining the attributes, which influence and drive consumers’ preference towards

a particular second hand motorcycle, is a key factor in their purchase decision.

These attributes include aesthetics, fuel mileage, power/pick-up, price, after sales

service, comfort driving, easy handling, spare availability, resale value and zero maintenance.

2.13 OBJECTIVESBased on the above problem-statement, the following specific objectives have been

crystallized:

To determine the attributes that influence and drive the consumers purchase decisions

and preferences second hand towards motorbikes.

To determine which second hand motorbike the consumers prefer for transportation

in the category of fuel-efficient, four stroke and in the range of 95 – 115 cubic

capacity motorbikes.

To determine which the best among the top selling second motorbikes of different

motorcycle companies which include; Hero Honda Splendor, TVS Victor, Kawasaki

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Bajaj Caliber, Yamaha Crux and Kinetic Boss, regarding the attributes that have been

mentioned earlier.

To determine the purpose for which consumers purchase these motorbikes, which

include for the purpose of this study; daily commuting, basic use, critical in work

profile, gifting purpose, etc.,

To determine whether the motorbike owned by the consumer meets his/her

expectations and whether or not it suits their lifestyle.

To determine which advertising media influences consumers purchase decision of

second hand motor-bikes.

To determine whether, the showroom or service station location also influences

consumers purchase decision.

2.14 HYPOTHESIS

1. Null : The proportion of population intending to buy second hand bikes is

independent of the income group.

Alternate: The proportion of population intending to buy second hand bikes is dependent

of the income group.

2. Null : preference for buying second hand bikes independent of advertising media.

Alternative : it is dependent

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2.2 METHODOLOGY

RESARCH DESIGNResearch design is the arrangement of conditions for collection and analysis of data in

a manner that aims to combine relevant to the research purpose with economy in procedure.

In fact, the researcher design is the conceptual structure within which research is conducted;

it constitutes the blue print for the collection, measurement and analysis of data.

The main aim of the study is to measure the awareness, preferences, attitude and

perception of people toward second-hand motorbike (95-115cc, fuel efficient and four

strokes) and to find out what attributes attract the most to the consumer in a motorbike.

Marketing research studies can be broadly classified into three basic types namely,

exploratory, descriptive and casual, depending on the objectives and prior knowledge on the

issues being examined. The study conducted is Exploratory in nature. The major emphasis of

exploratory research is on the discovery of ideas.

Next comes the question of selecting the methods by which the data are to be

obtained. In other words techniques for collecting the information must be devised. Several

methods like observation, questionnaire, interviewing, examination of records, etc., so survey

method is used for the study.

Surveys are usually undertaken to learn about people’s knowledge, belief, preference,

satisfaction and to measure these magnitudes in the population.

SAMPLING TECHNIQUEThe researcher decided the type of sampling technique used in this study is

Convenience Sampling Method. In fact, this technique or procedure stands for the sample

design itself. There are several sample designs out of which the researcher must choose one

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for his study. In this survey the sampling procedure consists of all people who own and are

aware about motorbikes. It could a student, an employee, a business man, etc.

In this survey the sample size of the respondents is in the age group of 18-60 and

includes a total of 100 respondents who lives in the Bangalore city and were interviewed for

the purpose of this study.

SOURCES OF DATA:The task of data collected after a research problem has been defined and research

design. While deciding about the method of data collection to be used for the study, the

researcher should keep in mind two types of data viz, Primary and Secondary. The primary

data are those which are collected freshly and for the first time, and thus happen to be

original in character. The secondary data, on the other hand, are those, which have already,

been passed through the statistical process. The sources of data for this research are both

from primary and secondary.

PRIMARY DATA:Primary data was collected by means of a structured questionnaire administered

personally.

SECONDARY DATA:Secondary data include appropriate materials from Magazines, internet and by means

of discussion with the guide.

SAMPLE SIZE:The sampling size was 100 and all the samples were collected within the time of three

Weeks during the month of April 2008.

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SAMPLING METHOD:Basically, these methods can be divided into two types, called probability based

sampling scheme and non-probability based schemes. A Non-Probability Convenience

Sampling Method has been used in this research. The customers who had purchased and are

aware of the motorbike were approached and interviewed who had come to get their bikes

serviced.

DATA COLLECTION INSTRUMENT:The Questionnaire method of data collection is quite popular, particularly in case of

big enquiries. The instrument used for the data collection was very simple and easy to

understand. The respondents were easily available at the service point. The respondents had

sample of time to answer all the questions in the questionnaire. A questionnaire consists of a

number of questions printed or typed in a definite order on a form or set of forms. The

questionnaire is given to respondents who are expected to read and understand the questions

and answer them. The researcher uses the questionnaire in this research. Questions related to

objectives of the study, form major portion of the questionnaire. It mainly consists of

multiple choice questions or the checklist types questions, so that respondent can check or

mark one of the several choices of answers.

Questionnaire was formed based on the ideas obtained from researcher’s discussion

of the problem guide.

FIELD WORK:The researcher covers 100 respondents and all of them filled up the questionnaire.

Some of the respondents had no patience but on the other hand there were some of them who

were truly interested into the survey.

Such respondents really encouraged the researcher a lot to carry out the survey.

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Average time taken by the respondent to fill up the questionnaire was 10 minutes. Some of

them thought they were making commitments on their part even though the researcher told

them that it was not so.

However an honest attempt is made to report and analyze the respondents as

objectively as possible without allowing the investigators bias to dominate them.

DATA PROCESSING & ANALYSIS PLAN:The data after collection has to be processed and analyzed in accordance with the outline laid

down for the purpose at the time of developing the research plan. This is essential for a

scientific study and for ensuring that we have all relevant data for making contemplated

comparison and analysis.

Technically speaking, processing implies editing, coding, classification and tabulation

of collected data so that they are amenable to analysis. The team analysis refers to the

computation of certain measures along with searching for patterns of relationship that exist

among data groups. Thus, “in the process of analysis, relationships or differences supporting

or conflicting with original or new hypothesis should be subjected to statistical test of

significance to determine with what validity data can be said to indicate any conclusion.”

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2.3 RESULTS

SURVEY FINDINGS

PRESENTATION AND ANALYSIS OF DATA:

AGE GROUP OF THE RESPONDENT

TABLE: 1

SOURCE: FIELD INVESTIGATIONThe above table shows the age of the respondents. Most of the respondents belong to

the age group of 28-38. In the survey it was found 36% of the respondents belong to the age

group of 28 –38.32% of them belong to the age group of 18-28.23% belong to the age group

of 38-48 and the lowest age group was 48 and above who were only 9%.

INCOME OF THE RESPONDENTS

TABLE: 2

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The above table shows the approximate monthly income of the respondents. In the

survey it was found that 31% of the respondents got an income of Rs. 5000 – 10000 per

month. 28% of them got an income of 15000 and above. 19% of them have an income less

than 5000 per month. 14% of them have an income of 13000-15000 per month and 8% of

respondents have an income of 1000 – 13000.

ATTRIBUTES THAT INFLUENCE CONSUMER

TABLE: 3

Legend:

VI - Very Important

I - Important

L - Less Important

N - Not Important

The above table gives the information on the attributes that influences the consumer.

The table is divided into 4 degree of importance, i.e., Very Important, important, Less

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Important and Not Important. From the above mentioned where 90% of the respondents feel

it is Very Important and 10% of them feel it is important. 55 among 1000 respondents feel

Power is the next attribute which is Very Important. 53 among 100 respondents find Price as

the next attribute that is respondents feel Pre & After Sales Service as Very Important. The

attributes, i.e. Comfort Driving, Resale Value, Zero Maintenance, Easy Handling and Spares

Availability, when compared to the other important attributes are given less priority. Spares

Availability is one attribute which is given least importance.

CONSUMER PREFERENCE OF MOTORBIKS TAKING ATTRIBUTES

INTO CONSIDERATION

TABLE: 4

From the above table taking aesthetics into consideration 37% of the respondents feel

TVS Victor is the best bike. 25% of them feel Hero Honda Splendor as the best bike. 20% of

them feel Kawasaki Bajaj Caliber as the best bike. 16% of them feel Yamaha Crux as the

best bike and only 2% of them feel Kinetic Boss is the best bike. Based on this Analysis we

can come to know that TVS Victor is the best looking bike.

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TABLE: 5

From the above table taking Fuel Mileage into consideration 50% of the respondents

feel Hero Honda Splendor is the best Mileage bike. 18% of them feel TVS Victor as the best

bike. 17% of them feel Kawasaki Bajaj Caliber as the test bike. 9% of them feel Yamaha

Crux as the best bike and only 6% of them feel Kinetic Boss is the best bike. Based on this

analysis we can come to know that Hero Honda Splendor is the best Mileage bike.

CONSUMER PREFERENCE TOWARDS MOTOR BIKES

CONCERNING POWER / PICK-UP

TABLE: 6

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From the above table taking Power / Pick-up into consideration 45% of the

respondents feel Yamaha Crux is the best Power bike. 23% of them feel TVS Victor as the

best bike. 17% of them feel Kawasaki Bajaj Caliber as the best bike. 10% of them feel Hero

Honda Splendor as the best bike and only 5% of them feel Kinetic Boss is the best bike.

Based on this analysis Yamaha Crux is the best Power / Pick-up bike from the consumer’s

point of view.

CONSUMERS BEHAVIOUR TOWARDS MOTOR BIKES

CONCERNING PRICE

TABLE: 7

From the table taking Price into consideration 30% of the respondents feel Hero

Honda Splendor is the best-priced bike. 28% of them feel Kinetic Boss as the best bike. 18%

of them feel TVS Victor as the best bike. 12% of them feel Yamaha Crux as the best bike and

12% of them feel Kawasaki Bajaj Caliber as the best bike. Based on this analysis Hero

Honda Splendor is the best –priced Motorbike from the consumer’s point of view.

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CONCERNING PRE AND AFTER SALES-SERVICE

TABLE: 8

From the above table taking Pre and After – Sales Service into consideration 43% of

the respondents feel Hero Honda Splendor is the best when service is taken into

consideration. 23% of them feel TVS Victor is the best. 16% of them feel Kawasaki Bajaj

Caliber as the best bike. 13% of them feel Yamaha Crux as the best bike and only 5% of

them feel Kinetic Boss is the best bike. Based on this analysis Hero Honda Splendor is the

best Motorbike when Pre and After Sales Service is considered from the Consumer’s point of

view.

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CONCERNING TECHNICALLY SOPHISTICATED

TABLE: 9

From the above table taking Technical Sophistication into consideration 38% of the

respondents feel TVS Victor is the Test Technical Sophisticated bike. 20% of them feel Hero

Honda Splendor as the best bike. 20% of them feel Kawasaki Bajaj Caliber as the best bike.

11% of them feel Yamaha Crux as the best bike and 11% of them feel Kinetic Boss as the

best bike. Based on this analysis TVS Victor is the best Motorbike when Technical

Sophistication is considered from the consumer’s point of view.

OWNERSHIP

TABLE: 10

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The above table shows the brand of motorbikes owned by the consumers. Hero

Honda Splendor is the bike, which is, owned the most i.e. 37% of them consumers own it.

25% of the consumers own TVS Victor. 19% of them own Kawasaki Bajaj Caliber. 13% of

them own Kinetic Boss.

RESPONDENTS PURPOSE OF PURCHASE

TABLE: 11

From the above data it is clear that most of the respondents purchase a motorbike for

daily commuting, i.e. 44% of them. 28% of the respondents purchase it for Basic use. 22% of

them Purchase it because it is Critical in Work Profile and only 6% of them purchase it for

getting purpose.

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MEET EXPECTATIONS

TABLE: 12

The above table shows that whether the motorbike the respondents have purchased

has met their expectations. It shows that 57% of the respondents say it does meet their

expectations. 34% of them say expectations have met to an extent and only 9% of them say it

hasn’t met their expectations.

RESPONDENTS AWARENESS LEVEL OF ADVERTISEMENTS OF

MOTORBIKES

TABLE: 13

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The above table shows that 36% of the respondents have seen the Advertisement of

the motorbike on television out of which, 30% of them through Word of Mouth. 20% of them

are aware through Print Media. 13% through hoardings and only 1% of respondents say

through Radio. Based on this analysis we can say that advertisement of motorbikes through

television is the best way to increase awareness among the consumers.

LOCATION OF SHOWROOM AFFECTS PURCHASE DECISION

TABLE: 14

The above data shows whether the location of the showroom will affect the

respondents purchase decision. 58% of the respondents say no and 42% of the respondents

say that it will affect their purchase decision.

CONSUMER RANKING OF MOTORBIKES

TABLE: 15

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The above table shows consumers preference towards motorbikes. Hero Honda

Splendor has been preferred the most by the consumer i.e. 40% of them have ranked Hero

Honda Splendor as number one. 22% of the respondents have ranked TVS VICTOR as

number one. 20% of them have ranked Kawasaki Bajaj Caliber as number one. 13% of them

have ranked Yamaha Crux and only 5% of them have ranked Kinetic Boss as number one.

Based on this analysis it is clear that Hero Honda Splendor is still a winner of the battle but

the war remains.

2.4 ANALYSISThe questionnaire has been framed in a manner so as to determine the key factors and

attributes that influence second hand motorbike consumers, purchase decision and

preferences. The number of respondents for the purpose of this study is 100, of which, the

majority have preference for a motorbike which gives good fuel mileage.

As we have seen in the previous chapters, 90% of the respondents feel that fuel

mileage is a very important attribute that a motorbike should possess. Fuel Mileage, Pricing,

Pre and After Sales Service. From the findings, majority of the respondents says that Hero

Honda Splendor is the best fuel mileage motorbike due to the fact that it has been priced the

best and is also considered the best regarding Pre and After – Sales service is considered.

Aesthetics and Power / Pick-Up The majority of respondents from our analysis state

that TVS Victor is the best bike regarding aesthetics i.e. where looks are considered.

Regarding Power / Pick – Up Yamaha Crux is considered to be the winner as per the

respondent’s views.

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OwnershipMost of the respondents who own a Hero Honda Splendor claim that the bike meets their

expectation and suits their lifestyle, thus resulting in satisfying their purchase decision.

Purchase of PurchaseMost of them purchase the bike for daily commuting, some of them for basic use and

is critical in work profile and few of them buy for the purpose of gifting.

Location of the showroom or service station When location of the showroom or service station is considered majority of the

respondents feel that it does not affect their purchase decision.

Advertising MediaAnother fact that was found in the survey was that majority of the respondents feel

that television is the best media for motorbike advertising.

Attributes

Comfort Driving, Resale Value, Zero Maintenance, Easy Handling and spares

availability Regarding the above-mentioned attributes, when compared to the other important

attributes as mentioned earlier, respondents have given them less priority and importance in

their purchase decision and preference. Also regarding spares availability the respondents do

not consider it a vital factor, regarding their preference and purchase decision.

Overall Best BikeFinally, when asked which is the bike respondents preferred the most, majority of

them voted for “Hero – Honda Splendor as the best motorbike”, when compared to TVS

Victor, Kawasaki Bajaj Caliber, Yamaha Crux and Kinetic Boss.

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This preference can clearly be seen from our analysis in the previous chapters, and

clearly supports our findings.

2.5 LIMITATIONS

The sample size is limited to 100 respondents

The study is limited between 90cc – 150cc engines

The study is limited to local region

2.6 CONCLUSION

The research work embodied in this report is highly qualitative and is not amenable

for vigorous hypothesis testing through statistical packages.

However, based on our analysis of qualitative data, we prove, beyond doubt, criteria

that our respondent had response is very similar to the study of the perception of adapting to

any new products. Our analysis calls for nothing less than the appropriate product that has

been manufacture that matches the expectations of the customer has more share in the market

for both new and second hand.

Thus from the above chapters that have been discussed, we have arrived at precise

conclusions at the end of each chapter, giving manufacturers, retailers clear insight into the

customers perception on the preference of second hand motor bikes in the Bangalore city.

Also we have covered the behavioral aspect of consumers, concerning viewing of

advertisements on television, which gives influence in decision making of purchase the most,

followed by print medias.

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2.8 SUGGESTIONS AND RECOMMENDATIONSFrom the analysis that has been made in the previous chapters we have seen that the

attributes which have been mentioned play a very important role for a motorbike to be a

success in this segment of second hand two wheelers, for example fuel, mileage, etc.

Hero Honda Splendor the motorbike from Hero Honda Motors Limited has turned out

to be the most successful motorbike in this segment of second hand two wheelers as it

satisfies the majority of important attributes that the consumer desires. The attributes are

mentioned earlier includes, fuel mileage, price, after sales service, power / pick-up, comfort

driving, easy handling, aesthetics, spare availability, resale value and zero maintenance.

We can also conclude that consumers have preference for this range of motorbikes

due to the fact that they are more economical in terms of the attributes mentioned above, as it

suits the purpose for which they purchased it, which includes daily commuting, basic use,

critical in work profile, etc. We can also state that advertising through television is the most

appropriate media for this particular product, which has been analyzed, in the previous

chapters.

Finally, through the conclusions made above we can suggest to the following top

Indian four stroke producing motorbike companies in order to increase their market share:

Hero Honda Splendor: Improvements could be made concerning the aesthetics and

power/pick-up.

TVS Victor: They could increase the sales of the motorbike by improving consumer’s

perception on its reliability and dependability thus increasing its resale value.

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Kawasaki Bajaj Caliber: As they have already adopted the strategy of cost leadership

till now and since they have consistently flanked Hero Honda on price, in future Bajaj has to

focus on development of better technologically sound products.

Yamaha Crux: Improvements could be made in aesthetics, power/pick-up and better

after sales service in order to increase their market share.

Kinetic Boss: They have to improve the customer’s image of the motorbike, as

majority of the respondents does not view this product favourably as compared to the above

motorbikes.

It is our firm conviction and belief that our research findings, if they are not

pigeonholed, will give an insight to the marketers of these motorbikes and will help them to

tackle the strategic issues of brand marketing.

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3. APPENDIX

3.1 DATA COLLECTION FORMS

QuestionnaireDear respondent,

I am a management student of MP Birla Institute of Management, Bangalore;

conducting a research project as a partial fulfilment of MBA program.

I solicit your co-operation in filling up this questionnaire to facilitate completion of

my project work. I assure you that the response given will be kept confidential and will be

used for academic purpose only.

1 Gender:

[ ]Male [ ] Female

2. Age: (Please check the appropriate box)

[ ] 18-28 [ ] 28-38

[ ] 38-48 [ ] 48 and above

4. Occupation (Please Specify)______________________________

5. Income per month:

[ ] Up to – 5000 [ ] 5000-10000

[ ] 13000-15000 [ ] 15000 and above

6. Please tick the following attributes according to your degree of preference in a

motorcycle

ATTRIBUTES VERY IMP. IMPORTANT LESS IMP. NOT IMP.

1. Aesthetics /Looks / styles

2. Mileage

3. Power / Pick –up

4. Price

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5. Resale value

6. After sales service

7. Comfort driving

8. Zero maintenance

9. Easy handling

10. Spares availability

7. Please tick the following motorbikes, considering the following attributes according

to your preference.

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8. Given below are different brands of two-wheeler motorcycles, kindly rank them

according to your preference.

10. Which bike do you own?

___________________________________________________________

11. What was the purpose of purchase? (Please check the appropriate box)

Daily commuting [ ]

Critical work profile [ ]

Basic use [ ]

Gifting purpose [ ]

Others specify ___________________________________

12. Does the bike meet to your expectations? (Please check the appropriate box)

Yes it does [ ] To an extent [ ] No it doesn’t [ ]

13. Does the bike you bought match your life style? (Please check the appropriate box)

Yes it does [ ] To an extent [ ] No it doesn’t [ ]

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14. How did you get to know about the bike you purchased? (Please check the

appropriate box)

Print media [ ]

Television [ ]

Word of mouth [ ]

Hoarding [ ]

Other, specify ______________________________________

15 Will the location of the showroom affect your purchase decision? (Please check the

appropriate box)

Yes [ ] No [ ]

3.2 DETAILED CALCULATIONSChi – square test has been used for the testing of hypothesis.

Level of significance = α

Degrees of freedom= DOF

Hypothesis 1:

At 5% level of significance, the value of tabulated Ψ2 is given by:

α =0.05 and DOF = 5-4 = 1

Ψ2 (tabulated) = 9.49

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INCOME GROUP OBSERVED

VALUE

(O)

EXPECTED

VALUE

(E)

UPTO 5000 19 20 1 0.05

5000-10,000 31 20 121 6.05

10,000-13,000 8 20 144 7.2

13,000-15,000 14 20 36 1.8

15,000 & ABOVE 28 20 64 3.2

TOTAL 18.3

TABLE: 16

Ψ2 (calculated) = 38.3

Interpretation: here Ψ2 (calculated) > Ψ2 (tabulated)

Null hypothesis is rejected

Buying behaviour is dependent on advertisement media.

Hypothesis 2:

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At 5% level of significance, the value of tabulated Ψ2 is given by:

α =0.05 and DOF = 5-4 = 1

Ψ2 (tabulated) = 9.49

ADVERTISEMENT

MEDIA

OBSERVED

VALUE

(O)

EXPECTED

VALUE

(E)

Print 20 20 0 0

Television 36 20 256 12.8

Word of mouth 30 20 100 5

Hoardings 13 20 49 2.45

Others 1 20 361 18.05

TOTAL 38.3

TABLE: 17

Ψ2 (calculated) = 38.3

Interpretation: here Ψ2 (calculated) > Ψ2 (tabulated)

Null hypothesis is rejected

Buying behaviour is dependent on advertisement media.

3.3 GENERAL TABLE

AGE GROUP OF THE RESPONDENTS

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FIGURE: 2

INCOME OF RESPONDENTS

FIGURE: 3

ATTRIBUTES INFLUENCING CONSUMERS

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FIGURE: 4

CONSUMERS PREFERENCE TOWARDS AESTHETICS

FIGURE: 5

CONSUMERS PREFERENCE TOWARDS FUEL MILEAGE

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FIGURE: 6

CONSUMERS PREFERENCE TOWARDS BIKES PRICE

FIGURE: 7

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CONSUMERS PREFERENCE TOWARDS PRE AND AFTER SALES SERVICE

FIGURE: 8

CONSUMERS PREFERENCE TOWARDS TECHNICALLY SOPHISTICATED

BIKES

FIGURE: 9

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OWNERSHIP

FIGURE: 10

MEET EXPECTATIONS

FIGURE: 11

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MEDIA

FIGURE: 12

SHOWROOM LOCATION

FIGURE: 13

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CONSUMERS PREFERENCE TOWARDS MOTOR BIKES

FIGURE: 14

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3.4 BIBLIOGRAPHY

Sites on the internet: www.indiainfoline.com

www.economywatch.com

www.thehindubusinessline.com

Magazines: Autoindia

Motoring

Text Books: Marketing Management by Philip Kotler (The Millenium edition) : Tata Mc. Graw

hill publications, New Delhi 2000

Business Research Method by Cooper R. Donald and Pamela S. Schindler: Tata Mc.

Graw hill publications, New Delhi 2001.

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Documents

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